Slide 1: Prudential plc 2017 Full Year Results
Prudential plc 2017 Full Year Results 14 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 Introduction Paul Manduca, Group Chairman Headline Results & Strategic Update Mike Wells, Group CEO FY17 Financial Performance Mark FitzPatrick, Group CFO Wrap-Up Mike Wells, Group CEO 2017 FULL YEAR RESULTS 3
Slide 4: Agenda
Agenda Introduction Paul Manduca, Group Chairman Headline Results & Strategic Update Mike Wells, Group CEO FY17 Financial Performance Mark FitzPatrick, Group CFO Wrap-Up Mike Wells, Group CEO 2017 FULL YEAR RESULTS 4
Slide 5: Group 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 6: 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 P At least 15% CAGR P >£10bn P XX As reported XX
Slide 7: Asia: 2017 objectives achieved, improving quality and positive momentum
Group 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 bas
Slide 8: 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% 2017 2007 International focus Leading Pan-regional Asia business delivering expansive growth UK centric with 15m Life customers E
Slide 9: 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 9
Slide 10: 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 11: 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 P better placed to capture distinct opportunity sets £ 7 tn 2015-16 Instit
Slide 12: Attracting strong net flows
M&G Prudential Attracting strong net flows M&G Prudential PruFund growth investment Wholesale/direct: Funds under management (£bn) performance3, % Net flows £11bn +80% **RECORD YEAR ** 64% wholesale and direct funds above median2 Net flows £9bn Institutional: **RECORD YEAR ** +53% ABI sector Net flo
Slide 13: Merger & transformation progress
M&G Prudential Merger & transformation progress August 2017 Merger announced Merger sprints and transformation to deliver £145m of shareholder cost reduction by 2022 Shared services combination UK In-Force Savings Modernisation New partnership announced with TCS – capability and experience upgrade f
Slide 14: 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 structure3 7.9 £12bn UK shareholder annuities transferred to Rothesay Life, reinsurance arrangement signed Capital efficient 5.7 trajectory Part VII legal o
Slide 15: A pre-eminent global insurer, capturing structural growth
Prudential plc A pre-eminent global insurer, capturing structural growth Complementary operating markets, with Asian growth P ability to leverage experience and expertise Better +1 million alignment Diversification across risk characteristics - People entering the working population P mortality, spr
Slide 16: Asia: High quality, diversified growth
Asia High quality, 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 % NBP IFRS contr
Slide 17: Asia: 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 2017. Navigating the New Client Lan
Slide 18: 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 19: US: Delivery and resilience
US Delivery and resilience 438% 417% 483% 429% 423% 450% 456% 481% 485% 409% RBC Ratio RBC remains resilient Cash remitted > 400% $4.4bn Since 2008 Tax reform provides long- term economic tailwind Protected against downside risks Cumulative cash remittances $bn 2008 2009 2010 2011 2012 2013 2014 201
Slide 20: Long-term track record
Group Long-term track record IFRS operating profit1,2, £m New business profit1,2, £m Free surplus generation1,2,3,4, £m 4.4x 5.8x 5.5x 4,699 3,616 3,640 CAGR CAGR CAGR +14% +17% +17% 1,077 623 656 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 21: Delivering cash
Group Delivering cash Dividend, pence per share +8.0% 47.00 Long-term track record 43.50 £ 8.0bn Total dividends to shareholders since 20061 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 +5.0% +5.0% +5.0% +20.2% +5.6% +15.9% +15.0% +10.0% +5.0%2 +12.2% 1. Amounts paid between 2006 and
Slide 22: Agenda
Agenda Introduction Paul Manduca, Group Chairman Headline Results & Strategic Update Mike Wells, Group CEO FY17 Financial Performance Mark FitzPatrick, Group CFO Wrap-Up Mike Wells, Group CEO 2017 FULL YEAR RESULTS 22
Slide 23: Key financial highlights
Group FY17 results Key financial highlights FY17 vs FY16 £m FY16 FY17 AER1 CER1 IFRS operating profit 4,256 4,699 +10% +6% Growth New business profit 3,088 3,616 +17% +12% EEV operating profit 5,497 6,598 +20% +15% Free surplus generation 3,566 3,640 +2% (1)% Cash Remittances 1,718 1,788 +4% n/a Ord
Slide 24: Key drivers of earnings momentum
Group IFRS Key drivers of earnings momentum Group IFRS operating profit Group IFRS operating profit £m £m Change FY16 (CER) 4,429 FY161 FY17 (CER) Asia 255 Asia 1,644 1,975 +15% US fee business3 187 UK&E core life and 71 US 2,048 2,224 +3% asset management UK&E other4 54 UK&E 1,253 1,378 +10% US oth
Slide 25: Asia IFRS: Strong and consistent growth
Asia IFRS Strong and consistent growth Life Asset management IFRS operating profit IFRS operating profit £m £m +15% +18% Renewal Average premiums +22% AUM1 +20% £11.6bn £128bn 1,571 1,799 176 Insurance 149 External net income +21% inflows £3.1bn £1.3bn vs £1.8bn FY16 FY17 FY16 FY17 2016 (CER) (CER)
Slide 26: US IFRS: Driven by fee earnings from VA business
US IFRS Driven by fee earnings from VA business Fee-based1 Spread-based2 IFRS operating profit IFRS operating profit £m £m +12% Av. separate account AUM +17% (6)% £125bn Spread (24)bp 1,601 1,788 margin Fee 339 margin (3)bp 317 193bp 187bp FY16 FY17 FY16 FY17 (CER) (CER) Higher separate account as
Slide 27: Impact of US tax reform
US Impact of US tax reform Net positive long-term impact Materially lower US corporate effective tax rate expected to enhance Jackson’s future earnings and capital generation from 2018 US effective tax rate expected to be c.18% compared to c.28% previously Group effective tax rate expected to
Slide 28: UK & Europe IFRS
UK & Europe IFRS Stable core life profits and strong asset management growth Insurance Asset management IFRS operating profit IFRS operating profit £m £m +6% +18% Core1 Average 828 878 earnings (1)% external AUM3 +15% £597m £144bn Other 227 281 With With profits External net 269 288 500 profits tran
Slide 29: Operating profit remains key driver of growth
Equity shareholders’ funds Operating profit remains key driver of growth IFRS IFRS EEV £m Pre-tax Post-tax Operating profit • Includes M&G Prudential merger and transformation costs of £44m Operating profit 4,699 6,598 • Debt costs up £65m due to debt issued in 2016 and FX effects Investment varianc
Slide 30: Focus on value driving higher quality new business
Group new business profit Focus on value driving higher quality new business New business profit, £m (CER) Group • Broad mix of growth in NBP across all businesses • Benefit from economic assumptions is minor given modest movement in yields over 2017 +12% 3,616 Asia1 3,221 342 +28% • Prioritisation
Slide 31: Group free surplus generation
Group free surplus generation Growing contributions from in-force life portfolios and asset management Operating free surplus generation, £m (CER) +9% Variances (1)% £m FY16 FY17 vs FY16 3,995 3,770 US reserve financing2 247 - 3,640 Other variances 632 635 UK&E 1,122 (913) (942) 3,082 635 (77) UK&E
Slide 32: Holding company cash
Holding company cash Growing contributions to cash from business units Movement in life free surplus, £m Movement in holding company cash, £m FY16 FY17 Asia 516 645 US 420 475 (913) UK&E 590 643 Other 192 25 3,417 (265) (1,361) 427 1,361 (470) (1,159) 6,242 5,364 (521) 2,626 2,264 1 Jan 17 Expected
Slide 33: Strong solvency capital position
Solvency II Strong solvency capital position Group Shareholder Solvency II capital position1, £bn Local solvency capital position 2016 2017 Surplus £12.5bn £13.3bn Solvency II 201% 202% Asia4 251% 244% cover Local regulatory basis US5 485% 409% Risk Based Capital excl Permitted Practice 524% 454% 24
Slide 34: Underpinned by organic capital generation
Solvency II Underpinned by organic capital generation FY17 movement in Solvency II capital1, £bn Solvency II surplus estimated sensitivities1,3,5 Impact on SII Impact on coverage ratio solvency 31 December 20162 12.5 ratio FY17 estimated surplus £13.3bn 202% Operating experience 3.2 ~23pts Managemen
Slide 35: Increasing scale and quality of long-term value drivers
Financial profile Increasing scale and quality of long-term value drivers Asia US UK&E Group Renewal premiums1, £bn Variable annuity Assets under management2, £bn Embedded value, £bn separate account assets, $bn 69% 94% Insurance income Regular % IFRS operating premium income3 % APE 177 44.7 351 11.
Slide 36: UK annuity sale: De-risking shareholder annuity exposure
UK annuity sale De-risking shareholder annuity exposure Estimated proforma shareholder Solvency II impact on PAC Ltd1 UK IFRS annuity liabilities Own Funds £0.2bn • Premium > SII BEL Sale of £12.0bn UK annuity liabilities to Rothesay SCR £1.3bn • Portfolio de-risking 37% of UK shareholder backed
Slide 37: M&G Prudential demerger: Separation process – next steps
M&G Prudential demerger Separation process – next steps Unwind inter-group Shareholder linkages and Debt including Hong- regulatory management Kong transfer approvals P Identify operating Finalise and implement Part VII structure to operating models transfer of capture long term UK annuity growth op
Slide 38: FY17 results summary
FY17 results Summary Continued delivery of growth and cash Sustained momentum in earnings drivers underpins positive outlook Well capitalised with defensive balance sheet 8% increase in 2017 full year ordinary dividend Demerging M&G Prudential from a position of financial strength 2017 FULL YEAR RES
Slide 39: Agenda
Agenda Introduction Paul Manduca, Group Chairman Headline Results & Strategic Update Mike Wells, Group CEO FY17 Financial Performance Mark FitzPatrick, Group CFO Wrap-Up Mike Wells, Group CEO 2017 FULL YEAR RESULTS 39
Slide 40: Wrap-up
Group Wrap-up Asia growth is broad based and high quality US continues to deliver, outperforming the peer group UK&E strong performance, underpinning rationale for capital efficient strategy Adapting structure to maximise the opportunity for our businesses 2017 FULL YEAR RESULTS 40
Slide 41: 2018 Investor Conference, Singapore
2018 Investor Conference, Singapore 14 - 15 November 2018 2017 FULL YEAR RESULTS 41
Slide 42: Appendix contents
US Jackson National Contents: Share information and contact details 43 Strategic overview and headline financials: Group 44 Asia 51 US 56 Appendix Africa 64 UK 65 2017 Full Year Results Solvency II 67 Invested asset exposures 70 Currency translation sensitivities 74 42
Slide 43: Share information and contact details
Prudential Share information and contact details Share information Contact information London Stock Exchange: PRU.L Shareholder enquiries Institutional Analyst and Investor enquiries Hong Kong Stock Exchange: 2378 For enquiries about shareholdings, Tel +44 (0)20 7548 3300 New York Stock Exchange – P
Slide 44: Group history
Prudential Group history Providing financial security since 1848 Life insurance customers worldwide 26 m Total funds under management £ 669 bn Prudential enters its first African life insurance market 2014 The first UK life insurer to enter the China market 2000 Prudential acquires M&G , founded in
Slide 45: New business capital allocation and returns
Group New business capital allocation and returns New business strain1,3, £m New business profit2,3, £m 3,616 342 +348% 3,088 268 2,609 906 +19% 318 790 903 913 2,057 2,104 767 1,776 237 259 718 129 175 809 638 624 598 623 583 65 1,415 1,506 241 UK 293 539 298 195 706 694 103 65 45 29 254 1,109 266
Slide 46: Group strategy
Prudential Group strategy Clear strategy Strategic priorities 2017 FULL YEAR RESULTS 46
Slide 47: Sources of earnings
Group Sources of earnings Sources of IFRS operating income1,2,3,4, £m 8,136 7,386 6,814 1,108 6,140 79% 5,762 1,171 1,153 4,891 2,271 1,129 4,296 1,071 1,991 3,891 1,671 1,061 1,393 3,019 1,329 1,578 2,743 1,049 998 1,000 1,511 1,564 722 1,497 750 574 1,466 537 1,242 294 431 1,130 2,603 1,052 2,175
Slide 48: Free surplus generation
Group Free surplus generation Free surplus and dividend, £m 4.0x Net free surplus 20% 20% 913 903 19% 718 19% 20% 583 23% 623 21% 27% 4,553 598 4,469 539 31% 624 3,743 3,640 3,566 638 49% 3,136 3,040 3,025 33% 517 2,623 602 2,553 2,525 2,417 2,295 767 449 2,088 445 2,025 1,986 463 256 1,671 413 1,56
Slide 49: Cash remittances to Group
Group Cash remittances to Group Business unit net remittances2, £m 1,788 1,718 25 1,625 1,482 85 192 1,341 57 643 1,200 57 1,105 603 590 91 610 935 67 590 52 475 519 688 510 470 420 515 82 570 415 294 61 249 527 322 305 645 80 4671 516 341 400 400 144 39 233 206 5 40 2008 2009 2010 2011 2012 2013 20
Slide 50: Dividend policy
Group Dividend policy The Board will maintain its focus on delivering a growing ordinary dividend. In line with this policy, Prudential aims to grow the ordinary dividend by 5 per cent per annum. The potential for additional distributions will continue to be determined after taking into account the
Slide 51: Asia: Regional footprint
Asia Regional footprint Access to: 15m 3.3billion Pru life customers Population Top 3 Position in 9 of 12 life markets1 #1 Asian Retail Fund Manager As at June 20174 1. Source: Based on formal (competitors’ results release, local regulators and insurance associations) and informal (industry exchange
Slide 52: Asia: Favourable dynamics
Asia Favourable dynamics Population2 Market GDP1 GDP (m) penetration2 ($bn) growth1 (%) (%) Cambodia (2013) 16 0.1% 21 6.9% China (2000) 1,383 2.3% 11,795 6.6% Hong Kong (1964) 7 16.2% 332 2.4% India (2000) 1,329 2.7% 2,454 7.2% Indonesia (1995) 261 1.6% 1,021 5.1% Laos (2015) 7 - 15 6.8% Malaysia (
Slide 53: Asia: Capability set
Asia Capability set 1. Top 3 in 9 of 12 countries Source: Based on formal (Competitors’ results release, local regulators and insurance associations) and informal (industry exchange) market share data. Ranking based on new business (APE or weighted FYP depending on the availability of data). 2017 FU
Slide 54: Asia: Product mix
Asia Product mix Asia Life APE sales by product1, % High quality, regular premium focus Life weighted premium income2,3, £bn CER 2 3 2 1 3 2 2 3 4 5 3 4 5 6 7 9 8 8 8 6 5 5 20 18 20 26 31 29 32 31 36 35 37 35 7 10 36 39 40 40 48 46 52 59 22 56 53 29 28 29 27 30 11.6 32 31 9.5 33 33 31 71 69 31 30 28
Slide 55: Asia: Eastspring Investments
Asia Eastspring Investments Funds under management1,3, £bn Capabilities 2012 – 2017 Growth 2.4x Equity 139 Operating in 3.6x 10 Asian markets 118 18 Quantitative solutions 14 Alternatives2 89 2.1x Ability to work closely 77 65 with our clients Fixed income 11 8 58 58 60 Global Asset Allocation 5 5 4
Slide 56: US retirement opportunity
US US retirement opportunity Retirement wave Under-saved Baby Boomer population by age1 Median Net Worth2 ($ thousands) 5.0 Baby Boom Generation (1946-1964) 4.5 ~75 million 187.3 Jackson National Life Turned 65 in 2016 4.0 124.2 3.5 3.0 2.5 2.0 Market Leading retirement income provider 65 60 55 45-5
Slide 57: Segmentation of opportunity
US Segmentation of opportunity US advisor distributed assets1, 15.2 US$tn Total advisor distributed assets Ages - All Investable assets: Investable Assets – All levels 5.4 Includes (financial assets): Mutual funds Checking accounts Managed accounts Expanded opportunity Ages 40 – 80 Def
Slide 58: Opportunity by channel
US Opportunity by channel Advisor count US advisor Distributed Assets1 (US$tn) Assets (‘000) 5 year CAGR 47.0 Wirehouses 5.4% Top 5 ranking in all target variable annuity distribution channels2 40.4 National and regional B/D 7.9% 37.0 Independent RIA 11.7% 627 Broker-dealer selling agreements 60.1 I
Slide 59: Variable annuity volumes
US Variable annuity volumes Jackson VA sales volumes by quarter, US$bn ‘Features War’ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6.6 6.4 6.4 6.0 5.7 5.7 5.7 1.4 5.5 1.1 1.4 5.3 5.3 0.4 5.2 5.2 5.0 1.3 0.2 1.1 1.3 1.1 4.7 4.6 4.6 4.4 4.4 4.6 1.0 1.1 1.0 4.3 4.3 4.3 4.3 4.5 4.5 4.2 4.2 3.8
Slide 60: Asset growth
US Asset growth Jackson growth in statutory admitted assets, US$bn 241.2 215.2 199.1 189.4 170.9 142.8 176.6 148.8 134.2 127.5 107.6 108.8 97.5 80.1 76.7 81.0 69.3 70.9 58.8 62.8 48.9 50.9 55.6 33.3 46.6 22.3 30.0 20.9 40.2 43.0 14.7 7.1 10.4 5.1 4.4 5.6 66.4 62.7 62.1 61.9 64.9 64.6 42.2 43.8 45.2
Slide 61: GMWB policyholder behaviour sensitivities
US GMWB policyholder behaviour sensitivities Jackson GMWB policyholder behaviour sensitivities, 31 December 2017 US$bn 8 Policyholder behaviour experience is continuously monitored and a comprehensive study is conducted on an annual basis. 7 For IFRS and Statutory accounting purposes, assumption
Slide 62: Statutory capital
US Statutory capital Jackson total adjusted capital US$bn Hedging programme continues to effectively mitigate risks 31 December 2016 5.3 Earned guarantee fees of 126 bps per annum Operating profit 1.1 Equity allocations remain below our 83% pricing assumption Dividend (0.6) Total adjusted capital ex
Slide 63: Unhedged economic profile of GMWB guarantees
US Unhedged economic profile of GMWB guarantees Jackson unhedged GMWB cash flow exposure, as at 31 December 2017 2017 FULL YEAR RESULTS 63
Slide 64: Africa: Regional footprint
Africa Regional footprint Ghana 2014 Acquisition of Express Life 1 billion people 2015: Distribution partnership with Societe Generale 2015: Distribution partnership with Fidelity Bank Population of Sub-Saharan Africa1 2016: Distribution partnership with CAL Bank Kenya 2014 Acquisition of Shield Ass
Slide 65: M&G Prudential market context
UK M&G Prudential Market Context1,2,3 Established International asset manager with more than 85 1931 years’ experience Offer funds across diverse geographies, asset classes and investment strategies Acquired 1999 Provides investment strategies to meet Institutional clients’ long-term needs M&G Prude
Slide 66: Distribution mix
UK Distribution mix Distribution channel Channel Mix (UK Customers) (UK Customers, 31 December 2017) Other Direct 2% 1% Intermediated Advisers via platforms, 57% Individual funds within Wholesale wealth managers and adviser portfolios banks Wholesale 32% Customer solutions for Working directly with
Slide 67: Products and customers
UK Products and customers AUM Customers 31 December 2017 Top 5 in UK retail funds1 UK Active management offering with strong performance Investment Funds £36bn 186k Distributed through wholesale channels Range of consumer-focused retirement/savings wrappers PruFund investment proposition PruFund £36
Slide 68: Solvency II: Capital quality
Solvency II Capital quality Solvency II Own Funds by capital tier1,2,3 Share of Solvency II Own Funds by capital tier1,2,3 26.4 FY17, 100% = £26.4bn 0.0 Tier 3 – deferred tax Tier 3 5.0 Tier 2 – sub debt Tier 2 0.8 Tier 1 – hybrid capital 0% 19% Tier 1 = Tier 1 – core capital Tier 1 = 81% of Other T
Slide 69: SII treatment of hybrid capital classification
Solvency II SII treatment of hybrid capital classification Hybrid capital outstanding, 31 December 2017 Issue Date Amount Coupon Maturity Date 1st Call Date SII Classification 19-Dec-01 GBP 435m 6.125% 19-Dec-31 None Tier 2* 10-Jul-03 EUR 20m 20 yr CMS rate 10-Jul-23 None Tier 2* 30-Jul-04 USD 250m
Slide 70: Group asset portfolio
Invested assets Group asset portfolio Breakdown of invested assets1, FY17, £bn Shareholder debt portfolio, FY17, £bn Shareholder-backed Holding by issuer Portfolio No. Av. Max High yield % Total PAR Unit Asia US UK £bn issuers £m £m debt portfolio Group funds linked Life Life Life Other Total Debt 1
Slide 71: Shareholder total debt securities by credit rating
Invested assets Shareholder total debt securities By credit rating US UK Asia 4%5% 2% 14% 15% 7% 12% 18% 23% 40% 35% 30% 37% 33% 25% Rating: AAA AA Total £35bn Total £35bn Total £13bn A BBB <BBB Note: Pie charts exclude other operations totalling £2.3bn, of which 32% AAA, 55% AA, 8% A, 3% BBB and 2%
Slide 72: Shareholder total debt securities by asset type
Invested assets Shareholder total debt securities By asset type US UK Asia Supranational CMBS ABS CMBS ABS ABS 0% Sovereign1 2% 1% RMBS 0% RMBS 0% CMBS 3% 12% Quasi 0% Supranational Supranational Sovereign 0% 5% 8% 0% Bonds RMBS 0% 2% Sovereign1 16% Other Public Sector Quasi Bonds Sovereign 1% Bonds
Slide 73: Shareholder backed corporate debt exposures by sector
Invested assets Shareholder backed corporate debt exposures By sector US UK Asia Consumer, Materials Cyclical Technology Diversified Technology 1% 1% Asset Backed Technology 4% 2% Materials Materials 1% Securities 2% 7% Other 1% Other 2% Financial Diversified 2% 6% 23% 2% Real Estate Communications
Slide 74: Currency mix: Translation sensitivities
Currency mix Translation sensitivities IFRS operating profit, £m New business profit, £m 2017 as 2017 as 4,699 US 3,616 US reported reported Asia Asia Impact of translating results (105) Impact of translating results (43) at 31 December 2017 spot at 31 December 2017 spot rate rate (60) (97) 2017 at