|
30 Jun 2023
|
|
31 Dec 2022note
(1)
|
|
|
||||
|
Shareholder
|
Add
policyholder
|
Total
|
|
Shareholder
|
Add
policyholder
|
Total
|
|
Change in total
|
|
|
note (3)
|
note (4)
|
|
|
note (3)
|
note (4)
|
|
note (5)
|
Group capital resources ($bn)
|
23.4
|
14.0
|
37.4
|
|
23.2
|
12.6
|
35.8
|
|
1.6
|
of which: Tier 1 capital resources ($bn)note
(2)
|
16.4
|
1.7
|
18.1
|
|
15.9
|
1.5
|
17.4
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
Group Minimum Capital Requirement ($bn)
|
4.6
|
1.0
|
5.6
|
|
4.4
|
0.9
|
5.3
|
|
0.3
|
Group Prescribed Capital Requirement ($bn)
|
7.9
|
11.3
|
19.2
|
|
7.6
|
10.1
|
17.7
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
GWS capital surplus over GPCR ($bn)
|
15.5
|
2.7
|
18.2
|
|
15.6
|
2.5
|
18.1
|
|
0.1
|
GWS coverage ratio over GPCR (%)
|
295%
|
|
194%
|
|
307%
|
|
202%
|
|
(8)ppt
|
|
|
|
|
|
|
|
|
|
|
GWS Tier 1 surplus over GMCR ($bn)
|
|
|
12.5
|
|
|
|
12.1
|
|
0.4
|
GWS Tier 1 coverage ratio over GMCR (%)
|
|
|
323%
|
|
|
|
328%
|
|
(5)ppt
|
(1)
|
The 31 December 2022 GWS capital results do not reflect the impact
of the redemption of $0.4 billion of senior debt in January 2023.
Allowing for this redemption reduces the estimated shareholder GWS capital surplus
over GPCR to $15.2 billion with a coverage ratio of 302 per cent
and reduces the estimated total GWS capital surplus over
GPCR to $17.7 billion with a coverage ratio of 200 per cent. The
total GWS Tier 1 over GMCR capital position is unaffected by this
redemption.
|
(2)
|
The classification of tiering of capital under the GWS framework
reflects the different local regulatory regimes along with guidance
issued by the Hong Kong IA. At 30 June 2023, total Tier 1 capital
resources of $18.1 billion comprises: $23.4billion of total
shareholder capital resources; less $(3.6) billion of Prudential
plc issued sub-ordinated and senior Tier 2 debt capital; less
$(3.4) billion of local regulatory tiering classifications which
are classified as GWS Tier 2 capital resources primarily in
Singapore and the Chinese Mainland; plus $1.7 billion of Tier 1
capital resources in policyholder funds.
|
(3)
|
This allows for any associated diversification impacts between the
shareholder and policyholder positions reflected in the total
company results where relevant.
|
(4)
|
The total company GWS coverage ratio over GPCR presented above
represents the eligible group capital resources coverage ratio as
set out in the GWS framework while the total company GWS tier 1
coverage ratio over GMCR represents the tier 1 group capital
coverage ratio.
|
(5)
|
Refer to section on Material changes in GMCR, GPCR, tier 1 group
capital and eligible group capital resources below.
|
|
|
Shareholder
|
||||
|
|
30 Jun 2023
|
|
31 Dec 2022
|
||
Impact of market sensitivities
|
Surplus ($bn)
|
Coverage ratio
|
|
Surplus ($bn)
|
Coverage ratio
|
|
Base position
|
15.5
|
295%
|
|
15.6
|
307%
|
|
Impact of:
|
|
|
|
|
|
|
|
10% increase in equity markets
|
0.3
|
(5)%
|
|
0.3
|
(3)%
|
|
20% fall in equity markets
|
(1.9)
|
(11)%
|
|
(1.9)
|
(14)%
|
|
50 basis points reduction in interest rates
|
0.7
|
11%
|
|
0.4
|
4%
|
|
100 basis points increase in interest rates
|
(1.4)
|
(17)%
|
|
(1.1)
|
(15)%
|
|
100 basis points increase in credit spreads
|
(0.8)
|
(12)%
|
|
(0.8)
|
(9)%
|
|
|
|
|
|
|
|
|
|
Total
|
||||
|
|
30 Jun 2023
|
|
31 Dec 2022
|
||
Impact of market sensitivities
|
Surplus ($bn)
|
Coverage ratio
|
|
Surplus ($bn)
|
Coverage ratio
|
|
Base position
|
18.2
|
194%
|
|
18.1
|
202%
|
|
Impact of:
|
|
|
|
|
|
|
|
10% increase in equity markets
|
1.0
|
0%
|
|
1.2
|
1%
|
|
20% fall in equity markets
|
(3.7)
|
(11)%
|
|
(3.6)
|
(12)%
|
|
50 basis points reduction in interest rates
|
0.3
|
3%
|
|
0.0
|
0%
|
|
100 basis points increase in interest rates
|
(0.8)
|
(4)%
|
|
(0.6)
|
(3)%
|
|
100 basis points increase in credit spreads
|
(1.2)
|
(6)%
|
|
(1.2)
|
(6)%
|
|
|
Half year 2023 $bn
|
Total GWS surplus at 1 Jan (over GPCR)
|
18.1
|
|
Shareholder free surplus generation
|
|
|
|
In force operating capital generation
|
1.1
|
|
Investment in new business
|
(0.4)
|
Total operating free surplus generation
|
0.7
|
|
|
External dividends
|
(0.4)
|
|
Non-operating movements including market movements
|
(0.1)
|
|
Other capital movements (including foreign exchange
movements)
|
(0.4)
|
Movement in free surplus (see EEV basis results for further
detail)
|
(0.2)
|
|
|
Other movements in GWS shareholder surplus not included in free
surplus
|
0.1
|
|
Movement in contribution from GWS policyholder
surplus (over GPCR)
|
0.2
|
Net movement in GWS capital surplus (over GPCR)
|
0.1
|
|
Total GWS surplus at 30 Jun (over GPCR)
|
18.2
|
-
|
Total eligible capital resources has increased by $1.6 billion to
$37.4 billion at 30 June 2023 (31 December 2022: $35.8 billion).
This includes a $0.7 billion increase in tier 1 group capital to
$18.1 billion (31 December 2022: $17.4 billion). The increase in
total eligible capital resources and tier 1 group capital is
primarily driven by positive operating capital generation over the
period, partially offset by external dividends paid, debt
redeemed and foreign exchange movements over the
period.
|
-
|
Total regulatory GPCR has increased by $1.5billion to $19.2 billion
at 30 June 2023 (31 December 2022: $17.7 billion) and the total
regulatory GMCR has increased by $0.3 billion to $5.6 billion at 30
June 2023 (31 December 2022: $5.3 billion). The increase in GPCR
and GMCR is primarily driven by new business sold over the period,
partially offset by the release of capital as the policies mature
or are surrendered and foreign exchange movements over the
period.
|
|
30 Jun 2023 $bn
|
||
|
Capital resources
|
Required capital
|
Surplus
|
Free surplus excluding distribution rights and other
intangibles*
|
14.0
|
5.6
|
8.4
|
Restrictions applied in free surplus for China C-ROSS
IInote
(1)
|
1.9
|
1.5
|
0.4
|
Restrictions applied in free surplus for HK RBCnote
(2)
|
5.7
|
0.7
|
5.0
|
Restrictions applied in free surplus for Singapore
RBCnote
(3)
|
2.0
|
0.1
|
1.9
|
Other
|
(0.2)
|
0.0
|
(0.2)
|
Add GWS policyholder surplus contribution
|
14.0
|
11.3
|
2.7
|
Total regulatory GWS capital surplus (over GPCR)
|
37.4
|
19.2
|
18.2
|
(1)
|
Free surplus applies the embedded value reporting approach issued
by the China Association of Actuaries (CAA) in the Chinese Mainland
and includes a requirement to establish a deferred profit liability
within EEV net worth which leads to a reduction in EEV free surplus
as compared to the C-ROSS II surplus reported for local regulatory
purposes. Further differences relate to the treatment of
subordinated debt within CPL which is excluded from EEV free
surplus and which contributes to C-ROSS II surplus for local
regulatory reporting.
|
(2)
|
EEV free surplus for Hong Kong under the HK RBC regime excludes
regulatory surplus that is not considered distributable
immediately. This includes HK RBC technical provisions that are
lower than policyholder asset shares or cash surrender floors as
well as the value of future shareholder transfers from
participating business (net of associated required capital) which
are included in the shareholder GWS capital
position.
|
(3)
|
EEV free surplus for Singapore is based on the Tier 1 requirements
under the RBC2 framework, which excludes certain negative reserves
permitted to be recognised in the full RBC 2 regulatory position
used when calculating the GWS capital surplus (over
GPCR).
|
|
30 Jun 2023
$bn
|
Group IFRS shareholders' equity
|
17.2
|
Remove goodwill and intangibles recognised on the IFRS consolidated
statement of financial position
|
(4.4)
|
Add debt treated as capital under GWSnote
(1)
|
3.6
|
Asset valuation differencesnote
(2)
|
(0.8)
|
Remove IFRS 17 contractual service margin (CSM) (including joint
ventures and associates)note
(3)
|
20.8
|
Liability valuation (including insurance contracts) differences
excluding IFRS 17 CSM note
(4)
|
(0.1)
|
Differences in associated net deferred tax
liabilitiesnote
(5)
|
0.9
|
Othernote
(6)
|
0.2
|
Group total GWS capital resources
|
37.4
|
(1)
|
As per the GWS Framework, debt in issuance at the date of
designation that satisfy the criteria for transitional arrangements
and qualifying debt issued since the date of designation are
included as Group capital resources but are treated as liabilities
under IFRS.
|
(2)
|
Asset valuation differences reflect differences in the basis of
valuing assets between IFRS and local statutory valuation rules,
including deductions for inadmissible assets. Differences include
for some markets where government and corporate bonds are valued at
book value under local regulations but are valued at market value
under IFRS.
|
(3)
|
The IFRS 17 contractual service margin (CSM) represents a
discounted stock of unearned profit which is released over time as
services are provided. On a GWS basis the level of future profits
will be recognised within the capital resources to the extent
permitted by the local solvency reserving basis. Any restrictions
applied by the local solvency bases (such as zeroization of future
profits) is captured in the liability valuation differences
line.
|
(4)
|
Liability valuation differences (excluding the CSM) reflect
differences in the basis of valuing liabilities between IFRS and
local statutory valuation rules. This includes the negative impact
of moving from the IFRS 17 best estimate reserving basis to a more
prudent local solvency reserving basis (including any restrictions
in the recognition of future profits) offset by the fact that
certain local solvency regimes capture some reserves within the
required capital instead of the capital resources.
|
(5)
|
Differences in associated net deferred tax liabilities mainly
results from the tax impact of changes in the valuation of assets
and liabilities
|
(6)
|
Other differences mainly reflect the inclusion of subordinated debt
in Chinese Mainland as local capital resources on a C-ROSS II basis
as compared to being held as a liability under IFRS.
|
-
|
For regulated insurance entities, capital resources and required
capital are based on the local solvency regime applicable in each
jurisdiction, with minimum required capital set at the solo legal
entity statutory minimum capital requirements and prescribed
capital requirement set at the level at which the local regulator
of a given entity can impose penalties, sanctions or
intervention measures;
|
-
|
The classification of tiering of eligible capital resources under
the GWS framework reflects the different local regulatory regimes
along with guidance issued by the Hong Kong IA. In general, if a
local regulatory regime applies a tiering approach then this should
be used to determine tiering of capital on a GWS capital basis,
where a local regulatory regime does not apply a tiering approach
then all capital resources should be included as Group Tier 1
capital. For non-regulated entities tiering of capital is
determined in line with the Insurance (Group Capital)
Rules.
|
-
|
For asset management operations and other regulated entities, the
capital position is derived based on the sectoral basis applicable
in each jurisdiction, with minimum required capital based on the
solo legal entity statutory minimum capital
requirement;
|
-
|
For non-regulated entities, the capital resources are based on IFRS
shareholder equity after deducting intangible assets. No required
capital is held in respect of unregulated entities;
|
-
|
For entities where the Group's shareholding is less than 100 per
cent, the contribution of the entity to the GWS eligible group
capital resources and required capital represents the Group's share
of these amounts and excludes any amounts attributable to
non-controlling interests. This does not apply to investment
holdings which are not part of the Group;
|
-
|
Investments in subsidiaries, joint ventures and associates
(including, if any, loans that are recognised as capital on the
receiving entity's balance sheet) are eliminated from the relevant
holding company to prevent the double counting of capital
resources;
|
-
|
Under the GWS Framework, debt instruments in issuance at the date
of designation that satisfy the criteria for transitional
arrangements and qualifying debt issued since the date of
designation are included in eligible group capital resources as
tier 2 group capital;
|
-
|
At 30 June 2023 all debt instruments with the exception of the
senior debt issued in 2022 are included as Group capital resources.
The eligible amount permitted to be included as Group capital
resources for transitional debt is based on the net proceeds amount
translated using 31 December 2020 exchange rates for debt not
denominated in US dollars;
|
-
|
The total company GWS capital basis is the capital measure for Hong
Kong IA Group regulatory purposes as set out in the GWS framework.
This framework defines the eligible group capital resources
coverage ratio (or total company GWS coverage ratio over GPCR as
presented above) as the ratio of total company eligible group
capital resources to the total company GPCR and defines the tier 1
group capital coverage ratio (or total company GWS tier 1 coverage
ratio over GMCR as presented above) as the ratio of total company
tier 1 group capital to the total company GMCR; and
|
-
|
Prudential also presents a shareholder GWS capital basis which
excludes the contribution to the Group GWS eligible group capital
resources, the GMCR and GPCR from participating business in Hong
Kong, Singapore and Malaysia. In Hong Kong the present value of
future shareholder transfers from the participating business are
included in the shareholder GWS eligible capital resources along
with an associated required capital, this is in line with the local
solvency presentation. The shareholder GWS coverage ratio over GPCR
presented above reflects the ratio of shareholder eligible group
capital resources to the shareholder GPCR.
|
|
|
2023 $m
|
|
2022 $m
|
|
2023 vs 2022 %
|
|
2022 $m
|
||
|
|
Half year
|
|
Half year
AER
|
Half year
CER
|
|
Half year
AER
|
Half year
CER
|
|
Full year
AER
|
CPL
|
164
|
|
132
|
124
|
|
24%
|
32%
|
|
271
|
|
Hong Kong
|
554
|
|
598
|
597
|
|
(7)%
|
(7)%
|
|
1,162
|
|
Indonesia
|
109
|
|
118
|
113
|
|
(8)%
|
(4)%
|
|
205
|
|
Malaysia
|
165
|
|
193
|
184
|
|
(15)%
|
(10)%
|
|
340
|
|
Singapore
|
270
|
|
313
|
320
|
|
(14)%
|
(16)%
|
|
570
|
|
Growth markets and other
|
|
|
|
|
|
|
|
|
|
|
|
Philippines
|
59
|
|
62
|
58
|
|
(5)%
|
2%
|
|
131
|
|
Taiwan
|
54
|
|
57
|
54
|
|
(5)%
|
0%
|
|
116
|
|
Thailand
|
52
|
|
64
|
64
|
|
(19)%
|
(19)%
|
|
116
|
|
Vietnam
|
192
|
|
220
|
214
|
|
(13)%
|
(10)%
|
|
402
|
|
Other
|
56
|
|
(30)
|
(32)
|
|
287%
|
275%
|
|
53
|
|
Share of related tax charges from joint ventures and
associate
|
(39)
|
|
(36)
|
(35)
|
|
(8)%
|
(11)%
|
|
(90)
|
Insurance business
|
1,636
|
|
1,691
|
1,661
|
|
(3)%
|
(2)%
|
|
3,276
|
|
Eastspring
|
146
|
|
131
|
128
|
|
11%
|
14%
|
|
260
|
|
Total segment profit
|
1,782
|
|
1,822
|
1,789
|
|
(2)%
|
0%
|
|
3,536
|
|
2023 $m
|
|
2022 AER $m
|
|
|
Half year
|
|
Half year
|
Full year
|
Operating income before performance-related feesnote
(1)
|
351
|
|
332
|
660
|
Performance-related fees
|
2
|
|
4
|
1
|
Operating income (net of commission)note
(2)
|
353
|
|
336
|
661
|
Operating expensenote
(2)
|
(185)
|
|
(184)
|
(360)
|
Group's share of tax on joint ventures' operating
profit
|
(22)
|
|
(21)
|
(41)
|
Adjusted operating profit
|
146
|
|
131
|
260
|
|
|
|
|
|
Average funds managed or advised by Eastspring
|
$228.8bn
|
|
$241.8bn
|
$229.4bn
|
Margin based on operating incomenote
(3)
|
31bps
|
|
28bps
|
29bps
|
Cost/income rationote
II(v)
|
53%
|
|
55%
|
55%
|
|
|
|
|
|
(1)
|
Operating income before performance-related fees for Eastspring can
be further analysed as follows (institutional below includes
internal funds under management or under
advice):
|
|
|
Retail
|
Margin
|
Institutional
|
Margin
|
Total
|
Margin
|
|
|
$m
|
bps
|
$m
|
bps
|
$m
|
bps
|
|
Half year 2023
|
210
|
58
|
141
|
18
|
351
|
31
|
|
Half year 2022
|
196
|
52
|
136
|
16
|
332
|
28
|
|
Full year 2022
|
392
|
54
|
268
|
17
|
660
|
29
|
(2)
|
Operating income and expense include the Group's share of
contribution from joint ventures. In the consolidated income
statement of the Group IFRS financial results, the net income after
tax of the joint ventures and associates is shown as a single line
item. A reconciliation is provided in note II(v) of this additional
information.
|
(3)
|
Margin represents operating income before performance-related fees
as a proportion of the related funds under management or advice.
Half year figures have been annualised by multiplying by two.
Monthly closing internal and external funds managed or advised by
Eastspring have been used to derive the average. Any funds held by
the Group's insurance operations that are not managed or advised by
Eastspring are excluded from these amounts.
|
|
|
30 Jun 2023 $bn
|
31 Dec 2022 AER $bn
|
External funds under management, excluding funds managed on behalf
of M&G plcnote
(1)
|
|
|
|
|
Retail
|
65.2
|
60.1
|
|
Institutional
|
11.7
|
11.3
|
|
Money market funds (MMF)
|
11.8
|
10.5
|
|
|
88.7
|
81.9
|
Funds managed on behalf of M&G plcnote
(2)
|
2.4
|
9.3
|
|
|
|
|
|
External funds under management
|
91.1
|
91.2
|
|
Internal funds:
|
|
|
|
|
Internal funds under management
|
107.8
|
104.1
|
|
Internal funds under advice
|
28.8
|
26.1
|
|
|
136.6
|
130.2
|
Total funds under management or advicenote
(3)
|
227.7
|
221.4
|
(1)
|
Movements in external funds under management, excluding those
managed on behalf of M&G plc, are analysed below:
|
|
|
|
Half year 2023 $m
|
Full year 2022 AER $m
|
|
At beginning of period
|
81,949
|
93,956
|
|
|
Market gross inflows
|
44,910
|
81,942
|
|
|
Redemptions
|
(42,327)
|
(84,397)
|
|
|
Market and other movements
|
4,236
|
(9,552)
|
|
|
At end of period*
|
88,768
|
81,949
|
(2)
|
Movements in funds managed on behalf of M&G plc are analysed
below:
|
|
|
Half year 2023 $m
|
Full year 2022 AER $m
|
|
At beginning of period
|
9,235
|
11,529
|
|
Net flows
|
(7,116)
|
(765)
|
|
Market and other movements
|
237
|
(1,529)
|
|
At end of period
|
2,356
|
9,235
|
(3)
|
Total funds under management or advice are analysed by asset class
below:
|
|
|
30 Jun 2023
|
|
31 Dec 2022* AER
|
||||||
|
|
Funds under management
|
Funds under advice
|
Total
|
|
Total
|
||||
|
|
$bn
|
% of total
|
$bn
|
% of total
|
$bn
|
% of total
|
|
$bn
|
% of total
|
|
Equity
|
48.0
|
24%
|
1.3
|
5%
|
49.3
|
22%
|
|
45.5
|
21%
|
|
Fixed income
|
39.1
|
20%
|
3.2
|
11%
|
42.3
|
18%
|
|
47.9
|
22%
|
|
Multi-asset
|
96.7
|
49%
|
24.3
|
84%
|
121.0
|
53%
|
|
114.1
|
51%
|
|
Alternatives
|
2.1
|
1%
|
-
|
-
|
2.1
|
1%
|
|
2.2
|
1%
|
|
Money Market Funds
|
13.0
|
6%
|
-
|
-
|
13.0
|
6%
|
|
11.7
|
5%
|
|
Total funds
|
198.9
|
100%
|
28.8
|
100%
|
227.7
|
100%
|
|
221.4
|
100%
|
|
|
30 Jun 2023 $bn
|
31 Dec 2022 AER $bn
|
Internal funds
|
173.9
|
166.3
|
|
Eastspring external funds, including M&G plc (as analysed in
note I(ii) above)
|
91.1
|
91.2
|
|
Total Group funds under managementnote
|
265.0
|
257.5
|
|
|
30 Jun 2023 $bn
|
31 Dec 2022 AER $bn
|
Total investments and cash and cash equivalents held on the balance
sheet*
|
155.1
|
149.9
|
|
External funds of Eastspring, including M&G plc
|
91.1
|
91.2
|
|
Internally managed funds held in joint ventures and associates,
excluding assets attributable to external unit holders of the
consolidated collective investment schemes and other
adjustments
|
18.8
|
16.4
|
|
Total Group funds under management
|
265.0
|
257.5
|
|
|
2023 $m
|
|
2022 $m
|
|
|
|
Half year
|
|
Half year
|
Full year
|
Net cash remitted by business unitsnote
(1)
|
1,024
|
|
1,009
|
1,304
|
|
Net interest paidnote
(2)
|
(40)
|
|
(117)
|
(204)
|
|
Corporate expenditurenote
(3)
|
(155)
|
|
(124)
|
(232)
|
|
Centrally funded recurring bancassurance fees
|
(160)
|
|
(220)
|
(220)
|
|
Total central outflows
|
(355)
|
|
(461)
|
(656)
|
|
Holding company cash flow before dividends and other
movements
|
669
|
|
548
|
648
|
|
Dividends paid
|
(361)
|
|
(320)
|
(474)
|
|
Operating holding company cash flow after dividends but before
other movements
|
308
|
|
228
|
174
|
|
Other movements
|
|
|
|
|
|
|
Issuance and redemption of debt
|
(371)
|
|
(1,729)
|
(1,729)
|
|
Other corporate activitiesnote
(4)
|
282
|
|
159
|
248
|
Total other movements
|
(89)
|
|
(1,570)
|
(1,481)
|
|
Net movement in holding company cash flow
|
219
|
|
(1,342)
|
(1,307)
|
|
Cash and short-term investments at beginning of
periodnote
(5)
|
3,057
|
|
3,572
|
3,572
|
|
Foreign exchange movements
|
38
|
|
(87)
|
(113)
|
|
Inclusion of amounts at 31 Dec from additional centrally managed
entitiesnote
(6)
|
-
|
|
-
|
905
|
|
Cash and short-term investments at end of period
|
3,314
|
|
2,143
|
3,057
|
(1)
|
Net cash remitted by business units comprise dividends and other
transfers, net of capital injections, that are reflective of
earnings and capital generation.
|
(2)
|
Following the update to the definition of holding company cash and
short term investments at 31 December 2022, higher levels of
interest and investment income were earned in the first half of
2023, largely on the balances brought into the updated definition.
This together with lower interest payments this led to a reduction
in net interest paid in the first half of 2023 as compared with the
prior period.
|
(3)
|
Including IFRS 17 implementation and restructuring costs paid in
the period.
|
(4)
|
Cash inflows from Other corporate activities were $282 million
(half year 2022: $159 million and full year 2022: $248 million) and
largely related to proceeds received from the sales of shares
in Jackson together with dividends from Jackson.
|
(5)
|
Proceeds from the Group's commercial paper programme are not
included in the holding company cash and short-term investments
balance.
|
(6)
|
The definition of holding company cash and short-term investments
was updated, with effect from 31 December 2022, following the
combination of the Group's London office and Asia regional office
into a single Group Head Office in 2022. This updated definition
includes all cash and short-term investments held by central
holding and service companies, including amounts previously managed
on a regional basis. These balances are now being centrally managed
by the Group's Treasury function. This refinement increased holding
company cash and short-term investment balances by $0.9 billion at
31 December 2022.
|
|
|
30 Jun 2023 $m
|
31 Dec 2022 $m
|
Cash and cash equivalents of Central operations held on balance
sheetnote
C1
|
2,752
|
1,809
|
|
Less: amounts from commercial paper
|
(529)
|
(501)
|
|
Add: Deposits with credit institutions of Central operations held
on balance sheet
|
1,091
|
1,749
|
|
Cash and short-term investments
|
3,314
|
3,057
|
AER
|
Single premiums
|
Regular premiums
|
APE
|
PVNBP
|
|||||||||
|
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
|
CPL (Prudential's 50% share)
|
397
|
858
|
(54)%
|
355
|
421
|
(16)%
|
394
|
507
|
(22)%
|
1,481
|
2,119
|
(30)%
|
|
Hong Kong
|
116
|
656
|
(82)%
|
1,015
|
162
|
527%
|
1,027
|
227
|
352%
|
5,364
|
1,774
|
202%
|
|
Indonesia
|
132
|
120
|
10%
|
137
|
98
|
40%
|
150
|
110
|
36%
|
629
|
442
|
42%
|
|
Malaysia
|
46
|
45
|
2%
|
180
|
168
|
7%
|
185
|
172
|
8%
|
915
|
845
|
8%
|
|
Singapore
|
535
|
1,715
|
(69)%
|
332
|
219
|
52%
|
386
|
390
|
(1)%
|
2,441
|
3,184
|
(23)%
|
|
Growth markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
4
|
4
|
-
|
84
|
75
|
12%
|
85
|
76
|
12%
|
170
|
151
|
13%
|
|
Cambodia
|
1
|
-
|
-
|
9
|
7
|
29%
|
9
|
7
|
29%
|
38
|
30
|
27%
|
|
India (Prudential's 22% share)
|
130
|
135
|
(4)%
|
115
|
106
|
8%
|
128
|
120
|
7%
|
619
|
609
|
2%
|
|
Laos
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
-
|
|
Myanmar
|
-
|
-
|
-
|
3
|
1
|
200%
|
3
|
1
|
200%
|
8
|
4
|
100%
|
|
Philippines
|
38
|
36
|
6%
|
90
|
84
|
7%
|
94
|
87
|
8%
|
331
|
297
|
11%
|
|
Taiwan
|
54
|
86
|
(37)%
|
335
|
271
|
24%
|
339
|
281
|
21%
|
1,254
|
994
|
26%
|
|
Thailand
|
71
|
72
|
(1)%
|
111
|
92
|
21%
|
118
|
99
|
19%
|
470
|
394
|
19%
|
|
Vietnam
|
8
|
66
|
(88)%
|
108
|
130
|
(17)%
|
109
|
136
|
(20)%
|
709
|
885
|
(20)%
|
Total insurance operations
|
1,532
|
3,793
|
(60)%
|
2,874
|
1,834
|
57%
|
3,027
|
2,213
|
37%
|
14,430
|
11,728
|
23%
|
CER
|
Single premiums
|
Regular premiums
|
APE
|
PVNBP
|
|||||||||
|
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
2023
Half
year
|
2022
Half
year
|
+/(-)
|
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
|
CPL (Prudential's 50% share)
|
397
|
802
|
(50)%
|
355
|
394
|
(10)%
|
394
|
474
|
(17)%
|
1,481
|
1,982
|
(25)%
|
|
Hong Kong
|
116
|
655
|
(82)%
|
1,015
|
161
|
530%
|
1,027
|
227
|
352%
|
5,364
|
1,771
|
203%
|
|
Indonesia
|
132
|
115
|
15%
|
137
|
95
|
44%
|
150
|
106
|
42%
|
629
|
424
|
48%
|
|
Malaysia
|
46
|
43
|
7%
|
180
|
161
|
12%
|
185
|
165
|
12%
|
915
|
809
|
13%
|
|
Singapore
|
535
|
1,752
|
(69)%
|
332
|
223
|
49%
|
386
|
398
|
(3)%
|
2,441
|
3,253
|
(25)%
|
|
Growth markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
4
|
3
|
33%
|
84
|
65
|
29%
|
85
|
65
|
31%
|
170
|
131
|
30%
|
|
Cambodia
|
1
|
-
|
-
|
9
|
7
|
29%
|
9
|
7
|
29%
|
38
|
30
|
27%
|
|
India (Prudential's 22% share)
|
130
|
126
|
3%
|
115
|
98
|
17%
|
128
|
111
|
15%
|
619
|
564
|
10%
|
|
Laos
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
-
|
|
Myanmar
|
-
|
-
|
-
|
3
|
1
|
200%
|
3
|
1
|
200%
|
8
|
3
|
167%
|
|
Philippines
|
38
|
34
|
12%
|
90
|
79
|
14%
|
94
|
83
|
13%
|
331
|
281
|
18%
|
|
Taiwan
|
54
|
82
|
(34)%
|
335
|
256
|
31%
|
339
|
264
|
28%
|
1,254
|
935
|
34%
|
|
Thailand
|
71
|
71
|
-
|
111
|
91
|
22%
|
118
|
98
|
20%
|
470
|
389
|
21%
|
|
Vietnam
|
8
|
64
|
(88)%
|
108
|
126
|
(14)%
|
109
|
133
|
(18)%
|
709
|
863
|
(18)%
|
Total insurance operations
|
1,532
|
3,747
|
(59)%
|
2,874
|
1,757
|
64%
|
3,027
|
2,132
|
42%
|
14,430
|
11,435
|
26%
|
APE
|
2022 $m AER
|
2022 $m CER
|
2023 $m AER
|
|||
|
H1
|
H2
|
H1
|
H2
|
H1
|
|
CPL (Prudential's 50% share)
|
507
|
377
|
474
|
385
|
394
|
|
Hong Kong
|
227
|
295
|
227
|
295
|
1,027
|
|
Indonesia
|
110
|
137
|
106
|
137
|
150
|
|
Malaysia
|
172
|
187
|
165
|
190
|
185
|
|
Singapore
|
390
|
380
|
398
|
397
|
386
|
|
Growth markets:
|
|
|
|
|
|
|
|
Africa
|
76
|
73
|
65
|
71
|
85
|
|
Cambodia
|
7
|
11
|
7
|
11
|
9
|
|
India (Prudential's 22% share)
|
120
|
103
|
111
|
102
|
128
|
|
Laos
|
-
|
-
|
-
|
-
|
-
|
|
Myanmar
|
1
|
2
|
1
|
2
|
3
|
|
Philippines
|
87
|
95
|
83
|
97
|
94
|
|
Taiwan
|
281
|
222
|
264
|
225
|
339
|
|
Thailand
|
99
|
136
|
98
|
143
|
118
|
|
Vietnam
|
136
|
162
|
133
|
164
|
109
|
Total insurance operations
|
2,213
|
2,180
|
2,132
|
2,219
|
3,027
|
PVNBP
|
2022 $m AER
|
2022 $m CER
|
2023 $m AER
|
|||
|
H1
|
H2
|
H1
|
H2
|
H1
|
|
CPL (Prudential's 50% share)
|
2,119
|
1,402
|
1,982
|
1,439
|
1,481
|
|
Hong Kong
|
1,774
|
1,521
|
1,771
|
1,507
|
5,364
|
|
Indonesia
|
442
|
598
|
424
|
603
|
629
|
|
Malaysia
|
845
|
1,034
|
809
|
1,045
|
915
|
|
Singapore
|
3,184
|
2,907
|
3,253
|
3,033
|
2,441
|
|
Growth markets:
|
|
|
|
|
|
|
|
Africa
|
151
|
157
|
131
|
150
|
170
|
|
Cambodia
|
30
|
39
|
30
|
39
|
38
|
|
India (Prudential's 22% share)
|
609
|
539
|
564
|
533
|
619
|
|
Laos
|
-
|
1
|
-
|
1
|
1
|
|
Myanmar
|
4
|
2
|
3
|
3
|
8
|
|
Philippines
|
297
|
318
|
281
|
326
|
331
|
|
Taiwan
|
994
|
841
|
935
|
855
|
1,254
|
|
Thailand
|
394
|
538
|
389
|
567
|
470
|
|
Vietnam
|
885
|
781
|
863
|
795
|
709
|
Total insurance operations
|
11,728
|
10,678
|
11,435
|
10,896
|
14,430
|
|
2022 AER
|
2022 CER
|
2023 AER
|
||
|
HY
|
FY
|
HY
|
FY
|
HY
|
New business profit ($m)
|
|
|
|
|
|
CPL (Prudential's 50% share)
|
217
|
387
|
203
|
376
|
171
|
Hong Kong
|
211
|
384
|
211
|
384
|
670
|
Indonesia
|
52
|
125
|
50
|
124
|
61
|
Malaysia
|
70
|
159
|
66
|
157
|
73
|
Singapore
|
244
|
499
|
249
|
515
|
198
|
Growth markets and other
|
304
|
630
|
290
|
619
|
316
|
Total insurance business
|
1,098
|
2,184
|
1,069
|
2,175
|
1,489
|
|
|
|
|
|
|
New business margin (NBP as a % of APE)
|
|
|
|
|
|
CPL
|
43%
|
44%
|
43%
|
44%
|
43%
|
Hong Kong
|
93%
|
74%
|
93%
|
74%
|
65%
|
Indonesia
|
47%
|
51%
|
47%
|
51%
|
41%
|
Malaysia
|
41%
|
44%
|
40%
|
44%
|
39%
|
Singapore
|
63%
|
65%
|
63%
|
65%
|
51%
|
Growth markets and other
|
38%
|
39%
|
38%
|
39%
|
36%
|
Total insurance business
|
50%
|
50%
|
50%
|
50%
|
49%
|
|
|
|
|
|
|
New business margin (NBP as a % of PVNBP)
|
|
|
|
|
|
CPL
|
10%
|
11%
|
10%
|
11%
|
12%
|
Hong Kong
|
12%
|
12%
|
12%
|
12%
|
12%
|
Indonesia
|
12%
|
12%
|
12%
|
12%
|
10%
|
Malaysia
|
8%
|
8%
|
8%
|
8%
|
8%
|
Singapore
|
8%
|
8%
|
8%
|
8%
|
8%
|
Growth markets and other
|
9%
|
10%
|
9%
|
10%
|
9%
|
Total insurance business
|
9%
|
10%
|
9%
|
10%
|
10%
|
|
|
2022 $m
|
|
|
2023 $m
|
|
|
Eastspring:
|
|
H1
|
H2
|
|
|
H1
|
|
Third-party retail:note
|
|
|
|
|
|
|
|
Opening FUM
|
|
68,516
|
58,407
|
|
|
60,143
|
|
Net flows:
|
|
|
|
|
|
|
|
- Gross Inflows
|
|
11,050
|
8,504
|
|
|
10,776
|
|
- Redemptions
|
|
(12,808)
|
(8,520)
|
|
|
(8,736)
|
|
|
|
(1,758)
|
(16)
|
|
|
2,040
|
|
Other movements
|
|
(8,351)
|
1,752
|
|
|
3,060
|
|
Closing FUM
|
|
58,407
|
60,143
|
|
|
65,243
|
|
|
|
|
|
|
|
|
|
Third-party institutional:
|
|
|
|
|
|
|
|
Opening FUM
|
|
13,192
|
10,988
|
|
|
11,311
|
|
Net flows:
|
|
|
|
|
|
|
|
- Gross Inflows
|
|
561
|
763
|
|
|
392
|
|
- Redemptions
|
|
(589)
|
(547)
|
|
|
(575)
|
|
|
|
(28)
|
216
|
|
|
(183)
|
|
Other movements
|
|
(2,176)
|
107
|
|
|
550
|
|
Closing FUM
|
|
10,988
|
11,311
|
|
|
11,678
|
|
|
|
|
|
|
|
|
|
Total third-party closing FUM (excluding MMF and funds held on
behalf of M&G plc)
|
|
69,395
|
71,454
|
|
|
76,921
|
|
|
30 Jun 2023 $m
|
31 Dec 2022 $m
|
IFRS shareholders' equity as reported in the financial
statements
|
17,159
|
16,731
|
Add: CSM, including joint ventures and associates and net of
reinsurance*
|
20,820
|
19,989
|
Remove: CSM asset attaching to reinsurance contracts wholly
attributable to policyholders*
|
1,305
|
1,295
|
Less: Related deferred tax adjustments for the above*
|
(2,839)
|
(2,804)
|
Adjusted shareholders' equity
|
36,445
|
35,211
|
|
Half year 2023 $m
|
Full year 2022 $m
|
Adjusted operating profit
|
1,462
|
2,722
|
Tax on adjusted operating profit
|
(221)
|
(539)
|
Adjusted operating profit attributable to non-controlling
interests
|
(3)
|
(11)
|
Adjusted operating profit, net of tax and non-controlling
interests
|
1,238
|
2,172
|
|
|
|
IFRS shareholders' equity at beginning of period
|
16,731
|
18,936
|
IFRS shareholders' equity at end of period
|
17,159
|
16,731
|
Average IFRS shareholders' equity
|
16,945
|
17,834
|
Operating return on average IFRS shareholders' equity
(%)
|
15%
|
12%
|
|
30 Jun 2023
|
31 Dec 2022
|
Number of issued shares at the end of the period (million
shares)
|
2,753
|
2,750
|
Closing IFRS shareholders' equity ($ million)
|
17,159
|
16,731
|
Group IFRS shareholders' equity per share (cents)
|
623¢
|
608¢
|
|
|
|
Closing adjusted shareholders' equity ($ million)
|
36,445
|
35,211
|
Group adjusted shareholders' equity per share (cents)
|
1,324¢
|
1,280¢
|
|
2023 $m
|
|
2022 $m
|
|
|
Half year
|
|
Half year
|
Full year
|
IFRS revenue
|
257
|
|
271
|
513
|
Share of revenue from joint ventures and associates
|
158
|
|
149
|
303
|
Commissions and other
|
(62)
|
|
(84)
|
(155)
|
Performance-related fees
|
(2)
|
|
(4)
|
(1)
|
Operating income before performance-related feesnote
|
351
|
|
332
|
660
|
|
|
|
|
|
IFRS charges
|
185
|
|
205
|
398
|
Share of expenses from joint ventures and associates
|
62
|
|
63
|
117
|
Commissions and other
|
(62)
|
|
(84)
|
(155)
|
Operating expense
|
185
|
|
184
|
360
|
Cost/income ratio (operating expense/operating income before
performance-related fees)
|
53%
|
|
55%
|
55%
|
|
2023 $m
|
|
2022 $m
|
|
|
Half year
|
|
Half year
|
Full year
|
|
|
|
|
|
Gross premiums earned
|
10,961
|
|
12,241
|
23,344
|
Gross premiums earned from joint ventures and
associates
|
2,090
|
|
2,368
|
4,439
|
Total Group, including joint ventures and associates
|
13,051
|
|
14,609
|
27,783
|
|
|
|
|
|
Renewal insurance premiums
|
8,922
|
|
9,288
|
18,675
|
Annual premium equivalent (APE)
|
3,027
|
|
2,213
|
4,393
|
Life weighted premium income
|
11,949
|
|
11,501
|
23,068
|
|
2023 $m
|
|
2022 $m
|
|
|
Half year
|
|
Half year
|
Full year
|
EEV new business profit
|
1,489
|
|
1,098
|
2,184
|
Economics and othernote
(1)
|
(411)
|
|
(181)
|
(424)
|
New rider salesnote
(2)
|
(42)
|
|
(51)
|
(66)
|
Related tax on IFRS new business CSMnote
(3)
|
160
|
|
191
|
370
|
IFRS new business CSM
|
1,196
|
|
1,057
|
2,064
|
(1)
|
EEV is calculated using 'real-world' economic assumptions that are
based on the expected returns on the actual assets held with an
allowance for risk in the risk discount rate. Under IFRS 17, 'risk
neutral' economic assumptions are applied with assets assumed to
earn and the cash flows discounted at risk free plus liquidity
premium (where applicable). Both measures update these assumptions
each period end based on current interest rates.
|
(2)
|
Under EEV, new business profit arising from additional or new
riders attaching to existing contracts, product upgrades and
top-ups are reported as current period new business profit. Under
IFRS 17 reporting, new business profit from such rider sales and
upgrades are required to be treated as experience variances of the
existing contracts.
|
(3)
|
IFRS 17 new business CSM is gross of tax, while EEV new business
profit is net of tax. Accordingly, the related tax that on the IFRS
17 new business CSM is added back. All of the other reconciling
items in the table have been presented net of related
taxes.
|
|
|
30 Jun 2023 $m
|
31 Dec 2022 $m
|
EEV shareholders' equity
|
43,704
|
42,184
|
|
Adjustments for non-market risk allowance:
|
|
|
|
|
Remove: Allowance for non-market risks in EEVnote
(1)
|
2,972
|
2,760
|
|
Add: IFRS risk adjustment, net of related deferred tax
adjustmentsnote
(2)
|
(1,951)
|
(1,803)
|
Mark-to-market value adjustment of the Group's core structural
borrowingsnote
(3)
|
(389)
|
(427)
|
|
Economics and other valuation differencesnote
(4)
|
(7,891)
|
(7,503)
|
|
Adjusted IFRS shareholders' equity (see note II(ii))
|
36,445
|
35,211
|
|
Remove: CSM, including joint ventures and associates and net of
reinsurance
|
(20,820)
|
(19,989)
|
|
Add: CSM asset attaching to reinsurance contracts wholly
attributable to policyholders
|
(1,305)
|
(1,295)
|
|
Add: Related deferred tax adjustments for the above
|
2,839
|
2,804
|
|
IFRS shareholders' equity
|
17,159
|
16,731
|
(1)
|
The allowance for non-diversifiable non-market risk in EEV
comprises a base Group-wide allowance of 50 basis points plus
additional allowances for emerging market risk where
appropriate.
|
(2)
|
Includes the Group's share of joint ventures and associates and net
of reinsurance.
|
(3)
|
The Group's core structural borrowings are fair valued under EEV
but are held at amortised cost under IFRS.
|
(4)
|
EEV is calculated using 'real-world' economic assumptions that are
based on the expected returns on the actual assets held with an
allowance for risk in the risk discount rate. Under IFRS 17, 'risk
neutral' economic assumptions are applied with the cash flows
discounted using risk free plus liquidity premium (where
applicable). Other valuation differences include contract
boundaries and non-attributable expenses which are
small.
|
|
2023 $m
|
|
2022 $m
|
|
|
Half year
|
|
Half year
|
Full year
|
EEV operating profit for the period
|
2,155
|
|
1,806
|
3,952
|
Operating profit attributable to non-controlling
interests
|
(11)
|
|
(10)
|
(29)
|
EEV operating profit, net of non-controlling interests
|
2,144
|
|
1,796
|
3,923
|
|
|
|
|
|
Shareholders' equity at beginning of period
|
42,184
|
|
47,5841
|
47,5841
|
Shareholders' equity at end of period
|
43,704
|
|
42,300
|
42,184
|
Average shareholders' equity
|
42,944
|
|
44,942
|
44,884
|
Operating return on average shareholders' equity (%)
|
10%
|
|
8%
|
9%
|
|
2023
|
|
2022
|
|
|
Half year
|
|
Half year
|
Full year
|
New business profit ($ million)*
|
1,489
|
|
1,098
|
2,184
|
Average EEV shareholders' equity for insurance business operations,
excluding goodwill attributable to equity holders ($
million)
|
39,518
|
|
41,920
|
41,866
|
New business profit on embedded value (%)
|
8%
|
|
5%
|
5%
|
|
2023 $m
|
|
2022 $m
|
|
|
Half year
|
|
Half year
|
Full year
|
Shareholders' equity at beginning of period
|
38,857
|
|
44,8751
|
44,8751
|
Shareholders' equity at end of period
|
40,179
|
|
38,965
|
38,857
|
Average shareholders' equity
|
39,518
|
|
41,920
|
41,866
|
|
PRUDENTIAL
PUBLIC LIMITED COMPANY
|
|
|
|
By:
/s/ Ben Bulmer
|
|
|
|
Ben
Bulmer
|
|
Group
Chief Financial Officer
|