Slide 1: Companion guide to the Prudential IFRS 17 briefing
Companion guide to the Prudential IFRS 17 briefing This guide supports the IFRS 17 briefing by: a) Including the balance sheet and certain key notes from an audited set of financial information prepared to show the effect of IFRS17 on the Group’s 2022 results (see page 7 onwards). b) Showing how cer
Slide 2: (Re)insurance contract liabilities (assets) – slide 7
1. (Re)insurance contract liabilities (assets) – slide 7 Presented item US$m IFRS 17 financial disclosures Excluding JVs and associate 1.1.1 (Re)insurance contract liabilities – BEL 127,912 1.1.1.1 Insurance, liabilities 126,438 Note C3.1 1.1.1.2 Reinsurance, liabilities 1,474 Note C3.1 1.1.2 (Re)in
Slide 3: IFRS 17 CSM roll-forward – slide 8
2. IFRS 17 CSM roll-forward – slide 8 Presented item US$m IFRS 17 financial disclosures 2.1 1 Jan. 2022 24,749 2.1.1 Net opening balance at 1 Jan, insurance 25,948 Note C3.2 2.1.2 Net opening balance at 1 Jan, reinsurance (1,199) Note C3.2 2.2 New business 2,064 2.2.1 New contracts in the period, in
Slide 4: CSM closing balance 31 Dec 2022
Presented item US$m IFRS 17 financial disclosures 2.7 31 Dec. 2022 19,989 2.7.1 Net closing balance at 31 Dec, insurance 21,304 Note C3.2 2.7.2 Net closing balance at 31 Dec, reinsurance (1,315) Note C3.2 4
Slide 5: Adjusted operating profit for insurance business – slide 9
3. Adjusted operating profit for insurance business – slide 9 Presented item US$m IFRS 17 financial disclosures 3.1 Release of CSM 2,265 Note B1.3 3.2 Release of RA 179 Note B1.3 3.3 Experience variances (66) Note B1.3 3.4 Other insurance service result (204) Note B1.3 3.5 Adjusted insurance service
Slide 6: Illustration for growth in insurance operating profit – slide 10
4. Illustration for growth in insurance operating profit – slide 10 Presented item US$m IFRS 17 financial disclosures 2022 CSM release 4.1 2022 2,242 4.1.1 Release of CSM to profit or loss, insurance 2,413 Note C3.2 4.1.2 Release of CSM to profit or loss, reinsurance (171) Note C3.2 Expected discoun
Slide 7: IFRS 4 and IFRS 17 opening balance sheet – slide 24
5. IFRS 4 and IFRS 17 opening balance sheet – slide 24 IFRS 4, IFRS 17, IFRS 17 Presented item US$m US$m disclosures Total assets 5.1 Total investments, excluding policy loan, including cash 173,916 173,918 5.1.1 Total financial investments 168,479 166,748 Note A2.1 5.1.2 Less policy loans (1,733) -
Slide 8: Extracts from FY22 IFRS17 audited financial information
Extracts from FY22 IFRS17 audited financial information The results in this investor day presentation have been extracted from an audited set of financial information prepared to show the effect of IFRS17 on the Group’s 2022 results. This section provides the balance sheet and certain key notes from
Slide 9: Note A2.1 – Adoption of IFRS 17 and IFRS 9
Note A2.1 – Adoption of IFRS 17 and IFRS 9 5.4.1 5.3 5.4.2 5.5.1 5.5.2 5.4.3 5.4.4 5.4.5 5.4.6 5.1.2 5.2 5.1.1 5.1.3 5.9 5.8.1 5.6.1 5.6.2 5.8.2 5.7.1 5.7.2 5.8.3 5.8.4 9
Slide 10: Transition adjustments: with-profits surplus, deferred tax, JVs
(c) (d) — the change in treatment of the unallocated surplus of with-profits funds such that the shareholders’ share is recognised in shareholders’ equity after allowing for measurement differences between IFRS 4 and IFRS 17. Deferred tax assets and liabilities Deferred tax balances are adjusted to
Slide 11: Note A3 – Critical accounting policies, estimates and judgements
Note A3 – Critical accounting policies, estimates and judgements (extract for economic assumptions) 11
Slide 12: Note B1.1 – Segment results
Note B1.1 – Segment results 2022 $m Full year AER note (i) CPL 271 Hong Kong 1,162 Indonesia 205 Malaysia 340 Singapore 570 Growth markets and othernote (ii) 728 Eastspring 260 Total segment profit 3,536 Other income and expenditure: Net investment return and other itemsnote (iii) (44) Interest paya
Slide 13: Note B1.3 – Analysis of adjusted operating profit by driver
Note B1.3 – Analysis of adjusted operating profit by driver – Experience variances represent the difference between the actual amounts incurred or received in the period and that assumed within the best estimate liability for insurance and reinsurance contracts. It covers items such as claims, attri
Slide 14: Note C3.1 – Group overview
Note C3.1 – Group overview 1.1.1.1 1.1.1.2 1.1.2.1 1.1.2.2 1.1.3.1 1.1.3.2 1.2.1.1 1.2.1.2 1.2.2.1 1.2.2.2 1.2.3.1 1.2.3.2 1.4.1.1 1.4.1.2 1.4.2.1 1.4.2.2 1.4.3.1 1.4.3.2 14
Slide 15: Note C3.2 – Analysis of movements in insurance and reinsurance contract balances
Note C3.2 – Analysis of movements in insurance and reinsurance contract balances by measurement component 2.1.1 2.1.2 2.4.1 2.4.2 2.2.1 2.2.2 2.5.2 2.5.1 4.1.1 4.1.2 2.3.1 2.3.2 2.4.3 2.4.4 2.6.1 2.6.2 2.7.1 2.7.2 15
Slide 16: Note C3.3 – Contractual service margin
Note C3.3 – Contractual service margin 4.2.1 4.2.2 16
Slide 17: Forward-looking statements
Forward-looking statements This presentation contains 'forward-looking statements' with respect to certain of Prudential's (and its wholly and jointly owned businesses’) plans and its goals and expectations relating to future financial condition, performance, results, strategy and objectives. Statem
Slide 18: Forward-looking statements: climate and regulatory factors
• Legal, policy and regulatory developments in response to climate change and broader sustainability-related issues, including the development of regulations and standards and interpretations such as those relating to ESG reporting, disclosures and product labelling and their interpretations (which
Slide 19: Forward-looking statements: risk factors not exhaustive
These factors are not exhaustive. Prudential operates in a continually changing business environment with new risks emerging from time to time that it may be unable to predict or that it currently does not expect to have a material adverse effect on its business. In addition, these and other importa