1st Qtr New Business Rslts

Prudential PLC
20 April 2001


Embargo: 07.00 hrs, Friday 20 April 2001



PRUDENTIAL PLC FIRST QUARTER 2001 NEW BUSINESS RESULTS

  * Record Group total insurance and investment sales of £5.0 billion, up 29
    per cent on prior year. On an annual premium equivalent (APE) basis, sales
    were £642 million, up 29 per cent.

  * UK insurance operations sales of £226 million, an increase on first
    quarter 2000 of 10 per cent on APE basis.

  * Egg customer numbers reach 1.57 million. Credit card balances grow to £
    1.3 billion, up 36 per cent on year end 2000.

  * Fixed Annuities sales grow by 35 per cent in the United States, but
    sales of equity-based products decline reflecting adverse market
    conditions.

  * Asia insurance sales total £373 million, up 285 per cent on first
    quarter 2000, and investment sales at £1.6 billion, 264 per cent up on
    first quarter 2000.

Jonathan Bloomer, group chief executive, Prudential plc, commented:

'First quarter 2001 sales have reached £5 billion for the first time, an
impressive group performance. Our strategy to grow internationally, broaden
our distribution reach and diversify our product range has been a key factor
in this achievement.

'We saw continuing strong growth in Asia, in both our existing and new
operations. Our UK insurance operations delivered a 10 per cent increase in
sales, driven by strong growth in corporate pensions and annuities. The
benefits of our policy of product diversification are particularly apparent in
the US, where the strong growth in fixed annuities partially offset the
industry-wide decline in the sale of equity-backed products.'

UNITED KINGDOM

UK Insurance Operations
The UK insurance operations have delivered sales of £226 million, 10 per cent
higher than the same period last year, on an APE basis.

Intermediated Sales
APE sales via intermediary channels (ie through Independent Financial
Advisers, Consulting Actuaries and Appointed Representatives), in the first
quarter were £109 million, 14 per cent above prior year.

The positive first quarter results are due in particular to sales of annuities
and individual pensions. £25 million (APE) of annuities were sold via the
intermediary channel, 108 per cent up on first quarter 2000, and sales of
individual pensions products are 67 per cent above prior year at £20 million,
largely as a result of the successful launch of the Premier Group Personal
Pension Product.

Within annuity sales, total bulk annuity sales accounted for £144 million, in
the first quarter 2001, a significant improvement on the prior year level of £
20 million. These bulk annuity sales were written by the shareholder-backed
entity Prudential Retirement Income Limited (PRIL).

Life sales through intermediaries, of £48 million (APE) in the first quarter
2001, were 16 per cent lower than the first quarter 2000. This reflects
reduced sales of house purchase endowment policies, down 50 per cent on first
quarter last year at £3.5 million, and reduced sales of Prudence Bond, down 21
per cent on prior year at £33.7 million.

Prudential will announce separately today that, due to the shift within the
marketplace towards repayment mortgages over the past two years, and the
consequent significant fall in demand for endowment products, Scottish
Amicable will withdraw from the mortgage endowment sales market.

Direct Sales
APE sales by direct channels, including the direct sales force, work site
marketing and remote channels, for first quarter 2001 were £117 million, 5 per
cent above prior year.

Sales of corporate pensions were £54 million, 42 per cent ahead of first
quarter 2000. This increase is predominantly due to the new corporate pensions
mandates won by Prudential and reflects the quality of our pensions
administration platform.

Annuity sales via direct channels were £16 million, in line with first quarter
2000.

We are well positioned in the stakeholder market. Our schemes were open for
business at launch on 6 April 2001, in addition to the two own-branded
affinity schemes that we developed for the Trades Union Congress and the
British Chambers of Commerce.

M&G
M&G achieved total investment sales of £249 million in the first quarter 2001
and increased its ISA market share, particularly in the IFA channel.

Total investment sales of £249 million were 18 per cent down on sales of £303
million last year, reflecting an industry-wide decline in ISA sales from the
exceptional levels achieved in the first quarter of 2000. M&G's ISA sales
reduced by 25 per cent, which compared well with the broader market.

Net sales for each month were well above levels achieved last year, reflecting
falling redemptions.

Due to its strong product offering, M&G continues to be the market leader in
fixed interest products and has achieved growing recognition of the strong
performance of its equity funds over the past year.

EGG
In the first quarter 2001, Egg's customer base reached 1.57 million from the
previous quarter of 1.35 million. Credit cards continue to deliver the
majority of the growth, with quarter end balances of £1.26 billion, up £330
million since the year end.

Egg personal loans have grown by 14% since the year end to a quarter end
balance of £485 million. Overall mortgage balances grew 3% net in the quarter,
with steady growth from the Egg branded portfolio, which saw sales of £90
million in the period.

Egg continues to see some shift in the profile of its deposit account base.
There was a net increase of 7,000 in customer numbers in the quarter, albeit
with smaller average balances, leading to an overall decrease in deposit
balances of £394 million in the Egg book, which reflects seasonality plus the
repricing of the book in February.

Egg Invest, its fund supermarket, doubled its customer base to almost 22,000
customers at 31 March 2001, and had £65 million of funds under administration
at quarter end.

EUROPE
Prudential Europe made a positive start to the year with total sales of £15
million, 7 per cent higher than in the first quarter 2000.

In France, sales of Prudential Europe Vie, an innovative equity-backed single
premium savings product, launched on 18 January 2001, have reached £7 million.
This is being marketed through Centre Francais du Patrimoine, the largest
multi-product broking network in France. Sales are now running at around £1
million each week, with the with-profit option being chosen for 90 per cent of
invested funds.

UNITED STATES
The volatility of the equity markets in the United States has affected sales
at Jackson National Life. New insurance premiums at Jackson were down 20 per
cent from last year at £1.2 billion. This decrease is attributable to
significant market corrections experienced in US equity markets in recent
months. This correction has had a universal adverse impact on the sales of
equity-based products throughout the US.

Against this background, however, Jackson achieved a 35 per cent growth in
sales of individual fixed annuities, reflecting its strength in distribution,
its ability to offer high-quality, competitive products, its diversified
product portfolio, and its reputation for industry-leading client service.

Persistency numbers have continued to improve. Recent turmoil in equity
markets combined with an aggressive business-retention programme have
contributed to a dramatic fall in the number of surrenders of fixed annuity
policies, which are now running well within our assumptions.

Sales of Stable Value products were strong during the quarter at £565 million.
Although sales are down from 2000 levels, the decrease is primarily a function
of the timing of the 2000 sales, with almost 40 per cent of total sales having
occurred during the first quarter of 2000.

The sharp drop in equity prices during recent months has translated into a
slowdown in the flow of funds into equity based products across the industry.
Within Jackson, variable annuity sales of £239 million were 51 per cent lower
than 2000, and sales of equity linked annuities were down 45 per cent to £72
million. Given the extremely favourable demographic trends in the US, we
expect long-term sales of equity products to return to previous levels and
continue to grow.

ASIA
Total insurance and investment sales in Asia of £2.0 billion have increased by
267 per cent on the first quarter 2000, with a strong performance from all
operations. Insurance sales continued to grow strongly, increasing by 285 per
cent to £373 million.

Total funds under management in the Asian mutual fund business grew strongly,
exceeding £1.9 billion as at 31 March 2001, compared to £0.6 billion at the
end of first quarter 2000, and £1.6 billion as at 31 December 2000.

Regular premium insurance sales increased by 86 per cent and single premium
insurance sales were more than five times higher than first quarter 2000. APE
sales grew strongly by 131 per cent. Significant growth in Taiwan and Hong
Kong reflects our strength in building and managing high quality agency
forces. Sales for the quarter also include new business from Japan written in
the period since our Japanese acquisition on 13 February 2001. These results
include exceptional single premium sales in Singapore (more than five times
higher than first quarter 2000), resulting from recent further liberalisation
of the Central Provident Fund, which are at lower margins and are not expected
to recur.

In April 2001 we became the first international company operating in China to
receive approval from the regulatory authorities to market unit-linked
products.

Gross investment sales in India, Taiwan and Japan amounted to almost £1.6
billion, an increase of 258 per cent on first quarter 2000, reflecting
particularly strong sales in Taiwan. Core Pacific Investment Trust Enterprise
in Taiwan was acquired by Prudential in October 2000. Net mutual fund inflows
in first quarter 2001 were £136 million.

During first quarter 2001 our joint venture with Bank of China in Hong Kong
received £68 million of contributions in respect of the Mandatory Provident
Fund launched in December last year. We recorded £25 million of sales
reflecting our 36 per cent interest in the joint venture.

                                                                     /Ends ...

Enquiries:
Media:                              Analysts:
Geraldine Davies                    Rebecca Burrows
020 7548 3911                       020 7548 3537

Tina Christou                       Andrew Crossley
020 7548 3719                       020 7548 3166

Steve Colton
020 7548 3721

Notes to Editors:
1.  Annual premium equivalent sales comprise regular premium sales plus one
    tenth of single premium sales.


2.  Financial Calendar for 2001:

    Annual General Meeting - 10 May 2001

    Payment of Final Dividend - 30 May 2001

    Interim Results: Includes Quarter 2 2001 New Business Results - 26 July
    2001

    Quarter 3 New Business Results - 18 October 2001





                                                                                
                                                             Schedule 1
              PRUDENTIAL PLC - 2001 NEW BUSINESS PREMIUMS - QUARTER 1 2001
                                 VERSUS QUARTER 1 2000
           Single Premiums    Regular Premiums  Total Premiums      APE
            2001   2000  +/-  2001 2000  +/-    2001  2000 +/-  2001  2000  +/-
                         (%)             (%)               (%)               (%)
              £m     £m         £m   £m           £m    £m        £m   £m
Direct:
Individual     9     10 (10%)    8   11 (27%)     17    21 (19%)    9   12 (25%)
Pensions
Corporate    179    177   1%    36   21  71%     215   198   9%    54   38  42%
Pensions
Life         114    145 (21%)    5    9 (44%)    119   154 (23%)   16   24 (33%)
Annuities    162    157   3%     -    -     -    162   157   3%    16   16   0%
Investment     8     12 (33%)    3    2   50%     11    14 (21%)    4    3  33%
Products
Sub-Total    472    501  (6%)   52   43   21%    524   544  (4%)   99   93   6%
DSS Rebates  175    175   0%     -    -    -     175   175   0%    18   18   0%
Total        647    676  (4%)   52   43   21%    699   719  (3%)  117  111   5%
(Schedule 2)
Intermediated:
Individual    54     44  23%    15    8   88%     69    52  33%    20   12  67%
Pensions
Corporate     17     35 (51%)    4    4    0%     21    39 (46%)    6    8 (25%)
Pensions
Life         403    470 (14%)    8   10  (20%)   411   480 (14%)   48   57 (16%)
Annuities    254    121 110%     -    -    -     254   121 110%    25   12 108%
Investment    27      6 350%     1    1    0%     28     7 300%     4    2 100%
Products
Sub-Total    755    676  12%    28   23   22%    783   699  12%   103   91  13%
DSS Rebates   55     51   8%     -    -    -      55    51   8%     6    5  20%
Total        810    727   11%   28   23   22%    838   750  12%   109   96  14%
(Schedule 2)
Total UK
Insurance
Operations:
Individual    63     54   17%   23   19   21%     86    73  18%    29   24  21%
Pensions
Corporate    196    212   (8%)  40   25   60%    236   237  (0%)   60   46  30%
Pensions
Life         517    615  (16%)  13   19  (32%)   530   634 (16%)   65   81 (20%)
Annuities    416    278   50%    -    -    -     416   278  50%    41   28  46%
Investment    35     18   94%    4    3   33%     39    21  86%     8    5  60%
Products
Sub-Total  1,227  1,177    4%   80   66   21%  1,307 1,243   5%   203  184  10%
DSS Rebates  230    226    2%    -    -    -     230   226   2%    23   22   5%
Total UK   1,457  1,403    4%   80   66   21%  1,537 1,469   5%   226  206  10%
Insurance
Operations
M&G:
Individual     -     13    0%    -    1    0%      -     14   0%    -    2   0%
Pensions
Investment   246    299  (18%)   3    4  (25%)   249    303 (18%)  28   34 (18%)
Products
Total        246    312  (21%)   3    5  (40%)   249    317 (21%)  28   36 (22%)

Total UK   1,703  1,715   (1%)  83   71   17%  1,786  1,786   0%  253  243   4%
Operations
European
Operations:
Insurance     11      6   83%    4    8  (50%)    15     14   7%    5    9 (44%)
Products
Sub-Total     11      6   83%    4    8  (50%)    15     14   7%    5    9 (44%)
US Operations:
Fixed        348    257   35%    -    -    -     348    257  35%   35   26  35%
Annuities
Equity Linked 72    130  (45%)   -    -    -      72    130 (45%)   7   13 (46%)
Index
Annuities
Variable     239    484  (51%)   -    -    -     239    484 (51%)  24   48 (50%)
Annuities
Total        659    871  (24%)   -    -    -     659    871 (24%)  66   87 (24%)
Annuities
Guaranteed   154     48  221%    -    -    -     154     48 221%   15    5 200%
Investment
Contracts
GIC 
- European   411    611  (33%)   -    -    -     411   611  (33%)  41   61 (33%)
Medium Term
Note
Life           -      -    -     5    6  (17%)     5     6  (17%)   5    6 (17%)
Sub-Total  1,224  1,530  (20%)   5    6  (17%) 1,229 1,536  (20%) 127  159 (20%)
Asian
Operations:
Insurance    306     61  402%   67   36   86%    373    97  285%   97   42 131%
Products
Investment 1,582    435  264%    -    -    -   1,582   435  264%  159   44 261%
Products
Sub-Total  1,888    496  281%   67   36   86%  1,955   532  267%  256   86 198%
Group Total:
Insurance  2,953  2,991   (1%) 151  112   35%  3,104 3,103    0%  446  411   9%
Products
Investment 1,873    756  148%    8    9  (11%) 1,881   765  146%  196   85 131%
Products
Group 
Total      4,826  3,747   29%  159  121   31%  4,985 3,868   29%  642  496  29%

                                Q4
            2001   2000       2000  
                                              
              £m     £m         £m
UK Banking
Products
Egg        6,322  7,337  (14%) 6,715
Prudential   378    504  (25%)   412
Banking
Total 
Deposit    6,700  7,841  (15%) 7,127
Liabilities
Mortgage 
Book       2,472  1,825   35%  2,406
Personal 
Loans        502    257   95%    445
Book
Credit 
Card       1,259    464  171%    929
Receivables
Investment    65      5 1200%     42
Supermarket
FUM
Total 
Retail     4,298  2,551   68%  3,822
Assets
US Banking
Products


Total 
Deposit      519    171  204%
Liabilities
Retail 
Assets       676    165  310%
General
Insurance
UK Gross      91     79   15%                                   
Premiums
Written

                                           Schedule 2: Supplementary Information
           Single Premiums    Regular Premiums  Total Premiums      APE
            2001   2000  +/-  2001 2000  +/-    2001  2000 +/-  2001  2000  +/-
                         (%)             (%)               (%)               (%)
              £m     £m         £m   £m           £m    £m        £m   £m

UK Operations
Prudential
Financial
Services
Retail:
Individual     9     10  (10%)   8    11 (27%)    17    21 (19%)    9   12 (25%)
Pensions
Corporate      -      1    0%    -     6   0%      -     7   0%     -    6   0%
Pensions
Life         114    145  (21%)   5     9 (44%)   119   154 (23%)   16   24 (33%)
Annuities    128    123    4%    -     -   -     128   123   4%    13   12   8%
Investment     8     12  (33%)   3     2  50%     11    14 (21%)    4    3  33%
Products
Sub-Total    259    291  (11%)  16    28 (43%)   275   319 (14%)   42   57 (26%)
DSS Rebates  175    175    0%    -     -   -     175   175   0%    18   18   0%
Total        434    466   (7%)  16    28 (43%)   450   494  (9%)   60   75 (20%)
Group
Pensions:
Corporate    179    176    2%   36    15 140%    215   191  13%    54   33  64%
Pensions
Annuities     34     34    0%    -     -   -      34    34   0%     3    3   0%
Total        213    210    1%   36    15 140%    249   225  11%    57   36  58%
Total        647    676   (4%)  52    43  21%    699   719  (3%)  117  111   5%
Financial
Services
Prudential
Intermediated
Businesses
Retail IFA:
Individual    54     44   23%   15     8  88%     69    52  33%    20   12  67%
Pensions
Corporate     17     35  (51%)   4     4   0%     21    39 (46%)    6    8 (25%)
Pensions
Life         403    470  (14%)   8    10 (20%)   411   480 (14%)   48   57 (16%)
Annuities     31     32   (3%)   -     -   -      31    32  (3%)    3    3   0%
Investment    27      6  350%    1     1   0%     28     7 300%     4    2 100%
Products
Sub-Total    532    587   (9%)  28    23  22%    560   610  (8%)   81   82 (1%)
DSS Rebates   55     51    8%    -     -   -      55    51   8%     6    5  20%
Total        587    638   (8%)  28    23  22%    615   661  (7%)   87   87   0%
Annuities:
Annuities    223     89   151%   -     -   -     223    89 151%    22    9 144%
Total        810    727    11%  28    23  22%    838   750  12%   109   96  14%
Intermediated
Businesses
Asian
Operations:
Insurance
Products:
Singapore    284     53   436%   7     7   0%    291    60 385%    35   12 192%
Hong Kong     13      3   333%  13     7  86%     26    10 160%    14    8  75%
Malaysia       2      4   (50%)  7     5  40%      9     9   0%     7    5  40%
Taiwan         0      -     -   24    13  85%     24    13  85%    24   13  85%
Japan          5      -     -    6     -   -      11     -   -      7    -    -
Other          2      1   100%  10     4 150%     12     5 140%    10    4 150%
Total        306     61   402%  67    36  86%    373    97 285%    97   42 131%
Investment
Products:
    
India        435    435     0%   -     -   -     435   435   0%    44   44   0%



Taiwan     1,120      -     -    -     -   -   1,120     -   -    112    -    -



Other          2      -     -    -     -   -        2    -   -      0    -    -


Total 
Gross      1,557   435    258%   -     -   -   1,557  435  258%   156   44  255%
Mutual Fund
Sales

Hong 
Kong MPF      25     -      -    -     -   -      25    -    -      3    -    0%
Products
Total      1,582   435    264%   -     -   -   1,582  435  264%   159   44  261%

Total 
Asian      1,888   496    281%  67    36  86%  1,955  532  267%   256   86  198%
Operations
Asia Mutual
Funds
Net Mutual
Fund Sales:
India        ( 3)  195      -
Taiwan       140     -      -
Other        ( 1)    -      -
Total Net    136   195    (30%)
Mutual Fund
Sales
Funds Under
Management:
           India Taiwan Other Total
Opening      695   934    20 1,649
Balance of FUM
(31/12/00)
Net Flows    ( 3)  140   ( 1)  136
Market        17   114   ( 2)  129
Movement
Closing      709 1,188    17 1,914
Balance of FUM
(31/03/01)

Notes to Schedules:

1. Sales for overseas operations have been calculated using average exchange
rates. The applicable rate for Jackson National Life is 1.46 (March 2000 -
1.61). Balance sheet figures have been calculated using closing exchange rates.

2. In Asia, 'Other' Insurance Products include Thailand, Indonesia, The
Philippines, Vietnam, India (26% interest) and China .

3. Insurance sales for Japan are included from 13 February 2001, the date of
acquisition of Orico Life Insurance Company Limited .

4. Mandatory Provident Fund product sales in Hong Kong are included at
Prudential's 36% interest of the Hong Kong MPF operation.

5. APE subject to rounding differences.