Pru's new chief Mike Wells won't be losing sleep for a while yet
Outlook
A couple of key events formed a salutary backdrop to the first outing of the Pru’s new chief, Mike Wells: a merger of two annuities specialists stricken by No 10’s pensions revolution and a titanic move by China to boost its flagging economy.
The first served as a reminder of the Pru’s strength in diversity. The annuities change in Osborne’s Budget last year, while strychnine for Just Retirement and Partnership Assurance, registers as barely a pimple on a global beast like the Pru.
But the second pointed to the risks it faces by having so much of its business in the China-dominated Asian region.
Doubters make much of the latter, but Mr Wells – a keen historian of the European Renaissance – isn’t losing sleep. For all the short-term stresses in China, the rise of the middle classes in Asia is happening on a scale akin to that in the Europe of the Medicis. It will continue as the biggest demographic theme of the 21st century.
Selling these folks affordable savings and protection products – particularly where state welfare provision is practically non-existent – should be a doddle for decades to come. The tricky bit for Mr Wells will be proving his worth at a business whose success has already been assured by his predecessor. No easy task.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies