While he will retire in March, Mr Wells will continue to be employed by Pru until the end of his contract in February 2023 to assist with the transition to a new CEO as the group refocuses on its key Asian operations and moves senior executive roles to Hong Kong.

Prudential said Mr Wells will not be eligible for any payments for loss of office but he will continue to receive his full salary and pension entitlement until February 2023 and will assist the board.

Mark FitzPatrick, currently group CFO and COO, will become interim group CEO when Mr Wells steps down. He will continue as COO and will help the board in the transition process for the new CEO. After this he will step down from the board and remain as an adviser for a period. 

Prudential says Mr FitzPatrick has asked the board not to consider him for the permanent group CEO role. Mr FitzPatrick has been group CFO of Prudential since 2017, taking on the additional role of COO in 2019. 

Mr FitzPatrick's annual salary will remain at its current level of £822,000 per annum but for the period that he serves as interim group chief executive of Prudential plc, he will also receive a pensionable cash supplement of £30,167 per month, giving him fixed pay for this period equal to that paid to his predecessor (approximately £1.18m per annum).

During the interim appointment, Mr Fitzpatrick's maximum bonus potential will increase from 175% of annual salary to 200% of annual salary.  His annual long-term incentive award will remain at its current level of 250% of his annual salary.

Mr Wells became group CEO in 2015 and joined the group in 1995. 

The company says he successfully led the demerger and accelerated the development of an Asian shareholder base through equity issuance on the Hong Kong Stock Exchange.

The Prudential board is now searching for a group CEO to be based in Asia to succeed Mr Wells. The search will include both internal and external candidates. 

Because the Prudential group is increasingly focused on Asia and Africa, the Prudential board says the roles of the group CEO and the group CFO will be based in Asia, where Prudential's largest businesses, the group regulator and the rest of the senior management team are located. 

The company will also take steps towards “simplification of its management and operational model,” it says. 

In 2019, Prudential demerged fund manager M&G from the group and it now runs as a separate business. M&G plc is the direct parent company of The Prudential Assurance Company Limited.

Nic Nicandrou, CEO Asia and Africa, remains responsible for leading Prudential's life insurance and asset management businesses in Asia and Africa. Mr Nicandrou is based in Asia and has been CEO Asia and Africa since July 2017. He joined Prudential as group CFO in 2009.

In other Pru appointments from the end of March, James Turner, group chief risk & compliance officer will become the group CFO succeeding Mr FitzPatrick. He joined Prudential in 2010. Avnish Kalra, chief risk officer for the group's Asian and African businesses since 2018, will succeed Mr Turner as group chief risk & compliance officer and will join the group executive committee. 

Mr Turner and Mr Kalra will both continue to be based in Hong Kong.

Shriti Vadera, chair of Prudential, said: "I would like to thank Mike for his outstanding contribution to Prudential over the last 26 years, and particularly as CEO for the last seven years. He has led the group through one of the most significant periods of change in its 174-year history. He has overseen two strategic demergers and a successful equity raise on the Hong Kong Stock Exchange, whilst steering the Group through the unprecedented events of the pandemic. The board and I wish him every success in the future."

Mr Wells, group CEO, said: "It has been a privilege to serve Prudential for the last 26 years. Having led the transformation of the Group into an Asia and Africa focused life and health insurer, now is the right time for me to hand over to an Asian-based team to take the company forward. I am grateful to have had the opportunity to work with the staff and board of Prudential during my tenure.”