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 January, 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-
Enclosure: Full Year 2004 Sales
Embargo: 07.00 hrs Wednesday 26 January 2005
PRUDENTIAL PLC 2004 NEW BUSINESS RESULTS
Record Group Insurance APE sales
- Record total Group Insurance APE sales of GBP1.85 billion, up 26 per cent on
2003
- UK & Europe APE sales up 40 per cent on 2003
- JNL total APE sales up 21 per cent on 2003
- Asia APE sales up 14 per cent on 2003
- M&G external funds under management of GBP28.7 billion up 19 per cent on
2003
- Prudential Corporation Asia investment operations' funds under management
of GBP7.8 billion, up 19 per cent on 2003
Prudential's Group Chief Executive, Jonathan Bloomer, commented: "All our
businesses are showing strong momentum, and we have delivered significant
year-on-year sales growth in each of our markets.
Prudential UK's performance reflects its brand, financial strength and broad
product range. The transition from direct sales force to multi-product,
multi-channel distribution is nearing completion and we are well placed to
continue to grow profitably in the UK market.
In the US, JNL's attractive product range, distribution proposition and service
offering have combined to deliver its highest ever level of variable annuity
sales, up 14 per cent on 2003.
New business growth in Asia reflects action we have taken in the region to focus
on profitable and sustainable business. We have driven growth throughout the
year, demonstrated by Q4 2004 APE sales up 25 per cent on Q3 2004 and full year
APE sales up 14 per cent on 2003. Our joint venture with CITIC continues to
develop in China, having been granted two new licences for Shanghai and Suzhou
during 2004. It delivered growth of 70 per cent in new business APE sales on
2003. Our businesses in Asia are well positioned for further growth in 2005.
M&G's gross sales were up 54 per cent on 2003, reflecting significant growth in
both retail and institutional business. 2004 marked a record year of retail
business with gross inflows of GBP2 billion, up 61 per cent on the previous
year.
A strong contribution across each of our businesses helped to achieve record
sales in 2004. With the presence we have established in our chosen markets we
will continue to deliver profitable growth in 2005."
*The narrative is on a Constant Exchange Rate (CER) throughout. For more details
see Notes to Editors.
UK and Europe Insurance Operations
__________________________________
Prudential UK and Europe's APE sales were up 40 per cent on 2003 to GBP817
million. This included GBP111 million APE in relation to a substantial annuity
transaction with Royal London which concluded in December1. Excluding this
transaction, Prudential UK and Europe reported year-on-year sales growth of 21
per cent.
APE sales in the fourth quarter of the year of GBP294 million were up 104 per
cent on the fourth quarter of 2003 and 83 per cent up on the third quarter of
2004.
This increase in premium income has been achieved without any material change in
commission rates and we expect the full year new business margin to be broadly
in line with that achieved in the first half of 2004.
Partnerships
The Partnerships channel has had an outstanding year with APE sales of GBP206
million, an increase of 489 per cent on 2003 (including Royal London). Excluding
the Royal London transaction, APE sales were GBP95 million, up 171 per cent on
2003. Fourth quarter sales of GBP27 million (excluding Royal London) were up 200
per cent on the fourth quarter of 2003. This result reflects the continued
growth in credit life protection product sales through our partnership
agreements with Lloyds TSB and Alliance and Leicester, up 224 per cent on 2003
APE sales to GBP81 million. It was also due to increased individual annuity
sales through our agreements with Zurich and Pearl, the latter being launched in
September 2004.
In the second half of 2005, the existing reassurance agreement with Zurich will
be replaced in terms of new business with a direct offer arrangement under which
advisers of Openwork (formerly Zurich Advice Network) will sell Prudential's
range of annuity products to their customers on an exclusive basis following the
Openwork operational launch. In addition, we are announcing today a partnership
agreement with St. James's Place (SJP) which will allow SJP Partners to sell on
an exclusive basis Prudential's annuity products to their customers. This
agreement becomes effective in May 2005 and will run for five years.
Intermediaries
APE sales through our intermediary channel were GBP267 million, a 17 per cent
increase on 2003. This growth was achieved through increased sales of
unit-linked bonds of GBP49 million (up 219 per cent), individual annuities of
GBP118 million (up 42 per cent) and off-shore bonds of GBP27 million (up 32 per
cent). Sales of unit-linked bonds in 2004 endorsed our commitment to developing
our capability in this market. This included the recently-launched range of
protected funds which were the first of a series of developments aimed at
consolidating our position as a major unit-linked bond provider to IFAs.
Despite seeing reductions in sales of with-profit bonds during 2003, Prudential
has the largest with-profits fund and believes there is still customer demand
for products offering a smoothed investment return. To meet this demand we
launched PruFund, our new transparent smoothed investment product in September.
Savers invested GBP10 million (APE GBP1 million) in PruFund by the year-end.
We saw another very strong return on the Prudential With-Profits Fund in 2004,
which delivered a pre-tax return of 13.4 per cent, compared with the FTSE All
Share (Total Return) of 12.8 per cent. Over the last five years, the
With-Profits Fund has delivered a pre-tax return of 20.8 per cent. Prudential's
bonus declaration will be announced on 22 February 2005.
Business to Business
APE sales were up 14 per cent on 2003 to GBP223 million, with fourth quarter
sales of GBP67 million up 60 per cent on third quarter 2004 sales. Corporate
pension sales were GBP152 million, 6 per cent higher than in 2003. Our focus on
the corporate market, differentiated service proposition and ability to work in
partnership with Employee Benefit Consultancies provide us with a strong base
for increasing our share of this market. APE sales of bulk annuities were GBP47
million, an increase of 62 per cent on 2003. Sales of bulks comprised 83
separate schemes, 32 of which were achieved in the fourth quarter. The pipeline
of schemes considering buyout is strong with a high level of enquiries about our
new Risk Management products launched in 2004, as well as our established bulk
product.
Distribution
During the year, Prudential was appointed to the regulated multi-tie panels for
Sesame, Millfield and THINC Destini (Prudential was also appointed as THINC
Destini's single-tie annuity provider). In addition, earlier this week,
Prudential was appointed to work with Tenet on the detailed design of Tenet's
regulated multi-tie platform and was also appointed by Burns-Anderson to lead
the design and formulation of its multi-tie proposition as well as securing a
place on its regulated multi-tie panel. Prudential expects that a significant
proportion of IFAs will add to their whole-of-market proposition with a panel
approach, whereby they distribute the product range of a small number of life
companies.
Depolarisation is also expected to have a significant impact on the bank
distribution model in the UK, as banks are able to offer their customers
products from a panel of different providers rather than from a single product
provider. Any review by banks of existing single-tie relationships represents an
opportunity for Prudential.
Summary
Prudential UK and Europe's performance in 2004 demonstrates our strength and
breadth of distribution across a number of channels. We are well-placed to
continue to benefit from the positive developments in the UK market.
Jackson National Life (JNL)
___________________________
APE sales for the year of GBP453 million were up 21 per cent on 2003. Total
retail sales of GBP368 million were up 12 per cent on 2003. Variable annuity
sales growth in the first nine months (the latest period for which data is
available) of 2004 was 14 per cent compared with 5 per cent market growth
(Source: VARDS).
Retail APE sales in the fourth quarter were GBP95 million, up 30 per cent on the
same period in 2003.
Variable annuities
JNL delivered record variable annuity sales during 2004, reflecting the benefits
of its innovative product range, distribution proposition and service offering.
Total APE sales of GBP198 million were up 14 per cent on last year. For the
first nine months of the year, JNL had a top 10 market position in terms of
variable annuity net flows and its unbundled annuity product "Perspective II"
was the best selling variable annuity product in the US, in terms of net flows
(Source VARDS). The rate of take up of the fixed account option continued at
normal levels, with 29 per cent of the variable annuity premium going into the
fixed accounts compared with 48 per cent in 2003.
Fixed annuities
Fixed annuity APE sales of GBP113 million were down 8 per cent on 2003, due to
the continued low interest rate environment. The resulting lower crediting rates
have limited demand for this product. However, recent interest rate moves have
generated more interest in fixed and equity-linked indexed annuity products. In
the fourth quarter, fixed annuity sales were up 5 per cent on the previous
quarter.
Equity-linked indexed annuities
Equity-linked indexed annuity APE sales of GBP43 million were up 87 per cent on
2003, reflecting customers' increasing preference for fixed products with the
potential for higher returns linked to equity index performance.
Life
JNL continues to focus on developing its life business to achieve a greater
balance of fee, spread and underwriting income. A dedicated distribution team
was created in 2003 to focus on building relationships with life agents and
several new products have been introduced, such as variable universal life. Life
APE sales of GBP14 million were 17 per cent up on 2003. An agreement to buy Life
Insurance Company of Georgia was announced in November.
Curian Capital
In March 2003, JNL entered the Registered Investment Advisor channel with the
launch of Curian Capital which provides innovative fee based separately managed
accounts. It continues to build a strong position with total assets under
management at the end of 2004 of GBP550 million compared with GBP139 million at
the start of the year.
Institutional
Institutional APE sales of GBP85 million were up 98 per cent on 2003. JNL has
taken advantage of attractive issuance opportunities as they have arisen during
the year, and will continue to do so in 2005.
Summary
JNL is well positioned to grow faster than the market as current market
conditions continue to favour companies which have a range of variable and fixed
annuity product offerings, a relationship-based distribution model and
award-winning service.
Prudential Corporation Asia
___________________________
Insurance operations
Prudential's Asian operations continue to show good new business growth and
reflect our focus on building a profitable and sustainable platform. Overall APE
sales of GBP181 million in the fourth quarter of 2004 are up 25 per cent over
the third quarter and reflect continued momentum across the region. APE sales of
GBP576 million for the year are up 14 per cent on last year with underlying
growth of 20 per cent excluding discontinued lines in Japan.
During 2004 we had great success in India in our life joint venture with ICICI
(up 127 per cent at GBP34 million for our 26% stake) where our brand and ability
to leverage product and distribution innovation has strengthened our position as
the leading private sector life insurance provider. In Korea (up 113 per cent at
GBP64 million), the large increase in APE sales has been driven by our
successful multi-channel distribution and the launch of a variable universal
life product.
New business APE for China at GBP17 million increased by 70 per cent over 2003
and the prospects for significant growth over the long term remain compelling.
During 2004 we received licences for two more cities, launching our Suzhou
operation in September and Shanghai's opening is planned for the first quarter
of 2005. We expect our pace of expansion in China to increase during 2005 as
more cities and provinces are opened up to foreign insurers.
Taiwan grew 23 per cent to GBP152 million with a continued focus on higher
margin regular premium linked business in line with our strategic focus as
discussed in the interim results. In the more established markets of Hong Kong,
Singapore and Malaysia we continue actively to manage our business for
sustainable and profitable growth. Average new business APE sales across these
markets is 8 per cent higher than 2003.
The remaining 'other' operations continue to grow well and are building scale,
but during 2004 we saw a softening of industry growth particularly in Vietnam
after the initial explosive growth following liberalisation of the market.
Investment Business
Total investment product funds under management are GBP7.8 billion up 19 per
cent on 2003. Net investment product inflows were GBP1.2 billion, down 22 per
cent on 2003. Strong net inflows in Japan (GBP1.3 billion), and Korea (GBP0.4
billion) were partially offset by net outflows in Taiwan of GBP0.9 billion where
industry-wide concerns over the liquidity of some bond funds unsettled the
market during the second half of 2004. The Indian mutual fund market has seen a
marked slowdown this year principally due to rising and volatile interest rates
affecting the growth of fixed income funds. Despite a 90 per cent decrease in
net inflows over 2003, we have maintained our number one position for funds
under management in India's private sector with a market share at around 14%. In
Malaysia, we have attained a top 5 position in the market, 3 years after launch.
Summary
Prudential Corporation Asia has a strong platform across the region with a well
diversified portfolio of businesses clearly focused on delivering sustainable
and profitable growth over the long term. We remain very positive on the outlook
for 2005.
M&G
___
M&G enjoyed a significant increase in sales during 2004, with gross fund inflows
up 54 per cent to GBP5.8 billion, reflecting its diversified product offering in
the areas of retail fund management, institutional fixed income, pooled life and
pension funds, property and private finance. Net fund inflows were up 48 per
cent to GBP2 billion. External funds under management, which represent
approximately one quarter of M&G's total funds under management, rose by 19 per
cent during the year to GBP28.7 billion.
Gross retail fund inflows were a record GBP2 billion in 2004, up 61 per cent on
the previous year, boosted by international sales and the success of the M&G
Property Fund. Net retail fund inflows during 2004 were GBP417 million.
M&G's institutional business also had a successful year, especially in the areas
of segregated fixed income and private finance, with gross fund inflows
increasing 50 per cent to GBP3.9 billion. Net institutional fund inflows were
GBP1.6 billion.
M&G believe that market conditions are now more positive for fund management
companies and its businesses are well placed to capitalise on this due to their
strong competitive positions in their chosen markets.
Egg
___
Egg will announce its full year results on 23 February 2005.
-ENDS-
Enquiries to:
_____________
Rebecca Burrows, Group Communications Director 020 7548 3537
Media Relations Investors/Analysts
Clare Staley 020 7548 3719 Mike Kempster 020 7548 3823
Joanne Davidson 020 7548 3708 Marina Lee-Steere 020 7548 3511
Notes to Editors:
_________________
1. In December 2004, we reached an agreement with Royal London to reassure
Scottish Life's approximately 60,000 in-force annuities, representing in
excess of GBP1 billion of funds under management. Prudential is initially
providing reassurance to Scottish Life (a division of Royal London) which
will continue to make payments to annuitants, with Prudential reimbursing
the annuity payments administered by Scottish Life. It is intended that the
Scottish Life annuities will transfer to Prudential, subject to legal and
regulatory approvals, by the end of 2005 when Prudential will take over
responsibility for the administration and paying of all these annuitants.
2. There will be conference call today for wire services hosted by Jonathan
Bloomer, Group Chief Executive, and Philip Broadley, Group Finance Director
at 7.45am (UK time). Dial-in telephone number: +44 (0) 20 8288 4530. Callers
to quote "Prudential" for access to the call.
3. There will be a conference call for investors and analysts at 2:30pm (UK
time) hosted by Jonathan Bloomer, and Philip Broadley. Dial in telephone
number: UK callers: + 44 (0) 20 7162 0184, US callers: + 1 334 420 4951.
Callers to quote "Prudential" for access to the call.
A recording of this call will be available for replay for one week by
dialling:
UK: +44 (0) 20 7031 4064, US: +1 954 334 0342, Passcode 640410.
4. 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 FY GBPm 2003 FY GBPm +/- (%) 2004 FY GBPm 2003 FY GBPm +/- (%)
UK and Europe 817 584 40% 817 584 40%
US 453 418 8% 453 374 21%
Asia 576 555 4% 576 506 14%
Total 1,846 1,557 19% 1,846 1,464 26%
Gross Inflows
Actual exchange rates Constant exchange rates
2004 FY GBPm 2003 FY GBPm +/- (%) 2004 FY GBPm 2003 FY GBPm +/- (%)
M&G 5,845 3,797 54% 5,845 3,797 54%
Asia 18,845 18,157 4% 18,845 16,864 12%
Total 24,690 21,954 12% 24,690 20,661 20%
Total Insurance and Investment New Business
Actual exchange rates Constant exchange rates
2004 FY GBPm 2003 FY GBPm +/- (%) 2004 FY GBPm 2003 FY GBPm +/- (%)
Insurance 12,130 9,183 32% 12,130 8,658 40%
Investment 24,690 21,954 12% 24,690 20,661 20%
Total 36,820 31,137 18% 36,820 29,316 26%
5. Annual premium equivalent (APE) sales comprise regular premium insurance
sales plus one-tenth of single premium insurance sales.
6. 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 GBP31 million for the full-year 2003.
7. 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.
Schedule 1A - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004
UK & Europe US (1) Asia (1) Total
FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance 6,538 4,129 58% 4,420 3,628 22% 1,172 901 30% 12,130 8,658 40%
Products
Total Investment 5,845 3,797 54% - - - 18,845 16,864 12% 24,690 20,661 20%
Products - Gross
Inflows(2)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 12,383 7,926 56% 4,420 3,628 22% 20,017 17,765 13% 36,820 29,319 26%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations: (4)
Direct to
Customer:
Individual 8 9 (11%) 8 9 (11%) 16 18 (11%) 9 10 (10%)
Pensions
Life - With 11 13 (15%) 1 1 0% 12 14 (14%) 2 2 0%
Profit Bond
Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%)
Individual 630 657 (4%) - - - 630 657 (4%) 63 66 (5%)
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 649 679 (4%) 10 12 (17%) 659 691 (5%) 75 80 (6%)
DWP Rebates 265 280 (5%) - - - 265 280 (5%) 27 28 (4%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 914 959 (5%) 10 12 (17%) 924 971 (5%) 101 108 (6%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate 153 168 (9%) 137 127 8% 290 295 (2%) 152 144 6%
Pensions
Individual 229 223 3% - - - 229 223 3% 23 22 5%
Annuities
Bulk Annuities 474 287 65% - - - 474 287 65% 47 29 62%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 856 678 26% 137 127 8% 993 805 23% 223 195 14%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 55 53 4% 17 23 (26%) 72 76 (5%) 23 28 (18%)
Pensions
Corporate 134 67 100% 8 6 33% 142 73 95% 21 13 62%
Pensions
Life - With 231 450 (49%) - - - 231 450 (49%) 23 45 (49%)
Profit Bond
Life - Other 770 366 110% - - - 770 366 110% 77 37 108%
Bond
Life - Other - 2 - 5 22 (77%) 5 24 (79%) 5 22 (77%)
Individual 1,180 828 43% - - - 1,180 828 43% 118 83 42%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 2,370 1,766 34% 30 51 (41%) 2,400 1,817 32% 267 228 17%
DWP Rebates 89 103 (14%) - - - 89 103 (14%) 9 10 (10%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 2,459 1,869 32% 30 51 (41%) 2,489 1,920 30% 276 238 16%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With 3 46 (93%) - - - 3 46 (93%) 0 5 (100%)
Profit Bond
Life - Other 787 247 219% 2 - - 789 247 219% 81 25 224%
Individual 141 52 171% - - - 141 52 171% 14 5 180%
Annuities
Bulk Annuities 1,108 - - - - - 1,108 - - 111 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 2,039 345 491% 2 - - 2,041 345 492% 206 35 489%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 63 62 2% 25 32 (22%) 88 94 (6%) 31 38 (18%)
Pensions
Corporate 287 235 22% 145 133 9% 432 368 17% 174 157 11%
Pensions
Life - With 245 509 (52%) 1 1 0% 246 510 (52%) 26 52 (50%)
Profit Bond
Life - Other 770 366 110% - - - 770 366 110% 77 37 108%
Bond
Life - Other 787 249 216% 8 24 (67%) 795 273 191% 87 49 78%
Individual 2,180 1,760 24% - - - 2,180 1,760 24% 218 176 24%
Annuities
Bulk Annuities 1,582 287 451% - - - 1,582 287 451% 158 29 445%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 5,914 3,468 71% 179 190 (6%) 6,093 3,658 67% 770 537 43%
DWP Rebates 354 383 (8%) - - - 354 383 (8%) 35 38 (8%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 6,268 3,851 63% 179 190 (6%) 6,447 4,041 60% 806 575 40%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European
Insurance
Operations :(1)
Insurance 89 88 1% 2 - - 91 88 3% 11 9 22%
Products
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total European 89 88 1% 2 - - 91 88 3% 11 9 22%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK & 6,357 3,939 61% 181 190 (5%) 6,538 4,129 58% 817 584 40%
European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations :(1)
Fixed Annuities 1,130 1,227 (8%) - - - 1,130 1,227 (8%) 113 123 (8%)
Equity-Linked 429 228 88% - - - 429 228 88% 43 23 87%
Indexed Annuities
Variable 1,981 1,728 15% - - - 1,981 1,728 15% 198 173 14%
Annuities
Life 16 - - 12 12 0% 28 12 133% 14 12 17%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 3,556 3,183 12% 12 12 0% 3,568 3,195 12% 368 330 12%
Retail
Guaranteed 180 163 10% - - - 180 163 10% 18 16 13%
Investment
Contracts
GIC - Medium 672 270 149% - - - 672 270 149% 67 27 148%
Term Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US 4,408 3,616 22% 12 12 0% 4,420 3,628 22% 453 374 21%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations :(1)
China 9 6 50% 16 10 60% 25 16 56% 17 10 70%
Hong Kong 255 169 51% 78 74 5% 333 243 37% 104 91 14%
India (@26%) 5 4 25% 33 15 120% 38 19 100% 34 15 127%
Indonesia 38 23 65% 28 27 4% 66 49 35% 32 29 10%
Japan 17 9 89% 7 34 (79%) 24 43 (44%) 9 34 (74%)
Korea 36 18 100% 60 28 114% 96 46 109% 64 30 113%
Malaysia 7 10 (30%) 61 53 15% 68 63 8% 62 54 15%
Singapore 199 168 18% 47 53 (11%) 246 221 11% 67 70 (4%)
Taiwan 88 26 238% 143 121 18% 231 147 57% 152 124 23%
Other (5) 8 6 33% 37 48 (23%) 45 54 (17%) 38 48 (21%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian 662 439 51% 510 462 10% 1,172 901 30% 576 506 14%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 11,427 7,994 43% 703 664 6% 12,130 8,658 40% 1,846 1,464 26%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance 6,538 4,128 58% 4,420 4,066 9% 1,172 989 19% 12,130 9,183 32%
Products
Total Investment 5,845 3,797 54% - - - 18,845 18,157 4% 24,690 21,954 12%
Products - Gross
Inflows (2)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 12,383 7,925 56% 4,420 4,066 9% 20,017 19,146 5% 36,820 31,137 18%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations :(4)
Direct to
Customer:
Individual 8 9 (11%) 8 9 (11%) 16 18 (11%) 9 10 (10%)
Pensions
Life - With 11 13 (15%) 1 1 0% 12 14 (14%) 2 2 0%
Profit Bond
Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%)
Individual 630 657 (4%) - - - 630 657 (4%) 63 66 (5%)
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 649 679 (4%) 10 12 (17%) 659 691 (5%) 75 80 (6%)
DWP Rebates 265 280 (5%) - - - 265 280 (5%) 27 28 (4%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 914 959 (5%) 10 12 (17%) 924 971 (5%) 101 108 (6%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate 153 168 (9%) 137 127 8% 290 295 (2%) 152 144 6%
Pensions
Individual 229 223 3% - - - 229 223 3% 23 22 5%
Annuities
Bulk Annuities 474 287 65% - - - 474 287 65% 47 29 62%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 856 678 26% 137 127 8% 993 805 23% 223 195 14%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 55 53 4% 17 23 (26%) 72 76 (5%) 23 28 (18%)
Pensions
Corporate 134 67 100% 8 6 33% 142 73 95% 21 13 62%
Pensions
Life - With 231 450 (49%) - - - 231 450 (49%) 23 45 (49%)
Profit Bond
Life - Other Bond 770 366 110% - - - 770 366 110% 77 37 108%
Life - Other - 2 - 5 22 (77%) 5 24 (79%) 5 22 (77%)
Individual 1,180 828 43% - - - 1,180 828 43% 118 83 42%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 2,370 1,766 34% 30 51 (41%) 2,400 1,817 32% 267 228 17%
DWP Rebates 89 103 (14%) - - - 89 103 (14%) 9 10 (10%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 2,459 1,869 32% 30 51 (41%) 2,489 1,920 30% 276 238 16%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With 3 46 (93%) - - - 3 46 (93%) 0 5 (100%)
Profit Bond
Life - Other 787 247 219% 2 - - 789 247 219% 81 25 224%
Individual 141 52 171% - - - 141 52 171% 14 5 180%
Annuities
Bulk Annuities 1,108 - - - - - 1,108 - - 111 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 2,039 345 491% 2 - - 2,041 345 492% 206 35 489%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 63 62 2% 25 32 (22%) 88 94 (6%) 31 38 (18%)
Pensions
Corporate 287 235 22% 145 133 9% 432 368 17% 174 157 11%
Pensions
Life - With 245 509 (52%) 1 1 0% 246 510 (52%) 26 52 (50%)
Profit Bond
Life - Other Bond 770 366 110% - - - 770 366 110% 77 37 108%
Life - Other 787 249 216% 8 24 (67%) 795 273 191% 87 49 78%
Individual 2,180 1,760 24% - - - 2,180 1,760 24% 218 176 24%
Annuities
Bulk Annuities 1,582 287 451% - - - 1,582 287 451% 158 29 445%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 5,914 3,468 71% 179 190 (6%) 6,093 3,658 67% 770 537 43%
DWP Rebates 354 383 (8%) - - - 354 383 (8%) 35 38 (8%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 6,268 3,851 63% 179 190 (6%) 6,447 4,041 60% 806 575 40%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European Insurance
Operations : (1b)
Insurance 89 87 2% 2 - - 91 87 5% 11 9 22%
Products
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total European 89 87 2% 2 - - 91 87 5% 11 9 22%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK & European 6,357 3,938 61% 181 190 (5%) 6,538 4,128 58% 817 584 40%
Insurance Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (1b)
Fixed Annuities 1,130 1,375 (18%) - - - 1,130 1,375 (18%) 113 138 (18%)
Equity-Linked 429 255 68% - - - 429 255 68% 43 25 72%
Indexed Annuities
Variable 1,981 1,937 2% - - - 1,981 1,937 2% 198 194 2%
Annuities
Life 16 - - 12 13 (8%) 28 13 115% 14 13 8%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total Retail 3,556 3,567 (0%) 12 13 (8%) 3,568 3,580 (0%) 368 370 (1%)
Guaranteed 180 183 (2%) - - - 180 183 (2%) 18 18 0%
Investment
Contracts
GIC - Medium Term 672 303 122% - - - 672 303 122% 67 30 123%
Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US Insurance 4,408 4,053 9% 12 13 (8%) 4,420 4,066 9% 453 418 8%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations : (1b)
China 9 7 29% 16 11 45% 25 18 39% 17 12 42%
Hong Kong 255 189 35% 78 83 (6%) 333 272 22% 104 102 2%
India (@26%) 5 4 25% 33 16 106% 38 20 90% 34 16 113%
Indonesia 38 27 41% 28 31 (10%) 66 58 14% 32 34 (6%)
Japan 17 9 89% 7 35 (80%) 24 44 (45%) 9 36 (75%)
Korea 36 19 89% 60 30 100% 96 49 96% 64 32 100%
Malaysia 7 11 (36%) 61 59 3% 68 70 (3%) 62 60 3%
Singapore 199 181 10% 47 57 (18%) 246 238 3% 67 75 (11%)
Taiwan 88 28 214% 143 132 8% 231 160 44% 152 135 13%
Other (5) 8 7 14% 37 53 (30%) 45 60 (25%) 38 54 (30%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian Insurance 662 482 37% 510 507 1% 1,172 989 19% 576 555 4%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 11,427 8,473 35% 703 710 (1%) 12,130 9,183 32% 1,846 1,557 19%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004
INVESTMENT OPERATIONS
Opening FUM Gross Redemptions Net Other Market & Net Closing
inflows inflows movements currency movement FUM
movements in FUM
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
2004
M&G
M&G branded retail 8,819 1,795 ( 1,351) 444 - 960 1,404 10,223
investment products
Prudential branded 1,325 159 ( 186) ( 27) - 92 65 1,390
UK retail investment
products (6)
M&G institutional (7) 14,048 3,891 ( 2,304) 1,587 145 1,312 3,044 17,092
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 24,192 5,845 ( 3,841) 2,004 145 2,364 4,513 28,705
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 2,049 9,129 ( 9,068) 61 ( 21) 55 95 2,144
Taiwan 2,666 5,696 ( 6,550) ( 854) - ( 15) ( 869) 1,797
Korea 933 2,132 ( 1,696) 436 ( 42) 99 493 1,426
Other Mutual Fund 752 1,814 ( 307) 1,507 - ( 38) 1,469 2,221
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 6,400 18,771 ( 17,621) 1,150 ( 63) 101 1,188 7,588
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 196 74 ( 26) 48 - - 48 244
Products (8)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Investment 6,596 18,845 ( 17,647) 1,198 ( 63) 101 1,236 7,832
Operations
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 30,788 24,690 ( 21,488) 3,202 82 2,465 5,749 36,537
Products
----- ----- ----- ----- ----- ----- ----- -----
Opening FUM Gross Redemptions Net Other Market & Net Closing
inflows inflows movements currency movement FUM
movements in FUM
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
2003
M&G
M&G branded retail 7,587 1,068 ( 883) 185 ( 14) 1,061 1,232 8,819
investment products
Prudential branded 1,137 143 ( 144) ( 1) - 189 188 1,325
UK retail investment
products (6)
M&G institutional 11,560 2,586 ( 1,417) 1,169 - 1,319 2,488 14,048
(4) (7)
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 20,284 3,797 ( 2,444) 1,353 ( 14) 2,569 3,908 24,192
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 1,372 7,534 ( 6,906) 628 ( 67) 116 677 2,049
Taiwan 2,425 7,488 ( 7,114) 374 - ( 133) 241 2,666
Korea 993 2,339 ( 2,329) 10 ( 25) ( 45) ( 60) 933
Other Mutual Fund 306 724 ( 267) 457 - ( 11) 446 752
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 5,096 18,085 ( 16,616) 1,469 ( 92) ( 73) 1,304 6,400
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 136 72 ( 19) 53 - 7 60 196
Products (8)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Investment 5,232 18,157 ( 16,635) 1,522 ( 92) ( 66) 1,364 6,596
Operations
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 25,516 21,954 (19,079) 2,875 ( 106) 2,503 5,272 30,788
Products
----- ----- ----- ----- ----- ----- ----- -----
Opening FUM Gross Redemptions Net Other Market & Net Closing
inflows inflows movements currency movement FUM
movements in FUM
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
2004 movement
relative to 2003
M&G
M&G branded retail 16% 68% (53%) 140% - (10%) 14% 16%
investment products
Prudential branded 17% 11% (29%) (2600%) - (51%) (65%) 5%
UK retail investment
products (6)
M&G institutional 22% 50% (63%) 36% - (1%) 22% 22%
(4)(7)
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 19% 54% (57%) 48% 1136% (8%) 15% 19%
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 49% 21% (31%) (90%) 69% (53%) (86%) 5%
Taiwan 10% (24%) 8% (328%) - 89% (461%) (33%)
Korea (6%) (9%) 27% 4260% (68%) 320% 922% 53%
Other Mutual Fund 146% 151% (15%) 230% - (245%) 229% 195%
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 26% 4% (6%) (22%) 32% 238% (9%) 19%
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 44% 3% (37%) (9%) - - (20%) 24%
Products (8)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Investment 26% 4% (6%) (21%) 32% 253% (9%) 19%
Operations
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 21% 12% (13%) 11% 177% (2%) 9% 19%
Products
----- ----- ----- ----- ----- ----- ----- -----
US (9)
FY 2004 FY 2003 +/- (%)
GBPm GBPm
Curian Capital
External Funds 550 139 296%
under Management
----- ----- -----
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2004 VERSUS QUARTER 4 2003 (10)
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations : (4)
Direct to
Customer:
Individual 2 1 100% 2 2 0% 4 3 33% 2 2 0%
Pensions
Life - With 2 3 (33%) - - - 2 3 (33%) 0 0 0%
Profit Bond
Life - Other - - - - 1 - - 1 - - 1 -
Individual 166 138 20% - - - 166 138 20% 17 14 21%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 170 142 20% 2 3 33% 172 145 19% 19 17 12%
DWP Rebates 13 - - - - - 13 - - 1 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 183 142 29% 2 3 33% 185 145 28% 20 17 18%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate 45 39 15% 33 30 10% 78 69 13% 38 34 12%
Pensions
Individual 68 56 21% - - - 68 56 21% 7 6 17%
Annuities
Bulk Annuities 222 98 127% - - - 222 98 127% 22 10 120%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 335 193 74% 33 30 10% 368 223 65% 67 49 37%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 10 11 (9%) 1 4 (75%) 11 15 (27%) 2 5 (60%)
Pensions
Corporate 7 29 (76%) 2 1 100% 9 30 (70%) 3 4 (25%)
Pensions
Life - With 43 162 (73%) - - - 43 162 (73%) 4 16 (75%)
Profit Bond
Life - Other Bond 250 114 119% - - - 250 114 119% 25 11 127%
Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%)
Individual 326 233 40% - - - 326 233 40% 33 23 43%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 636 549 16% 4 7 (43%) 640 556 15% 68 62 10%
DWP Rebates ( 3) 43 (107%) - - - ( 3) 43 (107%) ( 0) 4 (100%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 633 592 7% 4 7 (43%) 637 599 6% 67 66 2%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With - 1 - - - - - 1 - - 0 -
Profit Bond
Life - Other 214 69 210% - - - 214 69 210% 21 7 200%
Individual 53 23 130% - - - 53 23 130% 5 2 150%
Annuities
Bulk Annuities 1,108 - - - - - 1,108 - - 111 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 1,375 93 1378% - - - 1,375 93 1378% 138 9 1433%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 12 12 0% 3 6 (50%) 15 18 (17%) 4 7 (43%)
Pensions
Corporate 52 68 (24%) 35 31 13% 87 99 (12%) 40 38 5%
Pensions
Life - With 45 166 (73%) - - - 45 166 (73%) 5 17 (71%)
Profit Bond
Life - Other Bond 250 114 119% - - - 250 114 119% 25 11 127%
Life - Other 214 69 210% 1 3 (67%) 215 72 199% 22 10 120%
Individual 613 450 36% - - - 613 450 36% 61 45 36%
Annuities
Bulk Annuities 1,330 98 1257% - - - 1,330 98 1257% 133 10 1230%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 2,516 977 158% 39 40 3% 2,555 1,017 151% 291 138 111%
DWP Rebates 10 43 (77%) - - 0% 10 43 (77%) 1 4 (75%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK Insurance 2,526 1,020 148% 39 40 3% 2,565 1,060 142% 292 142 106%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European
Insurance
Operations : (10)
Insurance 18 41 (56%) 1 - - 19 41 (54%) 3 4 (25%)
Products
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total European 18 41 (56%) 1 - - 19 41 (54%) 3 4 (25%)
Insurance Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK & European 2,544 1,061 140% 40 40 0% 2,584 1,101 135% 294 146 101%
Insurance Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (10)
Fixed Annuities 282 222 27% - - - 282 222 27% 28 22 27%
Equity-Linked 136 71 92% - - - 136 71 92% 14 7 100%
Indexed Annuities
Variable 492 466 6% - - - 492 466 6% 49 47 4%
Annuities
Life 6 - - 3 2 50% 9 2 350% 4 2 100%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-total Retail 916 759 21% 3 2 50% 919 761 21% 95 78 22%
Guaranteed Investment 74 ( 9) 922% - - - 74 ( 9) 922% 7 ( 1) 800%
Contracts
GIC - Medium Term 48 ( 4) 1300% - - - 48 ( 4) 1300% 5 ( 0) -
Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US Insurance 1,038 746 39% 3 2 50% 1,041 748 39% 107 77 39%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations : (10)
China 3 2 50% 5 3 67% 8 5 60% 5 3 67%
Hong Kong 94 55 71% 23 28 (18%) 117 83 41% 32 34 (6%)
India (@26%) 1 1 0% 8 6 33% 9 7 29% 8 6 33%
Indonesia 11 11 0% 8 8 0% 19 19 0% 9 9 0%
Japan 5 2 150% 2 2 0% 7 4 75% 3 2 50%
Korea 6 14 (57%) 20 13 54% 26 27 (4%) 21 14 50%
Malaysia 2 2 0% 22 16 38% 24 18 33% 22 16 38%
Singapore 45 85 (47%) 16 17 (6%) 61 102 (40%) 21 26 (19%)
Taiwan 24 10 140% 48 38 26% 72 48 50% 50 39 28%
Other (5) 2 2 0% 10 15 (33%) 12 17 (29%) 10 15 (33%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian Insurance 193 184 5% 162 146 11% 355 330 8% 181 164 10%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,775 1,991 90% 205 188 9% 3,980 2,179 83% 583 387 51%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INVESTMENT OPERATIONS
M&G (4)(7) Asia Mutual Funds Hong Kong MPF Products (8) Total Investment
Products
Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 25,876 23,193 12% 6,540 6,316 4% 232 186 25% 32,648 29,696 10%
Gross inflows 2,393 772 210% 5,051 4,832 5% 17 16 6% 7,460 5,619 33%
Less redemptions (1,006) ( 604) (67%) (4,121) (4,346) 5% (5) (3) (67%) (5,132) (4,954) (4%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net flows 1,387 168 726% 930 486 91% 11 13 (15%) 2,328 667 249%
Other movements 122 - - ( 11) ( 38) 71% - - - 111 (38) 392%
Market and currency 1,321 831 59% 129 ( 364) 135% 0 ( 3) 100% 1,450 464 213%
movements
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net movement in 2,830 999 183% 1,048 84 1148% 12 10 20% 3,889 1,093 256%
FUM
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Closing FUM 28,705 24,192 19% 7,588 6,400 19% 244 196 24% 36,538 30,789 19%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2004 VERSUS QUARTER 3 2004
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations : (4)
Direct to Customer:
Individual Pensions 2 1 100% 2 2 0% 4 3 33% 2 2 0%
Life - With Profit Bond 2 3 (33%) - - - 2 3 (33%) 0 0 0%
Individual 166 159 4% - - - 166 159 4% 17 16 6%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 170 163 4% 2 2 - 172 165 4% 19 18 6%
DWP Rebates 13 - - - - - 13 - - 1 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 183 163 12% 2 2 0% 185 165 12% 20 18 11%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate Pensions 45 31 45% 33 28 18% 78 59 32% 38 31 23%
Individual 68 68 0% - - - 68 68 0% 7 7 0%
Annuities
Bulk Annuities 222 43 416% - - - 222 43 416% 22 4 450%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 335 142 136% 33 28 18% 368 170 116% 67 42 60%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual Pensions 10 12 (17%) 1 5 (80%) 11 17 (35%) 2 6 (67%)
Corporate Pensions 7 10 (30%) 2 2 0% 9 12 (25%) 3 3 0%
Life - With Profit Bond 43 55 (22%) - - - 43 55 (22%) 4 6 (33%)
Life - Other Bond 250 206 21% - - - 250 206 21% 25 21 19%
Life - Other - - - 1 1 0% 1 1 0% 1 1 0%
Individual 326 309 6% - - - 326 309 6% 33 31 6%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 636 592 7% 4 8 (50%) 640 600 7% 68 67 1%
DWP Rebates ( 3) - - - - - ( 3) - - ( 0) - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 633 592 7% 4 8 (50%) 637 600 6% 67 67 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With Profit Bond - 1 - - - - - 1 - - 0 -
Life - Other 214 234 (9%) - 1 - 214 235 (9%) 21 24 (13%)
Individual 53 40 33% - - - 53 40 33% 5 4 25%
Annuities
Bulk Annuities 1,108 - - - - - 1,108 - - 111 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 1,375 275 400% - 1 - 1,375 276 398% 138 29 376%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual Pensions 12 13 (8%) 3 7 (57%) 15 20 (25%) 4 8 (50%)
Corporate Pensions 52 41 27% 35 30 17% 87 71 23% 40 34 18%
Life - With Profit Bond 45 59 (24%) - - - 45 59 (24%) 5 6 (17%)
Life - Other Bond 250 206 21% - - - 250 206 21% 25 21 19%
Life - Other 214 234 (9%) 1 2 (50%) 215 236 (9%) 22 25 (12%)
Individual 613 576 6% - - - 613 576 6% 61 58 5%
Annuities
Bulk Annuities 1,330 43 2993% - - - 1,330 43 2993% 133 4 3225%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 2,516 1,172 115% 39 39 0% 2,555 1,211 111% 291 156 87%
DWP Rebates 10 - - - - - 10 - - 1 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK Insurance 2,526 1,172 116% 39 39 0% 2,565 1,211 112% 292 156 87%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European Insurance
Operations : (10)
Insurance Products 18 35 (49%) 1 1 0% 19 36 (47%) 3 5 (40%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total European Insurance 18 35 (49%) 1 1 0% 19 36 (47%) 3 5 (40%)
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK & European 2,544 1,207 111% 40 40 0% 2,584 1,247 107% 294 161 83%
Insurance Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (10)
Fixed Annuities 282 275 3% - - - 282 275 3% 28 28 0%
Equity-Linked 136 135 1% - - - 136 135 1% 14 14 0%
Indexed Annuities
Variable Annuities 492 483 2% - - - 492 483 2% 49 48 2%
Life 6 5 20% 3 4 (25%) 9 9 0% 4 5 (20%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-total Retail 916 898 2% 3 4 (25%) 919 902 2% 95 94 1%
Guaranteed Investment 74 74 0% - - - 74 74 0% 7 7 0%
Contracts
GIC - Medium Term Note 48 55 (13%) - - - 48 55 (13%) 5 6 (17%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US Insurance 1,038 1,027 1% 3 4 (25%) 1,041 1,031 1% 107 107 0%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations : (10)
China 3 1 200% 5 5 0% 8 6 33% 5 5 0%
Hong Kong 94 53 77% 23 19 21% 117 72 63% 32 24 33%
India (@26%) 1 1 0% 8 7 14% 9 8 13% 8 7 14%
Indonesia 11 6 83% 8 6 33% 19 12 58% 9 7 29%
Japan 5 5 0% 2 2 0% 7 7 0% 3 3 0%
Korea 6 3 100% 20 13 54% 26 16 63% 21 13 62%
Malaysia 2 2 0% 22 18 22% 24 20 20% 22 18 22%
Singapore 45 57 (21%) 16 11 45% 61 68 (10%) 21 17 24%
Taiwan 24 34 (29%) 48 38 26% 72 72 0% 50 41 22%
Other (5) 2 2 0% 10 10 0% 12 12 0% 10 10 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian Insurance 193 164 18% 162 129 26% 355 293 21% 181 145 25%
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,775 2,398 57% 205 173 18% 3,980 2,571 55% 583 413 41%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INVESTMENT OPERATIONS
M&G (4) (7) Asia Mutual Funds Hong Kong MPF Products (8) Total Investment
Products
Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 25,876 24,442 6% 6,539 6,878 (5%) 233 216 8% 32,648 31,534 4%
Gross inflows 2,393 1,274 88% 5,051 4,176 21% 17 16 6% 7,460 5,466 36%
Less redemptions ( 1,006) ( 567) (77%) ( ( 11% ( 5) ( 5) 0% ( ( 1%
4,121) 4,608) 5,132) 5,179)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net flows 1,387 707 96% 930 ( 432) 315% 11 11 (0%) 2,328 287 711%
Other movements 122 63 94% ( 11) ( 14) 21% - - - 111 49 127%
Market and currency 1,321 664 99% 129 110 17% 0 5 (100%) 1,450 779 86%
movements
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net movement in FUM 2,830 1,434 97% 1,048 ( 336) 412% 12 16 (25%) 3,889 1,114 249%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Closing FUM 28,705 25,876 11% 7,588 6,540 16% 244 232 5% 36,538 32,648 12%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 5
PRUDENTIAL PLC - ANNUITY NEW BUSINESS - Q4 2004 VERSUS Q4 2003
INSURANCE OPERATIONS
Q4 2004 +/- (%) Q4 2003 +/- (%)
GBPm GBPm
Total Sales
UK Insurance Operations:
ANNUITIES
Bulks:
Life fund backed 1 0% 4 4%
Shareholder backed 1,329 100% 94 96%
----- ----- ----- -----
Total 1,330 100% 98 100%
----- ----- ----- -----
Individual:
Life fund backed 20 3% 190 42%
Shareholder backed 593 97% 260 58%
----- ----- ----- -----
Total 613 100% 450 100%
----- ----- ----- -----
Total Annuities:
Life fund backed 21 1% 194 35%
Shareholder backed 1,922 99% 354 65%
----- ----- ----- -----
Total 1,943 100% 548 100%
----- ----- ----- -----
PRUDENTIAL PLC - ANNUITY NEW BUSINESS - FY 2004 VERSUS FY 2003
INSURANCE OPERATIONS
FY 2004 +/- (%) FY 2003 +/- (%)
GBPm GBPm
Total Sales
UK Insurance Operations:
ANNUITIES
Bulks:
Life fund backed 7 0% 10 4%
Shareholder backed 1,575 100% 277 96%
----- ----- ----- -----
Total 1,582 100% 287 100%
----- ----- ----- -----
Individual:
Life fund backed 433 20% 893 51%
Shareholder backed 1,747 80% 867 49%
----- ----- ----- -----
Total 2,180 100% 1,760 100%
----- ----- ----- -----
Total Annuities:
Life fund backed 440 12% 903 44%
Shareholder backed 3,322 88% 1,144 56%
----- ----- ----- -----
Total 3,762 100% 2,047 100%
----- ----- ----- -----
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 1.83.
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 1.83 (2003 - 1.64).
(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 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).
(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 earlier periods.
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 January 26, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Clare Staley
Head of Group Media Relations