|
|
|
|
|
|
|
|
|
Note
|
2019 $m
|
2018* $m
|
Continuing operations:
|
|
|
|
||
Gross premiums earned
|
|
45,064
|
45,614
|
||
Outward reinsurance premiums
|
|
(1,583)
|
(1,183)
|
||
Earned premiums, net of reinsurance
|
|
43,481
|
44,431
|
||
Investment return
|
|
49,555
|
(9,117)
|
||
Other income
|
|
700
|
531
|
||
Total revenue, net of reinsurance
|
|
93,736
|
35,845
|
||
Benefits and claims
|
|
(85,475)
|
(26,518)
|
||
Reinsurers' share of benefits and claims
|
|
2,985
|
1,598
|
||
Movement in unallocated surplus of with-profits funds
|
|
(1,415)
|
1,494
|
||
Benefits and claims and movement in unallocated surplus of
with-profits funds, net of reinsurance
|
|
(83,905)
|
(23,426)
|
||
Acquisition costs and other expenditure
|
B2
|
(7,283)
|
(8,527)
|
||
Finance costs: interest on core structural borrowings of
shareholder-financed businesses
|
|
(516)
|
(547)
|
||
(Loss) on disposal of businesses and corporate
transactions
|
D1.1
|
(142)
|
(107)
|
||
Total charges net of reinsurance
|
|
(91,846)
|
(32,607)
|
||
Share of profit from joint ventures and associates net of related
tax
|
|
397
|
319
|
||
Profit before tax (being tax attributable to
shareholders' and policyholders' returns)note
|
|
2,287
|
3,557
|
||
Remove tax charge attributable to policyholders'
returns
|
|
(365)
|
(107)
|
||
Profit before tax attributable to shareholders'
returns
|
B1.1
|
1,922
|
3,450
|
||
Total tax charge attributable to shareholders' and policyholders'
returns
|
B4.1
|
(334)
|
(676)
|
||
Remove tax charge attributable to policyholders'
returns
|
|
365
|
107
|
||
Tax credit (charge) attributable to shareholders'
returns
|
B4.1
|
31
|
(569)
|
||
Profit from continuing operations
|
|
1,953
|
2,881
|
||
Discontinued UK and Europe operations' profit after
tax
|
D2
|
1,319
|
1,142
|
||
Re-measurement of discontinued operations on demerger
|
D2
|
188
|
-
|
||
Cumulative exchange loss recycled from other comprehensive
income
|
D2
|
(2,668)
|
-
|
||
(Loss) profit from discontinued operations
|
|
(1,161)
|
1,142
|
||
Profit for the year
|
|
792
|
4,023
|
||
|
|
|
|
|
|
Attributable to:
|
|
|
|
||
|
Equity holders of the Company
|
|
|
|
|
|
|
From continuing operations
|
|
1,944
|
2,877
|
|
|
From discontinued operations
|
|
(1,161)
|
1,142
|
|
Non-controlling interests from continuing operations
|
|
9
|
4
|
|
Profit for the year
|
|
792
|
4,023
|
|
|
|
|
|
|
Earnings per share (in cents)
|
Note
|
2019
|
2018*
|
||
Based on profit attributable to equity holders of the
Company:
|
B5
|
|
|
||
|
Basic
|
|
|
|
|
|
|
Based on profit from continuing operations
|
|
75.1¢
|
111.7¢
|
|
|
Based on (loss) profit from discontinued operations
|
|
(44.8)¢
|
44.3¢
|
|
|
|
|
30.3¢
|
156.0¢
|
|
Diluted
|
|
|
|
|
|
|
Based on profit from continuing operations
|
|
75.1¢
|
111.7¢
|
|
|
Based on (loss) profit from discontinued operations
|
|
(44.8)¢
|
44.3¢
|
|
|
|
|
30.3¢
|
156.0¢
|
|
|
|
|
|
Dividends per share (in cents)
|
Note
|
2019
|
2018
|
|
Dividends relating to reporting year:
|
B6
|
|
|
|
|
First interim ordinary dividend
|
|
20.29¢
|
20.55¢
|
|
Second interim ordinary dividend
|
|
25.97¢
|
42.89¢
|
Total
|
|
46.26¢
|
63.44¢
|
|
Dividends paid in reporting year:
|
B6
|
|
|
|
|
Current year first interim dividend
|
|
20.29¢
|
20.55¢
|
|
Second interim ordinary dividend for prior year
|
|
42.89¢
|
43.79¢
|
Total
|
|
63.18¢
|
64.34¢
|
|
|
|
|
|
|
|
|
Note
|
2019 $m
|
2018* $m
|
|
||
Profit for the year from continuing operations
|
|
1,953
|
2,881
|
|
||
Other comprehensive income (loss) from continuing
operations:
|
|
|
|
|
||
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
||
Exchange movements on foreign operations and net investment
hedges:
|
|
|
|
|
||
|
Exchange movements arising during the year
|
|
152
|
(39)
|
|
|
|
Related tax
|
|
(15)
|
7
|
|
|
|
|
|
|
137
|
(32)
|
|
Valuation movements on available-for-sale debt
securities:
|
|
|
|
|
||
|
Net unrealised gains (losses) on holdings
|
|
4,208
|
(2,144)
|
|
|
|
Deduct net gains included in the income statement on disposal and
impairment
|
|
(185)
|
(15)
|
|
|
|
|
|
|
4,023
|
(2,159)
|
|
|
Related change in amortisation of deferred acquisition
costs
|
C5.2
|
(631)
|
328
|
|
|
|
Related tax
|
|
(713)
|
385
|
|
|
|
|
|
|
2,679
|
(1,446)
|
|
Total items that may be reclassified subsequently to profit or
loss
|
|
2,816
|
(1,478)
|
|
||
Items that will not be reclassified to profit or loss
|
|
|
|
|
||
Shareholders' share of actuarial gains and losses on defined
benefit pension schemes:
|
|
|
|
|
||
|
Net actuarial (losses) gains on defined benefit pension
schemes
|
|
(108)
|
26
|
|
|
|
Related tax
|
|
19
|
(5)
|
|
|
Total items that will not be reclassified to profit or
loss
|
|
(89)
|
21
|
|
||
Other comprehensive income (loss) from continuing
operations
|
|
2,727
|
(1,457)
|
|
||
Total comprehensive income from continuing operations
|
|
4,680
|
1,424
|
|
||
|
|
|
|
|
|
|
(Loss) profit from discontinued operations
|
D2
|
(1,161)
|
1,142
|
|
||
Cumulative exchange loss recycled through profit or
loss
|
D2
|
2,668
|
-
|
|
||
Other items, net of related tax
|
D2
|
203
|
(605)
|
|
||
Total comprehensive income from discontinued
operations
|
|
1,710
|
537
|
|
||
Total comprehensive income for the year
|
|
6,390
|
1,961
|
|
||
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
||
|
Equity holders of the Company
|
|
|
|
|
|
|
|
From continuing operations
|
|
4,669
|
1,419
|
|
|
|
From discontinued operations
|
|
1,710
|
537
|
|
|
Non-controlling interests from continuing operations
|
|
11
|
5
|
|
|
Total comprehensive income for the year
|
|
6,390
|
1,961
|
|
|
|
|
Year ended 31 Dec 2019 $m
|
|||||||
|
Note
|
Share
capital
|
Share
premium
|
Retained
earnings
|
Translation
reserve*
|
Available
-for-sale
securities
reserves
|
Shareholders'
equity
|
Non-
controlling
interests
|
Total
equity
|
|
Reserves
|
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
|
-
|
-
|
1,944
|
-
|
-
|
1,944
|
9
|
1,953
|
|
Other comprehensive income (loss) from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Exchange movements on foreign operations and net investment hedges
net of related tax
|
|
-
|
-
|
-
|
135
|
-
|
135
|
2
|
137
|
|
Net unrealised valuation movements net of related change in
amortisation of deferred acquisition costs and related
tax
|
|
-
|
-
|
-
|
-
|
2,679
|
2,679
|
-
|
2,679
|
|
Shareholders' share of actuarial gains and losses on defined
benefit pension schemes net of related tax
|
|
-
|
-
|
(89)
|
-
|
-
|
(89)
|
-
|
(89)
|
Total other comprehensive income (loss) from continuing
operations
|
|
-
|
-
|
(89)
|
135
|
2,679
|
2,725
|
2
|
2,727
|
|
Total comprehensive income from continuing operations
|
|
-
|
-
|
1,855
|
135
|
2,679
|
4,669
|
11
|
4,680
|
|
Total comprehensive income (loss) from discontinued
operations
|
|
-
|
-
|
(1,098)
|
2,808
|
-
|
1,710
|
-
|
1,710
|
|
Total comprehensive income for the year
|
|
-
|
-
|
757
|
2,943
|
2,679
|
6,379
|
11
|
6,390
|
|
|
|
|
|
|
|
|
|
|
|
|
Demerger dividend in specie of M&G plc
|
B6.1
|
-
|
-
|
(7,379)
|
-
|
-
|
(7,379)
|
-
|
(7,379)
|
|
Other dividends
|
B6.2
|
-
|
-
|
(1,634)
|
-
|
-
|
(1,634)
|
-
|
(1,634)
|
|
Reserve movements in respect of share-based payments
|
|
-
|
-
|
64
|
-
|
-
|
64
|
-
|
64
|
|
Change in non-controlling interests
|
|
-
|
-
|
-
|
-
|
-
|
-
|
158
|
158
|
|
Movements in respect of option to acquire non-controlling
interests
|
|
-
|
-
|
(143)
|
-
|
-
|
(143)
|
-
|
(143)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and share premium
|
|
|
|
|
|
|
|
|
|
|
New share capital subscribed
|
C10
|
-
|
22
|
-
|
-
|
-
|
22
|
-
|
22
|
|
Impact of change in presentation currency in relation to share
capital and share premium
|
C10
|
6
|
101
|
-
|
-
|
-
|
107
|
-
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury shares
|
|
|
|
|
|
|
|
|
|
|
Movement in own shares in respect of share-based payment
plans
|
|
-
|
-
|
38
|
-
|
-
|
38
|
-
|
38
|
|
Movement in Prudential plc shares purchased by unit trusts
consolidated under IFRS
|
|
-
|
-
|
55
|
-
|
-
|
55
|
-
|
55
|
|
Net increase (decrease) in equity
|
|
6
|
123
|
(8,242)
|
2,943
|
2,679
|
(2,491)
|
169
|
(2,322)
|
|
Balance at beginning of year
|
|
166
|
2,502
|
21,817
|
(2,050)
|
(467)
|
21,968
|
23
|
21,991
|
|
Balance at end of year
|
|
172
|
2,625
|
13,575
|
893
|
2,212
|
19,477
|
192
|
19,669
|
|
|
|
Year ended 31 Dec 2018* $m
|
|||||||
|
Note
|
Share
capital
|
Share
premium
|
Retained
earnings
|
Translation
reserve
|
Available
-for-sale
securities
reserves
|
Shareholders'
equity
|
Non-
controlling
interests
|
Total
equity
|
|
Reserves
|
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
|
-
|
-
|
2,877
|
-
|
-
|
2,877
|
4
|
2,881
|
|
Other comprehensive income (loss) from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Exchange movements on foreign operations and net investment hedges
net of related tax
|
|
-
|
-
|
-
|
(33)
|
-
|
(33)
|
1
|
(32)
|
|
Net unrealised valuation movements net of related change in
amortisation of deferred acquisition costs and related
tax
|
|
-
|
-
|
-
|
-
|
(1,446)
|
(1,446)
|
-
|
(1,446)
|
|
Shareholders' share of actuarial gains and losses on
defined benefit pension schemes net of related tax
|
|
-
|
-
|
21
|
-
|
-
|
21
|
-
|
21
|
Total other comprehensive income (loss) from continuing
operations
|
|
-
|
-
|
21
|
(33)
|
(1,446)
|
(1,458)
|
1
|
(1,457)
|
|
Total comprehensive income (loss) from continuing
operations
|
|
-
|
-
|
2,898
|
(33)
|
(1,446)
|
1,419
|
5
|
1,424
|
|
Total comprehensive income from discontinued
operations
|
|
-
|
-
|
1,218
|
(681)
|
-
|
537
|
-
|
537
|
|
Total comprehensive income (loss)
for the year
|
|
-
|
-
|
4,116
|
(714)
|
(1,446)
|
1,956
|
5
|
1,961
|
|
Dividends
|
B6.2
|
-
|
-
|
(1,662)
|
-
|
-
|
(1,662)
|
-
|
(1,662)
|
|
Reserve movements in respect of share-based payments
|
|
-
|
-
|
92
|
-
|
-
|
92
|
-
|
92
|
|
Change in non-controlling interests
|
|
-
|
-
|
-
|
-
|
-
|
-
|
9
|
9
|
|
Movements in respect of option to acquire non-controlling
interests
|
|
-
|
-
|
(146)
|
-
|
-
|
(146)
|
-
|
(146)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and share premium
|
|
|
|
|
|
|
|
|
|
|
New share capital subscribed
|
C10
|
1
|
22
|
-
|
-
|
-
|
23
|
-
|
23
|
|
Impact of change in presentation currency in relation to share
capital and share premium
|
C10
|
(10)
|
(155)
|
-
|
-
|
-
|
(165)
|
-
|
(165)
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury shares
|
|
|
|
|
|
|
|
|
|
|
Movement in own shares in respect of share-based payment
plans
|
|
-
|
-
|
39
|
-
|
-
|
39
|
-
|
39
|
|
Movement in Prudential plc shares purchased by unit trusts
consolidated under IFRS
|
|
-
|
-
|
69
|
-
|
-
|
69
|
-
|
69
|
|
Net increase (decrease) in equity
|
|
(9)
|
(133)
|
2,508
|
(714)
|
(1,446)
|
206
|
14
|
220
|
|
Balance at beginning of year
|
|
175
|
2,635
|
19,309
|
(1,336)
|
979
|
21,762
|
9
|
21,771
|
|
Balance at end of year
|
|
166
|
2,502
|
21,817
|
(2,050)
|
(467)
|
21,968
|
23
|
21,991
|
|
|
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
1 Jan 2018 $m
|
|
|
|
|
Note
|
note (iii)
|
notes (iii),(iv)
|
notes (iii),(iv)
|
Assets
|
|
|
|
|
|||
Goodwill
|
C5.1
|
969
|
2,365
|
2,005
|
|||
Deferred acquisition costs and other intangible assets
|
C5.2
|
17,476
|
15,185
|
14,896
|
|||
Property, plant and equipmentnote
(i)
|
|
1,065
|
1,795
|
1,067
|
|||
Reinsurers' share of insurance contract liabilities
|
|
13,856
|
14,193
|
13,086
|
|||
Deferred tax assets
|
C8
|
4,075
|
3,305
|
3,554
|
|||
Current tax recoverable
|
|
492
|
787
|
829
|
|||
Accrued investment income
|
|
1,641
|
3,501
|
3,620
|
|||
Other debtors
|
|
2,054
|
5,207
|
4,009
|
|||
Investment properties
|
|
25
|
22,829
|
22,317
|
|||
Investments in joint ventures and associates accounted for using
the equity method
|
|
1,500
|
2,207
|
1,916
|
|||
Loans
|
C3.3
|
16,583
|
22,938
|
23,054
|
|||
Equity securities and holdings in collective investment
schemesnote
(ii)
|
|
247,281
|
273,484
|
302,203
|
|||
Debt securitiesnote
(ii)
|
C3.2
|
134,570
|
223,333
|
231,835
|
|||
Derivative assets
|
|
1,745
|
4,450
|
6,495
|
|||
Other investmentsnote
(ii)
|
|
1,302
|
8,294
|
7,605
|
|||
Deposits
|
|
2,615
|
15,023
|
15,200
|
|||
Assets held for sale
|
|
-
|
13,472
|
51
|
|||
Cash and cash equivalents
|
|
6,965
|
15,442
|
14,461
|
|||
Total assets
|
C1
|
454,214
|
647,810
|
668,203
|
|||
|
|
|
|
|
|||
Equity
|
|
|
|
|
|||
Shareholders' equity
|
|
19,477
|
21,968
|
21,762
|
|||
Non-controlling interests
|
|
192
|
23
|
9
|
|||
Total equity
|
|
19,669
|
21,991
|
21,771
|
|||
|
|
|
|
|
|||
Liabilities
|
|
|
|
|
|||
Insurance contract liabilities
|
C4.1
|
380,143
|
410,947
|
443,952
|
|||
Investment contract liabilities with discretionary participation
features
|
C4.1
|
633
|
85,858
|
84,789
|
|||
Investment contract liabilities without discretionary participation
features
|
C4.1
|
4,902
|
24,481
|
27,589
|
|||
Unallocated surplus of with-profits funds
|
C4.1
|
4,750
|
20,180
|
22,931
|
|||
Core structural borrowings of shareholder-financed
businesses
|
C6.1
|
5,594
|
9,761
|
8,496
|
|||
Operational borrowingsnote
(i)
|
C6.2
|
2,645
|
6,289
|
7,450
|
|||
Obligations under funding, securities lending and sale and
repurchase agreements
|
|
8,901
|
8,901
|
7,660
|
|||
Net asset value attributable to unit holders of consolidated
investment funds
|
|
5,998
|
14,839
|
12,025
|
|||
Deferred tax liabilities
|
C8
|
5,237
|
5,122
|
6,378
|
|||
Current tax liabilities
|
|
396
|
723
|
726
|
|||
Accruals, deferred income and other liabilities
|
|
14,488
|
19,421
|
19,190
|
|||
Provisions
|
|
466
|
1,373
|
1,519
|
|||
Derivative liabilities
|
|
392
|
4,465
|
3,727
|
|||
Liabilities held for sale
|
|
-
|
13,459
|
-
|
|||
Total liabilities
|
C1
|
434,545
|
625,819
|
646,432
|
|||
Total equity and liabilities
|
|
454,214
|
647,810
|
668,203
|
|
|
|
|
|
|
|
|
|
Note
|
2019 $m
|
2018* $m
|
Continuing operations:
|
|
|
|
||
Cash flows from operating activities
|
|
|
|
||
Profit before tax (being tax attributable to
shareholders' and policyholders' returns)
|
|
2,287
|
3,557
|
||
Adjustments to profit before tax for non-cash movements in
operating assets and liabilities:
|
|
|
|
||
|
Investments
|
|
(60,812)
|
2,236
|
|
|
Other non-investment and non-cash assets
|
|
(2,487)
|
(1,996)
|
|
|
Policyholder liabilities (including unallocated
surplus)
|
|
56,067
|
(1,641)
|
|
|
Other liabilities (including operational borrowings)
|
|
5,097
|
860
|
|
Investment income and interest payments included in profit before
tax
|
|
(4,803)
|
(4,148)
|
||
Operating cash items:
|
|
|
|
||
|
Interest receipts and payments
|
|
4,277
|
3,912
|
|
|
Dividend receipts
|
|
978
|
744
|
|
|
Tax paid
|
|
(717)
|
(477)
|
|
Other non-cash items
|
|
(96)
|
308
|
||
Net cash flows from operating activities
|
|
(209)
|
3,355
|
||
Cash flows from investing activities
|
|
|
|
||
Purchases of property, plant and equipment
|
|
(64)
|
(134)
|
||
Acquisition of business and intangiblesnote
(i)
|
|
(635)
|
(442)
|
||
Disposal of businesses
|
|
375
|
-
|
||
Net cash flows from investing activities
|
|
(324)
|
(576)
|
||
Cash flows from financing activities
|
|
|
|
||
Structural borrowings of shareholder-financed
operations:note
(ii)
|
C6.1
|
|
|
||
|
Issue of subordinated debt, net of costs
|
|
367
|
2,079
|
|
|
Redemption of subordinated debt
|
|
(504)
|
(553)
|
|
|
Fees paid to modify terms and conditions of debt issued by the
Group
|
|
(182)
|
(44)
|
|
|
Interest paid
|
|
(526)
|
(502)
|
|
Equity capital:
|
|
|
|
||
|
Issues of ordinary share capital
|
|
22
|
23
|
|
|
External dividends
|
|
(1,634)
|
(1,662)
|
|
Net cash flows from financing activities
|
|
(2,457)
|
(659)
|
||
Net (decrease) increase in cash and cash equivalents from
continuing operationsnote
(iii)
|
|
(2,990)
|
2,120
|
||
Net cash flows from discontinued operationsnote
(iii)
|
D2
|
(5,690)
|
(610)
|
||
Cash and cash equivalents at beginning of year
|
|
15,442
|
14,461
|
||
Effect of exchange rate changes on cash and cash
equivalents
|
|
203
|
(529)
|
||
Cash and cash equivalents at end of year
|
|
6,965
|
15,442
|
||
Comprising:
|
|
|
|
||
|
Cash and cash equivalents from continuing operations
|
|
6,965
|
9,394
|
|
|
Cash and cash equivalents from discontinued operations
|
D2
|
-
|
6,048
|
$ : local currency
|
Closing rate at
31 Dec 2019
|
Average rate
for 2019
|
Closing rate at
31 Dec 2018
|
Average rate
for 2018
|
Opening rate at
1 Jan 2018
|
China
|
6.97
|
6.91
|
6.87
|
6.61
|
6.51
|
Hong
Kong
|
7.79
|
7.84
|
7.83
|
7.84
|
7.82
|
Indonesia
|
13,882.50
|
14,140.84
|
14,380.00
|
14,220.82
|
13,567.00
|
Malaysia
|
4.09
|
4.14
|
4.13
|
4.03
|
4.05
|
Singapore
|
1.34
|
1.36
|
1.36
|
1.35
|
1.34
|
Thailand
|
29.75
|
31.05
|
32.56
|
32.30
|
32.59
|
UK
|
0.75
|
0.78
|
0.79
|
0.75
|
0.74
|
Vietnam
|
23,172.50
|
23,227.64
|
23,195.00
|
23,017.17
|
22,708.16
|
Effect of adoption of IFRS 16 at 1 January 2019
|
Continuing
operations
$m
|
Discontinued
operations
$m
|
Total
Group
$m
|
Assets
|
|
|
|
Property, plant and equipment (right-of-use assets)
|
527
|
368
|
895
|
Total assets
|
527
|
368
|
895
|
Liabilities
|
|
|
|
Operational borrowings (lease liability)
|
541
|
414
|
955
|
Accruals, deferred income and other liabilities (accrued lease
payment balance under IAS 17)
|
(14)
|
(46)
|
(60)
|
Total liabilities
|
527
|
368
|
895
|
|
|
|
Total Group
$m
|
IFRS 16 operating lease liability shown in the table
above
|
|
|
955
|
Add back impact of discounting
|
|
|
210
|
IFRS 16 operating lease liability on an undiscounted
basis
|
|
|
1,165
|
Difference in lease rental payments due to probable renewals or
early termination decisions reflected above
|
(48)
|
||
Other
|
|
|
(6)
|
Total operating lease commitments at 31 December 2018*
|
1,111
|
|
|
|
|
2019 $m
|
|
2018 $m
|
|
2019 vs 2018 %
|
|
||
|
|
|
|
|
|
AER
|
CER
|
|
AER
|
CER
|
|
|
|
|
Note
|
|
|
note (i)
|
note (i)
|
|
note (i)
|
note (i)
|
|
Asia
|
|
|
|
|
|
|
|
|
|
||
Insurance operations
|
B3(a)
|
2,993
|
|
2,646
|
2,633
|
|
13%
|
14%
|
|
||
Asset management
|
|
283
|
|
242
|
239
|
|
17%
|
18%
|
|
||
Total Asia
|
|
3,276
|
|
2,888
|
2,872
|
|
13%
|
14%
|
|
||
US
|
|
|
|
|
|
|
|
|
|
||
Jackson (US insurance operations)
|
B3(b)
|
3,038
|
|
2,552
|
2,552
|
|
19%
|
19%
|
|
||
Asset management
|
|
32
|
|
11
|
11
|
|
191%
|
191%
|
|
||
Total US
|
|
3,070
|
|
2,563
|
2,563
|
|
20%
|
20%
|
|
||
Total segment profit from continuing operations
|
|
6,346
|
|
5,451
|
5,435
|
|
16%
|
17%
|
|
||
Other income and expenditure
|
|
|
|
|
|
|
|
|
|
||
|
Investment return and other income
|
|
50
|
|
70
|
67
|
|
(29)%
|
(25)%
|
|
|
|
Interest payable on core structural borrowingsnote
(ii)
|
|
(516)
|
|
(547)
|
(523)
|
|
6%
|
1%
|
|
|
|
Corporate expenditurenote
(iii)
|
|
(460)
|
|
(490)
|
(477)
|
|
6%
|
4%
|
|
|
Total other income and expenditure
|
|
(926)
|
|
(967)
|
(933)
|
|
4%
|
1%
|
|
||
Restructuring costsnote
(iv)
|
|
(110)
|
|
(75)
|
(73)
|
|
(47)%
|
(51)%
|
|
||
Adjusted IFRS operating profit based on longer-term investment
returns
|
|
5,310
|
|
4,409
|
4,429
|
|
20%
|
20%
|
|
||
Short-term fluctuations in investment returns on
shareholder-backed business
|
B1.2
|
(3,203)
|
|
(791)
|
(796)
|
|
(305)%
|
(302)%
|
|
||
Amortisation of acquisition accounting
adjustmentsnote
(v)
|
|
(43)
|
|
(61)
|
(61)
|
|
30%
|
30%
|
|
||
(Loss) on disposal of businesses and corporate
transactions
|
D1
|
(142)
|
|
(107)
|
(106)
|
|
(33)%
|
(34)%
|
|
||
Profit from continuing operations before tax attributable to
shareholders
|
|
1,922
|
|
3,450
|
3,466
|
|
(44)%
|
(45)%
|
|
||
Tax credit (charge) attributable to shareholders'
returns
|
B4
|
31
|
|
(569)
|
(570)
|
|
105%
|
105%
|
|
||
Profit from continuing operations
|
|
1,953
|
|
2,881
|
2,896
|
|
(32)%
|
(33)%
|
|
||
Profit from discontinued operations
|
D2
|
1,319
|
|
1,142
|
1,092
|
|
15%
|
21%
|
|
||
Re-measurement of discontinued operations on demerger
|
D2
|
188
|
|
-
|
-
|
|
-%
|
-%
|
|
||
Cumulative exchange loss recycled from other comprehensive
income
|
D2
|
(2,668)
|
|
-
|
-
|
|
-%
|
-%
|
|
||
(Loss) profit from discontinued operations
|
|
(1,161)
|
|
1,142
|
1,092
|
|
(202)%
|
(206)%
|
|
||
Profit for the year
|
|
792
|
|
4,023
|
3,988
|
|
(80)%
|
(80)%
|
|
||
Attributable to:
|
|
|
|
|
|
|
|
|
|
||
Equity holders of the Company
|
|
|
|
|
|
|
|
|
|
||
|
From continuing operations
|
|
1,944
|
|
2,877
|
2,892
|
|
(32)%
|
(33)%
|
|
|
|
From discontinued operations
|
|
(1,161)
|
|
1,142
|
1,092
|
|
(202)%
|
(206)%
|
|
|
|
Non-controlling interests from continuing operations
|
|
9
|
|
4
|
4
|
|
125%
|
125%
|
|
|
|
|
|
|
792
|
|
4,023
|
3,988
|
|
(80)%
|
(80)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in cents)
|
|
2019
|
|
2018
|
|
2019 vs 2018 %
|
|
||||
|
|
|
|
|
|
AER
|
CER
|
|
AER
|
CER
|
|
|
|
|
Note
|
|
|
note (i)
|
note (i)
|
|
note (i)
|
note (i)
|
|
Based on adjusted IFRS operating profit based on longer-term
investment returns, net of tax, from continuing
operationsnote
(vi)
|
B5
|
175.0¢
|
|
145.2¢
|
146.0¢
|
|
21%
|
20%
|
|
||
Based on profit for the year from continuing
operations
|
B5
|
75.1¢
|
|
111.7¢
|
112.5¢
|
|
(33)%
|
(33)%
|
|
||
Based on (loss) profit for the year from discontinued
operations
|
B5
|
(44.8)¢
|
|
44.3¢
|
42.4¢
|
|
(201)%
|
(206)%
|
|
|
|
|
|
|
|
2019 $m
|
2018 $m
|
Asia operationsnote
(i)
|
657
|
(684)
|
|
US operationsnote
(ii)
|
(3,757)
|
(134)
|
|
Other operations
|
(103)
|
27
|
|
Total
|
(3,203)
|
(791)
|
|
|
2019 $m
|
2018 $m
|
Net equity hedge resultnote
(a)
|
(4,582)
|
(78)
|
|
Other than equity-related derivativesnote
(b)
|
678
|
(85)
|
|
Debt securitiesnote
(c)
|
156
|
(42)
|
|
Equity-type investments: actual less longer-term
return
|
18
|
51
|
|
Other items
|
(27)
|
20
|
|
Total net of related DAC amortisation
|
(3,757)
|
(134)
|
|
2019 $m
|
2018 $m
|
Fair value movements on equity hedge instruments*
|
(5,314)
|
399
|
Accounting value movements on the variable and fixed index annuity
guarantee liabilities
|
(22)
|
(1,194)
|
Fee assessments net of claim payments
|
754
|
717
|
Total net of related DAC amortisation
|
(4,582)
|
(78)
|
|
|
2019 $m
|
2018 $m
|
(Charges) credits in the year:
|
|
|
|
|
Losses on sales of impaired and deteriorating bonds
|
(28)
|
(6)
|
|
Bond write-downs
|
(15)
|
(5)
|
|
Recoveries/reversals
|
1
|
25
|
|
Total (charges) credits in the year
|
(42)
|
14
|
Risk margin allowance deducted from adjusted IFRS operating profit
based on longer-term investment returns*
|
109
|
104
|
|
|
|
67
|
118
|
Interest-related realised gains (losses):
|
|
|
|
|
Gains (losses) arising in the year
|
220
|
(12)
|
|
Less: Amortisation of gains and losses arising in current and prior
years to adjusted IFRS operating profit based on longer-term
investment returns
|
(129)
|
(155)
|
|
|
91
|
(167)
|
Related amortisation of deferred acquisition costs
|
(2)
|
7
|
|
Total short-term fluctuations related to debt securities net of
related DAC amortisation
|
156
|
(42)
|
Moody's rating category (or equivalent under NAIC ratings of
mortgage-backed securities)
|
|||||||
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||||
|
Average
book value
|
RMR
|
Annual
expected loss
|
|
Average
book value
|
RMR
|
Annual
expected loss
|
|
$m
|
%
|
$m
|
|
$m
|
%
|
$m
|
|
|
|
|
|
|
|
|
A3 or higher
|
38,811
|
0.10
|
(38)
|
|
29,982
|
0.10
|
(31)
|
Baa1, 2 or 3
|
22,365
|
0.24
|
(53)
|
|
25,814
|
0.21
|
(55)
|
Ba1, 2 or 3
|
1,094
|
0.85
|
(9)
|
|
1,042
|
0.98
|
(10)
|
B1, 2 or 3
|
223
|
2.56
|
(6)
|
|
289
|
2.64
|
(8)
|
Below B3
|
75
|
3.39
|
(3)
|
|
11
|
3.69
|
-
|
Total
|
62,568
|
0.17
|
(109)
|
|
57,138
|
0.18
|
(104)
|
|
|
|
|
|
|
|
|
Related amortisation of deferred acquisition costs
|
19
|
|
|
|
22
|
||
Risk margin reserve charge to adjusted IFRS operating profit based
on longer-term investment returns for longer-term credit-related
losses
|
(90)
|
|
|
|
(82)
|
|
2019
|
2018
|
Equity-type securities such as common and preferred stock and
portfolio holdings in mutual funds
|
5.5% to 6.7%
|
6.7% to 7.2%
|
Other equity-type securities such as investments in limited
partnerships and private equity funds
|
7.5% to 8.7%
|
8.7% to 9.2%
|
|
2019 $m
|
2018 $m
|
Acquisition costs incurred for insurance policies
|
(4,177)
|
(4,313)
|
Acquisition costs deferred less amortisation of acquisition
costsnote
(i)
|
2,116
|
59
|
Administration costs and other expenditure*
|
(5,019)
|
(3,877)
|
Movements in amounts attributable to external unit holders of
consolidated investment funds
|
(203)
|
(396)
|
Total acquisition costs and other expenditure from continuing
operations
|
(7,283)
|
(8,527)
|
|
|
2019 $m
|
|
2018 $m
|
||
Tax charge
|
Current
tax
|
Deferred
tax
|
Total
|
|
Total
|
|
Attributable to shareholders:
|
|
|
|
|
|
|
|
Asia operations
|
(306)
|
(162)
|
(468)
|
|
(369)
|
|
US operations
|
(307)
|
652
|
345
|
|
(340)
|
|
Other operations
|
182
|
(28)
|
154
|
|
140
|
Tax (charge) credit attributable to shareholders'
returns
|
(431)
|
462
|
31
|
|
(569)
|
|
Attributable to policyholders:
|
|
|
|
|
|
|
|
Asia operations
|
(130)
|
(235)
|
(365)
|
|
(107)
|
Total tax (charge) credit
|
(561)
|
227
|
(334)
|
|
(676)
|
|
|
|
2019
|
|
2018
|
|||||
|
|
|
Asia
operations
|
US
operations
|
Other*
operations
|
Total
attributable to
shareholders
|
Percentage
impact
on ETR
|
|
Total
attributable to
shareholders
|
Percentage
impact
on ETR
|
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
|
$m
|
%
|
Adjusted IFRS operating profit (loss) based on longer-term
investment returns
|
3,276
|
3,070
|
(1,036)
|
5,310
|
|
|
4,409
|
|
||
Non-operating profit (loss)
|
917
|
(3,795)
|
(510)
|
(3,388)
|
|
|
(959)
|
|
||
Profit (loss) before tax
|
4,193
|
(725)
|
(1,546)
|
1,922
|
|
|
3,450
|
|
||
Expected tax rate:
|
20%
|
21%
|
19%
|
20%
|
|
|
22%
|
|
||
|
Tax at the expected rate
|
839
|
(152)
|
(294)
|
393
|
20.4%
|
|
759
|
22.0%
|
|
|
Effects of recurring tax reconciliation items:
|
|
|
|
|
|
|
|
|
|
|
|
Income not taxable or taxable at concessionary rates
|
(94)
|
(29)
|
(3)
|
(126)
|
(6.6)%
|
|
(71)
|
(2.1)%
|
|
|
Deductions not allowable for tax purposes
|
40
|
10
|
5
|
55
|
2.9%
|
|
69
|
2.0%
|
|
|
Items related to taxation of life insurance
businessesnote
(i)
|
(192)
|
(125)
|
-
|
(317)
|
(16.5)%
|
|
(128)
|
(3.7)%
|
|
|
Deferred tax adjustments
|
(28)
|
(1)
|
(4)
|
(33)
|
(1.7)%
|
|
(55)
|
(1.6)%
|
|
|
Unrecognised tax losses note
(ii)
|
-
|
-
|
46
|
46
|
2.4%
|
|
-
|
-
|
|
|
Effect of results of joint ventures and
associatesnote
(iii)
|
(100)
|
-
|
-
|
(100)
|
(5.2)%
|
|
(83)
|
(2.4)%
|
|
|
Irrecoverable withholding taxesnote
(iv)
|
-
|
-
|
59
|
59
|
3.1%
|
|
63
|
1.8%
|
|
|
Other
|
5
|
5
|
3
|
13
|
0.7%
|
|
9
|
0.3%
|
|
|
Total
|
(369)
|
(140)
|
106
|
(403)
|
(20.9)%
|
|
(196)
|
(5.7)%
|
|
Effects of non-recurring tax reconciliation items:
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in relation to prior years
|
4
|
(53)
|
(18)
|
(67)
|
(3.5)%
|
|
(4)
|
(0.1)%
|
|
|
Movements in provisions for open tax mattersnote
(v)
|
17
|
-
|
(18)
|
(1)
|
(0.0%)
|
|
10
|
0.3%
|
|
|
Demerger related activitiesnote
(vi)
|
-
|
-
|
76
|
76
|
4.1%
|
|
-
|
-
|
|
|
Adjustments in relation to business disposals
|
(23)
|
-
|
(6)
|
(29)
|
(1.4)%
|
|
-
|
-
|
|
|
Total
|
(2)
|
(53)
|
34
|
(21)
|
(1.1)%
|
|
6
|
0.2%
|
Total actual tax charge (credit)
|
468
|
(345)
|
(154)
|
(31)
|
(1.6)%
|
|
569
|
16.5%
|
||
Analysed into:
|
|
|
|
|
|
|
|
|
||
|
Tax on adjusted IFRS operating profit (loss) based on longer-term
investment returns
|
436
|
437
|
(100)
|
773
|
|
|
666
|
|
|
|
Tax on non-operating profit (loss)
|
32
|
(782)
|
(54)
|
(804)
|
|
|
(97)
|
|
|
Actual tax rate on:
|
|
|
|
|
|
|
|
|
||
|
Adjusted IFRS operating profit (loss) based on longer-term
investment returns:
|
|
|
|
|
|
|
|
|
|
|
|
Including non-recurring tax reconciling items
|
13%
|
14%
|
10%
|
15%
|
|
|
15%
|
|
|
|
Excluding non-recurring tax reconciling items
|
13%
|
16%
|
10%
|
15%
|
|
|
15% note
(vii)
|
|
|
Total profit (loss)
|
11%
|
48%
|
10%
|
(2)%
|
|
|
16% note
(vii)
|
|
|
|
$m
|
Balance at beginning of year
|
190
|
|
|
Movements in the current year included in:
|
|
|
Tax charge attributable to shareholders
|
(1)
|
|
Other movements*
|
9
|
Balance at end of year
|
198
|
|
2018
|
|||
|
Asia
operations
|
US
operations
|
Other
operations
|
Total attributable to shareholders
|
Adjusted IFRS operating profit based on longer-term investment
returns
|
14%
|
16%
|
14%
|
15%
|
Profit before tax
|
17%
|
15%
|
13%
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|||||
|
|
|
Before
tax
|
Tax
|
Non-controlling interests
|
Net of tax
and non-
controlling
interests
|
Basic
earnings
per share
|
Diluted
earnings
per share
|
|
|
|
$m
|
$m
|
$m
|
$m
|
cents
|
cents
|
|
|
Note
|
B1.1
|
B4
|
|
|
|
|
Based on adjusted IFRS operating profit based on longer-term
investment returns
|
|
5,310
|
(773)
|
(9)
|
4,528
|
175.0¢
|
175.0¢
|
|
Short-term fluctuations in investment returns on shareholder-backed
business
|
|
(3,203)
|
772
|
-
|
(2,431)
|
(94.0)¢
|
(94.0)¢
|
|
Amortisation of acquisition accounting adjustments
|
|
(43)
|
8
|
-
|
(35)
|
(1.3)¢
|
(1.3)¢
|
|
Loss on disposal of businesses and corporate
transactions
|
|
(142)
|
24
|
-
|
(118)
|
(4.6)¢
|
(4.6)¢
|
|
Based on profit for the year from continuing
operations
|
|
1,922
|
31
|
(9)
|
1,944
|
75.1¢
|
75.1¢
|
|
Based on (loss) for the year from discontinued
operations
|
D2
|
|
|
|
(1,161)
|
(44.8)¢
|
(44.8)¢
|
|
Based on profit for the year
|
|
|
|
|
783
|
30.3¢
|
30.3¢
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|||||
|
|
|
Before
tax
|
Tax
|
Non-controlling interests
|
Net of tax
and non-
controlling
interests
|
Basic
earnings
per share
|
Diluted
earnings
per share
|
|
|
|
$m
|
$m
|
$m
|
$m
|
cents
|
cents
|
|
|
Note
|
B1.1
|
B4
|
|
|
|
|
Based on adjusted IFRS operating profit based on longer-term
investment returns
|
|
4,409
|
(666)
|
(4)
|
3,739
|
145.2¢
|
145.1¢
|
|
Short-term fluctuations in investment returns on shareholder-backed
business
|
|
(791)
|
70
|
-
|
(721)
|
(28.0)¢
|
(28.0)¢
|
|
Amortisation of acquisition accounting adjustments
|
|
(61)
|
11
|
-
|
(50)
|
(1.9)¢
|
(1.9)¢
|
|
Loss on disposal of businesses and corporate
transactions
|
|
(107)
|
16
|
-
|
(91)
|
(3.6)¢
|
(3.5)¢
|
|
Based on profit for the year from continuing
operations
|
|
3,450
|
(569)
|
(4)
|
2,877
|
111.7¢
|
111.7¢
|
|
Based on profit for the year from discontinued
operations
|
D2
|
|
|
|
1,142
|
44.3¢
|
44.3¢
|
|
Based on profit for the year
|
|
|
|
|
4,019
|
156.0¢
|
156.0¢
|
|
Number of shares (in millions)
|
|
Weighted average number of shares* for calculation of:
|
2019
|
2018
|
Basic earnings per share
|
2,587
|
2,575
|
Shares under option at end of year
|
4
|
5
|
Shares that would have been issued at fair value on assumed option
price
|
(4)
|
(4)
|
Diluted earnings per share
|
2,587
|
2,576
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||
|
Cents per share
|
$m
|
|
Cents per share
|
$m
|
|
Dividends relating to reporting year:
|
|
|
|
|
|
|
|
First interim ordinary dividend
|
20.29¢
|
528
|
|
20.55¢
|
530
|
|
Second interim ordinary dividend
|
25.97¢
|
675
|
|
42.89¢
|
1,108
|
Total
|
46.26¢
|
1,203
|
|
63.44¢
|
1,638
|
|
Dividends paid in reporting year:
|
|
|
|
|
|
|
|
Current year first interim ordinary dividend
|
20.29¢
|
526
|
|
20.55¢
|
530
|
|
Second interim ordinary dividend for prior year
|
42.89¢
|
1,108
|
|
43.79¢
|
1,132
|
Total
|
63.18¢
|
1,634
|
|
64.34¢
|
1,662
|
|
|
|
|
|
|
31 Dec 2019 $m
|
|
|
|
31 Dec 2018 $m
|
|
|
|
|
|
Asia
|
US
|
Unallocated
to a segment
(central
operations)
|
Elimination
of intra-
group
debtors
and
creditors
|
|
Group
total
|
|
Group
total
|
By operating segment
|
Note
|
C2.1
|
C2.2
|
note (i)
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
|
|
|
|
||
Goodwill
|
C5.1
|
926
|
-
|
43
|
-
|
|
969
|
|
2,365
|
||
Deferred acquisition costs and other intangible assets
|
C5.2
|
5,154
|
12,264
|
58
|
-
|
|
17,476
|
|
15,185
|
||
Reinsurers' share of insurance contract liabilities
|
|
5,458
|
8,394
|
4
|
-
|
|
13,856
|
|
14,193
|
||
Other assetsnote
(ii)
|
|
3,208
|
5,432
|
3,339
|
(2,652)
|
|
9,327
|
|
14,595
|
||
Investment properties
|
|
7
|
7
|
11
|
-
|
|
25
|
|
22,829
|
||
Investment in joint ventures and associates accounted for using the
equity method
|
|
1,500
|
-
|
-
|
-
|
|
1,500
|
|
2,207
|
||
Financial investments
|
|
131,499
|
271,190
|
1,407
|
-
|
|
404,096
|
|
547,522
|
||
Assets held for sale
|
|
-
|
-
|
-
|
-
|
|
-
|
|
13,472
|
||
Cash and cash equivalents
|
|
2,490
|
1,960
|
2,515
|
-
|
|
6,965
|
|
15,442
|
||
Total assets
|
|
150,242
|
299,247
|
7,377
|
(2,652)
|
|
454,214
|
|
647,810
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
||
Shareholders' equity
|
|
10,866
|
8,929
|
(318)
|
-
|
|
19,477
|
|
21,968
|
||
Non-controlling interests
|
|
155
|
-
|
37
|
-
|
|
192
|
|
23
|
||
Total equity
|
|
11,021
|
8,929
|
(281)
|
-
|
|
19,669
|
|
21,991
|
||
Liabilities
|
|
|
|
|
|
|
|
|
|
||
Contract liabilities (including amounts in respect of contracts
classified as investment contracts under IFRS 4)
|
C4.1
|
115,943
|
269,549
|
186
|
-
|
|
385,678
|
|
521,286
|
||
Unallocated surplus of with-profits funds
|
C4.1
|
4,750
|
-
|
-
|
-
|
|
4,750
|
|
20,180
|
||
Core structural borrowings of shareholder-financed
businesses
|
C6.1
|
-
|
250
|
5,344
|
-
|
|
5,594
|
|
9,761
|
||
Operational borrowings
|
C6.2
|
473
|
1,501
|
671
|
-
|
|
2,645
|
|
6,289
|
||
Other liabilities
|
|
18,055
|
19,018
|
1,457
|
(2,652)
|
|
35,878
|
|
54,844
|
||
Liabilities held for sale
|
|
-
|
-
|
-
|
-
|
|
-
|
|
13,459
|
||
Total liabilities
|
|
139,221
|
290,318
|
7,658
|
(2,652)
|
|
434,545
|
|
625,819
|
||
Total equity and liabilities
|
|
150,242
|
299,247
|
7,377
|
(2,652)
|
|
454,214
|
|
647,810
|
|
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||||||
|
|
|
|
|
Total insurance
|
|
|
|
|
|
|
|
|
|
|
Note
|
With
-profits
business*
|
Unit
-linked
assets
and
liabilities
|
Other
business
|
Total
|
Asset-
manage
ment
|
Elimina-
tions
|
Total
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
||
Goodwill
|
|
-
|
-
|
327
|
327
|
599
|
-
|
926
|
|
634
|
||
Deferred acquisition costs and other intangible assets
|
|
67
|
-
|
5,072
|
5,139
|
15
|
-
|
5,154
|
|
3,741
|
||
Reinsurers' share of insurance contract liabilities
|
|
152
|
-
|
5,306
|
5,458
|
-
|
-
|
5,458
|
|
3,537
|
||
Other assets
|
|
1,210
|
237
|
1,584
|
3,031
|
212
|
(35)
|
3,208
|
|
4,987
|
||
Investment properties
|
|
-
|
-
|
7
|
7
|
-
|
-
|
7
|
|
6
|
||
Investment in joint ventures and associates accounted for using the
equity method
|
|
-
|
-
|
1,263
|
1,263
|
237
|
-
|
1,500
|
|
1,262
|
||
Financial investments
|
|
76,581
|
24,628
|
29,982
|
131,191
|
308
|
-
|
131,499
|
|
103,016
|
||
Cash and cash equivalents
|
|
963
|
356
|
1,015
|
2,334
|
156
|
-
|
2,490
|
|
2,789
|
||
Total assets
|
|
78,973
|
25,221
|
44,556
|
148,750
|
1,527
|
(35)
|
150,242
|
|
119,972
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
-
|
-
|
9,803
|
9,803
|
1,218
|
-
|
11,021
|
|
8,187
|
||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||
Contract liabilities (including amounts in respect of contracts
classified as investment contracts under IFRS 4)
|
C4.2
|
65,558
|
23,571
|
26,814
|
115,943
|
-
|
-
|
115,943
|
|
93,248
|
||
Unallocated surplus of with-profits funds
|
C4.2
|
4,750
|
-
|
-
|
4,750
|
-
|
-
|
4,750
|
|
3,198
|
||
Operational borrowings
|
|
302
|
21
|
123
|
446
|
27
|
-
|
473
|
|
102
|
||
Other liabilities
|
|
8,363
|
1,629
|
7,816
|
17,808
|
282
|
(35)
|
18,055
|
|
15,237
|
||
Total liabilities
|
|
78,973
|
25,221
|
34,753
|
138,947
|
309
|
(35)
|
139,221
|
|
111,785
|
||
Total equity and liabilities
|
|
78,973
|
25,221
|
44,556
|
148,750
|
1,527
|
(35)
|
150,242
|
|
119,972
|
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
|||||
|
|
|
|
Total insurance
|
|
|
|
|
|
|
|
|
Note
|
Variable
annuity
separate
account
assets
and
liabilities
|
Fixed
annuity,
GICs and
other
business
|
Total
|
Asset
manage-
ment
|
Elimina-
tions
|
Total
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
Deferred acquisition costs and other intangible assets
|
|
-
|
12,264
|
12,264
|
-
|
-
|
12,264
|
|
11,140
|
|
Reinsurers' share of insurance contract liabilities
|
|
-
|
8,394
|
8,394
|
-
|
-
|
8,394
|
|
8,485
|
|
Other assets
|
|
-
|
5,293
|
5,293
|
228
|
(89)
|
5,432
|
|
4,569
|
|
Investment properties
|
|
-
|
7
|
7
|
-
|
-
|
7
|
|
8
|
|
Financial investments
|
|
195,070
|
76,106
|
271,176
|
14
|
-
|
271,190
|
|
232,955
|
|
Cash and cash equivalents
|
|
-
|
1,912
|
1,912
|
48
|
-
|
1,960
|
|
3,827
|
|
Total assets
|
|
195,070
|
103,976
|
299,046
|
290
|
(89)
|
299,247
|
|
260,984
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
-
|
8,923
|
8,923
|
6
|
-
|
8,929
|
|
7,163
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Contract liabilities (including amounts in respect of contracts
classified as investment contracts under IFRS 4)
|
C4.3
|
195,070
|
74,479
|
269,549
|
-
|
-
|
269,549
|
|
236,380
|
|
Core structural borrowings of shareholder-financed
businesses
|
C6.1
|
-
|
250
|
250
|
-
|
-
|
250
|
|
250
|
|
Operational borrowings
|
|
-
|
1,460
|
1,460
|
41
|
-
|
1,501
|
|
418
|
|
Other liabilities
|
|
-
|
18,864
|
18,864
|
243
|
(89)
|
19,018
|
|
16,773
|
|
Total liabilities
|
|
195,070
|
95,053
|
290,123
|
284
|
(89)
|
290,318
|
|
253,821
|
|
Total equity and liabilities
|
|
195,070
|
103,976
|
299,046
|
290
|
(89)
|
299,247
|
|
260,984
|
|
|
31 Dec 2019 $m
|
|||
|
Level 1
|
Level 2
|
Level 3
|
|
|
Analysis of financial investments, net of derivative liabilities by
business type from continuing operations
|
Quoted prices
(unadjusted)
in active markets
|
Valuation based
on significant
observable
market inputs
|
Valuation based
on significant
unobservable
market inputs
|
Total
|
|
With-profits
|
|
|
|
|
|
Equity securities and holdings in collective investment
schemes
|
25,850
|
3,268
|
254
|
29,372
|
|
Debt securities
|
40,291
|
4,485
|
6
|
44,782
|
|
Other investments (including derivative assets)
|
57
|
103
|
-
|
160
|
|
Derivative liabilities
|
(137)
|
(94)
|
-
|
(231)
|
|
Total financial investments, net of derivative
liabilities
|
66,061
|
7,762
|
260
|
74,083
|
|
Percentage of total (%)
|
90%
|
10%
|
0%
|
100%
|
|
Unit-linked and variable annuity separate account
|
|
|
|
|
|
Equity securities and holdings in collective investment
schemes
|
213,797
|
365
|
-
|
214,162
|
|
Debt securities
|
4,036
|
1,117
|
-
|
5,153
|
|
Other investments (including derivative assets)
|
6
|
4
|
-
|
10
|
|
Derivative liabilities
|
(1)
|
-
|
-
|
(1)
|
|
Total financial investments, net of derivative
liabilities
|
217,838
|
1,486
|
-
|
219,324
|
|
Percentage of total (%)
|
99%
|
1%
|
0%
|
100%
|
|
Non-linked shareholder-backed
|
|
|
|
|
|
Loans
|
-
|
-
|
3,587
|
3,587
|
|
Equity securities and holdings in collective investment
schemes
|
3,638
|
87
|
22
|
3,747
|
|
Debt securities
|
23,600
|
61,035
|
-
|
84,635
|
|
Other investments (including derivative assets)
|
7
|
1,569
|
1,301
|
2,877
|
|
Derivative liabilities
|
(47)
|
(113)
|
-
|
(160)
|
|
Total financial investments, net of derivative
liabilities
|
27,198
|
62,578
|
4,910
|
94,686
|
|
Percentage of total (%)
|
29%
|
66%
|
5%
|
100%
|
|
|
|
|
|
|
|
Group total analysis, including other financial liabilities
held
at fair value from continuing operations
|
|
|
|
|
|
Loans
|
-
|
-
|
3,587
|
3,587
|
|
Equity securities and holdings in collective investment
schemes
|
243,285
|
3,720
|
276
|
247,281
|
|
Debt securities
|
67,927
|
66,637
|
6
|
134,570
|
|
Other investments (including derivative assets)
|
70
|
1,676
|
1,301
|
3,047
|
|
Derivative liabilities
|
(185)
|
(207)
|
-
|
(392)
|
|
Total financial investments, net of derivative
liabilities
|
311,097
|
71,826
|
5,170
|
388,093
|
|
Investment contract liabilities without discretionary participation
features held at fair value
|
-
|
(1,011)
|
-
|
(1,011)
|
|
Net asset value attributable to unit holders of consolidated
investment funds
|
(5,973)
|
(23)
|
(2)
|
(5,998)
|
|
Other financial liabilities held at fair value
|
-
|
-
|
(3,760)
|
(3,760)
|
|
Total financial instruments at fair value
|
305,124
|
70,792
|
1,408
|
377,324
|
|
Percentage of total (%)
|
81%
|
19%
|
0%
|
100%
|
|
|
31 Dec 2018 $m
|
|||
|
Level 1
|
Level 2
|
Level 3
|
|
|
Analysis of financial investments, net of derivative liabilities by
business type
|
Quoted prices
(unadjusted)
in active markets
|
Valuation based
on significant
observable
market inputs
|
Valuation based
on significant
unobservable
market inputs
|
Total
|
|
With-profits
|
|
|
|
|
|
Loans
|
-
|
-
|
2,168
|
2,168
|
|
Equity securities and holdings in collective investment
schemes
|
66,636
|
6,937
|
621
|
74,194
|
|
Debt securities
|
39,750
|
62,382
|
1,033
|
103,165
|
|
Other investments (including derivative assets)
|
183
|
4,156
|
5,508
|
9,847
|
|
Derivative liabilities
|
(108)
|
(1,568)
|
-
|
(1,676)
|
|
Total financial investments, net of derivative
liabilities
|
106,461
|
71,907
|
9,330
|
187,698
|
|
Percentage of total (%)
|
57%
|
38%
|
5%
|
100%
|
|
Unit-linked and variable annuity separate account
|
|
|
|
|
|
Equity securities and holdings in collective investment
schemes
|
194,845
|
643
|
11
|
195,499
|
|
Debt securities
|
6,070
|
12,388
|
-
|
18,458
|
|
Other investments (including derivative assets)
|
8
|
4
|
8
|
20
|
|
Derivative liabilities
|
(3)
|
(4)
|
-
|
(7)
|
|
Total financial investments, net of derivative
liabilities
|
200,920
|
13,031
|
19
|
213,970
|
|
Percentage of total (%)
|
94%
|
6%
|
0%
|
100%
|
|
Non-linked shareholder-backed
|
|
|
|
|
|
Loans
|
-
|
-
|
3,886
|
3,886
|
|
Equity securities and holdings in collective investment
schemes
|
3,764
|
3
|
24
|
3,791
|
|
Debt securities
|
22,525
|
78,713
|
472
|
101,710
|
|
Other investments (including derivative assets)
|
77
|
1,602
|
1,198
|
2,877
|
|
Derivative liabilities
|
(2)
|
(2,241)
|
(539)
|
(2,782)
|
|
Total financial investments, net of derivative
liabilities
|
26,364
|
78,077
|
5,041
|
109,482
|
|
Percentage of total (%)
|
24%
|
71%
|
5%
|
100%
|
|
|
|
|
|
|
|
Group total analysis, including other financial liabilities held at
fair value
|
|
|
|
|
|
Loans
|
-
|
-
|
6,054
|
6,054
|
|
Equity securities and holdings in collective investment
schemes
|
265,245
|
7,583
|
656
|
273,484
|
|
Debt securities
|
68,345
|
153,483
|
1,505
|
223,333
|
|
Other investments (including derivative assets)
|
268
|
5,762
|
6,714
|
12,744
|
|
Derivative liabilities
|
(113)
|
(3,813)
|
(539)
|
(4,465)
|
|
Total financial investments, net of derivative
liabilities
|
333,745
|
163,015
|
14,390
|
511,150
|
|
Investment contract liabilities without discretionary participation
features held at fair value
|
-
|
(20,446)
|
-
|
(20,446)
|
|
Borrowings attributable to with-profits businesses
|
-
|
-
|
(2,045)
|
(2,045)
|
|
Net asset value attributable to unit holders of consolidated
investment funds
|
(8,727)
|
(4,854)
|
(1,258)
|
(14,839)
|
|
Other financial liabilities held at fair value
|
-
|
(3)
|
(4,335)
|
(4,338)
|
|
Total financial instruments at fair value
|
325,018
|
137,712
|
6,752
|
469,482
|
|
Percentage of total (%)
|
70%
|
29%
|
1%
|
100%
|
|
|
|
|
|
|
|
Analysed as:
|
|
|
|
|
|
Total from continuing operations
|
|
|
|
|
|
|
With-profits
|
49,914
|
5,003
|
203
|
55,120
|
|
Unit-linked and variable annuity separate account
|
182,833
|
(82)
|
-
|
182,751
|
|
Non-linked shareholder-backed
|
21,077
|
55,972
|
339
|
77,388
|
|
253,824
|
60,893
|
542
|
315,259
|
|
Percentage of total continuing operations (%)
|
81%
|
19%
|
0%
|
100%
|
|
|
|
|
|
|
|
Total from discontinued UK and Europe operations
|
71,194
|
76,819
|
6,210
|
154,223
|
|
Percentage of total discontinued operations (%)
|
46%
|
50%
|
4%
|
100%
|
|
|
31 Dec 2019 $m
|
||||||
|
|
|
|
|
|
|
Other
|
|
|
|
AAA
|
AA+ to AA-
|
A+ to A-
|
BBB+
to BBB-
|
Below BBB-
|
(including
NAIC rated)
|
Total
|
Asia:
|
|
|
|
|
|
|
|
|
|
With-profits
|
5,205
|
21,911
|
5,863
|
5,874
|
2,382
|
3,547
|
44,782
|
|
Unit-linked
|
770
|
135
|
674
|
2,074
|
522
|
978
|
5,153
|
|
Non-linked shareholder-backed
|
1,611
|
6,050
|
6,293
|
4,639
|
3,749
|
2,304
|
24,646
|
|
Asset management
|
14
|
-
|
112
|
-
|
-
|
3
|
129
|
US:
|
|
|
|
|
|
|
|
|
|
Non-linked shareholder-backed
|
1,154
|
10,300
|
15,229
|
18,489
|
1,995
|
11,361
|
58,528
|
Other operations
|
-
|
1,211
|
-
|
-
|
55
|
66
|
1,332
|
|
Total debt securities
|
8,754
|
39,607
|
28,171
|
31,076
|
8,703
|
18,259
|
134,570
|
|
|
31 Dec 2018 $m
|
||||||
|
|
|
|
|
|
|
Other
|
|
|
|
AAA
|
AA+ to AA-
|
A+ to A-
|
BBB+
to BBB-
|
Below BBB-
|
(including
NAIC rated)
|
Total
|
Asia:
|
|
|
|
|
|
|
|
|
|
With-profits
|
3,659
|
15,766
|
5,275
|
4,788
|
2,225
|
2,934
|
34,647
|
|
Unit-linked
|
1,040
|
127
|
627
|
1,822
|
542
|
912
|
5,070
|
|
Non-linked shareholder-backed
|
1,317
|
4,524
|
4,734
|
3,738
|
2,805
|
1,455
|
18,573
|
|
Asset management
|
14
|
-
|
76
|
-
|
-
|
-
|
90
|
US:
|
|
|
|
|
|
|
|
|
|
Non-linked shareholder-backed
|
864
|
9,403
|
13,100
|
18,667
|
1,820
|
9,120
|
52,974
|
Other operations
|
788
|
1,387
|
193
|
52
|
62
|
24
|
2,506
|
|
Total continuing operations
|
7,682
|
31,207
|
24,005
|
29,067
|
7,454
|
14,445
|
113,860
|
|
Total discontinued UK and Europe operations
|
13,931
|
23,185
|
23,746
|
25,126
|
4,387
|
19,098
|
109,473
|
|
Total debt securities
|
21,613
|
54,392
|
47,751
|
54,193
|
11,841
|
33,543
|
223,333
|
Asia
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
|
Government bonds*
|
|
|
323
|
|
46
|
|
Corporate bonds rated by local external rating
agencies
|
|
|
|
|
||
|
AAA
|
|
|
184
|
|
239
|
|
AA+ to AA-
|
|
|
958
|
|
702
|
|
A+ to A-
|
|
|
345
|
|
241
|
|
BBB+ to BBB-
|
|
|
91
|
|
39
|
|
Below BBB- and unrated
|
|
|
32
|
|
25
|
|
|
|
|
1,610
|
|
1,246
|
Other (asset-backed securities)†
|
|
|
371
|
|
163
|
|
Total Asia
|
|
|
2,304
|
|
1,455
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||
US
|
Mortgage
-backed
securities
|
Other
securities
|
Total
|
|
Total
|
|
Implicit ratings based on NAIC valuations*
|
|
|
|
|
|
|
|
NAIC 1
|
3,367
|
4,430
|
7,797
|
|
6,376
|
|
NAIC 2
|
1
|
3,470
|
3,471
|
|
2,697
|
|
NAIC 3-6
|
2
|
91
|
93
|
|
47
|
Total US†
|
3,370
|
7,991
|
11,361
|
|
9,120
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Corporate and government security and commercial
loans:
|
|
|
|
|
Government
|
7,890
|
6,960
|
|
Publicly traded and SEC Rule 144A securities*
|
34,781
|
33,363
|
|
Non-SEC Rule 144A securities
|
9,842
|
8,061
|
Asset-backed securities (see note (c))
|
6,015
|
4,590
|
|
Total US debt securities†
|
58,528
|
52,974
|
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
|
Available-for-sale
|
57,091
|
52,025
|
|
|
Fair value through profit and loss
|
1,437
|
949
|
|
|
|
58,528
|
52,974
|
|
|
31 Dec 2019
|
|
31 Dec 2018
|
|
|
|
Changes in unrealised appreciation reflected in other comprehensive
income
|
|
|
|
$m
|
$m
|
$m
|
Assets fair valued at below book value
|
|
|
|
|
|
Book value*
|
3,121
|
|
32,260
|
|
Unrealised gain (loss)
|
(27)
|
1,151
|
(1,178)
|
|
Fair value (as included in statement of financial
position)
|
3,094
|
|
31,082
|
Assets fair valued at or above book value
|
|
|
|
|
|
Book value*
|
50,474
|
|
20,292
|
|
Unrealised gain (loss)
|
3,523
|
2,872
|
651
|
|
Fair value (as included in statement of financial
position)
|
53,997
|
|
20,943
|
Total
|
|
|
|
|
|
Book value*
|
53,595
|
|
52,552
|
|
Net unrealised gain (loss)
|
3,496
|
4,023
|
(527)
|
|
Fair value (as included in the footnote above in the overview table
and the statement of financial position)
|
57,091
|
|
52,025
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||
|
|
Fair
value
|
Unrealised
loss
|
|
Fair
value
|
Unrealised
loss
|
Between 90% and 100%
|
3,083
|
(25)
|
|
30,136
|
(1,030)
|
|
Between 80% and 90%
|
11
|
(2)
|
|
900
|
(132)
|
|
Below 80%
|
-
|
-
|
|
46
|
(16)
|
|
Total
|
3,094
|
(27)
|
|
31,082
|
(1,178)
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
1 year to 5 years
|
(1)
|
|
(92)
|
5 years to 10 years
|
(12)
|
|
(555)
|
More than 10 years
|
(7)
|
|
(474)
|
Mortgage-backed and other debt securities
|
(7)
|
|
(57)
|
Total
|
(27)
|
|
(1,178)
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||||
Age analysis
|
Non-
investment
grade
|
Investment
grade*
|
Total
|
|
Non-
investment
grade
|
Investment
grade*
|
Total
|
Less than 6 months
|
(1)
|
(20)
|
(21)
|
|
(26)
|
(179)
|
(205)
|
6 months to 1 year
|
(1)
|
(1)
|
(2)
|
|
(28)
|
(560)
|
(588)
|
1 year to 2 years
|
-
|
(1)
|
(1)
|
|
(13)
|
(181)
|
(194)
|
2 years to 3 years
|
-
|
(1)
|
(1)
|
|
-
|
(157)
|
(157)
|
More than 3 years
|
-
|
(2)
|
(2)
|
|
(2)
|
(32)
|
(34)
|
Total
|
(2)
|
(25)
|
(27)
|
|
(69)
|
(1,109)
|
(1,178)
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||
Age analysis
|
Fair
value
|
Unrealised
loss
|
|
Fair
value
|
Unrealised
loss
|
Less than 3 months
|
-
|
-
|
|
41
|
(13)
|
3 months to 6 months
|
-
|
-
|
|
2
|
(1)
|
More than 6 months
|
-
|
-
|
|
3
|
(2)
|
Total below 80%
|
-
|
-
|
|
46
|
(16)
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Asia operations:note
(i)
|
|
|
|
|
Shareholder-backed business
|
189
|
154
|
|
With-profits business
|
369
|
299
|
US operationsnote
(ii)
|
6,015
|
4,590
|
|
Other operations
|
-
|
566
|
|
Total for continuing operations
|
6,573
|
5,609
|
|
Total for discontinued UK and Europe operations
|
-
|
8,503
|
|
Group total
|
6,573
|
14,112
|
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
|
RMBS
|
|
|
|
|
|
Sub-prime (31 Dec 2019: 2% AAA, 3% AA, 3% A)
|
93
|
122
|
|
|
Alt-A (31 Dec 2019: 51% A)
|
116
|
134
|
|
|
Prime including agency (2019: 23% AAA, 61% AA, 10% A)
|
862
|
562
|
|
CMBS (31 Dec 2019: 76% AAA, 16% AA, 4% A)
|
3,080
|
2,477
|
|
|
CDO funds (31 Dec 2019: 46% AAA, 38% AA, 16% A), including $nil
exposure to sub-prime
|
696
|
17
|
|
|
Other ABS (31 Dec 2019: 16% AAA, 11% AA, 54% A), including $84
million exposure to sub-prime
|
1,168
|
1,278
|
|
|
Total (31 Dec 2019: 50% AAA, 24% AA, 17% A)
|
6,015
|
4,590
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||
|
Shareholder-backed
business*
|
With-profits
funds
|
|
Shareholder-backed
business
|
With-profits
funds
|
Eurozone
|
-
|
-
|
|
481
|
560
|
United Kingdom
|
615
|
-
|
|
4,109
|
3,837
|
United States
|
9,526
|
20,338
|
|
7,192
|
15,102
|
Indonesia
|
420
|
-
|
|
359
|
-
|
Singapore
|
230
|
3,514
|
|
209
|
2,112
|
Thailand
|
1,416
|
-
|
|
1,173
|
-
|
Vietnam
|
2,900
|
-
|
|
2,383
|
-
|
Other Asia
|
2,722
|
562
|
|
2,266
|
1,103
|
Other
|
143
|
32
|
|
159
|
282
|
Total
|
17,972
|
24,446
|
|
18,331
|
22,996
|
Analysed as:
|
|
|
|
|
|
Total from continuing operations
|
|
|
|
14,848
|
16,740
|
Total from discontinued UK and Europe operations
|
|
|
|
3,483
|
6,256
|
|
|
|
|
18,331
|
22,996
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||||||
|
Senior debt
|
|
Subordinated debt
|
|
|
|
|
||
Shareholder-backed business
|
Total
|
|
Tier 1
|
Tier 2
|
Total
|
|
Total
|
|
Total
|
Eurozone
|
310
|
|
-
|
27
|
27
|
|
337
|
|
608
|
United Kingdom
|
568
|
|
17
|
138
|
155
|
|
723
|
|
1,714
|
United States
|
3,084
|
|
7
|
43
|
50
|
|
3,134
|
|
3,397
|
Asia
|
439
|
|
165
|
389
|
554
|
|
993
|
|
754
|
Other
|
516
|
|
-
|
131
|
131
|
|
647
|
|
821
|
Total
|
4,917
|
|
189
|
728
|
917
|
|
5,834
|
|
7,294
|
Analysed as:
|
|
|
|
|
|
|
|
|
|
Total from continuing operations
|
|
|
|
|
|
|
|
|
5,910
|
Total from discontinued UK and Europe operations
|
|
|
|
|
|
|
|
|
1,384
|
|
|
|
|
|
|
|
|
|
7,294
|
|
|
|
|
|
|
|
|
|
|
With-profits funds
|
|
|
|
|
|
|
|
|
|
Eurozone
|
29
|
|
-
|
102
|
102
|
|
131
|
|
1,243
|
United Kingdom
|
41
|
|
3
|
111
|
114
|
|
155
|
|
2,794
|
United States
|
30
|
|
1
|
3
|
4
|
|
34
|
|
3,477
|
Asia
|
307
|
|
479
|
344
|
823
|
|
1,130
|
|
1,293
|
Other
|
73
|
|
-
|
211
|
211
|
|
284
|
|
2,305
|
Total
|
480
|
|
483
|
771
|
1,254
|
|
1,734
|
|
11,112
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
|
|
Total from continuing operations
|
|
|
|
|
|
|
|
|
1,639
|
Total from discontinued UK and Europe operations
|
|
|
|
|
|
|
|
|
9,473
|
|
|
|
|
|
|
|
|
|
11,112
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||||||
|
|
Mortgage loans
|
Policy loans
|
Other loans
|
Total
|
|
Mortgage loans
|
Policy loans
|
Other loans
|
Total
|
|
|
note (i)
|
note (ii)
|
|
|
|
note (i)
|
note (ii)
|
|
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
With-profits
|
-
|
1,089
|
374
|
1,463
|
|
-
|
926
|
83
|
1,009
|
|
Non-linked shareholder-backed
|
165
|
316
|
19
|
500
|
|
199
|
288
|
259
|
746
|
US
|
|
|
|
|
|
|
|
|
|
|
|
Non-linked shareholder-backed
|
9,904
|
4,707
|
-
|
14,611
|
|
9,406
|
4,688
|
-
|
14,094
|
Other operations
|
-
|
9
|
-
|
9
|
|
-
|
-
|
-
|
-
|
|
Total continuing operations
|
10,069
|
6,121
|
393
|
16,583
|
|
9,605
|
5,902
|
342
|
15,849
|
|
Total discontinued UK and Europe operations
|
|
|
|
|
|
5,241
|
4
|
1,844
|
7,089
|
|
Total Group
|
|
|
|
|
|
14,846
|
5,906
|
2,186
|
22,938
|
|
|
Asia
|
US
|
Discontinued
UK and
Europe
operations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
|
note C4.2
|
note C4.3
|
|
|
Balance at 1 January 2018
|
99,890
|
244,483
|
244,946
|
589,319
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial positionnote
(c)
|
|
|
|
|
|
(excludes $43 million classified as unallocated to a
segment)
|
85,089
|
244,483
|
226,715
|
556,287
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
4,700
|
-
|
18,231
|
22,931
|
|
- Group's share of policyholder liabilities of joint ventures and
associatenote
(d)
|
10,101
|
-
|
-
|
10,101
|
Reclassification of reinsured UK annuity contracts as held for
sale
|
-
|
-
|
(14,689)
|
(14,689)
|
|
Net flows:
|
|
|
|
|
|
|
Premiums
|
17,607
|
18,613
|
18,707
|
54,927
|
|
Surrenders
|
(3,729)
|
(16,211)
|
(9,053)
|
(28,993)
|
|
Maturities/deaths
|
(2,641)
|
(2,687)
|
(9,074)
|
(14,402)
|
Net flows
|
11,237
|
(285)
|
580
|
11,532
|
|
Addition for closed block of group payout annuities in the
US
|
-
|
5,532
|
-
|
5,532
|
|
Shareholders' transfers post-tax
|
(87)
|
-
|
(346)
|
(433)
|
|
Investment-related items and other movements
|
(3,718)
|
(13,350)
|
(7,318)
|
(24,386)
|
|
Foreign exchange translation differences
|
(1,914)
|
-
|
(13,171)
|
(15,085)
|
|
Balance at 31 December 2018/1 January 2019
|
105,408
|
236,380
|
210,002
|
551,790
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial positionnote
(c)
|
|
|
|
|
|
(excludes $50 million classified as unallocated to a
segment)
|
91,836
|
236,380
|
193,020
|
521,236
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
3,198
|
-
|
16,982
|
20,180
|
|
- Group's share of policyholder liabilities of joint ventures and
associatenote
(d)
|
10,374
|
-
|
-
|
10,374
|
Demerger of UK and Europe operations
|
-
|
-
|
(210,002)
|
(210,002)
|
|
Net flows:
|
|
|
|
|
|
|
Premiums
|
20,094
|
20,976
|
-
|
41,070
|
|
Surrenders
|
(4,156)
|
(17,342)
|
-
|
(21,498)
|
|
Maturities/deaths
|
(2,800)
|
(3,387)
|
-
|
(6,187)
|
Net flows
|
13,138
|
247
|
-
|
13,385
|
|
Shareholders' transfers post-tax
|
(99)
|
-
|
-
|
(99)
|
|
Investment-related items and other movements
|
12,824
|
32,922
|
-
|
45,746
|
|
Foreign exchange translation differences
|
1,299
|
-
|
-
|
1,299
|
|
Balance at 31 December 2019
|
132,570
|
269,549
|
-
|
402,119
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
|
|
|
|
|
(excludes $186 million classified as unallocated to a
segment)
|
115,943
|
269,549
|
-
|
385,492
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
4,750
|
-
|
-
|
4,750
|
|
- Group's share of policyholder liabilities of joint ventures and
associatenote
(d)
|
11,877
|
-
|
-
|
11,877
|
Average policyholder liability balancesnote
(e)
|
|
|
|
|
|
|
2019
|
115,015
|
252,965
|
n/a
|
367,980
|
|
2018
|
98,698
|
239,049
|
213,492
|
551,239
|
|
|
Asia
|
US
|
Discontinued
UK and
Europe
operations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
Balance at 1 January 2018
|
50,598
|
244,483
|
76,254
|
371,335
|
|
Reclassification of reinsured UK annuity contracts as held for
sale
|
-
|
-
|
(14,689)
|
(14,689)
|
|
Net flows:
|
|
|
|
|
|
|
Premiums
|
9,015
|
18,613
|
1,984
|
29,612
|
|
Surrenders
|
(3,278)
|
(16,211)
|
(2,692)
|
(22,181)
|
|
Maturities/deaths
|
(1,396)
|
(2,687)
|
(2,996)
|
(7,079)
|
Net flowsnote
|
4,341
|
(285)
|
(3,704)
|
352
|
|
Addition for closed block of group payout annuities in the
US
|
-
|
5,532
|
-
|
5,532
|
|
Investment-related items and other movements
|
(1,608)
|
(13,350)
|
(2,637)
|
(17,595)
|
|
Foreign exchange translation differences
|
(1,626)
|
-
|
(3,313)
|
(4,939)
|
|
Balance at 31 December 2018/1 January 2019
|
51,705
|
236,380
|
51,911
|
339,996
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
|
|
|
|
|
(excludes $50 million classified as unallocated to a
segment)
|
41,331
|
236,380
|
51,911
|
329,622
|
|
- Group's share of policyholder liabilities relating to joint
ventures and associate
|
10,374
|
-
|
-
|
10,374
|
Demerger of UK and Europe operations
|
-
|
-
|
(51,911)
|
(51,911)
|
|
Net flows:
|
|
|
|
|
|
|
Premiums
|
10,372
|
20,976
|
-
|
31,348
|
|
Surrenders
|
(3,610)
|
(17,342)
|
-
|
(20,952)
|
|
Maturities/deaths
|
(1,168)
|
(3,387)
|
-
|
(4,555)
|
Net flowsnote
|
5,594
|
247
|
-
|
5,841
|
|
Investment-related items and other movements
|
4,186
|
32,922
|
-
|
37,108
|
|
Foreign exchange translation differences
|
777
|
-
|
-
|
777
|
|
Balance at 31 December 2019
|
62,262
|
269,549
|
-
|
331,811
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
|
|
|
|
|
(excludes $186 million classified as unallocated to a
segment)
|
50,385
|
269,549
|
-
|
319,934
|
|
- Group's share of policyholder liabilities relating to joint
ventures and associate
|
11,877
|
-
|
-
|
11,877
|
|
|
|
Shareholder-backed business
|
|
|
|
|
With-profits
business
|
Unit-linked
liabilities
|
Other
business
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
Balance at 1 January 2018
|
49,292
|
27,093
|
23,505
|
99,890
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
44,592
|
22,001
|
18,496
|
85,089
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
4,700
|
-
|
-
|
4,700
|
|
- Group's share of policyholder liabilities relating to joint
ventures and associatenote
(a)
|
-
|
5,092
|
5,009
|
10,101
|
Premiums
|
|
|
|
|
|
|
New business
|
1,542
|
1,904
|
1,449
|
4,895
|
|
In-force
|
7,050
|
2,359
|
3,303
|
12,712
|
|
|
8,592
|
4,263
|
4,752
|
17,607
|
Surrendersnote
(b)
|
(451)
|
(2,542)
|
(736)
|
(3,729)
|
|
Maturities/deaths
|
(1,245)
|
(187)
|
(1,209)
|
(2,641)
|
|
Net flows
|
6,896
|
1,534
|
2,807
|
11,237
|
|
Shareholders' transfers post-tax
|
(87)
|
-
|
-
|
(87)
|
|
Investment-related items and other movementsnote
(c)
|
(2,110)
|
(1,903)
|
295
|
(3,718)
|
|
Foreign exchange translation differencesnote
(d)
|
(288)
|
(1,020)
|
(606)
|
(1,914)
|
|
Balance at 31 December 2018/1 January 2019
|
53,703
|
25,704
|
26,001
|
105,408
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
50,505
|
20,846
|
20,485
|
91,836
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
3,198
|
-
|
-
|
3,198
|
|
- Group's share of policyholder liabilities relating to joint
ventures and associatenote
(a)
|
-
|
4,858
|
5,516
|
10,374
|
Premiums
|
|
|
|
|
|
|
New business
|
1,611
|
1,837
|
2,419
|
5,867
|
|
In-force
|
8,111
|
2,361
|
3,755
|
14,227
|
|
|
9,722
|
4,198
|
6,174
|
20,094
|
Surrendersnote
(b)
|
(546)
|
(2,929)
|
(681)
|
(4,156)
|
|
Maturities/deaths
|
(1,632)
|
(149)
|
(1,019)
|
(2,800)
|
|
Net flows
|
7,544
|
1,120
|
4,474
|
13,138
|
|
Shareholders' transfers post-tax
|
(99)
|
-
|
-
|
(99)
|
|
Investment-related items and other movementsnote
(c)
|
8,638
|
1,663
|
2,523
|
12,824
|
|
Foreign exchange translation differencesnote
(d)
|
522
|
363
|
414
|
1,299
|
|
Balance at 31 December 2019
|
70,308
|
28,850
|
33,412
|
132,570
|
|
Comprising:
|
|
|
|
|
|
|
- Policyholder liabilities on the consolidated statement of
financial position
|
65,558
|
23,571
|
26,814
|
115,943
|
|
- Unallocated surplus of with-profits funds on the consolidated
statement of financial position
|
4,750
|
-
|
-
|
4,750
|
|
- Group's share of policyholder liabilities relating to joint
ventures and associatenote
(a)
|
-
|
5,279
|
6,598
|
11,877
|
Average policyholder liability balancesnote
(e)
|
|
|
|
|
|
|
2019
|
58,032
|
27,277
|
29,706
|
115,015
|
|
2018
|
47,548
|
26,398
|
24,752
|
98,698
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Policyholder liabilities
|
115,943
|
91,836
|
|
|
|
|
|
Expected maturity:
|
31 Dec 2019 %
|
31 Dec 2018 %
|
|
|
0 to 5 years
|
18
|
20
|
|
5 to 10 years
|
18
|
19
|
|
10 to 15 years
|
15
|
15
|
|
15 to 20 years
|
13
|
12
|
|
20 to 25 years
|
11
|
10
|
|
Over 25 years
|
25
|
24
|
|
|
Variable
annuity
separate
account
liabilities
|
Fixed annuity,
GICs and other
business
|
Total
|
|
|
$m
|
$m
|
$m
|
Balance at 1 January 2018
|
176,578
|
67,905
|
244,483
|
|
Premiums
|
14,646
|
3,967
|
18,613
|
|
Surrenders
|
(11,746)
|
(4,465)
|
(16,211)
|
|
Maturities/deaths
|
(1,449)
|
(1,238)
|
(2,687)
|
|
Net flows
|
1,451
|
(1,736)
|
(285)
|
|
Addition for closed block of group payout annuities in the
US
|
-
|
5,532
|
5,532
|
|
Transfers from general to separate account
|
708
|
(708)
|
-
|
|
Investment-related items and other movements
|
(15,436)
|
2,086
|
(13,350)
|
|
Balance at 31 December 2018/1 January 2019
|
163,301
|
73,079
|
236,380
|
|
Premiums
|
12,776
|
8,200
|
20,976
|
|
Surrenders
|
(12,767)
|
(4,575)
|
(17,342)
|
|
Maturities/deaths
|
(1,564)
|
(1,823)
|
(3,387)
|
|
Net flowsnote
(a)
|
(1,555)
|
1,802
|
247
|
|
Transfers from general to separate account
|
951
|
(951)
|
-
|
|
Investment-related items and other movementsnote
(b)
|
32,373
|
549
|
32,922
|
|
Balance at 31 December 2019
|
195,070
|
74,479
|
269,549
|
|
Average policyholder liability balancesnote
(c)
|
|
|
|
|
|
2019
|
179,186
|
73,779
|
252,965
|
|
2018
|
169,940
|
69,109
|
239,049
|
|
|
31 Dec 2019
|
|
31 Dec 2018
|
||||
|
|
Variable
annuity separate
account liabilities
|
Fixed annuity, GICs and
other business
|
Total
|
|
Variable
annuity separate
account liabilities
|
Fixed annuity, GICs and
other business
|
Total
|
|
|
$m
|
$m
|
$m
|
|
$m
|
$m
|
$m
|
Policyholder liabilities
|
195,070
|
74,479
|
269,549
|
|
163,301
|
73,079
|
236,380
|
|
|
|
|
|
|
|
|
|
|
Expected maturity:
|
%
|
%
|
%
|
|
%
|
%
|
%
|
|
|
0 to 5 years
|
41
|
45
|
42
|
|
40
|
51
|
43
|
|
5 to 10 years
|
27
|
27
|
27
|
|
28
|
24
|
27
|
|
10 to 15 years
|
16
|
13
|
15
|
|
16
|
12
|
15
|
|
15 to 20 years
|
9
|
8
|
9
|
|
9
|
7
|
8
|
|
20 to 25 years
|
4
|
4
|
4
|
|
4
|
3
|
4
|
|
Over 25 years
|
3
|
3
|
3
|
|
3
|
3
|
3
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Carrying value at beginning of year
|
2,365
|
2,005
|
Demerger of UK and Europe operations
|
(1,731)
|
-
|
Additions in the year
|
299
|
503
|
Disposals/reclassifications to held for sale
|
-
|
(13)
|
Exchange differences
|
36
|
(130)
|
Carrying value at end of year
|
969
|
2,365
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
|
Deferred acquisition costs and other intangible assets attributable
to shareholders
|
|
|
|
|
From continuing operations
|
17,409
|
14,865
|
|
From discontinued operations
|
-
|
143
|
|
Total
|
17,409
|
15,008
|
Other intangible assets, including computer software, attributable
to with-profits funds
|
|
|
|
|
From continuing operations
|
67
|
71
|
|
From discontinued operations
|
-
|
106
|
|
Total
|
67
|
177
|
Total of deferred acquisition costs and other intangible
assets
|
17,476
|
15,185
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Deferred acquisition costs related to insurance contracts as
classified under IFRS 4
|
14,206
|
12,758
|
Deferred acquisition costs related to investment management
contracts, including life assurance contracts classified as
financial instruments and investment management contracts under
IFRS 4
|
33
|
99
|
Deferred acquisition costs related to insurance and investment
contracts
|
14,239
|
12,857
|
Present value of acquired in-force policies for insurance contracts
as classified under IFRS 4 (PVIF)
|
38
|
43
|
Distribution rights and other intangibles
|
3,132
|
2,108
|
Present value of acquired in-force (PVIF) and other intangibles
attributable to shareholders
|
3,170
|
2,151
|
Total of deferred acquisition costs and other intangible
assetsnote
(a)
|
17,409
|
15,008
|
|
|
31 Dec 2019 $m
|
|
31 Dec 2018 $m
|
||||||
|
|
Deferred acquisition costs
|
|
|
|
|
|
|
||
|
|
Asia
insurance
|
US
insurance*
|
Discontinued
UK and
Europe
operations
|
|
PVIF and
other
intangibles†
|
|
Total
|
|
Total
|
|
|
|
note (b)
|
|
|
|
|
|
|
|
Balance at 1 January
|
1,610
|
11,113
|
134
|
|
2,151
|
|
15,008
|
|
14,700
|
|
Demerger of UK and Europe operations
|
-
|
-
|
(134)
|
|
(9)
|
|
(143)
|
|
-
|
|
Additions‡
|
615
|
807
|
-
|
|
1,179
|
|
2,601
|
|
1,666
|
|
Amortisation to the income statement:
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns
|
(257)
|
(297)
|
-
|
|
(238)
|
|
(792)
|
|
(1,370)
|
|
Non-operating profit (loss)
|
-
|
1,248
|
-
|
|
(5)
|
|
1,243
|
|
(156)
|
|
(257)
|
951
|
-
|
|
(243)
|
|
451
|
|
(1,526)
|
|
Disposals and transfers
|
-
|
-
|
-
|
|
(11)
|
|
(11)
|
|
(19)
|
|
Exchange differences and other movements
|
31
|
-
|
-
|
|
103
|
|
134
|
|
(141)
|
|
Amortisation of DAC related to net unrealised valuation movements
on the US insurance operation's available-for-sale securities
recognised within other comprehensive income
|
-
|
(631)
|
-
|
|
-
|
|
(631)
|
|
328
|
|
Balance at 31 December
|
1,999
|
12,240
|
-
|
|
3,170
|
|
17,409
|
|
15,008
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Variable annuity business
|
12,406
|
10,796
|
Other business
|
529
|
381
|
Cumulative shadow DAC (for unrealised gains/losses booked in other
comprehensive income)*
|
(695)
|
(64)
|
Total DAC for US operations
|
12,240
|
11,113
|
|
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Central operations:
|
|
|
|
||
Subordinated debt substituted to M&G plc in 2019:
|
|
|
|
||
|
£600m 5.56% (30 Jun and 31 Dec 2018: 5.0%) Notes
2055note
(i)
|
|
-
|
753
|
|
|
£700m 6.34% (30 Jun and 31 Dec 2018: 5.7%) Notes
2063note
(i)
|
|
-
|
886
|
|
|
£750m 5.625% Notes 2051
|
|
-
|
947
|
|
|
£500m 6.25% Notes 2068
|
|
-
|
634
|
|
|
US$500m 6.5% Notes 2048
|
|
-
|
498
|
|
Total subordinated debt substituted to M&G plc in
2019note
(ii)
|
|
-
|
3,718
|
||
Subordinated and other debt not substituted to M&G
plc:
|
|
|
|
||
|
US$250m 6.75% Notesnote
(iii)
|
|
250
|
250
|
|
|
US$300m 6.5% Notesnote
(iii)
|
|
300
|
299
|
|
|
Perpetual Subordinated Capital Securities
|
|
550
|
549
|
|
|
US$700m 5.25% Notes
|
|
700
|
700
|
|
|
US$1,000m 5.25% Notes
|
|
996
|
993
|
|
|
US$725m 4.375% Notes
|
|
721
|
720
|
|
|
US$750m 4.875% Notes
|
|
744
|
743
|
|
|
Perpetual Subordinated Capital Securities
|
|
3,161
|
3,156
|
|
|
€20m Medium Term Notes 2023
|
|
22
|
23
|
|
|
£435m 6.125% Notes 2031
|
|
571
|
549
|
|
|
£400m 11.375% Notes 2039note
(iv)
|
|
-
|
508
|
|
|
Subordinated notes
|
|
593
|
1,080
|
|
|
Subordinated debt total
|
|
4,304
|
4,785
|
|
|
Senior debt:note
(v)
|
|
|
|
|
|
|
£300m 6.875% Bonds 2023
|
|
392
|
375
|
|
|
£250m 5.875% Bonds 2029
|
|
298
|
283
|
|
Bank loansnote
(vi)
|
|
|
|
|
|
|
$350m Loan 2024
|
|
350
|
-
|
|
|
£275m Loan 2022
|
|
-
|
350
|
Total debt not substituted to M&G plc in 2019
|
|
5,344
|
5,793
|
||
Total central operations
|
|
5,344
|
9,511
|
||
Jackson US$250m 8.15% Surplus Notes 2027note
(vii)
|
|
250
|
250
|
||
Total core structural borrowings of shareholder-financed
businessesnote
(viii)
|
|
5,594
|
9,761
|
|
|
Cash movements $m
|
|
Non-cash movements $m
|
||||||
|
|
Balance at
beginning
of year
|
Issue
of debt
|
Redemption
of debt
|
Payment
for change to
terms of debt
|
|
Foreign
exchange
movement
|
Demerger of
UK and Europe
operations
|
Other
movements
|
Balance
at end
of year
|
|
2019
|
9,761
|
367
|
(504)
|
(182)
|
|
298
|
(4,161)
|
15
|
5,594
|
|
2018
|
8,496
|
2,079
|
(553)
|
(44)
|
|
(232)
|
-
|
15
|
9,761
|
|
|
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
|
Borrowings in respect of short-term fixed income securities
programmes - commercial paper
|
520
|
601
|
|
Lease liabilities under IFRS 16note
(a)
|
371
|
-
|
|
Non-recourse borrowings of consolidated investment
fundsnote
(b)
|
1,045
|
448
|
|
Other borrowingsnote
(c)
|
406
|
222
|
|
Operational borrowings attributable to shareholder-financed
businesses
|
2,342
|
1,271
|
|
|
|
|
|
Non-recourse borrowings of consolidated investment
fundsnote
(b)
|
-
|
2,153
|
|
Lease liabilities under IFRS 16note
(a)
|
259
|
-
|
|
Other borrowings
|
44
|
2,865
|
|
Operational borrowings attributable to with-profits
businessesnote
(d)
|
303
|
5,018
|
|
|
|
|
|
Total operational borrowings
|
2,645
|
6,289
|
|
Analysed as:
|
|
|
|
Total from continuing operations
|
|
1,160
|
|
Total from discontinued UK and Europe operations
|
|
5,129
|
|
|
|
6,289
|
|
|
|
|
|
|
|
|
|
|
|||||
Type of business
|
|
Market and credit risk
|
|
Insurance and lapse risk
|
|||||
|
Investments/derivatives
|
Liabilities/unallocated surplus
|
|
Other exposure
|
|
||||
Asia insurance operations (see also section
C7.2)
|
|
|
|
|
|||||
All business
|
|
|
|
|
|
Mortality and morbidity
risk
Persistency
risk
|
|||
With-profits
business
|
|
Net neutral direct exposure
(indirect exposure only)
|
|
Investment performance subject to
smoothing through declared bonuses
|
|
|
|||
Unit-linked
business
|
|
Net neutral direct exposure
(indirect exposure only)
|
|
Investment performance through
asset management fees
|
|
|
|||
Non-participating
business
|
|
Asset/liability mismatch
risk
|
|
|
|
|
|||
|
Credit risk
|
Interest rates for
those
operations where the basis of
insurance liabilities is sensitive to current market
movements
|
|
|
|
|
|||
|
|
Interest rate and price
risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US insurance operations (see also section C7.3)
|
|
|
|
|
|||||
All business
|
|
Currency risk
|
|
|
|
Persistency
risk
|
|||
Variable annuity
business
|
|
Net effect of market risk arising
from incidence of guarantee features and variability of asset
management fees offset by derivative hedging
programme
|
|
|
|
Risk that utilisation of withdrawal
benefits or lapse levels differ from those assumed in
pricing
|
|||
Fixed index annuity
business
|
|
Derivative
hedge
programme to the
extent
not fully hedged
against
liability
|
Incidence of
equity
participation features and meeting
contractual accumulation requirements
|
|
|
|
Minimal lapse
risk
|
||
Fixed index annuities, Fixed
annuities and GIC business
|
|
Credit risk and interest rate risk
on investments
Profit and loss
and
shareholders' equity
are
volatile for the incidence
of
these risks on
unrealised
appreciation of
fixed
income securities
classified
as
available-for-sale
under IAS 39
|
Interest rate risk on liabilities
(meeting guaranteed rates of accumulation on fixed annuity
products)
|
|
Spread
difference
between earned
rate and rate
credited
to
policyholders
|
|
Lapse risk, but
the
effects of
extreme
events may be
mitigated
by the application
of
market value
adjustments
|
|
|
2019 $m
|
|
2018 $m
|
||
|
|
Decrease
of 1%
|
Increase
of 1%
|
|
Decrease
of 1%
|
Increase
of 1%
|
Profit before tax attributable to shareholders
|
|
(705)
|
(744)
|
|
397
|
(430)
|
Related deferred tax (where applicable)
|
|
3
|
26
|
|
(19)
|
33
|
Net effect on profit after tax and shareholders'
equity
|
|
(702)
|
(718)
|
|
378
|
(397)
|
|
2019 $m
|
|
2018 $m
|
||
|
Decrease of 20%
|
Decrease of 10%
|
|
Decrease of 20%
|
Decrease of 10%
|
Profit before tax attributable to shareholders
|
(864)
|
(432)
|
|
(709)
|
(355)
|
Related deferred tax (where applicable)
|
48
|
24
|
|
21
|
10
|
Net effect on profit after tax and shareholders'
equity
|
(816)
|
(408)
|
|
(688)
|
(345)
|
|
|
|
Risks
|
|
Risk of loss
|
Equity risk
|
-
|
Related to the incidence of benefits related to guarantees issued
in connection with its variable annuity contracts; and
|
|
-
|
Related to meeting contractual accumulation requirements in fixed
index annuity contracts.
|
Interest rate risk
|
-
|
Related to meeting guaranteed rates of accumulation on fixed
annuity and interest sensitive life products following a sustained
fall in interest rates;
|
|
-
|
Related to increases in the present value of projected benefits
related to guarantees issued in connection with its variable
annuity contracts following a sustained fall in interest rates
especially if in conjunction with a fall in equity
markets;
|
|
-
|
Related to the surrender value guarantee features attached to the
Company's fixed annuity and interest sensitive life products and to
policyholder withdrawals following a sharp and sustained increase
in interest rates; and
|
|
-
|
The risk of mismatch between the expected duration of certain
annuity liabilities and prepayment risk and extension risk inherent
in mortgage-backed securities.
|
31 Dec 2019
|
Minimum
return‡
|
Account
value
|
Net
amount
at risk
|
Weighted
average
attained age
|
Period
until
expected
annuitisation
|
|
|
|
%
|
$m
|
$m
|
Years
|
Years
|
Return of net deposits plus a minimum return
|
|
|
|
|
|
|
|
GMDB
|
0-6%
|
150,576
|
2,477
|
66.9 years
|
|
|
GMWB - premium only
|
0%
|
2,753
|
16
|
|
|
|
GMWB*
|
0-5%‡
|
257
|
14
|
|
|
|
GMAB - premium only
|
0%
|
37
|
-
|
|
|
Highest specified anniversary account value minus withdrawals
post-anniversary
|
|
|
|
|
|
|
|
GMDB
|
|
12,547
|
69
|
67.7 years
|
|
|
GMWB - highest anniversary only
|
|
3,232
|
51
|
|
|
|
GMWB*
|
|
698
|
52
|
|
|
Combination net deposits plus minimum return, highest specified
anniversary account value minus withdrawals
post-anniversary
|
|
|
|
|
|
|
|
GMDB
|
0-6%
|
8,159
|
687
|
70.0 years
|
|
|
GMIB†
|
0-6%
|
1,688
|
616
|
|
0.5 years
|
|
GMWB*
|
0-8%‡
|
140,529
|
7,160
|
|
|
31 Dec 2018
|
Minimum
return
|
Account
value
|
Net
amount
at risk
|
Weighted
average
attained age
|
Period
until
expected
annuitisation
|
|
|
|
%
|
$m
|
$m
|
Years
|
Years
|
Return of net deposits plus a minimum return
|
|
|
|
|
|
|
|
GMDB
|
0-6%
|
125,644
|
5,652
|
66.5 years
|
|
|
GMWB - premium only
|
0%
|
2,450
|
80
|
|
|
|
GMWB*
|
0-5%‡
|
251
|
25
|
|
|
|
GMAB - premium only
|
0%
|
34
|
-
|
|
|
Highest specified anniversary account value minus withdrawals
post-anniversary
|
|
|
|
|
|
|
|
GMDB
|
|
10,865
|
1,418
|
67.1 years
|
|
|
GMWB - highest anniversary only
|
|
2,827
|
400
|
|
|
|
GMWB*
|
|
682
|
113
|
|
|
Combination net deposits plus minimum return, highest specified
anniversary account value minus withdrawals
post-anniversary
|
|
|
|
|
|
|
|
GMDB
|
0-6%
|
6,947
|
1,550
|
69.5 years
|
|
|
GMIB†
|
0-6%
|
1,599
|
825
|
|
0.1 years
|
|
GMWB*
|
0-8%‡
|
116,902
|
21,442
|
|
|
Mutual fund type:
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
|
|
Equity
|
121,520
|
99,834
|
|
Bond
|
19,341
|
17,705
|
|
Balanced
|
30,308
|
25,349
|
|
Money market
|
956
|
1,049
|
|
Total
|
172,125
|
143,937
|
Sensitivity to equity risk - Jackson
|
2019 $m
|
|
2018 $m
|
||||||||
|
Decrease
|
|
Increase
|
|
Decrease
|
|
Increase
|
||||
|
of 20%
|
of 10%
|
|
of 20%
|
of 10%
|
|
of 20%
|
of 10%
|
|
of 20%
|
of 10%
|
Profit before tax (net of related changes in amortisation of
DAC)
|
964
|
256
|
|
1,848
|
770
|
|
1,347
|
544
|
|
74
|
(159)
|
Related deferred tax
|
(202)
|
(54)
|
|
(388)
|
(162)
|
|
(282)
|
(115)
|
|
(15)
|
33
|
Net effect on profit after tax and shareholders'
equity*
|
762
|
202
|
|
1,460
|
608
|
|
1,065
|
429
|
|
59
|
(126)
|
|
|
2019 $m
|
|
2018 $m
|
||||||||
|
|
Decrease
|
|
Increase
|
|
Decrease
|
|
Increase
|
||||
|
|
of 2%
|
of 1%
|
|
of 2%
|
of 1%
|
|
of 2%
|
of 1%
|
|
of 2%
|
of 1%
|
Profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax (net of related changes in amortisation of
DAC)
|
(6,238)
|
(2,815)
|
|
3,914
|
2,141
|
|
(4,502)
|
(2,188)
|
|
2,815
|
1,530
|
|
Related deferred tax
|
1,310
|
591
|
|
(822)
|
(450)
|
|
945
|
460
|
|
(591)
|
(321)
|
Net effect on profit after tax
|
(4,928)
|
(2,224)
|
|
3,092
|
1,691
|
|
(3,557)
|
(1,728)
|
|
2,224
|
1,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct effect on carrying value of debt securities (net of related
changes in amortisation of DAC)
|
5,342
|
2,840
|
|
(5,342)
|
(2,840)
|
|
5,265
|
2,988
|
|
(5,265)
|
(2,988)
|
|
Related deferred tax
|
(1,122)
|
(596)
|
|
1,122
|
596
|
|
(1,105)
|
(628)
|
|
1,105
|
628
|
Net effect on other comprehensive income
|
4,220
|
2,244
|
|
(4,220)
|
(2,244)
|
|
4,160
|
2,360
|
|
(4,160)
|
(2,360)
|
|
Total net effect on shareholders' equity
|
(708)
|
20
|
|
(1,128)
|
(553)
|
|
603
|
632
|
|
(1,936)
|
(1,151)
|
|
2019 $m
|
|||||
|
Balance
at 1 Jan
|
Demerger
of UK and
Europe
operations
|
Movement in
income
statement
|
Movement
through
other
comprehensive
income
and equity
|
Other
movements
including
foreign
currency
movements
|
Balance
at 31 Dec
|
Deferred tax assets
|
|
|
|
|
|
|
Unrealised losses or gains on investments
|
144
|
-
|
(16)
|
-
|
(128)
|
-
|
Balances relating to investment and insurance
contracts
|
1
|
-
|
60
|
-
|
(29)
|
32
|
Short-term temporary differences
|
2,979
|
(146)
|
1,069
|
(15)
|
1
|
3,888
|
Capital allowances
|
19
|
(14)
|
(3)
|
-
|
(1)
|
1
|
Unused tax losses
|
162
|
-
|
8
|
-
|
(16)
|
154
|
Total
|
3,305
|
(160)
|
1,118
|
(15)
|
(173)
|
4,075
|
Deferred tax liabilities
|
|
|
|
|
|
|
Unrealised losses or gains on investments
|
(1,104)
|
1,053
|
(231)
|
(713)
|
118
|
(877)
|
Balances relating to investment and insurance
contracts
|
(1,276)
|
-
|
(246)
|
-
|
15
|
(1,507)
|
Short-term temporary differences
|
(2,671)
|
233
|
(414)
|
19
|
(14)
|
(2,847)
|
Capital allowances
|
(71)
|
65
|
-
|
-
|
-
|
(6)
|
Total
|
(5,122)
|
1,351
|
(891)
|
(694)
|
119
|
(5,237)
|
|
2019
|
|
2018
|
||||
Issued shares of 5p each fully paid
|
Number of
ordinary
shares
|
Share
capital
|
Share
premium
|
|
Number of
ordinary
shares
|
Share
capital
|
Share
premium
|
|
|
$m
|
$m
|
|
|
$m
|
$m
|
Balance at 1 January
|
2,593,044,409
|
166
|
2,502
|
|
2,587,175,445
|
175
|
2,635
|
Shares issued under share-based schemes
|
8,115,540
|
-
|
22
|
|
5,868,964
|
1
|
22
|
Impact of change in presentation currency
|
-
|
6
|
101
|
|
-
|
(10)
|
(155)
|
Balance at 31 December
|
2,601,159,949
|
172
|
2,625
|
|
2,593,044,409
|
166
|
2,502
|
|
|
|
Share price
range
|
|
|
|
|
Number of shares to subscribe for
|
|
from
|
to
|
|
Exercisable by year
|
31 Dec 2019
|
3,805,447
|
|
1,104p
|
1,455p
|
|
2025
|
31 Dec 2018
|
4,885,804
|
|
901p
|
1,455p
|
|
2024
|
|
|
|
2019
|
|
|
|
|
|
2018
|
|
|
||||
|
Number
|
|
share price
|
|
|
|
Number
|
|
share price
|
|
|
||||
|
of shares
|
|
Low
|
|
High
|
|
Cost*
|
|
of shares
|
|
Low
|
|
High
|
|
Cost*
|
|
|
|
£
|
|
£
|
|
$
|
|
|
|
£
|
|
£
|
|
$
|
January
|
75,165
|
|
14.25
|
|
14.29
|
|
1,384,926
|
|
51,555
|
|
19.18
|
|
19.40
|
|
1,378,409
|
February
|
71,044
|
|
15.00
|
|
15.18
|
|
1,390,865
|
|
55,765
|
|
17.91
|
|
18.10
|
|
1,402,089
|
March
|
68,497
|
|
15.20
|
|
16.32
|
|
1,385,182
|
|
55,623
|
|
18.25
|
|
18.54
|
|
1,432,155
|
April
|
2,638,429
|
|
15.65
|
|
16.73
|
|
54,052,710
|
|
1,664,334
|
|
16.67
|
|
17.95
|
|
40,997,710
|
May
|
73,417
|
|
16.35
|
|
16.45
|
|
1,550,109
|
|
63,334
|
|
18.91
|
|
19.38
|
|
1,636,433
|
June
|
217,800
|
|
16.20
|
|
16.36
|
|
4,484,773
|
|
181,995
|
|
18.21
|
|
18.65
|
|
4,432,511
|
July
|
60,514
|
|
17.47
|
|
17.71
|
|
1,321,427
|
|
55,888
|
|
17.68
|
|
17.86
|
|
1,308,608
|
August
|
72,671
|
|
14.86
|
|
15.21
|
|
1,318,593
|
|
60,384
|
|
18.04
|
|
18.10
|
|
1,404,285
|
September
|
73,284
|
|
14.14
|
|
14.76
|
|
1,318,767
|
|
82,612
|
|
16.95
|
|
16.98
|
|
1,829,814
|
October
|
178,359
|
|
13.78
|
|
14.24
|
|
3,148,811
|
|
148,209
|
|
15.62
|
|
16.84
|
|
3,223,238
|
November
|
75,904
|
|
13.38
|
|
13.85
|
|
1,309,146
|
|
67,162
|
|
15.95
|
|
15.96
|
|
1,382,514
|
December
|
68,573
|
|
13.07
|
|
13.13
|
|
1,178,206
|
|
73,744
|
|
13.99
|
|
14.30
|
|
1,323,949
|
Total
|
3,673,657
|
|
|
|
|
|
73,843,515
|
|
2,560,605
|
|
|
|
|
|
61,751,715
|
|
2019 $m
|
2018 $m
|
Gain on disposalsnote
(i)
|
265
|
-
|
Other transactionsnote
(ii)
|
(407)
|
(107)
|
Total gain (loss) on disposal of business from continuing
operations
|
(142)
|
(107)
|
|
$m
|
Assets
|
|
Other assets
|
28
|
Cash and cash equivalents
|
2
|
Total assets
|
30
|
Other liabilities
|
(7)
|
Non-controlling interests*
|
(141)
|
Net assets acquired and liabilities assumed
|
(118)
|
Goodwill arising on acquisition*
|
260
|
Purchase consideration
|
142
|
|
|
2019 $m
|
2018 $m
|
Earned premiums, net of reinsurance
|
10,920
|
(101)
|
|
Investment return and other incomenote
(1)
|
22,292
|
(2,386)
|
|
Total revenue, net of reinsurance
|
33,212
|
(2,487)
|
|
Benefits and claims and movement in unallocated surplus of
with-profits funds, net of reinsurance
|
(26,975)
|
6,645
|
|
Acquisition costs and other expenditure
|
(4,143)
|
(3,296)
|
|
Total charges, net of reinsurance
|
(31,118)
|
3,349
|
|
Discontinued UK and Europe operations' profit before
tax
|
2,094
|
862
|
|
Re-measurement of the UK and Europe operations on
demergernote
(2)
|
188
|
-
|
|
Cumulative exchange loss recycled from other comprehensive
income
|
(2,668)
|
-
|
|
(Loss) profit before tax
|
(386)
|
862
|
|
Tax (charge) creditnote
(3)
|
(775)
|
280
|
|
(Loss) profit for the year from discontinued
operations
|
(1,161)
|
1,142
|
|
|
2019 $m
|
2018 $m
|
Cumulative exchange loss recycled through profit or
loss
|
2,668
|
-
|
|
Other items, net of related tax
|
203
|
(605)
|
|
Other comprehensive income for the year from discontinued
operations, net of related tax
|
2,871
|
(605)
|
|
2019 $m
|
2018 $m
|
Cash flows from operating activities
|
2,375
|
5
|
Cash flows from investing activities
|
(454)
|
(478)
|
Cash flows from financing activities*
|
-
|
(137)
|
Cash and cash equivalents divested on demerger
|
(7,611)
|
-
|
Net cash flows in the year
|
(5,690)
|
(610)
|
Net cash flows between discontinued and continuing
operations*
|
(436)
|
(842)
|
Cash and cash equivalents at beginning of year
|
6,048
|
7,857
|
Effect of exchange rate changes on cash and cash
equivalents
|
78
|
(357)
|
Cash and cash equivalents on the consolidated statement of
financial position at end of year
|
-
|
6,048
|
|
31 Dec 2019
|
|
31 Dec 2018*
|
||||
|
Total
|
Less
policyholder
|
Shareholder
|
|
Total
|
Less
policyholder
|
Shareholder
|
Available capital ($bn)
|
33.1
|
(19.1)
|
14.0
|
|
27.0
|
(13.5)
|
13.5
|
Group Minimum Capital Requirement ($bn)
|
9.5
|
(5.0)
|
4.5
|
|
7.6
|
(3.8)
|
3.8
|
LCSM surplus (over GMCR) ($bn)
|
23.6
|
(14.1)
|
9.5
|
|
19.4
|
(9.7)
|
9.7
|
LCSM ratio (over GMCR) (%)
|
348%
|
|
309%
|
|
355%
|
|
356%
|
Estimated Group shareholder LCSM capital position (based on
GMCR)
|
||||||
|
|
|
Shareholder
|
|||
31 Dec 2019 ($bn)
|
Total
Asia
|
Less
policyholder
|
Asia
|
US
|
Unallocated to
a segment
|
Group total
|
Available capital
|
26.8
|
(19.1)
|
7.7
|
5.3
|
1.0
|
14.0
|
Group Minimum Capital Requirement
|
8.0
|
(5.0)
|
3.0
|
1.5
|
-
|
4.5
|
LCSM surplus (over GMCR)
|
18.8
|
(14.1)
|
4.7
|
3.8
|
1.0
|
9.5
|
|
|
|
|
|
|
|
|
|
|
Shareholder
|
|||
31 Dec 2018* ($bn)
|
Total
Asia
|
Less
policyholder
|
Asia
|
US
|
Unallocated to
a segment
|
Group total
|
Available capital
|
19.6
|
(13.5)
|
6.1
|
5.7
|
1.7
|
13.5
|
Group Minimum Capital Requirement
|
6.3
|
(3.8)
|
2.5
|
1.3
|
-
|
3.8
|
LCSM surplus (over GMCR)
|
13.3
|
(9.7)
|
3.6
|
4.4
|
1.7
|
9.7
|
|
|
31 Dec 2019
|
|
Impact of market sensitivities
|
LCSM surplus
($bn)
|
LCSM ratio
(%)
|
|
Base position
|
9.5
|
309%
|
|
Impact of:
|
|
|
|
|
20% instantaneous fall in equity markets
|
1.5
|
(9)%
|
|
40% fall in equity marketsnote
(1)
|
(0.2)
|
(39)%
|
|
50 basis points reduction in interest rates
|
(0.2)
|
(17)%
|
|
100 basis points increase in interest rates
|
(1.3)
|
(19)%
|
|
100 basis points increase in credit spreadsnote
(2)
|
(1.6)
|
(36)%
|
|
|
2019
($bn)
|
Balance at beginning of year
|
9.7
|
|
Operating:
|
|
|
|
Operating capital generation from the in-force
business
|
2.5
|
|
Investment in new business
|
(0.6)
|
Operating capital generation
|
1.9
|
|
Non-operating and other capital movements:
|
|
|
|
Non-operating experience (including market movements)
|
(0.6)
|
|
Adoption of NAIC regulatory reforms in the US
|
0.1
|
|
Corporate activities (excluding demerger items)
|
(0.8)
|
|
Demerger costs
|
(0.4)
|
|
Subordinated debt redemption
|
(0.5)
|
|
Demerger related impacts
|
1.0
|
|
|
|
|
M&G plc remittances
|
0.7
|
|
External dividends
|
(1.6)
|
Net dividend impact
|
(0.9)
|
|
|
|
|
Net movement in LCSM surplus
|
(0.2)
|
|
Balance at end of year
|
9.5
|
31 Dec 2019 ($bn)
|
Asia
|
US
|
Unallocated to a segment
|
Group total
|
|
Estimated Group shareholder LCSM surplus (over GMCR)
|
4.7
|
3.8
|
1.0
|
9.5
|
|
Increase required capital for EEV free surplusnote
(i)
|
(0.6)
|
(2.2)
|
-
|
(2.8)
|
|
Adjust surplus assets and core structural borrowings to market
valuenote
(ii)
|
0.3
|
0.2
|
(0.2)
|
0.3
|
|
Add back inadmissible assetsnote
(iii)
|
0.1
|
0.1
|
-
|
0.2
|
|
Deductions applied to EEV free surplusnote
(iv)
|
(0.9)
|
-
|
-
|
(0.9)
|
|
Other
|
-
|
(0.1)
|
0.4
|
0.3
|
|
EEV free surplus excluding intangibles*
|
3.6
|
1.8
|
1.2
|
6.6
|
|
|
31 Dec 2019
($bn)
|
Group IFRS shareholders' equity
|
19.5
|
Remove DAC, goodwill and intangibles
|
(18.2)
|
Add subordinated debt at IFRS book value
|
4.6
|
Valuation differences
|
8.6
|
Other
|
(0.5)
|
Estimated Group shareholder LCSM available capital
|
14.0
|
|
|
|
31 Dec 2019 $bn
|
31 Dec 2018* $bn
|
Asia operations:
|
|
|
||
|
Internal funds
|
141.9
|
112.5
|
|
|
Eastspring Investments external funds (as analysed in note
I(v))
|
124.7
|
77.8
|
|
|
Other†
|
-
|
22.2
|
|
|
|
|
266.6
|
212.5
|
US operations - internal funds
|
273.4
|
237.0
|
||
Other operations
|
3.9
|
5.8
|
||
Total Group funds under management - continuing
operations
|
543.9
|
455.3
|
|
|
|
31 Dec 2019 $bn
|
31 Dec 2018 $bn
|
|
Total investments and cash and cash equivalents held by the
continuing operations on the consolidated statement of financial
position
|
412.6
|
349.6
|
|
|
External and M&G plc funds of Eastspring
Investments
|
124.7
|
100.0
|
|
|
Internally managed funds held in joint ventures and associate,
excluding assets attributable to external unit holders of the
consolidated collective investment schemes and other
adjustments
|
6.6
|
5.7
|
|
|
Total Group funds under management from continuing
operations
|
543.9
|
455.3
|
|
|
|
2019 $m
|
AER
2018 $m
|
Net cash remitted by business
unitsnote
(a):
|
|
|
||
From continuing operations
|
|
|
||
|
Asianote
(b)
|
950
|
916
|
|
|
USnote
(b)
|
509
|
452
|
|
|
Other operations
|
6
|
49
|
|
|
Total continuing operations
|
1,465
|
1,417
|
|
From discontinued UK and Europe operations
|
684
|
842
|
||
Net cash remittances by business units
|
2,149
|
2,259
|
||
Net interest paidnote
(c)
|
(527)
|
(488)
|
||
Tax received
|
265
|
190
|
||
Corporate activities
|
(260)
|
(274)
|
||
Total central outflows
|
(522)
|
(572)
|
||
Holding company cash flow before dividends and other
movements
|
1,627
|
1,687
|
||
Dividends paid
|
(1,634)
|
(1,662)
|
||
Operating holding company cash flow after dividends but before
other movements
|
(7)
|
25
|
||
Other movements
|
|
|
||
|
Transactions to effect the demerger, including debt
substitutionnote(d)
|
(146)
|
2,071
|
|
|
Demerger costs
|
(424)
|
(29)
|
|
|
Redemption of subordinated debt for continuing
operations
|
(504)
|
(553)
|
|
|
Early settlement of UK-inflation-linked derivative
liability
|
(587)
|
-
|
|
|
Other corporate activities relating to continuing
operationsnote(e)
|
(338)
|
(336)
|
|
Total other movements
|
(1,999)
|
1,153
|
||
Total holding company cash flow
|
(2,006)
|
1,178
|
||
Cash and short-term investments at beginning of year
|
4,121
|
3,063
|
||
Foreign exchange movements
|
92
|
(120)
|
||
Cash and short-term investments at end of year
|
2,207
|
4,121
|
|
|
2019
|
||||
|
|
Asia
|
US
|
Group
total
|
Average
liability
|
Margin
|
|
|
$m
|
$m
|
$m
|
$m
|
bps
|
|
|
note (b)
|
note (c)
|
|
note (1)
|
note (2)
|
Spread income
|
321
|
642
|
963
|
86,887
|
111
|
|
Fee income
|
286
|
3,292
|
3,578
|
208,217
|
172
|
|
With-profits
|
107
|
-
|
107
|
58,032
|
18
|
|
Insurance margin
|
2,244
|
1,317
|
3,561
|
|
|
|
Margin on revenues
|
3,035
|
-
|
3,035
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Acquisition costsnote
(3)
|
(2,156)
|
(1,074)
|
(3,230)
|
7,384
|
(44)%
|
|
Administration expenses
|
(1,437)
|
(1,675)
|
(3,112)
|
303,204
|
(103)
|
|
DAC adjustmentsnote
(4)
|
430
|
510
|
940
|
|
|
Expected return on shareholder assets
|
194
|
26
|
220
|
|
|
|
|
|
3,024
|
3,038
|
6,062
|
|
|
Share of related tax charges from joint ventures and
associatenote
(5)
|
(31)
|
-
|
(31)
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns long-term business
|
2,993
|
3,038
|
6,031
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - asset management
|
283
|
32
|
315
|
|
|
|
Total segment profit from continuing operations
|
3,276
|
3,070
|
6,346
|
|
|
|
|
2018 AERnotes
(6),(7)
|
||||
|
|
Asia
|
US
|
Group
total
|
Average
liability
|
Margin
|
|
|
$m
|
$m
|
$m
|
$m
|
bps
|
|
|
note (b)
|
note (c)
|
|
note (1)
|
note(2)
|
Spread income
|
310
|
778
|
1,088
|
74,803
|
145
|
|
Fee income
|
280
|
3,265
|
3,545
|
204,456
|
173
|
|
With-profits
|
95
|
-
|
95
|
47,548
|
20
|
|
Insurance margin
|
1,978
|
1,267
|
3,245
|
|
|
|
Margin on revenues
|
2,810
|
-
|
2,810
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Acquisition costsnote
(3)
|
(2,007)
|
(1,013)
|
(3,020)
|
7,058
|
(43)%
|
|
Administration expenses
|
(1,374)
|
(1,607)
|
(2,981)
|
284,985
|
(105)
|
|
DAC adjustmentsnote
(4)
|
435
|
(152)
|
283
|
|
|
Expected return on shareholder assets
|
172
|
14
|
186
|
|
|
|
|
2,699
|
2,552
|
5,251
|
|
|
|
Share of related tax charges from joint ventures and
associatenote
(5)
|
(53)
|
-
|
(53)
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns long-term business
|
2,646
|
2,552
|
5,198
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - asset management
|
242
|
11
|
253
|
|
|
|
Total segment profit from continuing operations
|
2,888
|
2,563
|
5,451
|
|
|
|
|
2018 CERnotes
(6),(7)
|
||||
|
|
Asia
|
US
|
Group
total
|
Average
liability
|
Margin
|
|
|
$m
|
$m
|
$m
|
$m
|
bps
|
|
|
note (b)
|
note (c)
|
|
note (1)
|
note (2)
|
Spread income
|
305
|
778
|
1,083
|
74,690
|
145
|
|
Fee income
|
277
|
3,265
|
3,542
|
204,111
|
174
|
|
With-profits
|
94
|
-
|
94
|
47,580
|
20
|
|
Insurance margin
|
1,966
|
1,267
|
3,233
|
|
|
|
Margin on revenues
|
2,790
|
-
|
2,790
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Acquisition costsnote
(3)
|
(1,991)
|
(1,013)
|
(3,004)
|
7,018
|
(43)%
|
|
Administration expenses
|
(1,359)
|
(1,607)
|
(2,966)
|
284,527
|
(104)
|
|
DAC adjustmentsnote
(4)
|
430
|
(152)
|
278
|
|
|
Expected return on shareholder assets
|
172
|
14
|
186
|
|
|
|
|
|
2,684
|
2,552
|
5,236
|
|
|
Share of related tax charges from joint ventures and
associatenote
(5)
|
(51)
|
-
|
(51)
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns long-term business
|
2,633
|
2,552
|
5,185
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - asset management
|
239
|
11
|
250
|
|
|
|
Total segment profit from continuing operations
|
2,872
|
2,563
|
5,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018 AER
|
|
2018 CERnotes
(6),(7)
|
||||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Profit
|
liability
|
Margin
|
|
Profit
|
liability
|
Margin
|
|
Profit
|
liability
|
Margin
|
|
|
$m
|
$m
|
bps
|
|
$m
|
$m
|
bps
|
|
$m
|
$m
|
bps
|
|
|
note (1)
|
note (2)
|
|
|
note (1)
|
note (2)
|
|
|
note (1)
|
note (2)
|
|
Spread income
|
321
|
29,706
|
108
|
|
310
|
24,752
|
125
|
|
305
|
24,639
|
124
|
|
Fee income
|
286
|
27,277
|
105
|
|
280
|
26,398
|
106
|
|
277
|
26,053
|
106
|
|
With-profits
|
107
|
58,032
|
18
|
|
95
|
47,548
|
20
|
|
94
|
47,580
|
20
|
|
Insurance margin
|
2,244
|
|
|
|
1,978
|
|
|
|
1,966
|
|
|
|
Margin on revenues
|
3,035
|
|
|
|
2,810
|
|
|
|
2,790
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costsnote
(3)
|
(2,156)
|
5,161
|
(42)%
|
|
(2,007)
|
4,999
|
(40)%
|
|
(1,991)
|
4,959
|
(40)%
|
|
Administration expenses
|
(1,437)
|
56,984
|
(252)
|
|
(1,374)
|
51,150
|
(269)
|
|
(1,359)
|
50,692
|
(268)
|
|
DAC adjustmentsnote
(4)
|
430
|
|
|
|
435
|
|
|
|
430
|
|
|
Expected return on shareholder assets
|
194
|
|
|
|
172
|
|
|
|
172
|
|
|
|
|
|
3,024
|
|
|
|
2,699
|
|
|
|
2,684
|
|
|
Share of related tax charges from joint ventures and
associatenote
(5)
|
(31)
|
|
|
|
(53)
|
|
|
|
(51)
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - long-term business
|
2,993
|
|
|
|
2,646
|
|
|
|
2,633
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - asset management (Eastspring Investments)
|
283
|
|
|
|
242
|
|
|
|
239
|
|
|
|
Total Asia
|
3,276
|
|
|
|
2,888
|
|
|
|
2,872
|
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Profit
|
liability
|
Margin
|
|
Profit
|
liability
|
Margin
|
|
|
$m
|
$m
|
bps
|
|
$m
|
$m
|
bps
|
|
|
|
note (1)
|
note (2)
|
|
|
note (1)
|
note (2)
|
Spread income
|
642
|
57,181
|
112
|
|
778
|
50,051
|
155
|
|
Fee income
|
3,292
|
180,940
|
182
|
|
3,265
|
178,058
|
183
|
|
Insurance margin
|
1,317
|
|
|
|
1,267
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Acquisition costsnote
(3)
|
(1,074)
|
2,223
|
(48)%
|
|
(1,013)
|
2,059
|
(49)%
|
|
Administration expenses
|
(1,675)
|
246,220
|
(68)
|
|
(1,607)
|
233,835
|
(69)
|
|
DAC adjustments
|
510
|
|
|
|
(152)
|
|
|
Expected return on shareholder assets
|
26
|
|
|
|
14
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - long-term business
|
3,038
|
|
|
|
2,552
|
|
|
|
Adjusted IFRS operating profit based on longer-term investment
returns - asset management
|
32
|
|
|
|
11
|
|
|
|
Total US
|
3,070
|
|
|
|
2,563
|
|
|
|
|
2019 $m
|
|
2018 $m
|
||||||
|
|
Before
acquisition
costs
and DAC
adjustments
|
Acquisition costs
|
After
acquisition
costs
and DAC
adjustments
|
|
Before
acquisition
costs
and DAC
adjustments
|
Acquisition costs
|
After
acquisition
costs
and DAC
adjustments
|
||
|
|
|
Incurred
|
Deferred
|
|
|
|
Incurred
|
Deferred
|
|
Total adjusted IFRS operating profit based on longer-term
investment returns before acquisition costs and DAC
adjustments
|
3,602
|
|
|
3,602
|
|
3,717
|
|
|
3,717
|
|
Less new business strain
|
|
(1,074)
|
807
|
(267)
|
|
|
(1,013)
|
760
|
(253)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other DAC adjustments - amortisation of previously deferred
acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
Normal
|
|
|
(577)
|
(577)
|
|
|
|
(653)
|
(653)
|
|
Deceleration (acceleration)
|
|
|
280
|
280
|
|
|
|
(259)
|
(259)
|
Total adjusted IFRS operating profit based on longer-term
investment returns
|
3,602
|
(1,074)
|
510
|
3,038
|
|
3,717
|
(1,013)
|
(152)
|
2,552
|
|
2019 $m
|
|
2018 $m
|
|
2019 vs 2018 %
|
||
|
|
|
AER
|
CER
|
|
AER
|
CER
|
Hong Kong
|
734
|
|
591
|
591
|
|
24%
|
24%
|
Indonesia
|
540
|
|
555
|
559
|
|
(3)%
|
(3)%
|
Malaysia
|
276
|
|
259
|
252
|
|
7%
|
10%
|
Philippines
|
73
|
|
57
|
58
|
|
28%
|
26%
|
Singapore
|
493
|
|
439
|
433
|
|
12%
|
14%
|
Thailand
|
170
|
|
151
|
157
|
|
13%
|
8%
|
Vietnam
|
237
|
|
199
|
197
|
|
19%
|
20%
|
South-east Asia operations including Hong Kong
|
2,523
|
|
2,251
|
2,247
|
|
12%
|
12%
|
China JV
|
219
|
|
191
|
182
|
|
15%
|
20%
|
Taiwan
|
74
|
|
68
|
67
|
|
9%
|
10%
|
Other
|
70
|
|
68
|
69
|
|
3%
|
1%
|
Non-recurrent items*
|
142
|
|
126
|
124
|
|
13%
|
15%
|
Total insurance operations
|
3,028
|
|
2,704
|
2,689
|
|
12%
|
13%
|
Share of related tax charges from joint ventures and
associate
|
(31)
|
|
(53)
|
(51)
|
|
42%
|
39%
|
Development expenses
|
(4)
|
|
(5)
|
(5)
|
|
20%
|
20%
|
Total long-term business
|
2,993
|
|
2,646
|
2,633
|
|
13%
|
14%
|
Asset management (Eastspring Investments)
|
283
|
|
242
|
239
|
|
17%
|
18%
|
Total Asia
|
3,276
|
|
2,888
|
2,872
|
|
13%
|
14%
|
|
2019 $m
|
2018 $m
|
|
Operating income before performance-related feesnote
(1)
|
636
|
566
|
|
Performance-related fees
|
12
|
23
|
|
Operating income (net of commission)note
(2)
|
648
|
589
|
|
Operating expensenote
(2)
|
(329)
|
(311)
|
|
Group's share of tax on joint ventures' operating
profit
|
(36)
|
(36)
|
|
Operating profit based on longer-term investment
returns
|
283
|
242
|
|
|
|
|
|
Average funds managed by Eastspring Investments
|
$214.0bn
|
$186.3bn
|
|
Margin based on operating income*
|
30bps
|
30bps
|
|
Cost/income ratio†
|
52%
|
55%
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
Margin*
|
Institutional‡
|
Margin*
|
Total
|
Margin*
|
|
|
$m
|
bps
|
$m
|
bps
|
$m
|
bps
|
|
2019
|
392
|
52
|
244
|
18
|
636
|
30
|
|
2018
|
336
|
50
|
230
|
18
|
566
|
30
|
|
|
31 Dec 2019 $bn
|
31 Dec 2018 $bn
|
External funds under managementnote
(1):
|
|
|
|
|
Retail
|
73.7
|
55.3
|
|
Institutional*
|
37.7
|
7.7
|
|
Money market funds (MMF)
|
13.3
|
14.8
|
|
|
124.7
|
77.8
|
Internal funds under management*
|
116.4
|
114.9
|
|
Total funds under managementnote
(2)
|
241.1
|
192.7
|
|
|
2019 $m
|
2018 $m
|
At 1 January
|
77,762
|
75,601
|
|
Market gross inflows
|
283,268
|
283,156
|
|
Redemptions
|
(276,215)
|
(283,271)
|
|
Market and other movements
|
39,907
|
2,276
|
|
At 31 December
|
124,722
|
77,762
|
|
31 Dec 2019
|
|
31 Dec 2018
|
||
|
$bn
|
% of total
|
|
$bn
|
% of total
|
Equity
|
107.0
|
44%
|
|
86.6
|
45%
|
Fixed income
|
116.2
|
48%
|
|
86.4
|
45%
|
Alternatives
|
3.4
|
2%
|
|
2.9
|
1%
|
MMF
|
14.5
|
6%
|
|
16.8
|
9%
|
Total funds under management
|
241.1
|
100%
|
|
192.7
|
100%
|
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
Core structural borrowings of shareholder-financed
businesses
|
|
5,594
|
9,761
|
Less holding company cash and short-term investments
|
|
(2,207)
|
(4,121)
|
Net core structural borrowings of shareholder-financed
businesses
|
|
3,387
|
5,640
|
Closing shareholders' equity
|
|
19,477
|
21,968
|
Closing shareholders' equity plus net core structural
borrowings
|
|
22,864
|
27,608
|
IFRS gearing ratio
|
|
15%
|
20%
|
|
2019 $m
|
|||||
Continuing operations
|
Asia
|
US
|
Unallocated to a segment (central operations)
|
Group
|
Add back
demerger-
related
items*
|
Adjusted
Group
(excluding
demerger-
related
items*)
|
Operating profit based on longer-term investment
returns
|
3,276
|
3,070
|
(1,036)
|
5,310
|
179
|
5,489
|
Tax on operating profit
|
(436)
|
(437)
|
100
|
(773)
|
(34)
|
(807)
|
Profit attributable to non-controlling interests
|
(6)
|
-
|
(3)
|
(9)
|
-
|
(9)
|
Operating profit based on longer-term investment returns, net of
tax and non-controlling interests
|
2,834
|
2,633
|
(939)
|
4,528
|
145
|
4,673
|
Non-operating profit (loss), net of tax
|
885
|
(3,013)
|
(456)
|
(2,584)
|
383
|
(2,201)
|
IFRS profit for the year net of tax and non-controlling
interests
|
3,719
|
(380)
|
(1,395)
|
1,944
|
528
|
2,472
|
Other comprehensive income, net of tax and non-controlling
interests
|
192
|
2,679
|
(146)
|
2,725
|
-
|
2,725
|
IFRS total comprehensive income
|
3,911
|
2,299
|
(1,541)
|
4,669
|
528
|
5,197
|
Closing shareholders' funds
|
10,866
|
8,929
|
(318)
|
19,477
|
-
|
19,477
|
Operating return on shareholders' funds (%)
|
26%
|
29%
|
n/a
|
23%
|
-
|
24%
|
Total comprehensive return on shareholders' funds (%)
|
36%
|
26%
|
n/a
|
24%
|
-
|
27%
|
|
2018 $m
|
|
|
|
|
|
|
Asia
|
US
|
|
|
|
|
Operating profit based on longer-term investment
returns
|
2,888
|
2,563
|
|
|
|
|
Tax on operating profit
|
(411)
|
(402)
|
|
|
|
|
Profit attributable to non-controlling interests
|
(1)
|
-
|
|
|
|
|
Operating profit based on longer-term investment returns, net of
tax and non-controlling interests
|
2,476
|
2,161
|
|
|
|
|
Non-operating profit (loss), net of tax
|
(662)
|
(179)
|
|
|
|
|
IFRS profit for the year, net of tax and non-controlling
interests
|
1,814
|
1,982
|
|
|
|
|
Other comprehensive income, net of tax and non-controlling
interests
|
(206)
|
(1,446)
|
|
|
|
|
IFRS total comprehensive income
|
1,608
|
536
|
|
|
|
|
Closing shareholders' funds
|
8,175
|
7,163
|
|
|
|
|
Operating return on shareholders' funds (%)
|
30%
|
30%
|
|
|
|
|
Total comprehensive return on shareholders' funds (%)
|
20%
|
7%
|
|
|
|
|
|
2019
|
|||
|
Asia
|
US
|
Other
|
Group
total
|
Closing IFRS shareholders' equity ($ million)
|
10,866
|
8,929
|
(318)
|
19,477
|
Shareholders' funds per share (cents)
|
418¢
|
343¢
|
(12)¢
|
749¢
|
|
Eastspring Investments
|
|
|
2019 $m
|
2018 $m
|
Operating income before
performance-related feesnote
|
636
|
566
|
Share of joint venture revenue
|
(244)
|
(250)
|
Commission
|
165
|
156
|
Performance-related fees
|
12
|
23
|
IFRS revenue
|
569
|
495
|
|
|
|
Operating expense
|
329
|
311
|
Share of joint venture expense
|
(102)
|
(133)
|
Commission
|
165
|
156
|
IFRS charges
|
392
|
334
|
Cost/income ratio: operating expense/operating income before
performance-related fees
|
52%
|
55%
|
|
2019 $m
|
|
2018 $m
|
|
|
|
|
AER
|
CER
|
Asia renewal insurance premium
|
19,007
|
|
17,165
|
17,046
|
Add: General insurance premium
|
135
|
|
120
|
122
|
Add: IFRS gross earned premium from new regular and single premium
business
|
6,386
|
|
6,421
|
6,402
|
Less: Renewal premiums from joint ventures
|
(1,771)
|
|
(1,717)
|
(1,657)
|
Asia segment IFRS gross premiums earned
|
23,757
|
|
21,989
|
21,913
|
|
|
|
|
|
Asia renewal insurance premium (as above)
|
19,007
|
|
17,165
|
17,046
|
Asia APE (see Note II(vi))
|
5,161
|
|
4,999
|
4,959
|
Asia life weighted premium income
|
24,168
|
|
22,164
|
22,005
|
|
2019 $m
|
2018 $m
|
Annual premium equivalents (APE) from continuing
operations
|
7,384
|
7,058
|
Adjustment to include 100% of single premiums on new business sold
in the yearnote
(a)
|
23,409
|
21,318
|
Premiums from in-force business and other
adjustmentsnote
(b)
|
14,271
|
17,238
|
Gross premiums earned from continuing operations
|
45,064
|
45,614
|
|
31 Dec 2019 $m
|
31 Dec 2018 $m
|
EEV shareholders' equity
|
54,711
|
63,402
|
Less: Value of in-force business of long-term
businessnote
(a)
|
(41,893)
|
(42,045)
|
Deferred acquisition costs assigned zero value for EEV
purposes
|
14,239
|
12,834
|
Othernote
(b)
|
(7,580)
|
(12,223)
|
IFRS shareholders' equity
|
19,477
|
21,968
|
|
PRUDENTIAL
PUBLIC LIMITED COMPANY
|
|
|
|
By:
/s/ Mark FitzPatrick
|
|
|
|
Mark
FitzPatrick
|
|
Chief
Financial Officer
|