{"id":28202,"date":"2012-05-31T10:56:00","date_gmt":"2012-05-31T10:56:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/prudential-plc-puk-to-acquire-the-us-holding-company-of-realic-for-398m\/28059\/"},"modified":"2012-05-31T10:56:00","modified_gmt":"2012-05-31T10:56:00","slug":"prudential-plc-puk-to-acquire-the-us-holding-company-of-realic-for-398m","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/prudential-plc-puk-to-acquire-the-us-holding-company-of-realic-for-398m\/28202\/","title":{"rendered":"Prudential plc &#8211; PUK &#8211; To acquire the US holding company of REALIC for \u00a3398m"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!-- AddThis Button BEGIN --><\/p>\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a><br \/>\n<a class=\"addthis_button_preferred_2\"><\/a><br \/>\n<a class=\"addthis_button_preferred_3\"><\/a><br \/>\n<a class=\"addthis_button_preferred_4\"><\/a><br \/>\n<a class=\"addthis_button_compact\"><\/a><br \/>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n<p><script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script><br \/>\n<!-- AddThis Button END --><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><!--\/mfunc--><\/p>\n<p>Jackson National Life Insurance Company , an indirect wholly-owned subsidiary of <strong>Prudential plc (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=PUK\">NYSE:PUK<\/a>)<\/strong>, entered into an agreement to buy SRLC America Holding Corp from Swiss Re. Jackson will pay US$621 million (\u00a3398 million) in cash for the business, financed from its own resources. The purchase price will be adjusted as explained in more detail in the explanatory notes below. Swiss Re will retain a portion of the SRLC business through reinsurance arrangements to be undertaken prior to completion. The transaction is subject to regulatory approval and is expected to complete in the third quarter of 2012.<\/p>\n<p><strong>Financially attractive<\/strong><\/p>\n<ul>\n<li>Accretive to IFRS and EEV earnings immediately; Accretion to Jackson\u2019s IFRS pre-tax earnings is estimated at \u00a3100 million in the first year of ownership<\/li>\n<li>Represents price-to-European Embedded Value of approximately 46 per cent<\/li>\n<li>Capital efficient bolt-on acquisition entirely funded by Jackson\u2019s own resources<\/li>\n<li>Modest impact on the Group\u2019s IGD excess capital of \u00a30.1 billion<\/li>\n<\/ul>\n<p><strong>Strategically enhancing<\/strong><\/p>\n<p><!--Ad Injection mfunc mode ad code--><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<ul>\n<li>Increases scale and diversifies Jackson\u2019s earnings<\/li>\n<li>Adds high-quality seasoned and stable income stream<\/li>\n<\/ul>\n<p><strong>Increases Jackson 2013 cash net remittance objective<\/strong><\/p>\n<ul>\n<li>2013 Jackson annual net remittance objective increased from \u00a3200 million to \u00a3260 million<\/li>\n<\/ul>\n<p>SRLC is a life insurance business that sits within the US division of Swiss Re\u2019s Admin Re. The primary operating subsidiary of SRLC is Reassure America Life Insurance Company (\u201cREALIC\u201d), which since 1995 has completed a significant number of transactions through stock acquisitions and reinsurance arrangements and has acquired a diverse portfolio of traditional US life business. The earnings of SRLC are derived from seasoned, long-duration cash flows generated principally from term life, whole life and basic universal life products. Jackson will acquire assets related to the subject business of approximately \u00a36.7 billion and approximately 1.5 million policies.<\/p>\n<p>Commenting on the acquisition, Mike Wells, President and Chief Executive Officer, Jackson, said: \u201cThis bolt-on acquisition is in-line with our strategy and is a great opportunity to increase the scale of our life business. It is a capital efficient transaction that will produce an attractive IRR (internal rate of return) and payback period commensurate with what we achieve organically on writing new business. It helps diversify Jackson\u2019s earnings by increasing the amount of income we generate from underwriting activities thereby enhancing the quality of our earnings and our ability to remit more cash to the Group.\u201d<\/p>\n<p><strong>About Prudential plc &#8211; PUK<\/strong><br \/>\nPrudential plc (PUK) is incorporated in England and Wales, and its affiliated companies constitute one of the world&#8217;s leading financial services groups. PUK provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and has \u00a3351 billion in assets under management (as at 31 December 2011). 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.<\/p>\n<p><!-- AddThis Button BEGIN --><\/p>\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a><br \/>\n<a class=\"addthis_button_preferred_2\"><\/a><br \/>\n<a class=\"addthis_button_preferred_3\"><\/a><br \/>\n<a class=\"addthis_button_preferred_4\"><\/a><br \/>\n<a class=\"addthis_button_compact\"><\/a><br \/>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n<p><script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script><br \/>\n<!-- AddThis Button END --><\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/gm-reports-11-surge-in-sales-for-may-biggest-leap-since-august-2009\/28334\"><br \/>\nGM Reports 11% Surge in Sales for May, Biggest Leap Since August 2009<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/gold-prices-leap-4-post-biggest-1-day-gain-in-3-years\/28333\"><br \/>\nGold Prices Leap 4%, Post Biggest 1 Day Gain in 3 Years<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/stocks-end-sharply-lower-2\/28332\"><br \/>\nStocks End Sharply Lower<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/stocks-headed-for-a-sharply-lower-finish-9\/28309\"><br \/>\nStocks Headed for a Sharply Lower Finish<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/gold-and-silver-prices-in-green-7\/28297\"><br \/>\nGold and Silver Prices in Green<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/u-s-equities-hammered-after-dismal-u-s-job-report\/28296\"><br \/>\nU.S. Equities Hammered After Dismal U.S. Job Report<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/splunk-inc-splk-first-quarter-was-a-strong-start-to-fiscal-2013\/28280\"><br \/>\nSplunk Inc. &#8211; SPLK &#8211; First quarter was a strong start to fiscal 2013<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Jackson National Life Insurance Company , an indirect wholly-owned subsidiary of Prudential plc (NYSE:PUK), entered into an agreement to buy [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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