PRUDENTIAL PLC

JONATHAN BLOOMER

GROUP CHIEF EXECUTIVE

MERRILL LYNCH EUROPEAN BANKING AND INSURANCE CONFERENCE

8 OCTOBER 2003

This presentation may contain certain "forward-looking statements" with respect to certain of Prudential's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Prudential and its affiliates operate. As a result, Prudential's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential's forward-looking statements.

Prudential undertakes no obligation to update the forward looking statements contained in this presentation or any other forward looking statements it may make.

AN INTERNATIONALLY-DIVERSIFIED BUSINESS

UK & Europe USA Asia

GEOGRAPHICAL DIVERSIFICATION

New business achieved profits

1998 1H

New business achieved profits

2003 1H

Product range focused solely on profitable segments- average spread on individual annuities of over 150bps, an increase of nearly

50bps since 1H2002- group pensions via business-to-business channel continues to grow - leading distributor of with-profit bonds through IFAs; developing next

generation products

Addition of bancassurance to strong distribution franchise- developing wider partnership with Abbey National- Zurich partnership successfully launched in May 2003- conversations continue with potential bank partners

UK INSURANCE OPERATIONS: FROM SIZE TO SCALE

£27 BILLION SAVINGS GAP

£155m of savings realised

Annualised value of £180m

Mumbai office opened 30 May 2003

£200m of annualised savings by end of 2003

UK INSURANCE OPERATIONS: MANAGING COSTS

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

COST REDUCTIONS ON TARGET

ASSET MANAGEMENT: M&G

ROBUST PROFITABILITY PERFORMANCE

Operating profits up, despite falling equity markets

Well-diversified revenue stream

Continued life fund out-performance

No 2 retail mutual fund provider in UK

Building European presence0

5

10

15

20

25

30

35

40

1H2002 1H2003

0

500

1000

1500

2000

2500

3000

Operating profit Average All-share

M&G Profits£m

EGG: VALUE PER CUSTOMER CONTINUES TO TREND UPWARDS

Total Egg customers up to 3 million

in UK

Revenue per customer has grown steadily,

while cost per customer has fallen

sharply

Marketing acquisition costs remain at £20-25

per card

JACKSON NATIONAL LIFE: OVERVIEW

Scale player in US life industry

Low-cost, flexible infrastructure

Excellent product manufacturing and administrative capability

Relationship-driven distribution model

Strong risk management capabilities and financial discipline

US HAS 70% OF WORLD’S RETIREMENT ASSETS

JACKSON NATIONAL LIFE: NEW INITIATIVES

Capitalises on JNL’s strengths- distribution- technology- innovation

From $2,000,000 of assets down to $25,000

All the advantages of a consultative sale process- portfolio customisation - automation of tax and paperwork

Attractive business proposition for producers and customers in any market climate

Continued diversification of JNL’s sales and asset mix

MOVING INTO THE MANAGED ACCOUNT BUSINESS

Savings Rates

Long-term GDP Growth Rates

China IndiaIndonesia JapanVietnamPhilippinesThailand S. KoreaMalaysiaTaiwanHong Kong Singapore

1,25998620612680766246222274

Now1,4701,380

2851171101197753343284

2030

Population (m)

Mutual Funds

Equities

Fixed Income Securities

Pensions

Life Insurance

Cash/Deposits

Other/Misc

Percentage of Holdings By Asset Class

THE ASIAN OPPORTUNITY

Life Penetration

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

S Korea

Japan

Taiwan

Hong Kong

China

India Philippines

IndonesiaThailand

Vietnam

Malaysia

Singapore

0%

2%

4%

6%

8%

10%

12%

100 10,000 100,000

Penetration, 19991

Per Capita GDP2, USD (log scale)

= $1bn in NB Premiums

North Asian markets dominate in terms of scale

Strong correlation between GDP per capita and penetration of life insurance

Inflexion point at $10,000

Tremendous potential for nascent markets (eg. urban populations in China and India)

1,000

ASIA: LIFE MARKETS OVERVIEW

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP

WELL-DIVERSIFIED IN TERMS OF GEOGRAPHY, PRODUCTS AND DISTRIBUTION

Products:Life: traditional unit-linked

Mutual funds

General

1994 June 2003

MalSing Thai Indo Phil India JapanTaiwanVietnam China*Country KoreaHK

South Asia Greater China North Asia

Distribution:Agency

Bank

Broker

Direct

Top 5 Positions:Life (by new business)Mutual funds (by FUM)

* Guangzhou

LONG-TERM COMMITMENT TO THE REGION

Strong competitive advantage for PCAStrong competitive advantage for PCA

UKheritage andcredentials

Understandingcustomer needs

Prudence

PRUDENTIAL BRAND IS A POWERFUL ASSET

A POWERFUL REGIONAL PRESENCE

RECOGNITION THROUGHOUT THE REGION

23 BANK PARTNERS ACROSS 11 COUNTRIES

Source: PCA analysis

AIG

Manulife Allianz

NY Life ING

Nippon Life Cathay Life Samsung Life

Aegon Aviva Mass Mutual US Prudential Sun Life

Zurich Axa

4-5

2-3

0-1

1-2 3-6 7-8

Number of market presences/life licences

9+

Number of markets with top 5 Life position

6-8Prudential

Second only to AIG in penetration and overall life market share

With the exception of large domestic players such as Cathay Life (Taiwan), Nippon Life (Japan) Samsung Life (Korea) and Great Eastern Life (Singapore and Malaysia) all the principle regional players are North American or European

As at March 2003

A LEADING REGIONAL LIFE INSURANCE PLAYER

Great Eastern

PRUDENTIAL CORPORATION ASIA: SUSTAINING MOMENTUM

Continuing to build scale

Investing for the future

Managing profitability

Strengthening customer relationships

* For private sector – 3.0% share of market new business including LIC

– 4.7m customers, up from 3.5m a year ago– India’s largest private sector life company with

37.1% new business market share*

– PCA Life Japan: focus on financial advisers– Launched new Beijing life operations in Q303

– Product mix actively managed– Increasing operating efficiencies

– Ongoing focus on agency quality– Piloting new CRM programmes– Updating customer research

Building a platform to become regional mutual fund leader

– Leading positions in India and Taiwan

– JV with Bank of China in Hong Kong

– Licensed and operating in Japan, Malaysia, Singapore

– Second largest fully owned foreign ITMC in Korea

MUTUAL FUNDS: A REGIONAL LEADERSHIP OPPORTUNITY

Total net capital invested 1994 to H1 2003: £890m

Net capital requirement of circa £100m per annum until 2005

NET CAPITAL FLOWS

ASIA: MODEST CAPITAL REQUIREMENT

(1)

22 7 11

158

76

144

274

143

56

ASIA PROFIT PROGRESSION

New business achieved profit

Margin

Retail FUM *

Operating achieved profitbefore development expenses

MSB profit from established operations

1998

56

74%

69

83

29

(£m)1999

90

73%

453

125

31

(£m)2000

153

60%

1,649

213

40

(£m) 2001

255

59%

3,296

415

(£m)

56 79

2002

307

60%

5,232

516

(£m)

*Includes mutual funds under management and Hong Kong Mandatory Provident Fund

1H2003(£m)

40

123

51%

5,886

162

CONCLUSION

Solid start to the year demonstrated in 2003

International diversification provides platform for profitable growth

Continued growth in Asia

Financial strength underpins market presence

MANAGING THE BUSINESS IN A TOUGH ENVIRONMENT