Financial highlights

Life APE new business sales 2010 – 3,485 (1,501 Asia, 1,164 US, 820 UK), up 23% on 2009 – 2,844 (1,209 Asia, 912 US, 723 UK)
New business profit 2010 – 2,028 (902 Asia, 761 US, 365 UK), up 25% on 2009 – 1,619 (725 Asia, 664 US, 230 UK)
Free surplus investment in new business 2010 – (643) ((278) Asia, (300) US, (65) UK), up 3% on 2009 – (660) ((231) Asia, (326) US, (103) UK)
  • Colour for Asia data in charts Asia1
  • Colour for US data in charts US
  • Colour for UK data in charts UK
  Asia1 US UK Group
  2010 2009 2010 2009 2010 2009 2010 2009
New business profit margin 60% 60% 65% 73% 45% 32% 58% 57%
Payback period2 3 years 3 years 1 year 2 years 4 years 5 years 2 years 3 years
Internal rate of return >20% >20% >20% >20% >20% >15% >20% >20%
IFRS operating profit: 2010: 378 (284 from M&G), up 27% on 2009: 297 (238 from M&G)
External funds under management: 2010: 111,374 (89,326 from M&G), up 24% on 2009: 89,780 (70,306 from M&G)
Total asset management Net inflows: 2010: 8,890, down 42% on 2009: 15,417
M&G net inflows: 2010: 9,105, down 32% on 2009: 13,478
  • Colour for M&G data in charts M&G
  • Colour for Other asset management business data in charts Other asset management business
  • Colour for Total asset management data in charts Total asset management
IFRS operating profit: 2010: £1,941m, up 24% on 2009: £1,564m
EEV operating profit: 2010: £3,696m, up 20% on 2009: £3,090m
EEV operating profit: 2010: £3,696m, up 20% on 2009: £3,090m
  • Colour for IFRS data in charts IFRS
  • Colour for EEV data in charts EEV
Underlying free surplus generated: 2010: £1,714m, up 21% on 2009: £1,414m
IGD Capital before final dividend: 2010 £4.3bn, up 26% on 2009: £3.4bn
Dividend per share relating to the reporting year: 2010: 23.85p, up 20% on 2009: 19.85p
EEV shareholders’ funds per share: Including goodwill 2010: 715p, up 19% on 2009: 603p; Excluding goodwill 2010: 658p, up 19% on 2009: 551p
  • Colour for Excluding goodwill data in charts Excluding goodwill
  • Colour for Including goodwill data in charts Including goodwill

Notes

  1. Asia new business amounts exclude Japan, which ceased writing new business in 2010.
  2. Payback: Expected period over which future undiscounted free surplus generation from shareholder-backed business recoups initial new business investment.
  3. Net liability flows defined as movements in shareholder-backed policyholder liabilities arising from premiums, surrenders, maturities and deaths.
  4. The Company has amended the presentation of IFRS operating profit for its US insurance operations to remove the net equity hedge accounting effect (incorporating related amortisation of deferred acquisition costs) and include it in the supplementary analysis of profit in short-term fluctuations in investment returns. 2009 amounts have been amended accordingly.
  5. 2010 excludes an exceptional tax credit of £158 million which primarily relates to the impact of a settlement agreed with the UK tax authorities.
  6. Underlying free surplus comprises underlying free surplus generated from in-force business less investment in new business.
  7. For 2010, IGD amounts are estimated.
  8. Operating profit after tax and non-controlling interests (but excluding in 2010 exceptional tax credit of £158 million) as percentage of opening shareholders’ funds.
 

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