Acquisition

PRUDENTIAL CORPORATION PLC
16 July 1999


PRUDENTIAL CORPORATION PLC NOT TO PROCEED WITH ACQUISITION OF HUNG FU LIFE-
TAIWAN

Prudential announced today that it will not now be acquiring the Hung Fu Life
Insurance Company of Taiwan.

Demands made by Hung Fu Life's principal shareholder, subsequent to the signed
Agreement in Principle announced on 30 June 1999 are commercially unacceptable
to Prudential and the Corporation has therefore decided not to proceed with
the acquisition.   

Mark Tucker, chief executive, Prudential Asia, commented:

'We are disappointed that we have been unable to make progress with the
acquisition of Hung Fu Life, but our prime consideration in any expansion
plans must be to deliver value for Prudential's shareholders.   In our view
the further, materially different demands placed on the terms of the deal,
following our Agreement in Principle, run contrary to the interests of our
shareholders.   We are committed to the region and will continue to seek
opportunities for expansion in Taiwan where we see significant potential for
growth'


For further information contact:

Media:  Jeremy Reynolds, 0171 548 3721

Analysts:  Carys Walshe, 0171 548 3823