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 May,
2021
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-
13 May 2021
Business and Jackson demerger update for 2021 Annual General
Meeting
Prudential announces double-digit Q1 new business profit growth in
Asia and Africa, and now expects the demerger of Jackson to
complete in H2 2021
● Asia and Africa APE sales1 up
14 per cent3 and
new business profit2 up
21 per cent3 compared
with Q1 2020
● Cumulative Pulse downloads of 24
million4 since
launch, and associated Q1 2021 APE sales of $70
million6,
which now represent 9 per cent of APE sales in the markets where
Pulse is available
● Jackson's5 demerger
is now expected to complete in H2 2021, subject to regulatory and
shareholder approvals
● Jackson National Life continues to expect to have
an RBC ratio in excess of 450 per cent at the point of
demerger
● Prudential plc continues to consider raising
equity of $2.5-$3bn following completion of the demerger in order
to enhance financial flexibility and de-lever the balance
sheet
● Estimated Group local capital summation method
(LCSM) shareholder surplus, excluding Jackson, of $7.9
billion8,9 equivalent
to a cover ratio of 331 per cent7,8,9.
Prudential's initial analysis indicates an equivalent GWS
shareholder ratio of 381 per cent7,8,9,10.
Prudential plc ("Prudential") provides a business and Jackson
demerger update in advance of its Annual General Meeting, scheduled
for 11.00am London time (6.00pm Hong Kong/Singapore time)
today.
Mike Wells, Group Chief Executive of Prudential, said: "In the
first quarter of 2021 our Asia and Africa businesses generated APE
sales of $1,193 million, up 14 per cent compared with the same
period in 2020, with new business profit increasing 21 per cent to
$624 million. This was despite lower sales in Hong Kong, where
ongoing restrictions continue to severely limit
cross-border business from Mainland China. Excluding Hong Kong, APE
sales were up 35 per cent and new business profit was up 64 per
cent compared with first quarter of 2020. In the first quarter of
2021, our China JV was our largest business in terms of APE sales
and new business profit, a result of the strong performance of its
multichannel and multiproduct business model and increased
penetration of its broad footprint, which covers 20 provinces and
99 cities.
"Although a number of our markets continue to experience
significant Covid-related disruption, I am pleased that our Asia
and Africa businesses have continued to build on the momentum
established over the third and fourth quarters of 2020.
First-quarter 2021 APE sales were up 4 per cent on the fourth
quarter of 2020. Excluding Hong Kong, APE sales were up 14 per cent
on the fourth quarter of 2020 and were also 30 per cent above
pre-pandemic first quarter sales of 2019. On the same basis
excluding Hong Kong, new business profit increased by 64 per cent
compared with the first quarter of 2020 with higher APE sales at
increased margins, reflecting positive economic effects and a
favourable product and channel mix. All markets other than Hong
Kong and Indonesia delivered both APE and NBP growth compared
with the first quarter of 2020, and nine
markets11 in
Asia maintained or increased their health and protection mix. Our
Chinese operations delivered APE sales growth of 70 per cent
compared with the first quarter of 2020, which was impacted by
Covid-related disruption. This performance was driven by expansion
across distribution channels, with particularly strong growth in
agency production. First-quarter 2021 sales levels in China also
benefited from the timing of seasonal sales campaigns compared with
the prior period. In Thailand, APE sales growth was 56 per cent,
supported by the full activation of our enhanced bancassurance
distribution agreement with TMB Bank from 1 January this year. In
Africa, six out of eight markets delivered double-digit APE sales
growth, with overall APE sales 32 per cent above the first quarter
of 2020.
"Our multi-channel model continues to perform well with all
channels delivering growth. APE sales through our bank partners
were 18 per cent higher. We continued the build-out of our digital
capabilities, led by Pulse, our health and wellness platform. In
the first quarter of 2021, APE sales arising through Pulse were $70
million6,
representing circa 9 per cent of aggregate APE sales in the 17
markets where Pulse is available. Pulse downloads since launch
reached 24 million at the start of May 20214 up
from 20 million at the end of February.
"Our US business, Jackson, remains set to become an independent,
separately listed entity in 2021. Insurance regulatory approvals
from the states of Michigan and New York have been received.
Regulatory engagement on the review of the draft Form 10 continues,
and the Form 10 will now need to be updated to include Jackson's Q1
financial information. As a result, we expect the demerger to
complete in H2 2021, subject to regulatory and shareholder
approvals.
"At the point of the proposed
separation and subject to market conditions, Jackson National Life
continues to expect to have an RBC ratio in excess of 450 per cent,
after giving effect to the debt expected to be drawn down prior to
demerger. Over the first quarter of 2021, Jackson's new business
premiums were in line with trends seen in the second half of 2020
and sales of variable annuities were higher than the first quarter
of 2020. Sales of fixed index annuities and fixed annuities in the
same period remained at historically low levels following earlier
pricing actions. There were no sales of institutional products in
the period.
"The US demerger will complete Prudential's structural
transformation into a business solely focused on the growth
opportunities of Asia and Africa. In order to enhance
financial flexibility and de-lever the balance sheet, as announced
in January 2021, Prudential is considering raising new equity of
around $2.5-3 billion following the completion of the Jackson
demerger. Our preferred route is a fully marketed global offering
to institutional investors concurrent with a public offering in
Hong Kong to retail investors. As an Asia-focused company, the
Group believes there are clear benefits from increasing both its
Asian shareholder base and the liquidity of its shares in Hong
Kong. The allocation of any offering will take into account a
number of criteria including the interests of existing
shareholders. As part of this potential raise, Prudential will also
consider a possible preferential offering to Hong Kong resident
eligible employees and agents.
"Prudential plans to hold a virtual Investor Conference on 2 June
2021 covering its Asia and Africa continuing operations. Prudential
expects to announce its half-year results on 11 August 2021. In
these results, Jackson will be recorded as a discontinued business
activity.
"We continue to support all our stakeholders through what continues
to be a difficult period as we enter the second year of the
pandemic. I would like to thank our colleagues across the Group for
all their efforts over this time.
"We expect vaccination programmes being rolled out during 2021 to
trigger a gradual return to more normal economic patterns. However,
the pace of these programmes and their effect is likely to vary
substantially by market and gives a degree of uncertainty over the
economy, and the performance of the business in the
short-term.
"During the first quarter of 2021, our Asia and Africa business has
maintained the momentum established over the second half of 2020,
with 14 per cent growth in APE sales compared with the first
quarter of 2020. This momentum is expected to continue to provide a
buffer against any future resurgence in Covid-19 incidents such as
the ones we are currently experiencing in India, Indonesia,
Thailand and the Philippines. Given the uncertainty around
potential future variants and further resurgence of Covid-19, it is
unclear when the border restrictions between Hong Kong and Mainland
China will be substantively lifted. However, we believe that there
remains strong latent demand from Mainland Chinese customers for
the Hong Kong product suite and that sales will resume once the
border reopens. In the meantime, we continue to build our existing
product and digitalisation capabilities to serve the domestic Hong
Kong customers.
"We remain confident that our clear and focused strategy, coupled
with our proven execution ability, leaves us well placed to
continue to deliver value for our shareholders and all our
stakeholders over the long term, with a focus on achieving
sustained double-digit growth in embedded value per
share."
Further information:
Prudential Asia & Africa: market-by-market
performance
Our China JV saw a strong performance with APE sales growth of 70
per cent compared with the first quarter of 2020. First quarter
2021 APE sales were also 38 per cent above the 2019 pre-pandemic
first quarter sales levels. Our agency channel delivered
particularly strong growth compared with the Covid-disrupted first
quarter of 2020, alongside continuing growth in bancassurance
sales, again demonstrating the value of our diversified
distribution footprint. New business profit more than trebled
compared with the first quarter of 2020, primarily reflecting the
growth in agency APE sales and our continued focus on higher margin
health, protection and traditional products during our new year
sales campaign.
Hong Kong APE sales were 48 per cent below the first quarter of
2020, largely reflecting the impact on cross-border sales of the
continued closure of the Mainland China border. While overall
domestic APE sales were 16 per cent lower than the same period, new
business profit rose by 3 per cent reflecting a higher protection
mix, among other factors. In particular, sales of our VHIS products
almost tripled compared with the first quarter of 2020, building on
the success of our mid-tier VHIS product launched in 2020.
Meanwhile, the in-force operation continued to demonstrate
resilience as customer retention remained above 99 per cent and
health and protection renewal premiums grew 7 per
cent.
In Singapore, APE sales increased by 15 per cent and new business
profit by 14 per cent, driven by strong agency momentum. In
Malaysia, APE sales increased by 58 per cent and new business
profit by 64 per cent, reflecting very strong growth in agency
production. The Takaful business saw APE sales nearly double those
of the first quarter of 2020.
In Indonesia, APE sales were down 14 per cent compared with the
first quarter of 2020. The sales environment remained challenging
following the re-introduction of significant Covid-related
restrictions in January. Bancassurance APE sales were 7 per cent
higher in the first quarter driven by new products, while the
agency channel continued to diversify product offerings. Our Sharia
business maintained APE sales at prior year levels, with new
policies more than trebling compared with the first quarter of 2020
supported by our lower ticket size products. Meanwhile, our
employee benefit insurance business recorded its highest quarter of
new sales by APE in the first quarter. Overall new business profit
reduced by 22 per cent, reflecting lower sales, channel mix and
adverse economic effects.
In our other markets APE sales rebounded strongly by 30 per cent,
with new business profit in these markets 51 per cent higher. The
improvement in Thailand APE sales and new business profit (up 56
per cent and 126 per cent respectively) and in India APE sales and
new business profit (up 27 per cent and 33 per cent respectively)
underpinned the strong first quarter performance in these
markets.
Eastspring's total funds under management were $242 billion at 31
March 2021 (31 December 2020: $248 billion) with adverse currency
and market effects being partially offset by total net inflows in
the period. Net inflows from life operations grew to over $3
billion. Offsetting this amount were $(0.4) billion of net outflows
in the first quarter on externally managed funds (excluding both
those managed on behalf of M&G plc and those related to money
market funds). Institutional net in-flows of $0.4 billion were more
than offset by retail net outflows. Our fixed income relative
investment performance remains positive over a 3-year and 5-year
horizon, while our equity value strategies have delivered
significant relative outperformance on a 1 year view supporting
positive relative performance over a five year
basis. Assets managed on behalf of M&G plc saw net
outflows of $(0.8) billion in the period resulting in assets under
management of $14.9 billion at 31 March. A further $5 billion of
redemptions by M&G plc are expected over the remainder of
2021.
Group Capital Position
The formal LCSM regulatory position of the Group is stated after
including all the Asia with-profit funds and before allowance for
the 2020 second interim dividend. At 31 March 2021 the estimated
cover ratio on this basis was 343 per cent (31 December 2020: 329
per cent). The estimated Group LCSM shareholder cover ratio at 31
March 2021 was 319 per cent7,8 after
allowing for the 2020 second interim dividend, which reduced the
cover ratio by 6 percentage points (31 December 2020: 328 per
cent7 before
the 2020 second interim dividend).
The estimated Group excluding Jackson LCSM shareholder coverage
ratio at 31 March 2021 was 331 per cent7,8,9 (31
December 2020: 323 per cent7,9 before
allowing for the second interim dividend), with a surplus of $7.9
billion8,9 (31
December 2020: $7.8 billion9 before
allowing for the second interim dividend).
This increase in surplus of $0.1 billion reflects $0.4 billion of
operating capital generation offset by the allowance for the $(0.3)
billion second interim dividend to be paid in May
2021.
Prudential will become subject to the Group-wide Supervision (GWS)
Framework upon designation by the Hong Kong Insurance Authority
(IA), which is expected to take place imminently. The Group's
initial analysis is that if this framework had been applied at 31
March 2021, the Group excluding Jackson GWS shareholder cover ratio
would have been 381 per cent7,8,9,10,
50 percentage points higher than the LCSM cover ratio at the same
date. Further information is given below. This is subject to final
Hong Kong IA approval.
Contact:
Media
|
|
Investors/Analysts
|
|
Jonathan
Oliver
|
+44
(0)20 3977 9500
|
Patrick
Bowes
|
+44
(0)20 3977 9702
|
Tom
Willetts
|
+44
(0)20 3977 9760
|
William
Elderkin
|
+44
(0)20 3977 9215
|
Notes
1 APE sales is a measure of new business activity
that comprises the aggregate of annualised regular premiums and
one-tenth of single premiums on new business written during the
year for all insurance products, including premiums for contracts
designated as investment contracts under IFRS
4.
2 New business profit on a post-tax basis on
business sold in the first quarter of 2021, calculated in
accordance with EEV principles.
3 Comparisons are to the first three months of the
prior year unless otherwise stated and year-on-year percentage
changes are provided on a constant exchange rate basis unless
otherwise stated.
4 Total downloads at 5 May 2021, compared with
around 20 million at 22 February 2021 (as included in the full year
2020 Annual Report).
5 Unless otherwise stated Jackson throughout this
announcement refers to the Jackson Financial Inc., the Group's US
operations.
6 APE
sales substantially from full-premium products sold through
referrals to agents and a small amount of revenue from new
digital products.
7 Ratio
of capital resources over Group minimum capital
requirement attributable to shareholder business. Shareholder
business excludes the capital resources and minimum capital
requirement of participating business in Hong Kong, Singapore and
Malaysia.
8
LCSM position at 31 March 2021 after allowing for the impact of
the 2020 second interim dividend to be paid in May
2021.
9
The Group excluding Jackson LCSM position
is stated before including the value of the proposed
retained 19.7 per cent non-controlling economic interest in US
operations.
10 Under the GWS
Framework, Prudential's initial analysis indicates that all debt
instruments (senior and subordinated) issued by Prudential plc will
meet the transitional conditions set by the Hong Kong IA and will
be included as eligible Group capital resources. This is subject to final approval
by the Hong Kong IA.
11
Of a total 13 markets in Asia.
Notes to editors
Life EEV new business profit and APE new business sales (APE
sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual exchange rate
|
|
Constant exchange rate
|
|
1Q 2021 $m
|
1Q 2020 $m
|
Change %
|
|
1Q 2020 $m
|
Change %
|
|
APE sales
|
New business profit
|
APE sales
|
New business profit
|
APEsales
|
Newbusiness profit
|
|
APE sales*
|
New business profit
|
APEsales*
|
New business profit
|
Hong Kong
|
139
|
137
|
265
|
216
|
(48)%
|
(37)%
|
|
265
|
217
|
(48)%
|
(37)%
|
China JV
|
324
|
177
|
177
|
53
|
83%
|
234%
|
|
191
|
57
|
70%
|
211%
|
Indonesia
|
62
|
28
|
72
|
36
|
(14)%
|
(22)%
|
|
72
|
36
|
(14)%
|
(22)%
|
Malaysia
|
112
|
59
|
69
|
35
|
62%
|
69%
|
|
71
|
36
|
58%
|
64%
|
Singapore
|
181
|
95
|
152
|
80
|
19%
|
19%
|
|
158
|
83
|
15%
|
14%
|
Growth markets and other
|
375
|
128
|
281
|
82
|
33%
|
56%
|
|
288
|
85
|
30%
|
51%
|
Total Asia and Africa
|
1,193
|
624
|
1,016
|
502
|
17%
|
24%
|
|
1,045
|
514
|
14%
|
21%
|
Total Asia and Africa excluding Hong Kong
|
1,054
|
487
|
751
|
286
|
40%
|
70%
|
|
780
|
297
|
35%
|
64%
|
Total new business margin
|
52%
|
|
49%
|
|
|
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 1Q 2020 comparatives for APE include Africa.
Eastspring third party investment flows
$ million
|
At 1 Jan 2021
|
Netflows
|
Market andother movements
|
At 31 March 2021
|
|
At 1 Jan 2020
|
Net flows
|
Market andother movements
|
At 31 March 2020
|
Retail
|
66,838
|
(775)
|
633
|
66,696
|
|
73,644
|
(6,082)
|
(12,083)
|
55,479
|
Institutional(1)
|
13,827
|
353
|
234
|
14,414
|
|
11,024
|
820
|
(2,002)
|
9,842
|
External
funds, excluding MMF
|
80,665
|
(422)
|
867
|
81,110
|
|
84,668
|
(5,262)
|
(14,085)
|
65,321
|
Money
market funds (MMF)
|
13,198
|
(908)
|
(95)
|
12,195
|
|
13,337
|
(1,225)
|
(556)
|
11,556
|
Total
Eastspring(2)
|
93,863
|
(1,330)
|
772
|
93,305
|
|
98,005
|
(6,487)
|
(14,641)
|
76,877
|
Notes
(1)
Excludes those managed on behalf of M&G plc, which saw outflows
of $0.8 billion in the first quarter of 2021 leading to assets
being managed on behalf of M&G plc at 31 March 2021 of $14.9
billion (31 December 2020: $15.7 billion).
(2)
Eastspring's total funds under management, including internal
funds, funds managed on behalf of M&G plc and money market
funds was $242.1 billion at 31 March 2021 (31 December 2020: $247.8
billion).
Estimated Group excluding US operations capital
position
The results presented below reflect the local capital
summation method that has been agreed with the Hong Kong IA to
determine group regulatory capital requirements (both minimum and
prescribed levels). Prudential will become subject to the
Group-wide Supervision (GWS) Framework upon designation by the Hong
Kong IA, which is expected to take place imminently.
The GWS methodology is expected to be largely consistent with that
applied under LCSM with the exception of the treatment of debt
instruments which will be subject to transitional arrangements
under the GWS Framework. As agreed with the Hong Kong IA, only
specific bonds (being those subordinated debt instruments issued by
Prudential plc at the date of demerger of M&G plc) are
currently included as eligible Group LCSM capital resources for the
purposes of satisfying group minimum and prescribed capital
requirements. Senior debt instruments issued by Prudential plc have
not been included as part of the Group capital resources and are
treated as a liability in the LCSM results. Under the GWS
Framework, Prudential's initial analysis indicates that
all debt instruments (senior and subordinated) issued by Prudential
plc will meet the transitional conditions set by the Hong Kong IA
and will be included as eligible Group capital resources. If this
were to be the case, the 31 March 2021 Group excluding Jackson
shareholder LCSM coverage ratio (over GMCR) after allowing for the
second interim dividend presented below would increase by 50
percentage points to 381 per cent. This is subject to final
approval by the Hong Kong IA.
Estimated Group excluding Jackson LCSM
capital position (based on GMCR) note
(1)
|
Before second interim dividend
|
|
After second interim dividend
|
31 Mar 2021
|
Total
|
Less
policyholder
|
Shareholder
|
|
Less second interim dividend
|
Shareholder
|
Capital resources ($bn)
|
34.9
|
(23.3)
|
11.6
|
|
(0.3)
|
11.3
|
Group Minimum Capital Requirement ($bn)
|
10.0
|
(6.6)
|
3.4
|
|
-
|
3.4
|
LCSM surplus (over GMCR) ($bn)
|
24.9
|
(16.7)
|
8.2
|
|
(0.3)
|
7.9
|
LCSM ratio (over GMCR) (%)
|
349%
|
|
339%
|
|
|
331%
|
Equivalent GWS ratio (over GMCR) (%)
(as described
above)
|
|
|
|
|
|
381%
|
|
Before second interim dividend
|
|
|
|
31 Dec 2020
|
Total
|
Less
policyholder
|
Shareholder
|
|
|
|
Capital resources ($bn)
|
33.3
|
(22.1)
|
11.2
|
|
|
|
Group Minimum Capital Requirement ($bn)
|
10.1
|
(6.7)
|
3.4
|
|
|
|
LCSM surplus (over GMCR) ($bn)
|
23.2
|
(15.4)
|
7.8
|
|
|
|
LCSM ratio (over GMCR) (%)
|
328%
|
|
323%
|
|
|
|
Note
(1)
The Group excluding Jackson capital positions are presented before
including the value of the proposed retained 19.7 per cent
non-controlling economic interest in US operations.
Sensitivity analysis
The estimated sensitivity of the Group excluding US operations
shareholder capital position (based on GMCR) to significant changes
in market conditions at 31 Mar 2021 is as follows:
|
|
31 Mar 2021
|
|
Impact of market
sensitivities note
(1)
|
Surplus
($bn)
|
Ratio
(%)
|
|
Base position 31 Mar 2021
|
7.9
|
331%
|
|
Impact of:
|
|
|
|
|
10% instantaneous increase in equity markets
|
0.3
|
8%
|
|
|
20% instantaneous fall in equity markets
|
(0.6)
|
(6)%
|
|
|
40% instantaneous fall in equity markets
|
(1.1)
|
(11)%
|
|
|
50 basis points reduction in interest rates
|
0.2
|
1%
|
|
|
100 basis points increase in interest rates
|
(0.8)
|
(15)%
|
|
|
100 basis points increase in credit spreads
|
(0.6)
|
(14)%
|
|
Note
(1)
The sensitivity results above assume instantaneous market movements
and reflect all consequential impacts as at the valuation date. The
sensitivity results also allow for limited management actions such
as changes to future policyholder bonuses and rebalancing
investment portfolios where relevant. If such economic conditions
persisted, the financial impacts may differ to the instantaneous
impacts shown above. In this case management could also take
additional actions to help mitigate the impact of these stresses.
These actions include, but are not limited to, market risk hedging,
further rebalancing of investment portfolios, increased use of
reinsurance, repricing of in-force benefits, changes to new
business pricing and the mix of new business being
sold.
About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on
structural growth markets. The business helps people get the most
out of life through life and health insurance and retirement and
asset management solutions. Prudential plc has 17 million life
customers in its Asia and Africa businesses 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 Limited, a
subsidiary of M&G plc, a company incorporated in the United
Kingdom.
Conference Call for analysts and investors
We expect to announce our Q1 Business Update for the 2021 Annual
General Meeting to the London Stock Exchange at 9.30am (UK time) on
Thursday, 13 May 2021.
A conference call for analysts and investors will be held on the
same day at 9.45am (UK time). The 2021 Annual General Meeting is
due to start at 11.00am (UK time).
Dial-in details
A dial-in facility will be available to listen to the call and ask
questions: please allow 15 minutes ahead of the start time to join
the call (lines open half an hour before the presentation is due to
start, i.e. from 9.15am (UK time).
Dial-in: +44 (0) 20 3936 2999 (UK and international) / 0800 640
6441 (Freephone UK), Participant access
code: 984543. Once participants have entered this code their
name and company details will be taken.
Transcript
Following the call a transcript will be published on the results
centre page of Prudential plc's website on 17 May 2021.
Playback facility
Please use the following for a playback facility: +44 (0) 20 3936
3001 (UK and international), replay code 549482. This will be available from approximately 5.00pm
(UK time) on 13 May 2021 until 11.59pm (UK time) on 27 May
2021.
An AGM Business Update slide presentation will be published on the
Prudential plc IR website at 9.30am (UK time).
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 and Jackson's 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 and
Jackson's actual future financial condition or performance or other
indicated results of the entity referred to in any forward-looking
statement to differ materially from those indicated in such
forward-looking statement. Such factors include, but are not
limited to, the ability to complete the proposed demerger of
Jackson Financial Inc. in the anticipated timeframe or at all; the
ability of the management of Jackson Financial Inc. and its group
to deliver on its business plan post-separation; the impact of the
current Covid-19 pandemic, including adverse financial market and
liquidity impacts, responses and actions taken by regulators and
supervisors, the impact to sales, claims and assumptions and
increased product lapses, disruption to Prudential's operations
(and those of its suppliers and partners), risks associated with
new sales processes and information security risks; future market
conditions, including fluctuations in interest rates and exchange
rates, the potential for a sustained low-interest rate environment,
and the impact of economic uncertainty, asset valuation impacts
from the transition to a lower carbon economy, derivative
instruments not effectively hedging exposures arising from product
guarantees, inflation and deflation and the performance of
financial markets generally; global political uncertainties,
including the potential for increased friction in cross-border
trade and the exercise of executive powers to restrict trade,
financial transactions, capital movements and/or investment; the
policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's Group-wide supervisor, as well as new
government initiatives generally; given its designation as an
Internationally Active Insurance Group, the impact on Prudential of
systemic risk and other group supervision policy standards 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, social and financial 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 effectiveness of reinsurance for Prudential's
businesses; 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 information technology, digital systems
and data (or those of its suppliers and partners); any ongoing
impact on Prudential of the demerger of M&G plc and, if and
when completed, the demerger of Jackson Financial Inc.; 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 or Jackson's actual future financial condition or
performance or other indicated results of the entity referred to in
any forward-looking statements to differ, possibly materially, from
those anticipated in Prudential's forward-looking statements can be
found under the 'Risk Factors' heading in Prudential's 2020 Annual
Report and the 'Risk Factors' heading of Prudential's most recent
annual report on Form 20-F filed with the U.S. Securities and
Exchange Commission ("SEC"). Prudential's most recent Annual Report
and Form 20-F are 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 Guidance
and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST
listing rules or other applicable laws and
regulations. Prudential may also make or
disclose written and/or oral forward-looking statements in reports
filed with or furnished to the FCA, the SEC or other regulatory
authorities, as well as in its annual report and accounts to
shareholders, periodic financial reports to shareholders, proxy
statements, offering circulars, registration statements,
prospectuses and prospectus supplements, press releases and other
written materials and in oral statements made by directors,
officers or employees of Prudential to third parties, including
financial analysts. All such forward-looking statements are
qualified in their entirety by reference to the factors discussed
under the 'Risk Factors' heading in Prudential's 2020 Annual Report
and the 'Risk Factors' heading of Prudential's most recent annual
report on Form 20-F filed with the SEC. These factors are not
exhaustive as Prudential operates in a continually changing
business environment with new risks emerging from time to time that
it may be unable to predict or that it currently does not expect to
have a material adverse effect on its business.
Cautionary statements
This document does not constitute or form part of any offer or
invitation to purchase, acquire, subscribe for, sell, dispose of or
issue, or any solicitation of any offer to purchase, acquire,
subscribe for, sell or dispose of, any securities in any
jurisdiction nor shall it (or any part of it) or the fact of its
distribution, form the basis of, or be relied on in connection
with, any contract therefor. The securities referred to in
this document have not been and will not be registered under the
U.S. Securities Act of 1933, as amended
(the "U.S. Securities Act"), and may not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons (as
such term is defined in Regulation S under the U.S. Securities Act)
absent registration or an exemption from, or in a transaction not
subject to, the registration requirements of the U.S. Securities
Act and in accordance with applicable U.S. state securities laws.
Prudential does not intend to register any securities referred to
herein in the United States or to conduct a public offering of
securities in the United States.
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: 13 May 2021
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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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