Slide 1: 2017 Full Year Results Asia Investor Meeting
Prudential plc 2017 Full Year Results Asia Investor Meeting 20 March 2018 1
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
Agenda Headline Results & Strategic Update Asia Deep Dive Summary 2017 FULL YEAR RESULTS 3
Slide 4: Headline results
Group Headline results Growth Cash Embedded value + 12% New business profit 2017 vs. £ 3.6bn 2017 Net free surplus £ 45bn 2017 Embedded value +15% 2016 CER1 generation vs. 2016 AER2 Earnings Dividend Capital £ 4.7bn 2017 IFRS operating profit + 8% Growth on prior year to 202% FY17 Solvency II ratio
Slide 5: All 2017 objectives achieved
Group All 2017 objectives achieved Asia free surplus1, Asia IFRS operating profit1, Group cumulative free £m £m surplus2, £bn 1,029 1,855 12.8 +16% 2.8 CAGR 454 884 10.0 468 1,078 909 1,975 2012 2017 2012 2017 2014-17 Free surplus of £0.9bn to £1.1bn At least 15% CAGR >£10bn XX As reported XX
Slide 6: Continued transformation of Group portfolio
Group Continued transformation of Group portfolio Evolution of mix EEV shareholders’ funds1, % International 28% International 26% 49% 72% £45bn 44% 51% £15bn 23% 28% Asia 2017 US UK 2007 International focus Leading Pan-regional Asia business delivering expansive growth UK centric with 15m Life cu
Slide 7: Intention to demerge M&G Prudential from Prudential plc
Group Intention to demerge M&G Prudential from Prudential plc Value creation Enhancing long-term value Enhanced execution Greater agility & increased speed in execution Better alignment Different investment opportunities 2017 FULL YEAR RESULTS 7
Slide 8: Target structure: two separately listed companies
Group Target structure: two separately listed companies with distinct investment prospects Prudential plc M&G Prudential Prudential Prudential Assurance Prudential Africa Jackson National M&G Investments Corporation Asia Company CEO: Mike Wells CEO: John Foley HQ: London HQ: London Premium Listing:
Slide 9: M&G Prudential
M&G Prudential 2017 FULL YEAR RESULTS 9
Slide 10: Creating a market leading savings and investments business
M&G Prudential Creating a market leading savings and investments business Opportunity1,2,3 Other4 Private Equity4 Wholesale/direct Better Accelerate current initiatives; Commercial property4 UK AUM1 +£ 0.9tn by 2023 alignment better placed to capture distinct opportunity sets £ 7 tn 2015-16 Instit
Slide 11: Attracting strong net flows
M&G Prudential Attracting strong net flows M&G Prudential Wholesale/direct: Funds under management (£bn) PruFund investment performance3, % Net flows £11bn +80% **RECORD YEAR ** 64% wholesale and direct funds above median2 Net flows £9bn Institutional: **RECORD YEAR ** Net flows £6bn +53% ABI sector
Slide 12: Capital profile of standalone business
M&G Prudential Capital profile of standalone business M&G Prudential Solvency Capital Requirement (£bn) Transfer of Hong Kong to align with new structure 7.9 £12bn UK shareholder annuities transferred to Rothesay Life, reinsurance arrangement signed Capital efficient 5.7 trajectory Part VII legal ow
Slide 13: Prudential Plc
Prudential Plc 2017 FULL YEAR RESULTS 13
Slide 14: A pre-eminent global insurer, capturing structural growth
Prudential plc A pre-eminent global insurer, capturing structural growth Complementary operating markets, with Asian growth ability to leverage experience and expertise Better +1 million alignment Diversification across risk characteristics - People entering the working population mortality, spr
Slide 15: US: Superior customer proposition, generating high quality earnings
US Superior customer proposition, generating high quality earnings Movement in separate account Quality sources of income ($bn) + 15% £ 2.3bn FY17 Increase in fee income (CER) 4.5 6.0 Superior customer proposition 12.1 42 13.1 176.6 Jackson LGWB funds with 7% or 12.5 greater 3 year annualised perfor
Slide 16: Agenda
Agenda Headline Results & Strategic Update Asia Deep Dive Summary 2017 FULL YEAR RESULTS 16
Slide 17: Significant long term growth opportunity
Asia Significant long term growth opportunity 1 United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, DVD Edition.15 2 Working age population: 15-64 years 3 Source BCG Global Wealth 2016. Navigating the New Client Landsc
Slide 18: 2017 objectives achieved, improving quality and positive momentum
Asia 2017 objectives achieved, improving quality and positive momentum 2017 Automation and E-Submissions Auto-underwritten 2017 Objectives interaction >2x Grown +2 million life customers Expanded Thanachart distribution SCB renewal +250,000 agents 2x customer +5 million in-force policies base 2013
Slide 19: Strategic priorities
Strategic priorities Asia Accelerate Leverage scale Expand health & protection Penetrate wealth Create ‘best-in-class’ Accelerate Expand presence Enhance the core health capability Eastspring in China Broaden flagship product range Narrow mortality protection gap Strengthen and expand Grow into foot
Slide 20: Strategic priorities: Enhance the core
Strategic priorities Asia Accelerate Enhance the core Recent progress Agency sales force grew 9%, >650,000 5 new bancassurance 1.4m new customers to 15m partnerships Broaden flagship product range Bancassurance 7,900 sales up 20% qualifiers Initiated fasttrack Expand distribution and drive trade eff
Slide 21: Strategic priorities: Expand health & protection
Strategic priorities Asia Accelerate Create ‘best-in-class’ Recent progress health capability H&P APE >£1bn +13% H&P NBP +26% Recruited Andrew Wong Narrow mortality protection gap Chief Health Officer Initiated PRUbiz beyond targeting SMEs Over 69,000 units Launched first ‘as charged’ Grow participa
Slide 22: Strategic priorities: Accelerate Eastspring
Strategic priorities Asia Accelerate Accelerate Recent progress Eastspring Strengthen and expand investment offering Blackrock partnership – iShares ETF offering SGA partnership – access to Global & US Growth strategies Diversify investment styles Agreement to deploy $500m Broadened and - emerging m
Slide 23: Strategic priorities: Expand presence in China
Strategic priorities Asia Accelerate Expand presence in Recent progress China CITIC-Pru: Now in 18 branches Life US$10bn of assets1 Asset Mgt US$17bn AUM1 77 cities Grow into footprint (+3 cities since November) Agency APE: +46% +33% growth in agents Banca APE +51% +17% productivity Preserve leading
Slide 24: High quality, broad-based, diversified growth
Asia High quality, broad-based, diversified growth IFRS NBP Eighth consecutive 8 20 Countries with at least double digit growth NBP year of double-digit (ex HK)1 + % growth 4 Countries generating >£150m IFRS New business + 12 % Eastspring IFRS >£150m H&P NBP1 + 26 % profit1 Health & Protection % N
Slide 25: Country snapshots: Hong Kong, Singapore, Malaysia
Asia Country snapshots Hong Kong Singapore Malaysia >19,000 agents Largest agency force >4,600 ~40% Agency market share +14% growth in new recruits >4,000 MDRT #1 in Regular Premium +16% Agency + Banca NBP (23% market share) +13% APE 28% Agency H&P Mix Double digit growth 12 products (from 25% in 20
Slide 26: Country snapshots: China, Indonesia, Eastspring
Asia Country snapshots China Indonesia Eastspring +43% APE #1 20% Over 393 offices covering 169 £139bn >2x NBP cities AUM, largest Asia house exJP +6% growth in agents 225K new customers 277,000 #1 Retail Fund Manager1 (>600 per day) 22% agency market share #2 Institutional Asset Manager2 Well balan
Slide 27: Strong position
Asia Strong position Increasing market share in 7 of 12 Leverage Expand health & Penetrate China4 Malaysia3 scale protection wealth Hong Kong2 Philippines Taiwan India Singapore Enhance the core Top 3 position in 9 of 12 life markets1,6 Create ‘best-in-class’ health Philippines Cambodia Indonesia ca
Slide 28: Agenda
Agenda Headline Results & Strategic Update Asia Deep Dive Summary 2017 FULL YEAR RESULTS 28
Slide 29: Wrap up
Group Wrap up Asia growth is broad based and high quality US continues to deliver, outperforming the peer group UK strong performance, underpinning rationale for capital efficient strategy Adapting structure to maximise the opportunity for our businesses 2017 FULL YEAR RESULTS 29
Slide 30: 2018 Investor Conference, Singapore - November 2018
2018 Investor Conference, Singapore 14 - 15 November 2018 2017 FULL YEAR RESULTS 30