PRUDENTIAL PLC

Jonathan Bloomer, Group Chief Executive

6 October 2004

Merrill Lynch Banking and Insurance Conference

“MANAGING COMPLEXITY”

1

This statement may contain certain “forward looking statements” with respect to certain of Prudential plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words “believes”, “intends”, “expects”, “plans”, “seeks” and “anticipates”, and words of similar meaning are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Prudential’s forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make.

2

ATTRACTIONS OF DIFFERENT MARKETS

3

Canada (2.2%)

US (32.1%)

Mexico(1.9%)

GuatemalaColombia Venezuela

Brazil(1.6%)

Equador

Peru

Chile

Argentina Uruguay

UK(4.7%)

Norway Sweden Finland

Denmark

Spain(1.9%)

Ireland

Portugal

France( 4.3%)

Belgium

Neth(1.2%)

Italy( 3.5%)

Switzerland Austria

Germany(5.9%)

Poland Ukraine

Russia (1.0%)

Czech Slk

Bel

RomSlvCroHungary

TurkeyGreece

Kaz

Uzb

Japan(13.5%)

South Korea(1.5%)

Australia(1.2%)

South Africa

NigeriaMorocco

TunisiaAlgeria Egypt

Israel

HongKong

China(3.8%)

Thailand

SingaporeMalaysia

Philippines

Indonesia

New Zealand

SyriaIndia(1.6%)

Ban

Pakistan

All othercountries

HOW MONEY SHAPES THE WORLD

Share of global Gross National Income, 2002 %GNI per capita (PPP basis) 2002

Prudential operationsRest of the world

Viet.

Taiwan

Adapted from the Financial Times, 20 January 2004

3

PRUDENTIAL PLC: GROUP STRUCTURE

AsiaUK & Europe USA

4

A MULTI-NATIONAL LIFE INSURANCE GROUP

INCREASING INTERNATIONAL DIVERSIFICATION

New business achieved profits

1998

New business achieved profits

2004 HY

53%

14%

33%

29%

44%

27%

UK and Europe

US Asia

5

ASIA

6

THE ASIAN OPPORTUNITY

Population (m)

3.3% 3.5%

4.9%5.9%

6.5% 6.6% 6.9%7.6% 8.0% 8.1%

8.6%

0%

2%

4%

6%

8%

10%

Japan Phil India Indo Thai HK Malay Korea Sing Taiw an China

Long-term GDP Growth Rates

Mutual Funds

Equities

Fixed Income Securities

Pensions

Life Insurance

Cash/Deposits

Other/Misc

0%

20%

40%

60%

80%

100%

HK Mal Sing Indi J ap Ta iw Ko r Tha i Chin P hil Indo US

Percentage of Holdings By Asset Class

Now 20301,259

98620612680766246222274

China IndiaIndonesia JapanVietnamPhilippinesThailand S. KoreaMalaysiaTaiwanHong Kong Singapore

1,4701,380

2851171101197753343284

18.5%22.3%

26.0% 27.8% 29.8%33.0%

36.4% 38.1%

51.2%

0%

10%

20%

30%

40%

50%

60%

US India Taiw an Japan HK Korea Thai Malay Sing

Savings Rates

7

THE ASIAN OPPORTUNITY

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP

North Asian markets dominate in terms of scale

Strong correlation between GDP per capita and penetration of life insurance

Inflexion point at $10,000 where life insurance takes off

Tremendous potential for nascent markets (eg Malaysia, urban populations in China and India) as they move up the curve

Penetration, 2002

Per Capita GDP, USD (log scale)

= $20bn in Direct Premiums

PhilippinesIndonesia

Thailand

MalaysiaSingapore

Hong Kong

India

Taiwan

China

S Korea

UK

Japan

US

0%

2%

4%

6%

8%

10%

12%

100 1,000 10,000 100,000

Vietnam

Life Penetration

Source: Sigma

8

ASIA: GEOGRAPHIC DIVERSIFICATION

GROWTH OF NEWER OPERATIONS

2001 APE SALES BY COUNTRYTOTAL £434m

2003 APE SALES BY COUNTRYTOTAL £555m

2002 APE SALES BY COUNTRYTOTAL £513m

Singapore14%

Malaysia11%

Taiwan24%

Japan6%

27%

Hong Kong18%

China, India, Indonesia, Korea, Philippines, Thailand and Vietnam

Singapore14%

Malaysia12%

Taiwan29%

Japan8%

18%

Hong Kong19%

Singapore21%

Malaysia11%

Taiwan31%

Japan7%

12%

Hong Kong18%

9

ASIA: POTENTIAL TO BE ONE OF WORLD’S LARGEST RFS MARKETS

INDIAIndia Life Insurance Market Shares

April 2002 - March 2003Joint venture with ICICI- restricted to 26% ownership

Full product rangeMulti-channel distribution

- 12 bank distribution agreements

Acknowledged as market leading operation

- ‘the leading private sector Indian life insurance company on all counts” *

- Insurance Award for “impressive growth and innovation” **

Private Share Total ShareLIC - 92.2%ICICI - Prudential 38.1% 3.0%Birla Sun Life 13.5% 1.1%HDFC Standard Life 13.5% 1.1%Max New York Life 8.0% 0.6%SBI Life 7.6% 0.6%Tata AIG 6.2% 0.5%Allianz Bajaj 5.6% 0.4%OM Kotak 3.2% 0.2%ING Vysya 1.8% 0.1%AVIVA Life 1.3% 0.1%MetLife 0.6% 0.1%AMP Sanmar 0.5% 0.0%

100.0% 100.0%

* Business Today; ** Outlook Money Magazine

10

ASIA: POTENTIAL TO BE ONE OF WORLD’S LARGEST RFS MARKETS

CHINA

50:50 with joint venture partner CITIC- c15% market share in Guangzhou- strong start in Beijing, Q3 launch in Suzhou

- fourth licence expected this year

Market undergoing further change- IPOs of domestic insurers- opening up of new cities and provinces

Main challenge is limited amount of experienced human resource

- PCA leverages Chinese speakers from existing operations

- already a well-known name

11

PRUDENTIAL CORPORATION ASIA: A WELL-ESTABLISHED BUSINESS MODEL

STRONG GROWTH IN SALES AND IN PROFIT

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 H1 2004

APE sales NBAP

£mStrategy has delivered excellent results

30% CAGR in AP shareholders’ funds since 1998

Now present in all 12 target markets

Product and distribution models well-established

Cash positive in 2006

At constant exchange rates

12

USA

13

INVESTABLE RETIREMENT ASSETS IN THE US

US HAS BY FAR THE LARGEST RETIREMENT ASSETS

$4.0$5.3

$7.3 $7.8

$9.2

$10.7

$12.5

$14.5

$6.6

$0

$5

$10

$15

1995 1997 1999 2001 2003 2005 2007 2009 2011

Total Private Retirement Market Assets

The US has more than 70% of the world’s retirement assets

The UK is second with 10%

$Trillions

Ret

irem

ent M

arke

t Ass

ets

Source: Cerulli Report, Retirement Industry Update: trends in 401(k) and IRA Markets 2002

14

JACKSON NATIONAL LIFE: OVERVIEW

Scale player in US life industry

Excellent product manufacturing and administrative capability

Relationship-driven distribution model

Strong risk management capabilities and financial discipline

Low-cost, flexible infrastructure

Consistent growth in GAAP assets

THE WORLD’S LARGEST RETIREMENT MARKET

15

JACKSON NATIONAL LIFE

FOCUS ON VALUE WHILE INCREASING SALES

0

100

200

300

400

500

600

700

800

900

1000

Q12002

Q22002

Q32002

Q42002

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

$m

January 2002

– launched Perspective II

August 2003

– doubled fees for GMDBs

– reduced minimum interest rates for fixed option

May 2004

– priced to increase gross margin by 25bps

Variable annuity premiums

16

JACKSON NATIONAL LIFE: CONTINUING POSITIVE TRENDS

STRONG GROWTH IN US GAAP ASSETS

$m

$46,727

$7,048$8,508

$45,813

$35,394

$37,428

$28,729$31,810

$25,638

$41,034

$33,816

$44,980

$1

$5,126

$4,522

$1,952$ 1,122

$5,586

$370

$4,386

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 H1 2004

General Account* VA General Account Assets** VA Separate Account

$29,148

$33,096$36,214

$40,521

$43,942

$47,242

$51,626

$56,080

$25,639

$58,590

* Excludes FAS-115, FAS-133, reverse repurchase obligations, and securities lending deposits** VA General Account Assets breakdown ($m) - 1995 = 0,1996 = $49, 1997 = $164, 1998 = $446, 1999 = $605, 2000 = $928, 2001 = $1082, 2002 = $2260, 2003 = $3219, H1 2004 = $3,355.

17

JACKSON NATIONAL LIFE: GROWTH FROM AN ADVANTAGED POSITION

LOW-COST STRUCTURE OFFERS COMPETITIVE ADVANTAGE

bp

•

0

100

200

300

400

500

600

700

0 5 10 15 20

••

•

•

•• •

••• •

•

•

•

•

•

•••

••

••

•

Exp

ense

s/A

nnui

ty P

rem

ium

s (b

p)

Annuity Premiums ($Bn)

800

25

• Market JNL 20032001 Curve

Source: National Underwriter Insurance data Services/Highline Data (formerly Thomson Financial)Note: Data points indicate peer competitors, cost curve represents universe of annuity competitors

2002 Curve 2003 Curve

18

UK AND EUROPE

19

LARGE OVERALL UK SAVINGS MARKET

TOTAL GROSS HOUSEHOLD WEALTH (£BN) 2003

Medium/long-term savings: £1,658 bn

Deposits: £808 bn

Equities: £370 bn

Bonds and loans: £44 bn

Other: £87 bn

Mutual funds: £136 bn

Residential property1: £2,575 bn

Total: £5,678 bn

Sources: ONS (UKEA Table 64, & Residential Property Blue Book Table 10.10)

1. Residential property data is 2002

20

UK INSURANCE OPERATIONS

A TIME OF CHANGE AND OPPORTUNITY

Market Prudential’s position

Environment beginning to stabilise

Market is concentrating: will favour stronger players

1.5% price cap provides opportunity

Clarity emerging on distribution

Restoring consumer confidence is key

Undisputed financial strength

Powerful product propositions

Scale business with low cost base and efficient operations

Net winners in changing distribution environment

The industry’s “biggest” brand

Clear beneficiary of market concentration

21

MARKET CONCENTRATION IN THE UK

MARKET SHARE OF TOP 10 LIFE PLAYERS HAS INCREASED TO 71%

40

60

80

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

71%

46%

% m

arke

t sha

re

Sources: Prudential / Datamonitor

22

UK INSURANCE OPERATIONS

DIVERSIFIED DISTRIBUTION STRATEGY

Business to Business Intermediaries Direct to Consumer Partnerships

APE sales (1H 03)

APE sales (1H 04)

£105m

£113m

£116m

£141m

£73m

£63m

£16m

£40m

% of UK APE sales (1H 04) 32% 39% 18% 11%

Consulting Actuaries and Benefit Advisers

Retail IFAs Direct Marketing Banks, Distributors, Retail BrandsChannel

Defined Benefit, Defined Contribution, AVC and Stakeholder Schemes, Bulk Annuities

With-Profit and Unit-Linked Bonds, Annuities, Protection

Individual Pensions, Annuities, Savings and Investments, Protection

Individual Pensions, Annuities, Savings and Investments, Protection

Product

23

UKIO KEY PRODUCT LAUNCHES

ACHIEVING MOMENTUM IN PRODUCT INNOVATION

DISTRIBUTION BOND

PROTECTION PROPOSITION

FLEXIBLE INVESTMENT PLAN

BULK S32

RISK MANAGEMENT PRODUCTS FOR DBPENSION SCHEMES

PROTECTION ENHANCEMENT

2003 2004 2005EQUITY

RELEASE

CORPORATE PENSION FUND RANGE

INDIVIDUAL PENSIONS PROPOSITION

PRUFUND

ISAsMONEYPURCHASE PLAN

24

CONCLUSION: ATTRACTIONS OF DIFFERENT MARKETS

Half of the UK workforce are estimated to be

under-saving for their retirement

Asia has many of the fastest

growingeconomies in

the world

40 million baby boomer households in America will move into retirement in the

next 20 years

70% of the world’s retirement assets are in the United States

Approximately 30% of the UK population is

forecast to be aged 60 and over by

2030 2030

Significant opportunities in

Asia due to strong savings

culture