US bank Citigroup has agreed to buy British insurer Prudential's loss-making internet bank Egg for £575m in cash.
Prudential, Britain's second largest insurer, has been reviewing its underperforming UK operations since last summer.
Egg accounts for only a fraction of Prudential's group business, but the bank is facing a full-year loss, a potential embarrassment for Prudential chief executive Mark Tucker, who took the decision to buy out minority shareholders.
Egg has been hit by tough conditions in the UK personal loans market and Prudential has said it expects Egg to post a second-half loss close to its £39m operating loss in the first six months.
Last month, after a British newspaper reported Citigroup was considering a bid for Egg, Prudential confirmed it had received an approach, but declined to comment on the identity of the bidder, saying only the approach had been rejected.
