Bonuses Top £2.7 Billion

Prudential PLC
23 February 2000


PRUDENTIAL BONUSES TOP £2.7 BILLION

Prudential today announced that is to add bonuses of £2,736 million to the
policies in its main UK with-profits fund.  As a result, the returns on a
typical 25 year regular premium policy maturing in 2000 will be 12.7% per
annum for a savings plan and 14.5% per annum for a pensions policy.  These
returns compare with an average equivalent inflation rate of 5.1% per annum
over the same period, and average returns to customers from building
societies of 5.8% per annum net and 7.7% per annum gross, again over the same
period.

Total claim pay-outs will be increased slightly compared to last year on a 5-
year Prudence Bond.  Prudence Bond is Prudential's best selling product, and
at 1 May 2000 a Prudence Bond held for five years will produce an overall
return of 59%.

Total claim pay-outs for our popular 10 year endowments have been held
unchanged.  We expect to pay out over £450m of claims in 2000 on 10 year
endowments that were taken out in 1990 as part of our 'Savings 2000' campaign.

'Our policy of investing a high proportion of our funds in equities has paid
off over the long-term and enabled us to give excellent real returns to
policyholders', said David Belsham, Prudential Assurance Company's Appointed
Actuary.

Prudential aims to allocate profits to with-profits investors in a fair and
equitable manner and to provide good value to policyholders. The current
economic situation of low inflation and low interest rates has been reflected
in reductions in reversionary bonus rates to ensure that Prudential continues
to be able to provide the best possible overall returns to its policyholders.



Enquiries:
Jeremy Reynolds/Kevin Russell          David Belsham
Head of Media Relations                Appointed Actuary
Prudential                             Prudential Assurance Company
Tel: [phone]                Tel: [phone]



NOTE TO EDITORS

A 10 year £50-a-month direct debit savings policy taken out by a 29 year old
man 10 years ago will pay out £9,673 (£9,673), an effective rate of return of
9.2% (9.2%) p.a. after tax.

A 25 year £50-a-month direct debit savings policy taken out by a 29 year old
man 25 years ago will pay out £95,874 (£103,090), an effective rate of return
of 12.7% (13.2%) p.a. after tax.

A £200-a-month pension policy taken out 20 years ago will have a cash value
of £203,807 (£212,218) and a return of 12.8% (13.2%) p.a.

A £200-a-month pension policy taken out 10 years ago will have a cash value
of £40,111 (£40,125) and a rate of return of 9.9% (9.9%) p.a.

The effective rates of return on savings policies exclude the benefits of
life assurance premium tax relief which would, in practice, have been
available for the 25 year policies.  The rate of return on pensions policies
ignores tax premiums and tax on benefit payments.

The total value of bonuses declared for 1999 is £2,736 million for the PAC
main fund and a further £618 million for the closed Scottish Amicable Fund.

The building society returns are based on accounts available for a deposit
of £2,500.

The Prudence Bond return is based on 100.25% allocation, 5% bid/offer spread,
invested for five years to 1 May 2000.

Reversionary bonus rates on unitised life business have been reduced from
5.25% to 4.75%, and on unitised personal pension business from 5.75% to
5.25%.

Past performance is not necessarily a guide to the future and existing bonus
rates cannot be guaranteed in the future.  The return on surrender of a with-
profits Prudence Bond can be reduced by the application of a market value
reduction.  Terminal bonuses can be reduced or removed retrospectively.

Approved by The Prudential Assurance Company Limited, regulated in the
conduct of investment business by the Personal Investment Authority.