-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HSUJpe4hoVlAOzNpBU5O3m0vNL1XwTYddALTSXGptWlYrswYsRdARbmWDMdjisgj GZRNfYQ7ty0MWhDo85hulg== 0001191638-06-002518.txt : 20061019 0001191638-06-002518.hdr.sgml : 20061019 20061019073213 ACCESSION NUMBER: 0001191638-06-002518 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061019 FILED AS OF DATE: 20061019 DATE AS OF CHANGE: 20061019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRUDENTIAL PLC CENTRAL INDEX KEY: 0001116578 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 000000000 STATE OF INCORPORATION: X0 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15040 FILM NUMBER: 061152014 BUSINESS ADDRESS: STREET 1: LAURENCE POUNTNEY HILL CITY: LONDON ENGLAND STATE: X0 ZIP: EC4R OHH BUSINESS PHONE: 011442075483737 MAIL ADDRESS: STREET 1: LAURENCE POUNTNEY HILL CITY: LONDON ENGLAND STATE: X0 ZIP: EC4R OHH 6-K 1 pru200610196k.txt 3RD QUARTER RESULTS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of October, 2006 PRUDENTIAL PUBLIC LIMITED COMPANY (Translation of registrant's name into English) LAURENCE POUNTNEY HILL, LONDON, EC4R 0HH, ENGLAND (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- Enclosures: 3rd Quarter Results Embargo: 07.00am Thursday 19 October 2006 PRUDENTIAL PLC NEW BUSINESS RESULTS FOR THE 9 MONTHS TO 30 SEPT 2006 All figures compared to 2005 at constant exchange rates unless stated, New business for the first nine months of the year:
APE(1) Growth PVNBP(1) Growth Nine months Nine months Insurance: Total Group GBP1,803 million 11% GBP13,902 million 6% Prudential UK retail(2) GBP485 million 11% GBP3,954 million 10% Total UK GBP664 million (4%) GBP5,744 million (7%) Jackson GBP467 million 15% GBP4,633 million 14% Prudential Corporation Asia GBP673 million 29% GBP3,525 million 22% Asset Management: M&G Record net fund inflows of GBP5.1 billion, up 87% Asia Record net fund inflows of GBP1.6 billion, up 65%
(1) See notes 1 and 2 in Notes to Editors (2) UK Retail sales include all products except bulk annuities and credit life sales Mark Tucker, Group Chief Executive said: "The Group is in robust health with excellent prospects for continued profitable growth. "We continue to see strong growth in APE new business premiums across our retail life insurance businesses with Asia up 29%, Jackson retail up 25% and the UK retail up 11%. Overall, APE for new business sales across the Group was ahead 11% to GBP1.8 billion. "Our asset management businesses - M&G in the UK and Europe, and our businesses across Asia - again delivered record inflows. "Egg, however, was adversely affected by a marked deterioration in industry wide consumer behaviour in this quarter. We now expect Egg to report an operating loss in the second half of 2006." Commentary on Third Quarter 2006 New Business Results UK Insurance and Banking operations Prudential's UK retail insurance operations have continued to perform well in the first nine months of 2006 with retail APE sales of GBP485 million up 11 per cent on 2005 driven primarily by the growth in pensions and individual annuity sales. Total APE sales for the UK insurance business in the first nine months of 2006 fell 4 per cent on 2005 to GBP664 million (GBP5.7 billion on a PVNBP basis) because of lower sales in the bulk annuity market. Total sales in the third quarter have increased by 13 per cent on the corresponding period in 2005. Corporate pension APE sales increased 23 per cent due in part to the continuing shift from defined-benefit to defined-contribution pension schemes but also due to the impact of A-Day. Individual pension sales increased 8 per cent due to increased activity following A-Day. As part of its commitment to this market, Prudential launched a new self-invested personal pension (SIPP) in August 2006. Individual annuity sales grew by 15 per cent, driven primarily by increased internal vestings and new partnership agreements. The annuity partnership with Royal London announced earlier this year came into effect in September. This agreement allows Prudential to provide annuity quotes to all Royal London customers with maturing pensions originally written under various brands within the Royal London Group. Sales of with-profit annuities continued to grow strongly (up 127 per cent), benefiting from the favourable comparison of their returns with conventional annuity rates. Prudential's continued outstanding performance in the annuities market was recognised with the Moneywise Best Annuity Provider Award for the third year running. With-profits and offshore bond sales increased by 29 per cent and 73 per cent respectively, reflecting Prudential's financial strength and outstanding life fund investment returns as well as an increase in consumer appetite for these investment products. Its strategy of targeting higher value intermediary sales led to reduced sales of unit-linked bonds. Prudential believes the lifetime mortgage market will continue to grow, reflecting the increasing need for many consumers to supplement their retirement income. In response to this, it is introducing a new sales team to sell its Property Value Release Plan. The team will be recruited by the end of this year to visit prospective clients and offer specialist advice on Prudential's lifetime mortgage product. Prudential launched its new Flexible Protection Plan in July 2006. This is an innovative new protection product, which is designed to provide customers with wider cover than traditional products. After a slow first half in 2006, activity within the wholesale bulk annuity market has picked up in the third quarter, however, Prudential's sales for the first nine months have remained lower than the corresponding period last year. Prudential has seen increased competition in the bulk annuity market during 2006 and although it remains committed to this market it will only participate where there is an acceptable return on risk adjusted capital. Direct and corporate sales of PruHealth remain very strong, with nearly 80,000 individuals now covered. The success of this product is also demonstrated by the low levels of claims currently being experienced, particularly on the individual business. Prudential's UK insurance operations will continue to focus on maximising value and return on capital in its chosen product areas and distribution channels in 2006. During the third quarter, Egg has been affected by a marked deterioration in market trends that are being seen across the banking sector. Interest income in the quarter was lower than expected due to lower than forecast net borrowing on cards, as consumers reduced their spending and borrowing. In addition, bad debt experience, particularly in relation to personal loans was worse than expected. There has been a marked increase in consumers using individual voluntary arrangements, debt management companies and in some cases bankruptcy to alleviate their debt burden. These arrangements typically result in lower recoveries from customers than have historically been achieved via Egg's collection strategies. Within the Egg personal loan portfolio, the number of customers employing debt management companies in the last quarter increased 40 per cent on the prior quarter. Egg is responding by taking a number of actions, for example increasing the APR on credit cards by 1 per cent in September and introducing risk based pricing across the portfolio. Based on current experience, we now expect Egg to report an operating loss in the second half of 2006, similar to the loss reported in the first half of 2006. Jackson Jackson, Prudential's US insurance business, achieved APE sales of GBP467 million in the first nine months of the year, representing a 15 per cent increase on the same period in 2005, driven by strong growth in sales of variable annuities. On a PVNBP basis this equates to sales of GBP4.6 billion. Retail APE sales in the first nine months of 2006 of GBP390 million were up 25 per cent. APE sales in the third quarter of 2006 were GBP143 million, up 14 per cent from the same period in 2005. Jackson delivered record variable annuity sales in the first nine months of 2006 of GBP2.8 billion, up 48 per cent on last year, reflecting its distinct competitive advantages of a flexible and innovative product offering, strong distribution model and award-winning service. This result was achieved in a market that has seen 22 per cent year-on-year growth during the first half of 2006. Product innovation continues to be a key competitive driver of Jackson's sales performance, as 80 per cent of retail sales during the first three quarters of 2006 were related to products and product features launched since the beginning of 2005. For the half year 2006, Jackson increased its variable annuity market share to 4.3 per cent, up from 3.5 per cent at the half-year in 2005, and maintained its ranking of 12th in total variable annuity sales. Specifically, in the independent broker dealer distribution channel Jackson's variable annuity sales rose 57 per cent in the 6 months to June 2006, while industry sales rose 33 per cent in the same period. This took Jackson's ranking in the channel from 5th to 2nd and increased its market share from 8.8 per cent to 10.4 per cent at the half-year 2006. Fixed annuity APE sales of GBP52 million were down 20 per cent on the same period of 2005, reflecting the current interest rate environment that has affected customer demand for this product. Jackson continues to pursue profitable growth and therefore has been unwilling to lower margins. Fixed index annuity APE sales of GBP44 million were 6 per cent down on 2005, as sales continued to be unfavourably affected by the uncertain regulatory environment surrounding this product in the US. Curian Capital, which provides innovative fee based separately managed accounts, continues to build a strong position in the retail asset management market in the US with total assets under management at the end of September 2006 of $2.16 billion compared with $1.67 billion at the end of 2005. Institutional APE sales of GBP77 million were down 19 per cent on the same period of 2005; this is a market in which Jackson continues to participate on an opportunistic basis. Jackson has delivered strong results in the first three quarters of the year, focusing on value-driven growth in its key product lines. In addition, it signed new distribution agreements with key financial institutions that have an important presence in the US annuity and asset management markets. As the first of the Baby Boomer generation retire, Jackson is well positioned to take advantage of this market opportunity due to its continued focus on product innovation, strong relationship-based distribution model, excellent customer service and efficient technological platform. Prudential Corporation Asia Prudential's Asian life operations delivered growth of 29 per cent in the first nine months reflecting the continuing momentum of the business with nine out of twelve operations reporting double digit growth in the first nine months. The third quarter of 2006, with APE of GBP226 million, showed an increase of 15 per cent relative to the same quarter in 2005. On the PVNBP basis the first nine months sales of GBP3.5 billion are 22 per cent higher than in 2005. Across the portfolio of businesses, performance continues to reflect Prudential's focus on profitable and sustainable growth. The proportion of unit linked business in the first nine months of the year is 66 per cent up from 62 per cent for the same period last year. The proportion of new business from channels other than traditional agency distribution is 30 per cent compared to 27 per cent last year, as our bank and broker distribution continues to strengthen. Prudential's joint venture with ICICI in India continues to grow apace with nine month APE increasing by 95 per cent over the same period last year to GBP78 million. This was driven by a 50 per cent increase in agent numbers to 89,000, and higher average premiums per policy. There was also a 173 per cent increase in APE from the bancassurance channel that contributed 27 per cent of the total APE. Korea continues to benefit from the expansion of the tied financial adviser channel in 2006 with nine month APE growth of 66 per cent to GBP163 million, reflecting an increase of 120 per cent from this channel, offset by slower growth in the broker channel where some brokers have been restructuring. Bancassurance growth continues to be constrained by regulatory imposed individual company production caps. Prudential continues to explore opportunities to work with more banks. In Taiwan, Prudential's focus continues to be on profitability rather than volume. Whilst APE sales for the first nine months at GBP112 million are 4 per cent lower than the same period last year, the proportion of higher margin unit linked business at 60 per cent remains high. Prudential's life business in Indonesia continues to go from strength to strength with APE sales for the first nine months of GBP51 million, 46 per cent up on last year driven by increased agent numbers. It is now Prudential's sixth largest sales contributor in Asia. The Asia Development Bank recently reported that life insurance penetration in Indonesia is only one sixth that of Malaysia, showing that there remains considerable upside potential in this market. Although growth in Singapore slowed in the third quarter as equity market volatility impacted single premium linked business, nine month APE is up a healthy 23 per cent. After a slower start to 2006, Hong Kong, at GBP90 million for the first nine months, is up 17 per cent compared to 2005 following a rebound in the third quarter where APE increased 40 per cent relative to the same quarter in 2005 due to a successful retirement orientated savings product launch. In Malaysia, the sales across the industry remain depressed following regulatory changes last year; however sales levels for the first nine months have been maintained. The Takaful joint venture with Bank Simpanan Nasional (BSN) was officially launched in August and with regulatory approvals relating to products received on the 12th October 2006, sales are expected to commence soon. In China, CITIC Prudential APE sales for the nine months are GBP23 million, an increase of 35 per cent compared to 2005. Third quarter APE sales at GBP9 million increased 29 per cent compared to the third quarter 2005. Guangzhou and Beijing, the longest established operations, account for 56 per cent of the APE sales for the first nine months of 2006, compared to 80 per cent for the same period last year, reflecting the increasing contribution from the new cities. The Vietnamese market continues to be challenging and Prudential's APE sales for the first nine months have declined by 17 per cent. Earlier this month, the Vietnamese government granted Prudential approval to set up a finance company offering credit products such as home and corporate loans. Currently this market is very small and consequently little impact on Prudential's life results is expected over the short to medium term, though the longer term potential is attractive. Prudential's other smaller operations of Japan, Thailand and Philippines grew at 40 per cent, 59 per cent and 15 per cent respectively for the first nine months. Prudential has an excellent track record of building a profitable business in Asia and its focus continues to be on long term, profitable and sustainable growth. Asset Management M&G Outstanding investment performance led to M&G delivering record fund inflows in the first nine months of 2006, reflecting its leading positions in retail fund management, institutional fixed income, pooled life and pension funds, property and private finance. Whilst gross fund inflows in the first nine months at GBP10 billion were up 78 per cent, net fund inflows nearly doubled to GBP5.1 billion. Net fund inflows at the end of the third quarter now exceed those generated in the whole of 2005, which was in itself a record-breaking year. External funds under management, which represent a quarter of M&G's total funds, rose by 25 per cent to GBP42 billion. Gross fund inflows into M&G's retail businesses were GBP5.1 billion, the highest ever and nearly double those achieved in the first nine months of 2005. Net fund inflows more than doubled to GBP2.6 billion on the back of the excellent fund performance of M&G's equity, fixed income and property funds. Over the past three years, 71 per cent of M&G's retail funds have beaten their UK sector average, with 51 per cent delivering top quartile performance. Retail sales were strong in the UK and across Germany, Austria, Switzerland, Luxembourg, Italy, Spain and South Africa. Recent industry data has shown that M&G was one of the top selling fund managers in the UK and Germany during the first half of the year. In the UK, data released by FERI Fund Market Information showed that M&G was in second position for net retail sales across the industry and in the top five for gross retail sales for the second quarter. A survey from Germany's funds management association, BVI, showed that M&G was the second most successful non-domestic fund provider in terms of net flows in the first half of 2006 and in the top ten overall. Gross institutional fund inflows increased substantially in the first nine months of the year, up 67 per cent to GBP4.8 billion. Net institutional fund inflows increased 39 per cent to GBP2.6 billion. Strong fund inflows were seen across M&G's institutional business, especially in the area of segregated fixed income. The continued growth in assets under management in the Collateralised Debt Obligation (CDO) programme and Episode global macro fund in the first nine months of the year clearly demonstrates M&G's success in developing skills in external markets originally built up for internal funds. Asian Fund Management Business The Asian Fund Management Business has delivered record net inflows for the first nine months of 2006. Net inflows of GBP1.6 billion were up 65 per cent for the same period in 2005, reflecting the strengths of the Asian Fund Management's geographic and product diversification. Net inflows for the first nine months are 117 per cent of the total for the full year of 2005. Although the business experienced net inflows in the first nine months, there were net outflows of GBP194 million in the third quarter due to outflows in money market funds (MMF), which are short term in nature. Of the net inflows of GBP1.6 billion for the first nine months, GBP1.4 billion or 88 per cent have been from non-MMF products. During the third quarter the Vietnam mutual fund business launched its first retail fund in the Vietnamese market. The fund was capped at GBP17 million and was fully subscribed. Total third party funds under management were GBP11.2 billion, an increase of 20 per cent compared to the third quarter in 2005. India and Korea were the main contributors to this growth with funds under management increasing by 43 per cent and 55 per cent respectively. India growth was largely driven by strong equity and money market inflows. Korea growth was attributable to positive market sentiment, expanded distribution channels and good fund performance which led to a high level of equity and structured product inflows. Based on Asia Asset Management's latest Fund Manager Survey in September, Prudential's Asian Fund Management business is currently ranked second in terms of retail sourced FUM in Asia (ex-Japan). ENDS Enquiries: Media Investors/Analysts Jon Bunn 020 7548 3559 James Matthews 020 7548 3561 William Baldwin-Charles 020 7548 3719 Valerie Pariente 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 roundings. 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. There will be a conference call today for wire services at 7.30am (BST) hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance Director. Dial in telephone number: +44 (0)20 8609 0793. Passcode: 155439# 4. There will be a conference call for investors and analysts at 10:00am (BST) hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance Director. From the UK please call +44 (0)20 8609 0793 and from the US +1 866 793 4279. 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 154344#. 5. 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 2006 Q3 2005 Q3 +/- (%) 2006 Q3 2005 Q3 +/- (%) YTD YTD YTD YTD GBPm GBPm GBPm GBPm UK 664 692 (4%) 664 692 (4%) US 467 401 16% 467 406 15% Asia 673 508 32% 673 523 29% ______ ______ ______ ______ ______ ______ Total 1,803 1,601 13% 1,803 1,621 11% Gross Inflows Actual Exchange Rates Constant Exchange Rates 2006 Q3 2005 Q3 +/- (%) 2006 Q3 2005 Q3 +/- (%) YTD YTD YTD YTD GBPm GBPm GBPm GBPm M&G 9,981 5,600 78% 9,981 5,600 78% Asia 14,694 14,378 2% 14,694 14,253 3% ______ ______ ______ ______ ______ ______ Total 24,675 19,978 24% 24,675 19,853 24% Total Insurance and Investment New Business Actual Exchange Rates Constant Exchange Rates 2006 Q3 2005 Q3 +/- (%) 2006 Q3 2005 Q3 +/- (%) YTD YTD YTD YTD GBPm GBPm GBPm GBPm Insurance 11,185 10,720 4% 11,185 10,800 4% Investment 24,675 19,978 24% 24,675 19,853 24% ______ ______ ______ ______ ______ ______ Total 35,860 30,698 17% 35,860 30,653 17%
6. For Jackson, market share data is provided for the half year 2006, 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 LIMRA and The Advantage Group. 7. Total number of Prudential plc shares in issue as at 30th September 2006 was 2,429,970,525 8. High resolution photographs are available to the media free of charge at www.newscast.co.uk (+44 (0) 207 608 1000). 9. Financial Calendar 2006 - 2007: Payment of 2006 Interim Dividend 27th October 2006 2006 Full Year New Business Figures 30th January 2007 Full year 2006 Results 15th March 2007 Q1 2007 New Business Figures 19th April 2007 AGM 17th May 2007 Interim Results 2007 1st August 2007 Prudential plc is a company incorporated and with its principal place of business in the United Kingdom, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has GBP237.5 billion in assets under management as at 30th June 2006. 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 - NINE MONTHS 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1a) Asia Total (1a) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 5,303 5,768 (8%) 4,548 3,971 15% 1,334 1,061 26% 11,185 10,800 4% Products Total Investment 9,981 5,600 78% - - - 14,694 14,253 3% 24,675 19,853 24% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 15,284 11,368 34% 4,548 3,971 15% 16,028 15,314 5% 35,860 30,653 17% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 10 10 0% 6 6 0% 16 16 0% 7 7 0% Life - With Profit 16 10 60% 1 1 0% 17 11 55% 3 2 50% Bond Life - Other 13 - - 1 1 0% 14 1 1,300% 2 1 100% Individual Annuities 611 543 13% - - - 611 543 13% 61 54 13% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 650 563 15% 8 8 0% 658 571 15% 73 64 14% DWP Rebates 161 234 (31%) - - - 161 234 (31%) 16 23 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 811 797 2% 8 8 0% 819 805 2% 89 88 1% Business to Business Corporate Pensions 210 160 31% 117 92 27% 327 252 30% 138 108 28% Individual Annuities 173 151 15% - - - 173 151 15% 17 15 13% Bulk Annuities 46 413 (89%) - - - 46 413 (89%) 5 41 (88%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 429 724 (41%) 117 92 27% 546 816 (33%) 160 164 (2%) Intermediated Distribution Individual Pensions 67 50 34% 14 14 0% 81 64 27% 21 19 11% Corporate Pensions 31 32 (3%) 3 6 (50%) 34 38 (11%) 6 9 (33%) Life - With Profit 142 119 19% - - - 142 119 19% 14 12 17% Bond Life - Other Bond 568 682 (17%) - - - 568 682 (17%) 57 68 (16%) Life - Other 38 4 850% 4 5 (20%) 42 9 367% 8 5 60% Individual Annuities 550 786 (30%) - - - 550 786 (30%) 55 79 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 1,396 1,673 (17%) 21 25 (16%) 1,417 1,698 (17%) 161 192 (16%) Partnerships Individual Pensions 1 - - - - - 1 - - - - - Life - With Profit 10 - - - - - 10 - - 1 - - Bond Life - Other Bond 101 - - - - - 101 - - 10 - - Life - Other 496 628 (21%) 2 3 (33%) 498 631 (21%) 52 66 (21%) Individual Annuities 543 145 274% - - - 543 145 274% 54 15 260% Bulk Annuities - 592 - - - - - 592 - - 59 - - Reinsurance from Scott Am Insurance Fund Bulk Annuities 662 1,519 (56%) - - - 662 1,519 (56%) 66 152 (57%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 2,405 2,292 5% 2 3 (33%) 2,407 2,295 5% 243 232 5% Total: Individual Pensions 78 60 30% 20 20 0% 98 80 23% 28 26 8% Corporate Pensions 241 192 26% 120 98 22% 361 290 24% 144 117 23% Life - With Profit 168 129 30% 1 1 0% 169 130 30% 18 14 29% Bond Life - Other Bond 669 682 (2%) - - - 669 682 (2%) 67 68 (1%) Life - Other 547 632 (13%) 7 9 (22%) 554 641 (14%) 62 72 (14%) Individual Annuities 1,877 1,625 16% - - - 1,877 1,625 16% 188 163 15% Bulk Annuities 1,300 1,932 (33%) - - - 1,300 1,932 (33%) 130 193 (33%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 4,880 5,252 (7%) 148 128 16% 5,028 5,380 (7%) 636 653 (3%) DWP Rebates 161 234 (31%) - - - 161 234 (31%) 16 23 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 5,041 5,486 (8%) 148 128 16% 5,189 5,614 (8%) 652 677 (4%) Operations European Insurance Operations (1a) Insurance Products 114 154 (26%) - - - 114 154 (26%) 11 15 (27%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European 114 154 (26%) - - - 114 154 (26%) 11 15 (27%) Insurance Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK & Europe 5,155 5,640 (9%) 148 128 16% 5,303 5,768 (8%) 664 692 (4%) Insurance Operations US Insurance Operations (1a) Fixed Annuities 516 647 (20%) - - - 516 647 (20%) 52 65 (20%) Fixed Index Annuities 437 467 (6%) - - - 437 467 (6%) 44 47 (6%) Variable Annuities 2,809 1,895 48% - - - 2,809 1,895 48% 281 190 48% Life 6 8 (25%) 13 10 30% 19 18 6% 14 11 27% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 3,768 3,017 25% 13 10 30% 3,781 3,027 25% 390 312 25% Guaranteed Investment 325 310 5% - - - 325 310 5% 33 31 6% Contracts GIC - Medium Term Note 442 634 (30%) - - - 442 634 (30%) 44 63 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 4,535 3,961 14% 13 10 30% 4,548 3,971 15% 467 406 15% Operations Asian Insurance Operations (1a) China 22 10 120% 21 16 31% 43 26 65% 23 17 35% Hong Kong 224 205 9% 68 56 21% 292 261 12% 90 77 17% India (@26%) (6) 14 2 600% 77 40 93% 91 42 117% 78 40 95% Indonesia 17 38 (55%) 49 31 58% 66 69 (4%) 51 35 46% Japan 41 18 128% 3 3 0% 44 21 110% 7 5 40% Korea 76 13 485% 155 97 60% 231 110 110% 163 98 66% Malaysia 3 8 (63%) 48 47 2% 51 55 (7%) 48 48 0% Singapore 271 203 33% 47 40 18% 318 243 31% 74 60 23% Taiwan 58 94 (38%) 106 108 (2%) 164 202 (19%) 112 117 (4%) Other (4) 9 7 29% 25 25 0% 34 32 6% 26 26 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 735 598 23% 599 463 29% 1,334 1,061 26% 673 523 29% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 10,425 10,199 2% 760 601 26% 11,185 10,800 4% 1,803 1,621 11% Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 5,303 5,768 (8%) 4,548 3,919 16% 1,334 1,033 29% 11,185 10,720 4% Products Total Investment 9,981 5,600 78% - - - 14,694 14,378 2% 24,675 19,978 24% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 15,284 11,368 34% 4,548 3,919 16% 16,028 15,411 4% 35,860 30,698 17% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 10 10 0% 6 6 0% 16 16 0% 7 7 0% Life - With Profit Bond 16 10 60% 1 1 0% 17 11 55% 3 2 50% Life - Other 13 - - 1 1 0% 14 1 1,300% 2 1 100% Individual Annuities 611 543 13% - - - 611 543 13% 61 54 13% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 650 563 15% 8 8 0% 658 571 15% 73 64 14% DWP Rebates 161 234 (31%) - - - 161 234 (31%) 16 23 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 811 797 2% 8 8 0% 819 805 2% 89 88 1% Business to Business Corporate Pensions 210 160 31% 117 92 27% 327 252 30% 138 108 28% Individual Annuities 173 151 15% - - - 173 151 15% 17 15 13% Bulk Annuities 46 413 (89%) - - - 46 413 (89%) 5 41 (88%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 429 724 (41%) 117 92 27% 546 816 (33%) 160 164 (2%) Intermediated Distribution Individual Pensions 67 50 34% 14 14 0% 81 64 27% 21 19 11% Corporate Pensions 31 32 (3%) 3 6 (50%) 34 38 (11%) 6 9 (33%) Life - With Profit Bond 142 119 19% - - - 142 119 19% 14 12 17% Life - Other Bond 568 682 (17%) - - - 568 682 (17%) 57 68 (16%) Life - Other 38 4 850% 4 5 (20%) 42 9 367% 8 5 60% Individual Annuities 550 786 (30%) - - - 550 786 (30%) 55 79 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 1,396 1,673 (17%) 21 25 (16%) 1,417 1,698 (17%) 161 192 (16%) Partnerships Individual Pensions 1 - - - - - 1 - - - - - Life - With Profit Bond 10 - - - - - 10 - - 1 - - Life - Other Bond 101 - - - - - 101 - - 10 - - Life - Other 496 628 (21%) 2 3 (33%) 498 631 (21%) 52 66 (21%) Individual Annuities 543 145 274% - - - 543 145 274% 54 15 260% Bulk Annuities - 592 - - - - - 592 - - 59 - - Reinsurance from Scott Am Insurance Fund Bulk Annuities 662 1,519 (56%) - - - 662 1,519 (56%) 66 152 (57%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 2,405 2,292 5% 2 3 (33%) 2,407 2,295 5% 243 232 5% Total: Individual Pensions 78 60 30% 20 20 0% 98 80 23% 28 26 8% Corporate Pensions 241 192 26% 120 98 22% 361 290 24% 144 117 23% Life - With Profit Bond 168 129 30% 1 1 0% 169 130 30% 18 14 29% Life - Other Bond 669 682 (2%) - - - 669 682 (2%) 67 68 (1%) Life - Other 547 632 (13%) 7 9 (22%) 554 641 (14%) 62 72 (14%) Individual Annuities 1,877 1,625 16% - - - 1,877 1,625 16% 188 163 15% Bulk Annuities 1,300 1,932 (33%) - - - 1,300 1,932 (33%) 130 193 (33%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 4,880 5,252 (7%) 148 128 16% 5,028 5,380 (7%) 636 653 (3%) DWP Rebates 161 234 (31%) - - - 161 234 (31%) 16 23 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 5,041 5,486 (8%) 148 128 16% 5,189 5,614 (8%) 652 677 (4%) Operations European Insurance Operations (1b) Insurance Products 114 154 (26%) - - - 114 154 (26%) 11 15 (27%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European Insurance 114 154 (26%) - - - 114 154 (26%) 11 15 (27%) Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK & Europe 5,155 5,640 (9%) 148 128 16% 5,303 5,768 (8%) 664 692 (4%) Insurance Operations US Insurance Operations (1b) Fixed Annuities 516 639 (19%) - - - 516 639 (19%) 52 64 (19%) Fixed Index Annuities 437 460 (5%) - - - 437 460 (5%) 44 46 (4%) Variable Annuities 2,809 1,870 50% - - - 2,809 1,870 50% 281 187 50% Life 6 8 (25%) 13 10 30% 19 18 6% 14 11 27% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 3,768 2,977 27% 13 10 30% 3,781 2,987 27% 390 308 27% Guaranteed Investment 325 306 6% - - - 325 306 6% 33 31 6% Contracts GIC - Medium Term Note 442 626 (29%) - - - 442 626 (29%) 44 63 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 4,535 3,909 16% 13 10 30% 4,548 3,919 16% 467 401 16% Operations Asian Insurance Operations (1b) China 22 10 120% 21 15 40% 43 25 72% 23 16 44% Hong Kong 224 201 11% 68 55 24% 292 256 14% 90 75 20% India (@26%) (6) 14 2 600% 77 41 88% 91 43 112% 78 41 90% Indonesia 17 36 (53%) 49 29 69% 66 65 2% 51 33 55% Japan 41 19 116% 3 3 0% 44 22 100% 7 5 40% Korea 76 12 533% 155 90 72% 231 102 126% 163 91 79% Malaysia 3 8 (63%) 48 45 7% 51 53 (4%) 48 46 4% Singapore 271 194 40% 47 38 24% 318 232 37% 74 57 30% Taiwan 58 95 (39%) 106 110 (4%) 164 205 (20%) 112 120 (7%) Other (4) 9 6 50% 25 24 4% 34 30 13% 26 25 4% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 735 583 26% 599 450 33% 1,334 1,033 29% 673 508 32% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 10,425 10,132 3% 760 588 29% 11,185 10,720 4% 1,803 1,601 13%
Schedule 2 PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2006 INVESTMENT OPERATIONS
Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm 2006 M&G Retail 14,627 5,147 (2,597) 2,550 - 592 3,142 17,769 Institutional (5) 21,568 4,834 (2,275) 2,559 147 215 2,921 24,489 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 36,195 9,981 (4,872) 5,109 147 807 6,063 42,258 Asia (10) India (9) 1,005 647 (495) 152 (32) (127) (7) 998 Taiwan 632 668 (599) 69 - (10) 59 691 Korea 2,269 2,486 (1,522) 964 (270) 5 699 2,968 Japan 2,695 798 (749) 49 - (171) (122) 2,573 Other Mutual Fund Operations 1,037 587 (421) 166 - (10) 156 1,193 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/Other 7,638 5,186 (3,786) 1,400 (302) (313) 785 8,423 MMF India (9) 461 6,690 (6,444) 246 9 111 366 827 Taiwan 667 1,082 (1,199) (117) - (48) (165) 502 Korea 534 1,515 (1,535) (20) (17) 6 (31) 503 Other Mutual Fund Operations 143 141 (134) 7 - (9) (2) 141 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 1,805 9,428 (9,312) 116 (8) 60 168 1,973 ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 9,443 14,614 (13,098) 1,516 (310) (253) 953 10,396 Third Party Institutional 691 80 (37) 43 - 24 67 758 Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 10,134 14,694 (13,135) 1,559 (310) (229) 1,020 11,154 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 46,329 24,675 (18,007) 6,668 (163) 578 7,083 53,412 Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm 2005 M&G Retail 11,613 2,714 (1,815) 899 - 1,214 2,113 13,726 Institutional (5) 17,092 2,886 (1,050) 1,836 (156) 1,262 2,942 20,034 ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 28,705 5,600 (2,865) 2,735 (156) 2,476 5,055 33,760 Asia (10) India (9) 1,231 1,601 (1,468) 133 (654) 236 (285) 946 Taiwan 485 314 (335) (21) - 82 61 546 Korea 1,089 1,404 (967) 437 (15) 244 666 1,755 Japan 1,638 1,138 (302) 836 - 68 904 2,542 Other Mutual Fund Operations 646 507 (232) 275 - 79 354 1,000 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/Other 5,089 4,964 (3,304) 1,660 (669) 709 1,700 6,789 MMF India (9) 913 6,896 (6,890) 6 (532) 79 (447) 466 Taiwan 1,312 1,522 (2,071) (549) - 60 (489) 823 Korea 338 834 (799) 35 (6) 32 61 399 Other Mutual Fund Operations 181 162 (221) (59) - 6 (53) 128 ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF 2,744 9,414 (9,981) (567) (538) 177 (928) 1,816 ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 7,833 14,378 (13,285) 1,093 (1,207) 886 772 8,605 Third Party Institutional 705 - (150) (150) - 114 (36) 669 Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 8,538 14,378 (13,435) 943 (1,207) 1,000 736 9,274 Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 37,243 19,978 (16,300) 3,678 (1,363) 3,476 5,791 43,034 Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows % % % % % % % % 2006 Movement Relative to 2005 M&G Retail 26% 90% (43%) 184% - (51%) 49% 29% Institutional 26% 67% (117%) 39% 194% (83%) (1%) 22% ______ ______ ______ ______ ______ ______ ______ ______ Total M&G 26% 78% (70%) 87% 194% (67%) 20% 25% Asia (10) India (9) (18%) (60%) 66% 14% 95% (154%) 98% 5% Taiwan 30% 113% (79%) 429% - (112%) (3%) 27% Korea 108% 77% (57%) 121% (1,700%) (98%) 5% 69% Japan 65% (30%) (148%) (94%) - (351%) (113%) 1% Other Mutual Fund Operations 61% 16% (81%) (40%) - (113%) (56%) 19% ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Equity/Bond/Other 50% 4% (15%) (16%) 55% (144%) (54%) 24% MMF India (9) (50%) (3%) 6% 4,000% 102% 41% 182% 77% Taiwan (49%) (29%) 42% 79% - (180%) 66% (39%) Korea 58% 82% (92%) (157%) (183%) (81%) (151%) 26% Other Mutual Fund Operations (21%) (13%) 39% 112% - (250%) 96% 10% ______ ______ ______ ______ ______ ______ ______ ______ Total Asian MMF (34%) 0% 7% 120% 99% (66%) 118% 9% ______ ______ ______ ______ ______ ______ ______ ______ Total Asia Retail Mutual Funds 21% 2% 1% 39% 74% (129%) 23% 21% Third Party Institutional (2%) - 75% 129% - (79%) 286% 13% Mandates ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Investment 19% 2% 2% 65% 74% (123%) 39% 20% Operations ______ ______ ______ ______ ______ ______ ______ ______ Total Investment Products 24% 24% (10%) 81% 88% (83%) 22% 24% 2006 Q3 2005 Q3 US (7) YTD YTD +/- (%) GBPm GBPm Curian Capital External Funds Under 1,155 809 43% Administration
Schedule 3 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2006 VERSUS QUARTER 3 2005 INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 2 2 0% 1 2 (50%) 3 4 (25%) 1 2 (50%) Life - With Profit Bond 6 4 50% - - - 6 4 50% 1 - - Life - Other 4 - - - - - 4 - - - - - Individual Annuities 199 178 12% - - - 199 178 12% 20 18 11% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 211 184 15% 1 2 (50%) 212 186 14% 22 20 10% DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 211 184 15% 1 2 (50%) 212 186 14% 22 20 10% Business to Business Corporate Pensions 32 46 (30%) 43 25 72% 75 71 6% 46 30 53% Individual Annuities 71 54 31% - - - 71 54 31% 7 5 40% Bulk Annuities 22 93 (76%) - - - 22 93 (76%) 2 9 (78%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 125 193 (35%) 43 25 72% 168 218 (23%) 56 44 27% Intermediated Distribution Individual Pensions 11 11 0% 5 5 0% 16 16 0% 6 6 0% Corporate Pensions 9 9 0% 1 2 (50%) 10 11 (9%) 2 3 (33%) Life - With Profit Bond 50 44 14% - - - 50 44 14% 5 4 25% Life - Other Bond 128 209 (39%) - - - 128 209 (39%) 13 21 (38%) Life - Other 19 1 1,800% 1 2 (50%) 20 3 567% 3 2 50% Individual Annuities 192 228 (16%) - - - 192 228 (16%) 19 23 (17%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 409 502 (19%) 7 9 (22%) 416 511 (19%) 48 59 (19%) Partnerships Individual Pensions - - - - - - - - - - - - Life - With Profit Bond 5 - - - - - 5 - - 1 - - Life - Other Bond 25 - - - - - 25 - - 3 - - Life - Other 180 203 (11%) 1 2 (50%) 181 205 (12%) 19 22 (14%) Individual Annuities 280 52 438% - - - 280 52 438% 28 5 460% Bulk Annuities - - - - - - - - - - - - - Reinsurance from Scott Am Insurance Fund Bulk Annuities - 44 - - - - - 44 - - 4 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 490 299 64% 1 2 (50%) 491 301 63% 50 32 56% Total: Individual Pensions 13 13 0% 6 7 (14%) 19 20 (5%) 7 8 (13%) Corporate Pensions 41 55 (25%) 44 27 63% 85 82 4% 48 33 45% Life - With Profit Bond 61 48 27% - - - 61 48 27% 6 5 20% Life - Other Bond 153 209 (27%) - - - 153 209 (27%) 15 21 (29%) Life - Other 203 204 (0%) 2 4 (50%) 205 208 (1%) 22 24 (8%) Individual Annuities 742 512 45% - - - 742 512 45% 74 51 45% Bulk Annuities 22 137 (84%) - - - 22 137 (84%) 2 14 (86%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,235 1,178 5% 52 38 37% 1,287 1,216 6% 176 156 13% DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,235 1,178 5% 52 38 37% 1,287 1,216 6% 176 156 13% Operations European Insurance Operations Insurance Products 33 34 (3%) - - - 33 34 (3%) 3 3 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European Insurance 33 34 (3%) - - - 33 34 (3%) 3 3 0% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK and Europe 1,268 1,212 5% 52 38 37% 1,320 1,250 6% 179 159 13% Insurance Operations US Insurance Operations (8) Fixed Annuities 204 229 (11%) - - - 204 229 (11%) 20 23 (13%) Fixed Index Annuities 144 164 (12%) - - - 144 164 (12%) 14 16 (13%) Variable Annuities 922 686 34% - - - 922 686 34% 92 69 33% Life 2 2 0% 4 4 0% 6 6 0% 4 4 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,272 1,081 18% 4 4 0% 1,276 1,085 18% 131 112 17% Guaranteed Investment 15 119 (87%) - - - 15 119 (87%) 2 12 (83%) Contracts GIC - Medium Term Note 105 10 950% - - - 105 10 950% 11 1 1,000% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,392 1,210 15% 4 4 0% 1,396 1,214 15% 143 125 14% Operations Asian Insurance Operations (8) China 5 5 0% 8 6 33% 13 11 18% 9 7 29% Hong Kong 85 54 57% 26 20 30% 111 74 50% 35 25 40% India (@26%) (6) 3 1 200% 22 14 57% 25 15 67% 22 14 57% Indonesia 6 8 (25%) 18 12 50% 24 20 20% 19 13 46% Japan 19 8 138% 2 1 100% 21 9 133% 4 2 100% Korea 18 2 800% 52 31 68% 70 33 112% 54 31 74% Malaysia 1 2 (50%) 18 17 6% 19 19 0% 18 17 6% Singapore 65 77 (16%) 18 15 20% 83 92 (10%) 25 23 9% Taiwan 11 23 (52%) 32 55 (42%) 43 78 (45%) 33 57 (42%) Other (4) 3 3 0% 8 8 0% 11 11 0% 8 8 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 216 183 18% 204 179 14% 420 362 16% 226 197 15% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 2,876 2,605 10% 260 221 18% 3,136 2,826 11% 548 482 14% INVESTMENT OPERATIONS M&G (5) Asia Retail Mutual Asia Third Party Total Investment Funds Products Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 40,135 31,171 29% 10,262 9,139 12% 673 615 9% 51,070 40,925 25% Gross Inflows 3,186 2,021 58% 4,596 4,959 (7%) 72 - - 7,854 6,980 13% Less Redemptions (1,671) (966) (73%) (4,790) (4,562) (5%) (29) - - (6,490) (5,528) (17%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Flows 1,515 1,055 44% (194) 397 (149%) 43 - - 1,364 1,452 (6%) Other Movements 104 (35) 397% (41) (1,161) 96% - - - 63 (1,196) 105% Market And Currency 504 1,569 (68%) 369 230 60% 42 54 (22%) 915 1,853 (51%) Movements ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Movements in FUM 2,123 2,589 (18%) 134 (534) 125% 85 54 57% 2,342 2,109 11% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Closing FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24%
Schedule 4 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2006 VERSUS QUARTER 2 2006 INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 2 4 (50%) 1 2 (50%) 3 6 (50%) 1 2 (50%) Life - With Profit Bond 6 7 (14%) - - - 6 7 (14%) 1 1 0% Life - Other 4 5 (20%) - - - 4 5 (20%) - 1 - Individual Annuities 199 247 (19%) - - - 199 247 (19%) 20 25 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 211 263 (20%) 1 2 (50%) 212 265 (20%) 22 28 (21%) DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 211 263 (20%) 1 2 (50%) 212 265 (20%) 22 28 (21%) Business to Business Corporate Pensions 32 59 (46%) 43 48 (10%) 75 107 (30%) 46 54 (15%) Individual Annuities 71 58 22% - - - 71 58 22% 7 6 17% Bulk Annuities 22 22 0% - - - 22 22 0% 2 2 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 125 139 (10%) 43 48 (10%) 168 187 (10%) 56 62 (10%) Intermediated Distribution Individual Pensions 11 27 (59%) 5 5 0% 16 32 (50%) 6 8 (25%) Corporate Pensions 9 12 (25%) 1 1 0% 10 13 (23%) 2 2 0% Life - With Profit Bond 50 48 4% - - - 50 48 4% 5 5 0% Life - Other Bond 128 218 (41%) - - - 128 218 (41%) 13 22 (41%) Life - Other 19 15 27% 1 1 0% 20 16 25% 3 3 0% Individual Annuities 192 169 14% - - - 192 169 14% 19 17 12% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 409 489 (16%) 7 7 0% 416 496 (16%) 48 56 (14%) Partnerships Individual Pensions - - - - - - - - - - - - Life - With Profit Bond 5 2 150% - - - 5 2 150% 1 - - Life - Other Bond 25 33 (24%) - - - 25 33 (24%) 3 3 0% Life - Other 180 159 13% 1 1 0% 181 160 13% 19 17 12% Individual Annuities 280 172 63% - - - 280 172 63% 28 17 65% Bulk Annuities - - 592 - - - - - 592 - - 59 - Reinsurance from Scott Am Insurance Fund Bulk Annuities - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 490 958 (49%) 1 1 0% 491 959 (49%) 50 97 (48%) Total: Individual Pensions 13 31 (58%) 6 7 (14%) 19 38 (50%) 7 10 (30%) Corporate Pensions 41 71 (42%) 44 49 (10%) 85 120 (29%) 48 56 (14%) Life - With Profit Bond 61 57 7% - - - 61 57 7% 6 6 0% Life - Other Bond 153 251 (39%) - - - 153 251 (39%) 15 25 (40%) Life - Other 203 179 13% 2 2 0% 205 181 13% 22 20 10% Individual Annuities 742 646 15% - - - 742 646 15% 74 65 14% Bulk Annuities 22 614 (96%) - - - 22 614 (96%) 2 61 (97%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,235 1,849 (33%) 52 58 (10%) 1,287 1,907 (33%) 176 243 (28%) DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,235 1,849 (33%) 52 58 (10%) 1,287 1,907 (33%) 176 243 (28%) Operations European Insurance Operations Insurance Products 33 29 14% - - - 33 29 14% 3 3 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European 33 29 14% - - - 33 29 14% 3 3 0% Insurance Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK and Europe 1,268 1,878 (32%) 52 58 (10%) 1,320 1,936 (32%) 179 246 (27%) Insurance Operations US Insurance Operations (8) Fixed Annuities 204 164 24% - - - 204 164 24% 20 16 25% Fixed Index Annuities 144 160 (10%) - - - 144 160 (10%) 14 16 (13%) Variable Annuities 922 993 (7%) - - - 922 993 (7%) 92 99 (7%) Life 2 2 0% 4 5 (20%) 6 7 (14%) 4 5 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,272 1,319 (4%) 4 5 (20%) 1,276 1,324 (4%) 131 137 (4%) Guaranteed Investment 15 37 (59%) - - - 15 37 (59%) 2 4 (50%) Contracts GIC - Medium Term Note 105 164 (36%) - - - 105 164 (36%) 11 16 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,392 1,520 (8%) 4 5 (20%) 1,396 1,525 (8%) 143 157 (9%) Operations Asian Insurance Operations (8) China 5 6 (17%) 8 8 0% 13 14 (7%) 9 9 0% Hong Kong 85 73 16% 26 22 18% 111 95 17% 35 29 21% India (@26%) (6) 3 3 0% 22 23 (4%) 25 26 (4%) 22 23 (4%) Indonesia 6 7 (14%) 18 17 6% 24 24 0% 19 18 6% Japan 19 12 58% 2 1 100% 21 13 62% 4 2 100% Korea 18 28 (36%) 52 51 2% 70 79 (11%) 54 54 0% Malaysia 1 1 0% 18 16 13% 19 17 12% 18 16 13% Singapore 65 118 (45%) 18 15 20% 83 133 (38%) 25 27 (7%) Taiwan 11 16 (31%) 32 32 0% 43 48 (10%) 33 34 (3%) Other (4) 3 3 0% 8 9 (11%) 11 12 (8%) 8 9 (11%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 216 267 (19%) 204 194 5% 420 461 (9%) 226 221 2% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 2,876 3,665 (22%) 260 257 1% 3,136 3,922 (20%) 548 624 (12%) INVESTMENT OPERATIONS M&G (5) Asia Retail Mutual Asia Third Party Total Investment Funds Products Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 40,135 39,669 1% 10,262 10,172 1% 673 732 (8%) 51,070 50,573 1% Gross Inflows 3,186 3,880 (18%) 4,596 5,618 (18%) 72 3 2,300% 7,854 9,501 (17%) Less Redemptions (1,671) (2,030) 18% (4,790) (4,416) (8%) (29) (4) (625%) (6,490) (6,450) (1%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Flows 1,515 1,850 (18%) (194) 1,202 (116%) 43 (1) 4,400% 1,364 3,051 (55%) Other Movements 104 (8) 1,400% (41) (144) 72% - - - 63 (152) 141% Market And Currency 504 (1,376) 137% 369 (968) 138% 42 (58) 172% 915 (2,402) 138% Movements ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Movements in FUM 2,123 466 356% 134 90 49% 85 (59) 244% 2,342 497 371% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Closing FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
Schedule 5 - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1a) Asia Total (1a) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 5,303 5,768 (8%) 4,548 3,971 15% 1,334 1,061 26% 11,185 10,800 4% Products Total Investment 9,981 5,600 78% - - - 14,694 14,253 3% 24,675 19,853 24% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 15,284 11,368 34% 4,548 3,971 15% 16,028 15,314 5% 35,860 30,653 17% INSURANCE OPERATIONS Single Regular Total PVNBP (3) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 10 10 0% 6 6 0% 16 16 0% 33 33 0% Life - With Profit 16 10 60% 1 1 0% 17 11 55% 20 11 82% Bond Life - Other 13 - - 1 1 0% 14 1 1,300% 17 4 325% Individual Annuities 611 543 13% - - - 611 543 13% 611 543 13% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 650 563 15% 8 8 0% 658 571 15% 681 591 15% DWP Rebates 161 234 (31%) - - - 161 234 (31%) 161 234 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 811 797 2% 8 8 0% 819 805 2% 842 825 2% Business to Business Corporate Pensions 210 160 31% 117 92 27% 327 252 30% 661 536 23% Individual Annuities 173 151 15% - - - 173 151 15% 173 151 15% Bulk Annuities 46 413 (89%) - - - 46 413 (89%) 46 413 (89%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 429 724 (41%) 117 92 27% 546 816 (33%) 880 1,100 (20%) Intermediated Distribution Individual Pensions 67 50 34% 14 14 0% 81 64 27% 124 101 23% Corporate Pensions 31 32 (3%) 3 6 (50%) 34 38 (11%) 45 52 (13%) Life - With Profit 142 119 19% - - - 142 119 19% 142 120 18% Bond Life - Other Bond 568 682 (17%) - - - 568 682 (17%) 568 682 (17%) Life - Other 38 4 850% 4 5 (20%) 42 9 367% 62 30 107% Individual Annuities 550 786 (30%) - - - 550 786 (30%) 550 786 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 1,396 1,673 (17%) 21 25 (16%) 1,417 1,698 (17%) 1,491 1,771 (16%) Partnerships Individual Pensions 1 - - - - - 1 - - 2 - - Life - With Profit 10 - - - - - 10 - - 10 - - Bond Life - Other Bond 101 - - - - - 101 - - 101 - - Life - Other 496 628 (21%) 2 3 (33%) 498 631 (21%) 507 641 (21%) Individual Annuities 543 145 274% - - - 543 145 274% 543 145 274% Bulk Annuities - 592 - - - - - 592 - - 592 - - Reinsurance from Scott Am Insurance Fund Bulk Annuities 662 1,519 (56%) - - - 662 1,519 (56%) 662 1,519 (56%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 2,405 2,292 5% 2 3 (33%) 2,407 2,295 5% 2,417 2,305 5% Total: Individual Pensions 78 60 30% 20 20 0% 98 80 23% 159 134 19% Corporate Pensions 241 192 26% 120 98 22% 361 290 24% 706 588 20% Life - With Profit 168 129 30% 1 1 0% 169 130 30% 172 131 31% Bond Life - Other Bond 669 682 (2%) - - - 669 682 (2%) 669 682 (2%) Life - Other 547 632 (13%) 7 9 (22%) 554 641 (14%) 586 675 (13%) Individual Annuities 1,877 1,625 16% - - - 1,877 1,625 16% 1,877 1,625 16% Bulk Annuities 1,300 1,932 (33%) - - - 1,300 1,932 (33%) 1,300 1,932 (33%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 4,880 5,252 (7%) 148 128 16% 5,028 5,380 (7%) 5,469 5,767 (5%) DWP Rebates 161 234 (31%) - - - 161 234 (31%) 161 234 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 5,041 5,486 (8%) 148 128 16% 5,189 5,614 (8%) 5,630 6,001 (6%) Operations European Insurance Operations (1a) Insurance Products 114 154 (26%) - - - 114 154 (26%) 114 153 (25%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European 114 154 (26%) - - - 114 154 (26%) 114 153 (25%) Insurance Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK & Europe 5,155 5,640 (9%) 148 128 16% 5,303 5,768 (8%) 5,744 6,154 (7%) Insurance Operations US Insurance Operations (1a) Fixed Annuities 516 647 (20%) - - - 516 647 (20%) 516 647 (20%) Fixed Index Annuities 437 467 (6%) - - - 437 467 (6%) 437 467 (6%) Variable Annuities 2,809 1,895 48% - - - 2,809 1,895 48% 2,809 1,896 48% Life 6 8 (25%) 13 10 30% 19 18 6% 104 101 3% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 3,768 3,017 25% 13 10 30% 3,781 3,027 25% 3,866 3,111 24% Guaranteed Investment 325 310 5% - - - 325 310 5% 325 310 5% Contracts GIC - Medium Term Note 442 634 (30%) - - - 442 634 (30%) 442 634 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 4,535 3,961 14% 13 10 30% 4,548 3,971 15% 4,633 4,055 14% Operations Asian Insurance Operations (1a) China 22 10 120% 21 16 31% 43 26 65% 138 99 39% Hong Kong 224 205 9% 68 56 21% 292 261 12% 609 491 24% India (@26%) (6) 14 2 600% 77 40 93% 91 42 117% 263 153 72% Indonesia 17 38 (55%) 49 31 58% 66 69 (4%) 183 155 18% Japan 41 18 128% 3 3 0% 44 21 110% 55 35 57% Korea 76 13 485% 155 97 60% 231 110 110% 730 437 67% Malaysia 3 8 (63%) 48 47 2% 51 55 (7%) 282 272 4% Singapore 271 203 33% 47 40 18% 318 243 31% 566 493 15% Taiwan 58 94 (38%) 106 108 (2%) 164 202 (19%) 600 661 (9%) Other (4) 9 7 29% 25 25 0% 34 32 6% 99 97 2% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 735 598 23% 599 463 29% 1,334 1,061 26% 3,525 2,893 22% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 10,425 10,199 2% 760 601 26% 11,185 10,800 4% 13,902 13,102 6%
Schedule 6 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - NINE MONTHS 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US (1b) Asia (1b) Total 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 5,303 5,768 (8%) 4,548 3,919 16% 1,334 1,033 29% 11,185 10,720 4% Products Total Investment 9,981 5,600 78% - - - 14,694 14,378 2% 24,675 19,978 24% Products - Gross Inflows (2) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 15,284 11,368 34% 4,548 3,919 16% 16,028 15,411 4% 35,860 30,698 17% INSURANCE OPERATIONS Single Regular Total PVNBP (3) 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 2006 Q3 2005 Q3 YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) YTD YTD +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 10 10 0% 6 6 0% 16 16 0% 33 33 0% Life - With Profit Bond 16 10 60% 1 1 0% 17 11 55% 20 11 82% Life - Other 13 - - 1 1 0% 14 1 1,300% 17 4 325% Individual Annuities 611 543 13% - - - 611 543 13% 611 543 13% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 650 563 15% 8 8 0% 658 571 15% 681 591 15% DWP Rebates 161 234 (31%) - - - 161 234 (31%) 161 234 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 811 797 2% 8 8 0% 819 805 2% 842 825 2% Business to Business Corporate Pensions 210 160 31% 117 92 27% 327 252 30% 661 536 23% Individual Annuities 173 151 15% - - - 173 151 15% 173 151 15% Bulk Annuities 46 413 (89%) - - - 46 413 (89%) 46 413 (89%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 429 724 (41%) 117 92 27% 546 816 (33%) 880 1,100 (20%) Intermediated Distribution Individual Pensions 67 50 34% 14 14 0% 81 64 27% 124 101 23% Corporate Pensions 31 32 (3%) 3 6 (50%) 34 38 (11%) 45 52 (13%) Life - With Profit Bond 142 119 19% - - - 142 119 19% 142 120 18% Life - Other Bond 568 682 (17%) - - - 568 682 (17%) 568 682 (17%) Life - Other 38 4 850% 4 5 (20%) 42 9 367% 62 30 107% Individual Annuities 550 786 (30%) - - - 550 786 (30%) 550 786 (30%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 1,396 1,673 (17%) 21 25 (16%) 1,417 1,698 (17%) 1,491 1,771 (16%) Partnerships Individual Pensions 1 - - - - - 1 - - 2 - - Life - With Profit Bond 10 - - - - - 10 - - 10 - - Life - Other Bond 101 - - - - - 101 - - 101 - - Life - Other 496 628 (21%) 2 3 (33%) 498 631 (21%) 507 641 (21%) Individual Annuities 543 145 274% - - - 543 145 274% 543 145 274% Bulk Annuities - 592 - - - - - 592 - - 592 - - Reinsurance from Scott Am Insurance Fund Bulk Annuities 662 1,519 (56%) - - - 662 1,519 (56%) 662 1,519 (56%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 2,405 2,292 5% 2 3 (33%) 2,407 2,295 5% 2,417 2,305 5% Total: Individual Pensions 78 60 30% 20 20 0% 98 80 23% 159 134 19% Corporate Pensions 241 192 26% 120 98 22% 361 290 24% 706 588 20% Life - With Profit Bond 168 129 30% 1 1 0% 169 130 30% 172 131 31% Life - Other Bond 669 682 (2%) - - - 669 682 (2%) 669 682 (2%) Life - Other 547 632 (13%) 7 9 (22%) 554 641 (14%) 586 675 (13%) Individual Annuities 1,877 1,625 16% - - - 1,877 1,625 16% 1,877 1,625 16% Bulk Annuities 1,300 1,932 (33%) - - - 1,300 1,932 (33%) 1,300 1,932 (33%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 4,880 5,252 (7%) 148 128 16% 5,028 5,380 (7%) 5,469 5,767 (5%) DWP Rebates 161 234 (31%) - - - 161 234 (31%) 161 234 (31%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 5,041 5,486 (8%) 148 128 16% 5,189 5,614 (8%) 5,630 6,001 (6%) Operations European Insurance Operations (1b) Insurance Products 114 154 (26%) - - - 114 154 (26%) 114 154 (26%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European Insurance 114 154 (26%) - - - 114 154 (26%) 114 154 (26%) Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK & Europe 5,155 5,640 (9%) 148 128 16% 5,303 5,768 (8%) 5,744 6,155 (7%) Insurance Operations US Insurance Operations (1b) Fixed Annuities 516 639 (19%) - - - 516 639 (19%) 516 639 (19%) Fixed Index Annuities 437 460 (5%) - - - 437 460 (5%) 437 460 (5%) Variable Annuities 2,809 1,870 50% - - - 2,809 1,870 50% 2,809 1,870 50% Life 6 8 (25%) 13 10 30% 19 18 6% 104 99 5% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 3,768 2,977 27% 13 10 30% 3,781 2,987 27% 3,866 3,068 26% Guaranteed Investment 325 306 6% - - - 325 306 6% 325 306 6% Contracts GIC - Medium Term Note 442 626 (29%) - - - 442 626 (29%) 442 626 (29%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 4,535 3,909 16% 13 10 30% 4,548 3,919 16% 4,633 4,000 16% Operations Asian Insurance Operations (1b) China 22 10 120% 21 15 40% 43 25 72% 138 95 45% Hong Kong 224 201 11% 68 55 24% 292 256 14% 609 483 26% India (@26%) (6) 14 2 600% 77 41 88% 91 43 112% 263 157 68% Indonesia 17 36 (53%) 49 29 69% 66 65 2% 183 146 25% Japan 41 19 116% 3 3 0% 44 22 100% 55 37 49% Korea 76 12 533% 155 90 72% 231 102 126% 730 406 80% Malaysia 3 8 (63%) 48 45 7% 51 53 (4%) 282 261 8% Singapore 271 194 40% 47 38 24% 318 232 37% 566 469 21% Taiwan 58 95 (39%) 106 110 (4%) 164 205 (20%) 600 667 (10%) Other (4) 9 6 50% 25 24 4% 34 30 13% 99 94 5% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 735 583 26% 599 450 33% 1,334 1,033 29% 3,525 2,815 25% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 10,425 10,132 3% 760 588 29% 11,185 10,720 4% 13,902 12,970 7% Schedule 7 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2006 VERSUS QUARTER 3 2005 INSURANCE OPERATIONS Single Regular Total PVNBP (3) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 2 2 0% 1 2 (50%) 3 4 (25%) 8 8 0% Life - With Profit Bond 6 4 50% - - - 6 4 50% 9 5 80% Life - Other 4 - - - - - 4 - - 8 2 300% Individual Annuities 199 178 12% - - - 199 178 12% 199 178 12% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 211 184 15% 1 2 (50%) 212 186 14% 224 193 16% DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 211 184 15% 1 2 (50%) 212 186 14% 224 193 16% Business to Business Corporate Pensions 32 46 (30%) 43 25 72% 75 71 6% 209 150 39% Individual Annuities 71 54 31% - - - 71 54 31% 71 54 31% Bulk Annuities 22 93 (76%) - - - 22 93 (76%) 22 93 (76%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 125 193 (35%) 43 25 72% 168 218 (23%) 302 297 2% Intermediated Distribution Individual Pensions 11 11 0% 5 5 0% 16 16 0% 45 26 73% Corporate Pensions 9 9 0% 1 2 (50%) 10 11 (9%) 23 15 53% Life - With Profit Bond 50 44 14% - - - 50 44 14% 50 44 14% Life - Other Bond 128 209 (39%) - - - 128 209 (39%) 128 209 (39%) Life - Other 19 1 1,800% 1 2 (50%) 20 3 567% 27 12 125% Individual Annuities 192 228 (16%) - - - 192 228 (16%) 192 228 (16%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 409 502 (19%) 7 9 (22%) 416 511 (19%) 465 534 (13%) Partnerships Individual Pensions - - - - - - - - - 1 - - Life - With Profit Bond 5 - - - - - 5 - - 5 - - Life - Other Bond 25 - - - - - 25 - - 25 - - Life - Other 180 203 (11%) 1 2 (50%) 181 205 (12%) 189 203 (7%) Individual Annuities 280 52 438% - - - 280 52 438% 280 52 438% Bulk Annuities - - - - - - - - - - - - - Reinsurance from Scott Am Insurance Fund Bulk Annuities - 44 - - - - - 44 - - 44 - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 490 299 64% 1 2 (50%) 491 301 63% 500 299 67% Total: Individual Pensions 13 13 0% 6 7 (14%) 19 20 (5%) 54 34 59% Corporate Pensions 41 55 (25%) 44 27 63% 85 82 4% 232 165 41% Life - With Profit Bond 61 48 27% - - - 61 48 27% 64 49 31% Life - Other Bond 153 209 (27%) - - - 153 209 (27%) 153 209 (27%) Life - Other 203 204 (0%) 2 4 (50%) 205 208 (1%) 224 217 3% Individual Annuities 742 512 45% - - - 742 512 45% 742 512 45% Bulk Annuities 22 137 (84%) - - - 22 137 (84%) 22 137 (84%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,235 1,178 5% 52 38 37% 1,287 1,216 6% 1,491 1,323 13% DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,235 1,178 5% 52 38 37% 1,287 1,216 6% 1,491 1,323 13% Operations European Insurance Operations Insurance Products 33 34 (3%) - - - 33 34 (3%) 33 34 (3%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European Insurance 33 34 (3%) - - - 33 34 (3%) 33 34 (3%) Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK and Europe 1,268 1,212 5% 52 38 37% 1,320 1,250 6% 1,524 1,357 12% Insurance Operations US Insurance Operations (8) Fixed Annuities 204 229 (11%) - - - 204 229 (11%) 204 229 (11%) Fixed Index Annuities 144 164 (12%) - - - 144 164 (12%) 144 164 (12%) Variable Annuities 922 686 34% - - - 922 686 34% 922 686 34% Life 2 2 0% 4 4 0% 6 6 0% 35 44 (20%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,272 1,081 18% 4 4 0% 1,276 1,085 18% 1,305 1,123 16% Guaranteed Investment 15 119 (87%) - - - 15 119 (87%) 15 119 (87%) Contracts GIC - Medium Term Note 105 10 950% - - - 105 10 950% 105 10 950% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,392 1,210 15% 4 4 0% 1,396 1,214 15% 1,425 1,252 14% Operations Asian Insurance Operations (8) China 5 5 0% 8 6 33% 13 11 18% 50 37 35% Hong Kong 85 54 57% 26 20 30% 111 74 50% 248 178 39% India (@26%) (6) 3 1 200% 22 14 57% 25 15 67% 86 48 79% Indonesia 6 8 (25%) 18 12 50% 24 20 20% 66 40 65% Japan 19 8 138% 2 1 100% 21 9 133% 26 16 63% Korea 18 2 800% 52 31 68% 70 33 112% 238 119 100% Malaysia 1 2 (50%) 18 17 6% 19 19 0% 97 102 (5%) Singapore 65 77 (16%) 18 15 20% 83 92 (10%) 176 192 (8%) Taiwan 11 23 (52%) 32 55 (42%) 43 78 (45%) 180 320 (44%) Other (4) 3 3 0% 8 8 0% 11 11 0% 32 28 14% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 216 183 18% 204 179 14% 420 362 16% 1,199 1,080 11% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 2,876 2,605 10% 260 221 18% 3,136 2,826 11% 4,148 3,689 12% INVESTMENT OPERATIONS M&G (5) Asia Retail Mutual Asia Third Party Total Investment Funds Products Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) Q3 2006 Q3 2005 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 40,135 31,171 29% 10,262 9,139 12% 673 615 9% 51,070 40,925 25% Gross Inflows 3,186 2,021 58% 4,596 4,959 (7%) 72 - - 7,854 6,980 13% Less Redemptions (1,671) (966) (73%) (4,790) (4,562) (5%) (29) - - (6,490) (5,528) (17%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Flows 1,515 1,055 44% (194) 397 (149%) 43 - - 1,364 1,452 (6%) Other Movements 104 (35) 397% (41) (1,161) 96% - - - 63 (1,196) 105% Market And Currency 504 1,569 (68%) 369 230 60% 42 54 (22%) 915 1,853 (51%) Movements ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Movements in FUM 2,123 2,589 (18%) 134 (534) 125% 85 54 57% 2,342 2,109 11% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Closing FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24% Schedule 8 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 3 2006 VERSUS QUARTER 2 2006 INSURANCE OPERATIONS Single Regular Total PVNBP (3) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 2 4 (50%) 1 2 (50%) 3 6 (50%) 8 12 (33%) Life - With Profit Bond 6 7 (14%) - - - 6 7 (14%) 9 7 29% Life - Other 4 5 (20%) - - - 4 5 (20%) 8 5 60% Individual Annuities 199 247 (19%) - - - 199 247 (19%) 199 247 (19%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 211 263 (20%) 1 2 (50%) 212 265 (20%) 224 271 (17%) DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 211 263 (20%) 1 2 (50%) 212 265 (20%) 224 271 (17%) Business to Business Corporate Pensions 32 59 (46%) 43 48 (10%) 75 107 (30%) 209 225 (7%) Individual Annuities 71 58 22% - - - 71 58 22% 71 58 22% Bulk Annuities 22 22 0% - - - 22 22 0% 22 22 0% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 125 139 (10%) 43 48 (10%) 168 187 (10%) 302 305 (1%) Intermediated Distribution Individual Pensions 11 27 (59%) 5 5 0% 16 32 (50%) 45 40 13% Corporate Pensions 9 12 (25%) 1 1 0% 10 13 (23%) 23 13 77% Life - With Profit Bond 50 48 4% - - - 50 48 4% 50 48 4% Life - Other Bond 128 218 (41%) - - - 128 218 (41%) 128 218 (41%) Life - Other 19 15 27% 1 1 0% 20 16 25% 27 22 23% Individual Annuities 192 169 14% - - - 192 169 14% 192 169 14% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 409 489 (16%) 7 7 0% 416 496 (16%) 465 510 (9%) Partnerships Individual Pensions - - - - - - - - - 1 - - Life - With Profit Bond 5 2 150% - - - 5 2 150% 5 2 150% Life - Other Bond 25 33 (24%) - - - 25 33 (24%) 25 33 (24%) Life - Other 180 159 13% 1 1 0% 181 160 13% 189 158 20% Individual Annuities 280 172 63% - - - 280 172 63% 280 172 63% Bulk Annuities - - 592 - - - - - 592 - - 592 - Reinsurance from Scott Am Insurance Fund Bulk Annuities - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total 490 958 (49%) 1 1 0% 491 959 (49%) 500 957 (48%) Total: Individual Pensions 13 31 (58%) 6 7 (14%) 19 38 (50%) 54 52 4% Corporate Pensions 41 71 (42%) 44 49 (10%) 85 120 (29%) 232 238 (3%) Life - With Profit Bond 61 57 7% - - - 61 57 7% 64 57 12% Life - Other Bond 153 251 (39%) - - - 153 251 (39%) 153 251 (39%) Life - Other 203 179 13% 2 2 0% 205 181 13% 224 185 21% Individual Annuities 742 646 15% - - - 742 646 15% 742 646 15% Bulk Annuities 22 614 (96%) - - - 22 614 (96%) 22 614 (96%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total 1,235 1,849 (33%) 52 58 (10%) 1,287 1,907 (33%) 1,491 2,043 (27%) DWP Rebates - - - - - - - - - - - - ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK Insurance 1,235 1,849 (33%) 52 58 (10%) 1,287 1,907 (33%) 1,491 2,043 (27%) Operations European Insurance Operations Insurance Products 33 29 14% - - - 33 29 14% 33 29 14% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total European 33 29 14% - - - 33 29 14% 33 29 14% Insurance Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total UK and Europe 1,268 1,878 (32%) 52 58 (10%) 1,320 1,936 (32%) 1,524 2,072 (26%) Insurance Operations US Insurance Operations (8) Fixed Annuities 204 164 24% - - - 204 164 24% 204 164 24% Fixed Index Annuities 144 160 (10%) - - - 144 160 (10%) 144 160 (10%) Variable Annuities 922 993 (7%) - - - 922 993 (7%) 922 993 (7%) Life 2 2 0% 4 5 (20%) 6 7 (14%) 35 37 (5%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Sub-Total Retail 1,272 1,319 (4%) 4 5 (20%) 1,276 1,324 (4%) 1,305 1,354 (4%) Guaranteed Investment 15 37 (59%) - - - 15 37 (59%) 15 37 (59%) Contracts GIC - Medium Term Note 105 164 (36%) - - - 105 164 (36%) 105 164 (36%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total US Insurance 1,392 1,520 (8%) 4 5 (20%) 1,396 1,525 (8%) 1,425 1,555 (8%) Operations Asian Insurance Operations (8) China 5 6 (17%) 8 8 0% 13 14 (7%) 50 46 9% Hong Kong 85 73 16% 26 22 18% 111 95 17% 248 181 37% India (@26%) (6) 3 3 0% 22 23 (4%) 25 26 (4%) 86 55 56% Indonesia 6 7 (14%) 18 17 6% 24 24 0% 66 66 0% Japan 19 12 58% 2 1 100% 21 13 62% 26 28 (7%) Korea 18 28 (36%) 52 51 2% 70 79 (11%) 238 252 (6%) Malaysia 1 1 0% 18 16 13% 19 17 12% 97 99 (2%) Singapore 65 118 (45%) 18 15 20% 83 133 (38%) 176 191 (8%) Taiwan 11 16 (31%) 32 32 0% 43 48 (10%) 180 179 1% Other (4) 3 3 0% 8 9 (11%) 11 12 (8%) 32 31 3% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Total Asian Insurance 216 267 (19%) 204 194 5% 420 461 (9%) 1,199 1,128 6% Operations ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Group Total 2,876 3,665 (22%) 260 257 1% 3,136 3,922 (20%) 4,148 4,755 (13%) INVESTMENT OPERATIONS M&G (5) Asia Retail Mutual Asia Third Party Total Investment Funds Products Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) Q3 2006 Q2 2006 +/-(%) GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 40,135 39,669 1% 10,262 10,172 1% 673 732 (8%) 51,070 50,573 1% Gross Inflows 3,186 3,880 (18%) 4,596 5,618 (18%) 72 3 2,300% 7,854 9,501 (17%) Less Redemptions (1,671) (2,030) 18% (4,790) (4,416) (8%) (29) (4) (625%) (6,490) (6,450) (1%) ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Flows 1,515 1,850 (18%) (194) 1,202 (116%) 43 (1) 4,400% 1,364 3,051 (55%) Other Movements 104 (8) 1,400% (41) (144) 72% - - - 63 (152) 141% Market And Currency 504 (1,376) 137% 369 (968) 138% 42 (58) 172% 915 (2,402) 138% Movements ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Net Movements in FUM 2,123 466 356% 134 90 49% 85 (59) 244% 2,342 497 371% ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Closing FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5%
PRUDENTIAL PLC - NEW BUSINESS SCHEDULES BASIS OF PREPARATION The new business schedules are provided as an indicative volume measure of transactions undertaken in the reporting period that have the potential to generate profits for shareholders. The amounts shown are not, and not intended to be, reflective of premium income recorded in the IFRS income statement. The schedules include a bulk annuity transaction with the Scottish Amicable Insurance Fund (SAIF). The transaction reflects the arrangement entered into in June 2006 for the reinsurance of non-profit immediate pension annuity liabilities of SAIF to Prudential Retirement Income Limited (PRIL), a shareholder owned subsidiary of the Group. SAIF is a closed ring-fenced sub-fund of the PAC long-term fund established by a Court approved Scheme of Arrangement in October 1997, which is solely for the benefit of SAIF policyholders. Shareholders have no interest in the profits of this fund, although they are entitled to investment manangement fees on this business. The inclusion of the transaction between SAIF and PRIL as new business reflects the transfer from SAIF policyholders to Prudential shareholders' funds of longevity risk, the requirement to set aside supporting capital, and entitlement to surpluses arising on this block of business arising from the reinsurance arrangement. The format of the schedules is consistent with the distinction between insurance and investment products as applied for previous financial reporting periods. Products categorised as "insurance" refer to those classified as contracts of long-term insurance business for regulatory reporting purposes, i.e. falling within one of the classes of insurance specified in part II of Schedule 1 to the Regulated Activities Order under FSA regulations. The details shown for insurance products include contributions for contracts that are classified under IFRS 4 "Insurance Contracts" as not containing significant insurance risk. These products are described as investment contracts or other financial instruments under IFRS. Contracts included in this category are primarily certain unit-linked and similar contracts written in UK Insurance Operations, and Guaranteed Investment Contracts and similar funding agreements written in US operations. New business premiums for regular premium products are shown on an annualised basis. Department of Work and Pensions pension business is classified as single recurrent business. Internal vesting business is classified as new business where the contracts include an open market option. UK and Asian investment products referred to in the tables for funds under management above are unit trusts, mutual funds and similar types of retail fund management arrangements. These are unrelated to insurance products that are classified as investment contract under IFRS 4, as described in the preceding paragraph, although similar IFRS recognition and measurement principles apply to the acquisition costs and fees attaching to this type of business. New Department of Work and Pensions (DWP) rebate business for SAIF is excluded from the new business schedules. This is because, as noted above, SAIF is solely for the benefit of SAIF policyholders. Notes to Schedules 1A - 8 (1a) Insurance and investment new business for overseas operations has been calculated using constant exchange rates. The applicable rate for Jackson is 1.82. (1b) Insurance and investment new business for overseas operations has been calculated using average exchange rates. The applicable rate for Jackson is 1.82 (2005: 1.84). (2) Represents cash received from sale of investment products. (3) Annual Equivalents, calculated as regular new business contributions plus 10per cent single new business contributions, are subject to roundings. PVNBPs are calculated as equalling single premiums plus the present value of expected premiums of new regular premium business. In determining the present value, allowance is made for lapses and other assumptions applied in determining the EEV new business profit. (4) In Asia, 'Other' insurance operations include Thailand, the Philippines and Vietnam. (5) Balance includes segregated and pooled pension funds, private finance assets and other institutional clients. Other movements reflect the net flows arising from the cash component of a tactical asset allocation fund managed by PPM South Africa. (6) New business in India is included at Prudential's 26 per cent interest in the India life operation. Mandatory Provident Fund (MPF) product sales in Hong Kong are included at Prudential's 36 per cent interest in Hong Kong MPF operation. (7) Balance sheet figures have been calculated at the closing exchange rate. The 2005 balance is shown on a constant exchange rate. (8) Sales are converted using the year to date average exchange rate applicable at the time. The sterling results for individual quarters represent the difference between the year to date reported sterling results at successive quarters and will include foreign exchange movements from earlier periods. (9) In August 2005, Prudential's joint venture partner in the Prudential ICICI Asset Management Company purchased an additional 6 per cent share ownership reducing Prudential's stake to 49 per cent. As a result, Prudential no longer consolidates the company as a subsidiary. (10) GBP262m of FUM reported under Prudential Asian funds operations relates to M&G's products distributed through those Asian operations and this amount is also included in M&G's FUM. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date 19 October 2006 PRUDENTIAL PUBLIC LIMITED COMPANY By: /s/ Jon Bunn Jon Bunn Director of Public Relations -----END PRIVACY-ENHANCED MESSAGE-----