SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
LAURENCE POUNTNEY HILL,
LONDON, EC4R 0HH, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-
Enclosures:Bonus announcement
Prudential with-profits bonus overview 2005
Prudential shows strength with buoyant bonuses
- Total bonus rates increased or maintained on all unitised plans, and good
year-on-year increases in the value of nearly all with-profits policies
- Exceptionally strong investment-return on the Prudential with-profits fund
of 13.4% (before tax and charges)
- This compares to the FTSE 100 index (Total Return) of 11.25%
- Over the last five years, the with-profits fund has delivered a pre-tax
return of 20.7%, compared with a negative total return of -19.5% for the
FTSE 100 index over the same period
- Policies paying out in 2005 show strong increases compared with their
position a year ago:
- 10-year Prudence Bond (GBP10,000 single premium) up 7.9% on its 9-year
value in 2004
- 15-year Personal Pension (GBP200 per month regular premiums) up 7.75% on
its 14-year value in 2004
- 20-year Personal Pension (GBP200 per month regular premiums) up 10.7% on
its 19-year value in 2004
- 25-year With-Profits Endowment (GBP50 per month regular premiums based
on male aged 30 at start of contract) up 11.1% for Prudential and 13.8%
for Scottish Amicable on its 24-year value in 2004
Note - All figures are after deduction of tax and charges
- Annual bonus rates are being maintained for all business
- With-profits annuities total bonus increased to 7.12% (6.35% in 2004)
- Buoyant performance enables Prudential to add GBP2.2 billion to policy
values
- The with-profits fund of Prudential is the UK's largest, with more than
GBP73 billion under management and has 5.5 million policyholders (inclusive
of the Scottish Amicable Insurance Fund)
- Prudential mortgage endowments maturing in 2005 will meet repayment
targets and we've seen a significant improvement in Scottish Amicable
policies meeting repayment targets
- A 25-year savings endowment has delivered an annualised return of 8.7% net
of tax and charges, well ahead of comparable returns for deposits
- Prudential remains committed to maintaining a fair Market Value Reduction
(MVR) policy. This currently allows customers to withdraw GBP25,000, free of
any MVR adjustment, in any 12-month period, assuming the money has been in
the same with-profits fund for at least five years.
David Belsham, Actuarial Director, Prudential Assurance, said:
"We are now seeing the benefit of long-term prudence. We took early action to
protect policyholders' funds by switching out of equities ahead of the prolonged
bear market and policyholders are now benefiting from the strong returns earned
on Prudential's with-profits fund.
"This year's bonus declaration shows that with-profits continues to be an
attractive investment for policyholders when provided by a financially strong
and well managed fund, such as Prudential."
Mark Wood, Chief Executive, Prudential UK and Europe, said:
"We know from talking to our customers that many people are still looking for
attractive returns, but are not prepared to take on the risk associated with
investing directly in the stock market.
"As a result, we are confident about the future of the with-profits market and
we believe with-profits continues to offer a valuable way of saving. Our
financial strength enables us to compete strongly in this market."
Prudential established its independent with-profits committee in January 2005.
This committee assesses effectively and appropriately how the company balances
the rights and interests of policyholders and shareholders in relation to its
with-profits funds, and whether Prudential complies with its Principles and
Practices of Financial Management.
The committee comprises three members, all of whom are independent of
Prudential. They are:
- Andreas Whittam Smith, First Church Estates Commissioner and the founding
Editor of The Independent newspaper;
- Michael Arnold, a Principal and Head of the Life practice in the London
office of Milliman; and
- Jeremy Goford, until recently Principal of Tillinghast-Towers Perrin and
President of the Institute of Actuaries.
The committee has overseen the approach to, and the setting of, the 2005 bonus
declaration.
Full details of Prudential's 2005 bonus announcement are available from:
- the Prudential UK Press Office
- www.pru.co.uk/presscentre
- www.headlinemoney.co.uk
Enquiries to:
Media
James Murray Tel: 0207 150 2203 Mobile: 07810 181757
Anthony Frost Tel: 0207 150 3001 Mobile: 07886 967649
Paul Keeble Tel: 0207 150 2191 Mobile: 07904 081250
Analysts / investors
Marina Lee-Steere Tel: 020 7548 3511
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date 22 February 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Clare Staley
Clare Staley
Head of Group Media Relations,