Prudential Financial is eyeing an expansion of its asset management business and overseas footprint leveraging the capital freed up as part of an overhaul by chief executive Charlie Lowrey, reported Bloomberg News.
The New Jersey-based firm is aiming to grow its asset management arm PGIM, through acquisitions, Lowrey told the news agency in an interview.
Prudential, which is also targeting to expand in markets such as China and India, is considering an infrastructure manager among its potential acquisition targets.
The plans follow a three-year strategy launched by Lowrey last year in order to reshape the firm through cost savings, share buybacks and deals.
Lowrey was quoted as saying: “We’re going to look to augment our existing capabilities.
“Right now what you’re seeing us do is programmatic acquisitions that fill in sort of scale and scope where we need to.”
A former architect and an investment banker, Lowrey has led the firm’s withdrawal from market-sensitive businesses, including the sale of a part of its variable annuities business.
The shakeup is intended to free up $5bn to $10bn in capital, which will be either returned to shareholders or reinvested into its businesses in emerging markets as well as PGIM.
Prudential is also seeking to take advantage of the higher interest rates resulting from inflation. Lowrey said: “For insurance companies, given the size of our general account, higher interest rates is a good thing, because we are constantly reinvesting in fixed income.”
Speaking about the Russia-Ukraine crisis, Lowrey said that Prudential has ‘de minimis’ exposure to Russia. The firm has no operations in Belarus, Ukraine or Russia.
Last week, Prudential Financial partnered with LeapFrog Investments to buy a strategic minority holding in South Africa-based financial advisory firm Alexander Forbes.