5 billion in securities Prudential the U

Tidjane Thiam, the iconic does pattern of Prudential is not human to do things halfway. Or to waffle. Five months to the day after the head of the British life insurer, he just wake up a European insurance tétanisé by the prospect of future Solvency II standards, industry by offering to buy the activities Asian AIG, AIA, for 35.5 billion (EUR 26.3 billion, 23.8 billion pounds). The price is 1.69 times the intrinsic of AIA and 24.7 times profits 2009 (excluding the 340 million of synergies before tax expected within three years).

Larger "deal" ever carried out in the insurance, this mega-operation represents nothing less than a time and a half the capitalization of "CIP" prior announcement (15.3 billion pounds). It is assumed that the British insurer is in may, a giant capital increase of 20 billion ( 13.5 billion), guaranteed by Credit Switzerland, HSBC and JPMorgan Cazenove, and issue 5 billion of debt. This perspective did lose to the British Group 12 of its value yesterday, the title at 530 pence.

The Asia-Pacific region covered

X - Mines of 47 years to the impressive CV and ambition fitted to the body, after his classes at McKinsey at the exit of Insead, he gave up a political career in Côte d'Ivoire after the coup d'etat of 1999 and it is recycled in the insurance with Aviva, before joining Prudential as CFO in May 2008 - Tidjane Thiam had distilled a few clues. It was indeed very recently indicated that he wished that Asia represents 80 of its turnover by 2015, against 44 in 2009 (31.5 in the United States) and 24.8 in the United Kingdom.

The operation, which will allow AIG to recover $ 25 billion in cash and 10.5 billion in securities Prudential - the U.S. insurer hold 11 percent of the capital of "CIP"-, therefore has a very specific goal: create a company of life to the power of fire unparalleled in the Asia-Pacific, the growth potential is regarded as one of the highest in the world (17 growth of premiums per year between 2003 and 2008). The region, "engine of the future growth of the group", will represent 60 of the new business of the two groups combined, made yesterday whether Tidjane Thiam.

New dimension

Of what staggering European competitors such as Allianz, AXA or Generali, which do not conceal their vain international. What also behind most local competitors, knowing that AIA could already boast of ninety years of presence in the Asia-Pacific region, area where he has $ 60 billion of assets, used 23 million customers, has 320,000 agent network and employs 23.500 people. The new entity, which will be more than 30 million customers, will be number one in life insurance in Hong Kong, to Singapore, Malaysia, in Indonesia, the Viet Nam, in Thailand and in the Philippines. This will be the first life insurer foreign in China and India.

With the purchase of AIA, which the closure is scheduled for Q3 2010 taking into account the need to consult the shareholders and approval of the competent authorities, Prudential will also acquire a new dimension and to move in the forefront of global insurers. The new company ("New Prudential"), who will hold both the Prudential and AIA, will keep its headquarters and its rating in London, while a high rating in Hong Kong will be considered once the completed acquisition. The group, who reached last year 1.4 billion pounds of profits, IFRSs and 3.1 billion in EEV standards, against $ 1.75 billion for AIA (1.17 billion books) indicates that it will remain after operation (and therefore after fundraising) excess capital of 3 billion pounds. Remains to convince the market risks, financial as operational, are bearable with available opportunities.