As many as 1000 jobs at Prudential in Scotland are in jeopardy after the insurer yesterday unveiled its long-awaited UK restructuring plan, which could mean the offshoring of another 3000 UK jobs.

Yesterday alongside forecast-beating 2006 earnings and promises of a more generous dividend policy, the Pru hiked its cost savings target from £115m to £195m.

A spokesman for the insurer said there would now be a review of its IT operations and of the administration of its mature life and pensions policies. Of the 3000 jobs affected, 1000 were in Mumbai in India, 1000 in the south of England and 1000 at Craigforth near Stirling, where the Pru employs 2600 in total.

"We will look at the internal option, which is essentially where we are now," the spokesman said. But there would also be a competitive tender, pitting outsourcing options against its own operations, notably in Mumbai. The other 1600 jobs at Craigforth were not affected by the review, he added.

The Prudential also unveiled a deal to take on Equitable Life's £1.8bn of with-profits annuities - a fifth of Equitable's surviving business - and said that 62,000 annuitants who have been suffering from collapsing returns will in future benefit from its expertise and financial strength. The Pru will receive about £180m when the deal closes at the end of this year.

In a third strategic move, the insurer signalled a likely reattribution of its £9bn of surplus assets, by announcing the provisional appointment of a policyholder advocate. Peter Bloxham, a former restructuring specialist with a top City law firm, follows in the footsteps of Claire Spottiswoode, the former energy regulator appointed last year by Aviva. As at Aviva, expectations were quickly dampened with insiders suggesting that 4.5 million policyholders might each get "a few hundred pounds" on average in several years' time.

Prudential's UK business has been under scrutiny with weak new business figures and the disastrous slide into losses at Egg which prompted its recent £575m sale to Citigroup. It has also been accused by trade unions of plotting a huge further transfer of work to its operation in Mumbai, which already employs 1000.

Prudential said it would discontinue unprofitable products including certain types of unit-linked bonds and individual pensions, and would restructure its protection and health business, moving into a joint venture with South Africa's Discovery with which it already works on PruHealth.

Overall new business sales were up by only 1% in the UK last year, while the rest of the market was racking up gains of almost 30%.

Mark Tucker, chief executive, said: "We continued to focus on writing for value across the UK business," stressing that margins had risen from 27% to 30%. He went on: "We have significant competitive advantages in the retirement income market, in particular our flow of internal vestings from our back book of personal pensions, and this market remains very attractive. We therefore see retail annuities and equity release and the nurturing of our existing policyholders as key parts of our strategy."

He also promised products with "improved returns through a focus on trail, rather than front-end commission".

Tucker said the planned overhaul and a 15% jump in full-year headline profit to almost £2bn vindicated its decision last March to reject the £17bn takeover bid from its closest rival the larger Aviva. "The record results, growth in Asia, the US and (fund management arm) M&G, and progress in the UK are testament to us having done the right thing back in March." He said the insurer looked at "a number of potential options involving third parties" but had "concluded we would deliver far more value for the shareholders by retaining and refocusing the business".

Analyst Kevin Ryan at ING commented: "What's been announced today is sensible, prudent but why wasn't it done a year ago? My view is the management still have it all to prove."

Paul Braithwaite at Equitable Members' Action Group said annuitants had been granted "welcome relief".