Prudential Plc · LSE:PRU
Prudential — Prudential 2017 Investor Conference
39 slides from Prudential's conference presentation, Nov 16, 2017
Slide 1: Asia
Nic Nicandrou, Lilian Ng & Guy Strapp Asia
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: Asia: CEO perspective
Asia CEO perspective People Capability Opportunity Scale Industry 2017 INVESTOR 3 CONFERENCE
Slide 4: Opportunity
Opportunity Significant growth runway underpinned by strong structural trends Working age population1,2 Out of pocket healthcare spend4 +1m 42% a month 2.3bn Asia 12% 2015 9% 2.5bn 2030 US UK Growth runway Private financial wealth3 Insurance penetration5 +$4tr a year $78tr $53tr 2016 2021 1 United N
Slide 5: Footprint: leading pan-regional franchise
Footprint Leading pan-regional franchise Pru Asia footprint Life Asset Management 15m Top 3 China3 India4 Indonesia Philippines Pru life customers Position in 9 of 12 2.0% 4 2.7% 1 1.3% 1 1.4% 3 markets1 1,391m 1,327m 262m 106m Mutual fund Retail fund penetration8 manager ranking9 12% 1 Vietnam Thai
Slide 6: 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 7: Capability spectrum
Capability spectrum Fast expanding capability set STRATEGY PRODUCTS >600,000 39% Data Agents Repeat sales analytics DIGITAL Leverage scale + 10,000 Optical Character Bank branches Recognition Expand health & 9 12 DISTRIBUTION protection Top 3 position in of Life markets1 Pop-up Prudential Penetrate
Slide 8: Strategic priorities in motion: China
Strategic priorities in motion China Opportunity Financial performance CIRC Insurance penetration target of 5% by 2020 APE (3Q YTD) NBP (3Q YTD) IFRS (HY YTD) 37k 5-yr cumulative net new flows1 (2017-21) + Japan Agents 3.8x 4.3x 2.6x Rest of Other China forecast to account for 94% APAC China Banca 4
Slide 9: Strategic priorities in motion: Eastspring
Strategic priorities in motion Eastspring Key distribution markets Singapore US & & Hong Malaysia Korea Taiwan Japan China EMEA Latam Kong Equity 1 Strengthen investment offering Fixed Income Products 2 Diversify investment styles Multi-asset EMD 3 Enhance distribution capabilities QIS / Alternative
Slide 10: Performance: 2017 Q3 trading update
Performance 2017 Q3 trading update Scale (per month) Performance, 2017 Q3 YTD CER 15,000 112,000 APE Ex HK broker + 13 % H&P APE + 16 % Rest of Asia (ex HK) + 24 % Countries with at least double digit growth1 7 199,000 211,000 NBP + 15 % H&P NBP + 16 % >2 366,000 7 Double digit growth in Countries w
Slide 11: Delivering from position of strengths
Delivering from position of strengths Customer Experience Digital Business Platform Operations Optimisation Agility Continuous intelligence Customised, friendly solutions Salesforce productivity Flexible and automated gathering Anytime, Anywhere Service effectiveness Rule-based decision making Innov
Slide 12: CITIC PRU – China: accelerating value creation
CITIC PRU – China Accelerating value creation Extensive footprint Building sustainable scale Ahead on all fronts 76% Agency: Building an active and performance driven sales force CITIC PRU China GDP Footprint Bancassurance: proposition-led solutions to Ranking National JV/Foreign broaden and deepen
Slide 13: CITIC PRU – China: extensive footprint - branches
CITIC PRU – China Extensive footprint - 18 branches Sichuan Hubei Population: 87.3m Population: 58.5m GDP/Capita: £3.6K GDP/Capita: £5.3k Liaoning Population: 43.8m GDP/Capita: £6.8k Hebei Population: 74.3m GDP/Capita: £4.2k Tianjin Population: 15.5m Beijing GDP/Capita: £11.0k APE Population: 21.7m
Slide 14: CITIC PRU – China: building sustainable scale
CITIC PRU – China Building sustainable scale Agency: Disciplined Growth Recruitment APP 37,000 Consistently Active Agents +31% FNA on Xin-Yi-Tung +38% # of MDRTs +58% # of Agents Training APP Bancassurance: Scale and Quality Regular premium sales +77% Proposition-led solutions 2572,906283 Regular pr
Slide 15: CITIC PRU – China: making it easy
CITIC PRU – China Making it easy E-claims solution Before 1 2 3 4 5 6 7 7 days (Hospital) 7 days (Customer - Hospital) 3 days (Customer - Insurer) 8 days (Insurer) Admitted to Report claims Payment / hospital Collect File an Claims Payment hospital discharge information application verification Serv
Slide 16: Pru Hong Kong: Fit for Growth platform
Pru Hong Kong Fit for Growth platform Drivers of Demand Comprehensive Platform Translating to value and 24% growth1 > 1.4x market agent productivity # earnings Onshore Channel of choice 7m population 23% p.a. Access to NBP growth^ IFRS Profits +24% p.a. +45% (2011-16) H1’17 Unique customer solutions
Slide 17: Pru Hong Kong: drivers of demand
Pru Hong Kong Drivers of demand What consumers need Onshore demand1 Offshore demand2 51% 76% Retirement rely on advice face to face of target customers visited Saving Hong Kong past 12 months 27% 58% Health and used online insurance Protection come to Hong Kong to planning tool manage personal wealt
Slide 18: Pru Hong Kong: making it easy
Pru Hong Kong Making it easy Real-time suitability validation Analytics-driven Next Best Offer Solutions for the digital customers Our promise – seamless customer experience 2017 INVESTOR CONFERENCE 18
Slide 19: Pru Hong Kong: customer solutions
Pru Hong Kong Customer solutions – making a difference 45,000 units “I found I was fat-sensitive…. I learned to change my eating habits with the help of myDNA 70% made positive changes to their diet and dietitians... ” [Tiffany (age: 34)] lifestyle after using myDNA “I suffered from severe headache
Slide 20: Pru Indonesia: building on success
Pru Indonesia Building on success The place to be Best in class agency management Sustaining future growth Below 30 50% Investing in agency workbench Prudential franchise: > 260m Themed recruitment #1 in both Conventional & Sharia population Muslim 87% # In-force Disciplined performance management P
Slide 21: Pru Indonesia: market-leading agency management
Pru Indonesia Market-leading agency management SEAMLESS RECRUITMENT 20 Days to 2 Days ONLINE TRAINING Capacity to train 5,000 new recruits per week +30,000 user IDs created since launch Agency workbench with modular solutions 2017 INVESTOR CONFERENCE 21
Slide 22: Pru Indonesia: enhancing customer experience
Pru Indonesia Enhancing customer experience PRUcheers Care at the moment of truth PRUcentres Getting closer to the customer Analytics-driven Pro-active reach Claims scoring model Enhanced training Quality assurance Bringing service to the customer +15% improvement in Claim TAT > 400,000 policies ser
Slide 23: Pru Singapore: transforming customer experience
Pru Singapore Transforming customer experience Leveraging exclusive distribution Headroom for selected growth Stable profit and cash delivery Seeks face to face advice Professional agency: Growing manpower and 1,689 productivity Established strategic bank partnerships +12% p.a. 11 Singaporeans confi
Slide 24: Pru Singapore: leveraging exclusive distribution
Pru Singapore Leveraging exclusive distribution +45% protection cover per policy 33% of industry’s agent recruits >70% of new recruits below age 30 >80% banca mix regular premium 2017 INVESTOR CONFERENCE Internal data as of YTD Sep 2017; Market related statistics as of H1 2017 24
Slide 25: Pru Singapore: next digital wave
Pru Singapore Next digital wave st 1 Insurance chatbot with Real time information 24/7 available >50% Adoption rate since launch 2017 INVESTOR CONFERENCE 25
Slide 26: Pru Singapore: next digital wave
Pru Singapore Next digital wave 4th generation point-of-sales portal SmartData capture and fingerprint authentication Detailed quotation in just 3 minutes Instant underwriting outcome SMS to customers 2017 INVESTOR CONFERENCE 26
Slide 27: Pru Malaysia: optimising platform for growth
Pru Malaysia Optimising platform for growth xx Expand Insurance Lead Takaful Core proposition – Linked Protection PRUMuslim agents Holistic platform for growth Next-gen entrepreneurial agency Bespoke Takaful solutions Interactive FNA# – 1st in market Leading edge digital 2.2m customers 21k agency fo
Slide 28: Pru Scaling up: diversified business portfolio
Pru Scaling up Diversified business portfolio Vietnam Philippines Cambodia + 24% 91% 30% PRUElite agents 33k +52% New recruit active rate 45% Regular APE from new New customers Protection cover premium mix products per policy PruCompanion: 1st in market Thailand Taiwan + 23% 0 APE growth 30% ILP mix
Slide 29: Summary: delivering from position of strengths
Summary Delivering from position of strengths Position of strength Setting us apart ✓ Consistent, resilient delivery ✓ Customer experience for growth ✓ Customer-led innovative solutions ✓ Prevent, postpone & protect to enhance value proposition ✓ Adaptive capacity and disciplined choices ✓ Future-pr
Slide 30: Eastspring: market opportunity
Market opportunity Eastspring Accelerate Potential in Asia Opportunities in China Asia AuM1 (£tn) China AuM1 (£tn) 2016-2021e CAGR 11% 2016-2021e CAGR 13% 3.8 1.9 2.3 1.0 2016 2021e 2016 2021e 9% 12% 43% 49% Asia as % in global AuM China as % in Asia AuM 2017 INVESTOR 1. From Cerulli reports; retail
Slide 31: Eastspring: well diversified
Well diversified Eastspring Accelerate Total FUM £131bn Country mix Client mix Asset mix (Third party1) Alternatives 3% Malaysia 0.4% Others2 7% Money market 5% 6% Hong Kong Third party 7% 40% Taiwan (Retail & Institutional) Fixed income 10% Singapore 41% 11% China 13% UK Life 13% Japan 10% Asia Lif
Slide 32: Eastspring: our priorities
Our priorities Eastspring Accelerate Strengthen offering in existing asset classes and diversify styles Deepen investment capabilities Develop strategic product partnerships to complement gaps Capture opportunities in China Enhance distribution and coverage Strengthen institutional capability Expand
Slide 33: Eastspring: deepen investment capabilities
Deepen investment capabilities Eastspring Accelerate Our strength Our expertise Recent success Asia REITs £900 mn Operating in Quantitative Equity (Japan) FUM Raised2 10 Asian markets solutions IFC MCPP £380 mn (1st Asian Investor) Committed capital3 Ability to work closely Fixed income Alternatives
Slide 34: Eastspring: enhance distribution and coverage
Enhance distribution and coverage Eastspring Accelerate In process of establishing a wholly foreign owned presence in China Capture opportunities Actively recruiting to establish onshore investment team in China Establish China client coverage Flagship institutional clients across Asia and Americas
Slide 35: Eastspring: transform the way we work
Transform the way we work Eastspring Accelerate Best-in-class tools Improve our ability Common operating platform to scale at pace Agile ways of working TOM supports rapid growth Improved data quality Enhance risk management Strengthen investment oversight and control Uniform risk reporting 2017 INV
Slide 36: Eastspring: record FUM and strong results
Record FUM and strong results Eastspring Accelerate Margin based on Funds Under Management1 (£bn) operating income 33bps HY2017 131 118 Cost/income ratio 55% 89 HY2017 77 PBT growth +20% HY2016-HY2017 IFRS profit 2014 2015 2016 Q3 2017 contribution to 8% 9% Asia HY2016 HY2017 UK/Jackson Life Asia Li
Slide 37: Compounding revenues
Asia Compounding revenues Prudential growth New & renewal premiums Life weighted premium income1,2, £bn CER Prudential customers4 4x 2x 15m 12.6 7m MSCI Asia 10.4 ex Japan3 2007 2016 8.8 Renewal 7.5 9.1 Prudential insurance 6.4 7.6 penetration5 5.6 4.8 6.6 4.0 5.5 20 3.6 4.7 3.1 4.1 3.5 + bps 2.5 2.
Slide 38: Compounding profits
Asia Compounding profits IFRS operating profit1, £m 2017 2x3 objective2 1,644 1,286 1,058 1,108 2x 959 757 579 2x 476 953 266 728 199 226 508 613 427 504 285 350 2H 237 1H 109 89 111 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 NBP 2013 2017 objective3 objective3 objective2 1. Co
Slide 39: Key messages
Asia Key messages P Structural trends anchor positive industry outlook P Leading pan-Asian life and asset management franchise P Clear strategic roadmap P Proven ‘best-in-class’ execution capabilities P Prudential is well positioned to drive shareholder and customer value 2017 INVESTOR CONFERENCE 39