1st Quarter Results
Prudential PLC
17 April 2003
Embargo: 07.00 hrs Thursday 17 April 2003
PRUDENTIAL PLC FIRST QUARTER 2003 NEW BUSINESS RESULTS
• Total Group insurance and investment sales of £7.7 billion, in line with
first quarter 2002.
• Group APE (annual premium equivalent) insurance sales of £424 million,
down 7 per cent on first quarter 2002.
• UK insurance APE sales of £213 million, down 4 per cent on first quarter
2002, on the previously reported basis. Following a change in presentation,
UK insurance APE sales were £185 million, down 14 per cent.
• Jackson National Life APE retail insurance sales of £105 million, up 46
per cent on first quarter 2002.
• Prudential Corporation Asia APE insurance sales of £133 million, up 39 per
cent on first quarter 2002.
• Total retail and institutional funds under management of investment
operations of £25.1 billion (£19.9 billion in the UK and £5.2 billion in
Asia), up from £23.8 billion in first quarter 2002.
Prudential's Group Chief Executive, Jonathan Bloomer, commented:
'These strong sales figures were achieved in extremely difficult market
conditions which we expect to remain challenging for many areas of our business
throughout 2003. However, our international diversification and focus on running
the business for value positions us well to deliver sustainable profitable
growth over the longer-term.'
Prudential UK
Overall Prudential's UK insurance operations recorded a positive result given
the testing market conditions that the insurance sector continues to face. In
particular the with-profit bond market contracted by over 50 per cent during
2002, and remains challenging.
Individual annuity sales continue to be strong, with sales increasing by 65 per
cent from the same period last year to £51 million (APE). Prudential UK believes
it is the market leader in the provision of annuities and has increased its
share of the market over each of the last five quarters to the end of 2002.
Corporate pension sales were down 11 per cent on the comparable period in 2002
to £47 million (APE). We have expanded the disclosure on our investment
businesses in 2003 to include the M&G institutional fund management business for
the first time. Reflecting this, certain investment fund mandates previously
classified as UK corporate pensions sales are now reported as inflows to M&G's
institutional funds under management. The impact of this reclassification is to
reduce first quarter 2003 UK corporate pension APE sales by £28 million and
increase M&G institutional funds gross inflows by £281 million. 2002
comparatives now reflect this change in presentation with £6 million of UK
corporate pensions APE sales in the first quarter of 2002 now reported as M&G
investment inflows. This reclassification is not expected to have a material
impact on UK corporate pension profits in 2003.
As expected, life product sales in the quarter were down on the same period in
2002 with APE sales down 58 per cent to £36 million. The partnership agreement
with Abbey National has contributed total sales of £43 million since launch on
11 December 2002, £32 million of which have been in the first quarter of 2003.
Total sales of unit-linked bonds and offshore with-profit bonds continue to
increase with £72 million recorded in the quarter. The results for the first
three months of 2003 include an exceptional volume of protection business as a
result of very competitive pricing during this period.
Following the Financial Services Authority's initiative to bring forward the
implementation of realistic solvency, Prudential UK, along with a number of
other insurers, has received waivers from the FSA allowing it to move towards
this new basis. Prudential UK has managed its long-term fund on the realistic
basis for a number of years and, as a result, does not expect any significant
changes to the operation or investment strategy of the fund. Under the realistic
basis the fund remains among the strongest and comfortably within statutory
limits.
Prudential UK expects the remainder of 2003 to be as difficult as the first
quarter, with market conditions continuing to adversely affect consumers'
appetite for long-term savings.
M&G
Gross fund inflows into M&G and Prudential branded funds during the first
quarter of 2003 were £293 million, 5 per cent lower than the comparable period
last year, reflecting the significant deterioration in market conditions. Net
fund inflows were up 17 per cent to £54 million.
Gross fund inflows from ISA sales and PEP transfers into M&G and Prudential
branded funds during the first quarter were £74 million, down 39 per cent on the
same period last year. However, the strength of M&G's increasingly diversified
distribution base has meant that while ISA sales may have fallen during the
first quarter, non-ISA sales have grown significantly.
M&G has also increased its market share for M&G branded funds in both the total
retail and the ISA/PEP markets. The latest Investment Management Association
(IMA) figures to the end of February show that, in the first two months of 2003,
M&G grew its retail market share by 29 per cent. Strong fund inflows into the
Prudential North American fund led to an increase in market share for Prudential
branded funds over the same time period.
M&G's institutional business made a strong start to the year, winning gross fund
inflows of £890 million during the first quarter. New institutional mandates for
segregated and pooled funds contributed gross fund inflows of £480 million
(including £281 million of corporate pensions business referred to above), with
a further £217 million received via PPM South Africa. The Private Finance
Group's successful initiatives in securitised vehicles contributed a further
£193 million. Net institutional fund inflows for the first quarter of 2003 were
£586 million.
Egg
Egg will be announcing its first quarter results on Thursday 24 April 2003.
Prudential Europe
Prudential Europe's total new business sales of £12 million in the first quarter
were 37 per cent lower than the £19 million recorded in the same period last
year. However, excluding 2002 sales through the German life business, whose
disposal was completed in January 2003, sales are equal to those recorded in the
first quarter of 2002.
Jackson National Life
Jackson National Life (JNL) recorded total retail sales in the first quarter of
2003 of £1.0 billion, 52 per cent higher than the same period of 2002, driven by
strong sales of fixed and variable annuities. Total sales were down 22 per cent
on prior year, with no stable value new business recorded in the first quarter
of 2003, reflecting JNL's primary focus on retail sales, consistent with our
comments at the full year results.
Despite the continued difficult market conditions, JNL recorded excellent
variable annuity sales. Total sales of £442 million were up 142 per cent on the
first quarter of 2002, although they were down 14 per cent on fourth quarter
2002 sales. As expected in volatile equity markets, a significant proportion of
variable annuity investors continue to elect the fixed account option, with 61
per cent of variable annuity sales going into fixed accounts during the first
quarter of 2003, compared to 58 per cent during the full year 2002.
Fixed annuity sales of £532 million were 24 per cent up on prior year,
reflecting continued consumer preference for guaranteed returns, with JNL
benefiting from its strong position in bank and independent agent distribution
channels. Compared to the fourth quarter of 2002, fixed annuity sales were down
27 per cent.
Sales of equity linked indexed (ELI) annuities of £44 million were 23 per cent
down on prior year. Regular premium life sales of £3 million compared with £5
million for the same period of 2002.
JNL will continue to focus on retail markets, in market conditions that we
expect to remain testing throughout 2003.
Prudential Corporation Asia
In 2003 Prudential Corporation Asia (PCA) had its highest ever first quarter for
life business new premiums despite the continuing challenges in the economic
environment, weakening of local currencies relative to sterling and the recent
SARS outbreak in the region. Total APE insurance sales were £133 million, an
increase of 39 per cent compared to the corresponding quarter in 2002.
For the life businesses the first quarter of each year is usually the slowest
quarter in terms of new business sales. However the results for this quarter
were encouraging. In Singapore the focus on more profitable regular premium
business continues and compared to the first quarter 2002 regular premium sales
of £12 million were up 33 per cent. Hong Kong has been more affected by the
economic downturn and adverse exchange rates. New business APE in Hong Kong was
£17 million, 19 per cent lower than first quarter 2002.
Malaysia Life continued its excellent track record and is up 18 per cent for new
business APE compared to the first quarter of 2002. Taiwan Life's first quarter
new business APE of £47 million compares favourably to the same quarter last
year when sales were slower due to agency training for unit-linked products.
Japan Life continues to deliver solid increases in new business APE with £12m
for first quarter 2003 an increase of 33 per cent compared to the same quarter
last year. PCA's Other Life businesses (China, India, Indonesia, Korea,
Philippines, Thailand, Vietnam) continue to grow strongly as these newer
operations build scale.
For the first quarter of 2003 the economic environment has meant unit-linked
products are less popular and hence their proportion of the total new business
APE has decreased.
As would be expected in current market conditions, mutual fund flows continue to
be volatile with high gross inflows being offset by corresponding redemptions.
In India there was the seasonal net outflow of funds during the first quarter of
2003 due to tax planning associated with the end of the Indian fiscal year. In
total for the first quarter 2003 PCA had a small net outflow of £0.1 billion and
mutual funds under management at the end of the quarter were £5.0 billion.
The outlook for 2003 remains uncertain with the general economic climate
expected to be challenging and the impact of the SARS outbreak as yet unknown.
The net impact of the SARS outbreak in the affected countries remains unclear,
even in Hong Kong where SARS has had the greatest effect on business activities
over the past month. Here it is possible that any initial reluctance to have
face-to-face meetings may be offset by a heightened awareness of the need for
insurance coverage. To date we have not seen any unusual impact on claims or the
well being of our agents and staff.
Overall PCA has a well-diversified portfolio of businesses covering 12 countries
and therefore is in a good position to continue delivering sustainable,
profitable growth over the long term.
-ENDS-
Enquiries to:
Media Investors/Analysts
Geraldine Davies 020 7548 3911 Rebecca Burrows 020 7548 3537
Ben Forsyth 020 7548 3500 Laura Presland 020 7548 3511
Notes to Editors:
1. There will be a conference call today for wire services at 7.45am on 020 8288
4530 hosted by Jonathan Bloomer, Group Chief Executive, and Philip Broadley,
Group Finance Director.
2. There will be a conference call for investors and analysts at 2.30pm (dial in
telephone number: +44 (0) 20 7162 0181, US callers +1 334 323 6203). Callers
to quote 'Prudential new business' for access to the call.
A recording of this call will be available for five working days by
dialling:
UK: 020 8288 4459, US: +1 334 323 6222, access code 214082.
3. Sales for overseas operations have been calculated using average exchange
rates. At constant 2002 exchange rates Group insurance sales on an APE basis
would have been down only 1 per cent on prior year.
4. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
5. Certain investment mandates previously reported as UK corporate pensions are
now reported as M&G institutional investment flows. The impact is to reduce
2002 UK corporate pensions APE sales by £6 million in the first quarter of
2002, £4m in the second quarter of 2002, £6 million in the third quarter of
2002, and £15 million in the fourth quarter of 2002.
6. Financial Calendar:
2003 Annual General Meeting Thursday 8 May 2003
Payment of 2002 final dividend Wednesday 28 May 2003
2003 Interim Results/Second quarter
New Business Figures Tuesday 29 July 2003
Third-quarter New Business Figures Thursday 16 October 2003
Payment of interim dividend Thursday 27 November 2003
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 and results. 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,
the policies and actions of regulatory authorities, the impact of competition,
inflation, deflation, the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries, as well as the impact
of tax and other legislation and other regulations in the jurisdictions in which
Prudential and its affiliates operate. 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 we may make.
Schedule 1
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2003
TOTAL INSURANCE AND INVESTMENT NEW BUSINESS
UK & Europe US Asia Total
2003 2002 +/- (%) 2003 2002 +/- (%) 2003 2002 +/- (%) 2003 2002 +/- (%)
£m £m £m £m £m £m £m £m
Total 1,474 1,756 (16%) 1,021 1,311 (22%) 203 166 22% 2,698 3,233 (17%)
Insurance
Products
Total 1,183 1,298 (9%) - - - 3,790 3,169 20% 4,973 4,467 11%
Investment
Products -
Gross
Inflows (1)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Group Total 2,657 3,054 (13%) 1,021 1,311 (22%) 3,993 3,335 20% 7,671 7,700 (0%)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (2)
2003 2002 +/- (%) 2003 2002 +/- (%) 2003 2002 +/- (%) 2003 2002 +/- (%)
£m £m £m £m £m £m £m £m
UK Insurance
Operations : (12)
Direct
Distribution:
Individual 3 5 (40%) 2 3 (33%) 5 8 (38%) 2 3 (33%)
Pensions
Corporate 196 208 (6%) 24 23 4% 220 231 (5%) 44 44 0%
Pensions
Life 4 17 (76%) 1 1 0% 5 18 (72%) 1 3 (67%)
Individual 271 190 43% - - - 271 190 43% 27 19 42%
Annuities
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Sub-Total 474 420 13% 27 27 0% 501 447 12% 74 69 7%
DWP Rebates 280 195 44% - - - 280 195 44% 28 20 40%
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total 754 615 23% 27 27 0% 781 642 22% 102 88 16%
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Intermediated
Distribution:
Individual 17 32 (47%) 6 9 (33%) 23 41 (44%) 8 12 (33%)
Pensions
Corporate 12 20 (40%) 2 7 (71%) 14 27 (48%) 3 9 (67%)
Pensions
Life 234 795 (71%) 8 4 100% 242 799 (70%) 31 84 (63%)
Individual 239 125 91% - - - 239 125 91% 24 12 100%
Annuities
Bulk 71 58 22% - - - 71 58 22% 7 6 17%
Annuities
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Sub-Total 573 1,030 (44%) 16 20 (20%) 589 1,050 (44%) 73 123 (41%)
DWP Rebates 60 45 33% - - - 60 45 33% 6 5 20%
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total 633 1,075 (41%) 16 20 (20%) 649 1,095 (41%) 79 128 (38%)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Partnerships:
Life 32 - - - - - 32 - - 3 - -
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total 32 - - - - - 32 - - 3 - -
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total:
Individual 20 37 (46%) 8 12 (33%) 28 49 (43%) 10 16 (38%)
Pensions
Corporate 208 228 (9%) 26 30 (13%) 234 258 (9%) 47 53 (11%)
Pensions
Life 270 812 (67%) 9 5 80% 279 817 (66%) 36 86 (58%)
Individual 510 315 62% - - - 510 315 62% 51 31 65%
Annuities
Bulk 71 58 22% - - - 71 58 22% 7 6 17%
Annuities
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Sub-Total 1,079 1,450 (26%) 43 47 (9%) 1,122 1,497 (25%) 151 192 (21%)
DWP Rebates 340 240 42% - - - 340 240 42% 34 24 42%
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total UK 1,419 1,690 (16%) 43 47 (9%) 1,462 1,737 (16%) 185 216 (14%)
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
European Insurance
Operations: (4)
Insurance
Products 12 14 (14%) - 5 - 12 19 (37%) 1 6 (83%)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total 12 14 (14%) - 5 - 12 19 (37%) 1 6 (83%)
European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total UK & 1,431 1,704 (16%) 43 52 (17%) 1,474 1,756 (16%) 186 222 (16%)
European
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
US Insurance
Operations: (4)
Fixed 532 428 24% - - - 532 428 24% 53 43 23%
Annuities
Equity 44 57 (23%) - - - 44 57 (23%) 4 6 (33%)
Linked
Indexed
Annuities
Variable 442 183 142% - - - 442 183 142% 44 18 144%
Annuities
Life - - - 3 5 (40%) 3 5 (40%) 3 5 (40%)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Sub-Total 1,018 668 52% 3 5 (40%) 1,021 673 52% 105 72 46%
Retail
Guaranteed - 113 - - - - - 113 - - 11 -
Investment
Contracts
GIC -
Medium Term
Note - 525 - - - - - 525 - - 53 -
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total US 1,018 1,306 (22%) 3 5 (40%) 1,021 1,311 (22%) 105 136 (23%)
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Asian Insurance
Operations: (4)
Singapore 29 52 (44%) 12 9 33% 41 61 (33%) 15 14 7%
Hong Kong 34 9 278% 14 20 (30%) 48 29 66% 17 21 (19%)
Malaysia 3 3 0% 13 11 18% 16 14 14% 13 11 18%
Taiwan 1 4 (75%) 47 23 104% 48 27 78% 47 23 104%
Japan 3 4 (25%) 12 9 33% 15 13 15% 12 9 33%
Other (3) 7 5 40% 28 17 65% 35 22 59% 29 18 61%
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Total Asian 77 77 0% 126 89 42% 203 166 22% 133 96 39%
Insurance
Operations
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Group Total 2,526 3,087 (18%) 172 146 18% 2,698 3,233 (17%) 424 454 (7%)
----- ----- ----- ----- ----- ----- ----- ------ ------ ------- ------ ------
Notes to Schedules:
(1) Represents cash received from sale of investment products.
(2) Annual Equivalents (AE), calculated as regular new business contributions
+ 10% single new business contributions, are subject to roundings.
(3) In Asia, 'Other' insurance operations include Thailand, Indonesia, The
Philippines, Vietnam, India (26% interest), China and Korea.
(4) Sales for overseas operations have been calculated using average exchange
rates. The applicable rate for Jackson National Life is 1.60 (2002 - 1.43).
(12) Reflecting the expanded investment business new business analysis on
Schedule 2, certain investment fund mandates previously classified from UK
Corporate Pensions sales are now reported as M&G institutional funds under
management. 2002 UK insurance sales now reflect this change in
presentation.
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2003
INVESTMENT OPERATIONS
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2003
M&G (12)
M&G branded 7,587 265 ( 197) 68 ( 14) ( 210) ( 156) 7,431
retail
investment
products
Prudential 1,137 28 ( 42) ( 14) 18 ( 80) ( 76) 1,061
branded UK
retail
investment
products (6)
M&G 10,804 890 ( 304) 586 - 44 630 11,434
institutional
(9)
------- ------- ------- ------- ------- ------- ------- -------
Total M&G 19,528 1,183 ( 543) 640 4 ( 246) 398 19,926
------- ------- ------- ------- ------- ------- ------- -------
Asia
India 1,372 1,540 ( 1,712) ( 172) ( 13) 32 ( 153) 1,219
Taiwan 2,425 1,716 ( 1,759) ( 43) - 40 ( 3) 2,422
Korea 993 415 ( 393) 22 - ( 45) ( 23) 970
Other Mutual 306 101 ( 6) 95 - 10 105 411
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 5,096 3,772 ( 3,870) ( 98) ( 13) 37 ( 74) 5,022
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong 136 18 ( 3) 15 - - 15 151
MPF Products
(5)
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 5,232 3,790 ( 3,873) ( 83) ( 13) 37 ( 59) 5,173
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 24,760 4,973 ( 4,416) 557 ( 9) ( 209) 339 25,099
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2002
M&G
M&G branded 8,890 283 ( 191) 92 ( 108) ( 101) ( 117) 8,773
retail
investment
products (8)
Prudential 1,546 25 ( 71) ( 46) - 128 82 1,628
branded UK
retail
investment
products (6)
M&G 9,095 990 ( 267) 723 - 71 794 9,889
institutional
(9)
------- ------- ------- ------- ------- ------- ------- -------
Total M&G 19,531 1,298 ( 529) 769 ( 108) 98 759 20,290
------- ------- ------- ------- ------- ------- ------- -------
Asia
India 1,072 764 ( 916) ( 152) ( 19) 54 ( 117) 955
Taiwan 2,076 2,342 ( 2,111) 231 - 81 312 2,388
Korea - - - - - - - -
Other Mutual 57 42 ( 1) 41 - ( 3) 38 95
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 3,205 3,148 ( 3,028) 120 ( 19) 132 233 3,438
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong 90 21 ( 2) 19 - 2 21 111
MPF Products
(5)
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 3,295 3,169 ( 3,030) 139 ( 19) 134 254 3,549
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 22,826 4,467 ( 3,559) 908 ( 127) 232 1,013 23,839
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2003 movement relative
to 2002
M&G
M&G branded (15%) (6%) (3%) (26%) - (108%) (33%) (15%)
retail
investment
products
Prudential (26%) 12% 41% 70% - (163%) (193%) (35%)
branded UK
retail
investment
products (6)
M&G 19% (10%) (14%) (19%) - (38%) (21%) 16%
institutional
(9)
------- ------- ------- ------- ------- ------- ------- -------
Total M&G (0%) (9%) (3%) (17%) - (351%) (48%) (2%)
------- ------- ------- ------- ------- ------- ------- -------
Asia
India 28% 102% (87%) (13%) 32% (41%) (31%) 28%
Taiwan 17% (27%) 17% (119%) - (51%) (101%) 1%
Korea - - - - - - - -
Other Mutual 437% 140% (500%) 132% - 433% 176% 333%
Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 59% 20% (28%) (182%) 32% (72%) (132%) 46%
Mutual Fund
Operations
------- ------- ------- ------- ------- ------- ------- -------
Hong Kong 51% (14%) (50%) (21%) - - (29%) 36%
MPF Products
(5)
------- ------- ------- ------- ------- ------- ------- -------
Total Asian 59% 20% (28%) (160%) 32% (72%) (123%) 46%
Investment
Operations
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
Total 8% 11% (24%) (39%) 93% (190%) (67%) 5%
Investment
Products
------- ------- ------- ------- ------- ------- ------- -------
US BANKING PRODUCTS
2003 2002 +/- (%)
£m £m
US Banking
Products (7)
Total 673 633 6%
Deposit
Liabilities
Retail Assets 753 704 7%
Notes to Schedules:
(5) Mandatory Provident Fund product sales in Hong Kong are included at
Prudential's 36% interest of the Hong Kong MPF operation.
(6) Scottish Amicable and Prudential branded Investment Products.
(7) Balance sheet figures have been calculated at closing exchange rates.
(8) Balance restated to include M&G South Africa retail investment
operations.
(9) Balance includes segregated pensions fund business, private finance
flows and M&G South Africa institutional business.
(12) Reflecting the expanded investment business new business analysis
above, certain investment fund mandates previously classified from UK
Corporate Pensions sales are now reported as M&G institutional funds
under management. 2002 UK insurance sales now reflect this change in
presentation.
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2003 VERSUS QUARTER 4 2002
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (2)
Q1 Q4 +/- (%) Q1 Q4 +/- (%) Q1 Q4 +/- (%) Q1 Q4 +/- (%)
2003 2002 2003 2002 2003 2002 2003 2002
£m £m £m £m £m £m £m £m
UK Insurance
Operations : (12)
Direct
Distribution:
Individual Pensions 3 2 50% 2 2 0% 5 4 25% 2 2 0%
Corporate Pensions 196 26 654% 24 35 (31%) 220 61 261% 44 38 16%
Life 4 8 (50%) 1 1 0% 5 9 (44%) 1 2 (50%)
Individual 271 275 (1%) - - - 271 275 (1%) 27 27 0%
Annuities
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 474 310 53% 27 38 (29%) 501 348 44% 74 69 7%
DWP Rebates 280 20 1300% - - - 280 20 1300% 28 2 1300%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 754 330 128% 27 38 (29%) 781 368 112% 102 71 44%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Intermediated
Distribution :
Individual Pensions 17 11 55% 6 7 (14%) 23 18 28% 8 8 0%
Corporate Pensions 12 7 71% 2 2 0% 14 9 56% 3 3 0%
Life 234 387 (40%) 8 6 33% 242 393 (38%) 31 45 (31%)
Individual 239 263 (9%) - - - 239 263 (9%) 24 26 (8%)
Annuities
Bulk Annuities 71 424 (83%) - - - 71 424 (83%) 7 42 (83%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 573 1,091 (47%) 16 15 7% 589 1,106 (47%) 73 124 (41%)
DWP Rebates 60 45 33% - - - 60 45 33% 6 5 20%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 633 1,136 (44%) 16 15 7% 649 1,151 (44%) 79 129 (39%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Partnerships :
Life 32 11 191% - - - 32 11 191% 3 1 200%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total 32 11 191% - - - 32 11 191% 3 1 200%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total:
Individual Pensions 20 13 54% 8 9 (11%) 28 22 27% 10 10 0%
Corporate Pensions 208 33 530% 26 37 (30%) 234 70 234% 47 40 18%
Life 270 405 (33%) 9 7 29% 279 412 (32%) 36 48 (25%)
Individual 510 537 (5%) - - - 510 537 (5%) 51 54 (6%)
Annuities
Bulk Annuities 71 424 (83%) - - - 71 424 (83%) 7 42 (83%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-Total 1,079 1,412 (24%) 43 53 (19%) 1,122 1,465 (23%) 151 194 (22%)
DWP Rebates 340 65 423% - - - 340 65 423% 34 7 386%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK Insurance 1,419 1,477 (4%) 43 53 (19%) 1,462 1,530 (4%) 185 201 (8%)
Operations
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
European Insurance
Operations: (4)
Insurance Products 12 8 50% - 9 - 12 17 (29%) 1 10 (90%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total European 12 8 50% - 9 - 12 17 (29%) 1 10 (90%)
Insurance
Operations
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total UK & 1,431 1,485 (4%) 43 62 (31%) 1,474 1,547 (5%) 186 211 (12%)
European Insurance
Operations
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
US Insurance
Operations: (11)
Fixed Annuities 532 730 (27%) - - - 532 730 (27%) 53 73 (27%)
Equity Linked 44 50 (12%) - - - 44 50 (12%) 4 5 (20%)
Indexed Annuities
Variable Annuities 442 511 (14%) - - - 442 511 (14%) 44 51 (14%)
Life - - - 3 4 (25%) 3 4 (25%) 3 4 (25%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub-total Retail 1,018 1,291 (21%) 3 4 (25%) 1,021 1,295 (21%) 105 133 (21%)
Guaranteed - ( 5) - - - - - ( 5) - - ( 1) -
Investment
Contracts
GIC - Medium Term - ( 16) - - - - - ( 16) - - ( 1) -
Note
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total US Insurance 1,018 1,270 (20%) 3 4 (25%) 1,021 1,274 (20%) 105 131 (20%)
Operations
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Asian Insurance
Operations: (4)
Singapore 29 85 (66%) 12 13 (8%) 41 98 (58%) 15 22 (32%)
Hong Kong 34 51 (33%) 14 22 (36%) 48 73 (34%) 17 27 (37%)
Malaysia 3 4 (25%) 13 22 (41%) 16 26 (38%) 13 22 (41%)
Taiwan 1 2 (50%) 47 45 4% 48 47 2% 47 45 4%
Japan 3 1 200% 12 10 20% 15 11 36% 12 10 20%
Other (3) 7 7 0% 28 28 0% 35 35 0% 29 29 0%
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Asian 77 150 (49%) 126 140 (10%) 203 290 (30%) 133 155 (14%)
Insurance
Operations
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Group Total 2,526 2,905 (13%) 172 206 (17%) 2,698 3,111 (13%) 424 497 (15%)
------ ----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS
M&G & UK Operations Asia Mutual Funds (10) Hong Kong MPF Total Investment
Products (5) Products
Q1 Q4 +/- (%) Q1 Q4 +/- (%) Q1 Q4 +/- (%) Q1 Q4 +/- (%)
2003 2002 2003 2002 2003 2002 2003 2002
£m £m £m £m £m £m £m £m
Opening FUM 19,528 18,846 4% 5,096 3,652 40% 136 121 12% 24,760 22,619 9%
Gross inflows 1,183 743 59% 3,772 3,812 (1%) 18 17 6% 4,973 4,572 9%
Less redemptions ( 543) ( 442) (23%) ( 3,870) ( 3,487) (11%) ( 3) ( 2) (50%) ( 4,416)( 3,931) (12%)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net flows 640 301 113% ( 98) 325 ( 130%) 15 15 0% 557 641 (13%)
Other movements 4 - - ( 13) 1,130 (101%) - - - ( 9) 1,130 (101%)
Market and ( 246) 381 (165%) 37 ( 12) 408% - - - ( 209) 369 (157%)
currency
movements
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net movement in 398 682 (42%) ( 74) 1,444 (105%) 15 15 0% 339 2,141 (84%)
FUM
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Closing FUM 19,926 19,528 2% 5,022 5,096 (1%) 151 136 11% 25,099 24,760 1%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Notes to Schedules:
(2) Annual Equivalents (AE), calculated as regular new business contributions
+ 10% single new business contributions, are subject to roundings.
(3) In Asia, 'Other' insurance operations include Thailand, Indonesia, The
Philippines, Vietnam, India (26% interest), China and Korea.
(4) Sales for overseas operations have been calculated using average exchange
rates.
(5) Mandatory Provident Fund product sales in Hong Kong are included at
Prudential's 36% interest of the Hong Kong MPF operation.
(10)Funds under management arising from the Korean fund management acquisition
in Q4 are included in Other movements.
(11)Sales for overseas operations are converted to sterling 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.
(12)Reflecting the expanded investment business new business analysis on
Schedule 2, certain investment fund mandates previously classified from UK
Corporate Pensions sales are now reported as M&G institutional funds under
management. 2002 UK insurance sales now reflect this change in presentation.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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