Prudential plc Full Year 2010 Results

London - 9 March 2011


New Business:

  • Total APE sales1 of £3,485 million up 23 per cent
  • EEV new business profit margin (% APE) of 58 per cent
  • EEV new business profit1 of £2,028 million up 25 per cent
  • Investment in new business1 of £643 million (2009: £660 million)


  • Operating profit of £1,941 million up 24 per cent
  • Profit for the year after tax of £1,431 million up 112 per cent
  • Shareholders’ funds of £8.0 billion up 28 per cent

Embedded Value:

  • Operating profit of £3,696 million up 20 per cent
  • Shareholders' funds of £18.2 billion, up 19 per cent, equivalent to 715 pence per share

Capital & Dividend:

  • Insurance Groups Directive (‘IGD’) capital surplus estimated at £4.3 billion
  • Underlying free surplus generation up 21 per cent to £1,714 million
  • 2010 full year dividend increased by 20 per cent to 23.85 pence per share

Commenting on the results, Tidjane Thiam, Group Chief Executive, said:

“We have achieved a strong performance in 2010, with results significantly ahead on all key measures. Our disciplined approach to capital allocation, proactive risk management and focus on profitability are generating both growth and cash for our shareholders.

These principles have served us well during the financial crisis, allowing us to emerge from the 2008–2009 period with a stronger balance sheet, higher profits, higher cash flows and an increased dividend. Each part of the Group plays a key role in our strategy. Our flexibility and diversification have been instrumental in allowing us to navigate successfully the economic and market cycle. We have set ourselves ambitious objectives for cash generation not only from Asia but also from other parts of the Group.

The quality of our strategic options, our discipline in putting value ahead of volume and our focus on execution should allow us to continue to grow profitably and to generate significant returns for our shareholders. This is evidenced by the upwards rebasing of the dividend that we have announced today.”

1Excluding Japan which ceased writing new business in 2010.

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