After investors called for Prudential Plc Chairman, Harvey McGrath and Chief Executive Officer, Tidjane Thiam to quit, the former defended the British insurer's failed $35.5 billion takeover of AIA Group Ltd. .

Prudential is "convinced" that the attempted purchase of AIA was the right strategy and that it was "in the best interests of investors", the Chairman told shareholders at the Company's annual general meeting in London today. The board doesn't support management changes, said McGrath, who also apologized for the costs of the failed bid, while calling them "affordable."

McGrath and Thiam are trying to show shareholders they have a plan to expand in Asia after the acquisition failed amid disagreements with large investors, the U.K. regulator and AIA's parent, American International Group Inc. The 47-year-old CEO has already apologized to investors for spending 450 million pounds in fees on the deal, and Prudential yesterday ruled out making another attempt to acquire AIA.

Robin Geffen, Founder and Chief Investment Officer of London-based Neptune Investment Management Ltd., said that somebody had to be held accountable for the monumental mess and that Thiam and McGrath's positions were untenable.

The insurer's revenue in the first five months of the year grew 27% to 1.36 billion pounds, compared with the same period in 2009, as policy sales in Asia rose 33%, Prudential said separately in a statement today. The Company's Asian unit had its highest rate of sales growth on record in April and May, up 38% from 2009.

Thiam had said in a June 4 interview that his main priority in Asia would be to hire more agents to sell policies in the region.

Prudential is in extremely good shape, the Chairman said today. The Company has no doubt it will grow without AIA, he said. Thiam added at the meeting that Asia's potential was extraordinary, and that growth at the Company's business there, would accelerate.