Slide 1: Prudential plc 2020 Half Year Results
Prudential plc 2020 Half Year Results 11 August 2020 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: Mike Wells, Group CEO
Mike Wells Group CEO 2020 HALF YEAR RESULTS 3
Slide 4: Agenda
Group Agenda Strategic overview Mike Wells Group CEO Financial update Mark FitzPatrick Group CFO & COO Closing remarks Mike Wells Group CEO 2020 HALF YEAR RESULTS 4
Slide 5: Key take-aways
Group Key take-aways 1 Resilient HY20 results despite challenging and volatile environment. Business is adapting and evolving well 2 Intention to fully separate Jackson 3 Group to be focused exclusively on high growth Asia & Africa businesses 4 Long-term structural demand drivers remain intact 5 Wel
Slide 6: HY20 financial highlights
Group HY20 financial highlights Asia NBP Asia embedded value Group LCSM2,3,4 45% - 37.3bn 334% Asia total -6% Asia ex HK $ HY20 NBP vs HY19 CER1 FY19: 309% Asia earnings JNL RBC5 Group RoE + 14% > 425% 21% Growth on prior year IFRS FY19: 366% HY20 Operating return on equity6 operating profit1 to $1.
Slide 7: Growth, diversification and resilience
Asia Growth, diversification and resilience Regular premium (% of APE) Renewal premiums ($m)2 IFRS operating profit, $m +6% Recurring premium 91% Sticky 9,702 Hong Kong +21% business model business 9,115 Singapore +20% HY19 HY20 HY20 Product mix (% of NBP) Insurance margin ($m)2 Indonesia (1)% 1,733
Slide 8: Resilience through a diversified platform
Asia Resilience through a diversified platform Asia ex-HK APE Performance highlights1 As % of prior year 100% • Five markets with increased sales • Double-digit APE growth in Indonesia (+42%), Thailand (+33%), and 1Q20 Singapore (+10%) 111% 87% 90% 101% • Asia ex-HK NBP up +17% underpinned by double
Slide 9: Amplifying capabilities to meet customer demand
Asia Amplifying capabilities to meet customer demand New virtual onboarding Agent capacity and quality Strengthening core capabilities • Virtual sales introduced in all markets1 • Virtual end-to-end agency management • 15-year strategic partnership with TMB ~90%2 of products (based on APE) in all ma
Slide 10: Strategic and operational delivery during COVID-19
Group Strategic and operational delivery during the COVID-19 affected period Strategic Integrating Technology as Pulse “business as usual” JNL reinsurance & equity 90%1 of our products in Asia 8.1m installs3, up from 1.3m transactions completed can now be sold virtually reported at FY19 result
Slide 11: Stakeholder delivery during the COVID-19 affected period
Group Stakeholder delivery during the COVID-19 affected period • COVID-19 protection Customers • Acceleration of claims payment • Flexible premium payment options • Flexible “work at home” support Staff & • Digital tool roll out agents • Online training & education programmes • Donations totalling $
Slide 12: Our business model
Group Our business model Why? Who? What? How? Our Purpose Customers Products Distribution Help people get the most out of life Asia Africa Health & Protection insurance Agents Banks Giving them the freedom to face the future with confidence Broad income bands Savings Value-added (Emerging, mass, aff
Slide 13: Long-term track record of building Asia value
Group Long-term track record of building Asia value c.$11bn invested in Asia Percentages represent CAGR between 2009 - 2019 between 2009 and 20191 Capturing structural Embedded value + % 15 to $39.2bn opportunities Long term track Operating FSG2 +19 % Disciplined record of building to $1.8bn executi
Slide 14: Asia: significant long-term growth opportunity
Group Asia: Significant long-term growth opportunity- $1.3tn of expected premiums2 income Majoritysolutions of Asian markets remain below the inflection point, US$10k to US$20k GDP per capita, for life insurance penetration Our Asia Market profile1 Future sources of growth 1.8x 4.5 Growth contributi
Slide 15: Intention to fully separate Jackson
Group Intention to fully separate Jackson Prudential to focus on the largest growth opportunities in Asia where we can build or maintain competitive advantage and economies of scale Intention to fully separate Jackson from the Group, commencing with minority IPO planned for H1 2021 and full divestme
Slide 16: US strategic update
US strategic update A leading provider of US retirement income solutions Substantial and growing opportunity to provide solutions to help address the concerns of the millions of Americans currently transitioning to and through retirement Leading provider of individual annuities, with proven and reta
Slide 17: Post-separation: Our aims and strategy
Group Post-separation: Our aims and strategy Aim Strategy Long-term delivery of attractive shareholder Position in growing health, protection & savings markets returns through capital appreciation in Asia & Africa Build leadership positions with competitive advantages & economies of scale Maintainin
Slide 18: Mark FitzPatrick, Group CFO & COO
Mark FitzPatrick Group CFO & COO 2020 HALF YEAR RESULTS 18
Slide 19: HY20: Drivers of financial performance
Group HY20: Drivers of financial performance Asia: Quality + diversification COVID-19 disruption + response Macro volatility + resilience 2019 HY20 91% 95% 87% 3600 3 US10Y 3400 APE regular Retention IFRS life income fee + 2.5 3200 premium rate insurance margin 2 3000 Others Others 2800 1.5 Link HK
Slide 20: Operating environment
Operating environment Several markets in restart mode with planned easing measures Restriction measures & timeline Jan Feb Mar Apr May Jun Jul Aug Current status of measures Easing measures; internal travel and business activity resumed nationwide from China 26 March with strict measures in place to
Slide 21: Selected performance metrics
Group Selected performance metrics $m HY19 (CER1) HY20 Change % Embedded Value ($bn) 39.22,3 37.34 (5) New business profit 1,673 912 (45) Sales disruption EEV operating profit6 2,853 2,036 (29) Asia Operating FSG5,6 871 988 13 Resilient in-force Adjusted IFRS operating profit6 1,526 1,733 14 Shareho
Slide 22: HY20 new sales reflect COVID-19 disruption
Asia HY20 new sales reflect COVID-19 related disruption APE sales, $bn New business profit, $bn 2.5 1.7 Asia Asia 1.7 (34)% 0.6 1.4 ex HK ex HK 0.9 (45)% 1.3 (12)% Hong 1.1 0.5 (6)% Hong 1.1 Kong Kong 0.4 (64)% 0.4 (67)% HY19 HY20 HY19 HY20 (CER)1 (CER)1 New business APE trends driven by timing of C
Slide 23: 11% operating RoEV in challenging environment
Asia 11% operating RoEV in challenging new business environment Movement in embedded value, $bn1 0.1 41.2 1.0 (0.4) 39.2 0.9 37.3 EEV Operating return $2.0bn, RoEV 11%2 (3.0) (0.5) FY19 closing NBP In-force return Asset management HY20 post Net remittances Non operating FX HY20 closing operating 11%
Slide 24: Compounding in-force drives OFSG
Asia Compounding in-force drives OFSG1 supporting higher underlying remittances Renewal premiums, $m Operating FSG, $m1 Remittances, $m +6% +13% 988 871 Asset 126 10% management 115 ICICI Prudential 249 proceeds 9,115 9,702 In-force 1,075 1,160 8% return Net 400 remittances 329 HY19 HY20 New busines
Slide 25: Resilient in-force growth drives IFRS operating profit
Asia Resilient, broad-based in-force growth drives IFRS operating profit IFRS operating profit, $bn Insurance margin & fees Strong market contributions, drive life IFRS income2 at scale +14% 1.7 HY20 IFRS operating profit 0.1 9% 1.5 +10% % growth3 $m Eastspring 0.1 8% Hong Kong +21% 412 4% Singapore
Slide 26: Asia key takeaways
Asia Key takeaways Benefit of high quality, broad-based portfolio, at scale demonstrated by HY20 performance: APE and NBP disrupted by COVID-19 restrictions, ex HK NBP (6)%1 In-force business resilient, with 9 life markets delivering IFRS op. profit growth of 15%+1 LCSM capital position robust with
Slide 27: Resilient new VA sales, reduction in FA/FIA sales
US Resilient new VA sales, expected reduction in FA/FIA sales following repricing New APE, $bn New business profit, $bn 1.1 1.0 (9)% 0.6 QoQ Growth 1% Variable Annuity 0.3 (45)% 0.5 (incl. EA) 0.2 (45)% FA+FIA (17)% (16)% Wholesale (38)% (83)% 1Q20 2Q20 HY19 HY20 HY19 HY20 VA sales stable over HY20,
Slide 28: IFRS: resilient operating performance
US IFRS: resilient operating performance US IFRS result, $m HY19 HY20 % Fee 1,601 1,596 0 Fee income stable in volatile market conditions Spread 298 273 (8) Other income/expenses, incl. ordinary DAC (534) (581) (9) Core administration cost ratio broadly flat at 35bps1 Sub Total 1,365 1,288 (6) DAC d
Slide 29: Resilient statutory performance in volatile macro conditions
US Resilient statutory performance in volatile macro conditions US statutory surplus & RBC ratio development1, HY20 ($m/%) 366% >400% +24%p >425% Hedging performed as expected Reinsurance transaction added 69%p to RBC ratio 500 809 RBC cover ratio >425%2 1,130 587 (60) 6,261 1Q20 general account sal
Slide 30: High quality asset exposure, credit risk reduced
US High quality asset exposure, credit risk reduced Shareholder cash & invested assets, $bn Shareholder cash & invested assets, Corporate bonds, by rating $bn1 by asset class, $bn 78.1 <BBB 3% <BBB (25%) Derivative assets, other 3% Policy loans 58.5 Other gov. Sovereign Corporate bonds BBB A & above
Slide 31: US key takeaways
US Key takeaways Hedge strategy performed again, as expected, in extraordinarily volatile macro conditions Maintained pricing discipline, expected reduction in FA & FIA new sales. VA sales resilient In-force capital generation in-line with expectations Transactions with Athene materially improve Jac
Slide 32: On track to deliver central expense savings of $180m
Group On track to deliver annual central expense savings of $180m a year from start 2021 Group IFRS result, $m HY19 HY20 Change (CER)1 % Completed plans to deliver $160m annual Asia 1,526 1,733 14 savings from 1/1/21 US 1,572 1,266 (19) Total segment profit continuing operations 3,098 2,999 (3) Grou
Slide 33: Robust LCSM capital generation supporting investment in growth
Group Robust and resilient LCSM capital generation supporting investment in growth HY20 movement in estimated LCSM shareholder LCSM shareholder surplus estimated capital surplus1, $bn sensitivities1,4,5,6 Cover ratio Impact on solvency ratio 31 December 2019 2 9.5 309% HY20 estimated surplus1,3,4,5
Slide 34: Strong liquidity position
Group Strong liquidity position/continuing to support Asia growth Movement in holding company cash $m HY19 HY20 Group continues to support Asia strategic growth Hold co. cash period start 4,121 2,207 Net remittance to Group Jackson is not currently expected to pay regular Asia excluding ICICI Pruden
Slide 35: Path to full separation and divestment of Jackson
Path to full separation and divestment of Jackson over time Next steps and capital structure considerations Path to full separation and divestment of Jackson (commence separation by way of a minority IPO1) Debt Pre Athene management separation Minority IPO1,2 Sell-downs1 transactions (US) return of
Slide 36: Driving compounding capital generation
Driving compounding capital generation Reinvestment of capital into the Asia business Capital management framework Rebalancing of capital allocation Applies internal hurdle rates to organic and inorganic from dividends to reinvestment investment opportunities ensuring attractive risk adjusted Discip
Slide 37: New dividend policy
New dividend policy New dividend policy aligned with revised Group strategy New dividend policy To apply with immediate effect Reflecting the Group’s capital allocation priorities, dividends will be determined primarily based on Asia’s 2020 total dividend: c16.10 cents per share operating capital ge
Slide 38: Key take-aways
Group Key take-aways Strategic priority: drive Asia growth Clear path to full US separation and divestment over time COVID-19 acting to disrupt new sales, in-force business resilient, quality maintained Robust local and group capital positions, capital generation in-line with expectations New divide
Slide 39: Mike Wells, Group CEO
Mike Wells Group CEO 2020 HALF YEAR RESULTS 39
Slide 40: Post-separation investment case
Group Post-separation investment case Key attributes Attractive shareholder proposition Enduring, multi-decade structural 1 growth levers Diversification across Asian 2 markets Focus on capital- Resilient, predictable & Leadership positions in chosen 3 distribution channels & products efficient H&P
Slide 41: Prudential plc 2020 Half Year Results
Prudential plc 2020 Half Year Results 11 August 2020 41
Slide 42: Additional Information contents
Contents: Asia 43 Africa 82 Additional Information US 85 2020 Half Year Results Group 93 2020 HALF YEAR RESULTS 42
Slide 43: Asia Section
Asia Section 2020 HALF YEAR RESULTS 43
Slide 44: Asia key features
Asia Key features Asia financial performance, $m Leading pan-regional franchise HY20 HY19 % FY19 CER7 CER7 Top 3 position in 9 of 13 life markets1 APE 1,665 2,540 (34)% 5,130 NBP 912 1,673 (45)% 3,515 Market leading pan regional Asian Retail Fund Manager2 IFRS operating profit5 1,733 1,526 14%
Slide 45: Asia content
Asia Content Context and HY20 performance Strategic priorities and progress Market updates Supporting our staff, customers and community Capital, balance sheet and earnings 2020 HALF YEAR RESULTS 45
Slide 46: Capturing structural opportunities with quality platform
Asia Capturing structural opportunities with quality platform and new capabilities Capturing High Resilience Amplifying Accelerating structural quality through capabilities to Pulse consumer demand business diversified meet customer rollout for H&P model platform demand 2020 HALF YEAR RESULTS 46
Slide 47: Operating environment
Operating environment Several markets in restart mode with planned easing measures Restriction measures & timeline Jan Feb Mar Apr May Jun Jul Aug Current status of measures Easing measures; internal travel and business activity resumed nationwide from China 26 March with strict measures in place to
Slide 48: Capturing structural consumer demand for H&P
Asia Capturing structural consumer demand for H&P Demand for insurance reinforced1 Shift towards H&P Asia Pacific China 7 markets with higher H&P APE mix in HY20, led by (33)% 46% searched for new policies 73% searched for new policies India (+14ppts to 27%), Singapore (+8ppts to 29%) 32% bought a n
Slide 49: Growth, diversification and resilience
Asia Growth, diversification and resilience Regular premium (% of APE) Renewal premiums ($m)2 IFRS operating profit, $m +6% Recurring premium 91% Sticky 9,702 Hong Kong +21% business model business 9,115 Singapore +20% HY19 HY20 HY20 Product mix (% of NBP) Insurance margin ($m)2 Indonesia (1)% 1,733
Slide 50: Resilience through a diversified platform
Asia Resilience through a diversified platform Asia ex-HK APE Performance highlights1 As % of prior year 100% • Five markets with increased sales • Double-digit APE growth in Indonesia (+42%), Thailand (+33%), and 1Q20 Singapore (+10%) 111% 87% 90% 101% • Asia ex-HK NBP up +17% underpinned by double
Slide 51: Amplifying capabilities to meet customer demand
Asia Amplifying capabilities to meet customer demand New virtual onboarding Agent capacity and quality Strengthening core capabilities • Virtual sales introduced in all markets1 • Virtual end-to-end agency management • 15-year strategic partnership with TMB ~90%2 of products (based on APE) in all ma
Slide 52: Accelerating Pulse roll out
Asia Accelerating Pulse roll out Engage Onboard Purchase M • Pulse by Prudential live in 11 • Launched 8 digital products including • PRULeads: converting downloads markets; 10 languages Dengue fever, Credit Shield, Personal into leads Accident, Coronavirus cover • 21 new digital partnerships secure
Slide 53: Asia content
Asia Content Context and HY20 performance Strategic priorities and progress Market updates Supporting our staff, customers and community Capital, balance sheet and earnings 2020 HALF YEAR RESULTS 53
Slide 54: Significant long-term growth opportunity
Asia Significant long-term growth opportunity- $1.3tn of expected premiums2 income Majoritysolutions of Asian markets remain below the inflection point, US$10k to US$20k GDP per capita, for life insurance penetration Our Asia Market profile1 Future sources of growth 1.8x 4.5 Growth contribution 2.5
Slide 55: Leading pan-regional franchise
Asia Leading pan-regional franchise China9 Pru Asia footprint1 Japan >600k Agents 1,434m 127m >300 India10 Life & asset management Korea Taiwan distribution partnerships 1,366m Top 3 Top 10 51m 24m 1.4m New Pru life Myanmar customers11 Hong Kong Top 3 54m Laos 7m Top 3 Top 10 Position
Slide 56: Strategic priorities
Asia Strategic priorities Strategic priorities Create ‘best-in-class’ • Broaden flagship product range • Narrow mortality protection gap Enhance the core health capability • Expand distribution and drive efficiency • Grow participation in health and medical segments • Collaborate with non-traditiona
Slide 57: Clear strategic priorities and quality execution
Asia Clear strategic priorities and quality execution Strategic priorities • Leader in banca1 – enhanced with TMB banca agreement; access to >19,000 bank branches Enhance the core • 90% of products capable of virtual sales; 38% of agency cases sold virtually in 2Q • Agent management moving online, s
Slide 58: Enhance the Core
Enhance the Core Diversifying into new distribution partners, customer segments and products Channels Core products Customer segment New distribution, product & customer segments High Net Worth NEW Estate Robo- • OPUS in Singapore APE of $25m planning investing • 101 Private Wealth consultants Consu
Slide 59: Accelerate Pulse Buildout
Accelerate Pulse Buildout Pulse is broadening our customer base, gathering new data and converting into sales Pulse: First-of-its-kind, all-in-one and AI-powered app Broadening customer base Majority of Pulse users are in 18-35 age group 35% 30% 27% Pulse services usage • >6 million Pulse downloads
Slide 60: Accelerate Eastspring
Accelerate Eastspring Eastspring is a unique, structurally advantaged platform Overview Cyclical business but structurally advantaged due to reliable and consistent life business flows5 Unique platform • Top 10 in 7 out of 11 markets CAGR: ($ bn, AER) 14% 241 • Asia’s largest retail asset manager (e
Slide 61: Expand Presence in China
Expand Presence in China Significant growth potential from higher penetration Citic‐Pru footprint (Dec’19) NBP3 (US$’m, 100% basis) Access to2 2019 524 17 Straight ‘A’ score for CBIRC Integrated Risk Rating since 2016 (only JV) 2015 84 Top 10 ranked Chinese Life Insurers by 83% 77% 83% California St
Slide 62: Asia content
Asia Content Context and HY20 performance Strategic priorities and progress Market updates Supporting our staff, customers and community Capital, balance sheet and earnings 2020 HALF YEAR RESULTS 62
Slide 63: Market highlights – China
Asia Market highlights – China Intact structural demand drivers Expansion of our platform ` Execution7 • Faster growth in GDP than advanced economies1 • Operationalised Shaanxi province • Presence in 20 branches, 97 cities (+3) and 234 APE • Rapid expansion of the middle class; significant (XX% indi
Slide 64: Market highlights – Hong Kong
Asia Market highlights – Hong Kong Intact structural demand drivers Enhancing our distribution capabilities ` Domestic Mainland Execution5 • Ageing population • 69% of MCH customers intend • Virtual sales of all products enabled in agency and (XX% indicates 2020 sales as a proportion of 2019 levels)
Slide 65: Hong Kong: Intact demand drivers for mainland Chinese customers
Asia Hong Kong: Intact demand drivers for mainland Chinese customers MCH visitors’ intention for financial products MCH visitors’ preference for medical treatment MCH visitors’ preference for medical treatment Note: Based on our 2Q20 MCH Sentiment Tracker conducted through online survey using Nielse
Slide 66: Hong Kong: Resilient earnings
Asia Hong Kong: Resilient earnings APE1, $bn Life weighted premium income1, $bn Life IFRS operating profit1, $m +20% 16x 21% CAGR CAGR +143% 18% 11% 24% New business 734 11.5 23% Renewal premium 412 +32% 5.3 +66% 0.4 0.7 54 HY20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 67: Market APE sales trends
Asia Market APE sales trends Markets returned to YoY growth in 2Q Markets with “April low” Markets with “May low” Markets (Thailand, Taiwan and Vietnam) where lockdown Markets (Malaysia, India, the Philippines, Cambodia and Laos) Markets (Indonesia and Singapore) where lockdown measures were introdu
Slide 68: Markets returned to year-on-year growth
Asia Markets returned to year-on-year growth ` ` ` Thailand Vietnam Taiwan Partnership momentum Enhancing distribution capabilities Profitable growth • 15-year exclusive partnership with TMB • SeABank partnership launched in April • Shift to higher-margin Par products (APE up +81%) • 22% increase in
Slide 69: Markets with April low
Asia Markets with “April low” ` ` ` India Malaysia Philippines Focus on quality Continued to focus on quality Enhancing distribution capabilities • H&P APE +29%, sales mix +14ppts to 27% • 96% of APE from regular premiums • Agent count up 7%3 to 34k • Persistency at 83%, one of the best in industry4
Slide 70: Markets with May low
Asia Markets with “May low” ` ` Indonesia # 1 Singapore # 1 Enhancing & diversifying distribution Overall & Continued focus on quality Overall regular • Agent recruits2 +50%; agent count +13% to 285k agency3,4 premium sales3,5 • H&P APE +6%, sales mix +8ppts to 29% • # of MDRT +48% to >1,000; larges
Slide 71: Indonesia: Broadening our capabilities
Asia Indonesia: Broadening our capabilities Intact structural drivers & premium franchise Enhancing our distribution capabilities ` • Rapid expansion of the middle class; significant 1 Agency segmentation strategy 2 3 Execution protection gap Core agency New / Rookie agents MDRT / Elite leaders Mark
Slide 72: Asia content
Asia Content Context and HY20 performance Strategic priorities and progress Market updates Supporting our staff, customers and community Capital, balance sheet and earnings 2020 HALF YEAR RESULTS 72
Slide 73: Stakeholder delivery during the COVID-19 affected period
Asia Stakeholder delivery during the COVID-19 affected period • COVID-19 protection Customers • Acceleration of claims payment • Flexible premium payment options • Flexible “work at home” support Staff & • Digital tool roll out agents • Online training & education programme • Launched COVID-19 Relie
Slide 74: Continuous investment in our community
Asia Continuous investment in our community ` China Hong Kong Launched Prudential Covid-19 Relief Fund of $2.5 million • RMB15m donation from Life and Asset • Free Covid-19 coverage to HK residences: available Management businesses to the first 500,000 people through Pulse sign-up • RMB43k donation
Slide 75: Asia content
Asia Content Context and HY20 performance Strategic priorities and progress Market updates Supporting our staff, customers and community Capital, balance sheet and earnings 2020 HALF YEAR RESULTS 75
Slide 76: Robust capital position
Asia Robust capital position Shareholder solvency1 ($bn) Total company solvency1,2 ($bn) 253% 308% 333% 312% 6.5 19.6 18.8 4.7 3.0 3.2 8.0 9.4 YE19 HY20 YE19 HY20 Minimum capital requirement LCSM surplus Minimum capital requirement LCSM surplus 1. Estimated position at 30 June 2020. Based on Group M
Slide 77: Asia invested assets: asset portfolio
Asia invested assets Asset portfolio Breakdown of Asia invested assets1, HY20 $bn Shareholder debt portfolio, HY20 $bn Shareholder- Holding by issuer Par funds Unit linked Total backed 2 Portfolio No. Av. Max <BBB5 $bn Issuers4 $m $m Debt 52.7 5.3 24.1 82.1 Sovereign debt 11.4 78 146.2 2,788.7 11.8%
Slide 78: Shareholder-backed debt exposures
Asia invested assets Shareholder-backed debt exposures By geography1, at 30 June 2020 $bn By credit rating1,2, at 30 June 2020 $bn Sovereign debt Other government bonds Corporate bonds 5% 21% By market: 8% Rating: 24% 15% United States AAA 41% Thailand 30% 35% AA 14% Vietnam A Other BBB 18% <BBB 24%
Slide 79: Shareholder-backed debt exposures
Asia invested assets Shareholder-backed debt exposures By asset type1, 30 June 2020 By sector1,2, 30 June 2020 Corporate debt exposures Government 2% Diversified Basic Technology 3% Materials 7% Financial 3% 35% Corporate Other Bonds Sovereign 2% 47% 47% Consumer, Cyclical 4% Industrial 6% Energy 9%
Slide 80: PCA value in Prudential joint ventures
Asia PCA value in Prudential joint ventures Partner CITIC PRUDENTIAL Prudential Share 22% 50% Market Value $ 7.1 bn ₹ 662.9bn1,6 N/A EV $ 3.1 bn ₹ 230.30bn2,6 Not disclosed IFRS NAV $ 1.0 bn ₹ 72.12bn2,6 Not disclosed GWP $ 4.5 bn ₹ 334.31bn4,6 $ 1.8 bn RMB 12.7 bn3,6 Pre-tax operating profit $ 0.1
Slide 81: Quality execution: consistent growth across cycles
Asia Quality execution: Consistent and resilient growth across cycles IFRS operating profit1, $m 24% CAGR • Asian Financial • 9-11 Terrorist Attack • China & India grow • Global Financial • Eurozone slowdown • Further US • Brexit (2016) • Lower interest rates (2019) Crisis (1997- (2001) as world Fin
Slide 82: Africa Section
Africa Section 2020 HALF YEAR RESULTS 82
Slide 83: Africa regional footprint
Africa Regional footprint Africa opportunity Our timeline Accomplishments Rapid population growth1 1.3 bn 2.3 bn 100% owned Joint Ventures 1,000,000+ customers 5 2019 2045 Moving from 17% of world pop to 24% Ghana 2014 Acquisition of Express Life ~10,000 agents 2015: Distribution partnership with So
Slide 84: Africa HY20 business highlights
Africa HY20 Business highlights $54 million of APE sales Agency Bancassurance +102% ~10,000 agents +73% APE sales growth Distribution +59% APE sales 4 countries with Optimising APE growth1 growth MDRT agents strategic partnerships COVID-19 cover for all customers Mobile policies in Nigeria Products
Slide 85: US Section
US Section 2020 HALF YEAR RESULTS 85
Slide 86: US key features
US Key features US financial performance, $m Leading position in the annuity industry1 HY20 HY19 % FY19 Best in class cost base3 & industry leading platform4 APE 979 1,075 (9)% 2,223 NBP 248 450 (45)% 883 Successful track record of risk management IFRS operating profit 1,266 1,572 (19)% 3,070
Slide 87: Sales developments
US Sales developments Sales and deposits, $bn Total advisory sales, $m VA % of retail sales 89% 79% 65% 70% 80% 95% VA % of total sales 68% 66% 61% 70% 63% 95% 6.2 6.3 5.7 5.3 274 5.0 0.4 1.3 248 251 0.9 2.0 206 62 195 1.2 1.0 1.6 1.0 3.5 182 58 56 4 0.4 0.2 13 43 3.8 3.8 4.0 190 213 195 191 3.5 3.7
Slide 88: Unhedged economic profile of GMWB guarantees
US Unhedged economic profile of GMWB guarantees Jackson unhedged GMWB cash flow exposure, 30 June 2020 2020 HALF YEAR RESULTS 88
Slide 89: Transactions with Athene
US Transactions with Athene 1. ~90%point increase in JNL’s3 RBC ratio, increased strategic flexibility 2. Lower credit exposure Statutory (US) LCSM (Group) IFRS (Group) EEV (Group) +69%p to RBC +25%p to LCSM shareholder ratio IFRS pre tax: $846m EEV profit: $(423)m Reinsurance1 +$0.8bn to stat. surp
Slide 90: US invested assets: asset portfolio
US invested assets Asset portfolio Breakdown of US invested assets 1, HY20 $bn Shareholder debt portfolio, HY20 Holding by issuer Shareholder-backed 2 Portfolio No. Av. Max 39.0 <BBB7 Debt $bn Issuers6 $m $m Equity 0.3 Sovereign debt 4 5.4 8 675.0 5,354.2 0.0% Other debt 32.4 1,132 28.6 228.2 2.8% M
Slide 91: Shareholder-backed debt exposures by credit rating
US invested assets Shareholder-backed debt exposures by credit rating1,2 Other government bonds Corporate debt3 Asset backed securities 3% 1% 4% 5% 6% 16% 39% Rating: AAA 17% AA 50% 42% A 6% 66% BBB <BBB 45% Total $1bn Total $28bn Total $3bn 1. Totals may not cast as a result of rounding 2. Based on
Slide 92: Shareholder-backed debt exposures
US invested assets Shareholder-backed debt exposures By asset type1,2, 30 Jun 2020 By sector1,2,3, 30 Jun 2020 Corporate debt portfolio4 Corporate debt exposures Investment grade Technology • Significant weighting towards investment grade Quasi 5% − Investment grade is 97% of corporate debt Sovereig
Slide 93: Group Section
Group Section 2020 HALF YEAR RESULTS 93
Slide 94: Medium term bond maturity profile
Group Medium term bond maturity profile Balanced call date/maturity profile EEV, IFRS Equity & Debt at amortised cost, $bn (As at 30 Jun 2020) Facilitates group debt management Prudential plc: debt maturity schedule2, 30 June 2020 Maturity Next Call Date Callable Currency Coupon Amount (m) Type 4.6
Slide 95: Capital generation
Capital generation Comparison of Group LCSM with EEV Free Surplus generation HY20 movement in estimated LCSM capital surplus1, $bn HY20 movement in EEV free surplus5,6, $bn Required capital = Group Minimum Capital Requirement (GMCR) Required capital set to satisfy regulatory constraints 31 December
Slide 96: Prudential plc 2020 Half Year Results
Prudential plc 2020 Half Year Results 11 August 2020 96