IIS 48 th Annual Conference Strategies for Global Growth Prudential plc in Asia

1. IIS 48th Annual Conference Strategies for Global Growth Prudential plc in Asia Barry Stowe Chief Executive Prudential Corporation Asia June 2012

2. Asia: Compelling Growth Opportunities for Savings and Protection Projected Growth in Asian Middle Class m 6.1x • Outlook for Asian economies is robust despite current global volatility: • GDP outperformance • Strong public and household finances • Relatively stable political environment • Asia’s middle class growing rapidly • Asset accumulation a high priority: • Limited welfare safety nets • Funding children’s education • Retirement • Increasing demand for protection: • Early death, serious illness or disability • Rising incidence of chronic diseases Asia-Pacific’s proportion of global middle class 28% 54% 66% Source: OECD 1

3. Asia: Life Insurance Sector Landscape Life New Business Market Shares 2011 Multinational Domestic • Material barriers to entry • Availability of licenses • Varying local regulations • Capital requirements • Establishing brand • Building distribution capabilities • Wide range of competitors • Different definitions of success but increasing materiality driving greater transparency and accountability • Competition principally around distribution competencies • Products are readily copied • Little competition on pricing Market Size £bn 14.7 7.4 10.1 5.1 1.7 1.2 1.4 0.2 1.0 0.2 3.4 2

4. Recent Regulatory Trends • Customer centricity • Disclosures • Professionalism of distributors • Bancassurance models • Data privacy • Mandated audit and risk management committees • More sophisticated capital management, e.g. RBC • International standards, e.g. AML Asia: Life Insurance Regulatory Environment continues to evolve • Regulators supportive of continued development of life industry, minimal appetite for sovereign provision • Regulation changes tend to be largely positive for sound development of industry • Sophisticated insurers, operating to international standards will typically benefit from regulatory developments • Focus on consumer protection and increasing transparency and accountability for compliance and risk management 3

5. Asia: Life Insurance Distribution Landscape Building and then managing high quality distribution is key strategic imperative Industry Distribution Mix for 2011 • Traditional tied agency is dominant distribution channel: • Attractive economics • Customer preference for face-to-face • Agency success depends on abilities to recruit, train, motivate and retain • Bancassurance is fast growing and has a variety of models: • In-house insurers • Exclusive relationships • Multiple relationships • Mandated multi relationships • Other channels less significant • DM/TM: restricted by privacy rules • IFA/Brokers: capital, compliance and infrastructure can be challenging Agency Bancassurance Other Note: Asia new business market distribution mix ex India & Japan Source: Prudential plc analysis

6. Prudential plc in Asia: Growth Strategies Clear strategy with disciplined execution has built material Asian business Today Prudential plc has over 15 million Customers in Asia • Multichannel distribution: • Tied agency scale and productivity • Excellence in bancassurance • Product differentiation: • Capital efficiency • Regular premium savings and protection • Comprehensive mutual fund range • Emphasis on Customer: • ‘Always Listening, Always Understanding’ • Award winning service • Operational Strengths: • Secure best people in industry • Federated model • Rigorous compliance • International standards of risk management • Local Community Engagement: • CSR activities focused on Children, Financial Literacy and Disaster Relief

7. Prudential plc in Asia: Strategy delivering strong, profitable growth IFRS operating profit2 New business profit1 £m £m 2.4x 4.1x 50% of Group New Business Profit 38% of Group IFRS Operating Profit Net remittances £m 7.4x 130 One-off3 19% of Group Net Remittances 1 Exclude Japan Life. and Taiwan Agency 2 Net of development costs 3 One-off from Malaysia representing the remittance of distributable earnings accumulated over recent years

8. Summary • Core growth drivers for savings and protection business in Asia remain firmly in place and include limited provision of social welfare and continued expansion of middle classes • Diverse competitive environment with variety of challenges for multinationals looking to enter or expand rapidly in Asia including need to build distribution • Regulatory environment is generally supportive and continues to evolve with emphasis on quality and consumer protection • Prudential commenced its Asia strategy in 1994 and while ‘first mover’ status has advantages, the quality of execution is key • Today Prudential is one of region’s leading life insurers with multiple market leading positions and has a track record of delivering material value to shareholders