Prudential plc Full Year 2017 Results



Performance highlights on a constant (and actual) exchange rate basis

  • Group IFRS operating profit4 of £4,699 million, up 6 per cent1 (up 10 per cent2)
  • Asia double-digit broad-based growth in new business profit3, up 12 per cent1, IFRS operating profit4, up 15 per cent1 and underlying free surplus generated5, up 19 per cent1
  • US separate account net inflows6 of £3.5 billion contributing to separate account assets 19 per cent1 higher at £130.5 billion
  • M&G Prudential assets under management7 up 13 per cent to £351 billion, driven by record net inflows into M&G and PruFund
  • Full year 2017 ordinary dividend increased by 8 per cent to 47 pence per share
  • Group Solvency II surplus8,9 estimated at £13.3 billion, equivalent to a cover ratio of 202 per cent


Mike Wells, Group Chief Executive, said: ‘Our clear, consistent strategy, high-quality products and constantly improving capabilities have enabled us to deliver excellent progress across the Group, led by double-digit growth in our Asia business. We have also achieved all of our 2017 objectives10, which we set in December 2013. This represents the third set of objectives successfully achieved within the last 10 years.

‘The performance of our Asia business is testament to the strength, scale and diversity of our platform in the region, our focus on recurring-premium health and protection business and the quality of our execution. Our Asia life businesses delivered a 15 per cent1 increase in IFRS operating profit4 and a 12 per cent1 increase in new business profit over the year, while assets under management at Eastspring increased by 18 per cent2. We continue to develop our capabilities in Asia, building scale and enhancing quality.

‘In the US our life business, Jackson, remains focused on meeting the retirement income needs of the growing numbers of baby boomer retirees and extending our products and reach to improve access to the large asset pools of the fee-based advisory market. Jackson delivered positive separate account net inflows6 of £3.5 billion, with separate account assets increasing by 19 per cent1.

‘During 2017 we announced that we were combining our asset manager, M&G, and Prudential UK & Europe to form M&G Prudential, a leading savings and investment business in the UK and Europe well positioned to target growing customer demand for comprehensive financial solutions. M&G Prudential has delivered record levels of external asset management net inflows of £17.3 billion, contributing to total assets under management7 of £351 billion.

‘Our strategy is aligned to structural trends: the savings and protection needs of the fast-growing middle class in Asia, the retirement income needs of the baby boomers in the US and the increasing demand for managed savings solutions among the ageing populations of the UK and Europe. The Group’s performance demonstrates that we are highly effective in accessing the opportunities arising from these trends, and that we are meeting the needs of our customers better than ever before. I am confident that, given the extent of our opportunities and our proven ability to execute and innovate, we are well positioned to continue to grow profitably.’

Summary financials





Change on

AER basis

Change on

CER basis

IFRS operating profit based on longer-

term investment returns





Underlying free surplus generated5,11





Life new business profit3





IFRS profit after tax12





Net cash remittances from business units















Change on

AER basis


IFRS shareholders’ funds





EEV shareholders’ funds





Group Solvency II capital surplus8,9







1. Year-on-year percentage increases are stated on a constant exchange rate basis unless otherwise stated.
2. Growth rate on an actual exchange rate basis.
3. New business profit on business sold in the year, calculated in accordance with EEV principles.
4. Based on longer-term investment returns.
5. Underlying free surplus generated comprises underlying free surplus generated from the Group's long-term business (net of investment in new business) and that generated from asset management operations. Further information is set out in note 11 of the EEV basis results.
6. Variable annuity separate account inflows.
7. Represents M&G Prudential asset management external funds under management and internal funds included on the M&G Prudential long-term insurance business balance sheet.
8. The Group shareholder capital position excludes the contribution to Own Funds and the Solvency Capital Requirement from ring-fenced with-profits funds and staff pension schemes in surplus. The estimated solvency position includes management’s calculation of UK transitional measures reflecting operating and market conditions at each valuation date. An application to recalculate the transitional measures as at 31 December 2017 has been approved by the Prudential Regulation Authority.
9. Before allowing for second interim ordinary dividend.
10. The 2017 financial objectives were for Asia to deliver a compound annual growth rate for IFRS operating profit based on longer-term investment returns of at least 15 per cent between 2013 and 2017 and underlying free surplus generation of £0.9 billion to £1.1 billion in the year to 31 December 2017 and for the Group to deliver cumulative underlying free surplus generation of at least £10 billion between 1 January 2014 and 31 December 2017.
11. The 2016 comparative results have been re-presented from those previously published following reassessment of the Group’s operating segments as described in note B1.3 of the IFRS financial statements. On re-presentation, Prudential Capital is excluded from underlying free surplus generated.
12. IFRS profit after tax reflects the combined effects of operating results determined on the basis of longer-term investment returns, together with negative short-term investment variances, which in 2017 largely arose within Jackson, profit (loss) on disposal of businesses, amortisation of acquisition accounting adjustments and the total tax charge for the year.


For Prudential plc’s Full Year 2017 Results press release, visit:


<< Back to Press Releases

Back to Top