Prudential  

Prudential goes capital light

"We currently see it in dividends – the yield is about 3 per cent or 4 per cent. It's a lot less than it used to be."

UK market less crucial

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An important aspect to the decision is the fact that the UK has become a less important, and less profitable, part of the Prudential business. Henry Heathfield, equity analyst at Morningstar, said: "Prudential is a massive company and it's particularly large in US and Asia. UK is the worst performing of the three. The other two have very good products offerings and asset management arms."

In the US, the Pru is much stronger on variable annuities, which carry much more risk for the consumer. They are capital light and they are quite profitable because of the fees that come with these products.

In Asia the company is big in asset management and insurance, with AUM of £118bn, while operating profits before tax last year were £1.64bn. In the US there was AUM in connection to variable annuities of £120bn while IFRS operating profits were £2bn. In the UK the same figures for long-term business was £799m for 2016, with funds under management of £137bn.

Mr Heathfield said: "The UK is still a long-term option. It's higher quality business in the US and Asia, but I think they can increase the quality in the UK."

Melanie Tringham is features editor of Financial Adviser