A Resilient Performance In 2022, Well Positioned For Opportunities In 2023 And Beyond

HONG KONG SAR - Media OutReach - 15 March 2023 - Performance highlights for the continuing business on a constant (and actual) exchange rate basis¹

• APE sales² up 9 per cent (5 per cent) to $4,393 million with both agency and bancassurance channels delivering APE sales growth in the second half of 2022
• New business profit³ down (11) per cent ((14) per cent) to $2,184 million with the impact of higher volumes being offset by higher interest rates and business mix effects
• Adjusted operating profit⁴ up 8 per cent (4 per cent) to $3,375 million
• EEV operating profit⁵ up 15 per cent (12 per cent) to $3,952 million. EEV shareholders equity is $42.2 billion, equivalent to 1,534 cents per share
• GWS shareholder capital surplus over GPCR of $15.6 billion⁶, equivalent to a cover ratio of 307 per cent⁶ (2021: 320 per cent⁷)
• Operating free surplus generated⁸ from life and asset management business up 9 per cent (6 per cent) to $2,193 million
• Second interim dividend of 13.04 cents per share, 18.78 cents per share for the full year, up 9 per cent

"2022 was the first full year for the Group as an Asia and Africa focused business. We have delivered a resilient performance against a backdrop of Covid-19-related disruption and broader macroeconomic volatility. The results reflect the advantage of our diversified business model across the Asia region, highlighted by a balanced contribution to APE sales and new business profit from Hong Kong, the Chinese Mainland and Taiwan and from South-east Asia, including Singapore, Indonesia and Malaysia. "The removal of the bulk of Covid-19-related restrictions across the region and the progressive opening up of the Chinese Mainland economy has meant that 2023 has started well with encouraging progress in year-on-year sales, with Group-wide APE sales for the two months ended February 2023 up 15 per cent⁹ over the prior year. In Hong Kong we have seen a gradual increase in cross-border traffic from the Chinese Mainland as travel restrictions are eased. Demand for savings products across the Hong Kong business is driving the increase in APE sales in the first two months of 2023. "I'm honoured to have joined Prudential at such an exciting time with a tremendous opportunity for long term growth ahead of us. As we celebrate our 175th anniversary and 100 years of operations in Asia, the brand is as strong as ever, with leading market positions in many of our key markets. Our progress over recent years is a testament to our people, reflecting their talent and their commitment to serving our customers." Anil Wadhwani Chief Executive Officer

Summary financials	Full year2022 $m	Full year2021 $m	Change on AER basis1	Change on CER basis1
New business profit3	2,184	2,526	(14)%	(11)%
Operating free surplus generated8	2,193	2,071	6%	9%
Adjusted operating profit4	3,375	3,233	4%	8%
IFRS profit after tax10	1,007	2,214	(55)%	(53)%
31 Dec 2022		31 Dec 2021
Total	Per share	Total	Per share
EEV shareholders' equity	$42.2bn	1,534¢	$47.4bn	1,725¢
IFRS shareholders' equity	$17.0bn	617¢	$17.1bn	622¢

IFRS 17 Update Effective 1 January 2023, the new insurance accounting standard, IFRS 17, will replace IFRS 4. This change will impact the timing of profit recognition and initial shareholders' equity, but will not affect the Group's regulatory capital generation or management, operating free surplus generation, business strategy, EEV basis results or dividend policy. In summary, we expect an increase in the opening shareholder equity on 1 January 2022 of between $1.8 billion and $2.7 billion, reflecting the positive cumulative impact of net timing differences. The adjusted IFRS shareholders' equity¹¹ is also expected to be more closely aligned with the Group's audited EEV shareholders' equity. Looking ahead, the Group estimates a decrease in the adjusted IFRS 17 operating profit for 2022 of between $650 million and $850 million compared with IFRS 4. This is largely due to timing differences that led to the increase in shareholders' equity and the removal of one off gains recognised in IFRS 4 that will be smoothed into profit in IFRS 17. More details on the impact of IFRS 17 adoption will be provided in June 2023. Notes 1 Further information on actual and constant exchange rate bases is set out in note A1 of the IFRS financial statement. All results are presented in US dollars. 2 APE sales is a measure of new business activity that comprises the aggregate of annualised regular premiums and one-tenth of single premiums on new business written during the year for all...