Prudential says ties with ICICI strong

UK-based financial services company Prudential Plc, which has a life insurance joint venture with ICICI, today said its relationship with the Indian financial services firm "is as strong as ever".

Prudential Plc has entered into a $35.5 billion deal to buy American International Group's (AIG) life insurance business in Asia.

"We have an excellent business in India through our joint venture with ICICI. This has been a long and successful relationship and we are delighted with the performance of ICICI Prudential," Prudential Plc said in a statement here.

"Our commitment to India and to our partnership with ICICI is as strong as ever," the statement said.

The country's largest private sector lender, ICICI Bank, and Prudential have a life insurance joint venture in the country--ICICI Prudential Life Insurance.

ICICI Bank holds a 74 per cent stake in the venture while the balance is held by Prudential Plc.

On Monday, AIG announced the sale of its Asian businesses to Prudential Plc.

The $35.5 billion deal includes $25 billion in cash, $8.5 billion in face value of equity and equity-linked securities, and $2 billion in face value of preferred stock of Prudential, subject to closing adjustments, an AIG statement issued earlier said.

The transaction has been approved by the Boards of both AIG and Prudential, and is expected to close by end 2010.

The US-based AIG on its part has both life and non-life insurance tie-ups with the Tata group-- Tata AIG Life Insurance and Tata AIG General Insurance.