Prudential plc Annual Report 2012
Our strategy in Asia is focused on meeting the needs of the emerging middle class for savings and protection. The region's positive demographics, strong economic growth, sound public finances and favourable public policy environment with a clear preference for private provision of protection, have all led to a rapidly expanding middle class, with a strong and growing demand for our savings and protection products.
The US is the world's largest retirement savings market, with large cohorts of the 78 million baby-boomers1 reaching retirement age each year, creating significant demand for retirement income products. Our strategy in the US is to take advantage of this profitable growth opportunity.
In the UK, Prudential has adopted a focused strategy and competes selectively to help Britain's ageing population convert their accumulated wealth into retirement income. We have a clear focus on writing profitable new business while generating cash sustainably and preserving our capital. We concentrate on areas in which we have a clear competitive advantage, namely individual annuities and with-profits products, where we continue to be market leaders.
M&G has continued to focus on delivering superior investment performance for our customers while maximising the strength of its distribution capabilities. It has pursued business diversification both across geographies and asset classes.
assets under management
Eastspring Investments recently became the largest retail asset manager in Asia1, and continues to build a cohesive regional presence, penetrating the off shore segment more effectively.
assets under management
A strong performance based on consistent strategy
Value for customers and real returns for shareholders
European Embedded Value new business profit. Up 14%.
International Financial Reporting Standards operating profit based on longer-term investment returns*. Up 25%.
Business unit net remittances. Up 9%.
European Embedded Value operating profit from long-term business. Up 10%.
*2011 comparative adjusted for retrospective application of the accounting policy change for deferred acquisition costs as discussed in note A5 of the IFRS financial statements.
*Based on operating profit before other income and expenditure.
Prudential Corporation Asia