Prudential UK & Europe

Prudential UK is a leading life and pensions provider to approximately seven million customers in the United Kingdom.

The strategy of the business is to focus on balancing writing new business with sustainable cash generation and capital preservation.

By competing selectively in areas of the retirement savings and income markets, the business generates attractive returns on capital employed and surplus capital for investment in profitable opportunities for the Group. It also provides strong support to credit rating at a Group level.

It is a leader in the individual annuities and with-profits market as well as being the market-leader in the provision of AVC schemes and the dominant AVC top-up provider to the UK public sector.

The business has a number of major competitive advantages including significant longevity experience, multi-asset investment capabilities, a strong investment track record, a highly respected brand and financial strength.

2010 Half Year Highlights:

• The main With-Profits Fund is one of the largest and financially strongest in the UK
• The strong long-term investment performance achieved by the Fund has enabled the business to provide customers with good annualised returns, especially when compared with many other investment options
• Won ‘Best Annuity Provider’ award at 2010 Professional Adviser Awards
• AVC provider to 65 of the 99 local government schemes in England, Scotland and Wales
• Internal Rate of Return (IRR) of excess 15 per cent