ASIANET: UK Financial Services Giant Prudential Enters Japanese Life Insurance Market With Acquisition of Orico Life Insurance

Acquisition of Orico Life Insurance

TOKYO, Jan. 23 /PRNewswire Asia-AsiaNet/ -- UK financial services giant, Prudential plc (Prudential) and Orient Corporation (Orient), one of Japan's major consumer credit providers, announced today that they have signed a sale and purchase agreement for Prudential to acquire 100% of Orico Life Insurance Co Ltd, a modern, multi-distribution based Japanese life insurance company. The purchase price is 23 billion YEN (133m GBP/ US$196m)

Orico Life, established in 1990, is based in Tokyo and has operations in a further 10 locations in Japan. It has over 240,000 in force policies, with total assets at 31 March 2000 of 650 million GBP. It offers a wide range of products including term, savings and protection. Distribution is multi-channel and includes independent professional agents, financial institutions and accountants.

Orico Life's distribution arrangements with Orient will remain in place and it will continue to work closely with Orient in the areas of distribution and provision of wealth management products.

Commenting on the acquisition, Jonathan Bloomer, Prudential's Group Chief Executive said, "Japan is the world's largest life insurance market and we have been reviewing possible entry opportunities for some time. We are delighted to have found, in Orico Life, such a modern and innovative business which provides us with a solid platform to build scale in this very significant market".

This acquisition continues Prudential's well-managed and focussed expansion strategy in Asia. Mark Tucker, Chief Executive of Prudential Corporation Asia added, "This acquisition of a progressive Japanese life player with excellent growth potential is a great fit with our strategy here in Asia. Orico Life has a sound infrastructure and financials which will enable us to leverage our regional distribution initiatives and product strengths straight away and accelerate the next exciting stage of Orico Life's development."

With the acquisition of Orico Life, Prudential now has life operations in 11 countries across Asia (including China and India) combined with a rapidly expanding mutual fund presence in the region. Prudential was first established in Asia in 1923 and is currently the UK's largest life insurance company in Asia.

Prudential Singapore was recently awarded the title " Asia's Life Insurance Company of the Year" at the Asia Insurance Industry Awards 2000.

About Prudential

Established in London in 1848, Prudential is one of the UK's leading life insurers and has over US$270 billion funds under management worldwide. M&G, the UK's leading mutual fund business and Scottish Amicable a leading product provider for the IFA market is part of the Group. Prudential is also the majority shareholder of egg: |, the fastest growing retail financial services Internet company in Europe. Internationally, in addition to Prudential Asia, the Group also owns Jackson National Life in USA, and is building a new European business.

Alongside its wholly owned operations in Asia, Prudential has formed successful joint venture partnerships and strategic alliances with some of the region's leading financial institutions including, CITIC (China International Trust and Investment Corporation) India's ICICI, Bank of China and Standard Chartered Bank.

About Orient Corporation

Orient is one of the largest consumer credit companies in Japan, providing credit cards, guarantee and loan agent services together with direct cash loans through a network of 214 domestic branches. It is Japan's largest provider of automobile loans, has over 9 million credit card customers and operates through 500,000 retail outlets. Orient also has strong ties with its main bank The Dai-Ichi Kangyo Bank.

Prudential has been advised by UBS Warburg (Japan), Limited, a subsidiary of UBS AG. Orient has been jointly advised by The Dai-Ichi Kangyo Bank and PricewaterhouseCoopers Financial Advisory Services Co., Ltd.

SOURCE Prudential Corporation Asia Ltd.

CONTACT: Mark Tucker, Chief Executive, Prudential Corporation Asia, +852-2918-6300, or Gary Bennett, Business Development Director, Prudential Corporation Asia, 813-5322-1234, c/o Park Hyatt Hotel Tokyo

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