Slide 1: Prudential plc 2018 Half Year Results
Prudential plc 2018 Half Year Results 8 August 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: Mike Wells, Group Chief Executive
Mike Wells Group Chief Executive 3 2018 HALF YEAR RESULTS
Slide 4: Group headline results
Group Headline results Growth Cash Embedded value + 13% HY2018 New business profit vs £ 1.9bn HY2018 Net free surplus £ 47bn HY2018 Embedded value +6% vs HY2017 CER1 generation FY2017 AER2 Earnings Dividend Capital £ 2.4bn HY2018 IFRS operating profit + 8% Growth on prior year to 209% HY2018 Solvenc
Slide 5: Custodians of capital, active portfolio managers, focus on quality
Group Custodians of capital, active portfolio managers, focus on quality Active portfolio management Well positioned to deliver High quality resilient portfolio Group Asia UOB Recurring premiums2 US Realic Earnings quality1 31% US Elite Access Other 94% regular premium Thanachart Spread 7% 21% Enter
Slide 6: Separation process – next steps
Group Separation process – next steps Achieved to date Rating agency engagement Debt management EMTN Prospectus Bondholder engagement Finalise and implement operating models Established M&G Prudential Holdco Change in control processes progressing Unwind inter-group linkages including
Slide 7: M&G Prudential: a leading European savings and investments business
M&G Prudential A leading European Savings and Investments business Provider of differentiated investment solutions Leading capabilities in multi-asset and private assets Strong demographic demand drivers Ability to offer smoothed solutions using the Broad range of distribution channels wit
Slide 8: M&G Prudential merger and transformation
M&G Prudential Merger and transformation Ambition Progress to date 2021-22 Partnership with TCS In-force • Projected transfer of 6m policies Scalable, fast modernisation • Migration of legacy systems to and flexible a single platform Integrated functions • IT, Risk and Legal, HR functions Shared ser
Slide 9: M&G Prudential: cash generative earnings and capital profile
M&G Prudential Cash generative earnings supported by an attractive capital profile Stable in-force portfolio Well balanced high quality earnings Capital profile FUM, £bn HY18 IFRS operating profit2 Illustrative 339 342 299 With-profits With profits With-profits surplus surplus Asset mgt Equity Equit
Slide 10: M&G Prudential operational performance
M&G Prudential Operational performance Investment performance Funds under management, £bn 84% Net inflows PruFund Retail Institutional PruFund Performance1 + HY18 £bn £ 4.4bn £ 2.1bn £ 1.4bn (ABI comparator +53%1) M&G Retail Performance2 + 71 % 342 (% of AUM above median) 339 M&G Institutional Perfo
Slide 11: Prudential plc: a winning combination
Prudential plc A winning combination Opportunity Asia: Significant protection gap and investment need US: Largest life insurance market and 40m Americans about to reach retirement age Africa: One of the most underserved markets and >50% of global population growth to 2050 Diversification By stage of
Slide 12: Asia: high quality, diversified growth
Asia High quality, diversified growth Double-digit growth across Broad-based High quality key metrics New business 8 Countries with double digit growth H&P NBP1 + 19 % 11 New business profit1 + % profit Agency1 + 11 % H&P 70 % of NBP Banca1 + 14 % NBP Margin 65 % 14 IFRS operating profit1 + % IFRS >
Slide 13: Asia: significant long term growth opportunity
Asia Significant long term growth opportunity Demographics1,2 Health and Protection Gap4,5 Working age Over 65 Out of pocket healthcare spend Mortality gap +1m +450m 42% a month 696m $146tn 441m 244m Asia 12% $40tn 2.3bn 9% $9tn 2015 2.5bn Asia USUS UKUK 2005 2017 2030 2030 2015 2030 2050 Growth run
Slide 14: Asia: leading pan-regional franchise
Asia Leading pan-regional franchise Pru Asia footprint Life portfolio Asset Management 15m Top 3 China4 India5 Indonesia Philippines Pru life customers Position in 9 of 12 1.9% 2.7% 4 2.8% 1 1 1.2% 3 markets1 1,416m 1,354m 267m 107m Mutual fund Retail fund penetration9 manager ranking10 12% 1 Vietna
Slide 15: Asia: improving our capability set
Asia Improving our capability set Create ‘best-in-class’ Accelerate Expand presence in Enhance the core1 health capability1 Eastspring1 China1 PRODUCTS 6 new bancassurance H&P NBP up 19% Establishing WFOE and Granted licence to offer tax- deferred pension policies partnerships H&P 70% of total NBP a
Slide 16: US: differentiated product structure, health of portfolio
US Differentiated product structure, health of portfolio Superior product structure Product structure How we operate Healthy in-force portfolio Withdrawal benefit Price for economics Jackson unhedged GMWB cash flow exposure1, as at 30 June 2018 Investment freedom Fund choice due diligence
Slide 17: US: delivery and resilience
US Delivery and resilience Resilient capital and dividend upstream $ 4.9bn Cash remitted1 483 481 485 438 450 456 417 429 423 409 £ 1bn 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 RBC ratio (%) 1 Cumulative remittances to Group since 2008. 17 2018 HALF YEAR RESULTS
Slide 18: US: well positioned to capture significant opportunity
US Well positioned with capabilities to capture significant opportunity Retirement opportunity1,2 Leading cost efficient player $13tn (32bps vs industry average 61bps) Market leading fund performance (31 funds with 7% or greater 3 year annualised performance) $2tn VA assets Adviser distributed asset
Slide 19: Group long-term track record
Group Long-term track record IFRS operating profit1,2, £m New business profit1,2,3, £m Free surplus generation1,2,3,4, £m 4.4x 5.6x 3.9x 1,863 1,767 2,405 CAGR CAGR CAGR +14% +17% +13% 473 546 314 HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY HY18 HY HY07 HY07 2007 2008 2009 2
Slide 20: Mark FitzPatrick, Chief Financial Officer
Mark FitzPatrick Chief Financial Officer 2018 HALF YEAR RESULTS 20
Slide 21: Group HY18 results: key financial highlights
Group HY18 results Key financial highlights HY18 vs HY17 £m HY17 HY18 AER1 CER1 IFRS operating profit 2,358 2,405 +2% +9% Growth New business profit 1,689 1,767 +5% +13% EEV operating profit 2,870 3,443 +20% +29% Free surplus generation 1,840 1,863 +1% +6% Cash Remittances 1,230 1,111 (10)% n/a Firs
Slide 22: Key drivers of Group financial performance
Group Key drivers of Group financial performance Asia US M&GP Renewal premium income Statutory separate account assets Funds under management £bn $bn £bn +17% +10% +7% 6.1 179 342 5.2 162 320 HY17 HY18 30 June 30 June 30 June 30 June (CER) 2017 2018 20171 2018 High quality and compounding Consistent
Slide 23: Asia: key financials in HY18 – new business
Asia Key financials in HY18 – new business APE sales, £m New business profit, £m (4)% +11% 1,811 1,122 1,736 1,009 +6% Asia Asia other +1% other Hong +14% Hong (11)% Kong Kong HY17 HY18 HY17 HY18 (CER) (CER) • Continued focus on high quality growth with emphasis on H&P, • Ongoing prioritisation of h
Slide 24: Asia: key financials in HY18 – IFRS operating profit
Asia Key financials in HY18 – IFRS operating profit IFRS operating profit, £m Insurance margin Life • Broad growth, with 6 markets reporting £m double-digit growth +17% +14% • Benefits from increasing scale and 723 1,016 compounding effects 618 +13% • Increasing mix of high quality insurance 891 70%
Slide 25: US: key financials in HY18 – new business
US Key financials in HY18 – new business APE sales, £m New business profit, £m (7)% +17% 466 879 816 399 Other Wholesale (3)% VA HY17 HY18 HY17 HY18 (CER) (CER) • VA (ex-Elite Access) sales down 2% • NBP benefit from reduction in corporate tax rate vs HY17 • Continued positive momentum in advisory s
Slide 26: US: key financials in HY18 – IFRS operating profit
US Key financials in HY18 – IFRS operating profit IFRS operating profit, £m • Fee income growth of 13% on higher asset balances - Average separate account assets +15%, fee margin 182bp (HY17 185bp) - Offset by higher asset-based commission and lower level of positive DAC adjustments, which mainly re
Slide 27: M&G Prudential: key financials in HY18 – new business
M&G Prudential Key financials in HY18 – new business APE sales, £m New business profit, £m M&G external FUM, £bn +7% +1% +11% 770 721 +5% 179 1.4 (1.9) 165.5 Other 161 Income +16% 163.9 2.1 drawdown Individual pensions +13% Corporate pensions -% Bonds (5)% HY17 HY18 HY17 HY18 31 Dec 17 Direct & Inst
Slide 28: M&G Prudential: key financials in HY18 – IFRS operating profit
M&G Prudential Key financials in HY18 – IFRS operating profit IFRS operating profit, £m +4% vs HY17 Life 778 • PruFund contribution of £25m, up +25% • Reduction in annuity earnings in line with +5% 166 expectations following sale of £12bn annuity book 30 63 495 519 Annuity 98 Asset management / othe
Slide 29: Equity shareholders' funds
Equity shareholders’ funds Operating profit remains key driver of growth IFRS HY18, £m IFRS EEV Operating profit • Includes M&G Prudential merger and transformation costs of £41m Operating profit after tax 1,976 3,443 • Debt costs down £27m due to net debt redeemed in 2017 Loss on corporate actions
Slide 30: 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% +6% vs HY17 2,097 1,955 1,863 M&GP 570 (540) Variances include: (532) 1,557 350 (44) M&GP 564 1,423 • UK management actions of £54m and insurance reco
Slide 31: Holding company cash: strong liquidity position
Holding company cash Strong liquidity position Movement in life and asset management free surplus Movement in holding company cash £m £m HY17 HY18 Asia 350 391 (1,111) US 475 342 1,863 (620) M&GP 390 341 Other1 15 37 (270) 7,578 7,440 1,111 (219) (840) (106) 2,264 2,210 1 Jan 18 Op. free Remittances
Slide 32: Solvency II: robust solvency capital position
Solvency II Robust solvency capital position Group Shareholder Solvency II capital position1 HY18 movement in Solvency II capital1 £bn £bn Impact on SII coverage ratio Surplus £13.3bn £14.4bn Solvency II 31 December 20172 13.3 202% 209% cover Operating experience 1.7 ~9pts Management actions 0.1 Non
Slide 33: Asia: focus on high quality compounding growth
Asia Focus on high quality compounding growth Regular premium Retention rate1 Renewal premium income2, £bn (CER) 11.0 9.0 7.6 6.6 5.6 4.7 Regular premium Retention rate 4.1 94% of APE 95% HY18 HY18 2011 2012 2013 2014 2015 2016 2017 1 Stated for PCA excluding India. 2 All comparatives restated to ex
Slide 34: Asia: increasing scale and portfolio diversification
Asia Driving increasing scale and portfolio diversification Businesses with annual IFRS Sources of IFRS operating income operating profit >£75m Stock of expected future cash generation2, £bn 100% = £1,247m 8 37.8 Other1 >£150m 5.5 Insurance >£150m margin 5.4 Insurance >£150m 3.9 margin and 4 >£150m
Slide 35: US: disciplined management
US Disciplined management Jackson Jackson VA sales1 by year written, 2007 - 2018 Statutory capital % $bn 100% = total VA sales of $166bn HY18 movement in statutory Total Adjusted Capital HY ‘07 18 ‘08 • Underlying capital generation 2017 2009 supports dividend to Group (0.5) 4.6 0.8 2016 • Well prot
Slide 36: M&G Prudential: seasoned sources of earnings
M&G Prudential Seasoned sources of earnings Funds under management M&GP IFRS operating profit, £m FY17 IFRS operating profit adjusted to exclude £12bn UK annuity sale1 £bn 342 58 1,238 Recent growth driven by 276 European and Institutional External asset 166 Strong cash conversion management 447
Slide 37: M&G Prudential: capital structure expectations
M&G Prudential Capital structure expectations M&G Prudential Solvency II capital position at demerger Approach to capital management £bn Buffer over regulatory solvency requirements to meet risk appetite Cover Positive impact on Solvency II cover ratio 153% ratio Committed to strong credit ratin
Slide 38: HY18 results summary
HY18 results Summary Double-digit growth in Asia underpins Group result Continued growth in key drivers of financial performance Sustained focus on enhancing the quality of new business Strong capital formation and solvency position 2018 HALF YEAR RESULTS 38
Slide 39: Mike Wells, Group Chief Executive
Mike Wells Group Chief Executive 39 2018 HALF YEAR RESULTS
Slide 40: Group wrap up
Group Wrap up Delivery of high quality profitable growth, while demonstrating progress towards separation PCA focus on high quality growth, and developing capabilities Jackson demonstrating capital resilience, and success in building advisory capability M&G Prudential delivering balanced ear
Slide 41: 2018 Investor Conference, Singapore
2018 Investor Conference, Singapore 14 - 15 November 2018 2018 HALF 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 [50] US [54] Appendix Africa [62] M&G Prudential [63] 2018 Half Year Results Solvency II [66] 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 £ 664 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: Group: disciplined capital allocation
Group Disciplined capital allocation New business strain1,2,3,4,5, £m New business profit 2,3,4,5, £m 1,767 1,689 CAGR 179 161 +17% 1,257 466 1,186 436 CAGR 125 571 1,001 155 +5% 540 493 42 899 311 806 139 421 100 56 740 100 371 386 370 355 57 246 616 116 323 331 20 108 376 302 290 22 36 180 311 35
Slide 46: Group: growth in high quality earnings
Group Growth in high quality earnings Sources of IFRS operating income1,2,3,4,5, £m 8,013 7,151 6,493 1,108 5,837 1,171 5,400 1,153 2,271 4,595 1,129 4,047 1,071 1,991 3,989 4,046 3,662 1,671 1,061 1,393 583 454 2,836 1,329 1,455 2,604 1,049 1,276 1,213 998 1,000 1,243 1,152 722 1,194 750 574 1,104
Slide 47: Group: free surplus generation
Group Free surplus generation Free surplus3,4 and dividend, £m 3.7x Net free surplus 24% 22% 571 2,416 540 2,403 23% 493 2,108 23% 23% 1,863 1,845 421 1,827 25% 21% 26% 1,615 370 1,590 386 1,536 27% 1,406 290 1,391 355 1,379 331 1,248 679 256 253 1,220 33% 1,150 840 255 320 39% 1,101 1,024 659 221 9
Slide 48: Group: cash remittances to Group
Group Cash remittances to Group Business unit net remittances2, £m 1,788 1,718 25 1,625 192 1,482 85 1,341 57 643 1,200 57 1,230 603 590 15 1,105 1,111 91 610 67 37 935 590 390 52 475 341 519 688 510 470 420 82 515 570 415 475 294 342 61 249 527 322 305 645 80 516 400 400 4671 341 350 391 144 39 233
Slide 49: Group: 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 50: Asia: regional footprint
Asia Regional footprint Access to: 15m 3.6billion Pru life customers Population Top 3 Position in 9 of 12 life markets1 Asian Fund House of the Year4 1. Source: As per the Group’s Full Year 2017disclosures, based on formal (competitors’ results release, local regulators and insurance associations) a
Slide 51: Asia: favourable dynamics
Asia Favourable dynamics Population2 Market GDP1 GDP (m) penetration3 ($bn) growth1 (%) (%) Cambodia (2013) 16 0.1% 24 6.9% China (2000) 1,416 2.7% 14,093 6.6% Hong Kong (1964) 7 14.6% 365 3.6% India (2000) 1,354 2.8% 2,848 7.4% Indonesia (1995) 267 1.9% 1,075 5.3% Laos (2015) 7 - 18 6.8% Malaysia (
Slide 52: Asia: product mix
Asia Product mix Asia Life APE sales by product1, % 2 3 2 1 3 2 2 3 4 5 3 4 2 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 50 46 52 59 22 56 53 29 28 29 27 30 32 31 33 33 31 71 69 31 30 28 27 28 28 56 26 27 25 24 44 37 41 39 36 28 29 25 26 26 21 22 24 19 16 13 15 15 20
Slide 53: Asia: Eastspring Investments
Asia Eastspring Investments Funds under management1,3, £bn Capabilities 2012 – HY18 Growth 2.4x Equity 139 138 Presence in 3.6x 11 Asian markets4 118 18 18 Quantitative solutions 14 Fixed income 89 2.2x Ability to work closely 77 65 68 with our clients Alternatives2 11 8 58 58 60 Global Asset Alloca
Slide 54: 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) ~75 million 187.3 Jackson National Life 4.5 Turned 65 in 2017 4.0 124.2 3.5 3.0 2.5 2.0 Market leading retirement income provider 65 60 55 45-5
Slide 55: US: segmentation of opportunity
US Segmentation of opportunity US Adviser Distributed Assets1 ($tn) 15 Total adviser distributed assets Ages - All Investable assets: Investable Assets – All levels 5 Includes (financial assets): Mutual funds Checking accounts Managed accounts Expanded opportunity Ages 40 – 80 Defined
Slide 56: US: opportunity by channel
US Opportunity by channel US Adviser Distributed Assets1 ($tn) Adviser count Assets (‘000) 5 year CAGR 47.0 Wirehouses 5.4% 40.4 National and regional B/D 7.9% 37.0 Independent RIA 11.7% 60.1 Independent B/D 8.7% 27.4 Hybrid RIA 10.7% 22.7 Retail bank B/D 9.2% 76.7 Insurance B/D 10.6% $0 $0.0 $2,000
Slide 57: US: variable annuity volumes
US Variable annuity volumes Jackson VA sales volumes by quarter, $bn ‘Features War’ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 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 4.7 1.1 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 4.4 4.3
Slide 58: US: asset growth
US Asset growth Jackson growth in statutory admitted assets, $bn 241.2 243.8 215.2 199.1 189.4 170.9 176.6 179.0 142.8 148.8 134.2 127.5 107.6 108.8 97.5 80.1 76.7 81.0 69.3 70.9 58.8 62.8 48.9 50.9 55.6 30.0 20.9 33.3 43.0 46.6 14.7 22.3 40.2 7.1 10.4 5.1 4.4 5.6 66.4 62.7 62.1 61.9 64.9 64.6 64.8
Slide 59: US: GMWB policyholder behaviour sensitivities
US GMWB policyholder behaviour sensitivities Jackson GMWB policyholder behaviour sensitivities, 30 June 2018 $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, assumptions are
Slide 60: US: statutory capital
US Statutory capital Jackson Total Adjusted Capital Hedging programme continues to effectively mitigate risks $bn Earned guarantee fees of 125 bps per annum 31 December 2017 4.3 Equity allocations remain below our 83% pricing assumption Operating profit 0.4 Total adjusted capital excludes: Reserves
Slide 61: US: unhedged economic profile of GMWB guarantees
US Unhedged economic profile of GMWB guarantees Jackson unhedged GMWB cash flow exposure, 30 June 2018 61 2018 HALF YEAR RESULTS
Slide 62: Africa: regional footprint
Africa Regional footprint Ghana 2014 Acquisition of Express Life 1 billion people 2015: Distribution partnership with Société Générale 2015: Distribution partnership with Fidelity Bank Population of Sub-Saharan Africa1 2016: Distribution partnership with CAL Bank 2018: Distribution partnership with
Slide 63: M&G Prudential: creating a simple, modern savings and investments business
M&G Prudential Creating a simple, modern savings and investments business Market Context1,2 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
Slide 64: M&G Prudential: distribution mix
M&G Prudential Distribution mix Distribution channel Channel Mix (UK Customers) (UK Customers, 30 June 2018) Direct: Non-advised 2% Direct: PFP 7% Intermediated Advisers via platforms, 62% Individual funds within Wholesale wealth managers and adviser portfolios banks Customer solutions for Working d
Slide 65: M&G Prudential: products and customers
M&G Prudential Products and customers AUM (HY18) Customers Investment 170k direct • Top 5 in UK retail funds1 £34bn • Active management offering with strong performance customers funds • Distributed through wholesale channels UK customers • Range of consumer-focused retirement/savings wrappers PruFu
Slide 66: UK Solvency II capital position
UK Solvency II Capital position UK shareholder Solvency II capital position, £bn UK with-profits Solvency II capital position, £bn 30 Jun 2018, £bn 30 Jun 2018, £bn Surplus £7.5bn £3.0bn Surplus £5.5bn Solvency II Solvency II 203% 153% 244% cover cover 14.7 7.2 8.6 9.4 5.6 3.9 Own Funds SCR Own Fund
Slide 67: Group Solvency II capital quality
Group Solvency II Capital quality Solvency II Own Funds by capital tier1,2,3 Share of Solvency II Own Funds by capital tier1,2,3 27.5 30 June 2018, 100% = £27.5bn 0.0 Tier 3 – deferred tax 5.0 Tier 2 – sub debt Tier 3 0.8 Tier 1 – hybrid capital Tier 2 0% 18% Other Tier 1 3% Tier 1 = Tier 1 = 82% Ti
Slide 68: 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 69: SII treatment of hybrid capital classification
Group Solvency II SII treatment of hybrid capital classification Hybrid capital outstanding, 30 June 2018 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 250
Slide 70: Group asset portfolio
Invested assets Group asset portfolio Breakdown of invested assets1,2, 30 June 2018, £bn Shareholder debt portfolio, 30 June 2018, £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
Slide 71: Shareholder total debt securities by credit rating
Invested assets Shareholder total debt securities By credit rating1,2, 30 June 2018 US UK Asia 4% 5% 2% 15% 16% 7% 11% 18% 23% 41% 35% 30% 37% 32% 24% Rating: AAA AA Total £36bn Total £22bn Total £14bn A BBB <BBB 1. Pie charts exclude other operations totalling £2.3bn, of which 31% AAA, 56% AA, 8% A
Slide 72: Shareholder total debt securities by asset type
Invested assets Shareholder total debt securities By asset type1,2, 30 June 2018 US UK Asia Supranational CMBS ABS ABS 0% Sovereign1 3% 0% CMBS 3% 11% Quasi Supranational Corporate Sovereign Bonds Sovereign1 5% 7% Bonds 48% 47% RMBS 0% 2% Sovereign1 Other 15% Public Sector Quasi Bonds Sovereign 1% B
Slide 73: Shareholder backed corporate debt exposures
Invested assets Shareholder backed corporate debt exposures By sector1,2, 30 June 2018 US UK Asia Consumer, Technology Cyclical Technology Diversified Diversified Other 1% 1% Asset Backed Technology 4% 2% Materials Materials 1% 4% Securities 1% 5% 1% 2% Financial Other 24% Communications 6% Communic
Slide 74: Group translation sensitivities
Currency mix Group translation sensitivities IFRS operating profit, £m IFRS operating profit, % US HY18 as UK sterling reported 2,405 Asia Other Asia 16 16 Impact of translating results at 2,405 42 30 June 2018 spot rate 2,447 16 26 Asia – US dollar linked1 42 HY18 at 30 June 2018 2,463 spot rates U
Slide 75: Translation sensitivities
Currency mix Translation sensitivities New business profit, £m New business profit, % HY18 as US Other Asia UK sterling reported 1,767 11 10 Asia Impact of translating results at 1,767 20 30 June 2018 spot rate 26 US dollar 1,787 34 Asia – US HY18 at 30 June 2018 dollar linked1 53 spot rates 1,821 E