British-based insurer Prudential is selling its closed-book life insurance business in Japan to a Japanese firm.

SBI Holdings, an Internet-based financial conglomerate headquartered in Tokyo, will buy PCA Life Insurance for US$85 million (S$108 million).

"Closed book" refers to insurance policies that are no longer sold but are still active for those who bought it.

PCA Life Insurance stopped underwriting new business in February 2010.

Prudential said in a statement on Tuesday that the sale would let it allocate its capital to markets where it was well-positioned to generate attractive long-term returns for shareholders.

It added that it "remains committed to the Japanese market" through its Asian asset management business, Eastspring Investments.