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 October, 2004
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: 3rd Quarter Results
Embargo: 07.01 hrs Tuesday 19 October 2004
PRUDENTIAL PLC THIRD QUARTER 2004 NEW BUSINESS RESULTS
Strong performances across all businesses*
- Total Group Insurance sales of GBP8.2 billion for the first nine months of
this year, up 24 per cent.
- Total Group Insurance APE sales of GBP1.3 billion for the first nine months
of this year, up 16 per cent.
- Prudential UK and Europe APE sales of GBP521 million in the first nine
months of this year, up 19 per cent.
- Jackson National Life's (JNL) APE sales of GBP355 million in the first nine
months of this year, up 18 per cent.
- APE sales at Prudential Corporation Asia of GBP394 million in the first nine
months of this year, up 12 per cent with third quarter sales up 20 per cent
on the second quarter.
Prudential's Group Chief Executive, Jonathan Bloomer, commented: "All our
businesses continue to show a healthy momentum, building on the strong
performance we delivered in the first half of the year.
With its broad product range and diversified distribution channels, the UK
insurance business is building on its strengths and is well positioned to win
customers as the market concentrates towards financially strong companies.
Jackson National Life's 18 per cent increase in APE sales demonstrates that it
has the products and distribution channels to succeed in the US market.
Prudential Corporation Asia's sales momentum continues its upward trend with
sales in the third quarter up 20 per cent on the second quarter and increasing
month by month.
All our businesses are well positioned to take advantage of the clear
opportunities in their respective markets."
* The narrative is on constant exchange rates throughout. See Notes to Editors
for further details.
UK and Europe Insurance Operations
Prudential UK and Europe has continued to deliver strong results. Sales for the
first nine months of 2004 of GBP521 million on an annual premium equivalent
(APE) basis were up 19 per cent on the corresponding period in 2003. This
principally reflects strong sales of corporate pensions (up 13 per cent),
individual annuities (up 20 per cent) and unit-linked and international
with-profits bonds (up 108 per cent).
APE sales in the third quarter of 2004 of GBP161 million were up 29 per cent on
the third quarter of 2003.
Intermediaries
APE sales for the nine month period through the intermediaries channel were
GBP207 million, 20 per cent higher than the equivalent period in 2003. This
reflects the sustained growth in sales of unit-linked and international
with-profits bonds where APE sales of GBP52 million were up 108 per cent. APE
sales of individual annuities were 42 per cent higher reflecting Prudential's
position as one of the market leaders in this area.
Partnerships
APE sales through our partnerships channel were GBP67 million, up 168 per cent
on the same period last year. Sales during the third quarter of GBP29 million
were up 222 per cent on the third quarter of 2003. This result reflects the
strong growth in sales of credit life protection products through our
agreements with Lloyds TSB and Alliance & Leicester, and annuities through our
partnership with Zurich. APE sales of credit life protection products during
the third quarter of 2004 were up 26 per cent on the second quarter. APE
individual annuity sales in the third quarter of 2004 increased 33 per cent on
the second quarter. Annuity sales from the partnership agreement with Pearl,
which was launched in September 2004, will be reflected in the fourth
quarter's results.
Business to business
APE sales through the business to business channel for the nine month period
were GBP155 mllion, 6 per cent higher than the same period last year. APE sales
of corporate pensions were GBP114 million, 4 per cent higher than the
corresponding period of 2003. APE sales of bulk annuities of GBP25 million
increased by 32 per cent over the same period last year and comprised 51 scheme
wins.
Direct to customer
APE sales through the direct to customer channel for the nine month period were
down 9 per cent to GBP83 million, but sales during the third quarter of GBP18
million were in line with the third quarter of 2003. The focus of this channel
has been primarily on selling annuities to vesting individual pension customers,
an increasing proportion of which are now being transacted through IFAs. PruFund
and PruHealth campaigns have recently been launched into this channel.
Product launches
Prudential UK recently launched PruFund, a more transparent smoothed investment
product. Illustrations were available from the end of August and the product
opened for new business in mid-September. Early signs of interest have been
encouraging although it is too early to predict how sales will develop. In
October, we launched PruHealth, an innovative UK health insurance product
linking health and fitness to the cost of premiums. The product has been
developed through our joint venture with Discovery of South Africa.
Persistency
In the interim results we reported a GBP15 million adverse persistency
experience variance which arose from higher than expected surrenders of personal
pension policies previously sold through the now closed direct sales force and
also from Prudence Bond. Although Prudential is taking active steps to manage
and improve the conservation of the in-force book, it is still seeing adverse
experience on these policies and continues to monitor the position. In
accordance with ABI guidelines for achieved profits accounting, the Board will
review the success of the action taken and consider actual experience in
setting assumptions for future experience at the year end.
Summary
In the UK, we believe we will be a clear beneficiary as the market concentrates
towards those financially strong companies with a broad product range and
diversified distribution strategy.
M&G
M&G recorded gross retail fund inflows of GBP1.2 billion in the first nine
months of 2004, an increase of 36 per cent on the same period last year. Net
retail fund inflows were GBP154 million. In the UK, M&G has continued to
maintain solid fund inflows as a result of its strong retail brand, good fund
performance and diversified product offering in fixed income, equities and, most
recently, property. The success of M&G's focused expansion into European markets
has been reflected in good sales in this area during the year.
Gross institutional fund inflows were GBP2.2 billion in the first nine months of
the year, 5 per cent ahead of 2003. Net fund inflows were GBP463 million, a
significant turnaround from the end of the first quarter when a single large
redemption by a segregated fixed income client contributed to net outflows of
GBP879 million. During the third quarter, M&G continued to progress its
successful Collateralised Debt Obligation (CDO) programme with the launch of
Ocelot, its first synthetic CDO. This reflects M&G's broadening expertise in
this market and contributed GBP199 million to sales.
Jackson National Life
Total APE sales for the first nine months of GBP355 million were up 18 per cent
on the same period in 2003. Total retail sales for the nine months of GBP2.6
billion were up 6 per cent on 2003, as a result of strong variable and
equity-linked indexed annuity sales, partially offset by lower fixed annuity
sales. Retail sales in the third quarter were GBP902 million up 22 per cent on
the same period in 2003, the result of increased sales of fixed and
equity-linked indexed annuities.
Variable annuities
Variable annuity sales of GBP1.5 billion were up 14 per cent on the first nine
months of last year, reflecting consumers' confidence in the equity markets and
JNL's strong product offering. JNL improved its market position to fourth at the
end of the second quarter (in terms of net flow). Among the top 25 providers in
the first six months of the year JNL's unbundled annuity product "Perspective
II" was the best selling product (in terms of net flow) and its variable annuity
net assets grew the fastest (Source VARDS). The rate of take up of the fixed
account option remained low, with 28 per cent of the variable annuity premium
going into fixed accounts compared with 53 per cent in 2003. Jackson continues
to develop its product range: in October, it added several new investment and
benefit options to its unbundled Perspective II product, which customers can
actively select and pay for.
Fixed annuities
Fixed annuity sales of GBP848 million were down 17 per cent on the first nine
months of last year, due to the continued low interest rate environment in the
US and the resulting lower crediting rates that limit demand for this product.
However, recent interest rate moves have generated more interest in fixed and
equity-linked indexed annuity products. In the third quarter, fixed annuity
sales were up 15 per cent on the previous quarter and up 55 per cent on third
quarter 2003.
Equity-linked indexed annuities
Equity-linked indexed annuity sales for the first nine months of GBP293 million
were up 80 per cent on last year, reflecting the attractiveness of the products
and customers' increasing preference for fixed products with the potential for
higher returns linked to equity index performance.
Life
Regular premium life sales of GBP19 million for the first nine months were up 90
per cent on last year. This is the result of JNL's increased focus on its life
business, including the introduction of several new products, such as variable
universal life and the creation last year of a dedicated distribution team to
focus on building relationships with life insurance agents.
Curian Capital
Curian Capital continues to build a strong position in the managed accounts
market, with total assets under management at the end of the period of GBP432
million up from GBP147 million at the year end.
Institutional
Institutional sales for the first nine months of GBP730 million were up 66 per
cent on 2003. As we reported in our half year results JNL took advantage of
several attractive opportunities in the first half of 2004 but intends to focus
on retail sales for the rest of the year. Consistent with this, institutional
sales in the third quarter were GBP129 million, down 55 per cent on the previous
quarter. JNL remains on track to deliver institutional sales of around GBP225
million for the second half of the year.
Summary
JNL is well positioned to maintain its strong growth and as reported in our half
year results we expect it to return $120 million cash to the Group this year and
in future years.
Prudential Corporation Asia
Prudential's Asian operations showed strong momentum during the third quarter,
with sales improving month on month. Overall APE sales of GBP145 million
represented growth of 20 per cent over the second quarter. APE sales of GBP394
million for the nine months are up 12 per cent on last year, up 21 per cent
excluding discontinued sales in Japan.
Single premium products continue to be popular and while our primary focus
remains on more profitable regular premium business, the proportion of single
premium sales in the APE mix has increased to 12 per cent for the first nine
months compared with 8 per cent for the full year 2003.
Following slower starts to 2004, both Malaysia and Taiwan have seen strong
growth during the third quarter relative to the second, with increases of 36 per
cent and 45 per cent respectively, driven principally by planned sales
incentives and the successful launch of an innovative unit-linked product in
Taiwan. Singapore recorded its strongest quarter of 2004 so far with a 20 per
cent increase over the second quarter. Single premium unit-linked sales were
particularly strong.
In Hong Kong, APE sales growth remains strong, increasing by 16 per cent for the
first nine months of the year. However, the third quarter was slightly lower
than the second due to the market's current preference for short-term
traditional endowment policies and our strategy to manage our exposure to these
less profitable products. Nevertheless, sales of single premium products,
principally through bancassurance, grew 36 per cent for the first nine months,
compared with the same period last year.
The life operation in Korea continued to show very strong growth in the first
nine months of the year. However, this growth rate eased slightly in the third
quarter with increasing volumes from the financial consultant and general agent
channels offset by slower bancassurance sales as one of our partners recovers
from the effects of industrial action. Korea also experienced increased
competition in the direct channel.
In India, where we have a joint venture with ICICI Bank, growth in APE sales
continues to be strong, increasing 140 per cent on 2003 for the first nine
months. The growth rate did slow in the third quarter with a 17 per cent
increase on the second quarter. Recently the industry has seen a slow down in
new business growth, in part due to the introduction of the Senior Citizen
Savings Scheme announced in the budget having a temporary impact.
Sales in China for the first nine months of the year are up 71 per cent compared
with last year. We have been operating in Guangzhou for four years, and have a
14 per cent share of new business sales through the agency channel on an APE
basis. We launched in Beijing in August 2003, and in Suzhou this September.
Sales in Indonesia in the third quarter were 33 per cent ahead of the previous
quarter. Our business in Indonesia recovered from the effects of a court imposed
administration period resulting from attempts to put the company into bankruptcy
despite the business clearly being solvent. The bankruptcy decision has been
overturned by the Indonesian Supreme Court. A bill to amend the bankruptcy law
in Indonesia to prevent similar attempts has now been passed by the parliament
and is awaiting Presidential notification.
In the third quarter of 2003, we implemented our new strategy in Japan to focus
on more profitable product lines such as variable universal life and to improve
our distribution. New business volumes this year have been slow, but we are
starting to see some progress, which we continue to monitor. The third quarter
2004 was up 38 per cent compared with the second quarter.
Growth in Prudential's "Other" Asian operations slowed over the first nine
months, mainly due to the impact of the Vietnamese market, which has seen a
significant slowdown in growth rate after four years of strong sales following
liberalisation of the market.
The Asian retail investment management business had GBP6.8 billion of funds
under management at 30 September, with net inflows of GBP0.3 billion for the
first nine months of the year. The net inflows were depressed by GBP767 million
of net outflows in Taiwan in the third quarter following market concern about
the liquidity of bond funds across the industry. The balance of the retail
investment operations of Prudential Corporation Asia continue to record strong
net inflows, with particularly strong growth in Korea and Japan.
Summary
The sales momentum seen in the third quarter positions our Asian business well
for a strong fourth quarter, in line with market expectations. We remain
confident that the profitable growth being delivered in Asia is sustainable over
the long-term and the business remains on track to begin remitting surplus
capital to the group in 2006.
Prudential is hosting an analyst and investor visit to Kuala Lumpur and Ho Chi
Minh City in the first week of November, when we will talk in more detail about
our strategy, operations, products and distribution channels across the region.
Egg
Egg has separately announced its third quarter results today.
-ENDS-
Enquiries to:
Media Investors/Analysts
Geraldine Davies 020 7548 3911 Rebecca Burrows 020 7548 3537
Clare Staley 020 7548 3719 Marina Lee-Steere 020 7548 3511
Notes to Editors:
1. There will be a conference call today for wire services hosted by Jonathan
Bloomer, Group Chief Executive, and Philip Broadley, Group Finance Director
at 7.30am. Dial-in telephone number: +44 (0) 20 8288 4530. Callers to quote
"Prudential" for access to the call.
2. Sales for overseas operations have been reported using average exchange rates
as shown in the attached schedules. Commentary is given on the results on a
constant exchange rate basis. The two bases are compared in the table below.
Annual Premium Equivalent Sales
Actual exchange rates Constant exchange rates
2004 YTD 2003 YTD +/- (%) 2004 YTD 2003 YTD +/- (%)
GBPm GBPm GBPm GBPm
UK 521 438 19% 521 438 19%
and Europe
US 355 342 4% 355 302 18%
Asia 394 391 1% 394 353 12%
Total 1,270 1,170 9% 1,270 1,093 16%
Gross Inflows
Actual exchange rates Constant exchange rates
2004 YTD 2003 YTD +/- (%) 2004 YTD 2003 YTD +/- (%)
GBPm GBPm GBPm GBPm
M&G 3,451 3,024 14% 3,451 3,024 14%
Asia 13,776 13,309 4% 13,776 12,185 13%
Total 17,227 16,333 5% 17,227 15,209 13%
Total Insurance and Investment New Business
Actual exchange rates Constant exchange rates
2004 YTD 2003 YTD +/- (%) 2004 YTD 2003 YTD +/- (%)
GBPm GBPm GBPm GBPm
Insurance 8,150 7,005 16% 8,150 6,553 24%
Investment 17,227 16,333 5% 17,227 15,209 13%
Total 25,377 23,338 9% 25,377 21,762 17%
3. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
4. Certain investment mandates previously reported as UK corporate pensions are
now reported as M&G institutional investment flows. The impact is to reduce
UK corporate pensions APE sales by GBP32 million for the full-year 2003
(GBP26 million for the first nine months of 2003).
5. US institutional products (previously referred to as "stable value products")
consist of guaranteed investment contracts (GICs), funding agreements and
medium-term notes backed by funding agreements.
*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 GBP170 billion in
assets under management, as at 30 June 2004. 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 1 - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1) Asia (1) Total
2004 2003 +/- 2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance Products 3,955 3,026 31% 3,379 2,934 15% 816 593 38% 8,150 6,553 24%
Total Investment Products - 3,451 3,024 14% - - - 13,776 12,185 13% 17,227 15,209 13%
Gross Inflows (2)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 7,406 6,050 22% 3,379 2,934 15% 14,592 12,778 14% 25,377 21,762 17%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2004 2003 +/- 2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations : (4)
Direct to Customer:
Individual Pensions 7 7 - 6 7 (14%) 13 14 (7%) 7 8 (13%)
Life - With Profit Bond 9 10 (10%) 1 1 - 10 11 (9%) 2 2 -
Life - Other - - - 1 1 - 1 1 - 1 1 -
Individual Annuities 464 519 (11%) - - - 464 519 (11%) 46 52 (12%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 480 536 (10%) 8 9 (11%) 488 545 (10%) 56 63 (11%)
DWP Rebates 272 280 (3%) - - - 272 280 (3%) 27 28 (4%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 752 816 (8%) 8 9 (11%) 760 825 (8%) 83 91 (9%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Business to Business:
Corporate Pensions 108 129 (16%) 103 97 6% 211 226 (7%) 114 110 4%
Individual Annuities 162 167 (3%) - - - 162 167 (3%) 16 17 (6%)
Bulk Annuities 253 189 34% - - - 253 189 34% 25 19 32%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 523 485 8% 103 97 6% 626 582 8% 155 146 6%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Intermediated Distribution :
Individual Pensions 45 42 7% 16 19 (16%) 61 61 - 21 23 (9%)
Corporate Pensions 127 38 234% 7 5 40% 134 43 212% 20 9 122%
Life - With Profit Bond 188 290 (35%) - - - 188 290 (35%) 19 29 (34%)
Life - Other Bond 520 251 107% - - - 520 251 107% 52 25 108%
Life - Other - 1 - 3 20 (85%) 3 21 (86%) 3 20 (85%)
Individual Annuities 854 597 43% - - - 854 597 43% 85 60 42%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 1,734 1,219 42% 26 44 (41%) 1,760 1,263 39% 199 166 20%
DWP Rebates 72 60 20% - - - 72 60 20% 7 6 17%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 1,806 1,279 41% 26 44 (41%) 1,832 1,323 38% 207 172 20%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Partnerships :
Life - With Profit Bond 3 45 (93%) - - - 3 45 (93%) 0 5 (100%)
Life - Other 573 179 220% 1 - - 574 179 221% 58 18 222%
Individual Annuities 88 28 214% - - - 88 28 214% 9 3 200%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 664 252 163% 1 - - 665 252 164% 67 25 168%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total :
Individual Pensions 52 49 6% 22 26 (15%) 74 75 (1%) 27 31 (13%)
Corporate Pensions 235 167 41% 110 102 8% 345 269 28% 134 119 13%
Life - With Profit Bond 200 345 (42%) 1 1 0% 201 346 (42%) 21 36 (42%)
Life - Other Bond 520 251 107% - - - 520 251 107% 52 25 108%
Life - Other 573 180 218% 5 21 (76%) 578 201 188% 62 39 59%
Individual Annuities 1,568 1,311 20% - - - 1,568 1,311 20% 157 131 20%
Bulk Annuities 253 189 34% - - - 253 189 34% 25 19 32%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 3,401 2,492 36% 138 150 (8%) 3,539 2,641 34% 478 399 20%
DWP Rebates 344 340 1% - - - 344 340 1% 34 34 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK Insurance Operations 3,745 2,832 32% 138 150 (8%) 3,883 2,981 30% 513 433 18%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
European Insurance
Operations: (1)
Insurance Products 71 45 58% 1 - - 72 45 60% 8 5 60%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total European Insurance 71 45 58% 1 - - 72 45 60% 8 5 60%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK & European Insurance 3,816 2,877 33% 139 150 (7%) 3,955 3,026 31% 521 438 19%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
US Insurance Operations : (1)
Fixed Annuities 848 1,020 (17%) - - - 848 1,020 (17%) 85 102 (17%)
Equity-Linked Indexed 293 163 80% - - - 293 163 80% 29 16 81%
Annuities
Variable Annuities 1,489 1,301 14% - - - 1,489 1,301 14% 149 130 15%
Life - - - 19 10 90% 19 10 90% 19 10 90%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total Retail 2,630 2,484 6% 19 10 90% 2,649 2,494 6% 282 258 9%
Guaranteed Investment 106 169 (37%) - - - 106 169 (37%) 11 17 (35%)
Contracts
GIC - Medium Term Note 624 271 130% - - - 624 271 130% 62 27 130%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total US Insurance Operations 3,360 2,924 15% 19 10 90% 3,379 2,934 15% 355 302 18%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Asian Insurance Operations :(1)
China 6 4 50% 11 7 57% 17 11 55% 12 7 71%
Hong Kong 162 119 36% 55 49 12% 217 168 29% 71 61 16%
India (@26%) 4 3 33% 24 10 140% 28 13 115% 24 10 140%
Indonesia 27 14 93% 20 20 - 47 34 38% 23 21 10%
Japan 12 7 71% 5 32 (84%) 17 39 (56%) 6 33 (82%)
Korea 30 4 650% 40 15 167% 70 19 268% 43 15 187%
Malaysia 5 8 (38%) 39 38 3% 44 46 (4%) 40 39 3%
Singapore 153 87 76% 31 36 (14%) 184 123 50% 46 45 2%
Taiwan 64 17 276% 95 85 12% 159 102 56% 101 87 16%
Other (5) 6 4 50% 27 34 (21%) 33 38 (13%) 28 34 (18%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Asian Insurance 469 267 76% 347 326 6% 816 593 38% 394 353 12%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 7,645 6,068 26% 505 486 4% 8,150 6,553 24% 1,270 1,093 16%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Schedule 1b
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total
2004 2003 +/- 2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Total Insurance Products 3,955 3,028 31% 3,379 3,318 2% 816 659 24% 8,150 7,005 16%
Total Investment 3,451 3,024 14% - - - 13,776 13,309 4% 17,227 16,333 5%
Products-Gross Inflows (2)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 7,406 6,052 22% 3,379 3,318 2% 14,592 13,968 4% 25,377 23,338 9%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2004 2003 +/- 2004 2003 +/- 2004 2003 +/- 2004 2003 +/-
Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%) Q3 YTD Q3 YTD (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations : (4)
Direct to Customer:
Individual Pensions 7 7 - 6 7 (14%) 13 14 (7%) 7 8 (13%)
Life - With Profit Bond 9 10 (10%) 1 1 - 10 11 (9%) 2 2 -
Life - Other - - - 1 1 - 1 1 - 1 1 -
Individual Annuities 464 519 (11%) - - - 464 519 (11%) 46 52 (12%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 480 536 (10%) 8 9 (11%) 488 545 (10%) 56 63 (11%)
DWP Rebates 272 280 (3%) - - - 272 280 (3%) 27 28 (4%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 752 816 (8%) 8 9 (11%) 760 825 (8%) 83 91 (9%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Business to Business:
Corporate Pensions 108 129 (16%) 103 97 6% 211 226 (7%) 114 110 4%
Individual Annuities 162 167 (3%) - - - 162 167 (3%) 16 17 (6%)
Bulk Annuities 253 189 34% - - - 253 189 34% 25 19 32%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 523 485 8% 103 97 6% 626 582 8% 155 146 6%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Intermediated Distribution :
Individual Pensions 45 42 7% 16 19 (16%) 61 61 0% 21 23 (9%)
Corporate Pensions 127 38 234% 7 5 40% 134 43 212% 20 9 122%
Life - With Profit Bond 188 290 (35%) - - - 188 290 (35%) 19 29 (34%)
Life - Other Bond 520 251 107% - - - 520 251 107% 52 25 108%
Life - Other - 1 - 3 20 (85%) 3 21 (86%) 3 20 (85%)
Individual Annuities 854 597 43% - - - 854 597 43% 85 60 42%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 1,734 1,219 42% 26 44 (41%) 1,760 1,263 39% 199 166 20%
DWP Rebates 72 60 20% - - - 72 60 20% 7 6 17%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 1,806 1,279 41% 26 44 (41%) 1,832 1,323 38% 207 172 20%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Partnerships :
Life - With Profit Bond 3 45 (93%) - - - 3 45 (93%) 0 5 (100%)
Life - Other 573 179 220% 1 - - 574 179 221% 58 18 222%
Individual Annuities 88 28 214% - - - 88 28 214% 9 3 200%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 664 252 163% 1 - - 665 252 164% 67 25 168%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total :
Individual Pensions 52 49 6% 22 26 (15%) 74 75 (1%) 27 31 (13%)
Corporate Pensions 235 167 41% 110 102 8% 345 269 28% 134 119 13%
Life - With Profit Bond 200 345 (42%) 1 1 0% 201 346 (42%) 21 36 (42%)
Life - Other Bond 520 251 107% - - - 520 251 107% 52 25 108%
Life - Other 573 180 218% 5 21 (76%) 578 201 188% 62 39 59%
Individual Annuities 1,568 1,311 20% - - - 1,568 1,311 20% 157 131 20%
Bulk Annuities 253 189 34% - - - 253 189 34% 25 19 32%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 3,401 2,492 36% 138 150 (8%) 3,539 2,642 34% 478 399 20%
DWP Rebates 344 340 1% - - - 344 340 1% 34 34 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK Insurance Operations 3,745 2,832 32% 138 150 (8%) 3,883 2,982 30% 513 433 18%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
European Insurance
Operations: (1)
Insurance Products 71 46 54% 1 - - 72 46 57% 8 5 60%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total European Insurance 71 46 54% 1 - - 72 46 57% 8 5 60%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK & European Insurance 3,816 2,878 33% 139 150 (7%) 3,955 3,028 31% 521 438 19%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
US Insurance Operations : (1b)
Fixed Annuities 848 1,153 (26%) - - - 848 1,153 (26%) 85 115 (26%)
Equity-Linked Indexed 293 184 59% - - - 293 184 59% 29 18 61%
Annuities
Variable Annuities 1,489 1,471 1% - - - 1,489 1,471 1% 149 147 1%
Life - - - 19 11 73% 19 11 73% 19 11 73%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total Retail 2,630 2,808 (6%) 19 11 73% 2,649 2,819 (6%) 282 292 (3%)
Guaranteed Investment 106 192 (45%) - - - 106 192 (45%) 11 19 (42%)
Contracts
GIC - Medium Term Note 624 307 103% - - - 624 307 103% 62 31 100%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total US Insurance Operations 3,360 3,307 2% 19 11 73% 3,379 3,318 2% 355 342 4%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Asian Insurance Operations :(1b)
China 6 5 20% 11 8 38% 17 13 31% 12 9 33%
Hong Kong 162 134 21% 55 55 - 217 189 15% 71 68 4%
India (@26%) 4 3 33% 24 11 118% 28 14 100% 24 11 118%
Indonesia 27 16 69% 20 23 (13%) 47 39 21% 23 25 (8%)
Japan 12 7 71% 5 33 (85%) 17 40 (58%) 6 34 (82%)
Korea 30 4 650% 40 16 150% 70 20 250% 43 16 169%
Malaysia 5 9 (44%) 39 43 (9%) 44 52 (15%) 40 44 (9%)
Singapore 153 96 59% 31 40 (23%) 184 136 35% 46 50 (8%)
Taiwan 64 18 256% 95 94 1% 159 112 42% 101 96 5%
Other (5) 6 6 0% 27 38 (29%) 33 44 (25%) 28 39 (28%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Asian Insurance 469 298 57% 347 361 (4%) 816 659 24% 394 391 1%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 7,645 6,483 18% 505 522 (3%) 8,150 7,005 16% 1,270 1,170 9%
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2004
INVESTMENT OPERATIONS
Opening Gross Redemptions Net Other Market Net Closing FUM
FUM Inflows inflows movements and movements
Currency in FUM
movements
2004
M&G
M&G branded retail investment 8,819 1,124 ( 957) 167 - 393 560 9,379
products
Prudential branded UK retail 1,325 118 ( 131) ( 13) - 38 25 1,350
investment products (6)
M&G institutional (7) 14,048 2,209 ( 1,746) 463 22 614 1,099 15,147
------ ------ ------ ------ ------ ------ ------ ------
Total M&G 24,192 3,451 ( 2,834) 617 22 1,045 1,684 25,876
------ ------ ------ ------ ------ ------ ------ ------
Asia
India 2,049 6,519 ( 6,683) ( 164) ( 19) ( 13) ( 196) 1,853
Taiwan 2,666 4,609 ( 5,426) ( 817) - ( 43) ( 860) 1,806
Korea 933 1,625 ( 1,179) 446 ( 33) 12 425 1,358
Other Mutual Fund Operations 752 966 ( 211) 755 - 16 771 1,523
------ ------ ------ ------ ------ ------ ------ ------
Total Asian Mutual Fund 6,400 13,719 ( 13,499) 220 ( 52) ( 28) 140 6,540
Operations
------ ------ ------ ------ ------ ------ ------ ------
Hong Kong MPF Products (8) 196 57 ( 21) 36 - - 36 232
------ ------ ------ ------ ------ ------ ------ ------
Total Asian Investment Operations 6,596 13,776 ( 13,520) 256 ( 52) ( 28) 176 6,772
------ ------ ------ ------ ------ ------ ------ ------
Total Investment Products 30,788 17,227 ( 16,354) 873 ( 30) 1,017 1,860 32,648
------ ------ ------ ------ ------ ------ ------ ------
Opening Gross Redemptions Net Other Market Net Closing FUM
FUM Inflows inflows movements and movements
Currency in FUM
movements
2003
M&G
M&G branded retail investment 7,587 809 ( 612) 197 (14) 679 862 8,449
products
Prudential branded UK retail 1,137 107 ( 107) - - 117 117 1,254
investment products (6)
M&G institutional (4) (7) 11,560 2,108 ( 1,120) 988 - 942 1,930 13,490
------ ------ ------ ------ ------ ------ ------ ------
Total M&G 20,284 3,024 ( 1,839) 1,185 (14) 1,738 2,909 23,193
------ ------ ------ ------ ------ ------ ------ ------
Asia
India 1,372 5,261 ( 4,906) 355 ( 35) 160 480 1,852
Taiwan 2,425 5,707 ( 5,485) 222 - 65 287 2,712
Korea 993 1,768 ( 1,702) 66 ( 20) 36 82 1,075
Other Mutual Fund Operations 306 517 ( 177) 340 - 31 371 677
------ ------ ------ ------ ------ ------ ------ ------
Total Asian Mutual Fund 5,096 13,253 ( 12,270) 983 ( 55) 292 1,220 6,316
Operations
------ ------ ------ ------ ------ ------ ------ ------
Hong Kong MPF Products (8) 136 56 ( 16) 40 - 10 50 186
------ ------ ------ ------ ------ ------ ------ ------
Total Asian Investment Operations 5,232 13,309 ( 12,286) 1,023 ( 55) 302 1,270 6,502
------ ------ ------ ------ ------ ------ ------ ------
Total Investment Products 25,516 16,333 (14,125) 2,208 ( 69) 2,040 4,179 29,695
------ ------ ------ ------ ------ ------ ------ ------
Opening Gross Redemptions Net Other Market Net Closing FUM
FUM Inflows inflows movements and movements
Currency in FUM
movements
2004 Movement Relative to 2003
M&G
M&G branded retail investment 16% 39% (56%) (15%) - (42%) (35%) 11%
products
Prudential branded UK retail 17% 10% (22%) - - (68%) (79%) 8%
investment products (6)
M&G institutional (4) (7) 22% 5% (56%) (53%) - (35%) (43%) 12%
------ ------ ------ ------ ------ ------ ------ ------
Total M&G 19% 14% (54%) (48%) 257% (40%) (42%) 12%
------ ------ ------ ------ ------ ------ ------ ------
Asia
India 49% 24% (36%) (146%) 46% (108%) (141%) -
Taiwan 10% (19%) 1% (468%) - (166%) (400%) (33%)
Korea (6%) (8%) 31% 576% (65%) (67%) 418% 26%
Other Mutual Fund Operations 146% 87% (19%) 122% - (48%) 108% 125%
------ ------ ------ ------ ------ ------ ------ ------
Total Asian Mutual Fund 26% 4% (10%) (78%) 5% (110%) (89%) 4%
Operations
------ ------ ------ ------ ------ ------ ------ ------
Hong Kong MPF Products (8) 44% 2% (31%) (10%) - - (28%) 25%
Total Asian Investment Operations 26% 4% (10%) (75%) 5% (109%) (86%) 4%
------ ------ ------ ------ ------ ------ ------ ------
Total Investment Products 21% 5% (16%) (60%) 57% (50%) (55%) 10%
------ ------ ------ ------ ------ ------ ------ ------
US(9)
2004 Q3 2003 Q3 +/- (%)
YTD YTD
GBPm GBPm
US Banking Products
Total Deposit Liabilities 604 666 (9%)
Retail Assets 677 689 (2%)
Curian Capital
External Funds under Management 432 73 492%
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2004 VERSUS QUARTER 3 2003
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q3 Q3 +/- Q3 Q3 +/- Q3 Q3 +/- Q3 Q3 +/-
2004 2003 (%) 2004 2003 (%) 2004 2003 (%) 2004 2003 (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance
Operations : (4)
Direct to Customer:
Individual Pensions 1 1 - 2 2 - 3 3 - 2 2 -
Life - With Profit 3 3 - - - - 3 3 - 0 0 -
Bond
Life - Other - - - - - - - - - - - -
Individual Annuities 159 152 5% - - - 159 152 5% 16 15 7%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Sub-Total 163 156 4% 2 2 - 165 158 4% 18 18 -
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total 163 156 4% 2 2 - 165 158 4% 18 18 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Business to Business:
Corporate Pensions 31 37 (16%) 28 27 4% 59 64 (8%) 31 31 -
Individual Annuities 68 63 8% - - - 68 63 8% 7 6 17%
Bulk Annuities 43 32 34% - - - 43 32 34% 4 3 33%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total 142 132 8% 28 27 4% 170 159 7% 42 40 5%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Intermediated
Distribution :
Individual Pensions 12 9 33% 5 6 (17%) 17 15 13% 6 7 (14%)
Corporate Pensions 10 15 (33%) 2 2 - 12 17 (29%) 3 3 -
Life - With Profit 55 117 (53%) - - - 55 117 (53%) 6 12 (50%)
Bond
Life - Other Bond 206 102 102% - - - 206 102 102% 21 10 110%
Life - Other - - - 1 3 (67%) 1 3 (67%) 1 3 (67%)
Individual Annuities 309 206 50% - - - 309 206 50% 31 21 48%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Sub-Total 592 449 32% 8 11 (27%) 600 459 31% 67 55 22%
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total 592 449 32% 8 11 (27%) 600 459 31% 67 55 22%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Partnerships :
Life - With Profit 1 10 (90%) - - - 1 10 (90%) 0 1 (100%)
Bond
Life - Other 234 61 284% 1 - - 235 61 285% 24 6 300%
Individual Annuities 40 24 67% - - - 40 24 67% 4 2 100%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total 275 95 189% 1 - - 276 95 191% 29 9 222%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total :
Individual Pensions 13 10 30% 7 8 (13%) 20 18 11% 8 9 (11%)
Corporate Pensions 41 52 (21%) 30 29 3% 71 81 (12%) 34 34 -
Life - With Profit 59 130 (55%) - - - 59 130 (55%) 6 13 (54%)
Bond
Life - Other Bond 206 102 102% - - - 206 102 102% 21 10 110%
Life - Other 234 61 284% 2 3 (33%) 236 64 269% 25 9 178%
Individual Annuities 576 445 29% - - - 576 445 29% 58 45 29%
Bulk Annuities 43 32 34% - - - 43 32 34% 4 3 33%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Sub-Total 1,172 832 41% 39 40 (3%) 1,211 872 39% 156 123 27%
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total UK Insurance 1,172 832 41% 39 40 (3%) 1,211 872 39% 156 123 27%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
European Insurance
Operations : (10)
Insurance Products 35 17 106% 1 - - 36 17 112% 5 2 150%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total European 35 17 106% 1 - - 36 17 112% 5 2 150%
Insurance Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total UK & European 1,207 849 42% 40 40 - 1,247 889 40% 161 125 29%
Insurance Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
US Insurance
Operations : (10)
Fixed Annuities 275 200 38% - - - 275 200 38% 28 20 40%
Equity-Linked Indexed 135 72 88% - - - 135 72 88% 14 7 100%
Annuities
Variable Annuities 483 561 (14%) - - - 483 561 (14%) 48 56 (14%)
Life - - - 9 3 200% 9 3 200% 9 3 200%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Sub-total Retail 893 833 7% 9 3 200% 902 836 8% 98 86 14%
Guaranteed Investment 74 6 1133% - - - 74 6 1133% 7 1 600%
Contracts
GIC - Medium Term Note 55 28 96% - - - 55 28 96% 6 3 100%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total US Insurance 1,022 867 18% 9 3 200% 1,031 870 19% 111 90 23%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Asian Insurance
Operations:(10)
China 1 1 - 5 3 67% 6 4 50% 5 3 67%
Hong Kong 53 58 (9%) 19 21 (10%) 72 79 (9%) 24 27 (11%)
India (@26%) 1 1 - 7 4 75% 8 5 60% 7 4 75%
Indonesia 6 9 (33%) 6 10 (40%) 12 19 (37%) 7 11 (36%)
Japan 5 2 150% 2 13 (85%) 7 15 (53%) 3 13 (77%)
Korea 3 4 (25%) 13 6 117% 16 10 60% 13 6 117%
Malaysia 2 3 (33%) 18 19 (5%) 20 22 (9%) 18 20 (10%)
Singapore 57 45 27% 11 14 (21%) 68 59 15% 17 18 (6%)
Taiwan 34 9 278% 38 30 27% 72 39 85% 41 31 32%
Other (5) 2 2 - 10 14 (29%) 12 16 (25%) 10 15 (33%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total Asian Insurance 164 134 22% 129 134 (4%) 293 268 9% 145 148 (2%)
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Group Total 2,393 1,849 29% 178 177 1% 2,571 2,026 27% 417 363 15%
====== ====== ===== ====== ====== ===== ====== ====== ===== ====== ====== =====
INVESTMENT OPERATIONS
M&G (4) (7) Asia Mutual Funds Hong Kong MPF Total Investment
Products (8) Products
Q3 Q3 +/- Q3 Q3 +/- Q3 Q3 +/- Q3 Q3 +/-
2004 2003 (%) 2004 2003 (%) 2004 2003 (%) 2004 2003 (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 24,442 22,331 9% 6,876 5,721 20% 216 165 31% 31,534 28,217 12%
Gross inflows 1,274 1,008 26% 4,176 4,929 (15%) 16 17 (6%) 5,466 5,954 (8%)
Less redemptions ( 567) ( 657) 14% ( 4,608)( 4,547) (1%) ( 5) ( 4) (25%) ( 5,179)( 5,208) 1%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Net flows 707 351 101% ( 432) 382 (213%) 11 13 (15%) 287 746 (62%)
Other movements 63 - - ( 14) ( 25) 44% - - - 49 ( 25) 296%
Market and currency 664 511 30% 110 238 (54%) 5 8 (38%) 779 757 3%
movements
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Net movement in FUM 1,434 862 66% ( 336) 595 (156%) 16 21 (24%) 1,114 1,478 (25%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Closing FUM 25,876 23,193 12% 6,540 6,316 4% 232 186 25% 32,648 29,695 10%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Schedule 4
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2004 VERSUS QUARTER 2 2004
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q3 Q2 +/- Q3 Q2 +/- Q3 Q2 +/- Q3 Q2 +/-
2004 2004 (%) 2004 2004 (%) 2004 2004 (%) 2004 2004 (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
UK Insurance Operations :
(4)
Direct to Customer:
Individual Pensions 1 3 (67%) 2 2 - 3 5 (40%) 2 2 -
Life - With Profit Bond 3 3 - - - - 3 3 - - - -
Individual Annuities 159 155 3% - - - 159 155 3% 16 16 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 163 161 1% 2 2 - 165 163 1% 18 18 -
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 163 161 1% 2 2 - 165 163 1% 18 18 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Business to Business:
Corporate Pensions 31 37 (16%) 28 45 (38%) 59 82 (28%) 31 49 (37%)
Individual Annuities 68 46 48% - - - 68 46 48% 7 5 40%
Bulk Annuities 43 70 (39%) - - - 43 70 (39%) 4 7 (43%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 142 153 (7%) 28 45 (38%) 170 198 (14%) 42 60 (30%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Intermediated Distribution :
Individual Pensions 12 17 (29%) 5 5 - 17 22 (23%) 6 7 (14%)
Corporate Pensions 10 52 (81%) 2 3 (33%) 12 55 (78%) 3 8 (63%)
Life - With Profit Bond 55 79 (30%) - - - 55 79 (30%) 6 8 (25%)
Life - Other Bond 206 172 20% - - - 206 172 20% 21 17 24%
Life - Other - - - 1 1 - 1 1 - 1 1 -
Individual Annuities 309 318 (3%) - - - 309 318 (3%) 31 32 (3%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 592 638 (7%) 8 9 (11%) 600 647 (7%) 67 73 (8%)
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 592 638 (7%) 8 9 (11%) 600 647 (7%) 67 73 (8%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Partnerships :
Life - With Profit Bond 1 - - - - - 1 - - - - -
Life - Other 234 175 34% 1 1 - 235 176 34% 24 19 26%
Individual Annuities 40 25 60% - - - 40 25 60% 4 3 33%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 275 200 38% 1 1 - 276 201 37% 29 21 38%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total :
Individual Pensions 13 20 (35%) 7 7 - 20 27 (26%) 8 9 (11%)
Corporate Pensions 41 89 (54%) 30 48 (38%) 71 137 (48%) 34 57 (40%)
Life - With Profit Bond 59 82 (28%) - - - 59 82 (28%) 6 8 (25%)
Life - Other Bond 206 172 20% - - - 206 172 20% 21 17 24%
Life - Other 234 175 34% 2 2 - 236 177 33% 25 20 25%
Individual Annuities 576 544 6% - - - 576 544 6% 58 54 7%
Bulk Annuities 43 70 (39%) - - - 43 70 (39%) 4 7 (43%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 1,172 1,152 2% 39 57 (32%) 1,211 1,209 - 156 172 (9%)
DWP Rebates - - - - - - - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK Insurance 1,172 1,152 2% 39 57 (32%) 1,211 1,209 - 156 172 (9%)
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
European Insurance
Operations : (10)
Insurance Products 35 18 94% 1 - - 36 18 100% 5 2 150%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total European Insurance 35 18 94% 1 - - 36 18 100% 5 2 150%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK & European 1,207 1,170 3% 40 57 (30%) 1,247 1,227 2% 161 174 (7%)
Insurance Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
US Insurance Operations :
(10)
Fixed Annuities 275 241 14% - - - 275 241 14% 28 24 17%
Equity-Linked Indexed 135 87 55% - - - 135 87 55% 14 9 56%
Annuities
Variable Annuities 483 533 (9%) - - - 483 533 (9%) 48 53 (9%)
Life - - - 9 7 29% 9 7 29% 9 7 29%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-total Retail 893 861 4% 9 7 29% 902 868 4% 98 93 5%
Guaranteed Investment 74 13 469% - - - 74 13 469% 7 1 600%
Contracts
GIC - Medium Term Note 55 277 (80%) - - - 55 277 (80%) 6 28 (79%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total US Insurance 1,022 1,151 (11%) 9 7 29% 1,031 1,158 (11%) 111 122 (9%)
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Asian Insurance Operations :
(10)
China 1 2 (50%) 5 3 67% 6 5 20% 5 4 25%
Hong Kong 53 56 (5%) 19 19 - 72 75 (4%) 24 25 (4%)
India (@26%) 1 1 - 7 6 17% 8 7 14% 7 6 17%
Indonesia 6 7 (14%) 6 5 20% 12 12 - 7 6 17%
Japan 5 4 25% 2 1 100% 7 5 40% 3 2 50%
Korea 3 9 (67%) 13 14 (7%) 16 23 (30%) 13 15 (13%)
Malaysia 2 2 - 18 13 38% 20 15 33% 18 13 38%
Singapore 57 46 24% 11 10 10% 68 56 21% 17 15 13%
Taiwan 34 20 70% 38 27 41% 72 47 53% 41 29 41%
Other (5) 2 2 - 10 9 11% 12 11 9% 10 9 11%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Asian Insurance 164 149 10% 129 107 21% 293 256 14% 145 122 19%
Operations
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 2,393 2,470 (3%) 178 171 4% 2,571 2,641 (3%) 417 418 -
====== ====== ===== ====== ====== ===== ====== ====== ==== ===== ====== =====
INVESTMENT OPERATIONS
M&G (4) (7) Asia Mutual Funds Hong Kong MPF Products Total Investment
(8) Products
Q3 Q2 +/- Q3 Q2 +/- Q3 Q2 +/- Q3 Q2 +/-
2004 2004 (%) 2004 2004 (%) 2004 2004 (%) 2004 2004 (%)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Opening FUM 24,442 23,658 3% 6,876 6,741 2% 216 206 5% 31,534 30,605 3%
Gross inflows 1,274 1,455 (12%) 4,176 4,652 (10%) 16 24 (33%) 5,466 6,131 (11%)
Less redemptions ( 567) ( 659) 14%( 4,608) ( 4,293) (7%) ( 5) ( 12) 58%( 5,179)(4,964) (4%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net flows 707 796 (11%) ( 432) 359 (220%) 11 12 (8%) 287 1,167 (75%)
Other movements 63 ( 139) 145% ( 14) ( 13) (8%) - - - 49 ( 152) 132%
Market and currency 664 127 423% 110 ( 211) 152% 5 ( 2) 350% 779 ( 86) 1006%
movements
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net movement in FUM 1,434 784 83% ( 336) 135 (349%) 16 10 60% 1,114 929 20%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Closing FUM 25,876 24,442 6% 6,540 6,876 (5%) 232 216 7% 32,648 31,534 4%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Schedule 5
INSURANCE OPERATIONS
Q3 2004 (%) Q3 2003 (%)
GBPm GBPm
SALES
UK Insurance Operations:
ANNUITIES
Bulks:
Policyholder 1 2% 3 10%
Shareholder 42 98% 29 90%
------ ------ ------ ------
Total 43 100% 32 100%
------ ------ ------ ------
Individual:
Policyholder 2 0% 212 48%
Shareholder 574 100% 233 52%
------ ------ ------ ------
Total 576 100% 445 100%
------ ------ ------ ------
Total Annuities:
Policyholder 3 0% 215 45%
Shareholder 616 100% 262 55%
------ ------ ------ ------
Total 619 100% 477 100%
====== ====== ====== ======
PRUDENTIAL PLC - NEW BUSINESS - YTD 2004 VERSUS YTD 2003
YTD Q3 2004 (%) YTD Q3 2003 (%)
GBPm GBPm
SALES
UK Insurance Operations:
ANNUITIES
Bulks:
Policyholder 7 3% 7 4%
Shareholder 246 97% 182 96%
------ ------ ------ ------
Total 253 100% 189 100%
------ ------ ------ ------
Individual:
Policyholder 431 27% 728 56%
Shareholder 1,137 73% 583 44%
------ ------ ------ ------
Total 1,568 100% 1,311 100%
------ ------ ------ ------
Total Annuities:
Policyholder 438 24% 735 49%
Shareholder 1,383 76% 765 51%
------ ------ ------ ------
Total 1,821 100% 1,500 100%
====== ====== ====== ======
Notes to Schedules :
(1) Insurance and investment new business for overseas operations has been
calculated using constant exchange rates. The applicable rate for Jackson
National Life is 1.82. A comparison between the results at actual exchange rates
and at constant exchange rates is given in the press release.
(1b)Insurance and investment new business for overseas operations has been
calculated using average exchange rates. The applicable rate for Jackson
National Life is 1.82 (2003 - 1.61).
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions + 10%
single new business contributions, are subject to roundings.
(4) Certain investment mandates previously reported as UK Corporate Pensions in
2003 are now reported as M&G institutional funds under management. The impact of
this is to reduce UK Corporate pensions APE sales by GBP32 million for the full
year 2003 (GBP26 million for the first nine months of 2003).
(5) In Asia, 'Other' insurance operations include Thailand, The Philippines and
Vietnam.
(6) Scottish Amicable and Prudential branded Investment Products.
(7) Balance includes segregated pensions fund business, private finance flows
and M&G South Africa institutional business. M&G institutional funds under
management for Q2 2003 have been restated to include funds managed on behalf of
the Prudential Staff Pension Scheme previously categorised as internal funds.
Other movements reflect the net flows arising from the cash portion of a
tactical asset allocation fund managed in South Africa.
(8) Mandatory Provident Fund product sales in Hong Kong are included at
Prudential's 36% interest in the Hong Kong MPF operation.
(9) Balance sheet figures have been calculated at closing exchange rates.
(10) 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.
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 19 October, 2004
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Clare Staley
Head of Group Media Relations