Prudential Plc · LSE:PRU

Prudential — Merger or Acquisition (June 2020)

10 slides from Prudential's merger presentation, Jun 18, 2020

  1. Slide 1: US business: reinsurance transaction and anchor equity investment

    Prudential plc US business: reinsurance transaction and anchor equity investment 18th June 2020 1

  2. 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

  3. Slide 3: Summary and key benefits

    Prudential plc US business: reinsurance transaction and anchor equity investment Summary • Fully reinsured $27.6 billion1 of in-force FA and FIA liabilities to Athene • Anchor equity investment by Athene in US business of $500m for an 11.1%2 economic interest in the enlarged common equity Key benefi

  4. Slide 4: Jackson: a leading provider of US retirement income solutions

    Prudential plc Jackson: 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

  5. Slide 5: Reinsurance transaction structure

    Prudential plc US business: reinsurance transaction • Cedes in-force FA and FIA liabilities US statutory • Assets transferred at cost Jackson Athene1 • Ceding commission transferred to Jackson • Cedes $27.6bn in-force FA and FIA liabilities IFRS Jackson Athene1 • $28.2bn assets transferred largely a

  6. Slide 6: $500m anchor equity investment from Athene

    Prudential plc US business: anchor equity investment • $500m investment from Athene1 to hold a 11.1% economic interest2 in the enlarged common equity of Prudential’s US business3 • Consistent with intention to introduce third party capital to support Jackson’s strategic development • The new capital

  7. Slide 7: ~80% point increase in Jackson's RBC capital cover ratio

    Prudential plc ~80% point increase in Jackson’s RBC capital cover ratio Jackson National, estimated pro-forma RBC cover ratio ~+80%p1 340- 420- 365% ~+60%p ~+20%p 445% 31 March 2020, estimate Net reinsurance effects Equity investment 31 March 2020, pro-forma 1. The pro-forma estimates assume that th

  8. Slide 8: plc: pro-forma financial effects (IFRS)

    Prudential plc Prudential plc: pro-forma financial effects (IFRS)1 $ billions IFRS income IFRS equity Reinsurance 1.2 (0.7) Reinsurance transaction effect pre tax post tax, net UCGs2 transferred Equity investment3 Equity investment 0.5 PLC holding reduces to 88.9%, transfer to (1.2) non-controlled i

  9. Slide 9: Higher capital, lower credit exposure

    Prudential plc Higher capital, lower credit exposure Jackson Prudential plc Capital: ~+80%p1 ~+27%p1,2 Credit exposure3: 1. The pro-forma estimates assume that the reinsurance of the Jackson fixed and fixed-index annuity portfolio and the capital investment by Athene had both been completed as at 31

  10. Slide 10: Summary and next steps

    Prudential plc US business: reinsurance transaction and anchor equity investment • Transactions with Athene are an important step supporting Jackson’s strategic development • Deliver ~80% point1 increase in Jackson’s RBC cover ratio • Jackson maintains its market leading annuity capabilities • Prepa

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