Message from Mark Tucker

Message from Mark Tucker, Group Chief Executive, to our customers.

Background

The events in worldwide financial markets in recent weeks will understandably be a cause of concern for many of our customers. This being so, we want to reassure you about the financial stability of the Prudential Group and reaffirm the confidence you can have in our business.

The Group

Prudential plc is an international retail financial services group founded 160 years ago and with significant operations in the UK, Asia and the United States. Our mission is to promote the financial well-being of our customers and their families, with a particular focus on saving for retirement and security in retirement. Around the world, Prudential has more than 21 million customers, policyholders and unit holders with more than £256 billion of assets under management. Our strong brands, investment expertise and financial strength are core to our reputation as a trusted provider of savings products and annuities, with a track record for effective protection of our customers' assets in adverse economic conditions no less than in good times.

Mark Tucker, Group Chief Executive, says:

"I think it particularly important at this time to provide you with reassurance that Prudential is in a strong and healthy position. Ours is a long-term business - one that is built on 160 years of financial prudence - and one that has been, and will continue to be, managed for the long-term benefit of our customers and shareholders. We have a clear focus on delivering good value to these stakeholders and our balance sheet, capital and cash position are very resilient. Our business model, with its geographic diversification and strong emphasis on applying rigorous risk management procedures, is also extremely robust. At Prudential, it is very much business as usual. We are in a strong position to ensure that the needs of both our customers and our shareholders continue to be met, and we will continue to put them at the heart of everything we do".

Our Financial Strength

Since being established in 1848, Prudential has experienced and weathered many varied and difficult market conditions. We are a financially strong company with a reliable track record and this is reflected in our financial strength and debt ratings from the international providers of independent credit ratings covering all major industry sectors. Prudential Assurance Company's AA+ financial strength rating with Standard & Poor's, for example, is the second highest rating possible.

About Your Investments

The current crisis in financial markets is certainly the most serious in recent economic history and there have been several high profile casualties in the financial services sector. The good news is that at Prudential we run well diversified portfolios, so we have seen only a limited impact on our funds as a whole. In addition, our managed funds are diversified into other assets such as fixed income and cash, which also helps to offset the impact from weaker stock market performance.

We have also been able to take some measures to reduce the risk profile of our funds in the last couple of years.

We believe that our strategy going forward will allow us to continue delivering quality investment products and performance for our customers over the medium to long-term.

We hope that this summary information on the position of our businesses will reassure you - whether you are customers, potential customers or shareholders that Prudential Group is in a strong financial position. While the financial environment may be volatile for a while yet, it is very much business-as-usual for us and we remain as committed as ever to acting in your best interests at all times.