LONDON, Oct. 19, 2004 (PRIMEZONE) -- Prudential Plc Third Quarter 2004 New Business Results
Strong performances across all businesses*
-- Total Group Insurance sales of GBP8.2 billion for the first
nine months of this year, up 24 per cent.
-- Total Group Insurance APE sales of GBP1.3 billion for the first
nine months of this year, up 16 per cent.
-- Prudential UK and Europe APE sales of GBP521 million in the
first nine months of this year, up 19 per cent.
-- Jackson National Life's (JNL) APE sales of GBP355 million in
the first nine months of this year, up 18 per cent.
-- APE sales at Prudential Corporation Asia of GBP394 million in
the first nine months of this year, up 12 per cent with third
quarter sales up 20 per cent on the second quarter.
Prudential's Group Chief Executive, Jonathan Bloomer, commented: "All our businesses continue to show a healthy momentum, building on the strong performance we delivered in the first half of the year.
With its broad product range and diversified distribution channels, the UK insurance business is building on its strengths and is well positioned to win customers as the market concentrates towards financially strong companies.
Jackson National Life's 18 per cent increase in APE sales demonstrates that it has the products and distribution channels to succeed in the US market.
Prudential Corporation Asia's sales momentum continues its upward trend with sales in the third quarter up 20 per cent on the second quarter and increasing month by month.
All our businesses are well positioned to take advantage of the clear opportunities in their respective markets."
* The narrative is on constant exchange rates throughout. See Notes to Editors for further details.
UK and Europe Insurance Operations
Prudential UK and Europe has continued to deliver strong results. Sales for the first nine months of 2004 of GBP521 million on an annual premium equivalent (APE) basis were up 19 per cent on the corresponding period in 2003. This principally reflects strong sales of corporate pensions (up 13 per cent), individual annuities (up 20 per cent) and unit-linked and international with-profits bonds (up 108 per cent).
APE sales in the third quarter of 2004 of GBP161 million were up 29 per cent on the third quarter of 2003.
Intermediaries
APE sales for the nine month period through the intermediaries channel were GBP207 million, 20 per cent higher than the equivalent period in 2003. This reflects the sustained growth in sales of unit-linked and international with-profits bonds where APE sales of GBP52 million were up 108 per cent. APE sales of individual annuities were 42 per cent higher reflecting Prudential's position as one of the market leaders in this area.
Partnerships
APE sales through our partnerships channel were GBP67 million, up 168 per cent on the same period last year. Sales during the third quarter of GBP29 million were up 222 per cent on the third quarter of 2003. This result reflects the strong growth in sales of credit life protection products through our agreements with Lloyds TSB and Alliance & Leicester, and annuities through our partnership with Zurich. APE sales of credit life protection products during the third quarter of 2004 were up 26 per cent on the second quarter. APE individual annuity sales in the third quarter of 2004 increased 33 per cent on the second quarter. Annuity sales from the partnership agreement with Pearl, which was launched in September 2004, will be reflected in the fourth quarter's results.
Business to business
APE sales through the business to business channel for the nine month period were GBP155 million, 6 per cent higher than the same period last year. APE sales of corporate pensions were GBP114 million, 4 per cent higher than the corresponding period of 2003. APE sales of bulk annuities of GBP25 million increased by 32 per cent over the same period last year and comprised 51 scheme wins.
Direct to customer
APE sales through the direct to customer channel for the nine month period were down 9 per cent to GBP83 million, but sales during the third quarter of GBP18 million were in line with the third quarter of 2003. The focus of this channel has been primarily on selling annuities to vesting individual pension customers, an increasing proportion of which are now being transacted through IFAs. PruFund and PruHealth campaigns have recently been launched into this channel.
Product launches
Prudential UK recently launched PruFund, a more transparent smoothed investment product. Illustrations were available from the end of August and the product opened for new business in mid-September. Early signs of interest have been encouraging although it is too early to predict how sales will develop. In October, we launched PruHealth, an innovative UK health insurance product linking health and fitness to the cost of premiums. The product has been developed through our joint venture with Discovery of South Africa.
Persistency
In the interim results we reported a GBP15 million adverse persistency experience variance which arose from higher than expected surrenders of personal pension policies previously sold through the now closed direct sales force and also from Prudence Bond. Although Prudential is taking active steps to manage and improve the conservation of the in-force book, it is still seeing adverse experience on these policies and continues to monitor the position. In accordance with ABI guidelines for achieved profits accounting, the Board will review the success of the action taken and consider actual experience in setting assumptions for future experience at the year end.
Summary
In the UK, we believe we will be a clear beneficiary as the market concentrates towards those financially strong companies with a broad product range and diversified distribution strategy.
M&G
M&G recorded gross retail fund inflows of GBP1.2 billion in the first nine months of 2004, an increase of 36 per cent on the same period last year. Net retail fund inflows were GBP154 million. In the UK, M&G has continued to maintain solid fund inflows as a result of its strong retail brand, good fund performance and diversified product offering in fixed income, equities and, most recently, property. The success of M&G's focused expansion into European markets has been reflected in good sales in this area during the year.
Gross institutional fund inflows were GBP2.2 billion in the first nine months of the year, 5 per cent ahead of 2003. Net fund inflows were GBP463 million, a significant turnaround from the end of the first quarter when a single large redemption by a segregated fixed income client contributed to net outflows of GBP879 million. During the third quarter, M&G continued to progress its successful Collateralised Debt Obligation (CDO) programme with the launch of Ocelot, its first synthetic CDO. This reflects M&G's broadening expertise in this market and contributed GBP199 million to sales.
Jackson National Life
Total APE sales for the first nine months of GBP355 million were up 18 per cent on the same period in 2003. Total retail sales for the nine months of GBP2.6 billion were up 6 per cent on 2003, as a result of strong variable and equity-linked indexed annuity sales, partially offset by lower fixed annuity sales. Retail sales in the third quarter were GBP902 million up 22 per cent on the same period in 2003, the result of increased sales of fixed and equity-linked indexed annuities.
Variable annuities
Variable annuity sales of GBP1.5 billion were up 14 per cent on the first nine months of last year, reflecting consumers' confidence in the equity markets and JNL's strong product offering. JNL improved its market position to fourth at the end of the second quarter (in terms of net flow). Among the top 25 providers in the first six months of the year JNL's unbundled annuity product "Perspective II" was the best selling product (in terms of net flow) and its variable annuity net assets grew the fastest (Source VARDS). The rate of take up of the fixed account option remained low, with 28 per cent of the variable annuity premium going into fixed accounts compared with 53 per cent in 2003. Jackson continues to develop its product range: in October, it added several new investment and benefit options to its unbundled Perspective II product, which customers can actively select and pay for.
Fixed annuities
Fixed annuity sales of GBP848 million were down 17 per cent on the first nine months of last year, due to the continued low interest rate environment in the US and the resulting lower crediting rates that limit demand for this product. However, recent interest rate moves have generated more interest in fixed and equity-linked indexed annuity products. In the third quarter, fixed annuity sales were up 15 per cent on the previous quarter and up 55 per cent on third quarter 2003.
Equity-linked indexed annuities
Equity-linked indexed annuity sales for the first nine months of GBP293 million were up 80 per cent on last year, reflecting the attractiveness of the products and customers' increasing preference for fixed products with the potential for higher returns linked to equity index performance.
Life
Regular premium life sales of GBP19 million for the first nine months were up 90 per cent on last year. This is the result of JNL's increased focus on its life business, including the introduction of several new products, such as variable universal life and the creation last year of a dedicated distribution team to focus on building relationships with life insurance agents.
Curian Capital
Curian Capital continues to build a strong position in the managed accounts market, with total assets under management at the end of the period of GBP432 million up from GBP147 million at the year end.
Institutional
Institutional sales for the first nine months of GBP730 million were up 66 per cent on 2003. As we reported in our half year results JNL took advantage of several attractive opportunities in the first half of 2004 but intends to focus on retail sales for the rest of the year. Consistent with this, institutional sales in the third quarter were GBP129 million, down 55 per cent on the previous quarter. JNL remains on track to deliver institutional sales of around GBP225 million for the second half of the year.
Summary
JNL is well positioned to maintain its strong growth and as reported in our half year results we expect it to return $120 million cash to the Group this year and in future years.
Prudential Corporation Asia
Prudential's Asian operations showed strong momentum during the third quarter, with sales improving month on month. Overall APE sales of GBP145 million represented growth of 20 per cent over the second quarter. APE sales of GBP394 million for the nine months are up 12 per cent on last year, up 21 per cent excluding discontinued sales in Japan.
Single premium products continue to be popular and while our primary focus remains on more profitable regular premium business, the proportion of single premium sales in the APE mix has increased to 12 per cent for the first nine months compared with 8 per cent for the full year 2003.
Following slower starts to 2004, both Malaysia and Taiwan have seen strong growth during the third quarter relative to the second, with increases of 36 per cent and 45 per cent respectively, driven principally by planned sales incentives and the successful launch of an innovative unit-linked product in Taiwan. Singapore recorded its strongest quarter of 2004 so far with a 20 per cent increase over the second quarter. Single premium unit-linked sales were particularly strong.
In Hong Kong, APE sales growth remains strong, increasing by 16 per cent for the first nine months of the year. However, the third quarter was slightly lower than the second due to the market's current preference for short-term traditional endowment policies and our strategy to manage our exposure to these less profitable products. Nevertheless, sales of single premium products, principally through bancassurance, grew 36 per cent for the first nine months, compared with the same period last year.
The life operation in Korea continued to show very strong growth in the first nine months of the year. However, this growth rate eased slightly in the third quarter with increasing volumes from the financial consultant and general agent channels offset by slower bancassurance sales as one of our partners recovers from the effects of industrial action. Korea also experienced increased competition in the direct channel.
In India, where we have a joint venture with ICICI Bank, growth in APE sales continues to be strong, increasing 140 per cent on 2003 for the first nine months. The growth rate did slow in the third quarter with a 17 per cent increase on the second quarter. Recently the industry has seen a slow down in new business growth, in part due to the introduction of the Senior Citizen Savings Scheme announced in the budget having a temporary impact.
Sales in China for the first nine months of the year are up 71 per cent compared with last year. We have been operating in Guangzhou for four years, and have a 14 per cent share of new business sales through the agency channel on an APE basis. We launched in Beijing in August 2003, and in Suzhou this September.
Sales in Indonesia in the third quarter were 33 per cent ahead of the previous quarter. Our business in Indonesia recovered from the effects of a court imposed administration period resulting from attempts to put the company into bankruptcy despite the business clearly being solvent. The bankruptcy decision has been overturned by the Indonesian Supreme Court. A bill to amend the bankruptcy law in Indonesia to prevent similar attempts has now been passed by the parliament and is awaiting Presidential notification.
In the third quarter of 2003, we implemented our new strategy in Japan to focus on more profitable product lines such as variable universal life and to improve our distribution. New business volumes this year have been slow, but we are starting to see some progress, which we continue to monitor. The third quarter 2004 was up 38 per cent compared with the second quarter.
Growth in Prudential's "Other" Asian operations slowed over the first nine months, mainly due to the impact of the Vietnamese market, which has seen a significant slowdown in growth rate after four years of strong sales following liberalisation of the market.
The Asian retail investment management business had GBP6.8 billion of funds under management at 30 September, with net inflows of GBP0.3 billion for the first nine months of the year. The net inflows were depressed by GBP767 million of net outflows in Taiwan in the third quarter following market concern about the liquidity of bond funds across the industry. The balance of the retail investment operations of Prudential Corporation Asia continue to record strong net inflows, with particularly strong growth in Korea and Japan.
Summary
The sales momentum seen in the third quarter positions our Asian business well for a strong fourth quarter, in line with market expectations. We remain confident that the profitable growth being delivered in Asia is sustainable over the long-term and the business remains on track to begin remitting surplus capital to the group in 2006.
Prudential is hosting an analyst and investor visit to Kuala Lumpur and Ho Chi Minh City in the first week of November, when we will talk in more detail about our strategy, operations, products and distribution channels across the region.
Egg
Egg has separately announced its third quarter results today.
Enquiries to:
Media Investors/Analysts Geraldine Davies 020 7548 3911 Rebecca Burrows 020 7548 3537 Clare Staley 020 7548 3719 Marina Lee-Steere 020 7548 3511
Notes to Editors:
There will be a conference call today for wire services hosted by Jonathan Bloomer, Group Chief Executive, and Philip Broadley, Group Finance Director at 7.30am. Dial-in telephone number: +44 (0) 20 8288 4530. Callers to quote "Prudential" for access to the call.
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
2004 YTD 2003 +/- 2004 YTD 2003 +/-
GBPm YTD (%) GBPm YTD (%)
GBPm GBPm
UK 521 438 19% 521 438 19%
and
Europe
US 355 342 4% 355 302 18%
Asia 394 391 1% 394 353 12%
Total 1,270 1,170 9% 1,270 1,093 16%
Gross Inflows
Actual exchange rates Constant exchange rates
2004 YTD 2003 YTD +/- 2004 YTD 2003 YTD +/-
GBPm GBPm (%) GBPm GBPm (%)
M&G 3,451 3,024 14% 3,451 3,024 14%
Asia 13,776 13,309 4% 13,776 12,185 13%
Total 17,227 16,333 5% 17,227 15,209 13%
Total Insurance and Investment New Business
Actual exchange rates Constant exchange rates
2004 YTD 2003 +/- 2004 YTD 2003 +/-
GBPm YTD (%) GBPm YTD (%)
GBPm GBPm
Insurance 8,150 7,005 16% 8,150 6,553 24%
Investment 17,227 16,333 5% 17,227 15,209 13%
Total 25,377 23,338 9% 25,377 21,762 17%
Annual premium equivalent (APE) sales comprise regular premium sales plus one-tenth of single premium insurance sales.
Certain investment mandates previously reported as UK corporate pensions are now reported as M&G institutional investment flows. The impact is to reduce UK corporate pensions APE sales by GBP32 million for the full-year 2003 (GBP26 million for the first nine months of 2003).
US institutional products (previously referred to as "stable value products") consist of guaranteed investment contracts (GICs), funding agreements and medium-term notes backed by funding agreements.
*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 GBP170 billion in assets under management, as at 30 June 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.
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1) Asia (1)
2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 Q3 (%) Q3 Q3 (%) Q3 Q3 (%)
YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm
Total 3,955 3,026 31% 3,379 2,934 15% 816 593 38%
Insurance
Products
Total 3,451 3,024 14% -- -- -- 13,776 12,185 13%
Investm
ent
Products --
Gross
Inflows
(2)
---- ---- ---- ---- ---- ---- ---- ---- ----
Group 7,406 6,050 22% 3,379 2,934 15% 14,592 12,778 14%
Total
==== ==== ==== ==== ==== ==== ==== ==== ====
INSURANCE OPERATIONS
Single Regular Total
2004 2003 +/- 2004 Q3 2003 +/- 2004 2003 +/-
Q3 Q3 (%) Q3 (%) Q3 Q3 (%)
YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm
UK
Insurance
Operations
: (4)
Direct to
Customer:
Individual 7 7 -- 6 7 (14%) 13 14 (7%)
Pensions
Life -- 9 10 (10%) 1 1 -- 10 11 (9%)
With
Profit
Bond
Life -- -- -- -- 1 1 -- 1 1 --
Other
Individual 464 519 (11%) -- -- -- 464 519 (11%)
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 480 536 (10%) 8 9 (11%) 488 545 (10%)
DWP 272 280 (3%) -- -- -- 272 280 (3%)
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 752 816 (8%) 8 9 (11%) 760 825 (8%)
---- ---- ---- ---- ---- ----- ----- ----- -----
Business
to
Business:
Corporate 108 129 (16%) 103 97 6% 211 226 (7%)
Pensions
Individual 162 167 (3%) -- -- -- 162 167 (3%)
Annuities
Bulk 253 189 34% -- -- -- 253 189 34%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 523 485 8% 103 97 6% 626 582 8%
---- ---- ---- ---- ---- ----- ----- ----- -----
Intermedia
ted
Distributi
on :
Individual 45 42 7% 16 19 (16%) 61 61 --
Pensions
Corporate 127 38 234% 7 5 40% 134 43 212%
Pensions
Life -- 188 290 (35%) -- -- -- 188 290 (35%)
With
Profit
Bond
Life -- 520 251 107% -- -- -- 520 251 107%
Other
Bond
Life -- -- 1 -- 3 20 (85%) 3 21 (86%)
Other
Individual 854 597 43% -- -- -- 854 597 43%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub- 1,734 1,219 42% 26 44 (41%) 1,760 1,263 39%
Total
DWP 72 60 20% -- -- -- 72 60 20%
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 1,806 1,279 41% 26 44 (41%) 1,832 1,323 38%
---- ---- ---- ---- ---- ----- ----- ----- -----
Partnerships:
Life -- 3 45 (93%) -- -- -- 3 45 (93%)
With
Profit
Bond
Life -- 573 179 220% 1 -- -- 574 179 221%
Other
Individual 88 28 214% -- -- -- 88 28 214%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 664 252 163% 1 -- -- 665 252 164%
---- ---- ---- ---- ---- ----- ----- ----- -----
Total :
Individual 52 49 6% 22 26 (15%) 74 75 (1%)
Pensions
Corporate 235 167 41% 110 102 8% 345 269 28%
Pensions
Life -- 200 345 (42%) 1 1 0% 201 346 (42%)
With
Profit
Bond
Life -- 520 251 107% -- -- -- 520 251 107%
Other
Bond
Life -- 573 180 218% 5 21 (76%) 578 201 188%
Other
Indivi 1,568 1,311 20% -- -- -- 1,568 1,311 20%
dual
Annuities
Bulk 253 189 34% -- -- -- 253 189 34%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 3,401 2,492 36% 138 150 (8%) 3,539 2,641 34%
DWP 344 340 1% -- -- -- 344 340 1%
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total UK 3,745 2,832 32% 138 150 (8%) 3,883 2,981 30%
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
European
Insurance
Operations
: (1)
Insurance 71 45 58% 1 -- -- 72 45 60%
Products
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 71 45 58% 1 -- -- 72 45 60%
European
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
Total UK 3,816 2,877 33% 139 150 (7%) 3,955 3,026 31%
&
European
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
US
Insurance
Operations
: (1)
Fixed 848 1,020 (17%) -- -- -- 848 1,020 (17%)
Annuities
Equity-Lin 293 163 80% -- -- -- 293 163 80%
ked
Indexed
Annuities
Variable 1,489 1,301 14% -- -- -- 1,489 1,301 14%
Annuities
Life -- -- -- 19 10 90% 19 10 90%
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 2,630 2,484 6% 19 10 90% 2,649 2,494 6%
Retail
Guaranteed 106 169 (37%) -- -- -- 106 169 (37%)
Investment
Contracts
GIC -- 624 271 130% -- -- -- 624 271 130%
Medium
Term Note
---- ---- ---- ---- ---- ----- ----- ----- -----
Total US 3,360 2,924 15% 19 10 90% 3,379 2,934 15%
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
Asian
Insurance
Operations
: (1)
China 6 4 50% 11 7 57% 17 11 55%
Hong Kong 162 119 36% 55 49 12% 217 168 29%
India 4 3 33% 24 10 140% 28 13 115%
(@26%)
Indonesia 27 14 93% 20 20 -- 47 34 38%
Japan 12 7 71% 5 32 (84%) 17 39 (56%)
Korea 30 4 650% 40 15 167% 70 19 268%
Malaysia 5 8 (38%) 39 38 3% 44 46 (4%)
Singapore 153 87 76% 31 36 (14%) 184 123 50%
Taiwan 64 17 276% 95 85 12% 159 102 56%
Other (5) 6 4 50% 27 34 (21%) 33 38 (13%)
---- ---- ---- ---- ---- ---- ----- ----- -----
Total 469 267 76% 347 326 6% 816 593 38%
Asian
Insurance
Operations
---- ---- ---- ---- ---- ---- ----- ----- -----
Group 7,645 6,068 26% 505 486 4% 8,150 6,553 24%
Total
==== ==== ==== ==== ==== ==== ===== ===== =====
Schedule 1 -- Constant Exchange Rates
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
Total
2004 Q3 YTD 2003 Q3 YTD +/- (%)
GBPm GBPm
Total Insurance Products 8,150 6,553 24%
Total Investment Products 17,227 15,209 13%
-- Gross Inflows (2)
------ ------ ------
Group Total 25,377 21,762 17%
====== ====== ======
INSURANCE OPERATIONS
Annual Equivalents (3)
2004 2003
Q3 Q3 +/-
YTD YTD
GBPm GBPm
UK Insurance Operations : (4)
Direct to Customer:
Individual Pensions 7 8 (13%)
Life -- With Profit Bond 2 2 --
Life -- Other 1 1 --
Individual Annuities 46 52 (12%)
------ ------ ------
Sub-Total 56 63 (11%)
DWP Rebates 27 28 (4%)
------ ------ ------
Total 83 91 (9%)
------ ------ ------
Business to Business:
Corporate Pensions 114 110 4%
Individual Annuities 16 17 (6%)
Bulk Annuities 25 19 32%
------ ------ ------
Total 155 146 6%
------ ------ ------
Intermediated Distribution :
Individual Pensions 21 23 (9%)
Corporate Pensions 20 9 122%
Life -- With Profit Bond 19 29 (34%)
Life -- Other Bond 52 25 108%
Life -- Other 3 20 (85%)
Individual Annuities 85 60 42%
------ ------ ------
Sub-Total 199 166 20%
DWP Rebates 7 6 17%
------ ------ ------
Total 207 172 20%
------ ------ ------
Partnerships :
Life -- With Profit Bond 0 5 (100%)
Life -- Other 58 18 222%
Individual Annuities 9 3 200%
------ ------ ------
Total 67 25 168%
------ ------ ------
Total :
Individual Pensions 27 31 (13%)
Corporate Pensions 134 119 13%
Life -- With Profit Bond 21 36 (42%)
Life -- Other Bond 52 25 108%
Life -- Other 62 39 59%
Individual Annuities 157 131 20%
Bulk Annuities 25 19 32%
------ ------ ------
Sub-Total 478 399 20%
DWP Rebates 34 34 --
------ ------ ------
Total UK Insurance Operations 513 433 18%
------ ------ ------
European Insurance Operations : (1)
Insurance Products 8 5 60%
------ ------ ------
Total European Insurance Operations 8 5 60%
------ ------
Total UK & European Insurance 521 438 19%
Operations
------ ------ ------
US Insurance Operations : (1)
Fixed Annuities 85 102 (17%)
Equity-Linked Indexed Annuities 29 16 81%
Variable Annuities 149 130 15%
Life 19 10 90%
------ ------ ------
Sub-Total Retail 282 258 9%
Guaranteed Investment Contracts 11 17 (35%)
GIC -- Medium Term Note 62 27 130%
------ ------ ------
Total US Insurance Operations 355 302 18%
------ ------ ------
Asian Insurance Operations : (1)
China 12 7 71%
Hong Kong 71 61 16%
India (@26%) 24 10 140%
Indonesia 23 21 10%
Japan 6 33 (82%)
Korea 43 15 187%
Malaysia 40 39 3%
Singapore 46 45 2%
Taiwan 101 87 16%
Other (5) 28 34 (18%)
------ ------ ------
Total Asian Insurance Operations 394 353 12%
------ ------ ------
Group Total 1,270 1,093 16%
====== ====== ======
Schedule 1b
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b)
2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 Q3 (%) Q3 Q3 (%) Q3 Q3 (%)
YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm
Total 3,955 3,028 31% 3,379 3,318 2% 816 659 24%
Insurance
Products
Total 3,451 3,024 14% -- -- -- 13,776 13,309 4%
Investment
Products-Gr
oss
Inflows
(2)
---- ---- ---- ---- ---- --- ----- ----- -----
Group 7,406 6,052 22% 3,379 3,318 2% 14,592 13,968 4%
Total
==== ==== ==== ==== ==== === ===== ===== =====
INSURANCE OPERATIONS
Single Regular Total
2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 Q3 (%) Q3 Q3 (%) Q3 Q3 (%)
YTD YTD YTD YTD YTD YTD
GBPm GBPm GBPm GBPm GBPm GBPm
UK
Insurance
Operations
: (4)
Direct to
Customer:
Individual 7 7 -- 6 7 (14%) 13 14 (7%)
Pensions
Life -- 9 10 (10%) 1 1 -- 10 11 (9%)
With
Profit
Bond
Life -- -- -- -- 1 1 -- 1 1 --
Other
Individual 464 519 (11%) -- -- -- 464 519 (11%)
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 480 536 (10%) 8 9 (11%) 488 545 (10%)
DWP 272 280 (3%) -- -- -- 272 280 (3%)
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 752 816 (8%) 8 9 (11%) 760 825 (8%)
---- ---- ---- ---- ---- ----- ----- ----- -----
Business
to
Business:
Corporate 108 129 (16%) 103 97 6% 211 226 (7%)
Pensions
Individual 162 167 (3%) -- -- -- 162 167 (3%)
Annuities
Bulk 253 189 34% -- -- -- 253 189 34%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 523 485 8% 103 97 6% 626 582 8%
---- ---- ---- ---- ---- ----- ----- ----- -----
Intermedia
ted
Distributi
on :
Individual 45 42 7% 16 19 (16%) 61 61 0%
Pensions
Corporate 127 38 234% 7 5 40% 134 43 212%
Pensions
Life -- 188 290 (35%) -- -- -- 188 290 (35%)
With
Profit
Bond
Life -- 520 251 107% -- -- -- 520 251 107%
Other
Bond
Life -- -- 1 -- 3 20 (85%) 3 21 (86%)
Other
Individual 854 597 43% -- -- -- 854 597 43%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 1,734 1,219 42% 26 44 (41%) 1,760 1,263 39%
DWP 72 60 20% -- -- -- 72 60 20%
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 1,806 1,279 41% 26 44 (41%) 1,832 1,323 38%
---- ---- ---- ---- ---- ----- ----- ----- -----
Partnershi
ps :
Life -- 3 45 (93%) -- -- -- 3 45 (93%)
With
Profit
Bond
Life -- 573 179 220% 1 -- -- 574 179 221%
Other
Individual 88 28 214% -- -- -- 88 28 214%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 664 252 163% 1 -- -- 665 252 164%
---- ---- ---- ---- ---- ----- ----- ----- -----
Total :
Individual 52 49 6% 22 26 (15%) 74 75 (1%)
Pensions
Corporate 235 167 41% 110 102 8% 345 269 28%
Pensions
Life -- 200 345 (42%) 1 1 0% 201 346 (42%)
With
Profit
Bond
Life -- 520 251 107% -- -- -- 520 251 107%
Other
Bond
Life -- 573 180 218% 5 21 (76%) 578 201 188%
Other
Individual 1,568 1,311 20% -- -- -- 1,568 1,311 20%
Annuities
Bulk 253 189 34% -- -- -- 253 189 34%
Annuities
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 3,401 2,492 36% 138 150 (8%) 3,539 2,642 34%
DWP 344 340 1% -- -- -- 344 340 1%
Rebates
---- ---- ---- ---- ---- ----- ----- ----- -----
Total UK 3,745 2,832 32% 138 150 (8%) 3,883 2,982 30%
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
European
Insurance
Operations
: (1)
Insurance 71 46 54% 1 -- -- 72 46 57%
Products
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 71 46 54% 1 -- -- 72 46 57%
European
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
Total UK 3,816 2,876 33% 139 150 (7%) 3,955 3,028 31%
&
European
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
US
Insurance
Operations
: (1b)
Fixed 848 1,153 (26%) -- -- -- 848 1,153 (26%)
Annuities
Equity-Lin 293 184 59% -- -- -- 293 184 59%
ked
Indexed
Annuities
Variable 1,489 1,471 1% -- -- -- 1,489 1,471 1%
Annuities
Life -- -- -- 19 11 73% 19 11 73%
---- ---- ---- ---- ---- ----- ----- ----- -----
Sub-Total 2,630 2,808 (6%) 19 11 73% 2,649 2,819 (6%)
Retail
Guaranteed 106 192 (45%) -- -- -- 106 192 (45%)
Investment
Contracts
GIC -- 624 307 103% -- -- -- 624 307 103%
Medium
Term Note
---- ---- ---- ---- ---- ----- ----- ----- -----
Total US 3,360 3,307 2% 19 11 73% 3,379 3,318 2%
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
Asian
Insurance
Operations
: (1b)
China 6 5 20% 11 8 38% 17 13 31%
Hong Kong 162 134 21% 55 55 -- 217 189 15%
India 4 3 33% 24 11 118% 28 14 100%
(@26%)
Indonesia 27 16 69% 20 23 (13%) 47 39 21%
Japan 12 7 71% 5 33 (85%) 17 40 (58%)
Korea 30 4 650% 40 16 150% 70 20 250%
Malaysia 5 9 (44%) 39 43 (9%) 44 52 (15%)
Singapore 153 96 59% 31 40 (23%) 184 136 35%
Taiwan 64 18 256% 95 94 1% 159 112 42%
Other (5) 6 6 0% 27 38 (29%) 33 44 (25%)
---- ---- ---- ---- ---- ----- ----- ----- -----
Total 469 298 57% 347 361 (4%) 816 659 24%
Asian
Insurance
Operations
---- ---- ---- ---- ---- ----- ----- ----- -----
Group 7,645 6,483 18% 505 522 (3%) 8,150 7,005 16%
Total
==== ==== ==== ==== ==== ===== ===== ===== =====
Schedule 1b
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
Total
2004 Q3 YTD 2003 Q3 YTD +/- (%)
GBPm GBPm
Total Insurance Products 8,150 7,005 16%
Total Investment 17,227 16,333 5%
Products-Gross Inflows (2)
------ ------ ------
Group Total 25,377 23,338 9%
====== ====== ======
INSURANCE OPERATIONS
Annual Equivalents (3)
2004 Q3 YTD 2003 Q3 YTD +/- (%)
GBPm GBPm
UK Insurance Operations :
(4)
Direct to Customer:
Individual Pensions 7 8 (13%)
Life -- With Profit Bond 2 2 --
Life -- Other 1 1 --
Individual Annuities 46 52 (12%)
------ ------ ------
Sub-Total 56 63 (11%)
DWP Rebates 27 28 (4%)
------ ------ ------
Total 83 91 (9%)
------ ------ ------
Business to Business:
Corporate Pensions 114 110 4%
Individual Annuities 16 17 (6%)
Bulk Annuities 25 19 32%
------ ------ ------
Total 155 146 6%
------ ------ ------
Intermediated Distribution
:
Individual Pensions 21 23 (9%)
Corporate Pensions 20 9 122%
Life -- With Profit Bond 19 29 (34%)
Life -- Other Bond 52 25 108%
Life -- Other 3 20 (85%)
Individual Annuities 85 60 42%
------ ------ ------
Sub-Total 199 166 20%
DWP Rebates 7 6 17%
------ ------ ------
Total 207 172 20%
------ ------ ------
Partnerships :
Life -- With Profit Bond 0 5 (100%)
Life -- Other 58 18 222%
Individual Annuities 9 3 200%
------ ------ ------
Total 67 25 168%
------ ------ ------
Total :
Individual Pensions 27 31 (13%)
Corporate Pensions 134 119 13%
Life -- With Profit Bond 21 36 (42%)
Life -- Other Bond 52 25 108%
Life -- Other 62 39 59%
Individual Annuities 157 131 20%
Bulk Annuities 25 19 32%
------ ------ ------
Sub-Total 478 399 20%
DWP Rebates 34 34 --
------ ------ ------
Total UK Insurance 513 433 18%
Operations
------ ------ ------
European Insurance
Operations : (1)
Insurance Products 8 5 60%
------ ------ ------
Total European Insurance 8 5 60%
Operations
------ ------ ------
Total UK & European 521 438 19%
Insurance Operations
------ ------ ------
US Insurance Operations :
(1b)
Fixed Annuities 85 115 (26%)
Equity-Linked Indexed 29 18 61%
Annuities
Variable Annuities 149 147 1%
Life 19 11 73%
------ ------ ------
Sub-Total Retail 282 292 (3%)
Guaranteed Investment 11 19 (42%)
Contracts
GIC -- Medium Term Note 62 31 100%
------ ------ ------
Total US Insurance 355 342 4%
Operations
------ ------ ------
Asian Insurance Operations
: (1b)
China 12 9 33%
Hong Kong 71 68 4%
India (@26%) 24 11 118%
Indonesia 23 25 (8%)
Japan 6 34 (82%)
Korea 43 16 169%
Malaysia 40 44 (9%)
Singapore 46 50 (8%)
Taiwan 101 96 5%
Other (5) 28 39 (28%)
------ ------ ------
Total Asian Insurance 394 391 1%
Operations
------ ------ ------
Group Total 1,270 1,170 9%
====== ====== ======
Schedule 2
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
INVESTMENT OPERATIONS
Opening Gross Redemptions Net
FUM Inflows inflows
2004
M&G
M&G branded 8,819 1,124 ( 957) 167
retail
investment
products
Prudential 1,325 118 ( 131) ( 13)
branded UK
retail
investment
products (6)
M&G 14,048 2,209 ( 1,746) 463
institutional
(7)
------ ------ ------ ------
Total M&G 24,192 3,451 ( 2,834) 617
------ ------ ------ ------
Asia
India 2,049 6,519 ( 6,683) ( 164)
Taiwan 2,666 4,609 ( 5,426) ( 817)
Korea 933 1,625 ( 1,179) 446
Other Mutual 752 966 ( 211) 755
Fund Operations
------ ------ ------ ------
Total Asian 6,400 13,719 ( 13,499) 220
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF 196 57 ( 21) 36
Products (8)
------ ------ ------ ------
Total Asian 6,596 13,776 ( 13,520) 256
Investment
Operations
------ ------ ------ ------
Total 30,788 17,227 ( 16,354) 873
Investment
Products
------ ------ ------ ------
Opening Gross Redemptions Net
FUM Inflows inflows
2003
M&G
M&G branded 7,587 809 ( 612) 197
retail
investment
products
Prudential 1,137 107 ( 107) --
branded UK
retail
investment
products (6)
M&G 11,560 2,108 ( 1,120) 988
institutional
(4) (7)
------ ------ ------ ------
Total M&G 20,284 3,024 ( 1,839) 1,185
------ ------ ------ ------
Asia
India 1,372 5,261 ( 4,906) 355
Taiwan 2,425 5,707 ( 5,485) 222
Korea 993 1,768 ( 1,702) 66
Other Mutual 306 517 ( 177) 340
Fund Operations
------ ------ ------ ------
Total Asian 5,096 13,253 ( 12,270) 983
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF 136 56 ( 16) 40
Products (8)
------ ------ ------ ------
Total Asian 5,232 13,309 ( 12,286) 1,023
Investment
Operations
------ ------ ------ ------
Total 25,516 16,333 (14,125) 2,208
Investment
Products
------ ------ ------ ------
Opening Gross Redemptions Net
FUM Inflows inflows
2004 Movement
Relative to
2003
M&G
M&G branded 16% 39% (56%) (15%)
retail
investment
products
Prudential 17% 10% (22%) --
branded UK
retail
investment
products (6)
M&G 22% 5% (56%) (53%)
institutional
(4) (7)
------ ------ ------ ------
Total M&G 19% 14% (54%) (48%)
------ ------ ------ ------
Asia
India 49% 24% (36%) (146%)
Taiwan 10% (19%) 1% (468%)
Korea (6%) (8%) 31% 576%
Other Mutual 146% 87% (19%) 122%
Fund Operations
------ ------ ------ ------
Total Asian 26% 4% (10%) (78%)
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF 44% 2% (31%) (10%)
Products (8)
Total Asian 26% 4% (10%) (75%)
Investment
Operations
------ ------ ------ ------
Total 21% 5% (16%) (60%)
Investment
Products
------ ------ ------ ------
US Banking Products
Total Deposit Liabilities
Retail Assets
Curian Capital
External Funds under Management
Schedule 2
PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004
INVESTMENT OPERATIONS
Other Market and Net Closing
movements Currency movements FUM
movements in FUM
2004
M&G
M&G branded -- 393 560 9,379
retail
investment
products
Prudential -- 38 25 1,350
branded UK
retail
investment
products (6)
M&G 22 614 1,099 15,147
institutional
(7)
------ ------ ------ ------
Total M&G 22 1,045 1,684 25,876
------ ------ ------ ------
Asia
India ( 19) ( 13) ( 196) 1,853
Taiwan -- ( 43) ( 860) 1,806
Korea ( 33) 12 425 1,358
Other Mutual -- 16 771 1,523
Fund Operations
------ ------ ------ ------
Total Asian ( 52) ( 28) 140 6,540
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF -- -- 36 232
Products (8)
------ ------ ------ ------
Total Asian ( 52) ( 28) 176 6,772
Investment
Operations
------ ------ ------ ------
Total ( 30) 1,017 1,860 32,648
Investment
Products
------ ------ ------ ------
Other Market and Net Closing
movements Currency movements FUM
movements in FUM
2003
M&G
M&G branded (14) 679 862 8,449
retail
investment
products
Prudential -- 117 117 1,254
branded UK
retail
investment
products (6)
M&G -- 942 1,930 13,490
institutional
(4) (7)
------ ------ ------ ------
Total M&G (14) 1,738 2,909 23,193
------ ------ ------ ------
Asia
India ( 35) 160 480 1,852
Taiwan -- 65 287 2,712
Korea ( 20) 36 82 1,075
Other Mutual -- 31 371 677
Fund Operations
------ ------ ------ ------
Total Asian ( 55) 292 1,220 6,316
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF -- 10 50 186
Products (8)
------ ------ ------ ------
Total Asian ( 55) 302 1,270 6,502
Investment
Operations
------ ------ ------ ------
Total ( 69) 2,040 4,179 29,695
Investment
Products
------ ------ ------ ------
Other Market and Net Closing
movements Currency movements FUM
movements in FUM
2004 Movement
Relative to
2003
M&G
M&G branded -- (42%) (35%) 11%
retail
investment
products
Prudential -- (68%) (79%) 8%
branded UK
retail
investment
products (6)
M&G -- (35%) (43%) 12%
institutional
(4) (7)
------ ------ ------ ------
Total M&G 257% (40%) (42%) 12%
------ ------ ------ ------
Asia
India 46% (108%) (141%) --
Taiwan -- (166%) (400%) (33%)
Korea (65%) (67%) 418% 26%
Other Mutual -- (48%) 108% 125%
Fund Operations
------ ------ ------ ------
Total Asian 5% (110%) (89%) 4%
Mutual Fund
Operations
------ ------ ------ ------
Hong Kong MPF -- -- (28%) 25%
Products (8)
Total Asian 5% (109%) (86%) 4%
Investment
Operations
------ ------ ------ ------
Total 57% (50%) (55%) 10%
Investment
Products
------ ------ ------ ------
US(9)
2004 Q3 2003 Q3 +/- (%)
YTD YTD
GBPm GBPm
US Banking Products
Total Deposit Liabilities 604 666 (9%)
Retail Assets 677 689 (2%)
Curian Capital
External Funds under Management 432 73 492%
Schedule 3
PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 3
2003
INSURANCE OPERATIONS
Single Regular
Q3 Q3 +/- Q3 Q3 +/-
2004 2003 (%) 2004 2003 (%)
GBPm GBPm GBPm GBPm
UK Insurance
Operations :
(4)
Direct to
Customer:
Individual 1 1 -- 2 2 --
Pensions
Life -- With 3 3 -- -- -- --
Profit Bond
Life -- Other -- -- -- -- -- --
Individual 159 152 5% -- -- --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 163 156 4% 2 2 --
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 163 156 4% 2 2 --
------ ------ ------ ------ ------ ------
Business to
Business:
Corporate 31 37 (16%) 28 27 4%
Pensions
Individual 68 63 8% -- -- --
Annuities
Bulk Annuities 43 32 34% -- -- --
------ ------ ------ ------ ------ ------
Total 142 132 8% 28 27 4%
------ ------ ------ ------ ------ ------
Intermediated
Distribution :
Individual 12 9 33% 5 6 (17%)
Pensions
Corporate 10 15 (33%) 2 2 --
Pensions
Life -- With 55 117 (53%) -- -- --
Profit Bond
Life -- Other 206 102 102% -- -- --
Bond
Life -- Other -- -- -- 1 3 (67%)
Individual 309 206 50% -- -- --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 592 449 32% 8 11 (27%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 592 449 32% 8 11 (27%)
------ ------ ------ ------ ------ ------
Partnerships :
Life -- With 1 10 (90%) -- -- --
Profit Bond
Life -- Other 234 61 284% 1 -- --
Individual 40 24 67% -- -- --
Annuities
------ ------ ------ ------ ------ ------
Total 275 95 189% 1 -- --
------ ------ ------ ------ ------ ------
Total :
Individual 13 10 30% 7 8 (13%)
Pensions
Corporate 41 52 (21%) 30 29 3%
Pensions
Life -- With 59 130 (55%) -- -- --
Profit Bond
Life -- Other 206 102 102% -- -- --
Bond
Life -- Other 234 61 284% 2 3 (33%)
Individual 576 445 29% -- -- --
Annuities
Bulk Annuities 43 32 34% -- -- --
------ ------ ------ ------ ------ ------
Sub-Total 1,172 832 41% 39 40 (3%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total UK 1,172 832 41% 39 40 (3%)
Insurance
Operations
------ ------ ------ ------ ------ ------
European
Insurance
Operations :
(10)
Insurance 35 17 106% 1 -- --
Products
------ ------ ------ ------ ------ ------
Total European 35 17 106% 1 -- --
Insurance
Operations
------ ------ ------ ------ ------ ------
Total UK & 1,207 849 42% 40 40 --
European
Insurance
Operations
------ ------ ------ ------ ------ ------
US Insurance
Operations :
(10)
Fixed 275 200 38% -- -- --
Annuities
Equity-Linked 135 72 88% -- -- --
Indexed
Annuities
Variable 483 561 (14%) -- -- --
Annuities
Life -- -- -- 9 3 200%
------ ------ ------ ------ ------ ------
Sub-total 893 833 7% 9 3 200%
Retail
Guaranteed 74 6 1133% -- -- --
Investment
Contracts
GIC -- Medium 55 28 96% -- -- --
Term Note
------ ------ ------ ------ ------ ------
Total US 1,022 867 18% 9 3 200%
Insurance
Operations
------ ------ ------ ------ ------ ------
Asian
Insurance
Operations:(10)
China 1 1 -- 5 3 67%
Hong Kong 53 58 (9%) 19 21 (10%)
India (@26%) 1 1 -- 7 4 75%
Indonesia 6 9 (33%) 6 10 (40%)
Japan 5 2 150% 2 13 (85%)
Korea 3 4 (25%) 13 6 117%
Malaysia 2 3 (33%) 18 19 (5%)
Singapore 57 45 27% 11 14 (21%)
Taiwan 34 9 278% 38 30 27%
Other (5) 2 2 -- 10 14 (29%)
------ ------ ------ ------ ------ ------
Total Asian 164 134 22% 129 134 (4%)
Insurance
Operations
------ ------ ------ ------ ------ ------
Group Total 2,393 1,849 29% 178 177 1%
====== ====== ===== ====== ====== =====
INVESTMENT OPERATIONS
M&G (4) (7) Asia Mutual Funds
Q3 Q3 +/- Q3 Q3 2003 +/- (%)
2004 2003 (%) 2004
GBPm GBPm GBPm GBPm
Opening FUM 24,442 22,331 9% 6,876 5,721 20%
Gross 1,274 1,008 26% 4,176 4,929 (15%)
inflows
Less ( 567) ( 657) 14% (4,608) (4,547) (1%)
redemptions
------ ------ ------ ------ ------ ------
Net flows 707 351 101% ( 432) 382 (213%)
Other 63 -- -- ( 14) ( 25) 44%
movements
Market and 664 511 30% 110 238 (54%)
currency
movements
------ ------ ------ ------ ------ ------
Net 1,434 862 66% ( 336) 595 (156%)
movement in
FUM
------ ------ ------ ------ ------ ------
Closing FUM 25,876 23,193 12% 6,540 6,316 4%
------ ------ ------ ------ ------ ------
Schedule 3
PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 3
2003
INSURANCE OPERATIONS
Total Annual Equivalents (3)
Q3 2004 Q3 2003 +/- (%) Q3 2004 Q3 2003 +/- (%)
GBPm GBPm GBPm GBPm
UK Insurance
Operations :
(4)
Direct to
Customer:
Individual 3 3 -- 2 2 --
Pensions
Life -- With 3 3 -- 0 0 --
Profit Bond
Life -- Other -- -- -- -- -- --
Individual 159 152 5% 16 15 7%
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 165 158 4% 18 18 --
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 165 158 4% 18 18 --
------ ------ ------ ------ ------ ------
Business to
Business:
Corporate 59 64 (8%) 31 31 --
Pensions
Individual 68 63 8% 7 6 17%
Annuities
Bulk Annuities 43 32 34% 4 3 33%
------ ------ ------ ------ ------ ------
Total 170 159 7% 42 40 5%
------ ------ ------ ------ ------ ------
Intermediated
Distribution :
Individual 17 15 13% 6 7 (14%)
Pensions
Corporate 12 17 (29%) 3 3 --
Pensions
Life -- With 55 117 (53%) 6 12 (50%)
Profit Bond
Life -- Other 206 102 102% 21 10 110%
Bond
Life -- Other 1 3 (67%) 1 3 (67%)
Individual 309 206 50% 31 21 48%
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 600 459 31% 67 55 22%
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 600 459 31% 67 55 22%
------ ------ ------ ------ ------ ------
Partnerships :
Life -- With 1 10 (90%) 0 1 (100%)
Profit Bond
Life -- Other 235 61 285% 24 6 300%
Individual 40 24 67% 4 2 100%
Annuities
------ ------ ------ ------ ------ ------
Total 276 95 191% 29 9 222%
------ ------ ------ ------ ------ ------
Total :
Individual 20 18 11% 8 9 (11%)
Pensions
Corporate 71 81 (12%) 34 34 --
Pensions
Life -- With 59 130 (55%) 6 13 (54%)
Profit Bond
Life -- Other 206 102 102% 21 10 110%
Bond
Life -- Other 236 64 269% 25 9 178%
Individual 576 445 29% 58 45 29%
Annuities
Bulk Annuities 43 32 34% 4 3 33%
------ ------ ------ ------ ------ ------
Sub-Total 1,211 872 39% 156 123 27%
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total UK 1,211 872 39% 156 123 27%
Insurance
Operations
------ ------ ------ ------ ------ ------
European
Insurance
Operations :
(10)
Insurance 36 17 112% 5 2 150%
Products
------ ------ ------ ------ ------ ------
Total European 36 17 112% 5 2 150%
Insurance
Operations
------ ------ ------ ------ ------ ------
Total UK & 1,247 889 40% 161 125 29%
European
Insurance
Operations
------ ------ ------ ------ ------ ------
US Insurance
Operations :
(10)
Fixed 275 200 38% 28 20 40%
Annuities
Equity-Linked 135 72 88% 14 7 100%
Indexed
Annuities
Variable 483 561 (14%) 48 56 (14%)
Annuities
Life 9 3 200% 9 3 200%
------ ------ ------ ------ ------ ------
Sub-total 902 836 8% 98 86 14%
Retail
Guaranteed 74 6 1133% 7 1 600%
Investment
Contracts
GIC -- Medium 55 28 96% 6 3 100%
Term Note
------ ------ ------ ------ ------ ------
Total US 1,031 870 19% 111 90 23%
Insurance
Operations
------ ------ ------ ------ ------ ------
Asian
Insurance
Operations:(10)
China 6 4 50% 5 3 67%
Hong Kong 72 79 (9%) 24 27 (11%)
India (@26%) 8 5 60% 7 4 75%
Indonesia 12 19 (37%) 7 11 (36%)
Japan 7 15 (53%) 3 13 (77%)
Korea 16 10 60% 13 6 117%
Malaysia 20 22 (9%) 18 20 (10%)
Singapore 68 59 15% 17 18 (6%)
Taiwan 72 39 85% 41 31 32%
Other (5) 12 16 (25%) 10 15 (33%)
------ ------ ------ ------ ------ ------
Total Asian 293 268 9% 145 148 (2%)
Insurance
Operations
------ ------ ------ ------ ------ ------
Group Total 2,571 2,026 27% 417 363 15%
====== ====== ===== ====== ====== =====
INVESTMENT OPERATIONS
Hong Kong MPF Products (8) Total Investment Products
Q3 Q3 +/- Q3 Q3 2003 +/- (%)
2004 2003 (%) 2004
GBPm GBPm GBPm GBPm
Opening FUM 216 165 31% 31,534 28,217 12%
Gross 16 17 (6%) 5,466 5,954 (8%)
inflows
Less ( 5) ( 4) (25%) ( 5,179) ( 5,208) 1%
redemptions
------ ------ ------ ------ ------ ------
Net flows 11 13 (15%) 287 746 (62%)
Other -- -- -- 49 ( 25) 296%
movements
Market and 5 8 (38%) 779 757 3%
currency
movements
------ ------ ------ ------ ------ ------
Net 16 21 (24%) 1,114 1,478 (25%)
movement in
FUM
------ ------ ------ ------ ------ ------
Closing FUM 232 186 25% 32,648 29,695 10%
------ ------ ------ ------ ------ ------
Schedule 4
PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 2
2004
INSURANCE OPERATIONS
Single Regular
Q3 Q2 +/- Q3 Q2 +/- (%)
2004 2004 (%) 2004 2004
GBPm GBPm GBPm GBPm
UK Insurance
Operations :
(4)
Direct to
Customer:
Individual 1 3 (67%) 2 2 --
Pensions
Life -- With 3 3 -- -- -- --
Profit Bond
Individual 159 155 3% -- -- --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 163 161 1% 2 2 --
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 163 161 1% 2 2 --
------ ------ ------ ------ ------ ------
Business to
Business:
Corporate 31 37 (16%) 28 45 (38%)
Pensions
Individual 68 46 48% -- -- --
Annuities
Bulk 43 70 (39%) -- -- --
Annuities
------ ------ ------ ------ ------ ------
Total 142 153 (7%) 28 45 (38%)
------ ------ ------ ------ ------ ------
Intermediated
Distribution
:
Individual 12 17 (29%) 5 5 --
Pensions
Corporate 10 52 (81%) 2 3 (33%)
Pensions
Life -- With 55 79 (30%) -- -- --
Profit Bond
Life -- Other 206 172 20% -- -- --
Bond
Life -- Other -- -- -- 1 1 --
Individual 309 318 (3%) -- -- --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 592 638 (7%) 8 9 (11%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 592 638 (7%) 8 9 (11%)
------ ------ ------ ------ ------ ------
Partnerships
:
Life - With 1 -- -- -- -- --
Profit Bond
Life -- Other 234 175 34% 1 1 --
Individual 40 25 60% -- -- --
Annuities
------ ------ ------ ------ ------ ------
Total 275 200 38% 1 1 --
------ ------ ------ ------ ------ ------
Total :
Individual 13 20 (35%) 7 7 --
Pensions
Corporate 41 89 (54%) 30 48 (38%)
Pensions
Life -- With 59 82 (28%) -- -- --
Profit Bond
Life -- Other 206 172 20% -- -- --
Bond
Life -- Other 234 175 34% 2 2 --
Individual 576 544 6% -- -- --
Annuities
Bulk 43 70 (39%) -- -- --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 1,172 1,152 2% 39 57 (32%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total UK 1,172 1,152 2% 39 57 (32%)
Insurance
Operations
------ ------ ------ ------ ------ ------
European
Insurance
Operations :
(10)
Insurance 35 18 94% 1 -- --
Products
------ ------ ------ ------ ------ ------
Total 35 18 94% 1 -- --
European
Insurance
Operations
------ ------ ------ ------ ------ ------
Total UK & 1,207 1,170 3% 40 57 (30%)
European
Insurance
Operations
------ ------ ------ ------ ------ ------
US Insurance
Operations :
(10)
Fixed 275 241 14% -- -- --
Annuities
Equity-Linked 135 87 55% -- -- --
Indexed
Annuities
Variable 483 533 (9%) -- -- --
Annuities
Life -- -- -- 9 7 29%
------ ------ ------ ------ ------ ------
Sub-total 893 861 4% 9 7 29%
Retail
Guaranteed 74 13 469% -- -- --
Investment
Contracts
GIC -- Medium 55 277 (80%) -- -- --
Term Note
------ ------ ------ ------ ------ ------
Total US 1,022 1,151 (11%) 9 7 29%
Insurance
Operations
------ ------ ------ ------ ------ ------
Asian
Insurance
Operations :
(10)
China 1 2 (50%) 5 3 67%
Hong Kong 53 56 (5%) 19 19 --
India (@26%) 1 1 -- 7 6 17%
Indonesia 6 7 (14%) 6 5 20%
Japan 5 4 25% 2 1 100%
Korea 3 9 (67%) 13 14 (7%)
Malaysia 2 2 -- 18 13 38%
Singapore 57 46 24% 11 10 10%
Taiwan 34 20 70% 38 27 41%
Other (5) 2 2 -- 10 9 11%
------ ------ ------ ------ ------ ------
Total Asian 164 149 10% 129 107 21%
Insurance
Operations
------ ------ ------ ------ ------ ------
Group Total 2,393 2,470 (3%) 178 171 4%
====== ====== ===== ====== ====== =====
INVESTMENT OPERATIONS
M&G (4) (7) Asia Mutual Funds
Q3 Q2 +/- Q3 Q2 +/- (%)
2004 2004 (%) 2004 2004
GBPm GBPm GBPm GBPm
Opening FUM 24,442 23,658 3% 6,876 6,741 2%
Gross 1,274 1,455 (12%) 4,176 4,652 (10%)
inflows
Less ( 567) ( 659) 14% (4,608) ( 4,293) (7%)
redemptions
------ ------ ------ ------ ------ ------
Net flows 707 796 (11%) ( 432) 359 (220%)
Other 63 ( 139) 145% ( 14) ( 13) (8%)
movements
Market and 664 127 423% 110 ( 211) 152%
currency
movements
------ ------ ------ ------ ------ ------
Net 1,434 784 83% ( 336) 135 (349%)
movement in
FUM
------ ------ ------ ------ ------ ------
Closing FUM 25,876 24,442 6% 6,540 6,876 (5%)
------ ------ ------ ------ ------ ------
Schedule 4
PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 2
2004
INSURANCE OPERATIONS
Total Annual Equivalents (3)
Q3 Q2 +/-(%) Q3 Q2 +/- (%)
2004 2004 2004 2004
GBPm GBPm GBPm GBPm
UK Insurance
Operations :
(4)
Direct to
Customer:
Individual 3 5 (40%) 2 2 --
Pensions
Life -- With 3 3 -- -- -- --
Profit Bond
Individual 159 155 3% 16 16 --
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 165 163 1% 18 18 --
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 165 163 1% 18 18 --
------ ------ ------ ------ ------ ------
Business to
Business:
Corporate 59 82 (28%) 31 49 (37%)
Pensions
Individual 68 46 48% 7 5 40%
Annuities
Bulk 43 70 (39%) 4 7 (43%)
Annuities
------ ------ ------ ------ ------ ------
Total 170 198 (14%) 42 60 (30%)
------ ------ ------ ------ ------ ------
Intermediated
Distribution
:
Individual 17 22 (23%) 6 7 (14%)
Pensions
Corporate 12 55 (78%) 3 8 (63%)
Pensions
Life -- With 55 79 (30%) 6 8 (25%)
Profit Bond
Life -- Other 206 172 20% 21 17 24%
Bond
Life -- Other 1 1 -- 1 1 --
Individual 309 318 (3%) 31 32 (3%)
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 600 647 (7%) 67 73 (8%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total 600 647 (7%) 67 73 (8%)
------ ------ ------ ------ ------ ------
Partnerships
:
Life -- With 1 -- -- -- -- --
Profit Bond
Life -- Other 235 176 34% 24 19 26%
Individual 40 25 60% 4 3 33%
Annuities
------ ------ ------ ------ ------ ------
Total 276 201 37% 29 21 38%
------ ------ ------ ------ ------ ------
Total :
Individual 20 27 (26%) 8 9 (11%)
Pensions
Corporate 71 137 (48%) 34 57 (40%)
Pensions
Life -- With 59 82 (28%) 6 8 (25%)
Profit Bond
Life -- Other 206 172 20% 21 17 24%
Bond
Life -- Other 236 177 33% 25 20 25%
Individual 576 544 6% 58 54 7%
Annuities
Bulk 43 70 (39%) 4 7 (43%)
Annuities
------ ------ ------ ------ ------ ------
Sub-Total 1,211 1,209 -- 156 172 (9%)
DWP Rebates -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total UK 1,211 1,209 -- 156 172 (9%)
Insurance
Operations
------ ------ ------ ------ ------ ------
European
Insurance
Operations :
(10)
Insurance 36 18 100% 5 2 150%
Products
------ ------ ------ ------ ------ ------
Total 36 18 100% 5 2 150%
European
Insurance
Operations
------ ------ ------ ------ ------ ------
Total UK & 1,247 1,227 2% 161 174 (7%)
European
Insurance
Operations
------ ------ ------ ------ ------ ------
US Insurance
Operations :
(10)
Fixed 275 241 14% 28 24 17%
Annuities
Equity-Linked 135 87 55% 14 9 56%
Indexed
Annuities
Variable 483 533 (9%) 48 53 (9%)
Annuities
Life 9 7 29% 9 7 29%
------ ------ ------ ------ ------ ------
Sub-total 902 868 4% 98 93 5%
Retail
Guaranteed 74 13 469% 7 1 600%
Investment
Contracts
GIC -- Medium 55 277 (80%) 6 28 (79%)
Term Note
------ ------ ------ ------ ------ ------
Total US 1,031 1,158 (11%) 111 122 (9%)
Insurance
Operations
------ ------ ------ ------ ------ ------
Asian
Insurance
Operations :
(10)
China 6 5 20% 5 4 25%
Hong Kong 72 75 (4%) 24 25 (4%)
India (@26%) 8 7 14% 7 6 17%
Indonesia 12 12 -- 7 6 17%
Japan 7 5 40% 3 2 50%
Korea 16 23 (30%) 13 15 (13%)
Malaysia 20 15 33% 18 13 38%
Singapore 68 56 21% 17 15 13%
Taiwan 72 47 53% 41 29 41%
Other (5) 12 11 9% 10 9 11%
------ ------ ------ ------ ------ ------
Total Asian 293 256 14% 145 122 19%
Insurance
Operations
------ ------ ------ ------ ------ ------
Group Total 2,571 2,641 (3%) 417 418 --
====== ====== ==== ===== ====== =====
INVESTMENT OPERATIONS
Hong Kong MPF Products (8) Total Investment Products
Q3 Q2 +/- Q3 Q2 +/- (%)
2004 2004 (%) 2004 2004
GBPm GBPm GBPm GBPm
Opening FUM 216 206 5% 31,534 30,605 3%
Gross 16 24 (33%) 5,466 6,131 (11%)
inflows
Less ( 5) ( 12) 58% (5,179) (4,964) (4%)
redemptions
------ ------ ------ ------ ------ ------
Net flows 11 12 (8%) 287 1,167 (75%)
Other -- -- -- 49 ( 152) 132%
movements
Market and 5 ( 2) 350% 779 ( 86) 1006%
currency
movements
------ ------ ------ ------ ------ ------
Net 16 10 60% 1,114 929 20%
movement in
FUM
------ ------ ------ ------ ------ ------
Closing FUM 232 216 7% 32,648 31,534 4%
------ ------ ------ ------ ------ ------
Schedule 5
INSURANCE OPERATIONS
Q3 2004 (%) Q3 2003 (%)
GBPm GBPm
SALES
UK Insurance Operations:
ANNUITIES
Bulks:
Policyholder 1 2% 3 10%
Shareholder 42 98% 29 90%
------ ------ ------ ------
Total 43 100% 32 100%
------ ------ ------ ------
Individual:
Policyholder 2 0% 212 48%
Shareholder 574 100% 233 52%
------ ------ ------ ------
Total 576 100% 445 100%
------ ------ ------ ------
Total Annuities:
Policyholder 3 0% 215 45%
Shareholder 616 100% 262 55%
------ ------ ------ ------
Total 619 100% 477 100%
====== ====== ====== ======
PRUDENTIAL PLC -- NEW BUSINESS -- YTD 2004 VERSUS YTD 2003
YTD Q3 2004 (%) YTD Q3 2003 (%)
GBPm GBPm
SALES
UK Insurance
Operations:
ANNUITIES
Bulks:
Policyholder 7 3% 7 4%
Shareholder 246 97% 182 96%
------ ------ ------ ------
Total 253 100% 189 100%
------ ------ ------ ------
Individual:
Policyholder 431 27% 728 56%
Shareholder 1,137 73% 583 44%
------ ------ ------ ------
Total 1,568 100% 1,311 100%
------ ------ ------ ------
Total Annuities:
Policyholder 438 24% 735 49%
Shareholder 1,383 76% 765 51%
------ ------ ------ ------
Total 1,821 100% 1,500 100%
====== ====== ====== ======
Notes to Schedules :
(1) Insurance and investment new business for overseas operations has been calculated using constant exchange rates. The applicable rate for Jackson National Life is 1.82. 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 1.82 (2003 -- 1.61).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions + 10% single new business contributions, are subject to roundings.
(4) Certain investment mandates previously reported as UK Corporate Pensions in 2003 are now reported as M&G institutional funds under management. The impact of this is to reduce UK Corporate pensions APE sales by GBP32 million for the full year 2003 (GBP26 million for the first nine months of 2003).
(5) In Asia, 'Other' insurance operations include Thailand, The Philippines and Vietnam.
(6) Scottish Amicable and Prudential branded Investment Products.
(7) Balance includes segregated pensions fund business, private finance flows and M&G South Africa institutional business. M&G institutional funds under management for Q2 2003 have been restated to include funds managed on behalf of the Prudential Staff Pension Scheme previously categorised as internal funds. Other movements reflect the net flows arising from the cash portion of a tactical asset allocation fund managed in South Africa.
(8) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest in the Hong Kong MPF operation.
(9) Balance sheet figures have been calculated at closing exchange rates.
(10) 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.
This information is provided by RNS. The company news service from the London Stock Exchange