‘Safe pair of hands’ Paul Manduca set for Prudential promotion

By MARTIN FLANAGAN
Published on 21/05/2012 00:00

CITY asset management doyen Paul Manduca could be named as insurer Prudential’s chairman within days, replacing out-of-favour Harvey McGrath.

Manduca, a former chief executive of Rothschild Asset Management, is understood to have been chosen by the Pru’s board after consideration of internal and external candidates, including Sir Nigel Rudd of Invensys and Pearson chairman Glen Moreno.

Manduca, 60, is Prudential’s senior independent director, who had been charged with the responsibility of finding a successor to McGrath. Initially he had indicated he was not interested in taking on the chairman’s role but is understood to have had a change of heart at the urging of the board.

McGrath’s reputation in the City never recovered from the group’s botched £22.4 billion takeover attempt of Asian insurer AIA in 2010. In December last year he announced he was stepping down after 26 per cent of shareholders at the previous AGM voted against his re-election as chairman.

It is understood that the Financial Services Authority (FSA) is assessing the planned appointment of Manduca, as it does all top-level City changes. Prudential’s M&G business is also one of Britain’s biggest fund managers.

Ironically, one of the other potential internal candidates for the post of chairman was non-executive director Sir Howard Davies, former chairman of the FSA. One analyst commented: “Manduca is one of the City’s own so the announcement will not go amiss. He will be seen as a safer pair of hands.”

Both Manduca and Howard joined Prudential in 2010 following the City backlash against an ill-starred attempt by the group to swoop on AIA, the Asian arm of AIG of the US.

McGrath and his chief executive, Tidjane Thiam, were attacked by institutions for poor communications on the bid and an associated mega-rights issue.