Insurer Prudential is knocked by investors' M&G exit
Insurer Prudential revealed a £3.9bn hit to its asset management arm as retail investors were scared away by volatile global markets.
The firm said retail investors pulled the funds out of its M&G business during the third quarter after China's economic slowdown fears sent markets reeling.
It also cautioned it expects "high levels of volatility and macroeconomic uncertainties" to continue into the fourth quarter.
Shares fell 3% as the outflows overshadowed figures showing new business profit across the group lifted 13% to £1.8bn in the first nine months of the year, driven by a 24% jump in Asian new business profit to £976m.
In the UK, new business profit rose 16% to £231m in the first nine months, lifted by demand for flexible retirement products. Chancellor George Osborne has changed the rules so that it is no longer compulsory for retirees to buy an annuity for their pensions, which provides an income for life. The insurer said: "These results reflect our successful response to the new emerging consumer landscape."