Prudential Plc · LSE:PRU
Prudential — BOAML CEO Conference 2015
16 slides from Prudential's conference presentation, Oct 1, 2015
Slide 1: Prudential plc – BOAML CEO Conference
Prudential plc BOAML CEO Conference “Shaping a business fit for the post-crisis era” 1st October 2015 1 BOAML CEO CONFERENCE
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: Strong first half performance
Group Strong first half performance HY15 vs HY14 £m HY15 HY14 CER2 AER2 IFRS operating profit 1,881 1,521 17% 24% Growth New business profit1 1,190 1,009 12% 18% EEV operating profit 2,278 1,943 11% 17% Free surplus generation 1,418 1,219 12% 16% Cash Remittances3 1,068 974 n/a 10% Dividend per shar
Slide 4: Clear, unchanged strategy
Group Clear, unchanged strategy Significant protection gap and investment needs of the Asian middle class Transition of US ‘baby-boomers’ into retirement UK ‘savings gap’ and ageing population in need of returns / income 4 BOAML CEO CONFERENCE
Slide 5: Priorities
Group Priorities Asia US UK / M&G • Build agency scale and • Focus on profitable growth • Continue to evolve product quality propositions to align with market reforms • Bolt-ons to leverage • Leverage bancassurance platform relationships • Ongoing build-out of digital capabilities • Disciplined mana
Slide 6: Effective response to challenges
Group Effective response to challenges IFRS operating profit1,2, £m 2008 2009 2010 2011 2012 2013 2014 2015 • Liquidity crisis • Start of global • Greece and • Concern over • US debt ceiling • Concern over • Asia FX • Solvency II finalisation • Sub-prime recession Ireland bailouts China hard- • Euro
Slide 7: Asia: Well positioned to deliver profitable growth
Asia Well positioned to deliver profitable growth Market leading franchise Structural fundamentals intact Platform • In Asia since 1923 • Top 3 position in 9 out of 12 life markets Low insurance penetration • Top decile brand awareness Distribution High household savings rate • Over 560,000 agents •
Slide 8: Asia: Growing, recurring earnings
Asia Growing, recurring earnings In-force IFRS operating profit1, £m CAGR 14% 1,109 648 2010 2014 1 Operating profit comprises the following: Asia life as disclosed in note 1(b) of the ‘additional financial information’, after deducting development expenses. Asset management operating profit for Eas
Slide 9: Asia: Resilient growth
Asia Resilient growth New business Regular and Single Premium APE, £m 2,010 MSCI Asia ex Japan1 1,911 1,740 1,514 1,391 1,131 1,052 889 723 494 360 340 281 227 214 206 151 155 122 110 146 157 23 11 77 27 63 46 45 56 68 91 79 106 120 91 6 9 103 79 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 200
Slide 10: US: High quality platform
US High quality platform Fee income (£m) & Expenses1, Distribution separate account assets % of assets (£bn) 81.8 Indexed Number of wholesalers2,3 productivity2,4 65.7 JNL 200 61bps 49.3 Co A +44% 100 37.8 114 Co B 31.2 32bps Co C 157 20.6 15.0 14.5 11.4 Product innovation JNL Industry Average Elite
Slide 11: UK: Solid base
UK Solid base IFRS operating profit, PruFund FUM (£bn) & M&G FUM by client and FY14 £m performance asset class, HY15 % 1,264 New Internal Retail 162 business1 13.7 +34% Property Cash 10.2 Equity Insurance 614 In-force2 Fixed Multi- Inc Asset Fixed Inc £256bn Property Equity 0.1 Equity Fixed M&G4 488
Slide 12: Well positioned to deliver across cycles
Group Well positioned to deliver across cycles IFRS income by revenue IFRS operating profit split by In-force IFRS operating source, HY15 % currency1,2,3, % profit4, £bn 2010-2014 CAGR 3.2 14% Other 18% Asset 10% 0.6 management Other USD Insurance 16% linked Spread margin income 76% Asset Mgt Life F
Slide 13: Solvency II – Well capitalised and highly cash generative
Group Solvency II – Well capitalised and highly cash generative • Internal model submitted in June Asia • PRA decision expected in December • Strong 1H15 Solvency II capital • Health and Protection business generation Solvency II ‘friendly’ In-force free surplus • ‘Prudent’ local statutory basis rem
Slide 14: Summary
Group Summary • Clear, unchanged strategy focused on three secular growth opportunities • Leading franchise, ‘best in class’ capabilities • Experienced, proven management team • Strongly capitalised and cash generative businesses • Well positioned to deliver long term profitable growth 14 BOAML CEO
Slide 15: Long term value creation
Group Long term value creation IFRS operating profit1,2, £m New business profit1,2,3, £m Free surplus generation1,2,4, £m 3.8x 3.7x 5.7x 1,190 1,418 1,881 CAGR CAGR CAGR +15% 1,009 1,219 +16% +21% 1,521 1,152 913 1,091 1,415 1,031 818 756 921 1,157 1,022 630 817 488 609 693 503 402 462 611 497 538 3
Slide 16: Prudential plc – BOAML CEO Conference
Prudential plc BOAML CEO Conference “Shaping a business fit for the post-crisis era” 1st October 2015 16 BOAML CEO CONFERENCE