25th Jan 2006 07:01
Prudential PLC25 January 2006 Embargo: 7.00am 25 January 2006 PRUDENTIAL PLC FULL YEAR 2005 NEW BUSINESS RESULTS Double-digit growth across all businesses • Total Group Insurance APE sales of £2.15 billion, up 15 per cent on 2004 • Jackson National Life's (JNL) APE sales of £515 million, up 13 per cent on 2004 • APE sales at Prudential Corporation Asia of £732 million, up 23 per cent on 2004 • Prudential UK and Europe APE sales of £900 million, up 10 per cent on 2004 • M&G had record gross fund inflows of £7.9 billion, up 35 per cent on 2004 All comparisons above and in the narrative below are quoted at constant exchangerates (CER). See Notes to Editors for further details. Commenting, Mark Tucker, Group Chief Executive said: "All our businesses continued to grow strongly, with double-digit year-on-yearpercentage sales gains across the board. "JNL, our US business, has maintained healthy growth with total sales up 13 percent on 2004. Variable annuity sales are ahead 31 per cent from 2004 in what webelieve will be a flat market, with Perspective II being the second best-sellingVA product in the US in terms of net flows. At the nine month stage, marketshare in variable annuities had risen to 3.5 per cent from 2.8 per cent at Q32004. "In Asia, full year APE sales were up 23 per cent on 2004. Fourth quarter salesof £219 million were 16 per cent ahead of the same quarter in 2004 which was, initself, a very strong quarter. "In the UK and Europe, APE sales were £900 million, an increase of 10 per centon last year. Fourth quarter sales on an APE basis of £200 million were 26 percent ahead of the third quarter with a strong quarter for corporate pensions inparticular but also stronger bond and individual annuity sales. "Both M&G and our Asian Fund Management business have grown their third partyfunds under management strongly in 2005. "M&G saw the strongest retail sales in its history with £3.8 billion of grossinflows and significant increases in equity and property sales, whilemaintaining its leading position in fixed income. Institutional sales were £4.1billion. Overall M&G saw net inflows of £3.9 billion, up from £2 billion in2004. "Our Japanese and Korean asset management businesses each saw net inflows ofmore than £900 million. Total third party funds under management in Asia were£10.1 billion, up 29 per cent on a comparable basis." Commentary on Full Year 2005 New Business Results UK and Europe Insurance Operations Prudential UK and Europe finished 2005 strongly with fourth quarter APE sales up26 per cent on the third quarter. APE sales for the full-year increased by 10per cent on 2004 to £900 million. Bulk annuity sales were a significant driver of growth, with APE sales of £203million up 28 per cent on 2004. This included the Phoenix Life & Pensionstransaction announced in June 2005 which contributed £145 million to thefull-year result. APE sales of individual annuities were up 2 per cent on 2004 at £222 million,driven by strong sales through the Partnerships and Direct to Consumer channelswhich increased by 114 per cent and 14 per cent respectively. Despite APE salesof with-profit annuities through the Intermediaries channel increasing 100 percent year-on-year, total individual annuities sales through this channeldecreased 15 per cent reflecting the very competitive pricing environmentthroughout much of the year. Prudential has maintained a leading position in theannuities market and has reached agreement for an additional two new partnershiparrangements, which will start to generate new business sales in 2006. Prudential launched a distribution partnership with Openwork in November underwhich Openwork's 2,200 advisers will sell Prudential's range of conventional,with-profits and impaired life annuities to their customers on an exclusivebasis. Openwork was previously known as Zurich Advice Network and wasre-launched as a new multi-tie distribution company in June 2005. In December, Prudential and Royal London entered into an agreement under whichall pension annuities arising from vestings of policies written under theScottish Life brand in the period between January 2005 and December 2010 will bereassured by Prudential as they come into payment. Scottish Life (a division ofRoyal London) will continue to pay the annuitants with Prudential reimbursingthe annuity payments to Scottish Life. This arrangement supplements theagreement reached between Prudential and Royal London in December 2004 inrelation to Scottish Life's in-payment annuities book. APE sales of unit-linked bonds increased 31 per cent to £64 million, reflectingPrudential's growing presence in the IFA unit-linked bond market. This offsetthe year-on-year decrease in with-profit bond sales which fell 31 per cent. Despite the contraction seen in the corporate pensions market earlier in theyear, there was an up-turn in corporate pensions APE sales in the fourth quarterof 2005 which increased 94 per cent on the third quarter. APE sales for thefull-year increased 5 per cent on 2004, driven by 83 new scheme wins and byPrudential's worksite marketing capability which led to a significant increasein the number of new entrants to existing schemes. Prudential UK and Europe has made a good start to 2006. Earlier this month,Prudential reached agreement with Royal London to acquire the portfolio ofin-payment pension annuities that had been written primarily under the RoyalLondon brand, but which also included some annuities written under the RefugeAssurance brand. Refuge Assurance was acquired by Royal London as part of theUnited Assurance Group in 2001. The book covers approximately 59,000 policies (weighted average age 66 with nodeferred annuities) with assets of around £650 million and will generate premiumincome of around £65 million on an APE basis in 2006 (see Notes to Editors forfurther details). This is the third in-force annuity book acquisition Prudentialhas completed since December 2004, with combined assets of over £3 billion. Prudential UK & Europe will continue to pursue profitable opportunities in itschosen product areas and distribution channels. M&G M&G delivered record gross fund inflows of £7.9 billion during 2005, an increaseof 35 per cent on the same period last year, reflecting the strengths of itsdiversified product offering in the areas of retail fund management,institutional fixed income, pooled life and pension funds, property and privatefinance. Net fund inflows also grew significantly, almost doubling to £3.9billion. External funds under management, which represent a quarter of M&G'stotal funds, rose by 26 per cent to £36 billion. M&G's gross retail fund inflows of £3.8 billion were its highest ever and nearlydouble the previous year. Net retail fund inflows totalled £1.3 billion, morethan triple those in 2004. In the UK, M&G significantly increased its sales ofequity funds on the back of strong fund performance, which saw 92 per cent offunds beating their sector average over three years. In addition, M&G continuedto see strong fund inflows into property and successfully maintained its leadingposition in fixed income. M&G International, which sells funds in Germany,Austria, Italy, Luxembourg and Switzerland, continued to experience very stronggrowth by more than tripling its funds under management last year. In M&G'sSouth African business, market leading products led to a doubling of retailfunds under management. M&G's institutional business also saw strong growth in the areas of privatefinance and property. In private finance, the leveraged loan business continuedto grow and in August M&G broke new ground with the launch of Europe's firstpure leveraged loan fund, the M&G European Loan Fund. During the year, M&Gcontinued the success of its Collateralised Debt Obligation programme with thelaunch of five new CDOs in 2005. In property, the continued development ofexternal vehicles managed by Prudential Property Investment Managers (PruPIM)for third party clients delivered strong fund inflows. Gross fund inflows acrossM&G's institutional businesses totalled £4.1billion, with net fund inflowsgrowing 59 per cent to £2.5 billion. Jackson National Life Jackson National Life's (JNL) full year APE sales of £515 million represented a13 per cent increase on the 2004 result, driven by increased sales of variableannuities, fixed index annuities and institutional product sales. Retail APEsales for the year of £416 million were up 12 per cent on 2004. JNL delivered record variable annuity sales during 2005 of £261 million, up 31per cent on last year, reflecting JNL's clearly differentiated productstructure, distribution proposition and service offering. Total sales ofvariable annuities exceeded $1 billion in each quarter of 2005, with sales ineach consecutive quarter surpassing the last. This result was achieved against aflat variable annuity market through the first nine months of 2005 and reflectsJNL's continued success in product innovation and its relationship-baseddistribution strategy. For the first nine months of the year, JNL had a top five market position interms of variable annuity net flows and JNL's flagship unbundled annuity product"Perspective II" was the second-best selling variable annuity product in themarket in terms of net flows. The rate of take up of the fixed account optioncontinued to decline, with only 20 per cent of the variable annuity premiumgoing into the fixed accounts compared with 29 per cent in 2004. Fixed annuity APE sales of £79 million were down 31 per cent on 2004, reflectingthe continued low interest rates and flat yield curve in the US, which havelimited customers' demand for this product. JNL continues to pursue profitablegrowth and hence has been unwilling to compromise entry spreads in this market.JNL was ranked the tenth largest provider of fixed annuities during the firstnine months of 2005. Fixed index annuity APE sales of £62 million were up 44 per cent on 2004,reflecting customers' increasing preference for products with the potential forhigher returns linked to equity index performance. JNL has benefited from itsapproach to educating broker dealers about a complex product; while at the sametime offering lower commissions and passing the benefit to the end consumer. JNLwas ranked the eighth largest provider of fixed index annuities for the firstnine months of 2005, improving from ninth for the full year 2004. Life APE sales of £15 million were up 7 per cent on 2004. JNL substantiallycompleted the integration of Life Insurance Company of Georgia's operations atthe end of 2005, having converted 1.5 million policies onto its platform. Curian Capital provides innovative fee based separately managed accounts andcontinues to build a strong position with total assets under management at theend of 2005 of $1.67 billion (£973 million) compared with $1.06 billion (£615million) at the start of 2005. Institutional APE sales of £99 million were up 15 per cent on 2004. JNL tookadvantage of attractive issuance opportunities as they have arisen during theyear, and will continue to participate in this market on an opportunistic basis. In 2006, as the first of the Baby Boomer generation begins to turn 60, themedian retirement age in the US, Jackson is well positioned in the financialadvice distribution channels with product platforms that offer valuableretirement income guarantees. We remain optimistic about the opportunities forJNL in the US market. Prudential Corporation Asia Insurance Operations Prudential's Asian life operations had a good fourth quarter in 2005 with APEsales up 16 per cent compared to the same quarter in 2004 and 11 per centcompared to third quarter in 2005. For the full year 2005 APE sales of £732million represent an increase of 23 per cent compared to 2004 and reflect thesuccess of Prudential's dynamic business model in the region coupled with Asia'sinherent growth potential. Prudential Asia's established markets of Malaysia, Singapore and Hong Kongcollectively delivered growth of 12 per cent for 2005 compared to 2004.Singapore delivered a 26 per cent increase in APE sales driven by broadening ofits unit linked range and increased bank distribution. Prudential's Hong Kongoperation delivered a respectable growth of 7 per cent despite some marketsoftness, particularly in bank distribution. Prudential's Malaysian operationsaw growth of 6 per cent in 2005 with sales activity slowing in the second halfof the year as agents adjusted to new quotation requirements for linkedproducts. In Taiwan, Prudential remains focused on writing profitable and capitalefficient business rather than pursuing pure volume. Although 2005 APE volumesof £162 million were broadly in line with 2004 levels, the proportion of linkedbusiness in the mix increased from 49 per cent in 2004 to 72 per cent for 2005principally from the investment focused pension product launched earlier thisyear. The CITIC-Prudential joint venture in China continues to make excellent progressas it extended its geographic coverage and ten cities are now operational. APEsales of £25 million were up 47 per cent in 2005. Prudential's Indian life joint venture, ICICI-Prudential Life, had another verysuccessful year with Prudential's 26 per cent share APE at £57 million up 63 percent on 2004 driven by ongoing expansion. The business now has 74 branches andhas grown agent numbers by 36 per cent during the year to 70,000. The multi-channel distribution model in Korea continues to perform strongly withAPE sales of £135 million, up 88 per cent, driven mainly by success in the tiedfinancial advisor and general agency channels and the continued appeal of ouruniversal life product. In Indonesia, Prudential celebrated its 10th anniversary and has continued tostrengthen its position with APE sales of £46 million in the year, up 53 percent compared to 2004, driven principally by a doubling of agents during theyear to 22,000. Prudential's other life operations in Thailand, the Philippines, Japan andVietnam collectively decreased by 13 per cent in 2005 to £41 million largely dueto Vietnam. Fund Operations Net third party inflows of £1.3 billion were up 3 per cent on 2004. Strong netinflows in Japan of £905 million and Korea of £926 million were offset by netoutflows in Taiwan of £745 million where the bond fund market remains unsettled.Prudential Asset Management has had considerable success in increasing itsproportion of equity funds in the flows with these representing 80 per cent ofnet inflows in 2005 compared to 22 per cent in 2004. This has been drivenprincipally by good equity fund performance, particularly in Korea where allfunds are in the top two quartiles. Total third party funds under management were £10.1 billion, up 13 per cent on2004. In August last year, ICICI increased its stake in Prudential's India assetmanagement joint venture from 45 per cent to 51 per cent. As a result,Prudential no longer consolidates this business at 100 per cent and the year endnumbers are reported at 49 per cent, resulting in a £1.1 billion reduction infunds under management for the year. On a comparable basis, full year 2005 fundsunder management grew 29 per cent on 2004. Prudential remains confident of its ability to grow its life and fundsmanagement businesses strongly and profitably in Asia. - ENDS - Enquiries: Media Investors / analystsJon 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 Editors 1. Annual premium equivalent (APE) sales comprise regular premium sales plus one-tenth of single premium insurance sales and are subject to roundings. 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 FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%) £m £m £m £mUK & Europe 900 817 10% 900 818 10%US 515 453 14% 515 456 13%Asia 732 576 27% 732 594 23% Total 2,146 1,846 16% 2,146 1,867 15% Gross Inflows Actual exchange rates Constant exchange rates FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%) £m £m £m £mM&G 7,916 5,845 35% 7,916 5,845 35%Asia 18,457 19,068 (3%) 18,457 19,906 (7%) Total 26,373 24,913 6% 26,373 25,751 2% Total Insurance and Investment New Business Actual exchange rates Constant exchange rates FY 2005 FY 2004 +/-(%) FY 2005 FY 2004 +/-(%) £m £m £m £mInsurance 13,784 12,130 14% 13,784 12,191 13%Investment 26,373 24,913 6% 26,373 25,751 2% Total 40,157 37,043 8% 40,157 37,943 6% 3. Prudential is initially providing reassurance to Royal London, which will continue to pay the annuitants with Prudential reimbursing the annuity payments to Royal London. During 2006, the intention is for these annuity policies to transfer to Prudential, subject to legal and regulatory approvals, at which point Prudential will take over direct responsibility for the payment of all annuitants. 4. For JNL market share data is provided for the first nine months of the year being the latest available. Variable annuity data is sourced from VARDS, fixed annuity data is sourced from LIMRA and fixed index annuities data is sourced from The Advantage Group. 5. There will be a conference call today for wire services at 7.45am (GMT) hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance Director. Dial in telephone number: +44 (0)20 8609 0793. Passcode: 155439# 6. There will be a conference call for investors and analysts at 9.30am (GMT) hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance Director. Dial in telephone number +44 (0)20 8609 0793. Pin number 487687#. A recording of this call will be available for replay for one week by dialling: +44 (0)20 8609 0289 from the UK or +1 866 676 5865 from the US. The conference reference number is 136838. 7. High resolution photographs are available to the media free of charge at www.newscast.co.uk (+44 (0) 207 608 1000). 8. Total number of Prudential plc shares in issue as at 31st December 2005 was 2,386,784,266. 9. Financial Calendar 2005-2006: Full Year 2005 Results 16th March 2006 Q1 New Business Figures 20th April 2006 AGM 18th May 2006 Interim Results 28th July 2006 Q3 New Business Figures 19th October 2006 10. Egg results will be announced on March 16th 2006 as part of the Prudential Plc results announcement. *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 £214 billion inassets under management, (as at 27 July 2005). Prudential plc is not affiliatedin any manner with Prudential Financial, Inc, a company whose principal place ofbusiness 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. Schedule 1A - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2005 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1a) Asia (1a) Total +/- +/- +/- +/- FY FY (%) FY FY (%) FY FY (%) FY FY (%) 2005 2004 2005 2004 2005 2004 2005 2004 £m £m £m £m £m £m £m £m Total Insurance Products 7,276 6,539 11% 5,023 4,451 13% 1,485 1,201 24% 13,784 12,191 13%Total Investment Products -Gross Inflows (2) 7,916 5,845 35% - - - 18,457 19,906 (7%) 26,373 25,751 2% Group Total 15,192 12,384 23% 5,023 4,451 13% 19,942 21,108 (6%) 40,157 37,943 6% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY FY +/- FY FY +/- FY FY +/- FY FY +/- 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) £m £m £m £m £m £m £m £m UK InsuranceOperations :Direct toCustomer:Individual Pensions 12 8 50% 8 8 0% 20 16 25% 9 9 0%Life - With Profit Bond 15 11 36% 1 1 0% 16 12 33% 3 2 50% Life - Other 2 - - 2 1 100% 4 1 300% 2 1 100%Individual Annuities 720 630 14% - - - 720 630 14% 72 63 14% Sub-Total 749 649 15% 11 10 10% 760 659 15% 86 75 15% DWP Rebates 244 265 (8%) - - - 244 265 (8%) 24 27 (11%) Total 993 914 9% 11 10 10% 1,004 924 9% 110 101 9% Business toBusiness:Corporate Pensions 242 153 58% 146 137 7% 388 290 34% 170 152 12% Individual Annuities 212 229 (7%) - - - 212 229 (7%) 21 23 (9%) Bulk Annuities 511 474 8% - - - 511 474 8% 51 47 9% Total 965 856 13% 146 137 7% 1,111 993 12% 243 223 9% IntermediatedDistribution:Individual Pensions 65 55 18% 18 17 6% 83 72 15% 25 23 9%Corporate Pensions 43 134 (68%) 7 8 (13%) 50 142 (65%) 11 21 (48%)Life - With Profit Bond 159 231 (31%) - - - 159 231 (31%) 16 23 (30%) Life - Other Bond 947 770 23% - - - 947 770 23% 95 77 23% Life - Other 6 - - 6 5 20% 12 5 140% 7 5 40%Individual Annuities 995 1,180 (16%) - - - 995 1,180 (16%) 100 118 (15%) Sub-Total 2,215 2,370 (7%) 31 30 3% 2,246 2,400 (6%) 253 267 (5%) DWP Rebates 83 89 (7%) - - - 83 89 (7%) 8 9 (11%) Total 2,298 2,459 (7%) 31 30 3% 2,329 2,489 (6%) 261 276 (5%) Partnerships:Life - With Profit Bond - 3 - - - - - 3 - - 0 - Life - Other 814 787 3% 3 2 50% 817 789 4% 84 81 4%Individual Annuities 295 141 109% - - - 295 141 109% 30 14 114% Bulk Annuities 1,519 1,108 37% - - - 1,519 1,108 37% 152 111 37% Total 2,628 2,039 29% 3 2 50% 2,631 2,041 29% 266 206 29% Total:Individual Pensions 77 63 22% 26 25 4% 103 88 17% 34 31 10%Corporate Pensions 285 287 (1%) 153 145 6% 438 432 1% 182 174 5% Life - With Profit Bond 174 245 (29%) 1 1 0% 175 246 (29%) 18 26 (31%) Life - Other Bond 947 770 23% - - - 947 770 23% 95 77 23% Life - Other 822 787 4% 11 8 38% 833 795 5% 93 87 7% Individual Annuities 2,222 2,180 2% - - - 2,222 2,180 2% 222 218 2% Bulk Annuities 2,030 1,582 28% - - - 2,030 1,582 28% 203 158 28% Sub-Total 6,557 5,914 11% 191 179 7% 6,748 6,093 11% 847 770 10% DWP Rebates 327 354 (8%) - - - 327 354 (8%) 33 35 (6%) Total UK InsuranceOperations 6,884 6,268 10% 191 179 7% 7,075 6,447 10% 879 806 9% EuropeanInsuranceOperations :(1a)Insurance Products 201 89 126% - 3 - 201 92 118% 20 12 67%Total European Insurance Operations 201 89 126% - 3 - 201 92 118% 20 12 67% Total UK & EuropeanInsuranceOperations 7,085 6,357 11% 191 182 5% 7,276 6,539 11% 900 818 10% US InsuranceOperations :(1a) Fixed Annuities 788 1,138 (31%) - - - 788 1,138 (31%) 79 114 (31%) Fixed Index Annuities 616 432 43% - - - 616 432 43% 62 43 44% Variable Annuities 2,605 1,995 31% - - - 2,605 1,995 31% 261 200 31% Life (9) 11 16 (31%) 14 12 17% 25 28 (11%) 15 14 7% Sub-total Retail 4,020 3,581 12% 14 12 17% 4,034 3,593 12% 416 370 12% Guaranteed 355 181 96% - - - 355 181 96% 36 18 100%InvestmentContractsGIC - Medium Term Note 634 677 (6%) - - - 634 677 (6%) 63 68 (7%) Total US InsuranceOperations 5,009 4,439 13% 14 12 17% 5,023 4,451 13% 515 456 13% AsianInsuranceOperations :(1a) China 17 9 89% 23 16 44% 40 25 60% 25 17 47% Hong Kong 289 258 12% 83 79 5% 372 337 10% 112 105 7% India (@26%)(6) 4 5 (20%) 57 34 68% 61 39 56% 57 35 63% Indonesia 42 35 20% 42 26 62% 84 61 38% 46 30 53% Japan 30 17 76% 4 7 (43%) 34 24 42% 7 729 (22%) Korea 29 41 (29%) 132 68 94% 161 109 48% 135 72 88% Malaysia 9 7 29% 66 62 6% 75 69 9% 67 63 6% Singapore 284 203 40% 58 48 21% 342 251 36% 86 68 26% Taiwan 124 92 35% 150 149 1% 274 241 14% 162 158 3% Other (4) 9 8 13% 33 37 (11%) 42 45 (7%) 34 38 (11%) Total Asian InsuranceOperations 837 675 24% 648 526 23% 1,485 1,201 24% 732 594 23% Group Total 12,931 11,471 13% 853 720 18% 13,784 12,191 13% 2,146 1,867 15% Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2005 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US(1b) Asia(1b) Total +/- +/- +/- +/- FY FY (%) FY FY (%) FY FY (%) FY FY (%) 2005 2004 2005 2004 2005 2004 2005 2004 £m £m £m £m £m £m £m £m Total InsuranceProducts 7,276 6,538 11% 5,023 4,420 14% 1,485 1,172 27% 13,784 12,130 14%Total InvestmentProducts -Gross Inflows (2) 7,916 5,845 35% - - - 18,457 19,068 (3%) 26,373 24,913 6% Group Total 15,192 12,383 23% 5,023 4,420 14% 19,942 20,240 (1%) 40,157 37,043 8% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY FY +/- FY FY +/- FY FY +/- FY FY +/- 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) £m £m £m £m £m £m £m £m UK InsuranceOperations :Direct toCustomer: Individual Pensions 12 8 50% 8 8 0% 20 16 25% 9 9 0%Life - With Profit Bond 15 11 36% 1 1 0% 16 12 33% 3 2 50% Life - Other 2 - - 2 1 100% 4 1 300% 2 1 100% Individual Annuities 720 630 14% - - - 720 630 14% 72 63 14% Sub-Total 749 649 15% 11 10 10% 760 659 15% 86 75 15% DWP Rebates 244 265 (8%) - - - 244 265 (8%) 24 27 (11%) Total 993 914 9% 11 10 10% 1,004 924 9% 110 101 9% Business toBusiness: Corporate Pensions 242 153 58% 146 137 7% 388 290 34% 170 152 12% Individual Annuities 212 229 (7%) - - - 212 229 (7%) 21 23 (9%) Bulk Annuities 511 474 8% - - - 511 474 8% 51 47 9% Total 965 856 13% 146 137 7% 1,111 993 12% 243 223 9% IntermediatedDistribution : Individual Pensions 65 55 18% 18 17 6% 83 72 15% 25 23 9% Corporate Pensions 43 134 (68%) 7 8 (13%) 50 142 (65%) 11 21 (48%) Life - With Profit Bond 159 231 (31%) - - - 159 231 (31%) 16 23 (30%) Life - Other Bond 947 770 23% - - - 947 770 23% 95 77 23% Life - Other 6 - - 6 5 20% 12 5 140% 7 5 40% Individual Annuities 995 1,180 (16%) - - - 995 1,180 (16%) 100 118 (15%) Sub-Total 2,215 2,370 (7%) 31 30 3% 2,246 2,400 (6%) 253 267 (5%) DWP Rebates 83 89 (7%) - - - 83 89 (7%) 8 9 (11%) Total 2,298 2,459 (7%) 31 30 3% 2,329 2,489 (6%) 261 276 (5%) Partnerships :Life - With Profit Bond - 3 - - - - - 3 - - 0 - Life - Other 814 787 3% 3 2 50% 817 789 4% 84 81 4% Individual Annuities 295 141 109% - - - 295 141 109% 30 14 114% Bulk Annuities 1,519 1,108 37% - - - 1,519 1,108 37% 152 111 37% Total 2,628 2,039 29% 3 2 50% 2,631 2,041 29% 266 206 29% Total :Individual Pensions 77 63 22% 26 25 4% 103 88 17% 34 31 10%Corporate Pensions 285 287 (1%) 153 145 6% 438 432 1% 182 174 5%Life - With Profit Bond 174 245 (29%) 1 1 0% 175 246 (29%) 18 26 (31%) Life - Other Bond 947 770 23% - - - 947 770 23% 95 77 23% Life - Other 822 787 4% 11 8 38% 833 795 5% 93 87 7% Individual Annuities 2,222 2,180 2% - - - 2,222 2,180 2% 222 218 2% Bulk Annuities 2,030 1,582 28% - - - 2,030 1,582 28% 203 158 28% Sub-Total 6,557 5,914 11% 191 179 7% 6,748 6,093 11% 847 770 10% DWP Rebates 327 354 (8%) - - - 327 354 (8%) 33 35 (6%) Total UK InsuranceOperations 6,884 6,268 10% 191 179 7% 7,075 6,447 10% 879 806 9% EuropeanInsurance Operations :(1b)Insurance Products 201 89 126% - 2 - 201 91 121% 20 11 82%Total European Insurance Operations 201 89 126% - 2 - 201 91 121% 20 11 82% Total UK &EuropeanInsuranceOperations 7,085 6,357 11% 191 181 6% 7,276 6,538 11% 900 817 10% US InsuranceOperations :(1b) Fixed Annuities 788 1,130 (30%) - - - 788 1,130 (30%) 79 113 (30%)Fixed Index Annuities 616 429 44% - - - 616 429 44% 62 43 44% Variable Annuities 2,605 1,981 31% - - - 2,605 1,981 31% 261 198 32% Life (9) 11 16 (31%) 14 12 17% 25 28 (11%) 15 14 7% Sub-total Retail 4,020 3,556 13% 14 12 17% 4,034 3,568 13% 416 368 13%Guaranteed InvestmentContracts 355 180 97% - - - 355 180 97% 36 18 100%GIC - Medium Term Note 634 672 (6%) - - - 634 672 (6%) 63 67 (6%) Total US InsuranceOperations 5,009 4,408 14% 14 12 17% 5,023 4,420 14% 515 453 14% Asian InsuranceOperations :(1b) China 17 9 89% 23 16 44% 40 25 60% 25 17 47% Hong Kong 289 255 13% 83 78 6% 372 333 12% 112 104 8% India (@26%)(6) 4 5 (20%) 57 33 73% 61 38 61% 57 34 68% Indonesia 42 38 11% 42 28 50% 84 66 27% 46 32 44% Japan 30 17 76% 4 7 (43%) 34 24 42% 7 9 (22%) Korea 29 36 (19%) 132 60 120% 161 96 68% 135 64 111% Malaysia 9 7 29% 66 61 8% 75 68 10% 67 62 8% Singapore 284 199 43% 58 47 23% 342 246 39% 86 67 28% Taiwan 124 88 41% 150 143 5% 274 231 19% 162 152 7% Other (4) 9 8 13% 33 37 (11%) 42 45 (7%) 34 38 (11%) Total Asian InsuranceOperations 837 662 26% 648 510 27% 1,485 1,172 27% 732 576 27% Group Total 12,931 11,427 13% 853 703 21% 13,784 12,130 14% 2,146 1,846 16% Schedule 2 PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2005 INVESTMENT OPERATIONS Opening Gross Redemptions Net Other Market & Net Closing FUM inflows inflows movements currency movement FUM movements in FUM £m £m £m £m £m £m £m £m2005 M&G Retail 11,613 3,842 ( 2,497) 1,345 - 1,669 3,014 14,627 Institutional(5) 17,092 4,074 ( 1,557) 2,517 ( 229) 2,189 4,477 21,569 Total M&G (11) 28,705 7,916 ( 4,054) 3,862 ( 229) 3,858 7,491 36,196 Asia India (10) 2,144 10,181 ( 10,034) 147 ( 1,192) 366 ( 679) 1,465 Taiwan 1,797 2,379 ( 3,124) ( 745) - 248 ( 497) 1,300 Korea 1,427 3,529 ( 2,603) 926 ( 21) 471 1,376 2,803 Japan 1,638 1,487 ( 582) 905 - 152 1,057 2,695 Other MutualFundOperations 583 800 ( 604) 196 - 62 258 841 Total AsianMutual FundOperations 7,589 18,376 ( 16,947) 1,429 ( 1,213) 1,299 1,515 9,104 Hong Kong MPFProducts(@36%) (6) 244 79 ( 30) 49 - 44 93 337 Third PartyInstitutionalMandates 705 2 ( 153) ( 151) - 137 ( 14) 691 Total AsiaOther 949 81 ( 183) ( 102) - 181 79 1,028 Total AsianInvestmentOperations (11) 8,538 18,457 ( 17,130) 1,327 ( 1,213) 1,480 1,594 10,132 TotalInvestmentProducts 37,243 26,373 ( 21,184) 5,189 ( 1,442) 5,338 9,085 46,328 Opening Gross Redemptions Net Other Market & Net Closing FUM inflows inflows movements currency movement FUM movements in FUM £m £m £m £m £m £m £m £m2004 M&G Retail 10,144 1,954 ( 1,537) 417 - 1,052 1,469 11,613 Institutional(5) 14,048 3,891 ( 2,304) 1,587 145 1,312 3,044 17,092 Total M&G 24,192 5,845 ( 3,841) 2,004 145 2,364 4,513 28,705 Asia India 2,049 9,129 ( 9,068) 61 ( 21) 55 95 2,144 Taiwan 2,666 5,696 ( 6,550) ( 854) - ( 15) ( 869) 1,797 Korea 933 2,132 ( 1,696) 436 ( 42) 99 493 1,426 Japan 411 1,392 ( 123) 1,269 - ( 42) 1,227 1,638 Other MutualFundOperations 341 422 ( 184) 238 - 4 242 583 Total AsianMutual FundOperations 6,400 18,771 ( 17,621) 1,150 ( 63) 101 1,188 7,588 Hong Kong MPFProducts(@36%) (6) 196 74 ( 26) 48 - - 48 244 Third PartyInstitutionalMandates 552 222 ( 140) 82 - 71 153 705 Total AsiaOther 748 296 ( 166) 130 - 71 201 949 Total AsianInvestmentOperations 7,148 19,067 ( 17,787) 1,280 ( 63) 172 1,389 8,537 TotalInvestmentProducts 31,340 24,912 ( 21,628) 3,284 82 2,536 5,902 37,242 Opening Gross Redemptions Net Other Market & Net Closing FUM inflows inflows movements currency movement FUM movements in FUM % % % % % % % %2005 movementrelative to2004 M&G Retail 14% 97% (62%) 223% - 59% 105% 26% Institutional(5) 22% 5% 32% 59% (258%) 67% 47% 26% Total M&G 19% 35% (6%) 93% (258%) 63% 66% 26% Asia India 5% 12% (11%) 141% (5576%) 565% (815%) (32%) Taiwan (33%) (58%) 52% 13% - 1753% 43% (28%) Korea 53% 66% (53%) 112% 50% 376% 179% 97% Japan 299% 7% (373%) (29%) - 462% (14%) 65% Other MutualFundOperations 71% 90% (228%) (18%) - 1450% 7% 44% Total AsianMutual FundOperations 19% (2%) 4% 24% (1825%) 1186% 28% 20% Hong Kong MPFProducts(@36%) (6) 24% 7% (15%) 2% - - 94% 38% Third PartyInstitutionalMandates 28% (99%) (9%) (284%) - 93% (109%) (2%) Total AsiaOther 27% (73%) (10%) (178%) - 155% (61%) 8% Total AsianInvestmentOperations 19% (3%) 4% 4% (1825%) 760% 15% 19% TotalInvestmentProducts 19% 6% 2% 58% (1859%) 110% 54% 24% US (7) FY 2005 FY 2004 +/- (%) £m £mCurianCapitalExternal FundsunderAdministration 973 615 58% Schedule 3 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2005 VERSES QUARTER 4 2004 INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 £m £m £m £m £m £m £m £m UK InsuranceOperations : Direct toCustomer:IndividualPensions 2 2 0% 2 2 0% 4 4 0% 2 2 - Life - WithProfit Bond 4 2 100% - - - 4 2 100% 0 0 - Life - 2 - - - - - 2 - - 0 - -Other IndividualAnnuities 178 166 7% - - - 178 166 7% 18 17 6% Sub-Total 186 170 9% 2 2 0% 188 172 9% 21 19 11% DWP Rebates 10 13 (23%) - - - 10 13 (23%) 1 1 0% Total 196 183 7% 2 2 0% 198 185 7% 22 20 10% Business toBusiness: CorporatePensions 81 45 80% 54 33 64% 135 78 73% 62 38 63% IndividualAnnuities 61 68 (10%) - - - 61 68 (10%) 6 7 (14%) Bulk Annuities 98 222 (56%) - - - 98 222 (56%) 10 22 (55%) Total 240 335 (28%) 54 33 64% 294 368 (20%) 78 67 16% IntermediatedDistribution: IndividualPensions 15 10 50% 4 1 300% 19 11 73% 6 2 200% CorporatePensions 11 7 57% 1 2 (50%) 12 9 33% 2 3 (33%) Life - WithProfit Bond 40 43 (7%) - - - 40 43 (7%) 4 4 0% Life - OtherBond 265 250 6% - - - 265 250 6% 27 25 8% Life - 2 - - 2 1 100% 4 1 300% 2 1 100%Other IndividualAnnuities 209 326 (36%) - - - 209 326 (36%) 21 33 (36%) Sub-Total 542 636 (15%) 7 4 75% 549 640 (14%) 61 68 (10%) DWP Rebates 3 ( 3) - - - - 3 ( 3) - 0 ( 0) 0% Total 545 633 (14%) 7 4 75% 552 637 (13%) 62 67 (7%) Partnerships: Life - With - - - - - - - - - - - - Profit Bond Life - Other 185 214 (14%) 1 - - 186 214 (13%) 20 21 (5%) IndividualAnnuities 149 53 181% - - - 149 53 181% 15 5 200% Bulk Annuities - 1,108 - - - - - 1,108 - - 111 - Total 334 1,375 (76%) 1 - - 335 1,375 (76%) 34 138 (75%) Total : IndividualPensions 17 12 42% 6 3 100% 23 15 53% 8 4 100% CorporatePensions 92 52 77% 55 35 57% 147 87 69% 64 40 60% Life - WithProfit Bond 44 45 (2%) - - - 44 45 (2%) 4 5 (20%) Life - OtherBond 265 250 6% - - - 265 250 6% 27 25 8% Life - 189 214 (12%) 3 1 200% 192 215 (11%) 22 22 0%Other IndividualAnnuities 597 613 (3%) - - - 597 613 (3%) 60 61 (2%) Bulk Annuities 98 1,330 (93%) - - - 98 1,330 (93%) 10 133 (92%) Sub-Total 1,302 2,516 (48%) 64 39 64% 1,366 2,555 (47%) 194 291 (33%) DWP Rebates 13 10 30% - - - 13 10 30% 1 1 0% Total UKInsuranceOperations 1,315 2,526 (48%) 64 39 64% 1,379 2,565 (46%) 196 292 (33%) EuropeanInsuranceOperations : InsuranceProducts 47 18 161% - 1 - 47 19 147% 5 3 67% TotalEuropeanInsurance Operations 47 18 161% - 1 - 47 19 147% 5 3 67% Total UK &EuropeanInsuranceOperations 1,362 2,544 (46%) 64 40 60% 1,426 2,584 (45%) 200 294 (32%) US InsuranceOperations :(8) FixedAnnuities 149 282 (47%) - - - 149 282 (47%) 15 28 (46%) Fixed IndexAnnuities 155 136 14% - - - 155 136 14% 16 14 14% VariableAnnuities 735 492 49% - - - 735 492 49% 74 49 51% Life (9) 3 6 (50%) 4 3 33% 7 9 (22%) 4 4 0% Sub-total Retail 1,042 916 14% 4 3 33% 1,046 919 14% 108 95 14% GuaranteedInvestmentContracts 49 74 (34%) - - - 49 74 (34%) 5 7 (29%)GIC - MediumTerm Note 9 48 (81%) - - - 9 48 (81%) 1 5 (80%)Total USInsuranceOperations 1,100 1,038 6% 4 3 33% 1,104 1,041 6% 114 107 7% AsianInsuranceOperations : China 8 3 167% 8 5 60% 16 8 100% 9 5 80% Hong Kong 88 94 (6%) 28 23 22% 116 117 (1%) 37 32 16% India (@26%)(6) 1 1 0% 16 8 100% 17 9 89% 16 8 100% Indonesia 6 11 (45%) 13 8 63% 19 19 0% 14 9 56% Japan 11 5 120% - 2 - 11 7 57% 1 3 (67%) Korea 18 6 200% 41 20 105% 59 26 127% 43 21 105% Malaysia 1 2 (50%) 20 22 (9%) 21 24 (13%) 20 22 (9%) Singapore 90 45 100% 19 16 19% 109 61 79% 28 21 33% Taiwan 29 24 21% 40 48 (17%) 69 72 (4%) 43 50 (14%) Other (4) 2 2 0% 9 10 (10%) 11 12 (8%) 9 10 (10%) Total AsianInsuranceOperations 254 193 32% 194 162 20% 448 355 26% 219 181 21% Group Total 2,716 3,775 (28%) 262 205 28% 2,978 3,980 (25%) 534 583 (8%) INVESTMENT OPERATIONS M&G (5) Asia Mutual Funds Asia Other Total Investment Products Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- Q4 Q4 +/- 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) 2005 2004 (%) £m £m £m £m £m £m £m £m Opening FUM 33,760 25,876 30% 8,296 6,540 27% 980 788 24% 43,036 33,204 30% Gross inflows 2,316 2,393 (3%) 4,056 5,051 (20%) 22 128 (83%) 6,394 7,572 (16%)Lessredemptions( 1,189) ( 1,006) (18%)(3,684) (4,121) 11% ( 11) ( 5) (120%)( 4,884) ( 5,132) 5% Net flows 1,127 1,387 (19%) 372 930 (60%) 11 123 (91%) 1,510 2,440 (38%)Othermovements ( 74) 122 (161%) ( 6) ( 11) 45% - - - ( 80) 111 (172%)Market andcurrencymovements 1,382 1,321 5% 444 129 244% 37 39 (5%) 1,863 1,489 25% Netmovement 2,436 2,830 (14%) 811 1,048 (23%) 48 161 (70%) 3,295 4,039 (18%)in FUM Closing 36,196 28,705 26% 9,104 7,588 20% 1,028 949 8% 46,328 37,242 24%FUM Schedule 4 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2005 VERSUS QUARTER 3 2005 INSURANCE OPERATIONS Single Regular Total Annual Equivalents(3) Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- 2005 2005 (%) 2005 2005 (%) 2005 2005 (%) 2005 2005 (%) £m £m £m £m £m £m £m £m UK InsuranceOperations : Direct toCustomer: IndividualPensions 2 2 0% 2 2 0% 4 4 0% 2 2 0% Life - WithProfit Bond 4 4 0% - - - 4 4 0% 0 0 0% Life - Other 2 - - - - - 2 - - 0 - - IndividualAnnuities 178 178 0% - - - 178 178 0% 18 18 0% Sub-Total 186 184 1% 2 2 0% 188 186 1% 21 20 5% DWP Rebates 10 - - - - - 10 - - 1 - - Total 196 184 7% 2 2 0% 198 186 6% 22 20 10% Business toBusiness: CorporatePensions 81 46 76% 54 25 116% 135 71 90% 62 30 107% IndividualAnnuities 61 54 13% - - - 61 54 13% 6 5 20% Bulk Annuities 98 93 5% - - - 98 93 5% 10 9 11% Total 240 193 24% 54 25 116% 294 218 35% 78 44 77% IntermediatedDistribution : IndividualPensions 15 11 36% 4 5 (20%) 19 16 19% 6 6 0% CorporatePensions 11 9 22% 1 2 (50%) 12 11 9% 2 3 (33%)Life - WithProfit Bond 40 44 (9%) - - - 40 44 (9%) 4 4 0% Life - OtherBond 265 209 27% - - - 265 209 27% 27 21 29% Life - Other 2 1 100% 2 2 0% 4 3 33% 2 2 0% IndividualAnnuities 209 228 (8%) - - - 209 228 (8%) 21 23 (9%) Sub-Total 542 502 8% 7 9 (22%) 549 511 7% 61 59 3% DWP Rebates 3 - - - - - 3 - - 0 - - Total 545 502 9% 7 9 (22%) 552 511 8% 62 59 5% Partnerships : Life - With Profit Bond - - - - - - - - - - - - Life - Other 185 203 (9%) 1 2 (50%) 186 205 (9%) 20 22 (9%) IndividualAnnuities 149 52 187% - - - 149 52 187% 15 5 200% Bulk Annuities - 44 - - - - - 44 - - 4 - Total 334 299 12% 1 2 (50%) 335 301 11% 34 32 6% Total : IndividualPensions 17 13 31% 6 7 (14%) 23 20 15% 8 8 0% CorporatePensions 92 55 67% 55 27 104% 147 82 79% 64 33 94% Life - WithProfit Bond 44 48 (8%) - - - 44 48 (8%) 4 5 (20%) Life - OtherBond 265 209 27% - - - 265 209 27% 27 21 29% Life - Other 189 204 (7%) 3 4 (25%) 192 208 (8%) 22 24 (8%) IndividualAnnuities 597 512 17% - - - 597 512 17% 60 51 18% Bulk Annuities 98 137 (28%) - - - 98 137 (28%) 10 14 (29%) Sub-Total 1,302 1,178 11% 64 38 68% 1,366 1,216 12% 194 156 24% DWP Rebates 13 - - - - - 13 - - 1 - - Total UKInsuranceOperations 1,315 1,178 12% 64 38 68% 1,379 1,216 13% 196 156 26% EuropeanInsuranceOperations : InsuranceProducts 47 34 38% - - - 47 34 38% 5 3 67% Total EuropeanInsuranceOperations 47 34 38% - - - 47 34 38% 5 3 67% Total UK &EuropeanInsuranceOperations 1,362 1,212 12% 64 38 68% 1,426 1,250 14% 200 159 26% US InsuranceOperations :(8) FixedAnnuities 149 229 (35%) - - - 149 229 (35%) 15 23 (35%) Fixed IndexAnnuities 155 164 (5%) - - - 155 164 (5%) 16 16 0% VariableAnnuities 735 686 7% - - - 735 686 7% 74 69 7% Life (9) 3 2 50% 4 4 0% 7 6 17% 4 4 0% Sub-totalRetail 1,042 1,081 (4%) 4 4 0% 1,046 1,085 (4%) 108 112 (4%)GuaranteedInvestmentContracts 49 119 (59%) - - - 49 119 (59%) 5 12 (58%)GIC - MediumTerm Note 9 10 (10%) - - - 9 10 (10%) 1 1 0%Total USInsuranceOperations 1,100 1,210 (9%) 4 4 0% 1,104 1,214 (9%) 114 125 (9%) AsianInsuranceOperations : China 8 5 60% 8 6 33% 16 11 45% 9 7 29% Hong Kong 88 54 63% 28 20 40% 116 74 57% 37 25 48% India (@26%)(6) 1 1 0% 16 14 14% 17 15 13% 16 14 14% Indonesia 6 8 (25%) 13 12 8% 19 20 (5%) 14 13 8% Japan 11 8 38% - 1 - 11 9 22% 1 2 (50%) Korea 18 2 800% 41 31 32% 59 33 79% 43 31 39% Malaysia 1 2 (50%) 20 17 18% 21 19 11% 20 17 18% Singapore 90 77 17% 19 15 27% 109 92 18% 28 23 22% Taiwan 29 23 26% 40 55 (27%) 69 78 (12%) 43 57 (25%) Other (4) 2 3 (33%) 9 8 13% 11 11 0% 9 8 13% Total Asian InsuranceOperations 254 183 39% 194 179 8% 448 362 24% 219 197 11% Group Total 2,716 2,605 4% 262 221 19% 2,978 2,826 5% 534 481 11% INVESTMENT OPERATIONS M&G (5) Asia Mutual Funds Asia Other Total Investment Products Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- Q4 Q3 +/- 2005 2005 (%) 2005 2005 (%) 2005 2005 (%) 2005 2005 (%) £m £m £m £m £m £m £m £m Opening 33,760 31,171 8% 8,296 9,388 (12%) 980 900 9% 43,036 41,459 4%FUM Gross 2,316 2,021 15% 4,056 4,938 (18%) 22 20 10% 6,394 6,979 (8%)inflowsLessredemptions (1,189) ( 966) (23%)(3,684) (4,554) 19% ( 11) ( 9) (22%) (4,884) ( 5,529) 12% Net flows 1,127 1,055 7% 372 385 (3%) 11 11 0% 1,510 1,451 4%Othermovements ( 74) ( 35) (111%) ( 6) (1,161) 99% - - - ( 80) ( 1,196) 93% Market andcurrencymovements 1,382 1,569 (12%) 444 ( 316) 241% 37 69 (46%) 1,863 1,322 41% Netmovement in FUM 2,436 2,589 (6%) 811 (1,093) 174% 48 80 (40%) 3,295 1,576 109% Closing FUM 36,196 33,760 7% 9,104 8,296 10% 1,028 980 5% 46,328 43,036 8% Notes to Schedules : The format of the tables shown is consistent with the distinction betweeninsurance and investment products as applied for previous financial reportingperiods with the exception of US institutional business referred to below,products categorised as "insurance" refer to those classified as contracts oflong-term insurance business for regulatory reporting purposes, i.e. fallingwithin one of the classes of insurance specified in part II of Schedule 1 to theRegulated Activities Order under FSA regulations. The details shown for insurance products include contributions for contractsthat are classified under IFRS4 "Insurance Contracts" as not containingsignificant insurance risk. These products are described as investment contractsunder IFRS4 or other financial instruments under IAS39.Contracts included inthis category are primarily certain unit linked and similar contracts written inUK and Europe Insurance Operations and Guaranteed Investment Contracts andsimilar funding agreements written in US operations. Investment products referred to in the tables are unit trust, mutual funds andsimilar types of fund management arrangements.These are unrelated to insuranceproducts that are classified as "investment contracts" under IFRS4 , asdescribed above, although similar IFRS recognition principles apply to theacquisition costs and fees attaching to this type of business. (1a) Insurance and investment new business for overseas operations has beencalculated using constant exchange rates. The applicable rate for JacksonNational Life is 1.82 A comparison between the results at actual exchange rates and at constantexchange rates is given in the press release. (1b) Insurance and investment new business for overseas operations has beencalculated using average exchange rates. The applicable rate for JacksonNational Life is 1.82 (2004: 1.83). (2) Represents cash received from sale of investment products. (3) Annual Equivalents, calculated as regular new business contributions plus10% single new business contributions, are subject to roundings. (4) In Asia, 'Other' insurance operations include Thailand, the Philippines andVietnam. (5) Balance includes segregated and pooled pension funds, private finance assetsand other institutional clients. Other movements reflect the net flows arisingfrom the cash component of a tactical asset allocation fund managed by PPM SouthAfrica. (6) New business in India is included at Prudential's 26% interest in the Indialife operation.Mandatory Provident Fund (MPF) product sales in Hong Kong areincluded at Prudential's 36% interest in the Hong Kong MPF operation. (7) Balance sheet figures have been calculated at the closing exchange rate. The2004 balance is shown on a constant exchange rate. (8) Sales are converted using the year to date average exchange rate applicableat the time.The sterling results for individual quarters represent thedifference between the year to date reported sterling results at successivequarters and will include foreign exchange movements from earlier periods (9) US Life sales for 2004 restated to be consistent with the presentation ofFull Year 2004 results. (10) On 26 August, Prudential's joint venture partner in the Prudential ICICIAsset Management Company purchased an additional 6% share ownership. As aresult, Prudential no longer consolidates the company as a subsidiary. 2004results are reported at 100%. (11) £56m of FUM reported under Prudential Asian funds operations relates to M&G's products distributed through those Asian operations and this amount is alsoincluded in M&G's FUM. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Prudential