Final Results for 1999 - Part 1

Prudential PLC
23 February 2000


PART 1


PRUDENTIAL PLC 1999 UNAUDITED RESULTS

New business achieved profits up 46% at £603 million
Record in-flow of new funds of over £18 billion
Underlying  operating  profit before amortisation of  goodwill  up  6%  to 
£996 million
Total dividend up 9.5% to 23p per share
Plans for an IPO of a minority stake in egg to be pursued*


Results Summary                         1999    1998    %
                                        £m      £m
New business achieved profits          603     413    46%
Underlying operating profit before
amortisation of goodwill, investment
in egg and UK re-engineering costs     996     937     6%
Operating profit before amortisation
of goodwill                            776     860  (10)%
Full year dividend per share         23.0p   21.0p   9.5%
Shareholder's funds - achieved
profits basis                        8,342   7,510   11%




Commenting on the results, Jonathan Bloomer, Prudential's group chief
executive
designate said:

'We have had a busy 12 months working towards delivering our strategic
objectives in the UK, the USA, Asia and Europe.  We  have restructured and
re-engineered our traditional operations while investing and developing new
businesses.  This strategy has helped us to maintain our leadership position
in a rapidly changing financial services sector.  We are using technology to
maximise development and efficiencies across all areas of our business.  Our
focus on technology gives our customers better access to our business, higher
levels of customer service and drives down unit costs.

'In 1999 we have attracted a record in-flow of more than £18 billion of new
funds through further diversifying our product range and distribution
capability.

'In the UK we have made important progress in developing new business models
for our retail insurance business and in growing our IFA operations.  We bought
M&G and are integrating it successfully with PPM in the UK, allowing
us to focus on those areas of fund management where we have unique strengths
and competitive advantage: unit trusts, fixed income and pooled life and pension
funds.  This acquisition has increased the Group's retail and fund management
presence greatly and since acquisition M&G has produced a 20% increase in sales
over the equivalent prior year period.

'We continue to invest in egg. To enhance the future development of this
business and to maximise long-term value for our shareholders, the Prudential
Board has decided to pursue a plan for an initial public offering (IPO) of a
minority stake in egg subject to continuing progress in the business and
favourable market conditions.  It is currently intended that an IPO would take
place later this year.

'Further full details of a potential offer have not been determined.  However,
it is envisaged that any customer offering will be limited to existing egg
customers as at midnight on 22 February 2000 (and additional eligibility
criteria will apply).

'Internationally  we have extended our reach.  1999 has been a significant 
year for  our  Asian  operations.  We are the first UK company  to  be 
granted  life licences  in China and Vietnam; we have also made a major
acquisition in  Taiwan and signed a significant joint venture agreement in
Hong Kong.   In  the  US, Jackson continues its strong performance with record
sales and profits.  At  the end  of  1999,  we formed Prudential Europe and
secured strategic  alliances  in France and Germany, giving us footholds in
markets with considerable growth potential.

'We have also experienced some challenges: the issues associated with the
mis-selling of pensions in the UK, which have affected the whole industry,
are not fully behind us.  Rectifying cases has absorbed considerable resource
in 1999;  there  has  been an increase in the provision for future  costs  of 
£0.6 billion  and  an increase in cumulative costs paid to date of £0.1
billion.   We now  estimate the total cost of pensions mis-selling to be £2
billion.   We  are determined to do whatever is required to ensure that none
of our customers loses out and that such a situation will not happen again.

'In  the  past  few  years  we have consistently delivered  superior 
investment returns  to  our shareholders. We will continue to maximise the
value  from  our existing businesses and invest for the future.  With a strong
management team we are ideally placed to continue to deliver long-term
out-performance.

'Given  the progress Prudential has made during 1999 and our confidence  in 
the future success of the business, we propose that the total dividend for the
year is increased to 23.0p per share, an increase of 9.5%.

'The  final  dividend  of  15.3p per share will  be  paid  on  31  May  2000 
to shareholders  on  the  register  at the close of  business  on  31  March 
2000.  Shareholders will once more be offered a scrip dividend alternative.'



Media Enquiries:                        Analyst Enquiries:
Jeremy Reynolds/Kevin Russell           Carys Walshe
Prudential Group Media Relations        Prudential Group Investor Relations
Tel:  [phone] 7548 3723       Tel: [phone]

Notes to Editors:

A  presentation  to  analysts will take place at 10:00am  at  Governor's 
House, Laurence Pountney Hill, London, EC4R 0HH.  A webcast of the
presentation and the presentation  slides will be available on the group's   
website, www.prudential.co.uk, during the day.

*Legal disclaimer

This information is not an offer of egg securities for sale into the United
States, Canada or Japan.

The securities may not be offered or sold in the United States unless they
are registered under applicable law or exempt from registration.  egg does
not intend to register any portion of the offering in the United States or to
conduct a public offering of securities in the United States.  Money,
securities or other consideration are not being solicited and, if sent in
response to the information contained herein, will not be accepted.

Results Summary
PRUDENTIAL PLC 1999   UNAUDITED RESULTS

                                                         1999 £m      1998 £m
_____________________________________________________________________________
Statutory operating profit (based on longer-term investment returns)before
amortisation of goodwill
Retail Insurance Operations                               479          421
Group Pensions                                             36           22
Prudential M&G Asset Management                            87           28
egg and Prudential Banking                               (150)         (77)
_____________________________________________________________________________
UK operations                                             452          394
USA                                                       451          411
Asia                                                       15           13
Europe                                                      6            4
Other income and expenditure                              (78)          38
Re-engineering costs                                      (70)           -
_____________________________________________________________________________
Total                                                     776          860
Discontinued operations                                     -            8
_____________________________________________________________________________
Operating profit before amortisation of goodwill          776          868
Amortisation of goodwill                                  (54)           -
Short-term fluctuations in investment returns              28           24
Profit on business disposals                               -           249
_____________________________________________________________________________
Profit before tax (including actual
investment returns)                                       750        1,141
_____________________________________________________________________________

Earnings per share
Based on operating profit after tax before amortisation
of goodwill                                              29.1p        33.7p
Based on profit after tax - basic                        27.8p        45.3p
Based in profit after tax - diluted                      27.7p        45.0p
_____________________________________________________________________________

Dividend per share                                       23.0p        21.0p
_____________________________________________________________________________

Achieved profits basis shareholders' funds              £8.3bn       £7.5bn
_____________________________________________________________________________

Insurance and investment funds under management         £170bn        £128bn
_____________________________________________________________________________

Banking funds under management                          £8.1bn        £2.2bn

Profit before tax includes actual investment returns.  The Company believes
that operating profit, which is based on longer-term investment returns,
before amortisation of goodwill better reflects the Group's underlying
performance.  An abridged statutory profit and loss account is set out in
section 4.  Supplementary achieved profits basis results are shown in section
6.



OPERATIONAL REVIEW


UNITED KINGDOM

Retail Insurance Operations

Retail IFA

Prudential's Retail IFA business produces and sells Scottish Amicable and
Prudential branded products, including the market-leading Prudence Bond.

Underlying statutory profits (before re-engineering costs) from our Retail
IFA business increased by 13% to £99 million in 1999 while new business
achieved profits increased by 53% to £174 million. This strong growth in new
business achieved profits has been primarily driven by increased sales of
investment bonds, predominantly Prudence Bond, which remains one of the UK's
most successful retail investment products with sales of £1.9 billion in 1999.

Central to this growth have been the further improvements that we have
initiated in customer service, building on the previous year's award-winning
performance.  During the year we have given customers a choice of fund
manager and re-engineered the sales force structure to align it better with
the product focus of IFAs. The development of our new sales contact centre in
Glasgow will lead to even better levels of customer service in the future.

We are continuing to expand our operations at our Craigforth site near
Stirling, where the total number of staff employed is now close to 2,300. 
During 2000, there will be a further small increase, as we transfer the
administration of M&G's Life & Pensions business from Chelmsford and integrate
it within the existing operations at Craigforth.

Scottish Amicable's high standards of customer care were recognised in the
1999 Financial Adviser Awards where it received five star awards for customer
service in the Life & Pensions and Investments categories.  In addition,
several products were recognised with industry awards, including Prudence
Bond, Home Purchaser (our mortgage endowment product) and our Long-Term Care
Bond.

The continued implementation of new technology has been essential in
achieving this result: greater use of the Internet, an extranet giving IFAs
up-to-the-minute information on policies, plus new call centre technologies
and workflow systems. Further developments will give employers direct access
to database systems, allowing them to administer pensions on-line.

The range of products designed to meet the changing needs of IFAs continues
to expand and a 'stakeholder-friendly' group personal pensions product will
be introduced on 1 March 2000.

Retail Financial Services

Prudential Retail Financial Services (PRFS) comprises three business units:
Prudential Retail (with its 1,900 strong sales force), Life and Pensions and
General Insurance.

PRFS produces and sells a comprehensive range of personal investment and
insurance products.  It also sells banking products for Prudential Banking
with mortgage sales exceeding £600 million in 1999. It has 6 million UK
customers, one in six of the adult population.  Currently PRFS has 7.1
million life policies in force and 1.6 million personal pension contracts,
making us one of Britain's biggest pension providers.

PRFS also provides around 2 million retail general insurance policies, 1.7
million of which are home insurance policies, making us the UK's sixth
largest home insurer.  Continued high levels of customer service have
contributed to customer retention rates among the best in the industry.

Sales of insurance and investment products rose by 16% to £1.8 billion
despite a 40% reduction in the number of sales force consultants to 1,900. 
This result reflects the success of our initiatives to increase efficiency
and improve consultant productivity. Single premium sales were up 22% at
£1.7 billion, reflecting higher sales of with-profit savings products,
fuelled by the low interest rate environment.  Regular premium sales were
 down 24% to £146 million, mainly due to lower sales of pension products.
Underlying long term business statutory profits rose 9% to £319 million and
underlying general insurance profits increased 56% to £61 million.   Achieved
new business profits on long term business were up 20% to £83 million.

During 1999, we re-engineered the structure of Retail Financial Services to
broaden its appeal to customers and to reduce its cost base in anticipation of
an even more competitive financial services environment. Significant progress
towards this goal has been made through a programme to remove some 5,000 posts
over three years, 3,000 of which have been accounted for over the last year.

Our investment in new technology is key to this re-engineering. In addition
the move towards remote working, with no branch infrastructure, has been made
possible by the introduction of laptop computers as a tool for the sales
force.  This innovation will make the sales process more efficient and will
reduce the administrative burden.

Further developments in point of sale technology will allow us to reduce the
amount of time spent form-filling with customers. This will lead to a greater
focus on advising customers and increasing productivity.  The use of remote
channels, especially for top-ups to existing business, will also free up the
sales force to concentrate on generating quality new sales.

Prudential Retail has launched a new look website to support its core
proposition of face to face advice.  General insurance customers can now
obtain quotes and take out policies on the Internet, and the opening hours of
our administration centres have been extended to allow customers increased
access to our services at times that suit them.


Prudential Annuities

Prudential Annuities is the market leader in the UK pensions annuity industry.
We now have over 700,000 customers and more than a 20% share of new business
in 1999.  Total sales were £2.2 billion and funds under management now exceed
£10 billion.  New business achieved profits of £21 million were more than
double 1998.

In  the  individual pension annuity market, with-profit sales have shown 
strong growth and now represent more than 15% of individual sales.  Bulk
annuity  sales in  1999 represented more than half our total sales and were
boosted by two  big sales totalling £1.1 billion in July.

The pensions annuity market is projected to grow strongly over the next few
years.  Prudential Annuities is well placed to take advantage of this growth.
In addition to having a management team focused solely on the annuity market,
we believe our investment expertise in the fixed interest market and the
excellent track record of our with profit product will give us sustained
competitive advantage.

Group Pensions

Group Pensions is a leading provider of employer sponsored pensions and an
increasingly significant part of Prudential's business. Group Pensions
provides the pension arrangements for some 4,500 companies including 85
from the FTSE 500, covering some 500,000 individuals.  During 1999, Group
Pensions' statutory profits rose 64% from £22 million to £36 million while
new business achieved profits were up 30% to £26 million.

The proposed introduction of Stakeholder Pensions by the Government in 2001,
in particular the capping of the annual management charge at just 1%, offers
a significant challenge to the pensions industry and a major opportunity to
those companies well positioned within it.  To participate in this new
environment providers will need to find more efficient methods of
distribution.  Stakeholder, together with the continuing shift towards
flexible defined contribution arrangements (away from defined benefit
schemes) presents Group Pensions with the opportunity to deliver
significant shareholder value through the effective delivery of simple,
value-for-money products.

Prudential intends to become a profitable participant in the stakeholder
environment.  Current initiatives that will deliver this objective include:
the development of a marketing and distribution platform that exploits current
e-commerce technology to its fullest advantage. We have designed this to
maximise employee participation by giving them direct access to information
about their own pensions (for example through their own company's intranet),
so that they can manage their pension remotely with the benefit of a general
education service;

secondly, we have moved responsibility for the distribution of AVC products to
Teachers, University and Local Government employees to a dedicated salaried
sales team and away from our commission based sales force.  These teams will
make presentations and sales to groups of individuals, replacing the more
expensive one-to-one distribution.  This strategy will not only reduce costs
significantly and increase sales but also complement the e-commerce
proposition.


Prudential M&G Asset Management

Prudential's fund management business in the UK is conducted under the
umbrella of Prudential M&G Asset Management.  The acquisition of M&G in April
1999 has given us enhanced access to the retail investment market and we are
currently carrying out a fundamental reorganisation of our fund management
operations.

In the UK we will specialise in those areas of fund management where we have
unique strengths and competitive advantage - unit trusts, fixed income and
pooled life and pension funds.  We have therefore entered into discussions,
which are now at an advanced stage, to sell our UK institutional, segregated,
balanced and specialist equity business which constitutes around £10 billion
of mandates (out of a total Group funds under management of £170 billion).

At the same time we plan to bring PPM and M&G together into a unified
business.  We will be combining the investment processes and resources of
both in a single new management structure under Michael McLintock as chief
executive.

We have already successfully completed the merger of the fixed income teams
(creating the largest fixed interest team in the UK, with assets under
management of £33 billion), as well as the two retail administration centres.
In addition we are in the process of moving M&G's life and pensions business
to Craigforth under the management of Scottish Amicable.


M&G

We purchased M&G to enhance the group's retail fund management presence.  M&G
is the oldest and largest retail unit trust manager in the UK and has a very
strong brand.  Performance in its first eight months since acquisition has
been strong, with sales of £583 million and underlying profits of £56 million
both ahead of acquisition assumptions.  At the end of 1999, M&G had £21
billion of assets under management.

M&G embraced Individual Savings Accounts (ISAs) from the outset. Taking full
advantage of the changes in regulations which allow customers to invest by
telephone or Internet, we are one of only a handful of companies that give
investors the chance to buy an ISA on-line. Sales of ISAs, through both the
intermediary and direct channels, have been good since launch, securing a 5%
share of the unit trust ISA market.

During 1999, we introduced innovative products, including the M&G Global
Managed Bond Fund and the M&G Global Technology Fund, to strengthen M&G's
reputation in the retail market. In November we reduced the annual management
charge on our UK Index Tracker from 0.75% to 0.3% resulting in a six-fold
increase in the daily rate of sales.


PPM

PPM manages £145 billion worldwide, mostly on behalf of Prudential's internal
clients.  Underlying profit for PPM totalled £43 million in 1999,
in line with the previous year.  PPM's strong equity weighting helped the
Life Fund outperform its competition by an estimated 3% to 4%.

PPM's principal overseas operations in the US and Asia have been re-aligned to
report alongside the local operations to maximise the synergies between the
investment process and product manufacturing and distribution.


egg and Prudential Banking

In little more than a year egg has become established as a household name and
one of the UK's most recognised e-commerce brands.  Our strategy of offering
some of the most competitive and customer friendly products in the market,
delivered using the latest in Internet design and technology, has resulted in
an egg customer base of over 800,000 and deposit funds of £7.6 billion at the
year end. This remarkable growth has exceeded the initial business targets and
egg is regarded as the UK's leading e-commerce financial services web-site.

The combined Prudential Banking and egg mortgage book now stands at £1.7
billion, of which £452 million is egg mortgages, while egg personal loans
have reached £227 million.

Through egg Prudential has been able to reach a new type of customer: one who
is financially discerning and computer literate, who wants to benefit from
the combination of the best financial products the market has to offer, and
who uses Internet services which fit in with their lifestyle. The scale of
growth in the number of customers using our website is spectacular:  in July
1999 we had 184,000 visitors to the  egg website: in January 2000 that figure
rose to 1.1 million.  In January, 62% of all egg's deposit transactions took
place over the Internet.  90% of mortgage applications are via the Internet.

Our hi-tech communication centres in Dudley and Derby continue to take some
60,000 calls and 11,000 e-mail enquiries from customers each week.  Our
innovative working practices and specially designed employee training
programmes all lead to a unique egg culture and customer experience.

Building on the success of its core savings and loan products, egg launched
an Internet credit card in September 1999 which now has over 250,000 account
holders.  Not only do credit card customers benefit from market-leading rates
and a guarantee against Internet fraud but also an on-line shopping zone
which offers some of the best value retail consumer products available.

We have previously announced our intention to launch a new on-line unit trust
supermarket which will give egg customers access to investment funds
offered by leading investment houses, as well as an on-line share-dealing
service.  This service is now in live pilot.

During 1999 our investment in  egg totalled £150 million and we anticipate a
similar level of investment during 2000.  Current egg plans are to break even
in the latter part of 2001 as the benefits of the customer base and
cross-buying come through.

The intent to pursue plans for IPO, subject to progress in the business and
market conditions, announced today represents the best option for the
strategic development of  egg and for the maximisation of long-term
shareholder value of Prudential.  It will create greater financial flexibility
for  egg, will facilitate growth by giving it the ability to undertake
acquisitions through the use of Internet paper, and it will help to recruit,
incentivise and retain high calibre staff.



UNITED STATES

Jackson National Life

Jackson  National  Life  is our principal business in the  United  States.  
Its product  range  encompasses  traditional fixed  annuities,  variable 
annuities, equity-linked  indexed  annuities, Guaranteed Investment Contract 
business  and life assurance products.

Jackson  National  Life continues to go from strength to  strength  with 
record profits  and  sales in 1999.  Statutory profits have risen 10% to  £451
 million (after  including  a  £6  million  investment in  building  JNL's 
broker-dealer operations and PPM America) with single premium sales 43% ahead
of 1998 at  £4.1 billion.   Annuity sales of £2.4 billion were 65% ahead of
the prior year  while GIC sales totalled £1.6 billion.

Sales  of  variable annuity products were nearly £1.2 billion, more than 
double 1998's figures and compared with industry growth over the same period
of 21%.

Equity-linked  indexed  annuity sales surpassed expectations  and  reached 
£431 million, 52% above 1998 levels.  By the end of 1999, JNL ranked as the
largest provider of equity-indexed annuities in the United States.  Our
fixed annuity sales also rose by 23%, keeping us at second in that market.

We  have enhanced our distribution capability dramatically with the
introduction of new technology in a programme entitled JNL-2-YOU.  The
programme provides 24-hour  access to account balances, premium receipts, net
policy values and  other information either by telephone or by Internet.  This
programme will  be  rolled out  across  JNL's full product range, including
the full complement of  indexed and  variable  annuity products as well as
life insurance and traditional  fixed annuities.  We also intend to offer
on-line transactions.

Not  only has new technology improved the service experienced by customers, 
but it  has  positive financial benefits: the cost of a typical call from a
customer has  been reduced from US$5 to between 25-50 cents for a phone call,
and 5 cents for an Internet 'hit'.


ASIA

Prudential Asia

It has been a year of intense activity and significant progress for
Prudential Asia. Total insurance and investment sales of £871 million
have  more than quadrupled compared to the corresponding period in 1998. 
Within this  total,  insurance  sales more than doubled to  £288  million  due
to  the continuing  strong performance of the PruInvestor Bond and the 
PruLink  HiSaver Account in Singapore.

Through our partnership with ICICI, we are now the second largest private
sector mutual fund company in India with over 68,000 investors and offering a
choice of eight  open-ended funds.  Sales reached £583 million for the year,
against gross redemptions of £272 million, reflecting the liquid nature of
the money market funds. Total funds under management now total £453 million.

New  business achieved profits, which reflects the value added to the group
from new  insurance  business,  increased 61% on  1998  to  £90  million.  
Statutory operating  profit  (before development costs) for 1999 was  up  by 
17%  to  £27 million; operating profit after development costs totalled £15
million.

In  Malaysia,  Prudential became the first company to launch a  regular 
premium unit-linked  product.   Within Hong Kong we have entered  into  a 
joint-venture agreement  with  the Bank of China to provide pension products
to  residents  of Hong Kong through the Mandatory Provident Fund - a
compulsory pension scheme  to be introduced in 2000 by the Hong Kong
government.

In November 1999 we launched a new operation in Taiwan following the
acquisition of  a majority stake in Taiwan's Chinfon Life Insurance.  Chinfon
Life is one of the  top  ten life insurance companies in Taiwan, with a
customer base  of  over 250,000 and a network of more than 2,100 agents.

We  also gained a life licence in China and, in December, signed a joint
venture agreement  to  undertake a life insurance partnership with  China 
International Trust  and  Investment Corporation (CITIC) in Guangzhou, China. 
This represents the  culmination of several years' work and will be the first
Sino-British  life insurance  operation  in  China.   With a population  of  7
 million  people  in Guangzhou alone, this clearly represents a significant
long-term opportunity for us.

During  last  year, we also gained a life licence in Vietnam, where  we 
already have two operations in Ho Chi Minh City and Hanoi.






EUROPE

Prudential Europe

Our  strategy  for  continental  European  retail  markets  involves 
harnessing existing  product  resources  and tailoring them  to  individual 
market  needs.  Whilst  meeting  local presentational, fiscal and regulatory 
requirements,  the basic  core products will be the same in each market and be
produced in a single location.

We will be distributing through a series of non-exclusive strategic
partnerships with  leading local financial services providers.  Our products
will be  branded or co-branded 'Prudential'.

In  November 1999, we announced partnerships with CNP Assurances in  France 
and Signal  Iduna  in Germany.  In forging links with France's leading life 
assurer and  one of Germany's major insurance providers, we have gained access
to  local markets  and  marketing  expertise and large scale distribution 
networks.   Our strategic  partnerships  include  the sharing of  technical 
expertise  and  the consideration  of  joint  ventures  both in  the 
respective  home  markets  and elsewhere.

We  will  launch  the  first new products for distribution under  our 
strategic partnerships  in  France  and Germany later this  year.   In  the 
meantime,  we continue to develop our German broker business based in
Frankfurt where we  have already  established  a  leading position in the new 
but  rapidly-growing  unit linked market.

Whilst,  in the short term, retail savings and investment products are our 
main focus,  in  the  longer  term,  the provision of  funded  pensions  both 
on  an individual  and a group basis will be a major market opportunity.  In 
addition, we  will  distribute  products  through the  local  equivalents  of 
independent financial advisers and insurance brokers.



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