Prudential has reported total achieved profits after restructuring of £1.186bn for 2001. That's 15% higher compared to 2000.
The company agreed to sell its general insurance business to the Churchill group in November 2001. The price includes £360m profit before tax on the direct sale, £220m release of solvency capital, £21m of net profit on unearned premium reserve and £236m (net present value) of future commissions and profits.
Under the terms of the deal, Churchill gains the right to renew Prudential's 1.9m general insurance policies and will cross-sell motor and household products to the Pru's four million medium and long-term savings customers for 15 years.
