3rd Qtr 2000 New Bus. Results

Prudential PLC
17 October 2000

PRUDENTIAL PLC THIRD QUARTER 2000 NEW BUSINESS RESULTS

- Record group insurance and investment sales in excess of £9.8 billion
- International sales account for 53 per cent, up from 40 per cent in 1999
- Jackson National Life new insurance premiums up 20 per cent to £3.9 billion
- Asia insurance and investment sales more than double 1999 levels at £1.3
  billion
- M&G investment sales up 19 per cent at £236 million in the quarter
- Prudential to reduce charges for existing pensions customers in the UK

Prudential plc reported record insurance and investment sales on an annual
premium equivalent basis of £1.3 billion in the first nine months of 2000 with
growth of five per cent over prior year.  Total group insurance and investment
premiums were £9.8 billion.

In the United States, Jackson National Life continued to grow strongly with
new insurance sales increasing 20 per cent on the first nine months of 1999.
Variable annuity sales have performed particularly well, up 50 per cent at
£1.4 billion.

In Asia, new insurance premiums for the first nine months of 2000 were 84 per
cent ahead of prior year at £328 million with significant contributions from
Prudential's new operations in Vietnam and Taiwan.  Net mutual fund sales in
India were 46 per cent ahead of prior year at £313 million.

M&G's investment sales in the quarter were up 19 per cent on the third quarter
1999 at £236 million, reflecting a strong recovery in sales of equity based
products.

Egg continues to perform strongly acquiring more than 120,000 new customers in
the quarter and increasing retail assets to £3.4 billion, including credit
card balances of £736 million.

Prudential group chief executive, Jonathan Bloomer, commented:

'Our new business figures reflect the benefits of our international
diversification. We continue to enjoy significant sales growth in the US.  In
Asia, where sales have more than doubled, we have made significant progress in
our strategic objective of expanding our product range and customer base with
two major initiatives: the acquisition of a controlling interest in a unit
trust business in Taiwan; and the start of trading by our life insurance joint
venture in China.

We continue to implement low cost business models for our UK insurance
businesses, ensuring we operate profitably as a leader in the stakeholder
market and build on our success at being selected to run the TUC stakeholder
scheme.  We are also announcing today that existing personal pensions
customers will benefit from lower charges from April 2001.'

Jackson National Life

Single premium insurance sales at Jackson National Life were up 20 per cent on
prior year at £3.9 billion reflecting record annuity sales, 39 per cent above
the first nine months of 1999 at £2.5 billion.

Fixed annuity sales were particularly strong in a competitive market at £792
million, 39 per cent above prior year, reflecting increased sales of the
Target Select product and the impact of higher interest rates this year.

Variable annuity sales reached record levels for the first nine months of the
year at £1.4 billion, 50 per cent above prior year and £222 million ahead of
full year sales in 1999, due to Jackson's successful marketing strategies and
continuing consumer demand for equity based products.  Jackson is in 18th
position in the large and competitive variable annuity market, up from 23rd at
the end of 1999.

Jackson National Life recently completed the purchases of Highland Bancorp and
IFC Holdings, continuing the expansion of its product lines, distribution
channels and customer base in the US.

Asia

New insurance and investment sales were more than double the same period last
year at £1.3 billion.

Total insurance sales increased 84 per cent to £328 million reflecting strong
sales of single premium linked business in Singapore and the inclusion of £56
million of sales from Taiwan and Vietnam.  Single premium linked sales in
Singapore were more than four times prior year at £65 million.  During the
quarter there have been a number of product launches, including a new internet
product in Singapore and three new funds in Malaysia.

In India, net mutual fund sales increased 46 per cent ahead of the first nine
months of 1999 at £313 million.

UK Operations

M&G

Investment sales in the quarter of £236 million were up 19 per cent on the
third quarter of 1999.  This reflects successful product launches and improved
equity fund performance, with the new Innovator and Global Technology funds
performing particularly well.  M&G has enjoyed a recovery in sales across its
equity based products, notably Managed Growth, and also maintained its
leadership in the fixed income market although corporate bonds have proved
less popular with investors this year.  In the first nine months of 2000, M&G
investment sales were £871 million, in line with the same period last year, as
the strong increase in equity sales offset reduced fixed income sales.

UK Insurance Operations

Excluding exceptional bulk annuity sales of £1.1 billion in July 1999,
insurance and investment sales via intermediaries were down 12 per cent on the
exceptional levels of 1999, to £2.1 billion, principally as a result of lower
with profits bond sales partially offset by higher individual pension sales.

Total insurance and investment sales via Prudential Financial Services were 18
per cent down on the first nine months of 1999 at £1.6 billion.  Significant
and sustained progress has been made in improving consultant productivity.
Prudential continues to implement low cost business models, ensuring it
operates profitably as a leader in the new stakeholder environment. Prudential
has enjoyed significant success in attracting existing large group pensions
clients to its new e-commerce platform.

Egg

Egg continued to build the asset side of its balance sheet in the first nine
months of the year.  The mortgage book now stands at £2.3 billion and Egg
credit card balances have reached £736 million.  The personal loan book grew
to £391 million following record disbursements of £109 million in the quarter.

Retail deposits now stand at £7.3 billion with a net outflow of funds for Egg
in the quarter of £443 million. The deposit customer base however, remains
stable with 75,000 new accounts opened in the first nine months of the year.
Seventy-four per cent of deposit servicing transactions are performed online.

Egg now has 1.2 million customers, including almost 600,000 credit card
customers.

Pensions Pricing

Prudential announces today that its stakeholder proposition will be
accompanied by lower charges for existing pension customers.

From April 2001 customers who hold personal pension plans can expect to
benefit, on the Personal Investment Authority's mid rate illustration basis,
from future charges of less than one per cent per annum.

Prudential will also be offering its employers who have group defined
contribution schemes, a number of propositions including a new product range,
to move their scheme into the stakeholder environment.  By using Prudential's
new e-commerce platform, employers can offer their employees the benefit of
charges of one per cent or less.

Europe

Sales by Prudential Europe were 35 per cent above prior year levels at £27
million.  Sales in Germany have benefited from the commencement of sales
through our joint venture with Signal Iduna.

Notes to Editors:

1.   Annual premium equivalent sales comprise regular premium sales plus one
     tenth of single premium sales.

2.   Financial Calendar

Full year new business results           - Thursday 18 January 2001
Announcement of 2000 full year results   - Thursday 22 February 2001
Ex-dividend date for 2000 final dividend - Wednesday 28 March 2001
Annual General Meeting                   - Thursday 10 May 2001
Payment of final dividend                - Wednesday 30 May 2001

For further information please contact:

Media                                  Analysts

Geraldine Davies       020 7548 3911   Rebecca Burrows      020 7548 3537
Tina Christou          020 7548 3719
Stuart Blackmore       020 7548 3520

Prudential plc - 2000 new business premiums - Quarter 3

Schedule 1

                     Single       Regular    Total Premiums        APE
                   2000  1999   2000  1999  2000  1999 +/-(%) 2000 1999 +/-(%)
                    £m    £m     £m    £m    £m    £m           £m   £m

Prudential Financial
Services:
Individual Pensions  24     26    27    40     51     66 (23%)   29   43 (33%)
Corporate Pensions  444    425    70    76    514    501   3%   114  119  (4%)
Life                394    664    22    40    416    704 (41%)   61  106 (42%)
Annuities           448    523     -     -    448    523 (14%)   45   52 (13%)
Investment Products  35     33    10     6     45     39  15%    14    9  56%
Sub-total         1,345  1,671   129   162  1,474  1,833 (20%)  264  329 (20%)
DSS Rebates         175    175     -     -    175    175   0%    18   18   0%
Total(Schedule 2) 1,520  1,846   129   162  1,649  2,008 (18%)  281  347 (19%)

M&G:
Individual Pensions  25     32     2     1     27     33 (18%)    5    4  25%
Life                  1      7     -     1      1      8 (88%)    0    2(100%)
Investment Products 859    336    12     6    871    342 155%    98   40 145%
Total               885    375    14     8    899    383 135%   103   46 124%

Prudential Intermediated
Businesses:
Individual
Pensions            148    121    39    26    187    147  27%    54   38  42%
Corporate Pensions   74     83    12    10     86     93  (8%)   19   18   6%
Life              1,257  1,537    27    54  1,284  1,591 (19%)  153  208 (26%)
Annuities           457  1,533     -     -    457  1,533 (70%)   46  153 (70%)
Investment Products  24     39     2     2     26     41 (37%)    4    6 (33%)
Sub-total         1,960  3,313    80    92  2,040  3,405 (40%)  276  423 (35%)
DSS Rebates          51     50     -     -     51     50   2%     5    5   0%
Total (schedule 2)2,011  3,363    80    92  2,091  3,455 (39%)  281  428 (34%)

Total UK Operations:
Individual Pensions 197    179    68    67    265   246    8%    88   85   4%
Corporate Pensions  518    508    82    86    600   594    1%   134  137  (2%)
Life              1,652  2,208    49    95  1,701 2,303  (26%)  214  316 (32%)
Annuities           905  2,056     -     -    905 2,056  (56%)   91  206 (56%)
Investment Products 918    408    24    14    942   422  123%   116   55  111%
Sub-Total         4,190  5,359   223   262  4,413 5,621  (21%)  642  798 (20%)
DSS Rebates         226    225     -     -    226   225    0%    23   23   0%
Total UK
Operations        4,416  5,584   223   262  4,639 5,846  (21%)  665  820 (19%)

Jackson National Life:
Fixed Annuities     792    570     -     -    792   570   39%    79   57  39%
Equity Linked
Index Annuities     335    313     -     -    335   313    7%    34   31  10%
Variable
Annuities         1,409    938     -     -  1,409   938   50%   141   94  50%
Guaranteed Investment
Contracts           256    962     -     -    256   962  (73%)   26   96 (73%)
GIC - European
Medium term Note  1,079    440     -     -  1,079   440  145%   108   44 145%
Life                  -      -    19    18     19    18    6%    19   18   6%
Sub-Total         3,871  3,223    19    18  3,890 3,241   20%   406  340  19%

Prudential Asia:
Insurance Products  188    116   140    61    328   177   85%   159   73  118%
Investment Products 952    382     -     -    952   382  149%    95   38  150%
Sub-Total         1,140    498   140    61  1,280   559  129%   254  111  129%

Prudential Europe:
Individual Pensions   4      4    12     8     16    12   33%    12    8   50%
Investment Products   7      5     4     3     11     8   38%     5    4   25%
Sub-total            11      9    16     11     27    20   35%    17   12  42%

Group Total:
Insurance
Products          7,561  8,519   370   335  7,931 8,854 (10%) 1,126 1,187 (5%)
Investment
Products          1,877    795    28    17  1,905   812 135%    216    97 123%
Group Total       9,438  9,314   398   352  9,836 9,666   2%  1,342 1,283   5%

                  2000    1999   +/-%
                   £m      £m

UK Banking Products
Egg               6,815  7,031   (3%)
Prudential
Banking             435    640  (32%)
_____________________________________
Total Deposit
Liabilities       7,250  7,671   (5%)
_____________________________________

Mortgage Book     2,291  1,373   67%
Personal Loans Book 391    162  141%
Credit card
Receivables         736      -
_____________________________________
Total Retail
Assets            3,418  1,535  123%
_____________________________________

US Banking Products
Total Deposit
Liabilities         472     65  626%
Retail Assets       569     73  679%


General Insurance
UK Gross Premiums
Written             251    242    4%


Schedule 2
                     Single       Regular    Total Premiums        APE
                   2000  1999   2000  1999  2000  1999 +/-(%) 2000 1999 +/-(%)
                    £m    £m     £m    £m    £m    £m           £m   £m

UK Operations
Prudential Financial Services

Retail:
Individual Pensions  24     26    27    40     51     66 (23%)   29   43 (33%)
Corporate Pensions    1      4    15    30     16     34 (53%)   15   30 (50%)
Life                394    664    22    40    416    704 (41%)   61  106 (42%)
Annuities           338    419     -     -    338    419 (19%)   34   42 (19%)
Investment Products  35     33    10     6     45     39  15%    14    9  56%
Sub-total           792  1,146    74   116    866  1,262 (31%)  153  231 (34%)
DSS Rebates         175    175     -     -    175    175   0%    18   18   0%
Total               967  1,321    74   116  1,041  1,437 (28%)  171  248 (31%)

Group Pensions:
Corporate Pensions  443    421    55    46    498    467   7%    99   88  13%
Annuities           110    104     -     -    110    104   6%    11   10  10%
Total               553    525    55    46    608    571   6%   110   99  11%
Total Financial
Services          1,520  1,846   129   162  1,649  2,008 (18%)  281  347 (19%)

Prudential Intermediated Businesses

Retail IFA:
Individual Pensions 148    121    39   26     187    147  27%    54   38  42%
Corporate Pensions   74     83    12   10      86     93  (8%)   19   18   6%
Life              1,257  1,537    27   54   1,284  1,591 (19%)  153  208 (26%)
Annuities            90     93     -    -      90     93  (3%)    9    9   0%
Investment Products  24     39     2    2      26     41 (37%)    4    6 (33%)
Sub-Total         1,593  1,873    80   92   1,673  1,965 (15%)  239  279 (14%)
DSS Rebates          51     50     -    -      51     50   2%     5    5   0%
Total             1,644  1,923    80   92   1,724  2,015 (14%)  244  284 (14%)

Annuities:
Annuities           367  1,440     -    -     367  1,440 (75%)   37  144 (74%)
Total Intermediated
Businesses        2,011  3,363    80   92   2,091  3,455 (39%)  281  428 (34%)

M&G:
Individual Pensions  25     32     2    1      27     33 (18%)    5   4   25%
Life                  1      7     -    1       1      8 (88%)    0   2 (100%)
Investment Products 859    336    12    6     871    342 155%    98  40  145%
Total               885    375    14    8     899    383 135%   103  46  124%


Notes to Schedules:
1. The figures for overseas operations have been calculated using average
   exchange rates.  The applicable rate for Jackson National Life is 1.54
   (September 1999 - 1.61)
2. The 1999 result for M&G in the above table relates to the period May to
   September.  The comparative result for the period January to September was
   £973m.
3. In the above table, APE represents Annualised Premium Equivalent (regular
   premiums plus 1/10 single premiums).