LONDON (AP) — Prudential, Britain's largest insurance company, announced yesterday that it will be taking £1 billion ($1.8 billion) of pension assets from Britain's second biggest phone company, Cable & Wireless.

The deal will transfer Cable & Wireless' pension obligations for around 5,000 people to Prudential — simultaneously reducing the phone company's liabilities, and generating approximately £100 million ($180 million) in premium income for the insurer.

"This agreement is the largest of its kind in the UK this year," said Nick Prettejohn, chief executive of Prudential UK & Europe.