Pru chairman set to quit after rebellion by shareholders

The chairman of insurance giant Prudential is to quit 18 months after he took most of the flak for its failed £22bn Asian takeover bid.

Harvey McGrath, who will be 60 in February, said he will leave next year once his replacement has been found. He has been chairman for three years. He said that he was leaving at a time of his own choice to devote more time to his charitable and philanthropic work.

But analysts said it had been inevitable he would leave after the battering he took from shareholders at this year's annual meeting, when 22 per cent of votes were cast against his reappointment.

Mr McGrath became the target of shareholders' ire following Prudential's failed £22bn takeover of Hong Kong rival AIA in June 2010. The collapse of that deal cost the Pru £377m in advisory fees and costs.