SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
LAURENCE POUNTNEY HILL,
LONDON, EC4R 0HH, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-
Enclosures: 3rd Quarter Results
Embargo: 7.00am Wednesday 26th October 2005
PRUDENTIAL PLC THIRD QUARTER 2005 NEW BUSINESS RESULTS AND GROUP UPDATE
For the first nine months of the year:
- Total Group Insurance sales of GBP10.8 billion, up 33 per cent on 2004
- Total Group Insurance APE sales of GBP1.6 billion, up 27 per cent on 2004
- Jackson National Life's (JNL) APE sales of GBP401 million, up 17 per cent
on 2004
- APE sales at Prudential Corporation Asia of GBP508 million, up 27 per
cent on 2004
- Prudential UK and Europe APE sales of GBP700 million, up 34 per cent on
2004
- M&G had record gross fund inflows of GBP5.6 billion, up 62 per cent on
2004
Group Update
- Clear articulation of Group strategy built on maximising shareholder
value through mainly organic growth in US, Asia and UK
- Focus on becoming a leader across the three regions in retirement
services, in addition to life insurance and fund management
- JNL is a key part of our plans to achieve a leading position in
retirement services in the US: increased remittances from JNL to Group
- Asia has sufficient funding to exploit in full the growth opportunities
in the region, while remaining on track to become cash positive in 2006
- We have three strong UK franchises, but there are opportunities for
cost synergies and potential revenue benefits from close collaboration
- Egg retained with important role in this broader UK strategy
- Well placed in fund management globally to capitalise on increasing
appetite for transparent investment products, access to more global products
and the continuing rise of open architecture platforms
- Capital and cash to fund organic growth over the medium term, within
our current and developing balance sheet.
Commenting, Mark Tucker, Group Chief Executive said:
"All our businesses are showing strong growth and these results are a clear
demonstration of the momentum that the Group has built up. They confirm that our
businesses are in robust health and the prospects are positive.
"JNL's total APE sales were up 17 per cent, and within that retail sales for the
nine months were GBP308 million - that's up 14 per cent on 2004. Improved
variable and fixed index annuity sales were partially offset by decreased fixed
annuity sales.
"In Asia, we've followed a strong second quarter with a very good third quarter
- a quarter that's up 32 per cent on the same period last year. Sales of more
profitable regular premium products now represent 89 per cent of APE sales.
"In the UK, growth has been driven mainly by strong sales of unit-linked bonds
and bulk annuities. Competition has intensified in some areas in the third
quarter, particularly in protection and in elements of the individual annuity
market. Despite this, we remain confident that we will achieve our forecast of
10 per cent APE growth in 2005.
"M&G, supported by excellent investment performance had record gross fund
inflows for the nine months of GBP5.6 billion - an increase of 62 per cent on
the same period last year. Net fund inflows increased 343 per cent to GBP2.7
billion for the year to date.
"Egg reported separately today and their results represent a solid performance
at a time when the unsecured lending market remains highly competitive."
Group Update
Mark Tucker also provided an update on the future direction of the Group. He
said:
"The Group has undertaken a comprehensive review of retail financial services
markets in all major geographies, not just Prudential home territories.
"We have one clear standard that we use to guide all of our strategy decisions -
the choices we make and the actions we take must consistently generate
sustainable value for our shareholders. And our actions must achieve the optimum
balance between present and future growth and profitability.
"Taking a broader view has, in many areas, confirmed the existing strategies
Prudential has been following as sound. However we see a need, looking to the
future to target a broader spectrum of opportunity than just life insurance -
important and profitable though we expect that sector to be for us."
JNL is a highly successful and well-positioned participant in a market in which
we want to be powerful. We see the US as a very important part of the Group's
plans to achieve a leading position in retirement services internationally.
As "Baby Boomers" retire and shift their focus from asset accumulation to income
distribution, one of JNL's main aims will be to capture a proportion of these
flows - it has all the attributes to succeed. With an emphasis on sales of low
capital intensive variable annuity products, solid operating results and strong
investment portfolio performance, JNL is capable of self-generating the capital
necessary to support its future growth at our required returns and return a
growing remittance to the centre.
Asia has been the main engine for growth in the Group in recent years and we
have no intention of restricting growth in Asia to a level lower than that which
we consider commercially optimum and sustainable. We can meet our challenging
growth targets and do so within our stated aim of turning cash positive from
2006. The strategy will continue to be to grow primarily by organic means in all
markets, but with particular focus on China, Taiwan, Korea and India.
To drive this forward, Mark Norbom, Chief Executive of Prudential Corporation
Asia, recently announced a number of new roles and enhanced responsibilities
across the region.
In the UK, the Group has three very strong franchises to build on - M&G
continues both to deliver top tier investment performance and accelerate
profitability, Egg has demonstrated the power to build a large-scale "sticky"
customer base of over three million and a very powerful consumer brand, while
our UK insurance operations continue to deliver against its growth and value
targets.
Although each of the businesses will continue to target growth in its own
sector, we see opportunities for greater collaboration allowing us to capitalise
on the strong positions we have in different areas of the market.
We have decided to retain and develop Egg. The potential advantages that we can
get from owning Egg make it clear that retaining it is the right decision. It
fits in with our objective of generating more value for our customers and
shareholders.
There are four key reasons behind this decision. Egg has built a strong customer
franchise with over 3 million younger, more affluent customers - and these
customers are a good and very different complement to Prudential's multi-million
UK customers. Second, is its brand. Next, Egg's direct distribution model has
supported upwards of 20 per cent compound growth since 2000. In a world of
increasing intermediation, we believe that maintaining a direct distribution
capability remains very important. Finally, Egg also provides the expertise and
infrastructure as our entry point into the highly profitable personal savings
and loans market. The short-term payback and the lower capital-intensive lending
and deposit products are also an important complement to our longer-term
capital-intensive retirement offering in the UK.
Cost benefit can be won through managing administration and IT infrastructure
more closely and by seeking to coordinate our marketing efforts where this makes
sense. Revenue opportunities are a potential prize as we work through how best
to add value to our millions of Prudential customers by offering a wider range
of retail financial services products, banking and loan products manufactured by
Egg and extremely attractive medium to long-term savings products manufactured
by M&G.
We are in the process of a detailed review of how best to realise these
synergies. We will be considering whether there is a financial and commercial
case for bringing Egg fully into the Group through a share exchange or whether
to retain the existing structure. No decision has been made as yet.
Prudential has three excellent asset management businesses. We anticipate an
increasing appetite for transparent investment products, access to more global
products and a continuing rise in open architecture platforms plus a rapidly
expanding role for cross-border sales off a common investment platform. As a
result of our performance, brand and distinctive investment culture, we are
exceptionally well-placed to capitalise on these factors.
There are material synergies for us to act on. We have identified three main
areas where there are material cost savings from working across the business
units. These are capital management, risk management and in the Group's IT
infrastructure. For example, work underway on a single global IT infrastructure
should provide a saving of GBP20-25 million a year.
Capital management is at the centre of the Group agenda. We have taken a very
hard look at where our capital is deployed. Our performance and our efforts to
improve capital efficiency, have yielded significant improvements over the last
year.
Over the medium term, we have the capital and cash to fund organic growth within
our current and developing balance sheet. There are also further options to
increase our capacity in the future through debt and alternative capital
sources.
Mark Tucker concluded:
"Prudential is a successful business and we will continue to build shareholder
value. We're going to sustain the geographical spread that has stood Prudential
in such good stead over the last decade.
"We'll continue to build market leading franchises in the US and Asia and build
on our strong positions in the UK. We'll do that by organic growth and by
building on our proven strengths and in particular we'll take advantage of the
global 'retirement financing' opportunity and our strong life insurance and fund
management businesses.
"Alongside our ambition to become a leading player in retirement services, we'll
leverage our capabilities and assets in all related financial service markets
where we are confident we have a basis for advantage."
Update on Group Capital and Cashflow
Philip Broadley, Group Finance Director, also provided an update on Group
capital and cashflow. He said:
"One of the benefits of the Group's present structure and operations is the
diversification benefit we get from the spread of risks we've taken on. Using
our internal capital model, our gross capital requirement of GBP3.7 billion is
reduced by over GBP1 billion, or about 30 per cent because of the benefits of
diversification across the Group.
"As at 31 December 2004, as previously reported, Prudential had a surplus of
GBP845 million on the Financial Conglomerates' Directive basis, which we expect
to be broadly maintained at the end of 2005."
Taiwan
Philip Broadley also gave a summary of the Group's in-force insurance
liabilities in Taiwan.
Prudential's in-force business in Taiwan includes traditional whole of life
policies where the premium rates have been set by the regulator at different
points in time for the industry as a whole. Premium rates were set to give a
guaranteed minimum sum assured on death and a guaranteed surrender value on
early surrender based on prevailing interest rates at the time of policy issue.
Premium rates also included allowances for mortality and expenses. Guarantees
have fallen over time as interest rates have reduced from a high of 8 per cent
to levels of around 2 per cent today. The current low level of bond rates
available in Taiwan gives rise to a negative spread against the majority of
these policies.
The current cash costs of funding in-force negative spread in Taiwan is around
GBP30 million a year. With planned growth, Taiwan is expected to become cash
positive during 2010 even if rates were to stay unchanged.
In line with our strategy to develop the Taiwan business away from traditional
business, the current mix of new business in Taiwan is 78 per cent unit-linked
and protection. Interest rates have little effect on new business profitability
and a 100 basis points fall in interest rates would reduce the new business
margin in Taiwan by less than two percentage points.
Interest rate risk in Taiwan is allowed for within our economic capital
modelling on a stochastic basis. This capital is held in central funds and is
not required as local capital in Taiwan.
For regulatory capital purposes the FSA has agreed that we should modify the
calculation so that the capital requirement in Taiwan under the Financial
Conglomerates' Directive can be determined on an economic capital basis that
reflects the nature of our in-force liabilities in Taiwan.
In achieved profits reporting at the 2005 half year we assumed that Taiwanese
bond rates, currently at around 2 per cent, will trend to a long-term assumption
of 5.5 per cent by 31 December 2012. Allowance is made for the mix of assets in
the fund, our future investment strategy and the market value depreciation of
bonds already held by the fund as yields rise to the assumed long-term yields.
At the half year this resulted in an assumed Fund Earned Rate that trends from
2.3 per cent to 5.8 per cent by 31 December 2013. There is a slight decline in
the Fund Earned Rate in the first few years as the depreciation of long bonds
exceeds the corresponding income pick up as rates rise.
Taiwan's achieved profits embedded value at the end of 2004 was GBP153 million
with sensitivities to bond rates as follows:
-a 100 basis point fall in starting bond rates would reduce embedded value
by GBP84 million
-a 100 basis point increase in starting bond rates would increase embedded
value by GBP70 million
-a 100 basis point parallel decrease in bond rates with an equivalent
adjustment to the risk discount rate would reduce embedded value by GBP204
million
-a 100 basis point parallel increase in bond rates with an equivalent
adjustment to the risk discount rate would increase embedded value by GBP148
million
Prudential restated its 2004 year end achieved profits results to reflect
European Embedded Value (EEV) principles on 2 June 2005. In these restatements
the capital allocated to Asia was increased in line with the increase in
economic capital and resulted in a charge of GBP269 million to embedded value.
Prudential will adopt EEV as its Supplementary Reporting basis for its 2005 year
end reporting. EEV embedded value has been established using a trended basis to
longer-term rates with a prudent allowance for capital on a stochastic basis for
the possible scenarios where lower interest rates would prevail.
Taiwan remains a key growth market for Prudential and was the largest of our
markets in Asia in the nine months to 30 September 2005 in terms of APE sales.
Commentary on Nine Months' Results
UK and Europe Insurance Operations
Prudential UK and Europe APE sales in the first nine months of 2005 of GBP700
million were up 34 per cent on the same period of 2004, driven mainly by strong
sales of bulk annuities and unit-linked bonds. This increase in sales includes
the acquisition of the in-force pension annuities book from Phoenix Life &
Pensions ("PLP") in June 2005. Excluding this transaction, APE sales increased
by 7 per cent.
Bulk annuity sales in the first nine months of 2005 of GBP193 million were up
GBP168 million on the prior year. Excluding the PLP transaction, growth in bulk
annuity sales remained strong (up 92 per cent), reflecting Prudential's leading
position in this market.
Although sales of individual annuities through intermediaries slowed due to the
current competitive pricing environment to which Prudential chose not to
respond, sales through the Partnerships and Direct to Consumer channels have
largely been unaffected. Total individual annuity sales increased by 4 per cent
on last year to GBP163 million, demonstrating the benefits of Prudential's
diversified distribution capability.
APE sales of unit-linked bonds increased 69 per cent to GBP49 million,
reflecting continued progress being made by Prudential in the IFA unit-linked
bond market.
Corporate pension sales have remained challenging with APE sales of GBP117
million in the first nine months of 2005 down 13 per cent on the same period
last year. However, a number of larger mandates have been secured for the latter
part of 2005, including the group stakeholder pension schemes for Royal &
SunAlliance and Goodyear Dunlop.
APE sales for Prudential's European operations increased 88 per cent to GBP15
million, reflecting growing bond sales through new and existing distributors.
Both PruFund and PruHealth celebrated their first anniversaries in the third
quarter. PruFund's initial investors received a total increase in their policy
values of 8.4 per cent during the year (after tax and fund charges) reflecting
the continued superior investment performance of Prudential's life fund. This
strong investment performance was recognised in the Cazalet 2005 with-profits
report where Prudential's rating increased from 8/10 to 9/10.
PruHealth had a good first year with sales growing more than 30 per cent per
month in 2005. At the end of the third quarter of 2005, PruHealth had over 200
group clients and covered approximately 13,250 individuals. Premium income for
the first nine months of 2005 was GBP5 million, of which GBP2 million was
written in the third quarter.
Prudential's new lifetime mortgage product, Prudential Property Value Release
Plan, has been open for quotations and illustrations since the end of August
2005, and launched for new business earlier this month. This innovative product
which gives customers greater flexibility and control over the timing of when
they draw down funds, thereby reducing total interest charges over the lifetime
of the loan, has been well received by advisers and customers.
In September 2005, Bankhall announced that Prudential had been appointed to its
multi-tie panel to provide annuities, bonds, pensions, and protection products.
Bankhall is one of the UK's largest distributors of financial advice with over
7,500 financial advisers. This followed Prudential's appointment in July to
Sesame's regulated multi-tie panel. Prudential was selected as a provider of
guaranteed and with-profit annuities, investments, protection, and individual
pensions and the panel went live in September. Prudential has been appointed to
all but one of the major multi-tie networks announced to date and is strongly
positioned to increase its share in the depolarised marketplace as this develops
over the next couple of years.
Competition in some parts of the UK market remained challenging in the third
quarter, in particular for protection and annuities where pricing has
intensified. Despite this, Prudential UK remains confident that it will achieve
overall growth in APE sales of 10 per cent in 2005.
M&G
M&G delivered record gross fund inflows of GBP5.6 billion in the first nine
months of 2005, an increase of 62 per cent on the same period last year. Net
fund inflows increased 343 per cent to GBP2.7 billion year to date.
Gross retail fund inflows were a record GBP2.7 billion, more than double the
inflows in the same period last year, on the back of strong retail fund
performance across all asset classes. Sales of equity funds were particularly
strong, reflecting the fact that in equities M&G now has 72 per cent of funds in
the top quartile over three years and 84 per cent of funds beating the sector
average. M&G's UK retail business delivered gross fund inflows of GBP1.1
billion, already surpassing the whole of 2004. M&G International, which sells
funds in Germany, Austria, Italy, Luxembourg and Switzerland, continued to grow
very strongly, with gross fund inflows of GBP697 million, compared to GBP229
million for the first nine months of 2004. The South African business generated
gross fund inflows of GBP855 million, up from GBP225 million for the same period
last year. Net retail fund inflows across M&G's retail businesses totalled
GBP899 million, a 484 per cent increase compared to last year.
Gross institutional fund inflows increased by 31 per cent in the first nine
months of this year, totalling GBP2.9 billion. Net fund inflows were GBP1.8
billion, compared to GBP463 million last year. M&G's Collateralised Debt
Obligations (CDO) business continued to develop strongly with net inflows of
GBP521 million in the year to date. Institutional funds under management in the
areas of segregated fixed income, pooled funds and property have also continued
to grow during the year.
Jackson National Life
Jackson National Life (JNL) has delivered a strong result in the first nine
months with total APE sales of GBP401 million up 17 per cent on the same period
in 2004, as a result of increased variable annuity, fixed index annuity, and
institutional product sales. Total retail APE sales for the first nine months of
GBP308 million were up 14 per cent on 2004 as improved variable and fixed index
annuity sales were partially offset by decreased fixed annuity sales during the
period.
For the first nine months of 2005, variable annuity APE sales of GBP187 million
were up 27 per cent on the prior year, following on from record sales in 2004.
Total sales of variable annuities exceeded $1 billion in each of the first three
quarters of 2005, with sales in each consecutive quarter surpassing the last.
This result was achieved against a decline in the variable annuity market of 5
per cent for the first half of 2005(1), and reflects JNL's continued success
in product innovation and distribution.
JNL was ranked as the 12th largest provider of variable annuities in the US
market during the first half of 2005, compared with 15th during the same period
last year. Its variable annuity assets grew 11 per cent during the first half of
the year, compared with total industry growth of 1 per cent1. The rate of
take-up of the fixed account option continued to decline at 22 per cent during
the first nine months, compared with 28 per cent during the same period in 2004,
primarily as a result of continued low interest rates and customers' desire for
greater equity exposure.
APE sales of fixed annuities were GBP64 million, down 24 per cent on the first
nine months of 2004, reflecting continued low interest rates and a relatively
flat yield curve in the US, which has made rates on short-term certificates of
deposit more attractive to customers.
Fixed index annuity APE sales of GBP46 million were up 59 per cent on the first
nine months of 2004, reflecting customers' increasing preference for fixed
products with the potential for higher returns linked to equity index
performance.
APE sales of life products of GBP11 million for the first nine months of 2005,
were up 10 per cent on the prior year.
APE sales of institutional products for the first nine months of the year were
GBP94 million, up 31 per cent on the same period in 2004, reflecting several
attractive issuance opportunities in the first half of 2005.
Curian Capital, which provides innovative fee-based separately managed accounts,
had deposits of GBP315 million for the first nine months of the year, up 7 per
cent over the same period in 2004. Currently in its third year of operation,
Curian has surpassed $1.5 billion of funds under management.
Jackson National has delivered impressive sales growth in the first nine months
of 2005. The customer friendly annuity products, low-cost structure,
relationship-based distribution model, and award-winning customer service have
positioned the company well to capitalise on growth opportunities in the US
market going forward.
Prudential Corporation Asia
Prudential's Asian operations have continued the strong growth shown at the half
year with total APE sales in the first nine months of GBP508 million, up 27 per
cent on the same period last year. For the third quarter of 2005, sales on an
APE basis of GBP197 million represent an increase of 32 per cent on the same
three month period in 2004 and 15 per cent growth over the second quarter of
2005. Sales of more profitable regular premium products continue to grow and now
represent 89 per cent of APE sales.
Prudential's Korean life operation has sustained its strong performance recorded
at the half year with third quarter APE sales of GBP31 million, an increase of
107 per cent on the same quarter last year. APE sales for the first nine months
of 2005 were up 90 per cent on prior year. This increase clearly demonstrates
the flexibility of its multi-channel distribution model, with in-house financial
consultants and general agents currently the primary distribution channels,
supported by contributions from direct marketing and bancassurance.
Prudential's Indian life insurance joint venture with ICICI remains firmly in
position as the number one private sector life insurance company. Prudential's
26 per cent share of the joint venture's APE sales for the first nine months of
2005 was GBP41 million, up 64 per cent on the same period in 2004. The business
continues to extend its geographic reach in India with 74 branches to date and
has grown its tied agency force by 72 per cent over prior year.
The life insurance joint venture with CITIC in China continues its rapid growth
with a 17 per cent increase in third quarter APE sales compared to the second
quarter, and a 46 per cent increase compared to the third quarter last year. APE
sales for the first nine months of 2005 were GBP16 million, up 33 per cent on
the same period of 2004. Progress continues to be made in establishing CITIC
Prudential as the leading foreign joint venture life insurer in terms of
geographic coverage, with six new city licences added during 2005 bringing the
total to 10.
In Indonesia, APE sales for the first nine months of GBP33 million represent a
57 per cent increase on the same period of 2004. Third quarter sales of GBP13
million were 18 per cent ahead of the second quarter.
Third quarter APE sales in Taiwan increased 50 per cent over the second quarter.
This was in part due to the successful launch of a new unit linked retirement
product in the previous quarter. For the first nine months of 2005, APE sales
were up 13 per cent on prior year to GBP120 million. Unit-linked sales in Taiwan
continue to grow and now represent 65 per cent of total APE sales in Taiwan on a
year-to-date basis.
Prudential's Singapore life operation delivered APE sales growth of 21 per cent
compared to both the second quarter and to the same nine month period last year,
driven in part by the launch of six new investment linked funds in 2005.
In Hong Kong, growth in APE sales was 7 per cent compared with the same nine
month period last year demonstrating good performance in a challenging market.
Third quarter sales of the more profitable regular premium products have
continued to grow quarter on quarter over the nine month period due to growth
from the bancassurance channels.
In Malaysia, Prudential's life business continues to benefit from its market
leading agent productivity with total APE sales for the first nine months of
2005 of GBP46 million, up 18 per cent on the same nine month period last year.
Year to date aggregate APE sales from the remaining four markets of the
Philippines, Thailand, Vietnam and Japan are down 9 per cent compared with the
same nine month period last year. In Vietnam, sales for the first nine months of
2005 were down 20 per cent from the same period last year as industry growth
continues to be slower than in 2004.
Total investment product funds under management are GBP9.3 billion, up 22 per
cent on 2004. Earlier this year ICICI, Prudential's joint venture partner in the
Prudential ICICI Asset Management Company, agreed to purchase an additional 6
per cent share of Prudential ICICI Asset Management Company. The transaction was
completed on 26th August, bringing ICICI Group's share to 51 per cent, while
Prudential now holds 49 per cent. As a result, Prudential no longer consolidates
Prudential ICICI Asset Management Company as a subsidiary.
Net investment product inflows of GBP0.9 billion are up 249 per cent on 2004.
Strong net inflows in Japan of GBP836 million and Korea of GBP473 million were
partially offset by net outflows in Taiwan of GBP570 million where the bond fund
market remains unsettled and of GBP150 million in third party institutional
mandates.
We are confident of our ability to grow strongly and profitably in Asia. The
opportunities in our newer markets, coupled with the strength of our larger
operations, should enable us to maintain good sales growth for the remainder of
2005.
Egg
Egg has separately announced its third quarter results today.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers
(the "City Code"), any person who, alone or acting together with any other
person(s) pursuant to an agreement or understanding (whether formal or
informal) to acquire or control relevant securities of Prudential or Egg,
owns or controls, or becomes the owner or controller, directly or
indirectly, of one per cent. or more of any class of securities of
Prudential or Egg is required to disclose, by not later than 12.00 noon
(London time) on the London business day following the date of the relevant
transaction, dealings in such securities of that company (or in any option
in respect of, or derivative referenced to, any such securities) during the
period to the date on which the offer becomes or is declared unconditional
as to acceptances or lapses or is otherwise withdrawn.
Under the provisions of Rule 8.1 of the City Code, all dealings in relevant
securities of Prudential or Egg by Prudential or Egg, or by any of their
respective "associates" (within the meaning of the City Code) must also be
disclosed.
If you are in any doubt as to the application of Rule 8 to you, please
contact an independent financial adviser authorised under the Financial
Services and Markets Act 2000, consult the Panel's website at
www.takeoverpanel.org.uk or contact the Panel on telephone number +44 20
7638 0129; fax +44 20 7236 7013.
- ENDS -
Enquiries:
Media Investors / analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
William Baldwin-Charles 020 7548 3719 Marina Novis 020 7548 3511
Joanne Doyle 020 7548 3708
Notes to Editors
1. All comparisons above and in the narrative below are quoted at
constant exchange rates (CER). See Notes to Editors for further details.
2. Sales for overseas operations have been reported using average exchange
rates as shown in the attached schedules. Commentary is given on the results
on a constant exchange rate basis. The two bases are compared in the table
below.
Annual Premium Equivalent Sales
Actual exchange rates Constant exchange rates
YTD 2005 YTD 2004 +/-(%) YTD 2005 YTD 2004 +/-(%)
GBPm GBPm GBPm GBPm
UK & 700 521 34% 700 521 34%
Europe
US 401 346 16% 401 342 17%
Asia 508 394 29% 508 401 27%
------ ------ ---- ------ ------ ----
Total 1,609 1,261 28% 1,609 1,264 27%
------ ------ ---- ------ ------ ----
Gross Inflows
Actual exchange rates Constant exchange rates
YTD 2005 YTD 2004 +/-(%) YTD 2005 YTD 2004 +/-(%)
GBPm GBPm GBPm GBPm
M&G 5,600 3,451 62% 5,600 3,451 62%
Asia 14,380 13,888 4% 14,380 14,472 (1%)
------ ------ ---- ------ ------ ----
Total 19,980 17,339 15% 19,980 17,923 11%
------ ------ ---- ------ ------ ----
Total Insurance and Investment New Business
Actual exchange rates Constant exchange rates
YTD 2005 YTD 2004 +/-(%) YTD 2005 YTD 2004 +/-(%)
GBPm GBPm GBPm GBPm
Insurance 10,800 8,150 33% 10,800 8,124 33%
Investment 19,980 17,339 15% 19,980 17,923 11%
------ ------ ---- ------ ------ ----
Total 30,780 25,489 21% 30,780 26,047 18%
------ ------ ---- ------ ------ ----
3. There will be a conference call today for wire services at 7.30am (BST)
hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group
Finance Director. Dial in telephone number: +44 (0)20 8609 0205. Passcode:
155439#
4. A press conference will take place at 11.30am (BST) at Governor's
House, Laurence Pountney Hill, London, EC4R 0HH. This will be hosted by Mark
Tucker, Group Chief Executive, and Philip Broadley, Group Finance Director.
Please call the press office on +44 (0)20 7548 3708 if you wish to attend.
5. A presentation to analysts will take place at 9.30am (BST) at
Governor's House, Laurence Pountney Hill, London, EC4R 0HH. An audio cast of
the presentation and the presentation slides will be available on the
Group's website, www.prudential.co.uk.
6. There will be a conference call for investors and analysts at
2.30pm (BST) hosted by Mark Tucker, Group Chief Executive and Philip
Broadley, Group Finance Director. Please call from the UK
+44 (0)800 358 2705 and from the US +1 866 793 4279. Pin number 487687#. A
recording of this call will be available for replay for one week by
dialling: +44 (0)20 8609 0289 from the UK or +1 866 676 5865 from the US.
The conference reference number is 129574.
7. High resolution photographs are available to the media free of
charge at www.newscast.co.uk (+44 (0) 207 608 1000).
8. An interview with Mark Tucker, Group Chief Executive, (in video/
audio/text) will be available on www.cantos.comand www.prudential.co.ukfrom
7.05am on 26th October 2005.
9. Annual premium equivalent (APE) sales comprise regular premium
sales plus one-tenth of single premium insurance sales.
10. Total number of Prudential plc shares in issue as at 14th October
2005 was 2,383,761,711
11. Financial Calendar 2005-2006:
Q4 New Business Figures 25th January 2006
Full Year 2005 Results 16th March 2006
Q1 New Business Figures 20th April 2006
AGM 18th May 2006
Interim Results 28th July 2006
12. In addition to the financial statements provided with this press
release, additional financial schedules are available on the Group's website
at www.prudential.co.uk
*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has GBP187 billion in
assets under management, (as at 31 December 2004). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
Forward-Looking Statements
This statement may contain certain "forward-looking statements" with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words "believes", "intends", "expects", "plans",
"seeks" and "anticipates", and words of similar meaning, are forward-looking. By
their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
Schedule 1A - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia (1a) Total
2005 Q3 2004 Q3 +/- 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%)
YTD YTD (%) YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total 5,848 3,956 48% 3,919 3,340 17% 1,033 828 25% 10,800 8,124 33%
Insurance
Products
Total 5,600 3,451 62% - - 0% 14,380 14,472 (1%) 19,980 17,923 11%
Investment
Products -
Gross
Inflows(2)
------- ------- ------ ------- ------- ------- ------- ------- ------- ------- ------- -------
Group 11,448 7,407 55% 3,919 3,340 17% 15,413 15,300 1% 30,780 26,047 18%
Total
------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations :
Direct to
Customer:
Individual 10 7 43% 6 6 0% 16 13 23% 7 7 0%
Pensions
Life - With 10 9 11% 1 1 0% 11 10 10% 2 2 0%
Profit Bond
Life - Other - - - 1 1 0% 1 1 0% 1 1 0%
Individual 543 464 17% - - - 543 464 17% 54 46 17%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 563 480 17% 8 8 0% 571 488 17% 64 56 14%
DWP Rebates 234 252 (7%) - - - 234 252 (7%) 23 25 (8%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 797 732 9% 8 8 0% 805 740 9% 88 81 9%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Business to
Business:
Corporate 160 108 48% 92 103 (11%) 252 211 19% 108 114 (5%)
Pensions
Individual 151 162 (7%) - - - 151 162 (7%) 15 16 (6%)
Annuities
Bulk 413 253 63% - - - 413 253 63% 41 25 64%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 724 523 38% 92 103 (11%) 816 626 30% 164 155 6%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Intermediated
Distribution:
Individual 50 45 11% 14 16 (13%) 64 61 5% 19 21 (10%)
Pensions
Corporate 32 127 (75%) 6 7 (14%) 38 134 (72%) 9 20 (55%)
Pensions
Life - With 119 188 (37%) - - - 119 188 (37%) 12 19 (37%)
Profit Bond
Life - Other 682 520 31% - - - 682 520 31% 68 52 31%
Bond
Life - Other 4 - - 5 3 67% 9 3 200% 5 3 67%
Individual 786 854 (8%) - - - 786 854 (8%) 79 85 (7%)
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 1,673 1,734 (4%) 25 26 (4%) 1,698 1,760 (4%) 192 199 (4%)
DWP Rebates 80 92 (13%) - - - 80 92 (13%) 8 9 (11%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 1,753 1,826 (4%) 25 26 (4%) 1,778 1,852 (4%) 200 209 (4%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Partnerships:
Life - With - 3 - - - - - 3 - - 0 -
Profit Bond
Life - Other 628 573 10% 3 1 200% 631 574 10% 66 58 14%
Individual 145 88 65% - - - 145 88 65% 15 9 67%
Annuities
Bulk 1,519 - - - - - 1,519 - - 152 - -
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 2,292 664 245% 3 1 200% 2,295 665 245% 232 67 246%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total :
Individual 60 52 15% 20 22 (9%) 80 74 8% 26 27 (4%)
Pensions
Corporate 192 235 (18%) 98 110 (11%) 290 345 (16%) 117 134 (13%)
Pensions
Life - With 129 200 (36%) 1 1 0% 130 201 (35%) 14 21 (33%)
Profit Bond
Life - Other 682 520 31% - - - 682 520 31% 68 52 31%
Bond
Life - Other 632 573 10% 9 5 80% 641 578 11% 72 62 16%
Individual 1,625 1,568 4% - - - 1,625 1,568 4% 163 157 4%
Annuities
Bulk 1,932 253 664% - - 1,932 253 664% 193 25 672%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 5,252 3,401 54% 128 138 (7%) 5,380 3,539 52% 653 478 37%
DWP Rebates 314 344 (9%) - - - 314 344 (9%) 31 34 (9%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total UK 5,566 3,745 49% 128 138 (7%) 5,694 3,883 47% 685 513 34%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
European
Insurance
Operations :(1a)
Insurance 154 72 114% - 1 - 154 73 111% 15 8 88%
Products
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 154 72 114% - 1 - 154 73 111% 15 8 88%
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total UK & 5,720 3,817 50% 128 139 (8%) 5,848 3,956 48% 700 521 34%
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
US Insurance
Operations :(1a)
Fixed 639 838 (24%) - - - 639 838 (24%) 64 84 (24%)
Annuities
Fixed Index 460 290 59% - - - 460 290 59% 46 29 59%
Annuities
Variable 1,870 1,471 27% - - - 1,870 1,471 27% 187 147 27%
Annuities
Life (9) 8 10 (20%) 10 9 11% 18 19 (5%) 11 10 10%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-total 2,977 2,609 14% 10 9 11% 2,987 2,618 14% 308 270 14%
Retail
Guaranteed 306 105 191% - - - 306 105 191% 31 11 182%
Investment
Contracts
GIC - Medium 626 617 1% - - - 626 617 1% 63 62 2%
Term Note
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total US 3,909 3,331 17% 10 9 11% 3,919 3,340 17% 401 342 17%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Asian
Insurance
Operations :(1a)
China 10 6 67% 15 11 36% 25 17 47% 16 12 33%
Hong Kong 201 160 26% 55 54 2% 256 214 20% 75 70 7%
India (@26%)(6) 2 4 (50%) 41 25 64% 43 29 48% 41 25 64%
Indonesia 36 24 50% 29 18 61% 65 42 55% 33 20 65%
Japan 19 12 58% 3 5 (40%) 22 17 29% 5 6 (17%)
Korea 12 34 (65%) 90 45 100% 102 79 29% 91 48 90%
Malaysia 8 5 60% 45 39 15% 53 44 20% 46 39 18%
Singapore 194 155 25% 38 31 23% 232 186 25% 57 47 21%
Taiwan 95 67 42% 110 99 11% 205 166 23% 120 106 13%
Other (4) 6 7 14% 24 28 (14%) 30 35 (12%) 25 28 (11%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Asian 583 474 23% 450 354 27% 1,033 828 25% 508 401 27%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Group Total 10,212 7,622 34% 588 502 17% 10,800 8,124 33% 1,609 1,264 27%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
2005 Q3 2004 Q3 +/- 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- 2005 Q3 2004 Q3 +/-
YTD YTD (%) YTD YTD YTD YTD (%) YTD YTD (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total 5,848 3,955 48% 3,919 3,379 16% 1,033 816 27% 10,800 8,150 33%
Insurance
Products
Total 5,600 3,451 62% - - 0% 14,380 13,888 4% 19,980 17,339 15%
Investment
Products -
Gross
Inflows(2)
------- ------- ------ ------- ------- ------- ------- ------- ------ ------- ------- ------
Group 11,448 7,406 55% 3,919 3,379 16% 15,413 14,704 5% 30,780 25,489 21%
Total
------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%) 2005 Q3 2004 Q3 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations :
Direct to
Customer:
Individual 10 7 43% 6 6 0% 16 13 23% 7 7 0%
Pensions
Life - With 10 9 11% 1 1 0% 11 10 10% 2 2 0%
Profit Bond
Life - Other - - - 1 1 0% 1 1 0% 1 1 0%
Individual 543 464 17% - - - 543 464 17% 54 46 17%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 563 480 17% 8 8 0% 571 488 17% 64 56 14%
DWP Rebates 234 252 (7%) - - - 234 252 (7%) 23 25 (8%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 797 732 9% 8 8 0% 805 740 9% 88 81 9%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Business to
Business:
Corporate 160 108 48% 92 103 (11%) 252 211 19% 108 114 (5%)
Pensions
Individual 151 162 (7%) - - - 151 162 (7%) 15 16 (6%)
Annuities
Bulk 413 253 63% - - - 413 253 63% 41 25 64%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 724 523 38% 92 103 (11%) 816 626 30% 164 155 6%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Intermediated
Distribution:
Individual 50 45 11% 14 16 (13%) 64 61 5% 19 21 (10%)
Pensions
Corporate 32 127 (75%) 6 7 (14%) 38 134 (72%) 9 20 (55%)
Pensions
Life - With 119 188 (37%) - - - 119 188 (37%) 12 19 (37%)
Profit Bond
Life - Other 682 520 31% - - - 682 520 31% 68 52 31%
Bond
Life - Other 4 - - 5 3 67% 9 3 200% 5 3 67%
Individual 786 854 (8%) - - - 786 854 (8%) 79 85 (7%)
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 1,673 1,734 (4%) 25 26 (4%) 1,698 1,760 (4%) 192 199 (4%)
DWP Rebates 80 92 (13%) - - - 80 92 (13%) 8 9 (11%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 1,753 1,826 (4%) 25 26 (4%) 1,778 1,852 (4%) 200 209 (4%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Partnerships:
Life - With - 3 - - - - - 3 - - 0 -
Profit Bond
Life - Other 628 573 10% 3 1 200% 631 574 10% 66 58 14%
Individual 145 88 65% - - - 145 88 65% 15 9 67%
Annuities
Bulk 1,519 - - - - - 1,519 - - 152 - -
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 2,292 664 245% 3 1 200% 2,295 665 245% 232 67 246%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total :
Individual 60 52 15% 20 22 (9%) 80 74 8% 26 27 (4%)
Pensions
Corporate 192 235 (18%) 98 110 (11%) 290 345 (16%) 117 134 (13%)
Pensions
Life - With 129 200 (36%) 1 1 0% 130 201 (35%) 14 21 (33%)
Profit Bond
Life - Other 682 520 31% - - - 682 520 31% 68 52 31%
Bond
Life - Other 632 573 10% 9 5 80% 641 578 11% 72 62 16%
Individual 1,625 1,568 4% - - - 1,625 1,568 4% 163 157 4%
Annuities
Bulk 1,932 253 664% - - 1,932 253 664% 193 25 672%
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 5,252 3,401 54% 128 138 (7%) 5,380 3,539 52% 653 478 37%
DWP Rebates 314 344 (9%) - - - 314 344 (9%) 31 34 (9%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total UK 5,566 3,745 49% 128 138 (7%) 5,694 3,883 47% 685 513 34%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
European
Insurance
Operations :(1b)
Insurance 154 71 117% - 1 - 154 72 114% 15 8 88%
Products
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total 154 71 117% - 1 - 154 72 114% 15 8 88%
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total UK & 5,720 3,816 50% 128 139 (8%) 5,848 3,955 48% 700 521 34%
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
US Insurance
Operations :(1b)
Fixed 639 848 (25%) - - - 639 848 (25%) 64 85 (25%)
Annuities
Fixed Index 460 293 57% - - - 460 293 57% 46 29 59%
Annuities
Variable 1,870 1,489 26% - - - 1,870 1,489 26% 187 149 26%
Annuities
Life (9) 8 10 (20%) 10 9 11% 18 19 (5%) 11 10 10%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-total 2,977 2,640 13% 10 9 11% 2,987 2,649 13% 308 273 13%
Retail
Guaranteed 306 106 189% - - - 306 106 189% 31 11 182%
Investment
Contracts
GIC - Medium 626 624 0% - - - 626 624 0% 63 62 2%
Term Note
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total US 3,909 3,370 16% 10 9 11% 3,919 3,379 16% 401 346 16%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Asian
Insurance
Operations :
(1b)
China 10 6 67% 15 11 36% 25 17 47% 16 12 33%
Hong Kong 201 162 24% 55 55 0% 256 217 18% 75 71 6%
India (@26%)(6) 2 4 (50%) 41 24 71% 43 28 54% 41 24 71%
Indonesia 36 27 33% 29 20 45% 65 47 38% 33 23 43%
Japan 19 12 58% 3 5 (40%) 22 17 29% 5 6 (17%)
Korea 12 30 (60%) 90 40 125% 102 70 46% 91 43 112%
Malaysia 8 5 60% 45 39 15% 53 44 20% 46 40 15%
Singapore 194 153 27% 38 31 23% 232 184 26% 57 46 24%
Taiwan 95 64 48% 110 95 16% 205 159 29% 120 101 19%
Other (4) 6 6 0% 24 27 (11%) 30 33 (9%) 25 28 (11%)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Asian 583 469 24% 450 347 30% 1,033 816 27% 508 394 29%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Group Total 10,212 7,655 33% 588 495 19% 10,800 8,150 33% 1,609 1,261 28%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2005
INVESTMENT OPERATIONS
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2005
M&G
Retail 11,613 2,714 ( 1,815) 899 - 1,214 2,113 13,726
Institutional 17,092 2,886 ( 1,050) 1,836 ( 156) 1,262 2,942 20,034
(5)
------- ------- ------- ------- ------- ------- ------- -------
Total M&G 28,705 5,600 ( 2,865) 2,735 ( 156) 2,476 5,055 33,760
------- ------- ------- ------- ------- ------- ------- -------
Asia
India (10) 2,144 8,497 (8,357) 140 (1,186) 314 (732) 1,412
Taiwan 1,797 1,836 ( 2,406) ( 570) - 143 ( 427) 1,370
Korea 1,427 2,239 ( 1,766) 473 ( 21) 275 727 2,154
Japan 1,638 1,138 ( 302) 836 - 68 904 2,542
Other Mutual 583 611 ( 431) 180 - 55 235 818
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 7,589 14,321 (13,262) 1,059 (1,207) 855 707 8,296
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong MPF 244 59 ( 22) 37 - 30 67 311
Products
(@36%) (6)
Third Party 705 - ( 150) ( 150) - 114 ( 36) 669
Institutional
Mandates
------- ------- ------- ------- ------- ------- ------- -------
Total Asia 949 59 ( 172) ( 113) - 144 31 980
Other
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 8,538 14,380 (13,434) 946 (1,207) 999 738 9,276
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 37,243 19,980 (16,299) 3,681 (1,363) 3,475 5,793 43,036
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2004
M&G
Retail 10,144 1,242 ( 1,088) 154 - 431 585 10,729
Institutional 14,048 2,209 ( 1,746) 463 22 614 1,099 15,147
(5)
------- ------- ------- ------- ------- ------- ------- -------
Total M&G 24,192 3,451 ( 2,834) 617 22 1,045 1,684 25,876
------- ------- ------- ------- ------- ------- ------- -------
Asia
India 2,049 6,519 (6,683) (164) (19) ( 13) ( 196) 1,853
Taiwan 2,666 4,609 ( 5,426) ( 817) - ( 43) ( 860) 1,806
Korea 933 1,625 ( 1,179) 446 ( 33) 12 425 1,358
Japan 411 648 ( 81) 567 - 1 568
Other Mutual 341 318 ( 129) 189 - 15 204 545
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 6,400 13,719 (13,498) 221 ( 52) ( 28) 141 6,541
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong MPF 196 57 ( 21) 36 - ( 1) 35 231
Products
(@36%) (6)
Third Party 552 112 ( 140) ( 28) - 33 5 557
Institutional
Mandates
------- ------- ------- ------- ------- ------- ------- -------
Total Asia 748 169 ( 161) 8 - 32 40 788
Other
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 7,148 13,888 ( 13,659) 229 ( 52) 4 181 7,329
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 31,340 17,339 (16,493) 846 ( 30) 1,049 1,865 33,205
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2005 movement
relative to
2004
M&G
Retail 14% 119% (67%) 484% - 182% 261% 28%
Institutional(5) 22% 31% 40% 297% (809%) 106% 168% 32%
------- ------- ------- ------- ------- ------- ------- -------
Total M&G 19% 62% (1%) 343% (809%) 137% 200% 0%
------- ------- ------- ------- ------- ------- ------- -------
Asia 2,503
India 5% 30% (25%) 185% (6142%) 2,515% (273%) 0%
Taiwan (33%) (60%) 56% 30% - 433% 50% 0%
Korea 53% 38% (50%) 6% 36% 2192% 71% 1%
Japan 299% 76% (273%) 47% - 6700% 59% 160%
Other Mutual 71% 92% (234%) (5%) - 267% 15% 50%
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 19% 4% 2% 379% (2221%) 3154% 401% 27%
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong MPF 24% 4% (5%) 3% - 3100% 91% 35%
Products
(@36%) (6)
Third Party 28% 0% (7%) (436%) - 245% (820%) 20%
Institutional
Mandates
------- ------- ------- ------- ------- ------- ------- -------
Total Asia 27% (65%) (7%) (1513%) - 350% (23%) 24%
Other
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 19% 4% 2% 313% (2221%) 24875% 308% 27%
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 19% 15% 1% 335% (4443%) 231% 211% 30%
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
US (7) 2005 Q3 2004 Q3 +/-(%)
YTD YTD
GBPm
Curian Capital
External Funds 854 441 94%
under
Administration
------- ------- ---------
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2005 VERSUS QUARTER 3 2004
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q3 2005 Q3 2004 +/- (%) Q3 2005 Q3 2004 +/- (%) Q3 2005 Q3 2004 +/- (%) Q3 Q3 2004 +/- (%)
2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations :
Direct to
Customer:
Individual 2 1 100% 2 2 0% 4 3 33% 2 2 0%
Pensions
Life - With 4 3 33% - - - 4 3 33% 0 0 0%
Profit Bond
Life - Other - - - - - - - - - - - -
Individual 178 159 12% - - - 178 159 12% 18 16 13%
Annuities
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Sub-Total 184 163 13% 2 2 0% 186 165 13% 20 18 11%
DWP Rebates - - - - - - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total 184 163 13% 2 2 0% 186 165 13% 20 18 11%
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Business to
Business:
Corporate 46 31 48% 25 28 (11%) 71 59 20% 30 31 (3%)
Pensions
Individual 54 68 (21%) - - - 54 68 (21%) 5 7 (29%)
Annuities
Bulk 93 43 116% - - - 93 43 116% 9 4 125%
Annuities
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total 193 142 36% 25 28 (11%) 218 170 28% 44 42 5%
------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ -------
Intermediated
Distribution:
Individual 11 12 (8%) 5 5 0% 16 17 (6%) 6 6 0%
Pensions
Corporate 9 10 (10%) 2 2 0% 11 12 (8%) 3 3 0%
Pensions
Life - With 44 55 (20%) - - - 44 55 (20%) 4 6 (33%)
Profit Bond
Life - Other 209 206 1% - - - 209 206 1% 21 21 0%
Bond
Life - Other 1 - - 2 1 100% 3 1 200% 2 1 100%
Individual 228 309 (26%) - - - 228 309 (26%) 23 31 (26%)
Annuities
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Sub-Total 502 592 (15%) 9 8 13% 511 600 (15%) 59 67 (12%)
DWP Rebates - - - - - - - - 0% - - -
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total 502 592 (15%) 9 8 13% 511 600 (15%) 59 67 (12%)
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Partnerships:
Life - With - 1 - - - - - 1 - - 0 -
Profit Bond
Life - Other 203 234 (13%) 2 1 100% 205 235 (13%) 22 24 (8%)
Individual 52 40 30% - - - 52 40 30% 5 4 25%
Annuities
Bulk 44 - - - - - 44 - - 4 - -
Annuities
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total 299 275 9% 2 1 100% 301 276 9% 32 29 10%
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total :
Individual 13 13 0% 7 7 0% 20 20 0% 8 8 0%
Pensions
Corporate 55 41 34% 27 30 (10%) 82 71 15% 33 34 (3%)
Pensions
Life - With 48 59 (19%) - - - 48 59 (19%) 5 6 (17%)
Profit Bond
Life - Other 209 206 1% - - - 209 206 1% 21 21 0%
Bond
Life - Other 204 234 (13%) 4 2 100% 208 236 (12%) 24 25 (4%)
Individual 512 576 (11%) - - - 512 576 (11%) 51 58 (12%)
Annuities
Bulk 137 43 219% - - - 137 43 219% 14 4 250%
Annuities
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Sub-Total 1,178 1,172 1% 38 39 (3%) 1,216 1,211 0% 156 156 0%
DWP Rebates - - - - - - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total UK 1,178 1,172 1% 38 39 (3%) 1,216 1,211 0% 156 156 0%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
European
Insurance
Operations :)
Insurance 34 35 (3%) - 1 - 34 36 (6%) 3 5 (40%)
Products
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total 34 35 (3%) - 1 - 34 36 (6%) 3 5 (40%)
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
Total UK & 1,212 1,207 0% 38 40 (5%) 1,250 1,247 0% 159 161 (1%)
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------ -------
US Insurance 0%
Operations :(8)
Fixed 229 275 (17%) - - - 229 275 (17%) 23 28 (18%)
Annuities
Fixed Index 164 136 21% - - - 164 136 21% 16 14 14%
Annuities
Variable 686 483 42% - - - 686 483 42% 69 48 44%
Annuities
Life (9) 2 6 (67%) 4 4 0% 6 10 (40%) 4 5 (20%)
------- ------- ------- ------- ------- ------- ------- ------ ------- ------ ------- -------
Sub-total 1,081 900 20% 4 4 0% 1,085 904 20% 112 94 19%
Retail
Guaranteed 119 75 59% - - - 119 75 59% 12 7 71%
Investment
Contracts
GIC - Medium 10 55 (82%) - - - 10 55 (82%) 1 6 (83%)
Term Note
------- ------- - ------- ------ ------- ------- ------ ------- ------ ------- -------
Total US 1,210 1,030 17% 4 4 0% 1,214 1,034 17% 125 107 17%
Insurance
Operations
------- ------- ------- ------- ------ ------- ------- ------ ------- ------ ------- -------
Asian
Insurance
Operations :
China 5 1 400% 6 5 20% 11 6 83% 7 5 40%
Hong Kong 54 53 2% 20 19 5% 74 72 3% 25 24 4%
India (@26%)(6) 1 1 0% 14 7 100% 15 8 88% 14 7 100%
Indonesia 8 6 33% 12 6 100% 20 12 67% 13 7 86%
Japan 8 5 60% 1 2 (50%) 9 7 29% 2 3 (33%)
Korea 2 3 (33%) 31 13 138% 33 16 106% 31 13 138%
Malaysia 2 2 0% 17 18 (6%) 19 20 (5%) 17 18 (6%)
Singapore 77 57 35% 15 11 36% 92 68 35% 23 17 35%
Taiwan 23 34 (32%) 55 38 45% 78 72 8% 57 41 39%
Other (4) 3 2 50% 8 10 (20%) 11 12 (8%) 8 10 (20%)
------- ------- ------- ------- ------ ------- ------- ------ ------- ------ ------- -------
Total Asian 183 164 12% 179 129 39% 362 293 24% 197 145 36%
Insurance
Operations
------- ------- ------- ------- ------ ------- ------- ------ ------- ------ ------- -------
------- ------- ------- ------- ------ ------- ------- ------ ------- ------ ------- -------
Group Total 2,605 2,401 8% 221 173 28% 2,826 2,574 10% 481 413 16%
------- ------- ------- ------- ------ ------- ------- ------ ------- ------ ------- -------
INVESTMENT OPERATIONS
M&G (5) Asia Mutual Funds Asia Other Total Investment Products
Q3 2005 Q3 2004 +/- (%) Q3 2005 Q3 2004 +/- (%) Q3 2005 Q3 2004 +/- (%) Q3 2005 Q3 2004 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening
FUM 31,171 24,442 28% 9,388 6,876 37% 900 765 18% 41,459 32,083 29%
Gross 2,021 1,275 59% 4,938 4,176 18% 20 16 25% 6,980 5,467 28%
inflows
Less ( 966) ( 568) (70%) ( 4,554) ( 4,608) (1%) ( 9) ( 5) (80%) ( 5,529)( 5,180) (7%)
redemp
tions
-------- --------- --------- --------- --------- --------- --------- --------- -------- -------- ------- ---------
Net
flows 1,055 707 49% 385 ( 431) 189% 11 12 (8%) 1,451 287 406%
Other ( 35) 63 (156%) ( 1,161) ( 13) (8831%) - - - ( 1,196) 50 (2492%)
move
ments
Market
and 1,569 663 137% ( 316) 110 (387%) 69 12 475% 1,322 785 68%
currency
movements
-------- --------- --------- --------- --------- --------- --------- --------- -------- -------- ------- ---------
Net 2,589 1,434 81% (1,093) ( 335) (226%) 80 23 248% 1,577 1,122 41%
move
ment
in
FUM
-------- --------- --------- --------- --------- --------- --------- --------- -------- -------- ------- ---------
Closing
FUM 33,760 25,876 30% 8,296 6,541 27% 980 788 24% 43,036 33,205 30%
-------- --------- --------- --------- --------- --------- --------- --------- -------- -------- ------- ---------
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2005 VERSUS QUARTER 3 2004
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations :
Direct to
Customer:
Individual 2 4 (50%) 2 2 0% 4 6 (33%) 2 2 0%
Pensions
Life - With 4 4 0% - - - 4 4 0% 0 0 0%
Profit Bond
Individual 178 198 (10%) - - - 178 198 (10%) 18 20 (10%)
Annuities
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Sub-Total 184 206 (11%) 2 2 0% 186 208 (11%) 20 23 (13%)
DWP Rebates - - - - - - - - 0% - - -
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total 184 206 (11%) 2 2 0% 186 208 (11%) 20 23 (13%)
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Business to
Business:
Corporate 46 58 (21%) 25 36 (31%) 71 94 (24%) 30 42 (29%)
Pensions
Individual 54 48 13% - - - 54 48 13% 5 5 0%
Annuities
Bulk 93 106 (12%) - - - 93 106 (12%) 9 11 (18%)
Annuities
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total 193 212 (9%) 25 36 (31%) 218 248 (12%) 44 57 (23%)
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Intermediated
Distribution:
Individual 11 18 (39%) 5 5 0% 16 23 (30%) 6 7 (14%)
Pensions
Corporate 9 13 (31%) 2 2 0% 11 15 (27%) 3 3 0%
Pensions
Life - With 44 42 5% - - - 44 42 5% 4 4 0%
Profit Bond
Life - Other 209 247 (15%) - - - 209 247 (15%) 21 25 (16%)
Bond
Life - Other 1 3 (67%) 2 1 100% 3 4 (25%) 2 1 100%
Individual 228 288 (21%) - - - 228 288 (21%) 23 29 (21%)
Annuities
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Sub-Total 502 611 (18%) 9 8 13% 511 619 (17%) 59 69 (14%)
DWP Rebates - - - - - - - - - - - -
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total 502 611 (18%) 9 8 13% 511 619 (17%) 59 69 (14%)
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Partnerships:
Life - With - - - - - - - - - - - -
Profit Bond
Life - Other 203 228 (11%) 2 - - 205 228 (10%) 22 23 (4%)
Individual 52 50 4% - - - 52 50 4% 5 5 0%
Annuities
Bulk 44 1,450 (97%) - - - 44 1,450 (97%) 4 145 (97%)
Annuities
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total 299 1,728 (83%) 2 - - 301 1,728 (83%) 32 173 (82%)
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total :
Individual 13 22 (41%) 7 7 0% 20 29 (31%) 8 9 (11%)
Pensions
Corporate 55 71 (23%) 27 38 (29%) 82 109 (25%) 33 45 (27%)
Pensions
Life - With 48 46 4% - - - 48 46 4% 5 5 0%
Profit Bond
Life - Other 209 247 (15%) - - - 209 247 (15%) 21 25 (16%)
Bond
Life - Other 204 231 (12%) 4 1 300% 208 232 (10%) 24 24 0%
Individual 512 584 (12%) - - - 512 584 (12%) 51 58 (12%)
Annuities
Bulk 137 1,556 (91%) - - - 137 1,556 (91%) 14 156 (91%)
Annuities
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Sub-Total 1,178 2,757 (57%) 38 46 (17%) 1,216 2,803 (57%) 156 322 (52%)
DWP Rebates - - - - - - - - - - - -
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total UK 1,178 2,757 (57%) 38 46 (17%) 1,216 2,803 (57%) 156 322 (52%)
Insurance
Operations
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
European
Insurance
Operations :(8)
Insurance 34 81 (58%) - - - 34 81 (58%) 3 8 (63%)
Products
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total 34 81 (58%) - - - 34 81 (58%) 3 8 (63%)
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total UK & 1,212 2,838 (57%) 38 46 (17%) 1,250 2,884 (57%) 159 330 (52%)
European
Insurance
Operations
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
US Insurance
Operations :(8)
Fixed 229 245 (7%) - - - 229 245 (7%) 23 25 (8%)
Annuities
Fixed Index 164 169 (3%) - - - 164 169 (3%) 16 17 (6%)
Annuities
Variable 686 637 8% - - - 686 637 8% 69 64 8%
Annuities
Life (9) 2 2 0% 4 3 33% 6 5 20% 4 3 33%
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Sub-total 1,081 1,053 3% 4 3 33% 1,085 1,056 3% 112 108 4%
Retail
Guaranteed 119 137 (13%) - - - 119 137 (13%) 12 14 (14%)
Investment
Contracts
GIC - Medium 10 256 (96%) - - - 10 256 (96%) 1 26 (96%)
Term Note
------- ------- - ------- ------- ------- ------ ------- ------- ------- ------- -------
Total US 1,210 1,446 (16%) 4 3 33% 1,214 1,449 (16%) 125 148 (16%)
Insurance
Operations
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Asian
Insurance
Operations :(8)
China 5 4 25% 6 5 20% 11 9 22% 7 5 40%
Hong Kong 54 95 (43%) 20 18 11% 74 113 (35%) 25 28 (11%)
India (@26%)(6) 1 - - 14 9 56% 15 9 67% 14 9 56%
Indonesia 8 12 (33%) 12 10 20% 20 22 (9%) 13 11 18%
Japan 8 6 33% 1 1 0% 9 7 29% 2 2 0%
Korea 2 6 (67%) 31 32 (3%) 33 38 (13%) 31 33 (6%)
Malaysia 2 4 (50%) 17 16 6% 19 20 (5%) 17 16 6%
Singapore 77 72 7% 15 12 25% 92 84 10% 23 19 21%
Taiwan 23 48 (52%) 55 33 67% 78 81 (4%) 57 38 50%
Other (4) 3 2 50% 8 8 0% 11 10 10% 8 8 0%
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Total Asian 183 249 (27%) 179 144 24% 362 393 (8%) 197 169 17%
Insurance
Operations
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
Group Total 2,605 4,533 (43%) 221 193 15% 2,826 4,726 (40%) 481 646 (26%)
------- ------- ------- ------- ------- ------- ------ ------- ------- ------- ------- -------
INVESTMENT OPERATIONS
M&G (5) Asia Mutual Funds Asia Other Total Investment Products
Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%) Q3 2005 Q2 2005 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening
FUM 31,171 30,061 4% 9,388 7,835 20% 900 973 (8%) 41,549 38,868 7%
Gross 2,021 1,487 36% 4,938 4,766 4% 20 20 0% 6,980 6,273 11%
inflows
Less ( 966) ( 1,067) 9% ( 4,554) ( 4,289) (6%) ( 9) ( 157) 94% ( 5,529) ( 5,513) 0%
redemp
tions
-------- --------- ------- --------- --------- --------- ------- --------- ------- ---------- --------- ------
Net
flows 1,055 420 151% 385 477 (19%) 11 ( 137) 108% 1,451 760 91%
Other ( 35) ( 190) 82% ( 1,161) ( 6) (19250%) - - - ( 1,196) ( 196)(510%)
movements
Market
and 1,569 879 78% ( 316) 1,082 (129%) 69 64 8% 1,322 2,026 (35%)
currency
movements
-------- --------- ------- --------- --------- --------- ------- --------- ------- ---------- --------- ------
Net 2,589 1,109 133% (1,093) 1,554 (170%) 80 ( 73) 210% 1,577 2,590 (39%)
move
ment in
FUM
-------- --------- ------- --------- --------- --------- ------- --------- ------- ---------- --------- ------
Closing
FUM 33,760 31,170 8% 8,296 9,388 (12%) 980 900 9% 43,036 41,459 4%
-------- --------- ------- --------- --------- --------- ------- --------- ------- ---------- --------- ------
Notes to Schedules :
(1a) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson
National Life is 1.84
A comparison between the results at actual exchange rates and at constant
exchange rates is given in the press release.
(1b) Insurance and investment new business for overseas operations has been
calculated using average exchange rates. The applicable rate for Jackson
National Life is 1.84 (2004: 1.82).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions plus
10% single new business contributions, are subject to roundings.
(4) In Asia, 'Other' insurance operations include Thailand, the Philippines and
Vietnam.
(5) Balance includes segregated and pooled pension funds, private finance assets
and other institutional clients. Other movements reflect the net flows arising
from the cash component of a tactical asset allocation fund managed by PPM South
Africa.
(6) New business in India is included at Prudential's 26% interest in the India
life operation. Mandatory Provident Fund (MPF) product sales in Hong Kong are
included at Prudential's 36% interest in the Hong Kong MPF operation.
(7) Balance sheet figures have been calculated at the closing exchange rate. The
2004 balance is shown on a constant exchange rate.
(8) Sales are converted using the year to date average exchange rate applicable
at the time. The sterling results for individual quarters represent the
difference between the year to date reported sterling results at successive
quarters and will include foreign exchange movements from earlier periods
(9) US Life sales for 2004 restated to be consistent with the presentation of
Full Year 2004 results.
(10) On 26 August, Prudential's joint venture partner in the Prudential ICICI
Asset Management Company purchased an additional 6% share ownership. As a
result, Prudential no longer consolidates the company as a subsidiary. 2004
results are reported at 100%.
END
--------------------------
(1) VARDS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date 26 October 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Jon Bunn
Jon Bunn
Director of Public Relations