PRUDENTIAL PLCJONATHAN BLOOMER

GROUP CHIEF EXECUTIVE

MERRILL LYNCH CONFERENCE

10 OCTOBER 2002

Strength & Opportunity Through Diversity

AN INDUSTRY WITH COMPELLING DEMOGRAPHICS

•Increased longevity: male life expectancy 66 years in 1950, 75 year in 2000

• Ageing populations: median age 38 years in 2000, rising to 45 years in 2030

• Large baby boomer generations: percentage of elderly in United States will increase to 20% by 2010

•Increased affluence

Western Markets

Source: “An Ageing World”, US Census Bureau, November 2001

Funding for retirement is a growing issue

AN INDUSTRY WITH COMPELLING DEMOGRAPHICS

Population (m)

China 1,266India 1,007Indonesia 210Japan 127Vietnam 78Philippines 81Thailand 63S Korea 47Malaysia 23Taiwan 22Hong Kong 7Singapore ___4Total 2,935

• High savings rates

• Increasing urbanisation

• Improving education standards

• Rapidly-growing middle classes

• Young populations: median age 27 years in 2000, rising to 37 years in 2030

Emerging Markets

Source: “An Ageing World”, US Census Bureau, November 2001

Funding for retirement is a growing issue

PRUDENTIAL PLC GROUP OVERVIEW

Focus on medium and long term savings

A leading international retail financial services player:

- UK/Europe

- US

- Asia

Scale and resources for future growth

Balancing short-term and long-term strategies to deliver value to our shareholders

CLEAR BENEFIT FROM STRONG POSITIONS IN INTERNATIONAL MARKETS

2002 H1

1999 H1

44.4%

32.1%

23.4%£927m

36.5%

29.5%

34.0%

£397m

£778m £275m

63.8%

27.9%

8.3%

52.7%34.9%

12.4%

APE sales by region NBAP by region

UK & Europe US Asia

FUNDAMENTALS

Financially sound, with AAA ratings from S&P and Moody’s

Inevitable beneficiary of the “flight to quality”

Outstanding international portfolio of businesses

Long-term industry demographics are compelling

Underlying performance of the business remains strong

DESPITE DIFFICULT EQUITY MARKET CONDITIONS

BUSINESS MODEL

Scale presence

Product expansion

Multi-channel distribution

Low cost base/scale economics

Balance of growth and return on capital

IN EVERY MARKET WHERE WE OPERATE

GROUP STRUCTURE

UK & Europe USA Asia

UK OPERATIONS

UK & Europe USA Asia

Medium and long term savings

Focus on pensions, annuities, with-profit bonds

7 million customers

Excellence in fund management

Fixed income; retail mutual funds

550,000 retail customers

World’s largest digital bank

2.3 million customers

UK MARKET: INDUSTRY DYNAMICS

£27BN ANNUAL SAVINGS SHORTFALL

Focus on high-growth medium to long term savings

Leading positions in key profitable product areas

Continuing to diversify distribution channels

Reinvesting in the UK’s leading life insurance brand

Transformation of cost base

UK LIFE INSURANCE OPERATIONS: STRATEGY

Form 9 ratio of 11%* at 30 June 2002

No use of- future profits- subordinated debt- contingent loans- financial reinsurance

Resilience scenario- fall in equity values 17%- fall in property values of 20%- rise in bond values of 8%

ONE OF THE STRONGEST LIFE FUNDS IN THE UK

* incorporating FSA resilience rules of 28.6.02.

36.0%

14.8%15.6%

2.0%

29.4%

2.2%

UK equities International equitiesProperty Other assets

Fixed interest Cash

Asset mix at 30th June 2002

Total annual savings of £200m from 2004

One-off cost of c£170m

£65m positive impact on new business achieved profit by 2004

(100)

(50)

0

150

200

2001 2003 2004

Tran

sition

C

osts

50

100

2002

*Measured in 2001 £

£m*

(40)

85

(40) (40)

145

200175

(90)

An

nu

al S

avin

gs

10m

100

165

(90)

(40)

LOW COST BASE ESSENTIAL TO COMPETE PROFITABLY

November 2001 target

Revised June 2002 target

Source: The Research Department - group weighted performance over rolling periods (M&G unit trusts)

ABOVE AVERAGE PERFORMANCE IN DIFFICULT CONDITIONS

M&G's position out of top 40 fund managers

M&G: SUSTAINING GOOD FUND MANAGEMENT PERFORMANCE

Life fund out-performance is key competitive advantage

Solid 2 year records established and maintained

Building on this base to improve key 3 year positions

Strong individual performers within the fund range

0

5

10

15

20

25

30

35

40Dec-99

Mar-00

Jun-00

Sep-00

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Rolling 2 years Rolling 3 years

EGG: SUSTAINABLE PROFITABILITY

Total customers up to 2.31 million

Acquisition costs fallingRevenue per customer continues to grow - up

10% in the half year

customer growth

0

500

1,000

1,500

2,000

2,500

Jan Mar May Jul Sep Nov

eg

g u

niq

ue

cu

sto

me

rs (

00

0's

)

1998 1999 2000 2001 20020

20

40

60

80

100

120

140

160

2000 2001 2002qu

arte

rly a

nnua

lised

reve

nue

per c

usto

mer

(£)

customer profitability

US OPERATIONS

UK & Europe USA Asia

70% of the world’s retirement assets

Demographics remain very attractive- 102% increase in elderly population from 2000 to 2030- life expectancy is increasing- workers are retiring younger

Traditional retirement funding is disappearing- future retirees unlikely to receive Social Security- retirement plans moving from Defined Benefit to Defined Contribution

US MARKET DYNAMICS

Sources: “An Aging World”, US Census Bureau, November 2001; The White House

Leading player in annuities market

Successfully diversified product lines to suit different economic environments

Access to strong and growing distribution channels

Competitive advantage through low cost structure

Growth organically and by selected acquisitions

JACKSON NATIONAL LIFE: STRATEGY

SCALE PLAYER IN CHOSEN SEGMENTS

STRONG SALES IN A DIFFICULT ENVIRONMENT

$0

$50

$100

$150

$200

Jan

Feb

Mar Apr

May Jun Jul

Aug Sep Oct

Nov

Dec

Sale

s ($

mill

ions

)

2001 2002

VARIABLE ANNUITIESSuccessful launch of Perspective II

$0

$100

$200

$300

$400

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep Oct

Nov

Dec

Sale

s ($

mill

ions

)

2001 2002

FIXED ANNUITIESContinued strong growth

ASIAN OPERATIONS

UK & Europe USA Asia

Regional economies showing signs of recovery

- structurally stronger than 97/98 crisis

Compelling demographics remain

- vast populations with emerging middle classes

- low levels of state-sponsored benefits

- increasing urbanisation

TREMENDOUS LONG-TERM POTENTIAL IN ASIA

Life Penetration

1. Source: Swiss Re; 2. Source: CIA

S KoreaJapan

Taiwan

Hong Kong

ChinaIndia

Philippines IndonesiaThailand

Vietnam

MalaysiaSingapore

0%

2%

4%

6%

8%

10%

12%

1,000 10,000 100,000

Penetration, 19991

Per Capita GDP2, US$ (log scale)

= $1bn in new business premiums

The opportunity:

- existing levels of wealth

- strong long-term economic growth projections

- high personal savings rates

- affinity for deposits now changing

UNIQUE OPPORTUNITY FOR MEDIUM AND LONG TERM SAVINGS

Percent of holdings by asset class

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

HK Mal Sing Indi Jap Taiw Kor Thai Chin Phil Indo US

Average Income per household (US$k)

Mutual Funds

Equities

Fixed Income Securities

Pensions

Life Insurance

Cash/Deposits

Other/Misc

44 8 22 5 63 35 26 3 3 4 1 50

Source: Central Banks, World Bank, SEC Division of Investment Management

ASIAN OPERATIONS

AIG

Manulife Allianz

NY Life ING

Cathay Life

Aegon Aviva Mass Mutual US Prudential RSA Sun Life

Zurich Axa

4-5

2-3

0-1

1-2 3-6 7-8

Number of market presences/licences

9+

Number of markets with top 5 position

6-8Prudential

Source: PCA analysis

LEADING REGIONAL LIFE INSURANCE PLAYER

Great Eastern

Established markets continuing strong growth

Increasing scale in vast markets of North Asia and Greater China

Rapidly building greenfield operations

Building on bancassurance success and continuing to diversify distribution

Increasing scale and profitability of mutual fund operations

Managing life portfolio for sustained profitability

STRONG TRACK RECORD OF DELIVERING VALUE

Total net capital 1994 to

1H02: £723m

£100-150m per annum

expected going forward

More mature businesses

increasingly repatriating

capital

(1) 22 7 11

158

76

144

274

NET CAPITAL FLOWS

32

ASIA: MODEST CAPITAL REQUIREMENT

36% increase in total sales of £13.7bn

- 2% increase in APE insurance sales to £926m

- 50% increase in net sales of investment products to £826m

16% increase in new business achieved profits to £397m

Group margin increased to 43%, from 38% at 2001 year-end

Dividend increased 2.3% to 8.9p

Strong free asset ratio of 11%

2002 INTERIM RESULTS HIGHLIGHTS

Internationally-diversified retail financial services group

AAA financial strength

Resources to deliver continued growth in sales and profits

Focus on profitability and return on capital

Good start towards doubling the value of the group

DRIVING THE BUSINESS FORWARD

QUESTIONS