6-K 1 pru200701296k2.txt 2006 FULL YEAR NBF 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 January, 2007 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: 2006 Full Year NBF Embargo: 10.46am Monday 29 January 2007 PRUDENTIAL PLC FULL YEAR 2006 NEW BUSINESS RESULTS All figures compared to 2005 at constant exchange rates unless stated New business for the full year 2006:
APE Growth PVNBP Growth Total Group Insurance GBP2,470 million 16% GBP18,947 million 12% Prudential UK retail GBP689 million 14% GBP5,594 million 15% Total UK GBP900 million 1% GBP7,712 million 0% Jackson GBP613 million 21% GBP6,103 million 20% Prudential Corporation Asia GBP956 million 30% GBP5,132 million 26% Asia Fund Management Record net fund inflows of GBP2.5 billion, up 91% M&G Record net fund inflows of GBP6.1 billion, up 58%
Mark Tucker, Group Chief Executive said: "I am delighted by our full year new business figures: the Group's insurance new business has increased by 16 per cent year on year, on an APE basis, and our asset management businesses saw net inflows increase by 66% to GBP8.6 billion. "We have seen a 25 per cent increase in the Group's insurance new business, on an APE basis, for the fourth quarter of 2006 compared to the same quarter in 2005 and an encouraging 21 per cent rise in new business for the fourth quarter of 2006 over the third. Overall the Group is in robust health. "A 14 per cent increase in UK retail insurance operations APE sales was driven primarily by the growth in individual annuities and corporate pensions. In wholesale, we have chosen not to write business at unattractive pricing and therefore sales are down year on year. "We have continued to reassess in depth the prospects for all sectors of the UK life and pensions market and are confident that there are profitable organic opportunities in the retirement savings and income market. We shall provide an update with further details by 15th March. "Jackson, Prudential's US insurance business, achieved record new business of GBP613 million APE in 2006, representing a 21 per cent increase on 2005, driven by strong growth in sales of variable annuities, up 48 per cent on last year. "Prudential's Asian life operations delivered new business APE of GBP956million, up 30 per cent in 2006 including a 25 per cent rise over the third quarter and reflecting the momentum of the business seen throughout the year. We have seen strong growth in a number of country markets including India up 95 per cent, China up 56 per cent and Korea up 54 per cent. "Asset management continues to perform exceptionally well with M&G achieving record net fund inflows of GBP6.1 billion, an increase of 58 per cent, reflecting M&G's leading position in retail fund management, institutional fixed income, pooled life and pension funds, property and private finance. "In Asia, PCA Fund Management also achieved record net inflows of GBP2.5 billion, almost double the 2005 figure. This reflects the product strength and increasing geographic diversification of our Asian fund management business. "Trading conditions at Egg, our UK banking business, have seen further deterioration since we updated the market in October as a result of worsening credit experience and lower levels of lending than anticipated. Separately today, Prudential has announced that it has entered into a binding agreement to sell Egg to Citigroup for a consideration of GBP575 million subject to adjustment to reflect any change in net asset value between 31 December 2006 and completion. "Going forward, the Group expects to maintain both its momentum in sales volume and its focus on value." Commentary on Full Year 2006 New Business Results UK Insurance and Banking operations Prudential's UK insurance operations delivered total APE sales for the year of GBP900 million, 1 per cent higher than those achieved in 2005. Sales on a PVNBP basis are in line with 2005 at GBP7,712 million. The UK retail insurance operations performed well with APE sales up 14 per cent on 2005 to GBP689 million driven primarily by the growth in corporate pensions and individual annuity sales. In the wholesale business, Prudential has chosen not to write business at unattractive pricing and therefore sales are down year-on-year. Individual annuity sales grew by 22 per cent to GBP271 million as the annuity market experienced increased activity in the second half of 2006 following the removal of uncertainty around A-Day pension changes. In total 110,000 new annuity policies were written. Sales volume has been driven by the continued strength of internal vestings (APE GBP135 million) together with the cumulative benefit of partnership deals signed in previous years. With-profit annuities sales from all distribution channels more than doubled to GBP37 million compared with 2005. In relation to externally sourced annuity business, Prudential signed further partnership agreements in 2006 including the Royal London transaction that came into effect in September. In addition, Prudential signed an exclusive 5-year agreement with Threadneedle as their supplier of annuities for their Stakeholder scheme as well as any future defined contribution schemes that Threadneedle acquires. This is a new area for Prudential that builds on its experience in providing annuities to customers of life insurance companies. With the future growth in DC schemes within the UK Prudential expects more agreements of this type. Sales of with-profit bonds increased by 44 per cent during 2006. Much of this reflects Prudential's financial strength and continuing outstanding life fund investment returns that have been well received by both customers and advisers. PruFund, Prudential's unitised and smoothed investment plan, secured a new distribution agreement in the fourth quarter with National Australia Bank Group. Corporate pension APE sales increased by 23 per cent to GBP224 million with the capture of a number of new scheme wins during 2006, including Debenhams and Royal & SunAlliance with 4,100 and 4,500 members respectively. This is due in part to the continuing shift from defined-benefit to defined-contribution schemes and also due to the impact of A-day and the growth in Prudential's new Fund Delivery Service. This contributed GBP25 million of APE sales in its first year of operation. Prudential has continued to pursue its focus on value, not volume, in the unit linked bond market. A large percentage of this market is financially unattractive with high up-front commission costs and poor forward-looking persistency due to high churn. For this reason we have been targeting higher value intermediaries. Prudential has recruited a team of 20 face-to-face specialist consultants to sell its Lifetime Mortgage product, the Property Value Release Plan, and are looking to grow this team further in 2007. APE sales in 2006 were GBP9 million and resulted in Prudential achieving an 8 per cent share of the lifetime mortgage market. PruHealth continues to develop well, with full-year Gross Written Premiums up 300 per cent at GBP36 million (GBP9 million in 2005). It now has around 100,000 individuals covered. As previously announced, we believe it would be beneficial if there was greater clarity as to the status of the Inherited Estate and we continue to keep the situation under review. A reattribution will only be undertaken if there are clear benefits for both policyholders and shareholders and we will provide an update as to whether we intend to proceed in due course. Jackson Jackson, Prudential's US insurance business, achieved record APE sales of GBP613 million in 2006, representing a 21 per cent increase on 2005, driven by strong growth in sales of variable annuities. On a PVNBP basis, new business sales were GBP6.1 billion. Retail APE sales in 2006 of GBP524 million were up 27 per cent. APE sales in the fourth quarter of 2006 were GBP147 million, up 43 per cent CER compared to the fourth quarter of 2005. Jackson delivered record variable annuity sales in 2006 of GBP3.8 billion, up 48 per cent on last year. This reflects its distinct competitive advantages of an innovative product offering, an efficient and flexible technology platform, a relationship-driven distribution model and award-winning service. Jackson's sales result was achieved in a market that grew 18 per cent year-on-year through the first three quarters of 2006. Jackson increased its variable annuity market share to 4.5 per cent as at the end of the third quarter of 2006, up from 3.6 per cent at the same point in 2005, and maintained its ranking of 12th in total variable annuity sales. In the independent broker dealer distribution channel, Jackson's variable annuity sales during the first nine months of 2006 increased 52 per cent over the same period in 2005, while industry sales grew 27 per cent. This took Jackson's ranking in the channel from 5th at the end of September 2005 to 2nd at the end of September 2006 and increased its market share from 8.8 per cent to 10.6 per cent. Innovation in product design and speed to market continue to be key drivers of Jackson's competitiveness as 81 per cent of retail sales during 2006 were related to products and product features launched since the beginning of 2005. In January, Jackson added a 5 per cent annual benefit increase option to its popular lifetime guaranteed minimum withdrawal benefits (GMWBs). In May, Jackson added five new GMWB options that offer contract holders a guaranteed return of premium and lifetime income. Additionally, Jackson expanded its variable annuity fund offering during the year. In February, the company launched two new fixed index annuity (FIA) contracts, which expanded the number of FIA products Jackson offers to five. Entry spreads for fixed annuities continued to be challenging during 2006, which limited the attractiveness of the market to Jackson. APE sales of GBP69 million were down 12 per cent on the same period of 2005. Fixed index annuity sales continued to be impacted by the uncertain regulatory environment in the US. APE sales of GBP55 million were 10 per cent down on 2005. Jackson's market share through the end of the third quarter of 2006 was 3.8 per cent, unchanged from the same period in the prior year. Curian Capital, a specialised asset management company that provides innovative separately managed accounts, is building its position in the US retail asset management market with total assets under management at the end of 2006 of $2.4 billion compared with $1.7 billion at the end of 2005. Institutional APE sales of GBP90 million were down 8 per cent from 2005. Jackson participates in this market on an opportunistic basis. Jackson's focus is to expand its share of the US annuity and retail asset management markets. This will be achieved through continued expansion of existing product offerings, additional growth in new and existing distribution channels and opportunistic acquisition activity. Jackson's product development strategy includes further enhancement of its variable annuity offerings and the introduction of new guarantees, including a guaranteed minimum accumulation benefit (GMAB). Jackson has launched a simplified retirement annuity that will serve as a low cost option for financial advisors who are currently not participating in the variable annuity market. Additionally, Jackson has rolled out its first set of retail mutual funds for distribution by existing wholesalers. Jackson's new mutual funds will be marketed as an additional option for financial advisors currently selling variable annuity products. Jackson will continue to build its relationship-based distribution advantage in the advice-based channels, including a particular focus on increasing annuity sales in the bank and regional broker-dealer channels. Jackson will also explore additional distribution opportunities, including further expansion into the wirehouse channel, as evidenced by the company's recent distribution agreement with UBS. Jackson continues to deliver growth in the attractive US market and has further enhanced its competitive advantages in the variable annuity market, offering the product and service solutions that both customers and advisors desire. With a continued focus on product innovation, a proven relationship-based distribution model, award-winning service and excellence in execution, Jackson is well positioned to take advantage of the changing demographics and resulting opportunities in the US market. Prudential Corporation Asia Prudential's Asian life operations delivered new business APE of GBP956 million representing growth of 30 per cent in 2006 and reflecting the sustained momentum of the business seen throughout the year. The fourth quarter of 2006, with APE of GBP282 million, showed an increase of 29 per cent relative to the same quarter in 2005 and 25 per cent relative to the third quarter of 2006. On the PVNBP basis sales for 2006 of GBP5.1 billion are 26 per cent higher than in 2005. Prudential's focus continues to be on sustainable and profitable growth and the new business results reflect the continuing success of this strategy. The proportion of unit linked business for the year is 65 per cent, in line with the 63 per cent reported for last year and demonstrates the sustained appeal of these products to consumers across the region. The proportion of new business from traditional agency distribution is 70 per cent compared to 74 per cent last year, as our bank and broker distribution continues to strengthen. Prudential's joint venture with ICICI in India is a market leading operation and has rapidly achieved material scale since launch in 2000. APE for 2006 increased by 95 per cent over the same period last year with Prudential's 26 per cent being GBP107 million. This was driven by a significant increase in agent numbers as the operation continues to open up new branches across India, and higher average premiums per policy, as well as growth from the bancassurance channel. Prudential's Korean life business with APE of GBP218 million, which is a growth of 54 per cent from 2005, continues to benefit from the expansion of the tied financial adviser channel in 2006 partially offset by slower growth in the broker channel where some brokers have been restructuring. Bancassurance growth continues to be constrained by regulatory individual company production caps and Prudential continues to explore opportunities to work with more banks. Since acquisition this operation has outperformed the industry and is well on track to become a major player. In Taiwan, Prudential's focus continues to be on value rather than volume. Whilst full year APE at GBP148 million is 6 per cent lower than last year, the proportion of higher margin unit linked remains high relative to the industry at 58 per cent. Prudential's life business in Indonesia continues to go from strength to strength with APE sales of GBP74 million, 54 per cent up on last year driven by increased agent numbers. This business has a high proportion of unit linked sales and is the well established market leader in this product. Although growth in Prudential's Singapore life business slowed in the third quarter as equity market volatility impacted single premium linked business, it had a strong fourth quarter and full year APE of GBP108 million is up a healthy 23 per cent on 2005. Prudential's Hong Kong life business, at GBP139 million for 2006, is up 26 per cent over 2005 driven due to a successful retirement orientated savings product launch and strong results from Standard Chartered Bank. In Malaysia sales across the industry remain depressed following regulatory changes last year; however in the fourth quarter sales growth recovered and Prudential's new business was up 15 per cent compared to the same quarter in 2005. Full year APE in Malaysia for Prudential was GBP72 million, up 6 per cent on 2005. The Takaful joint venture with Bank Simpanan Nasional (BSN) commenced sales in November. In China, CITIC Prudential APE for 2006 of GBP39 million is an increase of 56 per cent compared to 2005, reflecting an increasing contribution from the new cities as well as the continued growth from the longer established operations such as Guangzhou and Bejing. The Vietnamese market continues to be challenging and Prudential's APE year to date has declined by 14 per cent, however the long term potential of this market remains excellent. Prudential's other smaller operations of Japan, Thailand and Philippines grew at 133 per cent, 83 per cent and 14 per cent respectively year to date. 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 fund performance led to record fund inflows into M&G's retail and institutional businesses during 2006. Gross fund inflows were GBP13.5 billion, an increase of 70 per cent on the previous year. Net fund inflows were their highest ever, increasing by 58 per cent to GBP6.1 billion, reflecting M&G's leading position in retail fund management, institutional fixed income, pooled life and pension funds, property and private finance. External funds under management grew significantly, up 24 per cent to GBP45 billion, and at this level represents over a quarter of M&G's total funds under management. Fund inflows into M&G's retail business continued to perform very strongly. Whilst gross fund inflows increased by 75 per cent to GBP6.7 billion, net fund inflows more than doubled to GBP3.1 billion. Fund performance across M&G's range of equity, bond and property funds was excellent, which was recognised by M&G being named Best Equity Group (Large) and Best Non UK Equity Group (Large) at the Lipper Citywire All Stars Awards 2006. Demand remained strong for M&G's high alpha equity and competitive fixed income and property offerings and M&G continued to innovate during the year with the launch of two new funds, the M&G Optimal Income Fund and M&G European Property Fund. Retail sales were strong in the UK and South Africa, and across the European markets of Germany, Austria, Switzerland, Luxembourg, Italy and Spain, where M&G is maximising the opportunity created by the continued opening up of these markets to foreign players. M&G's institutional business also saw substantial growth with gross fund inflows increasing by 66 per cent to GBP6.8 billion and net inflows rising 19 per cent to GBP3 billion. M&G's scale and market reputation in fixed income continued to position it very favourably in both traditional areas of the market, such as segregated funds, and more alternative areas such as structured credit. Fund inflows into segregated funds was strong on the back of good fund performance which saw 86 per cent of funds above benchmark over one year and 90 per cent over three years. M&G consolidated its market leading position in structured credit with the launch of seven new Collateralised Debt Obligations (CDOs) during the year and was named CDO manager of the year by IFR magazine. Significant fund inflows were generated into M&G's Episode global macro fund, with the fund reaching $1.5 billion assets under management within 17 months of launch. Asian Fund Management Business The Asian Fund Management Business continues to deliver record net inflows in the fourth quarter in 2006. Net inflows of GBP0.9 billion, were up 155 per cent for the same period in 2005, reflecting the strengths of the Asian Fund Management's geographic and product diversification. Full year record net inflows of GBP2.5 billion were up 91% from 2005. Of the annual net inflows of GBP2.5 billion, GBP2.3 billion or 94 per cent have been from non-MMF products. Equity and non-MMF assets grew by GBP2.0 billion in 2006. Total third party funds under management were GBP12.3 billion, an increase of 21 per cent compared to the fourth quarter in 2005. India and Korea were the main contributors to this growth with funds under management increasing by 36 per cent, and 27 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. During the fourth quarter, Prudential Vietnam Fund Management Company launched a Cayman structured closed ended fund targeted at sophisticated investors and distributed for the first time actively to high net worth individuals through private banking channels. This fund raised close to GBP160 million and is listed on the Irish Stock Exchange. Prudential Vietnam Fund Management Company has now become the largest domestic mutual fund company in Vietnam in terms of funds under management. CITIC Prudential Fund Management launched its second fund in the fourth quarter and raised GBP220 million. Launched only last October, CITIC Prudential Fund Management has already raised over GBP420 million from its two fund launches in 2006. Prudential Asset Management (HK) Limited has been awarded a US$200 million quota by China's State Administration for Foreign Exchange under the Qualified Foreign Institutional Investor ("QFII") scheme. Introduced in May 2002, the QFII scheme allows qualified foreign institutional investors direct participation in China's domestic "A" share equity and fixed income markets. PCA Securities Investment Trust in Taiwan launched the Asia Pacific REITs Fund in the fourth quarter and achieved its FUM cap of GBP157 million. Prudential remains confident that its fund management businesses in Asia are in an ideal position to achieve strong and profitable growth as it has put in place a distinctive and advantaged platform. 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 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 11.30am (BST) hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group Finance Director. Dial in telephone number: +44 (0)20 8609 0205. Passcode: 155439# 5. There will be a conference call for investors and analysts at 12.00am (BST) hosted by Mark Tucker, Group Chief Executive, and Philip Broadley, Group Finance Director. From the UK please call +44 (0)20 8609 0205 and from the US 1866 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 160468. 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 2006 2005 +/- (%) 2006 2005 +/- (%) GBPm GBPm GBPm GBPm UK 900 891 1% 900 891 1% US 613 515 19% 613 508 21% Asia 956 731 31% 956 734 30% ______ ______ ______ ______ ______ ______ Total 2,470 2,137 16% 2,470 2,134 16% Gross Inflows Actual Exchange Rates Constant Exchange Rates 2006 2005 +/- (%) 2006 2005 +/- (%) GBPm GBPm GBPm GBPm M&G 13,486 7,916 70% 13,486 7,916 70% Asia 20,408 18,457 11% 20,408 18,049 13% ______ ______ ______ ______ ______ ______ Total 33,894 26,373 29% 33,894 25,965 31% Total Insurance and Investment New Business Actual Exchange Rates Constant Exchange Rates 2006 2005 +/- (%) 2006 2005 +/- (%) GBPm GBPm GBPm GBPm Insurance 15,094 13,700 10% 15,094 13,641 11% Investment 33,894 26,373 29% 33,894 25,965 31% ______ ______ ______ ______ ______ ______ Total 48,988 40,073 22% 48,988 39,606 24%
8. For Jackson, market share data is provided for the first nine months of 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. 9. Total number of Prudential plc shares in issue as at 31st December 2006 was 2,444,312,425. This number will be reported monthly to the stock exchange going forward. 10. Financial Calendar 2006 - 2007: Full year 2006 Results 15th March 2007 Q1 New Business Figures 19th April 2007 AGM 17th May 2007 Interim Results 1st August 2007 Q3 New Business Figures 18th October 2007 *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 150 years and has GBP237.5 billion in assets under management, (as at 30 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 - FULL YEAR 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US Asia(1a) Total (1a) FY 2006 FY 2005 +/-(%) FY FY +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- 2006 2005 (%) (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance Products 7,192 7,192 0% 5,981 4,958 21% 1,921 1,491 29% 15,094 13,641 11% Total Investment 13,486 7,916 70% - - - 20,408 18,049 13% 33,894 25,965 31% Products - Gross Inflows (2) Group Total 20,678 15,108 37% 5,981 4,958 21% 22,329 19,540 14% 48,988 39,606 24% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY +/-(%) 2006 (%) (%) 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%) Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0% Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50% Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14% Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3% Business to Business Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27% Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24% Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%) Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3% Intermediated Distribution Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8% Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%) Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25% Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%) Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71% Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%) Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%) Partnerships Individual Pensions 1 - - - - - 1 - - - - - Life - With Profit Bond 24 - - - - - 24 - - 2 - - Life - Other Bond 117 - - - - - 117 - - 12 - - Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%) Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137% Bulk Annuities - 560 - - - - - 560 - - 56 - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%) Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10% Total: Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3% Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23% Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44% Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%) Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%) Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22% Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%) Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1% Operations European Insurance Operations (1a) Insurance Products 159 200 (21%) - - - 159 200 (21%) 16 20 (20%) Total European Insurance 159 200 (21%) - - - 159 200 (21%) 16 20 (20%) Operations Total UK & Europe 6,991 7,001 (0%) 201 191 5% 7,192 7,192 0% 900 891 1% Insurance Operations US Insurance Operations (1a) Fixed Annuities 688 777 (11%) - - - 688 777 (11%) 69 78 (12%) Fixed Index Annuities 554 608 (9%) - - - 554 608 (9%) 55 61 (10%) Variable Annuities 3,819 2,572 48% - - - 3,819 2,572 48% 382 257 49% Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20% Sub-Total Retail 5,069 3,968 28% 17 14 21% 5,086 3,982 28% 524 411 27% Guaranteed Investment 458 350 31% - - - 458 350 31% 46 35 31% Contracts GIC - Medium Term Note 437 626 (30%) - - - 437 626 (30%) 44 63 (30%) Total US Insurance 5,964 4,944 21% 17 14 21% 5,981 4,958 21% 613 508 21% Operations Asian Insurance Operations (1a) China 27 17 59% 36 23 57% 63 40 58% 39 25 56% Hong Kong 355 285 25% 103 81 27% 458 366 25% 139 110 26% India (6) 20 4 400% 105 55 91% 125 59 112% 107 55 95% Indonesia 31 44 (30%) 71 44 61% 102 88 16% 74 48 54% Japan 68 28 143% 7 3 133% 75 31 142% 14 6 133% Korea 103 31 232% 208 139 50% 311 170 83% 218 142 54% Malaysia 4 9 (56%) 72 67 7% 76 76 0% 72 68 6% Singapore 357 293 22% 72 59 22% 429 352 22% 108 88 23% Taiwan 92 121 (24%) 139 145 (4%) 231 266 (13%) 148 157 (6%) Other (4) 15 9 67% 36 34 6% 51 43 19% 38 35 9% Total Asian Insurance 1,072 841 27% 849 650 31% 1,921 1,491 29% 956 734 30% Operations Group Total 14,027 12,786 10% 1,067 855 25% 15,094 13,641 11% 2,470 2,134 16% Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total FY 2006 FY 2005 +/-(%) FY 2006 FY +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- 2005 (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10% Products Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29% Products - Gross Inflows (2) Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY 2006 FY 2005 +/- (%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY +/-(%) 2006 (%) (%) 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%) Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0% Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50% Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14% Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3% Business to Business Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27% Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24% Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%) Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3% Intermediated Distribution Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8% Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%) Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25% Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%) Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71% Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%) Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%) Partnerships Individual Pensions 1 - - - - - 1 - - - - - Life - With Profit Bond 24 - - - - - 24 - - 2 - - Life - Other Bond 117 - - - - - 117 - - 12 - - Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%) Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137% Bulk Annuities - 560 - - - - - 560 - - 56 - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%) Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10% Total: Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3% Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23% Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44% Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%) Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%) Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22% Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%) Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1% Operations European Insurance Operations (1b) Insurance Products 159 201 (21%) - - - 159 201 (21%) 16 20 (20%) Total European 159 201 (21%) - - - 159 201 (21%) 16 20 (20%) Insurance Operations Total UK & Europe 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 900 891 1% Insurance Operations US Insurance Operations (1b) Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 69 79 (13%) Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 55 62 (11%) Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 382 261 46% Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20% Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 524 416 26% Guaranteed Investment 458 355 29% - - - 458 355 29% 46 36 28% Contracts GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 44 63 (30%) Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 613 515 19% Operations Asian Insurance Operations (1b) China 27 17 59% 36 23 57% 63 40 58% 39 25 56% Hong Kong 355 289 23% 103 83 24% 458 372 23% 139 112 24% India (6) 20 4 400% 105 57 84% 125 61 105% 107 57 88% Indonesia 31 42 (26%) 71 42 69% 102 84 21% 74 46 61% Japan 68 30 127% 7 4 75% 75 34 121% 14 7 100% Korea 103 29 255% 208 132 58% 311 161 93% 218 135 61% Malaysia 4 9 (56%) 72 66 9% 76 75 1% 72 67 7% Singapore 357 284 26% 72 58 24% 429 342 25% 108 86 26% Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 148 161 (8%) Other (4) 15 9 67% 36 33 9% 51 42 21% 38 34 12% Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 956 731 31% Operations Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 2,470 2,137 16% Schedule 1B - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total FY 2006 FY 2005 +/- FY 2006 FY +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- (%) 2005 (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10% Products Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29% Products - Gross Inflows (2) Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22% INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY FY 2005 +/- FY FY +/-(%) 2006 (%) 2006 (%) 2006 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 8 9 (11%) Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 3 3 0% Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 3 2 50% Individual Annuities 816 720 13% - - - 816 720 13% 82 72 14% Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 97 86 13% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 113 110 3% Business to Business Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 216 170 27% Individual Annuities 264 212 25% - - - 264 212 25% 26 21 24% Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 9 51 (82%) Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 251 243 3% Intermediated Distribution Individual Pensions 87 65 34% 18 18 0% 105 83 27% 27 25 8% Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 8 11 (27%) Life - With Profit Bond 202 159 27% - - - 202 159 27% 20 16 25% Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 69 95 (27%) Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 12 7 71% Individual Annuities 919 995 (8%) - - - 919 995 (8%) 92 100 (8%) Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 228 253 (10%) Partnerships Individual Pensions 1 - - - - - 1 - - - - - Life - With Profit Bond 24 - - - - - 24 - - 2 - - Life - Other Bond 117 - - - - - 117 - - 12 - - Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 73 84 (13%) Individual Annuities 714 295 142% - - - 714 295 142% 71 30 137% Bulk Annuities - Reinsurance 560 - - - - - 560 - - 56 - - from Scot Am Insurance Fund Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 79 152 (48%) Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 293 266 10% Total: Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 35 34 3% Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 224 182 23% Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 26 18 44% Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 81 95 (15%) Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 88 93 (5%) Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 271 222 22% Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 143 203 (30%) Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 868 847 2% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 16 24 (33%) Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 884 871 1% Operations European Insurance Operations (1b) Insurance Products 159 201 (21%) - - - 159 201 (21%) 16 20 (20%) Total European Insurance 159 201 (21%) - - - 159 201 (21%) 16 20 (20%) Operations Total UK & Europe Insurance 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 900 891 1% Operations US Insurance Operations (1b) Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 69 79 (13%) Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 55 62 (11%) Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 382 261 46% Life 8 11 (27%) 17 14 21% 25 25 0% 18 15 20% Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 524 416 26% Guaranteed Investment 458 355 29% - - - 458 355 29% 46 36 28% Contracts GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 44 63 (30%) Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 613 515 19% Operations Asian Insurance Operations (1b) China 27 17 59% 36 23 57% 63 40 58% 39 25 56% Hong Kong 355 289 23% 103 83 24% 458 372 23% 139 112 24% India (6) 20 4 400% 105 57 84% 125 61 105% 107 57 88% Indonesia 31 42 (26%) 71 42 69% 102 84 21% 74 46 61% Japan 68 30 127% 7 4 75% 75 34 121% 14 7 100% Korea 103 29 255% 208 132 58% 311 161 93% 218 135 61% Malaysia 4 9 (56%) 72 66 9% 76 75 1% 72 67 7% Singapore 357 284 26% 72 58 24% 429 342 25% 108 86 26% Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 148 161 (8%) Other (4) 15 9 67% 36 33 9% 51 42 21% 38 34 12% Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 956 731 31% Operations Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 2,470 2,137 16% Schedule 2 PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006 INVESTMENT OPERATIONS Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2006 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm M&G Retail 14,627 6,722 (3,619) 3,103 - 1,446 4,549 19,176 Institutional (5) 21,568 6,764 (3,766) 2,998 140 1,064 4,202 25,770 Total M&G 36,195 13,486 (7,385) 6,101 140 2,510 8,751 44,946 Asia (10) India (9) 1,005 982 (680) 302 45 (62) 285 1,290 Taiwan 632 1,185 (866) 319 - 18 337 969 Korea 2,269 2,981 (2,065) 916 (297) 64 683 2,952 Japan 2,695 1,393 (1,026) 367 - (246) 121 2,816 Other Mutual Fund Operations 1,037 1,005 (619) 386 (1) 46 431 1,468 Total Asian Equity/Bond/Other 7,638 7,546 (5,256) 2,290 (253) (180) 1,857 9,495 MMF India (9) 461 8,961 (8,762) 199 (75) 124 248 709 Taiwan 667 1,378 (1,516) (138) - (62) (200) 467 Korea 534 2,221 (2,122) 99 (17) (7) 75 609 Other Mutual Fund Operations 143 182 (179) 3 - (13) (10) 133 Total Asian MMF 1,805 12,742 (12,579) 163 (92) 42 113 1,918 Total Asia Retail Mutual Funds 9,443 20,288 (17,835) 2,453 (345) (138) 1,970 11,413 Third Party Institutional 691 120 (41) 79 - 70 149 840 Mandates Total Asian Investment 10,134 20,408 (17,876) 2,532 (345) (68) 2,119 12,253 Operations Total Investment Products 46,329 33,894 (25,261) 8,633 (205) 2,442 10,870 57,199 Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm M&G Retail 11,613 3,842 (2,497) 1,345 - 1,669 3,014 14,627 Institutional (5) 17,092 4,074 (1,557) 2,517 (229) 2,188 4,476 21,568 Total M&G 28,705 7,916 (4,054) 3,862 (229) 3,857 7,490 36,195 Asia (10) India (9) 1,231 1,931 (1,770) 161 (669) 282 (226) 1,005 Taiwan 485 555 (563) (8) - 155 147 632 Korea 1,089 2,151 (1,363) 788 (15) 407 1,180 2,269 Japan 1,638 1,487 (582) 905 - 152 1,057 2,695 Other Mutual Fund Operations 646 673 (378) 295 - 96 391 1,037 Total Asia Equity/Bond/Other 5,089 6,797 (4,656) 2,141 (684) 1,092 2,549 7,638 MMF India (9) 913 8,251 (8,264) (13) (524) 85 (452) 461 Taiwan 1,312 1,823 (2,561) (738) - 93 (645) 667 Korea 338 1,378 (1,240) 138 (6) 64 196 534 Other Mutual Fund Operations 181 206 (255) (49) - 11 (38) 143 Total Asian MMF 2,744 11,658 (12,320) (662) (530) 253 (939) 1,805 Total Asia Retail Mutual Funds 7,833 18,455 (16,976) 1,479 (1,214) 1,345 1,610 9,443 Third Party Institutional 705 2 (153) (151) - 137 (14) 691 Mandates Total Asian Investment 8,538 18,457 (17,129) 1,328 (1,214) 1,482 1,596 10,134 Operations Total Investment Products 37,243 26,373 (21,183) 5,190 (1,443) 5,339 9,086 46,329 Market & Net Opening Other Currency Movement Closing FUM Gross Redemptions Net Movements Movements In FUM FUM Inflows Inflows 2006 Relative to 2005 % % % % % % % % M&G Retail 26% 75% (45%) 131% - (13%) 51% 31% Institutional (5) 26% 66% (142%) 19% 161% (51%) (6%) 19% Total M&G 26% 70% (82%) 58% 161% (35%) 17% 24% Asia (10) India (9) (18%) (49%) 62% 88% 107% (122%) 226% 28% Taiwan 30% 114% (54%) 4,088% - (88%) 129% 53% Korea 108% 39% (52%) 16% (1,880%) (84%) (42%) 30% Japan 65% (6%) (76%) (59%) - (262%) (89%) 4% Other Mutual Fund Operations 61% 49% (64%) 31% - (52%) 10% 42% Total Asian Equity/Bond/Other 50% 11% (13%) 7% 63% (116%) (27%) 24% Asia India (9) (50%) 9% (6%) 1,631% 86% 46% 155% 54% Taiwan (49%) (24%) 41% 81% - (167%) 69% (30%) Korea 58% 61% (71%) (28%) (183%) (111%) (62%) 14% Other Mutual Fund Operations (21%) (12%) 30% 106% - (218%) 74% (7%) Total Asian MMF (34%) 9% (2%) 125% 83% (83%) 112% 6% Total Asian Retail Mutual 21% 10% (5%) 66% 72% (110%) 22% 21% Funds Third Party Institutional (2%) 5,900% 73% 152% - (49%) 1,164% 22% Mandates Total Asian Investment 19% 11% (4%) 91% 72% (105%) 33% 21% Operations Total Investment Products 24% 29% (19%) 66% 86% (54%) 20% 23%
2006 Q4 2005 Q4 US (7) YTD YTD +/- (%) GBPm GBPm Curian Capital External Funds Under 1,242 853 46% Administration
Schedule 3 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 4 2005
INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-(%) 2006 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 4 2 100% 2 2 0% 6 4 50% 2 2 0% Life - With Profit 7 4 75% - - - 7 4 75% 1 - - Bond Life - Other 10 2 400% - - - 10 2 400% 1 - - Individual Annuities 205 178 15% - - - 205 178 15% 21 18 17% Sub-Total 226 186 22% 2 2 0% 228 188 21% 25 21 19% DWP Rebates - 10 - - - - - 10 - - 1 - Total 226 196 15% 2 2 0% 228 198 15% 25 22 14% Business to Business Corporate Pensions 326 81 302% 45 54 (17%) 371 135 175% 78 62 26% Individual Annuities 91 61 49% - - - 91 61 49% 9 6 50% Bulk Annuities 40 98 (59%) - - - 40 98 (59%) 4 10 (60%) Total 457 240 90% 45 54 (17%) 502 294 71% 91 78 17% Intermediated Distribution Individual Pensions 20 15 33% 4 4 0% 24 19 26% 6 6 0% Corporate Pensions 12 11 9% 1 1 0% 13 12 8% 2 2 0% Life - With Profit 60 40 50% - - - 60 40 50% 6 4 50% Bond Life - Other Bond 125 265 (53%) - - - 125 265 (53%) 13 27 (52%) Life - Other 29 2 1,350% - 2 - 29 4 625% 3 2 50% Individual Annuities 368 209 76% - - - 368 209 76% 37 21 76% Total 614 542 13% 5 7 (29%) 619 549 13% 66 61 8% Partnerships Individual Pensions (1) - - - - - (1) - - - - - Life - With Profit 13 - - - - - 13 - - 1 - - Bond Life - Other Bond 16 - - - - - 16 - - 2 - - Life - Other 201 185 9% 1 1 0% 202 186 9% 21 20 5% Individual Annuities 171 149 15% - - - 171 149 15% 17 15 13% Bulk Annuities - (32) - - - - - (32) - - (3) - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 123 - - - - - 123 - - 12 - - Total 491 334 47% 1 1 0% 492 335 47% 50 34 47% Total: Individual Pensions 23 17 35% 6 6 0% 29 23 26% 8 8 0% Corporate Pensions 338 92 267% 46 55 (16%) 384 147 161% 80 64 25% Life - With Profit 80 44 82% - - - 80 44 82% 8 4 100% Bond Life - Other Bond 141 265 (47%) - - - 141 265 (47%) 14 27 (48%) Life - Other 240 189 27% 1 3 (67%) 241 192 26% 25 22 14% Individual Annuities 835 597 40% - - - 835 597 40% 84 60 40% Bulk Annuities 131 98 34% - - - 131 98 34% 13 10 30% 1,788 1,302 37% 53 64 (17%) 1,841 1,366 35% 232 194 20% DWP Rebates - 10 - - - - - 10 - - 1 - Total UK Insurance 1,788 1,312 36% 53 64 (17%) 1,841 1,376 34% 232 195 19% Operations European Insurance Operations Insurance Products 44 47 (6%) - - - 44 47 (6%) 4 5 (20%) Total European 44 47 (6%) - - - 44 47 (6%) 4 5 (20%) Insurance Operations Total UK and Europe 1,832 1,359 35% 53 64 (17%) 1,885 1,423 32% 236 200 18% Unsurance Operations US Insurance Operations (8) Fixed Annuities 171 149 15% - - - 171 149 15% 17 15 13% Fixed Index Annuities 118 155 (24%) - - - 118 155 (24%) 12 16 (25%) Variable Annuities 1,010 735 37% - - - 1,010 735 37% 101 74 36% Life 2 3 (33%) 4 4 0% 6 7 (14%) 4 4 0% Sub-Total Retail 1,301 1,042 25% 4 4 0% 1,305 1,046 25% 134 108 24% Guaranteed Investment 133 49 171% - - - 133 49 171% 13 5 160% Contracts GIC - Medium Term (6) 9 (167%) - - - (6) 9 (167%) (1) 1 (200%) Note Total US Insurance 1,428 1,100 30% 4 4 0% 1,432 1,104 30% 147 114 29% Operations Asian Insurance Operations (8) China 5 8 (38%) 15 8 88% 20 16 25% 16 9 78% Hong Kong 131 88 49% 35 28 25% 166 116 43% 48 37 30% India (6) 6 1 500% 28 16 75% 34 17 100% 29 16 81% Indonesia 14 6 133% 22 13 69% 36 19 89% 23 14 64% Japan 27 11 145% 3 - - 30 11 173% 6 1 500% Korea 27 18 50% 53 41 29% 80 59 36% 56 43 30% Malaysia 1 1 0% 23 20 15% 24 21 14% 23 20 15% Singapore 87 90 (3%) 25 19 32% 112 109 3% 34 28 21% Taiwan 34 29 17% 33 40 (18%) 67 69 (3%) 36 43 (16%) Other (4) 6 2 200% 11 9 22% 17 11 55% 12 9 33% Total Asian Insurance 338 254 33% 248 194 28% 586 448 31% 282 219 29% Operations Group Total 3,598 2,713 33% 305 262 16% 3,903 2,975 31% 665 533 25% INVESTMENT OPERATIONS M&G Asia Retail Mutual Funds Asia Third Party Total Investment Products Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/-(%) 2006 2005 GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24% Gross Inflows 3,505 2,316 51% 5,673 4,075 39% 40 2 1,900% 9,218 6,393 44% Less Redemptions (2,514) (1,189) (111%) (4,734) (3,690) (28%) (4) (3) (33%) (7,252) (4,882) (49%) Net Flows 991 1,127 (12%) 939 385 144% 36 (1) 3,700% 1,966 1,511 30% Other Movements (6) (74) 92% (34) (6) (467%) - - - (40) (80) 50% Market And Currency 1,703 1,382 23% 112 459 (76%) 46 23 100% 1,861 1,864 (0%) Movements Net Movements in FUM 2,688 2,435 10% 1,017 838 21% 82 22 273% 3,787 3,295 15% Closing FUM 44,946 36,195 24% 11,413 9,443 21% 840 691 22% 57,199 46,329 23% Schedule 4 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006 INSURANCE OPERATIONS Single Regular Total Annual Equivalents (3) Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 +/-( %) Q4 2006 Q 3 +/- (%) 2006 (%) 2006 2006 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 4 2 100% 2 1 100% 6 3 100% 2 1 100% Life - With Profit 7 6 17% - - - 7 6 17% 1 1 0% Bond Life - Other 10 4 150% - - - 10 4 150% 1 - - Individual Annuities 205 199 3% - - - 205 199 3% 21 20 5% Sub-Total 226 211 7% 2 1 100% 228 212 8% 25 22 14% DWP Rebates - - - - - - - - - - - - Total 226 211 7% 2 1 100% 228 212 8% 25 22 14% Business to Business Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 78 46 70% Individual Annuities 91 71 28% - - - 91 71 28% 9 7 29% Bulk Annuities 40 22 82% - - - 40 22 82% 4 2 100% Total 457 125 266% 45 43 5% 502 168 199% 91 56 63% Intermediated Distribution Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 6 6 0% Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 2 2 0% Life - With Profit 60 50 20% - - - 60 50 20% 6 5 20% Bond Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 13 13 0% Life - Other 29 19 53% - 1 - 29 20 45% 3 3 0% Individual Annuities 368 192 92% - - - 368 192 92% 37 19 95% Total 614 409 50% 5 7 (29%) 619 416 49% 66 48 38% Partnerships Individual Pensions (1) - - - - - (1) - - - - - Life - With Profit 13 5 160% - - - 13 5 160% 1 1 0% Bond Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 2 3 (33%) Life - Other 201 180 12% 1 1 0% 202 181 12% 21 19 11% Individual Annuities 171 280 (39%) - - - 171 280 (39%) 17 28 (39%) Bulk Annuities - (32) - - - - - (32) - - (3) - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 123 - - - - - 123 - - 12 - - Total 491 490 0% 1 1 0% 492 491 0% 50 50 0% Total: Individual Pensions 23 13 77% 6 6 0% 29 19 53% 8 7 14% Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 80 48 67% Life - With Profit 80 61 31% - - - 80 61 31% 8 6 33% Bond Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 14 15 (7%) Life - Other 240 203 18% 1 2 (50%) 241 205 18% 25 22 14% Individual Annuities 835 742 13% - - - 835 742 13% 84 74 14% Bulk Annuities 131 22 495% - - - 131 22 495% 13 2 550% 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32% DWP Rebates - - - - - - - - - - - - Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 232 176 32% Operations European Insurance Operations Insurance Products 44 33 33% - - - 44 33 33% 4 3 33% Total European 44 33 33% - - - 44 33 33% 4 3 33% Insurance Operations Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 236 179 32% Unsurance Operations US Insurance Operations (8) Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 17 20 (15%) Fixed Index 118 144 (18%) - - - 118 144 (18%) 12 14 (14%) Annuities Variable Annuities 1,010 922 10% - - - 1,010 922 10% 101 92 10% Life 2 2 0% 4 4 0% 6 6 0% 4 4 0% Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 134 131 2% Guaranteed 133 15 787% - - - 133 15 787% 13 2 550% Investment Contracts GIC - Medium Term (6) 105 (106%) - - - (6) 105 (106%) (1) 11 (109%) Note Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 147 143 3% Operations Asian Insurance Operations (8) China 5 5 0% 15 8 88% 20 13 54% 16 9 78% Hong Kong 131 85 54% 35 26 35% 166 111 50% 48 35 37% India (6) 6 3 100% 28 22 27% 34 25 36% 29 22 32% Indonesia 14 6 133% 22 18 22% 36 24 50% 23 19 21% Japan 27 19 42% 3 2 50% 30 21 43% 6 4 50% Korea 27 18 50% 53 52 2% 80 70 14% 56 54 4% Malaysia 1 1 0% 23 18 28% 24 19 26% 23 18 28% Singapore 87 65 34% 25 18 39% 112 83 35% 34 25 36% Taiwan 34 11 209% 33 32 3% 67 43 56% 36 33 9% Other (4) 6 3 100% 11 8 38% 17 11 55% 12 8 50% Total Asian 338 216 56% 248 204 22% 586 420 40% 282 226 25% Insurance Operations Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 665 548 21% INVESTMENT OPERATIONS M&G Asian Retail Mutual Asia Third Party Total Investment Funds Products Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 2006 +/- Q4 2006 Q 3 2006 +/-(%) Q4 2006 Q 3 +/-(%) 2006 (%) 2006 GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5% Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17% Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%) Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44% Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%) Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103% Movements Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62% Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7% Schedule 5 - Constant Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1a) Asia Total (1a) FY 2006 FY 2005 +/- (%) FY FY 2005 +/- FY 2006 FY 2005 +/-(%) FY 2006 FY 2005 +/- 2006 (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance Products 7,192 7,192 0% 5,981 4,958 21% 1,921 1,491 29% 15,094 13,641 11% Total Investment Products 13,486 7,916 70% - - - 20,408 18,049 13% 33,894 25,965 31% - Gross Inflows (2) Group Total 20,678 15,108 37% 5,981 4,958 21% 22,329 19,540 14% 48,988 39,606 24% INSURANCE OPERATIONS Single Regular Total PVNBP (3) FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- 2006 (%) (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations (11) Direct to Customer Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%) Life - With Profit Bond 23 15 53% 1 1 0% 24 16 50% 29 17 71% Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180% Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13% Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%) Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4% Business to Business Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39% Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25% Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%) Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%) Intermediated Distribution Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30% Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%) Life - With Profit Bond 202 159 27% - - - 202 159 27% 202 159 27% Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%) Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133% Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%) Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%) Partnerships Individual Pensions 1 - - - - - 1 - - 1 - - Life - With Profit Bond 24 - - - - - 24 - - 24 - - Life - Other Bond 117 - - - - - 117 - - 117 - - Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%) Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142% Bulk Annuities - 560 - - - - - 560 - - 560 - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%) Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10% Total: Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22% Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35% Life - With Profit Bond 249 174 43% 1 1 0% 250 175 43% 255 176 45% Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%) Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%) Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22% Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%) Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%) Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0% Operations European Insurance Operations (1a) Insurance Products 159 200 (21%) - - - 159 200 (21%) 159 200 (21%) Total European Insurance 159 200 (21%) - - - 159 200 (21%) 159 200 (21%) Operations Total UK & Europe 6,991 7,001 (0%) 201 191 5% 7,192 7,192 0% 7,712 7,717 (0%) Insurance Operations US Insurance Operations (1a) Fixed Annuities 688 777 (11%) - - - 688 777 (11%) 688 777 (11%) Fixed Index Annuities 554 608 (9%) - - - 554 608 (9%) 554 608 (9%) Variable Annuities 3,819 2,572 48% - - - 3,819 2,572 48% 3,819 2,572 48% Life 8 11 (27%) 17 14 21% 25 25 0% 147 134 10% Sub-Total Retail 5,069 3,968 28% 17 14 21% 5,086 3,982 28% 5,208 4,091 27% Guaranteed Investment 458 350 31% - - - 458 350 31% 458 350 31% Contracts GIC - Medium Term Note 437 626 (30%) - - - 437 626 (30%) 437 627 (30%) Total US Insurance 5,964 4,944 21% 17 14 21% 5,981 4,958 21% 6,103 5,068 20% Operations Asian Insurance Operations (1a) China 27 17 59% 36 23 57% 63 40 58% 198 146 36% Hong Kong 355 285 25% 103 81 27% 458 366 25% 933 732 27% India (6) 20 4 400% 105 55 91% 125 59 112% 411 207 99% Indonesia 31 44 (30%) 71 44 61% 102 88 16% 269 195 38% Japan 68 28 143% 7 3 133% 75 31 142% 97 47 106% Korea 103 31 232% 208 139 50% 311 170 83% 1,130 613 84% Malaysia 4 9 (56%) 72 67 7% 76 76 0% 418 391 7% Singapore 357 293 22% 72 59 22% 429 352 22% 803 728 10% Taiwan 92 121 (24%) 139 145 (4%) 231 266 (13%) 743 889 (16%) Other (4) 15 9 67% 36 34 6% 51 43 19% 130 127 2% Total Asian Insurance 1,072 841 27% 849 650 31% 1,921 1,491 29% 5,132 4,075 26% Operations Group Total 14,027 12,786 10% 1,067 855 25% 15,094 13,641 11% 18,947 16,860 12% Schedule 6 - Actual Exchange Rates PRUDENTIAL PLC - NEW BUSINESS - FULL YEAR 2006 TOTAL INSURANCE AND INVESTMENT NEW BUSINESS UK & Europe US (1b) Asia (1b) Total FY 2006 FY 2005 +/-(%) FY FY 2005 +/-(%) FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- 2006 (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm Total Insurance 7,192 7,193 (0%) 5,981 5,023 19% 1,921 1,484 29% 15,094 13,700 10% Products Total Investment 13,486 7,916 70% - - - 20,408 18,457 11% 33,894 26,373 29% Products - Gross Inflows (2) Group Total 20,678 15,109 37% 5,981 5,023 19% 22,329 19,941 12% 48,988 40,073 22% INSURANCE OPERATIONS Single Regular Total PVNBP (3) FY 2006 FY 2005 +/-(%) FY FY 2005 +/- FY 2006 FY 2005 +/- FY 2006 FY 2005 +/- 2006 (%) (%) (%) GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations (11) Direct to Customer Individual Pensions 14 12 17% 7 8 (13%) 21 20 5% 42 43 (2%) Life - With Profit 23 15 53% 1 1 0% 24 16 50% 29 17 71% Bond Life - Other 23 2 1,050% 1 2 (50%) 24 4 500% 28 10 180% Individual Annuities 816 720 13% - - - 816 720 13% 816 720 13% Sub-Total 876 749 17% 9 11 (18%) 885 760 16% 915 790 16% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%) Total 1,037 993 4% 9 11 (18%) 1,046 1,004 4% 1,076 1,034 4% Business to Business Corporate Pensions 536 242 121% 162 146 11% 698 388 80% 1,071 772 39% Individual Annuities 264 212 25% - - - 264 212 25% 264 212 25% Bulk Annuities 85 511 (83%) - - - 85 511 (83%) 85 511 (83%) Total 885 965 (8%) 162 146 11% 1,047 1,111 (6%) 1,420 1,495 (5%) Intermediated Distribution Individual Pensions 87 65 34% 18 18 0% 105 83 27% 166 128 30% Corporate Pensions 43 43 0% 4 7 (43%) 47 50 (6%) 62 67 (7%) Life - With Profit 202 159 27% - - - 202 159 27% 202 159 27% Bond Life - Other Bond 693 947 (27%) - - - 693 947 (27%) 693 947 (27%) Life - Other 66 6 1,000% 5 6 (17%) 71 12 492% 100 43 133% Individual Annuities 919 995 (8%) - - - 919 995 (8%) 919 995 (8%) Total 2,010 2,215 (9%) 27 31 (13%) 2,037 2,246 (9%) 2,142 2,339 (8%) Partnerships Individual Pensions 1 - - - - - 1 - - 1 - - Life - With Profit 24 - - - - - 24 - - 24 - - Bond Life - Other Bond 117 - - - - - 117 - - 117 - - Life - Other 698 814 (14%) 3 3 0% 701 817 (14%) 713 835 (15%) Individual Annuities 714 295 142% - - - 714 295 142% 714 295 142% Bulk Annuities - 560 - - - - - 560 - - 560 - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 786 1,519 (48%) - - - 786 1,519 (48%) 786 1,519 (48%) Total 2,900 2,628 10% 3 3 0% 2,903 2,631 10% 2,915 2,649 10% Total: Individual Pensions 102 77 32% 25 26 (4%) 127 103 23% 209 171 22% Corporate Pensions 579 285 103% 166 153 8% 745 438 70% 1,133 839 35% Life - With Profit 249 174 43% 1 1 0% 250 175 43% 255 176 45% Bond Life - Other Bond 810 947 (14%) - - - 810 947 (14%) 810 947 (14%) Life - Other 787 822 (4%) 9 11 (18%) 796 833 (4%) 841 888 (5%) Individual Annuities 2,713 2,222 22% - - - 2,713 2,222 22% 2,713 2,222 22% Bulk Annuities 1,431 2,030 (30%) - - - 1,431 2,030 (30%) 1,431 2,030 (30%) Sub-Total 6,671 6,557 2% 201 191 5% 6,872 6,748 2% 7,392 7,273 2% DWP Rebates 161 244 (34%) - - - 161 244 (34%) 161 244 (34%) Total UK Insurance 6,832 6,801 0% 201 191 5% 7,033 6,992 1% 7,553 7,517 0% Operations European Insurance Operations Insurance Products 159 201 (21%) - - - 159 201 (21%) 159 201 (21%) Total European 159 201 (21%) - - - 159 201 (21%) 159 201 (21%) Insurance Operations Total UK & Europe 6,991 7,002 (0%) 201 191 5% 7,192 7,193 (0%) 7,712 7,718 (0%) Insurance Operations US Insurance Operations (1b) Fixed Annuities 688 788 (13%) - - - 688 788 (13%) 688 788 (13%) Fixed Index Annuities 554 616 (10%) - - - 554 616 (10%) 554 616 (10%) Variable Annuities 3,819 2,605 47% - - - 3,819 2,605 47% 3,819 2,605 47% Life 8 11 (27%) 17 14 21% 25 25 0% 147 136 8% Sub-Total Retail 5,069 4,020 26% 17 14 21% 5,086 4,034 26% 5,208 4,145 26% Guaranteed Investment 458 355 29% - - - 458 355 29% 458 355 29% Contracts GIC - Medium Term Note 437 634 (31%) - - - 437 634 (31%) 437 635 (31%) Total US Insurance 5,964 5,009 19% 17 14 21% 5,981 5,023 19% 6,103 5,135 19% Operations Asian Insurance Operations (1b) China 27 17 59% 36 23 57% 63 40 58% 198 144 38% Hong Kong 355 289 23% 103 83 24% 458 372 23% 933 741 26% India (6) 20 4 400% 105 57 84% 125 61 105% 411 215 91% Indonesia 31 42 (26%) 71 42 69% 102 84 21% 269 186 45% Japan 68 30 127% 7 4 75% 75 34 121% 97 50 94% Korea 103 29 255% 208 132 58% 311 161 93% 1,130 578 96% Malaysia 4 9 (56%) 72 66 9% 76 75 1% 418 383 9% Singapore 357 284 26% 72 58 24% 429 342 25% 803 704 14% Taiwan 92 124 (26%) 139 149 (7%) 231 273 (15%) 743 912 (19%) Other (4) 15 9 67% 36 33 9% 51 42 21% 130 126 3% Total Asian Insurance 1,072 837 28% 849 647 31% 1,921 1,484 29% 5,132 4,039 27% Operations Group Total 14,027 12,848 9% 1,067 852 25% 15,094 13,700 10% 18,947 16,892 12% Schedule 7 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 4 2005 INSURANCE OPERATIONS Single Regular Total PVNBP (3) Q4 Q4 2005 +/-(%) Q4 Q4 2005 +/- Q4 Q4 +/-(%) Q4 Q4 +/-(%) 2006 2006 (%) 2006 2005 2006 2005 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 4 2 100% 2 2 0% 6 4 50% 10 10 0% Life - With Profit Bond 7 4 75% - - - 7 4 75% 9 5 80% Life - Other 10 2 400% - - - 10 2 400% 11 6 83% Individual Annuities 205 178 15% - - - 205 178 15% 205 177 16% Sub-Total 226 186 22% 2 2 0% 228 188 21% 235 198 19% DWP Rebates - 10 - - - - - 10 - - 10 - Total 226 196 15% 2 2 0% 228 198 15% 235 208 13% Business to Business Corporate Pensions 326 81 302% 45 54 (17%) 371 135 175% 410 236 74% Individual Annuities 91 61 49% - - - 91 61 49% 91 61 49% Bulk Annuities 40 98 (59%) - - - 40 98 (59%) 40 98 (59%) Total 457 240 90% 45 54 (17%) 502 294 71% 541 395 37% Intermediated Distribution Individual Pensions 20 15 33% 4 4 0% 24 19 26% 43 27 59% Corporate Pensions 12 11 9% 1 1 0% 13 12 8% 17 15 13% Life - With Profit Bond 60 40 50% - - - 60 40 50% 60 40 50% Life - Other Bond 125 265 (53%) - - - 125 265 (53%) 125 265 (53%) Life - Other 29 2 1,350% - 2 - 29 4 625% 39 13 200% Individual Annuities 368 209 76% - - - 368 209 76% 368 210 75% Total 614 542 13% 5 7 (29%) 619 549 13% 652 570 14% Partnerships Individual Pensions (1) - - - - - (1) - - (1) - - Life - With Profit Bond 13 - - - - - 13 - - 13 - - Life - Other Bond 16 - - - - - 16 - - 16 - - Life - Other 201 185 9% 1 1 0% 202 186 9% 207 194 7% Individual Annuities 171 149 15% - - - 171 149 15% 171 149 15% Bulk Annuities - (32) - - - - - (32) - - (32) - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 123 - - - - - 123 - - 123 - - Total 491 334 47% 1 1 0% 492 335 47% 497 343 45% Total: Individual Pensions 23 17 35% 6 6 0% 29 23 26% 52 37 41% Corporate Pensions 338 92 267% 46 55 (16%) 384 147 161% 427 251 70% Life - With Profit Bond 80 44 82% - - - 80 44 82% 82 45 82% Life - Other Bond 141 265 (47%) - - - 141 265 (47%) 141 265 (47%) Life - Other 240 189 27% 1 3 (67%) 241 192 26% 257 213 21% Individual Annuities 835 597 40% - - - 835 597 40% 835 597 40% Bulk Annuities 131 98 34% - - - 131 98 34% 131 98 34% 1,788 1,302 37% 53 64 (17%) 1,841 1,366 35% 1,925 1,506 28% DWP Rebates - 10 - - - - - 10 - - 10 - Total UK Insurance 1,788 1,312 36% 53 64 (17%) 1,841 1,376 34% 1,925 1,516 27% Operations European Insurance Operations Insurance Products 44 47 (6%) - - - 44 47 (6%) 44 47 (6%) Total European Insurance 44 47 (6%) - - - 44 47 (6%) 44 47 (6%) Operations Total UK and Europe 1,832 1,359 35% 53 64 (17%) 1,885 1,423 32% 1,969 1,563 26% Unsurance Operations US Insurance Operations (8) Fixed Annuities 171 149 15% - - - 171 149 15% 171 149 15% Fixed Index Annuities 118 155 (24%) - - - 118 155 (24%) 118 155 (24%) Variable Annuities 1,010 735 37% - - - 1,010 735 37% 1,010 735 37% Life 2 3 (33%) 4 4 0% 6 7 (14%) 43 37 16% Sub-Total Retail 1,301 1,042 25% 4 4 0% 1,305 1,046 25% 1,342 1,076 25% Guaranteed Investment 133 49 171% - - - 133 49 171% 133 49 171% Contracts GIC - Medium Term Note (6) 9 (167%) - - - (6) 9 (167%) (6) 9 (167%) Total US Insurance 1,428 1,100 30% 4 4 0% 1,432 1,104 30% 1,469 1,134 30% Operations Asian Insurance Operations (8) China 5 8 (38%) 15 8 88% 20 16 25% 60 49 22% Hong Kong 131 88 49% 35 28 25% 166 116 43% 324 257 26% India (6) 6 1 500% 28 16 75% 34 17 100% 148 59 151% Indonesia 14 6 133% 22 13 69% 36 19 89% 87 41 112% Japan 27 11 145% 3 - - 30 11 173% 42 13 223% Korea 27 18 50% 53 41 29% 80 59 36% 400 173 131% Malaysia 1 1 0% 23 20 15% 24 21 14% 136 123 11% Singapore 87 90 (3%) 25 19 32% 112 109 3% 237 235 1% Taiwan 34 29 17% 33 40 (18%) 67 69 (3%) 143 245 (42%) Other (4) 6 2 200% 11 9 22% 17 11 55% 31 32 (3%) Total Asian Insurance 338 254 33% 248 194 28% 586 448 31% 1,608 1,227 31% Operations Group Total 3,598 2,713 33% 305 262 16% 3,903 2,975 31% 5,046 3,924 29% INVESTMENT OPERATIONS M&G Asia Retail Mutual Asia Third Party Total Investment Funds Products Q4 2006 Q4 2005 +/-(%) Q4 2006 Q4 2005 +/-(%) Q4 Q4 +/-(%) Q4 2006 Q4 2005 +/- 2006 2005 (%) GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 42,258 33,760 25% 10,396 8,605 21% 758 669 13% 53,412 43,034 24% Gross Inflows 3,505 2,316 51% 5,673 4,075 39% 40 2 1,900% 9,218 6,393 44% Less Redemptions (2,514) (1,189) (111%) (4,734) (3,690) (28%) (4) (3) (33%) (7,252) (4,882) (49%) Net Flows 991 1,127 (12%) 939 385 144% 36 (1) 3,700% 1,966 1,511 30% Other Movements (6) (74) 92% (34) (6) (467%) - - - (40) (80) 50% Market And Currency 1,703 1,382 23% 112 459 (76%) 46 23 100% 1,861 1,864 (0%) Movements Net Movements in FUM 2,688 2,435 10% 1,017 838 21% 82 22 273% 3,787 3,295 15% Closing FUM 44,946 36,195 24% 11,413 9,443 21% 840 691 22% 57,199 46,329 23% Schedule 8 PRUDENTIAL PLC - NEW BUSINESS - QUARTER 4 2006 VERSUS QUARTER 3 2006 INSURANCE OPERATIONS Single Regular Total PVNBP (3) Q4 2006 Q 3 +/- (%) Q4 Q 3 2006 +/- Q4 Q 3 +/- Q4 Q 3 +/- (%) 2006 2006 (%) 2006 2006 (%) 2006 2006 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm UK Insurance Operations Direct to Customer Individual Pensions 4 2 100% 2 1 100% 6 3 100% 10 8 25% Life - With Profit Bond 7 6 17% - - - 7 6 17% 9 9 0% Life - Other 10 4 150% - - - 10 4 150% 11 8 38% Individual Annuities 205 199 3% - - - 205 199 3% 205 199 3% Sub-Total 226 211 7% 2 1 100% 228 212 8% 235 224 5% DWP Rebates - - - - - - - - - - - - Total 226 211 7% 2 1 100% 228 212 8% 235 224 5% Business to Business Corporate Pensions 326 32 919% 45 43 5% 371 75 395% 410 209 96% Individual Annuities 91 71 28% - - - 91 71 28% 91 71 28% Bulk Annuities 40 22 82% - - - 40 22 82% 40 22 82% Total 457 125 266% 45 43 5% 502 168 199% 541 302 79% Intermediated Distribution Individual Pensions 20 11 82% 4 5 (20%) 24 16 50% 43 45 (4%) Corporate Pensions 12 9 33% 1 1 0% 13 10 30% 17 23 (26%) Life - With Profit Bond 60 50 20% - - - 60 50 20% 60 50 20% Life - Other Bond 125 128 (2%) - - - 125 128 (2%) 125 128 (2%) Life - Other 29 19 53% - 1 - 29 20 45% 39 27 44% Individual Annuities 368 192 92% - - - 368 192 92% 368 192 92% Total 614 409 50% 5 7 (29%) 619 416 49% 652 465 40% Partnerships Individual Pensions (1) - - - - - (1) - - (1) 1 (200%) Life - With Profit Bond 13 5 160% - - - 13 5 160% 13 5 160% Life - Other Bond 16 25 (36%) - - - 16 25 (36%) 16 25 (36%) Life - Other 201 180 12% 1 1 0% 202 181 12% 207 189 10% Individual Annuities 171 280 (39%) - - - 171 280 (39%) 171 280 (39%) Bulk Annuities - (32) - - - - - (32) - - (32) - - Reinsurance from Scot Am Insurance Fund Bulk Annuities 123 - - - - - 123 - - 123 - - Total 491 490 0% 1 1 0% 492 491 0% 497 500 (1%) Total: Individual Pensions 23 13 77% 6 6 0% 29 19 53% 52 54 (4%) Corporate Pensions 338 41 724% 46 44 5% 384 85 352% 427 232 84% Life - With Profit Bond 80 61 31% - - - 80 61 31% 82 64 28% Life - Other Bond 141 153 (8%) - - - 141 153 (8%) 141 153 (8%) Life - Other 240 203 18% 1 2 (50%) 241 205 18% 257 224 15% Individual Annuities 835 742 13% - - - 835 742 13% 835 742 13% Bulk Annuities 131 22 495% - - - 131 22 495% 131 22 495% 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29% DWP Rebates - - - - - - - - - - - - Total UK Insurance 1,788 1,235 45% 53 52 2% 1,841 1,287 43% 1,925 1,491 29% Operations European Insurance Operations Insurance Products 44 33 33% - - - 44 33 33% 44 33 33% Total European 44 33 33% - - - 44 33 33% 44 33 33% Insurance Operations Total UK and Europe 1,832 1,268 44% 53 52 2% 1,885 1,320 43% 1,969 1,524 29% Unsurance Operations US Insurance Operations (8) Fixed Annuities 171 204 (16%) - - - 171 204 (16%) 171 204 (16%) Fixed Index Annuities 118 144 (18%) - - - 118 144 (18%) 118 144 (18%) Variable Annuities 1,010 922 10% - - - 1,010 922 10% 1,010 922 10% Life 2 2 0% 4 4 0% 6 6 0% 43 35 23% Sub-Total Retail 1,301 1,272 2% 4 4 0% 1,305 1,276 2% 1,342 1,305 3% Guaranteed Investment 133 15 787% - - - 133 15 787% 133 15 787% Contracts GIC - Medium Term Note (6) 105 (106%) - - - (6) 105 (106%) (6) 105 (106%) Total US Insurance 1,428 1,392 3% 4 4 0% 1,432 1,396 3% 1,469 1,425 3% Operations Asian Insurance Operations (8) China 5 5 0% 15 8 88% 20 13 54% 60 50 20% Hong Kong 131 85 54% 35 26 35% 166 111 50% 324 248 31% India (6) 6 3 100% 28 22 27% 34 25 36% 148 86 72% Indonesia 14 6 133% 22 18 22% 36 24 50% 87 66 32% Japan 27 19 42% 3 2 50% 30 21 43% 42 26 62% Korea 27 18 50% 53 52 2% 80 70 14% 400 238 68% Malaysia 1 1 0% 23 18 28% 24 19 26% 136 97 40% Singapore 87 65 34% 25 18 39% 112 83 35% 237 176 35% Taiwan 34 11 209% 33 32 3% 67 43 56% 143 180 (21%) Other (4) 6 3 100% 11 8 38% 17 11 55% 31 32 (3%) Total Asian Insurance 338 216 56% 248 204 22% 586 420 40% 1,608 1,199 34% Operations Group Total 3,598 2,876 25% 305 260 17% 3,903 3,136 24% 5,046 4,148 22% INVESTMENT OPERATIONS M&G Asia Retail Mutual Asia Third Party Total Investment Products Funds Q4 2006 Q 3 +/-(%) Q4 2006 Q 3 +/- Q4 Q 3 +/-(%) Q4 2006 Q 3 +/-(%) 2006 2006 (%) 2006 2006 2006 GBPm GBPm GBPm GBPm GBPm GBPm Opening FUM 42,258 40,135 5% 10,396 10,262 1% 758 673 13% 53,412 51,070 5% Gross Inflows 3,505 3,186 10% 5,673 4,596 23% 40 72 (44%) 9,218 7,854 17% Less Redemptions (2,514) (1,671) (50%) (4,734) (4,790) 1% (4) (29) 86% (7,252) (6,490) (12%) Net Flows 991 1,515 (35%) 939 (194) 584% 36 43 (16%) 1,966 1,364 44% Other Movements (6) 104 (106%) (34) (41) 17% - - - (40) 63 (163%) Market And Currency 1,703 504 238% 112 369 (70%) 46 42 10% 1,861 915 103% Movements Net Movements in FUM 2,688 2,123 27% 1,017 134 659% 82 85 (4%) 3,787 2,342 62% Closing FUM 44,946 42,258 6% 11,413 10,396 10% 840 758 11% 57,199 53,412 7%
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. Adjustments of GBP3m have been made to the SAIF reinsurance premium previously reported at GBP59m at Q2 2006, due to a revaluation of the assets. 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 1.84. (1b) Insurance and investment new business for overseas operations has been calculated using average exchange rates. The applicable rate for Jackson is 1.84 (2005: 1.82). (2) Represents cash received from sale of investment products. (3) Annual Equivalents, calculated as regular new business contributions plus 10 per 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) GBP289m 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. (11) The 2005 UK PVNBP result as been adjusted by GBP125m from GBP7,593m to GBP7,718m due to a change in methodology for certain classes of business 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 29 January, 2007 PRUDENTIAL PUBLIC LIMITED COMPANY By: /s/ Jon Bunn Jon Bunn Director of Public Relations