M&G Prudential to change name after demerger

M&G Prudential to change name after demerger

M&G Prudential will change its name to M&G following the completion of its demerger later this year but will retain the Prudential brand for its savings business.

In March 2018, M&G Prudential announced plans to demerge its UK and European business M&G Prudential from its Asian business.

The demerger will create two London listed businesses, and shareholders will hold shares in both.

In an update published today (August 14) Prudential announced that M&G Prudential intends to list its shares under the name M&G when its demerger is completed.

As an independent company, M&G will have a single corporate identity and will continue with two customer-facing brands. 

The Prudential brand will be used for its savings and insurance clients in the UK and Europe as well as its asset management business in South Africa.

The name M&G Investments will be the brand name for asset management clients globally.

John Foley, chief executive of M&G Prudential, said: "We are in the fortunate position of having two strong brands, each with a rich heritage. But as an international business operating in 28 markets, we need a single corporate name we can use globally.  

“So to distinguish ourselves in the global market, we have decided to list our shares on the London Stock Exchange as M&G plc, which we expect to take place in the fourth quarter of this year.”

Further details of the new M&G business will be announced closer to the time of listing but for now the company will continue to use M&G Prudential as its corporate name, it stated.

Prudential also published its half results for 2019, which showed operating profits at M&G Prudential of £687m for the first six months of 2019, down 7 per cent from £736m for the same period in 2018.

The company's PruFunds saw net inflows of £3.5bn, which contributed to 6 per cent growth in total assets under management to £341.1bn.

Assets in the PruFund range were £49.6bn as at June 30, 2019.

Mike Wells, group chief executive at Prudential, said: "Our focus on key areas of operational improvement and continued investment has enabled us to drive growth and position ourselves to continue to grow profitably.” 

He added: "M&G Prudential is approaching life as a fully independent business, and its board and management are in place.

"The business is well positioned to capture the opportunities created by shifting demographics and the search for yield, through its differentiated, high-value savings and investment solutions. 

"Our focus on structural growth opportunities in terms of geographies, products and distribution platforms and our diligent approach to execution mean that we are well placed to continue to deliver important benefits for our customers and profitable growth for our shareholders."

In October 2018, Mike Evans was named as the new chairman of M&G Prudential.

Mr Evans brings 36 years of savings and investment experience to the role, having held roles such as chief executive at Skandia and chairman at Hargreaves Lansdown.