4th Dec 2007 11:11
Prudential PLC04 December 2007 FOR IMMEDIATE RELEASE: 4 December 2007 Proposed transfer of Equitable Life's with-profits annuities book to Prudential receives Court approvals Prudential UK ("Prudential") and Equitable Life ('Equitable') confirm that theproposed transfer of Equitable's with-profits annuities book to Prudential hasreceived final Court approval in the UK and the Channel Islands. This followsthe Extraordinary General Meeting on 26 October at which over 98 per cent ofEquitable's voting members supported the proposed transfer. The transaction isexpected to complete by 31 December 2007. Under the terms of the agreement, the portfolio of with-profits annuities willtransfer into Prudential's with-profits fund. Prudential will take over directresponsibility for the management of these policies and payment to theseannuitants after the transfer is completed. Equitable's with-profits annuities book covers approximately 62,000 policies andis anticipated to have assets of around £1.7 billion as at 31 December 2007. Thetransaction is expected to generate premium income for Prudential ofapproximately £170 million on an APE basis and this will be recognised once thetransaction completes. Nick Prettejohn, Chief Executive, Prudential UK, said: "We are delighted thatthe proposed transfer has received the necessary Court approvals and thetransaction is on schedule to complete by the end of this year. The agreementwill provide Equitable's with-profits annuitants with improved prospects andgreater security by being part of one of the largest and financially strongestfunds in the UK. The fund has delivered consistently strong investment returnsover many years and as a result of this transaction, Equitable's with-profitannuitants will benefit from Prudential's considerable experience in theannuities market where we are a market leader." Vanni Treves, Equitable Life's Chairman said: "At our EGM in October,policyholders voted more than 98 per cent in favour of this transfer. We aredelighted that the final legal hurdles have been completed and we will be ableto deliver the proposal which policyholders have supported so overwhelmingly." Charles Thomson, Equitable Life's Chief Executive added: "There is an enormousamount of ground-breaking work required to make innovative deals like this onehappen. It is very gratifying to be able to deliver a transaction which has theapproval of the Courts, the Regulator and, most importantly, policyholders." -ENDS- ENQUIRIES TO: Prudential Equitable Life Media Media Steve Colton Alistair Dunbar Tel: 020 7150 3136 Tel: 07967 564039 Analysts/Investors James Matthews Tel: 020 7150 3561 About Prudential Prudential plc is a company incorporated and with its principal place ofbusiness in England, and its affiliated companies constitute one of the world'sleading financial services groups. It provides insurance and financial servicesdirectly and through its subsidiaries and affiliates throughout the world. Ithas been in existence for over 150 years and has £256 billion in assets undermanagement as at 30 June 2007. Prudential plc is not affiliated in any mannerwith Prudential Financial, Inc, a company whose principal place of business isin the United States of America. Forward-Looking Statements This statement may contain certain "forward-looking statements" with respect tocertain of Prudential's plans and its current goals and expectations relating toits future financial condition, performance, results, strategy and objectives.Statements containing the words "believes", "intends", "expects", "plans", "seeks" and "anticipates", and words of similar meaning, are forward-looking. Bytheir nature, all forward-looking statements involve risk and uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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