Sales of U.S. units by insurers such as Aviva Plc and Sun Life Financial Inc. may pressure the credit ratings of subsidiaries that could be divested by other companies, Moody’s Investors Service said today in a report.
Prudential Plc Chief Executive Officer Tidjane Thiam said the U.S. business has a “great future” in the company, damping speculation he may follow European competitors in selling the North American unit.
On Feb. 12, 2010, Prudential Plc Chief Executive Officer Tidjane Thiam offered $35.5 billion for AIA Group Ltd. in what would have been the firm’s biggest acquisition funded by the U.K.’s largest share sale. The same day he met the country’s regulator and didn’t mention the deal.
Banks may struggle to raise funds from insurers due to a conflict between Basel III rules for lenders and Solvency II regulation for insurers, Prudential Plc Chief Executive Officer Tidjane Thiam said.