PRUDENTIAL PLC

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• PRUDENTIAL PLC
• JONATHAN BLOOMER
• GROUP CHIEF EXECUTIVE
• MERRILL LYNCH EUROPEAN BANKING AND INSURANCE
  CONFERENCE
• 8 OCTOBER 2003

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• This presentation may contain certain
  "forward-looking statements" with respect to
  certain of Prudential's plans and its current
  goals and expectations relating to its future
  financial condition, performance and results. By
  their nature, all forward-looking statements
  involve risk and uncertainty because they relate
  to future events and circumstances which are
  beyond Prudential's control including among other
  things, UK domestic and global economic and
  business conditions, market related risks such as
  fluctuations in interest rates and exchange
  rates, the policies and actions of regulatory
  authorities, the impact of competition,
  inflation, deflation, the timing, impact and
  other uncertainties of future acquisitions or
  combinations within relevant industries, as well
  as the impact of tax and other legislation and
  other regulations in the jurisdictions in which
  Prudential and its affiliates operate. As a
  result, Prudential's actual future financial
  condition, performance and results may differ
  materially from the plans, goals, and
  expectations set forth in Prudential's
  forward-looking statements.
• Prudential undertakes no obligation to update the
  forward looking statements contained in this
  presentation or any other forward looking
  statements it may make.

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AN INTERNATIONALLY-DIVERSIFIED BUSINESS
UK Europe
USA
Asia
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GEOGRAPHICAL DIVERSIFICATION
New business achieved profits 1998 1H
New business achieved profits 2003 1H
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UK INSURANCE OPERATIONS FROM SIZE TO SCALE
27 BILLION SAVINGS GAP

• Product range focused solely on profitable
  segments
• average spread on individual annuities of over
  150bps, an increase of nearly 50bps since 1H2002
• group pensions via business-to-business channel
  continues to grow
• leading distributor of with-profit bonds through
  IFAs developing next generation products
• Addition of bancassurance to strong distribution
  franchise
• developing wider partnership with Abbey National
• Zurich partnership successfully launched in May
  2003
• conversations continue with potential bank
  partners

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UK INSURANCE OPERATIONS MANAGING COSTS
COST REDUCTIONS ON TARGET
m

• 155m of savings realised
• Annualised value of 180m
• Mumbai office opened 30 May 2003
• 200m of annualised savings by end of 2003

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ASSET MANAGEMENT MG
ROBUST PROFITABILITY PERFORMANCE
MG Profits
m

• Operating profits up, despite falling equity
  markets
• Well-diversified revenue stream
• Continued life fund out-performance
• No 2 retail mutual fund provider in UK
• Building European presence

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EGG VALUE PER CUSTOMER CONTINUES TO TREND UPWARDS
Revenue per customer has grown steadily, while
cost per customer has fallen sharply
Total Egg customers up to 3 million in UK
Marketing acquisition costs remain at 20-25 per
card
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JACKSON NATIONAL LIFE OVERVIEW
US HAS 70 OF WORLDS RETIREMENT ASSETS

• Scale player in US life industry
• Low-cost, flexible infrastructure
• Excellent product manufacturing and
  administrative capability
• Relationship-driven distribution model
• Strong risk management capabilities and
  financial discipline

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JACKSON NATIONAL LIFE NEW INITIATIVES
MOVING INTO THE MANAGED ACCOUNT BUSINESS

• Capitalises on JNLs strengths
• distribution
• technology
• innovation
• From 2,000,000 of assets down to 25,000
• All the advantages of a consultative sale process
• portfolio customisation
• automation of tax and paperwork
• Attractive business proposition for producers and
  customers in any market climate
• Continued diversification of JNLs sales and
  asset mix

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THE ASIAN OPPORTUNITY
Population (m)
Long-term GDP Growth Rates
Now
2030
China India Indonesia Japan Vietnam Philippines
Thailand S. Korea Malaysia Taiwan Hong Kong
Singapore
1,259 986 206 126 80 76 62 46 22 22 7 4
1,470 1,380 285 117 110 119 77 53 34 32 8 4
Percentage of Holdings By Asset Class
Savings Rates
Other/Misc
Mutual Funds
Equities
Fixed Income Securities
Pensions
Life Insurance
Cash/Deposits
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ASIA LIFE MARKETS OVERVIEW

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP
Life Penetration

• North Asian markets dominate in terms of scale
• Strong correlation between GDP per capita and
  penetration of life insurance
• Inflexion point at 10,000
• Tremendous potential for nascent markets (eg.
  urban populations in China and India)

Penetration, 19991
1bn in NB Premiums
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10
S Korea
Japan
8
Taiwan
6
Hong Kong
4
Singapore
Malaysia
2
Philippines
India
Thailand
Indonesia
China
0
Vietnam
100
10,000
100,000
1,000
Per Capita GDP2, USD (log scale)
1. Source Swiss Re 2. Source CIA
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WELL-DIVERSIFIED IN TERMS OF GEOGRAPHY, PRODUCTS
AND DISTRIBUTION
South Asia
Greater China
North Asia
Mal
Sing
Thai
Indo
Phil
India
Japan
Taiwan
Vietnam
China
Country
Korea
HK
Products Life traditional
unit-linked Mutual funds General
Distribution Agency Bank Broker Direct
Top 5 Positions Life (by new business) Mutual
funds (by FUM)

1994
June 2003
Guangzhou
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LONG-TERM COMMITMENT TO THE REGION
PRUDENTIAL BRAND IS A POWERFUL ASSET
Prudence
UK heritage and credentials
Understanding customer needs
Strong competitive advantage for PCA
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A POWERFUL REGIONAL PRESENCE
RECOGNITION THROUGHOUT THE REGION
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23 BANK PARTNERS ACROSS 11 COUNTRIES
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A LEADING REGIONAL LIFE INSURANCE PLAYER
Number of markets with top 5 Life position

• Second only to AIG in penetration and overall
  life market share
• With the exception of large domestic players such
  as Cathay Life (Taiwan), Nippon Life (Japan)
  Samsung Life (Korea) and Great Eastern Life
  (Singapore and Malaysia) all the principle
  regional players are North American or European

• AIG

6-8
Prudential

• Manulife

• Allianz

4-5

• NY Life

• ING

• Great Eastern

2-3
0-1
1-2
3-6
7-8
9
Number of market presences/life licences
As at March 2003
Source PCA analysis
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PRUDENTIAL CORPORATION ASIA SUSTAINING MOMENTUM

• 4.7m customers, up from 3.5m a year ago
• Indias largest private sector life company with
  37.1 new business market share
• PCA Life Japan focus on financial advisers
• Launched new Beijing life operations in Q303
• Product mix actively managed
• Increasing operating efficiencies
• Ongoing focus on agency quality
• Piloting new CRM programmes
• Updating customer research

Continuing to build scale Investing for the
future Managing profitability Strengthening
customer relationships
For private sector 3.0 share of market new
business including LIC
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MUTUAL FUNDS A REGIONAL LEADERSHIP OPPORTUNITY

• Leading positions in India and Taiwan
• JV with Bank of China in Hong Kong
• Licensed and operating in Japan, Malaysia,
  Singapore
• Second largest fully owned foreign ITMC in Korea

Building a platform to become regional mutual
fund leader
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ASIA MODEST CAPITAL REQUIREMENT
NET CAPITAL FLOWS
274

• Total net capital invested 1994 to H1 2003 890m
  
• Net capital requirement of circa 100m per annum
  until 2005

144
158
143
76
56
22
11
7
(1)
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ASIA PROFIT PROGRESSION
1998
1999
2000
2001
2002
1H2003
(m)
(m)
(m)
(m)
(m)
(m)
New business achieved profit
56
90
153
255
307
123
Margin
74
73
60
59
60
51
Retail FUM
69
453
1,649
3,296
5,232
5,886
Operating achieved profit

83
125
213
415
516
162
before development expenses
MSB profit from established

29
31
40
56
79
40
operations
Includes mutual funds under management and Hong
Kong Mandatory Provident Fund
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CONCLUSION
MANAGING THE BUSINESS IN A TOUGH ENVIRONMENT

• Solid start to the year demonstrated in 2003
• International diversification provides
  platform for profitable growth
• Continued growth in Asia
• Financial strength underpins market presence