LONDON (AFP) - British insurer Prudential announced plans to sell new shares worth one billion pounds (1.44 billion euros, 1.80 billion dollars) to expand in its home market and comply with new regulations.
Under the rights issue, the company will offer investors one new share for every six they already hold at a price of 308 pence per share.
"This rights issue is about raising capital to grow the UK business. Aside from the UK growth opportunities, we want to ensure we remain appropriately capitalised going into a new regulatory regime," chief executive Jonathan Bloomer said Tuesday.
The announcement came as Prudential reported that sales -- based on the industry's standard measure -- climbed by 16 percent to 1.3 billion pounds in the first nine months of 2004.
Prudential said that the sales momentum seen in the third quarter positioned its Asian business well for a strong fourth quarter, in line with market expectations.
"We remain confident that the profitable growth being delivered in Asia is sustainable over the long-term and the business remains on track to begin remitting surplus capital to the group in 2006."
In the first nine months of this year, sales rose by 19 percent at Prudential UK and Europe combined to 521 million pounds, by 18 percent at US unit Jackson National Life to 355 million pounds, and by 12 percent at Prudential Corp Asia to 394 million pounds.