Insurance giant Prudential has set aside $2bn (£1bn) to make a major acquisition in the US within a few months.
The war chest will be used to grow in a market that is seeing a wave of baby boomers begin to retire. The US already accounts for a quarter of the group's new business sales and with the UK market increasingly sluggish, insurers are being forced to turn towards overseas expansion.
Prudential is looking to announce details of an acquisition - possibly of a life assurance company - within the next few months. Funds would come out of its US arm, Jackson National Life Insurance Company.
Clark Manning, chief executive of Jackson, said it could grow organically, but this would lead to "single digit returns" while taking over a business would result in "double digit growth". He added that the credit crisis had put it into an ideal position to make major acquisitions.
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