1999 New Business Results

Prudential PLC
18 January 2000


PRUDENTIAL 1999 NEW BUSINESS RESULTS


Record total funds inflow of over £18bn

Total long term insurance and investment premiums up 61% to £12.3bn

UK insurance and investment premiums up 61% to £7.4bn

Jackson National Life premiums up 43% to £4.1bn

Asia insurance and investment premiums over four times 1998 levels

egg deposits reach £7.6bn - customers exceed 800,000, including 175,000  egg
card accounts.
   
Prudential's  group-wide operations enjoyed a record year  in  1999  with 
total insurance and  investment sales of £12.3bn, up 61% on 1998.   Banking 
deposits continued their strong performance and now stand at £8.1bn, including
£7.6bn  of egg deposits.

In the UK, total insurance and investment premiums of £7.4bn were also up  61%
over 1998. This increase predominantly reflects the continued strong growth 
of the IFA channel, which was up 76% to £5.4bn.  The IFA channel now accounts 
for almost three quarters of Prudential's UK insurance and investment sales.  
Sales by M&G for the eight months since acquisition totalled £583m, an
increase of 20% over the equivalent prior year period.

Overseas, Jackson National Life sales continued their strong growth up  43% 
on prior year at £4.1bn.  Within this result, variable annuity sales were more
than double 1998 volumes at £1.2bn.

In  Asia,  new  business  premiums  were more  than  four  times  1998 
volumes.  Insurance  sales  have more than doubled to £288m, while mutual 
fund  sales  in India were £583m, compared to the seven months' sales of £72m
in 1998.

UK  banking operations continue to perform strongly, with £8.1bn of deposits 
at year  end  and an asset book of over £2.0bn.  egg now has in excess  of 
800,000 customers and has accepted in excess of 175,000 credit card accounts
in the four months since launch.

Deputy group chief executive Jonathan Bloomer commented:

'Prudential's new business figures represent another very strong performance
with a record  £18bn  inflow of funds.  This provides  further confirmation of
the success of our strategy of broadening distribution reach and increasing
product choice across all of our businesses.

In the US, variable annuity sales were more than double 1998's level and in
Asia sales have quadrupled, representing significant progress in both these
markets.

I am particularly pleased by the progress in integrating M&G with our existing
fund management operations, and egg continues to show excellent growth.  The
response to our new egg card has been tremendous  and we continue to acquire
new customers at an impressive rate.'


UK OPERATIONS

IFA Businesses

In  the twelve months to December 1999, IFA insurance and investment sales 
were up  76%  to £5.4bn.  This reflects the continued strong sales of Prudence
Bond,totalling £1.9bn compared with £1.2bn in 1998, and the inclusion of eight
months of M&G's IFA sales.  In addition, the impact of two major bulk
annuities sold by Prudential Annuities in July, added £1.1bn to the result.
IFA sales now  account for almost three quarters of UK insurance and
investment sales (1998: 66%).

 
M&G

M&G sales (IFA and direct) for the eight months to December 1999 were £583m, 
up 20%  on  the same period in 1998.  Total funds under management stood at
£20.4bn up from £18.5bn twelve months ago.  M&G's corporate bond funds were
particularly successful, attracting new funds of £347m.

Prudential Retail

Consultant  productivity  continues  to  improve  at  Prudential  Retail  
where insurance and investment sales have grown by 16% over 1998 to £1.8bn. 
Over  the same  period,  sales force headcount has been reduced by over 40% to
 less  than 1,900.  1999 has seen a shift away from our traditional regular
premium  pension products, with strong growth in single premium investment
bonds.

Mortgage  sales  also  continue to perform strongly,  with  a  net  increase 
in Prudential branded mortgage business of £600m in 1999.

egg and Prudential Banking

egg continues to launch new products and expand its customer services.  During
1999 egg launched the egg card and internet shopping zone as well as offering
internet only savings accounts and on-line mortgage and loan application
facilities.
                                                                              
 
JACKSON NATIONAL LIFE

Total  insurance  and investment sales were 43% ahead of 1998  at  £4.1bn, 
with variable  annuities  more  than  double the  prior  year  at  £1.2bn 
reflecting Jackson's successful marketing strategies, new product development
and  the  on-going strength of the US equity market.
                                                                              
 
Fixed annuities are 23% ahead of prior year at £826m, after a slow start to 
the year, benefiting from the recent increases in US interest rates.  Fourth
quarter fixed annuity sales of £257m were more than double that in the
equivalent period last year.

ASIA

Total  insurance and investment sales in Asia have more than quadrupled
compared to the corresponding period in 1998.

Total insurance sales more than doubled to £288m due, in part, to the
continuing strong  performance of the PruInvestor Bond and the PruLink HiSaver
Account in Singapore.

Mutual fund sales in India reached £583m for the year. Gross redemptions in 
the quarter totalled £38m bringing redemptions for the year to £272m,
reflecting the liquid nature of the money market funds.

Enquiries
Jeremy Reynolds/Kevin Russell
Prudential Media Relations                                           
Tel: [phone]

David Doyle
Investor Relations
Tel: [phone]


PRUDENTIAL PLC - 1999 NEW BUSINESS PREMIUMS - FULL YEAR

                 Single                Regular              Total
             1999   1998  +/-(%)   1999   1998  +/-(%)   1999    1998  +/-(%)
             £m     £m             £m     £m             £m      £m


UK Operations

IFA Channel:
Individual
Pensions      218     216    1%    50     42     19%       268      258    4%
Corporate
Pensions      593     434   37%    95     53     79%       688      487   41%
Life        2,084   1,434   45%    75     74      1%     2,159    1,508   43%
Annuities   1,805     699  158%     -      -      0%     1,805      699  158%
Investment
Products      372      54  589%     5      -      0%       377       54  598%

Sub-Total   5,072   2,837   79%   225    169     33%     5,297    3,006   76%
DSS
Rebates        64      33   94%     -      -      0%        64       33   94%

Total       5,136   2,870   79%   225    169     33%     5,361    3,039   76%
(Schedule 2)


M&G (Direct):
Investment
Products      200       -    0%     8      -      0%      208         -    0%

Total         200       -    0%     8      -      0%      208         -    0%



Prudential Retail:
Individual
Pensions       35      41  (15%)   51     75     (32%)      86     116  (26%)
Corporate
Pensions        4       3   33%    39     47     (17%)      43      50  (14%)
Life          883     608   45%    49     55     (11%)     932     663    41%
Annuities     534     462   16%     -      -        0%     534     462    16%
Investment
Products       40      81  (51%)    7     15     (53%)      47      96  (51%)

Sub-Total 1,496   1,195    25%    146     192    (24%)   1,642   1,387    18%
DSS
Rebates     175     175     0%      -       -      0%      175     175     0%

Total     1,671   1,370    22%    146     192    (24%)   1,817   1,562    16%




Total UK Operations:
Individual
Pensions     253    257    (2%)   101     117    (14%)     354     374   (5%)
Corporate
Pensions     597    437     37%   134     100      34%     731     537    36%
Life       2,967  2,042     45%   124     129     (4%)   3,091   2,171    42%
Annuities  2,339  1,161    101%     -       -       0%   2,339   1,161   101%
Investment
Products     612    135    353%    20      15      33%     632     150   321%
Sub-Total  6,768  4,032     68%   379     361       5%   7,147   4,393    63%
DSS Rebates  239    208     15%     -       -       0%     239     208    15%
Total UK
Operations 7,007  4,240     65%   379     361       5%   7,386   4,601    61%


Jackson National Life:
Fixed
Annuities    826     670    23%     -       -       0%     826     670    23%
Equity
Linked
Index
Annuities    431     283    52%     -       -       0%     431     283    52%
Variable
Annuities  1,187     531   124%     -       -       0%   1,187     531   124%
Guaranteed
Investment
Contracts    994   1,351   (26%)    -       -       0%     994   1,351  (26%)
GIC -
European
Medium Term
Note         624       -     0%     -       -        0%    624       -     0%
Life           -       -     0%    24      28      (14%)    24      28  (14%)
Sub-Total  4,062   2,835    43%    24      28      (14%) 4,086   2,863    43%


Prudential Asia:
Insurance
Products     182      42   333%   106      79       34%   288      121   138%
Investment
Products     583      72   710%     -       -        0%   583       72   710%
Sub-Total    765     114   571%   106      79       34%   871      193   351%

Group Total:
Insurance
Products  10,639   6,982    52%   489     453       8% 11,128    7,435    50%
Investment
Products   1,195     207   477%    20      15      33%  1,215      222   447%
Group
Total     11,834   7,189    65%   509     468       9% 12,343    7,657    61%




                                 1999    1998
                                 £m      £m
 UK Banking Products
 Funds Under Management:
 Prudential Banking               577     856
 egg                            7,565   1,332
                                --------------
 Total                          8,142   2,188
--------------

 Asset Book:
 Prudential Banking             1,255     664
 egg                              802      11
                                -------------
 Total                          2,057     675
                                -------------


General Insurance
UK Gross
Premiums Written                  318     310



SCHEDULE 2


                 Single                Regular              Total
             1999   1998  +/-(%)   1999   1998  +/-(%)   1999    1998  +/-(%)
             £m     £m             £m     £m             £m      £m



UK Operations
Retail IFA:
Individual
Pensions     179    216     (17%)  48     42       14%   227     258    (12%)
Corporate
Pensions     110     45      144%  14     16      (13%)  124      61     103%
Life       2,076  1,434       45%  74     74        0% 2,150   1,508      43%
Annuities    118     93       27%   -      -        0%   118      93      27%
Investment
Products      49     54      (9%)   3      -        0%    52      54     (4%)


Sub-Total  2,532  1,842       37% 139    132        5% 2,671   1,974      35%
DSS Rebates   64     33       94%   -      -        0%    64      33      94%
Total      2,596  1,875       38% 139    132        5% 2,735   2,007      36%



Prudential Group Pensions:
Corporate
Pensions    483     389       24%   81     37      119%  564      426     32%
Annuities   147     155      (5%)    -      -        0%  147      155    (5%)
Total       630     544       16%   81     37      119%  711      581     22%

Prudential Annuities:
Annuities 1,540     451      241%    -     -         0%1,540      451    241%



M&G IFA:
Individual
Pensions     39      -          0%   2     -          0%   41      -       0%
Life          8      -          0%   1     -          0%    9      -       0%
Investment
Products    323      -          0%   2     -          0%  325      -       0%
Total       370      -          0%   5     -          0%  375      -       0%

Total IFA
Channel:  5,136  2,870         79% 225   169         33%5,361    3,039    76%


M&G Summary (IFA + Direct):
Individual
Pensions    39      -          0%    2     -          0%  41       -       0%
Life         8      -          0%    1     -          0%   9       -       0%
Investment
Products   523      -          0%   10     -          0% 533       -       0%
Total      570      -          0%   13     -          0% 583       -       0%




Notes to Schedules:
1. The table above analyses UK IFA channel sales by business unit and provides
a summary of the M&G new business premiums for the eight month period from
acquisition to 31 December.

2. The figures for overseas operations have been calculated using average
exchange rates.  The applicable rate for Jackson National Life is 1.62
(December 1998 - 1.66).  After adjusting for the impact of foreign currency
movements, the Group's single premium sales increased by 63%, and regular
premium sales increased by 8%.

3. The 1998 figures exclude the results of the Australian and New Zealand
operations that were sold in that year.