Prudential Plc Announces 3rd Quarter Results


LONDON, Oct. 19, 2004 (PRIMEZONE) -- Prudential Plc Third Quarter 2004 New Business Results

Strong performances across all businesses*



 --     Total Group Insurance sales of GBP8.2 billion for the first
        nine months of this year, up 24 per cent.

 --     Total Group Insurance APE sales of GBP1.3 billion for the first
        nine months of this year, up 16 per cent.

 --     Prudential UK and Europe APE sales of GBP521 million in the
        first nine months of this year, up 19 per cent.

 --     Jackson National Life's (JNL) APE sales of GBP355 million in
        the first nine months of this year, up 18 per cent.

 --     APE sales at Prudential Corporation Asia of GBP394 million in
        the first nine months of this year, up 12 per cent with third
        quarter sales up 20 per cent on the second quarter.

Prudential's Group Chief Executive, Jonathan Bloomer, commented: "All our businesses continue to show a healthy momentum, building on the strong performance we delivered in the first half of the year.

With its broad product range and diversified distribution channels, the UK insurance business is building on its strengths and is well positioned to win customers as the market concentrates towards financially strong companies.

Jackson National Life's 18 per cent increase in APE sales demonstrates that it has the products and distribution channels to succeed in the US market.

Prudential Corporation Asia's sales momentum continues its upward trend with sales in the third quarter up 20 per cent on the second quarter and increasing month by month.

All our businesses are well positioned to take advantage of the clear opportunities in their respective markets."

* The narrative is on constant exchange rates throughout. See Notes to Editors for further details.

UK and Europe Insurance Operations

Prudential UK and Europe has continued to deliver strong results. Sales for the first nine months of 2004 of GBP521 million on an annual premium equivalent (APE) basis were up 19 per cent on the corresponding period in 2003. This principally reflects strong sales of corporate pensions (up 13 per cent), individual annuities (up 20 per cent) and unit-linked and international with-profits bonds (up 108 per cent).

APE sales in the third quarter of 2004 of GBP161 million were up 29 per cent on the third quarter of 2003.

Intermediaries

APE sales for the nine month period through the intermediaries channel were GBP207 million, 20 per cent higher than the equivalent period in 2003. This reflects the sustained growth in sales of unit-linked and international with-profits bonds where APE sales of GBP52 million were up 108 per cent. APE sales of individual annuities were 42 per cent higher reflecting Prudential's position as one of the market leaders in this area.

Partnerships

APE sales through our partnerships channel were GBP67 million, up 168 per cent on the same period last year. Sales during the third quarter of GBP29 million were up 222 per cent on the third quarter of 2003. This result reflects the strong growth in sales of credit life protection products through our agreements with Lloyds TSB and Alliance & Leicester, and annuities through our partnership with Zurich. APE sales of credit life protection products during the third quarter of 2004 were up 26 per cent on the second quarter. APE individual annuity sales in the third quarter of 2004 increased 33 per cent on the second quarter. Annuity sales from the partnership agreement with Pearl, which was launched in September 2004, will be reflected in the fourth quarter's results.

Business to business

APE sales through the business to business channel for the nine month period were GBP155 million, 6 per cent higher than the same period last year. APE sales of corporate pensions were GBP114 million, 4 per cent higher than the corresponding period of 2003. APE sales of bulk annuities of GBP25 million increased by 32 per cent over the same period last year and comprised 51 scheme wins.

Direct to customer

APE sales through the direct to customer channel for the nine month period were down 9 per cent to GBP83 million, but sales during the third quarter of GBP18 million were in line with the third quarter of 2003. The focus of this channel has been primarily on selling annuities to vesting individual pension customers, an increasing proportion of which are now being transacted through IFAs. PruFund and PruHealth campaigns have recently been launched into this channel.

Product launches

Prudential UK recently launched PruFund, a more transparent smoothed investment product. Illustrations were available from the end of August and the product opened for new business in mid-September. Early signs of interest have been encouraging although it is too early to predict how sales will develop. In October, we launched PruHealth, an innovative UK health insurance product linking health and fitness to the cost of premiums. The product has been developed through our joint venture with Discovery of South Africa.

Persistency

In the interim results we reported a GBP15 million adverse persistency experience variance which arose from higher than expected surrenders of personal pension policies previously sold through the now closed direct sales force and also from Prudence Bond. Although Prudential is taking active steps to manage and improve the conservation of the in-force book, it is still seeing adverse experience on these policies and continues to monitor the position. In accordance with ABI guidelines for achieved profits accounting, the Board will review the success of the action taken and consider actual experience in setting assumptions for future experience at the year end.

Summary

In the UK, we believe we will be a clear beneficiary as the market concentrates towards those financially strong companies with a broad product range and diversified distribution strategy.

M&G

M&G recorded gross retail fund inflows of GBP1.2 billion in the first nine months of 2004, an increase of 36 per cent on the same period last year. Net retail fund inflows were GBP154 million. In the UK, M&G has continued to maintain solid fund inflows as a result of its strong retail brand, good fund performance and diversified product offering in fixed income, equities and, most recently, property. The success of M&G's focused expansion into European markets has been reflected in good sales in this area during the year.

Gross institutional fund inflows were GBP2.2 billion in the first nine months of the year, 5 per cent ahead of 2003. Net fund inflows were GBP463 million, a significant turnaround from the end of the first quarter when a single large redemption by a segregated fixed income client contributed to net outflows of GBP879 million. During the third quarter, M&G continued to progress its successful Collateralised Debt Obligation (CDO) programme with the launch of Ocelot, its first synthetic CDO. This reflects M&G's broadening expertise in this market and contributed GBP199 million to sales.

Jackson National Life

Total APE sales for the first nine months of GBP355 million were up 18 per cent on the same period in 2003. Total retail sales for the nine months of GBP2.6 billion were up 6 per cent on 2003, as a result of strong variable and equity-linked indexed annuity sales, partially offset by lower fixed annuity sales. Retail sales in the third quarter were GBP902 million up 22 per cent on the same period in 2003, the result of increased sales of fixed and equity-linked indexed annuities.

Variable annuities

Variable annuity sales of GBP1.5 billion were up 14 per cent on the first nine months of last year, reflecting consumers' confidence in the equity markets and JNL's strong product offering. JNL improved its market position to fourth at the end of the second quarter (in terms of net flow). Among the top 25 providers in the first six months of the year JNL's unbundled annuity product "Perspective II" was the best selling product (in terms of net flow) and its variable annuity net assets grew the fastest (Source VARDS). The rate of take up of the fixed account option remained low, with 28 per cent of the variable annuity premium going into fixed accounts compared with 53 per cent in 2003. Jackson continues to develop its product range: in October, it added several new investment and benefit options to its unbundled Perspective II product, which customers can actively select and pay for.

Fixed annuities

Fixed annuity sales of GBP848 million were down 17 per cent on the first nine months of last year, due to the continued low interest rate environment in the US and the resulting lower crediting rates that limit demand for this product. However, recent interest rate moves have generated more interest in fixed and equity-linked indexed annuity products. In the third quarter, fixed annuity sales were up 15 per cent on the previous quarter and up 55 per cent on third quarter 2003.

Equity-linked indexed annuities

Equity-linked indexed annuity sales for the first nine months of GBP293 million were up 80 per cent on last year, reflecting the attractiveness of the products and customers' increasing preference for fixed products with the potential for higher returns linked to equity index performance.

Life

Regular premium life sales of GBP19 million for the first nine months were up 90 per cent on last year. This is the result of JNL's increased focus on its life business, including the introduction of several new products, such as variable universal life and the creation last year of a dedicated distribution team to focus on building relationships with life insurance agents.

Curian Capital

Curian Capital continues to build a strong position in the managed accounts market, with total assets under management at the end of the period of GBP432 million up from GBP147 million at the year end.

Institutional

Institutional sales for the first nine months of GBP730 million were up 66 per cent on 2003. As we reported in our half year results JNL took advantage of several attractive opportunities in the first half of 2004 but intends to focus on retail sales for the rest of the year. Consistent with this, institutional sales in the third quarter were GBP129 million, down 55 per cent on the previous quarter. JNL remains on track to deliver institutional sales of around GBP225 million for the second half of the year.

Summary

JNL is well positioned to maintain its strong growth and as reported in our half year results we expect it to return $120 million cash to the Group this year and in future years.

Prudential Corporation Asia

Prudential's Asian operations showed strong momentum during the third quarter, with sales improving month on month. Overall APE sales of GBP145 million represented growth of 20 per cent over the second quarter. APE sales of GBP394 million for the nine months are up 12 per cent on last year, up 21 per cent excluding discontinued sales in Japan.

Single premium products continue to be popular and while our primary focus remains on more profitable regular premium business, the proportion of single premium sales in the APE mix has increased to 12 per cent for the first nine months compared with 8 per cent for the full year 2003.

Following slower starts to 2004, both Malaysia and Taiwan have seen strong growth during the third quarter relative to the second, with increases of 36 per cent and 45 per cent respectively, driven principally by planned sales incentives and the successful launch of an innovative unit-linked product in Taiwan. Singapore recorded its strongest quarter of 2004 so far with a 20 per cent increase over the second quarter. Single premium unit-linked sales were particularly strong.

In Hong Kong, APE sales growth remains strong, increasing by 16 per cent for the first nine months of the year. However, the third quarter was slightly lower than the second due to the market's current preference for short-term traditional endowment policies and our strategy to manage our exposure to these less profitable products. Nevertheless, sales of single premium products, principally through bancassurance, grew 36 per cent for the first nine months, compared with the same period last year.

The life operation in Korea continued to show very strong growth in the first nine months of the year. However, this growth rate eased slightly in the third quarter with increasing volumes from the financial consultant and general agent channels offset by slower bancassurance sales as one of our partners recovers from the effects of industrial action. Korea also experienced increased competition in the direct channel.

In India, where we have a joint venture with ICICI Bank, growth in APE sales continues to be strong, increasing 140 per cent on 2003 for the first nine months. The growth rate did slow in the third quarter with a 17 per cent increase on the second quarter. Recently the industry has seen a slow down in new business growth, in part due to the introduction of the Senior Citizen Savings Scheme announced in the budget having a temporary impact.

Sales in China for the first nine months of the year are up 71 per cent compared with last year. We have been operating in Guangzhou for four years, and have a 14 per cent share of new business sales through the agency channel on an APE basis. We launched in Beijing in August 2003, and in Suzhou this September.

Sales in Indonesia in the third quarter were 33 per cent ahead of the previous quarter. Our business in Indonesia recovered from the effects of a court imposed administration period resulting from attempts to put the company into bankruptcy despite the business clearly being solvent. The bankruptcy decision has been overturned by the Indonesian Supreme Court. A bill to amend the bankruptcy law in Indonesia to prevent similar attempts has now been passed by the parliament and is awaiting Presidential notification.

In the third quarter of 2003, we implemented our new strategy in Japan to focus on more profitable product lines such as variable universal life and to improve our distribution. New business volumes this year have been slow, but we are starting to see some progress, which we continue to monitor. The third quarter 2004 was up 38 per cent compared with the second quarter.

Growth in Prudential's "Other" Asian operations slowed over the first nine months, mainly due to the impact of the Vietnamese market, which has seen a significant slowdown in growth rate after four years of strong sales following liberalisation of the market.

The Asian retail investment management business had GBP6.8 billion of funds under management at 30 September, with net inflows of GBP0.3 billion for the first nine months of the year. The net inflows were depressed by GBP767 million of net outflows in Taiwan in the third quarter following market concern about the liquidity of bond funds across the industry. The balance of the retail investment operations of Prudential Corporation Asia continue to record strong net inflows, with particularly strong growth in Korea and Japan.

Summary

The sales momentum seen in the third quarter positions our Asian business well for a strong fourth quarter, in line with market expectations. We remain confident that the profitable growth being delivered in Asia is sustainable over the long-term and the business remains on track to begin remitting surplus capital to the group in 2006.

Prudential is hosting an analyst and investor visit to Kuala Lumpur and Ho Chi Minh City in the first week of November, when we will talk in more detail about our strategy, operations, products and distribution channels across the region.

Egg

Egg has separately announced its third quarter results today.

Enquiries to:



  Media                             Investors/Analysts

  Geraldine Davies 020 7548 3911    Rebecca Burrows    020 7548 3537

  Clare Staley     020 7548 3719    Marina Lee-Steere  020 7548 3511

Notes to Editors:

There will be a conference call today for wire services hosted by Jonathan Bloomer, Group Chief Executive, and Philip Broadley, Group Finance Director at 7.30am. Dial-in telephone number: +44 (0) 20 8288 4530. Callers to quote "Prudential" for access to the call.

Sales for overseas operations have been reported using average exchange rates as shown in the attached schedules. Commentary is given on the results on a constant exchange rate basis. The two bases are compared in the table below.



                         Annual Premium Equivalent Sales
                 Actual exchange rates       Constant exchange rates
                 2004 YTD      2003     +/-   2004 YTD     2003    +/-
                    GBPm        YTD    (%)       GBPm       YTD   (%)
                               GBPm                        GBPm
  UK                 521       438     19%        521      438    19%
  and
  Europe
  US                 355       342      4%        355      302    18%
  Asia               394       391      1%        394      353    12%
  Total            1,270     1,170      9%      1,270    1,093    16%



                                 Gross Inflows
              Actual exchange rates         Constant exchange rates
             2004 YTD   2003 YTD     +/-    2004 YTD   2003 YTD    +/-
                GBPm       GBPm     (%)        GBPm       GBPm    (%)
  M&G          3,451      3,024     14%       3,451      3,024    14%
  Asia        13,776     13,309      4%      13,776     12,185    13%
  Total       17,227     16,333      5%      17,227     15,209    13%



                    Total Insurance and Investment New Business
                 Actual exchange rates       Constant exchange rates
                 2004 YTD      2003    +/-   2004 YTD      2003    +/-
                    GBPm        YTD   (%)       GBPm        YTD   (%)
                               GBPm                        GBPm
  Insurance        8,150     7,005    16%      8,150     6,553    24%
  Investment      17,227    16,333     5%     17,227    15,209    13%
  Total           25,377    23,338     9%     25,377    21,762    17%

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

Certain investment mandates previously reported as UK corporate pensions are now reported as M&G institutional investment flows. The impact is to reduce UK corporate pensions APE sales by GBP32 million for the full-year 2003 (GBP26 million for the first nine months of 2003).

US institutional products (previously referred to as "stable value products") consist of guaranteed investment contracts (GICs), funding agreements and medium-term notes backed by funding agreements.

*Prudential plc, a company incorporated and with its principal place of business in the United Kingdom, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has GBP170 billion in assets under management, as at 30 June 2004. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.

Forward-Looking Statements

This statement may contain certain "forward-looking statements" with respect to certain of Prudential's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words "believes," "intends," "expects," "plans," "seeks" and "anticipates," and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential's forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make.


           PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004




              TOTAL INSURANCE AND INVESTMENT NEW BUSINESS




                  UK & Europe        US (1)            Asia (1)



           2004  2003    +/-   2004   2003    +/-  2004   2003  +/-
             Q3    Q3   (%)      Q3     Q3   (%)     Q3     Q3 (%)
            YTD   YTD           YTD    YTD          YTD    YTD
           GBPm  GBPm          GBPm   GBPm         GBPm   GBPm

  Total   3,955 3,026   31%   3,379  2,934   15%   816    593  38%
  Insurance
  Products
  Total   3,451 3,024   14%     --     --    -- 13,776 12,185  13%
  Investm
  ent
  Products --
  Gross
  Inflows
  (2)
           ----  ----  ----   ----  ----  ----   ----  ----   ----

  Group   7,406 6,050   22%  3,379 2,934   15%  14,592 12,778  14%
  Total
           ====  ====  ====   ====  ====  ====   ====  ====   ====






                         INSURANCE OPERATIONS



               Single            Regular                Total
            2004  2003  +/-   2004 Q3 2003  +/-     2004  2003   +/-
              Q3     Q3  (%)     Q3   (%)   Q3        Q3   (%)
             YTD    YTD         YTD    YTD         YTD     YTD
            GBPm   GBPm        GBPm   GBPm        GBPm    GBPm



  UK
  Insurance
  Operations
  : (4)
  Direct to
  Customer:
  Individual   7     7     --    6     7    (14%)   13     14    (7%)
  Pensions
  Life --      9    10   (10%)   1     1      --    10     11    (9%)
  With
  Profit
  Bond
  Life --     --    --    --     1     1      --     1      1      --
  Other
  Individual 464   519   (11%)  --    --      --   464    519    (11%)
  Annuities

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total  480   536  (10%)   8     9    (11%)  488    545    (10%)

  DWP        272   280   (3%)  --    --     --    272    280     (3%)
  Rebates
            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total      752   816   (8%)   8     9    (11%)  760    825     (8%)

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Business
  to
  Business:
  Corporate  108   129 (16%)  103   97      6%   211    226    (7%)
  Pensions
  Individual 162   167   (3%)  --   --     --    162    167    (3%)
  Annuities

  Bulk       253   189   34%   --   --     --    253    189     34%
  Annuities

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total      523   485    8%  103   97      6%   626    582      8%

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Intermedia
  ted
  Distributi
  on :
  Individual  45   42     7%   16   19    (16%)   61     61      --
  Pensions
  Corporate  127   38    234%   7    5     40%   134     43    212%
  Pensions
  Life --    188  290   (35%)  --   --     --    188    290    (35%)
  With
  Profit
  Bond
  Life --    520  251   107%  --    --     --    520    251    107%
  Other
  Bond
  Life --     --    1     --   3    20    (85%)    3     21    (86%)
  Other
  Individual 854  597   43%   --    --     --    854    597     43%
  Annuities

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-     1,734  1,219  42%  26    44    (41%)  1,760  1,263   39%
  Total

  DWP         72     60  20%  --    --     --       72     60   20%
  Rebates
            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total    1,806  1,279  41%   26    44    (41%)  1,832  1,323   38%

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Partnerships:
  Life --      3    45  (93%)   --    --     --     3     45    (93%)
  With
  Profit
  Bond
  Life --    573   179  220%     1    --     --   574    179    221%
  Other
  Individual  88    28  214%    --    --     --    88     28    214%
  Annuities

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total      664   252  163%     1    --     --   665    252    164%

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total :
  Individual  52    49    6%    22    26    (15%)  74     75    (1%)
  Pensions
  Corporate  235   167  41%    110   102    8%   345    269     28%
  Pensions
  Life --    200   345 (42%)     1     1    0%   201    346    (42%)
  With
  Profit
  Bond
  Life --    520   251  107%    --    --    --   520    251    107%
  Other
  Bond
  Life --    573   180  218%     5    21  (76%)  578    201    188%
  Other
  Indivi   1,568 1,311   20%    --    --    -- 1,568  1,311     20%
  dual
  Annuities

  Bulk       253   189   34%    --    --    --   253    189     34%
  Annuities

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total 3,401 2,492  36%   138   150  (8%) 3,539  2,641    34%

  DWP         344   340   1%    --    --    --   344    340     1%
  Rebates
            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total UK  3,745 2,832  32%   138   150  (8%) 3,883  2,981    30%
  Insurance
  Operations

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  European
  Insurance
  Operations
  : (1)
  Insurance   71    45  58%      1    --    --    72     45    60%
  Products
            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total       71    45  58%      1    --    --    72     45    60%
  European
  Insurance
  Operations

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total UK 3,816 2,877  33%    139   150  (7%) 3,955  3,026    31%
  &
  European
  Insurance
  Operations

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  US
  Insurance
  Operations
  : (1)
  Fixed      848 1,020 (17%)   --    --    --    848  1,020  (17%)
  Annuities

  Equity-Lin 293   163  80%    --    --    --    293    163    80%
  ked
  Indexed
  Annuities

  Variable 1,489 1,301  14%    --    --    --  1,489  1,301    14%
  Annuities

  Life        --    --   --    19    10    90%    19     10    90%
            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total 2,630 2,484  6%    19    10    90% 2,649  2,494     6%
  Retail
  Guaranteed  106   169 (37%)  --    --    --    106    169    (37%)
  Investment
  Contracts

  GIC --      624   271  130%  --    --    --    624    271    130%
  Medium
  Term Note

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total US  3,360 2,924  15%   19    10   90%  3,379  2,934     15%
  Insurance
  Operations

            ----  ----  ----  ----  ----  -----  -----  -----  -----

  Asian
  Insurance
  Operations
  : (1)
  China        6     4    50%   11     7   57%    17     11     55%
  Hong Kong    162   119  36%   55    49   12%   217    168     29%

  India        4     3    33%   24    10  140%    28     13    115%
  (@26%)
  Indonesia   27    14    93%   20    20    --    47     34     38%

  Japan       12     7    71%    5    32  (84%)   17     39    (56%)

  Korea       30     4    650%  40    15  167%    70     19    268%

  Malaysia     5     8   (38%)  39    38    3%    44     46    (4%)

  Singapore  153    87    76%   31    36  (14%)  184    123     50%

  Taiwan      64    17    276%  95    85   12%   159    102     56%

  Other (5)    6     4    50%   27    34  (21%)   33     38    (13%)

             ----  ----  ----  ----  ---- ----  -----  -----  -----

  Total      469   267    76%  347   326    6%   816    593     38%
  Asian
  Insurance
  Operations

             ----  ----  ----  ----  ----  ----  -----  -----  -----

  Group    7,645 6,068    26%  505   486    4%  8,150  6,553   24%
  Total
             ====  ====  ====  ====  ====  ====  =====  =====  =====




                  Schedule 1 -- Constant Exchange Rates




           PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004




              TOTAL INSURANCE AND INVESTMENT NEW BUSINESS






                                Total



                                2004 Q3 YTD    2003 Q3 YTD    +/- (%)
                                       GBPm           GBPm
  Total Insurance Products           8,150          6,553         24%
  Total Investment Products         17,227          15,209        13%
  -- Gross Inflows (2)
                                     ------         ------     ------
  Group Total                       25,377          21,762        17%
                                     ======         ======     ======




                         INSURANCE OPERATIONS





                        Annual Equivalents (3)

                                           2004       2003
                                             Q3         Q3      +/-
                                            YTD        YTD
                                           GBPm       GBPm
  UK Insurance Operations : (4)
  Direct to Customer:
  Individual Pensions                          7         8      (13%)
  Life -- With Profit Bond                     2         2         --
  Life -- Other                                1         1         --
  Individual Annuities                        46        52      (12%)
                                           ------    ------    ------
  Sub-Total                                   56        63      (11%)
  DWP Rebates                                 27        28       (4%)
                                           ------    ------    ------
  Total                                       83        91       (9%)
                                           ------    ------    ------
  Business to Business:
  Corporate Pensions                         114       110         4%
  Individual Annuities                        16        17       (6%)
  Bulk Annuities                              25        19        32%
                                           ------    ------    ------
  Total                                      155       146         6%
                                           ------    ------    ------
  Intermediated Distribution :
  Individual Pensions                         21        23       (9%)
  Corporate Pensions                          20         9       122%
  Life -- With Profit Bond                    19        29      (34%)
  Life -- Other Bond                          52        25       108%
  Life -- Other                                3        20      (85%)
  Individual Annuities                        85        60        42%
                                           ------    ------    ------
  Sub-Total                                  199       166        20%
  DWP Rebates                                  7         6        17%
                                           ------    ------    ------
  Total                                      207       172        20%
                                           ------    ------    ------
  Partnerships :
  Life -- With Profit Bond                     0         5     (100%)
  Life -- Other                               58        18       222%
  Individual Annuities                         9         3       200%
                                           ------    ------    ------
  Total                                       67        25       168%
                                           ------    ------    ------
  Total :
  Individual Pensions                         27        31      (13%)
  Corporate Pensions                         134       119        13%
  Life -- With Profit Bond                    21        36      (42%)
  Life -- Other Bond                          52        25       108%
  Life -- Other                               62        39        59%
  Individual Annuities                       157       131        20%
  Bulk Annuities                              25        19        32%
                                           ------    ------    ------
  Sub-Total                                  478       399        20%
  DWP Rebates                                 34        34         --
                                           ------    ------    ------
  Total UK Insurance Operations              513       433        18%
                                           ------    ------    ------
  European Insurance Operations : (1)
  Insurance Products                           8         5        60%
                                           ------    ------    ------
  Total European Insurance Operations          8         5        60%
                                           ------    ------
  Total UK & European Insurance              521       438        19%
  Operations
                                           ------    ------    ------
  US Insurance Operations : (1)
  Fixed Annuities                             85       102      (17%)
  Equity-Linked Indexed Annuities             29        16        81%
  Variable Annuities                         149       130        15%
  Life                                        19        10        90%
                                           ------    ------    ------
  Sub-Total Retail                           282       258         9%
  Guaranteed Investment Contracts             11        17      (35%)
  GIC -- Medium Term Note                     62        27       130%
                                           ------    ------    ------
  Total US Insurance Operations              355       302        18%
                                           ------    ------    ------
  Asian Insurance Operations : (1)
  China                                       12         7        71%
  Hong Kong                                   71        61        16%
  India (@26%)                                24        10       140%
  Indonesia                                   23        21        10%
  Japan                                        6        33      (82%)
  Korea                                       43        15       187%
  Malaysia                                    40        39         3%
  Singapore                                   46        45         2%
  Taiwan                                     101        87        16%
  Other (5)                                   28        34      (18%)
                                           ------    ------    ------
  Total Asian Insurance Operations           394       353        12%
                                           ------    ------    ------
  Group Total                              1,270     1,093        16%
                                           ======    ======    ======





                              Schedule 1b




           PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004




              TOTAL INSURANCE AND INVESTMENT NEW BUSINESS




                  UK & Europe     US (1b)           Asia (1b)



              2004  2003   +/-  2004  2003  +/-  2004   2003   +/-
                Q3    Q3  (%)     Q3    Q3 (%)     Q3     Q3  (%)
               YTD   YTD         YTD   YTD        YTD    YTD
              GBPm  GBPm        GBPm  GBPm       GBPm   GBPm

  Total      3,955 3,028  31%  3,379 3,318  2%   816    659    24%
  Insurance
  Products
  Total      3,451 3,024  14%    --    --  -- 13,776 13,309    4%
  Investment
  Products-Gr
  oss
  Inflows
  (2)
              ----  ----  ----  ----  ---- --- -----  -----  -----

  Group      7,406 6,052  22% 3,379 3,318   2% 14,592 13,968   4%
  Total
              ====  ====  ====  ====  ==== === =====  =====  =====




                         INSURANCE OPERATIONS



                      Single    Regular    Total



              2004  2003   +/-  2004  2003    +/-   2004   2003    +/-
                Q3    Q3  (%)     Q3    Q3   (%)      Q3     Q3   (%)
              YTD   YTD         YTD   YTD           YTD    YTD
              GBPm  GBPm        GBPm  GBPm         GBPm   GBPm

  UK
  Insurance
  Operations
  : (4)
  Direct to
  Customer:
  Individual   7     7     --    6     7    (14%)   13     14    (7%)
  Pensions
  Life --      9    10   (10%)   1     1      --    10     11    (9%)
  With
  Profit
  Bond
  Life --      --    --    --    1     1      --     1      1      --
  Other
  Individual   464   519 (11%)   --    --     --   464    519    (11%)
  Annuities

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total    480   536 (10%)   8     9    (11%)  488    545    (10%)

  DWP          272   280  (3%)   --    --     --   272    280    (3%)
  Rebates
              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total        752   816  (8%)   8     9    (11%)  760    825    (8%)

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Business
  to
  Business:
  Corporate    108   129 (16%)   103  97      6%   211    226    (7%)
  Pensions
  Individual   162   167  (3%)   --    --     --   162    167    (3%)
  Annuities

  Bulk         253   189  34%    --    --     --   253    189     34%
  Annuities

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total        523   485   8%    103  97      6%   626    582      8%

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Intermedia
  ted
  Distributi
  on :
  Individual    45   42     7%   16    19    (16%)   61     61      0%
  Pensions
  Corporate    127   38   234%    7     5     40%   134     43    212%
  Pensions
  Life --      188  290  (35%)   --    --     --    188    290   (35%)
  With
  Profit
  Bond
  Life --      520  251  107%    --    --     --    520    251    107%
  Other
  Bond
  Life --       --    1    --     3    20    (85%)    3     21   (86%)
  Other
  Individual   854  597  43%     --    --     --    854    597     43%
  Annuities

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total  1,734 1,219 42%     26    44   (41%) 1,760  1,263   39%

  DWP           72    60 20%     --    --     --     72     60   20%
  Rebates
              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total      1,806 1,279 41%     26    44    (41%)  1,832  1,323   38%

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Partnershi
  ps :
  Life --       3    45  (93%)   --    --     --     3     45    (93%)
  With
  Profit
  Bond
  Life --      573   179  220%    1    --     --   574    179    221%
  Other
  Individual    88    28  214%   --    --     --    88     28    214%
  Annuities

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total        664   252  163%    1    --     --   665    252    164%

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total :
  Individual    52    49   6%   22    26    (15%)   74     75    (1%)
  Pensions
  Corporate    235   167  41%    110   102    8%   345    269     28%
  Pensions
  Life --      200   345 (42%)   1     1      0%   201    346    (42%)
  With
  Profit
  Bond
  Life --      520   251  107%   --    --     --   520    251    107%
  Other
  Bond
  Life --      573   180  218%   5    21    (76%)  578    201    188%
  Other
  Individual 1,568 1,311  20%   --     --     -- 1,568  1,311    20%
  Annuities

  Bulk         253   189  34%    --    --     --   253    189    34%
  Annuities

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total  3,401 2,492  36%   138   150  (8%)  3,539  2,642    34%

  DWP          344   340   1%    --    --    --    344    340      1%
  Rebates
              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total UK   3,745 2,832  32%    138   150  (8%)   3,883  2,982   30%
  Insurance
  Operations

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  European
  Insurance
  Operations
  : (1)
  Insurance   71    46    54%    1     --     --    72     46     57%
  Products
              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total       71    46    54%    1     --     --    72     46     57%
  European
  Insurance
  Operations

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total UK  3,816 2,876  33%    139   150  (7%)   3,955  3,028   31%
  &
  European
  Insurance
  Operations

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  US
  Insurance
  Operations
  : (1b)
  Fixed       848 1,153 (26%)   --    --    --    848    1,153  (26%)
  Annuities

  Equity-Lin  293   184  59%    --    --    --    293      184   59%
  ked
  Indexed
  Annuities

  Variable  1,489 1,471   1%    --    --    --  1,489    1,471    1%
  Annuities

  Life         --    --    --   19    11     73%   19       11    73%
             ----  ----  ----  ----  ----  -----  -----  -----  -----

  Sub-Total 2,630 2,808  (6%)   19    11     73% 2,649   2,819  (6%)
  Retail
  Guaranteed  106   192 (45%)   --    --     --    106     192  (45%)
  Investment
  Contracts

  GIC --      624   307  103%   --    --    --     624    307    103%
  Medium
  Term Note

             ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total US  3,360 3,307   2%    19    11    73%  3,379  3,318    2%
  Insurance
  Operations

             ----  ----  ----  ----  ----  -----  -----  -----  -----

  Asian
  Insurance
  Operations
  : (1b)
  China        6     5    20%   11     8     38%    17     13     31%
  Hong Kong    162   134  21%   55    55      --   217    189     15%

  India        4     3    33%   24    11    118%    28     14    100%
  (@26%)
  Indonesia   27    16    69%   20    23    (13%)   47     39     21%

  Japan       12     7    71%    5    33    (85%)   17     40    (58%)

  Korea       30     4    650%  40    16    150%    70     20    250%

  Malaysia     5     9   (44%)  39    43    (9%)    44     52    (15%)

  Singapore    153  96    59%   31    40    (23%)  184    136     35%

  Taiwan      64    18    256%  95    94      1%   159    112     42%

  Other (5)    6     6     0%   27    38    (29%)   33     44    (25%)

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Total        469   298  57%    347   361  (4%)   816    659     24%
  Asian
  Insurance
  Operations

              ----  ----  ----  ----  ----  -----  -----  -----  -----

  Group      7,645 6,483  18%    505   522  (3%)   8,150  7,005   16%
  Total
              ====  ====  ====  ====  ====  =====  =====  =====  =====




                              Schedule 1b



            PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004



              TOTAL INSURANCE AND INVESTMENT NEW BUSINESS



                                Total



                                2004 Q3 YTD    2003 Q3 YTD    +/- (%)
                                       GBPm           GBPm
  Total Insurance Products           8,150          7,005         16%
  Total Investment                  17,227         16,333          5%
  Products-Gross Inflows (2)
                                     ------         ------     ------
  Group Total                       25,377         23,338          9%
                                     ======         ======     ======



                         INSURANCE OPERATIONS




                        Annual Equivalents (3)





                                2004 Q3 YTD    2003 Q3 YTD    +/- (%)
                                       GBPm           GBPm
  UK Insurance Operations :
  (4)
  Direct to Customer:
  Individual Pensions                    7              8       (13%)
  Life -- With Profit Bond               2              2          --
  Life -- Other                          1              1          --
  Individual Annuities                  46             52       (12%)
                                     ------         ------     ------
  Sub-Total                             56             63       (11%)
  DWP Rebates                           27             28        (4%)
                                     ------         ------     ------
  Total                                 83             91        (9%)
                                     ------         ------     ------
  Business to Business:
  Corporate Pensions                   114            110          4%
  Individual Annuities                  16             17        (6%)
  Bulk Annuities                        25             19         32%
                                     ------         ------     ------
  Total                                155            146          6%
                                     ------         ------     ------
  Intermediated Distribution
  :
  Individual Pensions                   21             23        (9%)
  Corporate Pensions                    20              9        122%
  Life -- With Profit Bond              19             29       (34%)
  Life -- Other Bond                    52             25        108%
  Life -- Other                          3             20       (85%)
  Individual Annuities                  85             60         42%
                                     ------         ------     ------
  Sub-Total                            199            166         20%
  DWP Rebates                            7              6         17%
                                     ------         ------     ------
  Total                                207            172         20%
                                     ------         ------     ------
  Partnerships :
  Life -- With Profit Bond               0              5      (100%)
  Life -- Other                         58             18        222%
  Individual Annuities                   9              3        200%
                                     ------         ------     ------
  Total                                 67             25        168%
                                     ------         ------     ------
  Total :
  Individual Pensions                   27             31       (13%)
  Corporate Pensions                   134            119         13%
  Life -- With Profit Bond              21             36       (42%)
  Life -- Other Bond                    52             25        108%
  Life -- Other                         62             39         59%
  Individual Annuities                 157            131         20%
  Bulk Annuities                        25             19         32%
                                     ------         ------     ------
  Sub-Total                            478            399         20%
  DWP Rebates                           34             34          --
                                     ------         ------     ------
  Total UK Insurance                   513            433         18%
  Operations
                                     ------         ------     ------
  European Insurance
  Operations : (1)
  Insurance Products                     8              5         60%
                                     ------         ------     ------
  Total European Insurance               8              5         60%
  Operations
                                     ------         ------     ------
  Total UK & European                  521            438         19%
  Insurance Operations
                                     ------         ------     ------
  US Insurance Operations :
  (1b)
  Fixed Annuities                       85            115       (26%)
  Equity-Linked Indexed                 29             18         61%
  Annuities
  Variable Annuities                   149            147          1%
  Life                                  19             11         73%
                                     ------         ------     ------
  Sub-Total Retail                     282            292        (3%)
  Guaranteed Investment                 11             19       (42%)
  Contracts
  GIC -- Medium Term Note               62             31        100%
                                     ------         ------     ------
  Total US Insurance                   355            342          4%
  Operations
                                     ------         ------     ------
  Asian Insurance Operations
  : (1b)
  China                                 12              9         33%
  Hong Kong                             71             68          4%
  India (@26%)                          24             11        118%
  Indonesia                             23             25        (8%)
  Japan                                  6             34       (82%)
  Korea                                 43             16        169%
  Malaysia                              40             44        (9%)
  Singapore                             46             50        (8%)
  Taiwan                               101             96          5%
  Other (5)                             28             39       (28%)
                                     ------         ------     ------
  Total Asian Insurance                394            391          1%
  Operations
                                     ------         ------     ------
  Group Total                        1,270          1,170          9%
                                     ======         ======     ======




                               Schedule 2




           PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004




                        INVESTMENT OPERATIONS




                     Opening       Gross     Redemptions       Net
                       FUM       Inflows                     inflows
  2004
  M&G
  M&G branded          8,819        1,124         ( 957)         167
  retail
  investment
  products
  Prudential           1,325          118         ( 131)       ( 13)
  branded UK
  retail
  investment
  products (6)
  M&G                 14,048        2,209       ( 1,746)         463
  institutional
  (7)
                       ------       ------         ------      ------
  Total M&G           24,192        3,451       ( 2,834)         617
                       ------       ------         ------      ------
  Asia
  India                2,049        6,519       ( 6,683)      ( 164)
  Taiwan               2,666        4,609       ( 5,426)      ( 817)
  Korea                  933        1,625       ( 1,179)         446
  Other Mutual           752          966         ( 211)         755
  Fund Operations
                       ------       ------         ------      ------
  Total Asian          6,400       13,719      ( 13,499)         220
  Mutual Fund
  Operations
                       ------       ------         ------      ------
  Hong Kong MPF          196           57          ( 21)          36
  Products (8)
                       ------       ------         ------      ------
  Total Asian          6,596       13,776      ( 13,520)         256
  Investment
  Operations
                       ------       ------         ------      ------
  Total               30,788       17,227      ( 16,354)         873
  Investment
  Products
                       ------       ------         ------      ------

                     Opening       Gross     Redemptions       Net
                       FUM       Inflows                     inflows
  2003
  M&G
  M&G branded          7,587          809         ( 612)         197
  retail
  investment
  products
  Prudential           1,137          107         ( 107)           --
  branded UK
  retail
  investment
  products (6)
  M&G                 11,560        2,108       ( 1,120)         988
  institutional
  (4) (7)
                       ------       ------         ------      ------
  Total M&G           20,284        3,024       ( 1,839)       1,185
                       ------       ------         ------      ------
  Asia
  India                1,372        5,261       ( 4,906)         355
  Taiwan               2,425        5,707       ( 5,485)         222
  Korea                  993        1,768       ( 1,702)          66
  Other Mutual           306          517         ( 177)         340
  Fund Operations
                       ------       ------         ------      ------
  Total Asian          5,096       13,253      ( 12,270)         983
  Mutual Fund
  Operations
                       ------       ------         ------      ------
  Hong Kong MPF          136           56          ( 16)          40
  Products (8)
                       ------       ------         ------      ------
  Total Asian          5,232       13,309      ( 12,286)       1,023
  Investment
  Operations
                       ------       ------         ------      ------
  Total               25,516       16,333     (14,125)         2,208
  Investment
  Products
                       ------       ------         ------      ------

                     Opening       Gross     Redemptions       Net
                       FUM       Inflows                     inflows
  2004 Movement
  Relative to
  2003
  M&G
  M&G branded             16%          39%          (56%)       (15%)
  retail
  investment
  products
  Prudential              17%          10%          (22%)          --
  branded UK
  retail
  investment
  products (6)
  M&G                     22%           5%          (56%)       (53%)
  institutional
  (4) (7)
                       ------       ------         ------      ------
  Total M&G               19%          14%          (54%)       (48%)
                       ------       ------         ------      ------
  Asia
  India                   49%          24%          (36%)      (146%)
  Taiwan                  10%        (19%)             1%      (468%)
  Korea                  (6%)         (8%)            31%        576%
  Other Mutual           146%          87%          (19%)        122%
  Fund Operations
                       ------       ------         ------      ------
  Total Asian             26%           4%          (10%)       (78%)
  Mutual Fund
  Operations
                       ------       ------         ------      ------
  Hong Kong MPF           44%           2%          (31%)       (10%)
  Products (8)
  Total Asian             26%           4%          (10%)       (75%)
  Investment
  Operations
                       ------       ------         ------      ------
  Total                   21%           5%          (16%)       (60%)
  Investment
  Products
                       ------       ------         ------      ------

  US Banking Products
  Total Deposit Liabilities
  Retail Assets
  Curian Capital
  External Funds under Management



                               Schedule 2



            PRUDENTIAL PLC -- NEW BUSINESS -- NINE MONTHS 2004



                        INVESTMENT OPERATIONS



                       Other      Market and    Net           Closing
                     movements    Currency      movements      FUM
                                  movements     in FUM
  2004
  M&G
  M&G branded                --          393          560      9,379
  retail
  investment
  products
  Prudential                 --           38           25      1,350
  branded UK
  retail
  investment
  products (6)
  M&G                       22           614        1,099     15,147
  institutional
  (7)
                         ------        ------       ------     ------
  Total M&G                 22         1,045        1,684     25,876
                         ------        ------       ------     ------
  Asia
  India                  ( 19)         ( 13)       ( 196)      1,853
  Taiwan                     --        ( 43)       ( 860)      1,806
  Korea                  ( 33)            12          425      1,358
  Other Mutual               --           16          771      1,523
  Fund Operations
                         ------        ------       ------     ------
  Total Asian            ( 52)         ( 28)          140      6,540
  Mutual Fund
  Operations
                         ------        ------       ------     ------
  Hong Kong MPF              --            --          36        232
  Products (8)
                         ------        ------       ------     ------
  Total Asian            ( 52)         ( 28)          176      6,772
  Investment
  Operations
                         ------        ------       ------     ------
  Total                  ( 30)         1,017        1,860     32,648
  Investment
  Products
                         ------        ------       ------     ------

                    Other         Market and    Net           Closing
                    movements     Currency      movements      FUM
                                  movements     in FUM
  2003
  M&G
  M&G branded              (14)          679          862      8,449
  retail
  investment
  products
  Prudential                 --          117          117      1,254
  branded UK
  retail
  investment
  products (6)
  M&G                        --          942        1,930     13,490
  institutional
  (4) (7)
                         ------        ------       ------     ------
  Total M&G                (14)        1,738        2,909     23,193
                         ------        ------       ------     ------
  Asia
  India                  ( 35)           160          480      1,852
  Taiwan                     --           65          287      2,712
  Korea                  ( 20)            36           82      1,075
  Other Mutual               --           31          371        677
  Fund Operations
                         ------        ------       ------     ------
  Total Asian            ( 55)           292        1,220      6,316
  Mutual Fund
  Operations
                         ------        ------       ------     ------
  Hong Kong MPF              --           10           50        186
  Products (8)
                         ------        ------       ------     ------
  Total Asian            ( 55)           302        1,270      6,502
  Investment
  Operations
                         ------        ------       ------     ------
  Total                  ( 69)         2,040        4,179     29,695
  Investment
  Products
                         ------        ------       ------     ------

                    Other         Market and    Net           Closing
                    movements     Currency      movements      FUM
                                  movements     in FUM
  2004 Movement
  Relative to
  2003
  M&G
  M&G branded                --         (42%)        (35%)        11%
  retail
  investment
  products
  Prudential                 --         (68%)        (79%)         8%
  branded UK
  retail
  investment
  products (6)
  M&G                        --         (35%)        (43%)        12%
  institutional
  (4) (7)
                         ------        ------       ------     ------
  Total M&G                257%         (40%)        (42%)        12%
                         ------        ------       ------     ------
  Asia
  India                     46%        (108%)       (141%)         --
  Taiwan                     --        (166%)       (400%)      (33%)
  Korea                   (65%)         (67%)         418%        26%
  Other Mutual               --         (48%)         108%       125%
  Fund Operations
                         ------        ------       ------     ------
  Total Asian                5%        (110%)        (89%)         4%
  Mutual Fund
  Operations
                         ------        ------       ------     ------
  Hong Kong MPF              --            --        (28%)        25%
  Products (8)
  Total Asian                5%        (109%)        (86%)         4%
  Investment
  Operations
                         ------        ------       ------     ------
  Total                     57%         (50%)        (55%)        10%
  Investment
  Products
                         ------        ------       ------     ------

                                     US(9)



                                       2004 Q3    2003 Q3    +/- (%)
                                           YTD        YTD
                                          GBPm       GBPm
   US Banking Products
   Total Deposit Liabilities               604        666       (9%)
   Retail Assets                           677        689       (2%)
   Curian Capital
   External Funds under Management         432         73       492%




                               Schedule 3



    PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 3
                                 2003





                         INSURANCE OPERATIONS





                          Single                   Regular



                       Q3       Q3      +/-       Q3    Q3         +/-
                    2004     2003      (%)     2004    2003       (%)
                    GBPm     GBPm              GBPm     GBPm
  UK Insurance
  Operations :
  (4)
  Direct to
  Customer:
  Individual          1        1        --       2        2        --
  Pensions
  Life -- With        3        3        --       --       --       --
  Profit Bond
  Life -- Other       --       --       --       --       --       --
  Individual        159      152        5%       --       --       --
  Annuities
                   ------  ------   ------   ------   ------   ------

  Sub-Total         163      156        4%       2        2        --
  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total             163      156        4%       2        2        --
                   ------  ------   ------   ------   ------   ------

  Business to
  Business:
  Corporate          31       37     (16%)      28       27        4%
  Pensions
  Individual         68       63        8%       --       --       --
  Annuities
  Bulk Annuities     43       32       34%       --       --       --

                   ------  ------   ------   ------   ------   ------

  Total             142      132        8%      28       27        4%
                   ------  ------   ------   ------   ------   ------

  Intermediated
  Distribution :
  Individual         12        9       33%       5        6     (17%)
  Pensions
  Corporate          10       15     (33%)       2        2        --
  Pensions
  Life -- With       55      117     (53%)       --       --       --
  Profit Bond
  Life -- Other     206      102      102%       --       --       --
  Bond
  Life -- Other       --       --       --       1        3     (67%)
  Individual        309      206       50%       --       --       --
  Annuities
                   ------  ------   ------   ------   ------   ------

  Sub-Total         592      449       32%       8       11     (27%)
  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total             592      449       32%       8       11     (27%)
                   ------  ------   ------   ------   ------   ------

  Partnerships :
  Life -- With        1       10     (90%)       --       --       --
  Profit Bond
  Life -- Other     234       61      284%       1        --       --
  Individual         40       24       67%       --       --       --
  Annuities
                   ------  ------   ------   ------   ------   ------

  Total             275       95      189%       1        --       --
                   ------  ------   ------   ------   ------   ------

  Total :
  Individual         13       10       30%       7        8     (13%)
  Pensions
  Corporate          41       52     (21%)      30       29        3%
  Pensions
  Life -- With       59      130     (55%)       --       --       --
  Profit Bond
  Life -- Other     206      102      102%       --       --       --
  Bond
  Life -- Other     234       61      284%       2        3     (33%)
  Individual        576      445       29%       --       --       --
  Annuities
  Bulk Annuities     43       32       34%       --       --       --

                   ------  ------   ------   ------   ------   ------

  Sub-Total         1,172    832       41%      39       40      (3%)

  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total UK          1,172    832       41%      39       40      (3%)
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  European
  Insurance
  Operations :
  (10)
  Insurance          35       17      106%       1        --       --
  Products
                   ------  ------   ------   ------   ------   ------

  Total European     35       17      106%       1        --       --
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Total UK &        1,207    849       42%      40       40        --
  European
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  US Insurance
  Operations :
  (10)
  Fixed             275      200       38%       --       --       --
  Annuities
  Equity-Linked     135       72       88%       --       --       --
  Indexed
  Annuities
  Variable          483      561     (14%)       --       --       --
  Annuities
  Life                --       --       --       9        3      200%
                   ------  ------   ------   ------   ------   ------

  Sub-total         893      833        7%       9        3      200%
  Retail
  Guaranteed         74        6     1133%       --       --       --
  Investment
  Contracts
  GIC -- Medium      55       28       96%       --       --       --
  Term Note
                   ------  ------   ------   ------   ------   ------

  Total US          1,022    867       18%       9        3      200%
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Asian
  Insurance
  Operations:(10)

  China               1        1        --       5        3       67%
  Hong Kong          53       58      (9%)      19       21     (10%)
  India (@26%)        1        1        --       7        4       75%
  Indonesia           6        9     (33%)       6       10     (40%)
  Japan               5        2      150%       2       13     (85%)
  Korea               3        4     (25%)      13        6      117%
  Malaysia            2        3     (33%)      18       19      (5%)
  Singapore          57       45       27%      11       14     (21%)
  Taiwan             34        9      278%      38       30       27%
  Other (5)           2        2        --      10       14     (29%)
                   ------  ------   ------   ------   ------   ------

  Total Asian       164      134       22%     129      134      (4%)
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Group Total       2,393  1,849       29%     178      177        1%

                   ======  ======    =====   ======   ======    =====




                        INVESTMENT OPERATIONS





                   M&G (4) (7)    Asia Mutual Funds




                     Q3       Q3      +/-       Q3  Q3 2003   +/- (%)
                  2004     2003      (%)     2004
                  GBPm     GBPm              GBPm      GBPm
  Opening FUM    24,442   22,331      9%   6,876     5,721        20%

  Gross         1,274    1,008       26%   4,176     4,929      (15%)
  inflows
  Less           ( 567)   ( 657)     14%  (4,608)   (4,547)     (1%)
  redemptions

                ------   ------   ------   ------    ------    ------
  Net flows       707      351      101%    ( 432)     382     (213%)

  Other            63       --        --   ( 14)     ( 25)        44%
  movements
  Market and      664      511       30%     110       238      (54%)
  currency
  movements
                ------   ------   ------   ------    ------    ------
  Net           1,434      862       66%    ( 336)     595     (156%)
  movement in
  FUM
                ------   ------   ------   ------    ------    ------
  Closing FUM    25,876   23,193     12%   6,540     6,316         4%

                ------   ------   ------   ------    ------    ------





                               Schedule 3




    PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 3
                                 2003




                         INSURANCE OPERATIONS




              Total                     Annual Equivalents (3)
   Q3 2004    Q3 2003   +/- (%)          Q3 2004    Q3 2003   +/- (%)
      GBPm       GBPm                       GBPm       GBPm




  UK Insurance
  Operations :
  (4)
  Direct to
  Customer:
  Individual          3        3        --       2        2        --
  Pensions
  Life -- With        3        3        --       0        0        --
  Profit Bond
  Life -- Other       --       --       --       --       --       --
  Individual        159      152        5%      16       15        7%
  Annuities
                   ------  ------   ------   ------   ------   ------

  Sub-Total         165      158        4%      18       18        --
  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total             165      158        4%      18       18        --
                   ------  ------   ------   ------   ------   ------

  Business to
  Business:
  Corporate          59       64      (8%)      31       31        --
  Pensions
  Individual         68       63        8%       7        6       17%
  Annuities
  Bulk Annuities     43       32       34%       4        3       33%

                   ------  ------   ------   ------   ------   ------

  Total             170      159        7%      42       40        5%
                   ------  ------   ------   ------   ------   ------

  Intermediated
  Distribution :
  Individual         17       15       13%       6        7     (14%)
  Pensions
  Corporate          12       17     (29%)       3        3        --
  Pensions
  Life -- With       55      117     (53%)       6       12     (50%)
  Profit Bond
  Life -- Other     206      102      102%      21       10      110%
  Bond
  Life -- Other       1        3     (67%)       1        3     (67%)
  Individual        309      206       50%      31       21       48%
  Annuities
                   ------  ------   ------   ------   ------   ------

  Sub-Total         600      459       31%      67       55       22%
  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total             600      459       31%      67       55       22%
                   ------  ------   ------   ------   ------   ------

  Partnerships :
  Life -- With        1       10     (90%)       0        1    (100%)
  Profit Bond
  Life -- Other     235       61      285%      24        6      300%
  Individual         40       24       67%       4        2      100%
  Annuities
                   ------  ------   ------   ------   ------   ------

  Total             276       95      191%      29        9      222%
                   ------  ------   ------   ------   ------   ------

  Total :
  Individual         20       18       11%       8        9     (11%)
  Pensions
  Corporate          71       81     (12%)      34       34        --
  Pensions
  Life -- With       59      130     (55%)       6       13     (54%)
  Profit Bond
  Life -- Other     206      102      102%      21       10      110%
  Bond
  Life -- Other     236       64      269%      25        9      178%
  Individual        576      445       29%      58       45       29%
  Annuities
  Bulk Annuities     43       32       34%       4        3       33%

                   ------  ------   ------   ------   ------   ------

  Sub-Total         1,211    872       39%     156      123       27%

  DWP Rebates         --       --       --       --       --       --
                   ------  ------   ------   ------   ------   ------

  Total UK          1,211    872       39%     156      123       27%
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  European
  Insurance
  Operations :
  (10)
  Insurance          36       17      112%       5        2      150%
  Products
                   ------  ------   ------   ------   ------   ------

  Total European     36       17      112%       5        2      150%
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Total UK &        1,247    889       40%     161      125       29%
  European
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  US Insurance
  Operations :
  (10)
  Fixed             275      200       38%      28       20       40%
  Annuities
  Equity-Linked     135       72       88%      14        7      100%
  Indexed
  Annuities
  Variable          483      561     (14%)      48       56     (14%)
  Annuities
  Life                9        3      200%       9        3      200%
                   ------  ------   ------   ------   ------   ------

  Sub-total         902      836        8%      98       86       14%
  Retail
  Guaranteed         74        6     1133%       7        1      600%
  Investment
  Contracts
  GIC -- Medium      55       28       96%       6        3      100%
  Term Note
                   ------  ------   ------   ------   ------   ------

  Total US          1,031    870       19%     111       90       23%
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Asian
  Insurance
  Operations:(10)

  China               6        4       50%       5        3       67%
  Hong Kong          72       79      (9%)      24       27     (11%)
  India (@26%)        8        5       60%       7        4       75%
  Indonesia          12       19     (37%)       7       11     (36%)
  Japan               7       15     (53%)       3       13     (77%)
  Korea              16       10       60%      13        6      117%
  Malaysia           20       22      (9%)      18        20    (10%)
  Singapore          68       59       15%      17       18      (6%)
  Taiwan             72       39       85%      41       31       32%
  Other (5)          12       16     (25%)      10       15     (33%)
                   ------  ------   ------   ------   ------   ------

  Total Asian       293      268        9%     145      148      (2%)
  Insurance
  Operations
                   ------  ------   ------   ------   ------   ------

  Group Total       2,571  2,026       27%     417      363       15%

                   ======  ======    =====   ======   ======    =====




                        INVESTMENT OPERATIONS





        Hong Kong MPF Products (8)    Total Investment Products




                     Q3       Q3      +/-       Q3  Q3 2003   +/- (%)
                  2004     2003      (%)     2004
                  GBPm     GBPm              GBPm      GBPm
  Opening FUM     216      165       31%    31,534  28,217        12%

  Gross            16       17      (6%)   5,466     5,954       (8%)
  inflows
  Less           ( 5)     ( 4)     (25%) ( 5,179)  ( 5,208)      1%
  redemptions

                ------   ------   ------   ------    ------    ------
  Net flows        11       13     (15%)     287       746      (62%)
  Other             --       --       --      49     ( 25)       296%
  movements
  Market and        5        8     (38%)     779       757         3%
  currency
  movements
                ------   ------   ------   ------    ------    ------
  Net              16       21     (24%)   1,114     1,478      (25%)
  movement in
  FUM
                ------   ------   ------   ------    ------    ------
  Closing FUM     232      186       25%    32,648  29,695        10%

                ------   ------   ------   ------    ------    ------





                               Schedule 4




    PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 2
                                 2004




                         INSURANCE OPERATIONS





                          Single                  Regular




                     Q3       Q2      +/-       Q3       Q2  +/- (%)
                   2004     2004      (%)     2004     2004
                   GBPm     GBPm              GBPm     GBPm
  UK Insurance
  Operations :
  (4)
  Direct to
  Customer:
  Individual         1        3     (67%)       2        2         --
  Pensions
  Life -- With       3        3        --       --       --        --
  Profit Bond
  Individual       159      155        3%       --       --        --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total        163      161        1%       2         2        --
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total            163      161        1%       2        2         --
                 ------   ------   ------   ------   ------    ------
  Business to
  Business:
  Corporate         31       37     (16%)      28       45      (38%)
  Pensions
  Individual        68       46       48%       --       --        --
  Annuities
  Bulk              43       70     (39%)       --       --        --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Total            142      153      (7%)      28       45      (38%)
                 ------   ------   ------   ------   ------    ------
  Intermediated
  Distribution
  :
  Individual        12       17     (29%)       5        5         --
  Pensions
  Corporate         10       52     (81%)       2        3      (33%)
  Pensions
  Life -- With      55       79     (30%)       --       --        --
  Profit Bond
  Life -- Other     206      172      20%       --       --        --
  Bond
  Life -- Other      --       --       --       1        1         --

  Individual       309      318      (3%)       --       --        --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total        592      638      (7%)       8        9      (11%)
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total            592      638      (7%)       8        9      (11%)
                 ------   ------   ------   ------   ------    ------
  Partnerships
  :
  Life - With        1        --       --       --       --        --
  Profit Bond
  Life -- Other    234      175       34%       1        1         --

  Individual        40       25       60%       --       --        --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Total            275      200       38%       1        1         --
                 ------   ------   ------   ------   ------    ------
  Total :
  Individual        13       20     (35%)       7        7         --
  Pensions
  Corporate         41       89     (54%)      30       48      (38%)
  Pensions
  Life -- With      59       82     (28%)       --       --        --
  Profit Bond
  Life -- Other    206      172       20%       --       --        --
  Bond
  Life -- Other    234      175       34%       2        2         --

  Individual       576      544        6%       --       --        --
  Annuities
  Bulk              43       70     (39%)       --       --        --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total      1,172    1,152        2%      39       57      (32%)
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total UK       1,172    1,152        2%      39       57      (32%)
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  European
  Insurance
  Operations :
  (10)
  Insurance         35       18       94%       1        --        --
  Products
                 ------   ------   ------   ------   ------    ------
  Total             35       18       94%       1        --        --
  European
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Total UK &     1,207    1,170        3%      40       57      (30%)
  European
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  US Insurance
  Operations :
  (10)
  Fixed            275      241       14%       --       --        --
  Annuities
  Equity-Linked    135       87       55%       --       --        --
  Indexed
  Annuities
  Variable         483      533      (9%)       --       --        --
  Annuities
  Life               --       --       --       9        7        29%
                 ------   ------   ------   ------   ------    ------
  Sub-total        893      861        4%       9        7        29%
  Retail
  Guaranteed        74       13      469%       --       --        --
  Investment
  Contracts
  GIC -- Medium     55      277     (80%)       --       --        --
  Term Note
                 ------   ------   ------   ------   ------    ------
  Total US       1,022    1,151     (11%)       9        7        29%
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Asian
  Insurance
  Operations :
  (10)
  China              1        2     (50%)       5        3        67%
  Hong Kong         53       56      (5%)      19       19         --
  India (@26%)       1        1        --       7        6        17%
  Indonesia          6        7     (14%)       6        5        20%
  Japan              5        4       25%       2        1       100%
  Korea              3        9     (67%)      13       14       (7%)
  Malaysia           2        2        --      18       13        38%
  Singapore         57       46       24%      11       10        10%
  Taiwan            34       20       70%      38       27        41%
  Other (5)          2        2        --      10        9        11%
                 ------   ------   ------   ------   ------    ------
  Total Asian      164      149       10%     129      107        21%
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Group Total    2,393    2,470      (3%)     178      171         4%
                 ======   ======    =====   ======   ======     =====






                        INVESTMENT OPERATIONS





                     M&G (4) (7)             Asia Mutual Funds




                    Q3      Q2        +/-       Q3      Q2    +/- (%)
                  2004     2004      (%)     2004      2004
                  GBPm     GBPm              GBPm      GBPm
  Opening FUM    24,442   23,658      3%   6,876     6,741         2%

  Gross         1,274    1,455     (12%)   4,176     4,652      (10%)
  inflows
  Less           ( 567)   ( 659)     14%  (4,608)  ( 4,293)     (7%)
  redemptions

                ------   ------   ------   ------    ------    ------
  Net flows       707      796     (11%)    ( 432)     359     (220%)

  Other            63     ( 139)    145%   ( 14)     ( 13)       (8%)
  movements
  Market and      664      127      423%     110    ( 211)       152%
  currency
  movements
                ------   ------   ------   ------    ------    ------
  Net           1,434      784       83%    ( 336)     135     (349%)
  movement in
  FUM
                ------   ------   ------   ------    ------    ------
  Closing FUM    25,876   24,442      6%   6,540     6,876       (5%)

                ------   ------   ------   ------    ------    ------




                               Schedule 4




    PRUDENTIAL PLC -- NEW BUSINESS -- QUARTER 3 2004 VERSUS QUARTER 2
                                 2004




                         INSURANCE OPERATIONS




                         Total               Annual Equivalents (3)




                     Q3       Q2  +/-(%)        Q3       Q2  +/- (%)
                   2004     2004              2004     2004
                   GBPm     GBPm              GBPm     GBPm
  UK Insurance
  Operations :
  (4)
  Direct to
  Customer:
  Individual         3        5     (40%)       2        2         --
  Pensions
  Life -- With       3        3        --       --       --       --
  Profit Bond
  Individual       159      155        3%      16       16         --
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total        165      163        1%      18       18         --
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total            165      163        1%      18       18         --
                 ------   ------   ------   ------   ------    ------
  Business to
  Business:
  Corporate         59       82     (28%)      31       49      (37%)
  Pensions
  Individual        68       46       48%       7        5        40%
  Annuities
  Bulk              43       70     (39%)       4        7      (43%)
  Annuities
                 ------   ------   ------   ------   ------    ------
  Total            170      198     (14%)      42       60      (30%)
                 ------   ------   ------   ------   ------    ------
  Intermediated
  Distribution
  :
  Individual        17       22     (23%)       6        7      (14%)
  Pensions
  Corporate         12       55     (78%)       3        8      (63%)
  Pensions
  Life -- With      55       79     (30%)       6        8      (25%)
  Profit Bond
  Life -- Other    206      172       20%      21       17        24%
  Bond
  Life -- Other      1        1        --       1        1         --

  Individual       309      318      (3%)      31       32       (3%)
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total        600      647      (7%)      67       73       (8%)
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total            600      647      (7%)      67       73       (8%)
                 ------   ------   ------   ------   ------    ------
  Partnerships
  :
  Life -- With       1        --       --       --       --        --
  Profit Bond
  Life -- Other    235      176       34%      24       19        26%

  Individual        40       25       60%       4        3        33%
  Annuities
                 ------   ------   ------   ------   ------    ------
  Total            276      201       37%      29       21        38%
                 ------   ------   ------   ------   ------    ------
  Total :
  Individual        20       27     (26%)       8        9      (11%)
  Pensions
  Corporate         71      137     (48%)      34       57      (40%)
  Pensions
  Life -- With      59       82     (28%)       6        8      (25%)
  Profit Bond
  Life -- Other    206      172       20%      21       17        24%
  Bond
  Life -- Other    236      177       33%      25       20        25%

  Individual       576      544        6%      58       54         7%
  Annuities
  Bulk              43       70     (39%)       4        7      (43%)
  Annuities
                 ------   ------   ------   ------   ------    ------
  Sub-Total      1,211    1,209        --     156      172       (9%)
  DWP Rebates        --       --       --       --       --        --
                 ------   ------   ------   ------   ------    ------
  Total UK       1,211    1,209        --     156      172       (9%)
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  European
  Insurance
  Operations :
  (10)
  Insurance         36       18      100%       5        2       150%
  Products
                 ------   ------   ------   ------   ------    ------
  Total             36       18      100%       5        2       150%
  European
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Total UK &     1,247    1,227        2%     161      174       (7%)
  European
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  US Insurance
  Operations :
  (10)
  Fixed            275      241       14%      28       24        17%
  Annuities
  Equity-Linked    135       87       55%      14        9        56%
  Indexed
  Annuities
  Variable         483      533      (9%)      48       53       (9%)
  Annuities
  Life               9        7       29%       9        7        29%
                 ------   ------   ------   ------   ------    ------
  Sub-total        902      868        4%      98       93         5%
  Retail
  Guaranteed        74       13      469%       7        1       600%
  Investment
  Contracts
  GIC -- Medium     55      277     (80%)       6       28      (79%)
  Term Note
                 ------   ------   ------   ------   ------    ------
  Total US       1,031    1,158     (11%)     111      122       (9%)
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Asian
  Insurance
  Operations :
  (10)
  China              6        5       20%       5        4        25%
  Hong Kong         72       75      (4%)      24       25       (4%)
  India (@26%)       8        7       14%       7        6        17%
  Indonesia         12       12        --       7        6        17%
  Japan              7        5       40%       3         2       50%
  Korea             16       23     (30%)      13       15      (13%)
  Malaysia          20       15       33%      18       13        38%
  Singapore         68       56       21%      17       15        13%
  Taiwan            72       47       53%      41       29        41%
  Other (5)         12       11        9%      10        9        11%
                 ------   ------   ------   ------   ------    ------
  Total Asian      293      256       14%     145      122        19%
  Insurance
  Operations
                 ------   ------   ------   ------   ------    ------
  Group Total    2,571    2,641      (3%)     417      418         --
                 ======   ======     ====    =====   ======     =====





                        INVESTMENT OPERATIONS




        Hong Kong MPF Products (8)    Total Investment Products



                    Q3       Q2      +/-      Q3        Q2   +/- (%)
                  2004     2004      (%)     2004      2004
                  GBPm     GBPm              GBPm      GBPm
  Opening FUM     216      206        5%    31,534  30,605         3%

  Gross            16       24     (33%)   5,466     6,131      (11%)
  inflows
  Less           ( 5)    ( 12)       58%  (5,179)   (4,964)     (4%)
  redemptions

                ------   ------   ------   ------    ------    ------
  Net flows        11       12      (8%)     287     1,167      (75%)
  Other             --       --       --      49    ( 152)       132%
  movements
  Market and        5     ( 2)      350%     779     ( 86)      1006%
  currency
  movements
                ------   ------   ------   ------    ------    ------
  Net              16       10       60%   1,114       929        20%
  movement in
  FUM
                ------   ------   ------   ------    ------    ------
  Closing FUM     232      216        7%    32,648  31,534         4%

                ------   ------   ------   ------    ------    ------




                               Schedule 5




                         INSURANCE OPERATIONS




                             Q3 2004     (%)    Q3 2003        (%)
                                GBPm              GBPm




   SALES
   UK Insurance Operations:
   ANNUITIES
   Bulks:
   Policyholder                    1         2%        3        10%
   Shareholder                    42        98%       29        90%
                               ------    ------    ------    ------
   Total                          43       100%       32       100%
                               ------    ------    ------    ------
   Individual:
   Policyholder                    2         0%      212        48%
   Shareholder                   574       100%      233        52%
                               ------    ------    ------    ------
   Total                         576       100%      445       100%
                               ------    ------    ------    ------
   Total Annuities:
   Policyholder                    3         0%      215        45%
   Shareholder                   616       100%      262        55%
                               ------    ------    ------    ------
   Total                         619       100%      477       100%
                               ======    ======    ======    ======



       PRUDENTIAL PLC -- NEW BUSINESS -- YTD 2004 VERSUS YTD 2003




                      YTD Q3 2004       (%)   YTD Q3 2003       (%)
                             GBPm                    GBPm
  SALES
  UK Insurance
  Operations:
  ANNUITIES
  Bulks:
  Policyholder                 7         3%            7         4%
  Shareholder                246        97%          182        96%
                           ------    ------        ------    ------
  Total                      253       100%          189       100%
                           ------    ------        ------    ------
  Individual:
  Policyholder                431       27%          728        56%
  Shareholder              1,137        73%          583        44%
                           ------    ------        ------    ------
  Total                    1,568       100%        1,311       100%
                           ------    ------        ------    ------
  Total Annuities:
  Policyholder                438       24%          735        49%
  Shareholder              1,383        76%          765        51%
                           ------    ------        ------    ------
  Total                    1,821       100%        1,500       100%
                           ======    ======        ======    ======

Notes to Schedules :

(1) Insurance and investment new business for overseas operations has been calculated using constant exchange rates. The applicable rate for Jackson National Life is 1.82. A comparison between the results at actual exchange rates and at constant exchange rates is given in the press release.

(1b)Insurance and investment new business for overseas operations has been calculated using average exchange rates. The applicable rate for Jackson National Life is 1.82 (2003 -- 1.61).

(2) Represents cash received from sale of investment products.

(3) Annual Equivalents, calculated as regular new business contributions + 10% single new business contributions, are subject to roundings.

(4) Certain investment mandates previously reported as UK Corporate Pensions in 2003 are now reported as M&G institutional funds under management. The impact of this is to reduce UK Corporate pensions APE sales by GBP32 million for the full year 2003 (GBP26 million for the first nine months of 2003).

(5) In Asia, 'Other' insurance operations include Thailand, The Philippines and Vietnam.

(6) Scottish Amicable and Prudential branded Investment Products.

(7) Balance includes segregated pensions fund business, private finance flows and M&G South Africa institutional business. M&G institutional funds under management for Q2 2003 have been restated to include funds managed on behalf of the Prudential Staff Pension Scheme previously categorised as internal funds. Other movements reflect the net flows arising from the cash portion of a tactical asset allocation fund managed in South Africa.

(8) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest in the Hong Kong MPF operation.

(9) Balance sheet figures have been calculated at closing exchange rates.

(10) Sales are converted using the year to date average exchange rate applicable at the time. The sterling results for individual quarters represent the difference between the year to date reported sterling results at successive quarters and will include foreign exchange movements from earlier periods.

This information is provided by RNS. The company news service from the London Stock Exchange



            

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