Prudential UK Presentation

Prudential PLC
30 April 2004

Embargo 07.45 hrs - Friday 30 April 2004

Presentation to investors and analysts on Prudential UK & Europe

Prudential plc ('Prudential') will hold a presentation today (30 April 2004) for
investors and analysts covering the Group's UK and European life insurance
business. This presentation will be hosted by Mark Wood, Prudential UK &
Europe's Chief Executive and a director of Prudential, with support from senior
members of the Prudential UK & Europe management team.

The main objectives of the presentation are to:


  • Provide an overview of Prudential UK & Europe's strategy;

  • Summarise its operations and financial performance;

  • Provide an update on progress made in its major business lines; and

  • Answer questions about Prudential UK & Europe's performance and strategy.

In addition to strategic and financial overviews, there will be presentations
covering Brand, Distribution, Products, Annuities and Mortality. These
presentations will reinforce a number of key messages, including Prudential UK &
Europe's:


  • Strong brand franchise and clear focus on its customers;

  • Financial strength;

  • Low cost base;

  • Diversified distribution channels;

  • Broadening product range;

  • Strong management team which has a clear view of the opportunities facing
    the business; and

  • Strategy that is designed to deliver sustained profitable growth.

As part of these presentations, an update will be provided on the Prudential
Assurance Company's ('PAC') with-profits realistic balance sheet. PAC's
with-profits sub-fund is very strong with the risk capital margin covered almost
four times from capital within the fund. On a realistic basis, with liabilities
recorded on a market consistent basis and calculated using the approach set out
in the ABI guidance for reporting at the 2003 year-end, the free assets of PAC's
with-profits sub-fund are valued at £5.1 billion, before deducting the risk
capital margin of £1.3 billion. The approach to realistic reporting may change
pending confirmation of the FSA regulations and guidelines.

In addition, Prudential UK will announce a joint venture with Discovery Holdings
of South Africa to launch a new health insurance product in the UK market in the
first quarter of 2005.

An audiocast of the presentation and the presentation slides will be available
on the Group's website, www.prudential.co.uk, from 09.00am on Friday 30 April
2004.

An interview (in video/audio/text) with Mark Wood, Chief Executive, Prudential
UK & Europe, will be available on www.prudential.co.uk and www.cantos.com from
07.45am on Friday 30 April 2004.

                                     -ENDS-
Media Enquiries:                               Investor/Analyst Enquiries:
Prudential plc
Steve Colton - 020 7548 3721                   Rebecca Burrows - 020 7548 3537
Clare Staley - 020 7548 3719                   Marina Lee-Steere - 020 7548 3511
Prudential UK & Europe
James Murray - 020 7150 2203
Anthony Frost - 020 7150 3001



Notes to Editors:

1. Prudential UK

Prudential is a leading life and pensions provider to around 7 million customers
in the United Kingdom. It has over 6,000 staff, offices located in London,
Reading, Belfast, Dublin and Stirling, and a customer service centre in Mumbai.

Products


  • Annuities

  • Corporate Pensions

  • With-profits Bonds

  • Savings and Investment

  • Protection

Distribution Channels


  • Direct to customers (telephone, internet and mail)

  • Independent Financial Advisers

  • Business to Business (consulting actuaries and benefit advisers)

  • Partnerships (affinities and banks)

Further information about the business can be found on its website at
www.pru.co.uk

2. 2003 Financial Performance

In 2003, Prudential UK continued to focus on long-term value creation for
shareholders rather than short-term sales growth. It remained focused on high
margin products where it has competitive advantage as a result of its scale,
brand recognition, financial strength, diversified distribution and low cost
base.

Total APE sales in 2003 were £616 million, 21 per cent lower than 2002. This was
largely due to the contraction of the with-profits bond market, which according
to the Association of British Insurers (ABI) recorded 65 per cent lower sales in
2003 compared with 2002. Prudential leads independent financial adviser (IFA)
distribution of with-profit bonds and grew its market share of the IFA market
from 25 per cent in the fourth quarter of 2002 to 51 per cent in the fourth
quarter of 2003 (source: ABI). New business achieved profits of £166 million
were 29 per cent lower than 2002, reflecting lower new business sales and
reduced new business margins.

Prudential UK is a market leader in its other chosen product segments including
corporate pensions and bulk and individual annuities. In 2003, it had a 48 per
cent market share of the group additional voluntary contribution market and a 23
per cent share of the individual annuity market (source: ABI, annuity market
share excluding income drawdown and purchased life annuities). It also continues
to develop and launch innovative new products, with products launched since the
beginning of 2000 accounting for 37 per cent of APE sales in 2003 (excluding DWP
rebates). This included developments across all product ranges including the
Flexible Lifetime Annuity, the International With-Profit Bond, the Prospect Bond
and the Flexible Investment Plan.

'The Plan from the Pru' campaign was launched in September 2002, and provides
customers with a financial plan to guide them through key financial stages of
their lives. It was actively promoted in the press and on television and radio
throughout 2003 and contributed to an increased awareness of the Prudential
brand during the year.

In 2003, Prudential's long-term with-profits fund earned an investment return of
16.5 per cent compared with a return of negative 8.1 per cent in 2002. Over the
last ten years, the long-term fund has consistently generated positive fund
returns for investors, demonstrating the benefits of Prudential's diversified
investment policy.

In November 2001, Prudential UK announced a review of operations with a target
of reducing annual costs by £175 million to be achieved by the end of 2004.
Following the first phase of this work in July 2002 the target was increased to
£200 million. This has been achieved in full, 12 months ahead of schedule.

Prudential UK opened a customer service centre in India in May 2003. The centre,
which at the end of December employed over 800 people and has handled over
500,000 calls since launch, will be fully operational later this year and is
part of Prudential UK's commitment to improving customer service.

3. First Quarter 2004 New Business Results

Prudential UK and Europe had a good start to the year delivering the highest APE
sales for five quarters. Total sales in the first quarter of £1,482 million were
12 per cent higher than the same period in 2003. APE sales were £186 million, up
9 per cent.

APE sales of corporate pensions through the business-to-business channel were up
21 per cent on the comparable period in 2003 to £35 million. This performance
reflected continued success in winning new scheme mandates (up 167 per cent) and
in adding new members to existing schemes (up 23 per cent). The continued
interest in Prudential's bulk annuities resulted in excellent sales in the first
quarter of this year. Single premium sales of £139 million were almost double
that achieved over the same period in 2003. Individual annuity APE sales of £45
million were 12 per cent lower than the comparable period in 2003. This
reflected the decision not to chase unprofitable business, due to the
significant increase in price competition over the last six months, but sales
were in line with those achieved in the fourth quarter of 2003.

APE sales of unit-linked and international with-profit bonds of £14 million were
twice the level recorded in the comparable quarter in 2003. This reflected
sustained growth in the sales of these products by intermediaries which were up
on the fourth quarter of 2003 by 13 and 53 per cent respectively. General market
conditions for with-profit bonds remain challenging - IFA sales of with-profit
products contracted by 80 per cent in 2003. APE sales in the first quarter were
57 per cent lower than in the same period last year.

Partnership APE sales, principally protection contracts through high street bank
branches of £19 million, were more than double the comparable period in 2003.

4. Presentation Timetable

The presentations will start at 9.00am and are scheduled to finish at
approximately 1.00pm. The running order of the presentations is as follows:

Introduction                           Jonathan Bloomer, Group Chief Executive, Prudential
Overview                               Mark Wood, Chief Executive, Prudential UK & Europe
Brand/Customer Experience              Roger Ramsden, PruLab Marketing Director
Financial Strength                     David Belsham, Actuarial Director
Financial Overview                     Tim Tookey, Finance Director
Questions & Answers                    Mark Wood, Chief Executive, Prudential UK & Europe
Distribution                           Chris Traynor, Intermediaries Sales Director
Products                               Andy Briggs, Distribution Director
Annuities                              David Still, In Retirement Director
Mortality                              Stephen Richards, Head of Mortality Risk
Questions & Answers                    Mark Wood, Chief Executive, Prudential UK & Europe

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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange