04 Dec 2007

Proposed transfer of Equitable Life's with-profits annuities book to Prudential receives Court approvals

Prudential UK ("Prudential") and Equitable Life (‘Equitable’) confirm that the proposed transfer of Equitable’s with-profits annuities book to Prudential has received final Court approval in the UK and the Channel Islands. This follows the Extraordinary General Meeting on 26 October at which over 98 per cent of Equitable’s voting members supported the proposed transfer. The transaction is expected to complete by 31 December 2007.

Under the terms of the agreement, the portfolio of with-profits annuities will transfer into Prudential's with-profits fund. Prudential will take over direct responsibility for the management of these policies and payment to these annuitants after the transfer is completed.

Equitable's with-profits annuities book covers approximately 62,000 policies and is anticipated to have assets of around £1.7 billion as at 31 December 2007. The transaction is expected to generate premium income for Prudential of approximately £170 million on an APE basis and this will be recognised once the transaction completes.

Nick Prettejohn, Chief Executive, Prudential UK, said: "We are delighted that the proposed transfer has received the necessary Court approvals and the transaction is on schedule to complete by the end of this year. The agreement will provide Equitable’s with-profits annuitants with improved prospects and greater security by being part of one of the largest and financially strongest funds in the UK. The fund has delivered consistently strong investment returns over many years and as a result of this transaction, Equitable’s with-profit annuitants will benefit from Prudential’s considerable experience in the annuities market where we are a market leader."

Vanni Treves, Equitable Life’s Chairman said: "At our EGM in October, policyholders voted more than 98 per cent in favour of this transfer. We are delighted that the final legal hurdles have been completed and we will be able to deliver the proposal which policyholders have supported so overwhelmingly."

Charles Thomson, Equitable Life’s Chief Executive added: "There is an enormous amount of ground-breaking work required to make innovative deals like this one happen. It is very gratifying to be able to deliver a transaction which has the approval of the Courts, the Regulator and, most importantly, policyholders."

ENDS

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Prudential plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has £256 billion in assets under management as at 30 June 2007. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.

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