Prudential plc · LSE:PRU
Prudential — FY2012 Earnings Presentation
131 slides from Prudential's earnings presentation, Mar 13, 2013
Slide 1: Prudential plc 2012 Full Year Results
Prudential plc 2012 Full Year Results Delivering ‘Growth and Cash’ 13 March 2013 2012 FULL YEAR RESULTS
Slide 2: Forward-looking statements
This document may contain ‘forward-looking statements’ with respect to certain of Prudential's plans and its goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements that are not historical facts, including statements about Prudenti
Slide 3: Agenda
Prudential plc 2012 full year results Agenda Business Review Tidjane Thiam Financial Review Nic Nicandrou Outlook Tidjane Thiam 3 2012 FULL YEAR RESULTS
Slide 4: 2012 financial headlines
2012 financial headlines Strong performance on all key metrics £m 2012 2011 Change (%) New business profit 2,452 2,151 +14% Growth IFRS operating profit1 2,533 2,027 +25% EEV operating profit 4,321 3,978 +9% Free surplus generation 2,082 1,983 +5% Cash Net remittance 1,200 1,105 +9% Dividend per sha
Slide 5: 2013 Growth and Cash objectives
2013 Growth and Cash objectives On track Objective1 % £m 2009 2012 Progress2 2013 IFRS operating profit 465 988 930 112% 1 Asia New business profit1 713 1,266 1,426 78% 2 Net Remittance 40 341 300 114% 3 Jackson Net Remittance 39 249 2603 96% 4 UK Net Remittance 4344 313 350 89% 5 Net Remittance Gro
Slide 6: Strategy
Strategy We have a clear strategy underpinned by clear operating principles Strategy Operating Principles Balanced Metrics & Disclosures Focus on Customers and Distribution Proactive Disciplined risk capital management allocation 6 2012 FULL YEAR RESULTS
Slide 7: Customers and Distribution
Customers and Distribution Asia Jackson UK 13 million 4 million 7 million customers customers customers • Over 400,000 Agents • Largest field force in • Factory gate pricing • Over 15,250 Bank the market • Prudential Financial branches Planning 7 2012 FULL YEAR RESULTS
Slide 8: Transparency & disclosures
Transparency & disclosures Measuring the right things Sources of Earnings New business strain Free Surplus HY2008 results, 31 July 2008 HY2009 results, 13 August 2009 FY2008 results, 19 March 2009 8 2012 FULL YEAR RESULTS
Slide 9: Focusing on higher earnings quality
Focusing on higher earnings quality Sources of earnings Sources of IFRS operating income1, £m CAGR 3,699 +18% 6% 3,202 8% 2,877 6% 8% 10% 29% +19% 2,217 12% 1,922 11% 34% Expected return 11% 14% 35% With-profits 22% 29% 34% 27% Spread income 57% +29% 28% 24% 50% 21% 45% Fee income 21% 41% 28% 39% 23
Slide 10: Disciplined capital allocation
Disciplined capital allocation New business strain1,2, £m New business profit2, £m 2,452 +103% 2,151 313 2,028 -22% 260 794 365 1,619 873 660 643 618 230 815 UK 293 103 65 553 45 1,205 761 54 UK 273 664 300 281 326 202 US 289 US 293 1,266 1,076 902 278 297 292 Asia 639 725 Asia 212 231 2008 2009 201
Slide 11: Delivering cash
Delivering cash Underlying free surplus generated, £m Business unit net remittances, £m +5% 2,082 1,983 +9% 1,200 1,714 1,105 M&G 297 incl 1,414 935 PruCap 688 313 UK 752 515 249 US 341 Asia 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 11 2012 FULL YEAR RESULTS
Slide 12: Robust Balance Sheet
Robust Balance Sheet • Source of competitive advantage in our industry • Proactive capital management ‒ Exit from Taiwan agency operations (2009) ‒ £2.1bn credit reserves in UK annuity shareholder business ‒ UK inherited estate at £7.0bn (£5.4bn in 2008) ‒ JNL RBC above 400% since 2008 crisis • IGD
Slide 13: Strategy
Strategy We have a clear strategy underpinned by clear operating principles Strategy Operating Principles Balanced Metrics & Disclosures Focus on Customers and Distribution Proactive Disciplined risk capital management allocation 13 2012 FULL YEAR RESULTS
Slide 14: Asia: Powerful franchise
Asia Powerful franchise Hong Kong Malaysia 0.8 million Singapore 1.7 million 0.7 million Vietnam • 13 million life customers Indonesia: 1.8 million 1.2 million • 2.1 million new customers since 2008 • Low penetration Japan India 0.1 million 5 million • Targeted programs driving upsell/cross sell Phi
Slide 15: Asia distribution: Agency
Asia distribution Agency Agency performance in Sweet spot markets1 Index 100 = NBP 2011 Indonesia • Expansion outside Jakarta 4 • ‘Fast Start Training’ for new hires 15 Hong Kong • Successful “PRUmyhealth” campaign • MDRT2 agents up 20% 119 Singapore 100 • “Yes You Can” initiative • Largest recruite
Slide 16: Asia distribution: Wealth and financial assets ownership
Asia distribution Wealth and financial assets ownership Breakdown of personal financial assets Life 12% 24% Non-Life 9% 39% Asset Mgt 9% 18% 20% 24% Bank 70% Deposits 21% 38% 16% Per capita Up to $2000 to $15000+ income level $2000 $15000 1 Source: Oliver Wyman analysis; Prudential analysis 16 2012
Slide 17: Asia distribution: Bancassurance
Asia distribution Bancassurance Bancassurance APE growth1, £m 634 +29% 491 204 +5% Rest of Asia 195 430 +45% Sweet spot markets2 296 2011 2012 1 Excludes DM/TM, prepared on reported exchange rate basis. 2 Includes Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines and Hong Kong. 17 2012
Slide 18: Asia: Quality growth
Asia Quality growth Regular premium as % of APE 90% 94% 93% 91% 92% Annualised lapse rates, % 14.0% 2008 2009 2010 2011 2012 12.0% Health and Protection APE, £m H&P as 10.0% 22% 27% 27% 30% 32% % of APE 600 501 410 8.0% 321 01/09 06/09 11/09 04/10 09/10 02/11 07/11 12/11 05/12 10/12 262 2008 2009 20
Slide 19: Asia: Diversified growth
Asia Diversified growth Value of in-force by country, £m 2007-2012 CAGR 7,518 CAGR +22% 6,583 2,545 +34% 5,610 2,093 4,395 1,825 3,715 1,448 2,770 698 Others 585 4,973 +18% 4,490 3,785 3,017 2,947 Historic 31 2,185 2007 2008 2009 2010 2011 2012 1 Historic 3 includes Hong Kong, Malaysia and Singapore
Slide 20: Asia: Building the future
Asia Building the future • Population: 64 million • Thanachart partnership – 5th largest bank • GDP: $377bn; GDP/capita: $5,850 • Access to over 820 branches • Median age: 34 years • 2012 NBP up 100% Thailand • Bancassurance premium as % of first year premium: 54% • Population: 98 million • Largest
Slide 21: Asia: Growing across our key metrics
Asia Growing across our key metrics Asia New business profit1, £m NBP 1,266 1,076 3.7x 902 IFRS 725 639 541 449 345 Cash 2005 2006 2007 2008 2009 2010 2011 2012 1 Excludes Taiwan agency and Japan. 21 2012 FULL YEAR RESULTS
Slide 22: Asia: Growing across our key metrics
Asia Growing across our key metrics Asia IFRS operating profit1, £m NBP 988 5.3x 784 IFRS 604 465 283 187 190 197 Cash 2005 2006 2007 2008 2009 2010 2011 20122 1 Life and Eastspring Investments. Net of development costs. 2005 as reported. 2006 onwards, excludes Taiwan agency 2 2012 operating profit
Slide 23: Asia: Growing across our key metrics
Asia Growing across our key metrics Asia cash remittances, £m NBP 12.2x 341 233 206 130 One-offs1 IFRS 37 40 28 5 Cash (96) 2005 2006 2007 2008 2009 2010 2011 2012 2 1 One-off from Malaysia representing the remittance of distributable earnings accumulated over recent years 2 Remittances from Asia in
Slide 24: Jackson: Proactive management across cycles
Jackson Proactive management across cycles VA volumes by quarter, sales $m 2007-08 Features war 2012 sales 5,656 5,258 412 218 4,383 4,427 715 2,368 2,370 2,324 5,040 5,244 2,052 1,780 1,769 4,383 1,505 1,412 3,712 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 12 Q2 12 Q3 12 Q4 12 Elite Access
Slide 25: Jackson: Disciplined growth
Jackson Disciplined growth Separate Account Value by S&P 500 Level at Total annuity net flows, US$bn Policy Issue “In the Money” $86.7bn as of from issue December 31, 2012 3.2x 13.9 10% 6% 4% 11.8 10.9 6% 12% 7.9 25% 4.3 18% 2008 2009 2010 2011 2012 19% (≤900) (900-1000) (1000-1100) (1100-1200) (120
Slide 26: Jackson: Delivering cash through disciplined growth
Jackson Delivering cash through disciplined growth Net remittances, £m RBC ratio, % 1.7x 483% 322 438% 429% 423% 249 417% 400% 144 80 39 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 26 2012 FULL YEAR RESULTS
Slide 27: UK: Delivering value to our customers
UK Delivering value to our customers 15-year gross cumulative return to end 2012, %1 Pru With Profits 184% Company A 142% Company B 129% Company C 124% FTSE All Share 107% ABI UK - Cautious - up to 60% equity Pension Fund 86% ABI UK - Cautious - up to 60% equity Managed Life Fund 66% 1 Source: Prude
Slide 28: UK: Strong earnings and cash generation
UK Strong earnings and cash generation Selective participation Robust capital Retail New business profit, £m Inherited estate, £bn 6.8 7.0 2009 (103) 223 6.4 6.1 2010 (52) 257 2011 (45) 231 2012 (44) 274 2009 2010 2011 2012 New business strain New business profit Cash delivery to Group Net cash remi
Slide 29: Asset Management: Investment performance driven model
Asset Management Investment performance driven model UK retail FUM1, at end 2012, £bn IFRS operating profit3, £m 40.8 41.2 23.1 320 21.4 22.2 301 20.7 16.3 14.5 14.6 14.9 246 228 203 177 M&G net sales market share vs. cross border groups in Europe2 , 2012 16.3% 11.2% 2007 2008 2009 2010 2011 2012 7.
Slide 30: Group performance: New business profit
Group performance Track record of growth across our key metrics New business profit1, £m NBP 2,452 CAGR +17% 2,151 2,028 1,619 IFRS 1,205 1,103 975 799 Cash 2005 2006 2007 2008 2009 2010 2011 2012 1 Excludes Japan and Taiwan agency. 30 2012 FULL YEAR RESULTS
Slide 31: Group performance: IFRS operating profit
Group performance Track record of growth across our key metrics IFRS operating profit1, £m NBP 2,533 CAGR +16% 2,027 1,826 IFRS 1,377 1,269 1,152 1,068 913 Cash 2005 2006 2007 2008 2009 2010 2011 2012 1 2008 – 2011 Comparatives adjusted for accounting policy improvements for deferred acquisition cos
Slide 32: Group performance: Net cash remittances
Group performance Track record of growth across our key metrics Net cash remittances, £m NBP CAGR +43% 1,200 1,105 935 IFRS 688 515 417 277 99 Cash 2005 2006 2007 2008 2009 2010 2011 2012 32 2012 FULL YEAR RESULTS
Slide 33: Growth: On track to 'Double Asia'
2013 Growth and Cash objectives Growth – On track to ‘Double Asia’ CAGR +19% 988 930 Doubling Asia Life and 784 +26% Asset Management IFRS 604 operating profit1,2, £m 1 465 2009 2010 2011 2012 2013 Objective CAGR +19% 1,426 Doubling Asia value of 1,266 1,076 +18% new business1, £m 901 713 2 2009 201
Slide 34: Cash: On track to deliver 2013 objectives
2013 Growth and Cash objectives Cash – On track to deliver 2013 objectives 2013 Cash objectives, £m 2009 2013 2012 £m Objective1 Asia Net Remittance 40 300 341 3 Jackson Net Remittance 39 2602 249 4 Cash UK Net Remittance 4343 350 313 5 Group Net Remittance (cumulative) - 3,800 3,240 6 1 The 2013 ob
Slide 35: Delivering cash: Strong free surplus generation
Delivering cash Strong free surplus generation Free surplus and dividend, £m Free surplus cover 1.6x 2.5x 2.0x 3.2x 3.3x 2.6x 2.7x 618 553 645 675 2,700 2,536 806 2,359 500 2,089 2,082 1,983 524 1,714 1,558 296 289 1,367 1,414 1,099 226 306 867 73 256 752 175 575 642 655 449 308 286 344 243 2006 200
Slide 36: Dividend: Rebased upwards
Dividend Rebased upwards Dividend, pence per share 29.19 +15.9% 25.19 23.85 +5.6% +20.2% +5.0% 19.85 +5.0% 18.90 18.00 17.14 +5.0% 20.79 Total dividend 16.32 +5.0% 17.24 17.24 12.91 13.56 11.72 12.30 Final dividend 11.02 7.95 8.40 5.30 5.42 5.70 5.99 6.29 6.61 Interim dividend 2005 2006 2007 2008 20
Slide 37: Agenda
Prudential plc 2012 full year results Agenda Business Review Tidjane Thiam Financial Review Nic Nicandrou Outlook Tidjane Thiam 37 2012 FULL YEAR RESULTS
Slide 38: Delivering 'Growth and Cash'
Delivering ‘Growth and Cash’ Overview Growth & Profitability Cash & Capital 2012 builds on recent strong performance 2012 £m 2012 2011 vs. 2011 New business profit 2,452 2,151 +14% IFRS operating profit1 2,533 2,027 +25% Growth IFRS operating EPS (pence) 76.8 62.8 +22% EEV per share (pence) 878 771
Slide 39: Growth in value and volume
Growth in value and volume Overview Growth & Profitability Cash & Capital Balancing value creation and capital consumption NBP, £m NBP margin, % 2,452 Group Life +14% 58% 58% IRR: >20% 2,151 1,266 1,076 +18% Payback: 3 years 65% 67% Asia Life IRR: >20% 815 +7% 873 Payback: 2 years 64% 60% US Life IR
Slide 40: New business profit: Strong underlying progress
New business profit Overview Growth & Profitability Cash & Capital Strong underlying progress Asia New business profit, £m • Positive product mix reflecting management actions (value growth in SE Asia markets) 2011 2,151 • Negative impact of fall in interest rates, particularly in Hong Kong Economic
Slide 41: Profitability – IFRS: IFRS profits up 25%
Profitability – IFRS Overview Growth & Profitability Cash & Capital IFRS profits up 25% IFRS operating profit1, £m +27% 2,580 2,038 Life Group 2011 2012 +25% 2,533 2,027 2011 2012 1 2011 adjusted for the retrospective application of the new DAC policy. 41 2012 FULL YEAR RESULTS
Slide 42: Delivering growth: Strong growth in Life
Delivering growth Overview Growth & Profitability Cash & Capital Strong growth in Life Net flows1, £m 10,450 • Net flows equivalent to 8% of opening 9,006 +16% reserves (2011: 7%) • £36.3bn over the last four years 2011 2012 Group life Shareholder-backed business • Policyholder liabilities increased
Slide 43: Diversified Life earnings – Asia up 30%
Profitability – IFRS Overview Growth & Profitability Cash & Capital Diversified Life earnings – Asia up 30% Life operating profit by region, £m Asia operating profit, £m 2,580 +27% 913 703 51 China Life 2,038 +3% UK 683 964 862 +22% 704 +48% US 651 2011 2012 +30% 913 Asia1 704 2011 2012 1 Net of Asi
Slide 44: Diversified Life earnings
Profitability – IFRS Overview Growth & Profitability Cash & Capital Diversified Life earnings Life operating profit by region, £m 2,580 US operating profit, £m +27% 964 Operating profits 703 2,038 651 67 REALIC +3% UK 683 ‘Gross profits’ 1,427 1,313 +9% 964 +48% 56 Decelerated DAC US 651 Accelerated
Slide 45: Diversified and resilient Life earnings
Profitability – IFRS Overview Growth & Profitability Cash & Capital Diversified and resilient Life earnings IFRS operating income1, £m Growth % 2012 vs. 2011 3,699 +16% +3% 6% 3,202 8% -6% 6% 10% 29% +1% 34% 29% +24% 27% 28% +40% 23% 2011 2012 Insurance margin Fee income Spread income With-profits E
Slide 46: Source of earnings: Life insurance - Asia
IFRS operating profit – source of earnings Overview Growth & Profitability Cash & Capital Life insurance - Asia Total operating profit1 2012 2011 +/- £m except reserves £bn 913 704 30% = Total Life income Total Life expenses DAC adjustments - - 2,427 1,959 24% (1,486) (1,269) (17%) (28) 14 (300%) Sp
Slide 47: Source of earnings: Life insurance - US
IFRS operating profit – source of earnings Overview Growth & Profitability Cash & Capital Life insurance - US Total operating profit1 2012 2011 +/- £m except reserves £bn 964 651 48% = Total Life income Total Life expenses 2012 Expense deferrals - + 2,031 1,725 18% (1,509) (1,302) (16%) 798 734 9% -
Slide 48: Source of earnings: Life insurance - UK
IFRS operating profit – source of earnings Overview Growth & Profitability Cash & Capital Life insurance - UK Total operating profit 2012 2011 +/- £m except reserves £bn 703 683 3% = Total Life income Total Life expenses DAC adjustments - - 961 943 2% (250) (255) 2% (8) (5) (60%) Spread Technical an
Slide 49: Life IFRS operating income: Higher quality earnings
Life IFRS operating income Overview Growth & Profitability Cash & Capital Higher quality earnings “Cash profit”: Income - Expenses (before impact of DAC adjustment), £m 1.9x (3,245) (2,826) (2,569) 5,419 4,627 2,174 (2,301) (2,002) 4,089 1,801 3,321 1,520 US Life + 1,233 2,908 UK Life 906 1,020 1,11
Slide 50: Asia life IFRS operating income: Higher quality earnings
Asia life IFRS operating income Overview Growth & Profitability Cash & Capital Higher quality earnings “Cash profit”: Income - Expenses (before impact of DAC adjustment), £m 2.4x (1,486) (1,269) 2,427 (1,123) 1,959 (987) 1,653 (950) 1,247 1,008 941 690 530 58 260 Life Expenses “Cash Life Expenses “C
Slide 51: Profitability – IFRS: IFRS profits up 25%
Profitability – IFRS Overview Growth & Profitability Cash & Capital IFRS profits up 25% IFRS operating profit1, £m +27% 2,580 2,038 Life Group 2011 2012 2011 2012 2,533 501 +3% 518 M&G 301 320 +25% Asset PruCap 56 51 2,027 Management Eastspring 80 75 and Other businesses 2011 2012 US AM 24 39 UK GI
Slide 52: Source of earnings: Asset management
IFRS operating profit – source of earnings Overview Growth & Profitability Cash & Capital Asset management Asset management 2012 2011 +/- £m except reserves £bn operating profit1 395 381 4% M&G operating Eastspring profit Investments 320 301 6% 75 80 (6%) Underlying income Other income2 Total expens
Slide 53: Profitability – IFRS: IFRS profits up 25%
Profitability – IFRS Overview Growth & Profitability Cash & Capital IFRS profits up 25% IFRS operating profit1, £m +27% 2,580 2,038 Life Group 2011 2012 2011 2012 2,533 501 +3% 518 M&G 301 320 +25% Asset PruCap 56 51 2,027 Management Eastspring 80 75 and Other businesses 2011 2012 US AM 24 39 UK GI
Slide 54: Profitability – EEV: Return on Embedded Value of 16%
Profitability – EEV Overview Growth & Profitability Cash & Capital Return on Embedded Value of 16% In-force1, £m 2011 2012 Experience 347 349 variance Life operating profit, £m Assumption 103 142 +4% 1,977 changes 1,892 Variances 484 Dev costs (5) (7) 445 +10% 4,429 /Other 4,043 866 +2% Unwind 1,447
Slide 55: Profitability – EEV: Robust in-force performance
Profitability – EEV Overview Growth & Profitability Cash & Capital Robust in-force performance Asia in-force1, £694m US in-force, £737m UK in-force, £553m 205 205 152 115 120 79 79 87 16 29 (16) (130) Persistency & Mortality / Spread Other items UK Other items withdrawals Morbidity and Corporation O
Slide 56: Equity shareholders' funds: Resilient and growing
Equity shareholders’ funds Overview Growth & Profitability Cash & Capital Resilient and growing IFRS Equity1 EEV Equity % vs. % vs. £bn EPS (p) £bn EPS (p) 2011 2011 After-tax operating profit 2.0 +23% 77 3.2 +8% 125 Investment variance2 0.2 10 0.6 25 Profit for the period 2.2 +55% 87 3.8 +78% 150 U
Slide 57: Balance sheet: Defensive positioning maintained
Balance sheet Overview Growth & Profitability Cash & Capital Defensive positioning maintained Maintained capital strength • IGD surplus £5.1bn equivalent to a cover of 3 times • With-profits estate £7.0bn • Jackson RBC at 423% (2011: 429%) – REALIC capital synergies being realised early – Excluding
Slide 58: Strong Group IGD capital surplus position
Balance sheet Overview Growth & Profitability Cash & Capital Strong Group IGD capital surplus position • Proactively increased surplus – acts as a buffer to: IGD surplus1, £bn - Market shocks - Regulatory change 152% 283% 305% 275% 300% • IGD surplus: - is after deducting £2.1bn of credit default pr
Slide 59: Increasing free surplus stock
Cash and capital generation Overview Growth & Profitability Cash & Capital Increasing free surplus stock Evolution of free surplus, £m x% Free surplus cover +43% 2,700 M&G 285 UK 532 199% (618) 195% 4,889 US 1,054 (445) (169) Asia 829 3,689 3,421 M&G 392 M&G 229 (1,200) UK 581 Reinvestment Rate = 23
Slide 60: Historic free surplus emergence
Cash and capital generation Overview Growth & Profitability Cash & Capital Historic free surplus emergence Use of free surplus generated, 2010 – 2012, £m 10,126 10,126 Return on net worth 345 Asset mgt 1,072 Experience / Cash 703 3,240 assumptions remitted to Group 1,381 Market / other Expected move
Slide 61: Historic free surplus emergence
Cash and capital generation Overview Growth & Profitability Cash & Capital Historic free surplus emergence Use of free surplus generated, 2010 – 2012, £m 5,779 Return on net worth 345 Asset mgt 1,072 Experience / Cash 703 remitted to assumptions Group Market / other Expected 2,429 movements return o
Slide 62: Future free surplus emergence
Cash and capital generation Overview Growth & Profitability Cash & Capital Future free surplus emergence Expected undiscounted free surplus from Life in-force, £bn 2.5 7.6 8.9 6.3 7.4 4.9 5.7 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual F
Slide 63: Delivering 'Growth and Cash'
Delivering ‘Growth and Cash’ 2012 builds on recent strong performance 2012 £m 2012 2011 vs. 2011 New business profit 2,452 2,151 +14% IFRS operating profit1 2,533 2,027 +25% Growth IFRS operating EPS (pence) 76.8 62.8 +22% EEV per share (pence) 878 771 +14% Free surplus generation 2,082 1,983 +5% Ca
Slide 64: Agenda
Prudential plc 2012 full year results Agenda Business Review Tidjane Thiam Financial Review Nic Nicandrou Outlook Tidjane Thiam 64 2012 FULL YEAR RESULTS
Slide 65: Asia: Long term opportunity
Asia Long term opportunity Middle Class population1 (m) Urban population in Asia2 (m) Insurance penetration in Asia3, % Asia as % of world 28% 54% 66% 3,247 3,228 2x 10.1% 1,649 1,740 1,656 1,509 1,320 4.3% 3.3% 525 2.7% 1.1% 0.8% 0.7% 2009 2020 2030 2010 2050 Rest of the world Asia 1 Source: The em
Slide 66: Asia: Long term opportunity
Asia Long term opportunity GDP per capita in 2010, against the US GDP per capita,1990 US$1 35,000 US GDP Hong Kong per capita 30,000 Singapore Pan Asian leader: #1 by NBP2 25,000 Taiwan Korea Top 3 in 6 /11 Asian Countries3 20,000 Market leading platform 15,000 • Over 400K agents Malaysia • Access t
Slide 67: Asia: A long track record of profitable growth
Asia A long track record of profitable growth IFRS operating profit1, £m 2.1x 1,897 988 1,660 1,501 784 2.4x 1,209 1,174 604 1,044 814 465 562 283 385 416 327 187 190 197 269 121 183 178 143 62 71 90 11 13 15 22 25 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 IFRS
Slide 68: US, UK and M&G: Focus on earnings and cash
US, UK and M&G Focus on earnings and cash • Baby boomers opportunity US • Growth within Group Risk appetite • Selective participation UK • Manage through regulatory changes • Investment performance to capture UK & M&G European opportunity 68 2012 FULL YEAR RESULTS
Slide 69: Dividend: Rebased upwards
Dividend Rebased upwards Dividend, pence per share 29.19 +15.9% 25.19 23.85 +5.6% +20.2% +5.0% 19.85 +5.0% 18.90 18.00 17.14 +5.0% 20.79 Total dividend 16.32 +5.0% 17.24 17.24 12.91 13.56 11.72 12.30 Final dividend 11.02 7.95 8.40 5.30 5.42 5.70 5.99 6.29 6.61 Interim dividend 2005 2006 2007 2008 20
Slide 70: 2012 FULL YEAR RESULTS
2012 FULL YEAR RESULTS
Slide 71: Q&A
Q&A 2012 FULL YEAR RESULTS
Slide 72: Appendix
Appendix 2012 FULL YEAR RESULTS
Slide 73: Dividend: Full year dividend increased by 15.9%
Dividend Full year dividend increased by 15.9% Dividend, pence per share 29.19 +15.9% Total dividend 25.19 • Full year dividend increased by 15.9 per cent to 29.19 pence per share 20.79 • Ex-dividend date: 27 March 2013 Final dividend 17.24 • Record date: 2 April 2013 • Payment of dividend: 23 May 2
Slide 74: Net cash remittances: UK and other
Net cash remittances UK and other Business unit net remittances, £m CAGR +24% 887 808 One-offs1 150 120 515 298 316 284 254 300 297 313 119 199 2007 2008 2009 2010 2011 2012 UK Life Other 1 The net remittances from the UK include the £150m in 2009 arising from the pro-active financing techniques use
Slide 75: New business growth: Group life APE
New business growth Group life APE Life APE1, £m +17% H1 10: £1,655m H2 10: £1,830m H1 11: £1,824m H2 11: £1,857m H1 12: £2,030m H2 12: £2,165m +11% 1,117 1,066 1,048 1,021 977 964 936 888 880 848 807 809 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 1 Excluding Japan. 75 2
Slide 76: New business growth: Group life new business profit
New business growth Group life new business profit Life new business profit1, £m +21% H1 10: £892m H2 10: £1,136m H1 11: £1,069m H2 11: £1,082m H1 12: £1,141m H2 12: £1,311m +7% 714 683 616 605 597 571 536 498 465 453 466 427 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 1
Slide 77: Group life returns on new business investment
New business growth Group life returns on new business investment Post-tax new business profit per £ of new business strain1 2.9 2.8 2.2 1.7 1.6 1.1 2007 2008 2009 2010 2011 2012 1 Free surplus invested in new business; excludes Japan. 77 2012 FULL YEAR RESULTS
Slide 78: Asia Life: APE by quarter
Asia Life APE by quarter Asia APE1 by quarter, £m 2008 2009 2010 2011 2012 1,174 1,209 1,501 1,660 1,897 27 28 18 21 35 22 52 26 16 31 73 46 48 89 37 542 47 35 56 40 20 485 414 408 438 407 351 360 378 308 305 336 259 286 236 227 244 220 228 242 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q
Slide 79: Asia Life: APE by market
Asia Life APE by market Asia APE by market, £m +23% 446 +20% 396 363 +28% 331 301 -2% 235 223 218 +5% 156 +1% -6% 148 -5% 101 102 101 95 +7% +50% +37% 59 56 42 45 45 37 30 27 Indonesia Hong Kong Singapore Malaysia1 Taiwan India 26%2 Korea China 50%3 Vietnam Philippines4 Thailand 1st 4th 1st 1st 12th
Slide 80: Asia Life: APE sales by product
Asia Life APE sales by product - percent 3 3 3 4 2 2 4 3 4 5 3 3 3 3 3 5 4 5 6 5 5 7 7 8 14 18 19 21 17 19 20 23 26 26 27 29 30 30 28 25 33 33 33 33 35 34 31 34 18 17 18 20 20 19 22 30 24 27 27 24 25 30 27 31 29 32 24 30 34 30 33 34 62 65 60 57 59 59 55 44 46 43 44 44 42 38 39 37 36 34 31 31 28 29 2
Slide 81: Asia Life: Net inflows and persistency
Asia Life Net inflows and persistency Asia Life inflows1, £bn Asia Life inflows (ex-India)1, £bn 2.2 2.1 2.0 1.9 1.9 1.8 1.7 1.7 1.7 1.6 1.5 1.5 1.3 1.2 6.2% 6.4% 5.9% 6.0% 5.2% 5.5% 5.1% 5.1% 4.8% 4.8% 4.4% 4.5% 4.6% 2.2% H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 10 H2 10 H1 11 H2 11 H1 12
Slide 82: US retail sales and deposits
US retail sales and deposits 2012 Retail sales and deposits, $m 2011 = $22,494m 2012 = $24,863m 756 2,457 921 2,700 27 46 1,733 1,497 1,345 17,495 18,380 Fixed Annuities Elite Access Life insurance Variable Annuities Index Annuities Curian 82 2012 FULL YEAR RESULTS
Slide 83: US Life: Variable annuities volumes
US Life Variable annuities volumes VA volumes by quarter, sales US$m 42% 43% 81% 72% 69% 65% 5,656 5,258 412 4,974 218 •‘Features War’ 4,553 4,427 4,383 4,176 4,212 715 3,686 3,658 3,756 3,335 3,134 2,909 2,368 2,370 2,324 2,250 2,052 1,780 1,769 1,505 1,412 1,508 Q1 07 Q2 07Q3 07 Q4 07 Q1 08 Q2 08
Slide 84: US Life: Variable annuity distribution
US Life Variable annuity distribution Variable annuity sales by distribution channel, US$bn 2012 includes $1.3bn of Elite Access sales 19.7 +12.7% 17.5 12.7 11.5 3.8 3.3 2.7 3.2 2011 2012 IBD RBD/Wirehouse Bank IBD: Independent Broker/Dealer, RBD: Regional Broker Dealer. 84 2012 FULL YEAR RESULTS
Slide 85: US – New business margin
US – New business margin New business margin – % APE 81% 72% 69% 65% 53% 43% 39% 38% 36% 29% Variable Annuities US Other 2008 2009 2010 2011 2012 85 2012 FULL YEAR RESULTS
Slide 86: US IFRS profit: DAC impact on results
US IFRS profit DAC impact on results Impact on results of DAC amortisation, £m 2011 2012 Gross profits1 1,313 1,494 New business strain2 (156) (174) DAC Amortisation - Core (316) (412) - (acceleration) / deceleration (190) 56 Operating result 651 964 Core as % of Gross profits 24% 28% 1 Gross profit
Slide 87: US Life: Policyholder behaviour
US Life Policyholder behaviour Optional benefits elected, % of initial benefits elected (New business) 86% 82% 80% 79% 55% 42% 28% 14% 15% 11% 5% 6% 5% 5% 2006 2007 2008 2009 2010 2011 2012 No benefit GMWB (for life) 87 2012 FULL YEAR RESULTS
Slide 88: US Life: Asset growth
US Life Asset growth Growth in statutory admitted assets, US$bn 142.8 107.6 97.5 80.1 81.0 76.7 69.3 70.9 58.8 62.8 48.9 55.6 30.0 33.3 50.9 22.3 20.9 46.6 14.7 40.2 43.0 10.4 4.4 7.1 5.6 5.1 62.7 45.2 48.1 47.1 46.7 50.0 47.7 48.6 48.8 37.9 42.2 43.8 34.6 2000 2001 2002 2003 2004 2005 2006 2007 200
Slide 89: GMWB policyholder behaviour sensitivities
Resilient balance sheet GMWB policyholder behaviour sensitivities GMWB policyholder behaviour sensitivities, FY 2012 US$bn • For IFRS and Statutory accounting purposes, assumptions are set at 8 the conservative end of the plausible range (i.e., best estimate with an explicit margin for conservatism)
Slide 90: Hedging result: IFRS impact 'below-the-line'
Hedging result IFRS impact ‘below-the-line’ 2012 Full Year VA hedge results, net of related DAC, £m 50 (50) (150) 124 (162) (250) 140 (350) 196 (450) (550) (650) (622) (750) Equity hedge VA reserve Interest rate Non-operating Net hedge instruments changes hedges fee income, result net of claims 90 2
Slide 91: VA hedging: Moving reserves to 'fair value'
VA hedging Moving reserves to ‘fair value’ Guarantee Benefit Liability Supplemental Disclosure, net of DAC, £m 1,200 1,000 336 800 600 510 400 200 51 160 109 (737) 0 As recorded1 Change in rates2 Adjustment Revised liability, Volatility Hypothetical fair to full fees3 excluding volatility adjustment
Slide 92: Jackson: Capital, hedging and policyholder behaviour
Jackson Capital, hedging and policyholder behaviour • Hedging programme continues to effectively mitigate Total adjusted risks Capital • Total adjusted capital excludes gains on interest rate swaps: $581m at Dec 2012 (Dec 2011: $475m) US$bn • Earned guarantee fees of approximately 120 bps per 31 Dec
Slide 93: Life IFRS operating profit: Source of earnings
Life IFRS operating profit Source of earnings Technical and other Spread income Fee income With-profits margin The net investment The fees net of Profits derived from Our share of bonus return we make investment expenses the insurance risks of declared by the with- primarily on annuity charged on ou
Slide 94: Life IFRS operating profit: Source of earnings
Life IFRS operating profit Source of earnings Technical and other INCOME Spread income Fee income With-profits margin LIFE Expected return on shareholder assets - +/- EXPENSES LIFE Acquisition Administration DAC Other costs expenses adjustments adjustments = LIFE OPERATING PROFIT 94 2012 FULL YEAR R
Slide 95: Source of earnings – Group (1/3)
Life IFRS operating profit Source of earnings – Group (1/3) Source 2012 2011 +/- INCOME Total Life income £m LIFE 5,419 4,627 17% - +/- EXPENSES Total Life expenses DAC adjustments1 LIFE (3,245) (2,826) (15)% 406 237 71% = Total Life operating profit 2,580 2,038 27% 1 2011 restated for DAC accountin
Slide 96: Source of earnings – Group (2/3)
Life IFRS operating profit Source of earnings – Group (2/3) Total Operating profit Source 2012 2011 +/- 2,580 2,038 27% £m = Total Life income Total Life expenses DAC adjustments1 - +/- 5,419 4,627 17% (3,245) (2,826) (15)% 406 237 71% Technical and Spread income Fee income With-profits other margin
Slide 97: Source of earnings – Group (3/3)
Life IFRS operating profit Source of earnings – Group (3/3) Source 2012 2011 +/- £m Total Life expenses (3,245) (2,826) (15)% Administration Acquisition costs1 expenses1 (1,997) (1,783) (12)% (1,248) (1,043) (20)% Admin expense APE2 4,195 3,681 14% ratio (bps) 87 83 4 Acquisition cost Average reserv
Slide 98: Life IFRS operating income – Asia
Life IFRS operating income – Asia Sources of income Asia IFRS operating income1, £m Growth % 2012 vs 2011 923 5% +64% 760 4% +3% 3% 12% +20% 5% 12% 15% +8% 17% 64% +24% 63% 2011 2012 Insurance margin Fee income Spread income With-profits Expected return on shareholder assets 1 Excludes margin on rev
Slide 99: Life IFRS operating income – US
Life IFRS operating income – US Sources of income US IFRS operating income1, £m Growth % 2012 vs 2011 2,031 1,725 3% (34)% 5% 34% (4)% 42% 43% +29% 40% 13% 20% +72% 2011 2012 Insurance margin Fee income Spread income Expected return on shareholder assets 1 Excludes margin on revenues, acquisition an
Slide 100: Life IFRS operating income – UK
Life IFRS operating income – UK Sources of income UK IFRS operating income1, £m Growth % 2012 vs 2011 745 717 14% +18% 13% (7)% 41% 37% 34% 36% +7% 8% 8% +4% 4% 5% +18% 2011 2012 Insurance margin Fee income Spread income With-profits Expected return on shareholder assets 1 Excludes margin on revenue
Slide 101: Policyholder liabilities: Shareholder backed business – Group
Policyholder liabilities Shareholder backed business – Group Policyholder liabilities1 roll-forward, £bn 23.3 163.0 9.6 (1.1) 133.5 2.0 129.2 (4.3) Net inflows2 £10.5bn 8.1% of CER opening reserves of which: unit linked & separate account £7.5bn; other reserves £3.0bn Liabilities Foreign CER Asia US
Slide 102: Policyholder liabilities: Shareholder backed business – Asia
Policyholder liabilities Shareholder backed business – Asia Policyholder liabilities roll-forward, £m 4,141 1,539 21,213 18,269 (2,159) 17,692 (577) Net inflows1 £1,982m 11% of CER opening policyholder liabilities Liabilities Foreign CER opening Premiums Maturities, Investment Liabilities 1 Jan 2012
Slide 103: Policyholder liabilities: Shareholder backed business – US
Policyholder liabilities Shareholder backed business – US Policyholder liabilities roll-forward, £m 12,912 92,261 14,907 4,241 69,189 (5,310) 65,511 (3,678) Net inflows1 £9,597m 14.6% of CER opening reserves Liabilities Foreign CER Opening Premiums Maturities, Investment REALIC Liabilities 1 Jan 201
Slide 104: Policyholder liabilities: Shareholder backed business – UK
Policyholder liabilities Shareholder backed business – UK Policyholder liabilities roll-forward1, £m 3,801 4,586 49,505 46,048 (4,930) Net inflows1 £(1,129)m -2.5% of opening reserves Liabilities Shareholders’ Shareholders’ Investment Liabilities 1 Jan 2012 Premiums maturities, deaths related and 31
Slide 105: Asset management: Group 3rd party net-inflows
Asset management Group 3rd party net-inflows Asset Management movement in 3rd party FUM1, £m 4,007 129,498 1,626 125,491 16,881 106,984 Opening 3rd M&G Asia2 Sub-Total Investment Closing 3rd party FUM net flows markets/other party FUM 1 Excludes Asia MMF 105 2012 FULL YEAR RESULTS
Slide 106: Asset Management: M&G net retail sales
Asset Management M&G net retail sales Average monthly gross and net retail sales, £m 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Gross sales Net sales 106 2012 FULL YEAR RESULTS
Slide 107: IFRS shareholders' funds: 2012 movement
IFRS shareholders’ funds 2012 movement Analysis of movement in IFRS shareholders’ funds, £m +29% 204 50 42 2,533 387 61 11,014 (214) (613) 10,359 (655) 8,564 Shareholders’ Operating Short term Actuarial Gain on Tax and Net FX impact Other1 Sub-total Dividend Shareholders’ funds profit fluctuations l
Slide 108: EEV operating profit: Life operating variances – Group
EEV operating profit Life operating variances – Group Group Life operating variances, £m Experience variances and assumption changes % opening EEV1 0.9% 1.4% 1.2% 3.1% 1.2% 2.1% 2.5% 2.5% 1,492 1,493 1,421 1,447 1,211 1,172 1,035 798 491 425 450 325 180 149 145 78 2005 2006 2007 2008 2009 2010 2011
Slide 109: EEV operating profit: Life operating variances – Asia
EEV operating profit Life operating variances – Asia Asia Life operating variances, £m Experience variances and assumption changes % of opening EEV1 0.1% 3.1% 2.1% 4.6% (1.8)% (0.4)% 1.0% 1.1% 613 599 573 489 409 340 254 162 170 95 61 75 53 1 (24) (97) 2005 2006 2007 2008 2009 2010 2011 2012 Unwind
Slide 110: EEV shareholders' funds: 2012 movement
EEV shareholders’ funds 2012 movement Analysis of movement in EEV shareholders’ funds, £m +18% 538 495 4,321 62 (16) (380) 117 23,098 (655) (1,207) (469) 22,443 19,637 Shareholders’ Operating Short term Economic Mark to Actuarial Gain on Tax and FX impact Other Sub-total Dividend Shareholders’ funds
Slide 111: IGD capital: Base and sensitivities
IGD capital Base and sensitivities IGD sensitivity analysis 20% fall in equity markets £(450)m 40% fall in equity markets1 £(950)m • Sensitivities shown are as at 31 December 2012, based on Jackson’s contribution to IGD 10x expected defaults £(700)m capital at that time • Based on revised contributi
Slide 112: IGD capital: Movement during the period
IGD capital Movement during the period IGD capital – movement in 2012 (£bn) IGD surplus 31 December 2011 4.0 Net capital generation 2.5 Market movement impact incl fx impact (0.3) 2011 Dividend payment (0.7) External financing and other central costs (net of tax) (0.4) IGD surplus 31 December 2012 5
Slide 113: Invested assets: Group overview
Invested assets Group overview Breakdown of invested assets – 2012, £bn Total PAR Unit- Shareholders Group Funds Linked Asia Life US Life UK Life Other Total Debt securities 140.1 62.0 9.5 6.7 33.0 27.0 1.9 68.6 Equity 100.0 25.1 73.9 0.7 0.3 0.0 0.0 1.0 Property Investments 10.9 8.7 0.6 0.0 0.0 1.6
Slide 114: Group shareholder exposures – Sovereign debt
Invested assets Group shareholder exposures – Sovereign debt Breakdown of the shareholder SH sovereign exposures by regions & ratings1, £m debt securities portfolio, % US UK Europe Asia Other Total AAA - 3,432 444 120 1 3,997 AA-BBB 3,585 - 120 1,932 24 5,661 Below BBB - - - 790 - 790 Total 3,585 3,
Slide 115: Group shareholder exposures – hybrid bank debt
Invested assets Group shareholder exposures – hybrid bank debt Breakdown of the shareholder debt securities portfolio, % Exposure to Tier 1 and Tier 2 hybrid bank debt, £m Banks 3% US UK France Germany “PIIGS” Other Other Total Eurozone Total Tier 2 467 700 72 18 34 97 352 1,740 £68.6bn Tier 1 6 99
Slide 116: Total PIIGS sovereign and bank debt of only £312m
Resilient balance sheet Total PIIGS sovereign and bank debt of only £312m Breakdown of the shareholder debt securities portfolio, % Shareholder invested assets – PIIGS countries as at 31 December 2012, £m PIIGS sovereign Sovereign Bank debt & bank debt Institution Covered Senior Tier II Tier I Total
Slide 117: UK asset quality – credit reserve
Invested assets UK asset quality – credit reserve UK shareholder debt securities Strength of the £2.1bn credit reserve portfolio by rating1 BB or below 2% • No defaults of shareholder-backed debt securities BBB AAA • Continued sale of financial subordinated debt 23% 25% holdings • Allowance for cred
Slide 118: US asset quality – corporate debt portfolio (1/3)
Invested assets US asset quality – corporate debt portfolio (1/3) US Shareholder Debt Securities Portfolio Market value, £bn £33.0bn Corporate Bond Portfolio, % by rating Other 1 CMBS 3 BB and AAA and RMBS 2 below AA Govt 4 5% 3% HY 1 Total A 42% 39% A or £22.0bn above 53% Corporate IG BBB Bonds 22
Slide 119: US asset quality – corporate debt portfolio (2/3)
Invested assets US asset quality – corporate debt portfolio (2/3) US Shareholder Debt Securities Portfolio Market value, £bn £33.0bn Investment Grade Corporate Bond Portfolio, % by sector Other 1 CMBS 3 Automotive 2% RMBS 2 Banking Utility Govt 4 Basic • Portfolio spread Industry 13% 7% over 707 iss
Slide 120: US asset quality – corporate debt portfolio (3/3)
Invested assets US asset quality – corporate debt portfolio (3/3) US Shareholder Debt Securities Portfolio Market value, £bn £33.0bn High Yield Corporate Bond Portfolio, % by sector Other 1 CMBS 3 RMBS 2 Automotive Utility Basic Govt 4 Industry • Portfolio spread 7% 3% across 154 HY 1 Telecom 17% is
Slide 121: US asset quality – RMBS portfolio
Invested assets US asset quality – RMBS portfolio US Shareholder Debt Securities Portfolio Market value, £bn Breakdown of the RMBS portfolio – £bn £33.0bn Other 1 Market Value £m FV Price CMBS 3 2006/07 1 16 RMBS 2 2005 3 76 2.4 1.4 Pre 2005 65 86 Govt 4 HY 1 0.3 0.1 0.2 0.3 0.1 Total Agency Sub Sen
Slide 122: US asset quality – CMBS portfolio
Invested assets US asset quality – CMBS portfolio US Shareholder Debt Securities Portfolio Market value, £bn CMBS portfolio, % by rating £33.0bn Other 1 CMBS 3 BB and RMBS 2 lower = 2% BBB • Average credit enhancement Govt 4 of the non-agency portfolio is 9% 31% HY 1 40% AAA • 72% of the portfolio i
Slide 123: US asset quality – commercial mortgage loan portfolio
Invested assets US asset quality – commercial mortgage loan portfolio Breakdown by property type, % • High level of diversification – Average loan size of £6m Hotels – Spread across property type – Geographic diversification 11% Industrial 29% • Strong underwriting discipline – Portfolio performing
Slide 124: Cash and capital: Underlying free surplus
Cash and capital Underlying free surplus Underlying free surplus generation, £m 2010 2011 2012 2,082 1,983 1,714 2,700 (618) UK (45) 2,536 (553) UK (54) M&G 285 2,359 (645) US (281) M&G 269 UK (65) US (202) 2.7x M&G 207 US (300) 2.6x UK 532 Asia (292) (289) Asia (297) (296) UK 532 3.3x UK 562 Asia (
Slide 125: Cash and capital: Central cash resources
Cash and capital Central cash resources Development of central cash resources, £m FY 2010 FY 2011 FY 2012 935 1,200 1,105 (226) (296) (289) 1,486 (449) 1,380 1,232 1,232 (655) (642) 1,200 1,200 (76) (514)1 (199) Operating holding co cashflow +£260m Operating holding co Operating holding co cashflow
Slide 126: Cash and capital: Net remittances (1/2)
Cash and capital Net remittances (1/2) Group objectives 2010-13, £bn 2009 2010 2011 2012 Target £m £m £m £m 2013 Remittance ratio >55% UK with-profit 284 202 223 216 UK shareholder- 350 £6.5bn 150 218 74 97 backed1 US 39 80 322 249 2604 £3.8bn Asia2 40 233 206 341 300 M&G3 175 202 280 297 £5.8bn 89%
Slide 127: Cash and capital: Net remittances (2/2)
Cash and capital Net remittances (2/2) Group objectives 2010-13, £bn 2010-13 £m 2010 2011 2012 Total Remittance ratio >55% Actual free surplus 1,690 1,862 1,923 £6.5bn Operating variances 220 188 295 Expected return on 139 110 96 free assets £3.8bn Asset management 310 376 386 profits Investment in
Slide 128: Future free surplus emergence: Asia
Future free surplus emergence Asia Expected undiscounted free surplus from Life in-force, £bn 0.9 3.0 3.5 2.6 3.0 2.3 2.7 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual From 2011 Life in-force 2012 life in-force including ma
Slide 129: Future free surplus emergence: US
Future free surplus emergence US Expected undiscounted free surplus from Life in-force, £bn 1.2 2.3 3.1 1.8 2.4 0.8 1.3 1.0 0.8 0.6 0.4 0.2 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual From 2011 Life in-force 2012 life in-force including market effects F
Slide 130: Future free surplus emergence: UK
Future free surplus emergence UK Expected undiscounted free surplus from Life in-force, £bn 0.6 2.3 2.3 1.9 2.0 1.7 1.7 0.5 0.4 0.3 0.2 0.1 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual From 2011 Life in-force 2012 life in-force including market effects F
Slide 131: Prudential plc 2012 Full Year Results
Prudential plc 2012 Full Year Results Delivering ‘Growth and Cash’ 13 March 2013 2012 FULL YEAR RESULTS