Prudential plc Annual Report 2023
For Every Life, For Every Future
A strategy to protect Asia & Africa
We are inspired by our purpose
For Every Life, For Every Future
Our mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions.
This report contains references to Prudential plc's website. These references are for readers' convenience only and information included on Prudential plc's website is not incorporated in, and does not form part of, this annual report.
The Directors' Report of Prudential plc for the year ended 31 December 2023 is set out on pages 150 to 197 and 365 to 404 and includes the sections of the annual report referred to in these pages.
Strategic report1
Chair's statement 10
Our clear and simple strategy 12
Market review 14
Strategy in action 16
Group-wide enablers 22
Strategic and operating review 24
Business model 30
Key financial performance indicators 32
Financial review 34
Segment discussion 47
Risk review 56
Viability statement 72
Risk factors 74
Section 172 and stakeholder engagement 88
Sustainability 97
TCFD 119
Reference tables 128
Non-financial and sustainability information statement 149
Governance 150
Governance at a glance 152
Diversity 154
Our leadership 155
Corporate governance 163
How we operate 165
Risk management and internal control 176
Committee reports 178
Statutory and regulatory disclosures 195
Index to principal Directors' report disclosures 197
Directors' remuneration report 198
Annual statement from the Chair of Remuneration Committee 200
Remuneration at a glance 204
Annual report on remuneration 206
Additional remuneration disclosures 223
Financial statements 226
European Embedded Value (EEV) Basis Results 340
Additional information 364
Index to the additional unaudited financial information 366
Glossary 393
Shareholder information 399
How to contact us 402
Our reporting suite
Annual Report
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Sustainability Report
Strategic reportGovernanceDirectors' remuneration reportFinancial statementsEEV basis resultsAdditional information
Strategic Report
Strategic Report
Chair's statement 10
Our clear and simple strategy 12
Market review 14
Strategy in action 16
Group-wide enablers 22
Strategic and operating review 24
Business model 30
Key financial performance indicators 32
Financial review 34
Segment discussion 47
Risk review 56
Viability statement 72
Risk factors 74
Section 172 and stakeholder engagement 88
Sustainability 97
TCFD 119
Reference table 128
Non-financial and sustainability information statement 149
Key highlights of the year
Delivering the next chapter of growth
Financial highlights(1)(3)
New business profit
$3.1bn
+45% CER(2) +43% AER(2)
Adjusted operating profit
$2.9bn
+8% CER +6% AER
Operating free surplus generated from in-force insurance and asset management business
$2.7bn
+1% CER (1)% AER
Operating free surplus generated
2.0bn
(8)% CER (8)% AER
IFRS profit after tax
$1.7bn
up from a loss after tax of $(1.0bn) AER(3) in 2022
IFRS shareholders' equity
$17.8bn
+7% AER(3)
Adjusted IFRS shareholders' equity
$37.3bn
+6% AER(3)
EEV shareholders' equity
$45.3bn
+7% AER
(1) The financial highlights presented above are the key financial metrics Prudential's management use to assess and manage the performance and position of the business. In addition to the metrics prepared in accordance with IFRS standards - IFRS profit after tax and IFRS shareholders' equity - additional metrics are prepared on alternative bases. The presentation of these key metrics is not intended to be considered as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS Standards. The definitions of the key metrics we use to discuss our performance in this report are set out in the "Definition of performance metrics" section later in this document, including, where relevant, references to where these metrics are reconciled to the most directly comparable IFRS measure.
(2) CER - Constant exchange rates, AER - Actual exchange rates.See note A1 to the IFRS financial statements for more detail on our exchange rate presentation.
(3) IFRS Comparatives for 2022 have been restated to reflect the retrospective application of IFRS 17. See note A2.1 to the financial statements for further information and reconciliation.
(4) The objectives assume exchange rates at December 2022 and economic assumptions made by Prudential in calculating the EEV basis supplementary information for the year ended 31 December 2022, and are based on regulatory and solvency regimes applicable across the Group at the time the objectives were set. The objectives assume that existing EEV and Free Surplus methodology at December 2022 will be applicable over the period.
Our key financial objectives:
These are a very strong set of results in a challenging environment, driven by our focus on execution. It is an illustration of the strength of both our agency and bancassurance channels as well as an affirmation of our leadership position in many of our key markets."
Anil Wadhwani, Chief Executive Officer
Growing new business profit at
15-20 %
compound annual growth between 2022 and 20274
New business profit growth of 45% in 2023
Achieving
double-digit
compound annual growth in operating free surplus generated from in-force insurance and asset management business between 2022 and 20274
Stable in 2023, as we invest in our strategic pillars and new business
Our business at a glance
A trusted partner for millions
Our life and health insurance and asset management solutions benefit over 18 million customers across 24 markets in Asia and Africa. We are headquartered in Hong Kong, and have dual primary listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU).
Our markets
Life insurance - offering a range of products including health and protection Asset management
Our marketsLife business Market ranking1
APE SalesTop 10 asset manager2
Eastspring funds under management or advice3
Africa
Top 5 in 6 markets
$158m
(1) As reported at full year 2023 unless otherwise specified. Sources include formal (eg competitors results release, local regulators and insurance association) and informal
(industry exchange) market share. Ranking based on new business (APE sales, weighted new business premium, full year premium or weighted first year premium) or Gross Written Premium depending on availability of data. Rankings in the case of Chinese Mainland, Taiwan and Myanmar are among foreign insurers, and for India is among private companies. Countries based on nine months ended September 2023: Philippines, Ghana (Africa) and Kenya (Africa) and full year 2022: Laos, Zambia (Africa) and Togo (Africa) and full year 2020: Nigeria (Africa).
(2) As reported at full year 2023. Sources include local regulators, asset management association, investment data providers and research companies (eg Morningstar, Lipper).
Rankings are based on total funds under management (including discretionary funds, where available) of onshore domiciled funds or public mutual funds of the respective markets.
(3) Full year 2023 funds under management or advice based on the country where the funds are contractually managed. Excludes funds managed in Luxembourg.
GovernanceDirectors' remuneration reportFinancial statementsEEV basis resultsAdditional information
Investment case
Delivering for our investors
Given the relentless execution focus in implementing our strategy, we are increasingly confident in achieving our 2027 financial and strategic objectives and in accelerating value creation for our shareholders."
Anil Wadhwani
Chief Executive Officer
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Prudential plc published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 17:51:07 UTC.