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 8% New business achieved profits 2003 1H 28% 41% 30% 62%

UK US Asia UK US

31%

Asia

UK INSURANCE OPERATIONS: FROM SIZE TO SCALE

 £27 BILLION SAVINGS GAP 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: MANAGING COSTS

COST REDUCTIONS ON TARGET £m 250 210 213 216 200 150 175 130 100 50 10 0 -50 -100 -5 -49 -46 -90 2001 2002 2003 2004 2005 2006 Cost savings Transition costs  £155m of savings realised  Annualised value of £180m  Mumbai office opened 30 May 2003  £200m of annualised savings by end of 2003

ASSET MANAGEMENT: M&G

ROBUST PROFITABILITY PERFORMANCE

£m

40 35 30 25 20 15 10 5 0

M&G Profits

1H2002 Operating profit 3000 2500 2000 1500 1000 500 1H2003 Average All-share 0  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 presence

EGG: VALUE PER CUSTOMER CONTINUES TO TREND UPWARDS 250 200 150 100 50 0 Q1 2000 Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003

UK revenue per customer UK cost per customer

Revenue per customer has grown steadily, while cost per customer has fallen sharply Total Egg customers up to 3 million in UK Marketing acquisition costs remain at £20-25 per card

JACKSON NATIONAL LIFE: OVERVIEW

US HAS 70% OF WORLD’S RETIREMENT ASSETS  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

JACKSON NATIONAL LIFE: NEW INITIATIVES

MOVING INTO THE MANAGED ACCOUNT BUSINESS  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

THE ASIAN OPPORTUNITY

China India Indonesia Japan Vietnam Philippines Thailand S. Korea Malaysia Taiwan Hong Kong Singapore

Population (m) Now

1,259 986 206 126 80 76 62 46 22 22 7 4

2030

1,470 1,380 285 117 110 119 77 53 34 32 8 4

Savings Rates

60% 50% 40% 30% 20% 18.5% 22.3% 26.0% 27.8% 29.8% 33.0% 36.4% 38.1% 51.2% 10% 0% US India Taiw an Japan HK Korea Thai Malay Sing

Long-term GDP Growth Rates 10% 8% 6% 4%

3.3% 3.5% 4.9% 5.9% 6.5% 6.6% 6.9% 7.6% 8.0% 8.1% 8.6%

2% 0%

Japan Phil 100% 80% 60% India Indo Thai HK Malay Korea Sing Taiw an China

Percentage of Holdings By Asset Class

Other/Misc Mutual Funds Equities Fixed Income Securities 40% Pensions 20% Life Insurance Cash/Deposits 0% HK Mal Sing Indi Jap Taiw Kor Thai Chin Phil Indo US

ASIA: LIFE MARKETS OVERVIEW

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP

Life Penetration Penetration, 1999 1

12% = $1bn in NB Premiums 10% S Korea Japan 8% 6% Taiwan Hong Kong 4% 2% 0% 100 Singapore India Philippines Malaysia Thailand Vietnam China Indonesia 1,000 10,000

Per Capita GDP 2 , USD (log scale)

100,000

1.

Source: Swiss Re;

2.

Source: CIA    Inflexion point at $10,000  North Asian markets dominate in terms of scale Strong correlation between GDP per capita and penetration of life insurance Tremendous potential for nascent markets (eg. urban populations in China and India)

WELL-DIVERSIFIED IN TERMS OF GEOGRAPHY, PRODUCTS AND DISTRIBUTION South Asia Country Products:

Life: traditional unit-linked Mutual funds General

Distribution:

Agency Bank Broker Direct

Top 5 Positions:

Life (by new business) Mutual funds (by FUM)

Sing Mal Thai Indo Phil Vietnam India

                                            1994  June 2003 * Guangzhou

Greater China North Asia HK Taiwan China*

        

Japan Korea

                        

LONG-TERM COMMITMENT TO THE REGION

PRUDENTIAL BRAND IS A POWERFUL ASSET Prudence UK heritage and credentials Understanding customer needs

Strong competitive advantage for PCA

A POWERFUL REGIONAL PRESENCE

RECOGNITION THROUGHOUT THE REGION

23 BANK PARTNERS ACROSS 11 COUNTRIES

A LEADING REGIONAL LIFE INSURANCE PLAYER 6-8

Number of markets with top 5 Life position 

AIG Prudential



Manulife



Allianz 4-5



Great Eastern



NY Life



ING 2-3 0-1

  

Nippon Life Cathay Life Samsung Life

    

Aegon Aviva Mass Mutual US Prudential Sun Life



Zurich



Axa 1-2 3-6 7-8 9+

Number of market presences/life licences As at March 2003 Source: PCA analysis  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

PRUDENTIAL CORPORATION ASIA: SUSTAINING MOMENTUM

Continuing to build scale – – 4.7m customers, up from 3.5m a year ago India’s largest private sector life company with 37.1% new business market share* Investing for the future – – PCA Life Japan: focus on financial advisers Launched new Beijing life operations in Q303 Managing profitability – – Product mix actively managed Increasing operating efficiencies Strengthening customer relationships – – – Ongoing focus on agency quality Piloting new CRM programmes Updating customer research * For private sector – 3.0% share of market new business including LIC

MUTUAL FUNDS: A REGIONAL LEADERSHIP OPPORTUNITY Prudential (7) Schroder (6) Templeton (6) Jardine Fleming (6) HSBC (6) Alliance Capital (6) Citigroup (5) ABN AMRO (5) Fidelity (5) Aberdeen (5) HK Sing Japan Taiwan Korea India Phil Thai China Indo Mal

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

ASIA: MODEST CAPITAL REQUIREMENT

NET CAPITAL FLOWS £m 300 250 200 150 100 158 76 144 274 143 50 0 (1) 22 7 11 -50 1994 1995 1996 1997 1998 1999 2000 2001 2002 H 1 20 03 56 Working capital Repatriations Acquisitions  Total net capital invested 1994 to H1 2003: £890m  Net capital requirement of circa £100m per annum until 2005

ASIA PROFIT PROGRESSION 1998 (£m) New business achieved profit Margin 56 74% Retail FUM * Operating achieved profit before development expenses MSB profit from established operations 69 83 29 1999 (£m) 90 73% 453 125 31 2000 (£m) 153 60% 1,649 213 2001 (£m) 2002 (£m) 1H2003 (£m) 255 59% 307 60% 123 51% 3,296 415 5,232 516 5,886 162 40 56 79 40

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

CONCLUSION

MANAGING THE BUSINESS IN A TOUGH ENVIRONMENT  Solid start to the year demonstrated in 2003  International diversification provides platform for profitable growth  Continued growth in Asia  Financial strength underpins market presence