Prudential Plc · LSE:PRU
Prudential — Investor Day (August 2023)
44 slides from Prudential's investor day presentation, Aug 30, 2023
Slide 1: Prudential plc Strategic update
Prudential plc Strategic update 30 August 2023 2378.HK PRU.L
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains 'forward-looking statements' with respect to certain of Prudential's (and its wholly and jointly owned These factors are not exhaustive. Prudential operates in a continually changing business environment with new risks emerging businesses’) plans
Slide 3: Anil Wadhwani, Chief Executive Officer
Anil Wadhwani Chief Executive Officer
Slide 4: Accelerating value creation through operational and financial discipline
Accelerating value creation through operational and financial discipline Building a sustainable growth platform: through investment in structural growth markets Enhancing customer experiences: driving customer acquisition and loyalty Technology-powered distribution: focused on Agency and Bank produc
Slide 5: Prudential is a great franchise…
Prudential is a great franchise… Broad footprint Trusted Leading positions Multi-channel Expertise across household in high growth distribution in Asian Asia & Africa brand life markets at scale investments 4 billion 18 million Top 3 >120k Top 10 combined population customers positions in 12 Asian a
Slide 6: …and benefits from a large existing in-force book of business
…and benefits from a large existing in-force book of business Over the last 10 years, new business Over the next 5 years, our in-force will monetise into contributed c.$27bn to our embedded value1 c.$11bn of free surplus to support future growth and returns2 40.3 Free Surplus 7.4 & Goodwill Cohorts
Slide 7: Prudential has not yet realised its full potential…
Prudential has not yet realised its full potential… Speed of response to changing dynamics led to market share loss in key markets Demerger processes distracted from building core capabilities Customer experiences not sufficiently differentiated leading to mid-tier NPS Investment in technology not s
Slide 8: …and a new organisational model will be critical to delivery
…and a new organisational model will be critical to delivery Design principles to replicate successes at pace and scale Core capability build Designed to have customer at the heart Technology & Data Local market responsiveness and empowerment Customer Centers of excellence and shared services to sup
Slide 9: We have a clear and simple strategy…
We have a clear and simple strategy… Organisational model replicating successes at pace and scale Multi-market growth engines Greater China ASEAN India Africa Strategic pillars Enhancing Customer Technology-powered Transforming Health Experiences Distribution business model Open-Architecture Engaged
Slide 10: …to accelerate value creation
…to accelerate value creation Central costs, interest, ordinary dividend and Allocating capital for growth return of surplus capital A 1. Resilient capital position 2. Profitable new business 3. Investment in capabilities 4. Ordinary dividend Gross 5. Strategic M&A Free Surplus 6. Return of surplus
Slide 11: Purpose
Purpose 11
Slide 12: Our mission is to be the most trusted partner and protector for this generation
We are inspired by our purpose “ Our mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and ” accessible financial and health solutions. 12
Slide 13: Multi-market growth engines
Multi-market growth engines 13
Slide 14: We will leverage our leadership positions and scale…
We will leverage our leadership positions and scale… Access to >80% of China GDP Greater China1 2nd Chinese 2nd Hong Kong2 1st Taiwan4 #1 position in Hong Kong MCV & Agency2 Mainland4 Sustaining quality growth Presence in all 11 cities in GBA3 3rd Singapore 1st Malaysia5 2nd Vietnam ASEAN1 Access to
Slide 15: …in markets where the opportunity is large and fast-growing
…in markets where the opportunity is large and fast-growing Prudential has a c.$1 trillion growth opportunity, with our markets growing twice as fast as rest of the world UK 8.1% Low Levels of Insurance Cover India 3.0% +1.9 4.7 ASEAN 2.6% +0.9 Greater China 2.5% 1.6 c.130% Penetration1, % of GDP 2.
Slide 16: Strategic pillars
Enhancing Customer Technology-powered Transforming Health Experiences Distribution business model
Slide 17: Enhancing Customer Experiences
Enhancing Customer Experiences Focused on driving acquisition and loyalty Priorities 2027 Success Metrics Segmentation by Differentiated life stages propositions Customer NPS (2022: Mostly Top-quartile Advocacy for mid-quartile) lifetime value Acquisition by Simple, connected personalised tech-enabl
Slide 18: Technology-powered Distribution
Technology-powered Distribution Focused on Agency and Bank productivity and activation Priorities Agency: focusing on productivity and activation Bancassurance: deepening penetration Professionalising Strategic talent Career focused Broaden customer Omni-channel Integrated data-led leaders to be sou
Slide 19: Technology-powered Distribution: Doubling value creation
Technology-powered Distribution Doubling value creation 2022 2027 Agency NBP # of Active Agents per Month ~65k ~80 - 90k 2.5-3x Agency Monthly NBP per ~$1.5k ~$3k - $3.5k Active Agent 2022 2027 Bancassurance NBP Penetration in Bank Customer Base1 ~8% ~9 - 11% 1.5-2x Banca Contribution of H&P2 6% 10%
Slide 20: Transforming our Health Business Model
Transforming our Health Business Model Disciplined implementation of best practices at scale Priorities 2027 Success Metrics • Advanced products & value-added services Upgrade • Technical excellence Health • Health-ready distribution Health Insurance Insurance • Clinical preferred partner management
Slide 21: Group-wide enablers
Group-wide -- enablers Open-Architecture Engaged People & Wealth & Investment | Technology Platform High-Performance Culture Capabilities H
Slide 22: Open-Architecture Technology Platform
Open-Architecture Technology Platform Critical to delivery of customer, distribution and health strategies Priorities 2027 Success Metrics (aligned to 3 strategic pillars) Personalised Customer service AI & data customer and via Pulse analytics Customer NPS agent journeys (2022: Mostly Top-quartile
Slide 23: Engaged People & High-Performance Culture
Engaged People & High-Performance Culture Investing in talent to power growth Priorities People & Culture Organisational Model Strategic Values-based Economies of skill Economies of scale capability build leadership via centers of via shared excellence services Robust talent Aligned reward Collabora
Slide 24: Enhanced Wealth & Investments Capabilities
Enhanced Wealth & Investments Capabilities Retention of economics and ability to customise solutions 2027 Success Metrics Asset owner: Group Chief Investment Office Asset manager: Eastspring Asset Management Investment performance vs. relevant benchmarks Priorities Distribution Product High performa
Slide 25: Value creation for all stakeholders
Value creation for all stakeholders 25
Slide 26: Accelerating value creation through operational & financial discipline
Accelerating value creation through operational & financial discipline Value creation for all stakeholders Building a sustainable growth platform Customers: Top-quartile net promoter score Enhancing customer experiences Employees: Technology-powered distribution Top-quartile engagement1 Shareholders
Slide 27: Lilian Ng
Lilian Ng SBG Managing Director including Customer and Distribution
Slide 28: Enhancing Customer Experiences: Our Right To Win
Enhancing Customer Experiences Our “Right To Win” Understanding Customer delivery Customer advocacy customer needs Reach > 50% > 30% 79% 31% 89% 46% 18m Policies issued New customers Policies are auto- Claims are auto- Customer of APE from repeat No. of customers are health & are Affluent and underw
Slide 29: Becoming customer advocacy leader with an execution focus
Enhancing Customer Experiences Becoming customer advocacy leader with an execution focus Ambition Priorities Success metrics Segmentation by Differentiated life stages propositions Top Quartile NPS To become our 2022: Mostly mid-quartile customers’ Advocacy for trusted partner lifetime value by enri
Slide 30: Outward-looking customer centric delivery
Enhancing Customer Experiences Outward-looking customer centric delivery Addressing customers’ lifetime needs Connected digital engagement journey Customer 3600 Leads generation to prompt next via personalised Advanced Comprehensive wealth best offer Continuous targeting Affluent + advisory & manage
Slide 31: Leading multi-channel distribution franchise at scale
Technology-powered Distribution Leading multi-channel distribution franchise at scale Core Strengths Breadth of Strategic in Agency Partnerships Uniquely privileged position Top 3 agency franchise in #1 independent (non-bank 8 markets in Asia owned) insurer in Asia banca Multi-Distribution Agenc
Slide 32: Building a high-performance agency force
Technology-powered Distribution Building a high-performance agency force Ambition Priorities Success Metrics Professionalising Strategic talent Career focused leaders to be Sourcing advisors Holistic ‘team-builders” integrated 80 - 90k platform to grow # of Active Agents per Month a purpose-driven a
Slide 33: Technology powered solution for future-ready agents
Technology-powered Distribution technology powered solution for future-ready agents Agent Segment Critical Mass Career Agents Elite Agents Agent Recruitment Learning & Development Performance Management Sales Fulfilment Journey • AI scoring • On demand • Leads profiling • Flexible & interactive & al
Slide 34: Deploying next-gen agency capabilities
Technology-powered Distribution Deploying next-gen agency capabilities Professionalising Leaders Strategic Sourcing • Signature learning program • Accelerated talent program • Upgrading to “team builder” • Success assurances through financing, coaching, learning • Intensive training for 12 weeks • I
Slide 35: Transforming bancassurance to deepen customer penetration
Technology-powered Distribution Transforming bancassurance to deepen customer penetration Ambition Broaden customer Priorities Omni-channel 2027 Success Metrics proposition customer journeys Strategic insurance Operating cadence 9% - 11% Penetration in Bank partner of choice Customer Base1 via an in
Slide 36: Customer and Distribution: Doubling value creation
Customer and Distribution Doubling value creation 2022 2027 Customer NPS Middle Quartile Top Quartile Customer Customer Retention ~89% ~90% - 95% Agency NBP # of Active Agents per Month ~65k ~80 - 90k 2.5-3x Agency Monthly NBP per Active Agent ~$1.5k ~$3k - $3.5k 2022 2027 Penetration in Bank Custom
Slide 37: Solmaz Altin
Solmaz Altin SBG Managing Director including Health & Technology
Slide 38: Well-positioned to capture growing opportunity in the health care system
Transforming our Health Business Model Well-positioned to capture growing opportunity in the health care system Prudential Footprint Today Opportunity (Prudential’s FY22 Rapid market p.a. healthcare Earned Premium by market) growth ~8% spend per capita2 >US$2bn Earned Premium HK from Medical Reliant
Slide 39: Pivoting from a 'Payor' to 'Trusted Partner'
Transforming our Health Business Model Pivoting from a ‘Payor’ to ‘Trusted Partner’ Focused Health operating model Local execution with regional support for growth Priorities 1 2 Upgrade Enable Health Connected Care Insurance through Proposition Asset-light Approach 39
Slide 40: 1. Upgrade Health Insurance Proposition
Transforming our Health Business Model 1. Upgrade Health Insurance Proposition Focused Health operating model Local execution with regional support for growth Priorities 1 2 • Advanced products & value-added services Upgrade • Technical excellence Health • Health-ready distribution • Clinical prefer
Slide 41: Case study: Prudential Singapore
Transforming our Health Business Model 1. Upgrade Health Insurance Proposition Case study: Prudential Singapore Successful panel hospital steering and management increases profitability Integrated Shield Plan underwriting margin Top 3 players 2017 2018 2019 2020 2021 2022 Peer 1 (72%)1 (4%) (3%) (11
Slide 42: 2. Enable Connected Care through asset light approach
Transforming our Health Business Model 2. Enable Connected Care through asset light approach Focused Health operating model Local execution with regional support for growth Priorities 1 2 Digitally integrated to adjacent health care journeys Enable Before illness When person is ill Managing/post ill
Slide 43: Disciplined implementation of best practices at scale
Transforming our Health Business Model Disciplined implementation of best practices at scale Ambition 2027 success metrics Focused Health operating model Local execution with regional support for growth Priorities Top-quartile NPS1 2022: n.a. To become the most trusted health partner 1 2 Enable acro
Slide 44: For Every Life, For Every Future
For Every Life, For Every Future