Prudential PLC - 1st Quarter Results
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RNS Number:5194S
Prudential PLC
17 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, with
comparisons 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 new
business up 13 per cent. This continues our strong momentum despite an
environment characterised by high levels of uncertainty and volatility. This
performance confirms the resilience that we derive from our geographic spread
across three regions, and particularly the role of Asia as our leading source of
new business.
"Asia's excellent new business growth momentum continues apace. In the US,
although difficult market conditions are affecting sales of certain types of
retirement products, we remain confident that we shall continue to out-perform
the market over the longer-term. UK growth of four per cent is particularly
pleasing as we have maintained our value driven focus on writing only the
business that meets our profitability criteria.
"Our asset management businesses in the UK and Asia achieved £1.1 billion net
inflows in extremely tough conditions, with Prudential's financial strength and
track record of investment performance enabling us to be a beneficiary of the
flight to quality that accompanies economic uncertainty.
"The current economic environment is challenging but I am confident that our
geographic diversity, advantaged distribution, product expertise and management
capability position us well for future growth. Our prospects for 2008 remain
positive."
Asia insurance operations
Prudential's Asian life operations delivered new business APE of £375 million
representing growth of 30 per cent over the first quarter 2007 continuing the
strong 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 products
has remained strong with the proportion of sales of linked products increasing
slightly from 67 per cent of APE for the first quarter of 2007 to 69 per cent of
APE in the first quarter of 2008. The main drivers of growth by country during
the quarter compared to the first quarter last year were India, with our share
of sales at £89 million an increase of 41 per cent, Indonesia at £40 million up
a very strong 90 per cent, Hong Kong at £54 million up 50 per cent, Japan at £22
million 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 and
customers. Our ability to find creative solutions for our customers and to
innovate allows us to grow profitably. New business from health products was 79
per cent ahead of the same quarter last year.
These strong performances came from a wide range of drivers that continue to
demonstrate the success of Prudential's regional model. In India the growth
reflects the investment in new branches and agency during 2007. Indonesia's
agency momentum has continued through the first quarter and this operation now
has 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 cent
of Indonesia APE now coming from these products. Hong Kong had a very strong
first quarter with the successful launch of the new PRUlink Wealth Builder, the
operation's first regular premium back-end loaded index linked product,
supported by marketing activity for retirement planning. In Japan the
exceptional growth has been driven largely by Term Life products where the tax
benefits have now been reduced; this operation is now focusing on Variable
Annuity products. We anticipate a slow down in new business volumes relative to
the term life product. Singapore has also benefited from a one-off boost in
single premium sales relating to changes in the Central Provident Fund
investment limits effective from 1 April 2008.
Having led Prudential's Asian growth in 2007, Taiwan delivered new business APE
of £35 million, down eight per cent. Single premium sales were particularly
affected by adverse market sentiment towards investment products with a
reduction 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 on
last year and representing 28 per cent of the total APE, up from 14 per cent
last year. Total new business was down six per cent reflecting challenging
market conditions. Korea delivered new business APE of £59 million, up 11 per
cent, in a market that remains highly competitive.
On a comparable basis to 2007, APE sales in China were up by 50 per cent. In
recently released market data for 2007, domestic players on average grew by 33
per cent and foreign/joint ventures by 21 per cent.
Vietnam, Thailand and Philippines have continued the strong growth seen in 2007
with collective first quarter APE sales of £15 million, up 36 per cent on last
year. Unit linked products were launched in Vietnam in January and they
represented five per cent of the country's sales in the first quarter.
Prudential has an excellent track record of building a profitable business in
Asia and its focus continues to be on profitable and sustainable long-term
growth. The business continues to expect to deliver doubling 2005 EEV NBP a year
early by 2008.
US insurance operations
Jackson, Prudential's US insurance business, delivered APE sales of £165 million
in the first quarter of 2008, representing a seven per cent decline from the
same 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 per
cent 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 both
represent the second-highest level of sales during the first quarter in the
Company's history. This achievement demonstrates the resilience of Jackson's
business model despite volatile equity markets and a deteriorating macroeconomic
environment experienced in the first three months of 2008.
Variable annuity APE sales of £90 million in the first quarter of 2008 were 13
per 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 volatility
experienced by US equity markets during the second half of 2007 continued into
2008. Price competition in the variable annuity market has remained intense.
In the first quarter of 2008, Jackson maintained its track record for product
innovation by enhancing its variable annuity offering, launching two new
guaranteed minimum withdrawal benefits (GMWB) and two new portfolio investment
options subadvised by PPM America, Inc. As announced in the fourth quarter of
2007, Jackson is expanding its wholesaling force by adding nearly 70 internal
wholesalers and seven sales desk directors by 2009. The initiative is designed
to increase Jackson's presence among independent advisers and strengthen
relationships with the Company's top producers.
Fixed annuity APE sales of £19 million were 46 per cent up on the same period of
2007 reflecting a higher customer propensity towards fixed-rate products in a
period of declining equity markets.
Fixed index annuity sales continue to be affected by difficult market
conditions. Jackson's APE sales of £10 million in the first three months of 2008
were nine per cent down on the same period of 2007.
Institutional APE sales of £41 million in the first quarter of 2008 were down 11
per cent on the same period of 2007. Jackson continues to participate in this
market on an opportunistic basis when margins are attractive.
Curian Capital, a specialised asset management company that provides innovative
fee-based separately managed accounts, continues to build its position in the US
retail asset management market with total assets under management at the end of
March 2008 of £1.7 billion, stable from the end of December 2007 at CER. Curian
generated deposits of £157 million in the first quarter of 2008, up six per cent
on 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 is
well within Group risk parameters and Jackson continues to manage it
proactively. For securities classified as available-for-sale under IAS39, at 31
March there was an increase in the net unrealised loss position to £459 million
from £136 million at 31 December 2007. This increase reflects exceptional market
conditions.
Jackson remains confident of the quality of its overall portfolio of £19 billion
of debt securities. 90 per cent of its gross unrealised loss is on investment
grade securities. Of the £257 million of gross unrealised losses on securities
with a fair value of less than 80 per cent of book value, only £28 million is on
securities rated as non-investment grade. In addition, there were no credit
defaults in the direct investment portfolio in the quarter and downgrades were
minimal. As stated with our 2007 results announcement, Jackson holds its debt
securities with the intent and ability to hold them for the longer-term. Further
details are provided in Schedule 7.
Overall, we remain confident that Jackson's strengths - its efficient operating
platform, the quality of its distribution, its ability to innovate and the
quality of its management - will allow it to continue to outperform the market
over the longer-term.
UK insurance operations
Prudential UK delivered total APE sales of £189 million in the first quarter of
2008, a four per cent increase on the same quarter last year. This sales growth
was driven principally by strong performances in with-profits and offshore bonds
as well as equity release completions. Sales on a PVNBP basis were up six per
cent at £1.6 billion.
Individual annuity sales in the first quarter of APE £64 million were three per
cent lower than the first quarter of 2007. Internal vestings of APE £32 million
were in line with the first quarter of 2007 and contributed 50 per cent of total
annuity sales. Sales through partnerships fell slightly from last year's first
quarter performance. With-profits annuity sales continued to grow strongly, with
sales of APE £12 million up 13 per cent on the first quarter of 2007. As
consumers 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 mortgage
drawdowns of £51 million making this the highest quarter to date, up 50 per cent
on the first quarter last year. Performance in the first quarter was underpinned
by continued strong sales through intermediaries up 43 per cent to £33 million,
complemented by sales through Prudential's face-to-face specialist consultants
increasing by 61 per cent over the same period.
Corporate pension sales of £61 million were in line with the same period last
year, principally due to continued growth in member uptake and increments on
existing schemes. Prudential now administers corporate pensions on behalf of
approximately 640,000 members.
Prudential's retail with-profits business performed very strongly across a range
of products with total sales of £86 million up 17 per cent. Sales of
with-profits bonds continued the strong growth seen in 2007, with first quarter
APE sales of £18 million up 112 per cent on the first quarter of 2007. Sales of
PruFund (Prudential's unitised and smoothed investment plan with an optional
guarantee) were particularly strong at £11 million APE, with cumulative single
premiums since launch in 2005 now exceeding £400 million. With consumers in the
UK seeking to protect themselves from market down-turns, Prudential has seen a
significant increase in with-profits sales as more investors choose its
with-profits products to protect themselves during volatile and uncertain
conditions as well as during market growth.
Sales of offshore products (sold within the UK and Europe) were up 36 per cent
on 2007 at £19 million APE. There was a particularly strong performance in the
UK market where sales increased by 124 per cent. This reflected increased demand
for Prudential's open architecture portfolio bond product, with an increasing
number of advisers recognising the flexibility, choice and potential tax
effectiveness this sort of product can offer to their higher net worth clients.
To build on this opportunity further, Prudential International launched a new
enhanced offering in March - the Portfolio Account, a single premium offshore
portfolio bond.
In the wholesale bulk and insurer back-book market Prudential wrote a minimal
amount of business in the first quarter of 2008, reflecting Prudential's stance
that it will only write annuity business at rates that are sufficient to meet
its return on capital requirements based on its view of future longevity
improvements. There continues to be a significant pipeline of potential
wholesale deals but competition remains intense with a number of market
participants competing for business.
PruHealth sales are not included in the total APE sales numbers. During the
first quarter of 2008, PruHealth continued to grow strongly with gross written
premiums of £20 million up 25 per cent on the same quarter of 2007. This
business now covers over 150,000 lives.
These first quarter results reflect the UK strategy as we maintain our
value-driven focus on writing only the business that meets our profitability
criteria.
Asset Management
M&G
M&G is an investment-led business with a demonstrable focus on performance
delivery which aims to offer attractive products in a variety of macro-economic
environments. Despite the significant deterioration in market conditions since
the first quarter last year, M&G delivered increased gross fund inflows during
the 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 investment
performance and the strength of its diversified business across different asset
classes and across retail and wholesale markets, both in the UK and
internationally.
M&G's total gross fund inflows for the first three months of this year were £3.3
billion, an increase of two per cent on the first quarter last year. Net fund
inflows of £558 million, while down 59 per cent on the same period of 2007, are
a strongly net positive result in market conditions which are dramatically
different from the comparable period last year. During the first three months
of this year, the FTSE All Share fell 11 per cent. In spite of the market
volatility seen over the last quarter, M&G's total funds under management fell
just five per cent to £159.8 billion, demonstrating the diverse spread of M&G's
business.
Gross fund inflows into M&G's retail business were £1.9 billion, a fall of four
per cent compared with the first quarter of last year. Net fund inflows were £25
million for the quarter. Retail fund performance has continued to be strong,
despite the deterioration in markets, with 24 per cent of retail funds in the
top decile over three years and 39 per cent of funds delivering top quartile
performance. This continued excellent fund performance places M&G in a strong
position to gain market share.
M&G's institutional businesses saw gross fund inflows increase 11 per cent
during the quarter to £1.5 billion. Net inflows decreased by 33 per cent to £533
million. In its higher margin businesses, M&G's Infrastructure Finance business
saw steady inflows and while market activity in structured credit and leveraged
loans has remained quiet, M&G's excellent reputation and continued good
performance 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 the
first three months of 2008. These were 17 per cent lower compared to the same
period in 2007. Of the £0.5 billion of net inflows, 74 per cent were in
longer-term equity and fixed income products with 26 per cent in shorter-term
money market funds.
Total third party funds under management were £16.0 billion, a decrease of 11
per cent compared to the fourth quarter of 2007. Japan, Korea and India were the
largest contributors to the reduction due to equity market volatility with these
countries falling by 20 per cent, 11 per cent and nine per cent respectively.
Japan, with a significant percentage of their funds invested in India, was
affected 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, an
example being PCA Asset Management in Korea which recently launched an
innovative fund called PCA Emerging Asia Equity Fund, which invests into China,
India, Indonesia, Thailand, Malaysia, Philippines, Vietnam and other emerging
Asia countries.
In terms of institutional business, Taiwan obtained three institutional mandates
with funds under management of £116 million during the first quarter. This
includes a domestic equity investment mandate from Taiwan's New Labour Pension
Fund.
Prudential remains confident that its asset management businesses in Asia are
well positioned to achieve strong and profitable growth.
ENDS
Enquiries:
Media Investors/Analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
William 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 2008
Interim Results 2008 31 July 2008
Third Quarter 2008 Interim Management Statement 21 October 2008
9. About Prudential plc
*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 160 years and has £267 billion in
assets under management (as at 31 December 2007). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
Forward-Looking Statements
This statement may contain certain 'forward-looking statements' with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words 'believes', 'intends', 'expects', 'plans',
'seeks' and 'anticipates', and words of similar meaning, are forward-looking.
By their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
Schedule 1A - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - 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 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 £m
UK 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 Insurance
Operations
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 £m
UK 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 Insurance
Operations
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 Inflows
2007 £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 Inflows
2008 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
Inflows
2008 £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
Inflows
2007 £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
Inflows
2008 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 £m
UK 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 Insurance
Operations
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 £m
UK 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 Insurance
Operations
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 £m
UK 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 £m
UK 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 credit
analysts closely and regularly monitor and report on the credit quality of its
holdings. Jackson continues to review its investments on a case-by-case basis to
determine whether any decline in fair value represents an other-than-temporary
impairment. At 31 March for all securities for which there was a temporary
impairment recorded, management has the ability and intent to hold for the
longer-term.
In the first quarter of 2008, Jackson recorded £24 million of
other-than-temporary impairment losses of which £11 million related to Alt-A
holdings. This is more than the normalised risk margin charge (RMR) to operating
profits based on longer-term investment returns of £12 million.
For Jackson's securities classified as available-for-sale under IAS 39, at 31
March there was a net unrealised loss position of £459 million. This amount
comprised £335 million of gross unrealised gains and £794 million of gross
unrealised losses on individual securities. Included within the gross
unrealised losses is £257 million for securities which are valued at less than
80 per cent of book value. For securities valued at less than 80 per cent of
book value, 89 per cent are investment grade. 97 per cent of the securities
valued at less than 80 per cent of book value have been at this level for less
than 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 value
Book value 11,345 10,730
Unrealised loss (794) (355) (439)
_____________________________________________________________ __________________
Fair value (as included in balance sheet) 10,551 10,291
_____________________________________________________________ __________________
Assets fair valued at or above book value
Book value 7,882 8,041
Unrealised gain 335 32 303
_____________________________________________________________ __________________
Fair value (as included in the balance sheet) 8,217 8,344
_____________________________________________________________ __________________
Total
Book value 19,227 18,771
Net 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 unrealised
loss 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 billion
in Alt-A exposure. This subprime exposure, which is primarily fixed rate with
first lien collateral, is all investment grade and 96 per cent AAA rated. The
Alt-A exposure is 79 per cent AAA rated. With an average FICO score of 610-620
Jackson's subprime collateral could be categorised as "near prime" with a score
close to a prime score of 660.
* The majority of Jackson's debt securities are classified as
available-for-sale under IAS 39. Under this classification, unless other than
temporarily impaired or sold, changes in value on these securities are recorded
as a movement directly in shareholders' equity rather than in the income
statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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