Pru refuses to return £8.7bn

THE Prudential will not be returning any of its £8.7 billion of surplus funds to policyholders and shareholders.

The insurer said an "extensive assessment" had concluded that maintaining the current operating model for its with-profits fund was in the best long-term interest of current and future policyholders and shareholders. It argued that having a strong inherited estate gave the group greater investment flexibility, allowing it to have greater exposure to higher risk assets that potentially offered higher returns.