Prudential's Asian head in surprise departure

The head of Prudential's Asian operations, Mark Norbom, surprised investors by quitting the insurer yesterday after two and a half years in the job.

The insurance group would not give a reason for Mr Norbom's departure, saying only that he and the chief executive, Mark Tucker, had come to an agreement that now was the right time for him to "pursue other interests". However, it is believed the pair had a falling out over the strategic direction of the company. Mr Tucker was Mr Norbom's predecessor as Prudential's head of Asia.

"Personally and on behalf of the board, I would like to wish Mark Norbom well and thank him for his contribution since joining us in January 2004," Mr Tucker said.

"[Prudential's Asian business] is in good health, delivering strong growth, and went cash positive for the first time this year. We remain very excited about the growth opportunities in the region."

It is not thought Mr Norbom has another job to go to. However, he had a 12-month notice period, so will be in line for a pay-off of at least £515,000 - his basic annual salary. Last year, he was paid £1.342m including bonuses and benefits.

The news surprised the City, as Mr Norbom, 48, has widely been considered to have done a good job at the Pru. Asia has become the company's engine for growth, complementing its more established and mature UK and US businesses.

Mikir Shah, an analyst for Fox Pitt Kelton, said: "Pru's Asian operations have been growing very strongly. Its margins have held up and it's delivered what it promised, which was self-funding growth. There's no obvious reason for [Mark Norbom] to be leaving."

City rumours centred around the suggestion that Mr Tucker and Mr Norbom had fallen out over Aviva's takeover approach for Prudential in March. Mr Norbom is reputed to have been in favour of the deal, which Mr Tucker staunchly opposed.