Shares of Prudential Plc (PUK,PRU.L) declined around 4.5 percent in the mid-day trading on the London Stock Exchange after the UK insurer agreed to pay fines totaling 30 million pounds to settle issues relating to its attempt to acquire American International Assurance Group Ltd. or AIA (AAGIY.PK), the Asian unit of insurer American International Group Inc. (AIG), in early 2010.
Prudential, along with its unit Prudential Assurance Co. Ltd., have agreed to settle the matter with the Financial Services Authority or FSA, in respect of a decision by the FSA that it and the UKLA should have been informed earlier about Prudential's contemplation of the potential transaction.
Prudential Chief Executive, Tidjane Thiam, has also agreed to be censured in respect of a decision by the FSA that it should have been informed earlier.
In a statement, the FSA said, "The investigation was into past events and does not concern the current conduct of the management of the Prudential Group. The FSA accepts that Prudential did consider their obligations in forming their assessment in respect of informing the regulator. Therefore, although the FSA considers that the circumstances of these breaches are serious, the FSA does not consider they were reckless or intentional."
Prudential Chairman Paul Manduca said that the company regrets of not informing the FSA earlier about the fact that they were contemplating the AIA transaction.
Manduca said, "The Board has decided to settle this matter in the best interests of the Group and all its stakeholders. We wish to draw a line under the matter, and to ensure our constructive relationship with our regulators remains good. Tidjane acted at all times in the interests of the Company and with the full knowledge and authority of the Board."
In mid February, FSA had imposed a 9.45 million pounds fine for Swiss financial giant UBS AG (UBS) for failures in its sale of AIG Enhanced Variable Rate Fund of AIG.
In London, Prudential shares are currently trading at 1,049.10 pence, down 48.90 pence or 4.45 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.