Prudential/AIG deal: ‘A good thing’ if UK arm is preserved
Prudential's seven million UK policyholders were urged not to panic in the wake of today's historic deal.
Financial advisers say that as long as the Pru keeps its word not to offload the British arm, policyholders need not worry.
Amanda Davidson, a director at Baigrie Davies, said: "We see this deal as being positive for Prudential, they're diversifying and I don't think policyholders should be worried. If it was going to sell the UK arm, that would be a concern, particularly if it was to be run as a closed fund."
Jason Whitcombe with Evolve Financial Planning said: "As things stand today, it's business as usual for UK policyholders.
"But if the UK arm was sold to a closed-insurance company consolidator who wasn't trying to attract new business, that could mean less pressure to deliver an outstanding investment return.
"It might be in a new owner's interest to try to put up charges too. If that happened, I'd envisage a need to move people onto new policies at one of Pru's rivals."
