PRUDENTIAL PLC HALF YEAR 2009 RESULTS PRUDENTIAL DELIVERS STRONG PERFORMANCE IN CHALLENGING CONDITIONS Capital & Dividend:   -  Improved and very strong Insurance Groups Directive ("IGD")      capital surplus estimated at GBP3.0 billion at 31 July 2009      and GBP 2.5 billion at 30 June 2009 (before any allowance      for 2009 interim dividend)   -  2009 half year dividend increased by 5%  to 6.29 pence per      share IFRS:   -  IFRS operating profit of GBP688 million up 6% * Embedded Value:   -  New Business Profit of GBP691 million up 25% *   -  EEV Operating Profit of GBP1,246 million down 8% * New Business:   -  Group EEV new business profit margin of 52% on an APE      basis (2008: 38%) *   -  Group new business APE premiums of GBP1,321 million down 8% * Mark Tucker, Group Chief Executive said: "These results demonstrate a continuing strong performance by the Prudential Group in what remain challenging market conditions. As a result of the decision we took last year to focus on capital conservation and cash generation by concentrating on expanding sales in our most profitable product lines, we have been able to manage our investment in new business and improve our margins across the Group in the first six months of the year. Compared with the same period in 2008 our Group EEV New Business Profit increased 25 per cent to GBP691 million, and our Group IFRS statutory operating profit increased six per cent to GBP688 million. Our Group EEV Operating Profit decreased eight per cent to GBP1,246 million. While our life businesses held their contribution at 2008 levels, market conditions held back the contribution from our asset management businesses and reduced income at Group level. Group new business APE premiums were GBP1,321 million, down eight per cent. In Asia, New Business Profit was GBP277 million, down 4.2 per cent but this compares with a very strong first half in 2008. It is particularly encouraging that demand for higher margin protection products remains resilient in Asia, and we believe that our relative position in the region is continuing to strengthen. Jackson, our US business, delivered total APE sales of GBP392 million in the first half of 2009, up 10 per cent on the first half of 2008. The company's retail sales were the highest in any first half in its history, as we continued to benefit from a flight to quality. Jackson's New Business Profit was GBP292 million, up 113 per cent. Prudential UK had a strong first half relative to the market, with total APE sales of GBP376 million, down 14 per cent, and retail sales of GBP374 million, down eight per cent. These lower sales resulted in a reduction in EEV New Business Profit of five per cent to GBP122 million, with the underlying new business margin increasing to 32 per cent, demonstrating the success of our strategy of focusing on value over volume. Despite the challenging market environment, our asset management businesses have continued to deliver record net inflows, capitalising on their leading market positions and history of strong investment performance. M&G continued to benefit from a combination of superior investment performance, diversified business mix and well-established distribution capabilities. These attributes helped M&G achieve an exceptionally strong first half, with net fund inflows of GBP8.6 billion up 254 per cent. Our prudent but proactive approach enabled us to strengthen further our Group capital position and, at 30 June 2009, we had an estimated IGD surplus of GBP2.5 billion before any allowance for the interim dividend, up from GBP1.5 billion at the end of 2008.