2006 Full Year NBF Part 3
Prudential PLC
29 January 2007
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 +/-( %) Q4 2006 Q 3 +/- (%)
2006 (%) 2006 2006
£m £m £m £m £m £m £m £m
UK Insurance
Operations
Direct to Customer
Individual Pensions 4 2 100% 2 1 100% 6 3 100% 2 1 100%
Life - With Profit 7 6 17% - - - 7 6 17% 1 1 0%
Bond
Life - Other 10 4 150% - - - 10 4 150% 1 - -
Individual Annuities 205 199 3% - - - 205 199 3% 21 20 5%
Sub-Total 226 211 7% 2 1 100% 228 212 8% 25 22 14%
DWP Rebates - - - - - - - - - - - -
Total 226 211 7% 2 1 100% 228 212 8% 25 22 14%
Business to Business
Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 78 46 70%
Individual Annuities 91 71 28% - - - 91 71 28% 9 7 29%
Bulk Annuities 40 22 82% - - - 40 22 82% 4 2 100%
Total 457 125 266% 45 43 5% 502 168 199% 91 56 63%
Intermediated
Distribution
Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 6 6 0%
Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 2 2 0%
Life - With Profit 60 50 20% - - - 60 50 20% 6 5 20%
Bond
Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 13 13 0%
Life - Other 29 19 53% - 1 - 29 20 45% 3 3 0%
Individual Annuities 368 192 92% - - - 368 192 92% 37 19 95%
Total 614 409 50% 5 7 (29%) 619 416 49% 66 48 38%
Partnerships
Individual Pensions (1) - - - - - (1) - - - - -
Life - With Profit 13 5 160% - - - 13 5 160% 1 1 0%
Bond
Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 2 3 (33%)
Life - Other 201 180 12% 1 1 0% 202 181 12% 21 19 11%
Individual Annuities 171 280 (39%) - - - 171 280 (39%) 17 28 (39%)
Bulk Annuities - (32) - - - - - (32) - - (3) - -
Reinsurance from
Scot Am Insurance
Fund
Bulk Annuities 123 - - - - - 123 - - 12 - -
Total 491 490 0% 1 1 0% 492 491 0% 50 50 0%
Total:
Individual Pensions 23 13 77% 6 6 0% 29 19 53% 8 7 14%
Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 80 48 67%
Life - With Profit 80 61 31% - - - 80 61 31% 8 6 33%
Bond
Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 14 15 (7%)
Life - Other 240 203 18% 1 2 (50%) 241 205 18% 25 22 14%
Individual Annuities 835 742 13% - - - 835 742 13% 84 74 14%
Bulk Annuities 131 22 495% - - - 131 22 495% 13 2 550%
1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32%
DWP Rebates - - - - - - - - - - - -
Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32%
Operations
European Insurance
Operations
Insurance Products 44 33 33% - - - 44 33 33% 4 3 33%
Total European 44 33 33% - - - 44 33 33% 4 3 33%
Insurance Operations
Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 236 179 32%
Unsurance Operations
US Insurance
Operations (8)
Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 17 20 (15%)
Fixed Index 118 144 (18%) - - - 118 144 (18%) 12 14 (14%)
Annuities
Variable Annuities 1,010 922 10% - - - 1,010 922 10% 101 92 10%
Life 2 2 0% 4 4 0% 6 6 0% 4 4 0%
Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 134 131 2%
Guaranteed 133 15 787% - - - 133 15 787% 13 2 550%
Investment Contracts
GIC - Medium Term (6) 105 (106%) - - - (6) 105 (106%) (1) 11 (109%)
Note
Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 147 143 3%
Operations
Asian Insurance
Operations (8)
China 5 5 0% 15 8 88% 20 13 54% 16 9 78%
Hong Kong 131 85 54% 35 26 35% 166 111 50% 48 35 37%
India (6) 6 3 100% 28 22 27% 34 25 36% 29 22 32%
Indonesia 14 6 133% 22 18 22% 36 24 50% 23 19 21%
Japan 27 19 42% 3 2 50% 30 21 43% 6 4 50%
Korea 27 18 50% 53 52 2% 80 70 14% 56 54 4%
Malaysia 1 1 0% 23 18 28% 24 19 26% 23 18 28%
Singapore 87 65 34% 25 18 39% 112 83 35% 34 25 36%
Taiwan 34 11 209% 33 32 3% 67 43 56% 36 33 9%
Other (4) 6 3 100% 11 8 38% 17 11 55% 12 8 50%
Total Asian 338 216 56% 248 204 22% 586 420 40% 282 226 25%
Insurance Operations
Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 665 548 21%
INVESTMENT OPERATIONS
M&G Asian Retail Mutual Asia Third Party Total Investment
Funds Products
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 2006 +/-(%) Q4 2006 Q 3 +/-(%)
2006 (%) 2006
£m £m £m £m £m £m
Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17%
Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%)
Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44%
Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%)
Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103%
Movements
Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62%
Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7%
Schedule 5 - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia Total
(1a)
FY 2006 FY 2005 +/- (%) FY FY 2005 +/- FY 2006 FY 2005 +/-(%) FY 2006 FY 2005 +/-
2006 (%) (%)
£m £m £m £m £m £m £m £m
Total Insurance Products 7,192 7,192 0% 5,981 4,958 21% 1,921 1,491 29% 15,094 13,641 11%
Total Investment Products 13,486 7,916 70% - - - 20,408 18,049 13% 33,894 25,965 31%
- Gross Inflows (2)
Group Total 20,678 15,108 37% 5,981 4,958 21% 22,329 19,540 14% 48,988 39,606 24%
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%) (%)
£m £m £m £m £m £m £m £m
UK Insurance Operations
(11)
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%)
Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 29 17 71%
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180%
Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39%
Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%)
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%)
Life - With Profit Bond 202 159 27% - - - 202 159 27% 202 159 27%
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%)
Partnerships
Individual Pensions 1 - - - - - 1 - - 1 - -
Life - With Profit Bond 24 - - - - - 24 - - 24 - -
Life - Other Bond 117 - - - - - 117 - - 117 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%)
Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142%
Bulk Annuities - 560 - - - - - 560 - - 560 - -
Reinsurance from Scot Am
Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35%
Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 255 176 45%
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0%
Operations
European Insurance
Operations (1a)
Insurance Products 159 200 (21%) - - - 159 200 (21%) 159 200 (21%)
Total European Insurance 159 200 (21%) - - - 159 200 (21%) 159 200 (21%)
Operations
Total UK & Europe 6,991 7,001 (0%) 201 191 5% 7,192 7,192 0% 7,712 7,717 (0%)
Insurance Operations
US Insurance Operations
(1a)
Fixed Annuities 688 777 (11%) - - - 688 777 (11%) 688 777 (11%)
Fixed Index Annuities 554 608 (9%) - - - 554 608 (9%) 554 608 (9%)
Variable Annuities 3,819 2,572 48% - - - 3,819 2,572 48% 3,819 2,572 48%
Life 8 11 (27%) 17 14 21% 25 25 0% 147 134 10%
Sub-Total Retail 5,069 3,968 28% 17 14 21% 5,086 3,982 28% 5,208 4,091 27%
Guaranteed Investment 458 350 31% - - - 458 350 31% 458 350 31%
Contracts
GIC - Medium Term Note 437 626 (30%) - - - 437 626 (30%) 437 627 (30%)
Total US Insurance 5,964 4,944 21% 17 14 21% 5,981 4,958 21% 6,103 5,068 20%
Operations
Asian Insurance
Operations (1a)
China 27 17 59% 36 23 57% 63 40 58% 198 146 36%
Hong Kong 355 285 25% 103 81 27% 458 366 25% 933 732 27%
India (6) 20 4 400% 105 55 91% 125 59 112% 411 207 99%
Indonesia 31 44 (30%) 71 44 61% 102 88 16% 269 195 38%
Japan 68 28 143% 7 3 133% 75 31 142% 97 47 106%
Korea 103 31 232% 208 139 50% 311 170 83% 1,130 613 84%
Malaysia 4 9 (56%) 72 67 7% 76 76 0% 418 391 7%
Singapore 357 293 22% 72 59 22% 429 352 22% 803 728 10%
Taiwan 92 121 (24%) 139 145 (4%) 231 266 (13%) 743 889 (16%)
Other (4) 15 9 67% 36 34 6% 51 43 19% 130 127 2%
Total Asian Insurance 1,072 841 27% 849 650 31% 1,921 1,491 29% 5,132 4,075 26%
Operations
Group Total 14,027 12,786 10% 1,067 855 25% 15,094 13,641 11% 18,947 16,860 12%
Schedule 6 - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
FY 2006 FY 2005 +/-(%) FY FY 2005 +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%)
£m £m £m £m £m £m £m £m
Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10%
Products
Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29%
Products - Gross
Inflows (2)
Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22%
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%) (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations (11)
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%)
Life - With Profit 23 15 53% 1 1 0% 24 16 50% 29 17 71%
Bond
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180%
Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39%
Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%)
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%)
Life - With Profit 202 159 27% - - - 202 159 27% 202 159 27%
Bond
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%)
Partnerships
Individual Pensions 1 - - - - - 1 - - 1 - -
Life - With Profit 24 - - - - - 24 - - 24 - -
Bond
Life - Other Bond 117 - - - - - 117 - - 117 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%)
Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142%
Bulk Annuities - 560 - - - - - 560 - - 560 - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35%
Life - With Profit 249 174 43% 1 1 0% 250 175 43% 255 176 45%
Bond
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0%
Operations
European Insurance
Operations
Insurance Products 159 201 (21%) - - - 159 201 (21%) 159 201 (21%)
Total European 159 201 (21%) - - - 159 201 (21%) 159 201 (21%)
Insurance Operations
Total UK & Europe 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 7,712 7,718 (0%)
Insurance Operations
US Insurance
Operations (1b)
Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 688 788 (13%)
Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 554 616 (10%)
Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 3,819 2,605 47%
Life 8 11 (27%) 17 14 21% 25 25 0% 147 136 8%
Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 5,208 4,145 26%
Guaranteed Investment 458 355 29% - - - 458 355 29% 458 355 29%
Contracts
GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 437 635 (31%)
Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 6,103 5,135 19%
Operations
Asian Insurance
Operations (1b)
China 27 17 59% 36 23 57% 63 40 58% 198 144 38%
Hong Kong 355 289 23% 103 83 24% 458 372 23% 933 741 26%
India (6) 20 4 400% 105 57 84% 125 61 105% 411 215 91%
Indonesia 31 42 (26%) 71 42 69% 102 84 21% 269 186 45%
Japan 68 30 127% 7 4 75% 75 34 121% 97 50 94%
Korea 103 29 255% 208 132 58% 311 161 93% 1,130 578 96%
Malaysia 4 9 (56%) 72 66 9% 76 75 1% 418 383 9%
Singapore 357 284 26% 72 58 24% 429 342 25% 803 704 14%
Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 743 912 (19%)
Other (4) 15 9 67% 36 33 9% 51 42 21% 130 126 3%
Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 5,132 4,039 27%
Operations
Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 18,947 16,892 12%
Schedule 7
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 4 2005
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
Q4 Q4 2005 +/-(%) Q4 Q4 2005 +/- Q4 Q4 +/-(%) Q4 Q4 +/-(%)
2006 2006 (%) 2006 2005 2006 2005
£m £m £m £m £m £m £m £m
UK Insurance Operations
Direct to Customer
Individual Pensions 4 2 100% 2 2 0% 6 4 50% 10 10 0%
Life - With Profit Bond 7 4 75% - - - 7 4 75% 9 5 80%
Life - Other 10 2 400% - - - 10 2 400% 11 6 83%
Individual Annuities 205 178 15% - - - 205 178 15% 205 177 16%
Sub-Total 226 186 22% 2 2 0% 228 188 21% 235 198 19%
DWP Rebates - 10 - - - - - 10 - - 10 -
Total 226 196 15% 2 2 0% 228 198 15% 235 208 13%
Business to Business
Corporate Pensions 326 81 302% 45 54 (17%) 371 135 175% 410 236 74%
Individual Annuities 91 61 49% - - - 91 61 49% 91 61 49%
Bulk Annuities 40 98 (59%) - - - 40 98 (59%) 40 98 (59%)
Total 457 240 90% 45 54 (17%) 502 294 71% 541 395 37%
Intermediated Distribution
Individual Pensions 20 15 33% 4 4 0% 24 19 26% 43 27 59%
Corporate Pensions 12 11 9% 1 1 0% 13 12 8% 17 15 13%
Life - With Profit Bond 60 40 50% - - - 60 40 50% 60 40 50%
Life - Other Bond 125 265 (53%) - - - 125 265 (53%) 125 265 (53%)
Life - Other 29 2 1,350% - 2 - 29 4 625% 39 13 200%
Individual Annuities 368 209 76% - - - 368 209 76% 368 210 75%
Total 614 542 13% 5 7 (29%) 619 549 13% 652 570 14%
Partnerships
Individual Pensions (1) - - - - - (1) - - (1) - -
Life - With Profit Bond 13 - - - - - 13 - - 13 - -
Life - Other Bond 16 - - - - - 16 - - 16 - -
Life - Other 201 185 9% 1 1 0% 202 186 9% 207 194 7%
Individual Annuities 171 149 15% - - - 171 149 15% 171 149 15%
Bulk Annuities - (32) - - - - - (32) - - (32) - -
Reinsurance from Scot Am
Insurance Fund
Bulk Annuities 123 - - - - - 123 - - 123 - -
Total 491 334 47% 1 1 0% 492 335 47% 497 343 45%
Total:
Individual Pensions 23 17 35% 6 6 0% 29 23 26% 52 37 41%
Corporate Pensions 338 92 267% 46 55 (16%) 384 147 161% 427 251 70%
Life - With Profit Bond 80 44 82% - - - 80 44 82% 82 45 82%
Life - Other Bond 141 265 (47%) - - - 141 265 (47%) 141 265 (47%)
Life - Other 240 189 27% 1 3 (67%) 241 192 26% 257 213 21%
Individual Annuities 835 597 40% - - - 835 597 40% 835 597 40%
Bulk Annuities 131 98 34% - - - 131 98 34% 131 98 34%
1,788 1,302 37% 53 64 (17%) 1,841 1,366 35% 1,925 1,506 28%
DWP Rebates - 10 - - - - - 10 - - 10 -
Total UK Insurance 1,788 1,312 36% 53 64 (17%) 1,841 1,376 34% 1,925 1,516 27%
Operations
European Insurance
Operations
Insurance Products 44 47 (6%) - - - 44 47 (6%) 44 47 (6%)
Total European Insurance 44 47 (6%) - - - 44 47 (6%) 44 47 (6%)
Operations
Total UK and Europe 1,832 1,359 35% 53 64 (17%) 1,885 1,423 32% 1,969 1,563 26%
Unsurance Operations
US Insurance Operations (8)
Fixed Annuities 171 149 15% - - - 171 149 15% 171 149 15%
Fixed Index Annuities 118 155 (24%) - - - 118 155 (24%) 118 155 (24%)
Variable Annuities 1,010 735 37% - - - 1,010 735 37% 1,010 735 37%
Life 2 3 (33%) 4 4 0% 6 7 (14%) 43 37 16%
Sub-Total Retail 1,301 1,042 25% 4 4 0% 1,305 1,046 25% 1,342 1,076 25%
Guaranteed Investment 133 49 171% - - - 133 49 171% 133 49 171%
Contracts
GIC - Medium Term Note (6) 9 (167%) - - - (6) 9 (167%) (6) 9 (167%)
Total US Insurance 1,428 1,100 30% 4 4 0% 1,432 1,104 30% 1,469 1,134 30%
Operations
Asian Insurance Operations
(8)
China 5 8 (38%) 15 8 88% 20 16 25% 60 49 22%
Hong Kong 131 88 49% 35 28 25% 166 116 43% 324 257 26%
India (6) 6 1 500% 28 16 75% 34 17 100% 148 59 151%
Indonesia 14 6 133% 22 13 69% 36 19 89% 87 41 112%
Japan 27 11 145% 3 - - 30 11 173% 42 13 223%
Korea 27 18 50% 53 41 29% 80 59 36% 400 173 131%
Malaysia 1 1 0% 23 20 15% 24 21 14% 136 123 11%
Singapore 87 90 (3%) 25 19 32% 112 109 3% 237 235 1%
Taiwan 34 29 17% 33 40 (18%) 67 69 (3%) 143 245 (42%)
Other (4) 6 2 200% 11 9 22% 17 11 55% 31 32 (3%)
Total Asian Insurance 338 254 33% 248 194 28% 586 448 31% 1,608 1,227 31%
Operations
Group Total 3,598 2,713 33% 305 262 16% 3,903 2,975 31% 5,046 3,924 29%
INVESTMENT OPERATIONS
M&G Asia Retail Mutual Asia Third Party Total Investment
Funds Products
Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-
2006 2005 (%)
£m £m £m £m £m £m
Opening FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24%
Gross Inflows 3,505 2,316 51% 5,673 4,075 39% 40 2 1,900% 9,218 6,393 44%
Less Redemptions (2,514) (1,189) (111%) (4,734) (3,690) (28%) (4) (3) (33%) (7,252) (4,882) (49%)
Net Flows 991 1,127 (12%) 939 385 144% 36 (1) 3,700% 1,966 1,511 30%
Other Movements (6) (74) 92% (34) (6) (467%) - - - (40) (80) 50%
Market And Currency 1,703 1,382 23% 112 459 (76%) 46 23 100% 1,861 1,864 (0%)
Movements
Net Movements in FUM 2,688 2,435 10% 1,017 838 21% 82 22 273% 3,787 3,295 15%
Closing FUM 44,946 36,195 24% 11,413 9,443 21% 840 691 22% 57,199 46,329 23%
Schedule 8
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
Q4 2006 Q 3 +/- (%) Q4 Q 3 2006 +/- Q4 Q 3 +/- Q4 Q 3 +/- (%)
2006 2006 (%) 2006 2006 (%) 2006 2006
£m £m £m £m £m £m £m £m
UK Insurance Operations
Direct to Customer
Individual Pensions 4 2 100% 2 1 100% 6 3 100% 10 8 25%
Life - With Profit Bond 7 6 17% - - - 7 6 17% 9 9 0%
Life - Other 10 4 150% - - - 10 4 150% 11 8 38%
Individual Annuities 205 199 3% - - - 205 199 3% 205 199 3%
Sub-Total 226 211 7% 2 1 100% 228 212 8% 235 224 5%
DWP Rebates - - - - - - - - - - - -
Total 226 211 7% 2 1 100% 228 212 8% 235 224 5%
Business to Business
Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 410 209 96%
Individual Annuities 91 71 28% - - - 91 71 28% 91 71 28%
Bulk Annuities 40 22 82% - - - 40 22 82% 40 22 82%
Total 457 125 266% 45 43 5% 502 168 199% 541 302 79%
Intermediated
Distribution
Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 43 45 (4%)
Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 17 23 (26%)
Life - With Profit Bond 60 50 20% - - - 60 50 20% 60 50 20%
Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 125 128 (2%)
Life - Other 29 19 53% - 1 - 29 20 45% 39 27 44%
Individual Annuities 368 192 92% - - - 368 192 92% 368 192 92%
Total 614 409 50% 5 7 (29%) 619 416 49% 652 465 40%
Partnerships
Individual Pensions (1) - - - - - (1) - - (1) 1 (200%)
Life - With Profit Bond 13 5 160% - - - 13 5 160% 13 5 160%
Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 16 25 (36%)
Life - Other 201 180 12% 1 1 0% 202 181 12% 207 189 10%
Individual Annuities 171 280 (39%) - - - 171 280 (39%) 171 280 (39%)
Bulk Annuities - (32) - - - - - (32) - - (32) - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 123 - - - - - 123 - - 123 - -
Total 491 490 0% 1 1 0% 492 491 0% 497 500 (1%)
Total:
Individual Pensions 23 13 77% 6 6 0% 29 19 53% 52 54 (4%)
Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 427 232 84%
Life - With Profit Bond 80 61 31% - - - 80 61 31% 82 64 28%
Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 141 153 (8%)
Life - Other 240 203 18% 1 2 (50%) 241 205 18% 257 224 15%
Individual Annuities 835 742 13% - - - 835 742 13% 835 742 13%
Bulk Annuities 131 22 495% - - - 131 22 495% 131 22 495%
1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29%
DWP Rebates - - - - - - - - - - - -
Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29%
Operations
European Insurance
Operations
Insurance Products 44 33 33% - - - 44 33 33% 44 33 33%
Total European 44 33 33% - - - 44 33 33% 44 33 33%
Insurance Operations
Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 1,969 1,524 29%
Unsurance Operations
US Insurance Operations
(8)
Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 171 204 (16%)
Fixed Index Annuities 118 144 (18%) - - - 118 144 (18%) 118 144 (18%)
Variable Annuities 1,010 922 10% - - - 1,010 922 10% 1,010 922 10%
Life 2 2 0% 4 4 0% 6 6 0% 43 35 23%
Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 1,342 1,305 3%
Guaranteed Investment 133 15 787% - - - 133 15 787% 133 15 787%
Contracts
GIC - Medium Term Note (6) 105 (106%) - - - (6) 105 (106%) (6) 105 (106%)
Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 1,469 1,425 3%
Operations
Asian Insurance
Operations (8)
China 5 5 0% 15 8 88% 20 13 54% 60 50 20%
Hong Kong 131 85 54% 35 26 35% 166 111 50% 324 248 31%
India (6) 6 3 100% 28 22 27% 34 25 36% 148 86 72%
Indonesia 14 6 133% 22 18 22% 36 24 50% 87 66 32%
Japan 27 19 42% 3 2 50% 30 21 43% 42 26 62%
Korea 27 18 50% 53 52 2% 80 70 14% 400 238 68%
Malaysia 1 1 0% 23 18 28% 24 19 26% 136 97 40%
Singapore 87 65 34% 25 18 39% 112 83 35% 237 176 35%
Taiwan 34 11 209% 33 32 3% 67 43 56% 143 180 (21%)
Other (4) 6 3 100% 11 8 38% 17 11 55% 31 32 (3%)
Total Asian Insurance 338 216 56% 248 204 22% 586 420 40% 1,608 1,199 34%
Operations
Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 5,046 4,148 22%
INVESTMENT OPERATIONS
M&G Asia Retail Mutual Asia Third Party Total Investment Products
Funds
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 +/- Q4 Q 3 +/-(%) Q4 2006 Q 3 +/-(%)
2006 2006 (%) 2006 2006 2006
£m £m £m £m £m £m
Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17%
Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%)
Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44%
Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%)
Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103%
Movements
Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62%
Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7%
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 schedules include a bulk annuity transaction with the Scottish Amicable
Insurance Fund (SAIF). The transaction reflects the arrangement entered into in
June 2006 for the reinsurance of non-profit immediate pension annuity
liabilities of SAIF to Prudential Retirement Income Limited (PRIL), a
shareholder owned subsidiary of the Group. SAIF is a closed ring-fenced sub-fund
of the PAC long-term fund established by a Court approved Scheme of Arrangement
in October 1997, which is solely for the benefit of SAIF policyholders.
Shareholders have no interest in the profits of this fund, although they are
entitled to investment manangement fees on this business. The inclusion of the
transaction between SAIF and PRIL as new business reflects the transfer from
SAIF policyholders to Prudential shareholders' funds of longevity risk, the
requirement to set aside supporting capital, and entitlement to surpluses
arising on this block of business arising from the reinsurance arrangement.
Adjustments of £3m have been made to the SAIF reinsurance premium previously
reported at £59m at Q2 2006, due to a revaluation of the assets.
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 - 8
(1a) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson is
1.84.
(1b) Insurance and investment new business for overseas operations has been
calculated using average exchange rates. The applicable rate for Jackson is
1.84 (2005: 1.82).
(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
2005 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) £289m 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.
(11) The 2005 UK PVNBP result as been adjusted by £125m from £7,593m to £7,718m
due to a change in methodology for certain classes of business
This information is provided by RNS
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