SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of March, 2020
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
1 Angel Court, London,
England, EC2R 7AG
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in connection with Rule 12g3-2(b): 82-
11 March 2020
Preparations commenced for a minority IPO of Jackson
Prudential plc ("Prudential") today announces that it is preparing
for a minority Initial Public Offering ("IPO") of its US
business.
Jackson, headquartered in Lansing, Michigan, is a top-two annuity
provider in the US and has best-in-class products, distribution and
operations.
Mike Wells, Group Chief Executive of Prudential, said: "In order to
diversify at pace, Jackson will need access to additional
investment, which we believe would best be provided by third
parties. Today we are announcing that preparations have commenced
for a minority IPO of Jackson and we have already taken a number of
management actions to support this path. We will now commence
detailed engagement with our key stakeholders, with a view to
ensuring that Jackson will have the capital strength as a
separately listed business to support its continued success as a
broad provider of retirement solutions for America's ageing
population."
Michael Falcon, Chairman and Chief Executive of Jackson, said: "The
US is the world's largest retirement market with trillions of
dollars expected to move from savings into retirement income
products over the next decade. Jackson's ambition is to play the
fullest role possible in this through a strategy of diversifying
its product range and distribution network. Over time, this is
expected to lead to a more balanced mix of policyholder liabilities
and enhance statutory capital and cash generation."
Paul Manduca, Chairman of Prudential, said: "Over the past nine
months, Prudential has undertaken a significant amount of work with
our advisors to assess our options for introducing third party
finance into Jackson. The Board has determined that the preferred
route to achieve this is to seek a listing of Jackson in the US in
due course, subject to market conditions."
Prudential will provide an update at its half-year results on 11
August 2020.
Enquiries:
Media
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Investors/Analysts
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Jonathan Oliver
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+44 (0)20 3977 9500
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Patrick Bowes
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+44 (0)20 3977 9702
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Tom Willetts
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+44 (0)20 3977 9760
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William Elderkin
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+44 (0)20 3977 9215
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Notes to Editors:
Jackson's 2019 performance highlights
●
Adjusted operating profit increased by
20 per cent to $3,070 million.
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Continued growth of advisory sales,
with new business sales up 30 per cent as distribution models
continue to evolve.
●
Expanded advisory distribution
footprint with Morgan Stanley, DPL Financial Partners, TD
Ameritrade and RetireOne.
●
Awarded 'Contact Center World Class CX
Certification' and 'Highest Customer Service for the Financial
Industry' awards by The Service Quality Measurement Group,
Inc.
●
Actively engaged with FinTech partners
including Envestnet, MoneyGuidePro and eMoney.
About Jackson
Jackson is a leading provider of retirement
products for industry professionals and their clients. The company
and its affiliates offer variable, fixed and fixed index annuities
designed for tax-efficient growth and distribution of retirement
income for retail customers, as well as products for institutional
investors. Jackson is a proud founding member and co-chair of the
Alliance for Lifetime Income, a nonprofit 501(c)(6) organisation
formed and supported by 24 of the nation's financial services
organisations to create awareness and educate Americans about the
importance of protected lifetime income. With $297.6 billion in
IFRS assets*, the company prides itself on sound corporate risk
management practices and strategic technology initiatives. Focused
on thought leadership and education, Jackson provides industry
insights and financial representative training on retirement
planning and alternative investment strategies. The company is also
dedicated to corporate philanthropy and supports non-profit
organisations focused on strengthening families and creating
economic opportunities in the communities where its employees live
and work. For more information, visit www.jackson.com.
*Prudential plc's US insurance business has IFRS total assets of
$299.0 billion, of which $297.6 billion relate to Jackson, and
$269.5 billion of IFRS policyholder liabilities (as of 31 December
2019).
About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on
structural growth markets. The business helps individuals to
de-risk their lives and deal with their biggest financial concerns
through life and health insurance, and retirement and asset
management solutions. Prudential plc has 20 million customers and
is listed on stock exchanges in London, Hong Kong, Singapore and
New York. Prudential plc is not affiliated in any manner with
Prudential Financial, Inc., a company whose principal place of
business is in the United States of America, nor with the
Prudential Assurance Company, a subsidiary of M&G plc, a
company incorporated in the United Kingdom.
Forward-looking statements
This document may contain 'forward-looking statements' with respect
to certain of Prudential's plans and its goals and expectations
relating to its future financial condition, performance, results,
strategy and objectives. Statements that are not historical facts,
including statements about Prudential's beliefs and expectations
and including, without limitation, statements containing the words
'may', 'will', 'should', 'continue', 'aims', 'estimates',
'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and
'anticipates', and words of similar meaning, are forward-looking
statements. These statements are based on plans, estimates and
projections as at the time they are made, and therefore undue
reliance should not be placed on them. By their nature, all
forward-looking statements involve risk and
uncertainty.
A number of important factors could cause Prudential's actual
future financial condition or performance or other indicated
results to differ materially from those indicated in any
forward-looking statement. Such factors include, but are not
limited to, future market conditions, including fluctuations in
interest rates and exchange rates, the continuance of a sustained
low-interest rate environment, and the impact of economic
uncertainty, asset valuation impacts from the transition to a lower
carbon economy, inflation and deflation and the performance of
financial markets generally; global political uncertainties; the
policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's new Group-wide supervisor, as well as
new government initiatives generally; the impact of continuing
application of Global Systemically Important Insurer or 'G-SII'
policy measures on Prudential; the impact on Prudential of systemic
risk policy measures adopted by the International Association of
Insurance Supervisors; the impact of competition and fast-paced
technological change; the effect on Prudential's business and
results from, in particular, mortality and morbidity trends, lapse
rates and policy renewal rates; the physical impacts of climate
change and global health crises on Prudential's business and
operations; the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries; the impact
of internal transformation projects and other strategic actions
failing to meet their objectives; the risk that Prudential's
operational resilience (or that of its suppliers and partners) may
prove to be inadequate, including in relation to operational
disruption due to external events; disruption to the availability,
confidentiality or integrity of Prudential's IT, digital systems
and data (or those of its suppliers and partners); any ongoing
impact on Prudential of the demerger of M&G plc; the impact of
changes in capital, solvency standards, accounting standards or
relevant regulatory frameworks, and tax and other legislation and
regulations in the jurisdictions in which Prudential and its
affiliates operate; the impact of legal and regulatory actions,
investigations and disputes; and the impact of not adequately
responding to environmental, social and governance issues. These
and other important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
Prudential's actual future financial condition or performance or
other indicated results to differ, possibly materially, from those
anticipated in Prudential's forward-looking statements can be found
under the 'Risk Factors' in Prudential's Full Year 2019 Results
Regulatory News Release. Prudential's Full Year 2019 Results
Regulatory News Release is available on its website
at www.prudentialplc.com.
Any forward-looking statements contained in this document speak
only as of the date on which they are made. Prudential expressly
disclaims any obligation to update any of the forward-looking
statements contained in this document or any other forward-looking
statements it may make, whether as a result of future events, new
information or otherwise except as required pursuant to the UK
Prospectus Rules, the UK Listing Rules, the UK Disclosure and
Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing
rules or other applicable laws and regulations.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 13 March 2020
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By:
/s/ Mark FitzPatrick
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Mark
FitzPatrick
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Group
Chief Financial Officer and Chief Operating Officer
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