Fund managers 'welcome' M&G Prudential demerger despite analysts flagging potential risks

Focus on asset management

Tom Eckett
clock • 4 min read

Managers holding Prudential in portfolios have supported the planned separation of M&G Prudential from the international insurance operations claiming it presents a "significant" opportunity for the business, but analysts have pointed to a number of potential risks ahead of the transition.

Last Wednesday, Prudential's shares jumped 5% on the news it would be splitting its business to create two separate companies each with their own distinctive investment propositions, London headquarters and independent listings on the London Stock Exchange. M&G Prudential has been lined up to be "an independent, capital-efficient UK and Europe savings and investment provider", while Prudential is aiming to be "a leading international insurance group focused on high-growth opportunities in Asia, the US and Africa". The demerger, which remains subject to shareholder and regulatory appro...

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