 Prudential is shifting the focus of its UK business |
Prudential says 3,000 of its staff will be affected after it raised its UK cost-cutting target to �195m ($375m) from �115m. The savings will come from internal cost-savings as well as the offshoring and outsourcing of more jobs.
Prudential will focus on areas such as annuities and is buying Equitable Life's with-profits annuity portfolio.
The Pru's life and pensions business employs about 6,000 people, including 2,400 in Stirling and 1,900 in Reading.
Prudential also confirmed that it is considering a redistribution of its inherited estate, which is the extra money built up in its with-profits fund once it has met its commitment to policyholders.
The review of its domestic business was launched after Prudential fought off a merger approach from rival Aviva.
"We are looking at the work of 3,000 people and the importance of the work of those 3,000 people we have yet to determine," said Nick Prettejohn, chief executive of Prudential UK.
"Whether our cost savings come from more offshoring or more outsourcing we have yet to determine."
News of the overhaul came as the company released better-than-expected annual results, with pre-tax operating profits up 15% to �1.98bn.
Equitable Life
Prudential's purchase of Equitable Life's with-profits annuity portfolio will affect about 50,000 policyholders.
Equitable says it is good news for the people whose policies are being transferred because Prudential is free to make more varied investments, which could increase bonuses.
Equitable Life's with-profits fund has operated with strict limitations since the life assurer came close to collapse in 2000.
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Whether our cost savings come from more offshoring or more outsourcing we have yet to determine.
