Additional unaudited financial information

The following table sets forth Prudential’s selected consolidated financial data for the periods indicated. Certain data is derived from Prudential’s audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) and as adopted by the European Union (‘EU’) and European Embedded Value (EEV).

This table is only a summary and should be read in conjunction with Prudential’s consolidated financial statements and the related notes included elsewhere in this document.

Income statement data

 

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  Year Ended 31 December
  2010 £m 2009 £m 2008 £m 2007 £m 2006 £m
IFRS basis results          
Gross premium earned 24,568 20,299 18,993 18,359 16,157
Outward reinsurance premiums (357) (323) (204) (171) (171)
Earned premiums, net of reinsurance 24,211 19,976 18,789 18,188 15,986
Investment return 21,769 26,889 (30,202) 12,225 17,141
Other income 1,666 1,234 1,146 2,457 1,917
Total revenue, net of reinsurance 47,646 48,099 (10,267) 32,870 35,044
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance (40,518) (41,195) 10,824 (26,785) (28,267)
Acquisition costs and other expenditure (4,799) (4,572) (2,459) (4,859) (4,489)
Finance costs: interest on core structural borrowings of shareholder-financed operations (257) (209) (172) (168) (177)
Loss on sale of Taiwan agency business (559)
Total charges, net of reinsurance (45,574) (46,535) 8,193 (31,812) (32,933)
Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns)1 2,072 1,564 (2,074) 1,058 2,111
Tax (charge) credit attributable to policyholders’ returns (611) (818) 1,624 5 (830)
Profit (loss) before tax attributable to shareholders 1,461 746 (450) 1,063 1,281
Tax (charge) credit attributable to shareholders’ returns (25) (55) 59 (354) (365)
Profit (loss) from continuing operations after tax 1,436 691 (391) 709 916
Discontinued operations (net of tax) (14) 241 (105)
Profit (loss) for the year 1,436 677 (391) 950 811
Based on profit (loss) for the year attributable to the equity holders of the Company:          
Basic earnings per share (in pence) 56.7p 27.0p (16.0)p 38.7p 33.6p
Diluted earnings per share (in pence) 56.6p 27.0p (16.0)p 38.6p 33.6p
Dividend per share declared and paid in reporting period
(in pence)
20.17p 19.2p 18.29p 17.42p 16.44p

Supplementary IFRS income statement data

 

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  2010 £m 2009 £m 2008 £m 2007 £m 2006 £m
Operating profit based on longer-term investment returns2 1,941 1,564 1,212 1,152 1,068
Short-term fluctuations in investment returns on shareholder-backed business (123) (123) (1,650) (51) 88
Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes (10) (74) (13) (1) 76
Costs of terminated AIA transaction (377)
Gain on dilution of holding in PruHealth 30
Loss on sale and results of Taiwan agency business (621) 1 (37) 49
Profit (loss) from continuing operations before tax attributable to shareholders2 1,461 746 (450) 1,063 1,281
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and excluding 2010 exceptional tax credit) (in pence) 62.0p 47.5p 38.1p 31.3p 28.8p
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and including 2010 exceptional tax credit) (in pence) 68.3p 47.5p 38.1p 31.3p 28.8p

Supplementary EEV income statement data

 

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  2010 £m 2009 £m 2008 £m 2007 £m 2006 £m
Operating profit based on longer-term investment returns2 3,696 3,090 2,865 2,353 1,998
Short-term fluctuations in investment returns on shareholder-backed business (30) 351 (4,967) 200 692
Mark to market value movements on core borrowings (164) (795) 656 223 85
Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes (11) (84) (14) (5) 207
Effect of changes in economic assumptions (10) (910) (398) 632 163
Costs of terminated AIA transaction (377)
Gain on dilution of holding in PruHealth 3
Profit on sale and results of Taiwan agency business 91 (248) 267 77
Profit (loss) from continuing operations before tax attributable
to shareholders
3,107 1,743 (2,106) 3,670 3,222
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and excluding 2010 exceptional tax credit) (in pence) 106.9p 88.8p 85.1p 69.2p 58.2p
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and including 2010 exceptional tax credit) (in pence) 113.2p 88.8p 85.1p 69.2p 58.2p

New business data

New business3 excluding Japan and Taiwan.

 

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  AER
  2010 £m 2009 £m 2008 £m 2007 £m 2006 £m
Annual premium equivalent (APE) sales:          
– Asia 1,501 1,209 1,174 1,044 814
– US 1,164 912 716 671 613
– UK 820 723 947 910 900
– Total APE sales 3,485 2,844 2,837 2,625 2,327
EEV new business profit (NBP) 2,028 1,619 1,205 1,103 975
NBP margin (% APE) 58% 57% 42% 42% 42%

Statement of financial position data

 

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As of and for the Year Ended 31 December 2010 £m 2009 £m 2008 £m 2007 £m 2006 £m
IFRS basis results          
Total assets 260,806 227,754 215,542 219,382 216,528
Total policyholder liabilities and unallocated surplus of with-profits funds 224,980 196,417 182,391 190,317 178,539
Core structural borrowings of shareholder –
financed operations
3,676 3,394 2,958 2,492 3,063
Total liabilities 252,731 221,451 210,429 213,218 210,972
Total equity 8,075 6,303 5,113 6,164 5,556

Other data

 

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As of and for the Year Ended 31 December 2010 £bn 2009 £bn 2008 £bn 2007 £bn 2006 £bn
Funds under management4 340 290 249 267 251
EEV shareholders’ equity, excluding non-controlling interests 18.2 15.3 15.0 14.6 11.9
Insurance Groups Directive capital surplus (as adjusted)5 4.3 3.4 1.5 1.9 1.2

Notes

  1. This measure is the formal profit (loss) before tax measure under IFRS but is not the result attributable to shareholders.
  2. Operating profits are determined on the basis of including longer-term investment returns. EEV and IFRS operating profits are stated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions, the shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes, transaction costs arising from business combinations in the period, costs associated with the terminated AIA transaction, and the effect of disposal and results of the Taiwan agency business, for which the sale process was completed in June 2009. In 2010, the Group 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 short-term fluctuations. The prior period comparatives for 2009 and 2008 have been amended accordingly.
    In addition, for EEV basis results, operating profit excludes the effect of changes in economic assumptions and the market value movement on core borrowings.
  3. New business sales exclude the results of the Japanese life operation which ceased writing new business in February 2010, and the results of the Taiwan agency business for which the sale process was completed in June 2009.
  4. Funds under management comprise funds of the Group held in the statement of financial position and external funds that are managed by Prudential asset management operations.
  5. The surpluses shown are before allowing for the final dividends for each year, which are paid in the following year. The 2010 surplus is estimated. Since 2007, following the sale of Egg Banking, Prudential has been subject to the capital adequacy requirements of the Insurance Groups Directive (IGD) which applies to groups whose activities are mainly in the insurance sector. Prior to the sale of Egg Banking, Prudential was subject to the capital adequacy requirements of the Financial Conglomerates Directive (FCD) which applies to groups with significant cross-sector activities in insurance and banking/investment services. Prudential was classified as an insurance conglomerate under the FCD. As the requirements for insurance conglomerates under the FCD are closely aligned to the requirements for insurance groups under the IGD, the move for Prudential from FCD to IGD did not result in a significant impact.
 

This schedule classifies the Group's pre-tax operating earnings from long-term insurance operations into the underlying drivers of those profits, using the following categories:

  1. Spread income represents the difference between net investment income (or premium income in the case of the UK annuities new business) and amounts credited to policyholder accounts. It excludes the longer-term investment return on assets in excess of those covering shareholder-backed policyholder liabilities, which has been separately disclosed as expected return on shareholder assets.
  2. Fee income represents profits driven by net investment performance, being asset management fees that vary with the size of the underlying policyholder funds net of investment management expenses.
  3. With-profits business represents the shareholders' transfer from the with-profits fund in the period.
  4. Insurance margin primarily represents profits derived from the insurance risks of mortality, morbidity and persistency.
  5. Margin on revenues primarily represents amounts deducted from premiums to cover acquisition costs and administration expenses.
  6. Acquisition costs and administration expenses represent expenses incurred in the period attributable to shareholders. It excludes items such as restructuring costs and Solvency II costs which are not included in the segment profit for insurance as well as items that are more appropriately included in other source of earnings lines (e.g. investment expenses are netted off investment income as part of spread income or fee income as appropriate).
  7. DAC adjustments comprises DAC amortisation for the period, excluding amounts related to short-term fluctuations, net of costs deferred in respect of new business.

Analysis of pre-tax IFRS operating profit by source

 

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  2010 £m
  Asia US UK Unallocated Total
Spread income 70 692 251 1,013
Fee income 122 506 60 688
With-profits 32 310 342
Insurance margin 392 188 12 592
Margin on revenues 1,018 223 1,241
Expenses          
Acquisition costs (656) (851) (167) (1,674)
Administration expenses (467) (344) (113) (924)
DAC adjustments 2 517 (1) 518
Expected return on shareholder assets 19 125 98 242
Long-term business operating profit 532 833 673 2,038
Asset management operating profit 72 22 284 378
GI commission 46 46
Other income and expenditure* (521) (521)
Total operating profit based on longer-term investment returns 604 855 1,003 (521) 1,941

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  2009i £m
  Asia US UK Unallocated Total
Spread income 31 524 198 753
Fee income 80 324 54 458
With-profits 29 281 310
Insurance margin 253 154 41 448
Margin on revenues 766 275 1,041
Expenses          
Acquisition costs (605) (690) (192) (1,487)
Administration expenses (382) (259) (173) (814)
DAC adjustments 150 467 (3) 614
Expected return on shareholder assets 25 98 125 248
Non-recurrent release of reserves for Malaysia life operations 63 63
Long-term business operating profit 410 618 606 1,634
Asset management operating profit 55 4 238 297
GI commission 51 51
Other income and expenditure* (418) (418)
Total operating profit based on longer-term investment returns 465 622 895 (418) 1,564

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  2008i £m
  Asia US UK Unallocated Total
Spread income 38 461 35 534
Fee income 54 292 57 403
With-profits 30 395 425
Insurance margin 198 161 (12) 347
Margin on revenues 672 314 986
Expenses          
Acquisition costs (619) (451) (172) (1,242)
Administration expenses (331) (217) (212) (760)
DAC adjustments 173 32 205
Expected return on shareholder assets 16 89 108 213
Long-term business operating profit 231 335 545 1,111
Asset management operating profit 52 7 286 345
GI commission 44 44
Other income and expenditure* (288) (288)
Total operating profit based on longer-term investment returns 283 342 875 (288) 1,212

* Including restructuring and Solvency II implementation costs.

Note

  1. During 2010 the Group amended its presentation of operating profit for its US insurance operations to remove the net equity hedge accounting effect associated with Jackson's variable annuity and fixed index annuity products, which are now classified in the Group's supplementary analysis of profit before tax attributable to shareholders as part of short-term fluctuations in investment returns. 2009 and 2008 operating profit have been amended accordingly and so net equity hedge effects of £159 million negative and £71 million positive have been removed from the previously stated operating profits of £1,405 million and £1,283 million to give restated values of £1,564 million and £1,212 million, respectively.

Margin analysis of long-term insurance business

The following analysis expresses certain of the Group's sources of operating profit as a margin of policyholder liabilities or other suitable driver. Details of the Group's average policyholder liability balances are given in note B6(e).

 

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  Total
  2010 2009 2008
Long-term business Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps
Spread income 1,013 53,858 188 753 51,000 148 534 44,281 121
Fee income 688 57,496 120 458 43,373 106 403 38,850 104
With-profits 342 89,693 38 310 84,063 37 425 89,075 48
Insurance margin 592     448     347    
Margin on revenues 1,241     1,041     986    
Expenses                  
Acquisition costs* (1,674) 3,492 (48)% (1,487) 2,896 (51)% (1,242) 2,879 (43)%
Administration expenses (924) 111,354 (83) (814) 94,373 (86) (760) 83,131 (91)
DAC adjustments 518     614     205    
Expected return on shareholder assets 242     248     213    
Non-recurrent release of reserve for Malaysia Life     63        
Operating profit 2,038     1,634     1,111    

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  Asia
  2010 2009 2008
Long-term business Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps
Spread income 70 4,393 159 31 3,152 98 38 2,421 157
Fee income 122 11,222 109 80 8,107 99 54 6,419 84
With-profits 32 10,135 32 29 8,371 35 30 7,168 42
Insurance margin 392     253     198    
Margin on revenues 1,018     766     672    
Expenses                  
Acquisition costs* (656) 1,508 (44)% (605) 1,261 (48)% (619) 1,216 (51)%
Administration expenses (467) 15,615 (299) (382) 11,259 (339) (331) 8,840 (374)
DAC adjustments 2     150     173    
Expected return on shareholder assets 19     25     16    
Non-recurrent release of reserve for Malaysia Life     63        
Operating profit 532     410     231    

* The ratio for acquisition costs is calculated as a percentage of APE including with-profits sales and Japan (2010: £7 million; 2009: £52 million). Acquisition costs include only those relating to shareholders.

Analysis of Asian operating profit drivers:

  • Spread income has increased from £31 million in 2009 to £70 million in 2010. This increase arises primarily as a result of improved investment return in Vietnam (where the return in 2009 was particularly low compared to both 2008 and 2010) and additional dividend income received in Japan.
  • Fee income has increased both in absolute terms by £42 million and as an improvement in margin, which has increased 10 bps to 109 bps. This primarily relates in a change in mix towards those countries with a higher asset management fee margin (e.g. Indonesia) from countries where fees charged are lower.
  • Insurance margin has increased by £139 million from £253 million in 2009 to £392 million in 2010. This reflects the continued growth in the in-force book, which has a relatively high proportion of risk-based products. 2010 includes £19 million relating to reserving changes in India and China.
  • Margin on revenues has increased by £252 million, reflecting the growth in the size of the portfolio and changes in country mix.
  • Acquisition costs – the costs as a percentage of APE new business sales has fallen over the period 2008-2010, reflecting management’s continued focus on capital management activities, such as the closure of Japan to new business in the first quarter of 2010 and changes to business and country mix. The analysis above uses shareholder acquisition costs as a proportion of total APE, excluding with-profits sales from the denominator the margin would become 2010: 53 per cent, 2009: 56 per cent and 2008: 58 per cent.
  • Administration expenses – margin has reduced from 339 bps in 2009 in part reflecting operational leverage benefit and a shift in mix towards countries with highly efficient business models (e.g. Indonesia).
 

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  US
  2010 2009 2008
  Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps
Spread income 692 28,496 243 524 29,248 179 461 25,322 182
Fee income 506 25,921 195 324 17,589 184 292 14,783 198
With-profits            
Insurance margin 188     154     161    
Margin on revenues            
Expenses                  
Acquisition costs (851) 1,164 (73)% (690) 912 (76)% (451) 716 (63)%
Administration expenses (344) 54,417 (63) (259) 46,837 (55) (217) 40,105 (54)
DAC adjustments 517     467        
Expected return on shareholder assets 125     98     89    
Operating profit 833     618     335    

Analysis of US operating profit drivers:

  • Spread income benefited from the effect of transactions to more closely match the overall asset and liability duration in 2010. Excluding this effect (£108 million), spread margin in 2010 would have been 205 bps. The increase over the 2009 margin of 179 bps is due in part to decreased crediting rates on fixed annuities.
  • Fee income margins are based on the average of the opening and closing separate account balances. In normal years this is expected to be a reasonable proxy for the average balances throughout the year. In 2009 separate account flows were weighted towards the end of the year artificially lowering the 2009 margin. Using an average based on end of month balances, margins show little movement between years, (2010: 200 bps; 2009: 203 bps; 2008: 200 bps) indicating that absolute revenue amounts are growing in line with separate accounts values. Separate account values increased between 2008 and 2010 both as a result of strong sales and improving equity markets.
  • Insurance margin represents operating profits from insurance risks, including variable annuity guarantees and other sundry net income. Positive net flows into variable annuity business with life contingent and other guarantees have helped to improve the margin from £154 million in 2009 to £188 million in 2010.
  • Acquisition costs have increased in 2010 in absolute terms compared to 2009 following an increase in sales volumes. However, acquisition costs as a percentage of APE has fallen from 76 per cent in 2009 to 73 per cent in 2010 as more advisers are electing to take asset-based commission, which is paid over the life of the policy based on fund value. This asset-based commission is treated as an administration expense in this analysis as opposed to a cost of acquisition, resulting in a lower acquisition cost ratio but a higher administration expenses margin.
    2008 acquisition costs as a percentage of APE sales were 63 per cent, lower than 2009 and 2010. This is primarily because sales of GICs in 2008 (APE £120 million), on which no acquisition costs are incurred, reduces the margin for that year. Excluding GIC APE sales the acquisition cost ratio for 2008 becomes 76 per cent, in line with 2009.
  • Administration expenses margin has increased to 63 bps in 2010, partly as a result of higher asset based commission, which lowers acquisition costs but increases the expenses classified as administration expenses in the table above.
 

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  UK
  2010 2009 2008
  Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps Profit £m Average Liability £m Margin bps
Spread income 251 20,969 120 198 18,600 106 35 16,538 21
Fee income 60 20,353 29 54 17,677 31 57 17,648 32
With-profits 310 79,558 39 281 75,692 37 395 81,907 48
Insurance margin 12     41     (12)    
Margin on revenues 223     275     314    
Expenses                  
Acquisition costs* (167) 820 (20)% (192) 723 (27)% (172) 947 (18)%
Administration expenses (113) 41,322 (27) (173) 36,277 (48) (212) 34,186 (62)
DAC adjustments (1)     (3)     32    
Expected return on shareholder assets 98     125     108    
Operating profit 673     606     545    

* The ratio for acquisition costs is calculated as a percentage of APE including with-profits sales. Acquisition costs include only those relating to shareholders.

Analysis of UK operating profit drivers:

  • Spread income has increased by £53 million to £251 million in 2010, reflecting in a higher margin of 120 bps, up from 106 bps in 2009. The improved margin primarily reflects the beneficial impacts of the bulk annuity deal written in 2010, improved margins on retail annuity new business and improved spread on equity release business following its closure to new business. Spread income was lower in 2008 due to lower margins on new business and the establishment of credit default and deflation reserves in that year in light of the credit crisis offset by the impact of actions to rebalance the credit portfolio.
  • Fee income has increased by 11 per cent to £60 million broadly in line with the value of unit-linked liabilities following the improvement in equity markets.
  • Margin on revenues represents premiums charges for expenses and other sundry net income received by the UK. Lower amounts were recorded in 2010 (£223 million) compared to 2009 (£275 million) reflecting, in part, lower premiums from shareholder-backed retail business in 2010 as compared to 2009.
  • Insurance margin has fallen by £29 million to £12 million in 2010, reflecting that 2009 included a one-off benefit of £34 million in respect of a longevity swap on certain aspects of the UK’s annuity back-book liabilities, which was not repeated in 2010.
  • Acquisition costs as a percentage of new business sales has fallen from 27 per cent in 2009 to 20 per cent in 2010. This reflects in part the impact of the bulk annuity deal which contributed £88 million APE in the period with a relatively low level of acquisition costs, together with the closure of equity release to new business as well as on-going cost saving initiatives.
    The ratio above expresses the percentage of shareholder acquisition costs as a percentage of total APE sales. It is therefore impacted by the level of with-profits sales in the year. Acquisition costs as a percentage of shareholder-backed new business sales were 36 per cent in 2010 (49 per cent in 2009), with the most significant impact being the effect of the bulk annuity deal.
  • Administration expenses have fallen by £60 million to £113 million and the ratio from 48 bps in 2009 to 27 bps in 2010.
    This is primarily the result of cost savings initiatives initiated by the UKIO in line with the business’ stated objectives.
 

Operating profit based on longer-term investment returns for Asian operations is analysed as follows:

 

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  2010 £m 2009 £m
Chinanote ii (12) 4
Hong Kong 51 48
Indianote iii 60 12
Indonesia 157 102
Japan (6) (18)
Korea 12 6
Malaysia    
– Underlying results 97 65
– Exceptional creditnote i   63
Philippines 2 2
Singapore 129 112
Taiwan bancassurance businessnote iv (4) (7)
Thailand 2 (1)
Vietnam 43 30
Other 5 (2)
Total insurance operationsnote v 536 416
Development expenses (4) (6)
Total long-term business operating profit 532 410
Asset management 72 55
Total Asian operations 604 465

Notes

  1. For the Malaysia life business, under the basis applied previously, 2008 IFRS basis liabilities were determined on the local regulatory basis using prescribed interest rates such that a high degree of prudence resulted. As of 1 January 2009, the local regulatory basis has been replaced by the Malaysian authority’s risk-based capital (RBC) framework. In the light of this development, the Company has re-measured the liabilities by reference to the method applied under the new RBC framework, which is more realistic than the previous approach, but with an overlay constraint to the method such that negative reserves derived at an individual policyholder level are not included. This change has resulted in a one-off release from liabilities at 1 January 2009 of £63 million.
  2. China’s operating loss of £12 million is after a net charge of £17 million for local reserving changes and associated impacts that have been reflected in the Group’s IFRS accounts. Excluding this effect, China’s underlying result is a £5 million profit.
  3. The operating profit of £60 million from India, a joint venture, includes £36 million arising from changes that improve the reserving estimation technique.
  4. Sale of Taiwan agency business
    In order to facilitate comparisons of operating profit based on longer-term investment returns that reflect the Group’s retained operations, the results attributable to the Taiwan agency business for which the sale process was completed in June 2009 are excluded from analysis of operating profit.
  5. Analysis of operating profit between new and in-force business
    The result for insurance operations comprises amounts in respect of new business and business in-force as follows:
     
      2010 £m 2009 £m
    New business strain (excluding Japan) (56) (72)
    Japan (1) (6)
    New business strain (including Japan) (57) (78)
    Business in force 593 494
    Total 536 416


    The IFRS new business strain corresponds to approximately four per cent of new business APE premiums for 2010 (2009: approximately six per cent of new business APE).
    The strain reflects the aggregate of the pre-tax regulatory basis strain to net worth after IFRS adjustments for deferral of acquisition costs and deferred income where appropriate.
 

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  2010 £m
  M&Gi Asiai PruCap US Total
Operating income before performance-related fees 615 185 88 229 1,117
Performance-related fees 17 6 23
Operating income* 632 191 88 229 1,140
Operating expense (386) (119) (50) (207) (762)
Operating profit based on longer-term investment returns 246 72 38 22 378
Average funds under management (FUM) £186.5 bn £47.2 bn      
Margin based on operating income 34 bps 40 bps      
Cost/income ratio 63% 64%      

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  2009 £m
  M&Gi Asiai PruCap US Total
Operating income before performance-related fees 470 157 89 183 899
Performance-related fees 12 3 15
Operating income* 482 160 89 183 914
Operating expense (305) (105) (28) (179) (617)
Operating profit based on longer-term investment returns 177 55 61 4 297
Average funds under management (FUM) £157.5 bn £39.6 bn      
Margin based on operating income 31 bps 40 bps      
Cost/income ratio 65% 67%      

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  2008 £m
  M&Gi Asiai PruCap US Total
Operating income before performance-related fees 480 144 123 139 886
Performance-related fees 43 3 46
Operating income* 523 147 123 139 932
Operating expense (295) (95) (65) (132) (587)
Operating profit based on longer-term investment returns 228 52 58 7 345
Average funds under management (FUM) £154.0 bn £36.9 bn      
Margin based on operating income 34 bps 40 bps      
Cost/income ratio 61% 66%      

* Operating income is net of commissions and includes performance related fees.
† Margin represents operating income as a proportion of the related funds under management (FUM). Opening and closing internal and external funds managed by the respective entity have been used to derive the average. Any funds held by the Group's insurance operations which are managed by third parties outside of the Prudential Group are excluded from these amounts.
‡ Cost/income ratio is calculated as a percentage of income excluding performance-related fees.
i M&G and Asia asset management businesses can be further analysed as follows:

 

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  M&G
  Operating income*
  Retail
£m
Margin of FUM bps Institutional§ £m Margin of FUM bps Total
£m
Margin of FUM bps
2010 345 93 287 19 632 34
2009 255 102 227 17 482 31
2008 243 122 280 21 523 34

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  Asia
  Operating income*
  Retail
£m
Margin of FUM bps Institutional§ £m Margin of FUM bps Total
£m
Margin of FUM bps
2010 120 62 71 26 191 40
2009 98 60 62 27 160 40
2008 91 59 56 26 147 40

* Operating income is net of commissions and includes performance-related fees.
† Margin represents operating income as a proportion of the related funds under management (FUM). Opening and closing internal and external funds managed by the respective entity have been used to derive the average. Any funds held by the Group's insurance operations which are managed by third-parties outside of the Prudential Group are excluded from these amounts.
§ Institutional includes internal funds.

 

The IFRS accounting for minimum death and withdrawal benefits guarantees of the Group's US insurance operations has a mixed measurement approach.

'Not for life' Guaranteed Minimum Withdrawal Benefits (GMWB) are accounted for as 'embedded derivatives'. Where the economic characteristics and risks of embedded derivatives are not closely related to the economic characteristics and risks of the host insurance contract, and where the contract is not measured at fair value with the changes in fair value recognised in the income statement, the embedded derivative is bifurcated and carried at fair value as a derivative in accordance with IAS 39. In Jackson, the embedded derivative liabilities for GMWB liabilities are fair valued using the economic assumptions shown below, in line with IAS 39 (FAS 157 – 'Fair Value Measurements'.)

Where a significant insurance element is present, such as for Guaranteed Minimum Death Benefit (GMDB) and 'for life' GMWB, the guarantees are accounted for as part of the accounting applied to the host insurance contracts. Under IFRS 4, the insurance contract accounting applied prior to IFRS adoption has continued to be applied. Accordingly for US variable annuity business the US GAAP standards applicable to insurance contract accounting are applied. Consistent with that approach, the GMDB and 'for life' GMWB guarantees are valued under FASB Accounting Standards codification Topic 944 (sub-topics 944-20, 944-40 and 944-80), formerly known as 'SOP 03-1' (Statement of Position 03-1: 'Accounting and Reporting by Insurance Enterprises Contracts and for Separate Accounts').

The two reserving methodologies typically produce quite different patterns of results. It is the variation in assumptions, and the way the two reserving methods react to emerging experience, that produces potentially significant differences in reserve patterns through time.

Both methods determine a hypothetical fee or charge (referred to in the rest of this note as 'fee assessment') that is anticipated to fund future projected benefit payments arising using the assumptions applicable for that method. After determination at issue, the FAS 157 fee assessment is fixed for the life of the policy, so that variations in experience from that assumed at issue, as well as cash flow timing issues, will create a liability or asset as the value of future benefits becomes more or less, respectively, than the value of the fee assessments.

The SOP 03-1 fee assessment, on the other hand, is recomputed at each valuation date to take into account emerging experience and cash flow timing differences. After redetermination based on valuation date parameters, the new fee assessment is applied retrospectively from issue date to recompute the current reserve provision. This retrospective aspect of the calculation is not present in the FAS 157 methodology.

The chart below compares the assumption bases for the two methods in general terms as well as showing representative comparative values as of 31 December 2010. The comparative values for the projected earned rate and AA corporate bond rate are the 10-year rate in both cases, and the comparative value for volatility is the 5-year rate.

 

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Assumption SOP 03-1 IAS 39 (FAS 157)
Fund earned rate 8.4% before fees Quoted rate swap curve
(10-year rate: 3.4% before fees)
Discount rate 8.4% AA corporate rate curve
(10-year rate: 4.8%)
Equity volatility 15% Implied curve
(5-year volatility: 24%)

To provide an approximate translation of values from the SOP 03-1 basis to the IAS 39 basis, the table below shows estimates of the impact of changing each primary economic assumption from the SOP 03-1 values to the IAS 39 values.

Two other items are shown in addition: a reconciling item to account for the difference in how each method adjusts for emerging economic experience (labelled as the 'method' component below), and a further adjustment to recognise the impact of additional fees collected over and above those considered for reserving purposes (i.e. the difference between fees actually collected and the hypothetical fee assessment referenced earlier).

Guaranteed benefit liability supplemental disclosure as of 31 December 2010

 

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As recorded in the 31 December 2010 financial statements: Note GMDB
£m
GMWB ‘for life’ £m GMWB ‘not for life’
£m
Total
£m

Notes

  1. Note GMWB benefits have reported components on both an SOP 03-1 and IAS 39 basis.
  2. Change in fund earned rate: 8.4 per cent to 3.4 per cent, producing significantly higher values of future benefit payments due to lower future assumed fund growth and therefore greater potential for future guaranteed benefit payouts. For GMWBs, future fee income is less dramatically affected, given that for most benefit forms fee income is based on a more stable benefit base rather than a current account value.
  3. Change in discount rate: 8.4 per cent to 4.8 per cent, producing significantly higher values, both for future benefit payments and future fees, with a net increase in liability. The absolute impact of this item will be influenced not only by the rate difference, but also by current market conditions, as the proportional impact of a particular rate change will be diluted if applied to a lower absolute value of future cash flows.
  4. Change in equity volatility assumption: 15 per cent to 24 per cent, producing higher values, primarily for future benefit payments. The impact is muted for GMWBs due primarily to the length of time until benefit payments occur, and also by the SOP 03-1 methodology itself.
  5. Generally, it is expected that the SOP 03-1 methodology will 'lag' market events in terms of reflecting their impact in the reserve calculation. This is because of the retrospective aspect of the calculation described above. This line item is also the balancing item in the reconciliation so contains any cross-effects from other variables.
  6. Representation of an approximate hypothetical IAS 39 (FAS 157) value were all guaranteed benefits to be reported on this basis.
  7. Value of actual fees collected, on an IAS 39 assumption basis, over and above those already considered in the reserve calculation. The reserve calculation restricts the level of future guarantee fees to a level that is sufficient to meet the expected benefit payments at issue using at issue assumptions to avoid profit recognition at inception.
  8. Resulting modified hypothetical IAS 39 value including adjustment for the value of fees in excess of those considered in the reserve calculation.
– SOP 03-1 1 220 29   249
– IAS 39 fair value 1     201 201
Total per 31 December 2010 financial statements         450
Change in assumed fund earned rate 2 375 25 n/a 400
Change in discount rate 3 200 50 n/a 250
Change in equity volatility assumption 4 225 0 n/a 225
Change in method 5 (150) (25) n/a (175)
          700
Hypothetical IAS 39 basis fair value 6 870   280 1,150
Adjustment to full fees 7 (200)   (600) (800)
Hypothetical fair value with full fee recognition 8 670   (320) 350

In all cases, values shown above, were they to be reflected in actual financial statements, would be significantly offset by an adjustment to deferred acquisition costs, which is impacted by changes in gross profit elements of the variable annuity product. Thus, for example, it might be expected that the GMDB impacts shown would be offset by some 70 to 75 per cent of the change illustrated, and the GMWB impacts shown would be offset by some 50 to 55 per cent of the change illustrated. The table below illustrates the approximate impact on shareholders' equity.

Estimated impact on shareholders' equity

 

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  Accounts carrying value to hypothetical IAS 39 basis fair value
£m
Accounts carrying value to hypothetical fair value with full fee recognition
£m

All numbers rounded to the nearest £25 million.

Estimated increase/(decrease) in liability 700 (100)
Related adjustments to:    
DAC (475) (50)
Deferred tax (75) 50
Estimated decrease/(increase) in shareholders’ equity 150 (100)

i Shareholders' funds summary

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  2010 £m 2009 £m

Note

  1. Based on the closing issued share capital as at 31 December 2010 of 2,546 million shares (2009: 2,532 million shares).
Asian operations    
Insurance operations    
Net assets of operation 1,913 1,382
Acquired goodwill 236 80
Total 2,149 1,462
Asset management    
Net assets of operation 197 161
Acquired goodwill 61 61
Total 258 222
Total 2,407 1,684
US operations    
Jackson (net of surplus note borrowings) 3,815 3,011
Broker-dealer and asset management operations:    
Net assets of operation 106 95
Acquired goodwill 16 16
Total 122 111
Total 3,937 3,122
UK operations    
Insurance operations:    
Long-term business operations 2,115 1,902
Other 33 37
Total 2,148 1,939
M&G    
Net assets of operation 254 173
Acquired goodwill 1,153 1,153
Total 1,407 1,326
Total 3,555 3,265
Other operations    
Holding company net borrowings (2,035) (1,754)
Shareholders' share of provision for future deficit funding of the Prudential Staff Pension Scheme (net of tax) (10) (16)
Other net assets (liabilities) 177 (30)
Total (1,868) (1,800)
Total of all operations 8,031 6,271

ii Net asset value per share

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  2010 £m 2009 £m

Note

  1. External funds shown above for 2010 of £100.4 billion (2009: £80.9 billion) comprise £111.4 billion (2009: £89.8 billion) in respect of investment products, as published in the New Business schedules (see Note B5) less £11.0 billion (2009: £8.9 billion) that are classified within internal funds.
Closing equity shareholders' funds 8,031 6,271
Net asset value per share attributable to equity shareholdersnote i 315p 248p

i Summary

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  2010 £bn 2009 £bn

Note

  1. External funds shown above for 2010 of £100.4 billion (2009: £80.9 billion) comprise £111.4 billion (2009: £89.8 billion) in respect of investment products, as published in the New Business schedules (see Note B5) less £11.0 billion (2009: £8.9 billion) that are classified within internal funds.
Business area    
Asian operations 30.9 23.7
US operations 63.6 49.6
UK operations 145.2 135.6
Internal funds under management 239.7 208.9
External fundsnote i 100.4 80.9
Total funds under management 340.1 289.8

ii Internal funds under management – analysis by business area

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  Asian operations US operations UK operations Total
  2010 £bn 2009 £bn 2010 £bn 2009 £bn 2010 £bn 2009 £bn 2010 £bn 2009 £bn

Note

  1. As included in the investments section of the consolidated statement of financial position at 31 December 2010 except for £0.4 billion (2009: £0.2 billion) investment properties which are held-for-sale or occupied by the Group and, accordingly under IFRS, are included in other statement of financial position captions.
Investment propertiesnote i 0.1 0.1 11.5 11.0 11.6 11.1
Equity securities 14.5 11.4 31.5 21.0 40.7 37.0 86.7 69.4
Debt securities 14.1 10.0 26.4 22.8 75.9 69.1 116.4 101.9
Loans and receivables 1.3 1.2 4.2 4.3 3.8 3.3 9.3 8.8
Other investments 1.0 1.1 1.4 1.4 13.3 15.2 15.7 17.7
Total 30.9 23.7 63.6 49.6 145.2 135.6 239.7 208.9

i Rates of exchange

The profit and loss accounts of foreign subsidiaries are translated at average exchange rates for the year. Assets and liabilities of foreign subsidiaries are translated at closing exchange rates. Foreign currency borrowings that have been used to provide a hedge against Group equity investments in overseas subsidiaries are also translated at closing exchange rates. The impact of these translations is recorded as a component of the movement in shareholders' equity.

The following translation rates have been applied:

 

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  Closing Average Closing Average
Local currency: £ 2010 2010 2009 2009
Hong Kong 12.17 12.01 12.52 12.14
Indonesia 14,106.51 14,033.41 15,171.52 16,173.28
Malaysia 4.83 4.97 5.53 5.51
Singapore 2.01 2.11 2.27 2.27
India 70.01 70.66 75.15 75.70
Vietnam 30,526.26 29,587.63 29,832.74 27,892.39
USA 1.57 1.55 1.61 1.57

ii Effect of rate movements on results

IFRS basis results

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  As published 2010 note i £m Memorandum 2009 note i and ii £m

Notes

  1. The 'as published' operating profit for 2010 and 'memorandum' operating profit for 2009 have been calculated by applying average 2010 exchange rates (CER).
    The 'as published' shareholders' funds for 2010 and 'memorandum' shareholders' funds for 2009 have been calculated by applying closing period end 2010 exchange rates.
  2. The 2009 operating profit of Asian long-term operations excludes the results of the Taiwan agency business for which the sale process was completed in June 2009.
  3. The Company has amended the presentation of IFRS operating profit for its US insurance operations to remove the net equity hedge accounting credit/charge (incorporating related amortisation of deferred acquisition costs) and include it in short-term fluctuations.
    The 2009 'memorandum' operating profit amounts have been amended accordingly.
Asian operations:    
Long-term operations 536 451
Development expenses (4) (6)
Total Asian insurance operations after development costs 532 445
Asset management 72 58
Total Asia operations 604 503
US operations    
Jacksonnote iii 833 626
Broker-dealer, asset management and Curian operations 22 4
Total US operations 855 630
UK operations    
Long-term business 673 606
General insurance commission 46 51
Total UK insurance operations 719 657
M&G 284 238
Total UK operations 1,003 895
Total segment profit 2,462 2,028
Other income and expenditure (450) (396)
Restructuring costs (26) (23)
Solvency II costs (45)
Operating profit from continuing operations based on longer-term investment returns 1,941 1,609
Shareholders’ funds 8,031 6,473

EEV basis results

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  As published 2010 note i £m Memorandum 2009 note i and ii £m

Notes

  1. The ‘as published’ operating profit for 2010 and ‘memorandum’ operating profit for 2009 have been calculated by applying average 2010 exchange rates (CER).
    The ‘as published’ shareholders’ funds for 2010 and ‘memorandum’ shareholders’ funds for 2009 have been calculated by applying closing period end 2010 exchange rates.
  2. The 2009 operating profit of Asian long-term operations excludes the results of the Taiwan agency business for which the sale process was completed in June 2009.
Asian operations:    
New business:    
Excluding Japan 902 783
Japan (1) (13)
Total 901 770
Business in force 549 420
Long-term operations 1,450 1,190
Asset management 72 58
Development expenses (4) (6)
Total Asia operations 1,518 1,242
US operations    
New business 761 673
Business in force 697 576
Jackson 1,458 1,249
Broker-dealer, asset management and Curian operations 22 4
Total US operations 1,480 1,253
UK operations    
New business 365 230
Business in force 571 640
Long-term business 936 870
General insurance commission 46 51
Total insurance 982 921
M&G 284 238
Total UK operations 1,266 1,159
Other income and expenditure (494) (434)
Restructuring costs (28) (27)
Solvency II costs (46)
Operating profit from continuing operations based on longer-term investment returns 3,696 3,193
Shareholders’ funds 18,207 15,904

The Group maintains four share option schemes satisfied by the issue of new shares. UK-based executive directors are eligible to participate in the UK Savings Related Share Option Scheme, and Asia-based executives can participate in the International Savings Related Share Option Scheme. Dublin-based employees are eligible to participate in the Prudential International Assurance Sharesave Plan, and Hong Kong-based agents can participate in the Non-employee Savings Related Share Option Scheme. Further details of the schemes and accounting policies are detailed in Note I4 of the IFRS basis condensed consolidated financial statements.

All options were granted at £nil consideration. No options have been granted to substantial shareholders, suppliers of goods or services (excluding options granted to agents under the Non-employee Savings Related Share Option Scheme) or in excess of the individual limit for the relevant scheme.

The options schemes will terminate as follows, unless the directors resolve to terminate the plans at an earlier date:

  • UK Savings Related Share Option Scheme: 8 May 2013
  • International Savings Related Share Option Scheme: 19 May 2011
  • Prudential International Assurance Sharesave Plan: 19 May 2011
  • Non-employee Savings Related Share Option Scheme: 9 May 2012

The weighted average share price of Prudential plc for the year ended 31 December 2010 was £5.68 (2009: £4.17).

Particulars of options granted to directors are included in the Directors’ Remuneration Report.
The closing price of the shares immediately before the dates on which the options were granted during the current period was £6.16.
The following analyses show the movement in options for each of the option schemes for the year ended 31 December 2010.

UK Savings Related Share Option Scheme

 

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    Exercise period Number of options
Date of
grant
Exercise
price £
Beginning End Beginning
of period
Granted Exercised Cancelled Forfeited Lapsed End of
period
09 Oct 2002 3.29 01
Dec
2009
31
May
2010
27,010 20,231 6,779
17 Apr 2003 2.66 01
Jun
2010
30
Nov
2010
273,250 273,250
01 Oct 2003 3.62 01
Dec
2010
31
May
2011
4,343 1,568 2,775
15 Apr 2004 3.46 01
Jun
2009
30
Nov
2009
942 942
15 Apr 2004 3.46 01
Jun
2011
30
Nov
2011
17,946 17,946
30 Sep 2004 3.43 01
Dec
2009
31
May
2010
15,014 6,543 191 8,280
30 Sep 2004 3.43 01
Dec
2011
31
May
2012
8,430 8,430
12 Apr 2005 3.87 01
Jun
2008
30
Nov
2008
8,121 8,121
12 Apr 2005 3.87 01
Jun
2010
30
Nov
2010
49,694 45,256 4,438
12 Apr 2005 3.87 01
Jun
2012
30
Nov
2012
12,222 12,222
29 Sep 2005 4.07 01
Dec
2010
31
May
2011
37,483 26,426 460 10,597
29 Sep 2005 4.07 01
Dec
2012
31
May
2013
11,172 1,680 9,492
20 Apr 2006 5.65 01
Dec
2009
31
May
2010
661 661
20 Apr 2006 5.65 01
Jun
2011
30
Nov
2011
15,933 678 569 802 13,884
20 Apr 2006 5.65 01
Jun
2013
30
Nov
2013
8,169 605 7,564
28 Sep 2006 4.75 01
Dec
2009
31
May
2010
83,095 42,821 21,690 18,584
28 Sep 2006 4.75 01
Dec
2011
31
May
2012
55,381 1,033 3,449 2,896 48,003
28 Sep 2006 4.75 01
Dec
2013
31
May
2014
13,325 13,325
26 Apr 2007 5.72 01
Jun
2010
30
Nov
2010
48,685 11,119 132 1,653 32,223 3,558
26 Apr 2007 5.72 01
Jun
2012
30
Nov
2012
10,284 1,374 573 8,337
26 Apr 2007 5.72 01
Jun
2014
30
Nov
2014
1,118 615 503
27 Sep 2007 5.52 01
Dec
2010
31
May
2011
53,257 25,015 1,874 695 640 25,033
27 Sep 2007 5.52 01
Dec
2012
31
May
2013
19,960 874 1,216 17,870
27 Sep 2007 5.52 01
Dec
2014
31
May
2015
5,249 2,653 928 1,668
25 Apr 2008 5.51 01
Jun
2011
30
Nov
2011
63,326 3,187 5,145 2,455 1,587 50,952
25 Apr 2008 5.51 01
Jun
2013
30
Nov
2013
35,835 1,595 3,128 2,892 28,220
25 Apr 2008 5.51 01
Jun
2015
30
Nov
2015
4,836 3,166 1,670
25 Sep 2008 4.38 01
Dec
2011
31
May
2012
181,003 4,055 9,642 1,140 12,168 153,998
25 Sep 2008 4.38 01
Dec
2013
31
May
2014
62,042 2,054 4,207 765 5,980 49,036
25 Sep 2008 4.38 01
Dec
2015
31
May
2016
23,161 2,341 5,963 14,857
27 Apr 2009 2.88 01
Jun
2012
30
Nov
2012
3,454,462 54,222 124,900 52,437 84,581 3,138,322
27 Apr 2009 2.88 01
Jun
2014
30
Nov
2014
2,099,760 13,349 44,054 1,735 47,092 1,993,530
27 Apr 2009 2.88 01
Jun
2016
30
Nov
2016
212,170 1,040 3,637 113 4,646 202,734
25 Sep 2009 4.25 01
Dec
2012
31
May
2013
299,769 2,444 22,705 3,157 6,651 264,812
25 Sep 2009 4.25 01
Dec
2014
31
May
2015
109,447 442 1,463 4,390 1,825 101,327
28 Sep 2010 4.61 01
Dec
2013
31
May
2014
317,521 2,730 234 314,557
28 Sep 2010 4.61 01
Dec
2015
31
May
2016
138,655 4,017 134,638
        7,326,555 456,176 538,297 266,848 76,508 251,218 6,649,860

The total number of securities available for issue under the scheme is 6,649,860, which represents 0.261 per cent of the issued share capital at 31 December 2010.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £5.70.

The fair value of options granted under the Plan in the period was £2.91.

International Savings Related Share Option Scheme

 

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    Exercise period Number of options
Date of grant Exercise price £ Beginning End Beginning of period Granted Exercised Cancelled Forfeited Lapsed End of period
30 Sep 2004 3.43 01
Dec
2009
31
May
2010
741 741
12 Apr 2005 3.87 01
Jun
2010
30
Nov
2010
758 758
20 Apr 2006 5.65 01
Jun
2009
30
Nov
2009
5,732 4,021 1,711
20 Apr 2006 5.65 01
Jun
2011
30
Nov
2011
820 820
28 Sep 2006 4.75 01
Dec
2009
31
May
2010
26,951 20,387 4,435 2,129
28 Sep 2006 4.75 01
Dec
2011
31
May
2012
968 259 709
26 Apr 2007 5.72 01
Jun
2010
30
Nov
2010
93,401 3,179 1,612 88,610
26 Apr 2007 5.72 01
Jun
2012
30
Nov
2012
17,847 17,847
27 Sep 2007 5.52 01
Dec
2010
31
May
2011
44,517 2,584 1,108 360 40,465
25 Apr 2008 5.51 01
Jun
2011
30
Nov
2011
32,754 5,686 27,068
25 Apr 2008 5.51 01
Jun
2013
30
Nov
2013
4,192 4,192
25 Sep 2008 4.38 01
Dec
2011
31
May
2012
252,450 11,410 4,340 236,700
25 Sep 2008 4.38 01
Dec
2013
31
May
2014
6,951 6,951
27 Apr 2009 2.88 01
Jun
2012
30
Nov
2012
2,105,236 47,332 83,676 68,123 1,906,105
27 Apr 2009 2.88 01
Jun
2014
30
Nov
2014
116,072 6,490 14,246 5,307 90,029
25 Sep 2009 4.25 01
Dec
2012
31
May
2013
141,426 5,595 2,994 132,837
25 Sep 2009 4.25 01
Dec
2014
31
May
2015
3,529 847 2,682
28 Sep 2010 4.61 01
Dec
2013
31
May
2014
176,353 1,303 175,050
28 Sep 2010 4.61 01
Dec
2015
31
May
2016
6,501 6,501
        2,854,345 182,854 91,382 118,413 85,499 4,581 2,737,324

The total number of securities available for issue under the scheme is 2,737,324, which represents 0.108 per cent of the issued share capital at 31 December 2010.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £5.83.

The fair value of options granted under the Plan in the period was £2.91.

Prudential International Assurance Sharesave Plan

 

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    Exercise period Number of options
Date of grant Exercise price £ Beginning End Beginning of period Granted Exercised Cancelled Forfeited Lapsed End of period
29 Sep 2005 4.07 01
Dec
2008
31
May
2009
495 495
20 Apr 2006 5.65 01
Jun
2009
30
Nov
2009
1,469 1,469
28 Sep 2006 4.75 01
Dec
2009
31
May
2010
1,110 1,110
27 Sep 2007 5.52 01
Dec
2010
31
May
2011
618 618
25 Sep 2008 4.38 01
Dec
2011
31
May
2012
1,520 1,520
27 Apr 2009 2.88 01
Jun
2012
30
Nov
2012
34,125 1,184 2,621 30,320
27 Apr 2009 2.88 01
Jun
2014
30
Nov
2014
6,567 6,567
25 Sep 2009 4.25 01
Dec
2012
31
May
2013
4,327 1,901 2,426
        50,231 1,184 4,522 3,074 41,451

The total number of securities available for issue under the scheme is 41,451, which represents 0.002 per cent of the issued share capital at 31 December 2010.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £5.47.

The fair value of options granted under the Plan in the period was £2.91.

Non-employee Savings Related Share Option Scheme

 

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    Exercise period Number of options
Date of grant Exercise price £ Beginning End Beginning of period Granted Exercised Cancelled Forfeited Lapsed End of period
15 Apr 2004 3.46 1
Jun
2009
30
Nov
2009
11,538 11,538
12 Apr 2005 3.87 1
Jun
2010
30
Nov
2010
3,876 3,876
29 Sep 2005 4.07 1
Dec
2008
31
May
2009
3,659 3,659
20 Apr 2006 5.65 1
Jun
2009
30
Nov
2009
8,305 8,305
28 Sep 2006 4.75 1
Dec
2009
31
May
2010
49,824 6,051 43,773
28 Sep 2006 4.75 1
Dec
2011
31
May
2012
8,577 8,577
26 Apr 2007 5.72 1
Jun
2010
30
Nov
2010
16,947 3,414 13,533
26 Apr 2007 5.72 1
Jun
2012
30
Nov
2012
15,557 15,557
27 Sep 2007 5.52 1
Dec
2010
31
May
2011
19,595 19,595
27 Sep 2007 5.52 1
Dec
2012
31
May
2013
5,748 5,748
25 Apr 2008 5.51 1
Jun
2011
30
Nov
2011
20,951 20,951
25 Apr 2008 5.51 1
Jun
2013
30
Nov
2013
6,934 2,739 4,195
25 Sep 2008 4.38 1
Dec
2011
31
May
2012
42,913 172 42,741
25 Sep 2008 4.38 1
Dec
2013
31
May
2014
17,135   17,135
27 Apr 2009 2.88 1
Jun
2012
30
Nov
2012
919,475 21,627 897,848
27 Apr 2009 2.88 1
Jun
2014
30
Nov
2014
785,662 35,754 749,908
25 Sep 2009 4.25 1
Dec
2012
31
May
2013
51,289 677 50,612
25 Sep 2009 4.25 1
Dec
2014
31
May
2015
11,717 11,717
28 Sep 2010 4.61 1
Dec
2013
31
May
2014
1,136,477 1,136,477
28 Sep 2010 4.61 1
Dec
2015
31
May
2016
382,504 3,251 379,253
        1,999,702 1,518,981 13,341 64,220 11,964 55,311 3,373,847

The total number of securities available for issue under the scheme is 3,373,847, which represents 0.133 per cent of the issued share capital at 31 December 2010.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £5.59.

The fair values of options granted under the Plan in the period was £2.91.

 
 

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