Prudential plc announces intention to fully separate from Jackson

British insurer Prudential plc announced it has decided to pursue a full separation of its American annuity business Jackson by way of a minority Initial Public Offering (IPO) followed by full divestment over time. The U.S. listing is planned for the first half of 2021, and Jackson does not currently expect to remit any regular dividends to Prudential plc in 2020 or 2021 prior to an IPO.

“The COVID-19 pandemic continues to create hardship and disruption in the lives of millions of Americans. Consumers value the benefits our products provide, and these needs are highlighted during volatile markets. Throughout the first half of the year, we have adapted our business to ensure we continue to deliver on our ongoing commitment to helping Americans seek protection amid uncertainty, as they transition to and through retirement.” – Michael Falcon, chief executive officer of Jackson Holdings LLC.

On June 18, 2020, Jackson entered into an agreement with Athene to fully reinsure $27.6 billion of the company’s in-force book of fixed and fixed index annuity liabilities in exchange for $1.2 billion in ceding commission from Athene (effective June 1, 2020).

Falcon said the recent Athene agreement further strengthens Jackson’s capital position, as the company continues to deliver on its long-term strategic objectives while serving the growing population of American savers seeking to build financial freedom for life.