Full Year New Business
Prudential PLC
25 January 2006
Embargo: 7.00am 25 January 2006
PRUDENTIAL PLC FULL YEAR 2005 NEW BUSINESS RESULTS
Double-digit growth across all businesses
• Total Group Insurance APE sales of £2.15 billion, up 15 per cent on 2004
• Jackson National Life's (JNL) APE sales of £515 million, up 13 per cent
on 2004
• APE sales at Prudential Corporation Asia of £732 million, up 23 per
cent on 2004
• Prudential UK and Europe APE sales of £900 million, up 10 per cent on 2004
• M&G had record gross fund inflows of £7.9 billion, up 35 per cent on 2004
All comparisons above and in the narrative below are quoted at constant exchange
rates (CER). See Notes to Editors for further details.
Commenting, Mark Tucker, Group Chief Executive said:
'All our businesses continued to grow strongly, with double-digit year-on-year
percentage sales gains across the board.
'JNL, our US business, has maintained healthy growth with total sales up 13 per
cent on 2004. Variable annuity sales are ahead 31 per cent from 2004 in what we
believe will be a flat market, with Perspective II being the second best-selling
VA product in the US in terms of net flows. At the nine month stage, market
share in variable annuities had risen to 3.5 per cent from 2.8 per cent at Q3
2004.
'In Asia, full year APE sales were up 23 per cent on 2004. Fourth quarter sales
of £219 million were 16 per cent ahead of the same quarter in 2004 which was, in
itself, a very strong quarter.
'In the UK and Europe, APE sales were £900 million, an increase of 10 per cent
on last year. Fourth quarter sales on an APE basis of £200 million were 26 per
cent ahead of the third quarter with a strong quarter for corporate pensions in
particular but also stronger bond and individual annuity sales.
'Both M&G and our Asian Fund Management business have grown their third party
funds under management strongly in 2005.
'M&G saw the strongest retail sales in its history with £3.8 billion of gross
inflows and significant increases in equity and property sales, while
maintaining its leading position in fixed income. Institutional sales were £4.1
billion. Overall M&G saw net inflows of £3.9 billion, up from £2 billion in
2004.
'Our Japanese and Korean asset management businesses each saw net inflows of
more than £900 million. Total third party funds under management in Asia were
£10.1 billion, up 29 per cent on a comparable basis.'
Commentary on Full Year 2005 New Business Results
UK and Europe Insurance Operations
Prudential UK and Europe finished 2005 strongly with fourth quarter APE sales up
26 per cent on the third quarter. APE sales for the full-year increased by 10
per cent on 2004 to £900 million.
Bulk annuity sales were a significant driver of growth, with APE sales of £203
million up 28 per cent on 2004. This included the Phoenix Life & Pensions
transaction announced in June 2005 which contributed £145 million to the
full-year result.
APE sales of individual annuities were up 2 per cent on 2004 at £222 million,
driven by strong sales through the Partnerships and Direct to Consumer channels
which increased by 114 per cent and 14 per cent respectively. Despite APE sales
of with-profit annuities through the Intermediaries channel increasing 100 per
cent year-on-year, total individual annuities sales through this channel
decreased 15 per cent reflecting the very competitive pricing environment
throughout much of the year. Prudential has maintained a leading position in the
annuities market and has reached agreement for an additional two new partnership
arrangements, which will start to generate new business sales in 2006.
Prudential launched a distribution partnership with Openwork in November under
which Openwork's 2,200 advisers will sell Prudential's range of conventional,
with-profits and impaired life annuities to their customers on an exclusive
basis. Openwork was previously known as Zurich Advice Network and was
re-launched as a new multi-tie distribution company in June 2005.
In December, Prudential and Royal London entered into an agreement under which
all pension annuities arising from vestings of policies written under the
Scottish Life brand in the period between January 2005 and December 2010 will be
reassured by Prudential as they come into payment. Scottish Life (a division of
Royal London) will continue to pay the annuitants with Prudential reimbursing
the annuity payments to Scottish Life. This arrangement supplements the
agreement reached between Prudential and Royal London in December 2004 in
relation to Scottish Life's in-payment annuities book.
APE sales of unit-linked bonds increased 31 per cent to £64 million, reflecting
Prudential's growing presence in the IFA unit-linked bond market. This offset
the year-on-year decrease in with-profit bond sales which fell 31 per cent.
Despite the contraction seen in the corporate pensions market earlier in the
year, there was an up-turn in corporate pensions APE sales in the fourth quarter
of 2005 which increased 94 per cent on the third quarter. APE sales for the
full-year increased 5 per cent on 2004, driven by 83 new scheme wins and by
Prudential's worksite marketing capability which led to a significant increase
in the number of new entrants to existing schemes.
Prudential UK and Europe has made a good start to 2006. Earlier this month,
Prudential reached agreement with Royal London to acquire the portfolio of
in-payment pension annuities that had been written primarily under the Royal
London brand, but which also included some annuities written under the Refuge
Assurance brand. Refuge Assurance was acquired by Royal London as part of the
United Assurance Group in 2001.
The book covers approximately 59,000 policies (weighted average age 66 with no
deferred annuities) with assets of around £650 million and will generate premium
income of around £65 million on an APE basis in 2006 (see Notes to Editors for
further details). This is the third in-force annuity book acquisition Prudential
has completed since December 2004, with combined assets of over £3 billion.
Prudential UK & Europe will continue to pursue profitable opportunities in its
chosen product areas and distribution channels.
M&G
M&G delivered record gross fund inflows of £7.9 billion during 2005, an increase
of 35 per cent on the same period last year, reflecting the strengths of 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 also grew significantly, almost doubling to £3.9
billion. External funds under management, which represent a quarter of M&G's
total funds, rose by 26 per cent to £36 billion.
M&G's gross retail fund inflows of £3.8 billion were its highest ever and nearly
double the previous year. Net retail fund inflows totalled £1.3 billion, more
than triple those in 2004. In the UK, M&G significantly increased its sales of
equity funds on the back of strong fund performance, which saw 92 per cent of
funds beating their sector average over three years. In addition, M&G continued
to see strong fund inflows into property and successfully maintained its leading
position in fixed income. M&G International, which sells funds in Germany,
Austria, Italy, Luxembourg and Switzerland, continued to experience very strong
growth by more than tripling its funds under management last year. In M&G's
South African business, market leading products led to a doubling of retail
funds under management.
M&G's institutional business also saw strong growth in the areas of private
finance and property. In private finance, the leveraged loan business continued
to grow and in August M&G broke new ground with the launch of Europe's first
pure leveraged loan fund, the M&G European Loan Fund. During the year, M&G
continued the success of its Collateralised Debt Obligation programme with the
launch of five new CDOs in 2005. In property, the continued development of
external vehicles managed by Prudential Property Investment Managers (PruPIM)
for third party clients delivered strong fund inflows. Gross fund inflows across
M&G's institutional businesses totalled £4.1billion, with net fund inflows
growing 59 per cent to £2.5 billion.
Jackson National Life
Jackson National Life's (JNL) full year APE sales of £515 million represented a
13 per cent increase on the 2004 result, driven by increased sales of variable
annuities, fixed index annuities and institutional product sales. Retail APE
sales for the year of £416 million were up 12 per cent on 2004.
JNL delivered record variable annuity sales during 2005 of £261 million, up 31
per cent on last year, reflecting JNL's clearly differentiated product
structure, distribution proposition and service offering. Total sales of
variable annuities exceeded $1 billion in each quarter of 2005, with sales in
each consecutive quarter surpassing the last. This result was achieved against a
flat variable annuity market through the first nine months of 2005 and reflects
JNL's continued success in product innovation and its relationship-based
distribution strategy.
For the first nine months of the year, JNL had a top five market position in
terms of variable annuity net flows and JNL's flagship unbundled annuity product
'Perspective II' was the second-best selling variable annuity product in the
market in terms of net flows. The rate of take up of the fixed account option
continued to decline, with only 20 per cent of the variable annuity premium
going into the fixed accounts compared with 29 per cent in 2004.
Fixed annuity APE sales of £79 million were down 31 per cent on 2004, reflecting
the continued low interest rates and flat yield curve in the US, which have
limited customers' demand for this product. JNL continues to pursue profitable
growth and hence has been unwilling to compromise entry spreads in this market.
JNL was ranked the tenth largest provider of fixed annuities during the first
nine months of 2005.
Fixed index annuity APE sales of £62 million were up 44 per cent on 2004,
reflecting customers' increasing preference for products with the potential for
higher returns linked to equity index performance. JNL has benefited from its
approach to educating broker dealers about a complex product; while at the same
time offering lower commissions and passing the benefit to the end consumer. JNL
was ranked the eighth largest provider of fixed index annuities for the first
nine months of 2005, improving from ninth for the full year 2004.
Life APE sales of £15 million were up 7 per cent on 2004. JNL substantially
completed the integration of Life Insurance Company of Georgia's operations at
the end of 2005, having converted 1.5 million policies onto its platform.
Curian Capital provides innovative fee based separately managed accounts and
continues to build a strong position with total assets under management at the
end of 2005 of $1.67 billion (£973 million) compared with $1.06 billion (£615
million) at the start of 2005.
Institutional APE sales of £99 million were up 15 per cent on 2004. JNL took
advantage of attractive issuance opportunities as they have arisen during the
year, and will continue to participate in this market on an opportunistic basis.
In 2006, as the first of the Baby Boomer generation begins to turn 60, the
median retirement age in the US, Jackson is well positioned in the financial
advice distribution channels with product platforms that offer valuable
retirement income guarantees. We remain optimistic about the opportunities for
JNL in the US market.
Prudential Corporation Asia
Insurance Operations
Prudential's Asian life operations had a good fourth quarter in 2005 with APE
sales up 16 per cent compared to the same quarter in 2004 and 11 per cent
compared to third quarter in 2005. For the full year 2005 APE sales of £732
million represent an increase of 23 per cent compared to 2004 and reflect the
success of Prudential's dynamic business model in the region coupled with Asia's
inherent growth potential.
Prudential Asia's established markets of Malaysia, Singapore and Hong Kong
collectively delivered growth of 12 per cent for 2005 compared to 2004.
Singapore delivered a 26 per cent increase in APE sales driven by broadening of
its unit linked range and increased bank distribution. Prudential's Hong Kong
operation delivered a respectable growth of 7 per cent despite some market
softness, particularly in bank distribution. Prudential's Malaysian operation
saw growth of 6 per cent in 2005 with sales activity slowing in the second half
of the year as agents adjusted to new quotation requirements for linked
products.
In Taiwan, Prudential remains focused on writing profitable and capital
efficient business rather than pursuing pure volume. Although 2005 APE volumes
of £162 million were broadly in line with 2004 levels, the proportion of linked
business in the mix increased from 49 per cent in 2004 to 72 per cent for 2005
principally from the investment focused pension product launched earlier this
year.
The CITIC-Prudential joint venture in China continues to make excellent progress
as it extended its geographic coverage and ten cities are now operational. APE
sales of £25 million were up 47 per cent in 2005.
Prudential's Indian life joint venture, ICICI-Prudential Life, had another very
successful year with Prudential's 26 per cent share APE at £57 million up 63 per
cent on 2004 driven by ongoing expansion. The business now has 74 branches and
has grown agent numbers by 36 per cent during the year to 70,000.
The multi-channel distribution model in Korea continues to perform strongly with
APE sales of £135 million, up 88 per cent, driven mainly by success in the tied
financial advisor and general agency channels and the continued appeal of our
universal life product.
In Indonesia, Prudential celebrated its 10th anniversary and has continued to
strengthen its position with APE sales of £46 million in the year, up 53 per
cent compared to 2004, driven principally by a doubling of agents during the
year to 22,000.
Prudential's other life operations in Thailand, the Philippines, Japan and
Vietnam collectively decreased by 13 per cent in 2005 to £41 million largely due
to Vietnam.
Fund Operations
Net third party inflows of £1.3 billion were up 3 per cent on 2004. Strong net
inflows in Japan of £905 million and Korea of £926 million were offset by net
outflows in Taiwan of £745 million where the bond fund market remains unsettled.
Prudential Asset Management has had considerable success in increasing its
proportion of equity funds in the flows with these representing 80 per cent of
net inflows in 2005 compared to 22 per cent in 2004. This has been driven
principally by good equity fund performance, particularly in Korea where all
funds are in the top two quartiles.
Total third party funds under management were £10.1 billion, up 13 per cent on
2004. In August last year, ICICI increased its stake in Prudential's India asset
management joint venture from 45 per cent to 51 per cent. As a result,
Prudential no longer consolidates this business at 100 per cent and the year end
numbers are reported at 49 per cent, resulting in a £1.1 billion reduction in
funds under management for the year. On a comparable basis, full year 2005 funds
under management grew 29 per cent on 2004.
Prudential remains confident of its ability to grow its life and funds
management businesses strongly and profitably in Asia.
- ENDS -
Enquiries:
Media Investors / analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
William Baldwin-Charles 020 7548 3719 Marina Novis 020 7548 3511
Joanne Doyle 020 7548 3708
Notes to Editors
1. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales and are subject to roundings.
2. 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
FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%)
£m £m £m £m
UK & Europe 900 817 10% 900 818 10%
US 515 453 14% 515 456 13%
Asia 732 576 27% 732 594 23%
Total 2,146 1,846 16% 2,146 1,867 15%
Gross Inflows
Actual exchange rates Constant exchange rates
FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%)
£m £m £m £m
M&G 7,916 5,845 35% 7,916 5,845 35%
Asia 18,457 19,068 (3%) 18,457 19,906 (7%)
Total 26,373 24,913 6% 26,373 25,751 2%
Total Insurance and Investment New Business
Actual exchange rates Constant exchange rates
FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%)
£m £m £m £m
Insurance 13,784 12,130 14% 13,784 12,191 13%
Investment 26,373 24,913 6% 26,373 25,751 2%
Total 40,157 37,043 8% 40,157 37,943 6%
3. Prudential is initially providing reassurance to Royal London, which will
continue to pay the annuitants with Prudential reimbursing the annuity
payments to Royal London. During 2006, the intention is for these annuity
policies to transfer to Prudential, subject to legal and regulatory
approvals, at which point Prudential will take over direct responsibility
for the payment of all annuitants.
4. For JNL market share data is provided for the first nine months of the year
being the latest available. Variable annuity data is sourced from VARDS,
fixed annuity data is sourced from LIMRA and fixed index annuities data is
sourced from The Advantage Group.
5. There will be a conference call today for wire services at 7.45am (GMT)
hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group
Finance Director. Dial in telephone number: +44 (0)20 8609 0793. Passcode:
155439#
6. There will be a conference call for investors and analysts at 9.30am (GMT)
hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group
Finance Director. Dial in telephone number +44 (0)20 8609 0793. Pin number
487687#. A recording of this call will be available for replay for one week
by dialling: +44 (0)20 8609 0289 from the UK or +1 866 676 5865 from the US.
The conference reference number is 136838.
7. High resolution photographs are available to the media free of charge at
www.newscast.co.uk (+44 (0) 207 608 1000).
8. Total number of Prudential plc shares in issue as at 31st December 2005
was 2,386,784,266.
9. Financial Calendar 2005-2006:
Full Year 2005 Results 16th March 2006
Q1 New Business Figures 20th April 2006
AGM 18th May 2006
Interim Results 28th July 2006
Q3 New Business Figures 19th October 2006
10. Egg results will be announced on March 16th 2006 as part of the Prudential
Plc results announcement.
*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 £214 billion in
assets under management, (as at 27 July 2005). 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 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia (1a) Total
+/- +/- +/- +/-
FY FY (%) FY FY (%) FY FY (%) FY FY (%)
2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m £m £m
Total Insurance
Products 7,276 6,539 11% 5,023 4,451 13% 1,485 1,201 24% 13,784 12,191 13%
Total
Investment
Products -
Gross
Inflows (2) 7,916 5,845 35% - - - 18,457 19,906 (7%) 26,373 25,751 2%
Group Total 15,192 12,384 23% 5,023 4,451 13% 19,942 21,108 (6%) 40,157 37,943 6%
INSURANCE OPERATIONS
Single Regular Total Annual
Equivalents (3)
FY FY +/- FY FY +/- FY FY +/- FY FY +/-
2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual
Pensions 12 8 50% 8 8 0% 20 16 25% 9 9 0%
Life - With
Profit Bond 15 11 36% 1 1 0% 16 12 33% 3 2 50%
Life - Other 2 - - 2 1 100% 4 1 300% 2 1 100%
Individual
Annuities 720 630 14% - - - 720 630 14% 72 63 14%
Sub-Total 749 649 15% 11 10 10% 760 659 15% 86 75 15%
DWP Rebates 244 265 (8%) - - - 244 265 (8%) 24 27 (11%)
Total 993 914 9% 11 10 10% 1,004 924 9% 110 101 9%
Business to
Business:
Corporate
Pensions 242 153 58% 146 137 7% 388 290 34% 170 152 12%
Individual
Annuities 212 229 (7%) - - - 212 229 (7%) 21 23 (9%)
Bulk Annuities 511 474 8% - - - 511 474 8% 51 47 9%
Total 965 856 13% 146 137 7% 1,111 993 12% 243 223 9%
Intermediated
Distribution:
Individual
Pensions 65 55 18% 18 17 6% 83 72 15% 25 23 9%
Corporate
Pensions 43 134 (68%) 7 8 (13%) 50 142 (65%) 11 21 (48%)
Life - With
Profit Bond 159 231 (31%) - - - 159 231 (31%) 16 23 (30%)
Life - Other
Bond 947 770 23% - - - 947 770 23% 95 77 23%
Life - Other 6 - - 6 5 20% 12 5 140% 7 5 40%
Individual
Annuities 995 1,180 (16%) - - - 995 1,180 (16%) 100 118 (15%)
Sub-Total 2,215 2,370 (7%) 31 30 3% 2,246 2,400 (6%) 253 267 (5%)
DWP Rebates 83 89 (7%) - - - 83 89 (7%) 8 9 (11%)
Total 2,298 2,459 (7%) 31 30 3% 2,329 2,489 (6%) 261 276 (5%)
Partnerships:
Life - With
Profit Bond - 3 - - - - - 3 - - 0 -
Life - Other 814 787 3% 3 2 50% 817 789 4% 84 81 4%
Individual
Annuities 295 141 109% - - - 295 141 109% 30 14 114%
Bulk
Annuities 1,519 1,108 37% - - - 1,519 1,108 37% 152 111 37%
Total 2,628 2,039 29% 3 2 50% 2,631 2,041 29% 266 206 29%
Total:
Individual
Pensions 77 63 22% 26 25 4% 103 88 17% 34 31 10%
Corporate
Pensions 285 287 (1%) 153 145 6% 438 432 1% 182 174 5%
Life - With
Profit Bond 174 245 (29%) 1 1 0% 175 246 (29%) 18 26 (31%)
Life - Other
Bond 947 770 23% - - - 947 770 23% 95 77 23%
Life - Other 822 787 4% 11 8 38% 833 795 5% 93 87 7%
Individual
Annuities 2,222 2,180 2% - - - 2,222 2,180 2% 222 218 2%
Bulk Annuities 2,030 1,582 28% - - - 2,030 1,582 28% 203 158 28%
Sub-Total 6,557 5,914 11% 191 179 7% 6,748 6,093 11% 847 770 10%
DWP Rebates 327 354 (8%) - - - 327 354 (8%) 33 35 (6%)
Total UK
Insurance
Operations 6,884 6,268 10% 191 179 7% 7,075 6,447 10% 879 806 9%
European
Insurance
Operations :(1a)
Insurance
Products 201 89 126% - 3 - 201 92 118% 20 12 67%
Total European
Insurance
Operations 201 89 126% - 3 - 201 92 118% 20 12 67%
Total UK &
European
Insurance
Operations 7,085 6,357 11% 191 182 5% 7,276 6,539 11% 900 818 10%
US Insurance
Operations :(1a)
Fixed Annuities 788 1,138 (31%) - - - 788 1,138 (31%) 79 114 (31%)
Fixed Index
Annuities 616 432 43% - - - 616 432 43% 62 43 44%
Variable
Annuities 2,605 1,995 31% - - - 2,605 1,995 31% 261 200 31%
Life (9) 11 16 (31%) 14 12 17% 25 28 (11%) 15 14 7%
Sub-total
Retail 4,020 3,581 12% 14 12 17% 4,034 3,593 12% 416 370 12%
Guaranteed 355 181 96% - - - 355 181 96% 36 18 100%
Investment
Contracts
GIC - Medium
Term Note 634 677 (6%) - - - 634 677 (6%) 63 68 (7%)
Total US
Insurance
Operations 5,009 4,439 13% 14 12 17% 5,023 4,451 13% 515 456 13%
Asian
Insurance
Operations :(1a)
China 17 9 89% 23 16 44% 40 25 60% 25 17 47%
Hong Kong 289 258 12% 83 79 5% 372 337 10% 112 105 7%
India (@26%)(6) 4 5 (20%) 57 34 68% 61 39 56% 57 35 63%
Indonesia 42 35 20% 42 26 62% 84 61 38% 46 30 53%
Japan 30 17 76% 4 7 (43%) 34 24 42% 7 729 (22%)
Korea 29 41 (29%) 132 68 94% 161 109 48% 135 72 88%
Malaysia 9 7 29% 66 62 6% 75 69 9% 67 63 6%
Singapore 284 203 40% 58 48 21% 342 251 36% 86 68 26%
Taiwan 124 92 35% 150 149 1% 274 241 14% 162 158 3%
Other (4) 9 8 13% 33 37 (11%) 42 45 (7%) 34 38 (11%)
Total Asian
Insurance
Operations 837 675 24% 648 526 23% 1,485 1,201 24% 732 594 23%
Group Total 12,931 11,471 13% 853 720 18% 13,784 12,191 13% 2,146 1,867 15%
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2005
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US(1b) Asia(1b) Total
+/- +/- +/- +/-
FY FY (%) FY FY (%) FY FY (%) FY FY (%)
2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m £m £m
Total
Insurance
Products 7,276 6,538 11% 5,023 4,420 14% 1,485 1,172 27% 13,784 12,130 14%
Total
Investment
Products -
Gross
Inflows (2) 7,916 5,845 35% - - - 18,457 19,068 (3%) 26,373 24,913 6%
Group Total 15,192 12,383 23% 5,023 4,420 14% 19,942 20,240 (1%) 40,157 37,043 8%
INSURANCE OPERATIONS
Single Regular Total Annual
Equivalents (3)
FY FY +/- FY FY +/- FY FY +/- FY FY +/-
2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual
Pensions 12 8 50% 8 8 0% 20 16 25% 9 9 0%
Life - With
Profit Bond 15 11 36% 1 1 0% 16 12 33% 3 2 50%
Life - Other 2 - - 2 1 100% 4 1 300% 2 1 100%
Individual
Annuities 720 630 14% - - - 720 630 14% 72 63 14%
Sub-Total 749 649 15% 11 10 10% 760 659 15% 86 75 15%
DWP Rebates 244 265 (8%) - - - 244 265 (8%) 24 27 (11%)
Total 993 914 9% 11 10 10% 1,004 924 9% 110 101 9%
Business to
Business:
Corporate
Pensions 242 153 58% 146 137 7% 388 290 34% 170 152 12%
Individual
Annuities 212 229 (7%) - - - 212 229 (7%) 21 23 (9%)
Bulk Annuities 511 474 8% - - - 511 474 8% 51 47 9%
Total 965 856 13% 146 137 7% 1,111 993 12% 243 223 9%
Intermediated
Distribution :
Individual
Pensions 65 55 18% 18 17 6% 83 72 15% 25 23 9%
Corporate
Pensions 43 134 (68%) 7 8 (13%) 50 142 (65%) 11 21 (48%)
Life - With
Profit Bond 159 231 (31%) - - - 159 231 (31%) 16 23 (30%)
Life - Other
Bond 947 770 23% - - - 947 770 23% 95 77 23%
Life - Other 6 - - 6 5 20% 12 5 140% 7 5 40%
Individual
Annuities 995 1,180 (16%) - - - 995 1,180 (16%) 100 118 (15%)
Sub-Total 2,215 2,370 (7%) 31 30 3% 2,246 2,400 (6%) 253 267 (5%)
DWP Rebates 83 89 (7%) - - - 83 89 (7%) 8 9 (11%)
Total 2,298 2,459 (7%) 31 30 3% 2,329 2,489 (6%) 261 276 (5%)
Partnerships :
Life - With
Profit Bond - 3 - - - - - 3 - - 0 -
Life - Other 814 787 3% 3 2 50% 817 789 4% 84 81 4%
Individual
Annuities 295 141 109% - - - 295 141 109% 30 14 114%
Bulk Annuities 1,519 1,108 37% - - - 1,519 1,108 37% 152 111 37%
Total 2,628 2,039 29% 3 2 50% 2,631 2,041 29% 266 206 29%
Total :
Individual
Pensions 77 63 22% 26 25 4% 103 88 17% 34 31 10%
Corporate
Pensions 285 287 (1%) 153 145 6% 438 432 1% 182 174 5%
Life - With
Profit Bond 174 245 (29%) 1 1 0% 175 246 (29%) 18 26 (31%)
Life - Other
Bond 947 770 23% - - - 947 770 23% 95 77 23%
Life - Other 822 787 4% 11 8 38% 833 795 5% 93 87 7%
Individual
Annuities 2,222 2,180 2% - - - 2,222 2,180 2% 222 218 2%
Bulk Annuities 2,030 1,582 28% - - - 2,030 1,582 28% 203 158 28%
Sub-Total 6,557 5,914 11% 191 179 7% 6,748 6,093 11% 847 770 10%
DWP Rebates 327 354 (8%) - - - 327 354 (8%) 33 35 (6%)
Total UK
Insurance
Operations 6,884 6,268 10% 191 179 7% 7,075 6,447 10% 879 806 9%
European
Insurance
Operations :(1b)
Insurance
Products 201 89 126% - 2 - 201 91 121% 20 11 82%
Total European
Insurance
Operations 201 89 126% - 2 - 201 91 121% 20 11 82%
Total UK &
European
Insurance
Operations 7,085 6,357 11% 191 181 6% 7,276 6,538 11% 900 817 10%
US Insurance
Operations :(1b)
Fixed Annuities 788 1,130 (30%) - - - 788 1,130 (30%) 79 113 (30%)
Fixed Index
Annuities 616 429 44% - - - 616 429 44% 62 43 44%
Variable
Annuities 2,605 1,981 31% - - - 2,605 1,981 31% 261 198 32%
Life (9) 11 16 (31%) 14 12 17% 25 28 (11%) 15 14 7%
Sub-total
Retail 4,020 3,556 13% 14 12 17% 4,034 3,568 13% 416 368 13%
Guaranteed
Investment
Contracts 355 180 97% - - - 355 180 97% 36 18 100%
GIC - Medium
Term Note 634 672 (6%) - - - 634 672 (6%) 63 67 (6%)
Total US
Insurance
Operations 5,009 4,408 14% 14 12 17% 5,023 4,420 14% 515 453 14%
Asian Insurance
Operations :(1b)
China 17 9 89% 23 16 44% 40 25 60% 25 17 47%
Hong Kong 289 255 13% 83 78 6% 372 333 12% 112 104 8%
India (@26%)(6) 4 5 (20%) 57 33 73% 61 38 61% 57 34 68%
Indonesia 42 38 11% 42 28 50% 84 66 27% 46 32 44%
Japan 30 17 76% 4 7 (43%) 34 24 42% 7 9 (22%)
Korea 29 36 (19%) 132 60 120% 161 96 68% 135 64 111%
Malaysia 9 7 29% 66 61 8% 75 68 10% 67 62 8%
Singapore 284 199 43% 58 47 23% 342 246 39% 86 67 28%
Taiwan 124 88 41% 150 143 5% 274 231 19% 162 152 7%
Other (4) 9 8 13% 33 37 (11%) 42 45 (7%) 34 38 (11%)
Total Asian
Insurance
Operations 837 662 26% 648 510 27% 1,485 1,172 27% 732 576 27%
Group Total 12,931 11,427 13% 853 703 21% 13,784 12,130 14% 2,146 1,846 16%
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2005
INVESTMENT OPERATIONS
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
£m £m £m £m £m £m £m £m
2005
M&G
Retail 11,613 3,842 ( 2,497) 1,345 - 1,669 3,014 14,627
Institutional
(5) 17,092 4,074 ( 1,557) 2,517 ( 229) 2,189 4,477 21,569
Total M&G (11) 28,705 7,916 ( 4,054) 3,862 ( 229) 3,858 7,491 36,196
Asia
India (10) 2,144 10,181 ( 10,034) 147 ( 1,192) 366 ( 679) 1,465
Taiwan 1,797 2,379 ( 3,124) ( 745) - 248 ( 497) 1,300
Korea 1,427 3,529 ( 2,603) 926 ( 21) 471 1,376 2,803
Japan 1,638 1,487 ( 582) 905 - 152 1,057 2,695
Other Mutual
Fund
Operations 583 800 ( 604) 196 - 62 258 841
Total Asian
Mutual Fund
Operations 7,589 18,376 ( 16,947) 1,429 ( 1,213) 1,299 1,515 9,104
Hong Kong MPF
Products
(@36%) (6) 244 79 ( 30) 49 - 44 93 337
Third Party
Institutional
Mandates 705 2 ( 153) ( 151) - 137 ( 14) 691
Total Asia
Other 949 81 ( 183) ( 102) - 181 79 1,028
Total Asian
Investment
Operations (11) 8,538 18,457 ( 17,130) 1,327 ( 1,213) 1,480 1,594 10,132
Total
Investment
Products 37,243 26,373 ( 21,184) 5,189 ( 1,442) 5,338 9,085 46,328
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
£m £m £m £m £m £m £m £m
2004
M&G
Retail 10,144 1,954 ( 1,537) 417 - 1,052 1,469 11,613
Institutional
(5) 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
Japan 411 1,392 ( 123) 1,269 - ( 42) 1,227 1,638
Other Mutual
Fund
Operations 341 422 ( 184) 238 - 4 242 583
Total Asian
Mutual Fund
Operations 6,400 18,771 ( 17,621) 1,150 ( 63) 101 1,188 7,588
Hong Kong MPF
Products
(@36%) (6) 196 74 ( 26) 48 - - 48 244
Third Party
Institutional
Mandates 552 222 ( 140) 82 - 71 153 705
Total Asia
Other 748 296 ( 166) 130 - 71 201 949
Total Asian
Investment
Operations 7,148 19,067 ( 17,787) 1,280 ( 63) 172 1,389 8,537
Total
Investment
Products 31,340 24,912 ( 21,628) 3,284 82 2,536 5,902 37,242
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
% % % % % % % %
2005 movement
relative to
2004
M&G
Retail 14% 97% (62%) 223% - 59% 105% 26%
Institutional
(5) 22% 5% 32% 59% (258%) 67% 47% 26%
Total M&G 19% 35% (6%) 93% (258%) 63% 66% 26%
Asia
India 5% 12% (11%) 141% (5576%) 565% (815%) (32%)
Taiwan (33%) (58%) 52% 13% - 1753% 43% (28%)
Korea 53% 66% (53%) 112% 50% 376% 179% 97%
Japan 299% 7% (373%) (29%) - 462% (14%) 65%
Other Mutual
Fund
Operations 71% 90% (228%) (18%) - 1450% 7% 44%
Total Asian
Mutual Fund
Operations 19% (2%) 4% 24% (1825%) 1186% 28% 20%
Hong Kong MPF
Products
(@36%) (6) 24% 7% (15%) 2% - - 94% 38%
Third Party
Institutional
Mandates 28% (99%) (9%) (284%) - 93% (109%) (2%)
Total Asia
Other 27% (73%) (10%) (178%) - 155% (61%) 8%
Total Asian
Investment
Operations 19% (3%) 4% 4% (1825%) 760% 15% 19%
Total
Investment
Products 19% 6% 2% 58% (1859%) 110% 54% 24%
US (7) FY 2005 FY 2004 +/- (%)
£m £m
Curian
Capital
External Funds
under
Administration 973 615 58%
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2005 VERSES QUARTER 4 2004
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- (%)
2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual
Pensions 2 2 0% 2 2 0% 4 4 0% 2 2 -
Life - With
Profit Bond 4 2 100% - - - 4 2 100% 0 0 -
Life - 2 - - - - - 2 - - 0 - -
Other
Individual
Annuities 178 166 7% - - - 178 166 7% 18 17 6%
Sub-Total 186 170 9% 2 2 0% 188 172 9% 21 19 11%
DWP Rebates 10 13 (23%) - - - 10 13 (23%) 1 1 0%
Total 196 183 7% 2 2 0% 198 185 7% 22 20 10%
Business to
Business:
Corporate
Pensions 81 45 80% 54 33 64% 135 78 73% 62 38 63%
Individual
Annuities 61 68 (10%) - - - 61 68 (10%) 6 7 (14%)
Bulk
Annuities 98 222 (56%) - - - 98 222 (56%) 10 22 (55%)
Total 240 335 (28%) 54 33 64% 294 368 (20%) 78 67 16%
Intermediated
Distribution:
Individual
Pensions 15 10 50% 4 1 300% 19 11 73% 6 2 200%
Corporate
Pensions 11 7 57% 1 2 (50%) 12 9 33% 2 3 (33%)
Life - With
Profit Bond 40 43 (7%) - - - 40 43 (7%) 4 4 0%
Life - Other
Bond 265 250 6% - - - 265 250 6% 27 25 8%
Life - 2 - - 2 1 100% 4 1 300% 2 1 100%
Other
Individual
Annuities 209 326 (36%) - - - 209 326 (36%) 21 33 (36%)
Sub-Total 542 636 (15%) 7 4 75% 549 640 (14%) 61 68 (10%)
DWP Rebates 3 ( 3) - - - - 3 ( 3) - 0 ( 0) 0%
Total 545 633 (14%) 7 4 75% 552 637 (13%) 62 67 (7%)
Partnerships:
Life - With - - - - - - - - - - - -
Profit Bond
Life -
Other 185 214 (14%) 1 - - 186 214 (13%) 20 21 (5%)
Individual
Annuities 149 53 181% - - - 149 53 181% 15 5 200%
Bulk
Annuities - 1,108 - - - - - 1,108 - - 111 -
Total 334 1,375 (76%) 1 - - 335 1,375 (76%) 34 138 (75%)
Total :
Individual
Pensions 17 12 42% 6 3 100% 23 15 53% 8 4 100%
Corporate
Pensions 92 52 77% 55 35 57% 147 87 69% 64 40 60%
Life - With
Profit Bond 44 45 (2%) - - - 44 45 (2%) 4 5 (20%)
Life - Other
Bond 265 250 6% - - - 265 250 6% 27 25 8%
Life - 189 214 (12%) 3 1 200% 192 215 (11%) 22 22 0%
Other
Individual
Annuities 597 613 (3%) - - - 597 613 (3%) 60 61 (2%)
Bulk
Annuities 98 1,330 (93%) - - - 98 1,330 (93%) 10 133 (92%)
Sub-Total 1,302 2,516 (48%) 64 39 64% 1,366 2,555 (47%) 194 291 (33%)
DWP Rebates 13 10 30% - - - 13 10 30% 1 1 0%
Total UK
Insurance
Operations 1,315 2,526 (48%) 64 39 64% 1,379 2,565 (46%) 196 292 (33%)
European
Insurance
Operations :
Insurance
Products 47 18 161% - 1 - 47 19 147% 5 3 67%
Total
European
Insurance
Operations 47 18 161% - 1 - 47 19 147% 5 3 67%
Total UK &
European
Insurance
Operations 1,362 2,544 (46%) 64 40 60% 1,426 2,584 (45%) 200 294 (32%)
US Insurance
Operations :(8)
Fixed
Annuities 149 282 (47%) - - - 149 282 (47%) 15 28 (46%)
Fixed Index
Annuities 155 136 14% - - - 155 136 14% 16 14 14%
Variable
Annuities 735 492 49% - - - 735 492 49% 74 49 51%
Life (9) 3 6 (50%) 4 3 33% 7 9 (22%) 4 4 0%
Sub-total
Retail 1,042 916 14% 4 3 33% 1,046 919 14% 108 95 14%
Guaranteed
Investment
Contracts 49 74 (34%) - - - 49 74 (34%) 5 7 (29%)
GIC - Medium
Term Note 9 48 (81%) - - - 9 48 (81%) 1 5 (80%)
Total US
Insurance
Operations 1,100 1,038 6% 4 3 33% 1,104 1,041 6% 114 107 7%
Asian
Insurance
Operations :
China 8 3 167% 8 5 60% 16 8 100% 9 5 80%
Hong Kong 88 94 (6%) 28 23 22% 116 117 (1%) 37 32 16%
India (@26%)(6) 1 1 0% 16 8 100% 17 9 89% 16 8 100%
Indonesia 6 11 (45%) 13 8 63% 19 19 0% 14 9 56%
Japan 11 5 120% - 2 - 11 7 57% 1 3 (67%)
Korea 18 6 200% 41 20 105% 59 26 127% 43 21 105%
Malaysia 1 2 (50%) 20 22 (9%) 21 24 (13%) 20 22 (9%)
Singapore 90 45 100% 19 16 19% 109 61 79% 28 21 33%
Taiwan 29 24 21% 40 48 (17%) 69 72 (4%) 43 50 (14%)
Other (4) 2 2 0% 9 10 (10%) 11 12 (8%) 9 10 (10%)
Total Asian
Insurance
Operations 254 193 32% 194 162 20% 448 355 26% 219 181 21%
Group Total 2,716 3,775 (28%) 262 205 28% 2,978 3,980 (25%) 534 583 (8%)
INVESTMENT OPERATIONS
M&G (5) Asia Mutual Funds Asia Other Total Investment
Products
Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/-
2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%)
£m £m £m £m £m £m £m £m
Opening
FUM 33,760 25,876 30% 8,296 6,540 27% 980 788 24% 43,036 33,204 30%
Gross
inflows 2,316 2,393 (3%) 4,056 5,051 (20%) 22 128 (83%) 6,394 7,572 (16%)
Less
redemptions( 1,189) ( 1,006) (18%)(3,684) (4,121) 11% ( 11) ( 5) (120%)( 4,884) ( 5,132) 5%
Net flows 1,127 1,387 (19%) 372 930 (60%) 11 123 (91%) 1,510 2,440 (38%)
Other
movements ( 74) 122 (161%) ( 6) ( 11) 45% - - - ( 80) 111 (172%)
Market and
currency
movements 1,382 1,321 5% 444 129 244% 37 39 (5%) 1,863 1,489 25%
Net
movement 2,436 2,830 (14%) 811 1,048 (23%) 48 161 (70%) 3,295 4,039 (18%)
in FUM
Closing 36,196 28,705 26% 9,104 7,588 20% 1,028 949 8% 46,328 37,242 24%
FUM
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2005 VERSUS QUARTER 3 2005
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents(3)
Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/-
2005 2005 (%) 2005 2005 (%) 2005 2005 (%) 2005 2005 (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct to
Customer:
Individual
Pensions 2 2 0% 2 2 0% 4 4 0% 2 2 0%
Life - With
Profit Bond 4 4 0% - - - 4 4 0% 0 0 0%
Life - Other 2 - - - - - 2 - - 0 - -
Individual
Annuities 178 178 0% - - - 178 178 0% 18 18 0%
Sub-Total 186 184 1% 2 2 0% 188 186 1% 21 20 5%
DWP Rebates 10 - - - - - 10 - - 1 - -
Total 196 184 7% 2 2 0% 198 186 6% 22 20 10%
Business to
Business:
Corporate
Pensions 81 46 76% 54 25 116% 135 71 90% 62 30 107%
Individual
Annuities 61 54 13% - - - 61 54 13% 6 5 20%
Bulk Annuities 98 93 5% - - - 98 93 5% 10 9 11%
Total 240 193 24% 54 25 116% 294 218 35% 78 44 77%
Intermediated
Distribution :
Individual
Pensions 15 11 36% 4 5 (20%) 19 16 19% 6 6 0%
Corporate
Pensions 11 9 22% 1 2 (50%) 12 11 9% 2 3 (33%)
Life - With
Profit Bond 40 44 (9%) - - - 40 44 (9%) 4 4 0%
Life - Other
Bond 265 209 27% - - - 265 209 27% 27 21 29%
Life - Other 2 1 100% 2 2 0% 4 3 33% 2 2 0%
Individual
Annuities 209 228 (8%) - - - 209 228 (8%) 21 23 (9%)
Sub-Total 542 502 8% 7 9 (22%) 549 511 7% 61 59 3%
DWP Rebates 3 - - - - - 3 - - 0 - -
Total 545 502 9% 7 9 (22%) 552 511 8% 62 59 5%
Partnerships :
Life - With
Profit Bond - - - - - - - - - - - -
Life - Other 185 203 (9%) 1 2 (50%) 186 205 (9%) 20 22 (9%)
Individual
Annuities 149 52 187% - - - 149 52 187% 15 5 200%
Bulk Annuities - 44 - - - - - 44 - - 4 -
Total 334 299 12% 1 2 (50%) 335 301 11% 34 32 6%
Total :
Individual
Pensions 17 13 31% 6 7 (14%) 23 20 15% 8 8 0%
Corporate
Pensions 92 55 67% 55 27 104% 147 82 79% 64 33 94%
Life - With
Profit Bond 44 48 (8%) - - - 44 48 (8%) 4 5 (20%)
Life - Other
Bond 265 209 27% - - - 265 209 27% 27 21 29%
Life - Other 189 204 (7%) 3 4 (25%) 192 208 (8%) 22 24 (8%)
Individual
Annuities 597 512 17% - - - 597 512 17% 60 51 18%
Bulk Annuities 98 137 (28%) - - - 98 137 (28%) 10 14 (29%)
Sub-Total 1,302 1,178 11% 64 38 68% 1,366 1,216 12% 194 156 24%
DWP Rebates 13 - - - - - 13 - - 1 - -
Total UK
Insurance
Operations 1,315 1,178 12% 64 38 68% 1,379 1,216 13% 196 156 26%
European
Insurance
Operations :
Insurance
Products 47 34 38% - - - 47 34 38% 5 3 67%
Total European
Insurance
Operations 47 34 38% - - - 47 34 38% 5 3 67%
Total UK &
European
Insurance
Operations 1,362 1,212 12% 64 38 68% 1,426 1,250 14% 200 159 26%
US Insurance
Operations :(8)
Fixed
Annuities 149 229 (35%) - - - 149 229 (35%) 15 23 (35%)
Fixed Index
Annuities 155 164 (5%) - - - 155 164 (5%) 16 16 0%
Variable
Annuities 735 686 7% - - - 735 686 7% 74 69 7%
Life (9) 3 2 50% 4 4 0% 7 6 17% 4 4 0%
Sub-total
Retail 1,042 1,081 (4%) 4 4 0% 1,046 1,085 (4%) 108 112 (4%)
Guaranteed
Investment
Contracts 49 119 (59%) - - - 49 119 (59%) 5 12 (58%)
GIC - Medium
Term Note 9 10 (10%) - - - 9 10 (10%) 1 1 0%
Total US
Insurance
Operations 1,100 1,210 (9%) 4 4 0% 1,104 1,214 (9%) 114 125 (9%)
Asian
Insurance
Operations :
China 8 5 60% 8 6 33% 16 11 45% 9 7 29%
Hong Kong 88 54 63% 28 20 40% 116 74 57% 37 25 48%
India (@26%)(6) 1 1 0% 16 14 14% 17 15 13% 16 14 14%
Indonesia 6 8 (25%) 13 12 8% 19 20 (5%) 14 13 8%
Japan 11 8 38% - 1 - 11 9 22% 1 2 (50%)
Korea 18 2 800% 41 31 32% 59 33 79% 43 31 39%
Malaysia 1 2 (50%) 20 17 18% 21 19 11% 20 17 18%
Singapore 90 77 17% 19 15 27% 109 92 18% 28 23 22%
Taiwan 29 23 26% 40 55 (27%) 69 78 (12%) 43 57 (25%)
Other (4) 2 3 (33%) 9 8 13% 11 11 0% 9 8 13%
Total Asian
Insurance
Operations 254 183 39% 194 179 8% 448 362 24% 219 197 11%
Group Total 2,716 2,605 4% 262 221 19% 2,978 2,826 5% 534 481 11%
INVESTMENT OPERATIONS
M&G (5) Asia Mutual Funds Asia Other Total Investment
Products
Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/-
2005 2005 (%) 2005 2005 (%) 2005 2005 (%) 2005 2005 (%)
£m £m £m £m £m £m £m £m
Opening 33,760 31,171 8% 8,296 9,388 (12%) 980 900 9% 43,036 41,459 4%
FUM
Gross 2,316 2,021 15% 4,056 4,938 (18%) 22 20 10% 6,394 6,979 (8%)
inflows
Less
redemptions (1,189) ( 966) (23%)(3,684) (4,554) 19% ( 11) ( 9) (22%) (4,884) ( 5,529) 12%
Net flows 1,127 1,055 7% 372 385 (3%) 11 11 0% 1,510 1,451 4%
Other
movements ( 74) ( 35) (111%) ( 6) (1,161) 99% - - - ( 80) ( 1,196) 93%
Market and
currency
movements 1,382 1,569 (12%) 444 ( 316) 241% 37 69 (46%) 1,863 1,322 41%
Net
movement
in FUM 2,436 2,589 (6%) 811 (1,093) 174% 48 80 (40%) 3,295 1,576 109%
Closing
FUM 36,196 33,760 7% 9,104 8,296 10% 1,028 980 5% 46,328 43,036 8%
Notes to Schedules :
The format of the tables shown is consistent with the distinction between
insurance and investment products as applied for previous financial reporting
periods with the exception of US institutional business referred to below,
products categorised as 'insurance' refer to those classified as contracts of
long-term insurance business for regulatory reporting purposes, i.e. falling
within one of the classes of insurance specified in part II of Schedule 1 to the
Regulated Activities Order under FSA regulations.
The details shown for insurance products include contributions for contracts
that are classified under IFRS4 'Insurance Contracts' as not containing
significant insurance risk. These products are described as investment contracts
under IFRS4 or other financial instruments under IAS39.Contracts included in
this category are primarily certain unit linked and similar contracts written in
UK and Europe Insurance Operations and Guaranteed Investment Contracts and
similar funding agreements written in US operations.
Investment products referred to in the tables are unit trust, mutual funds and
similar types of fund management arrangements.These are unrelated to insurance
products that are classified as 'investment contracts' under IFRS4 , as
described above, although similar IFRS recognition principles apply to the
acquisition costs and fees attaching to this type of business.
(1a) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson
National Life is 1.82
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 1.82 (2004: 1.83).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions plus
10% single new business contributions, are subject to roundings.
(4) In Asia, 'Other' insurance operations include Thailand, the Philippines and
Vietnam.
(5) Balance includes segregated and pooled pension funds, private finance assets
and other institutional clients. Other movements reflect the net flows arising
from the cash component of a tactical asset allocation fund managed by PPM South
Africa.
(6) New business in India is included at Prudential's 26% interest in the India
life operation.Mandatory Provident Fund (MPF) product sales in Hong Kong are
included at Prudential's 36% interest in the Hong Kong MPF operation.
(7) Balance sheet figures have been calculated at the closing exchange rate. The
2004 balance is shown on a constant exchange rate.
(8) Sales are converted using the year to date average exchange rate applicable
at the time.The sterling results for individual quarters represent the
difference between the year to date reported sterling results at successive
quarters and will include foreign exchange movements from earlier periods
(9) US Life sales for 2004 restated to be consistent with the presentation of
Full Year 2004 results.
(10) On 26 August, Prudential's joint venture partner in the Prudential ICICI
Asset Management Company purchased an additional 6% share ownership. As a
result, Prudential no longer consolidates the company as a subsidiary. 2004
results are reported at 100%.
(11) £56m of FUM reported under Prudential Asian funds operations relates to M&
G's products distributed through those Asian operations and this amount is also
included in M&G's FUM.
This information is provided by RNS
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