Pru's £13.3bn cash call for AIG division

Pru will tap shareholders for a mammoth 20 billion dollars (13.3bn) after fees as part of its takeover of AIA – the Asian arm of bailed-out US insurer AIG.

The deal will transform Pru into the largest insurer in Asia – and the firm predicted 60 per cent of new business profit would come from the fast growing region after combining both businesses.

The combined group will have around 30 million customers and will create a "powerhouse" insurer, according to Tidjane Thiam, chief executive of Prudential.

He added: "This transaction is hugely exciting and a one-off opportunity to transform the group.

"We believe that the combination of Prudential and AIA will create a unique life insurance business with a common set of customer-focused values and heritage."

The group will continue to be headquartered in the UK following the takeover, Pru confirmed.

But AIG, which is now controlled by the US government after a 182 billion dollar (120bn) bail-out amid the financial crisis, will retain a stake in Pru as part payment under the cash-and-shares deal.

Reports suggested Pru may look to sell its British arm after the acquisition, but the widely touted suitor for its domestic business, Friends Provident owner Resolution, said yesterday it was not in talks with Pru.

Pru suggested the UK operation was not up for sale in the immediate future and described London as its "historic home".

Mr Thiam said: "The UK generates cash and capital for us – it's a very important part of the group and sits comfortably within our portfolio."

The Pru has around seven million customers in the UK.

The group signalled potential job losses from merging the two Asian operations under "some operational restructuring" which will make annual savings around 340 million dollars (227m) a year.

The "best from both" workforces will be chosen for roles in the combined group, although Pru stressed the two companies were complementary.

AIA employs around 320,000 agents and 23,500 employees and services markets across 15 Asian countries.