Prudential fails in AIA bid, future of pitches uncertain

It remains unclear how the movements will effect the on-going digital pitch in Singapore.  

According to one agency source close to AIA, pitches that were slated to be completed have not been decided with the expediency initially expressed because no one has a definitive idea how departments will be structured if the deal is signed.

Another source working with AIA anticipated bumpy roads ahead in terms of marketing meetings, while others at agencies close to Prudential suggest Prudiential’s agency alliances will play a more prominent marketing role for both entities.

The deal collapsed after Prudential failed to negotiate a lower price for AIA.

Prudential had asked AIG (American International Group) to cut its asking price of US$35.5 billion to nearer US$30 billion, following a revolt by the British company's shareholders.

But AIG said that 'after careful consideration, the company will adhere to the original terms of its previously announced agreement'. 'The company will not consider revisions to those terms,' it added.

Analysts say, if the collapse of the deal is confirmed, it would pile fresh pressure on Prudential's chief executive Tidjane Thiam, who wants to transform the 162-year-old British company into an international insurance powerhouse.

The takeover would have been the biggest ever in the insurance sector, transforming Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and AXA. 

In terms of marketing, AIA works with M&C Saatchi and Leo Burnett, and last year rebranded with its ‘We are AsIA’ and ‘The power of we’ campaigns ahead of its intended IPO, which later stalled.

Meanwhile, Ogilvy & Mather works with Prudential.

Earlier this year, the company also moved its non-China media to Universal McCann. At the time, and an insider at that agency confirmed it was “business as usual across Asia” in light of the impending merger.