TIDMPRU
RNS Number : 8369M
Prudential PLC
14 May 2020
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 sales(1) outside Hong Kong and China up 1 per
cent(2) and total Asia APE sales(1) down 24 per cent, reflecting
the effects of Covid-19 on China and Hong Kong. In-force business
resilient with adjusted
operating profit(3) in Asia 14 per cent higher(2) .
-- New services delivered for customers with the 'Pulse by
Prudential' digital health app downloaded on 4 million devices,
more than trebling since early March(4) .
-- In Asia, products equivalent to around two-thirds of APE(1)
now capable of being sold virtually(5) .
-- 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
billion(6,7) and shareholder cover ratio of 302 per cent(6,7) .
-- 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 sales(1) (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 March(4) . 1.2 million policies have been issued through
our digital ecosystem, the majority of which were to new
customers(8) . 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 cent(9) , in line with the same period
last year. In turn, in-force earnings have been resilient, with
Asia adjusted operating profit(3) up 14 per cent(2) .
"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
sales(1) outside Hong Kong and China of 1 per cent(2) 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 sales(1) in Hong Kong and China, where
restrictions were implemented earlier and travel from mainland
China to Hong Kong was substantially curtailed, were 50 per cent(2)
and 19 per cent(2) lower respectively, with more recent sales data
suggesting that the sales environment is beginning to normalise in
China. Overall APE sales(1) 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 sales(1) grew 43 per cent(2) to $30 million.
"In the US, APE sales(1) 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
sales(1) 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 ratio(7) at 31
March 2020 was 302 per cent(6) , 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
results(1) . 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 customers(2) .
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 profit(3) increasing 14 per cent(4) 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 growth(3,4)
, of which eight increased at double digits(4) . 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 cent(4) increase in APE sales(5) 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 sales(5) , led by the
double-digit(4) expansion in Indonesia, Thailand and Singapore.
Protection APE sales(5) outside China and Hong Kong increased by
double digits(4) , led by growth in the agency channel. Overall
Asia APE sales(5) declined by 24 per cent(4) , 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 sales(5) growing by double digits(4)
in the period while our agency channel increased the proportion of
virtual sales to 75 per cent(6) , 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 sales(5) almost three times
February's level and April seeing APE sales(5) 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 sales(5) . As expected, APE sales(5) to the
mainland China customer segment in Hong Kong declined in line with
the very substantial drop in visitor arrivals.
New business profit(7) achieved 23 per cent(4) growth outside
China and Hong Kong, with five markets increasing by double
digits(4) supported, among other items, by strong protection sales.
Overall Asia new business profit(7) decreased by 33 per cent(4) as
a result of reduced APE sales(5) , 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 sales(5) (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
cent(8) 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 sales(5) (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 sales(5) 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 sales(5) of these products down 36 per cent. Variable
annuity (VA) APE sales(5) 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 profit(3) 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 basis(9) , 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 assets(9) , 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 portfolio(9)
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 cent(9) 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 ratio(10,11)
).
Group capital
The Group's estimated LCSM shareholder cover ratio(10) at 31
March 2020 was 302 per cent(11,12) (31 December 2019: 309 per
cent), with surplus of available capital over required capital of
$11.1 billion(10,11) (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 billion(11) (31 December 2019: $23.6 billion),
corresponding to a cover ratio(10) at 31 March 2020 of 309 per
cent(11) (31 December 2019: 348 per cent).
The estimated shareholder surplus(10,11) 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 generation(10,11) 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)
31 Mar 2020 ($bn) Group total
-------------------------------------------------------------- ------------
Available capital 17. 3
Group Minimum Capital Requirement (GMCR) 5. 5
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
-------------------------------------------------------------- ------------
31 Dec 2019 ($bn) Group total
-------------------------------------------------------------- ------------
Available capital 14.0
Group Minimum Capital Requirement (GMCR) 4.5
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.
This information is provided by RNS, the news service of the
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END
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