a5814g
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 July, 2023
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation
of registrant's name into English)
13/F, One International Finance Centre,
1 Harbour View Street, Central,
Hong Kong, China
(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-
NEWS RELEASE
20 July 2023
IFRS17 Briefing
Audited 2022 IFRS17 results in line with previous
guidance
Prudential plc ("Prudential") is today holding an IFRS17 briefing
for investors and analysts. A pre-recorded presentation and
supporting materials are available on the Group's website. The
Group's Chief Financial Officer, Ben Bulmer, will lead a Q&A
session today at 4pm (Hong Kong Time) / 9am (UK time).
The presentation explains how IFRS17 is applied to Prudential and
reviews the Group's 2022 financial performance on an IFRS17 basis.
It also introduces the IFRS17 accounting framework, which is
effective from the 1st of January this year and will be the
accounting basis for our first half 2023 results. The 2022
IFRS17 results, which have been
audited, show that the Group's shareholders' equity on 1
January 2022, the date of transition, increased by $1.8 billion to
$18.9 billion and 2022 adjusted operating profit fell by $653
million to $2,722 million. This is consistent with the preliminary guidance provided
with the Group's 2022 results on 15 March 2023. At 31 December
2022, the Contractual Service Margin ('CSM') balance, part of
insurance contract liabilities under IFRS17, was $20.0 billion[1],
representing a significant stock of future profit. New business
written in 2022 added $2.1 billion to the CSM.
While
IFRS17 is an important accounting change, resulting in changes to
the timing of profit recognition compared with the previous IFRS4
approach, it does not change the total level of profit generated.
As a result, it does not change the economics of our business. Our
embedded value framework, which is linked to the Group's regulatory
position and consequently future capital generation, is in our view
more representative of shareholder value.
Under
IFRS17, the release of the CSM is the main driver of adjusted
operating profit and the new business added to the CSM will be an
important factor in building CSM. Looking forward, we expect the
compounding effect of the new business added to the CSM to support
growth in IFRS17 adjusted operating profit, which remains a key
performance measure for the Group.
As
previously announced, we expect to announce the half year 2023
results on 30 August 2023.
Contact:
Media
|
|
Investors/analysts
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Simon
Kutner
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+44
(0)7581 023260
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Patrick
Bowes
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+852
9611 2981
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Sonia
Tsang
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+852
5580 7525
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William
Elderkin
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+44
(0)20 3977 9215
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|
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Darwin
Lam
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+852
2918 6348
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About Prudential plc
Prudential
plc provides life and health insurance and asset management in 24
markets across Asia and Africa. The business helps people get the
most out of life, by making healthcare affordable and accessible
and by promoting financial inclusion. Prudential protects people's
wealth, helps them grow their assets, and empowers them to save for
their goals. The business has dual primary listings on the Stock
Exchange of Hong Kong (2378) and the London Stock Exchange (PRU).
It also has a secondary listing on the Singapore Stock Exchange
(K6S) and a listing on the New York Stock Exchange (PUK) in the
form of American Depositary Receipts. It is a constituent of the
Hang Seng Composite Index and is also included for trading in the
Shenzhen-Hong Kong Stock Connect programme and Shanghai-Hong Kong
Stock Connect programme.
Prudential is not affiliated in any manner with Prudential
Financial, Inc. a company whose principal place of business is in
the United States of America, nor with The Prudential Assurance
Company Limited, a subsidiary of M&G plc, a company
incorporated in the United Kingdom. https://www.prudentialplc.com/
We
expect to release an update on the impact of IFRS17 on Prudential's
2022 results to the Hong Kong Stock Exchange and to the UK
financial Media at 12.00pm HKT
- 5.00am UKT - 12.00am ET on Thursday, 20 July
2023.
The
announcement will be released on the London Stock Exchange
at 2.00pm HKT - 7.00am
UKT - 2.00am ET on Thursday, 20 July 2023.
A pre-recorded presentation for analysts and investors will be
available on-demand from 12.00pm HKT - 5.00am UKT - 12.00am ET
on Thursday, 20 July 2023 using the following
link: https://www.investis-live.com/prudential/646b97c74170900d006eb195/ewfm.
A copy of the script used in the recorded video and accompanying
materials will also be available from 12.00pm HKT - 5.00am UKT
- 12.00am ET on Thursday, 20 July 2023 on Prudential plc's
website.
A Q&A call for analysts and investors will be held at
4.00pm HKT - 9.00am UKT - 4.00am ET on Thursday, 20
July.
Registration
to join the Q&A event online
To register to join the event and submit
questions online, please do so via the following
link: https://www.investis-live.com/prudential/64a2ee019b8a600d0047bdff/opplk.
The webcast will be available to watch afterwards using the same
link.
Dial-in
details
A
dial-in facility will be available to listen to the event and ask
questions: please allow 15 minutes ahead of the start time to
join the call (lines open half an hour before the call is due to
start, i.e. from 3.30pm HKT - 8.30am UKT - 3.30am
ET).
Dial-in:
+44 (0) 20 3936 2999 (UK and international) / 0800 358 1035
(Freephone UK), Participant access code: 390841. Once participants have entered
this code their name and company details will be
taken.
Transcript
Following
the call a transcript will be published on the results centre
page of Prudential's website on Wednesday, 26
July.
Playback
facility
Please
use the following for a playback facility: +44 (0) 20 3936 3001 (UK
and international), replay code 450391. This will be available from
approximately 7.00pm HKT - 12.00pm UKT - 7.00am ET on Thursday, 20
July until 6.59am HKT on Friday, 28 July - 11.59pm UKT - 6.59pm ET
on Thursday, 27 July.
Forward-looking statements
This
document contains 'forward-looking statements' with respect to
certain of Prudential's (and its wholly and jointly owned
businesses') plans and its goals and expectations relating to
future financial condition, performance, results, strategy and
objectives. Statements that are not historical facts, including
statements about Prudential's (and its wholly and jointly owned
businesses') beliefs and expectations and including, without
limitation, commitments, ambitions and targets, including those
related to ESG, and 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 actual future financial
condition or performance or other indicated results to differ
materially from those indicated in any forward-looking statement.
Such factors include, but are not limited to:
●
current
and future market conditions, including fluctuations in interest
rates and exchange rates, inflation (including resulting interest
rate rises), sustained high or low interest rate environments, the
performance of financial and credit markets generally and the
impact of economic uncertainty, slowdown or contraction (including
as a result of the
Russia-Ukraine conflict and related or other
geopolitical tensions and conflicts), which may also impact
policyholder behaviour and reduce product
affordability;
●
asset
valuation impacts from the transition to a lower carbon
economy;
●
derivative
instruments not effectively mitigating any
exposures;
●
global
political uncertainties, including the potential for increased
friction in cross-border trade and the exercise of laws,
regulations and executive powers to restrict trade, financial
transactions, capital movements and/or
investment;
●
the
longer-term impacts of Covid-19, including macroeconomic impacts on
financial market volatility and global economic activity and
impacts on sales, claims, assumptions and increased product
lapses;
●
the
policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's Group-wide supervisor, as well as the
degree and pace of regulatory changes and new government
initiatives generally;
●
given
Prudential's designation as an Internationally Active Insurance
Group, the impact on Prudential of systemic risk and other group
supervision policy standards adopted by the International
Association of Insurance Supervisors;
●
the
physical, social, morbidity/health and financial impacts of climate
change and global health crises, which may impact Prudential's
business, investments, operations and its duties owed to
customers;
●
legal,
policy and regulatory developments in response to climate change
and broader sustainability-related issues, including the
development of regulations and standards and interpretations such
as those relating to ESG reporting, disclosures and product
labelling and their interpretations (which may conflict and create
misrepresentation risks);
●
the
collective ability of governments, policymakers, the Group,
industry and other stakeholders to implement and adhere to
commitments on mitigation of climate change and broader
sustainability-related issues effectively (including not
appropriately considering the interests of all Prudential's
stakeholders or failing to maintain high standards
of
corporate governance and responsible business
practices);
●
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
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 or adversely impacting the
Group's employees;
●
the
availability and effectiveness of reinsurance for Prudential's
businesses;
●
the
risk that Prudential's operational resilience (or that of its
suppliers and partners) may prove to be inadequate, including in
relation to operational disruption due to external
events;
●
disruption
to the availability, confidentiality or integrity of Prudential's
information technology, digital systems and data (or those of its
suppliers and partners) including the Pulse
platform;
●
the
increased non-financial and financial risks and uncertainties
associated with operating joint ventures with independent partners,
particularly where joint ventures are not controlled by
Prudential;
●
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; and
●
the
impact of legal and regulatory actions, investigations and
disputes.
●
These
factors are not exhaustive. Prudential operates in a continually
changing business environment with new risks emerging from time to
time that it may be unable to predict or that it currently does not
expect to have a material adverse effect on its business. In
addition, 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 actual future financial condition or performance
to differ, possibly materially, from those anticipated in
Prudential's forward-looking statements can be found
under
the 'Risk Factors' heading of Prudential's 2022
Annual Report and its Annual Report on Form 20-F filed with the US
Securities and Exchange Commission on 23 March
2023.
Any
forward-looking statements contained in this document speak only as
of the date on which they are made. Prudential expressly disclaims
any obligation to update any of the forward-looking statements
contained in this document or any other forward-looking statements
it may make, whether as a result of future events, new information
or otherwise except as required pursuant to the UK Prospectus
Rules, the UK Listing Rules, the UK Disclosure Guidance and
Transparency Rules, the Hong Kong Listing Rules, the SGX-ST Listing
Rules or other applicable laws and regulations.
Prudential
may also make or disclose written and/or oral forward-looking
statements in reports filed with or furnished to the US Securities
and Exchange Commission, the UK Financial Conduct Authority, the
Hong Kong Stock Exchange and other regulatory authorities, as well
as in its annual report and accounts to shareholders, periodic
financial reports to shareholders, proxy statements, offering
circulars, registration statements, prospectuses, prospectus
supplements, press releases and other written materials and in oral
statements made by directors, officers or employees of Prudential
to third parties, including financial analysts. All such
forward-looking statements are qualified in their entirety by
reference to the factors discussed under the 'Risk Factors' heading
of Prudential's 2022 Annual Report and any subsequent filing
Prudential makes with the US Securities and Exchange Commission,
including any subsequent Annual Report on Form 20-F.
Cautionary statements
This
document does not constitute or form part of any offer or
invitation to purchase, acquire, subscribe for, sell, dispose of or
issue, or any solicitation of any offer to purchase, acquire,
subscribe for, sell or dispose of, any securities in any
jurisdiction nor shall it (or any part of it) or the fact of its
distribution, form the basis of, or be relied on in connection
with, any contract therefor.
NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO
THE UNITED STATES OF AMERICA
[1] Net of reinsurance, including joint ventures and
associates.
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: 20
July 2023
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By: /s/
Ben Bulmer
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Ben Bulmer
Chief Financial Officer
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