Acquisition

PRUDENTIAL CORPORATION PLC
30 September 1999


PRUDENTIAL CORPORATION PLC TO ACQUIRE A MAJORITY HOLDING
IN THE CHINFON LIFE INSURANCE COMPANY OF TAIWAN.
     
Prudential Corporation plc is pleased to announce the
agreement in principle to acquire a 57.8% holding in the
Chinfon Life Insurance Company of Taiwan for NT$1.1bn
(£21.4m), subject to regulatory and other approvals.
     
The terms of the agreement also allow for subscription in
the forthcoming NT$2.8bn (£54m) rights issue required  as
additional  solvency  capital, of which  Prudential  will
contribute NT$1.62bn (£31.2m) for its 57.8% shareholding.
Prudential has also committed to subscribe further in the
event  of non take-up by minority shareholders up  to  an
additional NT$0.62bn (£12m).

The total consideration from Prudential therefore amounts
to  a  minimum of NT$2.73bn (£52.6m), up to a maximum  of
NT$3.35bn (£64.6m). The acquisition and rights issue will
be financed from available resources and facilities.
     
This acquisition represents a significant step in
Prudential's on-going Asian market expansion strategy,
especially in Northern Asia where the financial services
market offers significant opportunities.
     
Established in 1960, Chinfon Life was the first privately
owned life insurance company in Taiwan and is currently
part of the respected Chinfon Group, which will remain  a
minority partner. With more than 250,000 customers
Chinfon Life is ranked tenth in terms of new individual
business with annual premiums of NT$2.6bn (£50m),
representing a market share of around 2%. At 31 December
1998 Chinfon Life had total assets of NT$12.4bn (£238m).
     
Prudential has long-standing interests in Asia: it
already operates in Hong Kong, Singapore, Malaysia, The
Philippines, Thailand, Indonesia and India either through
subsidiaries or joint ventures. It also has
representative offices in China (where it recently
received approval to apply for a life licence) and in
Vietnam.
     
Commenting on the acquisition, Mark Tucker, Chief
Executive of Prudential Corporation Asia said:
     
'We are delighted to  announce this exciting and
significant joint venture with the Chinfon Group which
will give us a strong presence in this rapidly growing
market. This further demonstrates our long term
commitment to the Asian region.'

Enquiries:

Media:         Jeremy Reynolds     020 7548 3721
Analysts: Carys Walshe        020 7548 3823