Business
Prudential Plc - IFRS17 Briefing
Prudential Plc - IFRS17 Briefing.
About this update from Prudential Plc
[{"type":"text","content":"\n\nNEWS RELEASE\n \n20 July 2023\n \n \n \nIFRS17 Briefing\nAudited 2022 IFRS17 results in line with previous guidance\n \nPrudential plc (\"Prudential\") is today holding an IFRS17 briefing for investors and analysts. A pre-recorded presentation and supporting materials are available on the Group's website. The Group's Chief Financial Officer, Ben Bulmer, will lead a Q&A session today at 4pm (Hong Kong Time) / 9am (UK time).\n \nThe presentation explains how IFRS17 is applied to Prudential and reviews the Group's 2022 financial performance on an IFRS17 basis. It also introduces the IFRS17 accounting framework, which is effective from the 1st of January this year and will be the accounting basis for our first half 2023 results. The 2022 IFRS17 results, which have been audited, show that the Group's shareholders' equity on 1 January 2022, the date of transition, increased by $1.8 billion to $18.9 billion and 2022 adjusted operating profit fell by $653 million to $2,722 million. This is consistent with the preliminary guidance provided with the Group's 2022 results on 15 March 2023. At 31 December 2022, the Contractual Service Margin ('CSM') balance, part of insurance contract liabilities under IFRS17, was $20.0 billion[1], representing a significant stock of future profit. New business written in 2022 added $2.1 billion to the CSM.\n \nWhile IFRS17 is an important accounting change, resulting in changes to the timing of profit recognition compared with the previous IFRS4 approach, it does not change the total level of profit generated. As a result, it does not change the economics of our business. Our embedded value framework, which is linked to the Group's regulatory position and consequently future capital generation, is in our view more representative of shareholder value.\n \nUnder IFRS17, the release of the CSM is the main driver of adjusted operating profit and the new business added to the CSM will be an important factor in building CSM. Looking forward, we expect the compounding effect of the new business added to the CSM to support growth in IFRS17 adjusted operating profit, which remains a key performance measure for the Group.\n \nAs previously announced, we expect to announce the half year 2023 results on 30 August 2023.\n \n \nContact:\n \n\n\n\n\nMedia...