1st Quarter Results
Prudential PLC
20 April 2005
Embargo: 07.00 Wednesday 20th April 2005
PRUDENTIAL PLC FIRST QUARTER 2005 NEW BUSINESS RESULTS
Good start to the year across all businesses.
• Group APE sales of £478 million up 11 per cent on first quarter 2004
• UK & Europe APE sales of £208 million up 12 per cent on first quarter 2004
• Jackson National Life APE sales of £128 million up 9 per cent on first
quarter 2004
• Prudential Corporation Asia APE sales of £142 million up 13 per cent on
first quarter 2004
• M&G external funds under management of £30.1 billion up 27 per cent on
first quarter 2004
• Prudential Corporation Asia investment operations' funds under management of
£8.1 billion, up 13 per cent on 2004
All comparisons above and the narrative below are quoted at constant exchange
rates (CER). See Notes to Editors for further details.
Prudential's Group Finance Director, Philip Broadley, commented:
'This is a strong start to the year, continuing the momentum built across the
Group in 2004 with good performances from all our businesses.
Double digit sales growth for Prudential UK & Europe included strong sales of
unit-linked bonds and annuities. The partnerships channel saw significant
year-on-year growth and this will be enhanced by further distribution
opportunities with St James's Place, Barclays and National Australia Bank.
In the US, Jackson National Life's (JNL) total quarterly sales of variable
annuities exceeded $1 billion for the first time and contributed to overall APE
sales growth of 9 per cent on the first quarter of 2004.
In Asia, both Korea and India recorded their highest quarterly APE sales and
sales in Malaysia increased significantly. In China we were pleased to announce
three new city licences during the quarter.
M&G reported gross inflows of £2.1billion, nearly three times higher than the
first quarter of 2004.
We maintain the positive outlook set out in our preliminary results announcement
on 2 March. Our businesses across all regions continue to perform strongly and
are well positioned to take advantage of the opportunities in their respective
markets.'
UK and Europe Insurance Operations
APE sales for Prudential UK and Europe of £208 million were up 12 per cent on
the first quarter of 2004. This principally reflected strong growth in sales of
unit-linked bonds and annuities.
APE sales out-performed the first quarter of last year in each distribution
channel: Direct to Customer up 6 per cent; Business to Business (B2B) up 17 per
cent; Intermediaries up 8 per cent; and Partnerships up 42 per cent (all figures
exclude the inflows from DWP rebates).
Prudential UK is a market leader in annuities. APE sales of individual annuities
were up 18 per cent (to £53 million) on the first quarter of 2004 due to
increased sales through most distribution channels. Bulk annuities were up 71
per cent on 2004 to £24 million which comprised 16 scheme wins.
Sales of unit-linked products increased significantly in 2004 and this trend
continued into 2005 with APE sales of £18 million up 195 per cent on the first
quarter of 2004. This increase more than offset the decline in sales of
with-profits products from the levels seen in the first quarter of 2004.
However, Prudential believes that with-profits continues to be an attractive
investment for policyholders when provided by a financially strong and
well-managed fund. Our with-profits fund has delivered a total pre-tax return of
20.7 per cent over the last five years while the FTSE 100 fell by 20 per cent.
This enabled Prudential UK to maintain annual bonuses and increase policy values
for nearly all its 5.5 million with-profits policyholders in 2005.
Prudential re-entered the critical illness protection market with guaranteed
rates in March 2005. Earlier this month it launched both on-line and telephone
underwriting across its range of protection products, which will substantially
reduce the processing time for new business for Independent Financial Advisers
(IFAs). Credit Life sales remained strong, up 25 per cent to £20 million on the
first quarter of 2004.
In October 2004 we launched PruHealth, an innovative UK healthcare product that
links health and fitness to the cost of medical insurance. As PruHealth is not a
life insurance product, its premium income is not reported as new business
sales; for the first quarter of 2005, the gross written premiums were £1
million. Support for PruHealth is strong in the IFA channel and its rate of
growth is accelerating.
Further enhancements to sales processes and greater use of work-site marketing
contributed to an increase in B2B corporate pensions APE sales of 6 per cent (to
£37 million) on the first quarter of 2004. DWP rebates decreased 9 per cent on
2004 as customers have been encouraged to consider contracting back into the
second state pension.
Sales through the partnerships channel have increased year-on-year as more
business was written through new agreements. A further agreement was signed with
St. James's Place in January (for the sale of annuities) and in March, Barclays
announced its intention to appoint Prudential UK as one of its nominated
multi-tie product providers. Yesterday, Prudential announced an agreement with
National Australia Bank (NAB) under which NAB will sell Prudential's annuity
products (on an exclusive basis) and healthcare products through their
Clydesdale and Yorkshire Bank networks.
Prudential UK has continued to make good progress with multi-tie networks. In
the first quarter of 2005, it was appointed to the Burns Anderson regulated
multi-tie panel and by Tenet to work on the design of its multi-tie proposition.
Prudential UK has made an encouraging start in 2005. Its new business growth of
12 per cent exceeded our expected growth rate for the year of 10 per cent given
the expectation of UK market growth of 5 per cent.
Jackson National Life (JNL)
APE sales for the first quarter of £128 million were up 9 per cent on the first
quarter of 2004. Total quarterly sales of variable annuities exceeded $1 billion
(£529 million) for the first time. Total retail APE sales of £87 million were in
line with the first quarter of 2004. Institutional sales were 37 per cent higher
than the same period last year.
Total sales of variable annuities exceeded $1 billion, with particularly strong
sales in March of over $400 million (establishing a monthly sales record). JNL
remains a top-10 player in the variable annuity market. Its variable annuity
assets grew 36 per cent in 2004 compared with industry growth of 12 per cent.
The rate of take-up of the fixed account option for this product was 28 per
cent, compared with 25 per cent in the first quarter of 2004.
APE sales of fixed annuities were down 47 per cent on the first quarter of 2004,
reflecting the flattened yield curve, which has made rates on short-term
certificates of deposits (CDs) more attractive to customers.
Fixed index annuities (note 2) APE sales of £13 million were up 86 per cent on
the first quarter of 2004, reflecting customers' increasing preference for fixed
products with the potential for higher returns linked to equity index
performance.
APE sales of life products increased to £3 million in the first quarter of 2005.
JNL's continued focus on developing its life business through the creation of a
dedicated distribution team in 2003 has helped generate a significant increase
in life sales. The company also entered the variable universal life market in
March 2004 and introduced its second VUL product in January 2005.
We expect to complete the regulatory approval process of the purchase of Life
Insurance Company of Georgia in the second quarter of 2005.
Curian Capital, which provides innovative fee-based separately managed accounts,
had deposits of £117 million, up 24 per cent over the first quarter of 2004. In
its first full two years of operation, Curian has accumulated US$1,213 million
(£642 million) of funds under management.
APE sales of institutional products were £41 million, up 37 per cent on the
first quarter of 2004 reflecting favourable market conditions in this sector. In
general, the market is more active in the first quarter as companies begin to
address their funding needs for the year. In addition, there was a brief window
in the first quarter of 2005 during which spreads were attractive and we were
able to opportunistically place business.
Performance in the first quarter was in line with our expectations for the year.
We expect the US market to grow at about 4 per cent in 2005 and JNL to grow
sales at around twice this rate as current conditions continue to favour
companies which have a range of variable and fixed annuity product offerings, a
relationship-based distribution model and award-winning service.
Prudential Corporation Asia
Prudential's Asian operations continue to show solid new business growth overall
and reflect our focus on building a profitable and sustainable business. APE
sales of £142 million were up 13 per cent over the same period last year.
Both Korea and India achieved very strong results in the first quarter with
record quarterly APE sales of £27 million and £18 million respectively. In Korea
this reflects the continuing popularity of the Variable Universal Life product
and the development of the tied and general agency channels that are
compensating for increased competition in the direct channel. In India APE
growth reflects the ongoing building of scale in the operation as agent numbers
grow and geographic coverage increases.
In the more established markets, Malaysia had a very good first quarter with APE
sales of £12 million, up 50 per cent on the same quarter last year, reflecting
successful sales and productivity programmes. Taiwan APE sales were down 25 per
cent on the first quarter of 2004 as we focus on quality new business rather
than pursuing volume. Its proportion of unit-linked business increased from 47
per cent in the first quarter of 2004 to 54 per cent in the first quarter of
2005. Singapore APE sales grew 7 per cent with regular premium business growing
10 per cent, reflecting our market leading position in this more profitable
sector of the market. Hong Kong APE sales grew 5 per cent driven by continuing
growth from the bancassurance distribution channel.
In China our geographic expansion is progressing and APE sales were up 33 per
cent over the first quarter of 2004. Prudential's joint venture with China
International Trust and Investment Corporation (CITIC) is the country's leading
joint venture in terms of sales and we now have seven city licences, including
three announced during the quarter in Foshan, Dongguan and Wuhan, as well as a
group life insurance licence.
In Japan, sales were slow as our focus remains on strengthening our
bancassurance and Financial Advisory model. Indonesia APE sales were in line
with the first quarter in 2004, as it continues the steady rebuilding of
momentum following the bankruptcy claim that affected the business for part of
last year. APE sales of Prudential Corporation Asia's 'Other' operations
primarily reflected sales in Vietnam where industry growth has softened over the
last year following the initial growth since the liberalisation of the market.
Total investment product funds under management are £8.1 billion, up 13 per cent
on 2004. Net investment product inflows were £209 million, down 31 per cent on
the same quarter in 2004. Strong net inflows in Japan of £365 million, and in
Korea of £314 million were partially offset by net outflows in Taiwan of £163
million where industry-wide concerns over the liquidity of some bond funds have
unsettled the market. In India, net outflows of £231 million reflect anticipated
end of year tax planning by many unit holders.
We are confident of our ability to grow strongly and profitably in Asia: the
opportunities in our newer markets, coupled with the strength of our larger
operations, should enable us to accelerate our level of sales growth in 2005.
M&G
M&G has made a strong start to the year with overall gross fund inflows in the
quarter of £2.1 billion, nearly three times greater than the previous year.
Overall net fund inflows were £1.3 billion, a significant improvement on the
first quarter of last year when there were net outflows of £886 million.
Gross fund inflows within M&G's retail businesses more than doubled to £801
million, resulting in net fund inflows of £220 million against a small net
outflow last year. This improvement was due to increased equity and property
sales in the UK and strong growth from its international businesses.
M&G's institutional businesses delivered gross fund inflows of £1.3 billion,
boosted by a one-off contribution of £967 million from Prudential Property
Investment Managers (PruPIM). This related to the transfer of 50% of
Prudential's economic interests in three UK shopping centres into new external
vehicles which PruPIM will continue to manage. Net inflows of £1.0 billion
compare to net outflows of £879 million last year when the figures reflected a
single large segregated withdrawal following a change of strategy by the client.
Egg
Egg will announce its first quarter 2005 results on 27 April.
-ENDS-
Enquiries
Rebecca Burrows, Group Communications Director 020 7548 3537
Media Investors/Analysts
Clare Staley 020 7548 3719 Marina Lee-Steere 020 7548 3511
Joanne Davidson 020 7548 3708 Mike Kempster 020 7548 3823
Notes to Editors
1. There will be a conference call today for wire services hosted by Philip
Broadley, Group Finance Director, at 7.45am. Dial-in telephone number:
+44 (0) 20 8609 0205. Pin code: 155439# for access to the call.
2. Equity-Indexed Annuities (EIAs) are now referred to as Fixed Index Annuities
(FIAs), a term that more accurately describes the product design and
its benefits and features.
3. 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 (CER) basis. The two bases are compared in the
table below.
4. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has £187 billion in
assets under management, as at 31 December 2004. Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
Forward-Looking Statements
This statement may contain certain 'forward-looking statements' with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words 'believes', 'intends', 'expects', 'plans', '
seeks' and 'anticipates', and words of similar meaning, are forward-looking. By
their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
Schedule 1A - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia (1a) Total
2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
£m £m £m £m £m £m £m £m
Total Insurance 1,713 1,481 16% 1,256 1,157 9% 278 264 5% 3,247 2,902 12%
Products
Total Investment 2,092 722 190% - - - 4,635 5,046 (8%) 6,727 5,768 17%
Products - Gross
Inflows (2)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,805 2,203 73% 1,256 1,157 9% 4,913 5,310 (7%) 9,974 8,670 15%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
£m £m £m £m £m £m £m £m
UK Insurance
Operations
Direct to
Customer:
Individual 4 3 33% 2 2 0% 6 5 20% 2 2 0%
Pensions
Life - With 2 3 (33%) - - - 2 3 (33%) 0 0 0%
Profit
Bond
Life - Other - - - - - - - - - - - -
Individual 167 151 11% - - - 167 151 11% 17 15 13%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 173 157 10% 2 2 0% 175 159 10% 19 18 6%
DWP Rebates 234 252 (7%) - - - 234 252 (7%) 23 25 (8%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 407 409 (0%) 2 2 0% 409 411 (0%) 43 43 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate
Pensions 56 40 40% 31 31 0% 87 71 23% 37 35 6%
Individual 49 48 2% - - - 49 48 2% 5 5 0%
Annuities
Bulk Annuities 215 139 55% - - - 215 139 55% 22 14 57%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 320 227 41% 31 31 0% 351 258 36% 63 54 17%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 21 16 31% 5 5 0% 26 21 24% 7 7 0%
Pensions
Corporate 10 65 (85%) 2 2 0% 12 67 (82%) 3 9 (67%)
Pensions
Life - With 33 54 (39%) - - - 33 54 (39%) 3 5 (40%)
Profit Bond
Life - Other 226 142 59% - - - 226 142 59% 23 14 64%
Bond
Life - Other - - - 1 1 0% 1 1 0% 1 1 0%
Individual 269 228 18% - - - 269 228 18% 27 23 17%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 559 505 11% 8 8 0% 567 513 11% 64 59 8%
DWP Rebates 80 92 (13%) - - - 80 92 (13%) 8 9 (11%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 639 597 7% 8 8 0% 647 605 7% 72 68 6%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With
Profit Bond - 1 - - - - - 1 - - 0 -
Life - Other 198 164 21% - - - 198 164 21% 20 16 25%
Individual 44 23 91% - - - 44 23 91% 4 2 100%
Annuities
Bulk Annuities 25 - - - - - 25 - - 3 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 267 188 42% - - - 267 188 42% 27 19 42%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 25 19 32% 7 7 0% 32 26 23% 10 9 11%
Pensions
Corporate 66 105 (37%) 33 33 0% 99 138 (28%) 40 44 (9%)
Pensions
Life - With 35 58 (40%) - - - 35 58 (40%) 4 6 (33%)
Profit Bond
Life - Other 226 142 59% - - - 226 142 59% 23 14 64%
Bond
Life - Other 198 164 21% 1 1 0% 199 165 21% 21 17 24%
Individual 529 450 18% - - - 529 450 18% 53 45 18%
Annuities
Bulk Annuities 240 139 73% - - - 240 139 73% 24 14 71%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 1,319 1,077 22% 41 41 0% 1,360 1,118 22% 173 149 16%
DWP Rebates 314 344 (9%) - - - 314 344 (9%) 31 34 (9%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 1,633 1,421 15% 41 41 0% 1,674 1,462 15% 204 183 11%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European
Insurance
Operations : (1a)
Insurance 39 19 105% - - - 39 19 105% 4 2 100%
Products
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total European 39 19 105% - - - 39 19 105% 4 2 100%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK & 1,672 1,440 16% 41 41 0% 1,713 1,481 16% 208 185 12%
European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (1a)
Fixed Annuities 165 323 (49%) - - - 165 323 (49%) 17 32 (47%)
Fixed Index 127 69 84% - - - 127 69 84% 13 7 86%
Annuities
Variable 548 460 19% - - - 548 460 19% 55 46 20%
Annuities
Life 4 1 300% 2 2 0% 6 3 100% 3 2 50%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 844 853 (1%) 2 2 0% 846 855 (1%) 87 87 0%
Retail
Guaranteed 50 18 178% - - - 50 18 178% 5 2 150%
Investment
Contracts
GIC - Medium 360 284 27% - - - 360 284 27% 36 28 29%
Term Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US 1,254 1,155 9% 2 2 0% 1,256 1,157 9% 128 117 9%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations : (1a)
China 1 3 (67%) 4 3 33% 5 6 (17%) 4 3 33%
Hong Kong 52 50 4% 17 16 6% 69 66 5% 22 21 5%
India (@26%) (6) 1 1 0% 18 11 64% 19 12 58% 18 11 64%
Indonesia 15 12 25% 7 8 (13%) 22 20 10% 9 9 0%
Japan 5 3 67% 1 2 (50%) 6 5 20% 2 2 0%
Korea 4 20 (80%) 27 14 93% 31 34 (9%) 27 16 69%
Malaysia 2 2 0% 12 8 50% 14 10 40% 12 8 50%
Singapore 45 50 (10%) 11 10 10% 56 60 (7%) 16 15 7%
Taiwan 24 10 140% 22 31 (29%) 46 41 12% 24 32 (25%)
Other (4) 2 2 0% 8 8 0% 10 10 0% 8 8 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian 151 153 (1%) 127 111 14% 278 264 5% 142 126 13%
Insurance Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,077 2,748 12% 170 154 10% 3,247 2,902 12% 478 429 11%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
£m £m £m £m £m £m £m £m
Total Insurance 1,713 1,481 16% 1,256 1,190 6% 278 264 5% 3,247 2,935 11%
Products
Total Investment 2,092 722 190% - - - 4,635 4,909 (6%) 6,727 5,631 19%
Products - Gross
Inflows (2)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,805 2,203 73% 1,256 1,190 6% 4,913 5,173 (5%) 9,974 8,566 16%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INSURANCE OPERATIONS
Single Regular Total
Annual Equivalents (3)
2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%) 2005 Q1 2004 Q1 +/- (%)
YTD YTD YTD YTD YTD YTD YTD YTD
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual 4 3 33% 2 2 0% 6 5 20% 2 2 0%
Pensions
Life - With 2 3 (33%) - - - 2 3 (33%) 0 0 0%
Profit Bond
Life - Other - - - - - - - - - - - -
Individual 167 151 11% - - - 167 151 11% 17 15 13%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 173 157 10% 2 2 0% 175 159 10% 19 18 6%
DWP Rebates 234 252 (7%) - - - 234 252 (7%) 23 25 (8%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 407 409 (0%) 2 2 0% 409 411 (0%) 43 43 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate 56 40 40% 31 31 0% 87 71 23% 37 35 6%
Pensions
Individual 49 48 2% - - - 49 48 2% 5 5 0%
Pensions
Bulk Annuities 215 139 55% - - - 215 139 55% 22 14 57%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 320 227 41% 31 31 0% 351 258 36% 63 54 17%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 21 16 31% 5 5 0% 26 21 24% 7 7 0%
Pensions
Corporate Pensions 10 65 (85%) 2 2 0% 12 67 (82%) 3 9 (67%)
Life - With 33 54 (39%) - - - 33 54 (39%) 3 5 (40%)
Profit Bond
Life - Other Bond 226 142 59% - - - 226 142 59% 23 14 64%
Life - Other - - - 1 1 0% 1 1 0% 1 1 0%
Individual 269 228 18% - - - 269 228 18% 27 23 17%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 559 505 11% 8 8 0% 567 513 11% 64 59 8%
DWP Rebates 80 92 (13%) - - - 80 92 (13%) 8 9 (11%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 639 597 7% 8 8 0% 647 605 7% 72 68 6%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With - 1 - - - - - 1 - - 0 -
Profit Bond
Life - Other 198 164 21% - - - 198 164 21% 20 16 25%
Individual 44 23 91% - - - 44 23 91% 4 2 100%
Annuities
Bulk Annuities 25 - - - - - 25 - - 3 - -
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 267 188 42% - - - 267 188 42% 27 19 42%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 25 19 32% 7 7 0% 32 26 23% 10 9 11%
Pensions
Corporate Pensions 66 105 (37%) 33 33 0% 99 138 (28%) 40 44 (9%)
Life - With 35 58 (40%) - - - 35 58 (40%) 4 6 (33%)
Profit Bond
Life - Other Bond 226 142 59% - - - 226 142 59% 23 14 64%
Life - Other 198 164 21% 1 1 0% 199 165 21% 21 17 24%
Individual 529 450 18% - - - 529 450 18% 53 45 18%
Annuities
Bulk Annuities 240 139 73% - - - 240 139 73% 24 14 71%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 1,319 1,077 22% 41 41 0% 1,360 1,118 22% 173 149 16%
DWP Rebates 314 344 (9%) - - - 314 344 (9%) 31 34 (9%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 1,633 1,421 15% 41 41 0% 1,674 1,462 15% 204 183 11%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European Insurance
Operations : (1b)
Insurance Products 39 19 105% - - - 39 19 105% 4 2 100%
Total European 39 19 105% - - - 39 19 105% 4 2 100%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 1,672 1,440 16% 41 41 0% 1,713 1,481 16% 208 185 12%
& European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (1b)
Fixed Annuities 165 332 (50%) - - - 165 332 (50%) 17 33 (48%)
Fixed Index 127 71 79% - - - 127 71 79% 13 7 86%
Annuities
Variable
Annuities 548 473 16% - - - 548 473 16% 55 47 17%
Life 4 1 300% 2 2 0% 6 3 100% 3 2 50%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total Retail 844 877 (4%) 2 2 0% 846 879 (4%) 87 90 (3%)
Guaranteed 50 19 163% - - - 50 19 163% 5 2 150%
Investment
Contracts
GIC - Medium 360 292 23% - - - 360 292 23% 36 29 24%
Term Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US 1,254 1,188 6% 2 2 0% 1,256 1,190 6% 128 121 6%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations : (1b)
China 1 3 (67%) 4 3 33% 5 6 (17%) 4 3 33%
Hong Kong 52 52 0% 17 16 6% 69 68 1% 22 21 5%
India (@26%) (6) 1 1 0% 18 11 64% 19 12 58% 18 11 64%
Indonesia 15 13 15% 7 9 (22%) 22 22 0% 9 10 (10%)
Japan 5 3 67% 1 2 (50%) 6 5 20% 2 2 0%
Korea 4 18 (78%) 27 13 108% 31 31 0% 27 15 80%
Malaysia 2 2 0% 12 8 50% 14 10 40% 12 8 50%
Singapore 45 50 (10%) 11 10 10% 56 60 (7%) 16 15 7%
Taiwan 24 10 140% 22 30 (27%) 46 40 15% 24 31 (23%)
Other (4) 2 2 0% 8 8 0% 10 10 0% 8 8 0%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian 151 154 (2%) 127 110 15% 278 264 5% 142 125 14%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group Total 3,077 2,782 11% 170 153 11% 3,247 2,935 11% 478 431 11%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2005
INVESTMENT OPERATIONS
Opening FUM Gross inflows Redemptions Net inflows Other Market & Net movement Closing FUM
movements currency in FUM
movements
£m £m £m £m £m £m £m £m
2005
M&G
Retail 11,613 801 (581) 220 - 33 253 11,866
Institutional (5) 17,092 1,291 (251) 1,040 69 (6) 1,103 18,195
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 28,705 2,092 (832) 1,260 69 27 1,356 30,061
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 2,144 2,699 (2,930) (231) (21) 47 (205) 1,939
Taiwan 1,797 730 (893) (163) - 50 (113) 1,684
Korea 1,426 672 (358) 314 (19) 78 373 1,799
Japan 1,638 430 (65) 365 - (71) 294 1,932
Other Mutual Fund 583 86 (174) (88) - (14) (102) 481
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 7,588 4,617 (4,420) 197 (40) 90 247 7,835
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 244 18 (6) 12 - (1) 11 255
Products (@36%) (6)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian 7,832 4,635 (4,426) 209 (40) 89 258 8,090
Investment
Operations
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 36,537 6,727 (5,258) 1,469 29 116 1,614 38,151
Products
----- ----- ----- ----- ----- ----- ----- -----
Opening FUM Gross inflows Redemptions Net inflows Other Market & Net movement Closing FUM
movements currency in FUM
movements
£m £m £m £m £m £m £m £m
2004
M&G
Retail 10,144 357 (364) (7) - 100 93 10,237
Institutional (5) 14,048 365 (1,244) (879) 98 154 (627) 13,421
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 24,192 722 (1,608) (886) 98 254 (534) 23,658
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 2,049 2,143 (2,326) (183) (20) 39 (164) 1,885
Taiwan 2,666 1,890 (1,717) 173 - 46 219 2,885
Korea 933 618 (459) 159 (5) (24) 130 1,063
Japan 411 103 (29) 74 - 2 76 487
Other Mutual Fund 341 138 (68) 70 - 10 80 421
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 6,400 4,892 (4,599) 293 (25) 73 341 6,741
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 196 17 (5) 12 - (2) 10 206
Products(@36%)(6)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian 6,596 4,909 (4,604) 305 (25) 71 351 6,947
Investment
Operations
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 30,788 5,631 (6,212) (581) 73 325 (183) 30,605
Products
----- ----- ----- ----- ----- ----- ----- -----
Opening FUM Gross inflows Redemptions Net inflows Other Market & Net movement Closing FUM
movements currency in FUM
movements
% % % % % % % %
2005 movement
relative to 2004
M&G
Retail 14% 124% (60%) 3243% - (67%) 172% 16%
Institutional (5) 22% 254% 80% 218% (30%) (104%) 276% 36%
----- ----- ----- ----- ----- ----- ----- -----
Total M&G 19% 190% 48% 242% (30%) (89%) 354% 27%
----- ----- ----- ----- ----- ----- ----- -----
Asia
India 5% 26% (26%) (26%) (5%) 21% (25%) 3%
Taiwan (33%) (61%) 48% (194%) - 9% (152%) (42%)
Korea 53% 9% 22% 97% (280%) 425% 187% 69%
Japan 299% 317% (124%) 393% - (3650%) 287% 297%
Other Mutual Fund 71% (38%) (156%) (226%) - (240%) (228%) 14%
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Asian Mutual 19% (6%) 4% (33%) (60%) 23% (28%) 16%
Fund Operations
----- ----- ----- ----- ----- ----- ----- -----
Hong Kong MPF 24% 6% (20%) 0% - 50% 10% 24%
Products (@ 36%)(6)
----- ----- ----- ----- ----- ----- ----- -----
Total Asian 19% (6%) 4% (31%) (60%) 25% (26%) 16%
Investment
Operations
----- ----- ----- ----- ----- ----- ----- -----
Total Investment 19% 19% 15% 353% (60%) (64%) 982% 25%
Products
----- ----- ----- ----- ----- ----- ----- -----
US (7) 2005 Q1 2004 Q1 +/- (%)
YTD YTD
£m £m
Curian Capital
External Funds 642 237 171%
under Administration
----- ----- -----
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2005 VERSUS QUARTER 4 2004 (8)
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q1 2005 Q4 2004 +/- (%) Q1 2005 Q4 2004 +/- (%) Q1 2005 Q4 2004 +/- (%) Q1 2005 Q4 2004 +/-(%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual 4 2 100% 2 2 0% 6 4 50% 2 2 0%
Pensions
Life -
With Profit 2 2 0% - - - 2 2 0% 0 0 -
Bond
Individual 167 166 1% - - - 167 166 1% 17 17 0%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 173 170 2% 2 2 0% 175 172 2% 19 19 0%
DWP Rebates 234 13 1700% - - - 234 13 1700% 23 1 2200%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 407 183 122% 2 2 0% 409 185 121% 43 20 115%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Business to
Business:
Corporate
Pensions 56 45 24% 31 33 (6%) 87 78 12% 37 38 (3%)
Individual 49 68 (28%) - - - 49 68 (28%) 5 7 (29%)
Annuities
Bulk 215 222 (3%) - - - 215 222 (3%) 22 22 0%
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 320 335 (4%) 31 33 (6%) 351 368 (5%) 63 67 (6%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Intermediated
Distribution :
Individual 21 10 110% 5 1 400% 26 11 136% 7 2 250%
Pensions
Corporate 10 7 43% 2 2 0% 12 9 33% 3 3 0%
Pensions
Life - With 33 43 (23%) - - - 33 43 (23%) 3 4 (25%)
Profit Bond
Life - 226 250 (10%) - - - 226 250 (10%) 23 25 (8%)
Other Bond
Life - - - - 1 1 0% 1 1 0% 1 1 0%
Other
Individual 269 326 (17%) - - - 269 326 (17%) 27 33 (18%)
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 559 636 (12%) 8 4 100% 567 640 (11%) 64 68 (6%)
DWP 80 (3) 2767% - - - 80 (3) 2767% 8 (0) -
Rebates
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 639 633 1% 8 4 100% 647 637 2% 72 67 7%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Partnerships :
Life - With - - - - - - - - - - - -
Profit Bond
Life - 198 214 (7%) - - - 198 214 (7%) 20 21 (5%)
Other
Individual 44 53 (17%) - - - 44 53 (17%) 4 5 (20%)
Annuities
Bulk 25 1,108 (98%) - - - 25 1,108 (98%) 3 111 (97%)
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 267 1,375 (81%) - - - 267 1,375 (81%) 27 138 (80%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total :
Individual 25 12 108% 7 3 133% 32 15 113% 10 4 150%
Pensions
Corporate 66 52 27% 33 35 (6%) 99 87 14% 40 40 0%
Pensions
Life - 35 45 (22%) - - - 35 45 (22%) 4 5 (20%)
With Profit
Bond
Life - 226 250 (10%) - - - 226 250 (10%) 23 25 (8%)
Other Bond
Life - 198 214 (7%) 1 1 0% 199 215 (7%) 21 22 (5%)
Other
Individual 529 613 (14%) - - - 529 613 (14%) 53 61 (13%)
Annuities
Bulk 240 1,330 (82%) - - - 240 1,330 (82%) 24 133 (82%)
Annuities
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-Total 1,139 2,516 (48%) 41 39 5% 1,360 2,555 (47%) 173 291 (41%)
DWP Rebates 314 10 3040% - - - 314 10 3040% 31 1 3000%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 1,633 2,526 (35%) 41 39 5% 1,674 2,565 (35%) 204 292 (30%)
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
European
Insurance
Operations : (8)
Insurance 39 18 117% - 1 - 39 19 105% 4 3 33%
Products
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 39 18 117% - 1 - 39 19 105% 4 3 33%
European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total UK 1,672 2,544 (34%) 41 40 3% 1,713 2,584 (34%) 208 294 (29%)
& European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
US Insurance
Operations : (8)
Fixed 165 282 (41%) - - - 165 282 (41%) 17 28 (39%)
Annuities
Fixed Index 127 136 (7%) - - - 127 136 (7%) 13 14 (7%)
Annuities
Variable 548 492 11% - - - 548 492 11% 55 49 12%
Annuities
Life 4 6 (33%) 2 3 (33%) 6 9 (33%) 3 4 (25%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Sub-total 844 916 (8%) 2 3 (33%) 846 919 (8%) 87 95 (8%)
Retail
Guaranteed 50 74 (32%) - - - 50 74 (32%) 5 7 (29%)
Investment
Contracts
GIC - 360 48 650% - - - 360 48 650% 36 5 620%
Medium Term
Note
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total US 1,254 1,038 21% 2 3 (33%) 1,256 1,041 21% 128 107 20%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Asian Insurance
Operations :
(8)
China 1 3 (67%) 4 5 (20%) 5 8 (38%) 4 5 (20%)
Hong Kong 52 94 (45%) 17 23 (26%) 69 117 (41%) 22 32 (31%)
India 1 1 0% 18 8 125% 19 9 111% 18 8 125%
(@26%) (6)
Indonesia 15 11 36% 7 8 (13%) 22 19 16% 9 9 0%
Japan 5 5 0% 1 2 (50%) 6 7 (14%) 2 3 (33%)
Korea 4 6 (33%) 27 20 35% 31 26 19% 27 21 29%
Malaysia 2 2 0% 12 22 (45%) 14 24 (42%) 12 22 (45%)
Singapore 45 45 0% 11 16 (31%) 56 61 (8%) 16 21 (24%)
Taiwan 24 24 0% 22 48 (54%) 46 72 (36%) 24 50 (52%)
Other (4) 2 2 0% 8 10 (20%) 10 12 (17%) 8 10 (20%)
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Asian 151 193 (22%) 127 162 (22%) 278 355 (22%) 142 181 (22%)
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Group 3,077 3,775 (18%) 170 205 (17%) 3,247 3,980 (18%) 478 583 (18%)
Total
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INVESTMENT OPERATIONS
M&G (5) Asia Mutual Funds Hong Kong MPF Products (6) Total Investment
Products
Q1 2005 Q4 2004 +/- (%) Q1 2005 Q4 2004 +/- (%) Q1 2005 Q4 2004 +/- (%) Q4 2005 Q4 2004 +/-(%)
£m £m £m £m £m £m £m £m
Opening 28,705 25,876 11% 7,588 6,540 16% 244 232 5% 36,537 32,648 12%
FUM
Gross 2,092 2,393 (13%) 4,617 5,051 (9%) 18 17 6% 6,727 7,460 (10%)
inflows
Less
redemptions (832) (1,006) 17% (4,420) (4,121) (7%) (6) (5) (20%) (5,258) (5,132) 2%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net flows 1,260 1,387 (9%) 197 930 (79%) 12 11 9% 1,469 2,328 (37%)
Other 69 122 (43%) (40) (11) (264%) - - - 29 111 (74%)
movements
Market and 27 1,321 (98%) 90 129 (30%) (1) 0 - 116 1,450 (92%)
currency
movements
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net 1,356 2,830 (52%) 247 1,048 (76%) 11 12 (8%) 1,614 3,889 (58%)
movement
in FUM
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Closing 30,061 28,705 5% 7,835 7,588 3% 255 244 5% 38,151 36,538 4%
FUM
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Notes to Schedules :
(1a) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson
National Life is 1.89. A comparison between the results at actual exchange rates
and at constant exchange rates is given in the press release.
(1b) Insurance and investment new business for overseas operations has been
calculated using average exchange rates. The applicable rate for Jackson
National Life is 1.89 (2004: 1.84).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions plus
10% single new business contributions, are subject to roundings.
(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% interest in the India
life operation. Mandatory Provident Fund (MPF) product sales in Hong Kong are
included at Prudential's 36% interest in the Hong Kong MPF operation.
(7) Balance sheet figures have been calculated at the closing exchange rate. The
2004 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 at successive quarters and will include
foreign exchange movements from earlier periods.
This information is provided by RNS
The company news service from the London Stock Exchange
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