17th Apr 2008 07:01
Prudential PLC17 April 2008 Embargo: 07:00am Thursday 17 April 2008 PRUDENTIAL PLC FIRST QUARTER 2008 INTERIM MANAGEMENT STATEMENT TOTAL GROUP INSURANCE SALES UP 13% All figures in the table below are for the three months to 31 March 2008, withcomparisons to 2007 at constant exchange rates. APE Growth Total Group Insurance £729 million 13% Total Group Retail Insurance £688 million 14% Asia £375 million 30% US £165 million (7%) UK Retail £189 million 4% UK Total £189 million 4% Asia Asset Management Net inflows of £0.5 billion down 17% M&G Net inflows of £0.6 billion down 59% Mark Tucker, Group Chief Executive said: "The Group has made a very positive start to the year with overall Group newbusiness up 13 per cent. This continues our strong momentum despite anenvironment characterised by high levels of uncertainty and volatility. Thisperformance confirms the resilience that we derive from our geographic spreadacross three regions, and particularly the role of Asia as our leading source ofnew business. "Asia's excellent new business growth momentum continues apace. In the US,although difficult market conditions are affecting sales of certain types ofretirement products, we remain confident that we shall continue to out-performthe market over the longer-term. UK growth of four per cent is particularlypleasing as we have maintained our value driven focus on writing only thebusiness that meets our profitability criteria. "Our asset management businesses in the UK and Asia achieved £1.1 billion netinflows in extremely tough conditions, with Prudential's financial strength andtrack record of investment performance enabling us to be a beneficiary of theflight to quality that accompanies economic uncertainty. "The current economic environment is challenging but I am confident that ourgeographic diversity, advantaged distribution, product expertise and managementcapability position us well for future growth. Our prospects for 2008 remainpositive." Asia insurance operations Prudential's Asian life operations delivered new business APE of £375 millionrepresenting growth of 30 per cent over the first quarter 2007 continuing thestrong growth trend seen in 2007. PVNBP basis sales for first quarter 2008 of£2.0 billion are 35 per cent higher than in the same period last year. Despite the recent global investment market turmoil, demand for linked productshas remained strong with the proportion of sales of linked products increasingslightly from 67 per cent of APE for the first quarter of 2007 to 69 per cent ofAPE in the first quarter of 2008. The main drivers of growth by country duringthe quarter compared to the first quarter last year were India, with our shareof sales at £89 million an increase of 41 per cent, Indonesia at £40 million upa very strong 90 per cent, Hong Kong at £54 million up 50 per cent, Japan at £22million up 100 per cent and Singapore at £38 million up 41 per cent. Product innovation remains key and we have continued to develop our retirement,Takaful and health propositions to deepen our relationship with distributors andcustomers. Our ability to find creative solutions for our customers and toinnovate allows us to grow profitably. New business from health products was 79per cent ahead of the same quarter last year. These strong performances came from a wide range of drivers that continue todemonstrate the success of Prudential's regional model. In India the growthreflects the investment in new branches and agency during 2007. Indonesia'sagency momentum has continued through the first quarter and this operation nowhas 51,500 agents, a growth of 71 per cent over the first quarter of 2007,making it Prudential's second largest agency force in the region behind India.Also, the launch of Takaful products continues to be a success with 20 per centof Indonesia APE now coming from these products. Hong Kong had a very strongfirst quarter with the successful launch of the new PRUlink Wealth Builder, theoperation's first regular premium back-end loaded index linked product,supported by marketing activity for retirement planning. In Japan theexceptional growth has been driven largely by Term Life products where the taxbenefits have now been reduced; this operation is now focusing on VariableAnnuity products. We anticipate a slow down in new business volumes relative tothe term life product. Singapore has also benefited from a one-off boost insingle premium sales relating to changes in the Central Provident Fundinvestment limits effective from 1 April 2008. Having led Prudential's Asian growth in 2007, Taiwan delivered new business APEof £35 million, down eight per cent. Single premium sales were particularlyaffected by adverse market sentiment towards investment products with areduction of 43 per cent compared to the first quarter of last year. In Malaysia the Takaful business continues to grow strongly, up 70 per cent onlast year and representing 28 per cent of the total APE, up from 14 per centlast year. Total new business was down six per cent reflecting challengingmarket conditions. Korea delivered new business APE of £59 million, up 11 percent, in a market that remains highly competitive. On a comparable basis to 2007, APE sales in China were up by 50 per cent. Inrecently released market data for 2007, domestic players on average grew by 33per cent and foreign/joint ventures by 21 per cent. Vietnam, Thailand and Philippines have continued the strong growth seen in 2007with collective first quarter APE sales of £15 million, up 36 per cent on lastyear. Unit linked products were launched in Vietnam in January and theyrepresented five per cent of the country's sales in the first quarter. Prudential has an excellent track record of building a profitable business inAsia and its focus continues to be on profitable and sustainable long-termgrowth. The business continues to expect to deliver doubling 2005 EEV NBP a yearearly by 2008. US insurance operations Jackson, Prudential's US insurance business, delivered APE sales of £165 millionin the first quarter of 2008, representing a seven per cent decline from thesame period in 2007. This was primarily driven by lower variable annuity sales.APE retail sales in the first quarter of 2008 were £124 million, down six percent over the same period in 2007. On a PVNBP basis, new business sales were£1.6 billion. Total APE sales of £165 million and total retail APE sales of £124 million bothrepresent the second-highest level of sales during the first quarter in theCompany's history. This achievement demonstrates the resilience of Jackson'sbusiness model despite volatile equity markets and a deteriorating macroeconomicenvironment experienced in the first three months of 2008. Variable annuity APE sales of £90 million in the first quarter of 2008 were 13per cent down on the same period in 2007. During the first three months of 2008,the S&P 500 index reduced by 10 per cent as the significant volatilityexperienced by US equity markets during the second half of 2007 continued into2008. Price competition in the variable annuity market has remained intense. In the first quarter of 2008, Jackson maintained its track record for productinnovation by enhancing its variable annuity offering, launching two newguaranteed minimum withdrawal benefits (GMWB) and two new portfolio investmentoptions subadvised by PPM America, Inc. As announced in the fourth quarter of2007, Jackson is expanding its wholesaling force by adding nearly 70 internalwholesalers and seven sales desk directors by 2009. The initiative is designedto increase Jackson's presence among independent advisers and strengthenrelationships with the Company's top producers. Fixed annuity APE sales of £19 million were 46 per cent up on the same period of2007 reflecting a higher customer propensity towards fixed-rate products in aperiod of declining equity markets. Fixed index annuity sales continue to be affected by difficult marketconditions. Jackson's APE sales of £10 million in the first three months of 2008were nine per cent down on the same period of 2007. Institutional APE sales of £41 million in the first quarter of 2008 were down 11per cent on the same period of 2007. Jackson continues to participate in thismarket on an opportunistic basis when margins are attractive. Curian Capital, a specialised asset management company that provides innovativefee-based separately managed accounts, continues to build its position in the USretail asset management market with total assets under management at the end ofMarch 2008 of £1.7 billion, stable from the end of December 2007 at CER. Curiangenerated deposits of £157 million in the first quarter of 2008, up six per centon the same period of 2007. Following the additional disclosure provided with the 2007 Results Announcement,Jackson's overall credit exposure remains tightly controlled. The exposure iswell within Group risk parameters and Jackson continues to manage itproactively. For securities classified as available-for-sale under IAS39, at 31March there was an increase in the net unrealised loss position to £459 millionfrom £136 million at 31 December 2007. This increase reflects exceptional marketconditions. Jackson remains confident of the quality of its overall portfolio of £19 billionof debt securities. 90 per cent of its gross unrealised loss is on investmentgrade securities. Of the £257 million of gross unrealised losses on securitieswith a fair value of less than 80 per cent of book value, only £28 million is onsecurities rated as non-investment grade. In addition, there were no creditdefaults in the direct investment portfolio in the quarter and downgrades wereminimal. As stated with our 2007 results announcement, Jackson holds its debtsecurities with the intent and ability to hold them for the longer-term. Furtherdetails are provided in Schedule 7. Overall, we remain confident that Jackson's strengths - its efficient operatingplatform, the quality of its distribution, its ability to innovate and thequality of its management - will allow it to continue to outperform the marketover the longer-term. UK insurance operations Prudential UK delivered total APE sales of £189 million in the first quarter of2008, a four per cent increase on the same quarter last year. This sales growthwas driven principally by strong performances in with-profits and offshore bondsas well as equity release completions. Sales on a PVNBP basis were up six percent at £1.6 billion. Individual annuity sales in the first quarter of APE £64 million were three percent lower than the first quarter of 2007. Internal vestings of APE £32 millionwere in line with the first quarter of 2007 and contributed 50 per cent of totalannuity sales. Sales through partnerships fell slightly from last year's firstquarter performance. With-profits annuity sales continued to grow strongly, withsales of APE £12 million up 13 per cent on the first quarter of 2007. Asconsumers focus increasingly on the need for inflation protection in retirement,this is a growing market and one in which Prudential is the market leader. Prudential's lifetime mortgage sales continued their upward trend with mortgagedrawdowns of £51 million making this the highest quarter to date, up 50 per centon the first quarter last year. Performance in the first quarter was underpinnedby continued strong sales through intermediaries up 43 per cent to £33 million,complemented by sales through Prudential's face-to-face specialist consultantsincreasing by 61 per cent over the same period. Corporate pension sales of £61 million were in line with the same period lastyear, principally due to continued growth in member uptake and increments onexisting schemes. Prudential now administers corporate pensions on behalf ofapproximately 640,000 members. Prudential's retail with-profits business performed very strongly across a rangeof products with total sales of £86 million up 17 per cent. Sales ofwith-profits bonds continued the strong growth seen in 2007, with first quarterAPE sales of £18 million up 112 per cent on the first quarter of 2007. Sales ofPruFund (Prudential's unitised and smoothed investment plan with an optionalguarantee) were particularly strong at £11 million APE, with cumulative singlepremiums since launch in 2005 now exceeding £400 million. With consumers in theUK seeking to protect themselves from market down-turns, Prudential has seen asignificant increase in with-profits sales as more investors choose itswith-profits products to protect themselves during volatile and uncertainconditions as well as during market growth. Sales of offshore products (sold within the UK and Europe) were up 36 per centon 2007 at £19 million APE. There was a particularly strong performance in theUK market where sales increased by 124 per cent. This reflected increased demandfor Prudential's open architecture portfolio bond product, with an increasingnumber of advisers recognising the flexibility, choice and potential taxeffectiveness this sort of product can offer to their higher net worth clients.To build on this opportunity further, Prudential International launched a newenhanced offering in March - the Portfolio Account, a single premium offshoreportfolio bond. In the wholesale bulk and insurer back-book market Prudential wrote a minimalamount of business in the first quarter of 2008, reflecting Prudential's stancethat it will only write annuity business at rates that are sufficient to meetits return on capital requirements based on its view of future longevityimprovements. There continues to be a significant pipeline of potentialwholesale deals but competition remains intense with a number of marketparticipants competing for business. PruHealth sales are not included in the total APE sales numbers. During thefirst quarter of 2008, PruHealth continued to grow strongly with gross writtenpremiums of £20 million up 25 per cent on the same quarter of 2007. Thisbusiness now covers over 150,000 lives. These first quarter results reflect the UK strategy as we maintain ourvalue-driven focus on writing only the business that meets our profitabilitycriteria. Asset Management M&G M&G is an investment-led business with a demonstrable focus on performancedelivery which aims to offer attractive products in a variety of macro-economicenvironments. Despite the significant deterioration in market conditions sincethe first quarter last year, M&G delivered increased gross fund inflows duringthe first three months of 2008 and ended the quarter in a positive position,with net inflows of £0.6 billion. This reflects M&G's excellent investmentperformance and the strength of its diversified business across different assetclasses and across retail and wholesale markets, both in the UK andinternationally. M&G's total gross fund inflows for the first three months of this year were £3.3billion, an increase of two per cent on the first quarter last year. Net fundinflows of £558 million, while down 59 per cent on the same period of 2007, area strongly net positive result in market conditions which are dramaticallydifferent from the comparable period last year. During the first three monthsof this year, the FTSE All Share fell 11 per cent. In spite of the marketvolatility seen over the last quarter, M&G's total funds under management felljust five per cent to £159.8 billion, demonstrating the diverse spread of M&G'sbusiness. Gross fund inflows into M&G's retail business were £1.9 billion, a fall of fourper cent compared with the first quarter of last year. Net fund inflows were £25million for the quarter. Retail fund performance has continued to be strong,despite the deterioration in markets, with 24 per cent of retail funds in thetop decile over three years and 39 per cent of funds delivering top quartileperformance. This continued excellent fund performance places M&G in a strongposition to gain market share. M&G's institutional businesses saw gross fund inflows increase 11 per centduring the quarter to £1.5 billion. Net inflows decreased by 33 per cent to £533million. In its higher margin businesses, M&G's Infrastructure Finance businesssaw steady inflows and while market activity in structured credit and leveragedloans has remained quiet, M&G's excellent reputation and continued goodperformance has seen it continue to pick up business. Asian Asset Management Business The Asian Asset Management business recorded £0.5 billion of net inflows in thefirst three months of 2008. These were 17 per cent lower compared to the sameperiod in 2007. Of the £0.5 billion of net inflows, 74 per cent were inlonger-term equity and fixed income products with 26 per cent in shorter-termmoney market funds. Total third party funds under management were £16.0 billion, a decrease of 11per cent compared to the fourth quarter of 2007. Japan, Korea and India were thelargest contributors to the reduction due to equity market volatility with thesecountries falling by 20 per cent, 11 per cent and nine per cent respectively.Japan, with a significant percentage of their funds invested in India, wasaffected by the equity downturn in India, in addition to that in its own market. Our innovative product strategy continues to be a key focus for the business, anexample being PCA Asset Management in Korea which recently launched aninnovative fund called PCA Emerging Asia Equity Fund, which invests into China,India, Indonesia, Thailand, Malaysia, Philippines, Vietnam and other emergingAsia countries. In terms of institutional business, Taiwan obtained three institutional mandateswith funds under management of £116 million during the first quarter. Thisincludes a domestic equity investment mandate from Taiwan's New Labour PensionFund. Prudential remains confident that its asset management businesses in Asia arewell positioned to achieve strong and profitable growth. ENDS Enquiries: Media Investors/AnalystsJon Bunn 020 7548 3559 James Matthews 020 7548 3561William Baldwin-Charles 020 7548 3719 Jessica Stalley 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 7.30am (BST) hosted by Mark Tucker, Group Chief Executive, and Tidjane Thiam, Chief Financial Officer. Dial in telephone number: +44 (0)20 8609 0793. Passcode: 155439#. 5. There will be a conference call for investors and analysts at 9:30am (BST) hosted by Mark Tucker, Group Chief Executive, and Tidjane Thiam, Chief Financial Officer. From the UK please call +44 (0)20 8609 0793. Passcode 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 212764#. 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 2008 Q1 2007 Q1 +/- (%) 2008 Q1 2007 Q1 +/- (%) YTD YTD YTD YTD £m £m £m £m UK 189 182 4% 189 182 4% US 165 180 (8%) 165 178 (7%) Asia 375 277 35% 375 288 30% ______ ______ ______ ______ ______ ______ Total 729 639 14% 729 648 13% ______ ______ ______ ______ ______ ______ Gross Inflows Actual Exchange Rates Constant Exchange Rates 2008 Q1 2007 Q1 +/- (%) 2008 Q1 2007 Q1 +/- (%) YTD YTD YTD YTD £m £m £m £m M&G 3,340 3,283 2% 3,340 3,283 2% US 17 4 325% 17 4 325% Asia 11,411 7,155 59% 11,411 7,625 50% ______ ______ ______ ______ ______ ______ Total 14,768 10,442 41% 14,768 10,912 35% ______ ______ ______ ______ ______ ______ Total Insurance and Investment New Business Actual Exchange Rates Constant Exchange Rates 2008 Q1 2007 Q1 +/- (%) 2008 Q1 2007 Q1 +/- (%) YTD YTD YTD YTD £m £m £m £m Insurance 3,853 3,685 5% 3,853 3,686 5% Investment 14,768 10,442 41% 14,768 10,912 35% ______ ______ ______ ______ ______ ______ Total 18,621 14,127 32% 18,621 14,598 28% ______ ______ ______ ______ ______ ______ 8. Financial Calendar: Annual General Meeting 15 May 2008Interim Results 2008 31 July 2008Third Quarter 2008 Interim Management Statement 21 October 2008 9. About Prudential plc *Prudential plc, a company incorporated and with its principal place of businessin the United Kingdom, and its affiliated companies constitute one of theworld's leading financial services groups. It provides insurance and financialservices directly and through its subsidiaries and affiliates throughout theworld. It has been in existence for over 160 years and has £267 billion inassets under management (as at 31 December 2007). Prudential plc is notaffiliated in any manner with Prudential Financial, Inc, a company whoseprincipal place of business is in the United States of America. Forward-Looking Statements This statement may contain certain 'forward-looking statements' with respect tocertain of Prudential's plans and its current goals and expectations relating toits 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 uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. Schedule 1A - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK US Asia Total 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance Products 1,404 1,335 5% 1,603 1,744 (8%) 846 607 39% 3,853 3,686 5% Total InvestmentProducts - Gross Inflows 3,340 3,283 2% 17 4 325% 11,411 7,625 50% 14,768 10,912 35% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ 4,744 4,618 3% 1,620 1,748 (7%) 12,257 8,232 49% 18,621 14,598 28% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INSURANCE OPERATIONS Single Regular Total Annual Equivalents 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting annuities 322 325 (1%) - - - 322 325 (1%) 32 33 (3%) Direct and Partnership Annuities 176 205 (14%) - - - 176 205 (14%) 18 21 (14%) Intermediated Annuities 137 132 4% - - - 137 132 4% 14 13 8% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual Annuities 635 662 (4%) - - - 635 662 (4%) 64 66 (3%) Equity Release 51 34 50% - - - 51 34 50% 5 3 67% Individual Pensions 14 9 56% - - - 14 9 56% 1 1 0% Corporate Pensions 46 85 (46%) 22 18 22% 68 103 (34%) 27 27 0% Unit Linked Bonds 38 71 (46%) - - - 38 71 (46%) 4 7 (43%) With-Profit Bonds 147 56 163% - - - 147 56 163% 15 6 150% Protection - - - 1 1 0% 1 1 0% 1 1 0% Offshore Products 179 127 41% 1 1 0% 180 128 41% 19 14 36% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail Retirement 1,110 1,044 6% 24 20 20% 1,134 1,064 7% 135 124 9% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Corporate Pensions 93 46 102% 25 28 (11%) 118 74 59% 34 33 3% Other Products 40 49 (18%) 5 6 (17%) 45 55 (18%) 9 11 (18%) DWP Rebates 103 129 (20%) - - - 103 129 (20%) 10 13 (23%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and Pensions 236 224 5% 30 34 (12%) 266 258 3% 54 56 (4%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,346 1,268 6% 54 54 0% 1,400 1,322 6% 189 181 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Wholesale Annuities 1 3 (67%) - - - 1 3 (67%) - - - Credit Life 3 10 (70%) - - - 3 10 (70%) - 1 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 189 182 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 590 (9%) 49 47 4% 583 637 (8%) 102 106 (4%) Intermediated 708 549 29% 5 7 (29%) 713 556 28% 76 62 23% Wholesale 5 13 (62%) - - - 5 13 (62%) 1 1 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,247 1,152 8% 54 54 0% 1,301 1,206 8% 179 169 6% DWP Rebates 103 129 (20%) - - - 103 129 (20%) 10 13 (23%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 189 182 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ US Insurance Operations Fixed Annuities 193 133 45% - - - 193 133 45% 19 13 46% Fixed Index Annuities 98 107 (8%) - - - 98 107 (8%) 10 11 (9%) Variable Annuities 900 1,037 (13%) - - - 900 1,037 (13%) 90 104 (13%) Life 2 2 0% 5 4 25% 7 6 17% 5 4 25% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,193 1,279 (7%) 5 4 25% 1,198 1,283 (7%) 124 132 (6%) Guaranteed Investment Contracts 405 130 212% - - - 405 130 212% 41 13 215% GIC - Medium Term Note - 331 - - - - - 331 - - 33 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance Operations 1,598 1,740 (8%) 5 4 25% 1,603 1,744 (8%) 165 178 (7%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Asian InsuranceOperations China 19 7 171% 7 11 (36%) 26 18 44% 9 12 (25%) Hong Kong 152 101 50% 39 26 50% 191 127 50% 54 36 50% India 7 13 (46%) 88 62 42% 95 75 27% 89 63 41% Indonesia 44 16 175% 36 19 89% 80 35 129% 40 21 90% Japan 38 34 12% 18 8 125% 56 42 33% 22 11 100% Korea 26 26 0% 56 50 12% 82 76 8% 59 53 11% Malaysia 7 2 250% 14 16 (13%) 21 18 17% 15 16 (6%) Singapore 205 110 86% 17 16 6% 222 126 76% 38 27 41% Taiwan 21 37 (43%) 33 34 (3%) 54 71 (24%) 35 38 (8%) Other 4 9 (56%) 15 10 50% 19 19 0% 15 11 36% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance Operations 523 355 47% 323 252 28% 846 607 39% 375 288 30% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,471 3,376 3% 382 310 23% 3,853 3,686 5% 729 648 13% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK US Asia Total 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance Products 1,404 1,335 5% 1,603 1,766 (9%) 846 584 45% 3,853 3,685 5% Total Investment Products - Gross Inflows 3,340 3,283 2% 17 4 325% 11,411 7,155 59% 14,768 10,442 41% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ 4,744 4,618 3% 1,620 1,770 (8%) 12,257 7,739 58% 18,621 14,127 32% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INSURANCE OPERATIONS Single Regular Total Annual Equivalents 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting annuities 322 325 (1%) - - - 322 325 (1%) 32 33 (3%) Direct and Partnership Annuities 176 205 (14%) - - - 176 205 (14%) 18 21 (14%) Intermediated Annuities 137 132 4% - - - 137 132 4% 14 13 8% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual Annuities 635 662 (4%) - - - 635 662 (4%) 64 66 (3%) Equity Release 51 34 50% - - - 51 34 50% 5 3 67% Individual Pensions 14 9 56% - - - 14 9 56% 1 1 0% Corporate Pensions 46 85 (46%) 22 18 22% 68 103 (34%) 27 27 0% Unit Linked Bonds 38 71 (46%) - - - 38 71 (46%) 4 7 (43%) With-Profit Bonds 147 56 163% - - - 147 56 163% 15 6 150% Protection - - - 1 1 0% 1 1 0% 1 1 0% Offshore Products 179 127 41% 1 1 0% 180 128 41% 19 14 36% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail Retirement 1,110 1,044 6% 24 20 20% 1,134 1,064 7% 135 124 9% Corporate Pensions 93 46 102% 25 28 (11%) 118 74 59% 34 33 3% Other Products 40 49 (18%) 5 6 (17%) 45 55 (18%) 9 11 (18%) DWP Rebates 103 129 (20%) - - - 103 129 (20%) 10 13 (23%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and Pensions 236 224 5% 30 34 (12%) 266 258 3% 54 56 (4%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,346 1,268 6% 54 54 0% 1,400 1,322 6% 189 181 4% Wholesale Annuities 1 3 (67%) - - - 1 3 (67%) - - - Credit Life 3 10 (70%) - - - 3 10 (70%) - 1 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 189 182 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 590 (9%) 49 47 4% 583 637 (8%) 102 106 (4%) Intermediated 708 549 29% 5 7 (29%) 713 556 28% 76 62 23% Wholesale 5 13 (62%) - - - 5 13 (62%) 1 1 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,247 1,152 8% 54 54 0% 1,301 1,206 8% 179 169 6% DWP Rebates 103 129 (20%) - - - 103 129 (20%) 10 13 (23%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 189 182 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ US Insurance Operations Fixed Annuities 193 134 44% - - - 193 134 44% 19 13 46% Fixed Index Annuities 98 109 (10%) - - - 98 109 (10%) 10 11 (9%) Variable Annuities 900 1,050 (14%) - - - 900 1,050 (14%) 90 105 (14%) Life 2 2 0% 5 4 25% 7 6 17% 5 4 25% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,193 1,295 (8%) 5 4 25% 1,198 1,299 (8%) 124 134 (7%) Guaranteed Investment 405 132 207% - - - 405 132 207% 41 13 215%Contracts GIC - Medium Term Note - 335 - - - - - 335 - - 34 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance Operations 1,598 1,762 (9%) 5 4 25% 1,603 1,766 (9%) 165 180 (8%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Asian InsuranceOperations China 19 6 217% 7 11 (36%) 26 17 53% 9 12 (25%) Hong Kong 152 102 49% 39 26 50% 191 128 49% 54 36 50% India 7 12 (42%) 88 56 57% 95 68 40% 89 57 56% Indonesia 44 16 175% 36 20 80% 80 36 122% 40 22 82% Japan 38 30 27% 18 7 157% 56 37 51% 22 10 120% Korea 26 27 (4%) 56 52 8% 82 79 4% 59 55 7% Malaysia 7 2 250% 14 14 0% 21 16 31% 15 14 7% Singapore 205 103 99% 17 15 13% 222 118 88% 38 25 52% Taiwan 21 36 (42%) 33 33 0% 54 69 (22%) 35 37 (5%) Other 4 7 (43%) 15 9 67% 19 16 19% 15 10 50% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance Operations 523 341 53% 323 243 33% 846 584 45% 375 277 35% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,471 3,384 3% 382 301 27% 3,853 3,685 5% 729 639 14% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Schedule 2A - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 INVESTMENT OPERATIONS Opening Closing Variance Gross Inflows Redemptions Net Inflows FUM FUM %2008 £m £m £m £m £m M&G Retail 1,860 (1,835) 25 22,320 20,606 (8%) Institutional 1,480 (947) 533 28,901 29,533 2% ______ ______ ______ ______ ______ ______ Total M&G 3,340 (2,782) 558 51,221 50,139 (2%) ______ ______ ______ ______ ______ ______ Asia India 387 (235) 152 2,190 2,079 (5%) Taiwan 361 (268) 93 1,579 1,469 (7%) Korea 353 (336) 17 2,789 2,416 (13%) Japan 387 (246) 141 4,848 3,855 (20%) Other Mutual Fund Operations 352 (286) 66 2,609 2,344 (10%) ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/Other 1,840 (1,371) 469 14,015 12,163 (13%) ______ ______ ______ ______ ______ ______ MMF India 8,009 (8,169) (160) 1,394 1,172 (16%) Taiwan 983 (703) 280 676 969 43% Korea 462 (464) (2) 455 459 1% Other Mutual Fund Operations 113 (94) 19 259 280 8% ______ ______ ______ ______ ______ ______ Total Asian MMF 9,567 (9,430) 137 2,784 2,880 3% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 11,407 (10,801) 606 16,799 15,043 (10%) ______ ______ ______ ______ ______ ______ Third Party Institutional Mandates 4 (73) (69) 1,152 959 (17%) ______ ______ ______ ______ ______ ______ Total Asian Investment Operations 11,411 (10,874) 537 17,951 16,002 (11%) ______ ______ ______ ______ ______ ______ US Retail 17 (9) 8 55 59 7% ______ ______ ______ ______ ______ ______ Total US 17 (9) 8 55 59 7% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 14,768 (13,665) 1,103 69,227 66,200 (4%) ______ ______ ______ ______ ______ ______ Gross Inflows Redemptions Net Inflows2007 £m £m £m M&G Retail 1,944 (1,371) 573 Institutional 1,339 (545) 794 ______ ______ ______ Total M&G 3,283 (1,916) 1,367 ______ ______ ______ Asia India 534 (258) 276 Taiwan 327 (289) 38 Korea 676 (549) 127 Japan 502 (264) 238 Other Mutual Fund Operations 217 (286) (69) ______ ______ ______ Total Asia Equity/Bond/Other 2,256 (1,646) 610 ______ ______ ______ MMF India 4,286 (4,241) 45 Taiwan 364 (337) 27 Korea 615 (678) (63) Other Mutual Fund Operations 99 (57) 42 ______ ______ ______ Total Asian MMF 5,364 (5,313) 51 ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 7,620 (6,959) 661 ______ ______ ______ Third Party Institutional Mandates 5 (19) (14) ______ ______ ______ Total Asian Investment Operations 7,625 (6,978) 647 ______ ______ ______ US Retail 4 - 4 ______ ______ ______ Total US 4 - 4 ______ ______ ______ ______ ______ ______ Total Investment Products 10,912 (8,894) 2,018 ______ ______ ______ Gross Inflows Redemptions Net Inflows2008 Movement Relative to 2007 % % % M&G Retail (4%) (34%) (96%) Institutional 11% (74%) (33%) ______ ______ ______ Total M&G 2% (45%) (59%) ______ ______ ______ Asia India (28%) 9% (45%) Taiwan 10% 7% 145% Korea (48%) 39% (87%) Japan (23%) 7% (41%) Other Mutual Fund Operations 62% 0% 196% ______ ______ ______ Total Asia Equity/Bond/Other (18%) 17% (23%) ______ ______ ______ MMF India 87% (93%) (456%) Taiwan 170% (109%) 937% Korea (25%) 32% 97% Other Mutual Fund Operations 14% (65%) (55%) ______ ______ ______ Total Asian MMF 78% (77%) 169% ______ ______ ______ Total Asia Retail Mutual Funds 50% (55%) (8%) ______ ______ ______ Third Party Institutional Mandates (20%) (284%) (393%) ______ ______ ______ Total Asian Investment Operations 50% (56%) (17%) ______ ______ ______ US ______ ______ ______ Retail 325% - 100% ______ ______ ______ ______ ______ ______ Total US 325% - 100% ______ ______ ______ ______ ______ ______ Total Investment Products 35% (54%) (45%) ______ ______ ______ 2008 Q1 2007 Q1 US YTD YTD +/- (%) £m £m Curian Capital External Funds Under Administration 1,697 1,351 26% Schedule 2B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 INVESTMENT OPERATIONS Market & Net Opening Gross Other Currency Movement Closing FUM Inflows Redemptions Net Movements Movements In FUM FUM Inflows2008 £m £m £m £m £m £m £m £m M&G Retail 22,320 1,860 (1,835) 25 - (1,739) (1,714) 20,606 Institutional 28,901 1,480 (947) 533 24 75 632 29,533 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 51,221 3,340 (2,782) 558 24 (1,664) (1,082) 50,139 ______ ______ ______ ______ ______ ______ ______ ______ Asia India 2,225 387 (235) 152 48 (346) (146) 2,079 Taiwan 1,476 361 (268) 93 - (100) (7) 1,469 Korea 2,946 353 (336) 17 (146) (401) (530) 2,416 Japan 4,313 387 (246) 141 - (599) (458) 3,855 Other Mutual Fund Operations 2,537 352 (286) 66 (8) (251) (193) 2,344 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/Other 13,497 1,840 (1,371) 469 (106) (1,697) (1,334) 12,163 ______ ______ ______ ______ ______ ______ ______ ______ MMF India 1,416 8,009 (8,169) (160) (95) 11 (244) 1,172 Taiwan 632 983 (703) 280 - 57 337 969 Korea 480 462 (464) (2) - (19) (21) 459 Other Mutual Fund Operations 252 113 (94) 19 - 9 28 280 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 2,780 9,567 (9,430) 137 (95) 58 100 2,880 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 16,277 11,407 (10,801) 606 (201) (1,639) (1,234) 15,043 ______ ______ ______ ______ ______ ______ ______ ______ Third Party Institutional Mandates 1,116 4 (73) (69) - (88) (157) 959 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment Operations 17,393 11,411 (10,874) 537 (201) (1,727) (1,391) 16,002 ______ ______ ______ ______ ______ ______ ______ ______ US Retail 55 17 (9) 8 1 (5) 4 59 ______ ______ ______ ______ ______ ______ ______ ______ Total US 55 17 (9) 8 1 (5) 4 59 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 68,669 14,768 (13,665) 1,103 (176) (3,396) (2,469) 66,200 ______ ______ ______ ______ ______ ______ ______ ______ Market & Net Opening Gross Other Currency Movement Closing FUM Inflows Redemptions Net Movements Movements In FUM FUM Inflows2007 £m £m £m £m £m £m £m £m M&G Retail 19,176 1,944 (1,371) 573 - 355 928 20,104 Institutional 25,770 1,339 (545) 794 (81) (462) 251 26,021 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 44,946 3,283 (1,916) 1,367 (81) (107) 1,179 46,125 ______ ______ ______ ______ ______ ______ ______ ______ Asia India 1,290 488 (236) 252 83 (10) 325 1,615 Taiwan 969 317 (280) 37 - 23 60 1,029 Korea 2,952 697 (566) 131 (41) (9) 81 3,033 Japan 2,816 448 (235) 213 - (40) 173 2,989 Other Mutual Fund Operations 1,468 206 (269) (63) (7) 60 (10) 1,458 ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Equity/Bond/Other 9,495 2,156 (1,586) 570 35 24 629 10,124 ______ ______ ______ ______ ______ ______ ______ ______ MMF India 709 3,914 (3,872) 42 (102) 28 (32) 677 Taiwan 467 353 (327) 26 - (7) 19 486 Korea 609 634 (699) (65) (1) (1) (67) 542 Other Mutual Fund Operations 133 93 (53) 40 - 1 41 174 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 1,918 4,994 (4,951) 43 (103) 21 (39) 1,879 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 11,413 7,150 (6,537) 613 (68) 45 590 12,003 ______ ______ ______ ______ ______ ______ ______ ______ Third Party Institutional Mandates 840 5 (18) (13) - 8 (5) 835 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment Operations 12,253 7,155 (6,555) 600 (68) 53 585 12,838 ______ ______ ______ ______ ______ ______ ______ ______ US Retail - 4 - 4 - 1 5 5 ______ ______ ______ ______ ______ ______ ______ ______ Total US - 4 - 4 - 1 5 5 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 57,199 10,442 (8,471) 1,971 (149) (53) 1,769 58,968 ______ ______ ______ ______ ______ ______ ______ ______ Market & Net Opening Gross Other Currency Movement Closing FUM Inflows Redemptions Net Movements Movements In FUM FUM Inflows2008 Movement Relative to 2007 % % % % % % % % M&G Retail 16% (4%) (34%) (96%) - (590%) (285%) 2% Institutional 12% 11% (74%) (33%) 130% 116% 152% 13% ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 14% 2% (45%) (59%) 130% (1,455%) (192%) 9% ______ ______ ______ ______ ______ ______ ______ ______ Asia India 72% (21%) 0% (40%) (42%) (3,360%) (145%) 29% Taiwan 52% 14% 4% 151% - (535%) (112%) 43% Korea (0%) (49%) 41% (87%) (256%) (4,356%) (754%) (20%) Japan 53% (14%) (5%) (34%) - (1,398%) (365%) 29% Other Mutual Fund Operations 73% 71% (6%) 205% (14%) (518%) (1,830%) 61% ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Equity/Bond/Other 42% (15%) 14% (18%) (403%) (7,171%) (312%) 20% ______ ______ ______ ______ ______ ______ ______ ______ MMF India 100% 105% (111%) (481%) 7% (61%) (663%) 73% Taiwan 35% 178% (115%) 977% - 914% 1,674% 99% Korea (21%) (27%) 34% 97% - (1,800%) 69% (15%) Other Mutual Fund Operations 89% 22% (77%) (53%) - 800% (32%) 61% ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 45% 92% (90%) 219% 8% 176% 356% 53% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 43% 60% (65%) (1%) (196%) (3,742%) (309%) 25% ______ ______ ______ ______ ______ ______ ______ ______ Third Party Institutional 33% (20%) (306%) (431%) - (1,200%) (3,040%) 15% Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment Operations 42% 59% (66%) (11%) (196%) (3,358%) (338%) 25% ______ ______ ______ ______ ______ ______ ______ ______ US Retail - 325% - 100% - (600%) (20%) 1,080% ______ ______ ______ ______ ______ ______ ______ ______ Total US - 325% - 100% - (600%) (20%) 1,080% ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 20% 41% (61%) (44%) (18%) (6,308%) (240%) 12% ______ ______ ______ ______ ______ ______ ______ ______ 2008 Q1 2007 Q1 US YTD YTD +/- (%) £m £m Curian Capital External Funds Under 1,697 1,369 24% Administration Schedule 3 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 VERSUS QUARTER 4 2007 INSURANCE OPERATIONS Single Regular Total Annual Equivalents Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) 2007 2007 2007 2007 £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting annuities 322 369 (13%) - - - 322 369 (13%) 32 37 (14%) Direct and Partnership Annuities 176 184 (4%) - - - 176 184 (4%) 18 18 0% Intermediated Annuities 137 140 (2%) - - - 137 140 (2%) 14 14 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual Annuities 635 693 (8%) - - - 635 693 (8%) 64 69 (7%) Equity Release 51 48 6% - - - 51 48 6% 5 5 0% Individual Pensions 14 11 27% - - - 14 11 27% 1 1 0% Corporate Pensions 46 162 (72%) 22 26 (15%) 68 188 (64%) 27 42 (36%) Unit Linked Bonds 38 43 (12%) - - - 38 43 (12%) 4 4 0% With-Profit Bonds 147 114 29% - - - 147 114 29% 15 11 36% Protection - - - 1 2 (50%) 1 2 (50%) 1 2 (50%) Offshore Products 179 129 39% 1 1 0% 180 130 38% 19 14 36% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail Retirement 1,110 1,200 (8%) 24 29 (17%) 1,134 1,229 (8%) 135 149 (9%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Corporate Pensions 93 30 210% 25 29 (14%) 118 59 100% 34 32 6% Other Products 40 47 (15%) 5 5 0% 45 52 (13%) 9 10 (10%) DWP Rebates 103 14 636% - - - 103 14 636% 10 1 900% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and Pensions 236 91 159% 30 34 (12%) 266 125 113% 54 43 26% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,346 1,291 4% 54 63 (14%) 1,400 1,354 3% 189 192 (2%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Wholesale Annuities 1 1,754 (100%) - - - 1 1,754 (100%) - 175 - Credit Life 3 4 (25%) - - - 3 4 (25%) - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 3,049 (56%) 54 63 (14%) 1,404 3,112 (55%) 189 368 (49%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 648 (18%) 49 58 (16%) 583 706 (17%) 102 123 (17%) Intermediated 708 627 13% 5 5 0% 713 632 13% 76 68 12% Wholesale 5 1,760 (100%) - - - 5 1,760 (100%) 1 176 (99%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,247 3,035 (59%) 54 63 (14%) 1,301 3,098 (58%) 179 367 (51%) DWP Rebates 103 14 636% - - - 103 14 636% 10 1 900% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 3,049 (56%) 54 63 (14%) 1,404 3,112 (55%) 189 368 (49%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ US Insurance Operations Fixed Annuities 193 152 27% - - - 193 152 27% 19 15 27% Fixed Index Annuities 98 104 (6%) - - - 98 104 (6%) 10 10 0% Variable Annuities 900 1,137 (21%) - - - 900 1,137 (21%) 90 114 (21%) Life 2 2 0% 5 6 (17%) 7 8 (13%) 5 6 (17%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,193 1,395 (14%) 5 6 (17%) 1,198 1,401 (14%) 124 146 (15%) Guaranteed Investment 405 148 174% - - - 405 148 174% 41 15 173%Contracts GIC - Medium Term Note - (4) - - - - - (4) - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,598 1,539 4% 5 6 (17%) 1,603 1,545 4% 165 160 3%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Asian InsuranceOperations China 19 17 12% 7 7 0% 26 24 8% 9 9 0% Hong Kong 152 178 (15%) 39 35 11% 191 213 (10%) 54 53 2% India 7 6 17% 88 53 66% 95 59 61% 89 54 65% Indonesia 44 53 (17%) 36 38 (5%) 80 91 (12%) 40 43 (7%) Japan 38 40 (5%) 18 6 200% 56 46 22% 22 10 120% Korea 26 60 (57%) 56 61 (8%) 82 121 (32%) 59 67 (12%) Malaysia 7 21 (67%) 14 29 (52%) 21 50 (58%) 15 31 (52%) Singapore 205 168 22% 17 21 (19%) 222 189 17% 38 38 0% Taiwan 21 33 (36%) 33 36 (8%) 54 69 (22%) 35 39 (10%) Other 4 15 (73%) 15 22 (32%) 19 37 (49%) 15 24 (38%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 523 591 (12%) 323 308 5% 846 899 (6%) 375 367 2%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 3,471 5,179 (33%) 382 377 1% 3,853 5,556 (31%) 729 895 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INVESTMENT OPERATIONS Market & Net Opening Gross Other Currency Movement Closing FUM Inflows Redemptions Net Movements Movements In FUM FUM Inflows £m £m £m £m £m £m £m £m M&G Q1 2008 51,221 3,340 (2,782) 558 24 (1,664) (1,082) 50,139 Q4 2007 49,907 3,933 (2,568) 1,365 (123) 72 1,314 51,221 +/-(%) 3% (15%) (8%) (59%) 120% (2,411%) (182%) (2%) Asia Retail Mutual Funds Q1 2008 16,277 11,407 (10,801) 606 (201) (1,639) (1,234) 15,043 Q4 2007 15,120 10,842 (10,346) 496 (125) 786 1,157 16,277 +/-(%) 8% 5% (4%) 22% (61%) (309%) (207%) (8%) Asia Third Party Q1 2008 1,116 4 (73) (69) - (88) (157) 959 Q4 2007 980 167 (76) 91 - 45 136 1,116 +/-(%) 14% (98%) 4% (176%) - (296%) (215%) (14%) US Retail Mutual Funds Q1 2008 55 17 (9) 8 1 (5) 4 59 Q4 2007 32 27 (2) 25 - (2) 23 55 +/-(%) 72% (37%) (350%) (68%) - (150%) (83%) 7% Total Investment Products Q1 2008 68,669 14,768 (13,665) 1,103 (176) (3,396) (2,469) 66,200 Q4 2007 66,039 14,969 (12,992) 1,977 (248) 901 2,630 68,669 +/-(%) 4% (1%) (5%) (44%) 29% (477%) (194%) (4%) Schedule 4 - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK US Asia Total 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance Products 1,404 1,335 5% 1,603 1,744 (8%) 846 607 39% 3,853 3,686 5% Total Investment Products - Gross Inflows 3,340 3,283 2% 17 4 325% 11,411 7,625 50% 14,768 10,912 35% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ 4,744 4,618 3% 1,620 1,748 (7%) 12,257 8,232 49% 18,621 14,598 28% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INSURANCE OPERATIONS Single Regular Total PVNBP 2008 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting 322 325 (1%) - - - 322 325 (1%) 322 325 (1%)annuities Direct and Partnership 176 205 (14%) - - - 176 205 (14%) 176 205 (14%)Annuities Intermediated Annuities 137 132 4% - - - 137 132 4% 137 132 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Individual Annuities 635 662 (4%) - - - 635 662 (4%) 635 662 (4%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Equity Release 51 34 50% - - - 51 34 50% 51 34 50% Individual Pensions 14 9 56% - - - 14 9 56% 15 9 67% Corporate Pensions 46 85 (46%) 22 18 22% 68 103 (34%) 155 158 (2%) Unit Linked Bonds 38 71 (46%) - - - 38 71 (46%) 38 71 (46%) With-Profit Bonds 147 56 163% - - - 147 56 163% 147 56 163% Protection - - - 1 1 0% 1 1 0% 7 7 0% Offshore Products 179 127 41% 1 1 0% 180 128 41% 185 131 41% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail Retirement 1,110 1,044 6% 24 20 20% 1,134 1,064 7% 1,233 1,128 9% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Corporate Pensions 93 46 102% 25 28 (11%) 118 74 59% 180 149 21% Other Products 40 49 (18%) 5 6 (17%) 45 55 (18%) 57 71 (20%) DWP Rebates 103 129 (20%) - - - 103 129 (20%) 103 129 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Mature Life and Pensions 236 224 5% 30 34 (12%) 266 258 3% 340 349 (3%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Retail 1,346 1,268 6% 54 54 0% 1,400 1,322 6% 1,573 1,477 6% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Wholesale Annuities 1 3 (67%) - - - 1 3 (67%) 1 3 (67%) Credit Life 3 10 (70%) - - - 3 10 (70%) 3 10 (70%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 1,577 1,490 6% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 590 (9%) 49 47 4% 583 637 (8%) 740 773 (4%) Intermediated 708 549 29% 5 7 (29%) 713 556 28% 730 575 27% Wholesale 5 13 (62%) - - - 5 13 (62%) 5 13 (62%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,247 1,152 8% 54 54 0% 1,301 1,206 8% 1,475 1,361 8% DWP Rebates 103 129 (20%) - - - 103 129 (20%) 103 129 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance Operations 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 1,577 1,490 6% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ US Insurance Operations Fixed Annuities 193 133 45% - - - 193 133 45% 193 133 45% Fixed Index Annuities 98 107 (8%) - - - 98 107 (8%) 98 107 (8%) Variable Annuities 900 1,037 (13%) - - - 900 1,037 (13%) 900 1,037 (13%) Life 2 2 0% 5 4 25% 7 6 17% 42 36 17% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Sub-Total Retail 1,193 1,279 (7%) 5 4 25% 1,198 1,283 (7%) 1,233 1,313 (6%) Guaranteed Investment 405 130 212% - - - 405 130 212% 405 130 212%Contracts GIC - Medium Term Note - 331 - - - - - 331 - - 331 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total US Insurance 1,598 1,740 (8%) 5 4 25% 1,603 1,744 (8%) 1,638 1,774 (8%)Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Asian InsuranceOperations China 19 7 171% 7 11 (36%) 26 18 44% 64 61 5% Hong Kong 152 101 50% 39 26 50% 191 127 50% 379 245 55% India 7 13 (46%) 88 62 42% 95 75 27% 355 258 38% Indonesia 44 16 175% 36 19 89% 80 35 129% 187 79 137% Japan 38 34 12% 18 8 125% 56 42 33% 123 67 84% Korea 26 26 0% 56 50 12% 82 76 8% 291 270 8% Malaysia 7 2 250% 14 16 (13%) 21 18 17% 87 89 (2%) Singapore 205 110 86% 17 16 6% 222 126 76% 326 208 57% Taiwan 21 37 (43%) 33 34 (3%) 54 71 (24%) 169 191 (12%) Other 4 9 (56%) 15 10 50% 19 19 0% 48 39 23% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Asian Insurance 523 355 47% 323 252 28% 846 607 39% 2,029 1,507 35%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Group Total 3,471 3,376 3% 382 310 23% 3,853 3,686 5% 5,244 4,771 10% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Schedule 5 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK US Asia Total 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £m Total Insurance Products 1,404 1,335 5% 1,603 1,766 (9%) 846 584 45% 3,853 3,685 5% Total Investment Products 3,340 3,283 2% 17 4 325% 11,411 7,155 59% 14,768 10,442 41%- Gross Inflows ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ 4,744 4,618 3% 1,620 1,770 (8%) 12,257 7,739 58% 18,621 14,127 32% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INSURANCE OPERATIONS Single Regular Total PVNBP 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting annuities 322 325 (1%) - - - 322 325 (1%) 322 325 (1%) Direct and Partnership 176 205 (14%) - - - 176 205 (14%) 176 205 (14%)Annuities Intermediated Annuities 137 132 4% - - - 137 132 4% 137 132 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Individual Annuities 635 662 (4%) - - - 635 662 (4%) 635 662 (4%) Equity Release 51 34 50% - - - 51 34 50% 51 34 50% Individual Pensions 14 9 56% - - - 14 9 56% 15 9 67% Corporate Pensions 46 85 (46%) 22 18 22% 68 103 (34%) 155 158 (2%) Unit Linked Bonds 38 71 (46%) - - - 38 71 (46%) 38 71 (46%) With-Profit Bonds 147 56 163% - - - 147 56 163% 147 56 163% Protection - - - 1 1 0% 1 1 0% 7 7 0% Offshore Products 179 127 41% 1 1 0% 180 128 41% 185 131 41% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Retail Retirement 1,110 1,044 6% 24 20 20% 1,134 1,064 7% 1,233 1,128 9% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Corporate Pensions 93 46 102% 25 28 (11%) 118 74 59% 180 149 21% Other Products 40 49 (18%) 5 6 (17%) 45 55 (18%) 57 71 (20%) DWP Rebates 103 129 (20%) - - - 103 129 (20%) 103 129 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Mature Life and 236 224 5% 30 34 (12%) 266 258 3% 340 349 (3%)Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Retail 1,346 1,268 6% 54 54 0% 1,400 1,322 6% 1,573 1,477 6% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Wholesale Annuities 1 3 (67%) - - - 1 3 (67%) 1 3 (67%) Credit Life 3 10 (70%) - - - 3 10 (70%) 3 10 (70%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total UK Insurance 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 1,577 1,490 6%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 590 (9%) 49 47 4% 583 637 (8%) 740 773 (4%) Intermediated 708 549 29% 5 7 (29%) 713 556 28% 730 575 27% Wholesale 5 13 (62%) - - - 5 13 (62%) 5 13 (62%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Sub-Total 1,247 1,152 8% 54 54 0% 1,301 1,206 8% 1,475 1,361 8% DWP Rebates 103 129 (20%) - - - 103 129 (20%) 103 129 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total UK Insurance 1,350 1,281 5% 54 54 0% 1,404 1,335 5% 1,577 1,490 6%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ US Insurance Operations Fixed Annuities 193 134 44% - - - 193 134 44% 193 134 44% Fixed Index Annuities 98 109 (10%) - - - 98 109 (10%) 98 109 (10%) Variable Annuities 900 1,050 (14%) - - - 900 1,050 (14%) 900 1,050 (14%) Life 2 2 0% 5 4 25% 7 6 17% 42 36 17% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Sub-Total Retail 1,193 1,295 (8%) 5 4 25% 1,198 1,299 (8%) 1,233 1,329 (7%) Guaranteed Investment 405 132 207% - - - 405 132 207% 405 132 207%Contracts GIC - Medium Term Note - 335 - - - - - 335 - - 335 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total US Insurance 1,598 1,762 (9%) 5 4 25% 1,603 1,766 (9%) 1,638 1,796 (9%)Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Asian Insurance Operations China 19 6 217% 7 11 (36%) 26 17 53% 64 57 12% Hong Kong 152 102 49% 39 26 50% 191 128 49% 379 247 53% India 7 12 (42%) 88 56 57% 95 68 40% 355 235 51% Indonesia 44 16 175% 36 20 80% 80 36 122% 187 81 131% Japan 38 30 27% 18 7 157% 56 37 51% 123 60 105% Korea 26 27 (4%) 56 52 8% 82 79 4% 291 279 4% Malaysia 7 2 250% 14 14 0% 21 16 31% 87 83 5% Singapore 205 103 99% 17 15 13% 222 118 88% 326 194 68% Taiwan 21 36 (42%) 33 33 0% 54 69 (22%) 169 186 (9%) Other 4 7 (43%) 15 9 67% 19 16 19% 48 36 33% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Asian Insurance 523 341 53% 323 243 33% 846 584 45% 2,029 1,458 39%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Group Total 3,471 3,384 3% 382 301 27% 3,853 3,685 5% 5,244 4,744 11% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Schedule 6 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2008 VERSUS QUARTER 4 2007 INSURANCE OPERATIONS Single Regular Total PVNBP Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) Q1 2008 Q 4 +/-(%) 2007 2007 2007 2007 £m £m £m £m £m £m £m £mUK Insurance Operations Product Summary Internal Vesting annuities 322 369 (13%) - - - 322 369 (13%) 322 369 (13%) Direct and Partnership 176 184 (4%) - - - 176 184 (4%) 176 184 (4%)Annuities Intermediated Annuities 137 140 (2%) - - - 137 140 (2%) 137 140 (2%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Individual Annuities 635 693 (8%) - - - 635 693 (8%) 635 693 (8%) Equity Release 51 48 6% - - - 51 48 6% 51 48 6% Individual Pensions 14 11 27% - - - 14 11 27% 15 13 15% Corporate Pensions 46 162 (72%) 22 26 (15%) 68 188 (64%) 155 354 (56%) Unit Linked Bonds 38 43 (12%) - - - 38 43 (12%) 38 43 (12%) With-Profit Bonds 147 114 29% - - - 147 114 29% 147 114 29% Protection - - - 1 2 (50%) 1 2 (50%) 7 6 17% Offshore Products 179 129 39% 1 1 0% 180 130 38% 185 135 37% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Retail Retirement 1,110 1,200 (8%) 24 29 (17%) 1,134 1,229 (8%) 1,233 1,406 (12%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Corporate Pensions 93 30 210% 25 29 (14%) 118 59 100% 180 135 33% Other Products 40 47 (15%) 5 5 0% 45 52 (13%) 57 70 (19%) DWP Rebates 103 14 636% - - - 103 14 636% 103 14 636% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Mature Life and 236 91 159% 30 34 (12%) 266 125 113% 340 219 55%Pensions ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Retail 1,346 1,291 4% 54 63 (14%) 1,400 1,354 3% 1,573 1,625 (3%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Wholesale Annuities 1 1,754 (100%) - - - 1 1,754 (100%) 1 1,754 (100%) Credit Life 3 4 (25%) - - - 3 4 (25%) 3 4 (25%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total UK Insurance 1,350 3,049 (56%) 54 63 (14%) 1,404 3,112 (55%) 1,577 3,383 (53%)Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Channel Summary Direct and Partnership 534 648 (18%) 49 58 (16%) 583 706 (17%) 740 957 (23%) Intermediated 708 627 13% 5 5 0% 713 632 13% 730 651 12% Wholesale 5 1,760 (100%) - - - 5 1,760 (100%) 5 1,760 (100%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Sub-Total 1,247 3,035 (59%) 54 63 (14%) 1,301 3,098 (58%) 1,475 3,368 (56%) DWP Rebates 103 14 636% - - - 103 14 636% 103 14 636% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total UK Insurance 1,350 3,049 (56%) 54 63 (14%) 1,404 3,112 (55%) 1,577 3,383 (53%)Operations US Insurance Operations Fixed Annuities 193 152 27% - - - 193 152 27% 193 152 27% Fixed Index Annuities 98 104 (6%) - - - 98 104 (6%) 98 104 (6%) Variable Annuities 900 1,137 (21%) - - - 900 1,137 (21%) 900 1,137 (21%) Life 2 2 0% 5 6 (17%) 7 8 (13%) 42 54 (22%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Sub-Total Retail 1,193 1,395 (14%) 5 6 (17%) 1,198 1,401 (14%) 1,233 1,447 (15%) Guaranteed Investment 405 148 174% - - - 405 148 174% 405 148 174%Contracts GIC - Medium Term Note - (4) - - - - - (4) - - (4) - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total US Insurance 1,598 1,539 4% 5 6 (17%) 1,603 1,545 4% 1,638 1,591 3%Operations Asian Insurance Operations China 19 17 12% 7 7 0% 26 24 8% 64 66 (3%) Hong Kong 152 178 (15%) 39 35 11% 191 213 (10%) 379 424 (11%) India 7 6 17% 88 53 66% 95 59 61% 355 219 62% Indonesia 44 53 (17%) 36 38 (5%) 80 91 (12%) 187 192 (3%) Japan 38 40 (5%) 18 6 200% 56 46 22% 123 66 86% Korea 26 60 (57%) 56 61 (8%) 82 121 (32%) 291 284 2% Malaysia 7 21 (67%) 14 29 (52%) 21 50 (58%) 87 186 (53%) Singapore 205 168 22% 17 21 (19%) 222 189 17% 326 326 0% Taiwan 21 33 (36%) 33 36 (8%) 54 69 (22%) 169 151 12% Other 4 15 (73%) 15 22 (32%) 19 37 (49%) 48 78 (38%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Total Asian Insurance 523 591 (12%) 323 308 5% 846 899 (6%) 2,029 1,992 2%Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______Group Total 3,471 5,179 (33%) 382 377 1% 3,853 5,556 (31%) 5,244 6,966 (25%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ INVESTMENT OPERATIONS Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows £m £m £m £m £m £m £m £m M&G Q1 2008 51,221 3,340 (2,782) 558 24 (1,664) (1,082) 50,139 Q4 2007 49,907 3,933 (2,568) 1,365 (123) 72 1,314 51,221 +/-(%) 3% (15%) (8%) (59%) 120% (2,411%) (182%) (2%) Asia Retail Mutual Funds Q1 2008 16,277 11,407 (10,801) 606 (201) (1,639) (1,234) 15,043 Q4 2007 15,120 10,842 (10,346) 496 (125) 786 1,157 16,277 +/-(%) 8% 5% (4%) 22% (61%) (309%) (207%) (8%) Asia Third Party Q1 2008 1,116 4 (73) (69) - (88) (157) 959 Q4 2007 980 167 (76) 91 - 45 136 1,116 +/-(%) 14% (98%) 4% (176%) - (296%) (215%) (14%) US Retail Mutual Funds Q1 2008 55 17 (9) 8 1 (5) 4 59 Q4 2007 32 27 (2) 25 - (2) 23 55 +/-(%) 72% (37%) (350%) (68%) - (150%) (83%) 7% Total Investment Products Q1 2008 68,669 14,768 (13,665) 1,103 (176) (3,396) (2,469) 66,200 Q4 2007 66,039 14,969 (12,992) 1,977 (248) 901 2,630 68,669 +/-(%) 4% (1%) (5%) (44%) 29% (477%) (194%) (4%) Schedule 7 Jackson's securities classified as available-for-sale under IAS 39* Jackson's portfolio of debt securities is managed proactively: 21 creditanalysts closely and regularly monitor and report on the credit quality of itsholdings. Jackson continues to review its investments on a case-by-case basis todetermine whether any decline in fair value represents an other-than-temporaryimpairment. At 31 March for all securities for which there was a temporaryimpairment recorded, management has the ability and intent to hold for thelonger-term. In the first quarter of 2008, Jackson recorded £24 million ofother-than-temporary impairment losses of which £11 million related to Alt-Aholdings. This is more than the normalised risk margin charge (RMR) to operatingprofits based on longer-term investment returns of £12 million. For Jackson's securities classified as available-for-sale under IAS 39, at 31March there was a net unrealised loss position of £459 million. This amountcomprised £335 million of gross unrealised gains and £794 million of grossunrealised losses on individual securities. Included within the grossunrealised losses is £257 million for securities which are valued at less than80 per cent of book value. For securities valued at less than 80 per cent ofbook value, 89 per cent are investment grade. 97 per cent of the securitiesvalued at less than 80 per cent of book value have been at this level for lessthan 6 months. Notes 1) Movements in the values at quarter 1 2008: 31 March 2008 Change reflected directly in 31 December 2007 shareholders' equity £m £m £m______________________________________________________________________________________________________________________Assets fair valued at below book valueBook value 11,345 10,730Unrealised loss (794) (355) (439)_____________________________________________________________ __________________Fair value (as included in balance sheet) 10,551 10,291_____________________________________________________________ __________________Assets fair valued at or above book valueBook value 7,882 8,041Unrealised gain 335 32 303_____________________________________________________________ __________________Fair value (as included in the balance sheet) 8,217 8,344_____________________________________________________________ __________________TotalBook value 19,227 18,771Net unrealised (loss) gain (459) (323) (136)_____________________________________________________________ __________________Fair value (as included in balance sheet) 18,768 18,635_____________________________________________________________ __________________ 2) Debt securities in an unrealised loss position The following table shows the fair value of the securities in a gross unrealisedloss position for various percentages of book value: Fair value Unrealised loss Fair value Unrealised loss 31 March 2008 31 March 2008 31 December 2007 31 December 2007 £m £m £m £m______________________________________________________________________________________________________________________Between 90% and 100% 8,232 (278) 9,370 (274)Between 80% and 90% 1,601 (259) 784 (122)Below 80% 718 (257) 137 (43)______________________________________________________________________________________________________________________ 10,551 (794) 10,291 (439)______________________________________________________________________________________________________________________ 3) Subprime and Alt-A exposures As at 31 March, Jackson held £219 million in subprime exposure and £0.6 billionin Alt-A exposure. This subprime exposure, which is primarily fixed rate withfirst lien collateral, is all investment grade and 96 per cent AAA rated. TheAlt-A exposure is 79 per cent AAA rated. With an average FICO score of 610-620Jackson's subprime collateral could be categorised as "near prime" with a scoreclose to a prime score of 660. * The majority of Jackson's debt securities are classified asavailable-for-sale under IAS 39. Under this classification, unless other thantemporarily impaired or sold, changes in value on these securities are recordedas a movement directly in shareholders' equity rather than in the incomestatement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Prudential