Giant British life insurer Prudential Plc is the front-runner for the Commonwealth Bank’s CMG Asia life insurance operation.

CMG is valued by the Commonwealth at $819 million, and Prudential is understood to be prepared to pay the price to gain a new foothold into the increasingly strategic Asian region. Prudential, the second-largest British life insurer, has more than doubled its sales in Asian markets in the past year to $US703 million, with purchases and joint ventures now operating in 11 countries.

Analysts say CMG’s joint venture with People’s Insurance in China is the major attraction for Prudential. After all, People’s Insurance has 200 million policyholders and earned $US6.5 billion in premiums last year.

CSFB is handling the bids for CBA, and a decision is expected very soon.