Prudential plc · LSE:PRU
Prudential — Morgan Stanley European Financials Conference 2017
14 slides from Prudential's conference presentation, Mar 21, 2017
Slide 1: Prudential plc – Morgan Stanley European Financials Conference
Prudential plc Morgan Stanley European Financials Conference 21 March 2017 1
Slide 2: Forward-looking statements
This document may contain ‘forward-looking statements’ with respect to certain of Prudential's plans and its goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements that are not historical facts, including statements about Prudenti
Slide 3: 2016 headline results
Group 2016 headline results Record IFRS operating profits1 of £4.3 billion; cash generation2 up 10% to £3.6 billion Asia earnings up 15% to £1.6 billion and cash generation2 up 15% to £859 million Strong progress on 2017 objectives £12.5 billion Solvency II surplus3 at 201% cover 12% incre
Slide 4: Delivering profitable growth at scale
Group Delivering profitable growth at scale IFRS operating profit1,2, £m + £1bn 4,256 3,969 + £1bn 3,154 + £1bn 2,937 2,504 2,000 1,811 1,438 1,232 £1bn 1,181 1,077 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Comparatives have been stated on an actual exchange rate basis 2 Comparatives
Slide 5: Translating into strong shareholder returns
Group Translating into strong shareholder returns Dividend, pence per share £ 6.8 bn Total dividends1 to shareholders 2006-16 CAGR 48.78 +10% Special 43.50 dividend 38.78 36.93 33.57 29.19 25.19 23.85 18.90 19.85 17.14 18.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Amounts paid 2006-
Slide 6: Geographic footprint aligned to significant demand
Group Geographic footprint aligned to significant demand Insurance penetration1 Mutual fund penetration2 Leading pan Penetration Penetration regional life ASIA franchise #1 Retail Asian UK 7.5% Europe 75% asset manager3 2.4% 12% US retirement advisor assets4 Premier Other VA US National & RIA retire
Slide 7: Disciplined execution delivering strong returns
Group Disciplined execution delivering strong returns Strategic choices High quality earnings Strong returns IFRS income by revenue source, % Value over volume Other 26% 7% Insurance Spread margin income 26% 16% Leveraging strengths 77% 2016 IFRS ROE1 2014 2015 2016 Life Fee income 29% 22% Asset Mgt
Slide 8: Asia: Compounding revenues
Asia Compounding revenues New & renewal premiums Prudential growth Life weighted premium income1,2, £bn CER 2007-2016 4x Prudential customers4 12.6 2x MSCI Asia 10.4 ex Japan3 7m 15m 8.8 Renewal 7.5 9.1 6.4 Prudential insurance 5.6 7.6 4.8 6.6 penetration5 4.0 5.5 3.6 4.7 3.1 4.1 3.5 2.5 2.9 New 2.1
Slide 9: Asia: Delivering compounding growth
Asia Delivering compounding growth IFRS operating profit1, £m 2x3 2017 objective2 1,644 1,286 2x 1,108 1,058 959 1,826 757 2x 579 476 266 728 199 226 613 427 504 508 285 350 237 109 89 111 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H 2H 1. Comparatives have been stated on an actual
Slide 10: US & UK: Disciplined asset growth
US & UK Disciplined asset growth US UK Delivering VA net inflows in an evolving Capital light business model environment Increasing separate account assets underpin 8% Strong demand for PruFund product range earnings1 growth Improving M&G fund performance and Strong capital position growing FUM VA n
Slide 11: Priorities
Group Priorities Leverage scale Accelerate Expand health & protection Asia Penetrate wealth Adapt product offerings Grow US & Utilise competitive advantages Enhance UK Rational capital deployment Leverage Group strength Optimise Capital Adapt to changing regulation Significant optionality 11
Slide 12: Long-term track record
Group Long-term track record IFRS operating profit1,2, £m New business profit1,2, £m Free surplus generation1,2,3, £m 4.0x 5.0x 5.5x 4,256 3,088 3,588 3,969 CAGR CAGR 2,609 3,043 CAGR +15% +17% 3,154 +19% 2,586 2,937 2,104 2,454 2,057 2,504 2,064 1,776 1,986 2,000 1,671 1,811 1,506 1,415 1,450 1,438
Slide 13: Summary
Group Summary Clear strategy focused on significant structural growth opportunities Leadership positions and capabilities underpin peer / market outperformance Resilient operating model with clear value discipline Significant headroom from leveraging scale, efficiencies and skills Well pos
Slide 14: Prudential plc
Prudential plc Morgan Stanley European Financials Conference 21 March 2017 14
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