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M&GPrudential is to make a multi-million pound investment in its two Scottish offices as it reduces its UK locations from seven to three.

The insurance and finance firm says it will increase its workforce north of the border as it closes all other offices apart from its London headquarters by 2025.

Around 450 jobs will be transferred from Stirling and some from Reading, Chelmsford and London to the recently created wealth solutions business in Edinburgh. A spokesperson said efforts would be made to compensate staff who face higher travelling costs and to accommodate those who do not wish to move in other roles.

The company has taken out a lease on a new Edinburgh office next to its existing one at Gyle Business Park in Edinburgh with capacity for up to 700 staff. The wealth solutions business was set up in the capital last year and its other will be moving there over the next 18 months.

The Stirling office, which is to undergo major refurbishment, will remain home to the customer savings, investment, HR, finance and outsourced service functions.

In March last year, Prudential announced it would be demerging M&GPrudential, its UK and Europe retirement and savings business, into a separate company.

An M&GPrudential spokesperson said: “The financial services market continues to change significantly and present many opportunities to support our ambitious growth plans. Where we are located, the services we provide, the way we operate and the benefits that we deliver for our customers are front of mind.

“Our current locations reflect the history of our organisation through merger and acquisition. We’re investing significantly in our business for the future and because of these changes we will be able to operate in a far more integrated, collaborative and digital way.

“Scotland is, and will remain, home to a large number of M&GPrudential colleagues. We will be making significant investments in our existing bases in Stirling and Edinburgh.

“We will be investing millions of pounds in the coming years to create a modern and flexible workplace in Stirling, building on our long association with the town. We will also be expanding our operation in Edinburgh over the next 18 months.

“We are consolidating our existing property portfolio into fewer more modern working locations to maximise operational efficiencies, align ours ambitions, scale our business and ultimately deliver more to our customers”.

M&GP employs 1,300 of its 4,500 staff in Scotland. The Stirling base at Craigforth was built in the late 70s by Scottish Amicable, which was taken over by Prudential in 1997. The Scottish Amicable brand was discontinued in 2001.

The spokesperson said: “Scotland is and will remain home to many our colleagues and the intention is to increase the number we have there.

“Edinburgh is the UK’s largest financial services centre after London and one of the world’s top 10 fintech hubs. As the Scottish base of Wealth Solutions, it gives us access to expertise and supports our transformation to a digital first business.

“Locating all Wealth Solutions colleagues in contemporary environment enables us to do things differently, be truly collaborative and be a real leader with the products and services we provide our customers.

“We are also fully committed to Stirling and, alongside London and Edinburgh, it will be one of three centres for our UK operations. This gives us geographical access to the best talent and right skills for our business”.