1 / 17

PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference 30 October 2003

PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference 30 October 2003. INTRODUCTION. Prudential has diversified its business and hence developed a unique position from which to withstand turbulent markets. Note: Based on Life and Pensions sales.

teva
Download Presentation

PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference 30 October 2003

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference 30 October 2003

  2. INTRODUCTION • Prudential has diversified its business and hence developed a unique position from which to withstand turbulent markets Note: Based on Life and Pensions sales

  3. PRUDENTIAL UK DISTRIBUTION MIX • Similarly in the UK, we have a much broader distribution spread 1993 2003 H1 Partnership 6% D2C 16% IFA 32% IFA 42% DSF 68% B2B 36% Note: Bulk sales included in B2B

  4. PRUDENTIAL UK - STRATEGIC PRIORITIES • Financial strength • Size to scale • Brand • Product • Distribution

  5. Scottish Widows Prudential* Axa Sun Life FAR excluding Alternative capital Aviva L&G Scottish Equitable Guardian Royal and SunAlliance Britannic Standard Life Pearl Royal London Equitable Clerical Medical Group Friends Provident -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Note:Free Asset Ratio above required minimum solvency margin excluding future profits, subordinated debt and financial reassurance Source: FSA Returns, Form 9 as at 31.12.02 * Excludes Scottish Amicable closed funds (Scottish Amicable Investment Funds) FINANCIAL STRENGTH - PRUDENTIAL HAS ONE OF THE HIGHEST FREE ASSET RATIOS AMONGST THE LEADING COMPANIES 2002 Free Asset Ratio

  6. SIZE TO SCALE - DELIVERING THE COST CHALLENGE £m • £155m of savings realised • Annualised value of £180m • Mumbai office opened 30 May 2003 • £200m of annualised savings by end of 2003 250 216 213 210 200 175 150 130 100 50 10 0 -5 -50 -46 -49 -100 -90 2001 2002 2003 2004 2005 2006 Cost savings Transition costs

  7. BRAND - THE STRONGEST FOR LIFE AND PENSIONS • In these turbulent times, our brand strength provides considerable reassurance to customers Spontaneous awareness of life and pension providers Jul-Dec02 Jun-Nov02 Mar-Aug02 Apr-Sep02 May-Oct02 Feb03-Jul03 Nov02-Apr03 Jan03-Jun03 Aug02-Jan03 Sep02-Feb03 Mar03-Aug03 Oct02-Mar03 Dec02-May03 Prudential Norwich Union/ CGNU Scottish Widows AXA Standard Life Legal & General Source:Brand and Satisfaction Monitor (Millward Brown) Base: All respondents (GB adults), six month rolling data. Selected companies shown

  8. BRAND - DELIVERS ON THE CUSTOMER EXPERIENCE Progress to date • moved to single customer service business • single view of customer • 650 people in Mumbai • 80% of calls answered in 15 seconds Future Plans From summer 2004, all customers can:- • call 0800 000 000 • speak to a person not a machine • who can deal with 80% of their issues on the call

  9. BRAND - ADVERTISING

  10. PRODUCT - OUR BETS 18% 16% We’re focusing on Investments (bonds and ISAs), Annuities and large Group Pensions Annuities 14% RP Individual Pensions 12% Investment Bonds Premium Share 10% Group Pensions 8% Other 6% 4% ISAs 2% 0 0% 2% 4% 6% 8% 10% 12% Market Growth Size of circle represents new business market size in APE in 2000 Market growth is estimate for the next 10 years Source: ABI, Prudential

  11. One of several potential scenarios ... Distribution in 2000 Distribution in 2005 Other Other 2% 8% 6% Direct Direct to consumer Direct 3% 7% Bancassurers Bancassurers 22% Partnerships 3% DSF DSF 31% 17% Ex-DSF multi-tie 15% Intermediaries Ex-IFA multi-tie IFAs 38% IFA 20% 15% Business to Business 13% EBC EBC DISTRIBUTION - THE FUTURE MARKET LANDSCAPE

  12. DISTRIBUTION - B2B SALES PROCESS Sales Processes being refined The old model….. The new model…. Employer Relationship Manager Employer Relationship Manager Presenters B2B Central Planning Unit Marketing customer research Unlocks • Acct mgmt • Noble endeavour • DC pension • DB risk mgmt • Joint marketing plan • Other products DC Pension proposition Unlocks F2F presentation Segmented approach Employer endorsement F2F DM www Tele Pension Mgr Employees Unlocks Employees HR Director/ Finance Director/ Pension Mgr

  13. DISTRIBUTION - B2B EMPLOYEE SIGN UP • Multi-touch, multi channel sales process • Innovation - created Automatic Enrolment (average conversion over 75%) • Cost effective CRM managed by new Central Planning Unit • Targeting distribution method based on customer value UNDERSTAND EMPLOYER OBJECTIVES AUTOMATIC ENROLMENT INTRANET/EXTRANET/EMAIL DIRECT MAIL TELEPHONY GROUP PRESENTATIONS F2F Customer Relationship Management

  14. ECONOMICS OF B2B DISTRIBUTION • Auto enrolment low cost and highest conversion • F2F needs to be employed where value exists Distribution method Cost per hit Conversion rate Unit cost of acquisition £ % £ Auto enrolment 2.50 75% 3 e-based 1 5% 20 DM 2.50 10% 25 Telephony 15 33% 45 F2F presentation 25 50% 50

  15. B2B - RESULTS • Prudential have achieved B2B growth of 23% when our competitors are all down • Stakeholder - CGEY believe that "Prudential’s business solution embodies the best elements of current thinking on Stakeholder Pensions" • 20% of FTSE 100 and FTSE 350 as clients • Half of the Public sector as clients • Our clients have over 5m employees Year on Year growth 40% 30% 20% 10% % movement 0% Prudential -10% -20% Norwich Union -30% Standard Life L&G -40% Note : Prudential is Q3 to Q3, others are Q2 to Q2. Includes DB, DC (MPP), Group AVCs, GPP and Employer Stakeholder

  16. B2B - EXPANDING OUR PROPOSITION Employer Employee Multi-Channel/Multi-Media Access Auto Enrolment On-Line planning DM Call Centre E&I Seminars F2F Advice Integration Platform & CRM Prudential Pensions Platform Other Pru Group Platforms 3rd Party Providers

  17. PRUDENTIAL UK - STRATEGIC PRIORITIES • Highest free asset ratio • Exceeded our ambitions • Strongest brand • Focused product strategy • Rapidly diversifying distribution capability • Financial strength • Size to scale • Brand • Product • Distribution

More Related