SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of March, 2020
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
1 Angel Court, London,
England, EC2R 7AG
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in connection with Rule 12g3-2(b): 82-
24 March 2020
Update on Covid-19 and current market conditions:
Message from Mike Wells, Group Chief Executive of Prudential
plc
Mike Wells, Group Chief Executive of Prudential plc,
said:
"The public health emergency and economic uncertainty created by
Covid-19 means that Prudential's customers, staff and distribution
partners are depending on us now more than ever for their personal
wellbeing and financial security. My message to all of you is
simple: we are here for you, and we continue to support you in
whatever way we can.
"During this period of uncertainty, Prudential, as a business
committed to openness and transparency, will issue regular updates
on our response to the varied effects of Covid-19. In parts
of Asia, our colleagues have been living with this outbreak for
several months and they have been performing heroically, providing
outstanding service to customers in a challenging environment.
Covid-19 has now developed rapidly from a largely regional issue
into a global pandemic. This means we are having to adapt further.
Our teams in the US, the UK and Africa are learning from the
experience of their colleagues in Asia, and I am pleased to report
that our business continuity plans have been executed
smoothly.
"Our business continues to be financially resilient. As previously
reported, the risk-based capital ratio (RBC) of Jackson, our US
business, as at 31 December 2019 was 366 per cent and, despite
extreme market volatility since then, Jackson's RBC ratio is
currently estimated to be at a broadly similar level.
"In the same way that Covid-19 is requiring us to think flexibly
about how we deliver for customers, it also requires us to be
flexible in how we execute our corporate strategy. The Board is
unambiguously clear on the strategic priorities for the Group:
firstly, to enable Prudential's investors to benefit to the fullest
extent possible from the opportunity presented by Prudential's
business in Asia; and secondly, to pursue a path for an independent
Jackson, while ensuring that, through a combination of diversifying
its business mix and the necessary strengthening of its standalone
capital position, it retains the strong credit rating that its
current and future customers require.
"At our Half Year 2019 results back in August, we announced an
intention to introduce third-party capital into Jackson. At our
Full Year 2019 results, earlier this month, we stated a preference
for public equity markets as the source of that third-party
capital, through a minority initial public offering (IPO), subject
to market conditions. In light of continued turmoil in public
equity markets, the Board is ensuring that, alongside preparations
for a minority IPO, it continues to actively evaluate other options
in relation to Jackson, driven by the focus and objectives that
underline our strategic priorities.
"While the full consequences of Covid-19 are still emerging,
Prudential has a highly resilient business model and remains well
placed to continue to create value for shareholders, and support
distribution partners and customers. This crisis is impacting
families and individuals in every community we serve across the
world, and all of us at Prudential want those people to know that
we will be there for them now and in the future."
Enquiries:
Media
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Investors/Analysts
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Jonathan Oliver
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+44 (0)20 3977 9500
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Patrick Bowes
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+44 (0)20 3977 9702
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Tom Willetts
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+44 (0)20 3977 9760
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William Elderkin
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+44 (0)20 3977 9215
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Notes to Editors:
About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on
structural growth markets. The business helps individuals to
de-risk their lives and deal with their biggest financial concerns
through life and health insurance, and retirement and asset
management solutions. Prudential plc has 20 million customers and
is listed on stock exchanges in London, Hong Kong, Singapore and
New York. Prudential plc is not affiliated in any manner with
Prudential Financial, Inc., a company whose principal place of
business is in the United States of America, nor with the
Prudential Assurance Company, a subsidiary of M&G plc, a
company incorporated in the United Kingdom.
About Jackson
Jackson is a leading provider of retirement
products for industry professionals and their clients. The company
and its affiliates offer variable, fixed and fixed index annuities
designed for tax-efficient growth and distribution of retirement
income for retail customers, as well as products for institutional
investors. Jackson is a proud founding member and co-chair of the
Alliance for Lifetime Income, a non-profit 501(c)(6) organisation
formed and supported by 24 of the nation's financial services
organisations to create awareness and educate Americans about the
importance of protected lifetime income. With $297.6 billion in
IFRS assets*, the company prides itself on sound corporate risk
management practices and strategic technology initiatives. Focused
on thought leadership and education, Jackson provides industry
insights and financial representative training on retirement
planning and alternative investment strategies. The company is also
dedicated to corporate philanthropy and supports non-profit
organisations focused on strengthening families and creating
economic opportunities in the communities where its employees live
and work. For more information, visit www.jackson.com.
*Prudential plc's US insurance business has IFRS total assets of
$299.0 billion, of which $297.6 billion relate to Jackson, and
$269.5 billion of IFRS policyholder liabilities (as of 31 December
2019).
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 Prudential's beliefs and expectations
and including, without limitation, statements containing the words
'may', 'will', 'should', 'continue', 'aims', 'estimates',
'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and
'anticipates', and words of similar meaning, are forward-looking
statements. These statements are based on plans, estimates and
projections as at the time they are made, and therefore undue
reliance should not be placed on them. By their nature, all
forward-looking statements involve risk and
uncertainty.
A number of important factors could cause Prudential's actual
future financial condition or performance or other indicated
results to differ materially from those indicated in any
forward-looking statement. Such factors include, but are not
limited to, future market conditions, including fluctuations in
interest rates and exchange rates, the continuance of a sustained
low-interest rate environment, and the impact of economic
uncertainty, asset valuation impacts from the transition to a lower
carbon economy, inflation and deflation and the performance of
financial markets generally; global political uncertainties; the
policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's new Group-wide supervisor, as well as
new government initiatives generally; the impact of continuing
application of Global Systemically Important Insurer or 'G-SII'
policy measures on Prudential; the impact on Prudential of systemic
risk policy measures adopted by the International Association of
Insurance Supervisors; the impact of competition and fast-paced
technological change; the effect on Prudential's business and
results from, in particular, mortality and morbidity trends, lapse
rates and policy renewal rates; the physical impacts of climate
change and global health crises on Prudential's business and
operations; the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries; the impact
of internal transformation projects and other strategic actions
failing to meet their objectives; the ability to complete a
minority IPO of Jackson or another third party financing
transaction; the risk that Prudential's operational resilience (or
that of its suppliers and partners) may prove to be inadequate,
including in relation to operational disruption due to external
events; disruption to the availability, confidentiality or
integrity of Prudential's IT, digital systems and data (or those of
its suppliers and partners); any ongoing impact on Prudential of
the demerger of M&G plc; the impact of changes in capital,
solvency standards, accounting standards or relevant regulatory
frameworks, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate; the
impact of legal and regulatory actions, investigations and
disputes; and the impact of not adequately responding to
environmental, social and governance issues. These and other
important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
Prudential's actual future financial condition or performance or
other indicated results to differ, possibly materially, from those
anticipated in Prudential's forward-looking statements can be found
under the 'Risk Factors' in Prudential's Full Year 2019 Results
Regulatory News Release. Prudential's Full Year 2019 Results
Regulatory News Release is available on its website
at www.prudentialplc.com.
Any forward-looking statements contained in this document speak
only as of the date on which they are made. Prudential expressly
disclaims any obligation to update any of the forward-looking
statements contained in this document or any other forward-looking
statements it may make, whether as a result of future events, new
information or otherwise except as required pursuant to the UK
Prospectus Rules, the UK Listing Rules, the UK Disclosure and
Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing
rules or other applicable laws and regulations.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 24 March 2020
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By: /s/ Mark FitzPatrick
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Mark
FitzPatrick
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Group
Chief Financial Officer and Chief Operating Officer
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