Prudential to Contribute $176 Million to China Joint Venture's Capital Increase
20 December 2023 - 7:06PM
Dow Jones News
By Anthony O. Goriainoff
Prudential said it will contribute $176 million in cash to joint
venture Citic-Prudential Life Insurance Company's capital increase
in a move aimed at bolstering its life-insurance presence in
China.
The insurance-and-investment business said the joint-venture's
registered capital will increase to $682 million from $331 million,
and that the equity stakes of Prudential and China's Citic
Financial Holdings remained unchanged at 50-50.
London-listed Prudential said the capital increase--which is
subject to the relevant regulatory approvals--underscores the
attractive long-term prospects of life-insurance business in the
Chinese mainland.
Prudential said its share of the capital increase will be funded
out of its reported $8.3 billion free surplus, as at June 30. The
company said it will look to further deploy this for future growth
opportunities.
"CPL plays a pivotal role in our overall strategy and growth,
and we will continue to focus on delivering our customer-led and
multichannel distribution strategy in the Chinese mainland... We
are confident that the continued focus on quality establishes a
good foundation for future growth, and we remain excited about the
significant potential of the business ," Chief Executive Anil
Wadhwani said.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
December 20, 2023 02:51 ET (07:51 GMT)
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