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Our businesses and
their performance

Asia: accelerate

Colleagues walking through the city

“Life insurance is a key driver in the
development of economies. We provide
financial protection for families and also
offer them savings opportunities tailored to
their needs. We then channel these savings
into investments in the economy which help to
drive further economic growth. We are very
much an organisation that does well by
doing good.”

Barry Stowe
Chief Executive
Prudential Corporation Asia

Barry Stowe

Performance highlights:

  • Performance is on track to deliver the 2017 financial objectives
  • Continued delivery across key value creation metrics. On a constant exchange rate basis, new business profit up 13 per cent, IFRS profits up 17 per cent, free surplus generation up 14 per cent
  • Increased agency2 active manpower, up 6 per cent and improved productivity, up 12 per cent
  • Renewed our long-standing distribution partnership with Standard Chartered Bank for a further 15 years and delivered APE growth of 20 per cent
  • Delivered record third-party net in-flows at Eastspring Investments and won multiple industry awards

Visit the Prudential Corporation Asia website

New business profit1 £m

2010 2011 2012 2013 2014
671 811 982 1139 1162

Total IFRS operating profit £m

  2010 2011 2012 2013 2014
591 774 924 1075  

*Gain on sale of China Life Insurance Company in Taiwan

Net cash remittances £m

2010 2011 2012 2013 2014
233 206 341 400 400

Eastspring Investments funds under management £bn

2010 2011 2012 2013 2014
52 50 58 60 77

Our strategy and operating principles

Our strategy and operating principles: Asia

Prudential’s strategy 'to accelerate' in Asia is well established and prioritises long-term, profitable growth driven by:

  • Focus on the long-term protection and savings needs of Asia’s rapidly growing middle classes;
  • High-quality, multichannel distribution; and
  • Regional asset management expertise.

Read more: Our strategy and operating principles

Market overview

Asia’s economic transformation continues to generate material increases in personal wealth and drives significant demand for solutions to individuals’ financial planning needs. During 2014 macroeconomic and geopolitical turbulence, both regional and international, created some short-term impacts but the region’s fundamental economic drivers remain highly compelling.

The degree of state-sponsored financial provision for healthcare and other social services varies by market, but is typically very basic and it is widely appreciated that the private sector has a very important complementary role. Protection gaps remain high across the region and the regulators have tasked the industry with improving levels of financial literacy and addressing this issue. Consequently the regulations governing the industry continue to evolve in largely positive ways with good outcomes for customers and shareholders.

There is a healthy competitive environment with a good mix of domestic, regional and international companies although barriers to entry remain high in terms of the availability of new licences, the significant capital investment and the challenge in building distribution scale and quality.

Given the low penetration rates of insurance and investment products we see considerable growth opportunities over the long term.

Drivers of wealth creation4
Asia (excluding Japan) 2013–2018 $tn

Drivers of wealth creation (Asia, excluding Japan, 2013-2018 - $tn). 2013 - 37, Existing aset growth - 8, Newly created wealth - 16, 2018 - 61
Asia share of global total pie charts. 2013 - 24%, Existing asset growth - 45%, Newly created wealth - 56%, 2018 - 31%

Open all

Favourable economic trends

Asia (excluding Japan) is leading the world in terms of gross domestic product (GDP) growth. In the period 2014 to 2018, it is expected to generate US$5.5 trillion3 of new GDP, more than the US and the other advanced economies combined.

Attractive demographics

Economic growth is translating into the rapid increase of the Asian middle class. Between 2009 and 2020 it is estimated that there will be over 1.2 billion people who will have been elevated from rural subsistence to urban lifestyles. Within our preferred ‘sweet spot’ markets of South-east Asia and Hong Kong, the middle class will be represented by over 400 million people. Families are getting smaller, life expectancies are lengthening and the incidence of chronic diseases is increasing significantly.

Strong demand for savings and protection products

As people move into the middle class, their increased wealth and higher income provide the incentive to make financial plans. Typically the first stage is to provide protection for the family and establish a regular savings plan through a life insurance policy.

Social welfare provisions vary by market, but generally fall well below the levels people need to sustain their families’ lifestyle in the event of a personal tragedy such as the diagnosis of a critical illness. Also, while basic medical services may be provided by the state, there can be a high level of out-of-pocket expenses, creating demand for financial solutions to significantly improve an individual’s experience through access to private medical services. Therefore, critical illness and medical riders are popular additions to life insurance policies.

Traditionally, Asians would have relied on their children to provide for them in their retirement, but increasingly people are making their own financial provisions and life insurance policies are a popular part of a retirement plan.

Once the savings and protection solutions are in place, there is the opportunity to invest. Single premium insurance policies are also important in more developed markets, and it is likely that customers will increasingly seek access to different asset classes through mutual funds as their wealth grows and financial needs become more sophisticated.

Life insurance distribution

Prudential Corporation Asia is well positioned in terms of its scale and diversity of distribution. Over 500,000 agents produce around 60 per cent of sales, with the remainder mainly coming from bancassurance that includes exclusive agreements with Standard Chartered Bank, UOB and Thanachart. At the core of our distribution model is face-to-face interaction with customers that delivers high-quality, needs-based advice.


Our product portfolio is tailored to suit the savings and protection needs of customers in each market.

For example, in markets such as Indonesia and Malaysia there is a high demand for regular premium unit-linked policies that provide coverage for hospital and surgical and critical illnesses, combined with savings for items such as children’s education. In Hong Kong there is high demand for participating products where the smoothed investment returns are particularly appealing as part of a broader financial plan.


Prudential Corporation Asia has over 13 million life insurance customers and over 22 million in-force policies. We actively monitor customer satisfaction levels across multiple indicators, but key statistics are the numbers of customers who keep their policies (our retention rate is over 90 per cent), and the number of customers who buy more policies from us (in 2014 more than 40 per cent of APE sales were from existing customers). This reflects the success of our advice-driven approach and shows that customers appreciate the value of the products we provide.

Innovations in service are also important to customer satisfaction. Some are technology based, such as e-submissions and automated underwriting, but a key component is also innovation with the human touch, such as Singapore’s PRUhealthcare assist.

Asset management

Eastspring Investments, Prudential’s asset management business in Asia, manages investments for Prudential’s Asia, UK and US life companies and also has a broad base of third-party retail and institutional clients. It has extended distribution reach to the US and Europe.

Eastspring Investments won multiple awards at the 2014 Asia Asset Management’s ‘Best of the Best Awards’ including ‘Best Asset Management and Asian Bond House’, ‘Best performance over three years for Japanese Equities’, ‘Best Korean Equity Manager’ and ‘Best Indian Fund House’.

Corporate social responsibility activities

Prudential is a committed member of the communities where we operate and, through the Prudence Foundation, we drive social responsibility activities, with a focus on providing disaster relief, promoting financial literacy and children’s education.

During 2014, Prudential extended its highly successful children’s financial literacy programme, ‘Cha-Ching’. We also launched the SafeSteps programme with an initial series of six infomercials, featuring SafeSteps ambassador Manny Pacquiao, that provide life-saving advice in the event of a natural disaster. These have been very well received.

In November 2013, the Philippines suffered one of the worst disasters in its history, Typhoon Haiyan. Prudential has now made three trips to the area with volunteer staff and agents who have assisted in the rebuilding efforts.

13m life customers

90%+ life customer retention rate

Our ‘sweet-spot’ markets

Prudential Corporation Asia is a powerful franchise with a wide footprint in the right markets, established go-to market capabilities and superior brand strength.

Sweet spots map

‘Sweet spot’ middle-class population5 number of people

Prudential customer % of middle class6

2010: 291 million, 2020: 403m (increase of 112 million)

Indonesia (1)

Unmatched platform with scale and geographic reach

  • 371 agency offices in 152 cities
  • Largest agency force
  • Hi-tech agency training and licensing
  • ‘All-in-one’ product solution combines protection, investment and savings
  • Conventional and Takaful options
  • Value-add services such as 'PRUHospital Friends'

Singapore (1)

Professional agency complemented by a distinctive range of bank partners

  • Market-leading PruShield product drives customer acquisition
  • Number one for regular premium new business
  • Expanding high net worth segment

Hong Kong (3)

Resilient distribution platform

  • Leading insurer with scale in agency and bank distribution
  • 2014 saw 24 per cent increase in active manpower and a 24 per cent increase in productivity
  • Successful partnership with Standard Chartered Bank now in 17th year
  • Product innovations drive new customer acquisition and repeat sales

Malaysia (1)

Well positioned to capture emerging
opportunity in Bumi segment

  • Most productive agency7 in the industry
  • Pioneer in linked policies with riders for flexible savings and protection
  • Over 31 per cent7 market share of Takaful (Sharia compliant) life business

Philippines (2)

Rapidly scaling up distribution

  • More than doubled agency size in less than two years
  • Expanding across country
  • Improving efficiency – 80 per cent of policies now processed 'straight through'
  • Market leader in linked-with-protection policies

Vietnam (1)

Long-term industry leader

  • Industry number one since 2007
  • 32 per cent of industry's agents, productivity increased by 9 per cent in 2014
  • Building bancassurance; eight partners and access to 260 branches

Thailand (8)

Excellent bancassurance platform

  • Doubled market share following acquisition of Thanachart Life in 2013
  • Access to 800 branches nationwide with partners – SCB, UOB and Thanachart Bank


Our ‘sweet-spot’ markets

Prudential Corporation Asia is a powerful franchise with a wide footprint in the right markets, established go-to market capabilities and superior brand strength.

‘Sweet spot’ middle-class population5 number of people

Prudential customer % of middle class6

2010: 291 million, 2020: 403m (increase of 112 million)


  • Our 'sweet spot' markets
  • Our other Asia markets

Help when customers need it the most

Pru healthcase assist

PRUhealthcare assist  (PHA), launched in May 2014, is a first-to-market helpline service available exclusively to PRUshield medical insurance customers in Singapore; the first such service in this market.

The helpline is manned by medically-trained professionals, and helps customers make informed decisions based on individual circumstances about treatment, surgery, hospitalisation and medical insurance coverage. PHA also assists customers with priority booking of appointments with specialists, and provides medical information that focuses on clinical and service quality.

In addition, PHA advises PRUshield customers on their eligibility to claim on policy benefits on various medical conditions, surgical and laboratory procedures.

Prudential is the only insurance company in Singapore to provide such a service to all its Shield customers, and at no extra charge.

Vist the PRUhealthcare assist website

() Prudential’s rank in insurance market by new business APE. Based on formal (competitors’ results releases, local regulators, insurance associations) and informal (industry exchange) market-share data.


  1. The 2014 EEV results of the Group are presented on a post-tax basis and, accordingly, prior years’ results are shown on a comparable basis.
  2. Agency excluding India.
  3. Prudential estimates based on IMF data – October 2013.
  4. Source: BCG Global Wealth 2014 – Riding a wave of growth.
  5. Asian Development Bank (ADB) – Key indicators for Asia and the Pacific 2010. Prudential estimates.
  6. Prudential customers as at 30 September 2014.
  7. Based on APE sales. Source: LIAM and ISM.


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United States: build on strength

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