18th May 2006 11:00
Prudential PLC18 May 2006 FOR IMMEDIATE RELEASE: 11am Thursday 18 May 2006 PRUDENTIAL PLC - ANNUAL GENERAL MEETING At this morning's AGM, Prudential plc Chairman Sir David Clementi highlightedthe strong performance of the Group and confirmed his confidence in itsprofitable growth prospects. Sir David explained that the strategic review by Group Chief Executive MarkTucker had brought greater clarity and focus to Prudential's longer term plansand capital management programme, enabling it to map out the steps needed todrive further growth and deliver long-term value for shareholders. Speaking to shareholders at the Mermaid Centre in London, Sir David said: "Thefigures for 2005 represent a very strong set of results by the Group." Sir David added: "We believe we are well placed, with the businessopportunities, the management depth and the capital strength to continue toexpand profitably our operations around the globe, and we are confident aboutour ability to generate further growth in the value of your company." Group Chief Executive Mark Tucker added that he would continue to embed aperformance culture within the Group that will support its focus on the deliveryof plans for profitable growth. "The Group has an unrivalled exposure to the high growth, high return Asianmarkets. We have a powerful and growing presence across the region, with topfive market positions in eight out of 12 life insurance markets in which weoperate, 170,000 agents and over 40 banking relationships. "We will continue to develop our distribution capability to meet our challenginggrowth targets. As we have said before, the region as a whole will be cashpositive in 2006 while continuing its strong growth. "We are exceptionally well placed in the US market. The US business willmaintain its clear focus on the pre and post retirement markets where it hasdeveloped an excellent position. We will also look to develop the businessthrough bolt-on acquisitions where they meet our required returns. "In the UK in 2005, we grew new business by 10 per cent, but even moreimportantly retained good margins, reaching our 2007 target internal rate ofreturn of 14 per cent two years early in spite of intensified competition insome segments of the market. We will compete where we feel that we can achieveour targeted returns and in areas where we have or can develop competitiveadvantage. "We will also benefit from bringing Egg back fully into the Group. Retailbanking profits were down although we did make good progress on net interestmargin and costs. Conditions in the unsecured lending market remained difficultin the first quarter of 2006. "Performance in asset management was very strong in 2005, with net inflowsincreasing significantly in the UK through M&G and in Asia, particularly fromJapan and Korea. The quality and diversity of these businesses is clear when youconsider that they have doubled profits between 2001 and 2005." Mr Tucker concluded: "Prudential is a high growth, high return business and wehave got strong momentum behind us. We've got the capital and cash to fund ourgrowth plans and I see significant scope for increasing value for shareholders." -ENDS- Enquiries: Media Investors / analysts Jon Bunn 020 7548 3559 James Matthews 020 7548 3561William Baldwin-Charles 020 7548 3719 Marina Novis 020 7548 3511Joanne Doyle 020 7548 3708 Notes to Editor: A full transcript of Sir David Clementi and Mark Tucker's speeches andpresentation to shareholders can be found on the Prudential plc website atwww.prudential.co.uk About Prudential Prudential plc is a leading international financial services group, providingretail financial services and fund management in its chosen markets: the UnitedKingdom, the United States, Asia and continental Europe. Prudential has been writing life insurance in the United Kingdom for over 150years and has had the largest long-term fund in the United Kingdom for over acentury. Today, Prudential has over 16 million customers worldwide and over £234billion (as of 31 December 2005) of funds under management. In the United Kingdom Prudential is a leading life and pensions provideroffering a range of retail financial products. M&G is Prudential's UK &European Fund Manager, with around £149 billion of funds under management (asof 31 December 05). Jackson National Life, acquired by Prudential in 1986, is aleading provider of long-term savings and retirement products to retail andinstitutional customers throughout the United States. Egg provides banking,insurance and investment products through its internet site www.egg.com. Prudential is the leading European-based life insurer in Asia with operations in12 markets as well as funds management businesses in 9 of those 12 markets. *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 150 years and has £234 billion inassets under management, (as at 31 December 2005). 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. Bytheir 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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