Prudential has offloaded its US arm to the largest independent broker-dealer in the US for up to $448m (£348m).
The FTSE 100 insurer announced this morning it had sold the network, consisting of Invest Financial, Investment Centers of America, National Planning Corporation and SII Investments, through its subsidiary National Planning Holdings to LPL Financial.
The deal is structured as an asset sale for an initial purchase price of $325m, which Prudential said may increase to a maximum of approximately $448m subject to "certain transaction criteria". The firm expects the deal to be completed by the end of the first quarter next year.
Barry Stowe, chairman and chief executive of Prudential's North American business unit, said:
While we still very much believe in the independent broker-dealer model, our primary strategy in North America is to focus on being the leading manufacturer of retirement products.
The transaction with LPL Financial provides us with a compelling opportunity to divest our ownership in the NPH network to a leading independent broker-dealer well suited to support financial advisors and their retail clients going forward.
It marks the latest shake-up for the firm, after it announced plans last week to merge its UK and European asset management and insurance arms, forming M&G Prudential. The combined business will manage some £332bn of assets for over 6m customers.
Prudential boss Mike Wells said the two businesses have "a long history of collaboration and we are fortunate to have two highly respected brands".
He added: "Combining these businesses will allow us to better leverage our considerable scale and capabilities."
In the firm's recent results, it posted a five per cent rise in first-half operating profit to £2.36bn.