2019 $m
|
2018 $m
| |||||
Asia
|
US
|
Group total
|
Group total
| |||
Note
| ||||||
Continuing operations:
| ||||||
New business
|
3
|
3,522
|
883
|
4,405
|
4,707
| |
Business in force
|
4
|
2,366
|
874
|
3,240
|
3,975
| |
Long-term business
|
5,888
|
1,757
|
7,645
|
8,682
| ||
Asset management
|
250
|
25
|
275
|
216
| ||
Operating profit from long-term business and asset management
|
6,138
|
1,782
|
7,920
|
8,898
| ||
Other income and expenditurenote (i)
|
(923)
|
(969)
| ||||
Restructuring costsnote (ii)
|
(92)
|
(63)
| ||||
Operating profit from continuing operations
|
6,905
|
7,866
| ||||
Short-term fluctuations in investment returns
|
5
|
3,254
|
(3,335)
| |||
Effect of changes in economic assumptions
|
6
|
(1,868)
|
416
| |||
Impact of NAIC reform, hedge modelling and other related changes in the US
|
7
|
(3,457)
|
-
| |||
Mark-to-market value movements on core structural borrowings
|
8
|
(466)
|
733
| |||
Loss attaching to corporate transactions
|
9
|
(207)
|
(100)
| |||
Non-operating loss from continuing operations
|
(2,744)
|
(2,286)
| ||||
Profit for the year from continuing operations
|
4,161
|
5,580
| ||||
(Loss) profit for the year from discontinued operations
|
(4,797)
|
546
| ||||
(Loss) profit for the year
|
(636)
|
6,126
| ||||
Attributable to:
| ||||||
Equity holders of the Company:
| ||||||
From continuing operations
|
4,152
|
5,576
| ||||
From discontinued operations
|
(4,797)
|
546
| ||||
Non-controlling interests from continuing operations
|
9
|
4
| ||||
(636)
|
6,126
| |||||
EEV basis basic earnings per share
| ||||||
2019
|
2018
| |||||
Based on operating profit from continuing operations after non-controlling interests (in cents)
|
266.6¢
|
305.3¢
| ||||
Based on (loss) profit for the year attributable to equity holders of the Company (in cents)
| ||||||
From continuing operations
|
160.5¢
|
216.5¢
| ||||
From discontinued operations
|
(185.4)¢
|
21.2¢
| ||||
(24.9)¢
|
237.7¢
| |||||
Weighted average number of shares in the year (millions)
|
2,587
|
2,575
|
2019 $m
|
2018* $m
| |||||||
Asia
|
US
|
Other
|
Total continuing operations
|
Discontinued UK and Europe operations
|
Group
total
|
Group total
| ||
Continuing operations:
| ||||||||
Operating profit from long-term and asset management businesses
|
6,138
|
1,782
|
-
|
7,920
|
7,920
|
8,898
| ||
Other income and expenditure
|
-
|
-
|
(923)
|
(923)
|
(923)
|
(969)
| ||
Restructuring costs
|
(31)
|
(5)
|
(56)
|
(92)
|
(92)
|
(63)
| ||
Operating profit (loss) from continuing operations
|
6,107
|
1,777
|
(979)
|
6,905
|
6,905
|
7,866
| ||
Non-operating profit (loss) from continuing operations
|
1,962
|
(3,802)
|
(904)
|
(2,744)
|
(2,744)
|
(2,286)
| ||
Profit (loss) for the year from continuing operations
|
8,069
|
(2,025)
|
(1,883)
|
4,161
|
4,161
|
5,580
| ||
(Loss) profit for the year from discontinued operationsnote (iv)
|
-
|
-
|
-
|
-
|
(4,797)
|
(4,797)
|
546
| |
Profit (loss) for the year
|
8,069
|
(2,025)
|
(1,883)
|
4,161
|
(4,797)
|
(636)
|
6,126
| |
Non-controlling interests
|
(6)
|
-
|
(3)
|
(9)
|
-
|
(9)
|
(4)
| |
Foreign exchange movements on operations
|
409
|
-
|
34
|
443
|
223
|
666
|
(1,574)
| |
Intra-group dividends and investment in operationsnote (i)
|
(1,270)
|
(525)
|
7,276
|
5,481
|
(5,481)
|
-
|
-
| |
External dividends
|
-
|
-
|
(1,634)
|
(1,634)
|
-
|
(1,634)
|
(1,662)
| |
Mark-to-market value movements on Jackson assets backing surplus and required capital
|
-
|
206
|
-
|
206
|
-
|
206
|
(127)
| |
Other movementsnote (ii)
|
25
|
(23)
|
(40)
|
(38)
|
133
|
95
|
176
| |
Demerger dividend in specie of M&G plc
|
-
|
-
|
-
|
-
|
(7,379)
|
(7,379)
|
-
| |
Net increase (decrease) in shareholders' equity
|
7,227
|
(2,367)
|
3,750
|
8,610
|
(17,301)
|
(8,691)
|
2,935
| |
Shareholders' equity at beginning of year
|
32,008
|
18,709
|
(4,616)
|
46,101
|
17,301
|
63,402
|
60,467
| |
Shareholders' equity at end of year
|
39,235
|
16,342
|
(866)
|
54,711
|
-
|
54,711
|
63,402
| |
Representing:
| ||||||||
Long-term business
|
37,843
|
16,336
|
-
|
54,179
|
-
|
54,179
|
64,174
| |
Asset management and other
|
596
|
6
|
(892)
|
(290)
|
-
|
(290)
|
(2,874)
| |
Goodwillnote (v)
|
796
|
-
|
26
|
822
|
-
|
822
|
2,102
| |
Shareholders' equity at end of year
|
39,235
|
16,342
|
(866)
|
54,711
|
-
|
54,711
|
63,402
| |
Shareholders' equity per share at end of yearnote (iii)
|
1,508¢
|
628¢
|
(33)¢
|
2,103¢
|
-
|
2,103¢
|
2,445¢
| |
Long-term business
|
30,985
|
18,658
|
-
|
49,643
|
14,531
|
64,174
|
62,116
| |
Asset management and other
|
389
|
51
|
(4,616)
|
(4,176)
|
1,302
|
(2,874)
|
(3,621)
| |
Goodwillnote (v)
|
634
|
-
|
-
|
634
|
1,468
|
2,102
|
1,972
| |
Shareholders' equity at beginning of year
|
32,008
|
18,709
|
(4,616)
|
46,101
|
17,301
|
63,402
|
60,467
| |
Shareholders' equity per share at beginning of yearnote (iii)
|
1,234¢
|
722¢
|
(178)¢
|
1,778¢
|
667¢
|
2,445¢
|
2,337¢
|
31 Dec 2019 $m
|
31 Dec 2018 $m
| |||
Assets less liabilities before deduction of insurance funds
|
396,241
|
549,264
| ||
Less insurance funds:*
| ||||
Policyholder liabilities (net of reinsurers' share) and unallocated surplus of with-profits funds
|
(376,572)
|
(527,273)
| ||
Shareholders' accrued interest in the long-term business
|
35,234
|
41,434
| ||
(341,338)
|
(485,839)
| |||
Less non-controlling interests
|
(192)
|
(23)
| ||
Total net assets attributable to equity holders of the Company
|
54,711
|
63,402
| ||
Share capital
|
172
|
166
| ||
Share premium
|
2,625
|
2,502
| ||
IFRS basis shareholders' reserves
|
16,680
|
19,300
| ||
IFRS basis shareholders' equity
|
19,477
|
21,968
| ||
Shareholders' accrued interest in the long-term business
|
35,234
|
41,434
| ||
EEV basis shareholders' equity
|
54,711
|
63,402
| ||
Representing:
| ||||
Continuing operations
|
54,711
|
46,101
| ||
Discontinued UK and Europe operations
|
-
|
17,301
| ||
EEV basis shareholders' equity
|
54,711
|
63,402
|
Actual exchange rate
|
Constant exchange rate
| |||||||||||
2019 $m
|
2018 $m
|
Change %
|
2018 $m
|
Change %
| ||||||||
Annual
premium
equivalent
|
New
business
profit
|
Annual
premium
equivalent
|
New
business
profit
|
Annual
premium
equivalent
|
New
business
profit
|
Annual
premium
equivalent
|
New
business
profit
|
Annual
premium
equivalent
|
New
business
profit
| |||
Asia
|
5,161
|
3,522
|
4,999
|
3,477
|
3%
|
1%
|
4,959
|
3,460
|
4%
|
2%
| ||
US
|
2,223
|
883
|
2,059
|
1,230
|
8%
|
(28)%
|
2,059
|
1,230
|
8%
|
(28)%
| ||
Group total
|
7,384
|
4,405
|
7,058
|
4,707
|
5%
|
(6)%
|
7,018
|
4,690
|
5%
|
(6)%
|
Actual exchange rate
|
Constant exchange rate
| ||||||
2019 $m
|
2018 $m
|
Change %
|
2018 $m
|
Change %
| |||
Continuing operations:
| |||||||
Asia
| |||||||
Long-term business
|
5,888
|
5,858
|
1%
|
5,843
|
1%
| ||
Asset management
|
250
|
212
|
18%
|
209
|
20%
| ||
Total
|
6,138
|
6,070
|
1%
|
6,052
|
1%
| ||
US
| |||||||
Long-term business
|
1,757
|
2,824
|
(38)%
|
2,824
|
(38)%
| ||
Asset management
|
25
|
4
|
525%
|
4
|
525%
| ||
Total
|
1,782
|
2,828
|
(37)%
|
2,828
|
(37)%
| ||
Operating profit from long-term business and asset management
|
7,920
|
8,898
|
(11)%
|
8,880
|
(11)%
| ||
Other income and expenditure
|
(923)
|
(969)
|
5%
|
(936)
|
1%
| ||
Restructuring costs
|
(92)
|
(63)
|
(46)%
|
(61)
|
(51)%
| ||
Operating profit from continuing operations
|
6,905
|
7,866
|
(12)%
|
7,883
|
(12)%
| ||
Short-term fluctuations in investment returns
|
3,254
|
(3,335)
|
(3,333)
| ||||
Effect of changes in economic assumptions
|
(1,868)
|
416
|
417
| ||||
Impact of NAIC reform, hedge modelling and other related changes in the US
|
(3,457)
|
-
|
-
| ||||
Mark-to-market value movements on core structural borrowings
|
(466)
|
733
|
702
| ||||
Loss attaching to corporate transactions
|
(207)
|
(100)
|
(99)
| ||||
Total non-operating loss from continuing operations
|
(2,744)
|
(2,286)
|
(2,313)
| ||||
Profit for the year from continuing operations
|
4,161
|
5,580
|
(25)%
|
5,570
|
(25)%
| ||
(Loss) profit for the year from discontinued operations
|
(4,797)
|
546
|
(979)%
|
522
|
(1019)%
| ||
(Loss) profit for the year
|
(636)
|
6,126
|
(110)%
|
6,092
|
(110)%
|
EEV basis basic earnings per share
| ||||||||
Actual exchange rate
|
Constant exchange rate
| |||||||
2019
|
2018
|
Change %
|
2018
|
Change %
| ||||
Based on operating profit from continuing operations after non-controlling interests (in cents)
|
266.6¢
|
305.3¢
|
(13)%
|
306.1¢
|
(13)%
| |||
Based on (loss) profit for the year attributable to equity holders of the Company (in cents):
| ||||||||
From continuing operations
|
160.5¢
|
216.5¢
|
(26)%
|
216.3¢
|
(26)%
| |||
From discontinued operations
|
(185.4)¢
|
21.2¢
|
(975)%
|
20.3¢
|
(1013)%
| |||
(24.9)¢
|
237.7¢
|
(110)%
|
236.6¢
|
(111)%
|
2019
| ||||||
Annual premium
|
Present value
of new business
|
New business
|
New business margin
| |||
equivalents (APE)
|
premiums (PVNBP)
|
contribution
|
APE
|
PVNBP
| ||
$m
|
$m
|
$m
|
%
|
%
| ||
note 16
|
note 16
|
note (i)
| ||||
Asianote (ii)
|
5,161
|
29,244
|
3,522
|
68%
|
12.0%
| |
US
|
2,223
|
22,231
|
883
|
40%
|
4.0%
| |
Group total
|
7,384
|
51,475
|
4,405
|
60%
|
8.6%
| |
2018
| ||||||
Annual premium
|
Present value
of new business
|
New business
|
New business margin
| |||
equivalents (APE)
|
premiums (PVNBP)
|
contribution
|
APE
|
PVNBP
| ||
$m
|
$m
|
$m
|
%
|
%
| ||
note 16
|
note 16
|
note (i)
| ||||
Asianote (ii)
|
4,999
|
27,711
|
3,477
|
70%
|
12.5%
| |
US
|
2,059
|
20,593
|
1,230
|
60%
|
6.0%
| |
Group total
|
7,058
|
48,304
|
4,707
|
67%
|
9.7%
|
Asia $m
|
US $m
|
Group total $m
| ||
2018 new business contribution
|
3,477
|
1,230
|
4,707
| |
Foreign exchange movement
|
(17)
|
-
|
(17)
| |
Effect of changes in interest rates and other economic assumptions
|
(35)
|
(155)
|
(190)
| |
Impact of US EEV hedge modelling enhancementsnote 7
|
-
|
(114)
|
(114)
| |
Sales volume, business and product mix and other items
|
97
|
(78)
|
19
| |
2019 new business contribution
|
3,522
|
883
|
4,405
|
2019 $m
|
2018 $m
| ||||
AER
|
CER
| ||||
China JV
|
262
|
199
|
190
| ||
Hong Kong
|
2,042
|
2,309
|
2,310
| ||
Indonesia
|
227
|
163
|
163
| ||
Taiwan
|
75
|
61
|
56
| ||
Other
|
916
|
745
|
741
| ||
Total Asia
|
3,522
|
3,477
|
3,460
|
2019 $m
|
2018 $m
| ||||||
Asia
|
US
|
Group
total
|
Asia
|
US
|
Group
total
| ||
Unwind of discount and other expected returnsnote (i)
|
1,542
|
728
|
2,270
|
1,626
|
1,176
|
2,802
| |
Effect of changes in operating assumptionsnote (ii)
|
539
|
1
|
540
|
457
|
154
|
611
| |
Experience variances and other itemsnote (iii)
|
285
|
145
|
430
|
298
|
264
|
562
| |
Total operating profit from long-term business in force
|
2,366
|
874
|
3,240
|
2,381
|
1,594
|
3,975
|
Asia $m
|
US $m
|
Group total $m
| |||
2018 unwind of discount and other expected returns
|
1,626
|
1,176
|
2,802
| ||
Foreign exchange movement
|
(12)
|
-
|
(12)
| ||
Effect of changes in interest rates and other economic assumptions
|
(234)
|
(104)
|
(338)
| ||
Impact of US EEV hedge modelling enhancementsnote 7
|
-
|
(210)
|
(210)
| ||
Growth in opening value of in-force business and other items
|
162
|
(134)
|
28
| ||
2019 unwind of discount and other expected returns
|
1,542
|
728
|
2,270
|
2019 $m
|
2018 $m
| ||||
Spread experience variance
|
38
|
52
| |||
Amortisation of interest-related realised gains and losses
|
102
|
123
| |||
Other items
|
5
|
89
| |||
Total US experience variances and other items
|
145
|
264
|
2019 $m
|
2018 $m
| ||
Asia
| |||
Hong Kong
|
1,526
|
(737)
| |
Indonesia
|
(14)
|
(103)
| |
Malaysia
|
(20)
|
(109)
| |
Singapore
|
338
|
(311)
| |
Taiwan
|
147
|
(37)
| |
Thailand
|
319
|
(61)
| |
Other
|
155
|
(16)
| |
Total Asianote (i)
|
2,451
|
(1,374)
| |
US
| |||
Investment return related experience on fixed income securitiesnote (ii)
|
(243)
|
80
| |
Investment return related impact due to changed expectation of profits on in-force variable annuity business in future periods based on current period separate account return, net of related hedging activity and other itemsnote (iii)
|
1,119
|
(2,057)
| |
Total US
|
876
|
(1,977)
| |
Other operations
|
(73)
|
16
| |
Group total
|
3,254
|
(3,335)
|
2019 $m
|
2018 $m
| ||
Asia
| |||
Hong Kong
|
(853)
|
220
| |
Indonesia
|
141
|
(126)
| |
Malaysia
|
127
|
(25)
| |
Singapore
|
18
|
93
| |
Taiwan
|
(142)
|
(19)
| |
Thailand
|
(220)
|
37
| |
Other
|
262
|
(27)
| |
Total Asianote (i)
|
(667)
|
153
| |
US
| |||
Variable annuity businessnote (ii)
|
(1,556)
|
487
| |
Fixed annuity and other general account businessnote (iii)
|
355
|
(224)
| |
Total US
|
(1,201)
|
263
| |
Group total
|
(1,868)
|
416
|
2019 $m
| ||
Impact of NAIC reform adopted at 31 December 2019note (i)
|
37
| |
Impact of hedge modelling changes and other NAIC reform related changesnote (ii)
|
(3,494)
| |
Total EEV impact of NAIC reform, hedge modelling and other related changes in the US
|
(3,457)
|
Free
surplus
|
Required
capital
|
Total net worth
|
Value of
in-force
business
|
Total
embedded
value
| |||
$m
|
$m
|
$m
|
$m
|
$m
| |||
Impact of NAIC reform adopted at 31 December 2019
|
(64)
|
343
|
279
|
(242)
|
37
|
31 Dec 2019 $m
|
31 Dec 2018 $m
| |||||||
IFRS
basis
|
Mark-to
-market
value
adjustment
|
EEV
basis at
market
value
|
IFRS
basis
|
Mark-to
-market
value
adjustment
|
EEV
basis at
market
value
| |||
Holding company cash and short-term investmentsnote (i)
|
(2,207)
|
-
|
(2,207)
|
(4,121)
|
-
|
(4,121)
| ||
Central borrowings:
| ||||||||
Subordinated debt held post demerger of M&G plcnote (ii)
|
4,304
|
327
|
4,631
|
4,785
|
(138)
|
4,647
| ||
Senior debt
|
690
|
221
|
911
|
658
|
222
|
880
| ||
Bank loan
|
350
|
-
|
350
|
350
|
-
|
350
| ||
Central funds before amounts substituted to M&G plc
|
5,344
|
548
|
5,892
|
5,793
|
84
|
5,877
| ||
Subordinated debt substituted to M&G plc in 2019note (iii)
|
-
|
-
|
-
|
3,718
|
82
|
3,800
| ||
Total central borrowings
|
5,344
|
548
|
5,892
|
9,511
|
166
|
9,677
| ||
Total net borrowings for central operations
|
3,137
|
548
|
3,685
|
5,390
|
166
|
5,556
| ||
Jackson Surplus Notes
|
250
|
85
|
335
|
250
|
67
|
317
| ||
Net core structural borrowings of shareholder-financed businessesnote (iv)
|
3,387
|
633
|
4,020
|
5,640
|
233
|
5,873
|
2019 $m
|
2018 $m
| ||
Mark-to-market value adjustment at beginning of year
|
233
|
1,005
| |
Mark-to-market value adjustment on subordinated debt substituted to M&G plc at beginning of year
|
(82)
|
-
| |
Charge (credit) in respect of mark-to-market movements included in the income statement*
|
466
|
(733)
| |
Effect of foreign exchange movements for pounds sterling denominated debts
|
16
|
(39)
| |
Mark-to-market value adjustment at end of year
|
633
|
233
| |
* Relates to continuing debt only.
|
2019 $m
|
2018 $m
| |
Gain on disposalsnote (i)
|
178
|
-
|
Other corporate transactionsnote (ii)
|
(385)
|
(100)
|
Total
|
(207)
|
(100)
|
2019 $m
| |||||||
Free
surplus
|
Required
capital
|
Total
net worth
|
Value of
in-force business
|
Total
embedded
value
| |||
Group
| |||||||
Shareholders' equity at beginning of year
|
9,587
|
12,542
|
22,129
|
42,045
|
64,174
| ||
Demerger of UK and Europe operations
|
(4,676)
|
(6,513)
|
(11,189)
|
(3,342)
|
(14,531)
| ||
Shareholders' equity at beginning of year from continuing operationsnote
|
4,911
|
6,029
|
10,940
|
38,703
|
49,643
| ||
New business contributionnote 3
|
(1,158)
|
899
|
(259)
|
4,664
|
4,405
| ||
Existing business - transfer to net worth
|
3,081
|
(613)
|
2,468
|
(2,468)
|
-
| ||
Expected return on existing businessnote 4
|
141
|
159
|
300
|
1,970
|
2,270
| ||
Changes in operating assumptions and experience variancesnote 4
|
558
|
103
|
661
|
309
|
970
| ||
Restructuring costs
|
(5)
|
-
|
(5)
|
-
|
(5)
| ||
Operating profit from continuing operations
|
2,617
|
548
|
3,165
|
4,475
|
7,640
| ||
Non-operating profit (loss) from continuing operations
|
(568)
|
262
|
(306)
|
(1,534)
|
(1,840)
| ||
Profit for the year from continuing operations
|
2,049
|
810
|
2,859
|
2,941
|
5,800
| ||
Foreign exchange movements
|
66
|
52
|
118
|
251
|
369
| ||
Intra-group dividends and investment in operations
|
(1,633)
|
-
|
(1,633)
|
-
|
(1,633)
| ||
Other movements
|
2
|
-
|
2
|
(2)
|
-
| ||
Shareholders' equity at end of yearnote
|
5,395
|
6,891
|
12,286
|
41,893
|
54,179
| ||
Asia
| |||||||
Shareholders' equity at beginning of year
|
2,202
|
2,904
|
5,106
|
25,879
|
30,985
| ||
New business contributionnote 3
|
(619)
|
241
|
(378)
|
3,900
|
3,522
| ||
Existing business - transfer to net worth
|
1,914
|
(320)
|
1,594
|
(1,594)
|
-
| ||
Expected return on existing businessnote 4
|
80
|
67
|
147
|
1,395
|
1,542
| ||
Changes in operating assumptions and experience variancesnote 4
|
147
|
116
|
263
|
561
|
824
| ||
Operating profit based on longer-term investment returns
|
1,522
|
104
|
1,626
|
4,262
|
5,888
| ||
Non-operating profit
|
1,195
|
122
|
1,317
|
645
|
1,962
| ||
Profit for the year
|
2,717
|
226
|
2,943
|
4,907
|
7,850
| ||
Foreign exchange movements
|
66
|
52
|
118
|
251
|
369
| ||
Intra-group dividends and investment in operations
|
(1,108)
|
-
|
(1,108)
|
-
|
(1,108)
| ||
Other movements
|
(253)
|
-
|
(253)
|
-
|
(253)
| ||
Shareholders' equity at end of year
|
3,624
|
3,182
|
6,806
|
31,037
|
37,843
| ||
US
| |||||||
Shareholders' equity at beginning of year
|
2,709
|
3,125
|
5,834
|
12,824
|
18,658
| ||
New business contributionnote 3
|
(539)
|
658
|
119
|
764
|
883
| ||
Existing business - transfer to net worth
|
1,167
|
(293)
|
874
|
(874)
|
-
| ||
Expected return on existing businessnote 4
|
61
|
92
|
153
|
575
|
728
| ||
Changes in operating assumptions and experience variancesnote 4
|
411
|
(13)
|
398
|
(252)
|
146
| ||
Restructuring costs
|
(5)
|
-
|
(5)
|
-
|
(5)
| ||
Operating profit based on longer-term investment returns
|
1,095
|
444
|
1,539
|
213
|
1,752
| ||
Non-operating profit (loss)
|
(1,763)
|
140
|
(1,623)
|
(2,179)
|
(3,802)
| ||
Profit (loss) for the year
|
(668)
|
584
|
(84)
|
(1,966)
|
(2,050)
| ||
Intra-group dividends and investment in operations
|
(525)
|
-
|
(525)
|
-
|
(525)
| ||
Other movements
|
255
|
-
|
255
|
(2)
|
253
| ||
Shareholders' equity at end of year
|
1,771
|
3,709
|
5,480
|
10,856
|
16,336
|
31 Dec 2019 $m
|
31 Dec 2018 $m
| |||||||
Asia
|
US
|
Group
total
|
Asia
|
US
|
Group
total
| |||
Value of in-force business before deduction of cost of
capital and time value of options and guarantees
|
32,396
|
11,417
|
43,813
|
27,849
|
15,043
|
42,892
| ||
Cost of capital
|
(866)
|
(370)
|
(1,236)
|
(721)
|
(377)
|
(1,098)
| ||
Time value of options and guarantees*
|
(493)
|
(191)
|
(684)
|
(1,249)
|
(1,842)
|
(3,091)
| ||
Net value of in-force business
|
31,037
|
10,856
|
41,893
|
25,879
|
12,824
|
38,703
| ||
Total net worth
|
6,806
|
5,480
|
12,286
|
5,106
|
5,834
|
10,940
| ||
Total embedded value
|
37,843
|
16,336
|
54,179
|
30,985
|
18,658
|
49,643
|
2019 $m
| |||||||||
Continuing operations
|
Discontinued
UK and Europe
operations
|
Group
total
| |||||||
Asia
|
US
|
Total
insurance
and asset
management
|
Other
| ||||||
note (a)
|
note (b)
|
note (e)
| |||||||
Operating free surplus generated before impact of US EEV hedge modelling enhancements and restructuring costs
|
1,772
|
2,028
|
3,800
|
(923)
|
2,877
| ||||
Impact of US EEV hedge modelling enhancementsnote 7
|
-
|
(903)
|
(903)
|
-
|
(903)
| ||||
Operating free surplus generated before
restructuring costs
|
1,772
|
1,125
|
2,897
|
(923)
|
1,974
| ||||
Restructuring costs
|
(31)
|
(5)
|
(36)
|
(56)
|
(92)
| ||||
Operating free surplus generated
|
1,741
|
1,120
|
2,861
|
(979)
|
1,882
| ||||
Non-operating profit (loss) from continuing operationsnote (f)
|
1,195
|
(1,763)
|
(568)
|
(448)
|
(1,016)
| ||||
Free surplus generated from discontinued operationsnote (g)
|
-
|
-
|
-
|
-
|
2,512
|
2,512
| |||
Free surplus generated in the year
|
2,936
|
(643)
|
2,293
|
(1,427)
|
2,512
|
3,378
| |||
Net cash flows paid to parent companynote (h)
|
(950)
|
(525)
|
(1,475)
|
2,159
|
(684)
|
-
| |||
Demerger dividend in specie of M&G plc
|
-
|
-
|
-
|
-
|
(7,379)
|
(7,379)
| |||
External dividends
|
-
|
-
|
-
|
(1,634)
|
-
|
(1,634)
| |||
Foreign exchange movements on foreign
operations, timing differences and other itemsnote (i)
|
(357)
|
185
|
(172)
|
810
|
(426)
|
212
| |||
Net movement in free surplus
|
1,629
|
(983)
|
646
|
(92)
|
(5,977)
|
(5,423)
| |||
Balance at beginning of year
|
2,591
|
2,760
|
5,351
|
3,831
|
5,977
|
15,159
| |||
Balance at end of yearnote (j)
|
4,220
|
1,777
|
5,997
|
3,739
|
-
|
9,736
| |||
Representing:
| |||||||||
Free surplus excluding distribution rights and
other intangibles
|
3,624
|
1,753
|
5,377
|
1,227
|
-
|
6,604
| |||
Distribution rights and other intangibles
|
596
|
24
|
620
|
2,512
|
-
|
3,132
| |||
4,220
|
1,777
|
5,997
|
3,739
|
-
|
9,736
|
2018 $m
| |||||||||
Continuing operations
|
Discontinued
UK and Europe
operations
|
Group
total
| |||||||
Asia
|
US
|
Total insurance
and asset
management
|
Other
| ||||||
note (a)
|
note (b)
| ||||||||
Operating free surplus generated before
restructuring costs
|
1,563
|
1,895
|
3,458
|
(969)
|
2,489
| ||||
Restructuring costs
|
(25)
|
(23)
|
(48)
|
(15)
|
(63)
| ||||
Operating free surplus generated
|
1,538
|
1,872
|
3,410
|
(984)
|
2,426
| ||||
Non-operating loss from continuing operationsnote (f)
|
(525)
|
(1,124)
|
(1,649)
|
(29)
|
(1,678)
| ||||
Free surplus generated from discontinued operations
|
-
|
-
|
-
|
-
|
2,624
|
2,624
| |||
Free surplus generated in the year
|
1,013
|
748
|
1,761
|
(1,013)
|
2,624
|
3,372
| |||
Net cash flows to parent companynote (h)
|
(916)
|
(452)
|
(1,368)
|
2,259
|
(891)
|
-
| |||
External dividends
|
-
|
-
|
-
|
(1,662)
|
-
|
(1,662)
| |||
Foreign exchange movements, timing differences and other itemsnote (i)
|
(847)
|
(144)
|
(991)
|
1,847
|
(58)
|
798
| |||
Net movement in free surplus
|
(750)
|
152
|
(598)
|
1,431
|
1,675
|
2,508
| |||
Balance at beginning of year
|
3,341
|
2,608
|
5,949
|
2,400
|
4,302
|
12,651
| |||
Balance at end of year
|
2,591
|
2,760
|
5,351
|
3,831
|
5,977
|
15,159
| |||
Representing:
| |||||||||
Free surplus excluding distribution rights and
other intangibles
|
2,050
|
2,733
|
4,783
|
2,300
|
5,968
|
13,051
| |||
Distribution rights and other intangibles
|
541
|
27
|
568
|
1,531
|
9
|
2,108
| |||
2,591
|
2,760
|
5,351
|
3,831
|
5,977
|
15,159
|
2019 $m
|
2018 $m
|
% change
| ||||||
AER
|
CER
|
AER
|
CER
| |||||
Operating free surplus generated from
in-force life business
|
2,141
|
2,003
|
2,004
|
7%
|
7%
| |||
Investment in new businessnote (c)
|
(619)
|
(652)
|
(646)
|
5%
|
4%
| |||
Long-term business
|
1,522
|
1,351
|
1,358
|
13%
|
12%
| |||
Asset management
|
250
|
212
|
209
|
18%
|
20%
| |||
Total Asia
|
1,772
|
1,563
|
1,567
|
13%
|
13%
|
2019 $m
|
2018 $m
|
% change
| |||||
Operating free surplus generated from in-force life business before EEV hedge modelling enhancementsnote (d)
|
2,542
|
2,191
|
16%
| ||||
Impact of EEV hedge modelling enhancementsnote 7
|
(903)
|
-
|
-
| ||||
Operating free surplus generated from
in-force life business
|
1,639
|
2,191
|
(25)%
| ||||
Investment in new businessnote (c)
|
(539)
|
(300)
|
(80)%
| ||||
Long-term business
|
1,100
|
1,891
|
(42)%
| ||||
Asset management
|
25
|
4
|
525%
| ||||
Total US
|
1,125
|
1,895
|
(41)%
|
2019 $m
| ||||||||
Continuing operations
|
Discontinued
UK and
Europe
operations
|
Group
total
| ||||||
Asia
|
US
|
Total insurance
and asset
management
|
Other
| |||||
Foreign exchange movements
|
99
|
-
|
99
|
91
|
77
|
267
| ||
Mark-to-market value movements on Jackson
assets backing surplus and required capital
|
-
|
206
|
206
|
-
|
-
|
206
| ||
Other items (including intra-group loans and other
intra-group transfers between operations and
other non-cash items)*
|
(456)
|
(21)
|
(477)
|
719
|
(503)
|
(261)
| ||
(357)
|
185
|
(172)
|
810
|
(426)
|
212
| |||
* The Group total for other items in 2019 included the effect of the redemption of $0.5 billion of subordinated debt.
| ||||||||
2018 $m
| ||||||||
Continuing operations
|
Discontinued UK and Europe operations
|
Group
total
| ||||||
Asia
|
US
|
Total insurance
and asset
management
|
Other
| |||||
Foreign exchange movements
|
(67)
|
3
|
(64)
|
(170)
|
(377)
|
(611)
| ||
Mark-to-market value movements on Jackson
assets backing surplus and required capital
|
-
|
(127)
|
(127)
|
-
|
-
|
(127)
| ||
Other items (including intra-group loans and other
intra-group transfers between operations and
other non-cash items)*
|
(780)
|
(20)
|
(800)
|
2,017
|
319
|
1,536
| ||
(847)
|
(144)
|
(991)
|
1,847
|
(58)
|
798
|
2019 $m
| ||||||
Asia
|
US
|
Total insurance
and asset
management
|
Other
|
Group total
| ||
Long-term business
|
3,624
|
1,771
|
5,395
|
-
|
5,395
| |
Asset management and other
|
596
|
6
|
602
|
3,739
|
4,341
| |
Total
|
4,220
|
1,777
|
5,997
|
3,739
|
9,736
|
31 Dec 2019 $m
|
31 Dec 2018 $m
| |
Required capitalnote 10
|
6,891
|
6,029
|
Value of in-force business (VIF)note 10
|
41,893
|
38,703
|
Other items*
|
205
|
1,915
|
Total continuing long-term business operations
|
48,989
|
46,647
|
31 Dec 2019 $m
| |||||||
2019 total as
shown above
|
Expected period of conversion of future post-tax distributable earnings
and required capital flows to free surplus
| ||||||
1-5 years
|
6-10 years
|
11-15 years
|
16-20 years
|
21-40 years
|
40+ years
| ||
Asia
|
34,295
|
8,561
|
6,335
|
4,394
|
3,398
|
7,715
|
3,892
|
US
|
14,694
|
6,408
|
4,735
|
2,424
|
825
|
302
|
-
|
Group total
|
48,989
|
14,969
|
11,070
|
6,818
|
4,223
|
8,017
|
3,892
|
100%
|
30%
|
23%
|
14%
|
9%
|
16%
|
8%
| |
31 Dec 2018 $m
| |||||||
2018 total as
shown above
|
Expected period of conversion of future post-tax distributable earnings
and required capital flows to free surplus from continuing long-term operations
| ||||||
1-5 years
|
6-10 years
|
11-15 years
|
16-20 years
|
21-40 years
|
40+ years
| ||
Asia
|
29,715
|
7,993
|
5,330
|
3,518
|
2,615
|
6,876
|
3,383
|
US
|
16,932
|
8,824
|
5,214
|
2,256
|
481
|
157
|
-
|
Group total
|
46,647
|
16,817
|
10,544
|
5,774
|
3,096
|
7,033
|
3,383
|
100%
|
36%
|
23%
|
12%
|
7%
|
15%
|
7%
|
New business contribution from continuing long-term business
| |||||||
2019 $m
|
2018 $m
| ||||||
Asia
|
US
|
Group
total
|
Asia
|
US
|
Group
total
| ||
New business contributionnote 3
|
3,522
|
883
|
4,405
|
3,477
|
1,230
|
4,707
| |
Discount rates - 1% increase
|
(715)
|
(22)
|
(737)
|
(733)
|
(56)
|
(789)
| |
Interest rates and consequential effects - 1% increase
|
(46)
|
207
|
161
|
(270)
|
126
|
(144)
| |
Interest rates and consequential effects - 0.5% decrease
|
(121)
|
(123)
|
(244)
|
77
|
(88)
|
(11)
| |
Equity/property yields - 1% rise
|
210
|
70
|
280
|
174
|
154
|
328
|
Embedded value of continuing long-term business
| |||||||
31 Dec 2019 $m
|
31 Dec 2018 $m
| ||||||
Asia
|
US
|
Group
total
|
Asia
|
US
|
Group
total
| ||
Shareholders' equitynote 10
|
37,843
|
16,336
|
54,179
|
30,985
|
18,658
|
49,643
| |
Discount rates - 1% increase
|
(5,263)
|
(509)
|
(5,772)
|
(4,193)
|
(653)
|
(4,846)
| |
Interest rates and consequential effects - 1% increase
|
(1,408)
|
798
|
(610)
|
(1,992)
|
152
|
(1,840)
| |
Interest rates and consequential effects - 0.5% decrease
|
(28)
|
(686)
|
(714)
|
466
|
(348)
|
118
| |
Equity/property yields - 1% rise
|
1,758
|
556
|
2,314
|
1,326
|
1,288
|
2,614
| |
Equity/property market values - 10% fall
|
(810)
|
(1,205)
|
(2,015)
|
(602)
|
(634)
|
(1,236)
| |
Group minimum capital requirements
|
175
|
221
|
396
|
140
|
276
|
416
|
New business contribution from continuing long-term business operations
| ||||||||
2019 $m
|
2018 $m
| |||||||
Asia
|
US
|
Group total
|
Asia
|
US
|
Group total
| |||
New business contributionnote 3
|
3,522
|
883
|
4,405
|
3,477
|
1,230
|
4,707
| ||
Maintenance expenses - 10% decrease
|
67
|
15
|
82
|
53
|
15
|
68
| ||
Lapse rates - 10% decrease
|
211
|
24
|
235
|
206
|
32
|
238
| ||
Mortality and morbidity - 5% decrease
|
116
|
(2)
|
114
|
93
|
5
|
98
|
Embedded value of continuing long-term business operations
| ||||||||
31 Dec 2019 $m
|
31 Dec 2018 $m
| |||||||
Asia
|
US
|
Group total
|
Asia
|
US
|
Group total
| |||
Shareholders' equitynote 10
|
37,843
|
16,336
|
54,179
|
30,985
|
18,658
|
49,643
| ||
Maintenance expenses - 10% decrease
|
411
|
200
|
611
|
323
|
227
|
550
| ||
Lapse rates - 10% decrease
|
1,459
|
624
|
2,083
|
1,238
|
788
|
2,026
| ||
Mortality and morbidity - 5% decrease
|
1,323
|
94
|
1,417
|
1,063
|
180
|
1,243
| ||
Change representing effect on:
| ||||||||
Life business
|
1,323
|
168
|
1,491
|
1,063
|
250
|
1,313
| ||
Annuities
|
-
|
(74)
|
(74)
|
-
|
(70)
|
(70)
|
Risk discount rate %
|
Government bond yield %
|
Expected long-term inflation %
| |||||||||
New business
|
In-force business
| ||||||||||
31 Dec
|
31 Dec
|
31 Dec
|
31 Dec
|
31 Dec
|
31 Dec
|
31 Dec
|
31 Dec
| ||||
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
| ||||
China JV
|
8.2
|
8.1
|
8.2
|
8.1
|
3.2
|
3.3
|
3.0
|
3.0
| |||
Hong Kongnotes (2)(4)
|
3.7
|
4.4
|
3.7
|
4.4
|
1.9
|
2.7
|
2.5
|
2.5
| |||
Indonesia
|
10.8
|
12.4
|
10.8
|
12.4
|
7.2
|
8.2
|
4.5
|
4.5
| |||
Malaysianote (4)
|
5.8
|
6.6
|
5.9
|
6.6
|
3.3
|
4.1
|
2.5
|
2.5
| |||
Philippines
|
12.3
|
14.5
|
12.3
|
14.5
|
4.6
|
7.0
|
4.0
|
4.0
| |||
Singaporenote (4)
|
3.3
|
3.4
|
3.9
|
4.2
|
1.7
|
2.1
|
2.0
|
2.0
| |||
Taiwan
|
3.4
|
4.5
|
3.0
|
4.4
|
0.7
|
0.9
|
1.5
|
1.5
| |||
Thailand
|
9.2
|
10.0
|
9.2
|
10.0
|
1.5
|
2.5
|
3.0
|
3.0
| |||
Vietnam
|
5.3
|
12.6
|
5.5
|
12.6
|
3.4
|
5.1
|
5.5
|
5.5
| |||
Total weighted averagenote (1)
|
4.9
|
5.4
|
4.9
|
5.8
|
31 Dec 2019 %
|
31 Dec 2018 %
| ||
Hong Kong (US dollar denominated business)
|
4.8
|
5.3
| |
Malaysia
|
7.3
|
7.9
| |
Singapore
|
5.7
|
5.8
|
31 Dec 2019 %
|
31 Dec 2018 %
| |||
Risk discount rate:
| ||||
Variable annuity:
| ||||
Risk discount rate
|
6.5
|
7.1
| ||
Additional allowance for credit risk included in risk discount ratenote 14(i)(h)
|
0.2
|
0.2
| ||
Non-variable annuity:
| ||||
Risk discount rate
|
3.7
|
4.4
| ||
Additional allowance for credit risk included in risk discount ratenote 14(i)(h)
|
1.0
|
1.0
| ||
Total weighted average:
| ||||
New business
|
6.1
|
6.9
| ||
In-force business
|
6.2
|
6.8
| ||
Allowance for long-term defaults included in projected spreadnote 14(i)(h)
|
0.17
|
0.17
| ||
US 10-year treasury bond yield
|
1.9
|
2.7
| ||
Equity risk premium (geometric)
|
2.9
|
2.6
| ||
Pre-tax expected long-term nominal rate of return for US equities (geometric)
|
4.8
|
5.3
| ||
Expected long-term rate of inflation
|
2.9
|
2.9
| ||
S&P 500 equity return volatilitynote (ii)(b)
|
17.5
|
17.5
|
2019 %
|
2018 %
| ||||
January to June issues
|
July to December issues
|
January to June issues
|
July to December issues
| ||
Fixed annuity business*
|
1.50
|
0.85
|
1.75
|
1.75
| |
Fixed index annuity business**
|
0.50
|
0.50
|
2.00
|
2.00
| |
Institutional business
|
0.50
|
0.50
|
0.50
|
0.50
|
Single premiums
|
Regular premiums
|
Annual premium equivalents (APE)
|
Present value of new business premiums (PVNBP)
| ||||||||||||
Continuing operations:
|
2019 $m
|
2018 $m
|
2019 $m
|
2018 $m
|
2019 $m
|
2018 $m
|
2019 $m
|
2018 $m
| |||||||
Asia
| |||||||||||||||
Cambodia
|
-
|
-
|
24
|
26
|
24
|
26
|
111
|
119
| |||||||
Hong Kong
|
387
|
458
|
1,977
|
2,222
|
2,016
|
2,266
|
12,815
|
13,619
| |||||||
Indonesia
|
292
|
274
|
361
|
287
|
390
|
315
|
1,668
|
1,215
| |||||||
Malaysia
|
209
|
112
|
333
|
324
|
355
|
335
|
2,090
|
1,765
| |||||||
Philippines
|
51
|
57
|
153
|
111
|
158
|
117
|
561
|
395
| |||||||
Singapore
|
1,217
|
1,242
|
539
|
493
|
660
|
617
|
4,711
|
4,821
| |||||||
Thailand
|
192
|
290
|
140
|
127
|
159
|
156
|
763
|
813
| |||||||
Vietnam
|
22
|
27
|
215
|
192
|
217
|
195
|
1,342
|
946
| |||||||
South-east Asia
including Hong Kong
|
2,370
|
2,460
|
3,742
|
3,782
|
3,979
|
4,027
|
24,061
|
23,693
| |||||||
China JVnote (b)
|
710
|
138
|
518
|
390
|
590
|
403
|
2,586
|
1,753
| |||||||
Taiwan
|
544
|
389
|
278
|
243
|
332
|
282
|
1,418
|
1,052
| |||||||
Indianote (c)
|
155
|
105
|
245
|
276
|
260
|
287
|
1,179
|
1,213
| |||||||
Total Asia
|
3,779
|
3,092
|
4,783
|
4,691
|
5,161
|
4,999
|
29,244
|
27,711
| |||||||
US
| |||||||||||||||
Variable annuities
|
12,692
|
14,433
|
-
|
-
|
1,270
|
1,443
|
12,692
|
14,434
| |||||||
Elite Access
(variable annuity)
|
2,002
|
2,245
|
-
|
-
|
200
|
225
|
2,002
|
2,244
| |||||||
Fixed annuities
|
1,194
|
454
|
-
|
-
|
119
|
46
|
1,194
|
454
| |||||||
Fixed index annuities
|
3,821
|
335
|
-
|
-
|
382
|
33
|
3,821
|
335
| |||||||
Institutional
|
2,522
|
3,126
|
-
|
-
|
252
|
312
|
2,522
|
3,126
| |||||||
Total US
|
22,231
|
20,593
|
-
|
-
|
2,223
|
2,059
|
22,231
|
20,593
| |||||||
Group totalnote (d)
|
26,010
|
23,685
|
4,783
|
4,691
|
7,384
|
7,058
|
51,475
|
48,304
|
Average rate
|
Closing rate
| |||||||
$ : local currency
|
2019
|
2018
|
% appreciation (depreciation) of local currency against USD
|
31 Dec
2019
|
31 Dec
2018
|
% appreciation (depreciation) of local currency against USD
| ||
China
|
6.91
|
6.61
|
(4)%
|
6.97
|
6.87
|
(1)%
| ||
Hong Kong
|
7.84
|
7.84
|
-
|
7.79
|
7.83
|
1%
| ||
Indonesia
|
14,140.84
|
14,220.82
|
1%
|
13,882.50
|
14,380.00
|
4%
| ||
Malaysia
|
4.14
|
4.03
|
(3)%
|
4.09
|
4.13
|
1%
| ||
Singapore
|
1.36
|
1.35
|
(1)%
|
1.34
|
1.36
|
1%
| ||
Thailand
|
31.05
|
32.30
|
4%
|
29.75
|
32.56
|
9%
| ||
UK
|
0.78
|
0.75
|
(4)%
|
0.75
|
0.79
|
5%
| ||
Vietnam
|
23,227.64
|
23,017.17
|
(1)%
|
23,172.50
|
23,195.00
|
0%
|
AER
|
Single premiums
|
Regular premiums
|
APEnote(2)
|
PVNBPnote(2)
| ||||||||
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
| |
Continuing operations:
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
Asia
| ||||||||||||
Cambodia
|
-
|
-
|
-
|
24
|
26
|
(8)%
|
24
|
26
|
(8)%
|
111
|
119
|
(7)%
|
Hong Kong
|
387
|
458
|
(16)%
|
1,977
|
2,222
|
(11)%
|
2,016
|
2,266
|
(11)%
|
12,815
|
13,619
|
(6)%
|
Indonesia
|
292
|
274
|
7%
|
361
|
287
|
26%
|
390
|
315
|
24%
|
1,668
|
1,215
|
37%
|
Malaysia
|
209
|
112
|
87%
|
333
|
324
|
3%
|
355
|
335
|
6%
|
2,090
|
1,765
|
18%
|
Philippines
|
51
|
57
|
(11)%
|
153
|
111
|
38%
|
158
|
117
|
35%
|
561
|
395
|
42%
|
Singapore
|
1,217
|
1,242
|
(2)%
|
539
|
493
|
9%
|
660
|
617
|
7%
|
4,711
|
4,821
|
(2)%
|
Thailand
|
192
|
290
|
(34)%
|
140
|
127
|
10%
|
159
|
156
|
2%
|
763
|
813
|
(6)%
|
Vietnam
|
22
|
27
|
(19)%
|
215
|
192
|
12%
|
217
|
195
|
11%
|
1,342
|
946
|
42%
|
South-east Asia
including Hong Kong
|
2,370
|
2,460
|
(4)%
|
3,742
|
3,782
|
(1)%
|
3,979
|
4,027
|
(1)%
|
24,061
|
23,693
|
2%
|
China JVnote (3)
|
710
|
138
|
414%
|
518
|
390
|
33%
|
590
|
403
|
46%
|
2,586
|
1,753
|
48%
|
Taiwan
|
544
|
389
|
40%
|
278
|
243
|
14%
|
332
|
282
|
18%
|
1,418
|
1,052
|
35%
|
Indianote (4)
|
155
|
105
|
48%
|
245
|
276
|
(11)%
|
260
|
287
|
(9)%
|
1,179
|
1,213
|
(3)%
|
Total Asia
|
3,779
|
3,092
|
22%
|
4,783
|
4,691
|
2%
|
5,161
|
4,999
|
3%
|
29,244
|
27,711
|
6%
|
US
| ||||||||||||
Variable annuities
|
12,692
|
14,433
|
(12)%
|
-
|
-
|
-
|
1,270
|
1,443
|
(12)%
|
12,692
|
14,434
|
(12)%
|
Elite Access (variable
annuity)
|
2,002
|
2,245
|
(11)%
|
-
|
-
|
-
|
200
|
225
|
(11)%
|
2,002
|
2,244
|
(11)%
|
Fixed annuities
|
1,194
|
454
|
163%
|
-
|
-
|
-
|
119
|
46
|
159%
|
1,194
|
454
|
163%
|
Fixed index annuities
|
3,821
|
335
|
1,041%
|
-
|
-
|
-
|
382
|
33
|
1,058%
|
3,821
|
335
|
1,041%
|
Wholesale
|
2,522
|
3,126
|
(19)%
|
-
|
-
|
-
|
252
|
312
|
(19)%
|
2,522
|
3,126
|
(19)%
|
Total US
|
22,231
|
20,593
|
8%
|
-
|
-
|
-
|
2,223
|
2,059
|
8%
|
22,231
|
20,593
|
8%
|
Group total
|
26,010
|
23,685
|
10%
|
4,783
|
4,691
|
2%
|
7,384
|
7,058
|
5%
|
51,475
|
48,304
|
7%
|
CER
|
Single premiums
|
Regular premiums
|
APEnote(2)
|
PVNBPnote(2)
| ||||||||
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
|
2019
|
2018
|
+/(-)
| |
Continuing operations:
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
$m
|
$m
|
%
|
Asia
| ||||||||||||
Cambodia
|
-
|
-
|
-
|
24
|
26
|
(8)%
|
24
|
26
|
(8)%
|
111
|
119
|
(7)%
|
Hong Kong
|
387
|
458
|
(16)%
|
1,977
|
2,221
|
(11)%
|
2,016
|
2,268
|
(11)%
|
12,815
|
13,623
|
(6)%
|
Indonesia
|
292
|
275
|
6%
|
361
|
289
|
25%
|
390
|
316
|
23%
|
1,668
|
1,222
|
36%
|
Malaysia
|
209
|
109
|
92%
|
333
|
315
|
6%
|
355
|
326
|
9%
|
2,090
|
1,718
|
22%
|
Philippines
|
51
|
58
|
(12)%
|
153
|
112
|
37%
|
158
|
118
|
34%
|
561
|
402
|
40%
|
Singapore
|
1,217
|
1,227
|
(1)%
|
539
|
487
|
11%
|
660
|
609
|
8%
|
4,711
|
4,767
|
(1)%
|
Thailand
|
192
|
302
|
(36)%
|
140
|
133
|
5%
|
159
|
163
|
(2)%
|
763
|
847
|
(10)%
|
Vietnam
|
22
|
27
|
(19)%
|
215
|
190
|
13%
|
217
|
193
|
12%
|
1,342
|
936
|
43%
|
South-east Asia
including Hong Kong
|
2,370
|
2,456
|
(4)%
|
3,742
|
3,773
|
(1)%
|
3,979
|
4,019
|
(1)%
|
24,061
|
23,634
|
2%
|
China JVnote (3)
|
710
|
132
|
438%
|
518
|
373
|
39%
|
590
|
386
|
53%
|
2,586
|
1,676
|
54%
|
Taiwan
|
544
|
380
|
43%
|
278
|
237
|
17%
|
332
|
275
|
21%
|
1,418
|
1,026
|
38%
|
Indianote (4)
|
155
|
102
|
52%
|
245
|
269
|
(9)%
|
260
|
279
|
(7)%
|
1,179
|
1,176
|
0%
|
Total Asia
|
3,779
|
3,070
|
23%
|
4,783
|
4,652
|
3%
|
5,161
|
4,959
|
4%
|
29,244
|
27,512
|
6%
|
US
| ||||||||||||
Variable annuities
|
12,692
|
14,433
|
(12)%
|
-
|
-
|
-
|
1,270
|
1,443
|
(12)%
|
12,692
|
14,434
|
(12)%
|
Elite Access (variable
annuity)
|
2,002
|
2,245
|
(11)%
|
-
|
-
|
-
|
200
|
225
|
(11)%
|
2,002
|
2,244
|
(11)%
|
Fixed annuities
|
1,194
|
454
|
163%
|
-
|
-
|
-
|
119
|
46
|
159%
|
1,194
|
454
|
163%
|
Fixed index annuities
|
3,821
|
335
|
1,041%
|
-
|
-
|
-
|
382
|
33
|
1,058%
|
3,821
|
335
|
1,041%
|
Wholesale
|
2,522
|
3,126
|
(19)%
|
-
|
-
|
-
|
252
|
312
|
(19)%
|
2,522
|
3,126
|
(19)%
|
Total US
|
22,231
|
20,593
|
8%
|
-
|
-
|
-
|
2,223
|
2,059
|
8%
|
22,231
|
20,593
|
8%
|
Group total
|
26,010
|
23,663
|
10%
|
4,783
|
4,652
|
3%
|
7,384
|
7,018
|
5%
|
51,475
|
48,105
|
7%
|
AER
|
CER
| |||||||
2018 $m
|
2019 $m
|
2018 $m
|
2019 $m
| |||||
Continuing operations:
|
H1
|
H2
|
H1
|
H2
|
H1
|
H2
|
H1
|
H2
|
Asia
| ||||||||
Cambodia
|
11
|
15
|
15
|
9
|
11
|
15
|
14
|
10
|
Hong Kong
|
1,021
|
1,245
|
1,075
|
941
|
1,021
|
1,247
|
1,075
|
941
|
Indonesia
|
155
|
160
|
156
|
234
|
151
|
165
|
157
|
233
|
Malaysia
|
161
|
174
|
158
|
197
|
153
|
173
|
157
|
198
|
Philippines
|
52
|
65
|
71
|
87
|
53
|
65
|
71
|
87
|
Singapore
|
282
|
335
|
299
|
361
|
275
|
334
|
297
|
363
|
Thailand
|
73
|
83
|
62
|
97
|
74
|
89
|
64
|
95
|
Vietnam
|
84
|
111
|
88
|
129
|
82
|
111
|
89
|
128
|
South-east Asia
including Hong Kong
|
1,839
|
2,188
|
1,924
|
2,055
|
1,820
|
2,199
|
1,924
|
2,055
|
China JVnote (3)
|
257
|
146
|
350
|
240
|
237
|
149
|
343
|
247
|
Taiwan
|
149
|
133
|
149
|
183
|
142
|
133
|
151
|
181
|
Indianote (4)
|
144
|
143
|
137
|
123
|
133
|
146
|
137
|
123
|
Total Asia
|
2,389
|
2,610
|
2,560
|
2,601
|
2,332
|
2,627
|
2,555
|
2,606
|
US
| ||||||||
Variable annuities
|
749
|
694
|
628
|
642
|
749
|
694
|
628
|
642
|
Elite Access (variable
annuity)
|
122
|
103
|
96
|
104
|
122
|
103
|
96
|
104
|
Fixed annuities
|
23
|
23
|
23
|
96
|
23
|
23
|
23
|
96
|
Fixed index annuities
|
18
|
15
|
120
|
262
|
18
|
15
|
120
|
262
|
Wholesale
|
211
|
101
|
208
|
44
|
211
|
101
|
208
|
44
|
Total US
|
1,123
|
936
|
1,075
|
1,148
|
1,123
|
936
|
1,075
|
1,148
|
Group total
|
3,512
|
3,546
|
3,635
|
3,749
|
3,455
|
3,563
|
3,630
|
3,754
|
AER
|
CER
| |||||||
2018
|
2019
|
2018
|
2019
| |||||
Continuing operations:
|
HY
|
FY
|
HY
|
FY
|
HY
|
FY
|
HY
|
FY
|
New business profit ($m)
| ||||||||
Asia
|
1,544
|
3,477
|
1,676
|
3,522
|
1,523
|
3,460
|
1,675
|
3,522
|
US
|
641
|
1,230
|
450
|
883
|
641
|
1,230
|
450
|
883
|
Group total
|
2,185
|
4,707
|
2,126
|
4,405
|
2,164
|
4,690
|
2,125
|
4,405
|
APE ($m)note (2)
| ||||||||
Asia
|
2,389
|
4,999
|
2,560
|
5,161
|
2,332
|
4,959
|
2,555
|
5,161
|
US
|
1,123
|
2,059
|
1,075
|
2,223
|
1,123
|
2,059
|
1,075
|
2,223
|
Group total
|
3,512
|
7,058
|
3,635
|
7,384
|
3,455
|
7,018
|
3,630
|
7,384
|
New business margin (NBP as a % of APE)
| ||||||||
Asia
|
65%
|
70%
|
65%
|
68%
|
65%
|
70%
|
65%
|
68%
|
US
|
57%
|
60%
|
42%
|
40%
|
57%
|
60%
|
42%
|
40%
|
Group total
|
62%
|
67%
|
58%
|
60%
|
63%
|
67%
|
58%
|
60%
|
PVNBP ($m)note (2)
| ||||||||
Asia
|
12,565
|
27,711
|
14,218
|
29,244
|
12,307
|
27,512
|
14,195
|
29,244
|
US
|
11,231
|
20,593
|
10,752
|
22,231
|
11,231
|
20,593
|
10,752
|
22,231
|
Group total
|
23,796
|
48,304
|
24,970
|
51,475
|
23,538
|
48,105
|
24,947
|
51,475
|
New business margin (NBP as a % of PVNBP)
| ||||||||
Asia
|
12.3%
|
12.5%
|
11.8%
|
12.0%
|
12.4%
|
12.6%
|
11.8%
|
12.0%
|
US
|
5.7%
|
6.0%
|
4.2%
|
4.0%
|
5.7%
|
6.0%
|
4.2%
|
4.0%
|
Group total
|
9.2%
|
9.7%
|
8.5%
|
8.6%
|
9.2%
|
9.7%
|
8.5%
|
8.6%
|
2018 $m
|
2019 $m
| |||||||
Eastspring investment operations:
|
H1
|
H2
|
H1
|
H2
| ||||
Third party retail:note (5)
| ||||||||
Opening FUM
|
52,321
|
47,644
|
55,198
|
62,441
| ||||
Net Flows:note (6)
|
34
|
(925)
|
2,682
|
3,313
| ||||
- Gross Inflows
|
13,921
|
11,772
|
19,628
|
23,005
| ||||
- Redemptions
|
(13,887)
|
(12,697)
|
(16,946)
|
(19,692)
| ||||
Other Movements*
|
(4,711)
|
8,479
|
4,561
|
7,890
| ||||
Closing FUMnote (7)
|
47,644
|
55,198
|
62,441
|
73,644
| ||||
Third party institutional:
| ||||||||
Opening FUM
|
10,676
|
8,297
|
7,788
|
9,431
| ||||
Net Flows:†
|
(1,222)
|
(5)
|
1,274
|
1,640
| ||||
- Gross Inflows
|
465
|
1,275
|
1,661
|
2,371
| ||||
- Redemptions
|
(1,687)
|
(1,280)
|
(387)
|
(731)
| ||||
Other Movements†
|
(1,157)
|
(504)
|
369
|
26,670
| ||||
Closing FUMnote (7)
|
8,297
|
7,788
|
9,431
|
37,741
| ||||
Total third party (excluding MMF)
|
55,941
|
62,986
|
71,872
|
111,385
|
31 Dec 2019 $m
| ||||||||
Undiscounted expected generation from
all in-force business*
|
Undiscounted expected generation from
new business written*
| |||||||
Expected period of emergence
|
Asia
|
US
|
Group
total
|
Asia
|
US
|
Group
total
| ||
2020
|
1,963
|
1,523
|
3,486
|
291
|
325
|
616
| ||
2021
|
2,088
|
1,445
|
3,533
|
244
|
45
|
289
| ||
2022
|
1,941
|
1,412
|
3,353
|
225
|
101
|
326
| ||
2023
|
1,965
|
1,500
|
3,465
|
207
|
120
|
327
| ||
2024
|
1,895
|
1,574
|
3,469
|
223
|
119
|
342
| ||
2025
|
1,874
|
1,528
|
3,402
|
202
|
26
|
228
| ||
2026
|
1,917
|
1,514
|
3,431
|
223
|
9
|
232
| ||
2027
|
1,891
|
1,497
|
3,388
|
217
|
143
|
360
| ||
2028
|
1,858
|
1,415
|
3,273
|
209
|
173
|
382
| ||
2029
|
1,761
|
1,333
|
3,094
|
223
|
148
|
371
| ||
2030
|
1,687
|
1,265
|
2,952
|
188
|
122
|
310
| ||
2031
|
1,666
|
1,152
|
2,818
|
184
|
109
|
293
| ||
2032
|
1,614
|
1,001
|
2,615
|
171
|
94
|
265
| ||
2033
|
1,596
|
759
|
2,355
|
169
|
80
|
249
| ||
2034
|
1,590
|
690
|
2,280
|
190
|
87
|
277
| ||
2035
|
1,556
|
610
|
2,166
|
170
|
71
|
241
| ||
2036
|
1,557
|
514
|
2,071
|
170
|
57
|
227
| ||
2037
|
1,563
|
396
|
1,959
|
170
|
46
|
216
| ||
2038
|
1,550
|
312
|
1,862
|
169
|
35
|
204
| ||
2039
|
1,535
|
243
|
1,778
|
177
|
70
|
247
| ||
2040-2044
|
7,360
|
977
|
8,337
|
869
|
140
|
1,009
| ||
2045-2049
|
7,055
|
-
|
7,055
|
887
|
-
|
887
| ||
2050-2054
|
7,073
|
-
|
7,073
|
987
|
-
|
987
| ||
2055-2059
|
6,468
|
-
|
6,468
|
958
|
-
|
958
| ||
Total free surplus expected to
| ||||||||
emerge in the next 40 years
|
63,023
|
22,660
|
85,683
|
7,723
|
2,120
|
9,843
|
2019 $m
| ||||
Asia
|
US
|
Group total
| ||
Undiscounted expected free surplus generation for years 2020 to 2059
|
7,723
|
2,120
|
9,843
| |
Less: discount effect
|
(4,211)
|
(721)
|
(4,932)
| |
Discounted expected free surplus generation for years 2020 to 2059
|
3,512
|
1,399
|
4,911
| |
Discounted expected free surplus generation for years after 2059
|
771
|
-
|
771
| |
Discounted expected free surplus generation from new business written in 2019
|
4,283
|
1,399
|
5,682
| |
Free surplus investment in new business
|
(619)
|
(539)
|
(1,158)
| |
Other items†
|
(142)
|
23
|
(119)
| |
EEV new business profit for long-term business operations
|
3,522
|
883
|
4,405
|
Group
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Other
|
Total
| |||
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
| ||||
2018 expected free surplus generation
for years 2019 to 2058
|
4,759
|
4,823
|
4,807
|
4,695
|
4,608
|
4,505
|
72,778
|
100,975
| |||
Demerger of UK and Europe operations
|
(755)
|
(776)
|
(753)
|
(728)
|
(707)
|
(684)
|
(10,316)
|
(14,719)
| |||
Less: Amounts expected to be realised
in the current year
|
(4,004)
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,004)
| |||
Add: Expected free surplus to be
generated in year 2059*
|
-
|
-
|
-
|
-
|
-
|
-
|
1,205
|
1,205
| |||
Foreign exchange differences
|
-
|
26
|
25
|
24
|
25
|
23
|
467
|
590
| |||
New business
|
-
|
616
|
289
|
326
|
327
|
342
|
7,943
|
9,843
| |||
Operating movements
|
-
|
(113)
|
28
|
(104)
|
(59)
|
(90)
|
(3,700)
|
(8,207)
| |||
Non-operating and other movements**
|
-
|
(1,090)
|
(863)
|
(860)
|
(729)
|
(627)
| |||||
2019 expected free surplus generation
for years 2020 to 2059
|
-
|
3,486
|
3,533
|
3,353
|
3,465
|
3,469
|
68,377
|
85,683
| |||
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Other
|
Total
| ||||
Asia
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
| |||
2018 expected free surplus generation
for years 2019 to 2058
|
1,987
|
1,915
|
1,842
|
1,835
|
1,831
|
1,746
|
49,411
|
60,567
| |||
Less: Amounts expected to be realised
in the current year
|
(1,987)
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,987)
| |||
Add: Expected free surplus to be
generated in year 2059*
|
-
|
-
|
-
|
-
|
-
|
-
|
1,205
|
1,205
| |||
Foreign exchange differences
|
-
|
26
|
25
|
24
|
25
|
23
|
467
|
590
| |||
New business
|
-
|
291
|
244
|
225
|
207
|
223
|
6,533
|
7,723
| |||
Operating movements
|
-
|
(133)
|
63
|
(69)
|
(12)
|
(47)
|
(4,445)
|
(5,075)
| |||
Non-operating and other movements
|
-
|
(136)
|
(86)
|
(74)
|
(86)
|
(50)
| |||||
2019 expected free surplus generation
for years 2020 to 2059
|
-
|
1,963
|
2,088
|
1,941
|
1,965
|
1,895
|
53,171
|
63,023
| |||
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Other
|
Total
| ||||
US
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
| |||
2018 expected free surplus generation
for years 2019 to 2058
|
2,017
|
2,132
|
2,212
|
2,132
|
2,070
|
2,075
|
13,051
|
25,689
| |||
Less: Amounts expected to be realised
in the current year
|
(2,017)
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,017)
| |||
New business
|
-
|
325
|
45
|
101
|
120
|
119
|
1,410
|
2,120
| |||
Operating movements
|
-
|
20
|
(35)
|
(35)
|
(47)
|
(43)
|
745
|
(3,132)
| |||
Non-operating and other movements**
|
-
|
(954)
|
(777)
|
(786)
|
(643)
|
(577)
| |||||
2019 expected free surplus generation
for years 2020 to 2059
|
-
|
1,523
|
1,445
|
1,412
|
1,500
|
1,574
|
15,206
|
22,660
|
2019 $m
| |||
Asia
|
US
|
Group total
| |
Transfer to free surplus in 2019 before impact of US EEV hedge modelling enhancements
|
1,914
|
2,070
|
3,984
|
Expected return on free assets
|
80
|
61
|
141
|
Changes in operating assumptions and experience variances
|
147
|
411
|
558
|
Underlying free surplus generated from in-force life business before impact of US EEV hedge modelling enhancements and restructuring costs*
|
2,141
|
2,542
|
4,683
|
2019 free surplus expected to be generated at 31 December 2018
|
1,987
|
2,017
|
4,004
|
31 Dec 2019 $m
| ||||||||
Discounted expected generation from all
in-force business
|
Discounted expected generation from
new business written
| |||||||
Expected period of emergence
|
Asia
|
US
|
Group total
|
Asia
|
US
|
Group total
| ||
2020
|
1,890
|
1,468
|
3,358
|
279
|
320
|
599
| ||
2021
|
1,910
|
1,313
|
3,223
|
218
|
42
|
260
| ||
2022
|
1,674
|
1,212
|
2,886
|
189
|
92
|
281
| ||
2023
|
1,608
|
1,212
|
2,820
|
165
|
102
|
267
| ||
2024
|
1,479
|
1,203
|
2,682
|
169
|
100
|
269
| ||
2025
|
1,397
|
1,105
|
2,502
|
147
|
22
|
169
| ||
2026
|
1,363
|
1,034
|
2,397
|
158
|
7
|
165
| ||
2027
|
1,281
|
966
|
2,247
|
147
|
98
|
245
| ||
2028
|
1,206
|
865
|
2,071
|
134
|
114
|
248
| ||
2029
|
1,088
|
765
|
1,853
|
137
|
90
|
227
| ||
2030
|
991
|
690
|
1,681
|
109
|
70
|
179
| ||
2031
|
938
|
595
|
1,533
|
99
|
59
|
158
| ||
2032
|
863
|
496
|
1,359
|
88
|
48
|
136
| ||
2033
|
819
|
345
|
1,164
|
82
|
39
|
121
| ||
2034
|
783
|
298
|
1,081
|
86
|
39
|
125
| ||
2035
|
737
|
256
|
993
|
76
|
30
|
106
| ||
2036
|
709
|
210
|
919
|
73
|
23
|
96
| ||
2037
|
682
|
151
|
833
|
70
|
18
|
88
| ||
2038
|
651
|
118
|
769
|
66
|
13
|
79
| ||
2039
|
619
|
90
|
709
|
67
|
24
|
91
| ||
2040-2044
|
2,631
|
302
|
2,933
|
292
|
49
|
341
| ||
2045-2049
|
2,060
|
-
|
2,060
|
244
|
-
|
244
| ||
2050-2054
|
1,730
|
-
|
1,730
|
232
|
-
|
232
| ||
2055-2059
|
1,294
|
-
|
1,294
|
185
|
-
|
185
| ||
Total discounted free surplus expected to emerge in the next 40 years
|
30,403
|
14,694
|
45,097
|
3,512
|
1,399
|
4,911
|
31 Dec 2019 $m
| |
Discounted expected generation from all in-force business for years 2020 to 2059
|
45,097
|
Discounted expected generation from all in-force business for years after 2059
|
3,892
|
Discounted expected generation from all in-force business at 31 December 2019
|
48,989
|
Free surplus of life operations held at 31 December 2019
|
5,395
|
Other items*
|
(205)
|
Total EEV for long-term business operations
|
54,179
|
2019
| ||||||
Asia
|
US
|
Central operations
|
Group
total
|
Demerger
related
items*
|
Adjusted
Group total
(excluding
demerger
related items*)
| |
EEV basis profit (loss) for the year from continuing operations, net of tax and non-controlling interests ($ million)
|
8,063
|
(2,025)
|
(1,886)
|
4,152
|
(528)
|
4,680
|
Closing EEV basis shareholders' equity ($ million)
|
39,235
|
16,342
|
(866)
|
54,711
|
(528)
|
55,239
|
Total return on shareholders' funds (%)
|
21%
|
(12%)
|
n/a
|
8%
|
n/a
|
8%
|
2018†
| ||||||
Asia
|
US
| |||||
EEV basis profit for the year, net of tax and non-controlling interests ($ million)
|
4,808
|
1,052
| ||||
Closing EEV basis shareholders' equity ($ million)
|
32,008
|
18,709
| ||||
Total return on shareholders' funds (%)
|
15%
|
6%
|
2019
|
2018
| |||
Asia
|
US
|
Asia
|
US
| |
EEV basis operating profit for the year from continuing operations, net of tax($ million)
|
6,138
|
1,782
|
6,070
|
2,828
|
Closing EEV basis shareholders' equity ($ million)
|
39,235
|
16,342
|
32,008
|
18,709
|
Operating return on shareholders' funds (%)
|
16%
|
11%
|
19%
|
15%
|
31 Dec 2019
| ||||
Asia
|
US
|
Other
|
Group
total
| |
Closing EEV shareholders' equity ($ million)
|
39,235
|
16,342
|
(866)
|
54,711
|
Less: Goodwill attributable to shareholders ($ million)
|
(796)
|
-
|
(26)
|
(822)
|
Closing EEV shareholders' equity excluding goodwill attributable to shareholders ($ million)
|
38,439
|
16,342
|
(892)
|
53,889
|
Shareholders' funds per share (in cents)
|
1,508¢
|
628¢
|
(33)¢
|
2,103¢
|
Shareholders' funds per share excluding goodwill attributable to shareholders (in cents)
|
1,478¢
|
628¢
|
(34)¢
|
2,072¢
|
31 Dec 2018
| ||||
Asia
|
US
|
Other
|
Group
total
| |
Closing EEV shareholders' equity ($ million)
|
32,008
|
18,709
|
(4,616)
|
46,101
|
Less: Goodwill attributable to shareholders ($ million)
|
(634)
|
-
|
-
|
(634)
|
Closing EEV shareholders' equity excluding goodwill attributable to shareholders ($ million)
|
31,374
|
18,709
|
(4,616)
|
45,467
|
Shareholders' funds per share (in cents)
|
1,234¢
|
722¢
|
(178)¢
|
1,778¢
|
Shareholders' funds per share excluding goodwill attributable to shareholders (in cents)
|
1,209¢
|
722¢
|
(178)¢
|
1,753¢
|
2019
|
2018
| |||
Asia
|
US
|
Asia
|
US
| |
New business contribution ($ million)
|
3,522
|
883
|
3,477
|
1,230
|
Closing EEV basis shareholders' equity ($ million)
|
39,235
|
16,342
|
32,008
|
18,709
|
9%
|
5%
|
11%
|
7%
|
PRUDENTIAL PUBLIC LIMITED COMPANY
| |
By: /s/ Mark FitzPatrick
| |
Mark FitzPatrick
| |
Group Chief Financial Officer and Chief Operating Officer |
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Prudential plc published this content on 11 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2020 15:23:12 UTC