Prudential plc Q1 2010 IMS


LONDON, UK--(Marketwire - May 17, 2010) -


PRUDENTIAL PLC FIRST QUARTER 2010 INTERIM MANAGEMENT STATEMENT

NEW RECORD FOR FIRST QUARTER NEW BUSINESS SALES AT GBP807 MILLION

* GROUP-WIDE SALES OF GBP807 MILLION UP 26 PER CENT. NEW BUSINESS
PROFIT UP 27 PER CENT

* OUTSTANDING FIRST QUARTER IN ASIA. SALES UP 30 PER CENT, NEW
BUSINESS PROFIT UP 35 PER CENT

* CONTINUED POWERFUL MOMENTUM IN US. SALES UP 39 PER CENT, NEW
BUSINESS PROFIT UP 25 PER CENT

* UK FOCUS ON VALUE OVER VOLUME DELIVERS HIGH MARGINS

* ASSET MANAGEMENT NET INFLOWS OF GBP1.2 BILLION

* CAPITAL POSITION REMAINS STRONG - IGD SURPLUS ESTIMATED AT GBP3.4
BILLION (1)              Q1 2010     Q1 2009  % change on
                                                 Q1 09

Group Insurance (2, 3)

Sales - APE               GBP807m     GBP640m    26%

New Business Profit (4)   GBP427m     GBP336m    27%

Margin - APE %                53%         53%      -


Investment Net Inflows    GBP1,203m   GBP2,728m  (56%)

Tidjane Thiam, Group Chief Executive said: "Our record performance in 2009
continued into the first quarter of 2010. We maintained our focus of
allocating capital to the most profitable opportunities, and as a result
have delivered strong growth in new business profit. This first quarter
interim management statement represents a significant evolution in our
financial communication as it includes for the first time new business
profit, as well as new business sales. This change reflects our continued
commitment to greater disclosure.

In the first quarter, APE new business across the Group was GBP807
million, up 26 per cent (first quarter 2009: GBP640 million), and new
business profit was GBP427 million, up almost GBP100 million and 27 per
cent (first quarter 2009: GBP336 million).

In Asia we delivered strong growth in new business compared to the
first quarter 2009. APE sales in the first quarter 2010 were GBP359
million, an increase of 30 per cent on the first quarter last year of
GBP276 million. New business profit for the first quarter was GBP183
million, an increase of 35 per cent. This performance demonstrates the
strength of our businesses in Asia and emphasises the return to
economic growth experienced across the region.

In the US, Jackson's focused approach and strict pricing discipline
also delivered an improved first quarter with new business profit of
GBP175 million, up 25 per cent (first quarter 2009: GBP140 million)and APE
new business sales of GBP255 million up 39 per cent (first quarter 2009:
GBP184 million). We maintained our deliberate emphasis on variable
annuities in which we ranked fourth in the US in 2009, with a market
share of 8 per cent.

Prudential UK continued to serve targeted segments of the retirement
savings and income markets, emphasising value over volume. This
strategy delivered attractive returns on the capital employed in the
first quarter. New business profit was GBP69 million, up 15 per cent
(first quarter 2009: GBP60 million) and APE new business sales were
GBP193 million, up 7 per cent (first quarter 2009: GBP180 million).

M&G continued to outperform the market with net fund inflows in the
first quarter of GBP1,889 million (first quarter 2009: GBP2,543
million). After making allowance for the exceptional nature of the
inflows into corporate bond funds in the first quarter of 2009,
this is a very strong performance in a reinvigorated and competitive
environment.

Our performance has been delivered while taking a disciplined approach
to risk management and targeted Group-wide actions to protect our
strong capital position. Our estimated IGD surplus was GBP3.4 billion at
31 March 2010 (31 December 2009 GBP3.4 billion). This capital strength
underpins our ability to exploit growth opportunities.

In 2010 we said that we would accelerate our proven strategy to
capitalise on the most profitable growth opportunities in our chosen
markets and these strong results demonstrate we are delivering on that
objective. Going forward, we expect momentum in Asia to continue,
whilst the economic conditions in the UK and the US stabilise."

Notes

1 Before allowing for the 2009 final dividend

2 Asia 2010 and 2009 comparative APE new business sales and new
  business profit exclude the Taiwan agency business disposed of during
  Q2 2009 and the Japanese insurance operations which we have closed to
  new business from 15 February 2010

3 Unless otherwise stated all growth rates are on a sterling basis.
  Growth rates on constant currency are presented on schedule 1B of the
  Interim Management Statement

4 For Q1 2010 we have presented new business profit and margin for the
  3 month period ended 31 March 2010 and the comparative period. The
  assumptions underlying new business profit are presented in schedule
  5 to the Interim Management Statement

1. Q1 2010 Business Unit financial highlights

Sales - APE            Q1 2010  Q1 2009      % change on Q1 09

Insurance

Asia (5)               GBP359m     GBP276m   30%

US                     GBP255m     GBP184m   39%

UK                     GBP193m     GBP180m   7%

Total Group Insurance  GBP807m     GBP640m   26%

New Business Profit(6) Q1 2010     Q1 2009   % change on Q1 09

Asia                   GBP183m     GBP136m   35%

US                     GBP175m     GBP140m   25%

UK                     GBP69m      GBP60m    15%

Total Group Insurance  GBP427m     GBP336m   27%

                       Q1 2010   Q1 2009  %pts
Margin - APE %

Asia                   51%       49%     +2pts

US                     69%       76%     -7pts

UK                     36%       33%     +3pts

Total Group Insurance  53%       53%     0pts

Investment Net Inflows Q1 2010   Q1 2009     % change on Q1 09

M&G                    GBP1,889m GBP2,543m   (26%)

Asia Asset Management  (GBP686m) GBP185m     (471%)

Total                  GBP1,203m GBP2,728m   (56%)

Notes

5 Asia 2010 and 2009 comparative APE new business sales and new
  business profit exclude the Taiwan agency business disposed of during
  Q2 2009 and the Japanese insurance operations which we have closed to
  new business from 15 February 2010

6 For Q1 2010 we have presented new business profit and margin for the
  3 month period ended 31 March 2010 and the comparative period. The
  assumptions underlying new business profit are presented in schedule
  5 to the Interim Management Statement

Please follow the link below to view the full announcement;

http://www.rns-pdf.londonstockexchange.com/rns/0027M_1-2010-5-16.pdf

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