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 January, 2007
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: 2006 Full Year NBF
Embargo: 10.46am Monday 29 January 2007
PRUDENTIAL PLC FULL YEAR 2006 NEW BUSINESS RESULTS
All figures compared to 2005 at constant exchange rates unless stated
New business for the full year 2006:
APE Growth PVNBP Growth
Total Group Insurance GBP2,470 million 16% GBP18,947 million 12%
Prudential UK retail GBP689 million 14% GBP5,594 million 15%
Total UK GBP900 million 1% GBP7,712 million 0%
Jackson GBP613 million 21% GBP6,103 million 20%
Prudential Corporation Asia GBP956 million 30% GBP5,132 million 26%
Asia Fund Management Record net fund inflows of GBP2.5 billion, up 91%
M&G Record net fund inflows of GBP6.1 billion, up 58%
Mark Tucker, Group Chief Executive said:
"I am delighted by our full year new business figures: the Group's insurance new
business has increased by 16 per cent year on year, on an APE basis, and our
asset management businesses saw net inflows increase by 66% to GBP8.6 billion.
"We have seen a 25 per cent increase in the Group's insurance new business, on
an APE basis, for the fourth quarter of 2006 compared to the same quarter in
2005 and an encouraging 21 per cent rise in new business for the fourth quarter
of 2006 over the third. Overall the Group is in robust health.
"A 14 per cent increase in UK retail insurance operations APE sales was driven
primarily by the growth in individual annuities and corporate pensions. In
wholesale, we have chosen not to write business at unattractive pricing and
therefore sales are down year on year.
"We have continued to reassess in depth the prospects for all sectors of the UK
life and pensions market and are confident that there are profitable organic
opportunities in the retirement savings and income market. We shall provide an
update with further details by 15th March.
"Jackson, Prudential's US insurance business, achieved record new business of
GBP613 million APE in 2006, representing a 21 per cent increase on 2005, driven
by strong growth in sales of variable annuities, up 48 per cent on last year.
"Prudential's Asian life operations delivered new business APE of GBP956million,
up 30 per cent in 2006 including a 25 per cent rise over the third quarter and
reflecting the momentum of the business seen throughout the year. We have seen
strong growth in a number of country markets including India up 95 per cent,
China up 56 per cent and Korea up 54 per cent.
"Asset management continues to perform exceptionally well with M&G achieving
record net fund inflows of GBP6.1 billion, an increase of 58 per cent,
reflecting M&G's leading position in retail fund management, institutional fixed
income, pooled life and pension funds, property and private finance.
"In Asia, PCA Fund Management also achieved record net inflows of GBP2.5
billion, almost double the 2005 figure. This reflects the product strength and
increasing geographic diversification of our Asian fund management business.
"Trading conditions at Egg, our UK banking business, have seen further
deterioration since we updated the market in October as a result of worsening
credit experience and lower levels of lending than anticipated. Separately
today, Prudential has announced that it has entered into a binding agreement to
sell Egg to Citigroup for a consideration of GBP575 million subject to
adjustment to reflect any change in net asset value between 31 December 2006 and
completion.
"Going forward, the Group expects to maintain both its momentum in sales volume
and its focus on value."
Commentary on Full Year 2006 New Business Results
UK Insurance and Banking operations
Prudential's UK insurance operations delivered total APE sales for the year of
GBP900 million, 1 per cent higher than those achieved in 2005. Sales on a PVNBP
basis are in line with 2005 at GBP7,712 million.
The UK retail insurance operations performed well with APE sales up 14 per cent
on 2005 to GBP689 million driven primarily by the growth in corporate pensions
and individual annuity sales. In the wholesale business, Prudential has chosen
not to write business at unattractive pricing and therefore sales are down
year-on-year.
Individual annuity sales grew by 22 per cent to GBP271 million as the annuity
market experienced increased activity in the second half of 2006 following the
removal of uncertainty around A-Day pension changes. In total 110,000 new
annuity policies were written. Sales volume has been driven by the continued
strength of internal vestings (APE GBP135 million) together with the cumulative
benefit of partnership deals signed in previous years. With-profit annuities
sales from all distribution channels more than doubled to GBP37 million compared
with 2005.
In relation to externally sourced annuity business, Prudential signed further
partnership agreements in 2006 including the Royal London transaction that came
into effect in September. In addition, Prudential signed an exclusive 5-year
agreement with Threadneedle as their supplier of annuities for their Stakeholder
scheme as well as any future defined contribution schemes that Threadneedle
acquires. This is a new area for Prudential that builds on its experience in
providing annuities to customers of life insurance companies. With the future
growth in DC schemes within the UK Prudential expects more agreements of this
type.
Sales of with-profit bonds increased by 44 per cent during 2006. Much of this
reflects Prudential's financial strength and continuing outstanding life fund
investment returns that have been well received by both customers and advisers.
PruFund, Prudential's unitised and smoothed investment plan, secured a new
distribution agreement in the fourth quarter with National Australia Bank Group.
Corporate pension APE sales increased by 23 per cent to GBP224 million with the
capture of a number of new scheme wins during 2006, including Debenhams and
Royal & SunAlliance with 4,100 and 4,500 members respectively. This is due in
part to the continuing shift from defined-benefit to defined-contribution
schemes and also due to the impact of A-day and the growth in Prudential's new
Fund Delivery Service. This contributed GBP25 million of APE sales in its first
year of operation.
Prudential has continued to pursue its focus on value, not volume, in the unit
linked bond market. A large percentage of this market is financially
unattractive with high up-front commission costs and poor forward-looking
persistency due to high churn. For this reason we have been targeting higher
value intermediaries.
Prudential has recruited a team of 20 face-to-face specialist consultants to
sell its Lifetime Mortgage product, the Property Value Release Plan, and are
looking to grow this team further in 2007. APE sales in 2006 were GBP9 million
and resulted in Prudential achieving an 8 per cent share of the lifetime
mortgage market.
PruHealth continues to develop well, with full-year Gross Written Premiums up
300 per cent at GBP36 million (GBP9 million in 2005). It now has around 100,000
individuals covered.
As previously announced, we believe it would be beneficial if there was greater
clarity as to the status of the Inherited Estate and we continue to keep the
situation under review. A reattribution will only be undertaken if there are
clear benefits for both policyholders and shareholders and we will provide an
update as to whether we intend to proceed in due course.
Jackson
Jackson, Prudential's US insurance business, achieved record APE sales of GBP613
million in 2006, representing a 21 per cent increase on 2005, driven by strong
growth in sales of variable annuities. On a PVNBP basis, new business sales were
GBP6.1 billion. Retail APE sales in 2006 of GBP524 million were up 27 per cent.
APE sales in the fourth quarter of 2006 were GBP147 million, up 43 per cent CER
compared to the fourth quarter of 2005.
Jackson delivered record variable annuity sales in 2006 of GBP3.8 billion, up 48
per cent on last year. This reflects its distinct competitive advantages of an
innovative product offering, an efficient and flexible technology platform, a
relationship-driven distribution model and award-winning service.
Jackson's sales result was achieved in a market that grew 18 per cent
year-on-year through the first three quarters of 2006. Jackson increased its
variable annuity market share to 4.5 per cent as at the end of the third quarter
of 2006, up from 3.6 per cent at the same point in 2005, and maintained its
ranking of 12th in total variable annuity sales. In the independent broker
dealer distribution channel, Jackson's variable annuity sales during the first
nine months of 2006 increased 52 per cent over the same period in 2005, while
industry sales grew 27 per cent. This took Jackson's ranking in the channel from
5th at the end of September 2005 to 2nd at the end of September 2006 and
increased its market share from 8.8 per cent to 10.6 per cent.
Innovation in product design and speed to market continue to be key drivers of
Jackson's competitiveness as 81 per cent of retail sales during 2006 were
related to products and product features launched since the beginning of 2005.
In January, Jackson added a 5 per cent annual benefit increase option to its
popular lifetime guaranteed minimum withdrawal benefits (GMWBs). In May, Jackson
added five new GMWB options that offer contract holders a guaranteed return of
premium and lifetime income. Additionally, Jackson expanded its variable annuity
fund offering during the year. In February, the company launched two new fixed
index annuity (FIA) contracts, which expanded the number of FIA products Jackson
offers to five.
Entry spreads for fixed annuities continued to be challenging during 2006, which
limited the attractiveness of the market to Jackson. APE sales of GBP69 million
were down 12 per cent on the same period of 2005.
Fixed index annuity sales continued to be impacted by the uncertain regulatory
environment in the US. APE sales of GBP55 million were 10 per cent down on 2005.
Jackson's market share through the end of the third quarter of 2006 was 3.8 per
cent, unchanged from the same period in the prior year.
Curian Capital, a specialised asset management company that provides innovative
separately managed accounts, is building its position in the US retail asset
management market with total assets under management at the end of 2006 of $2.4
billion compared with $1.7 billion at the end of 2005.
Institutional APE sales of GBP90 million were down 8 per cent from 2005. Jackson
participates in this market on an opportunistic basis.
Jackson's focus is to expand its share of the US annuity and retail asset
management markets. This will be achieved through continued expansion of
existing product offerings, additional growth in new and existing distribution
channels and opportunistic acquisition activity.
Jackson's product development strategy includes further enhancement of its
variable annuity offerings and the introduction of new guarantees, including a
guaranteed minimum accumulation benefit (GMAB). Jackson has launched a
simplified retirement annuity that will serve as a low cost option for financial
advisors who are currently not participating in the variable annuity market.
Additionally, Jackson has rolled out its first set of retail mutual funds for
distribution by existing wholesalers. Jackson's new mutual funds will be
marketed as an additional option for financial advisors currently selling
variable annuity products.
Jackson will continue to build its relationship-based distribution advantage in
the advice-based channels, including a particular focus on increasing annuity
sales in the bank and regional broker-dealer channels. Jackson will also explore
additional distribution opportunities, including further expansion into the
wirehouse channel, as evidenced by the company's recent distribution agreement
with UBS.
Jackson continues to deliver growth in the attractive US market and has further
enhanced its competitive advantages in the variable annuity market, offering the
product and service solutions that both customers and advisors desire. With a
continued focus on product innovation, a proven relationship-based distribution
model, award-winning service and excellence in execution, Jackson is well
positioned to take advantage of the changing demographics and resulting
opportunities in the US market.
Prudential Corporation Asia
Prudential's Asian life operations delivered new business APE of GBP956 million
representing growth of 30 per cent in 2006 and reflecting the sustained momentum
of the business seen throughout the year. The fourth quarter of 2006, with APE
of GBP282 million, showed an increase of 29 per cent relative to the same
quarter in 2005 and 25 per cent relative to the third quarter of 2006. On the
PVNBP basis sales for 2006 of GBP5.1 billion are 26 per cent higher than in
2005.
Prudential's focus continues to be on sustainable and profitable growth and the
new business results reflect the continuing success of this strategy. The
proportion of unit linked business for the year is 65 per cent, in line with the
63 per cent reported for last year and demonstrates the sustained appeal of
these products to consumers across the region. The proportion of new business
from traditional agency distribution is 70 per cent compared to 74 per cent last
year, as our bank and broker distribution continues to strengthen.
Prudential's joint venture with ICICI in India is a market leading operation and
has rapidly achieved material scale since launch in 2000. APE for 2006 increased
by 95 per cent over the same period last year with Prudential's 26 per cent
being GBP107 million. This was driven by a significant increase in agent numbers
as the operation continues to open up new branches across India, and higher
average premiums per policy, as well as growth from the bancassurance channel.
Prudential's Korean life business with APE of GBP218 million, which is a growth
of 54 per cent from 2005, continues to benefit from the expansion of the tied
financial adviser channel in 2006 partially offset by slower growth in the
broker channel where some brokers have been restructuring. Bancassurance growth
continues to be constrained by regulatory individual company production caps and
Prudential continues to explore opportunities to work with more banks. Since
acquisition this operation has outperformed the industry and is well on track to
become a major player.
In Taiwan, Prudential's focus continues to be on value rather than volume.
Whilst full year APE at GBP148 million is 6 per cent lower than last year, the
proportion of higher margin unit linked remains high relative to the industry at
58 per cent.
Prudential's life business in Indonesia continues to go from strength to
strength with APE sales of GBP74 million, 54 per cent up on last year driven by
increased agent numbers. This business has a high proportion of unit linked
sales and is the well established market leader in this product.
Although growth in Prudential's Singapore life business slowed in the third
quarter as equity market volatility impacted single premium linked business, it
had a strong fourth quarter and full year APE of GBP108 million is up a healthy
23 per cent on 2005. Prudential's Hong Kong life business, at GBP139 million for
2006, is up 26 per cent over 2005 driven due to a successful retirement
orientated savings product launch and strong results from Standard Chartered
Bank. In Malaysia sales across the industry remain depressed following
regulatory changes last year; however in the fourth quarter sales growth
recovered and Prudential's new business was up 15 per cent compared to the same
quarter in 2005. Full year APE in Malaysia for Prudential was GBP72 million, up
6 per cent on 2005. The Takaful joint venture with Bank Simpanan Nasional (BSN)
commenced sales in November.
In China, CITIC Prudential APE for 2006 of GBP39 million is an increase of 56
per cent compared to 2005, reflecting an increasing contribution from the new
cities as well as the continued growth from the longer established operations
such as Guangzhou and Bejing.
The Vietnamese market continues to be challenging and Prudential's APE year to
date has declined by 14 per cent, however the long term potential of this market
remains excellent.
Prudential's other smaller operations of Japan, Thailand and Philippines grew at
133 per cent, 83 per cent and 14 per cent respectively year to date.
Prudential has an excellent track record of building a profitable business in
Asia and its focus continues to be on long term, profitable and sustainable
growth.
Asset Management
M&G
Outstanding fund performance led to record fund inflows into M&G's retail and
institutional businesses during 2006. Gross fund inflows were GBP13.5 billion,
an increase of 70 per cent on the previous year. Net fund inflows were their
highest ever, increasing by 58 per cent to GBP6.1 billion, reflecting M&G's
leading position in retail fund management, institutional fixed income, pooled
life and pension funds, property and private finance. External funds under
management grew significantly, up 24 per cent to GBP45 billion, and at this
level represents over a quarter of M&G's total funds under management.
Fund inflows into M&G's retail business continued to perform very strongly.
Whilst gross fund inflows increased by 75 per cent to GBP6.7 billion, net fund
inflows more than doubled to GBP3.1 billion. Fund performance across M&G's range
of equity, bond and property funds was excellent, which was recognised by M&G
being named Best Equity Group (Large) and Best Non UK Equity Group (Large) at
the Lipper Citywire All Stars Awards 2006. Demand remained strong for M&G's high
alpha equity and competitive fixed income and property offerings and M&G
continued to innovate during the year with the launch of two new funds, the M&G
Optimal Income Fund and M&G European Property Fund. Retail sales were strong in
the UK and South Africa, and across the European markets of Germany, Austria,
Switzerland, Luxembourg, Italy and Spain, where M&G is maximising the
opportunity created by the continued opening up of these markets to foreign
players.
M&G's institutional business also saw substantial growth with gross fund inflows
increasing by 66 per cent to GBP6.8 billion and net inflows rising 19 per cent
to GBP3 billion. M&G's scale and market reputation in fixed income continued to
position it very favourably in both traditional areas of the market, such as
segregated funds, and more alternative areas such as structured credit. Fund
inflows into segregated funds was strong on the back of good fund performance
which saw 86 per cent of funds above benchmark over one year and 90 per cent
over three years. M&G consolidated its market leading position in structured
credit with the launch of seven new Collateralised Debt Obligations (CDOs)
during the year and was named CDO manager of the year by IFR magazine.
Significant fund inflows were generated into M&G's Episode global macro fund,
with the fund reaching $1.5 billion assets under management within 17 months of
launch.
Asian Fund Management Business
The Asian Fund Management Business continues to deliver record net inflows in
the fourth quarter in 2006. Net inflows of GBP0.9 billion, were up 155 per cent
for the same period in 2005, reflecting the strengths of the Asian Fund
Management's geographic and product diversification.
Full year record net inflows of GBP2.5 billion were up 91% from 2005. Of the
annual net inflows of GBP2.5 billion, GBP2.3 billion or 94 per cent have been
from non-MMF products. Equity and non-MMF assets grew by GBP2.0 billion in 2006.
Total third party funds under management were GBP12.3 billion, an increase of 21
per cent compared to the fourth quarter in 2005. India and Korea were the main
contributors to this growth with funds under management increasing by 36 per
cent, and 27 per cent respectively. India growth was largely driven by strong
equity and money market inflows. Korea growth was attributable to positive
market sentiment, expanded distribution channels and good fund performance which
led to a high level of equity and structured product inflows.
During the fourth quarter, Prudential Vietnam Fund Management Company launched a
Cayman structured closed ended fund targeted at sophisticated investors and
distributed for the first time actively to high net worth individuals through
private banking channels. This fund raised close to GBP160 million and is listed
on the Irish Stock Exchange. Prudential Vietnam Fund Management Company has now
become the largest domestic mutual fund company in Vietnam in terms of funds
under management. CITIC Prudential Fund Management launched its second fund in
the fourth quarter and raised GBP220 million. Launched only last October, CITIC
Prudential Fund Management has already raised over GBP420 million from its two
fund launches in 2006. Prudential Asset Management (HK) Limited has been awarded
a US$200 million quota by China's State Administration for Foreign Exchange
under the Qualified Foreign Institutional Investor ("QFII") scheme. Introduced
in May 2002, the QFII scheme allows qualified foreign institutional investors
direct participation in China's domestic "A" share equity and fixed income
markets. PCA Securities Investment Trust in Taiwan launched the Asia Pacific
REITs Fund in the fourth quarter and achieved its FUM cap of GBP157 million.
Prudential remains confident that its fund management businesses in Asia are in
an ideal position to achieve strong and profitable growth as it has put in place
a distinctive and advantaged platform.
ENDS
Enquiries:
Media Investors/Analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
William Baldwin-Charles 020 7548 3719 Valerie Pariente 020 7548 3511
Notes to Editor:
1. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales and are subject to rounding.
2. Present Value of New Business Premiums (PVNBP) are calculated as equalling
single premiums plus the present value of expected new business
premiums of regular premium business, allowing for lapses and other
assumptions made in determining the EEV new business contribution.
3. UK Retail sales include all products except bulk annuities and credit life
sales.
4. There will be a conference call today for wire services at 11.30am (BST)
hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group
Finance Director. Dial in telephone number: +44 (0)20 8609 0205.
Passcode: 155439#
5. There will be a conference call for investors and analysts at 12.00am (BST)
hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group
Finance Director. From the UK please call +44 (0)20 8609 0205 and from the US
1866 793 4279. 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 160468.
6. High resolution photographs are available to the media free of charge at
www.newscast.co.uk (+44 (0) 207 608 1000).
7. 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
2006 2005 +/- (%) 2006 2005 +/- (%)
GBPm GBPm GBPm GBPm
UK 900 891 1% 900 891 1%
US 613 515 19% 613 508 21%
Asia 956 731 31% 956 734 30%
______ ______ ______ ______ ______ ______
Total 2,470 2,137 16% 2,470 2,134 16%
Gross Inflows
Actual Exchange Rates Constant Exchange Rates
2006 2005 +/- (%) 2006 2005 +/- (%)
GBPm GBPm GBPm GBPm
M&G 13,486 7,916 70% 13,486 7,916 70%
Asia 20,408 18,457 11% 20,408 18,049 13%
______ ______ ______ ______ ______ ______
Total 33,894 26,373 29% 33,894 25,965 31%
Total Insurance and Investment New Business
Actual Exchange Rates Constant Exchange Rates
2006 2005 +/- (%) 2006 2005 +/- (%)
GBPm GBPm GBPm GBPm
Insurance 15,094 13,700 10% 15,094 13,641 11%
Investment 33,894 26,373 29% 33,894 25,965 31%
______ ______ ______ ______ ______ ______
Total 48,988 40,073 22% 48,988 39,606 24%
8. For Jackson, market share data is provided for the first nine months of 2006,
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 LIMRA and The Advantage Group.
9. Total number of Prudential plc shares in issue as at 31st December 2006 was
2,444,312,425. This number will be reported monthly to the stock exchange
going forward.
10. Financial Calendar 2006 - 2007:
Full year 2006 Results 15th March 2007
Q1 New Business Figures 19th April 2007
AGM 17th May 2007
Interim Results 1st August 2007
Q3 New Business Figures 18th October 2007
*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 GBP237.5 billion in
assets under management, (as at 30 June 2006) 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 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US Asia(1a) Total
(1a)
FY 2006 FY 2005 +/-(%) FY FY +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 2005 (%) (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance Products 7,192 7,192 0% 5,981 4,958 21% 1,921 1,491 29% 15,094 13,641 11%
Total Investment 13,486 7,916 70% - - - 20,408 18,049 13% 33,894 25,965 31%
Products - Gross Inflows
(2)
Group Total 20,678 15,108 37% 5,981 4,958 21% 22,329 19,540 14% 48,988 39,606 24%
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY +/-(%)
2006 (%) (%) 2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%)
Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0%
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50%
Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27%
Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3%
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%)
Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25%
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%)
Partnerships
Individual Pensions 1 - - - - - 1 - - - - -
Life - With Profit Bond 24 - - - - - 24 - - 2 - -
Life - Other Bond 117 - - - - - 117 - - 12 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%)
Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137%
Bulk Annuities - 560 - - - - - 560 - - 56 - -
Reinsurance from Scot Am
Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23%
Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44%
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1%
Operations
European Insurance
Operations (1a)
Insurance Products 159 200 (21%) - - - 159 200 (21%) 16 20 (20%)
Total European Insurance 159 200 (21%) - - - 159 200 (21%) 16 20 (20%)
Operations
Total UK & Europe 6,991 7,001 (0%) 201 191 5% 7,192 7,192 0% 900 891 1%
Insurance Operations
US Insurance Operations
(1a)
Fixed Annuities 688 777 (11%) - - - 688 777 (11%) 69 78 (12%)
Fixed Index Annuities 554 608 (9%) - - - 554 608 (9%) 55 61 (10%)
Variable Annuities 3,819 2,572 48% - - - 3,819 2,572 48% 382 257 49%
Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20%
Sub-Total Retail 5,069 3,968 28% 17 14 21% 5,086 3,982 28% 524 411 27%
Guaranteed Investment 458 350 31% - - - 458 350 31% 46 35 31%
Contracts
GIC - Medium Term Note 437 626 (30%) - - - 437 626 (30%) 44 63 (30%)
Total US Insurance 5,964 4,944 21% 17 14 21% 5,981 4,958 21% 613 508 21%
Operations
Asian Insurance
Operations (1a)
China 27 17 59% 36 23 57% 63 40 58% 39 25 56%
Hong Kong 355 285 25% 103 81 27% 458 366 25% 139 110 26%
India (6) 20 4 400% 105 55 91% 125 59 112% 107 55 95%
Indonesia 31 44 (30%) 71 44 61% 102 88 16% 74 48 54%
Japan 68 28 143% 7 3 133% 75 31 142% 14 6 133%
Korea 103 31 232% 208 139 50% 311 170 83% 218 142 54%
Malaysia 4 9 (56%) 72 67 7% 76 76 0% 72 68 6%
Singapore 357 293 22% 72 59 22% 429 352 22% 108 88 23%
Taiwan 92 121 (24%) 139 145 (4%) 231 266 (13%) 148 157 (6%)
Other (4) 15 9 67% 36 34 6% 51 43 19% 38 35 9%
Total Asian Insurance 1,072 841 27% 849 650 31% 1,921 1,491 29% 956 734 30%
Operations
Group Total 14,027 12,786 10% 1,067 855 25% 15,094 13,641 11% 2,470 2,134 16%
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
FY 2006 FY 2005 +/-(%) FY 2006 FY +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2005 (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10%
Products
Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29%
Products - Gross
Inflows (2)
Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22%
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
FY 2006 FY 2005 +/- (%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY +/-(%)
2006 (%) (%) 2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%)
Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0%
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50%
Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27%
Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3%
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%)
Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25%
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%)
Partnerships
Individual Pensions 1 - - - - - 1 - - - - -
Life - With Profit Bond 24 - - - - - 24 - - 2 - -
Life - Other Bond 117 - - - - - 117 - - 12 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%)
Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137%
Bulk Annuities - 560 - - - - - 560 - - 56 - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23%
Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44%
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1%
Operations
European Insurance
Operations (1b)
Insurance Products 159 201 (21%) - - - 159 201 (21%) 16 20 (20%)
Total European 159 201 (21%) - - - 159 201 (21%) 16 20 (20%)
Insurance Operations
Total UK & Europe 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 900 891 1%
Insurance Operations
US Insurance Operations
(1b)
Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 69 79 (13%)
Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 55 62 (11%)
Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 382 261 46%
Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20%
Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 524 416 26%
Guaranteed Investment 458 355 29% - - - 458 355 29% 46 36 28%
Contracts
GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 44 63 (30%)
Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 613 515 19%
Operations
Asian Insurance
Operations (1b)
China 27 17 59% 36 23 57% 63 40 58% 39 25 56%
Hong Kong 355 289 23% 103 83 24% 458 372 23% 139 112 24%
India (6) 20 4 400% 105 57 84% 125 61 105% 107 57 88%
Indonesia 31 42 (26%) 71 42 69% 102 84 21% 74 46 61%
Japan 68 30 127% 7 4 75% 75 34 121% 14 7 100%
Korea 103 29 255% 208 132 58% 311 161 93% 218 135 61%
Malaysia 4 9 (56%) 72 66 9% 76 75 1% 72 67 7%
Singapore 357 284 26% 72 58 24% 429 342 25% 108 86 26%
Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 148 161 (8%)
Other (4) 15 9 67% 36 33 9% 51 42 21% 38 34 12%
Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 956 731 31%
Operations
Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 2,470 2,137 16%
Schedule 1B - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
FY 2006 FY 2005 +/- FY 2006 FY +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
(%) 2005 (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10%
Products
Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29%
Products - Gross
Inflows (2)
Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22%
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY FY 2005 +/- FY FY +/-(%)
2006 (%) 2006 (%) 2006 2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%)
Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0%
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50%
Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27%
Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3%
Intermediated Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%)
Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25%
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%)
Partnerships
Individual Pensions 1 - - - - - 1 - - - - -
Life - With Profit Bond 24 - - - - - 24 - - 2 - -
Life - Other Bond 117 - - - - - 117 - - 12 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%)
Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137%
Bulk Annuities - Reinsurance 560 - - - - - 560 - - 56 - -
from Scot Am Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23%
Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44%
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1%
Operations
European Insurance
Operations (1b)
Insurance Products 159 201 (21%) - - - 159 201 (21%) 16 20 (20%)
Total European Insurance 159 201 (21%) - - - 159 201 (21%) 16 20 (20%)
Operations
Total UK & Europe Insurance 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 900 891 1%
Operations
US Insurance Operations (1b)
Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 69 79 (13%)
Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 55 62 (11%)
Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 382 261 46%
Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20%
Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 524 416 26%
Guaranteed Investment 458 355 29% - - - 458 355 29% 46 36 28%
Contracts
GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 44 63 (30%)
Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 613 515 19%
Operations
Asian Insurance Operations
(1b)
China 27 17 59% 36 23 57% 63 40 58% 39 25 56%
Hong Kong 355 289 23% 103 83 24% 458 372 23% 139 112 24%
India (6) 20 4 400% 105 57 84% 125 61 105% 107 57 88%
Indonesia 31 42 (26%) 71 42 69% 102 84 21% 74 46 61%
Japan 68 30 127% 7 4 75% 75 34 121% 14 7 100%
Korea 103 29 255% 208 132 58% 311 161 93% 218 135 61%
Malaysia 4 9 (56%) 72 66 9% 76 75 1% 72 67 7%
Singapore 357 284 26% 72 58 24% 429 342 25% 108 86 26%
Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 148 161 (8%)
Other (4) 15 9 67% 36 33 9% 51 42 21% 38 34 12%
Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 956 731 31%
Operations
Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 2,470 2,137 16%
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
INVESTMENT OPERATIONS
Market & Net
Opening Other Currency Movement Closing
FUM Gross Redemptions Net Movements Movements In FUM FUM
Inflows Inflows
2006 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
M&G
Retail 14,627 6,722 (3,619) 3,103 - 1,446 4,549 19,176
Institutional (5) 21,568 6,764 (3,766) 2,998 140 1,064 4,202 25,770
Total M&G 36,195 13,486 (7,385) 6,101 140 2,510 8,751 44,946
Asia (10)
India (9) 1,005 982 (680) 302 45 (62) 285 1,290
Taiwan 632 1,185 (866) 319 - 18 337 969
Korea 2,269 2,981 (2,065) 916 (297) 64 683 2,952
Japan 2,695 1,393 (1,026) 367 - (246) 121 2,816
Other Mutual Fund Operations 1,037 1,005 (619) 386 (1) 46 431 1,468
Total Asian Equity/Bond/Other 7,638 7,546 (5,256) 2,290 (253) (180) 1,857 9,495
MMF
India (9) 461 8,961 (8,762) 199 (75) 124 248 709
Taiwan 667 1,378 (1,516) (138) - (62) (200) 467
Korea 534 2,221 (2,122) 99 (17) (7) 75 609
Other Mutual Fund Operations 143 182 (179) 3 - (13) (10) 133
Total Asian MMF 1,805 12,742 (12,579) 163 (92) 42 113 1,918
Total Asia Retail Mutual Funds 9,443 20,288 (17,835) 2,453 (345) (138) 1,970 11,413
Third Party Institutional 691 120 (41) 79 - 70 149 840
Mandates
Total Asian Investment 10,134 20,408 (17,876) 2,532 (345) (68) 2,119 12,253
Operations
Total Investment Products 46,329 33,894 (25,261) 8,633 (205) 2,442 10,870 57,199
Market & Net
Opening Other Currency Movement Closing
FUM Gross Redemptions Net Movements Movements In FUM FUM
Inflows Inflows
2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
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) 2,188 4,476 21,568
Total M&G 28,705 7,916 (4,054) 3,862 (229) 3,857 7,490 36,195
Asia (10)
India (9) 1,231 1,931 (1,770) 161 (669) 282 (226) 1,005
Taiwan 485 555 (563) (8) - 155 147 632
Korea 1,089 2,151 (1,363) 788 (15) 407 1,180 2,269
Japan 1,638 1,487 (582) 905 - 152 1,057 2,695
Other Mutual Fund Operations 646 673 (378) 295 - 96 391 1,037
Total Asia Equity/Bond/Other 5,089 6,797 (4,656) 2,141 (684) 1,092 2,549 7,638
MMF
India (9) 913 8,251 (8,264) (13) (524) 85 (452) 461
Taiwan 1,312 1,823 (2,561) (738) - 93 (645) 667
Korea 338 1,378 (1,240) 138 (6) 64 196 534
Other Mutual Fund Operations 181 206 (255) (49) - 11 (38) 143
Total Asian MMF 2,744 11,658 (12,320) (662) (530) 253 (939) 1,805
Total Asia Retail Mutual Funds 7,833 18,455 (16,976) 1,479 (1,214) 1,345 1,610 9,443
Third Party Institutional 705 2 (153) (151) - 137 (14) 691
Mandates
Total Asian Investment 8,538 18,457 (17,129) 1,328 (1,214) 1,482 1,596 10,134
Operations
Total Investment Products 37,243 26,373 (21,183) 5,190 (1,443) 5,339 9,086 46,329
Market & Net
Opening Other Currency Movement Closing
FUM Gross Redemptions Net Movements Movements In FUM FUM
Inflows Inflows
2006 Relative to 2005 % % % % % % % %
M&G
Retail 26% 75% (45%) 131% - (13%) 51% 31%
Institutional (5) 26% 66% (142%) 19% 161% (51%) (6%) 19%
Total M&G 26% 70% (82%) 58% 161% (35%) 17% 24%
Asia (10)
India (9) (18%) (49%) 62% 88% 107% (122%) 226% 28%
Taiwan 30% 114% (54%) 4,088% - (88%) 129% 53%
Korea 108% 39% (52%) 16% (1,880%) (84%) (42%) 30%
Japan 65% (6%) (76%) (59%) - (262%) (89%) 4%
Other Mutual Fund Operations 61% 49% (64%) 31% - (52%) 10% 42%
Total Asian Equity/Bond/Other 50% 11% (13%) 7% 63% (116%) (27%) 24%
Asia
India (9) (50%) 9% (6%) 1,631% 86% 46% 155% 54%
Taiwan (49%) (24%) 41% 81% - (167%) 69% (30%)
Korea 58% 61% (71%) (28%) (183%) (111%) (62%) 14%
Other Mutual Fund Operations (21%) (12%) 30% 106% - (218%) 74% (7%)
Total Asian MMF (34%) 9% (2%) 125% 83% (83%) 112% 6%
Total Asian Retail Mutual 21% 10% (5%) 66% 72% (110%) 22% 21%
Funds
Third Party Institutional (2%) 5,900% 73% 152% - (49%) 1,164% 22%
Mandates
Total Asian Investment 19% 11% (4%) 91% 72% (105%) 33% 21%
Operations
Total Investment Products 24% 29% (19%) 66% 86% (54%) 20% 23%
2006 Q4 2005 Q4
US (7) YTD YTD +/- (%)
GBPm GBPm
Curian Capital
External Funds Under 1,242 853 46%
Administration
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 4 2005
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-(%)
2006 2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations
Direct to Customer
Individual Pensions 4 2 100% 2 2 0% 6 4 50% 2 2 0%
Life - With Profit 7 4 75% - - - 7 4 75% 1 - -
Bond
Life - Other 10 2 400% - - - 10 2 400% 1 - -
Individual Annuities 205 178 15% - - - 205 178 15% 21 18 17%
Sub-Total 226 186 22% 2 2 0% 228 188 21% 25 21 19%
DWP Rebates - 10 - - - - - 10 - - 1 -
Total 226 196 15% 2 2 0% 228 198 15% 25 22 14%
Business to Business
Corporate Pensions 326 81 302% 45 54 (17%) 371 135 175% 78 62 26%
Individual Annuities 91 61 49% - - - 91 61 49% 9 6 50%
Bulk Annuities 40 98 (59%) - - - 40 98 (59%) 4 10 (60%)
Total 457 240 90% 45 54 (17%) 502 294 71% 91 78 17%
Intermediated
Distribution
Individual Pensions 20 15 33% 4 4 0% 24 19 26% 6 6 0%
Corporate Pensions 12 11 9% 1 1 0% 13 12 8% 2 2 0%
Life - With Profit 60 40 50% - - - 60 40 50% 6 4 50%
Bond
Life - Other Bond 125 265 (53%) - - - 125 265 (53%) 13 27 (52%)
Life - Other 29 2 1,350% - 2 - 29 4 625% 3 2 50%
Individual Annuities 368 209 76% - - - 368 209 76% 37 21 76%
Total 614 542 13% 5 7 (29%) 619 549 13% 66 61 8%
Partnerships
Individual Pensions (1) - - - - - (1) - - - - -
Life - With Profit 13 - - - - - 13 - - 1 - -
Bond
Life - Other Bond 16 - - - - - 16 - - 2 - -
Life - Other 201 185 9% 1 1 0% 202 186 9% 21 20 5%
Individual Annuities 171 149 15% - - - 171 149 15% 17 15 13%
Bulk Annuities - (32) - - - - - (32) - - (3) - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 123 - - - - - 123 - - 12 - -
Total 491 334 47% 1 1 0% 492 335 47% 50 34 47%
Total:
Individual Pensions 23 17 35% 6 6 0% 29 23 26% 8 8 0%
Corporate Pensions 338 92 267% 46 55 (16%) 384 147 161% 80 64 25%
Life - With Profit 80 44 82% - - - 80 44 82% 8 4 100%
Bond
Life - Other Bond 141 265 (47%) - - - 141 265 (47%) 14 27 (48%)
Life - Other 240 189 27% 1 3 (67%) 241 192 26% 25 22 14%
Individual Annuities 835 597 40% - - - 835 597 40% 84 60 40%
Bulk Annuities 131 98 34% - - - 131 98 34% 13 10 30%
1,788 1,302 37% 53 64 (17%) 1,841 1,366 35% 232 194 20%
DWP Rebates - 10 - - - - - 10 - - 1 -
Total UK Insurance 1,788 1,312 36% 53 64 (17%) 1,841 1,376 34% 232 195 19%
Operations
European Insurance
Operations
Insurance Products 44 47 (6%) - - - 44 47 (6%) 4 5 (20%)
Total European 44 47 (6%) - - - 44 47 (6%) 4 5 (20%)
Insurance Operations
Total UK and Europe 1,832 1,359 35% 53 64 (17%) 1,885 1,423 32% 236 200 18%
Unsurance Operations
US Insurance
Operations (8)
Fixed Annuities 171 149 15% - - - 171 149 15% 17 15 13%
Fixed Index Annuities 118 155 (24%) - - - 118 155 (24%) 12 16 (25%)
Variable Annuities 1,010 735 37% - - - 1,010 735 37% 101 74 36%
Life 2 3 (33%) 4 4 0% 6 7 (14%) 4 4 0%
Sub-Total Retail 1,301 1,042 25% 4 4 0% 1,305 1,046 25% 134 108 24%
Guaranteed Investment 133 49 171% - - - 133 49 171% 13 5 160%
Contracts
GIC - Medium Term (6) 9 (167%) - - - (6) 9 (167%) (1) 1 (200%)
Note
Total US Insurance 1,428 1,100 30% 4 4 0% 1,432 1,104 30% 147 114 29%
Operations
Asian Insurance
Operations (8)
China 5 8 (38%) 15 8 88% 20 16 25% 16 9 78%
Hong Kong 131 88 49% 35 28 25% 166 116 43% 48 37 30%
India (6) 6 1 500% 28 16 75% 34 17 100% 29 16 81%
Indonesia 14 6 133% 22 13 69% 36 19 89% 23 14 64%
Japan 27 11 145% 3 - - 30 11 173% 6 1 500%
Korea 27 18 50% 53 41 29% 80 59 36% 56 43 30%
Malaysia 1 1 0% 23 20 15% 24 21 14% 23 20 15%
Singapore 87 90 (3%) 25 19 32% 112 109 3% 34 28 21%
Taiwan 34 29 17% 33 40 (18%) 67 69 (3%) 36 43 (16%)
Other (4) 6 2 200% 11 9 22% 17 11 55% 12 9 33%
Total Asian Insurance 338 254 33% 248 194 28% 586 448 31% 282 219 29%
Operations
Group Total 3,598 2,713 33% 305 262 16% 3,903 2,975 31% 665 533 25%
INVESTMENT OPERATIONS
M&G Asia Retail Mutual Funds Asia Third Party Total Investment Products
Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-(%)
2006 2005
GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24%
Gross Inflows 3,505 2,316 51% 5,673 4,075 39% 40 2 1,900% 9,218 6,393 44%
Less Redemptions (2,514) (1,189) (111%) (4,734) (3,690) (28%) (4) (3) (33%) (7,252) (4,882) (49%)
Net Flows 991 1,127 (12%) 939 385 144% 36 (1) 3,700% 1,966 1,511 30%
Other Movements (6) (74) 92% (34) (6) (467%) - - - (40) (80) 50%
Market And Currency 1,703 1,382 23% 112 459 (76%) 46 23 100% 1,861 1,864 (0%)
Movements
Net Movements in FUM 2,688 2,435 10% 1,017 838 21% 82 22 273% 3,787 3,295 15%
Closing FUM 44,946 36,195 24% 11,413 9,443 21% 840 691 22% 57,199 46,329 23%
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 +/-( %) Q4 2006 Q 3 +/- (%)
2006 (%) 2006 2006
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations
Direct to Customer
Individual Pensions 4 2 100% 2 1 100% 6 3 100% 2 1 100%
Life - With Profit 7 6 17% - - - 7 6 17% 1 1 0%
Bond
Life - Other 10 4 150% - - - 10 4 150% 1 - -
Individual Annuities 205 199 3% - - - 205 199 3% 21 20 5%
Sub-Total 226 211 7% 2 1 100% 228 212 8% 25 22 14%
DWP Rebates - - - - - - - - - - - -
Total 226 211 7% 2 1 100% 228 212 8% 25 22 14%
Business to Business
Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 78 46 70%
Individual Annuities 91 71 28% - - - 91 71 28% 9 7 29%
Bulk Annuities 40 22 82% - - - 40 22 82% 4 2 100%
Total 457 125 266% 45 43 5% 502 168 199% 91 56 63%
Intermediated
Distribution
Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 6 6 0%
Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 2 2 0%
Life - With Profit 60 50 20% - - - 60 50 20% 6 5 20%
Bond
Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 13 13 0%
Life - Other 29 19 53% - 1 - 29 20 45% 3 3 0%
Individual Annuities 368 192 92% - - - 368 192 92% 37 19 95%
Total 614 409 50% 5 7 (29%) 619 416 49% 66 48 38%
Partnerships
Individual Pensions (1) - - - - - (1) - - - - -
Life - With Profit 13 5 160% - - - 13 5 160% 1 1 0%
Bond
Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 2 3 (33%)
Life - Other 201 180 12% 1 1 0% 202 181 12% 21 19 11%
Individual Annuities 171 280 (39%) - - - 171 280 (39%) 17 28 (39%)
Bulk Annuities - (32) - - - - - (32) - - (3) - -
Reinsurance from
Scot Am Insurance
Fund
Bulk Annuities 123 - - - - - 123 - - 12 - -
Total 491 490 0% 1 1 0% 492 491 0% 50 50 0%
Total:
Individual Pensions 23 13 77% 6 6 0% 29 19 53% 8 7 14%
Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 80 48 67%
Life - With Profit 80 61 31% - - - 80 61 31% 8 6 33%
Bond
Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 14 15 (7%)
Life - Other 240 203 18% 1 2 (50%) 241 205 18% 25 22 14%
Individual Annuities 835 742 13% - - - 835 742 13% 84 74 14%
Bulk Annuities 131 22 495% - - - 131 22 495% 13 2 550%
1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32%
DWP Rebates - - - - - - - - - - - -
Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32%
Operations
European Insurance
Operations
Insurance Products 44 33 33% - - - 44 33 33% 4 3 33%
Total European 44 33 33% - - - 44 33 33% 4 3 33%
Insurance Operations
Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 236 179 32%
Unsurance Operations
US Insurance
Operations (8)
Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 17 20 (15%)
Fixed Index 118 144 (18%) - - - 118 144 (18%) 12 14 (14%)
Annuities
Variable Annuities 1,010 922 10% - - - 1,010 922 10% 101 92 10%
Life 2 2 0% 4 4 0% 6 6 0% 4 4 0%
Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 134 131 2%
Guaranteed 133 15 787% - - - 133 15 787% 13 2 550%
Investment Contracts
GIC - Medium Term (6) 105 (106%) - - - (6) 105 (106%) (1) 11 (109%)
Note
Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 147 143 3%
Operations
Asian Insurance
Operations (8)
China 5 5 0% 15 8 88% 20 13 54% 16 9 78%
Hong Kong 131 85 54% 35 26 35% 166 111 50% 48 35 37%
India (6) 6 3 100% 28 22 27% 34 25 36% 29 22 32%
Indonesia 14 6 133% 22 18 22% 36 24 50% 23 19 21%
Japan 27 19 42% 3 2 50% 30 21 43% 6 4 50%
Korea 27 18 50% 53 52 2% 80 70 14% 56 54 4%
Malaysia 1 1 0% 23 18 28% 24 19 26% 23 18 28%
Singapore 87 65 34% 25 18 39% 112 83 35% 34 25 36%
Taiwan 34 11 209% 33 32 3% 67 43 56% 36 33 9%
Other (4) 6 3 100% 11 8 38% 17 11 55% 12 8 50%
Total Asian 338 216 56% 248 204 22% 586 420 40% 282 226 25%
Insurance Operations
Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 665 548 21%
INVESTMENT OPERATIONS
M&G Asian Retail Mutual Asia Third Party Total Investment
Funds Products
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 2006 +/-(%) Q4 2006 Q 3 +/-(%)
2006 (%) 2006
GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17%
Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%)
Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44%
Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%)
Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103%
Movements
Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62%
Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7%
Schedule 5 - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia Total
(1a)
FY 2006 FY 2005 +/- (%) FY FY 2005 +/- FY 2006 FY 2005 +/-(%) FY 2006 FY 2005 +/-
2006 (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance Products 7,192 7,192 0% 5,981 4,958 21% 1,921 1,491 29% 15,094 13,641 11%
Total Investment Products 13,486 7,916 70% - - - 20,408 18,049 13% 33,894 25,965 31%
- Gross Inflows (2)
Group Total 20,678 15,108 37% 5,981 4,958 21% 22,329 19,540 14% 48,988 39,606 24%
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
(11)
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%)
Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 29 17 71%
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180%
Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39%
Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%)
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%)
Life - With Profit Bond 202 159 27% - - - 202 159 27% 202 159 27%
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%)
Partnerships
Individual Pensions 1 - - - - - 1 - - 1 - -
Life - With Profit Bond 24 - - - - - 24 - - 24 - -
Life - Other Bond 117 - - - - - 117 - - 117 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%)
Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142%
Bulk Annuities - 560 - - - - - 560 - - 560 - -
Reinsurance from Scot Am
Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35%
Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 255 176 45%
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0%
Operations
European Insurance
Operations (1a)
Insurance Products 159 200 (21%) - - - 159 200 (21%) 159 200 (21%)
Total European Insurance 159 200 (21%) - - - 159 200 (21%) 159 200 (21%)
Operations
Total UK & Europe 6,991 7,001 (0%) 201 191 5% 7,192 7,192 0% 7,712 7,717 (0%)
Insurance Operations
US Insurance Operations
(1a)
Fixed Annuities 688 777 (11%) - - - 688 777 (11%) 688 777 (11%)
Fixed Index Annuities 554 608 (9%) - - - 554 608 (9%) 554 608 (9%)
Variable Annuities 3,819 2,572 48% - - - 3,819 2,572 48% 3,819 2,572 48%
Life 8 11 (27%) 17 14 21% 25 25 0% 147 134 10%
Sub-Total Retail 5,069 3,968 28% 17 14 21% 5,086 3,982 28% 5,208 4,091 27%
Guaranteed Investment 458 350 31% - - - 458 350 31% 458 350 31%
Contracts
GIC - Medium Term Note 437 626 (30%) - - - 437 626 (30%) 437 627 (30%)
Total US Insurance 5,964 4,944 21% 17 14 21% 5,981 4,958 21% 6,103 5,068 20%
Operations
Asian Insurance
Operations (1a)
China 27 17 59% 36 23 57% 63 40 58% 198 146 36%
Hong Kong 355 285 25% 103 81 27% 458 366 25% 933 732 27%
India (6) 20 4 400% 105 55 91% 125 59 112% 411 207 99%
Indonesia 31 44 (30%) 71 44 61% 102 88 16% 269 195 38%
Japan 68 28 143% 7 3 133% 75 31 142% 97 47 106%
Korea 103 31 232% 208 139 50% 311 170 83% 1,130 613 84%
Malaysia 4 9 (56%) 72 67 7% 76 76 0% 418 391 7%
Singapore 357 293 22% 72 59 22% 429 352 22% 803 728 10%
Taiwan 92 121 (24%) 139 145 (4%) 231 266 (13%) 743 889 (16%)
Other (4) 15 9 67% 36 34 6% 51 43 19% 130 127 2%
Total Asian Insurance 1,072 841 27% 849 650 31% 1,921 1,491 29% 5,132 4,075 26%
Operations
Group Total 14,027 12,786 10% 1,067 855 25% 15,094 13,641 11% 18,947 16,860 12%
Schedule 6 - Actual Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
FY 2006 FY 2005 +/-(%) FY FY 2005 +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10%
Products
Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29%
Products - Gross
Inflows (2)
Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22%
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/-
2006 (%) (%) (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations (11)
Direct to Customer
Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%)
Life - With Profit 23 15 53% 1 1 0% 24 16 50% 29 17 71%
Bond
Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180%
Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13%
Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4%
Business to Business
Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39%
Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25%
Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%)
Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%)
Intermediated
Distribution
Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30%
Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%)
Life - With Profit 202 159 27% - - - 202 159 27% 202 159 27%
Bond
Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%)
Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133%
Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%)
Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%)
Partnerships
Individual Pensions 1 - - - - - 1 - - 1 - -
Life - With Profit 24 - - - - - 24 - - 24 - -
Bond
Life - Other Bond 117 - - - - - 117 - - 117 - -
Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%)
Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142%
Bulk Annuities - 560 - - - - - 560 - - 560 - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%)
Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10%
Total:
Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22%
Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35%
Life - With Profit 249 174 43% 1 1 0% 250 175 43% 255 176 45%
Bond
Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%)
Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%)
Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22%
Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%)
Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2%
DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%)
Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0%
Operations
European Insurance
Operations
Insurance Products 159 201 (21%) - - - 159 201 (21%) 159 201 (21%)
Total European 159 201 (21%) - - - 159 201 (21%) 159 201 (21%)
Insurance Operations
Total UK & Europe 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 7,712 7,718 (0%)
Insurance Operations
US Insurance
Operations (1b)
Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 688 788 (13%)
Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 554 616 (10%)
Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 3,819 2,605 47%
Life 8 11 (27%) 17 14 21% 25 25 0% 147 136 8%
Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 5,208 4,145 26%
Guaranteed Investment 458 355 29% - - - 458 355 29% 458 355 29%
Contracts
GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 437 635 (31%)
Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 6,103 5,135 19%
Operations
Asian Insurance
Operations (1b)
China 27 17 59% 36 23 57% 63 40 58% 198 144 38%
Hong Kong 355 289 23% 103 83 24% 458 372 23% 933 741 26%
India (6) 20 4 400% 105 57 84% 125 61 105% 411 215 91%
Indonesia 31 42 (26%) 71 42 69% 102 84 21% 269 186 45%
Japan 68 30 127% 7 4 75% 75 34 121% 97 50 94%
Korea 103 29 255% 208 132 58% 311 161 93% 1,130 578 96%
Malaysia 4 9 (56%) 72 66 9% 76 75 1% 418 383 9%
Singapore 357 284 26% 72 58 24% 429 342 25% 803 704 14%
Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 743 912 (19%)
Other (4) 15 9 67% 36 33 9% 51 42 21% 130 126 3%
Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 5,132 4,039 27%
Operations
Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 18,947 16,892 12%
Schedule 7
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 4 2005
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
Q4 Q4 2005 +/-(%) Q4 Q4 2005 +/- Q4 Q4 +/-(%) Q4 Q4 +/-(%)
2006 2006 (%) 2006 2005 2006 2005
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
Direct to Customer
Individual Pensions 4 2 100% 2 2 0% 6 4 50% 10 10 0%
Life - With Profit Bond 7 4 75% - - - 7 4 75% 9 5 80%
Life - Other 10 2 400% - - - 10 2 400% 11 6 83%
Individual Annuities 205 178 15% - - - 205 178 15% 205 177 16%
Sub-Total 226 186 22% 2 2 0% 228 188 21% 235 198 19%
DWP Rebates - 10 - - - - - 10 - - 10 -
Total 226 196 15% 2 2 0% 228 198 15% 235 208 13%
Business to Business
Corporate Pensions 326 81 302% 45 54 (17%) 371 135 175% 410 236 74%
Individual Annuities 91 61 49% - - - 91 61 49% 91 61 49%
Bulk Annuities 40 98 (59%) - - - 40 98 (59%) 40 98 (59%)
Total 457 240 90% 45 54 (17%) 502 294 71% 541 395 37%
Intermediated Distribution
Individual Pensions 20 15 33% 4 4 0% 24 19 26% 43 27 59%
Corporate Pensions 12 11 9% 1 1 0% 13 12 8% 17 15 13%
Life - With Profit Bond 60 40 50% - - - 60 40 50% 60 40 50%
Life - Other Bond 125 265 (53%) - - - 125 265 (53%) 125 265 (53%)
Life - Other 29 2 1,350% - 2 - 29 4 625% 39 13 200%
Individual Annuities 368 209 76% - - - 368 209 76% 368 210 75%
Total 614 542 13% 5 7 (29%) 619 549 13% 652 570 14%
Partnerships
Individual Pensions (1) - - - - - (1) - - (1) - -
Life - With Profit Bond 13 - - - - - 13 - - 13 - -
Life - Other Bond 16 - - - - - 16 - - 16 - -
Life - Other 201 185 9% 1 1 0% 202 186 9% 207 194 7%
Individual Annuities 171 149 15% - - - 171 149 15% 171 149 15%
Bulk Annuities - (32) - - - - - (32) - - (32) - -
Reinsurance from Scot Am
Insurance Fund
Bulk Annuities 123 - - - - - 123 - - 123 - -
Total 491 334 47% 1 1 0% 492 335 47% 497 343 45%
Total:
Individual Pensions 23 17 35% 6 6 0% 29 23 26% 52 37 41%
Corporate Pensions 338 92 267% 46 55 (16%) 384 147 161% 427 251 70%
Life - With Profit Bond 80 44 82% - - - 80 44 82% 82 45 82%
Life - Other Bond 141 265 (47%) - - - 141 265 (47%) 141 265 (47%)
Life - Other 240 189 27% 1 3 (67%) 241 192 26% 257 213 21%
Individual Annuities 835 597 40% - - - 835 597 40% 835 597 40%
Bulk Annuities 131 98 34% - - - 131 98 34% 131 98 34%
1,788 1,302 37% 53 64 (17%) 1,841 1,366 35% 1,925 1,506 28%
DWP Rebates - 10 - - - - - 10 - - 10 -
Total UK Insurance 1,788 1,312 36% 53 64 (17%) 1,841 1,376 34% 1,925 1,516 27%
Operations
European Insurance
Operations
Insurance Products 44 47 (6%) - - - 44 47 (6%) 44 47 (6%)
Total European Insurance 44 47 (6%) - - - 44 47 (6%) 44 47 (6%)
Operations
Total UK and Europe 1,832 1,359 35% 53 64 (17%) 1,885 1,423 32% 1,969 1,563 26%
Unsurance Operations
US Insurance Operations (8)
Fixed Annuities 171 149 15% - - - 171 149 15% 171 149 15%
Fixed Index Annuities 118 155 (24%) - - - 118 155 (24%) 118 155 (24%)
Variable Annuities 1,010 735 37% - - - 1,010 735 37% 1,010 735 37%
Life 2 3 (33%) 4 4 0% 6 7 (14%) 43 37 16%
Sub-Total Retail 1,301 1,042 25% 4 4 0% 1,305 1,046 25% 1,342 1,076 25%
Guaranteed Investment 133 49 171% - - - 133 49 171% 133 49 171%
Contracts
GIC - Medium Term Note (6) 9 (167%) - - - (6) 9 (167%) (6) 9 (167%)
Total US Insurance 1,428 1,100 30% 4 4 0% 1,432 1,104 30% 1,469 1,134 30%
Operations
Asian Insurance Operations
(8)
China 5 8 (38%) 15 8 88% 20 16 25% 60 49 22%
Hong Kong 131 88 49% 35 28 25% 166 116 43% 324 257 26%
India (6) 6 1 500% 28 16 75% 34 17 100% 148 59 151%
Indonesia 14 6 133% 22 13 69% 36 19 89% 87 41 112%
Japan 27 11 145% 3 - - 30 11 173% 42 13 223%
Korea 27 18 50% 53 41 29% 80 59 36% 400 173 131%
Malaysia 1 1 0% 23 20 15% 24 21 14% 136 123 11%
Singapore 87 90 (3%) 25 19 32% 112 109 3% 237 235 1%
Taiwan 34 29 17% 33 40 (18%) 67 69 (3%) 143 245 (42%)
Other (4) 6 2 200% 11 9 22% 17 11 55% 31 32 (3%)
Total Asian Insurance 338 254 33% 248 194 28% 586 448 31% 1,608 1,227 31%
Operations
Group Total 3,598 2,713 33% 305 262 16% 3,903 2,975 31% 5,046 3,924 29%
INVESTMENT OPERATIONS
M&G Asia Retail Mutual Asia Third Party Total Investment
Funds Products
Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-
2006 2005 (%)
GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24%
Gross Inflows 3,505 2,316 51% 5,673 4,075 39% 40 2 1,900% 9,218 6,393 44%
Less Redemptions (2,514) (1,189) (111%) (4,734) (3,690) (28%) (4) (3) (33%) (7,252) (4,882) (49%)
Net Flows 991 1,127 (12%) 939 385 144% 36 (1) 3,700% 1,966 1,511 30%
Other Movements (6) (74) 92% (34) (6) (467%) - - - (40) (80) 50%
Market And Currency 1,703 1,382 23% 112 459 (76%) 46 23 100% 1,861 1,864 (0%)
Movements
Net Movements in FUM 2,688 2,435 10% 1,017 838 21% 82 22 273% 3,787 3,295 15%
Closing FUM 44,946 36,195 24% 11,413 9,443 21% 840 691 22% 57,199 46,329 23%
Schedule 8
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006
INSURANCE OPERATIONS
Single Regular Total PVNBP (3)
Q4 2006 Q 3 +/- (%) Q4 Q 3 2006 +/- Q4 Q 3 +/- Q4 Q 3 +/- (%)
2006 2006 (%) 2006 2006 (%) 2006 2006
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations
Direct to Customer
Individual Pensions 4 2 100% 2 1 100% 6 3 100% 10 8 25%
Life - With Profit Bond 7 6 17% - - - 7 6 17% 9 9 0%
Life - Other 10 4 150% - - - 10 4 150% 11 8 38%
Individual Annuities 205 199 3% - - - 205 199 3% 205 199 3%
Sub-Total 226 211 7% 2 1 100% 228 212 8% 235 224 5%
DWP Rebates - - - - - - - - - - - -
Total 226 211 7% 2 1 100% 228 212 8% 235 224 5%
Business to Business
Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 410 209 96%
Individual Annuities 91 71 28% - - - 91 71 28% 91 71 28%
Bulk Annuities 40 22 82% - - - 40 22 82% 40 22 82%
Total 457 125 266% 45 43 5% 502 168 199% 541 302 79%
Intermediated
Distribution
Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 43 45 (4%)
Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 17 23 (26%)
Life - With Profit Bond 60 50 20% - - - 60 50 20% 60 50 20%
Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 125 128 (2%)
Life - Other 29 19 53% - 1 - 29 20 45% 39 27 44%
Individual Annuities 368 192 92% - - - 368 192 92% 368 192 92%
Total 614 409 50% 5 7 (29%) 619 416 49% 652 465 40%
Partnerships
Individual Pensions (1) - - - - - (1) - - (1) 1 (200%)
Life - With Profit Bond 13 5 160% - - - 13 5 160% 13 5 160%
Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 16 25 (36%)
Life - Other 201 180 12% 1 1 0% 202 181 12% 207 189 10%
Individual Annuities 171 280 (39%) - - - 171 280 (39%) 171 280 (39%)
Bulk Annuities - (32) - - - - - (32) - - (32) - -
Reinsurance from Scot
Am Insurance Fund
Bulk Annuities 123 - - - - - 123 - - 123 - -
Total 491 490 0% 1 1 0% 492 491 0% 497 500 (1%)
Total:
Individual Pensions 23 13 77% 6 6 0% 29 19 53% 52 54 (4%)
Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 427 232 84%
Life - With Profit Bond 80 61 31% - - - 80 61 31% 82 64 28%
Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 141 153 (8%)
Life - Other 240 203 18% 1 2 (50%) 241 205 18% 257 224 15%
Individual Annuities 835 742 13% - - - 835 742 13% 835 742 13%
Bulk Annuities 131 22 495% - - - 131 22 495% 131 22 495%
1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29%
DWP Rebates - - - - - - - - - - - -
Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29%
Operations
European Insurance
Operations
Insurance Products 44 33 33% - - - 44 33 33% 44 33 33%
Total European 44 33 33% - - - 44 33 33% 44 33 33%
Insurance Operations
Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 1,969 1,524 29%
Unsurance Operations
US Insurance Operations
(8)
Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 171 204 (16%)
Fixed Index Annuities 118 144 (18%) - - - 118 144 (18%) 118 144 (18%)
Variable Annuities 1,010 922 10% - - - 1,010 922 10% 1,010 922 10%
Life 2 2 0% 4 4 0% 6 6 0% 43 35 23%
Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 1,342 1,305 3%
Guaranteed Investment 133 15 787% - - - 133 15 787% 133 15 787%
Contracts
GIC - Medium Term Note (6) 105 (106%) - - - (6) 105 (106%) (6) 105 (106%)
Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 1,469 1,425 3%
Operations
Asian Insurance
Operations (8)
China 5 5 0% 15 8 88% 20 13 54% 60 50 20%
Hong Kong 131 85 54% 35 26 35% 166 111 50% 324 248 31%
India (6) 6 3 100% 28 22 27% 34 25 36% 148 86 72%
Indonesia 14 6 133% 22 18 22% 36 24 50% 87 66 32%
Japan 27 19 42% 3 2 50% 30 21 43% 42 26 62%
Korea 27 18 50% 53 52 2% 80 70 14% 400 238 68%
Malaysia 1 1 0% 23 18 28% 24 19 26% 136 97 40%
Singapore 87 65 34% 25 18 39% 112 83 35% 237 176 35%
Taiwan 34 11 209% 33 32 3% 67 43 56% 143 180 (21%)
Other (4) 6 3 100% 11 8 38% 17 11 55% 31 32 (3%)
Total Asian Insurance 338 216 56% 248 204 22% 586 420 40% 1,608 1,199 34%
Operations
Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 5,046 4,148 22%
INVESTMENT OPERATIONS
M&G Asia Retail Mutual Asia Third Party Total Investment Products
Funds
Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 +/- Q4 Q 3 +/-(%) Q4 2006 Q 3 +/-(%)
2006 2006 (%) 2006 2006 2006
GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17%
Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%)
Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44%
Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%)
Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103%
Movements
Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62%
Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7%
PRUDENTIAL PLC - NEW BUSINESS SCHEDULES
BASIS OF PREPARATION
The new business schedules are provided as an indicative volume measure of
transactions undertaken in the reporting period that have the potential to
generate profits for shareholders. The amounts shown are not, and not intended
to be, reflective of premium income recorded in the IFRS income statement.
The schedules include a bulk annuity transaction with the Scottish Amicable
Insurance Fund (SAIF). The transaction reflects the arrangement entered into in
June 2006 for the reinsurance of non-profit immediate pension annuity
liabilities of SAIF to Prudential Retirement Income Limited (PRIL), a
shareholder owned subsidiary of the Group. SAIF is a closed ring-fenced sub-fund
of the PAC long-term fund established by a Court approved Scheme of Arrangement
in October 1997, which is solely for the benefit of SAIF policyholders.
Shareholders have no interest in the profits of this fund, although they are
entitled to investment manangement fees on this business. The inclusion of the
transaction between SAIF and PRIL as new business reflects the transfer from
SAIF policyholders to Prudential shareholders' funds of longevity risk, the
requirement to set aside supporting capital, and entitlement to surpluses
arising on this block of business arising from the reinsurance arrangement.
Adjustments of GBP3m have been made to the SAIF reinsurance premium previously
reported at GBP59m at Q2 2006, due to a revaluation of the assets.
The format of the schedules is consistent with the distinction between insurance
and investment products as applied for previous financial reporting periods.
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 IFRS 4 "Insurance Contracts" as not containing
significant insurance risk. These products are described as investment contracts
or other financial instruments under IFRS. Contracts included in this category
are primarily certain unit-linked and similar contracts written in UK Insurance
Operations, and Guaranteed Investment Contracts and similar funding agreements
written in US operations.
New business premiums for regular premium products are shown on an annualised
basis. Department of Work and Pensions pension business is classified as single
recurrent business. Internal vesting business is classified as new business
where the contracts include an open market option.
UK and Asian investment products referred to in the tables for funds under
management above are unit trusts, mutual funds and similar types of retail fund
management arrangements. These are unrelated to insurance products that are
classified as investment contract under IFRS 4, as described in the preceding
paragraph, although similar IFRS recognition and measurement principles apply to
the acquisition costs and fees attaching to this type of business.
New Department of Work and Pensions (DWP) rebate business for SAIF is excluded
from the new business schedules. This is because, as noted above, SAIF is solely
for the benefit of SAIF policyholders.
Notes to Schedules 1A - 8
(1a) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson is
1.84.
(1b) Insurance and investment new business for overseas operations has been
calculated using average exchange rates. The applicable rate for Jackson is
1.84 (2005: 1.82).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions plus 10
per cent single new business contributions, are subject to roundings. PVNBPs are
calculated as equalling single premiums plus the present value of expected
premiums of new regular premium business. In determining the present value,
allowance is made for lapses and other assumptions applied in determining the
EEV new business profit.
(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 per cent interest in
the India life operation. Mandatory Provident Fund (MPF) product sales in Hong
Kong are included at Prudential's 36 per cent interest in Hong Kong MPF
operation.
(7) Balance sheet figures have been calculated at the closing exchange rate. The
2005 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) In August 2005, Prudential's joint venture partner in the Prudential ICICI
Asset Management Company purchased an additional 6 per cent share ownership
reducing Prudential's stake to 49 per cent. As a result, Prudential no longer
consolidates the company as a subsidiary.
(10) GBP289m 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.
(11) The 2005 UK PVNBP result as been adjusted by GBP125m from GBP7,593m to
GBP7,718m due to a change in methodology for certain classes of business
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 29 January, 2007
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Jon Bunn
Jon Bunn
Director of Public Relations