Prudential sold a minority stake in its U.S. business, Jackson, to Apollo Global-backed Athene Holding for US$500 million. This is the first phase of its plan to create an independent U.S. business.
The London-listed, Asia-focused insurer, which is also regulated in Hong Kong, has been looking for ways to bring external capital into the U.S. annuity provider and said it would continue to evaluate options for the part of the business it still owned, including a minority initial public offering.
The end goal was to create an independent U.S. business, Prudential said, without giving details on how much of Jackson it still wanted to keep. Athene's investment, which hands the retirement services company an 11.1% economic interest in Jackson's enlarged common equity, was expected to close in July.
Some analysts say there is little logic in Prudential holding onto Jackson, which has few synergies with its Asian arm — where profits and new business sales have historically been higher.
The end goal was to create an independent U.S. business, Prudential said, without giving details on how much of Jackson it still wanted to keep. Athene's investment, which hands the retirement services company an 11.1% economic interest in Jackson's enlarged common equity, was expected to close in July.
Some analysts say there is little logic in Prudential holding onto Jackson, which has few synergies with its Asian arm — where profits and new business sales have historically been higher.
In addition, Prudential said Athene — which counts Leon Black's Apollo Global Management as its biggest shareholder — would fully reinsure US$27.6 billion of Jackson's in-force fixed and fixed indexed annuity portfolio from June 1.
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