2000 New Business Results

Prudential PLC
18 January 2001

Embargo: 07.00 hrs GMT Thursday 18 January 2001

PRUDENTIAL PLC 2000 NEW BUSINESS RESULTS

  * Record group insurance and investment sales of £13.9 billion, up 13 per
    cent on 1999
  * International sales grew by 53 per cent and represent over half of group
    sales
  * Insurance sales at Jackson National Life up 19 per cent at £4.9 billion
  * Asia insurance and investment sales were more than three times 1999
    levels at £2.8 billion
  * M&G equity fund sales up 77 per cent at £504 million
  * Prudential Europe launches innovative equity-backed life insurance
    product in France

Prudential plc enjoyed record total insurance and investment sales of £13.9
billion in 2000 with growth of 13 per cent over prior year. On an annual
premium equivalent basis, insurance and investment premiums were £1.9 billion,
up 13 per cent on prior year. International sales were particularly strong, up
53 per cent on prior year and representing 55 per cent of the group total.

In the United States, Jackson National Life delivered another strong
performance with annuity sales increasing 30 per cent on 1999 at £3.2 billion.
Variable annuity sales reached record levels, up 44 per cent at £1.7 billion.

In Asia, new insurance premiums were up 75 per cent on prior year at £504
million, reflecting continued sales growth in both established and emerging
markets. Gross mutual fund sales were almost four times prior year at £2.3
billion, including a first time contribution from Taiwan of £1 billion.

In the UK, M&G investment sales were up 100 per cent on prior year, due
principally to a full 12 months contribution in 2000 compared to eight months
in 1999. On a like for like twelve month basis, underlying equity fund sales
were particularly strong, increasing 77 per cent on prior year.

Prudential group chief executive, Jonathan Bloomer, commented:

'Our new business figures represent another very strong performance for the
group and clearly demonstrate the continuing benefits of our international
strategy. In the United States we continue to enjoy significant sales growth
in competitive market conditions and in Asia we have benefited from our
strategy of broadening our distribution reach into new markets with strong
contributions from Taiwan and Vietnam. We also recently commenced sales in
Guangzhou after becoming the first European insurer to begin life insurance
operations in China.

In the UK, we announced in the fourth quarter that we had been selected to run
the British Chamber of Commerce stakeholder scheme, building on our success at
being selected as the preferred stakeholder supplier for the TUC. These
developments ensure that we are well positioned to benefit from the
opportunities presented by the introduction of stakeholder pensions.'

USA

Single premium sales at Jackson National Life increased 19 per cent to £4.8
billion due to strong annuity sales of £3.2 billion, 30 per cent above prior
year in a competitive market.

Variable annuity sales were particularly strong at £1.7 billion, 44 per cent
above prior year, reflecting Jackson's success in strengthening its position
in the Broker Dealer market, which has been further enhanced by the
acquisition in 2000 of IFC Holdings.

Fixed annuity sales were £1.1 billion, 28 per cent above prior year, due to
the success of Jackson's multi-year guarantee product, Target Select, and the
impact of higher interest rates in the year. The US annuity market has seen
high levels of surrenders during 2000, reflecting its competitive nature and
the interest rate environment. Jackson's conservation efforts during the
second half of 2000 have begun to have a positive impact on the unprecedented
level of surrenders experienced in the year.

Jackson continues to broaden its product range and recently launched an
innovative equity linked indexed banking deposit product, Market Path, which
will be available throughout the United States.

Asia

Total insurance and investment sales in Asia of £2.8 billion have more than
trebled compared to 1999 with strong performance from all operations,
including investment sales from the Taiwan mutual fund operation acquired in
October 2000 and an excellent first full year of the Taiwan insurance
operation.

Total insurance sales of £504 million, represent an increase of 75 per cent
compared to 1999, with regular premium sales more than double 1999 and single
premium sales up by 51 per cent. During the quarter Prudential, through its
joint venture companies, sold its first policies in China and India.

Gross investment sales in India, Taiwan and Japan reached £2.3 billion for the
year, an almost four fold increase on 1999 despite falling equity markets
across the region. This reflects continued strong growth in India and the
acquisition of Core Pacific Investment Trust Enterprise in Taiwan. Net mutual
fund inflows in 2000 were £0.3 billion.

UK

UK Insurance Operations

Total insurance and investment sales via Prudential Financial Services were £
2.3 billion compared to £2.5 billion in 1999, reflecting the impact of the
reduced size of the direct salesforce. Sales of group pensions increased 39
per cent to £844 million, reflecting Prudential's success in recently winning
several large group pension contracts. In the fourth quarter it was announced
that Prudential had been selected to run the British Chambers of Commerce
stakeholder pension scheme. This builds on the earlier success of being chosen
as the TUC's preferred stakeholder provider and reaffirms Prudential's
position as a leading player in the new stakeholder environment.

Insurance and investment sales via intermediaries, excluding exceptional bulk
annuities of £1.1 billion in July 1999, were down nine per cent on the
exceptional levels of 1999, to £2.9 billion. This reduction was principally as
a result of lower with-profit bond sales partially offset by higher sales of
individual annuities and investments. In an increasingly competitive market,
sales of with-profit bonds remained strong and we are the leading player in
this market.

M&G

Investment sales in the year were £1.1 billion compared to £533 million in
1999, reflecting a full 12 months contribution in 2000 compared to eight
months in 1999 and the first time inclusion of M&G ISA season sales. On a pro
forma basis, M&G investment sales for the full twelve months were in line with
the prior year, principally as a result of a strong recovery in equity fund
sales, up 77 per cent at £504 million, which offset lower fixed income sales
due to a decline in the popularity of corporate bonds. M&G continues to
maintain its leading position in the fixed income market and the growth in
equity fund sales reflects first quartile 5-year performance for flagship
funds such as Managed Growth and British Opportunities and the success of new
fund launches such as Innovator and Global Technology.

Europe

Sales by Prudential Europe were 13 per cent above prior year at £36 million,
principally due to higher sales in Germany.

Separately, Prudential is announcing today the launch of a new product in
France, Prudential Europe Vie, and an additional distribution agreement with
Centre Francais du Patrimoine. Building on the success of Prudence Bond in the
UK, Prudential Europe Vie makes this innovative equity-backed life insurance
policy available in France for the first time. It will be available initially
through the 385 independent financial advisers approved by Centre Francais du
Patrimoine.

Prudential is also announcing today the opening of a new Paris based branch,
demonstrating Prudential's commitment to developing its position in the French
market. Discussions are taking place with other potential distributors of
Prudential Europe Vie.

Egg

Egg published a pre-closed season briefing on 14 December 2000 which covered
their activities up to 11 December. Egg will announce its preliminary full
year results on 19 February 2001.

                                   - ENDS -

For further information please contact:

Media                                    Analysts

Geraldine Davies                         Rebecca Burrows
Director of Corporate Relations          Director of Investor Relations
020 7548 3911                            020 7548 3537

Stuart Blackmore
Media Relations Manager
020 7548 3520

Note to Editors:

Established in 1991, Centre Francais du Patrimoine is a subsidiary of Credit
Foncier de France and the largest multi-brokerage network in France. As a
broker, Centre Francais du Patrimoine offers 385 certified consultants a range
of independently chosen insurance and investment products.
                                                                                
                                                                      Schedule 1

PRUDENTIAL PLC - 2000 NEW BUSINESS PREMIUMS - FULL YEAR 2000 VERSUS FULL YEAR
1999

                Single            Regular            Total            APE
               Premiums          Premiums          Premiums
               2000  1999  +/-  2000  1999  +/-  2000  1999   +/-  2000 1999 +/-
                           (%)               (%)               (%)           (%)
                 £m    £m          £m    £m          £m    £m      £m    £m
Prudential
Financial
Services:
Individual       30    35 (14%)    34    51 (33%)   64    86 (26%) 37   55 (33%)
Pensions
Corporate       751   487   54%    93   120 (23%)   844  607  39% 168  169  (1%)
Pensions
Life            534   883 (40%)    28    49 (43%)   562  932 (40%) 81  137 (41%)
Annuities       602   681 (12%)     -     -     -   602  681 (12%) 60   68 (12%)
Investment       43    40    8%    12     7   71%    55   47  17%  16   11   45%
Products
              ------------------------------------------------------------------
Sub-Total     1,960 2,126  (8%)   167   227 (26%) 2,127 2,353(10%) 363 440 (18%)
DSS Rebates     175   175    0%     -     -     -   175   175  0%   18 18    0%
              ------------------------------------------------------------------
Total         2,135 2,301  (7%)   167   227 (26%) 2,302 2,528 (9%) 381 457 (17%)
(Schedule 2)
              ------------------------------------------------------------------
Prudential
Intermediated
Businesses:
Individual      196   173   13%    54    34   59%   250   207 21%  74   51   45%
Pensions
Corporate        94   110 (15%)    15    14    7%   109   124 (12%)24   25  (4%)
Pensions
Life          1,660 2,070 (20%)    36    68 (47%) 1,696 2,138 (21%)202 275 (27%)
Annuities       652 1,658 (61%)     -     -    0%   652 1,658 (61%) 65 166 (61%)
Investment      101    49  106%     3     3    0%   104    52  100% 13   8   63%
Products
              ------------------------------------------------------------------
Sub-Total     2,703 4,060 (33%)   108   119  (9%) 2,811 4,179 (33%)378 525 (28%)
DSS Rebates      59    64  (8%)     -     -    0%    59    64  (8%) 6   6    0%
              ------------------------------------------------------------------
Total         2,762 4,124 (33%)   108   119  (9%) 2,870 4,243 (32%)384 531 (28%)
(Schedule 2)
              ------------------------------------------------------------------
M&G:
Individual       28    39 (28%)     2     2    0%    30    41 (27%)  5   6 (17%)
Pensions
Life              1     8 (88%)     -     1    0%     1     9 (89%)  0  2 (100%)
Investment    1,050   523  101%    16    10   60% 1,066   533 100% 121 62   95%
Products
              ------------------------------------------------------------------
Total         1,079   570   89%    18    13   38% 1,097   583  88% 126 70   80%
              ------------------------------------------------------------------
Total UK
Operations:
Individual      254   247    3%    90    87    3%   344   334  3%  115 112    3%
Pensions
Corporate       845   597   42%   108   134 (19%)   953   731 30%  193 194  (1%)
Pensions
Life          2,195 2,961 (26%)    64   118 (46%) 2,259 3,079 (27%)284 414 (31%)
Annuities     1,254 2,339 (46%)     -     -     - 1,254 2,339 (46%)125 234 (47%)
Investment    1,194   612   95%    31    20   55% 1,225   632  94% 150  81   85%
Products
              ------------------------------------------------------------
Sub-Total     5,742 6,756 (15%)   293  359 (18%) 6,035 7,115(15%)867 1,035 (16%)
DSS Rebates     234   239  (2%)     -     -     -   234 239  (2%) 23    24  (4%)
              ------------------------------------------------------------------
Total UK      5,976 6,995 (15%)  293  359 (18%) 6,269 7,354 (15%)891 1,059 (16%)
Operations
              ------------------------------------------------------------------
US
Operations:
Fixed         1,056   826   28%     -     -     - 1,056  826 28% 106   83   28%
Annuities
Equity Linked   409   431  (5%)     -     -     -   409  431 (5%) 41    43  (5%)
Index
Annuities
Variable      1,709 1,187   44%     -     -    -  1,709 1,187 44% 171 119   44%
Annuities
              ------------------------------------------------------------------
Total         3,174 2,444   30%     -     -     - 3,174 2,444 30% 317 244   30%
Annuities
Guaranteed      365   994 (63%)     -     -     -   365  994 (63%) 37  99 (63%)
Investment
Contracts
GIC -         1,291   624  107%     -     -     - 1,291  624 107% 129  62  108%
European
Medium Term
Note
Life              -     -     -    25    24    4%    25    24 4%  25   24    4%
              ------------------------------------------------------------------
Sub-Total     4,830 4,062   19%    25    24    4% 4,855 4,086 19% 508 430   18%
              ------------------------------------------------------------------
Asian
Operations:
Insurance       275   182   51%   229   106  116%   504   288 75% 257 124  107%
Products
Investment    2,259   583  287%     -     -     - 2,259  583 287% 226  58  290%
Products
              ------------------------------------------------------------------
Sub-Total     2,534   765  231%   229   106  116% 2,763  871 217% 482 183  163%
              ------------------------------------------------------------------
European
Operations:
Individual        5     6 (17%)    16    14   14%    21   20 5%   17   15   13%
Pensions
Investment        9     6   50%     6     6    0%    15  12 25%   7     7    0%
Products
              ------------------------------------------------------------------
Sub-Total        14    12   17%    22    20   10%    36  32 13%   23    21   10%
              ------------------------------------------------------------------
Group Total:
Insurance     9,892 10,633  (7%) 532  483 10% 10,424 11,116 (6%)1,521 1,546 (2%)
Products
Investment    3,462 1,201  188%   37  26  42% 3,499 1,227  185%   383  146  162%
Products
              ------------------------------------------------------------------
Group Total   13,354 11,834 13%  569 509 12% 13,923 12,343 13% 1,904 1,692   13%
              ------------------------------------------------------------------

               2000  1999
                 £m    £m

Total Deposit   483    65  643%
Liabilities
Retail Assets   630    71  787%


UK Gross        334   318    5%                                     -
Premiums
Written
                                                                                
                                                                      Schedule 2

                Single            Regular            Total           APE
               Premiums          Premiums          Premiums
               2000  1999   +/-  2000  1999   +/-  2000  1999 +/- 2000 1999  +/-
                            (%)               (%)             (%)           (%)
                 £m    £m          £m    £m          £m    £m     £m    £m
UK Operations
Prudential
Financial
Services

Retail:
Individual       30    35 (14%)    34    51 (33%)    64   86 (26%) 37  55 (33%)
Pensions
Corporate         1     4 (75%)    19    39 (51%)    20   43 (53%) 19  39 (51%)
Pensions
Life            534   883 (40%)    28    49 (43%)   562  932 (40%) 81 137 (41%)
Annuities       442   534 (17%)     -     -     -   442  534 (17%) 44  53 (17%)
Investment       43    40    8%    12     7   71%    55   47  17%  16 11   45%
Products
              ------------------------------------------------------------------
Sub-Total     1,050 1,496 (30%)    93  146 (36%) 1,143 1,642 (30%)198 296 (33%)
DSS Rebates     175   175    0%     -    -    -    175   175  0%   18  18    0%
              ------------------------------------------------------------------
Total         1,225 1,671 (27%)    93  146 (36%) 1,318 1,817 (27%)216 313 (31%)
              ------------------------------------------------------------------
Group
Pensions:
Corporate       750   483   55%    74    81  (9%)   824   564 46% 149 129   16%
Pensions
Annuities       160   147    9%     -     -     -   160   147  9%  16  15    7%
              ------------------------------------------------------------------
Total           910   630   44%    74    81  (9%)   984  711  38% 165 144   15%
              ------------------------------------------------------------------
Total         2,135 2,301  (7%)   167   227 (26%) 2,302 2,528 (9%) 381 457 (17%)
Financial
Services
              ---------------------------------------------------------------
Prudential
Intermediated
Businesses

Retail IFA:
Individual      196   173   13%    54    34   59%   250   207   21%  74  51  45%
Pensions
Corporate        94   110 (15%)    15    14    7%   109   124 (12%)  24  25 (4%)
Pensions
Life          1,660 2,070 (20%)    36   68 (47%) 1,696 2,138 (21%) 202 275 (27%)
Annuities       112   118  (5%)     -    -     -   112   118  (5%) 11   12  (8%)
Investment      101    49  106%     3    3     0%  104    52 100%  13    8   63%
Products
              ------------------------------------------------------------------
Sub-Total     2,163 2,520 (14%)   108   119 (9%) 2,271 2,639 (14%)324  371 (13%)
DSS Rebates      59    64  (8%)     -     -   -     59    64  (8%) 6     6    0%
              ------------------------------------------------------------------
Total         2,222 2,584 (14%)   108   119 (9%) 2,330 2,703 (14%)330  377 (12%)
              ------------------------------------------------------------------
Annuities:
Annuities       540 1,540 (65%)     -    -    -    540 1,540 (65%)54  154 (65%)
              ------------------------------------------------------------------
Total         2,762 4,124 (33%)   108   119  (9%) 2,870 4,243 (32%)384 531 (28%)
Intermediated
Businesses
              ------------------------------------------------------------------
Asian
Operations:

Insurance
Products:
Singapore       239   158   51%    46    34   35%   285   192   48% 70  50   40%
Hong Kong        15    12   25%    47    32   47%    62    44   41% 49  33   48%
Malaysia         15     6  150%    32    29   10%    47    35   34% 34  30   13%
Taiwan            1     -          78     5 1460%    79     5 1480% 78   5 1460%
Vietnam           -     -     -    16     -          16     -       16     -
Other             5     6 (17%)    10     6   67%    15    12  25%  10  6   67%
              ------------------------------------------------------------------
Total           275   182   51%   229   106  116%   504   288  75% 257 124  107%
              ------------------------------------------------------------------
Investment
Products:
India         1,215   583  108%     -     -     - 1,215   583 108% 122 58  110%
Taiwan        1,014     -           -     -     - 1,014     -      101  -
Japan            30     -           -     -     -    30     -        3  -
              ------------------------------------------------------------------
Total         2,259   583  287%     -     -     - 2,259   583 287% 226  58  290%
              ------------------------------------------------------------------
Total Asian   2,534   765  231%   229   106  116% 2,763   871 217% 482 183  163%
Operations
              ------------------------------------------------------------------


Notes to Schedules:

1. The figures for overseas operations have been calculated using average       
   exchange rates. The applicable rate for Jackson National Life is 1.52        
  (December 1999 - 1.62).

2. The 1999 result for M&G in the above table relates to the period from        
   acquisition, May to December 1999.
   The comparative result for the period January to December was £1,172m,       
   including investment sales of £1,068m.

3. In Asia, 'Other' includes Thailand, Indonesia, The Philippines and China.

4. In Asia, mutual fund sales in Taiwan represent gross sales since the         
   acquisition of Core Pacific Securities Investment Trust Enterprise (CPSITE)  
   in October 2000.