LONDON (Bloomberg) — Prudential Plc, the UK's second- largest insurer, said it may bid for Asian assets of American International Group Inc. to expand in a region where the British company gets almost half its sales.

New business for nine months to September 30 rose 18 percent to £2.3 billion ($4 billion), meeting analysts' estimates, the London-based company said yesterday in a statement.

Prudential is in talks with investment funds in China and the Middle East to sell a stake and help finance a $15 billion offer for the Asian business of AIG and raise £1.2 billion of capital, the Sunday Times reported last weekend. The insurer said yesterday it's considering whether any "opportunities" may arise from AIG asset sales.

"It would be wrong of us not to look at AIG assets, though it's far too early to give any sense of probability," chief executive officer Mark Tucker said in an interview. "It isn't clear which assets are for sale."

The insurer said it's unlikely to achieve its goal of doubling new business profit in Asia in 2008 because of the financial turmoil and forecast it will meet the plan in 2009. It operates in 13 countries in Asia, its fastest-growing and most profitable division in the first half. Nine-month sales rose 12 percent to £1 billion.

"We fully expect global financial market conditions to remain highly challenging for some time," the company said. The pace of growth may slow for Prudential and the industry, Tucker said in a conference call with journalists.

"The Asian bull case for the Pru appears to be weakening," wrote James Pearce, an analyst at Cazenove in London who has an "in-line" rating on the stock.

The company posted a loss of £293 million on credit defaults in its Jackson Life unit in the US, which includes losses related to Lehman Brothers Holdings Inc. and Washington Mutual Inc. Jackson's unrealised losses rose to £1.87 billion from £989 million at the half year, the company said. Sales rose five percent to £538 million.

"We're looking to build the dividend on a sustainable basis and our capital position is very, very strong," said Tucker.

Prudential said its surplus capital declined to £1.2 billion from £1.4 billion, and it's able to withstand further deterioration in both market and economic conditions.

"The capital position should help allay any fears," said Youssef Ziai, an analyst at Royal Bank of Scotland Group Plc in London who has a "buy" rating on the stock. "The write-downs are in line with others in the market."

UK rival Legal & General Group Plc said last week that its new business in the third quarter fell 1.5 percent as a slumping British housing market and declines in stock markets deterred buyers of investment products and reduced mortgage-related sales.

Prudential said on September 3 it would take over more than £1 billion of pension obligations from Cable & Wireless Plc, in the biggest transaction of its kind. That helped lift UK sales by 38 percent to £732 million.

The company isn't affiliated with Prudential Financial Inc., the second-biggest US life insurer.