1st Quarter Results

Prudential PLC 19 April 2007 Embargo: 07.00am Thursday 19 April 2007 PRUDENTIAL PLC FIRST QUARTER 2007 NEW BUSINESS RESULTS All figures compared to 2006 at constant exchange rates unless stated APE Growth PVNBP Growth Total Group Insurance £640 million 8% £4,775 million 1% Total Group Retail Insurance £592 million 25% £4,295 million 22% UK retail £181 million 16% £1,508 million 13% Total UK £183 million (23)% £1,521 million (29)% US £180 million 21% £1,796 million 21% Asia £277 million 34% £1,458 million 33% Asia Fund Management Net fund inflows of £0.6 billion, up 18% External funds under management of £12.8 billion M&G Net fund inflows of £1.4 billion, down 22% External funds under management of £46.1 billion Mark Tucker, Group Chief Executive said: 'I am delighted by the excellent start the Group has made to the year, building on the strong momentum established in 2005 and 2006. 'We have continued to pursue our growth and value agenda and worldwide retail new business APE increased by 25% to £592 million over the same quarter last year with strong performances in all regions. 'In our asset management businesses M&G had net fund inflows of £1.4bn, the second highest quarter on record, and in Asia we had a record start to the year with net inflows of £0.6 billion ahead 18%. 'We continue to see excellent prospects across the Group and we will pursue these opportunities aggressively with a clear focus on value creation.' Commentary on First Quarter 2007 New Business Results UK insurance operations Prudential's focus in the UK continues to be on those areas of its retail and wholesale business which can generate attractive returns. Overall retail APE sales were up 16 per cent year-on-year to £181 million driven by growth in individual annuities, with-profits bonds and corporate pensions. Within its wholesale business, in the first quarter Prudential announced that it had reached agreement in principle to acquire Equitable Life's portfolio of in-force with-profits annuities. The transaction is expected to generate premium income of approximately £180 million on an APE basis and will be recognised once it completes, which is expected to be in the fourth quarter of 2007. Total UK APE sales in the first quarter were £183 million, a decrease of 23 per cent on the same period last year. However, the first quarter of 2006 included a single bulk annuity of APE £66 million and £15 million of credit life sales under a contract with Lloyds TSB that has not been renewed for 2007. On a PVNBP basis, total UK sales for the first quarter of 2007 were £1.5 billion, compared with £2.1 billion in the same period last year. Retail Retirement APE sales of £125 million increased 29 per cent on 2006, reflecting strong growth in individual annuities, corporate pensions, equity release and with-profit bonds. Individual annuity sales for the first quarter of 2007 were up 35 per cent on the first quarter of 2006 to £66 million. This growth was driven by the continued strength of internal vestings, up 32 per cent to £33 million, together with increased partnership sales, up 110 per cent to £21 million which reflected the growing momentum of partnership deals, including Openwork and St James's Place Capital. In the first quarter of 2007, sales of with-profit annuities increased by 43 per cent over the same period last year due to continuing strong demand and sales from the recently signed single-tie arrangement with Openwork. Prudential enhanced its with-profits annuity offering in February 2007, adding the facility to accept Protected Rights monies (those contracted out of the State Earnings Related Pension Scheme which was replaced by the second state pension), which is a first in the with-profits annuity market and allows customers to combine 100 per cent of their pension into a with-profits annuity. Corporate pensions delivered strong sales during the first quarter with APE of £27 million, up 170 per cent on the same period in 2006. These results include strong sales in the new Fund Delivery Service proposition, which contributed over £10 million in new APE sales. Currently an estimated £1.1 billion of property assets enter the equity release market each year and this is predicted to grow to £2 billion by the end of 2008. From a standing start in October 2005 the UK business now has over £120 million of mortgage assets. New loans advances for the first quarter of 2007 were £34 million, compared with £9 million for the first quarter last year. With-profits bond sales continued the momentum shown throughout last year, with sales of £6 million in the first quarter of 2007 double the first quarter of 2006. This was driven by the continued strong investment returns generated from the life fund. Prudential also signed a single tie distribution agreement in the first quarter with Openwork for PruFund, Prudential's unitised and smoothed investment plan. Offshore bond sales generated from Europe grew 66 per cent to £9 million during the first quarter, reflecting the continued appetite in Continental Europe for Prudential's with-profits bond, and its strengthened distribution. This was offset by lower offshore sales into the UK through intermediaries, which reduced by 27 per cent to £5 million reflecting Prudential's emphasis on value, not volume in this market. Prudential also recently launched two multi-asset funds using the with-profits investment capability into the Collectives market and within offshore bonds. Prudential launched its Flexible Protection Plan nationally in February 2007. The product has been introduced to over 2000 advisers and Prudential has secured panel placements with a number of firms who account for a significant proportion of the intermediary distribution landscape in the UK. Prudential withdrew from the commoditised protection market in the first quarter of 2007. PruHealth's business is not included in total APE sales numbers. It continued to grow strongly in the first quarter of 2007 with Gross Written Premiums of £16 million, 100 per cent up on the £8 million achieved in the same period last year. For the first time the number of lives covered exceeded 100,000 in February, with 108,000 lives covered at the end of the quarter. PruHealth has entered into an exclusive arrangement with Boots the Chemist to promote PMI as part of its Health Club launch from 25th April. PruHealth has also launched new Trust and Self-Insured scheme products from April to strengthen its position in the Corporate market. Within the Mature Life and Pensions business total APE sales of £56 million were 5 per cent lower than for the first quarter of 2006 reflecting lower DWP rebates business, down 19 per cent. Prudential's progress in this quarter is consistent with the strategy outlined on 15th March and continues the strong retail growth seen in 2006. Prudential UK will continue to focus on profitable opportunities which deliver capital efficient returns in its chosen product areas and distribution channels. US insurance operations Jackson, Prudential's US insurance business, delivered APE sales of £180 million in the first three months of 2007, representing a 21 per cent increase over the same period in 2006, driven by continued growth in sales of variable annuities. On a PVNBP basis, new business sales were £1.8 billion. Retail APE sales of £134 million were up 23 per cent. Jackson delivered record variable annuity sales of £1.1 billion in the first quarter of 2007, up 31 per cent on the corresponding period last year. For the full year 2006, Jackson increased its variable annuity market share to 4.6 per cent, up from 3.6 per cent for full year 2005, and maintained its ranking as the 12th leading variable annuity provider during the full year 2006. This impressive growth trend in variable annuity sales continued in the first quarter of 2007, driven by Jackson's distinct competitive advantages of an innovative product offering, an efficient and flexible technology platform, a relationship-driven distribution model and award winning customer service. In particular, Jackson's distribution model successfully supports the ability of Jackson's wholesalers to use a sophisticated sales process in order to forge productive, long-term relationships with advisers. Fixed annuity APE sales of £13 million were in line with sales in the same period of 2006 at CER. Entry spreads for fixed annuities continued to be challenging in the first quarter of 2007 as the current interest rate environment, characterised by an inverted yield curve, limits the crediting rates that can be offered on the products and therefore diminishes their attractiveness to customers. Fixed index annuity sales continued to be affected by the uncertain regulatory environment in the US. APE sales of £11 million were 8 per cent down on the same period in 2006. Institutional APE sales of £47 million were up 15 per cent on the same period in 2006, as Jackson continues to participate in this market on an opportunistic basis. In the first quarter of 2007, Jackson continued its track record of product innovation by launching a new line of retail mutual funds and a simplified variable annuity, and by adding new fund options and features to its existing variable annuity offering. Curian Capital, a specialised asset management company that provides innovative fee-based separately managed accounts, continues to build its position in the US retail asset management market with total assets under management at the end of March 2007 of £1.4 billion ($2.7 billion) compared with £1.2 billion at CER ($2.4 billion) at the end of December 2006. Curian generated record deposits in the first quarter of 2007 of £150 million, up 38 per cent on the same period in 2006. Jackson has made a strong start to the year, focusing on value-driven growth in its key product offering and it continues to be well positioned to take advantage of the growing opportunities in the US retirement market. Asia insurance operations Prudential's Asian life operations delivered new business APE of £277 million representing growth of 34 per cent over the first quarter 2006 and reflecting the excellent momentum of the business. On the PVNBP basis sales for first quarter 2007 of £1.5 billion are 33 per cent higher than the same period last year. Prudential's focus continues to be investing to strengthen and diversify its Asian platform to maximise shareholder returns from the existing business and explore new profitable growth opportunities. Agency growth and productivity improvements remain core drivers with agent numbers at 31 March 2007 of 335,000. This was driven primarily by India up 214 per cent on the same quarter last year, together with China and Indonesia up 43 per cent and 20 per cent respectively. As our bank and broker distribution channels continue to strengthen, the proportion of new business from traditional agency distribution was 67 per cent compared to 71 per cent last year. Unit-linked business represented 67 per cent of new business for the quarter. In China, CITIC Prudential is now operating in 16 cities with APE sales of £12 million, an increase of 100 per cent compared to the first quarter of 2006. Guangzhou, Beijing and Shanghai account for 60 per cent of the first quarter APE. Prudential's joint venture with ICICI in India continued to perform very strongly during the first quarter, the final quarter of the Indian fiscal year, and traditionally the busiest time of year. First quarter APE of £57 million was an increase of 90 per cent on the same quarter in 2006. The operation continues to lead the private sector by a clear margin and as announced recently by ICICI, its shareholding will be transferred to an ICICI holding company with a view to an IPO. This will not affect the operation of the business or Prudential's 26 per cent stake. Prudential's life business in Indonesia continues to go from strength to strength with APE sales of £22 million, 69 per cent up on the same period last year, driven by increased agent numbers. This business is predominantly unit-linked. Work is progressing with Citibank on establishing bancassurance distribution in Indonesia. In Hong Kong, Prudential continues to make excellent progress through both agency distribution and bancassurance with Standard Chartered Bank. New business APE at £36 million is up 57 per cent on last year. The business mix also includes a higher proportion of unit-linked products. Prudential's Singapore life business produced a 19 per cent increase in APE for the first quarter and finished 2006 with market leading share for APE. In Malaysia, industry sales remain depressed following regulatory changes last year. However, our sales were the same as those achieved in the first quarter of 2006. The Takaful joint venture with Bank Simpanan Nasional (BSN) continues to perform well. Prudential's Korean life business, with APE of £55 million, increased by 6 per cent compared to the first quarter of 2006. This reflects a market slowdown in variable unit-linked products, increased competition in the general agent channel and lower agent recruitment. The outlook remains positive, particularly with new distribution agreements with Industrial Bank of Korea and Korea Bank getting underway in the second quarter. In Taiwan, first quarter APE at £37 million is 8 per cent lower than the equivalent very strong quarter last year. The proportion of higher margin unit-linked remains high at 61 per cent. Good progress is being made in Japan where new business APE is £10 million. This is a combination of the award by Fitch of an A- credit rating for PCA Life Japan in February and an increase in sales ahead of an anticipated change in local tax regulations, which could reduce the tax benefit provided by the Increasing Term Life product. Prudential has an excellent track record of building profitable businesses in Asia and its focus continues to be on profitable and sustainable long-term growth. Asset Management M&G M&G made a solid start to the year, delivering gross fund inflows of £3.3 billion, a 13 per cent increase on the previous record-breaking first quarter last year. This reflects the strengths of M&G's 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 the second highest ever achieved at £1.4 billion, but were 22 per cent down on last year. This was mainly due to asset allocation shifts by retail investors in Europe and lower flows into segregated bond funds, typically lower margin institutional business. External funds under management grew to £46 billion. Gross inflows into retail funds increased by 20 per cent to £1.9 billion during the first quarter. Net retail fund inflows were down by a third to £573 million, due to increased redemptions in Europe as a result of asset allocation shifts by investors in the wake of equity market falls in late February. Strong retail sales momentum continued in the UK, with gross fund inflows increasing by 56 per cent and net inflows up 49 per cent compared with the same period last year. Over the past two years, UK net fund inflows have increased sixfold. Asian markets, where M&G distributes funds in partnership with Prudential Corporation Asia (PCA), also saw strong growth with net inflows tripling in the first quarter compared to 2006. M&G's institutional businesses delivered gross fund inflows of £1.3 billion during the first quarter, in line with the same period last year. Net fund inflows fell 14 per cent to £794 million, largely due to a fall in lower margin business such as traditional segregated bond funds. M&G's institutional strategy has been to utilise the skills developed primarily for internal funds to build new, higher margin business streams and diversify revenues, and in the first quarter these more profitable areas grew significantly. Gross fund inflows into higher margin areas, such as leveraged loans, collateralised debt obligations (CDOs), infrastructure finance and the Episode global macro hedge fund increased threefold during the first quarter and represented half of all institutional flows. Net fund inflows into these areas more than tripled in the first quarter of 2007, compared to the same period last year, producing a more profitable sales mix. Asian Fund Management Business The Asian Fund Management business made a record start to the year, delivering its highest first quarter third party net inflows since the business was launched in 1998. Net inflows of £0.6 billion were up 18 per cent against the same period in 2006. Of the £0.6 billion in net flows, 93 per cent were in longer-term equity and fixed income products with 7 per cent in shorter-term money market funds. India and Japan recorded the strongest inflows. Total third party funds under management were £12.8 billion, an increase of 5 per cent compared to the fourth quarter in 2006. India, Japan and Korea continue to be the main drivers of growth due to their innovative product strategy, expanded distribution channels and good fund performance. In Taiwan, during the first quarter of 2007, PCA Securities Investment Trust (PSIT) was selected as a fund manager for The Public Service Pension Fund mandate. The Asian Fund Management business continued to grow its institutional business and during the first quarter of 2007 it was awarded investment mandates of £200 million from a number of Asian government related entities. Prudential remains confident that its fund management businesses in Asia are in an ideal position to achieve strong and profitable growth. ENDS Enquiries: Media Investors/Analysts Jon Bunn 020 7548 3559 James Matthews 020 7548 3561 William Baldwin-Charles 020 7548 3719 Valerie Pariente 020 7548 3511 Notes to Editor: 1. Annual premium equivalent (APE) sales comprise regular premium sales plus one-tenth of single premium insurance sales and are subject to rounding. 2. Present Value of New Business Premiums (PVNBP) are calculated as equalling single premiums plus the present value of expected new business premiums of regular premium business, allowing for lapses and other assumptions made in determining the EEV new business contribution. 3. UK Retail sales include all products except bulk annuities and credit life sales. 4. There will be a conference call today for wire services at 7.30am hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group Finance Director. Dial in telephone number: +44 (0)20 8609 0205. Pin number: 155439# 5. There will be a conference call for investors and analysts at 10:00am hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group Finance Director. From the UK please call +44 (0)20 8609 0793 and from the US 1 866 793 4279. Pin number 487687#. A recording of this call will be available for replay for one week by dialling: +44 (0)20 8609 0289 from the UK or 1 866 676 5865 from the US. The conference reference number is 169904#. 6. High resolution photographs are available to the media free of charge at www.newscast.co.uk (+44 (0) 207 608 1000). 7. 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 2007 2006 +/- (%) 2007 2006 +/- (%) £m £m £m £m UK 183 238 (23)% 183 238 (23)% US 180 167 8% 180 149 21% Asia 277 226 23% 277 207 34% ______ ______ ______ ______ ______ ______ Total 640 631 1% 640 594 8% Gross Inflows Actual Exchange Rates Constant Exchange Rates 2007 2006 +/- (%) 2007 2006 +/- (%) £m £m £m £m M&G 3,283 2,915 13% 3,283 2,915 13% US 4 0 4 0 Asia 7,155 4,407 62% 7,155 4,003 79% ______ ______ ______ ______ ______ ______ Total 10,442 7,322 43% 10,442 6,918 51% Total Insurance and Investment New Business Actual Exchange Rates Constant Exchange Rates 2007 2006 +/- (%) 2007 2006 +/- (%) £m £m £m £m Insurance 3,725 4,128 (10)% 3,725 3,921 (5)% Investment 10,442 7,322 43% 10,442 6,918 51% ______ ______ ______ ______ ______ ______ Total 14,167 11,450 24% 14,167 10,839 31% 8. For Jackson, market share data is provided for the full year of 2006, being the latest available. Variable annuity data is sourced from VARDS, fixed annuity data is sourced from LIMRA and fixed index annuities data is sourced from LIMRA and The Advantage Group. 9. Financial Calendar 2006 - 2007: AGM 17 May 2007 Interim Results 1 August 2007 Q3 New Business Figures 18 October 2007 *Prudential plc is a company incorporated and with its principal place of business in England, 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 £250.7 billion in assets under management as at 31 December 2006. 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 - QUARTER 1 2007 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1a) Asia (1a) Total 2007 2006 2007 Q1 2006 Q1 2007 2006 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance 1,375 2,047 (33%) 1,766 1,460 21% 584 414 41% 3,725 3,921 (5%) Products Total Investment 3,283 2,915 13% 4 - - 7,155 4,003 79% 10,442 6,918 51% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 4,658 4,962 (6%) 1,770 1,460 21% 7,739 4,417 75% 14,167 10,839 31% INSURANCE OPERATIONS Single Regular Total Annual Equivalents(3) 2007 Q1 2006 Q1 2007 Q1 2006 Q1 2007 Q1 2006 Q1 2007 2006 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 254 28% - - - 325 254 28% 33 25 32% annuities Direct and 205 103 99% - - - 205 103 99% 21 10 110% Partnership Annuities Intermediated 132 132 0% - - - 132 132 0% 13 13 0% Annuities ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 489 35% - - - 662 489 35% 66 49 35% Annuities Equity Release 34 9 278% - - - 34 9 278% 3 1 200% Individual Pensions 9 3 200% - - - 9 3 200% 1 - - Corporate Pensions 129 13 892% 14 9 56% 143 22 550% 27 10 170% Unit Linked Bonds 71 115 (38%) - - - 71 115 (38%) 7 12 (42%) With-Profit Bonds 56 29 93% - - - 56 29 93% 6 3 100% Protection - - - 1 3 (67%) 1 3 (67%) 1 3 (67%) Offshore Products 127 191 (34%) 1 - - 128 191 (33%) 14 19 (26%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,088 849 28% 16 12 33% 1,104 861 28% 125 97 29% Retirement Corporate Pensions 46 116 (60%) 28 19 47% 74 135 (45%) 33 31 6% Other Products 49 65 (25%) 6 6 0% 55 71 (23%) 11 13 (15%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 13 16 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 342 (35%) 34 25 36% 258 367 (30%) 56 59 (5%) Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,191 10% 50 37 35% 1,362 1,228 11% 181 156 16% Wholesale Annuities 3 664 (100%) - - - 3 664 (100%) - 66 - Credit Life 10 155 (94%) - - - 10 155 (94%) 1 16 (94%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 183 238 (23%) Operations Channel Summary Direct and 634 440 44% 43 30 43% 677 470 44% 106 74 43% Partnership Intermediated 549 590 (7%) 7 7 0% 556 597 (7%) 62 66 (6%) Wholesale 13 819 (98%) - - - 13 819 (98%) 1 82 (99%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,849 (35%) 50 37 35% 1,246 1,886 (34%) 170 222 (23%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 13 16 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 183 238 (23%) Operations US Insurance Operations (1a) Fixed Annuities 134 133 1% - - - 134 133 1% 13 13 0% Fixed Index Annuities 109 119 (8%) - - - 109 119 (8%) 11 12 (8%) Variable Annuities 1,050 802 31% - - - 1,050 802 31% 105 80 31% Life 2 2 0% 4 3 33% 6 5 20% 4 3 33% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,056 23% 4 3 33% 1,299 1,059 23% 134 109 23% Guaranteed Investment 132 245 (46%) - - - 132 245 (46%) 13 25 (48%) Contracts GIC - Medium Term 335 156 115% - - - 335 156 115% 34 16 113% Note ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,457 21% 4 3 33% 1,766 1,460 21% 180 149 21% Operations Asian Insurance Operations (1a) China 6 10 (40%) 11 5 120% 17 15 13% 12 6 100% Hong Kong 102 59 73% 26 17 53% 128 76 68% 36 23 57% India (6) 12 7 71% 56 29 93% 68 36 89% 57 30 90% Indonesia 16 4 300% 20 13 54% 36 17 112% 22 13 69% Japan 30 9 233% 7 - - 37 9 311% 10 1 900% Korea 27 28 (4%) 52 49 6% 79 77 3% 55 52 6% Malaysia 2 1 100% 14 14 0% 16 15 7% 14 14 0% Singapore 103 83 24% 15 13 15% 118 96 23% 25 21 19% Taiwan 36 27 33% 33 37 (11%) 69 64 8% 37 40 (8%) Other (4) 7 2 250% 9 7 29% 16 9 78% 10 7 43% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 230 48% 243 184 32% 584 414 41% 277 207 34% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,697 (7%) 297 224 33% 3,725 3,921 (5%) 640 594 8% Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total 2007 2006 2007 2006 2007 Q1 2006 Q1 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance 1,375 2,047 (33%) 1,766 1,629 8% 584 452 29% 3,725 4,128 (10%) Products Total Investment 3,283 2,915 13% 4 - - 7,155 4,407 62% 10,442 7,322 43% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 4,658 4,962 (6%) 1,770 1,629 9% 7,739 4,859 59% 14,167 11,450 24% INSURANCE OPERATIONS Single Regular Total Annual Equivalents(3) 2007 Q1 2006 Q1 2007 Q1 2006 Q1 2007 Q1 2006 Q1 2007 2006 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 254 28% - - - 325 254 28% 33 25 32% annuities Direct and 205 103 99% - - - 205 103 99% 21 10 110% Partnership Annuities Intermediated 132 132 0% - - - 132 132 0% 13 13 0% Annuities ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 489 35% - - - 662 489 35% 66 49 35% Annuities Equity Release 34 9 278% - - - 34 9 278% 3 1 200% Individual Pensions 9 3 200% - - - 9 3 200% 1 - - Corporate Pensions 129 13 892% 14 9 56% 143 22 550% 27 10 170% Unit Linked Bonds 71 115 (38%) - - - 71 115 (38%) 7 12 (42%) With-Profit Bonds 56 29 93% - - - 56 29 93% 6 3 100% Protection - - - 1 3 (67%) 1 3 (67%) 1 3 (67%) Offshore Products 127 191 (34%) 1 - - 128 191 (33%) 14 19 (26%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,088 849 28% 16 12 33% 1,104 861 28% 125 97 29% Retirement Corporate Pensions 46 116 (60%) 28 19 47% 74 135 (45%) 33 31 6% Other Products 49 65 (25%) 6 6 0% 55 71 (23%) 11 13 (15%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 13 16 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 342 (35%) 34 25 36% 258 367 (30%) 56 59 (5%) Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,191 10% 50 37 35% 1,362 1,228 11% 181 156 16% Wholesale Annuities 3 664 (100%) - - - 3 664 (100%) - 66 - Credit Life 10 155 (94%) - - - 10 155 (94%) 1 16 (94%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 183 238 (23%) Operations Channel Summary Direct and 634 440 44% 43 30 43% 677 470 44% 106 74 43% Partnership Intermediated 549 590 (7%) 7 7 0% 556 597 (7%) 62 66 (6%) Wholesale 13 819 (98%) - - - 13 819 (98%) 1 82 (99%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,849 (35%) 50 37 35% 1,246 1,886 (34%) 170 222 (23%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 13 16 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 183 238 (23%) Operations US Insurance Operations (1b) Fixed Annuities 134 149 (10%) - - - 134 149 (10%) 13 15 (13%) Fixed Index Annuities 109 133 (18%) - - - 109 133 (18%) 11 13 (15%) Variable Annuities 1,050 894 17% - - - 1,050 894 17% 105 89 18% Life 2 2 0% 4 4 0% 6 6 0% 4 4 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,178 10% 4 4 0% 1,299 1,182 10% 134 122 10% Guaranteed Investment 132 273 (52%) - - - 132 273 (52%) 13 27 (52%) Contracts GIC - Medium Term 335 174 93% - - - 335 174 93% 34 17 100% Note ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,625 8% 4 4 0% 1,766 1,629 8% 180 167 8% Operations Asian Insurance Operations (1b) China 6 11 (45%) 11 5 120% 17 16 6% 12 6 100% Hong Kong 102 66 55% 26 20 30% 128 86 49% 36 27 33% India (5) 12 8 50% 56 32 75% 68 40 70% 57 33 73% Indonesia 16 4 300% 20 14 43% 36 18 100% 22 14 57% Japan 30 10 200% 7 - - 37 10 270% 10 1 900% Korea 27 30 (10%) 52 52 0% 79 82 (4%) 55 55 0% Malaysia 2 1 100% 14 14 0% 16 15 7% 14 14 0% Singapore 103 88 17% 15 14 7% 118 102 16% 25 23 9% Taiwan 36 31 16% 33 42 (21%) 69 73 (5%) 37 45 (18%) Other (4) 7 2 250% 9 8 13% 16 10 60% 10 8 25% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 251 36% 243 201 21% 584 452 29% 277 226 23% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,886 (12%) 297 242 23% 3,725 4,128 (10%) 640 631 1% Schedule 2 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 INVESTMENT OPERATIONS Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2007 £m £m £m £m £m £m £m £m M&G Retail 19,176 1,944 (1,371) 573 - 355 928 20,104 Institutional (5) 25,770 1,339 (545) 794 (81) (462) 251 26,021 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 44,946 3,283 (1,916) 1,367 (81) (107) 1,179 46,125 Asia (10) India (9) 1,290 488 (236) 252 83 (10) 325 1,615 Taiwan 969 317 (280) 37 - 23 60 1,029 Korea 2,952 697 (566) 131 (41) (9) 81 3,033 Japan 2,816 448 (235) 213 - (40) 173 2,989 Other Mutual Fund 1,468 206 (269) (63) (7) 60 (10) 1,458 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/ 9,495 2,156 (1,586) 570 35 24 629 10,124 Other MMF India (9) 709 3,914 (3,872) 42 (102) 28 (32) 677 Taiwan 467 353 (327) 26 - (7) 19 486 Korea 609 634 (699) (65) (1) (1) (67) 542 Other Mutual Fund 133 93 (53) 40 - 1 41 174 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 1,918 4,994 (4,951) 43 (103) 21 (39) 1,879 ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual 11,413 7,150 (6,537) 613 (68) 45 590 12,003 Funds Third Party 840 5 (18) (13) - 8 (5) 835 Institutional Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 12,253 7,155 (6,555) 600 (68) 53 585 12,838 Operations US Retail - 4 - 4 - 1 5 5 ______ ______ ______ ______ ______ ______ ______ ______ Total US - 4 - 4 - 1 5 5 ______ ______ ______ ______ ______ ______ ______ ______ Total Investment 57,199 10,442 (8,471) 1,971 (149) (53) 1,769 58,968 Products Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2006 £m £m £m £m £m £m £m £m M&G Retail 14,627 1,620 (799) 821 - 1,000 1,821 16,448 Institutional (5) 21,568 1,295 (372) 923 50 680 1,653 23,221 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 36,195 2,915 (1,171) 1,744 50 1,680 3,474 39,669 Asia (10) India (9) 1,005 262 (176) 86 14 (43) 57 1,062 Taiwan 632 209 (204) 5 - 28 33 665 Korea 2,269 877 (436) 441 (115) 111 437 2,706 Japan 2,695 286 (285) 1 - 35 36 2,731 Other Mutual Fund 1,037 209 (169) 40 - 42 82 1,119 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Equity/Bond/ 7,638 1,843 (1,270) 573 (101) 173 645 8,283 Other MMF India (9) 461 1,530 (1,608) (78) (23) 150 49 510 Taiwan 667 449 (437) 12 - 3 15 682 Korea 534 537 (545) (8) (3) 20 9 543 Other Mutual Fund 143 43 (33) 10 - 1 11 154 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 1,805 2,559 (2,623) (64) (26) 174 84 1,889 ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual 9,443 4,402 (3,893) 509 (127) 347 729 10,172 Funds Third Party 691 5 (5) - - 41 41 732 Institutional Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 10,134 4,407 (3,898) 509 (127) 388 770 10,904 Operations US Retail - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ Total US - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ Total Investment 46,329 7,322 (5,069) 2,253 (77) 2,068 4,244 50,573 Products Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2007 Movement Relative to % % % % % % % % 2006 M&G Retail 31% 20% (72%) (30%) - (65%) (49%) 22% Institutional (5) 19% 3% (47%) (14%) (262%) (168%) (85%) 12% ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 24% 13% (64%) (22%) (262%) (106%) (66%) 16% Asia (10) India (9) 28% 86% (34%) 193% 493% 77% 470% 52% Taiwan 53% 52% (37%) 640% - (18%) 82% 55% Korea 30% (21%) (30%) (70%) 64% (108%) (81%) 12% Japan 4% 57% 18% 21,200% - (214%) 381% 9% Other Mutual Fund 42% (1%) (59%) (258%) - 43% (112%) 30% Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Equity/Bond/ 24% 17% (25%) (1%) 135% (86%) (2%) 22% Other MMF India (9) 54% 156% (141%) 154% (343%) (81%) (165%) 33% Taiwan (30%) (21%) 25% 117% - (333%) 27% (29%) Korea 14% 18% (28%) (713%) 67% (105%) (844%) (0%) Other Mutual Fund (7%) 116% (61%) 300% - 0% 273% 13% Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 6% 95% (89%) 167% (296%) (88%) (146%) (1%) ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Retail 21% 62% (68%) 20% 46% (87%) (19%) 18% Mutual Funds ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 21% 62% (68%) 18% 46% (86%) (24%) 18% Operations US Retail - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ Total US - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ Total Investment 23% 43% (67%) (13%) (94%) (103%) (58%) 17% Products 2007 Q1 2006 Q1 US (7) YTD YTD +/- (%) £m £m Curian Capital External Funds Under 1,369 962 42% Administration Schedule 3 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 VERSUS QUARTER 4 2006 INSURANCE OPERATIONS Single Regular Total Annual Equivalents(3) Q1 2007 Q 4 +/-(%) Q1 2007 Q 4 2006 +/-(%) Q1 2007 Q 4 +/-(%) Q1 Q 4 +/-(%) 2006 2006 2007 2006 £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 369 (12%) - - - 325 369 (12%) 33 37 (11%) annuities Direct and Partnership 205 279 (27%) - - - 205 279 (27%) 21 28 (25%) Annuities Intermediated Annuities 132 188 (30%) - - - 132 188 (30%) 13 19 (32%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 836 (21%) - - - 662 836 (21%) 66 84 (21%) Annuities Equity Release 34 34 0% - - - 34 34 0% 3 3 0% Individual Pensions 9 5 80% - - - 9 5 80% 1 1 0% Corporate Pensions 129 265 (51%) 14 27 (48%) 143 292 (51%) 27 54 (50%) Unit Linked Bonds 71 85 (16%) - - - 71 85 (16%) 7 9 (22%) With-Profit Bonds 56 49 14% - - - 56 49 14% 6 5 20% Protection - 9 (100%) 1 - - 1 9 (89%) 1 1 0% Offshore Products 127 100 27% 1 - - 128 100 28% 14 10 40% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail Retirement 1,088 1,383 (21%) 16 27 (41%) 1,104 1,410 (22%) 125 165 (24%) Corporate Pensions 46 73 (37%) 28 19 47% 74 92 (20%) 33 26 27% Other Products 49 52 (6%) 6 7 (14%) 55 59 (7%) 11 12 (8%) DWP Rebates 129 - - - - - 129 - - 13 - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 125 79% 34 26 31% 258 151 71% 56 39 44% Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,508 (13%) 50 53 (6%) 1,362 1,561 (13%) 181 204 (11%) Wholesale Annuities 3 131 (98%) - - - 3 131 (98%) - 13 - Credit Life 10 197 (95%) - - - 10 197 (95%) 1 20 (95%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 1,836 (28%) 50 53 (6%) 1,375 1,889 (27%) 183 237 (23%) Operations Channel Summary Direct and Partnership 634 949 (33%) 43 47 (9%) 677 996 (32%) 106 142 (25%) Intermediated 549 559 (2%) 7 6 17% 556 565 (2%) 62 62 0% Wholesale 13 328 (96%) - - - 13 328 (96%) 1 33 (97%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,836 (35%) 50 53 (6%) 1,246 1,889 (34%) 170 237 (28%) DWP Rebates 129 - - - - - 129 - - 13 - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 1,836 (28%) 50 53 (6%) 1,375 1,889 (27%) 183 237 (23%) Operations US Insurance Operations (8) Fixed Annuities 134 171 (22%) - - - 134 171 (22%) 13 17 (24%) Fixed Index Annuities 109 118 (8%) - - - 109 118 (8%) 11 12 (8%) Variable Annuities 1,050 1,010 4% - - - 1,050 1,010 4% 105 101 4% Life 2 2 0% 4 4 0% 6 6 0% 4 4 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,301 (0%) 4 4 0% 1,299 1,305 (0%) 134 134 0% Guaranteed Investment 132 133 (1%) - - - 132 133 (1%) 13 13 0% Contracts GIC - Medium Term Note 335 (6) 5,683% - - - 335 (6) 5,683% 34 (1) 3,500% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,428 23% 4 4 0% 1,766 1,432 23% 180 147 22% Operations Asian Insurance Operations (8) China 6 5 20% 11 15 (27%) 17 20 (15%) 12 16 (25%) Hong Kong 102 131 (22%) 26 35 (26%) 128 166 (23%) 36 48 (25%) India (6) 12 6 100% 56 28 100% 68 34 100% 57 29 97% Indonesia 16 14 14% 20 22 (9%) 36 36 0% 22 23 (4%) Japan 30 27 11% 7 3 133% 37 30 23% 10 6 67% Korea 27 27 0% 52 53 (2%) 79 80 (1%) 55 56 (2%) Malaysia 2 1 100% 14 23 (39%) 16 24 (33%) 14 23 (39%) Singapore 103 87 18% 15 25 (40%) 118 112 5% 25 34 (26%) Taiwan 36 34 6% 33 33 0% 69 67 3% 37 36 3% Other (4) 7 6 17% 9 11 (18%) 16 17 (6%) 10 12 (17%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 338 1% 243 248 (2%) 584 586 (0%) 277 282 (2%) Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,602 (5%) 297 305 (3%) 3,725 3,907 (5%) 640 665 (4%) INVESTMENT OPERATIONS Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows £m £m £m £m £m £m £m £m M&G Q1 2007 44,946 3,283 (1,916) 1,367 (81) (107) 1,179 46,125 Q4 2006 42,258 3,505 (2,514) 991 (6) 1,703 2,688 44,946 +/-(%) 6% (6%) 24% 38% (1,250%) (106%) (56%) 3% Asia Retail Mutual Q1 2007 11,413 7,150 (6,537) 613 (68) 45 590 12,003 Funds Q4 2006 10,396 5,673 (4,734) 939 (34) 112 1,017 11,413 +/-(%) 10% 26% (38%) (35%) (100%) (60%) (42%) 5% Asia Third Party Q1 2007 840 5 (18) (13) - 8 (5) 835 Q4 2006 758 40 (4) 36 - 46 82 840 +/-(%) 11% (88%) (350%) (136%) - (83%) (106%) (1%) US Retail Mutual Q1 2007 - 4 - 4 - 1 5 5 Funds Q4 2006 - - - - - - - - +/-(%) - - - - - - - - Total Investment Q1 2007 57,199 10,442 (8,471) 1,971 (149) (53) 1,769 58,968 Products Q4 2006 53,412 9,218 (7,252) 1,966 (40) 1,861 3,787 57,199 +/-(%) 7% 13% (17%) 0% (273%) (103%) (53%) 3% Schedule 4 - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1a) Asia (1a) Total 2007 2006 2007 2006 2007 Q1 2006 Q1 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance 1,375 2,047 (33%) 1,766 1,460 21% 584 414 41% 3,725 3,921 (5%) Products Total Investment 3,283 2,915 13% 4 - - 7,155 4,003 79% 10,442 6,918 51% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 4,658 4,962 (6%) 1,770 1,460 21% 7,739 4,417 75% 14,167 10,839 31% INSURANCE OPERATIONS Single Regular Total PVNBP (3) 2007 2006 2007 2006 2007 2006 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 254 28% - - - 325 254 28% 325 254 28% annuities Direct and 205 103 99% - - - 205 103 99% 205 103 99% Partnership Annuities Intermediated 132 132 0% - - - 132 132 0% 132 132 0% Annuities ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 489 35% - - - 662 489 35% 662 489 35% Annuities Equity Release 34 9 278% - - - 34 9 278% 34 9 278% Individual Pensions 9 3 200% - - - 9 3 200% 9 3 200% Corporate Pensions 129 13 892% 14 9 56% 143 22 550% 189 47 302% Unit Linked Bonds 71 115 (38%) - - - 71 115 (38%) 71 115 (38%) With-Profit Bonds 56 29 93% - - - 56 29 93% 56 29 93% Protection - - - 1 3 (67%) 1 3 (67%) 7 13 (46%) Offshore Products 127 191 (34%) 1 - - 128 191 (33%) 131 191 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,088 849 28% 16 12 33% 1,104 861 28% 1,159 896 29% Retirement Corporate Pensions 46 116 (60%) 28 19 47% 74 135 (45%) 149 189 (21%) Other Products 49 65 (25%) 6 6 0% 55 71 (23%) 71 84 (15%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 129 161 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 342 (35%) 34 25 36% 258 367 (30%) 349 434 (20%) Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,191 10% 50 37 35% 1,362 1,228 11% 1,508 1,330 13% Wholesale Annuities 3 664 (100%) - - - 3 664 (100%) 3 664 (100%) Credit Life 10 155 (94%) - - - 10 155 (94%) 10 155 (94%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 1,521 2,149 (29%) Operations Channel Summary Direct and 634 440 44% 43 30 43% 677 470 44% 804 559 44% Partnership Intermediated 549 590 (7%) 7 7 0% 556 597 (7%) 575 610 (6%) Wholesale 13 819 (98%) - - - 13 819 (98%) 13 819 (98%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,849 (35%) 50 37 35% 1,246 1,886 (34%) 1,392 1,988 (30%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 129 161 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 1,521 2,149 (29%) Operations US Insurance Operations (1a) Fixed Annuities 134 133 1% - - - 134 133 1% 134 133 1% Fixed Index Annuities 109 119 (8%) - - - 109 119 (8%) 109 119 (8%) Variable Annuities 1,050 802 31% - - - 1,050 802 31% 1,050 802 31% Life 2 2 0% 4 3 33% 6 5 20% 36 28 29% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,056 23% 4 3 33% 1,299 1,059 23% 1,329 1,082 23% Guaranteed Investment 132 245 (46%) - - - 132 245 (46%) 132 245 (46%) Contracts GIC - Medium Term 335 156 115% - - - 335 156 115% 335 156 115% Note ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,457 21% 4 3 33% 1,766 1,460 21% 1,796 1,483 21% Operations Asian Insurance Operations (1a) China 6 10 (40%) 11 5 120% 17 15 13% 57 38 50% Hong Kong 102 59 73% 26 17 53% 128 76 68% 247 159 55% India (6) 12 7 71% 56 29 93% 68 36 89% 235 110 114% Indonesia 16 4 300% 20 13 54% 36 17 112% 81 47 72% Japan 30 9 233% 7 - - 37 9 311% 60 2 2,900% Korea 27 28 (4%) 52 49 6% 79 77 3% 279 224 25% Malaysia 2 1 100% 14 14 0% 16 15 7% 83 82 1% Singapore 103 83 24% 15 13 15% 118 96 23% 194 190 2% Taiwan 36 27 33% 33 37 (11%) 69 64 8% 186 213 (13%) Other (4) 7 2 250% 9 7 29% 16 9 78% 36 34 6% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 230 48% 243 184 32% 584 414 41% 1,458 1,099 33% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,697 (7%) 297 224 33% 3,725 3,921 (5%) 4,775 4,731 1% Schedule 5 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total 2007 2006 2007 2006 2007 2006 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance 1,375 2,047 (33%) 1,766 1,629 8% 584 452 29% 3,725 4,128 (10%) Products Total Investment 3,283 2,915 13% 4 - - 7,155 4,407 62% 10,442 7,322 43% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 4,658 4,962 (6%) 1,770 1,629 9% 7,739 4,859 59% 14,167 11,450 24% INSURANCE OPERATIONS Single Regular Total PVNBP (3) 2007 2006 2007 2006 2007 2006 2007 2006 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 254 28% - - - 325 254 28% 325 254 28% annuities Direct and 205 103 99% - - - 205 103 99% 205 103 99% Partnership Annuities Intermediated 132 132 0% - - - 132 132 0% 132 132 0% Annuities ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 489 35% - - - 662 489 35% 662 489 35% Annuities Equity Release 34 9 278% - - - 34 9 278% 34 9 278% Individual Pensions 9 3 200% - - - 9 3 200% 9 3 200% Corporate Pensions 129 13 892% 14 9 56% 143 22 550% 189 47 302% Unit Linked Bonds 71 115 (38%) - - - 71 115 (38%) 71 115 (38%) With-Profit Bonds 56 29 93% - - - 56 29 93% 56 29 93% Protection - - - 1 3 (67%) 1 3 (67%) 7 13 (46%) Offshore Products 127 191 (34%) 1 - - 128 191 (33%) 131 191 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,088 849 28% 16 12 33% 1,104 861 28% 1,159 896 29% Retirement Corporate Pensions 46 116 (60%) 28 19 47% 74 135 (45%) 149 189 (21%) Other Products 49 65 (25%) 6 6 0% 55 71 (23%) 71 84 (15%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 129 161 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 342 (35%) 34 25 36% 258 367 (30%) 349 434 (20%) Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,191 10% 50 37 35% 1,362 1,228 11% 1,508 1,330 13% Wholesale Annuities 3 664 (100%) - - - 3 664 (100%) 3 664 (100%) Credit Life 10 155 (94%) - - - 10 155 (94%) 10 155 (94%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 1,521 2,149 (29%) Operations Channel Summary Direct and 634 440 44% 43 30 43% 677 470 44% 804 559 44% Partnership Intermediated 549 590 (7%) 7 7 0% 556 597 (7%) 575 610 (6%) Wholesale 13 819 (98%) - - - 13 819 (98%) 13 819 (98%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,849 (35%) 50 37 35% 1,246 1,886 (34%) 1,392 1,988 (30%) DWP Rebates 129 161 (20%) - - - 129 161 (20%) 129 161 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 2,010 (34%) 50 37 35% 1,375 2,047 (33%) 1,521 2,149 (29%) Operations US Insurance Operations (1b) Fixed Annuities 134 149 (10%) - - - 134 149 (10%) 134 149 (10%) Fixed Index Annuities 109 133 (18%) - - - 109 133 (18%) 109 133 (18%) Variable Annuities 1,050 894 17% - - - 1,050 894 17% 1,050 894 17% Life 2 2 0% 4 4 0% 6 6 0% 36 31 16% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,178 10% 4 4 0% 1,299 1,182 10% 1,329 1,207 10% Guaranteed Investment 132 273 (52%) - - - 132 273 (52%) 132 273 (52%) Contracts GIC - Medium Term 335 174 93% - - - 335 174 93% 335 174 93% Note ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,625 8% 4 4 0% 1,766 1,629 8% 1,796 1,654 9% Operations Asian Insurance Operations (1b) China 6 11 (45%) 11 5 120% 17 16 6% 57 41 39% Hong Kong 102 66 55% 26 20 30% 128 86 49% 247 179 38% India (6) 12 8 50% 56 32 75% 68 40 70% 235 122 93% Indonesia 16 4 300% 20 14 43% 36 18 100% 81 51 59% Japan 30 10 200% 7 - - 37 10 270% 60 2 2,900% Korea 27 30 (10%) 52 52 0% 79 82 (4%) 279 241 16% Malaysia 2 1 100% 14 14 0% 16 15 7% 83 86 (3%) Singapore 103 88 17% 15 14 7% 118 102 16% 194 199 (3%) Taiwan 36 31 16% 33 42 (21%) 69 73 (5%) 186 242 (23%) Other (4) 7 2 250% 9 8 13% 16 10 60% 36 36 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 251 36% 243 201 21% 584 452 29% 1,458 1,199 22% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,886 (12%) 297 242 23% 3,725 4,128 (10%) 4,775 5,002 (5%) Schedule 6 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2007 VERSUS QUARTER 4 2006 INSURANCE OPERATIONS Single Regular Total PVNBP (3) Q1 Q 4 +/-(%) Q1 Q 4 2006 +/-(%) Q1 2007 Q 4 +/-(%) Q1 2007 Q 4 +/-(%) 2007 2006 2007 2006 2006 £m £m £m £m £m £m £m £m UK Insurance Operations Product Summary Internal Vesting 325 369 (12%) - - - 325 369 (12%) 325 369 (12%) annuities Direct and Partnership 205 279 (27%) - - - 205 279 (27%) 205 279 (27%) Annuities Intermediated 132 188 (30%) - - - 132 188 (30%) 132 188 (30%) Annuities ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual 662 836 (21%) - - - 662 836 (21%) 662 836 (21%) Annuities Equity Release 34 34 0% - - - 34 34 0% 34 34 0% Individual Pensions 9 5 80% - - - 9 5 80% 9 5 80% Corporate Pensions 129 265 (51%) 14 27 (48%) 143 292 (51%) 189 314 (40%) Unit Linked Bonds 71 85 (16%) - - - 71 85 (16%) 71 85 (16%) With-Profit Bonds 56 49 14% - - - 56 49 14% 56 49 14% Protection - 9 (100%) 1 - - 1 9 (89%) 7 24 (71%) Offshore Products 127 100 27% 1 - - 128 100 28% 131 100 31% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,088 1,383 (21%) 16 27 (41%) 1,104 1,410 (22%) 1,159 1,447 (20%) Retirement Corporate Pensions 46 73 (37%) 28 19 47% 74 92 (20%) 149 113 32% Other Products 49 52 (6%) 6 7 (14%) 55 59 (7%) 71 80 (11%) DWP Rebates 129 - - - - - 129 - - 129 - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and 224 125 79% 34 26 31% 258 151 71% 349 193 81% Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,312 1,508 (13%) 50 53 (6%) 1,362 1,561 (13%) 1,508 1,640 (8%) Wholesale Annuities 3 131 (98%) - - - 3 131 (98%) 3 131 (98%) Credit Life 10 197 (95%) - - - 10 197 (95%) 10 197 (95%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 1,836 (28%) 50 53 (6%) 1,375 1,889 (27%) 1,521 1,968 (23%) Operations Channel Summary Direct and Partnership 634 949 (33%) 43 47 (9%) 677 996 (32%) 804 1,045 (23%) Intermediated 549 559 (2%) 7 6 17% 556 565 (2%) 575 595 (3%) Wholesale 13 328 (96%) - - - 13 328 (96%) 13 328 (96%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,196 1,836 (35%) 50 53 (6%) 1,246 1,889 (34%) 1,392 1,968 (29%) DWP Rebates 129 - - - - - 129 - - 129 - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,325 1,836 (28%) 50 53 (6%) 1,375 1,889 (27%) 1,521 1,968 (23%) Operations US Insurance Operations (8) Fixed Annuities 134 171 (22%) - - - 134 171 (22%) 134 171 (22%) Fixed Index Annuities 109 118 (8%) - - - 109 118 (8%) 109 118 (8%) Variable Annuities 1,050 1,010 4% - - - 1,050 1,010 4% 1,050 1,010 4% Life 2 2 0% 4 4 0% 6 6 0% 36 43 (16%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,295 1,301 (0%) 4 4 0% 1,299 1,305 (0%) 1,329 1,342 (1%) Guaranteed Investment 132 133 (1%) - - - 132 133 (1%) 132 133 (1%) Contracts GIC - Medium Term Note 335 (6) 5,683% - - - 335 (6) 5,683% 335 (6) 5,683% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,762 1,428 23% 4 4 0% 1,766 1,432 23% 1,796 1,469 22% Operations Asian Insurance Operations (8) China 6 5 20% 11 15 (27%) 17 20 (15%) 57 60 (5%) Hong Kong 102 131 (22%) 26 35 (26%) 128 166 (23%) 247 324 (24%) India (6) 12 6 100% 56 28 100% 68 34 100% 235 148 59% Indonesia 16 14 14% 20 22 (9%) 36 36 0% 81 87 (7%) Japan 30 27 11% 7 3 133% 37 30 23% 60 42 43% Korea 27 27 0% 52 53 (2%) 79 80 (1%) 279 400 (30%) Malaysia 2 1 100% 14 23 (39%) 16 24 (33%) 83 136 (39%) Singapore 103 87 18% 15 25 (40%) 118 112 5% 194 237 (18%) Taiwan 36 34 6% 33 33 0% 69 67 3% 186 143 30% Other (4) 7 6 17% 9 11 (18%) 16 17 (6%) 36 31 16% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 341 338 1% 243 248 (2%) 584 586 (0%) 1,458 1,608 (9%) Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,428 3,602 (5%) 297 305 (3%) 3,725 3,907 (5%) 4,775 5,045 (5%) INVESTMENT OPERATIONS Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows £m £m £m £m £m £m £m £m M&G Q1 44,946 3,283 (1,916) 1,367 (81) (107) 1,179 46,125 2007 Q4 42,258 3,505 (2,514) 991 (6) 1,703 2,688 44,946 2006 +/-(%) 6% (6%) 24% 38% (1,250%) (106%) (56%) 3% Asia Retail Mutual Q1 11,413 7,150 (6,537) 613 (68) 45 590 12,003 Funds 2007 Q4 10,396 5,673 (4,734) 939 (34) 112 1,017 11,413 2006 +/-(%) 10% 26% (38%) (35%) (100%) (60%) (42%) 5% Asia Third Party Q1 840 5 (18) (13) - 8 (5) 835 2007 Q4 758 40 (4) 36 - 46 82 840 2006 +/-(%) 11% (88%) (350%) (136%) - (83%) (106%) (1%) US Retail Mutual Q1 - 4 - 4 - 1 5 5 Funds 2007 Q4 - - - - - - - - 2006 +/-(%) - - - - - - - - Total Investment Q1 57,199 10,442 (8,471) 1,971 (149) (53) 1,769 58,968 Products 2007 Q4 53,412 9,218 (7,252) 1,966 (40) 1,861 3,787 57,199 2006 +/-(%) 7% 13% (17%) 0% (273%) (103%) (53%) 3% PRUDENTIAL PLC - NEW BUSINESS SCHEDULES BASIS OF PREPARATION The new business schedules are provided as an indicative volume measure of transactions undertaken in the reporting period that have the potential to generate profits for shareholders. The amounts shown are not, and not intended to be, reflective of premium income recorded in the IFRS income statement. The format of the schedules is consistent with the distinction between insurance and investment products as applied for previous financial reporting periods. Products categorised as 'insurance' refer to those classified as contracts of long-term insurance business for regulatory reporting purposes, i.e. falling within one of the classes of insurance specified in part II of Schedule 1 to the Regulated Activities Order under FSA regulations. The details shown for insurance products include contributions for contracts that are classified under IFRS 4 'Insurance Contracts' as not containing significant insurance risk. These products are described as investment contracts or other financial instruments under IFRS. Contracts included in this category are primarily certain unit-linked and similar contracts written in UK Insurance Operations, and Guaranteed Investment Contracts and similar funding agreements written in US operations. New business premiums for regular premium products are shown on an annualised basis. Department of Work and Pensions pension business is classified as single recurrent business. Internal vesting business is classified as new business where the contracts include an open market option. UK and Asian investment products referred to in the tables for funds under management above are unit trusts, mutual funds and similar types of retail fund management arrangements. These are unrelated to insurance products that are classified as investment contract under IFRS 4, as described in the preceding paragraph, although similar IFRS recognition and measurement principles apply to the acquisition costs and fees attaching to this type of business. New Department of Work and Pensions (DWP) rebate business for SAIF is excluded from the new business schedules. This is because, as noted above, SAIF is solely for the benefit of SAIF policyholders. Notes to Schedules 1A - 6 (1a) Insurance and investment new business for overseas operations has been calculated using constant exchange rates. The applicable rate for Jackson is 1.95. (1b) Insurance and investment new business for overseas operations has been calculated using average exchange rates. The applicable rate for Jackson is 1.95 (2006: 1.84). (2) Represents cash received from sale of investment products. (3) Annual Equivalents, calculated as regular new business contributions plus 10 per cent single new business contributions, are subject to roundings. PVNBPs are calculated as equalling single premiums plus the present value of expected premiums of new regular premium business. In determining the present value, allowance is made for lapses and other assumptions applied in determining the EEV new business profit. (4) In Asia, 'Other' insurance operations include Thailand, the Philippines and Vietnam. (5) Balance includes segregated and pooled pension funds, private finance assets and other institutional clients. Other movements reflect the net flows arising from the cash component of a tactical asset allocation fund managed by PPM South Africa. (6) New business in India is included at Prudential's 26 per cent interest in the India life operation. Mandatory Provident Fund (MPF) product sales in Hong Kong are included at Prudential's 36 per cent interest in Hong Kong MPF operation. (7) Balance sheet figures have been calculated at the closing exchange rate. The 2006 balance is shown on a constant exchange rate. (8) Sales are converted using the year to date average exchange rate applicable at the time. The sterling results for individual quarters represent the difference between the year to date reported sterling results at successive quarters and will include foreign exchange movements from earlier periods. (9) In August 2005, Prudential's joint venture partner in the Prudential ICICI Asset Management Company purchased an additional 6 per cent share ownership reducing Prudential's stake to 49 per cent. As a result, Prudential no longer consolidates the company as a subsidiary. (10) £303m of FUM reported under Prudential Asian funds operations relates to M& G's products distributed through those Asian operations and this amount is also included in M&G's FUM. This information is provided by RNS The company news service from the London Stock Exchange IL

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