<p>Under the terms of the agreement, Equitable&#0039;s portfolio will transfer into Prudential&#0039;s with-profits fund, with Prudential UK assuming direct responsibility for the management of these policies and payment to these annuitants after the transfer is complete. <br /><br />The transfer is expected to be completed by the end of 2007 and, thereafter, it is anticipated to generate premium income for the group of around GBP180 million on an APE basis. <br /><br />The deal is part of Prudential&#0039;s current strategy to focus on areas such as annuities while implementing cost-saving actions. <br /><br />In other news relating to this cost-saving strategy, Prudential is reportedly set to cut 3,000 jobs following the raising of its UK cost-cutting target to GBP195 million from GBP115 million, according to the BBC.<br /><br />We are looking at the work of 3,000 people and the importance of the work of those 3,000 people we have yet to determine, said Nick Prettejohn, chief executive of Prudential UK, cited by the BBC. Whether our cost savings come from more offshoring or more outsourcing we have yet to determine.</p>