Full Year Sales 2002
Prudential PLC
23 January 2003
Embargo: 07.00 hrs Thursday 23 January 2003
PRUDENTIAL PLC 2002 NEW BUSINESS RESULTS
• Total Group insurance and investment sales of £27.6 billion, an increase
of 29 per cent on 2001.
• Group insurance sales of £12.8 billion up 12 per cent (sales on an APE
basis of £1.9 billion up 9 per cent).
• Approximately 74 per cent of Group sales from outside the UK.
• Total insurance sales in Prudential UK increased by 6 per cent to £6.1
billion (insurance sales on an APE basis down 5 per cent to £781 million).
• Gross fund inflows in M&G of £1 billion up 11 per cent (net fund inflows
up 79 per cent).
• APE sales up 23 per cent in Jackson National Life, driven by strong sales
of both fixed and variable annuities.
• APE insurance sales in Prudential Corporation Asia increased by 18 per
cent.
Prudential's Group Chief Executive, Jonathan Bloomer, commented:
'These strong sales figures were achieved in extremely difficult market
conditions and fully endorse our strategy of growing internationally, broadening
our distribution reach and diversifying our product range.
'We expect market conditions to remain challenging for many areas of our
business throughout 2003, particularly in the UK and the United States. However,
our international diversification and focus on running the business for value
positions us well to deliver sustainable profitable growth over the
longer-term'.
Prudential UK
Prudential's UK insurance operations recorded a 10 per cent increase in total
sales on the previous year as a result of strong sales of bulk and individual
annuities throughout 2002. This increase is on a like-for-like basis and
excludes sales made through the direct sales force which closed in 2001. APE
sales of £781 million for the year were down 1 per cent as a result of positive
actions taken by the business to focus sales activity on more profitable single
premium products. Fourth-quarter APE sales were up 30 per cent on the previous
quarter following a number of significant wins of both corporate pension and
bulk annuity business. Overall, this was a particularly strong result given the
testing conditions which the insurance sector has faced over the past twelve
months.
Successful marketing campaigns and an effective pricing policy helped the
business to achieve a significant increase in sales of individual annuities for
the year, which were up 39 per cent to £1.76 billion (£176 million APE).
Bulk annuities also performed well with a 23 per cent increase in total sales
for the year to £710 million (£71 million APE). Prudential UK has successfully
reinforced its position as the leading player in this market, winning the £389
million C&A pension scheme account in the final quarter of the year.
As expected, life product sales were down on 2001 with total sales down 5 per
cent and APE sales down 8 per cent to £247 million. However, during the first
three quarters of 2002, Prudential UK gained market share in with-profit bonds
on the corresponding period in 2001, and believes that the final quarter's
performance will confirm Prudential UK's strong position in this sector. In
October, the business signed a distribution arrangement with Abbey National to
sell its Prudence Bond product through the bank's branches. This was launched on
11 December and sales have been encouraging.
While corporate pension sales on an APE basis were down slightly on 2001, total
sales were up 23 per cent, reflecting the move towards single premium products.
In the fourth quarter of 2002, Prudential UK won a number of significant schemes
and will see increasing contributions from these schemes in 2003.
2002 was a challenging year, with some of the most difficult UK stock market
conditions since 1974. However, Prudential UK continues to win new business with
further improvements to its product range and distribution network and the
fourth quarter of 2002 proved to be the strongest performing quarter for two
years (excluding DSS rebates, which generally occur in the first quarter of the
year). The 'flight to quality' continues as customers place increasing emphasis
on financial strength and a trusted brand. However, we expect market conditions
to remain difficult for the foreseeable future.
M&G
M&G recorded gross retail fund inflows of £1 billion in 2002, up 11 per cent on
the previous year, and gross retail fund inflows for the fourth quarter alone
were £242 million, an increase of 23 per cent on the fourth quarter of 2001.
These figures exclude the successful rollover of the M&G Recovery Investment
Trust into a new vehicle, which contributed a further £171 million.
Net fund inflows for the fourth quarter were £78 million, an 8 per cent increase
on the same period in 2001, bringing net fund inflows for the full year to £350
million, an increase of 79 per cent.
Despite uncertain equity markets and in contrast to the industry trend, M&G
experienced a fall in redemptions in 2002. The latest Investment Management
Association (IMA) figures to the end of November show that while redemptions
across the industry rose during the year, M&G's redemptions fell by 9 per cent.
M&G continued to increase its share of the retail market in 2002. The November
IMA figures show that M&G experienced a 10 per cent increase in share of the
total retail market over the year to date and a 15 per cent increase in share of
the PEP/ISA market. M&G also increased its market share of funds sold via
intermediaries by 11 per cent overall and by 27 per cent for PEPs and ISAs.
Egg
Egg published a pre-closed season briefing on 12 December 2002 that covered its
activities up to that date. The announcement highlighted that the UK business
continues to grow strongly and profitably, and that the group has now
successfully launched in France. Egg will announce its preliminary results on 24
February 2003.
Prudential Europe
Sales on an APE basis increased by 12 per cent to £29 million. Total sales were
down 14 per cent to £67 million.
In November 2002, we agreed the sale of our German life business to Canada Life
Financial Corporation for a total consideration of €129 million (£82 million),
and the transaction completed at the end of the year. We will continue to run
our existing operations in France for value.
Jackson National Life
Jackson National Life (JNL) recorded total sales in 2002 of £5.8 billion, a 24
per cent increase on 2001, reflecting record fixed annuity sales and strong
sales of variable annuities. Fourth quarter total sales were up 55 per cent on
the corresponding period in 2001 but down 21 per cent on the third quarter of
2002. Total sales for the year on an APE basis of £595 million were 23 per cent
up on 2001.
These strong results were achieved in extremely difficult market conditions, and
are testament not only to JNL's strong track record of product innovation but
also its high quality relationship-driven distribution model.
Total single premium sales during the year increased by 24 per cent. Total sales
of all annuity products to retail customers of £4.3 billion were 47 per cent up
on 2001. Annuity sales in the second half of 2002 of £2.7 billion increased by
60 per cent on the first half of the year and 54 per cent of annuity sales in
2002 came from products launched during the year.
Record fixed annuity sales of £2.7 billion were up 43 per cent on 2001,
reflecting strong consumer preference for guaranteed returns in the current
volatile equity markets. Sales of fixed annuities in the fourth quarter
increased by 39 per cent on the corresponding quarter of 2001 but were down 21
per cent on the third quarter of 2002, emphasising JNL's focus on delivering
value, not simply volume, while actively managing capital.
Despite the continued challenging market conditions, JNL also recorded excellent
variable annuity sales in 2002. Total sales of almost £1.4 billion were up 77
per cent on 2001, and increased quarter-on-quarter throughout the year. This
upward trend reflected the successful launch in the first quarter of Perspective
II, a new variable annuity product which is highly competitive in this market
and can be individually tailored to customers' needs.
Sales of equity linked indexed (ELI) annuities of £254 million were 6 per cent
down on 2001.
Regular premium life sales of £22 million were in line with the level of sales
seen in 2001.
Sales of stable value products of £1.4 billion decreased by 16 per cent on 2001,
reflecting JNL's primary focus on retail sales throughout the year which we
expect to continue in 2003.
During 2002, JNL has once again shown that it has the ability to adapt to
difficult market environments by delivering strong sales growth while ensuring
efficient management of capital. We believe that market conditions in the United
States will remain very challenging well into 2003 but that there are
significant opportunities over the longer term for high quality, efficient
businesses like JNL which has a cost base below the industry average, modern and
sophisticated IT systems, and diversified and flexible products and
distribution.
Prudential Corporation Asia
Prudential Corporation Asia (PCA) had another strong year in 2002 with total
insurance sales on an APE basis increasing by 18 per cent on 2001 to £513
million. This increase was 30 per cent if last year's Central Provident Fund
(CPF) single premium sales in Singapore, which were at exceptional levels due to
further government liberalisation of CPF funds, are excluded. Total APE
insurance sales in the fourth quarter of 2002 were up 53 per cent on the
corresponding quarter in 2001.
All of PCA's life operations continued to grow strongly during the year,
reflecting the clear strategy of building and strengthening high quality agency
distribution as well as the ongoing success in developing complementary
channels, including bancassurance. PCA's focus for its life operations continues
to be on developing a balanced portfolio of traditional, linked, and accident
and health products, with the emphasis on higher value regular premium business
which increased by 26 per cent during 2002.
PCA's mutual fund assets under management of £5.1 billion included the
additional funds under management following the acquisition of Korea's Good
Morning Securities ITMC in October 2002 and despite challenging investment
market conditions, net inflows for the year remained positive at over £1
billion.
PCA's share of Bank of China International-Prudential Mandatory Provident Fund
(MPF) funds under management in Hong Kong increased by 51 per cent to £136
million.
Despite the global economic downturn in 2002, PCA has once again strengthened
its position as a regional leader in the life and mutual fund markets and is
very well positioned to continue delivering sustainable profitable new business
growth over the long-term.
-ENDS-
Enquiries to:
Media Investors/Analysts
Geraldine Davies 020 7548 3911 Rebecca Burrows 020 7548 3537
Steve Colton 020 7548 3721 Laura Presland 020 7548 3511
Clare Staley 020 7548 3719
Notes to Editors:
1. There will be a conference call today for wire services at 7.30am on Tel: 020
8288 4700 hosted by Jonathan Bloomer, Group Chief Executive, and Philip
Broadley, Group Finance Director.
2. There will be a conference call for international investors at 2:30pm (dial
in telephone number: +44 (0) 20 7162 0125, US callers 1 334 323 6203).
Callers to quote 'Prudential' for access to the call.
A recording of this call will be available for replay until close of
business on 30 January 2003 by dialling - UK: 020 8288 4459, US: 1 334 323
6222, access code 513232.
3. High resolution photographs are available to the media free of charge at
www.newscast.co.uk (+44 (0)20 7608 1000).
4. Sales for overseas operations have been calculated using average exchange
rates. At constant 2001 exchange rates, the increase in Group insurance
sales on an APE basis would have been 12 per cent.
5. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
6. Financial Calendar:
2002 Full-Year Results Tuesday 25 February 2003
Ex-dividend date for 2002 final dividend Wednesday 19 March 2003
First-quarter 2003 New Business Figures Thursday 17 April 2003
2003 Annual General Meeting Thursday 8 May 2003
Payment of 2002 final dividend Wednesday 28 May 2003
2003 Interim Results/ Tuesday 29 July 2003
Second-quarter New Business Figures
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 and results. 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,
the policies and actions of regulatory authorities, the impact of competition,
inflation, deflation, the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries, as well as the impact
of tax and other legislation and other regulations in the jurisdictions in which
Prudential and its affiliates operate. 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.
Schedule 1
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2002
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US Asia Total
2002 FY 2001 FY +/- 2002 FY 2001 FY +/- 2002 FY 2001 FY +/- 2002 FY 2001 FY +/-
(%) (%) (%) (%)
£m £m £m £m £m £m £m £m
Total 6,118 5,763 6% 5,757 4,634 24% 944 1,019 (7%) 12,819 11,416 12%
Insurance
Products
Total 1,157 1,040 11% - - - 13,661 9,027 51% 14,818 10,067 47%
Investment
Products -
Gross
Inflows (1)
_____________________ _____________________ ________________________ _____________________
Group Total 7,275 6,803 7% 5,757 4,634 24% 14,605 10,046 45% 27,637 21,483 29%
_____________________ _____________________ ________________________ _____________________
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (4)
2002 2001 +/- 2002 FY 2001 +/- 2002 FY 2001 FY +/- 2002 FY 2001 +/-
FY FY (%) FY (%) (%) FY (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct
Distribution (2) :
Individual 15 14 7% 11 15 (27%) 26 29 (10%) 12 16 (25%)
Pensions
Corporate 660 469 41% 114 131 (13%) 774 600 29% 180 178 1%
Pensions
Life 59 71 (17%) 4 4 0% 63 75 (16%) 10 11 (9%)
Individual 895 663 35% - - - 895 663 35% 90 66 36%
Annuities
____________________ __________________ ______________________ ___________________
Sub-Total 1,629 1,217 34% 129 150 (14%) 1,758 1,367 29% 292 272 7%
DSS Rebates 215 185 16% - - - 215 185 16% 22 19 16%
____________________ __________________ ______________________ ___________________
Total 1,844 1,402 32% 129 150 (14%) 1,973 1,552 27% 314 290 8%
____________________ __________________ ______________________ ___________________
Intermediated
Distribution (2):
Individual 85 219 (61%) 34 68 (50%) 119 287 (59%) 42 90 (53%)
Pensions
Corporate 77 82 (6%) 14 19 (26%) 91 101 (10%) 22 27 (19%)
Pensions
Life 2,190 2,297 (5%) 18 27 (33%) 2,208 2,324 (5%) 237 257 (8%)
Individual 860 597 44% - - - 860 597 44% 86 60 43%
Annuities
Bulk 710 575 23% - - - 710 575 23% 71 58 22%
Annuities
____________________ _________________ ______________________ ___________________
Sub-Total 3,922 3,770 4% 66 114 (42%) 3,988 3,884 3% 458 491 (7%)
DSS Rebates 90 64 41% - - - 90 64 41% 9 6 50%
____________________ _________________ ______________________ ___________________
Total 4,012 3,834 5% 66 114 (42%) 4,078 3,948 3% 467 497 (6%)
____________________ _________________ ______________________ ___________________
Total (2):
Individual 100 233 (57%) 45 83 (46%) 145 316 (54%) 55 106 (48%)
Pensions
Corporate 737 551 34% 128 150 (15%) 865 701 23% 202 205 (1%)
Pensions
Life 2,249 2,368 (5%) 22 31 (29%) 2,271 2,399 (5%) 247 268 (8%)
Individual 1,755 1,260 39% - - - 1,755 1,260 39% 176 126 40%
Annuities
Bulk 710 575 23% - - - 710 575 23% 71 58 22%
Annuities
____________________ _________________ ______________________ ___________________
Sub-Total 5,551 4,987 11% 195 264 (26%) 5,746 5,251 9% 750 763 (2%)
DSS Rebates 305 249 22% - - - 305 249 22% 31 25 24%
____________________ _________________ ______________________ ___________________
Total 5,856 5,236 12% 195 264 (26%) 6,051 5,500 10% 781 788 (1%)
____________________ _________________ ______________________ ___________________
Closed - 167 - - 18 - - 185 - - 35 -
distribution
channel (3)
____________________ _________________ ______________________ ___________________
Total UK 5,856 5,403 8% 195 282 (31%) 6,051 5,685 6% 781 822 (5%)
Insurance
Operations
____________________ _________________ ______________________ ___________________
European
Insurance
Operations: (6)
Insurance 42 58 (28%) 25 20 25% 67 78 (14%) 29 26 12%
Products
____________________ _________________ ______________________ ___________________
Total 42 58 (28%) 25 20 25% 67 78 (14%) 29 26 12%
European
Insurance
Operations
____________________ _________________ ______________________ ___________________
Total UK & 5,898 5,461 8% 220 302 (27%) 6,118 5,763 6% 810 848 (4%)
European
Insurance
Operations
____________________ _________________ ______________________ ___________________
US Insurance
Operations: (6)
Fixed 2,708 1,899 43% - - - 2,708 1,899 43% 271 190 43%
Annuities
Equity 254 271 (6%) - - - 254 271 (6%) 25 27 (7%)
Linked
Indexed
Annuities
Variable 1,363 768 77% - - - 1,363 768 77% 136 77 77%
Annuities
____________________ _________________ ______________________ ___________________
Sub-total 4,325 2,938 47% - - - 4,325 2,938 47% 432 294 47%
Annuities
____________________ _________________ ______________________ ___________________
Guaranteed 292 170 72% - - - 292 170 72% 29 17 71%
Investment
Contracts
GIC - Medium 1,118 1,504 (26%) - - - 1,118 1,504 (26%) 112 150 (25%)
Term Note
Life - - - 22 22 0% 22 22 0% 22 22 0%
____________________ _________________ ______________________ ___________________
Total US 5,735 4,612 24% 22 22 0% 5,757 4,634 24% 595 483 23%
Insurance
Operations
____________________ _________________ ______________________ ___________________
Asian
Insurance
Operations:(6)
Insurance 479 650 (26%) 465 369 26% 944 1,019 (7%) 513 434 18%
Products (5)
____________________ _________________ ______________________ ___________________
Total Asian 479 650 (26%) 465 369 26% 944 1,019 (7%) 513 434 18%
Insurance
Operations
____________________ _________________ ______________________ ___________________
Group Total 12,112 10,723 13% 707 693 2% 12,819 11,416 12% 1,918 1,765 9%
____________________ _________________ ______________________ ___________________
Notes to Schedules:
(1) Represents cash received from sale of investment products.
(2) Excluding sales through closed distribution channel.
(3) Closed distribution channel relates to the Direct Sales Force.
(4) Annual Equivalents (AE), calculated as regular new business contributions + 10% single new business
contributions, are subject to roundings.
(5) The Central Provident Fund in Singapore was further liberalised in 2001 resulting in exceptional sales volume
in the first half of 2001.
(6) Sales for overseas operations have been calculated using average exchange rates. The applicable rate for
Jackson National Life is 1.50 (2001 - 1.44).
At constant 2001 exchange rates US operations APE insurance sales growth would have been 29% and Asian operations
APE insurance sales growth would have been 25%.
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2002
INVESTMENT OPERATIONS
M&G & UK Operations Asia Mutual Funds Hong Kong MPF Total Investment Products
Products (7)
2002 FY 2001 +/- 2002 FY 2001 +/- 2002 FY 2001 +/- 2002 FY 2001 +/- (%)
FY (%) FY (%) FY (%) FY
£m £m £m £m £m £m £m £m
Opening FUM 10,328 11,652 (11%) 3,206 1,649 94% 90 - - 13,624 13,301 2%
Gross 1,157 1,040 11% 13,586 8,936 52% 75 91 (18%) 14,818 10,067 47%
inflows
Less (899) (923) 3% (12,547) (7,541) (66%) ( 11) (5) (120%) (13,457) (8,469) (59%)
redemptions
____________________ ________________________ ______________________ ________________________
Net flows 258 117 121% 1,039 1,395 (26%) 64 86 (26%) 1,361 1,598 (15%)
Other (108) (195) 45% 1,110 (23) 4926% - - - 1,002 (218) 560%
movements
Market and (1,889) (1,246) (52%) (259) 185 (240%) (18) 4 (550%) (2,166) (1,057) (105%)
currency
movements
____________________ ________________________ ______________________ ________________________
Net (1,739) (1,324) (31%) 1,890 1,557 21% 46 90 (49%) 197 323 (39%)
movement
in FUM
____________________ ________________________ ______________________ ________________________
Closing FUM 8,589 10,328 (17%) 5,096 3,206 59% 136 90 51% 13,821 13,624 1%
____________________ ________________________ ______________________ ________________________
INVESTMENT OPERATIONS - ANALYSIS
M&G Retail & UK Operations Investment Products
UK Operations (8) M&G M&G & UK Operations
2002 FY 2001 FY +/- (%) 2002 FY 2001 FY +/- (%) 2002 FY 2001 FY +/- (%)
£m £m £m £m £m £m
Opening FUM 1,546 1,775 (13%) 8,782 9,877 (11%) 10,328 11,652 (11%)
Gross inflows 142 125 14% 1,015 915 11% 1,157 1,040 11%
Less (234) (204) (15%) (665) (719) 8% (899) (923) 3%
redemptions
_________________________ __________________________ ____________________________
Net flows (92) (79) (16%) 350 196 79% 258 117 121%
Other - - - (108) (195) 45% (108) (195) 45%
movements
Market and (317) (150) (111%) (1,572) (1,096) (43%) (1,889) (1,246) (52%)
currency
movements
_________________________ __________________________ ____________________________
Net movement (409) (229) (79%) (1,330) (1,095) (21%) (1,739) (1,324) (31%)
in FUM
_________________________ __________________________ ____________________________
Closing FUM 1,137 1,546 (26%) 7,452 8,782 (15%) 8,589 10,328 (17%)
_________________________ __________________________ ____________________________
Asia Mutual Funds
India (9) Taiwan (9) Other (13) Asia Mutual Funds
2002 2001 +/- (%) 2002 FY 2001 FY +/- (%) 2002 2001 +/- (%) 2002 FY 2001 FY +/- (%)
FY FY FY FY
£m £m £m £m £m £m £m £m
Opening FUM 1,072 695 54% 2,076 934 122% 58 20 190% 3,206 1,649 94%
Gross 3,843 2,110 82% 9,208 6,773 36% 535 53 909% 13,586 8,936 52%
inflows
Less (3,554) (1,758) (102%) (8,590) (5,775) (49%) (403) (8) (4938%) (12,547) (7,541) (66%)
redemptions
________________________ _________________________ ______________________ __________________________
Net flows 289 352 (18%) 618 998 (38%) 132 45 193% 1,039 1,395 (26%)
Other (22) (23) 4% - - - 1,132 - - 1,110 (23) -
movements
Market and 33 48 (31%) (269) 144 (287%) (23) (7) (229%) (259) 185 (240%)
currency
movements
________________________ _________________________ ______________________ __________________________
Net 300 377 (20%) 349 1,142 (69%) 1,241 38 3166% 1,890 1,557 21%
movement
in FUM
________________________ _________________________ ______________________ __________________________
Closing FUM 1,372 1,072 28% 2,425 2,076 17% 1,299 58 2140% 5,096 3,206 59%
________________________ _________________________ ______________________ __________________________
INSURANCE OPERATIONS - ANALYSIS
Single Regular Total Annual Equivalent
2002 FY 2001 FY +/- (%) 2002 FY 2001 FY +/- (%) 2002 FY 2001 FY +/- 2002 FY 2001 FY +/-
(%) (%)
£m £m £m £m £m £m £m £m
Asian
Insurance
Operations
Insurance
Products:
Singapore 279 515 (46%) 46 37 24% 325 552 (41%) 74 89 (17%)
Hong Kong 140 88 59% 84 71 18% 224 159 41% 98 80 23%
Malaysia 15 13 15% 59 45 31% 74 58 28% 61 46 33%
Taiwan 14 5 180% 145 135 7% 159 140 14% 146 136 7%
Japan (10) 9 12 (25%) 39 28 39% 48 40 20% 40 29 38%
Other (11) 22 17 29% 92 53 74% 114 70 63% 94 55 71%
_____________________ _________________________ ________________________ ______________________
Total Asian 479 650 (26%) 465 369 26% 944 1,019 (7%) 513 434 18%
Insurance
Premiums
_____________________ _________________________ ________________________ ______________________
US BANKING PRODUCTS
2002 FY 2001 FY +/- (%)
£m £m
US Banking Products (12)
Total Deposit Liabilities 650 575 13%
Retail Assets 699 696 0%
Notes to Schedules:
(7) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest of the Hong Kong
MPF operation.
(8) Scottish Amicable and Prudential branded Investment Products.
(9) Opening FUM restated to incorporate Discretionary Asset Management Business in Taiwan and Portfolio Management
Services in India.
(10) Insurance sales for Japan are included from 13 February 2001, the date of acquisition of Orico Life Insurance
Company Limited.
(11) In Asia, 'Other' Insurance Products include Thailand, Indonesia, The Philippines, Vietnam, India (26%
interest), China and Korea.
(12) Balance sheet figures have been calculated at closing exchange rates.
(13) Funds under management arising from the Korean fund management acquisition in Q4 are included in Other
movements.
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2002 VERSUS QUARTER 4 2001
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (4)
Q4 2002 Q4 +/- Q4 2002 Q4 +/- Q4 Q4 +/- Q4 2002 Q4 +/-
2001 (%) 2001 (%) 2002 2001 (%) 2001 (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct
Distribution(2) :
Individual 2 3 (33%) 2 2 0% 4 5 (20%) 2 2 0%
Pensions
Corporate 174 92 89% 35 26 35% 209 118 77% 52 35 49%
Pensions
Life 8 31 (74%) 1 1 0% 9 32 (72%) 2 4 (50%)
Individual 274 180 52% - - - 274 180 52% 28 18 56%
Annuities
____________________ ________________ ___________________ __________________
Sub-Total 458 306 50% 38 29 31% 496 335 48% 84 60 40%
DSS Rebates 20 10 100% - - - 20 10 100% 2 1 100%
____________________ ________________ ___________________ __________________
Total 478 316 51% 38 29 31% 516 345 50% 86 61 41%
____________________ ________________ ___________________ __________________
Intermediated
Distribution(2):
Individual 11 50 (78%) 7 16 (56%) 18 66 (73%) 8 21 (62%)
Pensions
Corporate 7 32 (78%) 2 3 (33%) 9 35 (74%) 3 6 (50%)
Pensions
Life 397 833 (52%) 6 5 20% 403 838 (52%) 46 89 (48%)
Individual 263 188 40% - - - 263 188 40% 26 19 37%
Annuities
Bulk 424 100 324% - - - 424 100 324% 42 10 320%
Annuities
____________________ ________________ ___________________ __________________
Sub-Total 1,102 1,203 (8%) 15 24 (38%) 1,117 1,227 (9%) 125 144 (13%)
DSS Rebates 45 9 400% - - - 45 9 400% 4 1 300%
____________________ ________________ ___________________ __________________
Total 1,147 1,212 (5%) 15 24 (38%) 1,162 1,236 (6%) 129 145 (11%)
____________________ ________________ ___________________ __________________
Total (2):
Individual 13 53 (75%) 9 18 (50%) 22 71 (69%) 10 23 (57%)
Pensions
Corporate 181 124 46% 37 29 28% 218 153 42% 55 41 34%
Pensions
Life 405 864 (53%) 7 6 17% 412 870 (53%) 48 93 (48%)
Individual 537 368 46% - - - 537 368 46% 54 37 46%
Annuities
Bulk 424 100 324% - - - 424 100 324% 42 10 320%
Annuities
____________________ ________________ ___________________ __________________
Sub-Total 1,560 1,509 3% 53 53 0% 1,613 1,562 3% 209 204 2%
DSS Rebates 65 19 242% - - - 65 19 242% 7 2 250%
____________________ ________________ ___________________ __________________
Total 1,625 1,528 6% 53 53 0% 1,678 1,581 6% 216 206 5%
____________________ ________________ ___________________ __________________
Closed - 1 - - 1 - - 2 - - 1 -
distribution
channel (3)
____________________ ________________ ___________________ __________________
Total UK 1,625 1,529 6% 53 54 (2%) 1,678 1,583 6% 216 207 4%
Insurance
Operations
____________________ ________________ ___________________ __________________
European
Insurance
Operations:
Insurance 8 18 (56%) 9 6 50% 17 24 (29%) 10 8 25%
Products
____________________ ________________ ___________________ __________________
Total 8 18 (56%) 9 6 50% 17 24 (29%) 10 8 25%
European
Insurance
Operations
____________________ ________________ ___________________ __________________
____________________ ________________ ___________________ __________________
Total UK & 1,633 1,547 6% 62 60 3% 1,695 1,607 5% 225 215 5%
European
Insurance
Operations
____________________ ________________ ___________________ __________________
US Insurance
Operations: (14)
Fixed 730 524 39% - - - 730 524 39% 73 52 40%
Annuities
Equity 50 74 (32%) - - - 50 74 (32%) 5 7 (29%)
Linked
Indexed
Annuities
Variable 511 155 230% - - - 511 155 230% 51 16 219%
Annuities
____________________ ________________ ___________________ __________________
Sub-total 1,291 753 71% - - - 1,291 753 71% 129 75 72%
Annuities
Guaranteed ( 5) - - - - - ( 5) - - ( 1) - -
Investment
Contracts
GIC - Medium ( 16) 64 - - - - ( 16) 64 - ( 1) 6 -
Term Note
Life - - - 4 6 (33%) 4 6 (33%) 4 6 (33%)
____________________ ________________ ___________________ __________________
Total US 1,270 817 55% 4 6 (33%) 1,274 823 55% 131 87 51%
Insurance
Operations
____________________ ________________ ___________________ __________________
Asian
Insurance
Operations:
Singapore (5) 85 56 52% 13 11 18% 98 67 46% 22 17 29%
Hong Kong 51 22 132% 22 23 (4%) 73 45 62% 27 25 8%
Malaysia 4 4 0% 22 16 38% 26 20 30% 22 16 38%
Taiwan 2 2 0% 45 19 137% 47 21 124% 45 20 125%
Japan (10) 1 1 0% 10 7 43% 11 8 38% 10 7 43%
Other (11) 7 9 (22%) 28 16 75% 35 25 40% 29 17 71%
____________________ __________________ ___________________ __________________
Total Asian 150 94 60% 140 92 52% 290 186 56% 155 101 53%
Insurance
Premiums
____________________ __________________ ___________________ __________________
Group Total 3,053 2,458 24% 206 158 30% 3,259 2,616 25% 511 403 27%
____________________ __________________ ___________________ __________________
INVESTMENT OPERATIONS
M&G & UK Operations Asia Mutual Funds (13) Hong Kong MPF Total Investment Products
Products (7)
Q4 2002 Q4 +/- Q4 Q4 +/- Q4 2002 Q4 +/- Q4 2002 Q4 2001 +/-
2001 (%) 2002 2001 (%) 2001 (%) (%)
£m £m £m £m £m £m £m £m
Opening FUM 8,369 9,698 (14%) 3,652 2,466 48% 121 67 81% 12,142 12,231 (1%)
Gross 266 234 14% 3,812 3,463 10% 17 20 (15%) 4,095 3,717 10%
inflows
Less (248) (132) (88%) (3,487) (2,964) (18%) (2) (2) 0% (3,737) (3,098) (21%)
redemptions
____________________ _______________________ ___________________ _______________________
Net flows 18 102 (82%) 325 499 (35%) 15 18 (17%) 358 619 (42%)
Other - (195) - 1,130 - - - - - 1,130 (195) -
movements
Market and 202 723 (72%) ( 12) 241 (105%) - 5 - 190 969 (80%)
currency
movements
____________________ _______________________ ___________________ _______________________
Net 220 630 (65%) 1,444 740 95% 15 23 (35%) 1,679 1,393 21%
movement
in FUM
____________________ _______________________ ___________________ _______________________
Closing FUM 8,589 10,328 (17%) 5,096 3,206 59% 136 90 51% 13,821 13,624 1%
____________________ _______________________ ___________________ _______________________
Notes to Schedules:
(2) Excluding sales through closed distribution channel.
(3) Closed distribution channel relates to the Direct Sales Force.
(4) Annual Equivalents (AE), calculated as regular new business contributions + 10% single new business
contributions, are subject to roundings.
(5) The Central Provident Fund in Singapore was further liberalised in 2001 resulting in exceptional sales volume
in the first half of 2001.
(7) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest of the Hong Kong
MPF operation.
(10) Insurance sales for Japan are included from 13 February 2001, the date of acquisition of Orico Life Insurance
Company Limited.
(11) In Asia, 'Other' Insurance Products include Thailand, Indonesia, The Philippines, Vietnam, India (26%
interest), China and Korea.
(13) Funds under management arising from the Korean fund management acquisition in Q4 are included in Other
movements.
(14) Sales for overseas operations are converted to sterling 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.
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2002 VERSUS QUARTER 3 2002
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (4)
Q4 2002 Q3 +/- Q4 2002 Q3 +/- Q4 Q3 +/- Q4 2002 Q3 +/-
2002 (%) 2002 (%) 2002 2002 (%) 2002 (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations :
Direct
Distribution (2) :
Individual 2 3 (33%) 2 2 0% 4 5 (20%) 2 2 0%
Pensions
Corporate 174 91 91% 35 25 40% 209 116 80% 52 35 49%
Pensions
Life 8 14 (43%) 1 1 0% 9 15 (40%) 2 2 0%
Individual 274 230 19% - - - 274 230 19% 28 23 22%
Annuities
____________________ _________________ ___________________ _________________
Sub-Total 458 338 36% 38 28 36% 496 366 36% 84 62 35%
DSS Rebates 20 - - - - - 20 - - 2 - -
____________________ _________________ ___________________ _________________
Total 478 338 41% 38 28 36% 516 366 41% 86 62 39%
____________________ _________________ ___________________ _________________
Intermediated
Distribution (2):
Individual 11 17 (35%) 7 9 (22%) 18 26 (31%) 8 10 (20%)
Pensions
Corporate 7 18 (61%) 2 3 (33%) 9 21 (57%) 3 5 (40%)
Pensions
Life 397 443 (10%) 6 4 50% 403 447 (10%) 46 48 (4%)
Individual 263 285 (8%) - - - 263 285 (8%) 26 29 (10%)
Annuities
Bulk 424 123 245% - - - 424 123 245% 42 13 223%
Annuities
____________________ _________________ ___________________ _________________
Sub-Total 1,102 886 24% 15 16 (6%) 1,117 902 24% 125 105 19%
DSS Rebates 45 - - - - - 45 - - 4 - -
____________________ _________________ ___________________ _________________
Total 1,147 886 29% 15 16 (6%) 1,162 902 29% 129 105 23%
____________________ _________________ ___________________ _________________
Total (2):
Individual 13 20 (35%) 9 11 (18%) 22 31 (29%) 10 13 (23%)
Pensions
Corporate 181 109 66% 37 28 32% 218 137 59% 55 39 41%
Pensions
Life 405 457 (11%) 7 5 40% 412 462 (11%) 48 50 (4%)
Individual 537 515 4% - - - 537 515 4% 54 52 4%
Annuities
Bulk 424 123 245% - - - 424 123 245% 42 13 223%
Annuities
____________________ _________________ ___________________ _________________
Sub-Total 1,560 1,224 27% 53 44 20% 1,613 1,268 27% 209 166 26%
DSS Rebates 65 - - - - - 65 - - 7 - -
____________________ _________________ ___________________ _________________
Total 1,625 1,224 33% 53 44 20% 1,678 1,268 32% 216 166 30%
____________________ _________________ ___________________ _________________
Closed - - - - - - - - - - - -
distribution
channel (3)
____________________ _________________ ___________________ _________________
Total UK 1,625 1,224 33% 53 44 20% 1,678 1,268 32% 216 166 30%
Insurance
Operations
____________________ _________________ ___________________ _________________
European
Insurance
Operations:
Insurance 8 7 14% 9 6 50% 17 13 31% 10 6 67%
Products
____________________ _________________ ___________________ _________________
Total 8 7 14% 9 6 50% 17 13 31% 10 6 67%
European
Insurance
Operations
____________________ _________________ ___________________ _________________
Total UK & 1,633 1,231 33% 62 50 24% 1,695 1,281 32% 225 174 29%
European
Insurance
Operations
____________________ _________________ ___________________ _________________
US Insurance
Operations: (14)
Fixed 730 925 (21%) - - - 730 925 (21%) 73 93 (22%)
Annuities
Equity 50 75 (33%) - - - 50 75 (33%) 5 7 (29%)
Linked
Indexed
Annuities
Variable 511 368 39% - - - 511 368 39% 51 36 42%
Annuities
____________________ _________________ ___________________ _________________
Sub-total 1,291 1,368 (6%) - - - 1,291 1,368 (6%) 129 136 (5%)
Annuities
Guaranteed ( 5) 15 - - - - ( 5) 15 - ( 1) 2 -
Investment
Contracts
GIC - Medium ( 16) 225 - - - - ( 16) 225 - ( 1) 22 -
Term Note
Life - - - 4 6 (33%) 4 6 (33%) 4 6 (33%)
____________________ _________________ ___________________ _________________
Total US 1,270 1,608 (21%) 4 6 (33%) 1,274 1,614 (21%) 131 166 (21%)
Insurance
Operations
____________________ _________________ ___________________ _________________
Asian
Insurance
Operations:
Singapore (5) 85 56 52% 13 12 8% 98 68 44% 22 17 29%
Hong Kong 51 45 13% 22 19 16% 73 64 14% 27 24 13%
Malaysia 4 4 0% 22 13 69% 26 17 53% 22 13 69%
Taiwan 2 4 (50%) 45 50 (10%) 47 54 (13%) 45 50 (10%)
Japan (10) 1 2 (50%) 10 11 (9%) 11 13 (15%) 10 11 (9%)
Other (11) 7 7 0% 28 24 17% 35 31 13% 29 26 12%
____________________ _________________ ___________________ _________________
Total Asian 150 118 27% 140 129 9% 290 247 17% 155 141 10%
Insurance
Premiums
____________________ _________________ ___________________ _________________
Group Total 3,053 2,957 3% 206 185 11% 3,259 3,142 4% 511 481 6%
____________________ _________________ ___________________ _________________
INVESTMENT OPERATIONS
M&G & UK Operations Asia Mutual Funds (13) Hong Kong MPF Products Total Investment Products
(7)
Q4 2002 Q3 +/- Q4 Q3 +/- Q4 2002 Q3 +/- Q4 2002 Q3 2002 +/-
2002 (%) 2002 2002 (%) 2002 (%) (%)
£m £m £m £m £m £m £m £m
Opening FUM 8,369 9,238 (9%) 3,652 3,781 (3%) 121 117 3% 12,142 13,136 (8%)
Gross 266 271 (2%) 3,812 3,144 21% 17 18 (6%) 4,095 3,433 19%
inflows
Less (248) (168) (48%) (3,487) (3,086) (13%) (2) (3) 33% (3,737) (3,257) (15%)
redemptions
___________________ _____________________ ____________________ _______________________
Net flows 18 103 (83%) 325 58 460% 15 15 0% 358 176 103%
Other - - - 1,130 (1) - - - - 1,130 (1) -
movements
Market and 202 (972) 121% (12) (186) 94% - (11) - 190 (1,169) 116%
currency
movements
___________________ _____________________ ____________________ _______________________
Net 220 (869) 125% 1,444 (129) 1219% 15 4 275% 1,679 (994) 269%
movement
in FUM
___________________ _____________________ ____________________ _______________________
Closing FUM 8,589 8,369 3% 5,096 3,652 40% 136 121 12% 13,821 12,142 14%
___________________ _____________________ ____________________ _______________________
Notes to Schedules:
(2) Excluding sales through closed distribution channel.
(3) Closed distribution channel relates to the Direct Sales Force.
(4) Annual Equivalents (AE), calculated as regular new business contributions + 10% single new business
contributions, are subject to roundings.
(5) The Central Provident Fund in Singapore was further liberalised in 2001 resulting in exceptional sales volume
in the first half of 2001.
(7) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest of the Hong Kong
MPF operation.
(10) Insurance sales for Japan are included from 13 February 2001, the date of acquisition of Orico Life Insurance
Company Limited.
(11) In Asia, 'Other' Insurance Products include Thailand, Indonesia, The Philippines, Vietnam, India (26%
interest), China and Korea.
(13) Funds under management arising from the Korean fund management acquisition in Q4 are included in Other
movements.
(14) Sales for overseas operations are converted to sterling 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.
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