Prudential Financial has completed the sale of its life insurance venture, Prudential of Taiwan, to Taishin Financial.
As per the agreement announced on 11 August 2020, Prudential Financial sold its 100% stake in Prudential Life Insurance Company for approximately $187m.
In its announcement, Prudential Financial said that its move aligns with its strategic focus on Japan and emerging higher-growth markets globally.
Founded in 1989, Prudential of Taiwan provides individual whole life and other protection products to middle-market and affluent consumers.
Taishin will leverage this deal to enter the insurance space.
However, Prudential Financial’s asset management business, PGIM, will remain active in Taiwan through PGIM SITE.
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The move was taken amid a period of economic turbulence and ultra-low interest rates.
Multiple US insurers have divested blocks of older life insurance policies. Some sold entire units too.
Earlier this week, Principal Financial announced its plans to divest life insurance blocks with $25bn reserves.
Last Month, Dutch insurer NN Group made an offer to acquire part of MetLife’s life insurance businesses in Europe.
In January 2021, Allstate agreed to sell Allstate Life Insurance Company (ALIC) to entities managed by private equity giant Blackstone for $2.8bn.
In 2019, AXA offloaded a nearly 12% stake in the US life insurance business for $1.5bn.