PRUDENTIAL UKANDY BRIGGS

B2B & Partnerships Director

Dresdner Kleinwort Wasserstein Conference

30 October 2003

2

INTRODUCTION

Prudential has diversified its business and hence developed a unique position from which to withstand turbulent markets

Note: Based on Life and Pensions sales

3

PRUDENTIAL UK DISTRIBUTION MIX

1993 2003 H1

Similarly in the UK, we have a much broader distribution spread

DSF68%

IFA32% IFA

42%

B2B36%

D2C16%

Partnership

6%

Note: Bulk sales included in B2B

4

Financial strength

Size to scale

Brand

Product

Distribution

PRUDENTIAL UK - STRATEGIC PRIORITIES

5

FINANCIAL STRENGTH - PRUDENTIAL HAS ONE OF THE HIGHEST FREE ASSET RATIOS AMONGST THE LEADING COMPANIES

2002 Free Asset Ratio

Note:Free Asset Ratio above required minimum solvency margin excluding future profits, subordinated debt and financial reassurance

Source: FSA Returns, Form 9 as at 31.12.02

* Excludes Scottish Amicable closed funds (Scottish Amicable Investment Funds)

FAR excluding Alternative capital

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Royal and SunAlliance

Friends Provident

Clerical Medical Group

Equitable

Royal London

Pearl

Standard Life

Britannic

Guardian

Scottish Equitable

L&G

Aviva

Axa Sun Life

Prudential*

Scottish Widows

6

SIZE TO SCALE - DELIVERING THE COST CHALLENGE

£155m of savings realised

Annualised value of £180m

Mumbai office opened 30 May 2003

£200m of annualised savings by end of 2003

10

130

175

210216213

-5

-46-49

-90-100

-50

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006

Cost savings Transition costs

£m

7

BRAND - THE STRONGEST FOR LIFE AND PENSIONS

Spontaneous awareness of life and pension providers

Source:Brand and Satisfaction Monitor (Millward Brown)Base: All respondents (GB adults), six month rolling data. Selected companies shown

Mar

-Aug

02

Apr-S

ep02

May

-Oct0

2

Jun-

Nov02

Jul-D

ec02

Aug02

-Jan

03

Sep02

-Feb

03

Oct02-

Mar

03

Nov02

-Apr

03

Dec02

-May

03

Jan0

3-Ju

n03

Feb03

-Jul0

3

Mar

03-A

ug03

Prudential Norwich Union/ CGNU Scottish Widows AXA Standard Life Legal & General

In these turbulent times, our brand strength provides considerable reassurance to customers

8

BRAND - DELIVERS ON THE CUSTOMER EXPERIENCE

Progress to date

- moved to single customer service business

- single view of customer

- 650 people in Mumbai

- 80% of calls answered in 15 seconds

Future Plans

From summer 2004, all customers can:-

- call 0800 000 000

- speak to a person not a machine

- who can deal with 80% of their issues on the call

9

BRAND - ADVERTISING

10

PRODUCT - OUR BETS

We’re focusing on Investments (bonds and ISAs), Annuities and large Group Pensions

Size of circle represents new business market size in APE in 2000Market growth is estimate for the next 10 yearsSource: ABI, Prudential

Pre

miu

m S

ha

re

0

2%

4%

6%

8%

10%

12%

14%

16%

18%

0% 2% 4% 6% 8% 10% 12%

Market Growth

ISAs

Annuities

GroupPensions

Investment Bonds

RPIndividual Pensions

Other

11

DISTRIBUTION - THE FUTURE MARKET LANDSCAPE

One of several potential scenarios ...

Distribution in 2000

DSF

IFAs38%

31%

13%EBC

Other

Bancassurers 7%

8%

Direct 3%

Ex-DSF multi-tie

Bancassurers

Distribution in 2005

20%

22%

3%

2%

Ex-IFA multi-tie15%

17%

15% EBC

Other

DSF

IFA

Direct6%

Intermediaries

Business toBusiness

Direct to consumer

Partnerships

12

DISTRIBUTION - B2B SALES PROCESS

The new model….

Employer Relationship

Manager

DC Pensionproposition

Pension Mgr

Unlocks

Presenters

F2F presentation

Employees

Acct mgmt• Noble endeavour• DC pension• DB risk mgmt• Joint marketing

plan• Other products

HR Director/ Finance Director/

Pension Mgr

Unlocks

B2B Central Planning

Unit

Marketing customer research

Segmented approach

DM Tele wwwF2F

Employees

Employer endorsement

Unlocks

Sales Processes being refined

The old model…..Employer

Relationship Manager

13

DISTRIBUTION - B2B EMPLOYEE SIGN UP

Multi-touch, multi channel sales process

Innovation - created Automatic Enrolment (average conversion over 75%)

Cost effective CRM managed by new Central Planning Unit

Targeting distribution method based on customer value

Customer Relationship Management

F2F

DIRECT MAIL

INTRANET/EXTRANET/EMAIL

AUTOMATIC ENROLMENT

TELEPHONY

UNDERSTAND EMPLOYER OBJECTIVES

GROUP PRESENTATIONS

14

ECONOMICS OF B2B DISTRIBUTION

Auto enrolment low cost and highest conversion

F2F needs to be employed where value exists

Distribution method Cost per hit Conversion rate Unit cost of acquisition

£ % £

Auto enrolment 2.50 75% 3

e-based 1 5% 20

DM 2.50 10% 25

Telephony 15 33% 45

F2F presentation 25 50% 50

15

B2B - RESULTS

Prudential have achieved B2B growth of 23% when our competitors are all down

Stakeholder - CGEY believe that "Prudential’s business solution embodies the best elements of current thinking on Stakeholder Pensions"

20% of FTSE 100 and FTSE 350 as clients

Half of the Public sector as clients

Our clients have over 5m employees

Year on Year growth

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Norwich Union

Standard Life

L&G

Prudential

% m

ove

men

t

Note : Prudential is Q3 to Q3, others are Q2 to Q2.Includes DB, DC (MPP), Group AVCs, GPP and Employer Stakeholder

16

B2B - EXPANDING OUR PROPOSITION

Employer

Employee

Integration Platform & CRM

Prudential Pensions Platform

Multi-Channel/Multi-Media Access

On-Line planning

Call Centre E&I Seminars F2F AdviceDMAuto

Enrolment

Other Pru Group

Platforms

3rd Party Providers

17

Financial strength

Size to scale

Brand

Product

Distribution

PRUDENTIAL UK - STRATEGIC PRIORITIES

- Highest free asset ratio

- Exceeded our ambitions

- Strongest brand

- Focused product strategy

- Rapidly diversifying distribution capability