Prudential has revealed it is to demerge its UK and Europe businesses (M&G Prudential) from Prudential plc, resulting in two separately-listed companies, with different investment characteristics and opportunities.

Mike Wells, group chief executive, said: “Our businesses share common heritage, values and purpose. Looking forward, we believe we will be better able to focus on meeting our customers’ rapidly evolving needs and to deliver long-term value to investors as two separate businesses. On completion of the demerger, shareholders will hold interests in both Prudential plc and M&G Prudential.”

M&G Prudential has agreed to the sale of £12.0 billion of its shareholder annuity portfolio to Rothesay Life.

Wells added: “In preparation for the UK demerger process, and to align the ownership of the Group’s businesses with their operating structures, Prudential plc intends to transfer the legal ownership of its Hong Kong insurance subsidiaries from The Prudential Assurance Company Limited (M&G Prudential’s UK regulated insurance entity) to Prudential Corporation Asia Limited, which is expected to complete by the end of 2019.”