Prudential CFO James Turner resigns following ‘code of conduct’ investigation, insurer says

Prudential said its chief financial officer James Turner has resigned following an investigation into a “code of conduct issue” relating to a recent recruitment.

Hong Kong-based Turner, 54, was named CFO in March 2022 after serving as the Asia-focused insurer’s group chief risk and compliance officer. He had been with the London-based company since 2010.

“The group sets itself high standards and Mr Turner fell short on this occasion,” Prudential said in a Hong Kong stock exchange filing.

Turner could not be immediately located for comment on Wednesday.

Ben Bulmer, the financial chief of Prudential’s insurance and asset management arm, will become the new group CFO, subject to regulatory approval, the insurer said.

Bulmer previously served as CFO for Prudential Corporation Asia and has served in a variety of leadership positions across the insurer’s finance functions in Asia and London since joining the company in 1997, Prudential said.

The insurer did not provide additional details of the Turner inquiry, but said there were “no implications” for the financial performance, reporting or operations of the business.

Prudential, which is dual listed in Hong Kong and London, saw its shares fall less than 1 per cent to close at HK$107 in Hong Kong following the announcement.

The resignation comes just months after Anil Wadhwani joined Prudential as its new CEO in late February following a stint as the top executive at Manulife Asia. It also comes amid a period of flux at the insurer following the departure of longtime CEO Mike Wells last year.

“Our code of conduct sets out that we expect all our colleagues to adhere to the highest professional standards and behaviours,” Wadhwani said in a statement. “On behalf of the board, I would like to extend our gratitude to James for his twelve years of contribution to the business and wish him well for the future.”

Wadhwani, who is based in Hong Kong, is beginning to put his stamp on the business after Wells spent several years shifting the business to primarily providing life and health insurance and asset management services in Asia and Africa before retiring last year.

Under Wells, Prudential spun off its UK and European retirement business in 2019 and its US retirement arm in 2021.

The company was added to the benchmark Hang Seng Composite Index in September, making it eligible for the Hong Kong-Shenzhen Stock Connect and enabling mainland Chinese investors to trade its shares for the first time.

Prudential reported a profit of US$1 billion in 2022, after reporting a loss of US$2.81 billion in 2021.

The insurer also has benefitted from the reopening of the border between Hong Kong and mainland China this year, reporting a 318 per cent year-over-year jump in so-called APE sales in Hong Kong in the first quarter.

APE sales are a company measurement of new business activity. The city is its biggest market.

Turner had often served as a public face for the company in media interviews, telling the Post at the Global Financial Leaders’ Investment Summit in the city in November that Prudential was “incredibly bullish” on Hong Kong’s future.

He stepped down from the insurer’s board of directors in January, with the company saying at the time that it was the practice of many Asian companies not to have their CFOs as board members or executive directors.

Turner will remain available to Prudential for a period of four months to support a “smooth transition”, the insurer said. He will miss out on some bonus payments following his departure, the insurer said.

Prudential is not affiliated with US-based insurer Prudential Financial.