8th August 2011

Another outstanding performance as Prudential announces 2011 half year results.

We are delighted to share the UK highlights of the Prudential Group’s outstanding performance in the first half of 2011.

We have reported another good performance in the first six months 2011 and with your support we’re generating record APE sales and new business profits.

UK & Europe highlights

In the UK, our strategy of focusing on balancing writing new business with sustainable cash generation and capital preservation continues to serve us well, despite the competitive market.  By not pursuing top line sales growth at any price but instead using our capital carefully on opportunities that play to our core strengths and generate the best returns, we have been able to deliver a very strong performance in the first half of the year.

• Our total APE sales of £409 million were up 7 per cent on the first half of 2010, including a bulk annuity buy in insurance agreement which generated APE £28 million.
• Our EEV new business profit increased by 8 per cent to £146 million and our new business margin increased by 1 per cent to 36 per cent.
• IFRS total operating profit of £353 million was up 7 per cent and EEV total operating profit was £558 million, up 18 per cent.
• Retail sales of APE £381 million, unchanged from the same period last year.
• Onshore bond sales of APE £84 million, 22 per cent up on first half of 2010 including with-profit bond sales of APE £73 million, increased by 22 per cent of which PruFund comprised 72 per cent.
• Unit-linked bond sales of APE £11 million, 29 per cent up on first half of 2010, helped by the success of Pru Dynamics.
• Corporate pension sales of APE £147 million, 20 per cent higher than same period last year.
• Sales to new members of existing corporate pensions schemes of APE £65 million, 123 per cent up on the first half of 2010.

Our business in the UK is focused and streamlined. Therefore, it generates differentiated returns relative to the market. We continue to be a market leader in both individual annuities and with-profits. The strength of the with-profits fund underpins our ongoing ability to deliver strong IFRS profits and cash. We have continued to balance the writing of new business with the generation of cash and capital, successfully delivering attractive returns on capital employed.

Commenting on the results, Tidjane Thiam, Group Chief Executive, said:

“We have reported another good performance in the first half of 2011. Against the challenging comparator of 2010, we have increased new business profit and IFRS and EEV operating profits by 20 per cent or more.

“Our UK business is performing in line with our strategy, balancing writing new business with generating cash and preserving capital.”

For more information visit our Prudential Group website.

Thank you again for your support. If you have any immediate questions or want any further information on our results or business opportunities please contact your Prudential account manager.

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