3rd Quarter & 9 Mths Results

Prudential PLC
18 October 2001


Embargo 07.00am, Thursday 18 October 2001



PRUDENTIAL PLC THIRD QUARTER 2001 NEW BUSINESS RESULTS

  * Record group total insurance and investment sales of £15.1 billion for
    the nine month period, up 54 per cent (£2 billion on APE basis, up 50 per
    cent).
  * International sales account for 68 per cent of total sales, up from 53
    per cent in 2000.
  * Total UK insurance sales £4.2 billion in the nine month period (£627
    million on an APE basis) up 12 per cent on same period in 2000.
  * Total Asia insurance and investment sales of £6.4 billion, nearly five
    times greater than the first nine months of 2000 (£888 million APE, up 250
    per cent).
  * Jackson National Life strong sales of fixed annuities and stable value
    products.

Prudential plc reported record insurance and investment sales of £2 billion,
on an annual premium equivalent basis, in the first nine months of 2001, with
growth of 50 per cent over the same period in the prior year. Total group
insurance and investment premiums were £15.1 billion, over the nine months.

Prudential group chief executive, Jonathan Bloomer, comments:

'I am pleased to report strong growth in sales in the first nine months of
2001, achieved against a background of difficult markets and an uncertain
economic climate. These figures reflect the benefits of a financially strong
company which is growing internationally, broadening its distribution reach
and diversifying its product range.

'Following the attacks on the US in September, our thoughts go out to those
who lost their lives or have been injured and, of course, to their families
and friends. Our direct exposure following these events is extremely limited.
Additionally, our UK long-term fund remains strong. Over two years ago we
began reducing our investment allocation away from equities, and therefore,
following the market falls after 11 September, we have not needed to make any
change to the life fund's asset mix. Furthermore, the strength of our overall
capital position and life fund has meant that we have not been inhibited from
writing new business during this uncertain period.'

United Kingdom Insurance Operations

The UK insurance business recorded sales of £627 million in the first nine
months of 2001 on an APE basis, an improvement of 12 per cent on last year.
Total sales for the period were £4.2 billion. Single premium sales were up 12
per cent and regular premium sales were up 11 per cent, on the same period in
2000.

Strong sales via our intermediary channels were £360 million in the nine
months of 2001 on an APE basis, a 28 per cent improvement on 2000, with
particularly strong sales in bulk annuities and individual pensions. Excluding
bulk annuity sales, intermediary weighted sales were £312 million, a 16 per
cent improvement on the same period last year.

Sales through our direct channels, in the first nine months of 2001, on an APE
basis, were £268 million, down 5 per cent on the prior year period. This
result is due to a fall in life and individual pension sales following the
closure of the direct sales force in the second quarter of 2001. However, this
was offset in part by a switch towards sales of regular premiums from single
premiums in corporate pensions.

Our service related sales (SRS) proposition was introduced following the
closure of the direct sales force. There are early signs of success in
attracting pension top-up business through this channel and we are planning to
expand the range of products we market through SRS. Since April 2001, over
30,000 remote pension top-ups have been sold, twice the volume sold via face
to face advice in the same period last year

We continue to lead the annuity market. Total sales of annuities for the first
nine months of this year of £1.4 billion (APE £136 million), an improvement of
51 per cent on the same period in 2000. From 1 September 2001, in addition to
bulk annuities, all externally sold non-profit individual pension annuities
are being written in a shareholder financed company.

The single premium with-profit bond market has remained strong in the third
quarter of 2001. Intermediary distributed with-profit bonds in the third
quarter are £534 million, a 51 per cent improvement on sales achieved in the
second quarter of 2001. Market share is being regained because of the strength
of our product offering and brand.

Sales of corporate pensions, on an APE basis, have increased by 22 per cent on
the nine-month period. Our concentration has been on securing schemes with
access to a large number of employees and where premium income will
materialise quickly. We now have corporate and stakeholder designations that
give us access to around 3.5 million lives, including the joint management of
the NHS stakeholder and AVC schemes, giving us access to up to 1.1 million
customers.

M&G

Total investment sales in the first nine months of 2001 were £704 million, 19
per cent lower than the same period in 2000, which included an exceptional
loan note rollover of £105 million. Excluding this, sales were 8 per cent
lower than the same period of 2000. This compares favourably with industry
data (AUTIF) which shows gross retail industry sales in the period January to
August 2001 were 17 per cent lower than January to August 2000.

Sales of fixed income products were £400 million, 15 per cent up on the first
nine months of 2000. Fixed income sales account for 57 per cent of total
sales, demonstrating the strategic importance of a wide range of product
offerings, particularly given the current difficulties of equity markets.

Egg

Egg reported its third quarter results on 17 October, highlights are:-

Net interest income increased by £43.7 million to £98.3 million for the first
nine months of 2001, reflecting an increase in net interest margin to 1.85 per
cent.

The number of Egg customers increased by 453,000 during 2001 to over 1.8
million, with 83,000 acquired during the third quarter of 2001. The cross
sales ratio has grown to 1.4 with 112,000 products sold to existing customers
in the third quarter of 2001.

Egg announced a strategic alliance with Microsoft in July. Subject to
regulatory clearance, Egg has now concluded deals with Microsoft's consumer
portal, MSN, which will make Egg Invest available in France and Germany.

Egg remains on track to breakeven at some point during the fourth quarter of
2001. With operating income growing strongly quarter on quarter and costs
remaining flat, Egg is moving confidently towards profitability.

Europe

Total sales through Pru Europe in the first nine months of 2001 were £54
million, double that for the same period last year of £27 million. This
positive result was primarily due to strong sales of Pru Vie. On an APE basis,
sales were £18 million, an improvement of 6 per cent on the same period last
year.

Jackson National Life, USA

Total Jackson National Life (JNL) sales of single premium business in the
first nine months of 2001 were £3.8 billion, 2 per cent lower than the same
period of 2000. Strong sales of fixed annuities and stable value products were
offset by weaker sales of variable annuities and equity-linked annuities.
Sales of equity-based products have been affected by the ongoing turmoil in
the equity markets and fierce competition from companies chasing top line
growth at the expense of product profitability.

Total sales of fixed annuities have increased to £1.38 billion, up 74 per
cent. This reflects the successful execution of JNL's strategy to provide
diversified products, which are responsive to changing market conditions,
through multiple distribution channels and especially reflects the success of
the bank distribution channel. In the third quarter of 2001, JNL's retail
sales increased more than 6 per cent over the third quarter 2000, an
impressive result considering the current environment. In fact, third quarter
2001 was JNL's best quarter in five years for net sales flow of fixed and
indexed annuities.

Stable Value products sales have increased by 20 per cent to £1.6 billion,
principally reflecting the success of the recently launched Global MTN
programme.

Variable annuity sales continue to be adversely affected by the on-going
volatility in the US equity markets with total sales of £613 million recorded,
some 56 per cent lower than the same period in 2000. JNL has maintained its
market position, being ranked 9th in this market, on a net sales basis in the
first half of 2001 (source: Financial Research Corporation).

JNL's direct exposure to the events in the United States of 11 September is
limited to our term assurance business and, on our current estimates, our
liability from this business is unlikely to exceed US$1 million.

Asia

Total insurance and investment sales in Asia at the end of the third quarter
2001 were £6.4 billion, an improvement of nearly 400 per cent on the
corresponding period last year.

Total funds under management in the Asian mutual fund business, at £2.5
billion, grew 50 per cent in the first nine months of 2001.

Sales of insurance products for the first nine months of 2001 were £333
million, on an annual premium equivalent basis, up 109 per cent on the same
period last year. Alternative distribution channels generated 15 per cent of
year-to-date new APE life sales, up significantly compared to last year. Sales
for regular premium insurance of £277 million were up 98 per cent on the same
period last year. Single premium insurance sales of £556 million were up 196
per cent and net mutual fund sales of £896 million were up 186 per cent.
Prudential's 36 per cent share of BOCI Prudential MPF sales in Hong Kong were
£71 million.

This strong growth reflects PCA's successful strategy of entering new markets,
strengthening and diversifying distribution channels and launching
customer-centric products. All operations have recorded excellent year-to-date
growth on last year. We also have contributions from our new life operations
in Japan, China and India, plus our 36 per cent share of BOCI Prudential MPF
in Hong Kong. As expected, single premium sales in Singapore have slowed
during this quarter following the exceptional first half of the year
attributed to the liberalisation of the Central Provident Fund.

The global economic slowdown is starting to have an impact on the region and
is visible in the economies of countries such as Taiwan and Singapore. While
the third quarter 2001 new business numbers have been strong across all of our
operations throughout the Asian region, we do see the possibility for growth
rates easing in the fourth quarter as a result of the global economic
slowdown. However, the long term growth potential of our Asian businesses
remains excellent.

                                    -Ends-



For further information please contact:

Media                                Analysts

Geraldine Davies   020 7548 3911     Rebecca Burrows        020 7548 3537
Steve Colton       020 7548 3721
Tina Christou      020 7548 3719
Tracey Ivers       020 7548 3500



NOTES TO EDITORS:

Newswires Conference Call at       Investor Conference Call at 2.30pm:
7.30am

Dial in number: 020 8401 1043      Dial in number: 020 8240 8248
Chair: Geraldine Davies            Participants quote Prudential
                                   Replay will be available until 25 October
                                   2001
                                   The dial in number for replay: 020 8288 4459
                                   Pass code 631392


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

2. Financial Calendar:

Payment of 2001 interim dividend                 Thursday 29 November 2001
Full-year new business figures 2001              Wednesday 16 January 2002
Announcement of 2001 full-year results           Tuesday 26 February 2002
Ex-dividend date for 2001 final dividend         Wednesday 20 March 2002
First quarter new business figures 2002          Thursday 18 April 2002
Annual General Meeting                           Thursday 9 May 2002
Payment of final dividend                        Wednesday 29 May 2002
Interim Results 2002                             Wednesday 24 July 2002
                                                                                
Schedule 1

PRUDENTIAL PLC - NEW BUSINESS PREMIUMS - Q3 2001

                                                                              
                                                 Single Premiums              
                                             2001 Q3     2000 Q3     +/- (%)  
                                                  £m          £m              
  UK Insurance Operations:                                                    
  Prudential Financial Services:                                              
  Individual Pensions                             23          24        (4%)  
  Corporate Pensions                             377         444       (15%)  
  Life                                           194         394       (51%)  
  Annuities                                      483         448          8%  
  Investment Products                             15          35       (57%)  
  Sub-Total                                    1,092       1,345       (19%)  
  DSS Rebates                                    175         175          0%  
  Total Direct (Schedule 2)                    1,267       1,520       (17%)  
                                                                              
  Prudential Intermediary                                                     
  Business:                                                                   
  Individual Pensions                            169         148         14%  
  Corporate Pensions                              50          74       (32%)  
  Life                                         1,464       1,257         16%  
  Annuities                                      884         457         93%  
  Investment Products                             66          24        175%  
  Sub-Total                                    2,633       1,960         34%  
  DSS Rebates                                     55          51          8%  
  Total Intermediated (Schedule 2)             2,688       2,011         34%  
                                                                              
                                                                              
  Total UK Insurance Operations:                                              
  Individual Pensions                            192         172         12%  
  Corporate Pensions                             427         518       (18%)  
  Life                                         1,658       1,651          0%  
  Annuities                                    1,367         905         51%  
  Investment Products                             81          59         37%  
  Sub-Total                                    3,725       3,305         13%  
  DSS Rebates                                    230         226          2%  
  Total UK Insurance Operations                3,955       3,531         12%  
                                                                              
  M&G:                                                                        
  Individual Life and Pensions                     -          26          0%  
  Investment Products                            694         859       (19%)  
  Total M&G                                      694         885       (22%)  
                                                                              
  Total UK Operations                          4,649       4,416          5%  
                                                                              
  European Operations:                                                        
  Insurance Products                              40          11        264%  
  Total European Operation                        40          11        264%  
                                                                              
  US Operations:                                                              
  Fixed Annuities                              1,375         792         74%  
  Equity Linked Index Annuities                  197         335       (41%)  
  Variable Annuities                             613       1,409       (56%)  
  Sub-total Annuities                          2,185       2,536       (14%)  
  Guaranteed Investment Contracts                170         256       (34%)  
  GIC - European Medium Term Note              1,440       1,079         33%  
  Life                                             -           -          0%  
  Total US Operations                          3,795       3,871        (2%)  
                                                                              
  Asian Operations:                                                           
  Insurance Products                             556         188        196%  
  Investment Products                          5,545         952        482%  
  Total Asian Operations (Schedule             6,101       1,140        435%  
  2)                                                                          
                                                                              
  Group Total:                                                                
  Insurance Products                           8,265       7,568          9%  
  Investment Products                          6,320       1,870        238%  
  Group Total                                 14,585       9,438         55%  
                                                                              
 
 
                                                                             
                                  2001 Q3     2000 Q3               2000 YE  
                                       £m          £m                    £m  
   UK Banking Products                                                       
   Deposit Liabilities:                                                      
   Egg                              5,747       6,815     (16%)       6,715  
   Prudential Banking                 318         435     (27%)         412  
   Total Deposit Liabilities        6,065       7,250     (16%)       7,127  
                                                                             
   Retail Assets                                                             
   Mortgage Book                    2,432       2,291        6%       2,405  
   Personal Loans Book                576         391       47%         445  
   Credit Card Receivables          1,592         736      116%         929  
   Total Retail Assets              4,600       3,418       35%       3,779  
                                                                             
   US Banking Products                                                       
   Total Deposit Liabilities          564         472       19%         483  
   Retail Assets                      708         569       24%         630  
                                                                             
                                                                             
   UK General Insurance                                                      
   UK Gross Premiums Written          300         251       20%              
                                                                             
 
Schedule 1
                                                                              
                                                Regular Premiums              
                                             2001 Q3     2000 Q3     +/- (%)  
                                                  £m          £m              
  UK Insurance Operations:                                                    
  Prudential Financial Services:                                              
  Individual Pensions                             24          27       (11%)  
  Corporate Pensions                             105          70         50%  
  Life                                             9          22       (59%)  
  Annuities                                        -           -          0%  
  Investment Products                              3          10       (70%)  
  Sub-Total                                      141         129          9%  
  DSS Rebates                                      -           -          0%  
  Total Direct (Schedule 2)                      141         129          9%  
                                                                              
  Prudential Intermediary                                                     
  Business:                                                                   
  Individual Pensions                             52          39         33%  
  Corporate Pensions                              16          12         33%  
  Life                                            22          27       (19%)  
  Annuities                                        -           -           -  
  Investment Products                              1           2       (50%)  
  Sub-Total                                       91          80         14%  
  DSS Rebates                                      -           -           -  
  Total Intermediated (Schedule                   91          80         14%  
  2)                                                                          
                                                                              
  Total UK Insurance Operations:                                              
  Individual Pensions                             76          66         15%  
  Corporate Pensions                             121          82         48%  
  Life                                            31          49       (37%)  
  Annuities                                        -           -          0%  
  Investment Products                              4          12       (67%)  
  Sub-Total                                      232         209         11%  
  DSS Rebates                                      -           -           -  
  Total UK Insurance Operations                  232         209         11%  
                                                                              
  M&G:                                                                        
  Individual Life and Pensions                     -           2          0%  
  Investment Products                             10          12       (17%)  
  Total M&G                                       10          14       (29%)  
                                                                              
  Total UK Operations                            242         223          9%  
                                                                              
  European Operations:                                                        
  Insurance Products                              14          16       (13%)  
  Total European Operation                        14          16       (13%)  
                                                                              
  US Operations:                                                              
  Fixed Annuities                                  -           -          0%  
  Equity Linked Index Annuities                    -           -          0%  
  Variable Annuities                               -           -          0%  
  Sub-total Annuities                              -           -          0%  
  Guaranteed Investment Contracts                  -           -          0%  
                                                                              
  GIC - European Medium Term Note                  -           -          0%  
                                                                              
  Life                                            16          19       (16%)  
  Total US Operations                             16          19       (16%)  
                                                                              
  Asian Operations:                                                           
  Insurance Products                             277         140         98%  
  Investment Products                              -           -          0%  
  Total Asian Operations                         277         140         98%  
  (Schedule 2)                                                                
                                                                              
  Group Total:                                                                
  Insurance Products                             535         374         43%  
  Investment Products                             14          24       (42%)  
  Group Total                                    549         398         38%  
                                                                              
Schedule 1 
                                                                              
                                                  Total Premiums              
                                             2001 Q3     2000 Q3     +/- (%)  
                                                  £m          £m              
  UK Insurance Operations:                                                    
  Prudential Financial Services:                                              
  Individual Pensions                             47          51        (8%)  
  Corporate Pensions                             482         514        (6%)  
  Life                                           203         416       (51%)  
  Annuities                                      483         448          8%  
  Investment Products                             18          45       (60%)  
  Sub-Total                                    1,233       1,474       (16%)  
  DSS Rebates                                    175         175          0%  
  Total Direct (Schedule 2)                    1,408       1,649       (15%)  
                                                                              
  Prudential Intermediary Business:                                           
                                                                              
  Individual Pensions                            221         187         18%  
  Corporate Pensions                              66          86       (23%)  
  Life                                         1,486       1,284         16%  
  Annuities                                      884         457         93%  
  Investment Products                             67          26        158%  
  Sub-Total                                    2,724       2,040         34%  
  DSS Rebates                                     55          51          8%  
  Total Intermediated (Schedule 2)             2,779       2,091         33%  
                                                                              
  Total UK Insurance Operations:                                              
  Individual Pensions                            268         238         13%  
  Corporate Pensions                             548         600        (9%)  
  Life                                         1,689       1,700        (1%)  
  Annuities                                    1,367         905         51%  
  Investment Products                             85          71         20%  
  Sub-Total                                    3,957       3,514         13%  
  DSS Rebates                                    230         226          2%  
  Total UK Insurance Operations                4,187       3,740         12%  
                                                                              
  M&G:                                                                        
  Individual Life and Pensions                     -          28          0%  
  Investment Products                            704         871       (19%)  
  Total M&G                                      704         899       (22%)  
                                                                              
  Total UK Operations                          4,891       4,639          5%  
                                                                              
  European Operations:                                                        
  Insurance Products                              54          27        100%  
  Total European Operation                        54          27        100%  
                                                                              
  US Operations:                                                              
  Fixed Annuities                              1,375         792         74%  
  Equity Linked Index Annuities                  197         335       (41%)  
  Variable Annuities                             613       1,409       (56%)  
  Sub-total Annuities                          2,185       2,536       (14%)  
  Guaranteed Investment Contracts                170         256       (34%)  
  GIC - European Medium Term Note              1,440       1,079         33%  
  Life                                            16          19       (16%)  
  Total US Operations                          3,811       3,890        (2%)  
                                                                              
  Asian Operations:                                                           
  Insurance Products                             833         328        154%  
  Investment Products                          5,545         952        482%  
  Total Asian Operations (Schedule             6,378       1,280        398%  
  2)                                                                          
                                                                              
  Group Total:                                                                
  Insurance Products                           8,800       7,942         11%  
  Investment Products                          6,334       1,894        234%  
  Group Total                                 15,134       9,836         54%  
 
Schedule 1
                                                                             
                                                            APE              
                                            2001 Q3     2000 Q3     +/- (%)  
                                                 £m          £m              
   UK Insurance Operations:                                                  
   Prudential Financial Services:                                            
   Individual Pensions                           26          29       (10%)  
   Corporate Pensions                           143         114         25%  
   Life                                          28          61       (54%)  
   Annuities                                     48          45          7%  
   Investment Products                            5          14       (64%)  
   Sub-Total                                    250         264        (5%)  
   DSS Rebates                                   18          18          0%  
   Total Direct (Schedule 2)                    268         281        (5%)  
                                                                             
   Prudential Intermediary Business:                                         
   Individual Pensions                           69          54         28%  
   Corporate Pensions                            21          19         11%  
   Life                                         168         153         10%  
   Annuities                                     88          46         91%  
   Investment Products                            8           4        100%  
   Sub-Total                                    354         276         28%  
   DSS Rebates                                    6           5         20%  
   Total Intermediated (Schedule 2)             360         281         28%  
                                                                             
   Total UK Insurance Operations:                                            
   Individual Pensions                           95          83         14%  
   Corporate Pensions                           164         134         22%  
   Life                                         196         214        (8%)  
   Annuities                                    136          91         49%  
   Investment Products                           13          18       (28%)  
   Sub-Total                                    604         539         12%  
   DSS Rebates                                   23          23          0%  
   Total UK Insurance Operations                627         562         12%  
                                                                             
   M&G:                                                                      
   Individual Life and Pensions                   -           5          0%  
   Investment Products                           79          98       (19%)  
   Total M&G                                     79         103       (23%)  
                                                                             
   Total UK Operations                          706         665          6%  
                                                                             
   European Operations:                                                      
   Insurance Products                            18          17          6%  
   Total European Operation                      18          17          6%  
                                                                             
   US Operations:                                                            
   Fixed Annuities                              138          79         75%  
   Equity Linked Index Annuities                 20          34       (41%)  
   Variable Annuities                            61         141       (57%)  
   Sub-total Annuities                          219         254       (14%)  
   Guaranteed Investment Contracts               17          26       (35%)  
   GIC - European Medium Term Note              144         108         33%  
   Life                                          16          19       (16%)  
   Total US Operations                          396         406        (2%)  
                                                                             
   Asian Operations:                                                         
   Insurance Products                           333         159        109%  
   Investment Products                          555          95        484%  
   Total Asian Operations (Schedule 2)          888         254        250%  
                                                                             
   Group Total:                                                              
   Insurance Products                         1,362       1,131         20%  
   Investment Products                          646         211        206%  
   Group Total                                2,008       1,342         50%  



Schedule 2


                                              Single Premiums      
                                         2001 Q3     2000 Q3     +/- (%)      
                                              £m          £m                  
      UK Insurance                                                            
      Operations:                                                             
      Prudential Financial                                                    
      Services                                                                
      DSF/Remote:                                                             
      Individual Pensions                     23          24        (4%)      
      Corporate Pensions                       -           1          0%      
      Life                                   194         394       (51%)      
      Annuities                              375         338         11%      
      Investment Products                     15          35       (57%)      
      Sub-Total                              607         792       (23%)      
      DSS Rebates                            175         175          0%      
      Total Retail                           782         967       (19%)      
                                                                              
      Group Pensions:                                                         
      Corporate Pensions                     377         443       (15%)      
      Annuities                              108         110        (2%)      
      Total Group Pensions                   485         553       (12%)      
      Total Direct                         1,267       1,520       (17%)      
                                                                              
      Prudential Intermediary                                                 
      Business:                                                               
      Retail IFA:                                                             
      Individual Pensions                    169         148         14%      
      Corporate Pensions                      50          74       (32%)      
      Life                                 1,464       1,257         16%      
      Annuities                              101          90         12%      
      Investment Products                     66          24        175%      
      Sub-Total                            1,850       1,593         16%      
      DSS Rebates                             55          51          8%      
      Total Retail IFA                     1,905       1,644         16%      
                                                                              
      Annuities:                                                              
      Annuities                              783         367        113%      
      Total Annuities                        783         367        113%      
      Total Intermediated                  2,688       2,011         34%      
                                                                              
      Asian Operations:                                                       
                                                                              
      Insurance Products:                                                     
      Singapore                              459         161        185%      
      Hong Kong                               66          11        500%      
      Malaysia                                 9          12       (25%)      
      Taiwan                                   3           1           -      
      Japan                                   11           -           -      
      Other                                    8           3        167%      
      Total Insurance                        556         188        196%      
      Products                                                                
                                                                              
      Investment Products:                                                    
      India                                1,473         952         55%      
      Taiwan                               3,988           -           -      
      Other                                   13           -           -      
      Total Gross Mutual Fund              5,474         952        475%      
      Sales                                                                   
      Hong Kong MPF Products                  71           -           -      
      Total Investment                     5,545         952        482%      
      Products                                                                
                                                                              
      Total Asian Operations               6,101       1,140        435%      
                                                                              
      Asia Mutual Funds                                                       
      Net Mutual Fund Sales:                                                  
      India                                  264         313       (16%)      
      Taiwan                                 627           -           -      
      Other                                    5           -           -      
      Total Net Mutual Fund                  896         313        186%      
      Sales                                                                   
                                                                              
      Funds Under Management:              India      Taiwan       Other  Total 
      Opening Balance of FUM                 695         934          20  1,649 
     (31/12/00)                                                              
      Net Flows                              264         627           5    896 
      Market Movement                       (26)        (46)         (7)    (79)
      Closing Balance of FUM                 933       1,515          18  2,466 
      (30/09/01)                                                              

Schedule 2                                                                      
       
                                                                              
                                                  Regular Premiums              
                                             2001 Q3     2000 Q3     +/- (%)  
                                                  £m          £m              
  UK Insurance Operations:                                                    
  Prudential Financial Services                                               
  DSF/Remote:                                                                 
  Individual Pensions                             24          27       (11%)  
  Corporate Pensions                               -          15          0%  
  Life                                             9          22       (59%)  
  Annuities                                        -           -          0%  
  Investment Products                              3          10       (70%)  
  Sub-Total                                       36          74       (51%)  
  DSS Rebates                                      -           -          0%  
  Total Retail                                    36          74       (51%)  
                                                                              
  Group Pensions:                                                             
  Corporate Pensions                             105          55         91%  
  Annuities                                        -           -          0%  
  Total Group Pensions                           105          55         91%  
  Total Direct                                   141         129          9%  
                                                                              
  Prudential Intermediary                                                     
  Business:                                                                   
  Retail IFA:                                                                 
  Individual Pensions                             52          39         33%  
  Corporate Pensions                              16          12         33%  
  Life                                            22          27       (19%)  
  Annuities                                        -           -          0%  
  Investment Products                              1           2       (50%)  
  Sub-Total                                       91          80         14%  
  DSS Rebates                                      -           -          0%  
  Total Retail IFA                                91          80         14%  
                                                                              
  Annuities:                                                                  
  Annuities                                        -           -          0%  
  Total Annuities                                  -           -          0%  
  Total Intermediated                             91          80         14%  
                                                                              
  Asian Operations:                                                           
                                                                              
  Insurance Products:                                                         
  Singapore                                       26          26          0%  
  Hong Kong                                       48          30         60%  
  Malaysia                                        29          23         26%  
  Taiwan                                         116          46        152%  
  Japan                                           21           -           -  
  Other                                           37          15        147%  
  Total Insurance Products                       277         140         98%  
                                                                              
  Investment Products:                                                        
  India                                            -           -           -  
  Taiwan                                           -           -           -  
  Other                                            -           -           -  
  Total Gross Mutual Fund Sales                    -           -           -  
  Hong Kong MPF Products                           -           -           -  
  Total Investment Products                        -           -           -  
                                                                              
  Total Asian Operations                         277         140         98%  
                                                                              
  Asia Mutual Funds                                                           
  Net Mutual Fund Sales:                                                      
  India                                                                       
  Taiwan                                                                      
  Other                                                                       
  Total Net Mutual Fund Sales                                                 

Schedule 2                                                                      
       
                                                                                
                                                       Total Premiums           
                                             2001 Q3     2000 Q3     +/- (%)  
                                                  £m          £m              
  UK Insurance Operations:                                                    
  Prudential Financial Services                                               
  DSF/Remote:                                                                 
  Individual Pensions                             47          51        (8%)  
  Corporate Pensions                               -          16          0%  
  Life                                           203         416       (51%)  
  Annuities                                      375         338         11%  
  Investment Products                             18          45       (60%)  
  Sub-Total                                      643         866       (26%)  
  DSS Rebates                                    175         175          0%  
  Total Retail                                   818       1,041       (21%)  
                                                                              
  Group Pensions:                                                             
  Corporate Pensions                             482         498        (3%)  
  Annuities                                      108         110        (2%)  
  Total Group Pensions                           590         608        (3%)  
  Total Direct                                 1,408       1,649       (15%)  
                                                                              
  Prudential Intermediary                                                     
  Business:                                                                   
  Retail IFA:                                                                 
  Individual Pensions                            221         187         18%  
  Corporate Pensions                              66          86       (23%)  
  Life                                         1,486       1,284         16%  
  Annuities                                      101          90         12%  
  Investment Products                             67          26        158%  
  Sub-Total                                    1,941       1,673         16%  
  DSS Rebates                                     55          51          8%  
  Total Retail IFA                             1,996       1,724         16%  
                                                                              
  Annuities:                                                                  
  Annuities                                      783         367        113%  
  Total Annuities                                783         367        113%  
  Total Intermediated                          2,779       2,091         33%  
                                                                              
  Asian Operations:                                                           
                                                                              
  Insurance Products:                                                         
  Singapore                                      485         187        159%  
  Hong Kong                                      114          41        178%  
  Malaysia                                        38          35          9%  
  Taiwan                                         119          47        153%  
  Japan                                           32           -           -  
  Other                                           45          18        150%  
  Total Insurance Products                       833         328        154%  
                                                                              
  Investment Products:                                                        
  India                                        1,473         952         55%  
  Taiwan                                       3,988           -           -  
  Other                                           13           -           -  
  Total Gross Mutual Fund Sales                5,474         952        475%  
  Hong Kong MPF Products                          71           -           -  
  Total Investment Products                    5,545         952        482%  
                                                                              
  Total Asian Operations                       6,378       1,280        398%  
                                                                              
  Asia Mutual Funds                                                           
  Net Mutual Fund Sales:                                                      
  India                                                                       
  Taiwan                                                                      
  Other                                                                       
  Total Net Mutual Fund Sales                                                 


Schedule 2                                                                      
       
                                                            APE                 
                                            2001 Q3     2000 Q3     +/- (%)  
                                                 £m          £m              
  UK Insurance Operations:                                                   
  Prudential Financial Services                                              
  DSF/Remote:                                                                
  Individual Pensions                            26          29       (10%)  
  Corporate Pensions                              -          15          0%  
  Life                                           28          61       (54%)  
  Annuities                                      38          34         12%  
  Investment Products                             5          14       (64%)  
  Sub-Total                                      97         153       (37%)  
  DSS Rebates                                    18          18          0%  
  Total Retail                                  114         171       (33%)  
                                                                             
  Group Pensions:                                                            
  Corporate Pensions                            143          99         44%  
  Annuities                                      11          11          0%  
  Total Group Pensions                          154         110         40%  
  Total Direct                                  268         281          5%  
                                                                             
  Prudential Intermediary Business:                                          
  Retail IFA:                                                                
  Individual Pensions                            69          54         28%  
  Corporate Pensions                             21          19         11%  
  Life                                          168         153         10%  
  Annuities                                      10           9         11%  
  Investment Products                             8           4        100%  
  Sub-Total                                     276         239         15%  
  DSS Rebates                                     6           5         20%  
  Total Retail IFA                              282         244         16%  
                                                                             
  Annuities:                                                                 
  Annuities                                      78          37        111%  
  Total Annuities                                78          37        111%  
  Total Intermediated                           360         281         28%  
                                                                             
  Asian Operations:                                                          
                                                                             
  Insurance Products:                                                        
  Singapore                                      72          42         71%  
  Hong Kong                                      55          31         77%  
  Malaysia                                       30          24         25%  
  Taiwan                                        116          47        147%  
  Japan                                          22           -           -  
  Other                                          38          16        138%  
  Total Insurance Products                      333         159        109%  
                                                                             
  Investment Products:                                                       
  India                                         147          95         55%  
  Taiwan                                        399           -           -  
  Other                                           1           -           -  
  Total Gross Mutual Fund Sales                 547          95        476%  
  Hong Kong MPF Products                          7           -          0%  
  Total Investment Products                     555          95        484%  
                                                                             
  Total Asian Operations                        888         254        250%  
                                                                             
  Asia Mutual Funds                                                          
  Net Mutual Fund Sales:                                                     
  India                                                                      
  Taiwan                                                                     
  Other                                                                      
  Total Net Mutual Fund Sales                                                
                                                                             
                                                                      
Notes to Schedules:

1. Sales for overseas operations have been calculated using average exchange    
   rates. The applicable rate for Jackson National Life is 1.44 (Q3 2000 -      
   1.54). Balance sheet figures have been calculated at closing exchange rates.

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

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

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

5. Annual Premium Equivalents (APE), calculated as regular premiums + 10%
   single premiums, are subject to roundings.