According to a report in London’s Financial Times Switzerland’s Winterthur, the insurance arm of Credit Suisse First Boston, has reached an agreement to acquire the general insurance business of Prudential U.K. for around £450 million ($653 million).
Winterthur has apparently topped offers for the business from Direct Line, Royal & Sun Alliance and the U.K.’s largest insurer, CGNU. According to the FT, Winterthur will take over operations, essentially becoming a distributor, but Prudential will continue to underwrite the policies issued, and the two companies will cooperate on new business.
Selling the general insurance business, which he considers to be too small to maintain, is the first major move undertaken by Prudential’s new chief executive, Mark Wood, who left France’s AXA last February to join the Pru.
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