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August 06, 2021 at 02:59 PM
What You Need to Know
- Jackson was founded in 1961 and became part of the U.K. Prudential in 1986.
- The company has 2,900 full-time employees and $351 billion in assets under management.
- U.K. Pru shareholders are preparing to vote on the Jackson split Aug 27.
The leading issuer of individual variable annuities in the United States could become a stand-alone company next month.
Prudential P.L.C., the London-based parent of Jackson Financial, announced today that its shareholders will vote Aug. 27 on a proposal to split from Jackson.
If the shareholders approve the deal, then Prudential will demerge from Jackson by giving Jackson stock to its own shareholders. Prudential shareholders will get one share of Jackson stock for every 40 shares of Prudential shares that they own, or, in same cases, an equivalent amount of cash.
Shares of Jackson stock would begin trading on the New York Stock Exchange, under the ticker symbol JXN, Sept. 1.
Prudential would start out with a 19.9% stake in Jackson and intends to reduce that stake to less than 10% within a year.
Jackson Financial — the parent of Jackson National Life Insurance Company of Lansing, Michigan — announced that a registration statement for the transaction has now been declared effective by the SEC.
Prudential filed at least four notices related to the deal with the SEC this morning.
Jackson’s Future
Prudential says in a new demerger filing that Jackson “intends to focus its new product development efforts on capital-efficient products that help diversify its balance sheet exposures.”
Laura Prieskorn will continue to be Jackson’s CEO.
Prieskorn said in a comment on Jackson’s path forward that the separation will “enhance our mission to help customers pursue financial freedom for life by providing differentiated products through our industry-leading distribution capabilities, efficient operating platform and disciplined risk management.”
Prieskorn said in March that Jackson would diversify by selling more registered index-linked annuities, or variable annuities that provide either no protection or limited protection against account value decreases.
The Companies
The U.K. Prudential is a company that once was a major force in insurance in the United Kingdom but has focused heavily on business opportunities in Asia in recent years.
The U.K. Prudential has no connection with Prudential Financial of Newark, New Jersey.
