Slide 1: Prudential plc Capital management update
Prudential plc Capital management update 23 June 2024 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 • The impact of competition and fast-paced technological change; businesses’) plans and its goals and expectations relating to future financial
Slide 3: Delivering growth in value and cash returns
Capital Management Update Delivering growth in value and cash returns • Strategic progress, balance sheet strength and clarification of Rating Agency IFRS17 CSM treatment allows for capital management update • US$2bn share buyback programme announced1 • Strong capital base to fund organic growth and
Slide 4: Disciplined capital allocation driving compounding growth
Capital Management Update Disciplined capital allocation driving compounding growth Resilient capital • GWS shareholder regulatory capital: target resilient capital buffers of at least 150% of GPCR1 position • Leverage: maintain total leverage consistent with AA financial strength rating Profitable
Slide 5: Regulatory capital and free surplus ratio
Capital Management Update Regulatory capital and free surplus ratio Reconciliation of GWS surplus1 to free surplus Free surplus ratio (ex intangibles) 31 December 2023, US$bn 31 December 2023, US$bn 295% 242% GWS shareholder cover ratio GPCR basis1 Free surplus ratio2 24.3 14.5 GWS 16.1 o/w Qualifyi
Slide 6: Free surplus ratio operating range
Capital Management Update Free surplus ratio operating range Free surplus ratio1 • Operating range of 175-200%: – Absorb severe but plausible stress scenarios – Retain flexibility to accelerate growth 200% Operating range • If the free surplus ratio is above the operating range over the medium term,
Slide 7: Capital management discipline
Capital Management Update Capital management discipline 31 December 2023, US$bn Capital resources1 Free surplus ratio2 2 14.5 ~2 US$ bn 200% Buyback ~2 Operating range 175% • Start in June 2024 10.5 • To be completed no later than mid 2026 • London line3 only 1. Group free surplus excluding intangib
Slide 8: Increasing potential for further cash returns
Capital Management Update Increasing potential for further cash returns New business profit Gross OFSG 2022-2027, US$bn Indicative trajectory, 2022-2027, US$bn Objective: CAGR 2022-27: 15-20%1 Objective: Double-digit CAGR Gross OFSG 2022-20271,2 20% 5.4 >4.4 15% 4.4 3.1 2.8 2.7 2.2 2022 2023 2027 ob
Slide 9: Delivering growth in value and cash returns
Capital Management Update Delivering growth in value and cash returns Growth Growth in capital in value generation 15-20 % US$ 4.4+ bn NBP CAGR 2022-271 Gross OFSG, 20271,2 Increasing potential Capacity to further for further cash accelerate growth returns US$ 2bn buyback3 to be completed no later t