Full Year 2004 Sales

Prudential PLC 26 January 2005 Embargo: 07.00 hrs Wednesday 26 January 2005 PRUDENTIAL PLC 2004 NEW BUSINESS RESULTS Record Group Insurance APE sales â€¢ Record total Group Insurance APE sales of Â£1.85 billion, up 26 per cent on 2003 â€¢ UK & Europe APE sales up 40 per cent on 2003 â€¢ JNL total APE sales up 21 per cent on 2003 â€¢ Asia APE sales up 14 per cent on 2003 â€¢ M&G external funds under management of Â£28.7 billion up 19 per cent on 2003 â€¢ Prudential Corporation Asia investment operations' funds under management of Â£7.8 billion, up 19 per cent on 2003 Prudential's Group Chief Executive, Jonathan Bloomer, commented: 'All our businesses are showing strong momentum, and we have delivered significant year-on-year sales growth in each of our markets. Prudential UK's performance reflects its brand, financial strength and broad product range. The transition from direct sales force to multi-product, multi-channel distribution is nearing completion and we are well placed to continue to grow profitably in the UK market. In the US, JNL's attractive product range, distribution proposition and service offering have combined to deliver its highest ever level of variable annuity sales, up 14 per cent on 2003. New business growth in Asia reflects action we have taken in the region to focus on profitable and sustainable business. We have driven growth throughout the year, demonstrated by Q4 2004 APE sales up 25 per cent on Q3 2004 and full year APE sales up 14 per cent on 2003. Our joint venture with CITIC continues to develop in China, having been granted two new licences for Shanghai and Suzhou during 2004. It delivered growth of 70 per cent in new business APE sales on 2003. Our businesses in Asia are well positioned for further growth in 2005. M&G's gross sales were up 54 per cent on 2003, reflecting significant growth in both retail and institutional business. 2004 marked a record year of retail business with gross inflows of Â£2 billion, up 61 per cent on the previous year. A strong contribution across each of our businesses helped to achieve record sales in 2004. With the presence we have established in our chosen markets we will continue to deliver profitable growth in 2005.' *The narrative is on a Constant Exchange Rate (CER) throughout. For more details see Notes to Editors. UK and Europe Insurance Operations __________________________________ Prudential UK and Europe's APE sales were up 40 per cent on 2003 to Â£817 million. This included Â£111 million APE in relation to a substantial annuity transaction with Royal London which concluded in December1. Excluding this transaction, Prudential UK and Europe reported year-on-year sales growth of 21 per cent. APE sales in the fourth quarter of the year of Â£294 million were up 104 per cent on the fourth quarter of 2003 and 83 per cent up on the third quarter of 2004. This increase in premium income has been achieved without any material change in commission rates and we expect the full year new business margin to be broadly in line with that achieved in the first half of 2004. Partnerships The Partnerships channel has had an outstanding year with APE sales of Â£206 million, an increase of 489 per cent on 2003 (including Royal London). Excluding the Royal London transaction, APE sales were Â£95 million, up 171 per cent on 2003. Fourth quarter sales of Â£27 million (excluding Royal London) were up 200 per cent on the fourth quarter of 2003. This result reflects the continued growth in credit life protection product sales through our partnership agreements with Lloyds TSB and Alliance and Leicester, up 224 per cent on 2003 APE sales to Â£81 million. It was also due to increased individual annuity sales through our agreements with Zurich and Pearl, the latter being launched in September 2004. In the second half of 2005, the existing reassurance agreement with Zurich will be replaced in terms of new business with a direct offer arrangement under which advisers of Openwork (formerly Zurich Advice Network) will sell Prudential's range of annuity products to their customers on an exclusive basis following the Openwork operational launch. In addition, we are announcing today a partnership agreement with St. James's Place (SJP) which will allow SJP Partners to sell on an exclusive basis Prudential's annuity products to their customers. This agreement becomes effective in May 2005 and will run for five years. Intermediaries APE sales through our intermediary channel were Â£267 million, a 17 per cent increase on 2003. This growth was achieved through increased sales of unit-linked bonds of Â£49 million (up 219 per cent), individual annuities of Â£118 million (up 42 per cent) and off-shore bonds of Â£27 million (up 32 per cent). Sales of unit-linked bonds in 2004 endorsed our commitment to developing our capability in this market. This included the recently-launched range of protected funds which were the first of a series of developments aimed at consolidating our position as a major unit-linked bond provider to IFAs. Despite seeing reductions in sales of with-profit bonds during 2003, Prudential has the largest with-profits fund and believes there is still customer demand for products offering a smoothed investment return. To meet this demand we launched PruFund, our new transparent smoothed investment product in September. Savers invested Â£10 million (APE Â£1 million) in PruFund by the year-end. We saw another very strong return on the Prudential With-Profits Fund in 2004, which delivered a pre-tax return of 13.4 per cent, compared with the FTSE All Share (Total Return) of 12.8 per cent. Over the last five years, the With-Profits Fund has delivered a pre-tax return of 20.8 per cent. Prudential's bonus declaration will be announced on 22 February 2005. Business to Business APE sales were up 14 per cent on 2003 to Â£223 million, with fourth quarter sales of Â£67 million up 60 per cent on third quarter 2004 sales. Corporate pension sales were Â£152 million, 6 per cent higher than in 2003. Our focus on the corporate market, differentiated service proposition and ability to work in partnership with Employee Benefit Consultancies provide us with a strong base for increasing our share of this market. APE sales of bulk annuities were Â£47 million, an increase of 62 per cent on 2003. Sales of bulks comprised 83 separate schemes, 32 of which were achieved in the fourth quarter. The pipeline of schemes considering buyout is strong with a high level of enquiries about our new Risk Management products launched in 2004, as well as our established bulk product. Distribution During the year, Prudential was appointed to the regulated multi-tie panels for Sesame, Millfield and THINC Destini (Prudential was also appointed as THINC Destini's single-tie annuity provider). In addition, earlier this week, Prudential was appointed to work with Tenet on the detailed design of Tenet's regulated multi-tie platform and was also appointed by Burns-Anderson to lead the design and formulation of its multi-tie proposition as well as securing a place on its regulated multi-tie panel. Prudential expects that a significant proportion of IFAs will add to their whole-of-market proposition with a panel approach, whereby they distribute the product range of a small number of life companies. Depolarisation is also expected to have a significant impact on the bank distribution model in the UK, as banks are able to offer their customers products from a panel of different providers rather than from a single product provider. Any review by banks of existing single-tie relationships represents an opportunity for Prudential. Summary Prudential UK and Europe's performance in 2004 demonstrates our strength and breadth of distribution across a number of channels. We are well-placed to continue to benefit from the positive developments in the UK market. Jackson National Life (JNL) ___________________________ APE sales for the year of Â£453 million were up 21 per cent on 2003. Total retail sales of Â£368 million were up 12 per cent on 2003. Variable annuity sales growth in the first nine months (the latest period for which data is available) of 2004 was 14 per cent compared with 5 per cent market growth (Source: VARDS). Retail APE sales in the fourth quarter were Â£95 million, up 30 per cent on the same period in 2003. Variable annuities JNL delivered record variable annuity sales during 2004, reflecting the benefits of its innovative product range, distribution proposition and service offering. Total APE sales of Â£198 million were up 14 per cent on last year. For the first nine months of the year, JNL had a top 10 market position in terms of variable annuity net flows and its unbundled annuity product 'Perspective II' was the best selling variable annuity product in the US, in terms of net flows (Source VARDS). The rate of take up of the fixed account option continued at normal levels, with 29 per cent of the variable annuity premium going into the fixed accounts compared with 48 per cent in 2003. Fixed annuities Fixed annuity APE sales of Â£113 million were down 8 per cent on 2003, due to the continued low interest rate environment. The resulting lower crediting rates have limited demand for this product. However, recent interest rate moves have generated more interest in fixed and equity-linked indexed annuity products. In the fourth quarter, fixed annuity sales were up 5 per cent on the previous quarter. Equity-linked indexed annuities Equity-linked indexed annuity APE sales of Â£43 million were up 87 per cent on 2003, reflecting customers' increasing preference for fixed products with the potential for higher returns linked to equity index performance. Life JNL continues to focus on developing its life business to achieve a greater balance of fee, spread and underwriting income. A dedicated distribution team was created in 2003 to focus on building relationships with life agents and several new products have been introduced, such as variable universal life. Life APE sales of Â£14 million were 17 per cent up on 2003. An agreement to buy Life Insurance Company of Georgia was announced in November. Curian Capital In March 2003, JNL entered the Registered Investment Advisor channel with the launch of Curian Capital which provides innovative fee based separately managed accounts. It continues to build a strong position with total assets under management at the end of 2004 of Â£550 million compared with Â£139 million at the start of the year. Institutional Institutional APE sales of Â£85 million were up 98 per cent on 2003. JNL has taken advantage of attractive issuance opportunities as they have arisen during the year, and will continue to do so in 2005. Summary JNL is well positioned to grow faster than the market as current market conditions continue to favour companies which have a range of variable and fixed annuity product offerings, a relationship-based distribution model and award-winning service. Prudential Corporation Asia ___________________________ Insurance operations Prudential's Asian operations continue to show good new business growth and reflect our focus on building a profitable and sustainable platform. Overall APE sales of Â£181 million in the fourth quarter of 2004 are up 25 per cent over the third quarter and reflect continued momentum across the region. APE sales of Â£576 million for the year are up 14 per cent on last year with underlying growth of 20 per cent excluding discontinued lines in Japan. During 2004 we had great success in India in our life joint venture with ICICI (up 127 per cent at Â£34 million for our 26% stake) where our brand and ability to leverage product and distribution innovation has strengthened our position as the leading private sector life insurance provider. In Korea (up 113 per cent at Â£64 million), the large increase in APE sales has been driven by our successful multi-channel distribution and the launch of a variable universal life product. New business APE for China at Â£17 million increased by 70 per cent over 2003 and the prospects for significant growth over the long term remain compelling. During 2004 we received licences for two more cities, launching our Suzhou operation in September and Shanghai's opening is planned for the first quarter of 2005. We expect our pace of expansion in China to increase during 2005 as more cities and provinces are opened up to foreign insurers. Taiwan grew 23 per cent to Â£152 million with a continued focus on higher margin regular premium linked business in line with our strategic focus as discussed in the interim results. In the more established markets of Hong Kong, Singapore and Malaysia we continue actively to manage our business for sustainable and profitable growth. Average new business APE sales across these markets is 8 per cent higher than 2003. The remaining 'other' operations continue to grow well and are building scale, but during 2004 we saw a softening of industry growth particularly in Vietnam after the initial explosive growth following liberalisation of the market. Investment Business Total investment product funds under management are Â£7.8 billion up 19 per cent on 2003. Net investment product inflows were Â£1.2 billion, down 22 per cent on 2003. Strong net inflows in Japan (Â£1.3 billion), and Korea (Â£0.4 billion) were partially offset by net outflows in Taiwan of Â£0.9 billion where industry-wide concerns over the liquidity of some bond funds unsettled the market during the second half of 2004. The Indian mutual fund market has seen a marked slowdown this year principally due to rising and volatile interest rates affecting the growth of fixed income funds. Despite a 90 per cent decrease in net inflows over 2003, we have maintained our number one position for funds under management in India's private sector with a market share at around 14%. In Malaysia, we have attained a top 5 position in the market, 3 years after launch. Summary Prudential Corporation Asia has a strong platform across the region with a well diversified portfolio of businesses clearly focused on delivering sustainable and profitable growth over the long term. We remain very positive on the outlook for 2005. M&G ___ M&G enjoyed a significant increase in sales during 2004, with gross fund inflows up 54 per cent to Â£5.8 billion, reflecting its diversified product offering in the areas of retail fund management, institutional fixed income, pooled life and pension funds, property and private finance. Net fund inflows were up 48 per cent to Â£2 billion. External funds under management, which represent approximately one quarter of M&G's total funds under management, rose by 19 per cent during the year to Â£28.7 billion. Gross retail fund inflows were a record Â£2 billion in 2004, up 61 per cent on the previous year, boosted by international sales and the success of the M&G Property Fund. Net retail fund inflows during 2004 were Â£417 million. M&G's institutional business also had a successful year, especially in the areas of segregated fixed income and private finance, with gross fund inflows increasing 50 per cent to Â£3.9 billion. Net institutional fund inflows were Â£1.6 billion. M&G believe that market conditions are now more positive for fund management companies and its businesses are well placed to capitalise on this due to their strong competitive positions in their chosen markets. Egg ___ Egg will announce its full year results on 23 February 2005. -ENDS- Enquiries to: _____________ Rebecca Burrows, Group Communications Director 020 7548 3537 Media Relations Investors/Analysts Clare Staley 020 7548 3719 Mike Kempster 020 7548 3823 Joanne Davidson 020 7548 3708 Marina Lee-Steere 020 7548 3511 Notes to Editors: _________________ 1. In December 2004, we reached an agreement with Royal London to reassure Scottish Life's approximately 60,000 in-force annuities, representing in excess of Â£1 billion of funds under management. Prudential is initially providing reassurance to Scottish Life (a division of Royal London) which will continue to make payments to annuitants, with Prudential reimbursing the annuity payments administered by Scottish Life. It is intended that the Scottish Life annuities will transfer to Prudential, subject to legal and regulatory approvals, by the end of 2005 when Prudential will take over responsibility for the administration and paying of all these annuitants. 2. There will be conference call today for wire services hosted by Jonathan Bloomer, Group Chief Executive, and Philip Broadley, Group Finance Director at 7.45am (UK time). Dial-in telephone number: +44 (0) 20 8288 4530. Callers to quote 'Prudential' for access to the call. 3. There will be a conference call for investors and analysts at 2:30pm (UK time) hosted by Jonathan Bloomer, and Philip Broadley. Dial in telephone number: UK callers: + 44 (0) 20 7162 0184, US callers: + 1 334 420 4951. Callers to quote 'Prudential' for access to the call. A recording of this call will be available for replay for one week by dialling: UK: +44 (0) 20 7031 4064, US: +1 954 334 0342, Passcode 640410. 4. Sales for overseas operations have been reported using average exchange rates as shown in the attached schedules. Commentary is given on the results on a constant exchange rate basis. The two bases are compared in the table below. Annual Premium Equivalent Sales Actual exchange rates Constant exchange rates 2004 FY Â£m 2003 FY Â£m +/- (%) 2004 FY Â£m 2003 FY Â£m +/- (%) UK and Europe 817 584 40% 817 584 40% US 453 418 8% 453 374 21% Asia 576 555 4% 576 506 14% Total 1,846 1,557 19% 1,846 1,464 26% Gross Inflows Actual exchange rates Constant exchange rates 2004 FY Â£m 2003 FY Â£m +/- (%) 2004 FY Â£m 2003 FY Â£m +/- (%) M&G 5,845 3,797 54% 5,845 3,797 54% Asia 18,845 18,157 4% 18,845 16,864 12% Total 24,690 21,954 12% 24,690 20,661 20% Total Insurance and Investment New Business Actual exchange rates Constant exchange rates 2004 FY Â£m 2003 FY Â£m +/- (%) 2004 FY Â£m 2003 FY Â£m +/- (%) Insurance 12,130 9,183 32% 12,130 8,658 40% Investment 24,690 21,954 12% 24,690 20,661 20% Total 36,820 31,137 18% 36,820 29,316 26% 5. Annual premium equivalent (APE) sales comprise regular premium insurance sales plus one-tenth of single premium insurance sales. 6. Certain investment mandates previously reported as UK corporate pensions are now reported as M&G institutional investment flows. The impact is to reduce UK corporate pensions APE sales by Â£31 million for the full-year 2003. 7. US institutional products (previously referred to as 'stable value products') consist of guaranteed investment contracts (GICs), funding agreements and medium-term notes backed by funding agreements. *Prudential plc, a company incorporated and with its principal place of business in the United Kingdom, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has Â£170 billion in assets under management, as at 30 June 2004. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America. Forward-Looking Statements This statement may contain certain 'forward-looking statements' with respect to certain of Prudential's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates', and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential's forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make. Schedule 1A - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004 UK & Europe US (1) Asia (1) Total FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m Total Insurance 6,538 4,129 58% 4,420 3,628 22% 1,172 901 30% 12,130 8,658 40% Products Total Investment 5,845 3,797 54% - - - 18,845 16,864 12% 24,690 20,661 20% Products - Gross Inflows(2) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 12,383 7,926 56% 4,420 3,628 22% 20,017 17,765 13% 36,820 29,319 26% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m UK Insurance Operations: (4) Direct to Customer: Individual 8 9 (11%) 8 9 (11%) 16 18 (11%) 9 10 (10%) Pensions Life - With 11 13 (15%) 1 1 0% 12 14 (14%) 2 2 0% Profit Bond Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%) Individual 630 657 (4%) - - - 630 657 (4%) 63 66 (5%) Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 649 679 (4%) 10 12 (17%) 659 691 (5%) 75 80 (6%) DWP Rebates 265 280 (5%) - - - 265 280 (5%) 27 28 (4%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 914 959 (5%) 10 12 (17%) 924 971 (5%) 101 108 (6%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Business to Business: Corporate 153 168 (9%) 137 127 8% 290 295 (2%) 152 144 6% Pensions Individual 229 223 3% - - - 229 223 3% 23 22 5% Annuities Bulk Annuities 474 287 65% - - - 474 287 65% 47 29 62% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 856 678 26% 137 127 8% 993 805 23% 223 195 14% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Intermediated Distribution : Individual 55 53 4% 17 23 (26%) 72 76 (5%) 23 28 (18%) Pensions Corporate 134 67 100% 8 6 33% 142 73 95% 21 13 62% Pensions Life - With 231 450 (49%) - - - 231 450 (49%) 23 45 (49%) Profit Bond Life - Other 770 366 110% - - - 770 366 110% 77 37 108% Bond Life - Other - 2 - 5 22 (77%) 5 24 (79%) 5 22 (77%) Individual 1,180 828 43% - - - 1,180 828 43% 118 83 42% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 2,370 1,766 34% 30 51 (41%) 2,400 1,817 32% 267 228 17% DWP Rebates 89 103 (14%) - - - 89 103 (14%) 9 10 (10%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 2,459 1,869 32% 30 51 (41%) 2,489 1,920 30% 276 238 16% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Partnerships : Life - With 3 46 (93%) - - - 3 46 (93%) 0 5 (100%) Profit Bond Life - Other 787 247 219% 2 - - 789 247 219% 81 25 224% Individual 141 52 171% - - - 141 52 171% 14 5 180% Annuities Bulk Annuities 1,108 - - - - - 1,108 - - 111 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 2,039 345 491% 2 - - 2,041 345 492% 206 35 489% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total : Individual 63 62 2% 25 32 (22%) 88 94 (6%) 31 38 (18%) Pensions Corporate 287 235 22% 145 133 9% 432 368 17% 174 157 11% Pensions Life - With 245 509 (52%) 1 1 0% 246 510 (52%) 26 52 (50%) Profit Bond Life - Other 770 366 110% - - - 770 366 110% 77 37 108% Bond Life - Other 787 249 216% 8 24 (67%) 795 273 191% 87 49 78% Individual 2,180 1,760 24% - - - 2,180 1,760 24% 218 176 24% Annuities Bulk Annuities 1,582 287 451% - - - 1,582 287 451% 158 29 445% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 5,914 3,468 71% 179 190 (6%) 6,093 3,658 67% 770 537 43% DWP Rebates 354 383 (8%) - - - 354 383 (8%) 35 38 (8%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK 6,268 3,851 63% 179 190 (6%) 6,447 4,041 60% 806 575 40% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- European Insurance Operations :(1) Insurance 89 88 1% 2 - - 91 88 3% 11 9 22% Products ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total European 89 88 1% 2 - - 91 88 3% 11 9 22% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK & 6,357 3,939 61% 181 190 (5%) 6,538 4,129 58% 817 584 40% European Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- US Insurance Operations :(1) Fixed Annuities 1,130 1,227 (8%) - - - 1,130 1,227 (8%) 113 123 (8%) Equity-Linked 429 228 88% - - - 429 228 88% 43 23 87% Indexed Annuities Variable 1,981 1,728 15% - - - 1,981 1,728 15% 198 173 14% Annuities Life 16 - - 12 12 0% 28 12 133% 14 12 17% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 3,556 3,183 12% 12 12 0% 3,568 3,195 12% 368 330 12% Retail Guaranteed 180 163 10% - - - 180 163 10% 18 16 13% Investment Contracts GIC - Medium 672 270 149% - - - 672 270 149% 67 27 148% Term Note ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total US 4,408 3,616 22% 12 12 0% 4,420 3,628 22% 453 374 21% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Asian Insurance Operations :(1) China 9 6 50% 16 10 60% 25 16 56% 17 10 70% Hong Kong 255 169 51% 78 74 5% 333 243 37% 104 91 14% India (@26%) 5 4 25% 33 15 120% 38 19 100% 34 15 127% Indonesia 38 23 65% 28 27 4% 66 49 35% 32 29 10% Japan 17 9 89% 7 34 (79%) 24 43 (44%) 9 34 (74%) Korea 36 18 100% 60 28 114% 96 46 109% 64 30 113% Malaysia 7 10 (30%) 61 53 15% 68 63 8% 62 54 15% Singapore 199 168 18% 47 53 (11%) 246 221 11% 67 70 (4%) Taiwan 88 26 238% 143 121 18% 231 147 57% 152 124 23% Other (5) 8 6 33% 37 48 (23%) 45 54 (17%) 38 48 (21%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Asian 662 439 51% 510 462 10% 1,172 901 30% 576 506 14% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 11,427 7,994 43% 703 664 6% 12,130 8,658 40% 1,846 1,464 26% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m Total Insurance 6,538 4,128 58% 4,420 4,066 9% 1,172 989 19% 12,130 9,183 32% Products Total Investment 5,845 3,797 54% - - - 18,845 18,157 4% 24,690 21,954 12% Products - Gross Inflows (2) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 12,383 7,925 56% 4,420 4,066 9% 20,017 19,146 5% 36,820 31,137 18% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) FY 2004 FY 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m UK Insurance Operations :(4) Direct to Customer: Individual 8 9 (11%) 8 9 (11%) 16 18 (11%) 9 10 (10%) Pensions Life - With 11 13 (15%) 1 1 0% 12 14 (14%) 2 2 0% Profit Bond Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%) Individual 630 657 (4%) - - - 630 657 (4%) 63 66 (5%) Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 649 679 (4%) 10 12 (17%) 659 691 (5%) 75 80 (6%) DWP Rebates 265 280 (5%) - - - 265 280 (5%) 27 28 (4%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 914 959 (5%) 10 12 (17%) 924 971 (5%) 101 108 (6%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Business to Business: Corporate 153 168 (9%) 137 127 8% 290 295 (2%) 152 144 6% Pensions Individual 229 223 3% - - - 229 223 3% 23 22 5% Annuities Bulk Annuities 474 287 65% - - - 474 287 65% 47 29 62% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 856 678 26% 137 127 8% 993 805 23% 223 195 14% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Intermediated Distribution : Individual 55 53 4% 17 23 (26%) 72 76 (5%) 23 28 (18%) Pensions Corporate 134 67 100% 8 6 33% 142 73 95% 21 13 62% Pensions Life - With 231 450 (49%) - - - 231 450 (49%) 23 45 (49%) Profit Bond Life - Other Bond 770 366 110% - - - 770 366 110% 77 37 108% Life - Other - 2 - 5 22 (77%) 5 24 (79%) 5 22 (77%) Individual 1,180 828 43% - - - 1,180 828 43% 118 83 42% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 2,370 1,766 34% 30 51 (41%) 2,400 1,817 32% 267 228 17% DWP Rebates 89 103 (14%) - - - 89 103 (14%) 9 10 (10%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 2,459 1,869 32% 30 51 (41%) 2,489 1,920 30% 276 238 16% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Partnerships : Life - With 3 46 (93%) - - - 3 46 (93%) 0 5 (100%) Profit Bond Life - Other 787 247 219% 2 - - 789 247 219% 81 25 224% Individual 141 52 171% - - - 141 52 171% 14 5 180% Annuities Bulk Annuities 1,108 - - - - - 1,108 - - 111 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 2,039 345 491% 2 - - 2,041 345 492% 206 35 489% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total : Individual 63 62 2% 25 32 (22%) 88 94 (6%) 31 38 (18%) Pensions Corporate 287 235 22% 145 133 9% 432 368 17% 174 157 11% Pensions Life - With 245 509 (52%) 1 1 0% 246 510 (52%) 26 52 (50%) Profit Bond Life - Other Bond 770 366 110% - - - 770 366 110% 77 37 108% Life - Other 787 249 216% 8 24 (67%) 795 273 191% 87 49 78% Individual 2,180 1,760 24% - - - 2,180 1,760 24% 218 176 24% Annuities Bulk Annuities 1,582 287 451% - - - 1,582 287 451% 158 29 445% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 5,914 3,468 71% 179 190 (6%) 6,093 3,658 67% 770 537 43% DWP Rebates 354 383 (8%) - - - 354 383 (8%) 35 38 (8%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK 6,268 3,851 63% 179 190 (6%) 6,447 4,041 60% 806 575 40% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- European Insurance Operations : (1b) Insurance 89 87 2% 2 - - 91 87 5% 11 9 22% Products ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total European 89 87 2% 2 - - 91 87 5% 11 9 22% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK & European 6,357 3,938 61% 181 190 (5%) 6,538 4,128 58% 817 584 40% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- US Insurance Operations : (1b) Fixed Annuities 1,130 1,375 (18%) - - - 1,130 1,375 (18%) 113 138 (18%) Equity-Linked 429 255 68% - - - 429 255 68% 43 25 72% Indexed Annuities Variable 1,981 1,937 2% - - - 1,981 1,937 2% 198 194 2% Annuities Life 16 - - 12 13 (8%) 28 13 115% 14 13 8% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total Retail 3,556 3,567 (0%) 12 13 (8%) 3,568 3,580 (0%) 368 370 (1%) Guaranteed 180 183 (2%) - - - 180 183 (2%) 18 18 0% Investment Contracts GIC - Medium Term 672 303 122% - - - 672 303 122% 67 30 123% Note ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total US Insurance 4,408 4,053 9% 12 13 (8%) 4,420 4,066 9% 453 418 8% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Asian Insurance Operations : (1b) China 9 7 29% 16 11 45% 25 18 39% 17 12 42% Hong Kong 255 189 35% 78 83 (6%) 333 272 22% 104 102 2% India (@26%) 5 4 25% 33 16 106% 38 20 90% 34 16 113% Indonesia 38 27 41% 28 31 (10%) 66 58 14% 32 34 (6%) Japan 17 9 89% 7 35 (80%) 24 44 (45%) 9 36 (75%) Korea 36 19 89% 60 30 100% 96 49 96% 64 32 100% Malaysia 7 11 (36%) 61 59 3% 68 70 (3%) 62 60 3% Singapore 199 181 10% 47 57 (18%) 246 238 3% 67 75 (11%) Taiwan 88 28 214% 143 132 8% 231 160 44% 152 135 13% Other (5) 8 7 14% 37 53 (30%) 45 60 (25%) 38 54 (30%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Insurance 662 482 37% 510 507 1% 1,172 989 19% 576 555 4% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 11,427 8,473 35% 703 710 (1%) 12,130 9,183 32% 1,846 1,557 19% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Schedule 2 PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2004 INVESTMENT OPERATIONS Opening FUM Gross Redemptions Net Other Market & Net Closing inflows inflows movements currency movement FUM movements in FUM Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m 2004 M&G M&G branded retail 8,819 1,795 ( 1,351) 444 - 960 1,404 10,223 investment products Prudential branded 1,325 159 ( 186) ( 27) - 92 65 1,390 UK retail investment products (6) M&G institutional (7) 14,048 3,891 ( 2,304) 1,587 145 1,312 3,044 17,092 ----- ----- ----- ----- ----- ----- ----- ----- Total M&G 24,192 5,845 ( 3,841) 2,004 145 2,364 4,513 28,705 ----- ----- ----- ----- ----- ----- ----- ----- Asia India 2,049 9,129 ( 9,068) 61 ( 21) 55 95 2,144 Taiwan 2,666 5,696 ( 6,550) ( 854) - ( 15) ( 869) 1,797 Korea 933 2,132 ( 1,696) 436 ( 42) 99 493 1,426 Other Mutual Fund 752 1,814 ( 307) 1,507 - ( 38) 1,469 2,221 Operations ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Mutual 6,400 18,771 ( 17,621) 1,150 ( 63) 101 1,188 7,588 Fund Operations ----- ----- ----- ----- ----- ----- ----- ----- Hong Kong MPF 196 74 ( 26) 48 - - 48 244 Products (8) ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Investment 6,596 18,845 ( 17,647) 1,198 ( 63) 101 1,236 7,832 Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Investment 30,788 24,690 ( 21,488) 3,202 82 2,465 5,749 36,537 Products ----- ----- ----- ----- ----- ----- ----- ----- Opening FUM Gross Redemptions Net Other Market & Net Closing inflows inflows movements currency movement FUM movements in FUM Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m 2003 M&G M&G branded retail 7,587 1,068 ( 883) 185 ( 14) 1,061 1,232 8,819 investment products Prudential branded 1,137 143 ( 144) ( 1) - 189 188 1,325 UK retail investment products (6) M&G institutional 11,560 2,586 ( 1,417) 1,169 - 1,319 2,488 14,048 (4) (7) ----- ----- ----- ----- ----- ----- ----- ----- Total M&G 20,284 3,797 ( 2,444) 1,353 ( 14) 2,569 3,908 24,192 ----- ----- ----- ----- ----- ----- ----- ----- Asia India 1,372 7,534 ( 6,906) 628 ( 67) 116 677 2,049 Taiwan 2,425 7,488 ( 7,114) 374 - ( 133) 241 2,666 Korea 993 2,339 ( 2,329) 10 ( 25) ( 45) ( 60) 933 Other Mutual Fund 306 724 ( 267) 457 - ( 11) 446 752 Operations ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Mutual 5,096 18,085 ( 16,616) 1,469 ( 92) ( 73) 1,304 6,400 Fund Operations ----- ----- ----- ----- ----- ----- ----- ----- Hong Kong MPF 136 72 ( 19) 53 - 7 60 196 Products (8) ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Investment 5,232 18,157 ( 16,635) 1,522 ( 92) ( 66) 1,364 6,596 Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Investment 25,516 21,954 (19,079) 2,875 ( 106) 2,503 5,272 30,788 Products ----- ----- ----- ----- ----- ----- ----- ----- Opening FUM Gross Redemptions Net Other Market & Net Closing inflows inflows movements currency movement FUM movements in FUM Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m 2004 movement relative to 2003 M&G M&G branded retail 16% 68% (53%) 140% - (10%) 14% 16% investment products Prudential branded 17% 11% (29%) (2600%) - (51%) (65%) 5% UK retail investment products (6) M&G institutional 22% 50% (63%) 36% - (1%) 22% 22% (4)(7) ----- ----- ----- ----- ----- ----- ----- ----- Total M&G 19% 54% (57%) 48% 1136% (8%) 15% 19% ----- ----- ----- ----- ----- ----- ----- ----- Asia India 49% 21% (31%) (90%) 69% (53%) (86%) 5% Taiwan 10% (24%) 8% (328%) - 89% (461%) (33%) Korea (6%) (9%) 27% 4260% (68%) 320% 922% 53% Other Mutual Fund 146% 151% (15%) 230% - (245%) 229% 195% Operations ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Mutual 26% 4% (6%) (22%) 32% 238% (9%) 19% Fund Operations ----- ----- ----- ----- ----- ----- ----- ----- Hong Kong MPF 44% 3% (37%) (9%) - - (20%) 24% Products (8) ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Investment 26% 4% (6%) (21%) 32% 253% (9%) 19% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Investment 21% 12% (13%) 11% 177% (2%) 9% 19% Products ----- ----- ----- ----- ----- ----- ----- ----- US (9) FY 2004 FY 2003 +/- (%) Â£m Â£m Curian Capital External Funds 550 139 296% under Management ----- ----- ----- Schedule 3 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2004 VERSUS QUARTER 4 2003 (10) INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m UK Insurance Operations : (4) Direct to Customer: Individual 2 1 100% 2 2 0% 4 3 33% 2 2 0% Pensions Life - With 2 3 (33%) - - - 2 3 (33%) 0 0 0% Profit Bond Life - Other - - - - 1 - - 1 - - 1 - Individual 166 138 20% - - - 166 138 20% 17 14 21% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 170 142 20% 2 3 33% 172 145 19% 19 17 12% DWP Rebates 13 - - - - - 13 - - 1 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 183 142 29% 2 3 33% 185 145 28% 20 17 18% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Business to Business: Corporate 45 39 15% 33 30 10% 78 69 13% 38 34 12% Pensions Individual 68 56 21% - - - 68 56 21% 7 6 17% Annuities Bulk Annuities 222 98 127% - - - 222 98 127% 22 10 120% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 335 193 74% 33 30 10% 368 223 65% 67 49 37% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Intermediated Distribution : Individual 10 11 (9%) 1 4 (75%) 11 15 (27%) 2 5 (60%) Pensions Corporate 7 29 (76%) 2 1 100% 9 30 (70%) 3 4 (25%) Pensions Life - With 43 162 (73%) - - - 43 162 (73%) 4 16 (75%) Profit Bond Life - Other Bond 250 114 119% - - - 250 114 119% 25 11 127% Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%) Individual 326 233 40% - - - 326 233 40% 33 23 43% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 636 549 16% 4 7 (43%) 640 556 15% 68 62 10% DWP Rebates ( 3) 43 (107%) - - - ( 3) 43 (107%) ( 0) 4 (100%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 633 592 7% 4 7 (43%) 637 599 6% 67 66 2% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Partnerships : Life - With - 1 - - - - - 1 - - 0 - Profit Bond Life - Other 214 69 210% - - - 214 69 210% 21 7 200% Individual 53 23 130% - - - 53 23 130% 5 2 150% Annuities Bulk Annuities 1,108 - - - - - 1,108 - - 111 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 1,375 93 1378% - - - 1,375 93 1378% 138 9 1433% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total : Individual 12 12 0% 3 6 (50%) 15 18 (17%) 4 7 (43%) Pensions Corporate 52 68 (24%) 35 31 13% 87 99 (12%) 40 38 5% Pensions Life - With 45 166 (73%) - - - 45 166 (73%) 5 17 (71%) Profit Bond Life - Other Bond 250 114 119% - - - 250 114 119% 25 11 127% Life - Other 214 69 210% 1 3 (67%) 215 72 199% 22 10 120% Individual 613 450 36% - - - 613 450 36% 61 45 36% Annuities Bulk Annuities 1,330 98 1257% - - - 1,330 98 1257% 133 10 1230% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 2,516 977 158% 39 40 3% 2,555 1,017 151% 291 138 111% DWP Rebates 10 43 (77%) - - 0% 10 43 (77%) 1 4 (75%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK Insurance 2,526 1,020 148% 39 40 3% 2,565 1,060 142% 292 142 106% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- European Insurance Operations : (10) Insurance 18 41 (56%) 1 - - 19 41 (54%) 3 4 (25%) Products ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total European 18 41 (56%) 1 - - 19 41 (54%) 3 4 (25%) Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK & European 2,544 1,061 140% 40 40 0% 2,584 1,101 135% 294 146 101% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- US Insurance Operations : (10) Fixed Annuities 282 222 27% - - - 282 222 27% 28 22 27% Equity-Linked 136 71 92% - - - 136 71 92% 14 7 100% Indexed Annuities Variable 492 466 6% - - - 492 466 6% 49 47 4% Annuities Life 6 - - 3 2 50% 9 2 350% 4 2 100% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-total Retail 916 759 21% 3 2 50% 919 761 21% 95 78 22% Guaranteed Investment 74 ( 9) 922% - - - 74 ( 9) 922% 7 ( 1) 800% Contracts GIC - Medium Term 48 ( 4) 1300% - - - 48 ( 4) 1300% 5 ( 0) - Note ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total US Insurance 1,038 746 39% 3 2 50% 1,041 748 39% 107 77 39% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Asian Insurance Operations : (10) China 3 2 50% 5 3 67% 8 5 60% 5 3 67% Hong Kong 94 55 71% 23 28 (18%) 117 83 41% 32 34 (6%) India (@26%) 1 1 0% 8 6 33% 9 7 29% 8 6 33% Indonesia 11 11 0% 8 8 0% 19 19 0% 9 9 0% Japan 5 2 150% 2 2 0% 7 4 75% 3 2 50% Korea 6 14 (57%) 20 13 54% 26 27 (4%) 21 14 50% Malaysia 2 2 0% 22 16 38% 24 18 33% 22 16 38% Singapore 45 85 (47%) 16 17 (6%) 61 102 (40%) 21 26 (19%) Taiwan 24 10 140% 48 38 26% 72 48 50% 50 39 28% Other (5) 2 2 0% 10 15 (33%) 12 17 (29%) 10 15 (33%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Insurance 193 184 5% 162 146 11% 355 330 8% 181 164 10% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 3,775 1,991 90% 205 188 9% 3,980 2,179 83% 583 387 51% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- INVESTMENT OPERATIONS M&G (4)(7) Asia Mutual Funds Hong Kong MPF Products (8) Total Investment Products Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Q4 2004 Q4 2003 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m Opening FUM 25,876 23,193 12% 6,540 6,316 4% 232 186 25% 32,648 29,696 10% Gross inflows 2,393 772 210% 5,051 4,832 5% 17 16 6% 7,460 5,619 33% Less redemptions (1,006) ( 604) (67%) (4,121) (4,346) 5% (5) (3) (67%) (5,132) (4,954) (4%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Net flows 1,387 168 726% 930 486 91% 11 13 (15%) 2,328 667 249% Other movements 122 - - ( 11) ( 38) 71% - - - 111 (38) 392% Market and currency 1,321 831 59% 129 ( 364) 135% 0 ( 3) 100% 1,450 464 213% movements ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Net movement in 2,830 999 183% 1,048 84 1148% 12 10 20% 3,889 1,093 256% FUM ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Closing FUM 28,705 24,192 19% 7,588 6,400 19% 244 196 24% 36,538 30,789 19% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Schedule 4 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2004 VERSUS QUARTER 3 2004 INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m UK Insurance Operations : (4) Direct to Customer: Individual Pensions 2 1 100% 2 2 0% 4 3 33% 2 2 0% Life - With Profit Bond 2 3 (33%) - - - 2 3 (33%) 0 0 0% Individual 166 159 4% - - - 166 159 4% 17 16 6% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 170 163 4% 2 2 - 172 165 4% 19 18 6% DWP Rebates 13 - - - - - 13 - - 1 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 183 163 12% 2 2 0% 185 165 12% 20 18 11% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Business to Business: Corporate Pensions 45 31 45% 33 28 18% 78 59 32% 38 31 23% Individual 68 68 0% - - - 68 68 0% 7 7 0% Annuities Bulk Annuities 222 43 416% - - - 222 43 416% 22 4 450% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 335 142 136% 33 28 18% 368 170 116% 67 42 60% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Intermediated Distribution : Individual Pensions 10 12 (17%) 1 5 (80%) 11 17 (35%) 2 6 (67%) Corporate Pensions 7 10 (30%) 2 2 0% 9 12 (25%) 3 3 0% Life - With Profit Bond 43 55 (22%) - - - 43 55 (22%) 4 6 (33%) Life - Other Bond 250 206 21% - - - 250 206 21% 25 21 19% Life - Other - - - 1 1 0% 1 1 0% 1 1 0% Individual 326 309 6% - - - 326 309 6% 33 31 6% Annuities ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 636 592 7% 4 8 (50%) 640 600 7% 68 67 1% DWP Rebates ( 3) - - - - - ( 3) - - ( 0) - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 633 592 7% 4 8 (50%) 637 600 6% 67 67 0% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Partnerships : Life - With Profit Bond - 1 - - - - - 1 - - 0 - Life - Other 214 234 (9%) - 1 - 214 235 (9%) 21 24 (13%) Individual 53 40 33% - - - 53 40 33% 5 4 25% Annuities Bulk Annuities 1,108 - - - - - 1,108 - - 111 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total 1,375 275 400% - 1 - 1,375 276 398% 138 29 376% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total : Individual Pensions 12 13 (8%) 3 7 (57%) 15 20 (25%) 4 8 (50%) Corporate Pensions 52 41 27% 35 30 17% 87 71 23% 40 34 18% Life - With Profit Bond 45 59 (24%) - - - 45 59 (24%) 5 6 (17%) Life - Other Bond 250 206 21% - - - 250 206 21% 25 21 19% Life - Other 214 234 (9%) 1 2 (50%) 215 236 (9%) 22 25 (12%) Individual 613 576 6% - - - 613 576 6% 61 58 5% Annuities Bulk Annuities 1,330 43 2993% - - - 1,330 43 2993% 133 4 3225% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-Total 2,516 1,172 115% 39 39 0% 2,555 1,211 111% 291 156 87% DWP Rebates 10 - - - - - 10 - - 1 - - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK Insurance 2,526 1,172 116% 39 39 0% 2,565 1,211 112% 292 156 87% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- European Insurance Operations : (10) Insurance Products 18 35 (49%) 1 1 0% 19 36 (47%) 3 5 (40%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total European Insurance 18 35 (49%) 1 1 0% 19 36 (47%) 3 5 (40%) Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total UK & European 2,544 1,207 111% 40 40 0% 2,584 1,247 107% 294 161 83% Insurance Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- US Insurance Operations : (10) Fixed Annuities 282 275 3% - - - 282 275 3% 28 28 0% Equity-Linked 136 135 1% - - - 136 135 1% 14 14 0% Indexed Annuities Variable Annuities 492 483 2% - - - 492 483 2% 49 48 2% Life 6 5 20% 3 4 (25%) 9 9 0% 4 5 (20%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Sub-total Retail 916 898 2% 3 4 (25%) 919 902 2% 95 94 1% Guaranteed Investment 74 74 0% - - - 74 74 0% 7 7 0% Contracts GIC - Medium Term Note 48 55 (13%) - - - 48 55 (13%) 5 6 (17%) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total US Insurance 1,038 1,027 1% 3 4 (25%) 1,041 1,031 1% 107 107 0% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Asian Insurance Operations : (10) China 3 1 200% 5 5 0% 8 6 33% 5 5 0% Hong Kong 94 53 77% 23 19 21% 117 72 63% 32 24 33% India (@26%) 1 1 0% 8 7 14% 9 8 13% 8 7 14% Indonesia 11 6 83% 8 6 33% 19 12 58% 9 7 29% Japan 5 5 0% 2 2 0% 7 7 0% 3 3 0% Korea 6 3 100% 20 13 54% 26 16 63% 21 13 62% Malaysia 2 2 0% 22 18 22% 24 20 20% 22 18 22% Singapore 45 57 (21%) 16 11 45% 61 68 (10%) 21 17 24% Taiwan 24 34 (29%) 48 38 26% 72 72 0% 50 41 22% Other (5) 2 2 0% 10 10 0% 12 12 0% 10 10 0% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Asian Insurance 193 164 18% 162 129 26% 355 293 21% 181 145 25% Operations ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Group Total 3,775 2,398 57% 205 173 18% 3,980 2,571 55% 583 413 41% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- INVESTMENT OPERATIONS M&G (4) (7) Asia Mutual Funds Hong Kong MPF Products (8) Total Investment Products Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Q4 2004 Q3 2004 +/- (%) Â£m Â£m Â£m Â£m Â£m Â£m Â£m Â£m Opening FUM 25,876 24,442 6% 6,539 6,878 (5%) 233 216 8% 32,648 31,534 4% Gross inflows 2,393 1,274 88% 5,051 4,176 21% 17 16 6% 7,460 5,466 36% Less redemptions ( 1,006) ( 567) (77%) ( ( 11% ( 5) ( 5) 0% ( ( 1% 4,121) 4,608) 5,132) 5,179) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Net flows 1,387 707 96% 930 ( 432) 315% 11 11 (0%) 2,328 287 711% Other movements 122 63 94% ( 11) ( 14) 21% - - - 111 49 127% Market and currency 1,321 664 99% 129 110 17% 0 5 (100%) 1,450 779 86% movements ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Net movement in FUM 2,830 1,434 97% 1,048 ( 336) 412% 12 16 (25%) 3,889 1,114 249% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Closing FUM 28,705 25,876 11% 7,588 6,540 16% 244 232 5% 36,538 32,648 12% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Schedule 5 PRUDENTIAL PLC - ANNUITY NEW BUSINESS - Q4 2004 VERSUS Q4 2003 INSURANCE OPERATIONS Q4 2004 +/- (%) Q4 2003 +/- (%) Â£m Â£m Total Sales UK Insurance Operations: ANNUITIES Bulks: Life fund backed 1 0% 4 4% Shareholder backed 1,329 100% 94 96% ----- ----- ----- ----- Total 1,330 100% 98 100% ----- ----- ----- ----- Individual: Life fund backed 20 3% 190 42% Shareholder backed 593 97% 260 58% ----- ----- ----- ----- Total 613 100% 450 100% ----- ----- ----- ----- Total Annuities: Life fund backed 21 1% 194 35% Shareholder backed 1,922 99% 354 65% ----- ----- ----- ----- Total 1,943 100% 548 100% ----- ----- ----- ----- PRUDENTIAL PLC - ANNUITY NEW BUSINESS - FY 2004 VERSUS FY 2003 INSURANCE OPERATIONS FY 2004 +/- (%) FY 2003 +/- (%) Â£m Â£m Total Sales UK Insurance Operations: ANNUITIES Bulks: Life fund backed 7 0% 10 4% Shareholder backed 1,575 100% 277 96% ----- ----- ----- ----- Total 1,582 100% 287 100% ----- ----- ----- ----- Individual: Life fund backed 433 20% 893 51% Shareholder backed 1,747 80% 867 49% ----- ----- ----- ----- Total 2,180 100% 1,760 100% ----- ----- ----- ----- Total Annuities: Life fund backed 440 12% 903 44% Shareholder backed 3,322 88% 1,144 56% ----- ----- ----- ----- Total 3,762 100% 2,047 100% ----- ----- ----- ----- Notes to Schedules : (1) Insurance and investment new business for overseas operations has been calculated using constant exchange rates. The applicable rate for Jackson National Life is 1.83. A comparison between the results at actual exchange rates and at constant exchange rates is given in the press release. (1b) Insurance and investment new business for overseas operations has been calculated using average exchange rates. The applicable rate for Jackson National Life is 1.83 (2003 - 1.64). (2) Represents cash received from sale of investment products. (3) Annual Equivalents, calculated as regular new business contributions + 10% single new business contributions, are subject to roundings. (4) Certain investment mandates previously reported as UK corporate pensions are now reported as M&G institutional investment flows. The impact is to reduce UK corporate pensions APE sales by Â£32 million for the full-year 2003 (Â£26 million for the first nine months of 2003). (5) In Asia, 'Other' insurance operations include Thailand, The Philippines and Vietnam. (6) Scottish Amicable and Prudential branded Investment Products. (7) Balance includes segregated pensions fund business, private finance flows and M&G South Africa institutional business. M&G institutional funds under management for Q2 2003 have been restated to include funds managed on behalf of the Prudential Staff Pension Scheme previously categorised as internal funds. Other movements reflect the net flows arising from the cash portion of a tactical asset allocation fund managed in South Africa. (8) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest in the Hong Kong MPF operation. (9) Balance sheet figures have been calculated at closing exchange rates (10) Sales are converted using the year to date average exchange rate applicable at the time. The sterling results for individual quarters represent the difference between the year to date reported sterling results at successive quarters and will include foreign exchange movements earlier periods. This information is provided by RNS The company news service from the London Stock Exchange

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