Prudential PLC has provided an update on its ownership interest in Prudential Assurance Malaysia Berhad (PAMB), its conventional life insurance business in Malaysia. Prudential holds a 51% stake in the holding company of PAMB, with the remaining 49% held by Detik Ria Sdn Bhd. A legal dispute arose when Detik Ria failed to transfer its shareholding to Prudential, leading to a series of court rulings. The Federal Court of Malaysia has overturned previous rulings, resulting in Prudential now reflecting a 49% non-controlling interest in its group financial statements for Detik Ria's minority shareholding.
This change in accounting treatment will be reflected in Prudential's HY24 financial reporting, with a marginal impact on IFRS and EEV shareholders' equity. However, it does not affect Prudential's control over PAMB's operations or its service commitment to customers. The decision is related to a one-off shareholder dispute at an intermediate holding company level and has no operational impact on PAMB or Prudential's separate Malaysian takaful business.
Prudential expressed surprise and disappointment at the Federal Court decision, given previous rulings in its favor. Despite this, the company remains committed to serving the long-term protection and savings needs of its customers in Malaysia. The decision's impact is limited to the accounting treatment of Prudential's ownership interest in PAMB, and the company is evaluating next steps.
Prudential PLC provides life and health insurance and asset management in 24 markets across Asia and Africa. It aims to be the most trusted partner and protector for current and future generations by offering accessible financial and health solutions. The company has dual primary listings on the Stock Exchange of Hong Kong and the London Stock Exchange, as well as secondary listings on the Singapore Stock Exchange and the New York Stock Exchange.