PRUDENTIAL PLC JONATHAN BLOOMER GROUP CHIEF EXECUTIVE MERRILL LYNCH CONFERENCE 10 OCTOBER 2002

1. PRUDENTIAL PLC JONATHAN BLOOMER GROUP CHIEF EXECUTIVE MERRILL LYNCH CONFERENCE 10 OCTOBER 2002 Strength & Opportunity Through Diversity

2. AN INDUSTRY WITH COMPELLING DEMOGRAPHICS Western Markets • Increased longevity: male life expectancy 66 years in 1950, 75 year in 2000 • Ageing populations: median age 38 years in 2000, rising to 45 years in 2030 • Large baby boomer generations: percentage of elderly in United States will increase to 20% by 2010 • Increased affluence Funding for retirement is a growing issue Source: “An Ageing World”, US Census Bureau, November 2001

3. AN INDUSTRY WITH COMPELLING DEMOGRAPHICS Emerging Markets • High savings rates • Increasing urbanisation • Improving education standards • Rapidly-growing middle classes • Young populations: median age 27 years in 2000, rising to 37 years in 2030 Population (m) China 1,266 India 1,007 Indonesia 210 Japan 127 Vietnam 78 Philippines 81 Thailand 63 S Korea 47 Malaysia 23 Taiwan 22 Hong Kong 7 Singapore ___4 Total 2,935 Funding for retirement is a growing issue Source: “An Ageing World”, US Census Bureau, November 2001

4. PRUDENTIAL PLC GROUP OVERVIEW • Focus on medium and long term savings • A leading international retail financial services player: • UK/Europe • US • Asia • Scale and resources for future growth • Balancing short-term and long-term strategies to deliver value to our shareholders

5. CLEAR BENEFIT FROM STRONG POSITIONS IN INTERNATIONAL MARKETS APE sales by region NBAP by region 2002 H1 £397m £927m 1999 H1 £778m £275m UK & Europe US Asia

6. FUNDAMENTALS DESPITE DIFFICULT EQUITY MARKET CONDITIONS • Financially sound, with AAA ratings from S&P and Moody’s • Inevitable beneficiary of the “flight to quality” • Outstanding international portfolio of businesses • Long-term industry demographics are compelling • Underlying performance of the business remains strong

7. BUSINESS MODEL IN EVERY MARKET WHERE WE OPERATE • Scale presence • Product expansion • Multi-channel distribution • Low cost base/scale economics • Balance of growth and return on capital

8. GROUP STRUCTURE UK & Europe USA Asia

9. UK OPERATIONS UK & Europe USA Asia

10. UK MARKET: INDUSTRY DYNAMICS £27BN ANNUAL SAVINGS SHORTFALL • Medium and long term savings • Focus on pensions, annuities, with-profit bonds • 7 million customers • Excellence in fund management • Fixed income; retail mutual funds • 550,000 retail customers • World’s largest digital bank • 2.3 million customers

11. UK LIFE INSURANCE OPERATIONS: STRATEGY • Focus on high-growth medium to long term savings • Leading positions in key profitable product areas • Continuing to diversify distribution channels • Reinvesting in the UK’s leading life insurance brand • Transformation of cost base

12. ONE OF THE STRONGEST LIFE FUNDS IN THE UK Asset mix at 30th June 2002 • Form 9 ratio of 11%* at 30 June 2002 • No use of • future profits • subordinated debt • contingent loans • financial reinsurance • Resilience scenario • fall in equity values 17% • fall in property values of 20% • rise in bond values of 8% * incorporating FSA resilience rules of 28.6.02.

13. LOW COST BASE ESSENTIAL TO COMPETE PROFITABLY 2001 2002 2003 2004 £m* 200 • Total annual savings of £200m from 2004 • One-off cost of c£170m • £65m positive impact on new business achieved profit by 2004 175 200 Annual Savings 165 145 150 100 85 100 50 10m 0 Transition Costs (50) (40) (40) November 2001 target (40) (40) Revised June 2002 target (90) (90) (100) *Measured in 2001 £

14. M&G: SUSTAINING GOOD FUND MANAGEMENT PERFORMANCE ABOVE AVERAGE PERFORMANCE IN DIFFICULT CONDITIONS M&G's position out of top 40 fund managers • Life fund out-performance is key competitive advantage • Solid 2 year records established and maintained • Building on this base to improve key 3 year positions • Strong individual performers within the fund range Source: The Research Department - group weighted performance over rolling periods (M&G unit trusts)

15. EGG: SUSTAINABLE PROFITABILITY customer profitability customer growth Acquisition costs falling Revenue per customer continues to grow - up 10% in the half year Total customers up to 2.31 million

16. US OPERATIONS UK & Europe USA Asia

17. US MARKET DYNAMICS • 70% of the world’s retirement assets • Demographics remain very attractive • 102% increase in elderly population from 2000 to 2030 • life expectancy is increasing • workers are retiring younger • Traditional retirement funding is disappearing • future retirees unlikely to receive Social Security • retirement plans moving from Defined Benefit to Defined Contribution Sources: “An Aging World”, US Census Bureau, November 2001; The White House

18. JACKSON NATIONAL LIFE: STRATEGY SCALE PLAYER IN CHOSEN SEGMENTS • Leading player in annuities market • Successfully diversified product lines to suit different economic environments • Access to strong and growing distribution channels • Competitive advantage through low cost structure • Growth organically and by selected acquisitions

19. STRONG SALES IN A DIFFICULT ENVIRONMENT VARIABLE ANNUITIES Successful launch of Perspective II FIXED ANNUITIES Continued strong growth

20. ASIAN OPERATIONS UK & Europe USA Asia

21. TREMENDOUS LONG-TERM POTENTIAL IN ASIA Life Penetration • Regional economies showing signs of recovery • structurally stronger than 97/98 crisis • Compelling demographics remain • vast populations with emerging middle classes • low levels of state-sponsored benefits • increasing urbanisation Penetration, 19991 12% 10% S Korea Japan 8% 6% Taiwan Hong Kong 4% India Singapore Malaysia China 2% Thailand Philippines Indonesia 0% Vietnam 1,000 10,000 100,000 Per Capita GDP2, US$ (log scale) 1. Source: Swiss Re; 2. Source: CIA = $1bn in new business premiums

22. UNIQUE OPPORTUNITY FOR MEDIUM AND LONG TERM SAVINGS Percent of holdings by asset class • The opportunity: • existing levels of wealth • strong long-term economic growth projections • high personal savings rates • affinity for deposits now changing Other/Misc Mutual Funds Equities Fixed Income Securities Pensions Life Insurance Cash/Deposits 44 8 22 5 63 35 26 3 3 4 1 50 Average Income per household (US$k) Source: Central Banks, World Bank, SEC Division of Investment Management

23. ASIAN OPERATIONS

24. LEADING REGIONAL LIFE INSURANCE PLAYER Number of markets with top 5 position • AIG 6-8 Prudential • Manulife • Allianz 4-5 • Great Eastern • NY Life • ING 2-3 • Cathay Life • Aegon • Aviva • Mass Mutual • US Prudential • RSA • Sun Life • Zurich • Axa 0-1 1-2 3-6 7-8 9+ Number of market presences/licences Source: PCA analysis

25. STRONG TRACK RECORD OF DELIVERING VALUE • Established markets continuing strong growth • Increasing scale in vast markets of North Asia and Greater China • Rapidly building greenfield operations • Building on bancassurance success and continuing to diversify distribution • Increasing scale and profitability of mutual fund operations • Managing life portfolio for sustained profitability

26. ASIA: MODEST CAPITAL REQUIREMENT NET CAPITAL FLOWS 274 • Total net capital 1994 to 1H02: £723m • £100-150m per annum expected going forward • More mature businesses increasingly repatriating capital 144 158 76 32 22 11 7 (1)

27. 2002 INTERIM RESULTS HIGHLIGHTS • 36% increase in total sales of £13.7bn • 2% increase in APE insurance sales to £926m • 50% increase in net sales of investment products to £826m • 16% increase in new business achieved profits to £397m • Group margin increased to 43%, from 38% at 2001 year-end • Dividend increased 2.3% to 8.9p • Strong free asset ratio of 11%

28. DRIVING THE BUSINESS FORWARD • Internationally-diversified retail financial services group • AAA financial strength • Resources to deliver continued growth in sales and profits • Focus on profitability and return on capital • Good start towards doubling the value of the group

29. QUESTIONS