Prudential insurance aims for growth

Insurance giant Prudential is targeting a dramatic expansion of its UK life and pensions business in a bid to appease shareholders angered by last year's contentious £1 billion rights issue.

If the Pru meets its goal, it will grow twice as fast as the market rate, the Financial Times reports.

The Pru faced strong criticism after it launched its rights issue last year, with many shareholders claiming the move was a strategic U-turn after it was previously cautious on UK prospects.

Further failure to progress in the UK would pile on the pressure for chief executive Jonathon Bloomer, who faced calls for his resignation after last year's controversial rights issue.

But the Pru is confident that its renewed efforts will serve to beef up its UK business over the coming year.

It anticipates the UK life and pensions market growing by six-seven per cent in terms of the volume of products sold in each of the next two to three years and is aiming to grow sales 12-14 per cent a year.

However, the life assurer moved to ease concerns that a cost cutting regime would involve job losses. Instead, it claims, money will be saved through improvements in technology.