SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May,
2020
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
1 Angel Court, London,
England, EC2R 7AG
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in connection with Rule 12g3-2(b): 82-
14 May 2020
Business update for the 2020 Annual General Meeting
Prudential remains resilient in challenging market and accelerates
innovation
to meet consumer needs
●
Asia APE
sales1 outside
Hong Kong and China up 1 per cent2 and
total Asia APE sales1 down
24 per cent, reflecting the effects of Covid-19 on China and Hong
Kong. In-force business resilient with adjusted operating
profit3 in
Asia 14 per cent higher2.
●
New services
delivered for customers with the 'Pulse by Prudential' digital
health app downloaded on 4 million devices, more than trebling
since early March4.
●
In Asia, products
equivalent to around two-thirds of APE1 now
capable of being sold virtually5.
● Jackson minority IPO preparations continue
alongside active evaluation of other options.
●
Group local capital
summation method (LCSM) position robust, with an estimated 31 March
2020 shareholder surplus of $11.1 billion6,7 and
shareholder cover ratio of 302 per cent6,7.
● New $2.5 million Group-wide Covid-19 relief fund
to supplement existing long-term community investment and
volunteering.
Prudential plc ("Prudential") provides a business update in advance
of its Annual General Meeting, scheduled for 11.00am London time
(6.00pm Hong Kong/Singapore time) today.
Mike Wells, Group Chief Executive of Prudential plc, said: "Over
the first quarter of 2020 the world has seen substantial disruption
caused by Covid-19, alongside related market volatility. During
this time our focus has been on supporting our colleagues,
distributors, customers and communities, while continuing to invest
for the future and deliver on our strategic
objectives.
"Around 75 per cent of our approximately 19,500 colleagues are
working remotely as at 6 May 2020, with no notable increase in
costs, and across the Group we are ensuring that our people have
the support they need to ensure their physical and mental
wellbeing. In some markets, such as China, we are seeing some
easing of social distancing rules, while in others, lockdowns are
expected to continue for some time. In all locations, any return to
work will include appropriate alterations to the office environment
and will be carefully phased to safeguard the health of colleagues.
Across the Group, our people have responded nimbly and with
innovation to the varied challenges presented by the virus outbreak
and I would like to thank them once again for all their
efforts.
"We are working hard to support those who help distribute our
services. In Asia, recruitment, selection, training and, where
possible, licensing of agents have moved online. To help our
distributors operate safely with appropriate social distancing, we
have been working closely with regulators to expand the number of
products that can be sold virtually. In Hong Kong over 25 per cent
of our products can now be sold in this way, while in China,
Malaysia, Singapore, Vietnam and the Philippines most products are
now capable of being sold without the need for the customer and the
agent to be in the same room. In total, products equivalent to
around two-thirds of our total APE sales1 (based
on the sales mix achieved within the first quarter of 2020) can now
be sold virtually. In the US, our wholesale teams are working
closely with distributors to help them serve new and existing
clients through virtual platforms.
"We have been developing innovative services for customers,
including free limited-time Covid-19 cover in Asia and, through our
'Pulse by Prudential' app, artificial intelligence-powered medical
symptom checking, wellness advice and tele-medicine. Pulse is now
live in 8 markets and has seen 4 million downloads as at 8 May
2020, up from 1.3 million when we reported our full year 2019
results in March4.
1.2 million policies have been issued through our digital
ecosystem, the majority of which were to new
customers8.
For existing customers, we have simplified claims processes, set up
dedicated hotlines and developed new online tools to ensure they
get the support they need.
"Meanwhile, we have also been providing direct support for
communities, including through a new $2.5 million Group-wide
Covid-19 relief fund, facilitating free Covid-19 testing in some
markets, and the ongoing volunteering and fund-raising efforts of
our colleagues. These activities are in addition to our
long-established community programmes focused on financial literacy
and public health, which have been optimised for online
platforms.
"Within Asia, these combined efforts are translating into strong
customer loyalty, with retention rates in the first quarter of 2020
remaining high at 97 per cent9,
in line with the same period last year. In turn, in-force earnings
have been resilient, with Asia adjusted operating
profit3 up
14 per cent2.
"In April the Group issued $1 billion of senior debt, which has
increased the Group's liquidity and supported its ability to invest
in potential new growth opportunities in Asia. Recent investment
includes the expansion of our footprint in Thailand through our new
long-term strategic partnership with TMB Bank, and deployment of
working capital in new markets such as Myanmar and
Laos.
"During the first quarter of 2020 our diversified footprint, by
geography, channel and product, delivered an increase in APE
sales1 outside
Hong Kong and China of 1 per cent2 compared
with the prior period, despite sales in March 2020 being adversely
impacted by the introduction of Covid-19-related restrictions in
many Asian markets. APE sales1 in
Hong Kong and China, where restrictions were implemented earlier
and travel from mainland China to Hong Kong was substantially
curtailed, were 50 per cent2 and
19 per cent2 lower
respectively, with more recent sales data suggesting that the sales
environment is beginning to normalise in China. Overall APE
sales1 in
Asia were $986 million, down by 24 per cent (on both a constant and
actual exchange rate basis) compared to the first quarter of 2019.
We continue to see a challenging sales environment in the second
quarter of 2020 as social distancing measures are stepped up in
other Asian markets. In Africa APE sales1 grew
43 per cent2 to
$30 million.
"In the US, APE sales1 were
$631 million in the first quarter of 2020, up 25 per cent over the
same period in 2019 and up 19 per cent from the fourth quarter of
2019. While institutional APE sales1 were
higher than in the fourth quarter of 2019, retail sales were lower
following the repricing of fixed and fixed-index annuities over
late 2019 and the first quarter of 2020 in line with the evolving
interest rate environment. Pricing actions across our product
range, together with Covid-19-related restrictions on advisers'
ability to interact with potential customers, are likely to reduce
sales levels materially in the short term.
"Despite the global effects of the Covid-19 outbreak, the Group
remains focused on its strategic priorities, including to enable
our investors to benefit to the fullest extent from the opportunity
presented by our business in Asia. We
continue to prepare for a Jackson minority IPO alongside active
evaluation of other options with respect to creating an independent
Jackson. We will provide an update on our progress at the Group's
Half Year 2020 Results in August.
"The Group's estimated LCSM shareholder cover
ratio7 at
31 March 2020 was 302 per cent6,
after allowing for the second interim dividend to be paid in May
2020.
"Prudential continues to invest and innovate to meet important
needs for our consumers and has a highly resilient business model.
While we cannot say with certainty how the Covid-19 outbreak will
impact the global economy and hence how Prudential may be impacted,
we believe we are well positioned over the long term both to
weather the disruption caused by the pandemic, and to support our
customers and communities in the recovery to come."
Further detailed review of Asia and US business performance,
capital positions and financing activity, together with other
relevant notes, are included in the further information section of
this business update.
Notes
1 APE sales is a measure of new business activity
that comprises the aggregate of annualised regular premiums and
one-tenth of single premiums on new business written during the
year for all insurance products, including premiums for contracts
designated as investment contracts under IFRS 4.
2 Comparisons are to the first three months of
the prior year unless otherwise stated and year-on-year percentage
changes are provided on a constant exchange rate basis unless
otherwise stated.
3 In this press release 'adjusted operating
profit' refers to adjusted IFRS operating profit based on
longer-term investment returns from continuing operations as
defined in note B1 of the Group's 2019 Annual Report &
Accounts.
4 Total downloads at 8 May 2020, compared to
around 1.3 million at 5 March 2020 (as included in the full year
2019 results presentation).
5 Based on the APE sales mix achieved in Asia
within the first quarter of 2020.
6 LCSM position at 31 March 2020 after allowing
for both the impact of the second interim dividend to be paid in
May 2020 and the effect of the strategic bancassurance partnership
in Thailand announced in March 2020 and effective from 1 April
2020. The 31 March 2020 LCSM position also reflects the
introduction of the new risk-based capital framework in Singapore
(RBC2), effective from 31 March 2020.
7 Surplus over Group minimum capital requirement.
Shareholder business excludes the available capital and minimum
capital requirement of participating business in Hong Kong,
Singapore and Malaysia.
8 Total sales and new customers as at 8 May 2020
through both Pulse and digital partnerships.
9 Total in-force customers at 31 March 2020 net
of new customers over the quarter, as a proportion of total
in-force customers at 31 December 2019, excluding
India.
Contact:
Media
|
|
Investors/Analysts
|
|
Jonathan Oliver
|
+44 (0)20 3977 9500
|
Patrick Bowes
|
+44 (0)20 3977 9702
|
Tom Willetts
|
+44 (0)20 3977 9760
|
William Elderkin
|
+44 (0)20 3977 9215
|
Further information:
Asia
We continue to invest for the benefit of all our stakeholders in
Asia, and to deliver on important operational deliverables in the
build-out of our customer-centric digital ecosystem. The number of
downloads for our 'Pulse by Prudential' app, which is currently
live in 8 markets, has increased to 4 million (as of 8 May 2020)
from around 1.3 million when we announced our full year 2019
results1.
Daily usage of key health services has experienced exponential
growth since the Covid-19 pandemic started. The monetisation
journey has also made a good start, with 1.2 million policies sold
through the digital ecosystem, the majority of which were to new
customers2.
Our recently announced strategic bancassurance partnership with TMB
significantly strengthens our distribution capabilities in
Thailand's fast-growing life insurance sector and strongly
complements our top-five position in the country's mutual fund
market.
In an environment of unprecedented change and volatility, our
in-force business is proving resilient, with Asia adjusted
operating profit3 increasing
14 per cent4 for
the first quarter, underpinned by our recurring premium business
model, strong customer retention, focus on protection products and
business model diversity. This growth continued to be broad-based,
as nine life markets achieved adjusted operating profit
growth3,4,
of which eight increased at double digits4.
We are providing free Covid-19 coverage to our customers on a
short-term basis and claims levels remain within expected
parameters, with Covid-19-related claims very
small.
Our diversified footprint, by geography, channel and product,
helped deliver a 1 per cent4 increase
in APE sales5 to
$544 million outside China and Hong Kong. This reflects the
structural demand for our products offset by the mid-March
imposition of Covid-19 social restrictions in markets outside China
and Hong Kong. Four markets increased APE sales5,
led by the double-digit4 expansion
in Indonesia, Thailand and Singapore. Protection APE
sales5 outside
China and Hong Kong increased by double digits4,
led by growth in the agency channel. Overall Asia APE
sales5 declined
by 24 per cent4,
reflecting the impact of Covid-19 containment measures on sales
activities in China and Hong Kong in
particular.
In China, the benefits of our diversified distribution were clear,
with bancassurance APE sales5 growing
by double digits4 in
the period while our agency channel increased the proportion of
virtual sales to 75 per cent6,
led by rapid adoption of digital tools and launch of new digital
products. While the strict lockdown from the end of January
adversely impacted sales in the first quarter of 2020, we are
seeing signs that the sales environment is beginning to normalise,
with March APE sales5 almost
three times February's level and April seeing APE
sales5 growth
over the same month last year.
In Hong Kong, the domestic segment was supported by
non-face-to-face sales and strong momentum in our tax-efficient
Qualifying Deferred Annuity Plan (QDAP) given the tax year-end at
the end of March. This product accounted for more than a quarter of
our domestic APE sales5.
As expected, APE sales5 to
the mainland China customer segment in Hong Kong declined in line
with the very substantial drop in visitor
arrivals.
New business profit7 achieved
23 per cent4 growth
outside China and Hong Kong, with five markets increasing by double
digits4 supported,
among other items, by strong protection sales. Overall Asia new
business profit7 decreased
by 33 per cent4 as
a result of reduced APE sales5,
generally lower interest rates and the substantially reduced
contribution from the high-value mainland Chinese business in Hong
Kong.
In response to the higher level of social restrictions imposed by
governments across our markets, we are making significant progress
in increasing the level of virtual operations across the region and
embedding this in our business model. Across the region, products
equivalent to around two-thirds of APE sales5 (based
on the sales mix achieved within the first quarter of 2020) are
capable of being sold virtually. Agent engagement and management
have also moved online, which has enhanced the effectiveness of
communication and operation and supported healthy growth in agent
recruitment for the quarter. While we are adapting our business
model to the impact of the control measures, we are confident of
the longer-term benefits of our products and services that provide
customers with the resources to seek and obtain prevention tools
and access to quality medical care.
Eastspring had a strong start to the year, with net positive
inflows up to the end of February, which then reversed in March in
line with sector trends. Total funds under management fell 13 per
cent8 over
the quarter to $209 billion, reflecting both net third party
outflows (equivalent to 2 per cent of total funds under management
at 31 December 2019) and lower equity markets. Of Eastspring's $209
billion of funds under management at 31 March 2020, including
money-market funds, $98 billion was managed for external third
parties. While market volatilities and hence fluctuations in our
flows and funds under management may persist in the foreseeable
future, we are focused on improving capabilities and operational
efficiency. We are moving swiftly with the integration of our two
asset management acquisitions in Thailand. We remain confident of
the longer-term prospects for the business given our resilient Asia
life flows, diversified platform, expanding capabilities and proven
track record.
US
The US started to see the effects of the Covid-19 outbreak in
March, with stay-at-home orders in many states and increased market
volatility. Despite this backdrop, total APE
sales5 (including
$1.3 billion of single premium institutional sales) were up 25 per
cent from the first quarter of 2019 and up 19 per cent from the
fourth quarter of 2019. Retail APE sales5 were
up 30 per cent from the first quarter of 2019 and down 5 per cent
from the fourth quarter of 2019. The retail sales decline in the
first quarter of 2020 compared to the fourth quarter of 2019
reflected the impact of material pricing actions on fixed annuities
and fixed-index annuities in response to the evolving interest rate
environment, with APE sales5 of
these products down 36 per cent. Variable annuity (VA) APE
sales5 were
up 16 per cent from the first quarter of 2019 and up 9 per cent
from the fourth quarter of 2019. Current trends indicate that sales
of spread-based products in the second quarter of 2020 will be
significantly lower than in the first quarter of
2020.
No significant changes to policyholder behaviour have been observed
to date. In general, policyholders are remaining invested and not
dramatically shifting their allocations out of equities. Even as 95
per cent of associates in the US are now working from home,
industry-leading service levels are being maintained and our
wholesale teams are working closely with distributors to help them
serve new and existing clients through virtual
platforms.
US adjusted operating profit3 fell
52 per cent from the first quarter of 2019, primarily due to higher
DAC amortisation as a result of negative equity market movements
during the quarter, with the S&P 500 index falling 20 per cent
over the period. US IFRS non-operating profit, which primarily
comprises short-term fluctuations in investment returns, was
positive in the first quarter of 2020, as gains on derivatives
outpaced IFRS policyholder liability increases. The US
available-for-sale bond portfolio ended the first quarter of 2020
with a net unrealised gain of $2.9 billion, with a movement of
$(0.4) billion since 31 December 2019 recognised outside the income
statement, after related deferred tax and DAC effects. Of the $2.9
billion, corporate bonds contributed $0.9
billion.
Jackson's RBC cover ratio at 31 March 2020 was estimated at between
340-365 per cent (31 December 2019: 366 per cent). In highly
volatile market conditions, developments in the RBC cover ratio
over the first quarter of 2020 have been primarily driven by
movements in equity markets, interest rates and credit spreads,
which have impacted statutory reserves and capital requirements.
Total Adjusted Capital (TAC) increased over the period as a result
of positive hedge payoffs and favourable changes in US corporate
tax exceeding market-related increases in policyholder liabilities.
This was partially offset by higher required capital reflecting the
combination of equity market falls and lower interest rates
increasing the cost of guarantees disproportionately in the
modelling of tail scenarios. Whilst TAC and the absolute level of
surplus have increased substantially since 31 December 2019, there
has also been an increase in required capital, which has resulted
in a reduction in the estimated RBC cover ratio from that at 31
December 2019. Operational capital generation remains in line with
our expectations.
Measured on a local statutory basis9,
Jackson's invested assets (excluding the VA separate accounts) at
31 March 2020 comprised 13 per cent in cash (mainly representing
short-term liquidity from hedge payoffs), 6 per cent in US
Treasuries, 50 per cent in corporate bonds (of which 97 per cent
were investment-grade), 12 per cent in commercial mortgage loans
with an average loan-to-value of 55 per cent, and 19 per cent in
other assets.
The general account investment portfolio coming into the Covid-19
crisis was as conservatively positioned as at any time in Jackson's
history. For example, on a local statutory basis, as a percentage
of cash and invested assets9,
US Treasuries represented around 8 per cent of the portfolio at 31
December 2019 and high-yield corporate bonds represented only 1 per
cent. By contrast, prior to the 2008/2009 financial crisis, the
portfolio9 had
minimal US Treasuries and nearly three times the percentage
exposure to high-yield corporate bonds. BBB-rated corporate bond
exposures were reduced throughout the latter part of 2019, with
particular emphasis on those companies most vulnerable to
downgrade. At 31 December 2019, only 15 per cent9 of
the BBB-rated corporate bond exposure was in the 'BBB minus' rating
category.
As a sensitivity, as at 31 March 2020, if 20 per cent of the
general account credit assets were to be instantaneously downgraded
by 1 whole letter rating, the RBC cover ratio would fall by
approximately 16 percentage points (equivalent to a 6 percentage
point reduction in the Group's LCSM shareholder cover
ratio10,11).
Group capital
The Group's estimated LCSM shareholder cover
ratio10 at
31 March 2020 was 302 per cent11,12 (31
December 2019: 309 per cent), with surplus of available capital
over required capital of $11.1 billion10,11 (31
December 2019: $9.5 billion). After including all the Asia
with-profit funds, which is the formal LCSM regulatory position of
the Group, the estimated surplus increased to $23.4
billion11 (31
December 2019: $23.6 billion), corresponding to a cover
ratio10 at
31 March 2020 of 309 per cent11 (31
December 2019: 348 per cent).
The estimated shareholder surplus10,11 increased
by $1.6 billion in the period, reflecting approximately $0.5
billion of operating capital generation (net of $0.2 billion of
investment in new business), as well as favourable non-operating
effects of approximately $1.8 billion and a $(0.7) billion impact
to allow for the second interim dividend to be paid in May 2020.
Non-operating capital generation10,11 includes
a $2.2 billion benefit from the new Singapore risk-based capital
framework (RBC2) effective at 31 March 2020, and a $(0.8) billion
effect on the LCSM position of the strategic bancassurance
partnership with TMB in Thailand. The impact of lower equity and
interest rate movements on the level of policyholder reserves and
required capital has been broadly offset by the favourable impact
of mitigating hedging measures together with other management
actions and changes in US corporate tax.
We continue to expect 2020 operating results to reflect costs
associated with the previously announced restructuring of the
central functions and IFRS 17 expenditure.
Board membership
Earlier this year Prudential plc announced that, as part of the
process of orderly succession of the Board, Shriti Vadera has
joined the Board as a Non-executive Director and a member of the
Nomination & Governance Committee. Shriti will become Chair on
1 January 2021.
Notes to the further information
1 Total downloads at 8 May 2020, compared to
around 1.3 million at 5 March 2020 (as included in the full year
2019 results presentation).
2 Total sales and new customers as at 8 May 2020
through both Pulse and digital partnerships.
3 In this press release 'adjusted operating
profit' refers to adjusted IFRS operating profit based on
longer-term investment returns from continuing operations as
defined in note B1 of the Group's 2019 Annual Report &
Accounts.
4 Comparisons are to the first three months of
the prior year unless otherwise stated and year-on-year percentage
changes are provided on a constant exchange rate basis unless
otherwise stated.
5 APE sales is a measure of new business activity
that comprises the aggregate of annualised regular premiums and
one-tenth of single premiums on new business written during the
year for all insurance products, including premiums for contracts
designated as investment contracts under IFRS 4.
6 Based on sales over the first quarter of 2020
by case count.
7 New business profit, on a post-tax basis, on
business sold in the period, calculated in accordance with EEV
Principles.
8 Movement from 31 December 2019 of all internal
and external funds managed by Eastspring, on an actual exchange
rate basis.
9 Asset values measured on a US local statutory
(RBC) basis for Jackson National Life (Jackson) and its
subsidiaries, excluding policy loans, with credit ratings based on
a 'middle rating' approach. Under the US local statutory basis
bonds are generally recorded at amortised cost. This will not be
representative of the Group's IFRS balance sheet where investments
are held at fair value.
10 Surplus over Group minimum capital requirement.
Shareholder business excludes the available capital and minimum
capital requirement of participating business in Hong Kong,
Singapore and Malaysia.
11 LCSM position at 31 March 2020 after allowing for both the
impact of the second interim dividend to be paid in May 2020 and
the effect of the strategic bancassurance partnership in Thailand
announced in March 2020 and effective from 1 April 2020. The 31
March 2020 LCSM position also reflects the introduction of the new
risk-based capital framework in Singapore (RBC2), effective from 31
March 2020.
12 For the purpose of preparing the estimated Group LCSM
position at 31 March 2020, a Jackson RBC position broadly in the
middle of the estimated RBC cover ratio range at 31 March 2020 of
340-365 per cent has been used.
Estimated Group capital position
Estimated Group LCSM shareholder
capital position (based on GMCR)(i),(ii)
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|
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31 Mar 2020 ($bn)
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Group total
|
Available capital
|
17.3
|
Group Minimum Capital Requirement (GMCR)
|
5.5
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LCSM surplus (over GMCR) before second interim
dividend
|
11.8
|
Second interim dividend
|
(0.7)
|
LCSM surplus (over GMCR) after second interim dividend
|
11.1
|
|
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31 Dec 2019 ($bn)
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Group total
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Available capital
|
14.0
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Group Minimum Capital Requirement (GMCR)
|
4.5
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LCSM surplus (over GMCR) before second interim
dividend
|
9.5
|
Notes
(i)
The 31 March 2020 Group LCSM position has been adjusted to allow
for the $0.8 billion investment in the TMB bancassurance agreement
in Thailand announced in March 2020, with the first instalment of
Thai Baht 12.0 billion (approximately $0.4 billion) payable in
April 2020 and the remainder on 1 January 2021. This reduced the
Group LCSM shareholder cover ratio at 31 March 2020
by 14 per cent.
(ii)
The 31 March 2020 Group LCSM position reflects the introduction of
the new risk-based capital framework in Singapore (RBC2), effective
from 31 March 2020. This increased the Group LCSM shareholder cover
ratio by 40 per cent and surplus by $2.2 billion at that date,
included within non-operating capital generation.
External auditor tender
As stated in the 2019 Annual Report, Prudential is required to
replace KPMG LLP as its external auditor no later than the 2023
financial year-end. A statement by UK
authorities on 26 March
2020 encouraged companies to consider delaying their audit tenders
due to the Covid-19 situation. Prudential's Group Audit Committee
has therefore decided to delay the completion of its audit tender
from July 2020 to the second half of 2020.
About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on
structural growth markets. The business helps individuals to
de-risk their lives and deal with their biggest financial concerns
through life and health insurance, and retirement and asset
management solutions. Prudential plc has 20 million customers and
is listed on stock exchanges in London, Hong Kong, Singapore and
New York. Prudential plc is not affiliated in any manner with
Prudential Financial, Inc. a company whose principal place of
business is in the United States of America, nor with the
Prudential Assurance Company, a subsidiary of M&G plc, a
company incorporated in the United Kingdom.
Forward-Looking Statements
This document may contain 'forward-looking statements' with respect
to certain of Prudential's plans and its goals and expectations
relating to its future financial condition, performance, results,
strategy and objectives. Statements that are not historical facts,
including statements about Prudential's beliefs and expectations
and including, without limitation, statements containing the words
'may', 'will', 'should', 'continue', 'aims', 'estimates',
'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and
'anticipates', and words of similar meaning, are forward-looking
statements. These statements are based on plans, estimates and
projections as at the time they are made, and therefore undue
reliance should not be placed on them. By their nature, all
forward-looking statements involve risk and
uncertainty.
A number of important factors could cause Prudential's actual
future financial condition or performance or other indicated
results of the entity referred to in any forward-looking statement
to differ materially from those indicated in such forward-looking
statement. Such factors include, but are not limited to, the impact
of the current Covid-19 pandemic; future market conditions,
including fluctuations in interest rates and exchange rates, the
potential for a sustained low-interest rate environment, and the
impact of economic uncertainty, asset valuation impacts from the
transition to a lower carbon economy, inflation and deflation and
the performance of financial markets generally; global political
uncertainties; the policies and actions of regulatory authorities,
including, in particular, the policies and actions of the Hong Kong
Insurance Authority, as Prudential's new Group-wide supervisor, as
well as new government initiatives generally; the impact of
continuing application of Global Systemically Important Insurer or
'G-SII' policy measures on Prudential; the impact on Prudential of
systemic risk policy measures adopted by the International
Association of Insurance Supervisors; the impact of competition and
fast-paced technological change; the effect on Prudential's
business and results from, in particular, mortality and morbidity
trends, lapse rates and policy renewal rates; the physical impacts
of climate change and global health crises on Prudential's business
and operations; the timing, impact and other uncertainties of
future acquisitions or combinations within relevant industries; the
impact of internal transformation projects and other strategic
actions failing to meet their objectives; the ability to complete a
potential minority initial public offering of Jackson, or one of
its related companies, or other strategic options in relation to
Jackson, or one of its related companies; the risk that
Prudential's operational resilience (or that of its suppliers and
partners) may prove to be inadequate, including in relation to
operational disruption due to external events; disruption to the
availability, confidentiality or integrity of Prudential's
information technology, digital systems and data (or those of its
suppliers and partners); any ongoing impact on Prudential of the
demerger of M&G plc; the impact of changes in capital, solvency
standards, accounting standards or relevant regulatory frameworks,
and tax and other legislation and regulations in the jurisdictions
in which Prudential and its affiliates operate; the impact of legal
and regulatory actions, investigations and disputes; and the impact
of not adequately responding to environmental, social and
governance issues. These and other important factors may, for
example, result in changes to assumptions used for determining
results of operations or re-estimations of reserves for future
policy benefits. Further discussion of these and other important
factors that could cause Prudential's actual future financial
condition or performance or other indicated results of the entity
referred to in any forward-looking statements to differ, possibly
materially, from those anticipated in Prudential's forward-looking
statements can be found under the 'Risk Factors' in
Prudential's Annual Report for the year ended 31 December 2019.
Prudential's 2019 Annual Report is available on its website at
www.prudentialplc.com.
Any forward-looking statements contained in this document speak
only as of the date on which they are made. Prudential expressly
disclaims any obligation to update any of the forward-looking
statements contained in this document or any other forward-looking
statements it may make, whether as a result of future events, new
information or otherwise except as required pursuant to the UK
Prospectus Rules, the UK Listing Rules, the UK Disclosure and
Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing
rules or other applicable laws and regulations.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 14 May 2020
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By: /s/ Mark FitzPatrick
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Mark
FitzPatrick
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Group
Chief Financial Officer and Chief Operating Officer
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