17th Jul 2020 15:36
(Alliance News) - Prudential PLC said Friday Athene Holding Ltd's USD500 million investment in Jackson has been completed.
The deal was first announced in mid-June.
Retirement services firm Athene will take an 11% economic interest in Jackson, in exchange for the investment, but hold a 9.9% voting interest.
Jackson will receive the USD500 million investment as the US life insurer prepares for its minority initial public offering. Prudential explained the cash injection "will be deployed in Jackson, strengthening its capital base".
As part of the deal, Athene also fully reinsured a USD27.6 billion portfolio of Jackson's annuity liabilities in the US.
It was back in March that Prudential said it would "pursue a path for an independent Jackson". Prudential had been under pressure from activist fund Third Point LLC to demerge the unit.
Prudential Chief Executive Officer Mike Wells said on Friday: "We are delighted to announce the completion of Athene's USD500 million equity investment in our US business. The transaction has increased its risk-based capital cover ratio and is a significant step in meeting our strategic objectives for the business."
Jackson's Chair & Chief Executive Michael Falcon added: "Athene's investment in Jackson further strengthens our capital position, as we deliver on our long-term strategic objectives. We look forward to working with Athene as an important investor and remain committed to helping American savers achieve financial freedom for life."
Shares in Prudential were down 1.2% in London on Friday afternoon at 1,244.50 pence each.
By Paul McGowan; [email protected]
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