New faces on the Prudential board

Sir Howard – chairman of the Financial Services Authority between 1997 and 2003 – becomes a non-executive director at the group and will also head up its group risk committee, which is currently being set up.

He will be paid 116,500 a year, Prudential said.

His appointment comes as one of a number of board-level changes, with Paul Manduca also joining as non-executive director and the recruitment of a new head for Pru's US business Jackson.

Mike Wells, vice chairman and chief operating officer at Jackson, will succeed Clark Manning at the helm of the US group after his decision to step down after 15 years with the company on January 1.

News of Sir Howard's appointment confirms reports earlier this month that Pru was seeking to strengthen its board in the wake of its failed bid for AIA, the Asian business of US insurer AIG.

The debacle led to investor criticism over its handling of the deal.