Prudential's U.S. Life Business Enters Private Wealth MarketPrudential's U.S. Life Business Enters Private Wealth Market

Nov 1 (Reuters) - Prudential Plc's U.S. lifeinsurance business Jackson has set up a private wealth and trustarm to manage the investments and finances of very wealthyclients.

Jackson National Life Insurance Company, which providesretirement products and income strategies for clients in theUnited States, said it had created an investment-only,tax-deferred variable annuity for trusts and private banks.

The Lansing, Michigan-based company said the product couldbe used by portfolio managers and trust officers to help highand ultra high-net-worth individuals in tax planning.

Jackson said the new annuity was institutionally pricedinsurance and available as a fee-based service withoutcommissions or exit charges.

Justin Fitzpatrick, head of the new unit, said that sincetrusts and private wealth firms operate on a fee-only model,many of them haven't traditionally used annuities.

"We're hoping to change that. We believe fiduciaries shouldhave access to the tax deferral and income control provided byvariable annuities in a commission-free form that fits theirbusiness," he said.

Prudential's decision to focus on high-net worth individualscomes as comments by some U.S. government officials haveheightened fears that big banks and insurers will have todownsize dramatically if they are to shake off their"systemically risky" label.

Global consultancy firm Capgemini defines high net worthindividuals (HNWIs) as those with investable assets of $1million or more, excluding their primary residence, collectiblesand consumables.

There were 4.8 million such HNWIs by 2016 in the UnitedStates, which along with Japan, Germany and China boast thehighest numbers of millionaires in the world, according toCapgemini.(Reporting by Noor Zainab Hussain in Bengaluru Editing by SusanFenton)