Acquisition

Prudential PLC
25 April 2001



Embargoed until 07.00 hrs BST on Wednesday 25 April 2001


PRUDENTIAL PLC TO ACQUIRE ALLSTATE'S LIFE OPERATIONS IN INDONESIA AND
PHILIPPINES

Prudential plc ('Prudential') announced today that it has signed a sale and
purchase agreement to acquire Allstate's majority holdings in Pt Asuransi Jiwa
Allstate, Indonesia and Allstate Life Insurance Company of the Philippines.
The deal is subject to regulatory approvals and is expected to complete in the
second quarter of this year. The net assets being acquired by Prudential are
US$7.5m (as at 31 December 2000).

Allstate established the Pt Asuransi Jiwa Allstate and Allstate Life Insurance
Company operations in 1997/1998 and have been building nationwide tied and
general agency distribution capabilities. Their products are primarily savings
related and the combined businesses have approximately 14,000 policyholders,
4,400 agents and 230 staff.

This acquisition continues Prudential's planned and focused expansion strategy
in Asia. Dan Bardin, Prudential Corporation Asia's Managing Director, South
Asia, commented: 'This is a great opportunity for us as Allstate and
Prudential have similar cultures with highly motivated staff and agents,
innovative products and superior customer service. Combining these businesses
gives us a much stronger platform to continue building top quality operations
in the very important Indonesian and Philippine markets.'

Allstate's International Executive Vice President and Managing Director,
Lawrence Moews added: 'We have been pleased with the growth of these two
companies in Indonesia and the Philippines supported by their entrepreneurial
distribution channels and enthusiastic staff. However, after a review of our
overall business strategy, we have decided to focus resources on our core
domestic growth initiatives in the US. We are confident Prudential's excellent
track record and experience in Asia will take these operations to the next
level of their development.'

Mark Tucker, Chief Executive of Prudential Corporation Asia, concluded:
'Prudential is a great believer in the tremendous potential of the Asian
retail financial services markets. These acquisitions are another sign of our
strong financial position and ongoing commitment to Indonesia and The
Philippines'.

                                    -ENDS-

Enquiries:

Media:

Steve Colton

020 7548 3911/3721

Analysts:

Andrew Crossley

020 7548 3166



Notes to Editors:

Prudential

Prudential has had operations in Asia since 1923. It is now one of the
region's leading life insurers with operations in 11 countries including
Prudential BancBali in Indonesia and Prudential Life of UK in the Philippines.
It has a clearly stated strategy of looking for high value adding
opportunities to continue building scale in its chosen markets.

Allstate

The Allstate Corporation is the United States' largest publicly held personal
lines insurer. It provides insurance products to more than 14 million
households and has approximately 13,000 exclusive agents in the United States
and Canada. Allstate Financial Group includes the businesses that provide life
insurance, retirement and investment products.