Adding more
to life.

By helping to take the financial risk out of life’s big decisions, Prudential creates long-term value for our customers,
our shareholders and the communities we serve.

Group Chief Executive's report

Mike Wells
Group Chief Executive

Strong performance and continued profitable growth

I am pleased to report that over 2017 our clear, consistent strategy, high-quality products and improving capabilities have enabled us to meet the needs of customers around the world better than ever before.

Chief Financial Officer's report

Mark FitzPatrick
Chief Financial Officer

Broad-based performance and strong growth in high quality business

I am pleased to report that Prudential's financial performance in 2017 has resulted in all of our 2017 financial objectives being met. Our progress across our KPIs reflects the benefits of our focus on driving growth in high-quality, recurring health and protection and fee business across our geographies, products and distribution channels.

Our strategy

We aim to capture three long-term opportunities across our key geographical markets:

  • serving the protection and investment needs of the growing middle class in Asia;
  • providing asset accumulation and retirement income products to US baby boomers; and
  • meeting the savings and retirement needs of an ageing British and continental European population.

We aim to generate attractive returns, enabling us to provide financial security to our customers, invest in growth opportunities and meet our customers’ high expectations.

Asia

Prudential Corporation Asia

Prudential Corporation Asia has leading insurance and asset management operations across 14 markets and serves the families of the region's high potential economies. We have been operating in Asia for over 90 years and have built high-performing businesses with multichannel distribution, a product portfolio centred on regular savings and protection, award-winning customer services and a widely recognised brand.

Eastspring Investments is a leading asset manager in Asia and provides investment solutions across a broad range of asset classes.

US

Jackson

Jackson provides retirement savings and income strategies aimed at the large number of people approaching retirement in the United States. Jackson's pursuit of excellence in product innovation and distinctive distribution capabilities has helped us forge a solid reputation for meeting the needs of customers. Jackson's variable annuities offer a distinct retirement solution designed to provide a variety of investment choices to help customers pursue their financial goals.

UK and Europe

M&G Prudential

In August we announced the formation of M&G Prudential, a leading savings and investments business, ideally positioned to target growing customer demand for financial solutions in the UK and Europe. Our vision is a business built for the customer: simple, efficient, digitally enabled, capital light, fast-growing and above all focused on delivery. The combined business benefits from two strong complementary brands, a world-class investment capability, international distribution and a robust capital position.

Our strategy

We aim to capture three long-term opportunities across our key geographical markets:

  • serving the protection and investment needs of the growing middle class in Asia;
  • providing asset accumulation and retirement income products to US baby boomers; and
  • meeting the savings and retirement needs of an ageing British and continental European population.

We aim to generate attractive returns, enabling us to provide financial security to our customers, invest in growth opportunities and meet our customers’ high expectations.

Asia

Prudential Corporation Asia

Prudential Corporation Asia has leading insurance and asset management operations across 14 markets and serves the families of the region's high potential economies. We have been operating in Asia for over 90 years and have built high-performing businesses with multichannel distribution, a product portfolio centred on regular savings and protection, award-winning customer services and a widely recognised brand.

Eastspring Investments is a leading asset manager in Asia and provides investment solutions across a broad range of asset classes.

US

Jackson

Jackson provides retirement savings and income strategies aimed at the large number of people approaching retirement in the United States. Jackson's pursuit of excellence in product innovation and distinctive distribution capabilities has helped us forge a solid reputation for meeting the needs of customers. Jackson's variable annuities offer a distinct retirement solution designed to provide a variety of investment choices to help customers pursue their financial goals.

UK and Europe

M&G Prudential

In August we announced the formation of M&G Prudential, a leading savings and investments business, ideally positioned to target growing customer demand for financial solutions in the UK and Europe. Our vision is a business built for the customer: simple, efficient, digitally enabled, capital light, fast-growing and above all focused on delivery. The combined business benefits from two strong complementary brands, a world-class investment capability, international distribution and a robust capital position.

Our performance

Growth

£4,699m

IFRS operating profit

+6% on 2016

Growth rate on constant exchange rate basis.

Growth

£3,616m

New business profit

+12% on 2016

Growth rate on constant exchange rate basis.

Growth

£6,598m

EEV operating profit

+15% on 2016

Growth rate on constant exchange rate basis.

Cash

£3,640m

Free surplus generation

—1% on 2016

Growth rate on constant exchange rate basis.

Cash

£1,788m

Remittances

+4% on 2016

Growth rate on an actual exchange rate basis.

Capital

£13.3bn

Solvency II surplus

+6% on 2016

Growth rate on an actual exchange rate basis.

Capital

202%

Cover ratio

+1pp on 2016

 

Corporate responsibility review

Building stronger communities

We build stronger communities by delivering products that enable
our customers to move ahead in their lives with confidence, and by investing in the real economy to drive the cycle of growth.

2017 performance highlights

£25 million

total community investment

£500,000

raised through Prudential RideLondon from
charity partners and employees

96,493

hours volunteered by employees across the Prudential Group

£412,375

donated by employees through payroll giving across the Group