BRITISH life insurer Prudential confirmed it was interested in buying parts of American International Group's Asian business as it reported yesterday a 15 percent sales rise over the first nine months of the year.

"We are of course monitoring closely AIG's disposal program and considering what, if any, opportunities may arise that would create additional value for our shareholders," Prudential said in a statement.

Earlier in the week, the Sunday Times said Prudential was in advanced talks with two unnamed strategic investors to sell a 20-percent stake in the company, and would use proceeds from the sale to finance a bid for AIG's Asian unit. In a conference call with reporters, Prudential Chief Executive Mark Tucker declined to comment on which parts of AIG Asia the group might bid for, or how any bid would be funded.

"It's far too early to say what opportunities may arise, let alone any method of financing," Tucker said. "This process is just a few weeks old. We'll come back at an appropriate time if there's anything to say."

Beleauguered AIG, hit by losses on credit default swaps it underwrote, said earlier this month that it would sell parts of its overseas operations to repay billions of dollars in emergency loans provided by the United States government.

Prudential, the United Kingdom's second-biggest life insurer, yesterday said its capital position was "robust," with a surplus of 1.2 billion pounds (US$2.05 billion) at September 30, down from 1.4 billion pounds three months earlier.

The company said a further 40-percent fall in equity markets from Friday levels would reduce its surplus by just 250 million pounds, thanks to its low equity market exposure and active capital management strategy.

Prudential also said it had losses as a result of credit defaults of 293 million pounds over the first nine months of the year.