Prudential increases cost savings target

Prudential today raised the cost savings target for its struggling UK business by more than 40% to £195m (€285.4m) and said it was pulling out of key pension and savings markets as part of a rescue plan for its home region.

The life insurance giant revealed it was also buying Equitable Life’s £1.8bn (€2.6bn)-with-profits annuity book as it unveiled better-than-expected full year pre-tax operating profits of £1.98bn (€2.9bn).

Prudential said it had withdrawn from some areas of individual pensions and unit-linked bonds markets as part of its turnaround strategy for the ailing UK business.

The company did not immediately provide details about how it planned to achieve the cost savings.