Prudential Europe News

Prudential PLC
13 June 2003

Embargo: 0900 hours Friday 13 June 2003



Friday 13 June 2003



PRUDENTIAL EUROPE TO CEASE WRITING NEW INSURANCE BUSINESS IN FRANCE



Prudential Europe is to cease writing new insurance business in France. This
follows the conclusions of a review of Prudential-branded businesses in
Continental Europe and the sale of Prudential's German life business to Canada
Life in November 2002.

As a result, from 1 January 2004, Prudential will no longer sell Prudential
Europe Vie; a single premium savings product sold through local distribution
partners in France. Prudential will continue to administer existing policies and
provide customer support to policyholders in France.

Sales of Prudential Vie in France totalled £3.6 million on an APE basis in 2002
and APE sales in the first quarter of 2003 totalled £0.3 million.

Commenting on the announcement, Mark Wood, Chief Executive of Prudential UK &
Europe, said: 'Last year we completed a review of our insurance business in
Continental Europe. At the time, we concluded that the returns achievable were
too low to justify any significant investment of capital. It was decided,
therefore, to run Prudential's existing operations in Continental Europe for
value but not push for growth.

We will continue to monitor European markets with focus particularly on the
investment environment and the returns available.

A subsequent review has shown that while Prudential Europe Vie was well received
in France, the difficult investment environment has led to reduced customer
demand for equity-based products, and as a result we have seen a marked
reduction in sales. We do not foresee any change in this environment in the near
future and therefore intend to cease selling new insurance business in France'.

This announcement does not affect either Egg's operation in France or M&G's
operations in Continental Europe. Egg plc, the world's largest pure online bank,
launched its French business in November 2002 and recently announced its
intention to strengthen its investment in France. M&G, Prudential plc's European
fund management arm, has operations in Germany, Austria, Luxembourg, Italy and
the Netherlands, and is confident of the potential for further growth in these
markets.

                                     -ENDS-

NOTES TO EDITORS:


 1. Prudential Europe was formed in 1999, comprising both the manufacture and
    distribution of Prudential branded products in France and Germany. Sales in
    France began through Centre Francais du Patrimoine in 2001.

 2. The Prudential Europe Vie unit-linked investment product is based on
    Prudential UK's Prudence Bond and was designed at the time to take advantage
    of the growing medium and long-term savings market in France. It is sold
    through local distribution partners.

 3. Prudential Europe's French operation employs 21 staff in France. We are
    currently in consultation regarding the restructure of the French branch and
    expect to have finalised plans by the end of June. 290 Dublin based
    Prudential employees will continue to service Prudential International's
    offshore business and existing Prudential Europe Vie policies as well as
    providing a third-party administration service to St James' Place
    International.

 4. Egg plc is the world's largest pure online bank according to the May 2003
    Nielsen/NetRatings Audience Measurement Data. It has achieved highly
    encouraging levels of brand awareness and consideration in a remarkably
    short time, and as at the end of March 2003 Egg France had a total of
    108,000 customers. France remains an attractive market for Egg, with
    approximately 9 million consumers within its target customer base.

 5. Annual premium equivalent (APE) sales comprise regular premium sales plus
    one-tenth of single premium insurance sales.

Enquires to:
Media                                                       Investors/Analysts

Prudential UK & Europe                                      Rebecca Burrows             020 7548 3537
James Murray                     020 7150 2203              Laura Presland              020 7548 3511

Prudential Group
Clare Staley                     020 7548 3719
Ben Forsyth                      020 7548 3500



Website address:

www.prudential.co.uk








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