LONDON, Sept 16 British insurer Prudential
will press ahead with the separation of its Hong Kong
business from the UK parent company at the start of 2014 after
gaining legal clearance for the move.
Prudential said in a statement on Monday that courts in Hong
Kong and London have approved a timetable for 'domestication' of
the business that has operated as a branch of the UK parent
Prudential said the shift affects life and general insurance
policies of around 800,000 customers of the Hong Kong branch,
out of around 9.5 million policyholders administered by the UK
The change is part of a broader shift in the company to make
its units in Asia and North America more self sufficient.
Speaking after an earnings statement in August, Chief
Executive Tidjane Thiam said Prudential was in the process of
setting up a new Asian holding company that would bring all its
Asian operations under a single legal entity.
This would in theory make it easier to sell the Asian
business in future, although Thiam said the primary aim was to
streamline its Asian operations and the company has played down
the possibility of disposals.
The Pru pursued similar splits of overseas units from the
parent in Singapore, Australia, New Zealand and Canada during
the 1990s, the company said on Monday.
Life insurance policies taken out by clients of the Hong
Kong branch will be transferred to a new local life insurance