Prudential (PUK) 20-F 20 Mar 20 2019 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2019shares
Document and Entity Information
Entity Registrant Name	PRUDENTIAL PLC
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity Incorporation, State or Country Code	X0
Entity Central Index Key	0001116578
Document Type	20-F
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	2,601,159,949
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Consolidated income statement

Consolidated income statement - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Continuing operations:
Gross premiums earned		$ 45,064	$ 45,614	$ 39,800
Outward reinsurance premiums		(1,583)	(1,183)	(1,304)
Earned premiums, net of reinsurance		43,481	44,431	38,496
Investment return		49,555	(9,117)	35,574
Other income		700	531	1,319
Total revenue, net of reinsurance		93,736	35,845	75,389
Benefits and claims		(85,475)	(26,518)	(63,718)
Reinsurers' share of benefits and claims		2,985	1,598	1,330
Movement in unallocated surplus of with-profits funds		(1,415)	1,494	(1,420)
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance		(83,905)	(23,426)	(63,808)
Acquisition costs and other expenditure		(7,283)	(8,527)	(8,649)
Finance costs: interest on core structural borrowings of shareholder-financed businesses		(516)	(547)	(548)
(Loss) gain on disposal of businesses and corporate transactions		(142)	(107)	292
Total charges net of reinsurance		(91,846)	(32,607)	(72,713)
Share of profit from joint ventures and associates net of related tax		397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)	[1]	2,287	3,557	2,909
Remove tax charge attributable to policyholders' returns		(365)	(107)	(321)
Profit before tax attributable to shareholders' returns		1,922	3,450	2,588
Total tax charge attributable to shareholders' and policyholders' returns		(334)	(676)	(1,161)
Remove tax charge attributable to policyholders' returns		365	107	321
Tax credit (charge) attributable to shareholders' returns		31	(569)	(840)
Profit from continuing operations		1,953	2,881	1,748
Discontinued UK and Europe operations after tax		1,319	1,142	1,333
Re-measurement of discontinued operations on demerger		188
Cumulative exchange loss recycled from other comprehensive income		(2,668)
(Loss) profit from discontinued operations		(1,161)	1,142	1,333
Profit for the year		792	4,023	3,081
Attributable to:
Equity holders of the Company from continuing operations		1,944	2,877	1,747
Equity holders of the Company from discontinued operations		(1,161)	1,142	1,333
Non-controlling interests from continuing operations		9	4	1
Profit for the year		$ 792	$ 4,023	$ 3,081
Basic
Based on profit from continuing operations (in USD per share)		$ 0.751	$ 1.117	$ 0.680
Based on (loss) profit from discontinued operations (in USD per share)		(0.448)	0.443	0.520
Basic (in USD per share)		0.303	1.560	1.200
Diluted
Based on profit from continuing operations (in USD per share)		0.751	1.117	0.679
Based on (loss) profit from discontinued operations (in USD per share)		(0.448)	0.443	0.520
Diluted (in USD per share)		$ 0.303	$ 1.560	$ 1.199
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.

Consolidated statement of compr

Consolidated statement of comprehensive income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated statement of comprehensive income
Profit for the year from continuing operations	$ 1,953	$ 2,881	$ 1,748
Exchange movements on foreign operations and net investment hedges:
Exchange movements arising during the year	152	(39)	129
Cumulative exchange gain of sold Korea life business recycled through profit or loss			(78)
Related tax	(15)	7	(6)
Exchange movements on foreign operations and net investment hedges	137	(32)	45
Valuation movements on available-for-sale debt securities:
Net unrealised gains (losses) on holdings	4,208	(2,144)	761
Deduct net gains included in the income statement on disposal and impairment	(185)	(15)	34
Total	4,023	(2,159)	795
Related change in amortisation of deferred acquisition costs	(631)	328	(98)
Related tax	(713)	385	(71)
Valuation movements on available-for-sale debt securities	2,679	(1,446)	626
Total items that may be reclassified subsequently to profit or loss	2,816	(1,478)	671
Shareholders' share of actuarial gains and losses on defined benefit pension schemes:
Net actuarial (losses) gains on defined benefit pension schemes	(108)	26	44
Related tax	19	(5)	(8)
Total items that will not be reclassified to profit or loss	(89)	21	36
Other comprehensive income (loss) from continuing operations	2,727	(1,457)	707
Total comprehensive income from continuing operations	4,680	1,424	2,455
(Loss) profit from discontinued operations	(1,161)	1,142	1,333
Cumulative exchange loss recycled through profit or loss	2,668
Other items, net of related tax	203	(605)	1,023
Total comprehensive income from discontinued operations	1,710	537	2,356
Total comprehensive income for the year	6,390	1,961	4,811
Attributable to:
Equity holders of the Company from continuing operations	4,669	1,419	2,454
Equity holders of the Company from discontinued operations	1,710	537	2,356
Non-controlling interests from continuing operations	11	5	1
Total comprehensive income for the year	$ 6,390	$ 1,961	$ 4,811

Consolidated statement of chang

Consolidated statement of changes in equity - USD ($) $ in Millions	Shareholders' equity	Share capital	Share premium	Retained earnings	Translation reserve	Available-for-sale securities reserves	Non-controlling interests	Total
Reserves
Profit from continuing operations	$ 1,747			$ 1,747			$ 1	$ 1,748
Exchange movements on foreign operations and net investment hedges net of related tax	45				$ 45			45
Net unrealised valuation movements net of related change in amortisation of deferred acquisition costs and related tax	626					$ 626		626
Shareholders' share of actuarial gains and losses on defined benefit pension schemes net of tax	36			36				36
Total other comprehensive income (loss) from continuing operations								707
Total comprehensive income from continuing operations	2,454			1,783	45	626	1	2,455
Total comprehensive income (loss) from discontinued operations	2,356			1,412	944			2,356
Total comprehensive income for the year	4,810			3,195	989	626	1	4,811
Dividends	(1,525)			(1,525)				(1,525)
Reserve movements in respect of share-based payments	115			115				115
Change in non-controlling interests							7	7
Share capital and share premium
New share capital subscribed	27		$ 27					27
Impact of change in presentation currency in relation to share capital and share premium	243	$ 16	227					243
Treasury shares
Movement in own shares in respect of share-based payment plans	(19)			(19)				(19)
Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS	(12)			(12)				(12)
Net increase (decrease) in equity	3,639	16	254	1,754	989	626	8	3,647
Balance at beginning of year at Dec. 31, 2016	18,123	159	2,381	17,555	(2,325)	353	1	18,124
Balance at end of year at Dec. 31, 2017	21,762	175	2,635	19,309	(1,336)	979	9	21,771
Reserves
Profit from continuing operations	2,877			2,877			4	2,881
Exchange movements on foreign operations and net investment hedges net of related tax	(33)				(33)		1	(32)
Net unrealised valuation movements net of related change in amortisation of deferred acquisition costs and related tax	(1,446)					(1,446)		(1,446)
Shareholders' share of actuarial gains and losses on defined benefit pension schemes net of tax	21			21				21
Total other comprehensive income (loss) from continuing operations	(1,458)			21	(33)	(1,446)	1	(1,457)
Total comprehensive income from continuing operations	1,419			2,898	(33)	(1,446)	5	1,424
Total comprehensive income (loss) from discontinued operations	537			1,218	(681)			537
Total comprehensive income for the year	1,956			4,116	(714)	(1,446)	5	1,961
Dividends	(1,662)			(1,662)				(1,662)
Reserve movements in respect of share-based payments	92			92				92
Change in non-controlling interests							9	9
Movements in respect of option to acquire non-controlling interests	(146)			(146)				(146)
Share capital and share premium
New share capital subscribed	23	1	22					23
Impact of change in presentation currency in relation to share capital and share premium	(165)	(10)	(155)					(165)
Treasury shares
Movement in own shares in respect of share-based payment plans	39			39				39
Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS	69			69				69
Net increase (decrease) in equity	206	(9)	(133)	2,508	(714)	(1,446)	14	220
Balance at end of year at Dec. 31, 2018	21,968	166	2,502	21,817	(2,050)	(467)	23	21,991
Reserves
Profit from continuing operations	1,944			1,944			9	1,953
Exchange movements on foreign operations and net investment hedges net of related tax	135				135		2	137
Net unrealised valuation movements net of related change in amortisation of deferred acquisition costs and related tax	2,679					2,679		2,679
Shareholders' share of actuarial gains and losses on defined benefit pension schemes net of tax	(89)			(89)				(89)
Total other comprehensive income (loss) from continuing operations	2,725			(89)	135	2,679	2	2,727
Total comprehensive income from continuing operations	4,669			1,855	135	2,679	11	4,680
Total comprehensive income (loss) from discontinued operations	1,710			(1,098)	2,808			1,710
Total comprehensive income for the year	6,379			757	2,943	2,679	11	6,390
Demerger dividend in specie of M&G plc	(7,379)			(7,379)				(7,379)
Dividends	(1,634)			(1,634)				(1,634)
Reserve movements in respect of share-based payments	64			64				64
Change in non-controlling interests							158	158
Movements in respect of option to acquire non-controlling interests	(143)			(143)				(143)
Share capital and share premium
New share capital subscribed	22		22					22
Impact of change in presentation currency in relation to share capital and share premium	107	6	101					107
Treasury shares
Movement in own shares in respect of share-based payment plans	38			38				38
Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS	55			55				55
Net increase (decrease) in equity	(2,491)	6	123	(8,242)	2,943	2,679	169	(2,322)
Balance at end of year at Dec. 31, 2019	$ 19,477	$ 172	$ 2,625	$ 13,575	$ 893	$ 2,212	$ 192	$ 19,669	[1]
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Consolidated statement of cha_2

Consolidated statement of changes in equity (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Total comprehensive income (loss) from discontinued operations for the period	$ 1,710
Exchange gain	140
Cumulative exchange loss recycled through profit or loss	2,668
Translation reserve
Total comprehensive income (loss) from discontinued operations for the period	$ 2,808

Consolidated statements of fina

Consolidated statements of financial position - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Assets
Goodwill	[1]	$ 969
Deferred acquisition costs and other intangible assets	[1]	17,476
Property, plant and equipment		1,065	[1],[2]	$ 482
Reinsurers' share of insurance contract liabilities		13,856	[1]	12,024
Deferred tax assets		4,075	[1]	3,145
Current tax recoverable		492	[1]	476
Accrued investment income		1,641	[1]	3,501
Other debtors		2,054	[1]	5,207
Investment properties	[1]	25
Investment in joint ventures and associates accounted for using the equity method	[1]	1,500
Loans		16,583	[1]	15,849
Equity securities and holdings in collective investment schemes	[1],[3]	247,281
Debt securities		134,570	[1],[3]	113,860
Derivative assets		1,745	[1]	4,450
Other investments	[1],[3]	1,302
Deposits	[1]	2,615
Cash and cash equivalents		6,965	[1]	9,394		$ 6,604
Total assets	[1]	454,214
Equity
Shareholders' equity		19,477	[1]	21,968
Non-controlling interests	[1]	192
Total equity		19,669	[1]	21,991		21,771
Liabilities
Insurance contract liabilities	[1]	380,143
Investment contract liabilities with discretionary participation features		633	[1]	85,858
Investment contract liabilities without discretionary participation features		4,902	[1]	24,481
Unallocated surplus of with-profits funds	[1]	4,750
Core structural borrowings of shareholder-financed businesses	[1]	5,594
Operational borrowings	[1],[2]	2,645
Obligations under funding, securities lending and sale and repurchase agreements	[1]	8,901
Net asset value attributable to unit holders of consolidated unit trusts and similar funds	[1]	5,998
Deferred tax liabilities		5,237	[1]	3,771
Current tax liabilities		396	[1]	411
Accruals, deferred income and other liabilities		14,488	[1]	13,338
Provisions		466	[1]	427
Derivative liabilities		392	[1]	4,465
Total liabilities	[1]	434,545
Total equity and liabilities	[1]	454,214
Continuing and discontinued operations
Assets
Goodwill		969		2,365	[1],[4]	2,005	[1],[4]
Deferred acquisition costs and other intangible assets		17,476		15,185	[1],[4]	14,896	[1],[4]
Property, plant and equipment	[1],[2],[4]			1,795		1,067
Reinsurers' share of insurance contract liabilities	[1],[4]			14,193		13,086
Deferred tax assets		4,075		3,305	[1],[4]	3,554	[1],[4]
Current tax recoverable	[1],[4]			787		829
Accrued investment income	[1],[4]			3,501		3,620
Other debtors	[1],[4]			5,207		4,009
Investment properties	[1],[4]			22,829		22,317
Investment in joint ventures and associates accounted for using the equity method	[1],[4]			2,207		1,916
Loans	[1],[4]			22,938		23,054
Equity securities and holdings in collective investment schemes	[1],[3],[4]			273,484		302,203
Debt securities	[1],[3],[4]			223,333		231,835
Derivative assets	[1],[4]			4,450		6,495
Other investments	[1],[3],[4]			8,294		7,605
Deposits	[1],[4]			15,023		15,200
Assets held for sale	[1],[4]			13,472		51
Cash and cash equivalents	[1],[4]			15,442		14,461
Total assets	[1],[4]			647,810		668,203
Equity
Shareholders' equity	[1],[4]			21,968		21,762
Non-controlling interests	[1],[4]			23		9
Total equity	[1],[4]			21,991		21,771
Liabilities
Insurance contract liabilities	[1],[4]			410,947		443,952
Investment contract liabilities with discretionary participation features	[1],[4]			85,858		84,789
Investment contract liabilities without discretionary participation features	[1],[4]			24,481		27,589
Unallocated surplus of with-profits funds	[1],[4]			20,180		22,931
Core structural borrowings of shareholder-financed businesses	[1],[4]			9,761		8,496
Operational borrowings	[1],[2],[4]			6,289		7,450
Obligations under funding, securities lending and sale and repurchase agreements	[1],[4]			8,901		7,660
Net asset value attributable to unit holders of consolidated unit trusts and similar funds	[1],[4]			14,839		12,025
Deferred tax liabilities		$ 5,237		5,122	[1],[4]	6,378	[1],[4]
Current tax liabilities	[1],[4]			723		726
Accruals, deferred income and other liabilities	[1],[4]			19,421		19,190
Provisions	[1],[4]			1,373		1,519
Derivative liabilities	[1],[4]			4,465		3,727
Liabilities held for sale	[1],[4]			13,459
Total liabilities	[1],[4]			625,819		646,432
Total equity and liabilities	[1],[4]			$ 647,810		$ 668,203
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	As at 1 January 2019, the Group applied IFRS 16 ‘Leases’, using the modified retrospective approach. Under this approach, comparative information is not restated. The application of the standard has resulted in the recognition of an additional lease liability and a corresponding ‘right-of-use’ asset of a similar amount as at 1 January 2019. See note A3 and note C13 for further details.
[3]	Included within equity securities and holdings in collective investment schemes, debt securities and other investments are $90 million of lent securities as at 31 December 2019 (31 December 2018: $10,543 million, of which $107 million were from continuing operations).
[4]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Consolidated statements of fi_2

Consolidated statements of financial position (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Statement
Lent securities	$ 90	$ 107
Continuing and discontinued operations
Statement
Lent securities		$ 10,543

Consolidated statement of cash

Consolidated statement of cash flows - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Profit before tax (being tax attributable to shareholders' and policyholders' returns)	[1]	$ 2,287		$ 3,557	$ 2,909
Adjustments to profit before tax for non-cash movements in operating assets and liabilities:
Investments		(60,812)		2,236	(45,893)
Other non-investment and non-cash assets		(2,487)		(1,996)	(1,906)
Policyholder liabilities (including unallocated surplus)		56,067		(1,641)	42,763
Other liabilities (including operational borrowings)		5,097		860	3,389
Investment income and interest payments included in profit before tax		(4,803)		(4,148)	(4,609)
Operating cash items:
Interest receipts and payments		4,277		3,912	4,293
Dividend receipts		978		744	848
Tax paid		(717)		(477)	(611)
Other non-cash items		(96)		308	664
Net cash flows from operating activities		(209)		3,355	1,847
Cash flows from investing activities
Purchases of property, plant and equipment		(64)		(134)	(98)
Acquisition of businesses and intangibles	[2]	(635)		(442)	(304)
Disposal of businesses		375			139
Net cash flows from investing activities		(324)		(576)	(263)
Equity capital:
Issues of ordinary share capital		22		23	27
External dividends		(1,634)		(1,662)	(1,525)
Net cash flows from financing activities		(2,457)		(659)	(2,258)
Net (decrease) increase in cash and cash equivalents from continuing operations	[3]	(2,990)		2,120	(674)
Net cash flows from discontinued operations	[3]	(5,690)		(610)	1,618
Cash and cash equivalents at beginning of year		15,442		14,461	12,437
Effect of exchange rate changes on cash and cash equivalents		203		(529)	1,080
Cash and cash equivalents at end of year		6,965		15,442	14,461
Comprising:
Cash and cash equivalents from continuing operations		6,965	[4]	9,394	6,604
Cash and cash equivalents from discontinued operations				6,048	7,857
Shareholder-backed
Structural borrowings of shareholder-financed operations:
Issue of subordinated debt, net of costs	[5]	367		2,079	728
Redemption of subordinated debt	[5]	(504)		(553)	(1,016)
Fees paid to modify terms and conditions of debt issued by the Group	[5]	(182)		(44)
Interest paid	[5]	$ (526)		$ (502)	$ (472)
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.
[2]	Cash flows arising from the acquisition of business and intangibles includes amounts paid for distribution rights.
[3]	The cash flows shown above are presented excluding any transactions between continuing and discontinued operations.
[4]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[5]	Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, non-recourse borrowings of investment subsidiaries of shareholder-financed businesses and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from operating activities. The changes in the carrying value of the structural borrowings of shareholder-financed businesses for the Group are analysed in note C6.1.

Basis of preparation and accoun

Basis of preparation and accounting policies	12 Months Ended
	Dec. 31, 2019
Basis of preparation and accounting policies
Basis of preparation and accounting policies	Prudential plc and subsidiaries Notes to the consolidated financial statements 31 December 2019 A Basis of preparation and accounting policies A1 Basis of preparation and exchange rates Prudential plc (‘the Company’) together with its subsidiaries (collectively, ‘the Group’ or ‘Prudential’) is an international financial services group. The Group has operations in Asia, the US, Africa and, prior to the demerger of M&G plc in October 2019, UK and Europe. The Group helps individuals to de-risk their lives and deal with their biggest financial concerns through life and health insurance, and retirement and asset management solutions. On 21 October 2019, the Company completed the demerger of M&G plc, its UK and Europe operations, from Prudential plc resulting in two separately-listed companies. It has therefore reclassified these operations as discontinued in these financial statements (see note A2). Basis of preparation These statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union (EU) as required by EU law (IAS Regulation EC1606/2032). EU-endorsed IFRS may differ from IFRS issued by the IASB if, at any point in time, new or amended IFRS have not been endorsed by the EU. At 31 December 2019, there were no unendorsed standards effective for the three years ended 31 December 2019 which impact the consolidated financial statements of the Group and there were no differences between IFRS endorsed by the EU and IFRS issued by the IASB in terms of their application to the Group. For financial years beginning after 31 December 2020, the Group will prepare its consolidated financial statements in accordance with UK-adopted international accounting standards, instead of the EU-endorsed IFRS. These statements have been prepared on a going concern basis. The Group IFRS accounting policies are the same as those applied for the year ended 31 December 2018 with the exception of the adoption of the new and amended accounting standards as described in note A3. Exchange rates Following the demerger of its UK and Europe operations, the Directors have elected to change the Group’s presentation currency in these financial statements from pounds sterling to US dollars which better reflects the economic footprint of our business going forward. The Group believes that the presentation currency change will give investors and other stakeholders a clearer understanding of Prudential’s performance over time. The change in presentation currency is a voluntary change which is accounted for retrospectively in the comparative information and all comparative statements and notes have been restated accordingly applying the foreign exchange translation principles as set out below. The exchange rates applied for balances and transactions in the presentation currency of the Group, US dollars ($),and other currencies were: Closing Average rate Closing Average rate Closing Average rate Opening rate at for rate at for rate at for rate at $: local currency 31 Dec 2019 31 Dec 2018 31 Dec 2017 1 Jan 2017 China 6.97 6.91 6.87 6.61 6.51 6.76 6.95 Hong Kong 7.79 7.84 7.83 7.84 7.82 7.79 7.75 Indonesia 13,882.50 14,140.84 14,380.00 14,220.82 13,567.00 13,383.03 13,471.96 Malaysia 4.09 4.14 4.13 4.03 4.05 4.30 4.49 Singapore 1.34 1.36 1.36 1.35 1.34 1.38 1.44 Thailand 29.75 31.05 32.56 32.30 32.59 33.91 35.81 UK 0.75 0.78 0.79 0.75 0.74 0.78 0.81 Vietnam 23,172.50 23,227.64 23,195.00 23,017.17 22,708.16 22,716.82 22,770.08 Foreign exchange translation In order to present the consolidated financial statements in US dollars, the results and financial position of entities not using US dollars as functional currency (ie the currency of the primary economic environment in which the entity operates) must be translated into the US dollars. The general principle for converting foreign currency transactions is to translate at the functional currency spot rate prevailing at the date of the transactions. This includes external dividends determined and paid to shareholders in pounds sterling. Prudential will determine and declare its dividend in US dollars commencing with dividends paid in 2020, including the 2019 second interim dividend. All assets and liabilities of entities not operating in US dollars are converted at closing exchange rates while all income and expenses are converted at average exchange rates where this is a reasonable approximation of the rates prevailing on transaction dates. The impact of these currency translations is recorded as a separate component in the statement of comprehensive income. At 31 December 2019 the functional currency of the Group’s parent company changed to US dollars. The Group and parent company have chosen, for presentational purposes, to retranslate their share capital and share premium as at 31 December 2019 using the closing exchange rate as at that date, and comparative amounts at the relative closing exchange rates. The foreign exchange adjustments arising on the share capital and share premium balances of $2,797 million (31 December 2018: $2,668 million) adjust the translation reserve movement in the statement of other comprehensive income. As this amount arises on the translation of the parent company’s share capital and share premium, the corresponding impact to the currency translation reserve of $980 million will never be recycled on disposal of any foreign operations. During 2019 and 2018, borrowings that are used to provide a hedge against Group equity investments in overseas entities were translated at year end exchange rates and movements recognised in other comprehensive income. Other foreign currency monetary items are translated at year end exchange rates with changes recognised in the income statement. Certain notes to the financial statements present 2018 comparative information at constant exchange rates (CER), in addition to the reporting at actual exchange rates (AER) used throughout the consolidated financial statements. AER are actual historical exchange rates for the specific accounting period, being the average rates over the period for the income statement and the closing rates at the balance sheet date for the statement of financial position. CER results are calculated by translating prior period results using the current period foreign exchange rate, ie current period average rates for the income statement and current period closing rates for the statement of financial position. The effect of foreign exchange movement from continuing operations arising during the years shown recognised in other comprehensive income is: 2019 $m 2018 $m 2017 $m Asia operations 194 (206) 363 Unallocated to a segment (other funds) (42) 167 (234) 152 (39) 129 The consolidated financial statements do not represent Prudential’s statutory accounts for the purposes of the UK Companies Act. These financial statements are based on the prescribed formats. The Group’s external auditors have reported on the 2019, 2018 and 2017 statutory accounts. Statutory accounts for 2018 and 2017 have been delivered to the UK Registrar of Companies and those for 2019 will be delivered following the Company’s Annual General Meeting. The auditor’s reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006. A2 Discontinued operations The Group completed the demerger of its UK and Europe operations, M&G plc, from the Prudential plc group on 21 October 2019. In accordance with IFRS 5 ‘Non-Current Assets Held for Sale and Discontinued Operations’ , the results of M&G plc have been reclassified as discontinued operations in these consolidated financial statements. Consistent with IFRS 5 requirements, profit after tax attributable to the discontinued UK and Europe operations in 2019 have been shown in a single line in the income statement with 2018 and 2017 comparatives being restated accordingly, with further analysis provided in note D2. Notes B1 to B5 have also been prepared on this basis. IFRS 5 does not permit the comparative 31 December 2018 and 1 January 2018 statement of financial position to be re-presented, as the UK and Europe operations were not reclassified as held for sale at these dates. In the related balance sheet notes, prior year balances have been presented to show the amounts from discontinued operations separately from continuing operations in order to present the results of the continuing operations on a comparable basis. Additionally, in the analysis of movements in Group’s assets and liabilities between the beginning and end of the years, the balances of the discontinued UK and Europe operations are removed from the opening balances to show the underlying movements from continuing operations. Profit from the discontinued UK and Europe operations up to the demerger is presented in the consolidated income statement after the elimination of intragroup transactions with continuing operations where it is appropriate to provide a more meaningful presentation of the position of the Group immediately after the demerger. The statement of cash flows is presented excluding intragroup cash flows between the continuing and discontinued UK and Europe operations up to demerger. A3 New accounting pronouncements in 2019 IFRS 16 ‘ Leases ’ The Group has adopted IFRS 16 ‘ Leases’ from 1 January 2019. The new standard brings most leases on-balance-sheet for lessees under a single model, eliminating the distinction between operating and finance leases. IFRS 16 applies primarily to operating leases of major properties occupied by the Group’s businesses where Prudential is a lessee. Under IFRS 16, these leases are brought onto the Group’s statement of financial position with a ‘right-of-use’ asset being established and a corresponding liability representing the obligation to make lease payments. The rental accrual charge in the income statement under IAS 17 is replaced with a depreciation charge for the ‘right-of-use’ asset and an interest expense on the lease liability leading to a more front-loaded operating lease cost profile compared to IAS 17. As permitted by IFRS 16, the Group has chosen to adopt the modified retrospective approach upon transition to the new standard. Under the approach adopted, there is no adjustment to the Group’s retained earnings at 1 January 2019 and the Group’s 2018 comparative information is not restated. The ‘right-of-use’ asset and lease liability at 1 January 2019 are set at an amount equal to the discounted remaining lease payments adjusted by any prepaid or accrued lease payment balance immediately before the date of initial application of the standard. When measuring lease liabilities on adoption, the Group discounted lease payments using its incremental borrowing rate at 1 January 2019. The weighted average rate applied is 3.4 per cent. The aggregate effect of the adoption of the standard on the statement of financial position at 1 January 2019 is shown in the table below: Continuing Discontinued Total operations operations Group Effect of adoption of IFRS 16 at 1 January 2019 $m $m $m Assets Property, plant and equipment (right-of-use assets) 527 368 895 Total assets 527 368 895 Liabilities Operational borrowings (lease liability) 541 414 955 Accruals, deferred income and other liabilities (accrued lease payment balance under IAS 17) (14) (46) (60) Total liabilities 527 368 895 Reconciliation of IFRS 16 lease liability and IAS 17 lease commitments Total Group $m IFRS 16 operating lease liability shown in the table above 955 Add back impact of discounting 210 IFRS 16 operating lease liability on an undiscounted basis 1,165 Difference in lease rental payments due to probable renewals or early termination decisions reflected above (48) Other (6) Total operating lease commitments at 31 December 2018* 1,111 * As disclosed in note D5 of the Group’s IFRS financial statements for the year ended 31 December 2018 and after excluding $76 million for the amount relating to certain lease commitments from the central operations to the discontinued UK with-profits fund. The Group has applied the practical expedient to grandfather the definition of a lease on transition. This means that IFRS 16 has been applied to all contracts that were identified as leases in accordance with IAS 17 and IFRIC 4 ‘Determining whether an Arrangement contains a Lease’ entered into before 1 January 2019. Therefore, the definition of a lease under IFRS 16 is applied only to contracts entered into or changed on or after 1 January 2019. The Group has used the following practical expedients, in addition to the aforementioned, when applying IFRS 16 to leases previously classified as operating leases under IAS 17: - Applying a single discount rate to a portfolio of leases with similar characteristics. Accordingly, for such portfolios, the incremental borrowing rates used to discount the future lease payments will be determined based on market specific risk-free rates adjusted with a margin/spread to reflect the Group’s credit standing, lease term and the outstanding lease payments. - Using hindsight when determining the lease term if the contract contains options to extend or terminate the lease. Other new accounting pronouncements In addition to the above, the following new accounting pronouncements were also effective from 1 January 2019: - IFRIC Interpretation 23 ‘Uncertainty over Income Tax Treatments’; - Amendments to IAS 28 ‘ Long-term Interests in Associates and Joint Ventures’ ; - Amendments to IFRS 9 ‘ Prepayment Features with Negative Compensation’ ; - Annual Improvements to IFRSs 2015-2017 cycle; and - Amendments to IAS 19 ‘ Plan Amendment, Curtailment or Settlement’ . The Group has applied the principles within the Amendments to IAS 19 ‘ Plan Amendment, Curtailment or Settlement’ when accounting for the changes to the pension benefits of its UK defined benefit schemes during the year. The other pronouncements have had no significant impact on the Group financial statements. A4 Accounting policies Note A4.1 presents the critical accounting policies, accounting estimates and judgements applied in preparing the Group’s consolidated financial statements. Other accounting policies, where significant, are presented in the relevant individual notes. All accounting policies are applied consistently for both years presented and normally are not subject to changes unless new accounting standards, interpretations or amendments are introduced by the IASB. A4.1 Critical accounting policies, estimates and judgements The preparation of these financial statements requires Prudential to make estimates and judgements about the amounts of assets, liabilities, revenues and expenses, which are both recognised and unrecognised (eg contingent liabilities) in the primary financial statements. Prudential evaluates its estimates, including those related to long-term business provisioning and the fair value of assets as required. The notes below set out those critical accounting policies, the application of which requires the Group to make critical estimates and judgements. Also set out are further critical accounting policies affecting the presentation of the Group’s results and other items that require the application of critical estimates and judgements. (a) Critical accounting policies with associated critical estimates and judgements Classification of insurance and investment contracts IFRS 4 requires contracts written by insurers to be classified as either ‘insurance’ contracts or ‘investment’ contracts. The classification of the contract determines its accounting. Impacts $397.6 billion of reported contract liabilities, requiring classification, including those held by the joint venture and associate. Judgement is applied in considering whether the material features of a contract gives rise to the transfer of significant insurance risk. Contracts that transfer significant insurance risk to the Group are classified as insurance contracts. This judgement is made at the point of contract inception and is not revisited. For the majority of the Group’s contracts, classification is based on a readily identifiable scenario that demonstrates a significant difference in cash flows if the covered event occurs (as opposed to does not occur) reducing the level of judgement involved. Contracts that transfer financial risk to the Group but not significant insurance risk are classified as investment contracts.Certain investment contracts contain discretionary participating features as discussed in IFRS 4. Insurance contracts and investment contracts with discretionary participation features are accounted for under IFRS 4. Investment contracts without such discretionary participation features are accounted for as financial instruments under IAS 39. Insurance business units Insurance contracts and investment contracts with discretionary participation features Investment contracts without discretionary participation features Asia – With-profits contracts – Non-participating term contracts – Whole life contracts – Unit-linked policies – Accident and health policies – Minor amounts for a number of small categories of business US – Variable annuity contracts – Fixed annuity contracts – Fixed index annuity contracts – Group pay-out annuity contracts – Life insurance contracts – Guaranteed investment contracts (GICs) – Minor amounts of ‘annuity certain’ contracts Discontinued UK and Europe – With-profits contracts – Bulk and individual annuity business – Non-participating term contracts – Certain unit-linked savings and similar contracts Measurement of policyholder liabilities and unallocated surplus of with-profits The measurement basis of policyholder liabilities is dependent upon the classification of the contracts under IFRS 4 described above. Impacts $402.3 billion of policyholder liabilities and unallocated surplus of with-profits. Policyholder liabilities are estimated based on a number of actuarial assumptions (eg mortality, morbidity, policyholder behaviour and expenses). IFRS 4 permits the continued usage of previously applied Generally Accepted Accounting Practices (GAAP) for insurance contracts and investment contracts with discretionary participating features. A modified statutory basis of reporting was adopted by the Group on first time adoption of IFRS in 2005. This was set out in the Statement of Recommended Practice issued by the Association of British Insurers (ABI SORP). An exception was for UK regulated with-profits funds which were measured under FRS 27, ‘Life Assurance’ as discussed below. FRS 27 and the ABI SORP were withdrawn for the accounting periods beginning in or after 2015. As used in these consolidated financial statements, the terms 'grandfathered' FRS 27 and the 'grandfathered' ABI SORP refer to the requirements of these pronouncements prior to their withdrawal. For investment contracts that do not contain discretionary participating features, IAS 39 is applied and, where the contract includes an investment management element, IFRS 15 ‘Revenue from Contracts with Customers’ applies. The policies applied in each business unit are noted below. When measuring policyholder liabilities, a number of assumptions are applied to estimate future amounts due to or from the policyholder. The nature of assumptions varies by product and among the most significant is policyholder behaviour, particularly in the US. Additional details of valuation methodologies and assumptions applied for material product types are discussed in note C4.2. Measurement of insurance contract liabilities and investment contract liabilities with discretionary participation features Asia insurance operations The policyholder liabilities for businesses in Asia are generally determined in accordance with methods prescribed by local GAAP, adjusted to comply with the modified statutory basis where necessary. Refinements to the local reserving methodology are generally treated as changes in estimates, dependent on their nature. In Taiwan and India, US GAAP principles are applied. The sensitivity of Asia insurance operations to variations in key estimates and assumptions, including mortality and morbidity, is discussed in note C7.2. US insurance operations (Jackson) The policyholder liabilities for Jackson’s conventional protection-type policies are determined under US GAAP principles with locked in assumptions for mortality, interest, policy lapses and expenses along with provisions for adverse deviations. For other policies, the policyholder liabilities include the policyholder account balance. For those investment contracts in the US with fixed and guaranteed terms, the Group uses the amortised cost model to measure the liability. The US has no investment contracts with discretionary participation features. The sensitivity of US insurance operations to variations in key estimates and assumptions, including policyholder behaviour, is discussed in note C7.3. Discontinued UK and Europe insurance operations The UK regulated with-profits funds’ liabilities are the realistic basis liabilities in accordance with ‘grandfathered’ FRS 27. The realistic basis requires the value of liabilities to be calculated as the sum of a with-profits benefits reserve, future policy-related liabilities and the realistic current liabilities of the fund. The interest rates used in establishing policyholder benefit provisions for pension annuities in the course of payment are adjusted each reporting period and include an allowance for credit risk. Mortality rates used in establishing policyholder benefits are based on published mortality tables adjusted to reflect actual experience. Measurement of investment contract liabilities without discretionary participation features Investment contracts without discretionary participation features are measured in accordance with IAS 39 to reflect the deposit nature of the arrangement, with premiums and claims reflected as deposits and withdrawals, and taken directly to the statement of financial position as movements in the financial liability balance. Investment contracts without fixed and guaranteed terms are classified as financial instruments and designated as fair value through profit or loss because the resulting liabilities are managed and their performance is evaluated on a fair value basis. Where the contract includes a surrender option, its carrying value is subject to a minimum carrying value equal to its surrender value. Other investment contracts are measured at amortised cost. Measurement of unallocated surplus of with-profits funds Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities determined in accordance with the Group's accounting policies and based on local GAAP for the Group’s with-profits funds in Hong Kong, Malaysia and, up to its demerger, the UK and Europe operations that have yet to be appropriated between policyholders and shareholders. The unallocated surplus is recorded wholly as a liability with no allocation to equity. The annual excess or shortfall of income over expenditure of the with-profits funds, after declaration and attribution of the cost of bonuses to policyholders and shareholders, is transferred to or from the unallocated surplus each period through a charge or credit to the income statement. The balance retained in the unallocated surplus represents cumulative income arising on the with-profits business that has not been allocated to policyholders or shareholders. The balance of the unallocated surplus is determined after full provision for deferred tax on unrealised appreciation or depreciation on investments. Liability adequacy test The Group performs adequacy testing on its insurance liabilities to ensure that the carrying amounts (net of related deferred acquisition costs) and, where relevant, present value of acquired in-force business is sufficient to cover current estimates of future cash outflows. Any deficiency is immediately charged to the income statement. Jackson’s liabilities for insurance contracts, which include those for separate accounts (reflecting separate account assets), policyholder account values and guarantees measured as described in note C4.2 and the associated deferred acquisition cost asset, are measured under US GAAP and liability adequacy testing is performed in this context. Under US GAAP, most of Jackson’s products are accounted for under Accounting Standards Codification Topic 944, Financial Services – Insurance of the Financial Accounting Standards Board (ASC 944) whereby deferred acquisition costs are amortised in line with expected gross profits. Recoverability of the deferred acquisition costs in the balance sheet is tested against the projected value of future profit using current estimates and therefore no additional liability adequacy test is required under IFRS 4. The deferred acquisition cost asset recoverability test is performed in line with US GAAP requirements, which in practice is at a grouped level of those contracts managed together. (b) Further critical accounting policies affecting the presentation of the Group's results Measurement and presentation of derivatives and debt securities of US insurance operations (Jackson) Jackson holds a number of derivative instruments and debt securities. The selection of the accounting approach for these items significantly affects the volatility of profit before tax. $ (4,225) million of the US investment return in the income statement arises from such derivatives and debt securities. Jackson enters into derivative instruments to mitigate economic exposures. The Group has considered whether it is appropriate to undertake the necessary operational changes to qualify for hedge accounting so as to achieve matching of value movements in hedging instruments and hedged items in the performance statements. The key factors considered in this assessment were the complexity of asset and liability matching in Jackson’s product range and the difficulty and cost of applying the macro hedge provisions under IAS 39 (which are more suited to banking arrangements) to Jackson’s derivative book. The Group has decided that, except for occasional circumstances, applying hedge accounting using IAS 39 to derivative instruments held by Jackson would not improve the relevance or reliability of the financial statements to such an extent that would justify the difficulty and cost of applying these provisions. As a result of this decision, the total income statement results are more volatile as the movements in the fair value of Jackson’s derivatives are reflected within it. This volatility is reflected in the level of short-term fluctuations in investment returns, as shown in notes B1.1 and B1.2. Under IAS 39, unless carried at amortised cost (subject to impairment provisions where appropriate) under the held-to-maturity category, debt securities are carried at fair value. The Group has chosen not to classify any financial assets as held-to-maturity. Debt securities of Jackson are designated as available-for-sale with value movements, unless impaired, being recorded as movements within other comprehensive income. Impairments are recorded in the income statement, as discussed in note (c) below. Presentation of results before tax attributable to shareholders Profit before tax is a significant IFRS income statement item. The Group has chosen to present a measure of profit before tax attributable to shareholders which distinguishes between tax borne by shareholders and tax attributable to policyholders to support understanding of the performance of the Group. Profit from continuing operations before tax attributable to shareholders is $1,922 million and compares to profit from continuing operations before tax of $2,287 million. The total tax charge for the Group reflects tax that, in addition to that relating to shareholders’ profit, is also attributable to policyholders through the interest in with-profits or unit-linked funds. Further detail is provided in note B4. Reported IFRS profit before the tax measure is therefore not representative of pre-tax profit attributable to shareholders. Accordingly, in order to provide a measure of pre-tax profit attributable to shareholders, the Group has chosen to adopt an income statement presentation of the tax charge and pre-tax results that distinguishes between policyholders and shareholders returns. Segmental analysis of results and earnings attributable to shareholders The Group uses adjusted IFRS operating profit based on longer-term investment returns as the segmental measure of its results. Total segmental adjusted IFRS operating profit from continuing operations based on longer-term investment returns is $6,346 million and is shown in note B1.1. The basis of calculation of adjusted IFRS operating profit based on longer-term investment returns is provided in note B1.3. For shareholder-backed business, with the exception of debt securities held by Jackson and the Group's new treasury company, which are treated as available-for-sale, and assets classified as loans and receivables at amortised cost, all financial investments and investment properties are designated as assets at fair value through profit or loss. Short-term fluctuations in fair value affect the result for the year and the Group provides additional analysis of results before and after the effects of short-term fluctuations in investment returns, together with other items that are of a short-term, volatile or one-off nature. The effects of short-term fluctuations include asymmetric impacts where the measurement bases of the liabilities and associated derivatives used to manage the Jackson annuity business differ as described in note B1.2. Short-term fluctuations in investment returns on assets held by with-profits funds in Hong Kong, Malaysia and Singapore do not affect directly reported shareholder results. This is because (i) the unallocated surplus of with-profits funds is accounted for as a liability and (ii) excess or deficit of income and expenditure of the funds over the required surplus for distribution are transferred to or from policyholder liabilities (including the unallocated surplus). (c) Other items requiring application of critical estimates or judgements Deferred acquisition costs (DAC) for insurance contracts The Group applies judgement in determining qualifying costs that should be capitalised (ie those costs of acquiring new insurance contracts that meet the criteria under the Group’s accounting policy for deferred acquisition costs). The Group estimates projected future profits/margins to assess whether adjustments to the carrying value or amortisation profile of deferred acquisition cost asset are necessary. Impacts $14.2 billion of deferred acquisition costs as shown in note C5.2(i). Costs of acquiring new insurance business are accounted for in a way that is consistent with the principles of the ’grandfathered’ ABI SORP with deferral and amortisation against margins in future revenues on the related insurance policies. The recoverability of the deferred acquisition costs (DAC) is measured and the DAC asset is deemed impaired if the projected margins (which are estimated based on a number of assumptions similar to those underlying policyholder liabilities) are less than the carrying value. To the extent that the future margins differ from those anticipated, an adjustment to the carrying value will be necessary either through an impairment (if the projected margins are lower than carrying value) or through a change in the amortisation profile. Asia insurance operations For those business units applying US GAAP to insurance assets and liabilities, as permitted by the ‘grandfathered’ ABI SORP, principles similar to those set out in the US insurance operations paragraph below are applied to the deferral and amortisation of acquisition costs. For other business units in Asia, the general principles of the ‘grandfathered’ ABI SORP are applied. In general, deferral of acquisition costs is shown by an explicit carrying value in the balance sheet. However, in some Asia operations the deferral is implicit through the reserving basis. US insurance operations The most material estimates and assumptions applied in the measurement and amortisation of DAC balances relate to the US insurance operations. The Group’s US insurance operations apply FASB ASU 2010-26 on ‘Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

Analysis of performance by segm

Analysis of performance by segment	12 Months Ended
	Dec. 31, 2019
Analysis of performance by segment
Analysis of performance by segment	B EARNINGS PERFORMANCE B1 Analysis of performance by segment B1.1 Segment results Note 2019 $m 2018 $m 2017 $m Asia Insurance operations B3(a) 2,993 2,646 2,319 Asset management 283 242 227 Total Asia 3,276 2,888 2,546 US Jackson (US insurance operations) B3(b) 3,038 2,552 2,854 Asset management 32 11 12 Total US 3,070 2,563 2,866 Other income and expenditure Investment return and other income 50 70 14 Interest payable on core structural borrowings note (i) (516) (547) (548) Corporate expenditure note (ii) (460) (490) (465) Total other income and expenditure (926) (967) (999) Restructuring costs note (iii) (110) (75) (35) Adjusted IFRS operating profit based on longer-term investment returns 5,310 4,409 4,378 Short-term fluctuations in investment returns on shareholder-backed business B1.2 (3,203) (791) (1,994) Amortisation of acquisition accounting adjustments note (iv) (43) (61) (82) (Loss) on disposal of businesses and corporate transactions D1 (142) (107) 286 Profit from continuing operations before tax attributable to shareholders 1,922 3,450 2,588 Tax credit (charge) attributable to shareholders’ returns B4 31 (569) (840) Profit from continuing operations 1,953 2,881 1,748 Profit from discontinued operations D2 1,319 1,142 1,333 Re-measurement of discontinued operations on demerger D2 188 — — Cumulative exchange loss recycled from other comprehensive income D2 (2,668) — — (Loss) profit from discontinued operations (1,161) 1,142 1,333 Profit for the year 792 4,023 3,081 Attributable to: Equity holders of the Company From continuing operations 1,944 2,877 1,747 From discontinued operations (1,161) 1,142 1,333 Non-controlling interests from continuing operations 9 4 1 792 4,023 3,081 Basic earnings per share (in cents) Note Based on adjusted IFRS operating profit based on longer-term investment returns, net of tax, from continuing operations note (v) B5 175.0 ¢ 145.2 ¢ 134.6 ¢ Based on profit for the year from continuing operations B5 75.1 ¢ 111.7 ¢ 68.0 ¢ Based on (loss) profit for the year from discontinued operations B5 (44.8) ¢ 44.3 ¢ 52.0 ¢ Notes (i) Interest charged to the income statement on debt that was substituted to M&G plc in October 2019 for 2019 was $(179) million (2018: $(128) million; 2017: $ (90) million). (ii) Corporate expenditure as shown above is primarily for head office functions in London and Hong Kong. (iii) Restructuring costs include group-wide costs incurred for IFRS 17 implementation in 2019 from continuing operations. (iv) Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012. (v) Tax charges have been reflected as operating and non-operating in the same way as for the pre-tax items. Further details on tax charges are provided in note B4. B1.2 Short-term fluctuations in investment returns on shareholder-backed business 2019 $m 2018 $m 2017 $m Asia operations note (i) 657 (684) (1) US operations note (ii) (3,757) (134) (2,019) Other operations (103) 27 26 Total (3,203) (791) (1,994) (i) Asia operations In Asia, the positive short-term fluctuations of $657 million (2018: negative $(684) million; 2017: negative $(1) million) principally reflect net value movements on shareholders’ assets and related liabilities following decreases in bond yields during the year. (ii) US operations The short-term fluctuations in investment returns for US insurance operations are reported net of the related credit for amortisation of deferred acquisition costs of $1,248 million as shown in note C5.2(i) (2018: debit of $(152) million; 2017: credit of $595 million) and comprise amounts in respect of the following items: 2019 $m 2018 $m 2017 $m Net equity hedge result note (a) (4,582) (78) (1,920) Other than equity-related derivatives note (b) 678 (85) (46) Debt securities note (c) 156 (42) (94) Equity-type investments: actual less longer-term return 18 51 15 Other items (27) 20 26 Total net of related DAC amortisation (3,757) (134) (2,019) Notes (a) Net equity hedge result The purpose of the inclusion of this item in short-term fluctuations in investment returns is to segregate the amount included in pre-tax profit that relates to the accounting effect of market movements on both the value of guarantees in Jackson’s variable annuity and fixed index annuity products and on the related derivatives used to manage the exposures inherent in these guarantees. The level of fees recognised in non-operating profit is determined by reference to that allowed for within the reserving basis. The variable annuity guarantees are valued in accordance with either Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures (formerly FAS 157) or ASC Topic 944, Financial Services – Insurance (formerly SOP 03-01) depending on the type of guarantee. Both approaches require an entity to determine the total fee (‘the fee assessment’) that is expected to fund future projected benefit payments arising using the assumptions applicable for that method. The method under FAS 157 requires this fee assessment to be fixed at the time of issue. As the fees included within the initial fee assessment are earned, they are included in non-operating profit to match the corresponding movement in the guarantee liability. Other guarantee fees are included in operating profit, which in 2019 was $699 million (2018: $ 657 million; 2017: $622 million), net of related DAC amortisation. As the Group applies US GAAP for the measured value of the product guarantees, the net equity hedge result also includes asymmetric impacts where the measurement bases of the liabilities and associated derivatives used to manage the Jackson annuity business differ. The net equity hedge result therefore includes significant accounting mismatches and other factors that do not represent the economic result. These other factors include: - The variable annuity guarantees and fixed index annuity embedded options being only partially fair valued under ‘grandfathered’ US GAAP; - The interest rate exposure being managed through the other than equity-related derivative programme explained in note (b) below; and - Jackson’s management of its economic exposures for a number of other factors that are treated differently in the accounting frameworks such as future fees and assumed volatility levels. The net equity hedge result can be summarised as follows: 2019 $m 2018 $m 2017 $m Fair value movements on equity hedge instruments* (5,314) 399 (2,411) Accounting value movements on the variable and fixed index annuity guarantee liabilities (22) (1,194) (128) Fee assessments net of claim payments 754 717 619 Total net of related DAC amortisation (4,582) (78) (1,920) * Held to manage equity exposures of the variable annuity guarantees and fixed index annuity options as discussed in Explanation of Performance and Other Financial Measures. (b) Other than equity-related derivatives The fluctuations for this item comprise the net effect of: - Fair value movements on free-standing, other than equity-related derivatives; - Fair value movements on the Guaranteed Minimum Income Benefit (GMIB) reinsurance asset that are not matched by movements in the underlying GMIB liability, which is not fair valued; and - Related amortisation of DAC. The free-standing, other than equity-related derivatives, are held to manage interest rate exposures and durations within the general account and the variable annuity guarantees and fixed index annuity embedded options described in note (a) above. Accounting mismatches arise because of differences between the measurement basis and presentation of the derivatives, which are fair valued with movements recorded in the income statement, and the exposures they are intended to manage. (c) Short-term fluctuations related to debt securities 2019 $m 2018 $m 2017 $m (Charges) credits in the year: Losses on sales of impaired and deteriorating bonds (28) (6) (4) Bond write-downs (15) (5) (3) Recoveries 1 25 13 Total (charges) credits in the year (42) 14 6 Risk margin allowance deducted from adjusted IFRS operating profit based on longer-term investment returns* 109 104 112 67 118 118 Interest-related realised gains (losses): Gains (losses) arising in the year 220 (12) (55) Less: Amortisation of gains and losses arising in current and prior years to adjusted IFRS operating profit based on longer-term investment returns (129) (155) (180) 91 (167) (235) Related amortisation of deferred acquisition costs (2) 7 24 Total short-term fluctuations related to debt securities net of related DAC amortisation 156 (42) (93) * The debt securities of Jackson are held in the general account of the business. Realised gains and losses are recorded in the income statement with normalised returns included in adjusted IFRS operating profit based on longer-term investment returns with variations from year to year included in the short-term fluctuations category. The risk margin reserve charge for longer-term credit-related losses included in adjusted IFRS operating profit based on longer-term investment returns of Jackson for 2019 is based on an average annual risk margin reserve of 17 basis points (2018: 18 basis points; 2017: 21 basis points) on average book values of $62.6 billion (2018: $57.1 billion; 2017: $55.3 billion) as shown below: Moody’s rating category (or equivalent under NAIC ratings of mortgage-backed securities) 2019 2018 2017 Average Annual Average Annual Average Annual book expected book expected book expected value RMR loss value RMR loss value RMR loss $m % $m $m % $m $m % $m A3 or higher 38,811 0.10 (38) 29,982 0.10 (31) 27,277 0.12 (33) Baa1, 2 or 3 22,365 0.24 (53) 25,814 0.21 (55) 26,626 0.22 (58) Ba1, 2 or 3 1,094 0.85 (9) 1,042 0.98 (10) 1,046 1.03 (11) B1, 2 or 3 223 2.56 (6) 289 2.64 (8) 318 2.70 (9) Below B3 75 3.39 (3) 11 3.69 — 23 3.78 (1) Total 62,568 0.17 (109) 57,138 0.18 (104) 55,290 0.21 (112) Related amortisation of deferred acquisition costs 19 22 21 Risk margin reserve charge to adjusted IFRS operating profit based on longer-term investment returns for longer-term credit-related losses (90) (82) (91) In addition to the accounting for realised gains and losses described above for Jackson general account debt securities, included within the statement of other comprehensive income is a pre-tax gain of $3,392 million for net unrealised gains on debt securities classified as available-for-sale net of related amortisation of deferred acquisition costs (2018: charge of $(1,831) million; 2017: credit of $697 million). Temporary market value movements do not reflect defaults or impairments. Additional details of the movement in the value of the Jackson portfolio are included in note C3.2(b). B1.3 Determining operating segments and performance measure of operating segments Operating segments The Group's operating segments for financial reporting purposes are defined and presented in accordance with IFRS 8 ‘Operating Segments’ on the basis of the management reporting structure and its financial management information. Under the Group's management and reporting structure, its chief operating decision maker is the Group Executive Committee (GEC). In the management structure, responsibility is delegated to the Chief Executive Officers of Prudential Corporation Asia, the North American Business Unit and, up to the date of demerger, M&G plc for the day-to-day management of their business units (within the framework set out in the Group Governance Manual). Financial management information used by the GEC aligns with these business segments. These operating segments derive revenue from both insurance and asset management activities. On 21 October 2019, the Group completed the demerger of M&G plc from the Prudential plc group, resulting in two separately listed companies. Accordingly, UK and Europe operations do not represent an operating segment at the year end. The results of M&G plc have been reclassified as discontinued operations in these consolidated financial statements in accordance with IFRS 5 ‘ Non-current Assets Held for Sale and Discontinued Operations ’ and have therefore been excluded in the analysis of performance measure of operating segments. Operations which do not form part of any business unit are reported as ‘Unallocated to a segment’. These include head office costs in London and Hong Kong. The Group’s Africa operations and treasury function do not form part of any operating segment under the structure, and their assets and liabilities and profit or loss before tax are not material to the overall financial position of the Group. The Group’s treasury function and Africa operations are therefore also reported as ‘Unallocated to a segment’. Performance measure The performance measure of operating segments utilised by the Company is adjusted IFRS operating profit attributable to shareholders based on longer-term investment returns, as described below. This measurement basis distinguishes adjusted IFRS operating profit based on longer-term investment returns from other constituents of total profit for the year as follows: - Short-term fluctuations in investment returns on shareholder-backed business. This includes the impact of short-term market effects on the carrying value of Jackson’s guarantee liabilities and related derivatives as explained below; - Amortisation of acquisition accounting adjustments arising on the purchase of business. This comprises principally the charge for the adjustments arising on the purchase of REALIC in 2012; and - Gain or loss on corporate transactions, such as disposals undertaken in the year and costs connected to the demerger of M&G plc from Prudential plc. Determination of adjusted IFRS operating profit based on longer-term investment returns for investment and liability movements (a) With-profits business For Asia’s with-profits business in Hong Kong, Singapore and Malaysia, the adjusted IFRS operating profit based on longer-term investment returns reflects the shareholders' share in the bonuses declared to policyholders. Value movements in the underlying assets of the with-profits funds only affect the shareholder results through indirect effects of investment performance on declared policyholder bonuses and therefore,do not affect directly the determination of adjusted IFRS operating profit based on longer-term investment returns. (b) Unit-linked business including the US variable annuity separate accounts The policyholder unit liabilities are directly reflective of the underlying asset value movements. Accordingly, the adjusted IFRS operating profit based on longer-term investment returns reflect the current period value movements in both the unit liabilities and the backing assets. (c) US variable annuity and fixed index annuity business This business has guarantee liabilities which are measured on a combination of fair value and other US GAAP derived principles. These liabilities are subject to an extensive derivative programme to manage equity and interest rate exposures whose fair value movements pass through the income statement each period. The following value movements for Jackson's variable and fixed index annuity business are excluded from adjusted IFRS operating profit based on longer-term investment returns. See note B1.2 note (ii): - Fair value movements for equity-based derivatives; - Fair value movements for guaranteed benefit options for the ‘not for life’ portion of Guaranteed Minimum Withdrawal Benefit (GMWB) and fixed index annuity business, and Guaranteed Minimum Income Benefit (GMIB) reinsurance (see below); - Movements in the accounts carrying value of Guaranteed Minimum Death Benefit (GMDB), GMIB and the ‘for life’ portion of GMWB liabilities, (see below) for which, under the ‘grandfathered’ US GAAP applied under IFRS for Jackson’s insurance assets and liabilities, the measurement basis gives rise to a muted impact of current period market movements (ie they are relatively insensitive to the effect of current period equity market and interest rate changes); - A portion of the fee assessments as well as claim payments, in respect of guarantee liabilities; and - Related amortisation of deferred acquisition costs for each of the above items. Guaranteed benefit options for the ‘not for life’ portion of GMWB and equity index options for the fixed index annuity business The ‘not for life’ portion of GMWB guaranteed benefit option liabilities is measured under the US GAAP basis applied for IFRS in a manner consistent with IAS 39 under which the projected future growth rate of the account balance is based on the greater of US Treasury rates and current swap rates (rather than expected rates of return) with only a portion of the expected future guarantee fees included. Reserve value movements on these liabilities are sensitive to changes to levels of equity markets, implied volatility and interest rates. The equity index option for fixed index annuity business is measured under the US GAAP basis applied for IFRS in a manner consistent with IAS 39 under which the projected future growth is based on current swap rates. Guaranteed benefit option for variable annuity guarantee minimum income benefit The GMIB liability, which is substantially reinsured, subject to a deductible and annual claim limits, is accounted for using ‘grandfathered’ US GAAP. This accounting basis substantially does not recognise the effects of market movements. The corresponding reinsurance asset is measured under the ‘grandfathered’ US GAAP basis applied for IFRS in a manner consistent with IAS 39 ‘Financial Instruments: Recognition and Measurement’, and the asset is therefore recognised at fair value. As the GMIB is economically reinsured, the mark to market element of the reinsurance asset is included as a component of short-term fluctuations in investment returns. (d) Policyholder liabilities that are sensitive to market conditions Under IFRS, the degree to which the carrying values of liabilities to policyholders are sensitive to current market conditions varies between business units depending upon the nature of the ‘grandfathered’ measurement basis. Movements in liabilities for some types of business do require bifurcation between the elements that relate to longer-term market condition and short-term effects to ensure that at the net level (ie after allocated investment return and charge for policyholder benefits) the adjusted IFRS operating profit based on longer-term investment returns reflects longer-term market returns. For certain Asia non-participating business, for example in Hong Kong, the economic features are more akin to asset management products with policyholder liabilities reflecting asset shares over the contract term. Consequently, for these products, the charge for policyholder benefits in the adjusted IFRS operating profit based on longer-term investment returns reflects the asset share feature rather than volatile movements that would otherwise be reflected if the local regulatory basis (as applied for the IFRS balance sheet) was used. For other types of Asia non-participating business, expected longer-term investment returns and interest rates are used to determine the movement in policyholder liabilities for determining adjusted IFRS operating profit based on longer-term investment returns. This ensures assets and liabilities are reflected on a consistent basis. (e) Assets backing other shareholder-financed long-term insurance business Except in the case of assets backing liabilities which are directly matched (such as unit-linked business) adjusted IFRS operating profit based on longer-term investment returns for assets backing shareholder-financed business is determined on the basis of expected longer-term investment returns. Longer-term investment returns comprise actual income receivable for the period (interest/dividend income) and for both debt and equity-type securities longer-term capital returns. Debt securities and loans In principle, for debt securities and loans, the longer-term capital returns comprise two elements: - Risk margin reserve based charge for the expected level of defaults for the period, which is determined by reference to the credit quality of the portfolio. The difference between impairment losses in the reporting period and the risk margin reserve charge to the adjusted IFRS operating profit based on longer-term investment returns is reflected in short-term fluctuations in investment returns; and - The amortisation of interest-related realised gains and losses to adjusted IFRS operating profit based on longer-term investment returns to the date when sold bonds would have otherwise matured. At 31 December 2019, the level of unamortised interest-related realised gains and losses related to previously sold bonds for the Group was a net gain of $916 million (2018: $776 million; 2017: $924 million). For Asia insurance operations, realised gains and losses are principally interest related. Accordingly, all realised gains and losses to date for these operations are amortised over the period to the date those securities would otherwise have matured, with no explicit risk margin reserve charge. For US insurance operations, Jackson has used the ratings by Nationally Recognised Statistical Ratings Organisations (NRSRO) or ratings resulting from the regulatory ratings detail issued by the National Association of Insurance Commissioners (NAIC) to determine the average annual risk margin reserve to apply to debt securities held to back general account business. Debt securities held to back separate account and reinsurance funds withheld are not subject to risk margin reserve charge. Further details of the risk margin reserve charge, as well as the amortisation of interest-related realised gains and losses, for Jackson are shown in note B1.2 note (ii)(c). Equity-type securities For equity-type securities, the longer-term rates of return are estimates of the long-term trend investment returns for income and capital having regard to past performance, current trends and future expectations. Different rates apply to different categories of equity-type securities. For Asia insurance operations, investments in equity securities held for non-linked shareholder-backed business amounted to $3,473 million as at 31 December 2019 (31 December 2018: $2,733 million; 31 December 2017: $2,380 million). The rates of return applied in 2019 ranged from 5.0 per cent to 17.6 per cent (2018: 5.3 per cent to 17.6 per cent ;2017: 4.3 per cent to 17.2 per cent) with the rates applied varying by business unit. These rates are broadly stable from year to year but may be different between regions, reflecting, for example, differing expectations of inflation in each local business unit. The assumptions are for the returns expected to apply in equilibrium conditions. The assumed rates of return do not reflect any cyclical variability in economic performance and are not set by reference to prevailing asset valuations. The longer-term investment returns for the Asia insurance joint ventures and associate accounted for using the equity method are determined on a similar basis as the other Asia insurance operations described above. For US insurance operations, as at 31 December 2019, the equity-type securities for non-separate account operations amounted to $1,481 million (31 December 2018: $1,731 million; 31 December 2017: $1,280 million). For these operations, the longer-term rates of return for income and capital applied in the years indicated, which reflect the combination of the average risk-free rates over the year and appropriate risk premiums are as follows: Equity-type securities such as common and preferred stock and portfolio holdings in mutual funds 5.5 % to 6.7 % 6.7 % to 7.2 % 6.1 % to 6.5 % Other equity-type securities such as investments in limited partnerships and private equity funds 7.5 % to 8.7 % 8.7 % to 9.2 % 8.1 % to 8.5 % Derivative value movements Generally, derivative value movements are excluded from adjusted IFRS operating profit based on longer-term investment returns. The exception is where the derivative value movements broadly offset changes in the accounting value of other assets and liabilities included in adjusted IFRS operating profit based on longer-term investment returns. The principal example of derivatives whose value movements are excluded from adjusted IFRS operating profit based on longer-term investment returns arises in Jackson. Equity-based derivatives held by Jackson are as discussed above in section (c) above. Non-equity based derivatives held by Jackson are part of a broad-based hedging programme for features of Jackson’s bond portfolio (for which value movements are booked in the statement of other comprehensive income rather than the income statement), product liabilities (for which US GAAP accounting as ‘grandfathered’ under IFRS 4 does not fully reflect the economic features being hedged), and the interest rate exposure attaching to equity-based product options. (f) Fund management and other non-insurance businesses For these businesses, the determination of adjusted IFRS operating profit based on longer-term investment returns reflects the underlying economic substance of the arrangements. Generally, realised gains and losses are included in adjusted IFRS operating profit based on longer-term investment returns with temporary unrealised gains and losses being included in short-term fluctuations. In some instances, realised gains and losses on derivatives and other financial instruments are amortised to adjusted IFRS operating profit based on longer-term investment returns over a time period that reflects the underlying economic substance of the arrangements. B1.4 Segmental income statement Premiums for conventional with-profits policies and other protection type insurance policies are recognised as revenue when due. Premiums and annuity considerations for linked policies, unitised with-profits and other investment type policies are recognised as revenue when received or, in the case of unitised or unit-linked policies, when units are issued. These amounts exclude premium taxes and similar duties where Prudential collects and settles taxes borne by the policyholder. Policy fees charged on linked and unitised with-profits policies for mortality, asset management and policy administration are recognised as revenue when related services are provided. Claims paid include maturities, annuities, surrenders and deaths. Maturity claims are recorded as charges on the policy maturity date. Annuity claims are recorded when each annuity instalment becomes due for payment. Surrenders are charged to the income statement when paid and death claims are recorded when notified. 2019 $m Unallocated Group to a segment total Total (central continuing Asia US segment operations) operations note (vi) Gross premiums earned 23,757 21,209 44,966 98 45,064 Outward reinsurance premiums (1,108) (467) (1,575) (8) (1,583) Earned premiums, net of reinsurance 22,649 20,742 43,391 90 43,481 Other income note (i) 548 61 609 91 700 Total external revenue notes (ii),(iii) 23,197 20,803 44,000 181 44,181 Intra-group revenue — 34 34 (34) — Interest income note (iv) 1,569 2,971 4,540 67 4,607 Other investment return note B1.5 13,406 31,623 45,029 (81) 44,948 Total revenue, net of reinsurance 38,172 55,431 93,603 133 93,736 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance (29,119) (54,734) (83,853) (52) (83,905) Acquisition costs and other operating expenditure note B2, (5,157) (1,402) (6,559) (724) (7,283) Interest on core structural borrowings — (20) (20) (496) (516) Gain (loss) on disposal of businesses and corporate transactions note D1.1 265 — 265 (407) (142) Total charges, net of reinsurance and loss on disposal of businesses (34,011) (56,156) (90,167) (1,679) (91,846) Share of profit from joint ventures and associates, net of related tax 397 — 397 — 397 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (v) 4,558 (725) 3,833 (1,546) 2,287 Tax charge attributable to policyholders’ returns (365) — (365) — (365) Profit (loss) before tax attributable to shareholders’ returns from continuing operations 4,193 (725) 3,468 (1,546) 1,922 Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations: Profit for the year from continuing operations 3,725 (380) 3,345 (1,392) 1,953 Tax attributable to shareholders 468 (345) 123 (154) (31) Profit (loss) before tax 4,193 (725) 3,468 (1,546) 1,922 Short-term fluctuations in investment returns on shareholder-backed business (657) 3,757 3,100 103 3,203 Amortisation of acquisition accounting adjustments 5 38 43 — 43 (Gain) loss on disposal of businesses and corporate transactions note D1.1 (265) — (265) 407 142 Adjusted IFRS operating profit based on longer-term investment returns 3,276 3,070 6,346 (1,036) 5,310 2018 $m Unallocated Group to a segment total Total (other continuing Asia US segment operations) operations note (vi) Gross premiums earned note(vii) 21,989 23,573 45,562 52 45,614 Outward reinsurance premiums (768) (412) (1,180) (3) (1,183) Earned premiums, net of reinsurance 21,221 23,161 44,382 49 44,431 Other income note(i) 412 67 479 52 531 Total external revenue notes (ii),(iii) 21,633 23,228 44,861 101 44,962 Intra-group revenue 56 67 123 (123) — Interest income note(iv) 1,450 2,692 4,142 68 4,210 Other investment return note B1.5 (4,326) (9,085) (13,411) 84 (13,327) Total revenue, net of reinsurance 18,813 16,902 35,715 130 35,845 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance note(vii) (11,664) (11,736) (23,400) (26) (23,426) Acquisition costs and other operating expenditure note B2, note(vii) (5,162) (2,773) (7,935) (592) (8,527) Interest on core structural borrowings — (20) (20) (527) (547) Loss on disposal of businesses and corporate transactions note D1.1 (15) (51) (66) (41) (107) Total charges, net of reinsurance and gain on disposal of business (16,841) (14,580) (31,421) (1,186) (32,607) Share of profit from joint ventures and associates, net of related tax 319 — 319 — 319 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (v) 2,291 2,322 4,613 (1,056) 3,557 Tax charge attributable to policyholders’ returns (107) — (107) — (107) Profit (loss) before tax attributable to shareholders’ returns from continuing operations 2,184 2,322 4,506 (1,056) 3,450 Analysis of profit (loss) before tax attributable to shareholders’ returns from continuing operations: Profit for the year from continuing operations 1,815 1,982 3,797 (916) 2,881 Tax attributable to shareholders 369 340 709 (140) 569 Profit (loss) before tax 2,184 2,322 4,506 (1,056) 3,450 Short-term fluctuations in investment returns on shareholder-backed business 684 134 818 (27) 791 Amortisation of acquisition accounting adjustments 5 56 61 — 61 Loss on disposal of businesses and corporate transactions 15 51 66 41 107 Adjusted IFRS operating profit (loss) based on longer-term investment returns 2,888 2,563 5,451 (1,042) 4,409 2017 $m Unallocated Group to a segment total Total (other continuing Asia US segment operations) operations note (vi) Gross premiums earned 20,220 19,545 39,765 35 39,800 Outward reinsurance premiums (845) (454) (1,299) (5) (1,304) Earned premiums, net of reinsurance 19,375 19,091 38,466 30 38,496 Other income note(i) 396 862 1,258 61 1,319 Total external revenue note(ii),(iii) 19,771 19,953 39,724 91 39,815 Intra-group revenue 52 82 134 (134) — Interest income note(iv) 1,201 2,688 3,889 86 3,975 Other investment return note B1.5 10,392 21,200 31,592 7 31,599 Total revenue, net of reinsurance 31,416 43,923 75,339 50 75,389 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance note(vii) (23,574) (40,220) (63,794) (14) (63,808) Acquisition costs and other operating expenditure note B2, note (vii) (5,224) (2,908) (8,132) (517) (8,649) Interest on core structural borrowings — (21) (21) (527) (548) Gain on disposal of businesses and corporate transactions note D1 .1 84 208 292 — 292 Total charges, net of reinsurance and gain (loss) on disposal of businesses (28,714) (42,941) (71,655) (1,058) (72,713) Share of profit from joint ventures and associates, net of related tax 233 — 233 — 233 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (vi 2,935 982 3,917 (1,008) 2,909 Tax charge attributable to policyholders’ returns (321) — (321) — (321) Profit (loss) before tax attributable to

Acquisition costs and other exp

Acquisition costs and other expenditure	12 Months Ended
	Dec. 31, 2019
Acquisition costs and other expenditure
Acquisition costs and other expenditure	B2 Acquisition costs and other expenditure 2019 $m 2018 $m 2017 $m Acquisition costs incurred for insurance policies (4,177) (4,313) (4,471) Acquisition costs deferred less amortisation of acquisition costs note (i) 2,116 59 1,173 Administration costs and other expenditure *,notes (ii),(iii) (5,019) (3,877) (5,008) Movements in amounts attributable to external unit holders of consolidated investment funds (203) (396) (343) Total acquisition costs and other expenditure from continuing operations (7,283) (8,527) (8,649) * Notes (i) The credit for acquisition costs deferred less amortisation of those costs of $2,116 million (2018: $59 million; 2017: $1,173 million) arises in Asia operations of $358 million (2018: $362 million; 2017: $246 million) and in US operations of $1,758 million (2018: a charge of $(303) million; 2017: a credit of $927 million) as set out in note C5.2. The credit of $1,758 million for US operations (2018: a charge of $(303) million; 2017: a credit of $927 million) comprises additional costs deferred in the year of $807 million (2018: $759 million; 2017: $850 million) driven by higher new business sales and a credit of $951 million (2018: a charge of $(1,062) million; 2017: a credit of $77 million) for DAC amortisation, driven by the hedging losses arising in 2019. (ii) During the year, the Group paid $182 million of upfront fees to modify the terms and condition of two subordinated debt instruments, which are expensed to the income statement as described in note C6.1. All other fee expenses relating to financial liabilities held at amortised cost in 2019 and 2018 are part of the determination of the effective interest rate and are included in ‘Administration costs and other expenditure’ above. (iii) Total depreciation and amortisation expense is included in ‘Acquisition costs incurred for insurance policies‘, ‘Administration costs and other expenditure’ and ‘Acquisition costs deferred less amortisation of acquisition costs’ and relates primarily to amortisation of deferred acquisition costs of insurance contracts and asset management contracts. The segmental analysis of interest expense (other than interest expense in core structural borrowings) and depreciation and amortisation included within total acquisition costs and other expenditure was as follows: Other interest expense Depreciation and amortisation 2019* $m 2018 $m 2017 $m 2019* $m 2018 $m 2017 $m Asia operations: Insurance (13) — — (641) (482) (446) Asset management – — — (14) (5) (4) US operations: Insurance (264) (212) (150) 901 (1,110) 26 Asset management (2) — — (4) (8) (8) Total segment (279) (212) (150) 242 (1,605) (432) Unallocated to a segment (other operations) (27) (38) (50) (30) (3) (3) Total continuing operations (306) (250) (200) 212 (1,608) (435) * B2.1 Staff and employment costs The average number of staff employed by the Group, for both continuing and discontinued operations, during the years shown was: Asia operations 14,471 16,798 15,477 US operations 4,014 4,285 4,564 Other operations* 519 676 660 Total continuing operations 19,004 21,759 20,701 Discontinued UK and Europe operations † 5,672 6,447 6,450 Total Group 24,676 28,206 27,151 * The Other operations' staff numbers include staff from central operations and Africa which are unallocated to a segment. † Average staff numbers of the discontinued UK and Europe operations are for the period up to the demerger in October 2019. The costs of employment, for both continuing and discontinued operations, were: 2019 $m 2018 $m 2017 $m Group Group Group Continuing Discontinued total Continuing Discontinued total Continuing Discontinued total Wages and salaries 1,435 573 2,008 1,517 694 2,211 1,557 730 2,287 Social security costs 53 68 121 71 84 155 73 93 166 Defined benefit schemes* (91) (5) (96) 7 (46) (39) (23) 19 (4) Defined contribution schemes 69 41 110 77 50 127 67 43 110 Total Group† 1,466 677 2,143 1,672 782 2,454 1,674 885 2,559 * The charge (credit) incorporated the effect of actuarial gains and losses. Post-demerger of the UK and Europe operations, the Group's defined benefit schemes costs are expected to be negligible. See note C9. † Total costs of employment in the table above include the costs of employment of the discontinued UK and Europe operations up to the demerger in October 2019. B2.2 Share-based payment The Group offers discretionary share awards to certain key employees and all-employee share plans for all UK and a number of Asian locations. The compensation expense charged to the income statement is primarily based upon the fair value of the options granted, the vesting period and the vesting conditions. The Company has established trusts to facilitate the delivery of Prudential plc shares under these plans. The cost to the Company of acquiring these newly issued shares held in trusts is shown as a deduction from shareholders’ equity. (a) Description of the plans The Group operates a number of share award plans that provides Prudential plc shares, or ADRs, to participants upon vesting. The plans in operation include the Prudential Long Term Incentive Plan (PLTIP), the Prudential Annual Incentive Plan (AIP), savings-related share option schemes, share purchase plans and deferred bonus plans. Where Executive Directors participate in these plans, details are provided in the Compensation and Employee section. In addition, the following information is provided. Share scheme Description Prudential Corporation Asia Long-Term Incentive Plan (PCA LTIP) The PCA LTIP provides eligible employees with conditional awards. Awards are discretionary and vest after three years subject to the employee being in employment. Vesting of awards may also be subject to performance conditions. All awards are generally made in Prudential shares, or ADRs. In countries where share awards are not feasible due to securities and/or tax considerations, awards will be replaced by the cash value of the shares that would otherwise have vested. Prudential Agency Long-Term Incentive Plan Certain agents in Asia are eligible to be granted awards under the Prudential Agency Long-Term Incentive Plan. These awards are structured in a similar way to the PCA LTIP described above. Restricted Share Plan (RSP) The Company operates the RSP for certain employees. Awards under this plan are discretionary, and the vesting of awards may be subject to performance conditions. All awards are made in Prudential shares or ADRs. Deferred bonus plans The Company operates a number of deferred bonus plans including the Group Deferred Bonus Plan (GDBP) and the Prudential Corporation Asia Deferred Bonus Plan (PCA DBP). There are no performance conditions attached to deferred share awards made under these arrangements. Savings-related share option schemes Employees and eligible agents in a number of geographies are eligible for plans similar to the HMRC-approved Save As You Earn (SAYE) share option scheme in the UK. During the year ended 31 December 2019 eligible employees participated in the International Savings-Related Share Option Scheme while eligible agents based in certain regions of Asia can participate in the International Savings-Related Share Option Scheme for Non-Employees. Share purchase plans Eligible employees outside the UK are invited to participate in arrangements similar to the Company’s HMRC-approved UK SIP, which allows the purchase of Prudential plc shares. Staff based in Asia are eligible to participate in the Prudential Corporation Asia All Employee Share Purchase Plan. (b) Outstanding options and awards The following table shows the movement in outstanding options and awards under the Group’s share-based compensation plans: Options outstanding under SAYE Awards outstanding under schemes incentive plans 2019 2018 2017 Weighted Weighted Weighted average average average Number exercise Number exercise Number exercise Number of options price of options price of options price of awards millions £ millions £ millions £ millions Balance at beginning of year: 4.9 12.10 6.4 11.74 7.1 10.74 32.8 33.6 30.2 Granted 0.6 11.13 0.3 13.94 1.4 14.55 13.4 10.7 12.7 Modification 0.3 11.95 — — — — 4.3 — — Exercised (1.7) 10.87 (1.4) 10.85 (1.7) 10.07 (9.8) (8.7) (7.3) Forfeited — 12.87 (0.1) 12.25 (0.1) 10.83 (2.5) (2.6) (1.3) Cancelled (0.1) 12.82 (0.2) 12.43 (0.2) 11.19 (0.7) — (0.1) Lapsed/Expired (0.1) 12.93 (0.1) 12.60 (0.1) 10.86 (1.0) (0.2) (0.6) M&G plc awards derecognised on demerger (0.1) 13.37 — — — — (3.5) — — Balance at end of year 3.8 12.38 4.9 12.10 6.4 11.74 33.0 32.8 33.6 Options immediately exercisable at end of year 0.9 11.33 0.8 10.37 0.4 11.06 On demerger of the M&G plc business from the Prudential Group, outstanding share / ADR awards for Prudential plc participants were adjusted to receive the demerger dividend in the form of additional Prudential plc shares / ADRs, to be released on the same timetable and to the same extent as their original share awards. In the case of the International Savings-Related Share Option Scheme for Non-Employees the adjustments to outstanding options were confirmed as being fair and reasonable by an independent financial adviser in accordance with the rules of that plan and the Hong Kong Stock Exchange Listing Rules. Employees of M&G plc were granted replacement awards over M&G plc shares, in exchange for existing Group awards outstanding under incentive plans. As designated replacement awards were granted, no cancellation was recognised in respect of the original awards. As the replacement awards are an obligation of M&G plc, these awards were derecognised by the Group on demerger. M&G plc employees with outstanding SAYE options on demerger were treated as ‘good leavers’, with both the vesting period and number of options exercisable curtailed on demerger. The weighted average share price of Prudential plc for 2019 was £15.05 (2018: £17.36 ; 2017: £17.51). The following table provides a summary of the range of exercise prices for Prudential plc options outstanding at 31 December: Outstanding Exercisable Weighted average Number remaining Weighted average Number Weighted average outstanding contractual life exercise exercisable exercise (millions) (years)* prices £ (millions) prices £ Between £6 and £7 — — — — — 0.4 — — 6.29 — — — — — 6.29 Between £9 and £10 — 0.3 0.5 — 0.4 1.4 — 9.01 9.01 — 0.3 — — 9.01 — Between £11 and £12 2.4 3.0 4.5 2.0 1.6 2.2 11.19 11.19 11.21 0.9 0.5 0.4 11.33 11.11 11.55 Between £13 and £14 0.3 0.3 — 3.2 4.1 — 13.94 13.94 — — — — — — — Between £14 and £15 1.1 1.3 1.4 2.0 2.6 3.9 14.55 14.55 14.55 — — — — — — Weighted average 3.8 4.9 6.4 2.1 2.1 2.5 12.38 12.10 11.74 0.9 0.8 0.4 11.33 11.06 * The years shown above for weighted average remaining contractual life include the time period from end of vesting period to expiration of contract. (c) Fair value of options and awards The fair value amounts estimated on the date of grant relating to all options and awards were determined by using the following assumptions: 2019 2018 2017 SAYE options Granted in Granted in Prudential October November Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 3.66 2.10 — — 2.52 — — 2.85 — Expected volatility (%) 22.14 25.58 23.92 — 24.03 21.09 — 23.17 20.15 — Risk-free interest rate (%) 0.97 0.31 1.60 — 1.19 0.97 — 0.62 0.56 — Expected option life (years) — 3.96 3.47 — — 3.94 — — 3.49 — Weighted average exercise price (£) — 11.12 11.18 — — 13.94 — — 14.55 — Weighted average share price at grant date (£) 16.07 13.94 13.77 — 17.46 16.64 — 16.80 17.74 — Weighted average fair value at grant date (£) 6.32 2.90 3.35 15.39 6.64 3.29 17.04 8.30 3.29 16.12 The compensation costs for all awards and options are recognised in net income over the plans’ respective vesting periods. The Group uses the Black-Scholes model to value all options and awards other than those which have TSR performance conditions attached (some Prudential LTIP and RSP awards) for which the Group uses a Monte Carlo model in order to allow for the impact of these conditions. These models are used to calculate fair values for share options and awards at the grant date based on the quoted market price of the stock at the measurement date, the amount, if any, that the employees are required to pay, the dividend yield, expected volatility, risk-free interest rates and exercise prices. For all options and awards, the expected volatility is based on the market implied volatilities as quoted on Bloomberg. The Prudential specific at-the-money implied volatilities are adjusted to allow for the different terms and discounted exercise price on SAYE options by using information on the volatility surface of the FTSE 100. Risk-free interest rates are taken from swap spot rates with projections for two-year, three-year and five-year terms to match corresponding vesting periods. For 2019 awards issued prior to demerger, dividend yields are determined as the average yield over a period of 12 months up to and including the date of grant, and data is based on sterling risk free rates. For 2019 awards issued after demerger, dividend yields are estimated based on £750 million target dividend included in the demerger investor circular and data is based on US dollar risk free rates. For awards with a TSR condition, volatilities and correlations between Prudential and a basket of 12 competitor companies is required. For grants in 2019, the average volatility for the basket of competitors was 23.10 per cent (2018: 21.32 per cent; 2017: 22.93 per cent). Correlations for the basket are calculated for each pairing from the log of daily TSR returns for the three years prior to the valuation date. Market implied volatilities are used for both Prudential and the basket of competitors. Changes to the subjective input assumptions could materially affect the fair value estimate. (d) Share-based payment expense charged to the income statement Total expense recognised in 2019 in the consolidated financial statements relating to share-based compensation is $181 million (2018: $191 million), all accounted for as equity-settled. The Group has no liabilities outstanding at the year-end relating to awards that are settled in cash. B2.3 Key management remuneration Key management constitutes the Directors of Prudential plc as they have authority and responsibility for planning, directing and controlling the activities of the Group and following reorganisations during 2019, key management also includes other non-director members of the Group Executive Committee from August 2019. Total key management remuneration is analysed in the following table: 2019 $m 2018 $m 2017 $m Salaries and short-term benefits 25.2 22.0 23.0 Post-employment benefits 1.5 2.0 2.0 Share-based payments 13.1 19.0 18.0 39.8 43.0 43.0 The share-based payments charge comprises $8.4 million (2018: $13.0 million; 2017: $10.7 million), which is determined in accordance with IFRS 2 ‘Share-based Payment’ (see note B2.2) and $4.8 million (2018: $6.4 million; 2017: $7.5 million) of deferred share awards. B2.4 Fees payable to the auditor 2019 $m 2018 $m 2017 $m Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 2.2 2.8 2.7 Fees payable to the Company’s auditor and its associates for other services: Audit of subsidiaries pursuant to legislation 9.5 12.3 10.7 Audit-related assurance services * 5.7 6.3 5.5 Other assurance services 5.7 1.5 1.9 Services relating to corporate finance transactions 7.3 0.3 0.5 All other services — 1.2 0.9 Total fees paid to the auditor 30.4 24.4 22.2 Analysed into: Fees payable to the auditor attributable to the continuing operations: Non-audit services associated with the demerger of the UK and Europe operations† 11.7 1.0 — Other audit and non-audit services 15.3 15.1 14.6 27.0 16.1 14.6 Fees payable to the auditor attributable to the discontinued UK and Europe operations 3.4 8.3 7.6 30.4 24.4 22.2 * Of the audit-related assurance service fees of $5.7 million in 2019 (2018: $6.3 million), $1.1 million relates to services that are required by law. † In addition, there were fees incurred by pension schemes of $0.1 million (2018: $0.3 million; 2017: $0.1 million) for audit services. These pension schemes were transferred to UK and Europe operations in 2019 as part of the demerger.

Effect of changes and other acc

Effect of changes and other accounting matters on insurance assets and liabilities	12 Months Ended
	Dec. 31, 2019
Effect of changes and other accounting matters on insurance assets and liabilities
Effect of changes and other accounting matters on insurance assets and liabilities	B3 Effect of changes and other accounting matters on insurance assets and liabilities The following matters are relevant to the determination of the 2019 results: (a) Asia insurance operations In 2019, the adjusted IFRS operating profit based on longer-term investment returns for Asia insurance operations includes a net credit of $142 million (2018: credit of $126 million; 2017: credit of $96 million) representing a small number of items that are not expected to reoccur, including the impact of a refinement to the run-off of the allowance for prudence within technical provisions. (b) US insurance operations Changes in the policyholder liabilities held for variable and fixed index annuity guarantees are reported as part of non-operating profit and are as described in note B1.2.

Tax charge from continuing oper

Tax charge from continuing operations	12 Months Ended
	Dec. 31, 2019
Tax charge from continuing operations
Tax charge from continuing operations	B4 Tax charge from continuing operations Prudential is subject to tax in numerous jurisdictions and the calculation of the total tax charge inherently involves a degree of estimation and judgement. Current tax expense is charged or credited based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year and adjustments made in relation to prior years. The positions taken in tax returns where applicable tax regulation is subject to interpretation are recognised in full in the determination of the tax charge in the financial statements if the Group considers that it is probable that the taxation authority will accept those positions. Otherwise, provisions are established based on management's estimate and judgement of the likely amount of the liability, or recovery by providing for the single best estimate of the most likely outcome or the weighted average expected value where there are multiple outcomes. The total tax charge includes tax expense attributable to both policyholders and shareholders. The tax expense attributable to policyholders comprises the tax on the income of the consolidated with-profits and unit-linked funds. In certain jurisdictions, life insurance companies are taxed on both their shareholders' profits and on their policyholders' insurance and investment returns on certain insurance and investment products. Although both types of tax are included in the total tax charge in the Group's consolidated income statement, they are presented separately in the consolidated income statement to provide the most relevant information about tax that the Group pays on its profits. Deferred taxes are provided under the liability method for all relevant temporary differences. IAS 12 'Income Taxes' does not require all temporary differences to be provided for, in particular, the Group does not provide for deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the temporary difference created is not expected to reverse in the foreseeable future. Deferred tax assets are only recognised when it is more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period. B4.1 Total tax charge by nature of expense The total tax charge for continuing operations in the income statement is as follows: 2019 $m 2018 $m 2017 $m Current Deferred Tax charge tax tax Total Total Total Attributable to shareholders: Asia operations (306) (162) (468) (369) (326) US operations (307) 652 345 (340) (655) Other operations 182 (28) 154 140 141 Tax (charge) credit attributable to shareholders' returns (431) 462 31 (569) (840) Attributable to policyholders: Asia operations (130) (235) (365) (107) (321) Total tax (charge) credit (561) 227 (334) (676) (1,161) The principal reason for the decrease in the tax charge attributable to shareholders’ returns from continuing operations is the increase in the tax credit on US derivative losses which largely offset the tax charge on Asia profits in 2019. The reconciliation of the expected to actual tax charge attributable to shareholders is provided in B4.2 below. The tax charge attributable to policyholders of $365 million above is equal to the profit before tax attributable to policyholders of $365 million. This is the result of accounting for policyholder income after the deduction of expenses and movement on unallocated surpluses on an after-tax basis. The total tax (charge) credit comprises: 2019 $m 2018 $m 2017 $m Current tax expense: Corporation tax (589) (380) (165) Adjustments in respect of prior years 28 15 48 Total current tax charge (561) (365) (117) Deferred tax arising from: Origination and reversal of temporary differences 235 (331) (470) Impact of changes in local statutory tax rates 7 11 (574) Credit in respect of a previously unrecognised tax loss, tax credit or temporary difference from a prior period (15) 9 — Total deferred tax credit (charge) 227 (311) (1,044) Total tax charge (334) (676) (1,161) The reduction in the deferred tax charge from $311 million in 2018 to a credit of $227 million in 2019 principally relates to the increase in the tax credit on US derivative losses, which are tax deductible over a three year period. In 2019, a tax charge of $709 million (2018: charge of $387 million; 2017: charge of $85 million from continuing operations), principally relating to an increase in the market value on securities of US insurance operations classified as available-for-sale, has been taken through other comprehensive income. B4.2 Reconciliation of shareholder effective tax rate for continuing operations In the reconciliation below, the expected tax rates reflect the corporation tax rates that are expected to apply to the taxable profit or loss of the relevant business. Where there are profits or losses of more than one jurisdiction, the expected tax rates reflect the corporation tax rates weighted by reference to the amount of profit or loss contributing to the aggregate business result. 2019 2018 2017 Total Percentage Total Percentage Total Percentage Asia US Other* attributable to impact on attributable to impact on attributable to impact on operations operations operations shareholders ETR shareholders ETR shareholders ETR $m $m $m $m % $m % $m % Adjusted IFRS operating profit (loss) based on longer-term investment returns 3,276 3,070 (1,036) 5,310 — 4,409 — 4,378 Non-operating profit (loss) 917 (3,795) (510) (3,388) — (959) — (1,790) Profit (loss) before tax 4,193 (725) (1,546) 1,922 — 3,450 — 2,588 Expected tax rate: 20 % 21 % 19 % 20 % 22 % 27 % Tax at the expected rate 839 (152) (294) 393 20.4 % 759 22.0 % 701 27.1 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates (94) (29) (3) (126) (6.6) % (71) (2.1) % (115) (4.4) % Deductions not allowable for tax purposes 40 10 5 55 2.9 % 69 2.0 % 54 2.1 % Items related to taxation of life insurance businesses note (i) (192) (125) – (317) (16.5) % (128) (3.7) % (425) (16.4) % Deferred tax adjustments (28) (1) (4) (33) (1.7) % (55) (1.6) % 29 1.1 % Unrecognised tax losses note (ii) – – 46 46 2.4 % — — — — Effect of results of joint ventures and associates note (iii) (100) – – (100) (5.2) % (83) (2.4) % (67) (2.6) % Irrecoverable withholding taxes note (iv) – – 59 59 3.1 % 63 1.8 % 70 2.7 % Other 5 5 3 13 0.7 % 9 0.3 % (15) (0.6) % Total (369) (140) 106 (403) (20.9) % (196) (5.7) % (469) (18.1) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years 4 (53) (18) (67) (3.5) % (4) (0.1) % (27) (1.0) % Movements in provisions for open tax matters note (v) 17 — (18) (1) (0.0) % 10 0.3 % 57 2.2 % Demerger related activities note (vi) — — 76 76 4.1 % — — — — Impact of US tax reform — — — — — — — 573 22.1 % Adjustments in relation to business disposals (23) — (6) (29) (1.4) % — — 5 0.2 % Total (2) (53) 34 (21) (1.1) % 6 0.2 % 608 23.5 % Total actual tax charge (credit) 468 (345) (154) (31) (1.6) % 569 16.5 % 840 32.5 % Analysed into: Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns 436 437 (100) 773 — 666 — 922 — Tax on non-operating profit (loss) 32 (782) (54) (804) — (97) — (82) — Actual tax rate on: Adjusted IFRS operating profit (loss) based on longer-term investment returns: Including non-recurring tax reconciling items 13 % 14 % 10 % 15 % — 15 % — 21 % — Excluding non-recurring tax reconciling items 13 % 16 % 10 % 15 % — 15 note (vii) % — 20 note (vii) % — Total profit (loss) 11 % 48 % 10 % (2) % — 16 note (vii) % — 32 note (vii) % — * Other operations include restructuring costs. Notes (i) The $125 million (2018: $111 million; 2017: $307 million) reconciling item in US operations reflects the impact of the dividend received deduction on the taxation of profits from variable annuity business. The principal reason for the increase in the Asia operations reconciling items from $17 million in 2018 to $192 million in 2019 reflects an increase in investment gains in Hong Kong which are not taxable due to the taxable profit being computed as 5 per cent of net insurance premiums. (ii) The $46 million adverse reconciling item in unrecognised tax losses reflects losses arising after the demerger of the Group’s UK and Europe operations where it is unlikely that relief for the losses will be available in future periods. (iii) Profit before tax includes Prudential’s share of profit after tax from the joint ventures and associates. Therefore, the actual tax charge does not include tax arising from profit or loss of joint ventures and associates and is reflected as a reconciling item. (iv) The $59 million (2018: $63 million; 2017: $70 million) adverse reconciling items reflects local withholding taxes on dividends paid by certain non-UK subsidiaries, principally Indonesia, to the UK. The dividends are exempt from UK tax and consequently the withholding tax cannot be offset against UK tax payments. (v) The complexity of the tax laws and regulations that relate to our businesses means that from time to time we may disagree with tax authorities on the technical interpretation of a particular area of tax law. This uncertainty means that in the normal course of business the Group will have matters where, upon ultimate resolution of the uncertainty, the amount of profit subject to tax may be greater than the amounts reflected in the Group’s submitted tax returns. The statement of financial position contains the following provisions in relation to open tax matters. $m Balance at beginning of year 190 Movements in the current year included in: Tax charge attributable to shareholders (1) Other movements* 9 Balance at end of year 198 * Other movements include interest arising on open tax matters and amounts included in the Group’s share of profits from joint ventures and associates, net of related tax. (vi) The $76 million adverse reconciling items in Demerger related activities relates to non-tax deductible costs incurred in preparation for, or as a result of, the demerger of the Group’s UK and Europe operations. (vii) 2018 and 2017 actual tax rate of the relevant business operations are shown below: 2018 Asia US Other Total attributable to operations operations operations shareholders Adjusted IFRS operating profit based on longer-term investment returns 14 % 16 % 14 % 15 % Profit before tax 17 % 15 % 13 % 16 % 2017 Asia US Other Total attributable to operations operations operations shareholders Adjusted IFRS operating profit based on longer-term investment returns 14 % 25 % 13 % 21 % Profit before tax 12 % 67 % 14 % 32 %

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2019
Earnings per share
Earnings per share	B5 Earnings per share Accounting principles Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders (after related tax and non-controlling interests) by the weighted average number of ordinary shares outstanding during the year, excluding those held in employee share trusts and consolidated investment funds, which are treated as cancelled. For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group's only class of potentially dilutive ordinary shares are those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. No adjustment is made if the impact is anti-dilutive overall. 2019 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 783 30.3 ¢ 30.3 ¢ Loss for the year from discontinued operations D2 — — — 1,161 44.8 ¢ 44.8 ¢ Profit for the year from continuing operations 1,922 31 (9) 1,944 75.1 ¢ 75.1 ¢ Short-term fluctuations in investment returns on shareholder-backed business 3,203 (772) — 2,431 94.0 ¢ 94.0 ¢ Amortisation of acquisition accounting adjustments 43 (8) — 35 1.3 ¢ 1.3 ¢ Loss on disposal of businesses and corporate transactions D1.1 142 (24) — 118 4.6 ¢ 4.6 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 5,310 (773) (9) 4,528 175.0 ¢ 175.0 ¢ 2018 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 4,019 156.0 ¢ 156.0 ¢ Loss for the year from discontinued operations D2 — — — (1,142) (44.3) ¢ (44.3) ¢ Profit for the year from continuing operations 3,450 (569) (4) 2,877 111.7 ¢ 111.7 ¢ Short-term fluctuations in investment returns on shareholder-backed business 791 (70) — 721 28.0 ¢ 28.0 ¢ Amortisation of acquisition accounting adjustments 61 (11) — 50 1.9 ¢ 1.9 ¢ Loss on disposal of businesses and corporate transactions D1.1 107 (16) — 91 3.6 ¢ 3.5 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 4,409 (666) (4) 3,739 145.2 ¢ 145.1 ¢ 2017 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 3,080 120.0 ¢ 119.9 ¢ Loss for the year from discontinued operations D2 — — — (1,333) (52.0) ¢ (52.0) ¢ Profit for the year from continuing operations 2,588 (840) (1) 1,747 68.0 ¢ 67.9 ¢ Short-term fluctuations in investment returns on shareholder-backed business B1.2 1,994 (736) — 1,258 49.0 ¢ 49.0 ¢ Amortisation of acquisition accounting adjustments 82 (26) — 56 2.2 ¢ 2.2 ¢ Cumulative exchange gain on the sold Korea life business recycled from other comprehensive income (78) — — (78) (3.0) ¢ (3.0) ¢ Gain (loss) on disposal of businesses and corporate transactions D1.1 (208) 106 — (102) (4.0) ¢ (4.0) ¢ Impact of US tax reform — 574 — 574 22.4 ¢ 22.4 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 4,378 (922) (1) 3,455 134.6 ¢ 134.5 ¢ Number of shares (in millions) Weighted average number of shares* for calculation of : Basic earnings per share 2,587 2,575 2,567 Shares under option at end of year 4 5 6 Shares that would have been issued at fair value on assumed option price (4) (4) (5) Diluted earnings per share 2,587 2,576 2,568 * Excluding those held in employee share trusts and consolidated investment funds.

Dividends

Dividends	12 Months Ended
	Dec. 31, 2019
Dividends
Dividends	B6 Dividends B6.1 Demerger dividend in specie of M&G plc On 21 October 2019, following approval by the Group's shareholders, Prudential plc demerged M&G plc its UK and Europe operations via a dividend in specie. As required by IFRIC 17 ' Distributions of Non-cash Assets to Owners ', the dividend has been recorded at the fair value of M&G plc being $7,379 million. B6.2 Other dividends First and second interim dividends are recorded in the period in which they are paid. Final dividends (if applicable) are recorded in the period in which they are approved by shareholders. 2019 2018 2017 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim ordinary dividend 20.29 ¢ 528 20.55 ¢ 530 19.50 ¢ 501 Second interim ordinary dividend 25.97 ¢ 675 42.89 ¢ 1,108 43.79 ¢ 1,132 Total 46.26 ¢ 1,203 63.44 ¢ 1,638 63.29 ¢ 1,633 Dividends paid in reporting year: Current year first interim ordinary dividend 20.29 ¢ 526 20.55 ¢ 530 19.50 ¢ 501 Second interim ordinary dividend for prior year 42.89 ¢ 1,108 43.79 ¢ 1,132 39.82 ¢ 1,024 Total 63.18 ¢ 1,634 64.34 ¢ 1,662 59.32 ¢ 1,525 Dividend per share The 2019 first interim ordinary dividend of 20.29 cents per ordinary share was paid to eligible shareholders on 26 September 2019. The second interim ordinary dividend for the year ended 31 December 2019 of 25.97 cents per ordinary share will be paid on 15 May 2020 to shareholders on the UK register on 27 March 2020 (Record Date), and to shareholders on the Hong Kong register at 4.30pm Hong Kong time on the Record Date (HK Shareholders). Holders of US American Depositary Receipts (US Shareholders) will be paid their dividends on 15 May 2020. The second interim ordinary dividend will be paid on or about 22 May 2020 to shareholders with shares standing to the credit of their securities accounts with The Central Depository (Pte) Limited (CDP) at 5.00pm Singapore time on the Record Date (SG Shareholders). The Group’s 2020 dividend under the new progressive dividend policy will be determined from a 2019 US dollar base of $958 million (36.84 cents per share), equivalent to the circa £750 million previously disclosed in the Circular. This represents the first interim ordinary dividend relating to 2019 of $528 million plus the second interim ordinary dividend of $675 million less the contribution of remittances from the discontinued M&G plc business to the second interim ordinary dividend of $245 million. Prudential plc now determines and declares its dividends in US dollars, commencing with dividends paid in 2020, including the 2019 second interim dividend. Shareholders holding shares on the UK or Hong Kong share registers will continue to receive their dividend payments in either pounds sterling or Hong Kong dollars respectively, unless they elect otherwise. Shareholders holding shares on the UK or Hong Kong registers may elect to receive dividend payments in US dollars. Elections must be made through the relevant UK or Hong Kong share registrar on or before 23 April 2020. The corresponding amount per share in pounds sterling and Hong Kong dollars is expected to be announced on or about 30 April 2020.The US dollar to pound sterling and Hong Kong dollar conversion rates will be determined by the actual rates achieved by Prudential buying those currencies during the two working days preceding the subsequent announcement. Holders of American Depositary Receipts (ADRs) will continue to receive their dividend payments in US dollars. Shareholders holding an interest in Prudential shares through the Central Depository (Pte) Limited (CDP) in Singapore will continue to receive their dividend payments in Singapore dollars at an exchange rate determined by CDP. Shareholders on the UK register are eligible to participate in a Dividend Reinvestment Plan.

Analysis of Group statement of

Analysis of Group statement of financial position by segment	12 Months Ended
	Dec. 31, 2019
Analysis of Group statement of financial position by segment
Analysis of Group statement of financial position by segment	C FINANCIAL POSITION NOTES C1 Analysis of Group statement of financial position by segment To explain the assets, liabilities and capital of the Group's businesses more comprehensively, it is appropriate to provide analyses of the Group's statement of financial position by operating segment and type of business. 31 Dec 2019 $m Elimination of intra- Unallocated group to a segment debtors (central and Group Asia US operations) creditors total By operating segment Note C2.1 C2.2 note (i) Assets Goodwill C5.1 926 — 43 — 969 Deferred acquisition costs and other intangible assets C5.2 5,154 12,264 58 — 17,476 Reinsurers' share of insurance contract liabilities 5,458 8,394 4 — 13,856 Other assets note (ii) 3,208 5,432 3,339 (2,652) 9,327 Investment properties 7 7 11 — 25 Investment in joint ventures and associates accounted for using the equity method D7 1,500 — – — 1,500 Financial investments note (v) 131,499 271,190 1,407 — 404,096 Cash and cash equivalents note (iii) 2,490 1,960 2,515 — 6,965 Total assets 150,242 299,247 7,377 (2,652) 454,214 Equity Shareholders' equity 10,866 8,929 (318) — 19,477 Non-controlling interests 155 — 37 — 192 Total equity 11,021 8,929 (281) — 19,669 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.1 115,943 269,549 186 — 385,678 Unallocated surplus of with-profits funds C4.1 4,750 — – — 4,750 Core structural borrowings of shareholder-financed businesses C6.1 — 250 5,344 — 5,594 Operational borrowings C6.2 473 1,501 671 — 2,645 Other liabilities note (iv) 18,055 19,018 1,457 (2,652) 35,878 Total liabilities 139,221 290,318 7,658 (2,652) 434,545 Total equity and liabilities 150,242 299,247 7,377 (2,652) 454,214 31 Dec 2018 $m Before elimination of intra-group debtors and creditors Elimination of intra- Unallocated Discontinued group to a segment Total UK and debtors (central continuing Europe and Group Asia US operations) operations operations creditors Total By operating segment Note C2.1 C2.2 note (i) Assets Goodwill C5.1 634 — — 634 1,731 — 2,365 Deferred acquisition costs and other intangible assets C5.2 3,741 11,140 55 14,936 249 — 15,185 Reinsurers' share of insurance contract liabilities 3,537 8,485 2 12,024 3,581 (1,412) 14,193 Other assets note (ii) 4,987 4,569 2,829 12,385 9,044 (6,834) 14,595 Investment properties 6 8 — 14 22,815 — 22,829 Investment in joint ventures and associates accounted for using the equity method 1,262 — — 1,262 945 — 2,207 Financial investments note (v) 103,016 232,955 2,998 338,969 208,553 — 547,522 Assets held for sale — — — — 13,472 — 13,472 Cash and cash equivalents note (iii) 2,789 3,827 2,778 9,394 6,048 — 15,442 Total assets 119,972 260,984 8,662 389,618 266,438 (8,246) 647,810 Equity Shareholders' equity 8,175 7,163 (4,450) 10,888 11,080 — 21,968 Non-controlling interests 12 — 11 23 — — 23 Total equity 8,187 7,163 (4,439) 10,911 11,080 — 21,991 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.1 93,248 236,380 50 329,678 193,020 (1,412) 521,286 Unallocated surplus of with-profits funds C4.1 3,198 — — 3,198 16,982 — 20,180 Core structural borrowings of shareholder-financed businesses C6.1 — 250 9,511 9,761 — — 9,761 Operational borrowings C6.2 102 418 640 1,160 5,129 — 6,289 Other liabilities note (iv) 15,237 16,773 2,900 34,910 26,768 (6,834) 54,844 Liabilities held for sale — — — — 13,459 — 13,459 Total liabilities 111,785 253,821 13,101 378,707 255,358 (8,246) 625,819 Total equity and liabilities 119,972 260,984 8,662 389,618 266,438 (8,246) 647,810 Notes (i) Unallocated to a segment includes central operations, the Group's treasury function and Africa operations as per note B1.3. (ii) 'Other assets' at 31 December 2019 included property, plant and equipment of $1,065 million relating to continuing operations (31 December 2018: $1,795 million, of which $482 million related to continuing operations). On 1 January 2019, $527 million of right-of-use assets was recognised for continuing operations upon adoption of IFRS 16 (see note A3). Movements in the right-of-use assets in 2019 is provided in note C13. Also included in 'Other assets' are accrued investment income and other debtors at 31 December 2019 of $3,695 million (31 December 2018: $8,708 million), of which $3,191 million (31 December 2018: $7,834 million) are expected to be settled within one year. These are further analysed as follows: 31 Dec 2019 $m 31 Dec 2018 $m Interest receivable 1,064 2,221 Other 577 1,280 Total accrued investment income 1,641 3,501 Premiums receivable due from: Policyholders 574 576 Intermediaries 4 4 Reinsurers 216 277 Other receivables 1,260 4,350 Total other debtors 2,054 5,207 Total accrued investment income and other debtors 3,695 8,708 Analysed as: From continuing operations — 4,356 From discontinued operations — 4,352 — 8,708 (iii) Cash and cash equivalents Cash and cash equivalents consist of cash at bank and in hand, deposits held at call with banks, treasury bills and other short-term highly liquid investments with less than 90 days maturity from the date of acquisition and are analysed as follows: 31 Dec 2019 $m 31 Dec 2018 $m Cash 2,071 7,335 Cash equivalents 4,894 8,107 Total cash and cash equivalents 6,965 15,442 Analysed as: Held centrally and available for general use by the Group 2,491 445 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 4,474 14,997 Total cash and cash equivalents 6,965 15,442 Comprising: Cash and cash equivalents from continuing operations — 9,394 Cash and cash equivalents from discontinued operations — 6,048 — 15,442 The Group’s cash and cash equivalents are held in the following currencies: US dollars 52 per cent, pounds sterling 20 per cent, Euro 1 per cent and other currencies 27 per cent (2018: US dollars 38 per cent, pounds sterling 32 per cent, Euro 15 per cent and other currencies 15 per cent). (iv) Accruals, deferred income and other liabilities are analysed as follows (maturity analysis is provided in note C3.4(a)): 31 Dec 2019 $m 31 Dec 2018 $m Accruals and deferred income 582 2,165 Other creditors 6,724 9,010 Creditors arising from direct insurance and reinsurance operations 2,831 3,010 Interest payable 68 149 Funds withheld under reinsurance of the REALIC business 3,760 3,745 Other items 523 1,342 Total accruals, deferred income and other liabilities 14,488 19,421 Analysed as: From continuing operations — 13,338 From discontinued operations — 6,083 — 19,421 (1) (v) Of the total financial investments of $404,096 million as at 31 December 2019 (31 December 2018: $547,522 million), $260,896 million (2018: $304,843 million) are due to be recovered within one year.

Analysis of segment statement o

Analysis of segment statement of financial position by business type	12 Months Ended
	Dec. 31, 2019
Analysis of segment statement of financial position by business type
Analysis of segment statement of financial position by business type	C2 Analysis of segment statement of financial position by business type To show the statement of financial position by reference to the differing degrees of policyholder and shareholder economic interest of the different types of business, the analysis below is structured to show the assets and liabilities of each segment by business type. C2.1 Asia 31 Dec 31 Dec 2019 $m 2018 $m Total insurance Unit-linked With-profits assets and Other Asset Note business* liabilities business Total management Eliminations Total Total Assets Goodwill — — 327 327 599 — 926 634 Deferred acquisition costs and other intangible assets 67 — 5,072 5,139 15 — 5,154 3,741 Reinsurers’ share of insurance contract liabilities 152 — 5,306 5,458 – — 5,458 3,537 Other assets 1,210 237 1,584 3,031 212 (35) 3,208 4,987 Investment properties — — 7 7 – — 7 6 Investment in joint ventures and associates accounted for using the equity method — — 1,263 1,263 237 — 1,500 1,262 Financial investments 76,581 24,628 29,982 131,191 308 — 131,499 103,016 Cash and cash equivalents 963 356 1,015 2,334 156 — 2,490 2,789 Total assets 78,973 25,221 44,556 148,750 1,527 (35) 150,242 119,972 Total equity — — 9,803 9,803 1,218 — 11,021 8,187 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.2 65,558 23,571 26,814 115,943 — — 115,943 93,248 Unallocated surplus of with-profits funds C4.2 4,750 — — 4,750 — — 4,750 3,198 Operational borrowings 302 21 123 446 27 — 473 102 Other liabilities 8,363 1,629 7,816 17,808 282 (35) 18,055 15,237 Total liabilities 78,973 25,221 34,753 138,947 309 (35) 139,221 111,785 Total equity and liabilities 78,973 25,221 44,556 148,750 1,527 (35) 150,242 119,972 * The statement of financial position for with-profits business comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore operations. 'Other business' includes assets and liabilities of other participating businesses and other non-linked shareholder-backed business. C2.2 US 31 Dec 31 Dec 2019 $m 2018 $m Total insurance Variable annuity Fixed separate account annuity, assets and GICs and other Asset Note liabilities business Total management Eliminations Total Total Assets Goodwill — — — — — — — Deferred acquisition costs and other intangible assets — 12,264 12,264 — — 12,264 11,140 Reinsurers’ share of insurance contract liabilities — 8,394 8,394 — — 8,394 8,485 Other assets — 5,293 5,293 228 (89) 5,432 4,569 Investment properties — 7 7 – – 7 8 Financial investments 195,070 76,106 271,176 14 — 271,190 232,955 Cash and cash equivalents – 1,912 1,912 48 — 1,960 3,827 Total assets 195,070 103,976 299,046 290 (89) 299,247 260,984 Total equity — 8,923 8,923 6 – 8,929 7,163 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.3 195,070 74,479 269,549 — — 269,549 236,380 Core structural borrowings of shareholder-financed businesses C6.1 — 250 250 — — 250 250 Operational borrowings — 1,460 1,460 41 — 1,501 418 Other liabilities — 18,864 18,864 243 (89) 19,018 16,773 Total liabilities 195,070 95,053 290,123 284 (89) 290,318 253,821 Total equity and liabilities 195,070 103,976 299,046 290 (89) 299,247 260,984

Group assets and liabilities -

Group assets and liabilities - measurement	12 Months Ended
	Dec. 31, 2019
Group assets and liabilities - measurement
Group assets and liabilities - measurement	C3.1 Group assets and liabilities – measurement The Group holds financial investments in accordance with IAS 39, whereby subject to specific criteria, financial instruments are required to be accounted for under one of the following categories: - Financial assets and liabilities at fair value through profit or loss – this comprises assets and liabilities designated by management as fair value through profit or loss on inception and derivatives that are held for trading. This includes instruments that are managed and the performance evaluated on a fair value basis and includes liabilities related to net assets attributable to unit holders of consolidated investment funds and, in Asia, policyholder liabilities for investment contracts without discretionary participation features. All investments within this category are measured at fair value with all changes thereon being recognised in investment return in the income statement; - Financial investments on an available-for-sale basis – this comprises assets that are designated by management as available-for-sale and/or do not fall into any of the other categories. These assets are initially recognised at fair value plus attributable transaction costs. Available-for-sale assets are subsequently measured at fair value. Interest income is recognised on an effective interest basis in the income statement. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset. Except for foreign exchange gains and losses on debt securities, which are included in the income statement, unrealised gains and losses are recognised in other comprehensive income. Upon disposal or impairment, accumulated unrealised gains and losses are transferred from other comprehensive income to the income statement as realised gains or losses; and - Loans and receivables – except for those designated as fair value through profit or loss or available-for-sale, these instruments comprise non-quoted investments that have fixed or determinable payments. These instruments include loans collateralised by mortgages, deposits, loans to policyholders and other unsecured loans and receivables. These investments are initially recognised at fair value plus transaction costs. Subsequently, these instruments are carried at amortised cost using the effective interest method. The Group uses the trade date method to account for regular purchases and sales of financial assets. (a) Fair value measurement hierarchy of Group assets and liabilities Assets and liabilities carried at fair value on the statement of financial position The table below shows the assets and liabilities carried at fair value analysed by level of the IFRS 13 ‘Fair Value Measurement’ defined fair value hierarchy. This hierarchy is based on the inputs to the fair value measurement and reflects the lowest level input that is significant to that measurement. All assets and liabilities held at fair value are classified as fair value through profit or loss, except for $58,302 million (31 December 2018: $52,025 million) of debt securities classified as available-for-sale, principally in the US operations. All assets and liabilities held at fair value are measured on a recurring basis. As of 31 December 2019, the Group did not have any financial instruments that are measured at fair value on a non-recurring basis . Financial instruments at fair value 31 Dec 2019 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable Analysis of financial investments, net of derivative liabilities by business type from continuing operations markets market inputs market inputs Total With-profits Equity securities and holdings in collective investment schemes 25,850 3,268 254 29,372 Debt securities 40,291 4,485 6 44,782 Other investments (including derivative assets) 57 103 — 160 Derivative liabilities (137) (94) — (231) Total financial investments, net of derivative liabilities 66,061 7,762 260 74,083 Percentage of total (%) 90 % 10 % 0 % 100 % Unit-linked and variable annuity separate account Equity securities and holdings in collective investment schemes 213,797 365 — 214,162 Debt securities 4,036 1,117 — 5,153 Other investments (including derivative assets) 6 4 — 10 Derivative liabilities (1) — — (1) Total financial investments, net of derivative liabilities 217,838 1,486 — 219,324 Percentage of total (%) 99 % 1 % 0 % 100 % Non-linked shareholder-backed Loans — — 3,587 3,587 Equity securities and holdings in collective investment schemes 3,638 87 22 3,747 Debt securities 23,600 61,035 — 84,635 Other investments (including derivative assets) 7 1,569 1,301 2,877 Derivative liabilities (47) (113) — (160) Total financial investments, net of derivative liabilities 27,198 62,578 4,910 94,686 Percentage of total (%) 29 % 66 % 5 % 100 % Group total analysis, including other financial liabilities held at fair value from continuing operations Loans — — 3,587 3,587 Equity securities and holdings in collective investment schemes 243,285 3,720 276 247,281 Debt securities 67,927 66,637 6 134,570 Other investments (including derivative assets) 70 1,676 1,301 3,047 Derivative liabilities (185) (207) — (392) Total financial investments, net of derivative liabilities 311,097 71,826 5,170 388,093 Investment contract liabilities without discretionary participation features held at fair value — (1,011) — (1,011) Net asset value attributable to unit holders of consolidated investment funds (5,973) (23) (2) (5,998) Other financial liabilities held at fair value — — (3,760) (3,760) Total financial instruments at fair value 305,124 70,792 1,408 377,324 Percentage of total (%) 81 % 19 % 0 % 100 % 31 Dec 2018 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable Analysis of financial investments, net of derivative liabilities by business type markets market inputs market inputs Total With-profits Loans — — 2,168 2,168 Equity securities and holdings in collective investment schemes 66,636 6,937 621 74,194 Debt securities 39,750 62,382 1,033 103,165 Other investments (including derivative assets) 183 4,156 5,508 9,847 Derivative liabilities (108) (1,568) — (1,676) Total financial investments, net of derivative liabilities 106,461 71,907 9,330 187,698 Percentage of total (%) 57 % 38 % 5 % 100 % Unit-linked and variable annuity separate account Equity securities and holdings in collective investment schemes 194,845 643 11 195,499 Debt securities 6,070 12,388 — 18,458 Other investments (including derivative assets) 8 4 8 20 Derivative liabilities (3) (4) — (7) Total financial investments, net of derivative liabilities 200,920 13,031 19 213,970 Percentage of total (%) 94 % 6 % 0 % 100 % Non-linked shareholder-backed Loans — — 3,886 3,886 Equity securities and holdings in collective investment schemes 3,764 3 24 3,791 Debt securities 22,525 78,713 472 101,710 Other investments (including derivative assets) 77 1,602 1,198 2,877 Derivative liabilities (2) (2,241) (539) (2,782) Total financial investments, net of derivative liabilities 26,364 78,077 5,041 109,482 Percentage of total (%) 24 % 71 % 5 % 100 % Group total analysis, including other financial liabilities held at fair value Loans — — 6,054 6,054 Equity securities and holdings in collective investment schemes 265,245 7,583 656 273,484 Debt securities 68,345 153,483 1,505 223,333 Other investments (including derivative assets) 268 5,762 6,714 12,744 Derivative liabilities (113) (3,813) (539) (4,465) Total financial investments, net of derivative liabilities 333,745 163,015 14,390 511,150 Investment contract liabilities without discretionary participation features held at fair value — (20,446) — (20,446) Borrowings attributable to with-profits businesses — — (2,045) (2,045) Net asset value attributable to unit holders of consolidated investment funds (8,727) (4,854) (1,258) (14,839) Other financial liabilities held at fair value — (3) (4,335) (4,338) Total financial instruments at fair value 325,018 137,712 6,752 469,482 Percentage of total (%) 70 % 29 % 1 % 100 % Analysed as: Total from continuing operations With-profits 49,914 5,003 203 55,120 Unit-linked and variable annuity separate account 182,833 (82) — 182,751 Non-linked shareholder-backed 21,077 55,972 339 77,388 253,824 60,893 542 315,259 Percentage of total continuing operations (%) 81 % 19 % 0 % 100 % Total from discontinued UK and Europe operations 71,194 76,819 6,210 154,223 Percentage of total discontinued operations (%) 46 % 50 % 4 % 100 % Assets and liabilities at amortised cost and their fair value The table below shows the financial assets and liabilities carried at amortised cost on the statement of financial position and their fair value. Cash deposits, accrued income, other debtors, accruals, deferred income and other liabilities are excluded from the analysis below, as these are carried at amortised cost, which approximates fair value. 31 Dec 2019 $m 31 Dec 2018 $m Level 2 Level 3 Level 2 Level 3 Valuation Valuation Valuation Valuation based on based on based on based on significant significant significant significant observable unobservable observable unobservable market market Fair Carrying market market Fair Carrying inputs inputs value value inputs inputs value value Assets Loans 1,865 11,646 13,511 12,996 3,691 13,714 17,405 16,884 Liabilities Investment contract liabilities without discretionary participation features — (3,957) (3,957) (3,891) — (4,021) (4,021) (4,035) Core structural borrowings of shareholder-financed businesses (6,227) — (6,227) (5,594) (9,994) — (9,994) (9,761) Operational borrowings (excluding lease liabilities) (2,015) — (2,015) (2,015) (3,857) (92) (3,949) (4,244) Obligations under funding, securities lending and sale and repurchase agreements (48) (9,087) (9,135) (8,901) (1,602) (7,323) (8,925) (8,901) Total financial instruments carried at amortised cost (6,425) (1,398) (7,823) (7,405) (11,762) 2,278 (9,484) (10,057) Analysed as: Total from continuing operations (10,240) (9,996) Total from discontinued UK and Europe operations 756 (61) (9,484) (10,057) The fair value of the assets and liabilities in the table above, with the exception of the subordinated and senior debt issued by the parent company, has been estimated from the discounted cash flows expected to be received or paid. Where appropriate, the observable market interest rate has been used and the assets and liabilities are classified within level 2. Otherwise, they are included as level 3 assets or liabilities. The fair value included for the subordinated and senior debt issued by the parent company is determined using quoted prices from independent third parties. These are presented as level 2 liabilities. (b) Valuation approach for level 2 fair valued assets and liabilities A significant proportion of the Group’s level 2 assets are corporate bonds, structured securities and other non-national government debt securities. These assets, in line with market practice, are generally valued using a designated independent pricing service or quote from third-party brokers. These valuations are subject to a number of monitoring controls, such as comparison to multiple pricing sources where available, monthly price variances, stale price reviews and variance analysis on prices achieved on subsequent trades. When prices are not available from pricing services, quotes are sourced directly from brokers. Prudential seeks to obtain a number of quotes from different brokers so as to obtain the most comprehensive information available on their executability. Where quotes are sourced directly from brokers, the price used in the valuation is normally selected from one of the quotes based on a number of factors, including the timeliness and regularity of the quotes and the accuracy of the quotes considering the spreads provided. The selected quote is the one which best represents an executable quote for the security at the measurement date. Generally, no adjustment is made to the prices obtained from independent third parties. Adjustment is made in only limited circumstances, where it is determined that the third-party valuations obtained do not reflect fair value (eg either because the value is stale and/or the values are extremely diverse in range). These are usually securities which are distressed or that could be subject to a debt restructure or where reliable market prices are no longer available due to an inactive market or market dislocation. In these instances, prices are derived using internal valuation techniques including those as described below in this note with the objective of arriving at a fair value measurement that reflects the price at which an orderly transaction would take place between market participants on the measurement date. The techniques used require a number of assumptions relating to variables such as credit risk and interest rates. Examples of such variables include an average credit spread based on the corporate bond universe and the relevant duration of the asset being valued. Prudential determines the input assumptions based on the best available information at the measurement dates. Securities valued in such manner are classified as level 3 where these significant inputs are not based on observable market data. Of the total level 2 debt securities of $66,637 million at 31 December 2019 (31 December 2018: $63,247 million from continuing operations), $8,915 million are valued internally (31 December 2018: $7,462 million from continuing operations). The majority of such securities are valued using matrix pricing, which is based on assessing the credit quality of the underlying borrower to derive a suitable discount rate relative to government securities of a comparable duration. Under matrix pricing, the debt securities are priced taking the credit spreads on comparable quoted public debt securities and applying these to the equivalent debt instruments factoring in a specified liquidity premium. The majority of the parameters used in this valuation technique are readily observable in the market and, therefore, are not subject to interpretation. (c) Fair value measurements for level 3 fair valued assets and liabilities Reconciliation of movements in level 3 assets and liabilities measured at fair value The following table reconciles the value of level 3 fair valued assets and liabilities at 1 January 2019 to that presented at 31 December 2019. Total investment return recorded in the income statement represents interest and dividend income, realised gains and losses, unrealised gains and losses on the assets classified at fair value through profit and loss and foreign exchange movements on an individual entity’s overseas investments. Total gains and losses recorded in other comprehensive income includes unrealised gains and losses on debt securities held as available-for-sale principally within Jackson and foreign exchange movements arising from the retranslation of the Group’s overseas subsidiaries and branches. 2019 $m Net asset value Equity attributable securities Other Borrowings to unit and holdings investments attributable holders of in collective (including to with consolidated Other Reconciliation of movements in level 3 assets investment Debt derivative Derivative -profits investment financial and liabilities measured at fair value Loans schemes securities assets) liabilities businesses funds liabilities Total Balance at 1 January 6,054 656 1,505 6,714 (539) (2,045) (1,258) (4,335) 6,752 Demerger of UK and Europe operations (2,509) (440) (1,498) (5,513) — 2,045 1,258 451 (6,206) Total gains (losses) in income statement* 1 (11) 6 30 539 — — (28) 537 Total gains (losses) recorded in other comprehensive income — 3 — (6) — — — (11) (14) Purchases — 69 — 269 — — (2) — 336 Sales — (1) (7) (193) — — — — (201) Issues 275 — — — — — — (143) 132 Settlements (234) — — — — — — 306 72 Balance at 31 December 3,587 276 6 1,301 — — (2) (3,760) 1,408 2018 $m Net asset value Equity attributable securities Other Borrowings to unit and holdings investments attributable holders of in collective (including to with consolidated Other Reconciliation of movements in level 3 assets investment Debt derivative Derivative -profits investment financial and liabilities measured at fair value Loans schemes securities assets) liabilities businesses funds liabilities Total Balance at 1 January 6,543 502 885 5,985 (693) (2,553) (559) (4,100) 6,010 Total gains (losses) in income statement* (104) 51 (9) 540 36 (31) 89 7 579 Total gains (losses) recorded in other comprehensive income (162) (28) (85) (331) 34 133 111 36 (292) Purchases 83 167 889 1,605 — — — — 2,744 Sales (238) (47) (175) (1,085) — — — — (1,545) Issues 373 — — — — — (931) (642) (1,200) Settlements (441) — — — — 406 76 364 405 Transfers into level 3 — 11 — — — — — — 11 Transfers out of level 3 — — — — 84 — (44) — 40 Balance at 31 December 6,054 656 1,505 6,714 (539) (2,045) (1,258) (4,335) 6,752 * 2019 $m 2018 $m Equity securities and holdings in collective investment schemes (11) (10) Debt securities — 3 Other investments 34 133 Derivative liabilities — 36 Net asset value attributable to unit holders of consolidated investment funds — (9) Other financial liabilities (4) — Total 19 153 Valuation approach for level 3 fair valued assets and liabilities Investments valued using valuation techniques include financial investments which by their nature do not have an externally quoted price based on regular trades, and financial investments for which markets are no longer active as a result of market conditions, eg market illiquidity. The valuation techniques used include comparison to recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option-adjusted spread models and, if applicable, enterprise valuation. The Group’s valuation policies, procedures and analyses for instruments categorised as level 3 are overseen by Business Unit committees as part of the Group’s wider financial reporting governance processes. The procedures undertaken include approval of valuation methodologies, verification processes, and resolution of significant or complex valuation issues. In undertaking these activities, the Group makes use of the extensive expertise of its asset management functions. In addition, the Group has minimum standards for independent price verification to ensure valuation accuracy is regularly independently verified. Adherence to this policy is monitored across the business units. At 31 December 2019, the Group held $1,408 million of net financial instruments at fair value within level 3. This represents less than one per cent of the total fair valued financial assets net of financial liabilities. Included within these net assets and liabilities are policy loans of $3,587 million at 31 December 2019 measured as the loan outstanding balance, plus accrued investment income, attached to acquired REALIC business and held to back the liabilities for funds withheld under reinsurance arrangements. The funds withheld liability of $3,760 million at 31 December 2019 is also classified within level 3. The fair value of the liabilities is equal to the fair value of the underlying assets held as collateral, which primarily consist of policy loans and debt securities. The assets and liabilities broadly offset and therefore their movements have minimal impact on shareholders’ profit and equity. Excluding the loans and funds withheld liability under REALIC’s reinsurance arrangements as described above, which amounted to a net liability of $173 million, the level 3 fair valued financial assets net of financial liabilities were a net asset of $1,581 million, which are all externally valued and comprise the following: - Other financial investments of $1,301 million consisting primarily of private equity limited partnerships held by Jackson, which are externally valued in accordance with International Private Equity and Venture Capital Association guidelines using management information available for these investments; - Equity securities and holdings in collective investment schemes of $276 million consisting primarily of property and infrastructure funds held by the Asia participating funds, which are externally valued using the net asset value of the invested entities; and - Other sundry individual financial instruments of a net asset of $4 million. Of the net asset of $1,581 million referred to above: - A net asset of $258 million is held by the Group’s Asia participating funds and therefore shareholders’ profit and equity are not impacted by movements in the valuation of these financial instruments; and - A net asset of $1,323 million is held to support non-linked shareholder-backed business. All of these instruments are externally valued and are therefore inherently less subjective than internal valuations. These instruments consist primarily of private equity limited partnerships held by Jackson as described above. If the value of all these Level 3 financial instruments decreased by 10 per cent, the change in valuation would be $132 million, which would reduce shareholders’ equity by this amount before tax. All of this amount would pass through the income statement substantially as part of short-term fluctuations in investment returns outside of adjusted IFRS operating profit based on longer-term investment returns. (d) Transfers into and transfers out of levels The Group’s policy is to recognise transfers into and transfers out of levels as of the end of each half year reporting period except for material transfers which are recognised as of the date of the event or change in circumstances that caused the transfer. Transfers are deemed to have occurred when there is a material change in the observed valuation inputs or a change in the level of trading activities of the securities. During 2019, the transfers between levels within the Group’s portfolio , excluding those held by the discontinued UK and Europe operations, were primarily transfers from level 1 to level 2 of $678 million and transfers from level 2 to level 1 of $1,121 million. These transfers which relate to equity securities and debt securities arose to reflect the change in the observed valuation inputs and in certain cases, the change in the level of trading activities of the securities. There were no transfers, excluding those related to the discontinued UK and Europe operations, into and out of level 3 in the year.

Debt securities

Debt securities	12 Months Ended
	Dec. 31, 2019
Debt securities.
Debt securities	C3.2 Debt securities This note provides analysis of the Group’s debt securities, including asset-backed securities and sovereign debt securities. With the exception of certain debt securities classified as ‘available-for-sale’ under IAS 39 as disclosed in notes C3.2(b) below, which primarily relate to US insurance operations, the Group’s debt securities are carried at fair value through profit or loss. (a) Credit rating Debt securities are analysed below according to external credit ratings issued, with equivalent ratings issued by different ratings agencies grouped together. Standard & Poor’s ratings have been used where available, if this isn’t the case Moody’s and then Fitch have been used as alternatives. For the US, NAIC ratings have also been used where relevant (as shown in ‘Other’ in the tables below). In the table below, AAA is the highest possible rating. Investment grade financial assets are classified within the range of AAA to BBB- ratings. Financial assets which fall outside this range are classified as below BBB-. 31 Dec 2019 $m Other BBB+ to (including AAA AA+ to AA- A+ to A- BBB- Below BBB- NAIC rated) Total Asia: With-profits 5,205 21,911 5,863 5,874 2,382 3,547 44,782 Unit-linked 770 135 674 2,074 522 978 5,153 Non-linked shareholder-backed 1,611 6,050 6,293 4,639 3,749 2,304 24,646 Asset management 14 — 112 — — 3 129 US: Non-linked shareholder-backed 1,154 10,300 15,229 18,489 1,995 11,361 58,528 Other operations — 1,211 — — 55 66 1,332 Total debt securities 8,754 39,607 28,171 31,076 8,703 18,259 134,570 31 Dec 2018 $m Other BBB+ to (including AAA AA+ to AA- A+ to A- BBB- Below BBB- NAIC rated) Total Asia: With-profits 3,659 15,766 5,275 4,788 2,225 2,934 34,647 Unit-linked 1,040 127 627 1,822 542 912 5,070 Non-linked shareholder-backed 1,317 4,524 4,734 3,738 2,805 1,455 18,573 Asset management 14 — 76 — — — 90 US: Non-linked shareholder-backed 864 9,403 13,100 18,667 1,820 9,120 52,974 Other operations 788 1,387 193 52 62 24 2,506 Total continuing operations 7,682 31,207 24,005 29,067 7,454 14,445 113,860 Total discontinued UK and Europe operations 13,931 23,185 23,746 25,126 4,387 19,098 109,473 Total debt securities 21,613 54,392 47,751 54,193 11,841 33,543 223,333 The credit ratings, information or data contained in this report which are attributed and specifically provided by Standard &Poor’s, Moody’s and Fitch Solutions and their respective affiliates and suppliers (‘Content Providers’) is referred to here as the ‘Content’. Reproduction of any Content in any form is prohibited except with the prior written permission of the relevant party. The Content Providers do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. The Content Providers expressly disclaim liability for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold any such investment or security, nor does it address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings for securities classified as ‘Other ’ Securities for continuing operations with credit ratings classified as ‘Other’ can be further analysed as follows for Asia and US non-linked shareholder-backed. Asia 31 Dec 2019 $m 31 Dec 2018 $m Government bonds* 323 46 Corporate bonds rated by local external rating agencies AAA 184 239 AA+ to AA- 958 702 A+ to A- 345 241 BBB+ to BBB- 91 39 Below BBB- and unrated 32 25 1,610 1,246 Other (asset-backed securities)† 371 163 Total Asia 2,304 1,455 * † 31 Dec 2019 $m 31 Dec 2018 $m Mortgage -backed Other US securities securities Total Total Implicit ratings based on NAIC valuations * NAIC 1 3,367 4,430 7,797 6,376 NAIC 2 1 3,470 3,471 2,697 NAIC 3-6 2 91 93 47 Total US† 3,370 7,991 11,361 9,120 * The Securities Valuation Office of the NAIC classifies debt securities into six quality categories ranging from Class 1 (the highest) to Class 6 (the lowest). Performing securities are designated as Classes 1 to 5 and securities in or near default are designated Class 6. † Mortgage-backed securities totalling $3,180 million at 31 December 2019 have credit ratings issued by Standard & Poor’s of BBB- or above and hence are designated as investment grade. Other securities totalling $7,900 million at 31 December 2019 with NAIC ratings 1 or 2 are also designated as investment grade. (b) Additional analysis of US insurance operations debt securities 31 Dec 2019 $m 31 Dec 2018 $m Corporate and government security and commercial loans: Government 7,890 6,960 Publicly traded and SEC Rule 144A securities* 34,781 33,363 Non-SEC Rule 144A securities 9,842 8,061 Asset-backed securities (see note (c)) 6,015 4,590 Total US debt securities † 58,528 52,974 * A 1990 SEC rule that facilitates the resale of privately placed securities under Rule 144A that are without SEC registration to qualified institutional investors. The rule was designed to develop a more liquid and efficient institutional resale market for unregistered securities. † 31 Dec 2019 $m 31 Dec 2018 $m Available-for-sale 57,091 52,025 Fair value through profit and loss 1,437 949 58,528 52,974 Movements in unrealised gains and losses on Jackson available-for-sale securities The movement in the statement of financial position value for debt securities classified as available-for-sale from a net unrealised loss of $527 million to a net unrealised gain of $3,496 million as analysed in the table below. Changes in unrealised appreciation 31 Dec 2019 reflected in other comprehensive income 31 Dec 2018 $m $m $m Assets fair valued at below book value Book value* 3,121 32,260 Unrealised gain (loss) (27) 1,151 (1,178) Fair value (as included in statement of financial position) 3,094 31,082 Assets fair valued at or above book value Book value* 50,474 20,292 Unrealised gain (loss) 3,523 2,872 651 Fair value (as included in statement of financial position) 53,997 20,943 Total Book value* 53,595 52,552 Net unrealised gain (loss) 3,496 4,023 (527) Fair value (as included in the footnote above in the overview table and the statement of financial position) 57,091 52,025 * Book value represents cost or amortised cost of the debt securities. Jackson debt securities classified as available-for-sale in an unrealised loss position (i) Fair value of securities as a percentage of book value The following table shows the fair value of the debt securities in a gross unrealised loss position for various percentages of book value: 31 Dec 2019 $m 31 Dec 2018 $m Fair Unrealised Fair Unrealised value loss value loss Between 90% and 100% 3,083 (25) 30,136 (1,030) Between 80% and 90% 11 (2) 900 (132) Below 80% — — 46 (16) Total 3,094 (27) 31,082 (1,178) (ii) Unrealised losses by maturity of security 31 Dec 2019 $m 31 Dec 2018 $m 1 year to 5 years (1) (92) 5 years to 10 years (12) (555) More than 10 years (7) (474) Mortgage-backed and other debt securities (7) (57) Total (27) (1,178) (iii) Age analysis of unrealised losses for the periods indicated The following table shows the age analysis of all the unrealised losses in the portfolio by reference to the length of time the securities have been in an unrealised loss position: 31 Dec 2019 $m 31 Dec 2018 $m Non- Non- investment Investment investment Investment Age analysis grade grade* Total grade grade* Total Less than 6 months (1) (20) (21) (26) (179) (205) 6 months to 1 year (1) (1) (2) (28) (560) (588) 1 year to 2 years — (1) (1) (13) (181) (194) 2 years to 3 years — (1) (1) — (157) (157) More than 3 years — (2) (2) (2) (32) (34) Total (2) (25) (27) (69) (1,109) (1,178) * For Standard and Poor’s, Moody’s and Fitch rated debt securities, those with ratings range from AAA to BBB- are designated as investment grade. For NAIC rated debt securities, those with ratings 1 or 2 are designated as investment grade. Further, the following table shows the age analysis of the securities whose fair values were below 80 per cent of the book value: 31 Dec 2019 $m 31 Dec 2018 $m Fair Unrealised Fair Unrealised Age analysis value loss value loss Less than 3 months — — 41 (13) 3 months to 6 months — — 2 (1) More than 6 months — — 3 (2) Total below 80% — — 46 (16) (c) Asset-backed securities The Group’s holdings in asset-backed securities (ABS), which comprise residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), collateralised debt obligations (CDO) funds and other asset-backed securities, as at 31 December 2019 are as follows: 31 Dec 2019 $m 31 Dec 2018 $m Asia operations: note (i) Shareholder-backed business 189 154 With-profits business 369 299 US operations note (ii) 6,015 4,590 Other operations — 566 Total for continuing operations 6,573 5,609 Total for discontinued UK and Europe operations — 8,503 Group total 6,573 14,112 Notes (i) Of the Asia operations’ exposure to asset-backed securities for the shareholder-backed business and with-profits business at 31 December 2019, 100 per cent (31 December 2018: 99.8 per cent) are investment grade. (ii) US operations’ exposure to asset-backed securities comprises: 31 Dec 2019 $m 31 Dec 2018 $m RMBS Sub-prime (31 Dec 2019: 2% AAA, 3% AA, 3% A) 93 122 Alt-A (31 Dec 2019: 51% A) 116 134 Prime including agency (2019: 23% AAA, 61% AA, 10% A) 862 562 CMBS (31 Dec 2019: 76% AAA, 16% AA, 4% A) 3,080 2,477 CDO funds (31 Dec 2019: 46% AAA, 38% AA, 16% A), including $nil exposure to sub-prime 696 17 Other ABS (31 Dec 2019: 16% AAA, 11% AA, 54% A), including $84 million exposure to sub-prime 1,168 1,278 Total (31 Dec 2019: 50% AAA, 24% AA, 17% A) 6,015 4,590 (d) The Group exposures held by the shareholder-backed business and with-profits funds in sovereign debts and bank debt securities are analysed below. The tables exclude assets held to cover linked liabilities and those of the consolidated unit trusts and similar funds. In addition, the tables below exclude the proportionate share of sovereign debt holdings of the Group’s joint venture operations. Exposure to sovereign debts 31 Dec 2019 $m 31 Dec 2018 $m Shareholder- Shareholder- backed With-profits backed With-profits business * funds business funds Eurozone — — 481 560 United Kingdom 615 — 4,109 3,837 United States 9,526 20,338 7,192 15,102 Indonesia 420 — 359 — Singapore 230 3,514 209 2,112 Thailand 1,416 — 1,173 — Vietnam 2,900 — 2,383 — Other Asia 2,722 562 2,266 1,103 Other 143 32 159 282 Total 17,972 24,446 18,331 22,996 Analysed as: Total from continuing operations 14,848 16,740 Total from discontinued UK and Europe operations 3,483 6,256 18,331 22,996 * Includes $1.4 billion of sovereign debt held by the Group’s treasury function, Africa operations and asset management operations. Exposure to bank debt securities 31 Dec 2019 $m 31 Dec 2018 $m Senior debt Subordinated debt Shareholder-backed business Total Tier 1 Tier 2 Total Total Total Eurozone 310 — 27 27 337 608 United Kingdom 568 17 138 155 723 1,714 United States 3,084 7 43 50 3,134 3,397 Asia 439 165 389 554 993 754 Other 516 — 131 131 647 821 Total 4,917 189 728 917 5,834 7,294 Analysed as: Total from continuing operations 5,910 Total from discontinued UK and Europe operations 1,384 7,294 With-profits funds Eurozone 29 — 102 102 131 1,243 United Kingdom 41 3 111 114 155 2,794 United States 30 1 3 4 34 3,477 Asia 307 479 344 823 1,130 1,293 Other 73 — 211 211 284 2,305 Total 480 483 771 1,254 1,734 11,112 Analysed as: Total from continuing operations 1,639 Total from discontinued UK and Europe operations 9,473 11,112 (e) Impairment of US available-for-sale debt securities and other financial assets In accordance with the Group’s accounting policy set out in note A3.1, impairment reviews were performed for available-for-sale securities and loans and receivables. During the year ended 31 December 2019, a charge for recoveries net of impairment of $17 million (2018: credit of $19 million) was recognised for available-for-sale securities loans and receivables held by Jackson. Jackson, with the support of internal credit analysts, regularly monitors and reports on the credit quality of its holdings of debt securities. In addition, there is a periodic review of its investments on a case-by-case basis to determine whether any decline in fair value represents an impairment. Investments in structured securities are subject to a review of their future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments (both interest and principal). Impairment charges are recorded on structured securities when the Company forecasts a contractual payment shortfall. Situations where such a shortfall would not lead to a recognition of a loss are rare. The impairment loss reflects the difference between the fair value and book value. In 2019, the Group realised gross losses on sales of available-for-sale securities of $70 million (2018: $55 million) with 51 per cent (2018: 49 per cent) of these losses related to the disposal of fixed maturity securities of the top 10 individual issuers, which were disposed of to limit future credit loss exposure. Of the $70 million (2018: $55 million), $28 million (2018: $6 million) relates to losses on sales of impaired and deteriorating securities. The effect of changes in the key assumptions that underpin the assessment of whether impairment has taken place depends on the factors described in note A3.1. A key indicator of whether such impairment may arise in future, and the potential amounts at risk, is the profile of gross unrealised losses for fixed maturity securities accounted for on an available-for-sale basis by reference to the time periods by which the securities have been held continuously in an unrealised loss position and by reference to the maturity date of the securities concerned. For 2019, the amount of gross unrealised losses for fixed maturity securities classified as available-for-sale under IFRS in an unrealised loss position was $27 million (2018: $1,178 million). Note B1.2 provides further details on the impairment charges and unrealised losses of Jackson’s available-for-sale securities.

Loans portfolio

Loans portfolio	12 Months Ended
	Dec. 31, 2019
Loans portfolio
Loans portfolio	C3.3 Loans portfolio (a) Overview of loans portfolio Loans are principally accounted for at amortised cost, net of impairment except for certain policy loans of the US insurance operations that are held to back liabilities for funds withheld under reinsurance arrangements and are also accounted on a fair value basis. The amounts included in the statement of financial position are analysed as follows: 31 Dec 2019 $m 31 Dec 2018 $m Mortgage Policy Other Mortgage Policy Other loans loans loans loans note (i) note (ii) loans Total note (i) note (ii) loans Total Asia With-profits — 1,089 374 1,463 — 926 83 1,009 Non-linked shareholder-backed 165 316 19 500 199 288 259 746 US Non-linked shareholder-backed 9,904 4,707 — 14,611 9,406 4,688 — 14,094 Other operations — 9 — 9 — — — — Total continuing operations 10,069 6,121 393 16,583 9,605 5,902 342 15,849 Total discontinued UK and Europe operations 5,241 4 1,844 7,089 Total Group 14,846 5,906 2,186 22,938 Notes (i) All mortgage loans are secured by properties. (ii) In the US, $3,587 million of policy loans held at 31 December 2019 (31 December 2018: $3,544 million) are backing liabilities for funds withheld under reinsurance arrangements and are accounted for at fair value through profit or loss. All other policy loans are accounted for at amortised cost, less any impairment. (b) Additional information on US mortgage loans In the US, mortgage loans are all commercial mortgage loans that are secured by the following property types: industrial, multi-family residential, suburban office, retail or hotel. The average loan size is $19.3 million (31 December 2018: $17.8 million). The portfolio has a current estimated average loan to value of 54 per cent (31 December 2018: 53 per cent). Jackson had no mortgage loans where the contractual terms of the agreements had been restructured for both years shown.

Financial instruments - additio

Financial instruments - additional information	12 Months Ended
	Dec. 31, 2019
Financial instruments - additional information
Financial instruments - additional information	C3.4 Financial instruments – additional information (a) Financial risk Liquidity analysis Contractual maturities of financial liabilities on an undiscounted cash flow basis The following table sets out the contractual maturities for applicable classes of financial liabilities, excluding derivative liabilities and investment contracts that are separately presented. The financial liabilities are included in the column relating to the contractual maturities of the undiscounted cash flows (including contractual interest payments) due to be paid assuming conditions are consistent with those of year end. 31 Dec 2019 $m Total After 1 After 5 After 10 After 15 Total carrying 1 year year to years to years to years to Over No stated undiscounted value or less 5 years 10 years 15 years 20 years 20 years maturity cash flows Financial liabilities Core structural borrowings of shareholder-financed businesses C6.1 5,594 105 1,146 888 648 — — 3,725 6,512 Lease liabilities under IFRS 16 630 145 388 113 37 18 1 — 702 Other operational borrowings 2,015 941 188 232 1,132 2 — — 2,495 Obligations under funding, securities lending and sale and repurchase agreements 8,901 2,067 5,476 1,902 278 — — — 9,723 Accruals, deferred income and other liabilities 14,488 9,172 636 1 — 248 — 4,431 14,488 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 5,998 5,998 — — — — — — 5,998 Total 37,626 18,428 7,834 3,136 2,095 268 1 8,156 39,918 31 Dec 2018 $m Total After 1 After 5 After 10 After 15 Total carrying 1 year year to years to years to years to Over No stated undiscounted value or less 5 years 10 years 15 years 20 years 20 years maturity cash flows Financial liabilities Core structural borrowings of shareholder-financed businesses C6.1 9,761 380 2,240 1,944 2,347 1,363 8,371 3,725 20,370 Operational borrowings 6,289 1,961 1,703 1,002 349 181 2,657 — 7,853 Obligations under funding, securities lending and sale and repurchase agreements 8,901 2,450 4,908 2,131 289 — — — 9,778 Accruals, deferred income and other liabilities 19,421 13,811 599 90 115 138 448 4,503 19,704 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 14,839 14,839 — — — — — — 14,839 Total 59,211 33,441 9,450 5,167 3,100 1,682 11,476 8,228 72,544 Analysed as: Continuing operations 32,839 12,284 7,479 4,167 2,636 1,363 8,412 7,983 44,324 Discontinued UK and Europe operations 26,372 21,157 1,971 1,000 464 319 3,064 245 28,220 59,211 33,441 9,450 5,167 3,100 1,682 11,476 8,228 72,544 Maturity analysis of derivatives The following table shows the gross and net derivative positions together with a maturity profile of the net derivative position: Carrying value of net derivatives $m Maturity profile of net derivative position $m Net After 1 After 3 Total Derivative Derivative derivative 1 year year to years to After 5 undiscounted assets liabilities position or less 3 years 5 years years cash flows 2019 1,745 (392) 1,353 1,353 — — — 1,353 2018 4,450 (4,465) (15) 372 (10) (5) 38 395 The majority of derivative assets and liabilities have been included at fair value within the one year or less column, representing the basis on which they are managed (ie to manage principally asset or liability value exposures). The Group has no cash flow hedges and, in general, contractual maturities are not considered essential for an understanding of the timing of the cash flows for these instruments. The only exception is that in 2018 certain identified interest rate swaps were expected to be held until maturity for the purposes of matching cash flows on separately held assets and liabilities. These swaps were closed as part of the preparation for the demerger of UK and Europe operations. Maturity analysis of investment contracts The table below shows the maturity profile for investment contracts based on undiscounted cash flow projections of expected benefit payments. Total carrying value of investment contracts at 31 December 2019 was $5,535 million as shown in the statement of financial position (31 December 2018: $110,339 million, of which $5,142 million was from continuing operations). Maturity profile for investment contracts from continuing operations $m Total After 1 After 5 After 10 After 15 undis- 1 year year to years to years to years to Over counted or less 5 years 10 years 15 years 20 years 20 years cash flows 31 Dec 2019 1,557 5,197 3,866 3,049 3,196 5,890 22,755 31 Dec 2018 1,409 4,779 3,352 2,487 2,830 4,257 19,114 Most investment contracts have options to surrender early, often subject to surrender or other penalties. Therefore, most contracts can be said to have a contractual maturity of less than one year, but the additional charges and term of the contracts mean these are unlikely to be exercised in practice and the more useful information is to present information on expected payment. The vast majority of the Group’s financial assets are held to back the Group’s policyholder liabilities. Although asset/liability matching is an important component of managing policyholder liabilities (both those classified as insurance and those classified as investments), this profile is mainly relevant for managing market risk rather than liquidity risk. Within each business unit, this asset/liability matching is performed on a portfolio-by-portfolio basis. In terms of liquidity risk, a large proportion of the policyholder liabilities contain discretionary surrender values or surrender charges, meaning that many of the Group’s liabilities are expected to be held for the long term. Much of the Group’s investment portfolios are in marketable securities, which can therefore be converted quickly to liquid assets. For the reasons provided above, an analysis of the Group’s assets by contractual maturity is not considered meaningful to evaluate the nature and extent of the Group’s liquidity risk. Credit risk The Group’s maximum exposure to credit risk of financial instruments before any allowance for collateral or allocation of losses to policyholders is represented by the carrying value of financial instruments on the balance sheet that have exposures to credit risk comprising cash and cash equivalents, deposits, debt securities, loans and derivative assets, accrued investment income and other debtors, the carrying value of which are disclosed at the start of this note and note C3.4(b) below for derivative assets. The collateral in place in relation to derivatives is described in note C3.4(c) below. Note C3.3 describes the security for the loans held by the Group. The Group’s exposure to credit risk is further discussed in note C7 below. Of the total loans and receivables held, $7 million (31 December 2018: $18 million from continuing operations) are past their due date but are not impaired. Of the total past due but not impaired, $1 million are less than one year past their due date (31 December 2018: $11 million from continuing operations). The Group expects full recovery of these loans and receivables. Financial assets that would have been past due or impaired had the terms not been renegotiated amounted to nil (31 December 2018: $29 million from continuing operations). In addition, during 2019 and 2018, the Group did not take possession of any other collateral held as security. Further details of collateral in place in relation to derivatives, securities lending, repurchase agreements and other transactions are provided in note C3.4(c) below. Foreign exchange risk As at 31 December 2019, the Group held 8 per cent of its financial assets and 25 per cent of its financial liabilities in currencies, mainly US Dollar, other than the functional currency of the relevant business units or the currency to which the functional currency is pegged (eg financial assets and liabilities of US dollar denominated business in Hong Kong). The exchange risks inherent in these exposures are mitigated through the use of derivatives, mainly forward currency contracts (note C3.4(b) below). The amount of exchange loss recognised in the income statement in 2019, except for those arising on financial instruments measured at fair value through profit or loss, is $72 million (2018: $88 million gain; 2017: $17 million gain from continuing operations). (b) Derivatives and hedging Accounting principles for derivatives and embedded derivatives Derivative financial instruments are used to reduce or manage investment, interest rate and currency exposures, to facilitate efficient portfolio management and for investment purposes. The Group does not regularly seek to apply fair value or cash flow hedging treatment under IAS 39. The Group has no fair value and cash flows hedges under IAS 39 at 31 December 2019 and 2018. All derivatives that are not designated as hedging instruments are carried at fair value, with movements in fair value being recorded in the income statement. Embedded derivatives are embedded within other non-derivative host financial instruments and insurance contracts to create hybrid instruments. Embedded derivatives meeting the definition of an insurance contract are accounted for under IFRS 4. Where economic characteristics and risks of the embedded derivatives are not closely related to the economic characteristics and risks of the host instrument, and where the hybrid instrument is not measured at fair value with the changes in fair value recognised in the income statement, the embedded derivative is bifurcated and carried at fair value as a derivative measured in accordance with IAS 39. In addition, the Group applies the option under IFRS 4 to not separate and fair value surrender options embedded in host contracts and with-profits investment contracts whose strike price is either a fixed amount or a fixed amount plus interest. Derivatives held and their purpose The Group enters into a variety of exchange traded and over-the-counter derivative financial instruments, including futures, options, forward currency contracts and swaps such as interest rate swaps, cross-currency swaps, swaptions and credit default swaps. All over-the-counter derivative transactions, with the exception of transactions in some Asia operations, are conducted under standardised ISDA (International Swaps and Derivatives Association Inc) master agreements and the Group has collateral agreements between the individual Group entities and relevant counterparties in place under each of these market master agreements. The majority of the Group's derivatives are held by Jackson. Derivatives are used for efficient portfolio management to obtain cost effective and management of exposure to various markets in accordance with the Group’s investment strategies and to manage exposure to interest rate, currency, credit and other business risks. The Group also uses interest rate derivatives to reduce exposure to interest rate volatility. In particular: - US operations hold large amounts of interest-rate sensitive investments that contain credit risks on which a certain level of defaults is expected. These businesses have purchased some swaptions to manage the default risk on certain underlying assets and hence reduce the amount of regulatory capital held to support the assets; and - Some products, especially in the US, have guarantee features linked to equity indices. A mismatch between guaranteed product liabilities and the performance of the underlying assets exposes the Group to equity index risk. In order to mitigate this risk, the relevant business units purchase swaptions, equity options and futures to better match asset performance with liabilities under equity-indexed products. Additional information on Jackson derivative programme Jackson enters into financial derivative transactions, including those noted below, to reduce and manage business risks. These transactions manage the risk of a change in the value, yield, price, cash flows or quantity of, or a degree of exposure, with respect to assets, liabilities or future cash flows, which Jackson has acquired or incurred. Jackson uses free-standing derivative instruments for hedging purposes. Additionally, certain liabilities, primarily trust instruments supported by funding agreements, fixed index annuities, certain variable annuity guaranteed benefit features and reinsured Guaranteed Minimum Income Benefit variable annuity features are similar to derivatives. Jackson does not account for such items as either fair value or cash flow hedges as might be permitted if the specific hedge documentation requirements of IAS 39 were followed. Financial derivatives are carried at fair value, including derivatives embedded in certain host liabilities where these are required to be valued separately. The principal types of derivatives used by Jackson and their purpose are as follows: Derivative Purpose Interest rate swaps These generally involve the exchange of fixed and floating payments over the period for which Jackson holds the instrument without an exchange of the underlying principal amount. These agreements are used to hedge Jackson’s exposure to movements in interest rates. Swaption contracts These contracts provide the purchaser with the right, but not the obligation, to require the writer to pay the present value of a long-duration interest rate swap at future exercise dates. Jackson both purchases and writes swaptions in order to hedge against significant movements in interest rates. Treasury futures contracts These derivatives are used to hedge Jackson’s exposure to movements in interest rates. Equity index futures contracts and equity index options These derivatives (including various call and put options and options contingent on interest rates and currency exchange rates) are used to hedge Jackson’s obligations associated with its issuance of certain VA guarantees. Some of these annuities and guarantees contain embedded options that are fair valued for financial reporting purposes. Cross-currency swaps Cross-currency swaps, which embody spot and forward currency swaps and additionally, in some cases, interest rate swaps and equity index swaps, are entered into for the purpose of hedging Jackson’s foreign currency denominated funding agreements supporting trust instrument obligations. Credit default swaps These swaps represent agreements under which the buyer has purchased default protection on certain underlying corporate bonds held in its portfolio. These contracts allow Jackson to sell the protected bonds at par value to the counterparty if a default event occurs in exchange for periodic payments made by Jackson for the life of the agreement. Hedging The Group has formally assessed and documented the effectiveness of the following net investment hedges under IAS 39. During 2019, up to 31 December 2019, the Group had designated perpetual subordinated capital securities totalling $3.7 billion (31 December 2018: $3.7 billion) as a net investment hedge to hedge the currency risks related to the net investment in Jackson. Accordingly, the foreign exchange loss of $150 million (2018: loss of $266 million) on translation of Prudential plc’s borrowings to pounds sterling (the functional currency of Prudential plc until 31 December 2019) is recognised in the translation reserve in shareholders’ equity rather than the income statement. This net investment hedge was 100 per cent effective. The Group has no cash flow hedges or fair value hedges in place. (c) Derecognition, collateral and offsetting Derecognition of financial assets and liabilities The Group’s policy is to derecognise financial assets when it is deemed that substantially all the risks and rewards of ownership have been transferred. The Group derecognises financial liabilities only when the obligation specified in the contract is discharged, cancelled or has expired. Reverse repurchase agreements The Group is party to various reverse repurchase agreements under which securities are purchased from third parties with an obligation to resell the securities. The securities are not recognised as investments in the statement of financial position but the right to receive the cash paid is recognised as deposits. At 31 December 2019, the Group had entered into reverse repurchase transactions under which it purchased securities and had taken on the obligation to resell the securities. The fair value of the collateral held in respect of these transactions, which is represented by the purchased securities, was $1,011 million (31 December 2018: $3,039 million from continuing operations). Securities lending and repurchase agreements The Group is also party to various securities lending agreements (including repurchase agreements) under which securities are loaned to third parties on a short-term basis. The loaned securities are not derecognised; rather, they continue to be recognised within the appropriate investment classification. To the extent cash collateral is received it is recognised on the statement of financial position. Other collateral is not recognised. At 31 December 2019, the Group has $90 million (31 December 2018: $107 million from continuing operations) of lent securities and assets subject to repurchase agreements. The cash and securities collateral held or pledged under such agreements were $95 million (31 December 2018: $112 million from continuing operations). Collateral and pledges under derivative transactions At 31 December 2019, the Group had pledged $1,301 million (31 December 2018: $2,896 million from continuing operations) for liabilities and held collateral of $1,883 million (31 December 2018: $810 million from continuing operations) in respect of over-the-counter derivative transactions. These transactions are conducted under terms that are usual and customary to collateralised transactions including, where relevant, standard securities lending and repurchase agreements. The Group has entered into collateral arrangements in relation to over-the-counter derivative transactions, which permit sale or re-pledging of underlying collateral. During 2019, the Group has not sold any collateral held (2018: nil). As of 31 December 2019, the value of collateral re-pledged by the Group amounted to $nil (31 December 2018: $5 million from continuing operations). All over-the-counter derivative transactions, with the exception of transactions in some Asia operations, are conducted under standardised International Swaps and Derivatives Association (ISDA) master agreements. The collateral management for these transactions is conducted under the usual and customary terms and conditions set out in the Credit Support Annex to the ISDA master agreement. Other collateral At 31 December 2019, the Group had pledged collateral of $3,299 million (31 December 2018: $3,053 million from continuing operations) in respect of other transactions. This principally arises from Jackson’s membership of the Federal Home Loan Bank of Indianapolis primarily for the purpose of participating in the bank’s collateralised loan advance programme with short-term and long-term funding facilities. Offsetting assets and liabilities The Group’s derivative instruments, repurchase agreements and securities lending agreements are subject to master netting arrangements and collateral arrangements. A master netting arrangement with a counterparty creates a right of offset for amounts due to and due from that same counterparty that is enforceable in the event of a default or bankruptcy. The Group recognises amounts subject to master netting arrangements on a gross basis within the consolidated balance sheets. The following tables present the gross and net information about the Group’s financial instruments subject to master netting arrangements: 31 Dec 2019 $m Gross amount Related amounts not offset included in the in the consolidated statement of consolidated financial position statement of Financial Securities financial position instruments Cash collateral Net amount note (i) note (ii) collateral note (iii) note (iv) Financial assets: Derivative assets 1,708 (115) (901) (618) 74 Reverse repurchase agreements 953 — — (953) — Total financial assets 2,661 (115) (901) (1,571) 74 Financial liabilities: Derivative liabilities (216) 115 86 — (15) Securities lending and repurchase agreements (48) — 48 — — Total financial liabilities (264) 115 134 — (15) 31 Dec 2018 $m Gross amount Related amounts not offset included in the in the consolidated statement of consolidated financial position statement of Financial Securities financial position instruments Cash collateral Net amount note (i) note (ii) collateral note (iii) note (iv) Financial assets: Derivative assets 4,112 (1,606) (2,149) (211) 146 Reverse repurchase agreements 14,771 — — (14,782) (11) Total financial assets 18,883 (1,606) (2,149) (14,993) 135 Financial liabilities: Derivative liabilities (4,062) 1,606 905 1,346 (205) Securities lending and repurchase agreements (1,602) — 43 1,535 (24) Total financial liabilities (5,664) 1,606 948 2,881 (229) Analysed as: Financial assets from continuing operations 3,709 (308) (435) (2,947) 19 Financial assets from discontinued UK and 15,174 (1,298) (1,714) (12,046) 116 Total financial assets 18,883 (1,606) (2,149) (14,993) 135 Financial liabilities from continuing operations (1,637) 308 86 1,095 (148) Financial liabilities from discontinued UK and (4,027) 1,298 862 1,786 (81) Total financial liabilities (5,664) 1,606 948 2,881 (229) Notes (i) The Group has not offset any of the amounts included in the consolidated statement of financial position. (ii) Represents the amount that could be offset under master netting or similar arrangements where the Group does not satisfy the full criteria to offset on the consolidated statement of financial position. (iii) Excludes initial margin amounts for exchange-traded derivatives. (iv) In the tables above, the amounts of assets or liabilities included in the consolidated statement of financial position would be offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables.

Policyholder liabilities and un

Policyholder liabilities and unallocated surplus	12 Months Ended
	Dec. 31, 2019
Policyholder liabilities and unallocated surplus
Policyholder liabilities and unallocated surplus	C4 Policyholder liabilities and unallocated surplus The note provides information of policyholder liabilities and unallocated surplus of with-profits funds held on the Group’s statement of financial position: C4.1 Group overview (i) Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds notes (a), (b) Discontinued UK and Asia US Europe $m $m operations Total note C4.2 note C4.3 $m $m Balance at 1 January 2018 99,890 244,483 244,946 589,319 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position note (c) (excludes $43 million classified as unallocated to a segment) 85,089 244,483 226,715 556,287 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,700 — 18,231 22,931 ­ Group’s share of policyholder liabilities of joint ventures and associate note(d) 10,101 — — 10,101 Reclassification of reinsured UK annuity contracts as held for sale — — (14,689) (14,689) Net flows: Premiums 17,607 18,613 18,707 54,927 Surrenders (3,729) (16,211) (9,053) (28,993) Maturities/deaths (2,641) (2,687) (9,074) (14,402) Net flows 11,237 (285) 580 11,532 Addition for closed block of group payout annuities in the US — 5,532 — 5,532 Shareholders’ transfers post-tax (87) — (346) (433) Investment-related items and other movements (3,718) (13,350) (7,318) (24,386) Foreign exchange translation differences (1,914) — (13,171) (15,085) Balance at 31 December 2018/1 January 2019 105,408 236,380 210,002 551,790 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position note (c) (excludes $50 million classified as unallocated to a segment) 91,836 236,380 193,020 521,236 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 3,198 — 16,982 20,180 ­ Group’s share of policyholder liabilities of joint ventures and associate note (d) 10,374 — — 10,374 Demerger of UK and Europe operations — — (210,002) (210,002) Net flows: Premiums 20,094 20,976 — 41,070 Surrenders (4,156) (17,342) — (21,498) Maturities/deaths (2,800) (3,387) — (6,187) Net flows 13,138 247 — 13,385 Shareholders' transfers post-tax (99) – — (99) Investment-related items and other movements 12,824 32,922 — 45,746 Foreign exchange translation differences 1,299 – — 1,299 Balance at 31 December 2019 132,570 269,549 — 402,119 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position (excludes $186 million classified as unallocated to a segment) 115,943 269,549 — 385,492 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,750 — — 4,750 ­ Group's share of policyholder liabilities of joint ventures and associate note (d) 11,877 — — 11,877 Average policyholder liability balances note (e) 2019 115,015 252,965 n/a 367,980 2018 98,698 239,049 213,492 551,239 Notes (a) The items above represent the amount attributable to changes in policyholder liabilities and unallocated surplus of with-profits funds as a result of each of the components listed. The policyholder liabilities shown include investment contracts without discretionary participation features (as defined in IFRS 4) and their full movement in the year but exclude liabilities that have not been allocated to a reporting segment. The items above are shown gross of external reinsurance. (a) The analysis includes the impact of premiums, claims and investment movements on policyholders’ liabilities. The impact does not represent premiums, claims and investment movements as reported in the income statement. For example, premiums shown above exclude any deductions for fees/charges; claims (surrenders, maturities and deaths) shown above represent the policyholder liabilities provision released rather than the claims amount paid to the policyholder. (b) The policyholder liabilities of the Asia insurance operations at 31 December 2018 of $91,836 million were after deducting the intra-group reinsurance liabilities ceded by the discontinued UK and Europe operations of $1,412 million to the Hong Kong with-profits business, which were recaptured in October 2019 upon demerger. Including this amount, total Asia policyholder liabilities at 31 December 2018 were $93,248 million. (c) The Group’s investment in joint ventures and associate are accounted for on an equity method basis in the Group’s statement of financial position. The Group’s share of the policyholder liabilities as shown above relates to life businesses of the China JV, India and the Takaful business in Malaysia. (d) Average policyholder liabilities have been based on opening and closing balances, adjusted for acquisitions, disposals and other corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds. (ii) Analysis of movements in policyholder liabilities for shareholder-backed business Discontinued UK and Europe Asia US operations Total $m $m $m $m Balance at 1 January 2018 50,598 244,483 76,254 371,335 Reclassification of reinsured UK annuity contracts as held for sale — — (14,689) (14,689) Net flows: Premiums 9,015 18,613 1,984 29,612 Surrenders (3,278) (16,211) (2,692) (22,181) Maturities/deaths (1,396) (2,687) (2,996) (7,079) Net flows note 4,341 (285) (3,704) 352 Addition for closed block of group payout annuities in the US — 5,532 — 5,532 Investment-related items and other movements (1,608) (13,350) (2,637) (17,595) Foreign exchange translation differences (1,626) — (3,313) (4,939) Balance at 31 December 2018/1 January 2019 51,705 236,380 51,911 339,996 Comprising: - Policyholder liabilities on the consolidated statement of financial position (excludes $50 million classified as unallocated to a segment) 41,331 236,380 51,911 329,622 - Group’s share of policyholder liabilities relating to joint ventures and associate 10,374 — — 10,374 Demerger of UK and Europe operations — — (51,911) (51,911) Net flows: Premiums 10,372 20,976 — 31,348 Surrenders (3,610) (17,342) — (20,952) Maturities/deaths (1,168) (3,387) — (4,555) Net flows note 5,594 247 — 5,841 Investment-related items and other movements 4,186 32,922 — 37,108 Foreign exchange translation differences 777 — — 777 Balance at 31 December 2019 62,262 269,549 — 331,811 Comprising: - Policyholder liabilities on the consolidated statement of financial position (excludes $186 million classified as unallocated to a segment) 50,385 269,549 — 319,934 - Group's share of policyholder liabilities relating to joint ventures and associate 11,877 — — 11,877 Note Including net flows of the Group’s insurance joint ventures and associate. (iii) Movement in insurance contract liabilities and unallocated surplus of with-profits funds Further analysis of the movement in the year of the Group’s gross contract liabilities, reinsurer’s share of insurance contract liabilities and unallocated surplus of with-profits funds (excluding those held by joint ventures and associate) is provided below: Gross Reinsurer's Unallocated insurance share of surplus of contract insurance contract Investment with-profits liabilities liabilities contracts funds $m $m $m $m note (a) note (b) Balance at 1 January 2018 (443,952) 13,086 (112,378) (22,931) Income and expense included in the income statement note (c) - continuing operations 512 548 (104) 1,494 - discontinued operations 11,497 14,727 (5,249) 227 Other movements note (d) 13,375 (13,375) 859 (51) Foreign exchange translation differences 7,621 (793) 6,533 1,081 Balance at 31 December 2018/1 January 2019 (410,947) 14,193 (110,339) (20,180) Demerger of UK and Europe operations note (e) 87,824 (2,169) 105,196 16,982 Income and expense included in the income statement for continuing operations note (c) (55,579) 1,795 (311) (1,415) Other movements note (d) — — (63) (112) Foreign exchange translation differences (1,441) 37 (18) (25) Balance at 31 December 2019 (380,143) 13,856 (5,535) (4,750) Notes (a) Includes reinsurers’ share of claims outstanding of $1,094 million (31 December 2018: $1,280 million). (b) This comprises investment contracts with discretionary participation features of $633 million at 31 December 2019 (31 December 2018: $85,858 million) and investment contracts without discretionary participation features of $4,902 million at 31 December 2019 (31 December 2018: $24,481 million). (c) The total charge for benefits and claims from continuing operations in 2019 shown in the income statement comprises the amounts shown as ‘income and expense included in the income statement’ in the table above of $(55,510) million (2018: $2,450 million) together with claims paid of $(29,585) million (2018: $(26,926) million), net of amounts attributable to reinsurers of $1,190 million (2018: $1,050 million). (d) Other movements for 2019 are for continuing operations only and include premiums received and claims paid on investment contracts without discretionary participating features, which are taken directly to the statement of financial position in accordance with IAS 39 and changes in the unallocated surplus of with-profits funds resulting from the recapture of the intra-group reinsurance agreement between the with-profits discontinued UK and Europe operations and Asia insurance operations prior to the demerger, which is eliminated in the income statement for the continuing operations of the Group. For 2018, in addition to premiums received and claims paid on investment contracts without discretionary participating features, other movements also included the reclassification of the reinsured UK annuity business as held for sale at 31 December 2018 and the changes in the unallocated surplus of with-profits funds resulting from actuarial gains and losses on the Group’s defined benefit pension schemes allocated to the with-profits funds of the discontinued UK and Europe operations, which were recognised directly in other comprehensive income. (e) The balances of the discontinued UK and Europe operations are removed from the opening balances to show the underlying movement from continuing operations. The $2,169 million of reinsurer’s share of insurance contract liabilities in the table above excluded the intra-group reinsurance assets of $1,412 million for the with-profits business ceded to the Asia insurance operations. (iv) Reinsurers’ share of insurance contract liabilities The measurement of reinsurance assets is consistent with the measurement of the underlying direct insurance contracts. The treatment of any gains or losses arising on the purchase of reinsurance contracts is dependent on the underlying accounting basis of the entity concerned. 31 Dec 2019 $m 31 Dec 2018 $m Asia US Unallocated to note (a) note (b) a segment Total Total Insurance contract liabilities 5,311 7,447 4 12,762 12,913 Claims outstanding 147 947 — 1,094 1,280 Total 5,458 8,394 4 13,856 14,193 Analysed as: From continuing operations 12,024 From discontinued UK and Europe operations 2,169 14,193 Notes (a) The reinsurers’ share of insurance contract liabilities for Asia primarily relates to protection business written in Hong Kong. (b) The reinsurer’s share of insurance contract liabilities for Jackson as shown in the table above primarily relates to certain fully collateralised former REALIC business retained by Swiss Re through 100 per cent reinsurance agreements. Apart from the reinsurance of REALIC business, the principal reinsurance ceded by Jackson outside the Group is on term-life insurance, direct and assumed accident and health business and GMIB variable annuity guarantees. The Group cedes certain business to other insurance companies. Although the ceding of insurance does not relieve the Group from its liability to its policyholders, the Group participates in such agreements for the purpose of managing its loss exposure. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk from similar geographic regions, activities or economic characteristics of the reinsurers to minimise its exposure from reinsurer insolvencies. Of the reinsurers’ share of insurance contract liabilities balance of $13,856 million at 31 December 2019 (31 December 2018: $12,024 million from continuing operations), 97 per cent (31 December 2018: 95 per cent from continuing operations) of the balance was from reinsurers with rating A- and above by Standard & Poor or other external rating agencies. Net commissions received on ceded business and claims incurred ceded to external reinsurers for Asia totalled $355 million and $552 million respectively during 2019 (2018: $294 million and $362 million, respectively). Net commissions received on ceded business and claims incurred ceded to external reinsurers for Jackson totalled $20 million and $630 million respectively during 2019 (2018: $9 million and $653 million, respectively). There were no deferred gains or losses on reinsurance contracts for Asia and Jackson in either 2019 or 2018. C4.2 Asia insurance operations (i) Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds Shareholder-backed business With-profits Unit-linked Other business liabilities business Total $m $m $m $m Balance at 1 January 2018 49,292 27,093 23,505 99,890 Comprising: - Policyholder liabilities on the consolidated statement of financial position 44,592 22,001 18,496 85,089 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,700 — — 4,700 - Group’s share of policyholder liabilities relating to joint ventures and associate note (a) — 5,092 5,009 10,101 Premiums New business 1,542 1,904 1,449 4,895 In-force 7,050 2,359 3,303 12,712 8,592 4,263 4,752 17,607 Surrenders note (b) (451) (2,542) (736) (3,729) Maturities/deaths (1,245) (187) (1,209) (2,641) Net flows 6,896 1,534 2,807 11,237 Shareholders’ transfers post-tax (87) — — (87) Investment-related items and other movements note (c) (2,110) (1,903) 295 (3,718) Foreign exchange translation differences note (d) (288) (1,020) (606) (1,914) Balance at 31 December 2018/1 January 2019 53,703 25,704 26,001 105,408 Comprising: - Policyholder liabilities on the consolidated statement of financial position 50,505 20,846 20,485 91,836 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 3,198 — — 3,198 - Group’s share of policyholder liabilities relating to joint ventures and associate note (a) — 4,858 5,516 10,374 Premiums New business 1,611 1,837 2,419 5,867 In-force 8,111 2,361 3,755 14,227 9,722 4,198 6,174 20,094 Surrenders note (b) (546) (2,929) (681) (4,156) Maturities/deaths (1,632) (149) (1,019) (2,800) Net flows 7,544 1,120 4,474 13,138 Shareholders' transfers post-tax (99) — — (99) Investment-related items and other movements note (c) 8,638 1,663 2,523 12,824 Foreign exchange translation differences note (d) 522 363 414 1,299 Balance at 31 December 2019 70,308 28,850 33,412 132,570 Comprising: - Policyholder liabilities on the consolidated statement of financial position 65,558 23,571 26,814 115,943 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,750 — — 4,750 - Group's share of policyholder liabilities relating to joint ventures and associate note (a) — 5,279 6,598 11,877 Average policyholder liability balances note (e) 2019 58,032 27,277 29,706 115,015 2018 47,548 26,398 24,752 98,698 Notes (a) The Group’s investment in joint ventures and associate are accounted for on an equity method and the Group’s share of the policyholder liabilities as shown above relate to the life business of the China JV, India and the Takaful business in Malaysia. (b) The rate of surrenders for shareholder-backed business (expressed as a percentage of opening policyholder liabilities) was 7.0 per cent in 2019 (2018: 6.6 per cent). (c) Investment-related items and other movements in 2019 primarily represent equity market gains from the with-profits business and effects from lower interest rates. (d) Movements in the year have been translated at the average exchange rates for the year ended 31 December 2019. The closing balance has been translated at the closing spot rates as at 31 December 2019. Differences upon retranslation are included in foreign exchange translation differences. (e) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds. (ii) Duration of policyholder liabilities The table below shows the carrying value of policyholder liabilities and the maturity profile of the cash flows on a discounted basis, taking account of expected future premiums and investment returns: 31 Dec 2019 $m 31 Dec 2018 $m Policyholder liabilities 115,943 91,836 Expected maturity: 31 Dec 2019 % 31 Dec 2018 % 0 to 5 years 18 20 5 to 10 years 18 19 10 to 15 years 15 15 15 to 20 years 13 12 20 to 25 years 11 10 Over 25 years 25 24 (iii) Summary policyholder liabilities (net of reinsurance) and unallocated surplus At 31 December 2019, the policyholder liabilities and unallocated surplus for Asia operations (excluding joint ventures and associate), net of external reinsurance of $5,458 million (31 December 2018: $3,537 million), comprised the following: 31 Dec 2019 $m 31 Dec 2018 $m Hong Kong 58,800 43,997 Indonesia 4,933 4,687 Malaysia 7,725 6,937 Singapore 27,427 23,121 Taiwan 6,801 5,353 Other operations 9,549 7,402 Total Asia operations 115,235 91,497 C4.3 US insurance operations (i) Analysis of movements in policyholder liabilities Variable annuity separate Fixed annuity, account GICs and other liabilities business Total $m $m $m Balance at 1 January 2018 176,578 67,905 244,483 Premiums 14,646 3,967 18,613 Surrenders (11,746) (4,465) (16,211) Maturities/deaths (1,449) (1,238) (2,687) Net flows 1,451 (1,736) (285) Addition for closed block of group payout annuities in the US — 5,532 5,532 Transfers from general to separate account 708 (708) — Investment-related items and other movements (15,436) 2,086 (13,350) Balance at 31 December 2018/1 January 2019 163,301 73,079 236,380 Premiums 12,776 8,200 20,976 Surrenders (12,767) (4,575) (17,342) Maturities/deaths (1,564) (1,823) (3,387) Net flows note (a) (1,555) 1,802 247 Transfers from general to separate account 951 (951) — Investment-related items and other movements note (b) 32,373 549 32,922 Balance at 31 December 2019 195,070 74,479 269,549 Average policyholder liability balances note (c) 2019 179,186 73,779 252,965 2018 169,940 69,109 239,049 Notes (a) Net inflows in 2019 are $247 million with new inflows into fixed annuity, fixed index annuity and the general account exceeding withdrawals and surrenders on this business, partially offset by net outflows from variable annuity business as the portfolio matures. (b) Positive investment-related items and other movements largely represent positive separate account returns following the increase in the US equity market in the year and asset gains arising from declining bond yields. (c) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the year. (ii) Duration of policyholder liabilities The table below shows the carrying value of policyholder liabilities and maturity profile of the cash flows on a discounted basis at the balance sheet date: 31 Dec 2019 31 Dec 2018 Variable Variable annuity annuity separate Fixed annuity, GICs separate Fixed annuity, GICs account and other account and other liabilities business Total liabilities business Total $m $m $m $m $m $m Policyholder liabilities 195,070 74,479 269,549 163,301 73,079 236,380 Expected maturity: % % % % % % 0 to 5 years 41 45 42 40 51 43 5 to 10 years 27 27 27 28 24 27 10 to 15 years 16 13 15 16 12 15 15 to 20 years 9 8 9 9 7 8 20 to 25 years 4 4 4 4 3 4 Over 25 years 3 3 3 3 3 3 (iii) Aggregate account values The table below shows the distribution of account values for fixed annuities (fixed interest rate and fixed index), the fixed account portion of variable annuities, and interest-sensitive life business within the range of minimum guaranteed interest rates as described in note C4.4(b). As at 31 December 2019, approximately 87 per cent (31 December 2018: 87 per cent) of Jackson’s fixed annuities, variable annuity fixed account options and interest-sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates. Fixed annuities and the fixed account portion of variable annuities Interest-sensitive life business Minimum guaranteed interest rate 31 Dec 2019 $m 31 Dec 2018 $m 31 Dec 2019 $m 31 Dec 2018$m > 0% - 1.0% 6,952 9,660 — — > 1.0% - 2.0% 12,994 8,646 — — > 2.0% - 3.0% 13,701 12,832 270 291 > 3.0% - 4.0% 1,561 1,623 3,018 3,049 > 4.0% - 5.0% 2,236 2,285 2,597 2,683 > 5.0% - 6.0% 278 286 2,031 2,168 Total 37,722 35,332 7,916 8,191 C4.4 Products and determining contract liabilities C4.4(a) Contract type Description and material features Determination of liabilities With-profits and participating contracts Provides savings and/or protection where the basic sum assured can be enhanced by a profit share (or bonus) from the underlying fund as determined at the discretion of the Company. Participating products often offer a guaranteed maturity or surrender value. Declared regular bonuses are guaranteed once vested. Future bonus rates and cash dividends are not guaranteed. Market value adjustments and surrender penalties are used for certain products where the law permits such adjustments. Guarantees are predominantly supported by segregated life funds and their estates. With-profits contracts are predominantly sold in Hong Kong, Malaysia and Singapore. The total value of the with-profits funds is driven by the underlying asset valuation with movements reflected principally in the accounting value of policyholder liabilities and unallocated surplus. Term, whole life and endowment assurance Non-participating savings and/or protection where the benefits are guaranteed, or determined by a set of defined market-related parameters. These products often offer a guaranteed maturity and surrender value. It is common in Asia for regulations or market-driven demand and competition to provide some form of capital value protection and minimum crediting interest rate guarantees. This is reflected within the guaranteed maturity and surrender values. Guarantees are borne by shareholders. The approach to determining the contract liabilities is generally driven by the local solvency basis. A gross premium valuation method is used in those local businesses where a risk-based capital framework is adopted for local solvency. Under the gross premium valuation method, all cash flows are valued explicitly using best estimate assumptions with a suitable margin for prudence. This is achieved either through adding an explicit allowance for assumptions to deviate from best estimate or by applying an overlay constraint so that on day one no negative reserves (ie where future premium inflows are expected to exceed prudent future claims and outflows) are derived at an individual policyholder level, or a combination of both. In Vietnam, the Company uses an estimation basis aligned substantially to that used by the countries applying the gross premium valuation method. For India and Taiwan, US GAAP is applied for measuring insurance liabilities. For these businesses, the future policyholder benefit provisions for non-linked business are determined using the net level premium method, with an allowance for surrenders, maintenance and claims expenses. Rates of interest used in establishing the policyholder benefit provisions vary by operation depending on the circumstances attaching to each block of business. The Hong Kong business unit applies a net premium valuation method to determine the future policyholder benefit provisions. Unit-linked Combines savings with protection, the cash value of the policy depends on the value of the underlying unitised funds. The attaching liabilities reflect the unit value obligation driven by the value of the investments of the unit fund. Additional technical provisions are held for guaranteed benefits beyond the unit fund value using a gross premium valuation method. These additional provisions are recognised as a component of other business liabilities. Health and protection Health and protection features are offered as supplements to the products listed above or sold as standalone products. Protection covers mortality or morbidity benefits including health, disability, critical illness and accident coverage. The determination of the liabilities of health and protection contracts are driven by the local solvency basis. A gross premium valuation method is used in those countries where a risk-based capital framework is adopted for local solvency. Under the gross premium valuation method, all cash flows are valued explicitly using best estimate assumptions with a suitable margin for prudence. This is achieved either through adding an explicit allowance for assumptions to deviate from best estimate or by applying an overlay constraint so that on day one no negative reserves (ie where future premium inflows are expected to exceed prudent future claims and outflows) are derived at an individual policyholder level, or a combination of both. The Hong Kong business unit applies a net premium valuation method to determine the future policyholder benefit provisions. C4.4(b) US Contract type Description and material features Determination of liabilities Fixed interest rate annuities At 31 December 2019, fixed interest rate annuities accounted for 6 per cent (31 December 2018: 7 per cent) of Jackson’s policy and contract liabilities. Fixed interest rate annuities are primarily deferred annuity products that are used for asset accumulation in retirement planning and for providing income in retirement. The policyholder of a fixed interest rate annuity pays Jackson a premium, which is credited to the policyholder’s account. Periodically, interest is credited to the policyholder’s account and in some cases administrative charges are deducted from the policyholder’s account. Jackson makes benefit payments at a future date as specified in the policy based on the value of the policyholder’s account at that date. On more than 90 per cent (2018: 94 per cent) of in-force business, Jackson may reset the interest rate on each contract anniversary, subject to a guaranteed minimum, in line with state regulations. When the annuity matures, Jackson either pays the contract holder the account value or a series of payments in the form of an immediate annuity product. The policy provides that at Jackson’s discretion it may reset the interest rate, subject to a guaranteed minimum. Approximately 65 per cent (31 December 2018:64 per cent) of the fixed interest rate annuities Jackson wrote in 2019 provide for a (positive or negative) market value adjustment (MVA) on surrender. This formula-based adjustment approximates the change in value that assets supporting the product would realise as interest rates move. Guaranteed minimum interest rate. At 31 December 2019, Jackson had fixed interest rate annuities totalling $15.9 billion (31 December 2018: $16.1 billion) in account value with minimum guaranteed rates ranging from 1.0 per cent to 5.5 per cent and a 2.88 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 5.5 per cent and a 2.91 per cent average guaranteed rate), depending on the particular product, jurisdiction where issued and the date of issue. As explained in note A4.1, all of Jackson’s insurance liabilities are based on US GAAP. An overview of the deferral and amortisation of acquisition costs for Jackson is provided in note C5.2(i)(b). With minor exceptions, the following is applied to most of Jackson’s contracts. Contracts are accounted for as investment contracts as defined for US GAAP purposes by applying a retrospective deposit method to determine the liability for policyholder benefits. This is then augmented by: – Any amounts that have been assessed to compensate the insurer for services to be performed over future periods (ie deferred income); – Any amounts previously assessed against policyholders that are refundable on termination of the contract; and – Any probable future loss on the contract (ie premium deficiency). Capitalised acquisition costs and deferred income for these contracts are amortised over the life of the book of contracts. See the variable annuity section below for further discussion. The interest guarantees are not explicitly valued but are reflected as they are earned in the current account liability value. Fixed index annuities At 31 December 2019, fixed index annuities accounted for 5 per cent (31 December 2018: 5 per cent) of Jackson's policy and contract liabilities. Fixed index annuities vary in structure but are generally deferred annuities that enable policyholders to obtain a portion of an equity-linked return (based on participation rates, caps and spreads), and provide a guaranteed minimum return. Most fixed index annuities are subject to early surrender charges for the first five to 12 years of the contract. During the surrender charge period, the contract holder may cancel the contract for the surrender value. Jackson offers a fully liquid fixed index annuity product that has no surrender charges. Jackson hedges the equity return risk on fixed index products using offsetting equity exposure in the variable annuity product. The cost of hedging is taken into account in setting the index participation rates, caps or spreads. Guaranteed minimum rates are generally set at 1.0 to 3.0 per cent. At 31 December 2019, Jackson had fixed index annuities allocated to indexed funds totalling $9.8 billion (31 December 2018: $7.6 billion) in account value with minimum guaranteed rates on index accounts ranging from 1.0 per cent to 3.0 per cent and a 1.46 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 3.0 per cent and a 1.77 per cent average guarantee rate). Jackson offers an optional lifetime income rider, which can be elected for an additional fee. Jackson also offers fixed interest accounts on some fixed index annuity products. At 31 December 2019, fixed interest accounts of fixed index annuities totalled $4.3 billion (31 December 2018: $3.4 billion) in account value. Minimum guaranteed rates on fixed interest accounts range from 1.0 per cent to 3.0 per cent and a 2.75 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 3.0 per cent and a 2.58 per cent average guaranteed rate). The liability for policyholder benefits that represent the guaranteed minimum return is determined similarly to the liabilities of the fixed interest annuity above. The equity-linked return option within the contract is treated as an embedded derivative liability under US GAAP and therefore this element of the liability is recognised at fair value. The liability for the lifetime income rider is determined each period end by estimating the expected value of benefits in excess of the projected account balance and recognising the excess on a prorated basis over the life of the contract based on total expected assessments. Group pay-out annuities At 31 December 2019, group pay-out annuities accounted for 2 per cent (31 December 2018: 2 per cent) of Jackson's policy and contract liabilities. Group pay-out annuities consist of a block of defined benefit annuity plans assumed from John Hancock USA and John Hancock New York. A single premium payment from an employer (contract holder) funds the pension benefits for its employees (participants). The contracts are tailored to meet the requirements of the specific pension plan being covered. This is a closed block of business from two standpoints: (1) John Hancock USA and John Hancock New York are no longer selling new contracts, and (2) contract holders (companies) are no longer adding additional participants to these defined benefit pension plans. The contracts provide annuity payments that meet the requirements of the specific pension plan being covered. In some cases, the contracts have pre-retirement death and/or withdrawal benefits, pre-retirement surviving spouse benefits, and/or subsidised early retirement benefits. The liability for future benefits is determined under US GAAP methodology for limited-payment contracts, using assumptions as of the acquisition date as to mortality and expense plus provisions for adverse deviation. Contract type Description and material feat

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2019
Intangible assets
Intangible assets	C5 Intangible assets C5.1 Goodwill Business combination Business acquisitions are accounted for by applying the purchase method of accounting, which adjusts the net assets of the acquired company to fair value at the date of purchase. The excess of the acquisition consideration over the fair value of the assets and liabilities of the acquired business is recorded as goodwill. The Group chooses the full goodwill method or the partial goodwill method to calculate goodwill on an acquisition by acquisition basis. Expenses related to acquiring new subsidiaries are charged to the income statement in the period in which they are incurred and not included in goodwill. Income and expenses of acquired businesses are included in the income statement from the date of acquisition. Where the Group writes a put option over its non-controlling interests as part of its business acquisition, which if exercised triggers the purchase by the Group of the non-controlling interests, the put option is recognised as a financial liability at the acquisition date with a corresponding amount, deducted directly from shareholder’s equity due to the significant risks and rewards of ownership remaining with the non-controlling interests. Any subsequent changes to the carrying amount of the put liability are also recognised within equity. Goodwill Goodwill is capitalised and carried on the Group consolidated statement of financial position as an intangible asset at initial value less any accumulated impairment losses. Goodwill impairment testing is conducted annually and when there is an indication of impairment. Goodwill shown on the consolidated statement of financial position at 31 December 2019 is wholly attributable to shareholders and represents amounts allocated to businesses in Asia and Africa in respect of both acquired asset management and life businesses. 31 Dec 2019 $m 31 Dec 2018 $m Carrying value at beginning of year 2,365 2,005 Demerger of UK and Europe operations (1,731) — Additions in the year 299 503 Disposals/reclassifications to held for sale — (13) Exchange differences 36 (130) Carrying value at end of year 969 2,365 Impairment testing Goodwill does not generate cash flows independently of other groups of assets and thus is assigned to cash-generating units for the purposes of impairment testing. These cash-generating units are based upon how management monitors the business and represent the lowest level to which goodwill can be allocated on a reasonable basis. Goodwill is tested for impairment by comparing the cash-generating unit’s carrying amount, including any goodwill, with its recoverable amount. The Group’s methodology of assessing whether goodwill may be impaired for acquired life and asset management operations is discussed below: For acquired life businesses, the Company routinely compares the aggregate of net asset value and acquired goodwill on an IFRS basis of the acquired life business with the value of the current in-force business as determined using the EEV methodology. Any excess of IFRS value over EEV carrying value is then compared with EEV basis value of current and projected future new business to determine whether there is any indication that the goodwill in the IFRS statement of financial position may be impaired. The methodology and assumptions underpinning the Group’s EEV basis of reporting are included in the EEV basis supplementary information in this Annual Report. The goodwill in respect of asset management businesses comprised mainly the goodwill arising from the acquisition of Thanachart Fund Management Co., Ltd. (TFUND) in 2019 and TMB Asset Management Co., Ltd. (TMBAM) in Thailand in 2018. At 31 December 2019, the recoverable amount of these businesses has been determined by calculating the value in use of each of these businesses (considered to be the cash-generating units) using a discounted cash flow valuation. For TMBAM, the discounted cash flow valuation is based on the latest three-year plan and cash flow projections for the later years. For TFUND, which was acquired in December 2019, the valuation is based on the 10-year cash flow projections used in assessing the acquisition. The value in use for these acquired asset management businesses is particularly sensitive to a number of key assumptions as follows: - The set of economic, market and business assumptions used to derive the cash flow projections for the businesses; - The assumed growth rate on forecast cash flows beyond the terminal year of the cash flow projections after considering expected future and past growth rates. At 31 December 2019, a growth rate of 2.25 per cent has been used to extrapolate beyond the projection period (2018: 2.25 per cent in respect of TMBAM); - The risk discount rate applied in accordance with the nature of the businesses. The pre-tax discount rate applied at 31 December 2019 was 9 per cent (2018: 9 per cent in respect of TMBAM); and - The continuation of asset management contracts on similar terms. Management believes that any reasonable change in the key assumptions would not cause the recoverable amount of the asset management businesses acquired to fall below its carrying amount. C5.2 Deferred acquisition costs and other intangible assets Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. Deferred acquisition costs are accounted for as described in note A4.1(c). Other intangible assets, such as distribution rights and software, are valued initially at the price paid to acquire them and are subsequently carried at cost less amortisation and any accumulated impairment losses. For intangibles other than DAC, amortisation follows the pattern in which the future economic benefits are expected to be consumed. If the pattern cannot be determined reliably, a straight-line method is applied. For software, the amortisation generally represents the licence period of the software acquired. Amortisation of intangible assets is charged to the ‘acquisition costs and other expenditure’ line in the consolidated income statement. Impairment testing is conducted when there is an indication of impairment. 31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs and other intangible assets attributable to shareholders From continuing operations 17,409 14,865 From discontinued operations — 143 Total note (i) 17,409 15,008 Other intangible assets, including computer software, attributable to with-profits funds From continuing operations 67 71 From discontinued operations — 106 Total 67 177 Total of deferred acquisition costs and other intangible assets 17,476 15,185 (i) Deferred acquisition costs and other intangible assets attributable to shareholders The deferred acquisition costs and other intangible assets attributable to shareholders comprise: 31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs related to insurance contracts as classified under IFRS 4 14,206 12,758 Deferred acquisition costs related to investment management contracts, including life assurance contracts classified as financial instruments and investment management contracts under IFRS 4 33 99 Deferred acquisition costs related to insurance and investment contracts note (ii) 14,239 12,857 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 (PVIF) 38 43 Distribution rights and other intangibles 3,132 2,108 Present value of acquired in-force (PVIF) and other intangibles attributable to shareholders note (iii) 3,170 2,151 Total of deferred acquisition costs and other intangible assets note (a) 17,409 15,008 Notes (a) Total deferred acquisition costs and other intangible assets attributable to shareholders can be further analysed by business operations as follows: 31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs Discontinued PVIF and Asia US UK and other insurance insurance* Europe intangibles† Total Total note (b) operations Balance at 1 January 1,610 11,113 134 2,151 15,008 14,700 Demerger of UK and Europe operations — — (134) (9) (143) — Additions ‡ 615 807 — 1,179 2,601 1,666 Amortisation to the income statement: Adjusted IFRS operating profit based on longer-term investment returns (257) (297) — (238) (792) (1,370) Non-operating profit (loss) — 1,248 — (5) 1,243 (156) (257) 951 — (243) 451 (1,526) Disposals and transfers — — — (11) (11) (19) Exchange differences and other movements 31 — — 103 134 (141) Amortisation of DAC related to net unrealised valuation movements on the US insurance operation's available-for-sale securities recognised within other comprehensive income — (631) — - (631) 328 Balance at 31 December 1,999 12,240 — 3,170 17,409 15,008 * Under the Group’s application of IFRS 4, US GAAP is used for measuring the insurance assets and liabilities of its US and certain Asia operations. Under US GAAP, most of the US insurance operation’s products are accounted for under Accounting Standard no. 97 of the Financial Accounting Standards Board (FAS 97) whereby deferred acquisition costs are amortised in line with the emergence of actual and expected gross profits which are determined using an assumption for long-term investment returns for the separate account of 7.4 per cent (2018: 7.4 per cent), gross of asset management fees and other charges to policyholders, but net of external fund management fees. The other assumption impacting expected gross profits include mortality assumptions, lapses, assumed unit costs and future hedge costs. The amounts included in the income statement and other comprehensive income affect the pattern of profit emergence and thus the DAC amortisation attaching. DAC amortisation is allocated to the operating and non-operating components of the Group’s supplementary analysis of profit and other comprehensive income by reference to the underlying items. † PVIF and other intangibles comprise present value of acquired in-force (PVIF), distribution rights and other intangibles such as software rights. Distribution rights relate to amounts that have been paid or have become unconditionally due for payment as a result of past events in respect of bancassurance partnership arrangements in Asia. These agreements allow for bank distribution of Prudential’s insurance products for a fixed period of time. Software rights include additions of $51 million, amortisation of $(33) million, disposals of $5 million, foreign exchange of $2 million and closing balance at 31 December 2019 of $85 million (31 December 2018: $70 million for continuing operations). ‡ In January 2019, the Group renewed its regional strategic bancassurance alliance with United Overseas Bank Limited (UOB). The new agreement extends the original alliance, which commenced in 2010, to 2034 and increases the geographical scope to include a fifth market, Vietnam, alongside the existing markets of Singapore, Malaysia, Thailand and Indonesia. As part of this transaction, Prudential has agreed to pay UOB an initial fee of $853 million (equivalent to SGD1,150 million) for distribution rights which are not dependent on future sales volumes. Of the $853 million, $301 million was paid in 2019, with another two instalments being payable in 2020 and 2021. After allowing for discounting, the amount included in additions in the table above is $834 million. (b) The DAC amount in respect of US arises in the insurance operations which comprises the following amounts: 31 Dec 2019 $m 31 Dec 2018 $m Variable annuity business 12,406 10,796 Other business 529 381 Cumulative shadow DAC (for unrealised gains/losses booked in other comprehensive income)* (695) (64) Total DAC for US operations 12,240 11,113 * A loss of $(631) million (2018: a gain of $328 million) for shadow DAC amortisation is booked within other comprehensive income to reflect the impact from the positive unrealised valuation movement of $4,023 million (2018: negative unrealised valuation movement of $(2,159) million). These adjustments reflect the movement from year to year, in the changes to the pattern of reported gross profit that would have happened if the assets reflected in the statement of financial position had been sold, crystallising the unrealised gains and losses, and the proceeds reinvested at the yields currently available in the market. At 31 December 2019, the cumulative shadow DAC balance as shown in the table above was negative $(695) million (31 December 2018: negative $(64) million). (c) Sensitivity of US DAC amortisation charge The amortisation charge to the income statement in respect of the US DAC asset is reflected in both adjusted IFRS operating profit based on longer-term investment returns and short-term fluctuations in investment returns. The amortisation charge to adjusted IFRS operating profit based on longer-term investment returns in a reporting period comprises: - A core amount that reflects a relatively stable proportion of underlying premiums or profit; and - An element of acceleration or deceleration arising from market movements differing from expectations. In periods where the cap and floor features of the mean reversion technique (which is used for moderating the effect of short-term volatility in investment returns) are not relevant, the technique operates to dampen the second element above. Nevertheless, extreme market movements can cause material acceleration or deceleration of amortisation in spite of this dampening effect. Furthermore, in those periods where the cap or floor is relevant, the mean reversion technique provides no further dampening and additional volatility may result. In 2019, the DAC amortisation charge for adjusted IFRS operating profit based on longer-term investment returns was determined after including a credit for decelerated amortisation of $280 million (2018: $259 million charge for acceleration). The deceleration arising in 2019 reflects a mechanical decrease in the projected separate account return for the next five years under the mean-reversion technique. Under this technique, the projected level of return for each of the next five years is adjusted so that, in combination with the actual rates of return for the preceding three years (including the current year), the assumed long-term annual separate account return of 7.4 per cent is realised on average over the entire eight-year period. The deceleration in DAC amortisation in 2019 is primarily driven by the actual separate account return in the year being higher than that assumed. The application of the mean reversion formula (described in note A4.1) has the effect of dampening the impact of equity market movements on DAC amortisation while the mean reversion assumption lies within the corridor. At 31 December 2019, it would take approximate movements in separate account values of more than either negative 26 per cent or positive 49 per cent for mean reversion assumption to move outside the corridor. (ii) Deferred acquisition costs related to insurance and investment contracts The movements in deferred acquisition costs relating to insurance and investment contracts are as follows: 2019 $m 2018 $m Insurance Investment Insurance Investment contracts contracts contracts contracts note note Balance at 1 January 12,758 99 12,406 85 Demerger of UK and Europe operations (62) (72) — — Additions 1,411 11 1,324 35 Amortisation 699 (5) (1,266) (16) Exchange differences 31 — (34) (5) Change in shadow DAC related to movement in unrealised appreciation of debt securities classified as available-for-sale (631) — 328 — Balance at 31 December 14,206 33 12,758 99 Note All of the additions of investment contracts are through internal development. The carrying amount of the DAC balance comprises the following gross and accumulated amortisation amounts: 31 Dec 2019 $m 31 Dec 2018 $m Gross amount 34 231 Accumulated amortisation (1) (132) Carrying amount 33 99 (iii) PVIF and other intangibles attributable to shareholders 2019 $m 2018 $m Other Other intangibles intangibles Distribution (including Distribution (including PVIF rights software) Total PVIF rights software) Total note (a) note (b) note (a) note (b) Balance at 1 January Cost 295 2,546 399 3,240 307 2,426 491 3,224 Accumulated amortisation (252) (587) (250) (1,089) (258) (423) (334) (1,015) 43 1,959 149 2,151 49 2,003 157 2,209 Demerger of UK and Europe operations (1) — (8) (9) — — — — Additions — 1,110 69 1,179 — 242 65 307 Amortisation charge (5) (196) (42) (243) (5) (190) (49) (244) Disposals and transfers — — (11) (11) — — (19) (19) Exchange differences and other movements 1 98 4 103 (1) (96) (5) (102) Balance at 31 December 38 2,971 161 3,170 43 1,959 149 2,151 Comprising: Cost 175 3,783 379 4,337 295 2,546 399 3,240 Accumulated amortisation (137) (812) (218) (1,167) (252) (587) (250) (1,089) 38 2,971 161 3,170 43 1,959 149 2,151 Notes (a) All of the net PVIF balances relate to insurance contracts. The PVIF attaching to investment contracts have been fully amortised. Amortisation is charged over the period of provision of asset management services as those profits emerge. (b) Distribution rights relate to fees paid in relation to the bancassurance partnership arrangements for the bank distribution of Prudential’s insurance products for a fixed period of time. The distribution rights amounts are amortised on a basis to reflect the pattern in which the future economic benefits are expected to be consumed by reference to new business production levels.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2019
Borrowings
Borrowings	C6 Borrowings C6.1 Core structural borrowings of shareholder-financed businesses Although initially recognised at fair value, net of transaction costs, borrowings, excluding liabilities of consolidated collateralised debt obligations, are subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds (net of related issue costs) is amortised through the income statement to the date of maturity or for hybrid debt, over the expected life of the instrument. 31 Dec 2019 $m 31 Dec 2018 $m Central operations: Subordinated debt substituted to M&G plc in 2019: £600m 5.56% (30 Jun and 31 Dec 2018: 5.0%) Notes 2055 note (i) — 753 £700m 6.34% (30 Jun and 31 Dec 2018: 5.7%) Notes 2063 note (i) — 886 £750m 5.625% Notes 2051 — 947 £500m 6.25% Notes 2068 — 634 US$500m 6.5% Notes 2048 — 498 Total subordinated debt substituted to M&G plc in 2019 note (ii) — Subordinated and other debt not substituted to M&G plc: US$250m 6.75% Notes note (iii) 250 250 US$300m 6.5% Notes note (iii) 300 299 Perpetual Subordinated Capital Securities 550 549 US$700m 5.25% Notes 700 700 US$1,000m 5.25% Notes 996 993 US$725m 4.375% Notes 721 720 US$750m 4.875% Notes 744 743 Perpetual Subordinated Capital Securities 3,161 3,156 €20m Medium Term Notes 2023 22 23 £435m 6.125% Notes 2031 571 549 £400m 11.375% Notes 2039 note (iv) — 508 Subordinated notes 593 1,080 Subordinated debt total 4,304 4,785 Senior debt: note (v) £300m 6.875% Bonds 2023 392 375 £250m 5.875% Bonds 2029 298 283 Bank loans note (vi) $350m Loan 2024 350 — £275m Loan 2022 — 350 Total debt not substituted to M&G plc in 2019 5,344 5,793 Total central operations 5,344 9,511 Jackson US$250m 8.15% Surplus Notes 2027 note (vii) 250 250 Total core structural borrowings of shareholder-financed businesses note (viii) 5,594 9,761 Notes (i) In 2019, the Group agreed with the holders of these two subordinated debt instruments that, in return for an increase in the coupon of the two instruments and upfront fees totalling $182 million for both instruments, they would permit the substitution of M&G plc as the issuer of the instruments, together with other modifications of terms to ensure the debt meet the requirements of Solvency II. In accordance with IAS 39, this has been accounted for as an extinguishment of the old debt and the issuance of new debt, recognised at fair value. The debt was substituted to M&G plc in October 2019. The $182 million of upfront fees have been paid by Prudential plc and have been treated as a non-operating expense from continuing operations. (ii) In 2019, Prudential plc transferred subordinated debt to M&G plc as part of the demerger. In addition to the subordinated debt held at 31 December 2018 as shown in the table above, the debt transferred included the further £300 million 3.875 per cent subordinated debt raised in July 2019 (iii) These borrowings can be converted, in whole or in part, at the Company’s option and subject to certain conditions, on any interest payment date, into one or more series of Prudential preference shares. (iv) In May 2019, the Company redeemed its £400 million 11.375 per cent Tier 2 subordinated notes. (v) The senior debt ranks above subordinated debt in the event of liquidation. (vi) The bank loan of $350 million was drawn in November 2019 at a cost of LIBOR plus 0.2 per cent. The loan matures on 7 November 2024. The £275 million bank loan was repaid by the Group in October 2019. (vii) Jackson’s borrowings are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims of Jackson. (viii) The changes in the carrying value of the structural borrowings of shareholder-financed businesses for the Group (including both continuing and discontinued operations) are analysed below: Cash movements $m Non-cash movements $m Payment Demerger Balance at for change Foreign of UK and beginning Issue of Redemption to terms exchange Europe Other Balance at of year debt of debt of debt movement operations movements end of year 2019 9,761 367 (504) (182) 298 (4,161) 15 5,594 2018 8,496 2,079 (553) (44) (232) — 15 9,761 C6.2 Operational borrowings 31 Dec 2019 $m 31 Dec 2018 $m Borrowings in respect of short-term fixed income securities programmes – commercial paper 520 601 Lease liabilities under IFRS 16 note (a) 371 — Non-recourse borrowings of consolidated investment funds note (b) 1,045 448 Bank loans and overdrafts 29 115 Finance lease liability under IAS 17 note (a) — 25 Other 377 82 Other borrowings note (c) 406 222 Operational borrowings attributable to shareholder-financed businesses 2,342 1,271 Non-recourse borrowings of consolidated investment funds note (b) — 2,153 Lease liabilities under IFRS 16 note (a) 259 — Other borrowings 44 2,865 Operational borrowings attributable to with-profits businesses note (d) 303 5,018 Total operational borrowings 2,645 6,289 Analysed as: Total from continuing operations 1,160 Total from discontinued UK and Europe operations 5,129 6,289 Notes (a) The Group adopted IFRS 16 that replaces IAS 17 as at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated (as described in note A3). The finance lease liabilities recognised under IAS 17 in the comparative was principally held by the discontinued UK and Europe operations. Further details on the Group’s IFRS 16 adoption and operating leases are provided in notes A3 and C13. (b) In all instances, the holders of the debt instruments issued by consolidated investment funds do not have recourse beyond the assets of those funds. (c) Other borrowings mainly include senior debt issued through the Federal Home Loan Bank of Indianapolis (FHLB), secured by collateral posted with the FHLB by Jackson. (d) Operational borrowings attributable to with-profits businesses at 31 December 2018 were mainly attributable to the discontinued UK and Europe operations ($4,994 million) held in consolidated investment funds.

Risk and sensitivity analysis

Risk and sensitivity analysis	12 Months Ended
	Dec. 31, 2019
Risk and sensitivity analysis
Risk and sensitivity analysis	C7 Risk and sensitivity analysis C7.1 Group overview The Group’s risk framework and the management of the risk, including those attached to the Group’s financial statements including financial assets, financial liabilities and insurance liabilities, together with the inter-relationship with the management of capital have been included in the audited sections of ‘Group Risk Framework’. The financial and insurance assets and liabilities on the Group’s balance sheet are, to varying degrees, subject to market and insurance risk and other changes of experience assumptions that may have a material effect on IFRS basis profit or loss and shareholders’ equity. The market and insurance risks, including how they affect Group’s operations and how these are managed are discussed in the ‘Group Risk Framework’. The most significant items that the IFRS shareholders’ profit or loss and shareholders’ equity for the Group’s life assurance business are sensitive to, are shown in the following tables. The distinction between direct and indirect exposure is not intended to indicate the relative size of the sensitivity. Type of business Market and credit risk Insurance and Investments/derivatives Liabilities/unallocated Other exposure Asia insurance operations (see also section C7.2) All business Mortality and morbidity risk Persistency risk With-profits business Net neutral direct exposure (indirect exposure only) Investment performance subject to smoothing through declared bonuses Unit-linked business Net neutral direct exposure (indirect exposure only) Investment performance through asset management fees Non-participating business Asset/liability mismatch risk Credit risk Interest rates for those operations where the basis of insurance liabilities is sensitive to current market movements Interest rate and price risk US insurance operations (see also section C7.3) All business Currency risk Persistency risk Variable annuity business Net effect of market risk arising from incidence of guarantee features and variability of asset management fees offset by derivative hedging programme Risk that utilisation of withdrawal benefits or lapse levels differ from those assumed in pricing Fixed index annuity business Derivative hedge programme to the extent not fully hedged against liability Incidence of equity participation features and meeting contractual accumulation requirements Minimal lapse risk Fixed index annuities, Fixed annuities and GIC business Credit risk and interest rate risk on investments Profit and loss and shareholders’ equity are volatile for the incidence of these risks on unrealised appreciation of fixed income securities classified as available-for-sale under IAS 39 Interest rate risk on liabilities (meeting guaranteed rates of accumulation on fixed annuity products) Spread difference between earned rate and rate credited to policyholders Lapse risk, but the effects of extreme events may be mitigated by the application of market value adjustments Detailed analyses of sensitivity of IFRS basis profit or loss and shareholders’ equity to key market and other risks by business unit are provided in notes C7.2, C7.3 and C7.4. The sensitivity analyses provided show the effect on profit or loss and shareholders’ equity to changes in the relevant risk variables, all of which are reasonably possible at the relevant balance sheet date. In the equity risk sensitivity analysis shown, the Group has considered the impact of an instantaneous 20 per cent fall in equity markets. If equity markets were to fall by more than 20 per cent, the Group believes that this would not be an instantaneous fall but rather would be expected to occur over a period of time during which the hedge positions within Jackson, where equity risk is greatest, would be rebalanced. The equity risk sensitivity analysis provided assumes that all equity indices fall by the same percentage. The published sensitivities only allow for limited management actions such as changes to policyholder bonuses, where applicable. If the economic conditions set out in the sensitivities persisted, the financial impacts may differ to the instantaneous impacts. In this case management could also take additional actions to help mitigate the impact of these stresses, including (but not limited to) rebalancing investment portfolios, further market risk hedging, increased use of reinsurance, repricing of in-force benefits, changes to new business pricing and the mix of new business being sold. Following the adoption of US dollar as the Group’s presentation currency, the Group has no exposure to currency fluctuation from business units that operate in US dollars, or currencies pegged to the US dollar (such as Hong Kong dollars), and reduced exposure to currencies partially managed to the US dollar within a basket of currencies (such as Singapore dollars). Sensitivities to exchange rate movements in the Group’s key markets are therefore expected to be limited. Impact of diversification on risk exposure The Group benefits from diversification benefits achieved through the geographical spread of the Group’s operations and, within those operations, through a broad mix of product types. Relevant correlation factors include: - Correlation across geographic regions for both financial and non-financial risk factors; and - Correlation across risk factors for longevity risk, expenses, persistency and other risks. Other limitations on the sensitivities include: the use of hypothetical market movements to demonstrate potential risk that only represent Prudential’s view of reasonably possible near-term market changes and that cannot be predicted with any certainty; the assumption that interest rates in all countries move identically; and the lack of consideration of the inter-relation of interest rates, equity markets and foreign currency exchange rates. C7.2 Asia insurance operations Exposure and sensitivity of IFRS basis profit and shareholders’ equity to market and other risks The Asia operations sell with-profits and unit-linked policies, and the investment portfolio of the with-profits funds contains a proportion of equities. Shareholder exposure to market risk on these products is muted given the shareholders share this risk with the policyholders through its joint participation in with-profits funds results or through fees that vary with the size of the unit-linked funds. Non-participating business is largely backed by debt securities or deposits, which means that value of its assets fluctuate with interest rates. Depending on the reserving basis in the business unit, this may be offset by a consequential change in insurance liabilities as discount rates change accordingly. The Group’s exposure to market risk arising from its Asia operations is therefore at modest levels. Asia also sells regular premium health and protection business (which may attach to a unit-linked or other savings products). This exposes Asia to persistency, mortality and morbidity risk. This is discussed further below. In summary, for Asia operations, the adjusted IFRS operating profit based on longer-term investment returns is mainly affected by the impact of market levels on unit-linked persistency and other insurance risks. At the total IFRS profit level, the Asia result is affected by short-term value movements on the asset portfolio for non-linked shareholder-backed business offset by the impact of changing interest rates on the discount rate used to determine insurance liabilities. (i) Sensitivity to interest rate risk Excluding with-profits and unit-linked businesses, the results of the Asia business are sensitive to the movements in interest rates, as described above. For the purposes of analysing sensitivity to variations in interest rates, reference has been made to the movements in the 10-year government bond rates of the regions. At 31 December 2019, 10-year government bond rates vary from region to region and range from 0.7 per cent to 7.2 per cent (31 December 2018: 0.9 per cent to 8.1 per cent). For the sensitivity analysis as shown in the table below, the reasonably possible interest rate movement used is 1 per cent for all local business units (subject to a floor of zero). The estimated sensitivity to the decrease and increase in interest rates is as follows: 2019 $m 2018 $m Decrease Increase Decrease Increase of 1% of 1% of 1% of 1% Profit before tax attributable to shareholders (705) (744) 397 (430) Related deferred tax (where applicable) 3 26 (19) 33 Net effect on profit after tax and shareholders' equity (702) (718) 378 (397) The pre-tax impacts, if they arose, would mostly be recorded within short-term fluctuations in investments returns in the Group’s segmental analysis of profit before tax. The degree of sensitivity of the results of the non-linked shareholder-backed business of the Asia operations to movements in interest rates depends upon the degree to which the liabilities under the ‘grandfathered’ IFRS 4 measurement basis reflects market interest rates from year to year. This varies by local business unit. For example, for businesses applying US GAAP, the results can be more sensitive as the effect of interest rate movements on the backing investments may not be offset by liability movements. Further, the level of options and guarantees in the products written in the particular business unit will also affect the degree of sensitivity to interest rate movements. The direction of the sensitivity of the Asia operations as a whole in a given year can also be affected by a change in the geographical mix. In addition, the degree of sensitivity of the results is dependent on the interest rate level at that point of time. At 31 December 2018 the sensitivities were dominated by the impact of interest rate movements on the value of government and corporate bond investments, which are expected to increase in value as interest rates fall to a greater extent than the offsetting increase in liabilities (and vice versa if rates rise). This arises because the discount rate in some operations does not fluctuate in line with interest rate movements. This feature remains for most local business units at 31 December 2019 and is evident in the 'increase of 1%' sensitivity. The 'decrease of 1%' sensitivity at 31 December 2019 reflects that some local business units' liabilities become more sensitive at lower interest rates and the fluctuations in liabilities begin to exceed asset gains. As noted above, the results only allow for limited management actions, and if such economic conditions persisted management could take additional actions to help mitigate the impact of these stresses, including (but not limited to) rebalancing investment portfolios, increased use of reinsurance, changes to new business pricing and the mix of new business being sold. (ii) The non-linked shareholder-backed business has limited exposure to equity and property investment (31 December 2019: $3,480 million; 31 December 2018: $2,740 million). The increase in 2019 reflects higher equity markets and business growth. Generally, changes in equity and property investment values are not directly offset by movements in non-linked policyholder liabilities. Movements in equities backing with-profits and unit-linked business have been excluded as they are generally matched by an equal movement in insurance liabilities (including unallocated surplus of with-profits funds). The estimated sensitivity to a 10 per cent and 20 per cent change in equity and property prices for shareholder-backed Asia other business (including those held by the Group’s joint venture and associate businesses), which would be reflected in short-term fluctuations in investment returns of the Group’s segmental analysis of profit before tax, is as follows: 2019 $m 2018 $m Decrease Decrease Decrease Decrease of 20% of 10% of 20% of 10% Profit before tax attributable to shareholders (864) (432) (709) (355) Related deferred tax (where applicable) 48 24 21 10 Net effect on profit after tax and shareholders’ equity (816) (408) (688) (345) A 10 or 20 per cent increase in equity and property values would have an approximately equal and opposite net effect on profit and shareholders’ equity to the sensitivities shown above. The impacts at 31 December 2019 are similar to those at 31 December 2018, and reflect the growth in the business. (iii) In Asia, adverse persistency experience can impact the IFRS profitability of certain types of business written in the region. This risk is managed at a local business unit level through regular monitoring of experience and the implementation of management actions as necessary. These actions could include product enhancements, increased management focus on premium collection, as well as other customer retention efforts. The potential financial impact of lapses is often mitigated through the specific features of the products, eg surrender charges, or through the availability of premium holiday or partial withdrawal policy features. The reserving basis in Asia is such that a change in lapse assumptions has an immaterial effect on immediate profitability. Many of the business units in Asia are exposed to mortality and morbidity risk and a provision is made within policyholder liabilities to cover the potential exposure. If all these assumptions were strengthened by 5 per cent then it is estimated that post-tax profit and shareholders’ equity would decrease by approximately $77 million (2018: $73 million). Weakening these assumptions by 5 per cent would have a similar equal and opposite impact. C7.3 US insurance operations Exposure and sensitivity of IFRS basis profit and shareholders’ equity to market and other risks Jackson’s reported adjusted IFRS operating profit based on longer-term investment returns is sensitive to market conditions, both with respect to income earned on spread-based products and indirectly with respect to income earned on variable annuity asset management fees. Jackson’s main exposures to market risk are to interest rate risk and equity risk. Jackson is exposed primarily to the following risks: Risks Risk of loss Equity risk — Related to the incidence of benefits related to guarantees issued in connection with its variable annuity contracts; and — Related to meeting contractual accumulation requirements in fixed index annuity contracts. Interest rate risk — Related to meeting guaranteed rates of accumulation on fixed annuity and interest sensitive life products following a sustained fall in interest rates; — Related to increases in the present value of projected benefits related to guarantees issued in connection with its variable annuity contracts following a sustained fall in interest rates especially if in conjunction with a fall in equity markets; — Related to the surrender value guarantee features attached to the Company’s fixed annuity and interest sensitive life products and to policyholder withdrawals following a sharp and sustained increase in interest rates; and — The risk of mismatch between the expected duration of certain annuity liabilities and prepayment risk and extension risk inherent in mortgage-backed securities. A prolonged low interest rate environment may result in a lengthening of maturities of the fixed annuity and interest-sensitive life contract holder liabilities from initial estimates, primarily due to lower policy lapses. As interest rates remain at low levels, Jackson may also have to reinvest the cash it receives as interest or proceeds from investments that have matured or that have been sold at lower yields, reducing its investment margins. Moreover, borrowers may prepay or redeem the securities in their investment portfolios with greater frequency in order to borrow at lower market rates, which exacerbates this risk. The majority of Jackson’s fixed annuities, variable annuity fixed account options and life products were designed with contractual provisions that allow crediting rates to be re-set annually, subject to minimum crediting rate guarantees. Jackson’s derivative programme, which is described in note C3.4(b), is used to manage the economic interest rate risk associated with a broad range of products and equity market risk attaching to its equity-based products. Movements in equity markets, equity volatility, interest rates and credit spreads materially affect the carrying value of derivatives that are used to manage the liabilities to policyholders and backing investment assets. Movements in the carrying value of derivatives combined with the use of US GAAP measurement (as ‘grandfathered’ under IFRS 4) for the insurance contracts assets and liabilities, which is largely insensitive to current period market movements, mean that the Jackson total profit (ie including short-term fluctuations in investment returns) is sensitive to market movements. In addition to these effects the Jackson shareholders’ equity is sensitive to the impact of interest rate and credit spread movements on the value of fixed income securities. Movements in unrealised appreciation on these securities are included as movement in shareholders’ equity (ie outside the income statement). (i) Jackson had variable annuity contracts with guarantees, for which the net amount at risk (NAR) is defined as the amount of guaranteed benefit in excess of current account value, as follows: Period Net Weighted until Minimum Account amount average expected return ‡ value at risk attained age annuitisation 31 Dec 2019 % $m $m Years Years Return of net deposits plus a minimum return GMDB 0 - 6 % 150,576 2,477 66.9 years GMWB - premium only 0 % 2,753 16 GMWB * 0 - 5 % ‡ 257 14 GMAB - premium only 0 % 37 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 12,547 69 67.7 years GMWB - highest anniversary only 3,232 51 GMWB * 698 52 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0 - 6 % 8,159 687 70.0 years GMIB † 0 - 6 % 1,688 616 0.5 years GMWB * 0 - 8 % ‡ 140,529 7,160 Period Net Weighted until Minimum Account amount average expected return value at risk attained age annuitisation 31 Dec 2018 % $m $m Years Years Return of net deposits plus a minimum return GMDB - 6 % 125,644 5,652 66.5 years GMWB - premium only % 2,450 80 GMWB* - 5 % ‡ 251 25 GMAB - premium only % 34 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 10,865 1,418 67.1 years GMWB - highest anniversary only 2,827 400 GMWB* 682 113 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB - 6 % 6,947 1,550 69.5 years GMIB † - 6 % 1,599 825 0.1 years GMWB* - 8 % ‡ 116,902 21,442 * Amounts shown for GMWB comprise sums for the ‘not for life’ portion (where the guaranteed withdrawal base less the account value equals to the net amount at risk (NAR)), and a ‘for life’ portion (where the NAR has been estimated as the present value of future expected benefit payment remaining after the amount of the ‘not for life’ guaranteed benefits is zero). † The GMIB guarantees are substantially reinsured. ‡ Ranges shown based on simple interest. The upper limits of 5 per cent or 8 per cent simple interest are approximately equal to 4.1 per cent and 6 per cent respectively, on a compound interest basis over a typical 10-year bonus period. For example 1 + 10 x 0.05 is similar to 1.04 growing at a compound rate of 4 per cent for a further nine years. The "Combination GMWB" category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions. Account balances of contracts with guarantees were invested in variable separate accounts as follows: Mutual fund type: 31 Dec 2019 $m 31 Dec 2018 $m Equity 121,520 99,834 Bond 19,341 17,705 Balanced 30,308 25,349 Money market 956 1,049 Total 172,125 143,937 As noted above, Jackson is exposed to equity risk through the options embedded in the fixed index annuity liabilities and guarantees included in certain variable annuity benefits as illustrated above. This risk is managed using an equity hedging programme to minimise the risk of a significant economic impact as a result of increases or decreases in equity market levels. Jackson purchases futures and options that hedge the risks inherent in these products, while also considering the impact of rising and falling guaranteed benefit fees. Due to the nature of valuation under IFRS of the free-standing derivatives and the variable annuity guarantee features, this hedge, while highly effective on an economic basis, would not automatically offset within the financial statements as the impact of equity market movements resets the free-standing derivatives immediately while the hedged liabilities reset more slowly and fees are recognised prospectively in the period in which they are earned. Jackson's hedging programme is focused on managing the economic risks in the business and protecting statutory solvency in the circumstances of large market movements. The hedging programme does not aim to hedge IFRS accounting results, which can lead to volatility in the IFRS results in a period of significant market movements, as was seen in 2019. In addition to the exposure explained above, Jackson is also exposed to equity risk from its holding of equity securities, partnerships in investment pools and other financial derivatives. The estimated sensitivity of Jackson’s profit and shareholders’ equity to immediate increases and decreases in equity markets is shown below. The sensitivities are shown net of related changes in DAC amortisation. Sensitivity to equity risk - Jackson 2019 $m 2018 $m Decrease Increase Decrease Increase of 20% of 10% of 20% of 10% of 20% of 10% of 20% of 10% Profit before tax (net of related changes in amortisation of DAC) 964 256 1,848 770 1,347 544 74 (159) Related deferred tax (202) (54) (388) (162) (282) (115) (15) 33 Net effect on profit after tax and shareholders' equity* 762 202 1,460 608 1,065 429 59 (126) * The table above has been prepared to exclude the impact of the instantaneous equity movements on the separate account fees. The sensitivity movements shown include those relating to the fixed index annuity and the reinsurance of GMIB guarantees. The above sensitivities assume instantaneous market movements while the actual impact on financial results would vary contingent upon the volume of new product sales and lapses, changes to the derivative portfolio, correlation of market returns and various other factors including volatility, interest rates and elapsed time. The directional movements in the sensitivities reflect the hedging programme in place at 31 December 2019 and 2018 respectively. The impacts shown under a decrease in equity markets reflect the mismatch discussed in note B1.2(ii)(a), with the gains on equity derivatives exceeding the increase in IFRS liabilities given the measurement basis applied. Following the equity market gains during 2019, the equity call options held at 31 December 2019 act to limit losses on equity derivatives under equity market increases. If equity markets therefore increase the main effect is a reduction in liabilities as guarantees move further out-of-the-money. The sensitivities above reflect the actual hedging portfolio at 31 December 2019 and the nature of Jackson’s dynamic hedging programme means that the portfolio, and hence the results of these sensitivities, will change on an ongoing basis. (ii) Except in the circumstances of interest rate scenarios where the guarantee rates included in contract terms are higher than crediting rates that can be supported from assets held to cover liabilities, the IFRS measurement basis of fixed annuity liabilities of Jackson’s products is not generally sensitive to interest rate risk. This position derives from the nature of the products and the US GAAP basis of measurement. The GMWB features attached to variable annuity business (other than ‘for life’ components) are accounted for under US GAAP at fair-value and, therefore, will be sensitive to changes in interest rates, as discount rates and fund earned rates will be updated on an ongoing basis. Debt securities and related derivatives are marked to fair value. Value movements on derivatives, again net of related changes to amortisation of DAC and deferred tax, are recorded within the income statement. Fair value movements on debt securities, net of related changes to amortisation of DAC and deferred tax, are recorded within other comprehensive income. The estimated sensitivity of these items and policyholder liabilities to a 1 per cent and 2 per cent decrease (with no floor of zero applied) and increase in interest rates is as follows: 2019 $m 2018 $m Decrease Increase Decrease Increase of 2% of 1% of 2% of 1% of 2% of 1% of 2% of 1% Profit or loss: Profit before tax (net of related changes in amortisation of DAC) (6,238) (2,815) 3,914 2,141 (4,502) (2,188) 2,815 1,530 Related deferred tax 1,310 591 (822) (450) 945 460 (591) (321) Net effect on profit after tax (4,928) (2,224) 3,092 1,691 (3,557) (1,728) 2,224 1,209 Other comprehensive income: Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC) 5,342 2,840 (5,342) (2,840) 5,265 2,988 (5,265) (2,988) Related deferred tax (1,122) (596) 1,122 596 (1,105) (628) 1,105 628 Net effect on other comprehensive income 4,220 2,244 (4,220) (2,244) 4,160 2,360 (4,160) (2,360) Total net effect on shareholders' equity (708) 20 (1,128) (553) 603 632 (1,936) (1,151) These sensitivities above are shown for interest rates in isolation only and do not include other movements in credit risk that may affect credit spreads and valuations of debt securities. Similar to the sensitivity to equity risk, the sensitivity movements provided in the table above are at a point in time and reflect the hedging programme in place on the balance sheet date, while the actual impact on financial results would vary contingent upon a number of factors. The increase in the magnitude of the sensitivities at 31 December 2019 mainly reflects the lower interest rates at 31 December 2019 and the consequential reduction on assumed future separate account return, that is based on risk-free rates under grandfathered US GAAP. This has the effect of the IFRS liability reflecting a greater potential for policyholder payments under the variable annuity guarantees as interest rates fall. Jackson's hedging programme is focused on managing the economic risks in the business and protecting statutory solvency under large market movements, and does not aim to hedge the IFRS accounting results. (iii) Sensitivity to insurance risk Jackson is sensitive to mortality risk, lapse risk and other types of policyholder behaviour, such as the utilisation of its GMWB product features. Jackson’s persistency assumptions reflect a combination of recent experience for each relevant line of business and expert judgement, especially where a lack of relevant and credible experience data exists. These assumptions vary by relevant factors, such as product, policy duration, attained age and for variable annuity lapse assumptions, the extent to which guaranteed benefits are 'in the money’ relative to policy account values. Changes in these assumptions, which are assessed on an annual basis after considering recent experience, could have a material impact on policyholder liabilities and therefore on profit before tax. Any changes in these assumptions are recorded within short-term fluctuations in investment returns in the Group's supplementary analysis of profit (see note B1.2). In addition, in the absence of hedging, equity and interest rate movements can both cause a loss directly or an increased future sensitivity to policyholder behaviour. Jackson has an extensive derivative programme that seeks to manage the exposure to such altered equity markets and interest rates. Note A4.1 describes the methodology applied by Jackson to amortise deferred acquisition costs. The amount of amortisation charged in any one period is sensitive to separate account investment returns. C7.4 Asset management and other operations (i) Asset management The profit for the year of asset management operations are sensitive to the level of assets under management, as this significantly affects the value of management fees earned by the business in the current and future years. The Group’s asset management operations do not hold significant financial investments. (ii) Other operations At 31 December 2019, the financial investments of the other operations are principally short-term treasury bills held by the Group’s treasury function for liquidity purposes and so there is limited sensitivity to credit risk and interest rate movements.

Tax assets and liabilities

Tax assets and liabilities	12 Months Ended
	Dec. 31, 2019
Tax assets and liabilities
Tax assets and liabilities	C8 Tax assets and liabilities Accounting policies on deferred tax are included in note B4. C8.1 Current tax At 31 December 2019, of the $492 million (31 December 2018: $476 million from continuing operations) current tax recoverable, the majority is expected to be recovered more than twelve months after the reporting period. At 31 December 2019, the current tax liability of $396 million (31 December 2018: $411 million from continuing operations) includes $198 million (31 December 2018: $190 million from continuing operations) of provisions for uncertain tax matters. Further detail is provided in note B4. C8.2 Deferred tax The statement of financial position contains the following deferred tax assets and liabilities in relation to: 2019 $m Movement Other through movements other including Demerger of Movement in comprehensive foreign Balance at 1 UK and Europe income income and currency Balance at 31 Jan operations statement equity movements Dec Deferred tax assets Unrealised losses or gains on investments 144 — (16) — (128) — Balances relating to investment and insurance contracts 1 — 60 — (29) 32 Short-term temporary differences 2,979 (146) 1,069 (15) 1 3,888 Capital allowances 19 (14) (3) — (1) 1 Unused tax losses 162 — 8 — (16) 154 Total 3,305 (160) 1,118 (15) (173) 4,075 Deferred tax liabilities Unrealised losses or gains on investments (1,104) 1,053 (231) (713) 118 (877) Balances relating to investment and insurance contracts (1,276) — (246) — 15 (1,507) Short-term temporary differences (2,671) 233 (414) 19 (14) (2,847) Capital allowances (71) 65 — — — (6) Total (5,122) 1,351 (891) (694) 119 (5,237) Of the short-term temporary differences of $3,888 million relating to deferred tax assets, $3,068 million relating to the US insurance operations is expected to be recovered in line with the run off of the in-force book, and the majority of the remaining balances are expected to be recovered within 5 years. The deferred tax balances are further analysed as follows: Deferred tax assets Deferred tax liabilities 31 Dec 2019 $m 31 Dec 2018 $m 31 Dec 2019 $m 31 Dec 2018 $m Asia operations 270 152 (2,146) (1,601) US operations 3,804 2,923 (3,091) (2,150) Other operations 1 70 — (20) Total continuing operations 4,075 3,145 (5,237) (3,771) Discontinued UK and Europe operations — 160 — (1,351) Total Group 4,075 3,305 (5,237) (5,122) The taxation regimes applicable across the Group often apply separate rules to trading and capital profits and losses. The distinction between temporary differences that arise from items of either a trading or capital nature may affect the recognition of deferred tax assets. For the 2019 results and financial position at 31 December 2019, the following tax benefits and losses have not been recognised: 31 Dec 2019 $m 31 Dec 2018 $m Tax benefits Losses Tax benefits Losses Continuing Discontinued Total group Continuing Discontinued Total group Trading losses 36 175 61 1 62 301 6 307 Capital losses 1 5 55 7 62 270 38 308 Of the benefit from unrecognised trading losses, $34 million will expire within the next ten years and the rest have no expiry date. Some of the Group’s businesses are located in jurisdictions in which a withholding tax charge is incurred upon the distribution of earnings. At 31 December 2019, deferred tax liabilities of $247 million (2018: $149 million from continuing operations) have not been recognised in respect of such withholding taxes as the Group is able to control the timing of the distributions and it is probable that the timing differences will not reverse in the foreseeable future.

Defined benefit pension schemes

Defined benefit pension schemes	12 Months Ended
	Dec. 31, 2019
Defined benefit pension schemes
Defined benefit pension schemes	C9 Defined benefit pension schemes The Group has historically operated a number of defined benefit pension schemes in the UK, with all pension surplus and deficit attributable to subsidiaries of M&G plc except for 30 per cent of the surplus attaching to the Prudential Staff Pension Scheme (PSPS), which was allocated to Prudential plc. In preparation for the demerger of M&G plc, at 30 June 2019, the 30 per cent of surplus attaching to PSPS was formally reallocated to M&GPrudential Services Limited. All UK schemes left the Group upon the demerger of M&G plc and Prudential plc will incur no further costs in respect of these schemes. Outside of the UK, there are two small defined benefit schemes in Taiwan which have negligible deficits.

Share capital, share premium an

Share capital, share premium and own shares	12 Months Ended
	Dec. 31, 2019
Share capital, share premium and own shares
Share capital, share premium and own shares	C10 Share capital, share premium and own shares Shares are classified as equity when their terms do not create an obligation to transfer assets. Amounts recorded in share capital represent the nominal value of the shares issued. The difference between the proceeds received on issue of the shares, net of share issue costs, and the nominal value of the shares issued, is credited to share premium. Where the Company purchases shares for the purposes of employee incentive plans, the consideration paid, net of issue costs, is deducted from retained earnings. Upon issue or sale any consideration received is credited to retained earnings net of related costs. 2019 2018 Issued shares of 5p each Number of ordinary Share Share Number of ordinary Share Share fully paid shares capital premium shares capital premium $m $m $m $m Balance at 1 January 2,593,044,409 166 2,502 2,587,175,445 175 2,635 Shares issued under share-based schemes 8,115,540 — 22 5,868,964 1 22 Impact of change in presentation currency — 6 101 — (10) (155) Balance at 31 December 2,601,159,949 172 2,625 2,593,044,409 166 2,502 Options outstanding under save as you earn schemes to subscribe for shares at each year end shown below are as follows: Number of shares to Share price range subscribe for from to Exercisable by year 31 Dec 2019 3,805,447 1,104 p 1,455 p 31 Dec 2018 4,885,804 901 p 1,455 p Transactions by Prudential plc and its subsidiaries in Prudential plc shares The Group buys and sells Prudential plc shares (‘own shares’) either in relation to its employee share schemes or up until the demerger of its UK and Europe operations via transactions undertaken by authorised investment funds that the Group is deemed to control. The cost of own shares of $183 million at 31 December 2019 (31 December 2018: $217 million) is deducted from retained earnings. The Company has established trusts to facilitate the delivery of shares under employee incentive plans. At 31 December 2019, 8.4 million (31 December 2018: 9.6 million) Prudential plc shares with a market value of $161 million (31 December 2018: $172 million) were held in such trusts, all of which are for employee incentive plans. The maximum number of shares held during the year was 14.1 million which was in March 2019. Within the trusts, shares are notionally allocated by business unit reflecting the employees to which the awards were made. On demerger, shares allocated to M&G plc were transferred to a separate trust established by M&G plc. The Company purchased the following number of shares in respect of employee incentive plans. The shares purchased each month are as follows: Number 2019 share price Number 2018 share price of shares Low High Cost* of shares Low High Cost* £ £ $ £ £ $ January 51,555 19.18 19.40 1,378,409 February 55,765 17.91 18.10 1,402,089 March 55,623 18.25 18.54 1,432,155 April 1,664,334 16.67 17.95 40,997,710 May 63,334 18.91 19.38 1,636,433 June 181,995 18.21 18.65 4,432,511 July 55,888 17.68 17.86 1,308,608 August 60,384 18.04 18.10 1,404,285 September 82,612 16.95 16.98 1,829,814 October 148,209 15.62 16.84 3,223,238 November 67,162 15.95 15.96 1,382,514 December 73,744 13.99 14.30 1,323,949 Total 2,560,605 61,751,715 * Prior to the demerger of UK and Europe operations in October 2019, the Group consolidated a number of authorised investment funds of M&G plc that hold shares in Prudential plc. In the prior year, at 31 December 2018, the total number of shares held by these funds was 3.0 million and the cost of acquiring these shares of $25 million was included in the cost of own shares. The market value of these shares as at 31 December 2018 was $53 million. These funds were deconsolidated upon the demerger. All share transactions were made on an exchange other than the Stock Exchange of Hong Kong. Other than set out above, the Group did not purchase, sell or redeem any Prudential plc listed securities during 2019 or 2018.

Provisions

Provisions	12 Months Ended
	Dec. 31, 2019
Provisions
Provisions	C11 Provisions 31 Dec 2019 $m 31 Dec 2018 $m Provision in respect of defined benefit pension schemes C9 1 222 Other provisions note 465 1,151 Total provisions 466 1,373 Analysed as: Continuing operations Discontinued UK and Europe operations Note Analysis of movement in other provisions: 2019 $m 2018 $m Balance at 1 January 1,151 1,275 Demerger of UK and Europe operations (725) — Charged to income statement: Additional provisions 188 307 Unused amounts released (7) (24) Utilisation during the year (154) (349) Exchange differences 12 (58) Balance at 31 December 465 1,151 Other provisions for continuing operations comprise staff benefits provisions of $408 million (31 December 2018: $364 million) that are generally expected to be paid out within the next three years and other provisions of $57 million (31 December 2018: $63 million).

Capital

Capital	12 Months Ended
	Dec. 31, 2019
Capital
Capital	C12 Capital C12.1 Group objectives, policies and processes for managing capital (i) Capital measure The Group manages its Group LCSM available capital as its measure of capital. At 31 December 2019 estimated Group shareholder LCSM available capital is $14.0 billion (31 December 2018: $13.5 billion). (ii) External capital requirements Following the demerger of the UK and Europe operations from Prudential plc, the Hong Kong Insurance Authority (IA) has assumed the role of the group-wide supervisor for the Prudential Group with the Group no longer subject to Solvency II capital requirements. Ultimately, Prudential plc will become subject to the Group Wide Supervision (GWS) framework which is currently under development by the Hong Kong IA and is expected to be finalised in the second half of 2020. Until Hong Kong’s GWS framework comes into force, Prudential will apply the local capital summation method (LCSM) that has been agreed with the Hong Kong IA to determine group regulatory capital requirements (both minimum and prescribed levels). The LCSM surplus represents the summation of available capital across local solvency regimes for regulated entities of the Group and IFRS net assets (with some adjustments) for non-regulated entities less the summation of local statutory capital requirements across the Group, with no allowance for diversification between business operations. (iii) Meeting of capital management objectives The Group minimum capital requirement has been met during 2019. Prior to the demerger of the UK and Europe operations, the Group capital requirement was met in accordance with the Solvency II regime. As well as holding sufficient capital to meet LCSM requirements at Group level, the Group also closely manages the cash it holds within its central holding companies so that it can: - Maintain flexibility, fund new opportunities and absorb shock events; - Fund dividends; and - Cover central costs and debt payments. More details on holding company cash flows and balances are given in section I(iii) of the Additional unaudited financial information. Reserve adequacy testing under a range of scenarios and dynamic solvency testing is carried out, including under certain scenarios mandated by the US and Asia regulators. The Group manages its assets, liabilities and capital locally, in accordance with local regulatory requirements and reflecting the different types of liabilities in each business unit. As a result of the diversity of products offered by Prudential and the different regulatory regimes under which it operates, the Group employs differing methods of asset/liability and capital management, depending on the business concerned. The sensitivity of liabilities and other components of total capital vary depending upon the type of business concerned and this conditions the approach to asset/liability management. C12.2 Local capital regulations (i) Asia insurance operations The local valuation basis for the assets, liabilities and capital requirements of significant operations in Asia are: China JV A risk-based capital, risk management and governance framework, known as the China Risk Oriented Solvency System (C-ROSS), applies in China. Under C-ROSS, insurers are required to maintain a core solvency ratio (core capital over minimum capital) and a comprehensive solvency ratio (available capital over minimum capital) of not lower than 50 per cent and 100 per cent, respectively. The China Banking Insurance Regulatory Commission is in the process of reviewing the C-ROSS formulae and parameters. The exact timing of updates is uncertain. The actual capital is the difference between the admitted assets and admitted liabilities with trading and available-for-sale assets marked-to-market and other assets at book value. Policyholder liabilities are based on a gross premium valuation method using best estimate assumptions with a separate risk margin. Hong Kong The capital requirements set out in the regulations vary by underlying risk type and duration of liabilities, but are generally determined as a percentage of mathematical reserves and capital at risk. Mathematical reserves are based on a net premium valuation method using assumptions which include a suitable margin for prudence. The valuation interest rate used to calculate these reserves is subject to a maximum that reflects a blend between the risk-adjusted portfolio yield and the reinvestment yield. The approach used to determine the reinvestment yield for reserving allows for average yields thus the impact of movements in interest rates are reflected in the valuation interest rate over time. The available capital is based on assets that are marked-to-market. The Hong Kong IA is in the process of developing a risk-based capital framework, targeted to be introduced by 2024, and has performed several quantitative impact studies over the past few years. Indonesia Solvency capital is determined using a risk-based capital approach. The available capital is based on assets that are marked-to-market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. Liabilities are zeroised at a policy level (i.e. negative liabilities are not permitted at a policy level). For unit-linked policies an unearned premium reserve is established. Malaysia A risk-based capital framework applies in Malaysia. The local regulator, Bank Negara Malaysia (BNM), has set a Supervisory Target Capital Level of 130 per cent below which supervisory actions of increasing intensity will be taken. Each insurer is also required to set its own Individual Target Capital Level to reflect its own risk profile and this is expected to be higher than the Supervisory Target Capital Level. The available capital is based on assets that are marked-to-market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. Liabilities are zeroised at a fund level (i.e. negative liabilities are not permitted at a fund level). The BNM has initiated a review of its RBC framework. An exposure draft on valuation of liabilities was issued in December 2019 to gather industry feedback. The exact timing of implementation of potential revisions is uncertain. Market liberalisation measures were introduced by BNM in April 2009, which increases the limit from 49 per cent to 70 per cent on foreign equity ownership for insurance companies and Takaful operators in Malaysia. A higher foreign equity limit beyond 70 per cent for insurance companies will be considered by BNM on a case by case basis for companies who support expansion of insurance provision to the most vulnerable in Malaysian society. Singapore A risk-based capital framework applies in Singapore. The regulator also has the authority to direct that the insurer satisfies additional capital adequacy requirements in addition to those set forth under the Singapore Insurance Act if it considers such additional requirements appropriate. The available capital is based on assets that are marked-to- market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. Liabilities are zeroised at a policy level (i.e. negative liabilities are not permitted at a policy level). The updated risk-based capital framework (RBC2) will come into effect on 31 March 2020. (ii) US insurance operations The regulatory framework for Jackson is governed by the requirements of the US NAIC-approved Risk-Based Capital standards. Under these requirements life insurance companies report using a formula-based capital standard, which includes components calculated by applying after-tax factors to various asset, premium and reserve items and a separate model-based component for market risk and interest rate risk associated primarily with variable annuity products. The 31 December 2019 Jackson local statutory results reflect early adoption of the NAIC regulatory framework reforms at the valuation date as agreed with the Department of Insurance Financial Services (DIFS), and Jackson’s decision not to renew its long-standing permitted practice with the DIFS, which allowed certain derivative instruments, taken out to protect Jackson against declines in long-term interest rates, to be included at book value in the local statutory returns. At 31 December 2019, these derivatives were held at fair value. (iii) Asset management operations – regulatory and other surplus Certain asset management subsidiaries of the Group are subject to local regulatory requirements. The movement in the year of the estimated surplus regulatory capital position of those subsidiaries, combined with the movement in the IFRS basis shareholders’ funds for unregulated asset management operations, is as follows: 2019 $m 2018 $m Eastspring Total asset Total asset Regulatory and other surplus Investments US M&G management management Balance at 1 January 374 51 846 1,271 1,185 Demerger of UK and Europe operations (846) (846) — Gains during the year 214 24 — 238 701 Movement in capital requirement (32) — — (32) (7) Capital injection 20 (30) — (10) 135 Distributions made to the parent company (173) (40) — (213) (531) Exchange and other movements (27) 1 — (26) (212) Balance at 31 December 376 6 — 382 1,271 C12.3 Transferability of available capital For Asia, the amounts retained within the insurance companies are at levels that provide an appropriate level of capital strength in excess of the local regulatory minimum. The businesses in Asia may, in general, remit dividends to parent entities, provided the statutory insurance fund meets the local regulatory solvency requirements and there are sufficient statutory accounting profits. For with-profits funds, the excess of assets over liabilities is retained within the funds, with distribution to shareholders tied to the shareholders’ share of declared bonuses. For Jackson, capital retention is maintained at a level consistent with an appropriate rating by Standard & Poor’s (currently rated AA-). Jackson can pay dividends on its capital stock only out of earned surplus unless prior regulatory approval is obtained. Furthermore, dividends that exceed the greater of statutory net gain from operations less net realised investments losses for the prior year or 10 per cent of Jackson’s prior year end statutory surplus, excluding any increase arising from the application of permitted practices, require prior regulatory approval. Available capital of the non-insurance business units is transferable after taking account of an appropriate level of operating capital, based on local regulatory solvency requirements, where relevant.

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2019
Property, plant and equipment
Property, plant and equipment	C13 Property, plant and equipment Property, plant and equipment comprise Group occupied properties and tangible assets. Following the adoption of IFRS 16 on 1 January 2019 (as described in note A3), property, plant and equipment also includes right-of-use assets for operating leases of properties occupied by the Group and leases of equipment and other tangible assets. All property, plant and equipment, including the right-of-use assets under operating leases, are held at cost less cumulative depreciation calculated using the straight-line method. The Group does not have any right-of-use assets that would meet the definition of investment property. As at 31 December 2019, total right-of-use assets comprised $569 million of property and $24 million of non-property assets, of which $18 million are attributable to shareholders. Extension and termination options are included in a number of property and equipment leases across the Group. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. The Group assesses at lease commencement whether it is reasonably certain to exercise the option. This assertion is revisited if there is a material change in circumstances. The undiscounted value of lease payments beyond the break period not recognised in the lease liabilities as at 31 December 2019 is $185 million. A reconciliation of the carrying amount of these items from the beginning of the year to the end of the year is as follows: 2019 $m 2018 $m Group Group occupied Tangible Right-of- occupied Tangible property assets use assets Total property assets Total Balance at 1 January Cost 525 2,089 — 2,614 496 1,408 1,904 Accumulated depreciation (105) (714) — (819) (97) (740) (837) Opening net book amount 420 1,375 — 1,795 399 668 1,067 Demerger of UK and Europe operations (143) (1,170) — (1,313) Recognition of right-of-use asset on initial application of IFRS 16 — — 527 527 Arising on acquisitions of subsidiaries 6 13 1 20 6 691 697 Additions 1 63 196 260 47 339 386 Depreciation and impairment charge (9) (77) (141) (227) (14) (170) (184) Disposals and transfers — (11) 1 (10) (11) (92) (103) Effect of movements in exchange rates — 4 9 13 (7) (61) (68) Balance at 31 December 275 197 593 1,065 420 1,375 1,795 Representing: Cost 351 687 734 1,772 525 2,089 2,614 Accumulated depreciation (76) (490) (141) (707) (105) (714) (819) Closing net book amount 275 197 593 1,065 420 1,375 1,795 Analysed as: Continuing operations 277 205 482 Discontinued operations 143 1,170 1,313 420 1,375 1,795 The Group has non-cancellable property subleases which have been classified as operating leases in 2019 under IFRS 16. The sublease rental income received for the leases is $11 million in 2019. Tangible assets from continuing operations At 31 December 2019, of the $197 million (31 December 2018: $205 million) tangible assets, $83 million (31 December 2018: $94 million) were held by the Group’s with-profits businesses. Capital expenditure: property, plant and equipment by segment The capital expenditure in 2019 of $64 million (2018: $386 million of which $133 million related to continuing operations) arose as follows: $44 million (2018: $69 million) in Asia and $5 million (2018: $62 million) in US with the remaining balance of $15 million (2018: $2 million) arising from unallocated corporate expenditure.

Gain (loss) on disposal of busi

Gain (loss) on disposal of business and corporate transactions	12 Months Ended
	Dec. 31, 2019
Gain (loss) on disposal of business and corporate transactions
Gain (loss) on disposal of business and corporate transactions	D1 Gain (loss) on disposal of business and corporate transactions Income and expenses of entities sold during the period are included in the income statement up to the date of disposal. The gain or loss on disposal is calculated as the difference between sale proceeds net of selling costs, less the net assets of the entity at the date of disposal, adjusted for foreign exchange movements attaching to the sold entity that are required to be recycled to the income statement under IAS 21. D1.1 2019 $m 2018 $m 2017 $m Gain on disposals note (i) 265 — — Other transactions note (ii) (407) (107) Total gain (loss) on disposal of business from continuing operations (142) (107) Notes (i) In 2019, the $265 million gain on disposals principally relates to profits arising from a reduction in the Group’s stake (from 26 per cent to 22 per cent) in its associate in India, ICICI Prudential Life Insurance Company, and the disposal of Prudential Vietnam Finance Company Limited, a wholly owned subsidiary that provides consumer finance. (ii) In 2019, the $(407) million other transactions reflects costs related to the demerger of M&G plc from Prudential plc. These include the following amounts: - $(78) million transaction related costs, principally fees to advisors; - $(182) million being the fee paid to the holders of two subordinated debt instruments as discussed in note C6.1(i); and - $(147) million for one-off costs arising from the separation of the M&G plc business from Prudential plc. In 2018, the $(107) million other transactions primarily related to exiting the NPH broker-dealer business in the US and costs related to the preparation for the demerger of M&G plc. D1.2 Other corporate transactions Acquisition of Thanachart Fund Management Co., Ltd. in Thailand On 27 December 2019, the Group completed its acquisition of 50.1 per cent of Thanachart Fund Management Co., Ltd. (TFUND) from Thanachart Bank Public Company Ltd. (TBANK) and Government Savings Bank, with TBANK holding the remaining 49.9 per cent stake of TFUND. The acquisition complements the Group’s purchase of 65 per cent of TMB Asset Management, now TMBAM Eastspring, in September 2018. The terms of the sale agreement include an option for the Group to increase its ownership to 100 per cent in the future. The Group has recognised, in line with IFRS, a financial liability and a reduction in shareholders’ equity of $130 million as of the acquisition date for the option, being the discounted expected consideration payable for the remaining 49.9 per cent. The fair value of the acquired assets, assumed liabilities and resulting goodwill are shown in the table below: $m Assets Other assets 28 Cash and cash equivalents 2 Total assets 30 Other liabilities (7) Non-controlling interests* (141) Net assets acquired and liabilities assumed (118) Goodwill arising on acquisition* 260 Purchase consideration 142 The goodwill on acquisition of $260 million is mainly attributable to the expected benefits from new customers and synergies. Refer to note C5.1 for changes to the carrying amount of goodwill during the year. The Group has chosen to apply the full goodwill method under IFRS 3, ' Business Combinations ' for this acquisition, with non-controlling interests being measured at fair value on the acquisition date.

Discontinued UK and Europe oper

Discontinued UK and Europe operations	12 Months Ended
	Dec. 31, 2019
Discontinued UK and Europe operations
Discontinued UK and Europe operations	D2 Discontinued UK and Europe operations On 21 October 2019, the Group completed the demerger of its UK and Europe operations (M&G plc) from the Group, resulting in two separately listed companies. The Group’s UK and Europe operations have been reclassified as discontinued operations in these consolidated financial statements in accordance with IFRS 5 ‘Non-current assets held for sale and discontinued operations’. The results and cash flows for the discontinued UK and Europe operations presented in the consolidated financial statements for the period of ownership up to the demerger in October 2019 are analysed below. Income statement 2019 $m 2018 $m 2017 $m Earned premiums, net of reinsurance 10,920 (101) 15,565 Investment return and other income note (1) 22,292 (2,386) 20,550 Total revenue, net of reinsurance 33,212 (2,487) 36,115 Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance (26,975) 6,645 (29,677) Acquisition costs and other expenditure (4,143) (3,296) (4,230) Total charges, net of reinsurance (31,118) 3,349 (33,907) Discontinued UK and Europe operations' profit before tax 2,094 862 2,208 Re-measurement of the UK and Europe operations on demerger note (2) 188 — — Cumulative exchange loss recycled from other comprehensive income (2,668) — — (Loss) profit before tax (386) 862 2,208 Tax (charge) credit note (3) (775) 280 (875) (Loss) profit for the year from discontinued operations (1,161) 1,142 1,333 Notes (1) Includes share of profits from joint ventures and associates, net of related tax. (2) The re-measurement of the discontinued UK and Europe operations on demerger reflects the difference between the fair value of the UK and Europe operations and its net assets at the date of the demerger. (3) The tax (charge) credit wholly relates to the tax on the ordinary profits of the discontinued UK and Europe operations. Other comprehensive income 2019 $m 2018 $m 2017 $m Cumulative exchange loss recycled through profit or loss 2,668 — — Other items, net of related tax 203 (605) 1,023 Other comprehensive income for the year from discontinued operations, net of related tax 2,871 (605) 1,023 The profit and other comprehensive income for the period from the discontinued UK and Europe operations were wholly attributable to the equity holders of the Company. Cash flows 2019 $m 2018 $m 2017 $m Cash flows from operating activities 2,375 5 318 Cash flows from investing activities (454) (478) 1,316 Cash flows from financing activities * — (137) (16) Cash and cash equivalents divested on demerger (7,611) — — Net cash flows in the year (5,690) (610) 1,618 Net cash flows between discontinued and continuing operations* (436) (842) (847) Cash and cash equivalents at beginning of year 6,048 7,857 6,258 Effect of exchange rate changes on cash and cash equivalents 78 (357) 828 Cash and cash equivalents on the consolidated statement of financial position at end of year — 6,048 7,857 * The net cash flows between discontinued and continuing operations represents the net cash paid for dividend and other items from discontinued operations to continuing operations. In 2019, the net cash flows of $(436) million primarily include pre-demerger dividend of $(3,841) million, other dividends of $(684) million offset by payment for the transfer of debt to M&G plc from Prudential plc prior to the demerger of $4,161 million.

Contingencies and related oblig

Contingencies and related obligations	12 Months Ended
	Dec. 31, 2019
Contingencies and related obligations
Contingencies and related obligations	D3 Contingencies and related obligations Litigation and regulatory matters The Group is involved in various litigation and regulatory proceedings. These may from time to time include class actions involving Jackson. While the outcome of such litigation and regulatory issues cannot be predicted with certainty, the Company believes that their ultimate outcome will not have a material adverse effect on the Group’s financial condition, results of operations or cash flows. Guarantees Guarantee funds in the US provide for payments to be made to policyholders on behalf of insolvent life insurance companies and are financed by payments assessed on solvent insurance companies based on location, volume and type of business. The estimated reserve for future guarantee fund assessments is not significant. The directors believe that sufficient provision has been made on the balance sheet for all anticipated payments for known insolvencies. The Group has provided other guarantees and commitments to third-parties entered into in the normal course of business but the Group does not consider that the amounts involved are significant. Intra-group capital support arrangements Prudential has put in place intra-group arrangements to formalise undertakings by Prudential to the regulators of the Hong Kong subsidiaries regarding their solvency levels .

Post balance sheet events

Post balance sheet events	12 Months Ended
	Dec. 31, 2019
Post balance sheet events
Post balance sheet events	D4 Post balance sheet events Dividends The 2019 second interim ordinary dividend approved by the Board of Directors after 31 December 2019 is as described in note B6 . Coronavirus outbreak The novel coronavirus outbreak, with thousands of cases reported in 2020 to date and the virus spreading to countries across Asia and the world, has disrupted the activity in the markets in which the Group operates and adversely impacted the economic conditions in the year to date. Given these conditions, lower levels of new business activity in all affected markets are to be expected. Further details on the Group capital position are set out in note I(i) of the Additional unaudited financial information. The Group continues to monitor closely the development of the coronavirus outbreak and its impact on market conditions. If current economic conditions persist, management could take additional actions to mitigate the impact. These actions include, but are not limited to, rebalancing investment portfolios, further market risk hedging, increased use of reinsurance, repricing of in-force benefits, changes to new business pricing and the mix of new business being sold. It is not practicable to quantify the potential financial effect of the outbreak on the Group at this stage. Bancassurance agreement On 19 March 2020, the Group announced it had signed a new bancassurance agreement with TMB Bank for a period of 15 years. This extended exclusive partnership agreement will commence on 1 January 2021 and until this time the current arrangement with Thanachart Bank will continue. This agreement requires the novation of TMB Bank's current bancassurance distribution agreement with another insurance group. The change in arrangements will cost Thai Baht 24.5 billion (equivalent to USD754 million based on exchange rate at 18 March 2020), which will be paid in two instalments, with Thai Baht 12.0 billion due in April 2020 and the remainder on 1 January 2021. The funding for this transaction will utilise a mixture of Prudential Asia’s existing resources and Prudential plc own resources, potentially also including new debt. In line with the Group's policy, the amounts described above will be capitalised as an intangible asset representing distribution rights.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2019
Related party transactions
Related party transactions	D5 Related party transactions Transactions between the Company and its subsidiaries are eliminated on consolidation. The Company has transactions and outstanding balances with certain unit trusts, Open-Ended Investment Companies (OEICs), collateralised debt obligations and similar entities that are not consolidated and where a Group company acts as manager, which are regarded as related parties for the purposes of IAS 24. The balances are included in the Group’s statement of financial position at fair value or amortised cost in accordance with IAS 39 classifications. The transactions are included in the income statement and include amounts paid on issue of shares or units, amounts received on cancellation of shares or units and amounts paid in respect of the periodic charge and administration fee. In addition, there are no material transactions between the Group’s joint ventures and associates, which are accounted for on an equity method basis, and other Group companies. Key management personnel of the Company, as described in note B2.3, may from time to time purchase insurance, asset management or annuity products marketed by Group companies in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons. In 2019, 2018 and 2017, other transactions with key management personnel were not deemed to be significant both by virtue of their size and in the context of the individuals’ financial positions. All of these transactions were on terms broadly equivalent to those that prevailed in arm’s length transactions. Additional details on the Directors’ interests in shares, transactions or arrangements are given in ‘Compensation and Employees’. Key management remuneration is disclosed in note B2.3.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2019
Commitments
Commitments	D6 Commitments The Group has provided, from time to time, certain guarantees and commitments to third parties. At 31 December 2019, Asia operations had unfunded commitments of $2,013 million (31 December 2018: $1,554 million) primarily related to investments in infrastructure funds and alternative investment funds. At 31 December 2019, Jackson had unfunded commitments of $889 million (31 December 2018: $846 million) related to investments in limited partnerships and $796 million (31 December 2018: $440 million) related to commercial mortgage loans and other fixed income securities. These commitments were entered into in the normal course of business and a material adverse impact on the operations is not expected to arise from them.

Investments in subsidiary under

Investments in subsidiary undertakings, joint ventures and associates	12 Months Ended
	Dec. 31, 2019
Investments in subsidiary undertakings, joint ventures and associates
Investments in subsidiary undertakings, joint ventures and associates	D7 Investments in subsidiary undertakings, joint ventures and associates (a) Basis of consolidation The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the following are met: (1) it has power over an investee; (2) it is exposed to, or has rights to, variable returns from its involvement with the investee; and (3) it has ability to use its power over the investee to affect its own returns. (i) Subsidiaries Subsidiaries are those investees that the Group controls. The majority of the Group’s subsidiaries are corporate entities, but the Group’s insurance operations also invest in a number of limited partnerships. The Group performs a re-assessment of consolidation whenever there is a change in the substance of the relationship between the Group and an investee. Where the Group is deemed to control an entity it is treated as a subsidiary and its results, assets and liabilities are consolidated. Where the Group holds a minority share in an entity, with no control over the entity, the investments are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. (ii) Joint ventures and associates Joint ventures are joint arrangements arising from a contractual agreement whereby the Group and other investors have joint control of the net assets of the arrangement. In a number of these arrangements, the Group’s share of the underlying net assets may be less than 50 per cent but the terms of the relevant agreement make it clear that control is jointly exercised between the Group and the third party. Associates are entities over which the Group has significant influence, but it does not control. Generally it is presumed that the Group has significant influence if it holds between 20 per cent and 50 per cent voting rights of the entity. With the exception of those referred to below, the Group accounts for its investments in joint ventures and associates by using the equity method of accounting. The Group’s share of profit or loss of its joint ventures and associates is recognised in the income statement and its share of movements in other comprehensive income is recognised in other comprehensive income. The equity method of accounting does not apply to investments in associates and joint ventures held by the Group’s insurance or investment funds. This includes venture capital business, mutual funds and unit trusts and which, as allowed by IAS 28, ‘Investments in Associates and Joint Ventures’, are carried at fair value through profit or loss. (iii) Structured entities Structured entities are those that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. Voting rights relate to administrative tasks. Relevant activities are directed by means of contractual arrangements. The Group invests in structured entities such as: - Collective investment schemes; - Limited partnerships; - Variable interest entities; - Investment vehicles within separate accounts offered through variable annuities; - Collateralised debt obligations; - Mortgage-backed securities; and - Similar asset-backed securities. Collective investment schemes The Group invests in collective investment schemes, which invest mainly in equities, bonds, cash and cash equivalents, and properties. The Group’s percentage ownership in these entities can fluctuate on a daily basis according to the participation of the Group and other investors in them. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity exceeds 50 per cent, the Group is judged to have control over the entity. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity is between 20 per cent and 50 per cent, the facts and circumstances of the Group’s involvement in the entity are considered, including the rights to any fees earned by the asset manager from the entity, in forming a judgement as to whether the Group has control over the entity. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity is less than 20 per cent, the Group is judged to not have control over the entity. - Where the entity is managed by an asset manager outside the Group, an assessment is made of whether the Group has existing rights that gives it the ability to direct the current activities of the entity and therefore control the entity. In assessing the Group’s ability to direct an entity, the Group considers its ability relative to other investors. The Group has a limited number of investment funds where it considers it has such ability. Where the Group is deemed to control these entities, they are treated as a subsidiary and are consolidated, with the interests of investors other than the Group being classified as liabilities, and appear as net asset value attributable to unit holders of consolidated investment funds. Where the Group does not control these entities (as it is deemed to be acting as an agent) and they do not meet the definition of associates, they are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. Where the Group’s asset manager sets up investment funds as part of asset management operations, the Group’s interest is limited to the administration fees charged to manage the assets of such entities. With no participation in these entities, the Group does not retain risks associated with investment funds. For these investment funds, the Group is not deemed to control the entities but to be acting as an agent. The Group generates returns and retains the ownership risks in investment vehicles commensurate to its participation and does not have any further exposure to the residual risks of these investment vehicles. Jackson’s separate account assets These are investment vehicles that invest contract holders’ premiums in equity, fixed income, bonds and money market mutual funds. The contract holder retains the underlying returns and the ownership risks related to the underlying investments. The shareholder’s economic interest in separate accounts is limited to the administrative fees charged. The separate accounts are set up as separate regulated entities governed by a Board of Governors or trustees for which the majority of the members are independent of Jackson or any affiliated entity. The independent members are responsible for any decision making that impacts contract holders’ interest and govern the operational activities of the entities’ advisers, including asset managers. Accordingly, the Group does not control these vehicles. These investments are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. Limited partnerships The Group’s insurance operations invest in a number of limited partnerships, either directly or through unit trusts, through a mix of capital and loans. These limited partnerships are managed by general partners, in which the Group holds equity. Such interest in general partners and limited partnerships provide the Group with voting and similar rights to participate in the governance framework of the relevant activities in which limited partnerships are engaged in. Accounting for the limited partnerships as subsidiaries, joint ventures, associates or other financial investments depends on the terms of each partnership agreement and the shareholdings in the general partners. Other structured entities The Group holds investments in mortgage-backed securities, collateralised debt obligations and similar asset-backed securities, the majority of which are actively traded in a liquid market. The Group consolidates the vehicles that hold the investments where the Group is deemed to control the vehicles. When assessing control over the vehicles, the factors considered include the purpose and design of the vehicle, the Group’s exposure to the variability of returns and the scope of the Group’s ability to direct the relevant activities of the vehicle including any kick-out or removal rights that are held by third parties. The outcome of the control assessment is dependent on the terms and conditions of the respective individual arrangements. The majority of such vehicles are not consolidated. In these cases the Group is not the sponsor of the vehicles in which it holds investments and has no administrative rights over the vehicles’ activities. The Group generates returns and retains the ownership risks commensurate to its holding and its exposure to the investments. Accordingly the Group does not have power over the relevant activities of such vehicles and all are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. The table below provides aggregate carrying amounts of the investments in unconsolidated structured entities reported in the Group’s statement of financial position: 31 Dec 2019 $m 31 Dec 2018 $m Separate Other Separate Other Statement of financial position line Investment account structured Investment account structured items funds assets entities funds assets entities Equity securities and holdings in collective investment schemes 23,620 195,070 — 27,021 163,301 — Debt securities — — 6,574 — — 14,113 Total 23,620 195,070 6,574 27,021 163,301 14,113 The Group generates returns and retains the ownership risks in these investments commensurate to its participation and does not have any further exposure to the residual risks or losses of the investments or the vehicles in which it holds investments. As at 31 December 2019, the Group does not have an agreement, contractual or otherwise, or intention to provide financial support to structured entities that could expose the Group to a loss. (a) Dividend restrictions and minimum capital requirements Certain Group subsidiaries and joint ventures are subject to restrictions on the amount of funds they may transfer in the form of cash dividends or otherwise to the parent company. Under UK company law, UK companies can only declare dividends if they have sufficient distributable reserves. Jackson is subject to state laws that limit the dividends payable to its parent company based on statutory capital, surplus and prior year earnings. Dividends in excess of these limitations require prior regulatory approval. The Group’s subsidiaries, joint ventures and associates in Asia may remit dividends to the Group, in general, provided the statutory insurance fund meets the capital adequacy standard required under local statutory regulations and has sufficient distributable reserves. For further details on local capital regulations in Asia please refer to note C12.2. (b) Investments in joint ventures and associates The Group has shareholder-backed joint venture insurance and asset management businesses in China with CITIC Group and a joint venture asset management business in India with ICICI Bank. In addition, there is an asset management joint venture in Hong Kong with Bank of China International Holdings Limited (BOCI) and Takaful insurance joint venture in Malaysia. For the Group’s joint ventures that are accounted for by using the equity method, the net of tax results of these operations are included in the Group’s profit before tax. The Group’s associates, which are also accounted for under the equity method, include the Indian insurance entity (with the majority shareholder being ICICI Bank). In addition, the Group has investments in collective investment schemes, funds holding collateralised debt obligations, property funds where the Group has significant influence. As allowed under IAS 28, these investments are accounted for on a fair value through profit or loss basis. The aggregate fair value of associates accounted for at fair value through profit or loss, where there are published price quotations, is approximately $0.7 billion at 31 December 2019 (31 December 2018: $0.1 billion from continuing operations). For joint ventures and associates accounted for using the equity method, the 12 months financial information of these investments up to 31 December 2019 (covering the same period as that of the Group) has been used in these consolidated financial statements. The Group’s share of the profits (including short-term fluctuations in investment returns), net of related tax, and carrying amount of interest in joint ventures and associates, which are equity accounted as shown in the consolidated income statement at 31 December 2019 is $397 million (2018: $319 million; 2017: $233 million) for shareholder-backed business and comprises the following: Share of profits from joint ventures and associates, net of related tax 2019 $m 2018 $m 2017 $m Asia insurance operations 291 238 156 Asia asset management operations 106 81 77 Total segment and Group total 397 319 233 There is no other comprehensive income in the joint ventures and associates. There has been no unrecognised share of losses of a joint venture or associate that the Group has stopped recognising in the total income. The Group’s interest in joint ventures gives rise to no contingent liabilities or capital commitments that are material to the Group. (c) Related undertakings In accordance with Section 409 of the Companies Act 2006 a list of Prudential Group’s subsidiaries, joint ventures, associates and significant holdings (being holdings of more than 20 per cent) along with the classes of shares held, the registered office address and the country of incorporation and the effective percentage of equity owned at 31 December 2019 is disclosed below. The definitions of a subsidiary undertaking, joint venture and associate in accordance with the Companies Act 2006 are different from the definition under IFRS. As a result, the related undertakings included within the list below may not be the same as the undertakings consolidated in the Group IFRS financial statements. The Group’s consolidation policy is described in note A3.1(b). The Group also operates through branches. At 31 December 2019, there is no significant branch outside the UK. Direct subsidiary undertakings of the parent company, Prudential plc (shares held directly or via nominees) Key to share classes: Abbreviation Class of share held LBG Limited by Guarantee LPI Limited Partnership Interest MI Membership Interest MFS Mutual Fund Shares NSB Non-stock basis OS Ordinary Shares PI Partnership Interest PS Preference Shares U Units Name of entity Classes of Proportion Registered office address and country of incorporation Prudential Corporation Asia Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Other subsidiaries, joint ventures, associates and significant holdings of the Group – no shares held directly by the parent company, Prudential plc or its nominees Classes of shares Proportion Name of entity held held Registered office address and country of incorporation 95th Avenue Retail Building, LLC MI 100.00% 901 S., Ste. 201, Second St., Springfield, IL, 62704-7909, USA Aberdeen Standard Cash Creation Fund U 34.16% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Singapore Equity U 60.44% 20 Collyer Quay, #01-01, Singapore 049319 Aberforth Standard Global Opportunities Fund U 28.46% Allied Life Brokerage Agency, Inc LPI 100.00% 400 East Court Avenue, Des Moines, IA 50309, USA AMUNDI FTSE China A50 Index ETF U 38.67% 90, boulevard Pasteur, 75015 Paris, France BeGeneral Insurance S.A. OS 51.00% Immeuble WOODIN Center 1st Floor, Avenue Nogues, Plateaux, Abidjan, Cote d’Ivoire BeLife Insurance S.A. OS 50.93% Beneficial General Insurance S.A. OS 50.04% 1944 Blvd de la République, BP 2328, Douala, Cameroon Beneficial Life Insurance S.A. OS 51.00% Beneficial Life Insurance S.A. OS 50.99% 2963 Rue De La Chance Agbalepedogan, P.B. 1115, Lome, Togo BOCHK Aggressive Growth Fund U 65.61% 27/F, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Asia Pacific Equity Fund U 26.29% BOCHK Balanced Growth Fund U 55.31% BOCHK China Equity Fund U 71.35% BOCHK Conservative Growth Fund U 55.24% BOCHK Hong Kong Equity Fund U 21.94% BOCHK US Dollar Money Market Fund U 34.85% BOCI-Prudential Asset Management Limited OS 36.00% BOCI-Prudential Trustee Limited OS 36.00% 12/F & 25/F, Citicorp Centre, 18 Whitfield Road, Causeway Bay, Hong Kong Brier Capital LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Brooke (Holdco 1) Inc OS 100.00% 1105 North Market Street, Suite 1300, Wilmington, DE 19801, USA Brooke Life Insurance Company OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Centre Capital Non-Qualified Investors IV AIV Orion, LP LPI 27.47% 2711 Centreville Road, Suite 400, Wilmington, DE 19808, USA Centre Capital Non-Qualified Investors IV AIV-RA, L.P. LPI 44.55% Centre Capital Non-Qualified Investors IV, L.P. LPI 27.16% Centre Capital Non-Qualified Investors V AIV-ELS LP LPI 36.58% Centre Capital Non-Qualified Investors V LP LPI 37.66% CEP IV-A Chicago AIV LP LPI 23.93% 615 South Dupont Highway, Dover, DE 19901, USA CEP IV-A CWV AIV LP LPI 23.97% 850 New Burton Road, Suite 201, Dover, DE 19904, USA CEP IV-A Davenport AIV LP LPI 23.94% 615 South Dupont Highway, Dover, DE 19901, USA CEP IV-A Indy AIV LP LPI 23.94% CEP IV-A NMR AIV LP LPI 23.94% CEP IV-A WBCT AIV LP LPI 23.94% CITIC-CP Asset Management Co., Ltd. MI 26.95% Room 101-2, No.128 North Zhangjiabang Road, Pudong District, Shanghai, China CITIC-Prudential Fund Management Company Limited MI 49.00% Level 9, HSBC Building, Shanghai IFC, 8 Century Avenue, Pudong, Shanghai, China CITIC-Prudential Life Insurance Company Limited MI 50.00% 0507-0510, 1601-1616, East Tower, World Financial Centre, No.1 East Third Ring Middle Road, Chaoyang District, Beijing, 100020, China Clairvest Equity Partners IV-A LP LPI 23.90% 22 St Clair Avenue East, Suite 1700, Toronto, ON M4T 2S3, Canada Curian Capital, LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Curian Clearing LLC (Michigan) OS 100.00% Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Asset Management Korea Co. Ltd. OS 100.00% 15th Floor, Shinhan Investment Tower, 70 Yoidae-ro, Yeungdeungpo-gu, Seoul 07325, Korea Eastspring Global Smart Beta EMP Securities Investment Trust (H) U 71.97% Goodmorning Shinhan Tower 15F Yeoido Dong 23-2, Yeungdeungpo-gu Seoul 150-010, Korea Eastspring Global Smart Beta EMP Securities Investor Trust (USD) U 99.46% Eastspring Infrastructure Debt Fund L.P. PI 90.00% PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands Eastspring Investment Asia Real Estate Multi Asset Income Fund U 99.99% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investment Asia Sustainable Bond Fund U 100.00% Eastspring Investment Management (Shanghai) Company Limited OS 100.00% Unit 306-308, 3/F Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Investments - Global Growth Equity Fund U 73.57% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments - Global Low Volatility Equity Fund U 98.72% Eastspring Investments - Global Technology Fund U 82.24% Eastspring Investments - India Discovery Fund U 36.63% Eastspring Investments - Japan Fundamental Value Fund U 99.85% Eastspring Investments - Pan European Fund U 61.01% Eastspring Investments - US High Yield Bond Fund U 49.96% Eastspring Investments (Hong Kong) Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Eastspring Investments (Luxembourg) SA OS 100.00% 26 Boulevard Royal, L-2449, Luxembourg Eastspring Investments (Singapore) Limited OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Investments Asia Oceania High Dividend Equity Fund U 100.00% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Asia Oceania U&I Bond Fund U 99.93% Eastspring Investments Asia Pacific Equity Fund U 99.99% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asian Bond Fund U 53.60% Eastspring Investments Asian Dynamic Fund U 92.59% Eastspring Investments Asian Equity Fund U 85.19% Eastspring Investments Asian Equity Income Fund U 78.33% Eastspring Investments Asian High Yield Bond Fund U 39.86% Eastspring Investments Asian High Yield Bond MY Fund U 86.36% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Asian Infrastructure Equity Fund U 50.78% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asian Investment Grade Bond Fund U 99.93% Eastspring Investments Asian Low Volatility Equity Fund U 97.27% Eastspring Investments Asian Multi Factor Equity Fund U 100.00% Eastspring Investments Asian Property Securities Fund U 97.72% Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Investments China A Shares Growth Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Dragon Peacock Fund U 53.18% Eastspring Investments Emerging Markets Star Players U 36.99% Eastsring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Equity Income Fund U 20.89% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments European Inv Grade Bond Fund U 99.28% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Fund Management Limited Liability Company MI 100.00% 23rd Floor, Saigon Trade Center, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Eastspring Investments Global Emerging Markets Bond Fund U 97.03% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Equity Navigator Fund U 100.00% Eastspring Investments Global Market Navigator Fund U 99.68% Eastspring Investments Global Multi Asset Income Plus Growth Fund U 99.99% Eastspring Investments Greater China Equity Fund U 95.19% Eastspring Investments Hong Kong Equity Fund U 93.10% Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, Dover, DE 19904, USA Eastspring Investments India Consumer Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Equity Fund U 68.69% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments India Equity Open (Asset Growth Type) U 28.90% Eastsring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments India Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Infrastructure Equity Open Limited OS 100.00% Eastspring Investments Japan Dynamic MY Fund U 27.65% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Limited OS 100.00% Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-Ku, Tokyo, Japan Eastspring Investments MY Focus Fund U 21.40% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments North America Value Fund U 99.84% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investments Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund U 100.00% Eastspring Investments SICAV-FIS Universal USD Bond Fund U 100.00% Eastspring Investments SICAV-FIS Universal USD Bond II Fund U 100.00% Eastspring Investments Unit Trust - Dragon Peacock Fund U 97.59% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments US Bond Fund U 27.84% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments US Corporate Bond Fund U 70.82% Eastspring Investments US High Inv Grade Bond Fund U 91.67% Eastspring Investments US Investment Grade Bond Fund U 45.41% Eastspring Investments US Strategic Income Bond Fund U 100.00% Eastspring Investments US Total Return Bond Fund U 100.00% Eastspring Investments UT Singapore ASEAN Equity Fund U 99.76% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments UT Singapore Select Bond Fund U 77.80% Eastspring Investments Vietnam Navigator Fund U 71.42% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Eastspring Investments World Value Equity Fund U 92.88% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Overseas Investment Fund Management (Shanghai) Company Limited OS 100.00% Unit 306-308, 3/F., 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Real Assets Partners OS 100.00% PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands Eastspring Securities Investment Trust Co., Ltd. OS 99.54% 4th Floor, No.1 Songzhi Road, Taipei 110, Taiwan First State China Focus Fund U 66.58% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland First State Global Property A U 52.26% 38 Beach Road, #06-11 South Beach Tower, Singapore 189767 Fubon China Currency Fund U 20.59% 8F, No. 108, Sec 1, Tun Hwa, South Road, Taipei, Taiwan Furnival Insurance Company PCC Limited OS 100.00% PO Box 34, St Martin’s House Le Bordage, St Peter Port, Guernsey, GY1 4AU GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Hermitage Management LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Hyde Holdco 1 Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom ICICI Prudential Asset Management Company Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India ICICI Prudential Life Insurance Company Limited OS 22.11% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company OS 22.11% ICICI Prudential Trust Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India Invesco Fixed Maturity Selective Emerging Market Bonds 2024 U 61.60% 8F, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 68.28% INVEST Financial Company Insurance Agency LLC of Illinois OS 100.00% 208 South LaSalle Street, Chicago, IL 60604, USA iShares Core MSCI Europe U 21.26% State Street Fund Services (Ireland) Limited, 78 Sir John Rogerson's Quay, Dublin 2, Ireland iShares Fallen Angels High Yield Corporate Bond UCITS ETF Wing U 47.36% 79 Sir John Rogerson's Quay, Dublin 2, D02 RK 57, Ireland iShares S&P 500 Financials Sector UCITS U 22.98% iShares S&P 500 Utilities Sector UCITS ETF U 53.39% Jackson Charitable Foundation Inc NSB 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson Holdings LLC OS 100.00% 1105 North Market Street, Suite 1300, Wilmington, DE 19801, USA Jackson National Asset Management LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson National Life (Bermuda) Limited OS 100.00% Cedar House, Hamilton, Bermuda Jackson National Life Distributors LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA Jackson National Life Insurance Company OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson National Life Insurance Company of New York OS 100.00% 2900 Westchester Avenue, Suite 305, Purchase, NY 10577, USA Lasalle Property Securities SICAV-FIS U 99.97% 11-13 Boulevard de la Foire, L-1528 Luxembourg M&G Asia Property Trust U 99.97% 8 Marina Boulevard, 05-02 Marina Bay, Financial Centre Tower 1, Singapore, 018981 M&G Luxembourg European Strategic Value Fund U 50.24% 49 Avenue J.F. Kennedy, L-1855, Luxembourg M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% 10 Marina Boulevard, #31-03, Marina Bay, Financial Centre Tower 2, Singapore, 018983 Manulife Asia Pacific Bond Fund U 27.29% 9/F, No 89 Son Ren Road, Taipei, Taiwan Manulife China Dim Sum High Yield Bond Fund U 58.33% Manulife China Offshore Bond Fund U 39.57% Manulife USD High Yield Bond Fund U 37.47% Mission Plans of America, Inc OS 100.00% 1999 Bryan Street, Suite 900, Dallas, TX 75201, USA National Planning Holdings, LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 33.30% 101 Tower, 30F, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 42.14% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 25.01% North Sathorn Holdings Company Limited OS 100.00% 3 Rajanakarn Building, 20th Floor, South Sathorn Road, Yannawa Subdistrict, Sathorn District, Bangkok, Thailand PCA IP Services Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong PCA Life Assurance Co. Ltd. OS 99.79% 8th Floor, No.1 Songzhi Road, Taipei 11047, Taiwan PCA Reinsurance Co. Ltd. OS 100.00% Unit Level 13(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia PGDS (US One) LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA PPM America Capital Partners III, LLC MI 60.50% 874 Walker Road, Suite C, Dover, DE 19904, USA PPM America Capital Partners IV, LLC MI 34.50% PPM America Capital Partners V, LLC MI 34.00% PPM America Capital Partners VI, LLC MI 32.00% PPM America Private Equity Fund III LP LPI 50.06% PPM America Private Equity Fund IV LP LPI 49.97% PPM America Private Equity Fund V LP LPI 49.97% PPM America Private Equity Fund VI LP LPI 59.94% PPM America Private Equity Fund VII LP LPI 54.00% PPM America, Inc OS 100.00% PPM CLO 2 Ltd. OS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM CLO 2, LLC PS 100.00% 4001 Kennet Pike, Suite 301, Wilmington, DE, 19807, USA PPM CLO 2018-1 Ltd. PS 100.00% Queensgate House, South Church Street, George Town, Grand Cayman KY1-1102, Cayman Islands PPM CLO 3 Ltd. OS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM CLO 3, LLC PS 100.00% 4001 Kennet Pike, Suite 301, Wilmington, DE, 19807, USA PPM CLO 4 Ltd. PS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM Funds - PPM Core plus Fixed Income Fund MFS 100.00% 84 State Street, 6th Floor, Boston, MA 02109 PPM Funds - PPM Large Cap Value Fund MFS 99.96% PPM Funds - PPM Long Short Credit Fund MFS 100.00% PPM Funds - PPM Mid Cap Value Fund MFS 99.57% PPM Holdings, Inc OS 100.00% 774 Walker Road, Suite C, Dover, DE 19904, USA PPM Loan Management Company LLC MI 100.00% PPM Loan Management Holding Company LLC MI 100.00% Prenetics Limited PS 14.27% 7th Floor, Prosperity Millennia Plaza, 663 King’s Road, North Point, Hong Kong Pru Life Insurance Corporation of U.K. OS 100.00% 9th Floor, Uptown Place Tower 1, 1 East 11th Drive, Uptown Bonifacio, 1634 Taguig City, Metro Manila, Philippines Pru Life UK Asset Management and Trust Corporation OS 100.00% 2/F., Uptown Parade 2, 36th Street, Uptown Bonifacio, 1634 Taguig City, Philippines Prudence Foundation LBG 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential (Cambodia) Life Assurance Plc OS 100.00% 20th Floor, #445, Monivong Blvd, Boeung Prolit, 7 Makara, Phnom Penh Tower, Phnom Penh, Cambodia Prudential (US Holdco 1) Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Africa Holdings Limited OS 100.00% Prudential Africa Services Limited OS 100.00% 5th Ngong Avenue, Nairobi, Kenya Prudential Assurance Company Singapore (Pte) Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Assurance Malaysia Berhad* OS 51.00% Level 20, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Prudential Assurance Uganda Limited OS 100.00% Kampala Road, Kampala, Uganda Prudential BSN Takaful Berhad† OS 49.00% Level 8A, Menara Prudential, No. 10 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Prudential Corporation Australasia Holding

Condensed Financial Information

Condensed Financial Information of Registrant Prudential plc	12 Months Ended
	Dec. 31, 2019
Condensed Financial Information of Registrant Prudential plc
Condensed Financial Information of Registrant Prudential plc	Schedule II Condensed Financial Information of Registrant Prudential plc Profit and Loss Accounts (FRS 101 Basis) Years ended 31 December 2019 $m 2018* $m 2017* $m Investment income, including dividends received from subsidiary undertakings 9,707 2,143 2,265 Investment expenses and charges (515) (549) (534) Gain on revaluation of M&G plc 3,649 — — Other charges: Corporate expenditure (713) (346) (280) Foreign currency exchange (losses) gains (18) 7 (12) Profit on ordinary activities before tax 12,110 1,255 1,439 Tax credit on profit on ordinary activities 145 135 153 Profit for the financial year 12,255 1,390 1,592 Other comprehensive income: Items that may be reclassified subsequently to profit or loss Exchange movements arising during the year 393 (428) 676 Items that will not be reclassified to profit or loss Actuarial (losses) gains recognised in respect of the defined benefit pension scheme (91) 25 44 Related tax 16 (4) (8) 318 (407) 712 Total comprehensive income for the year 12,573 983 2,304 * The 2018 and 2017 comparative results have been re-presented from those previously published to reflect the change in the Company’s presentation currency from pounds sterling to US dollars (as described in note 2). The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Financial Position (FRS 101 Basis) 31 December 2019 $m 2018* $m Non-current assets Investments in subsidiary undertakings 10,444 13,787 Amounts owed by subsidiary undertakings 2,000 — 12,444 13,787 Current assets Debtors: Amounts owed by subsidiary undertakings 6,352 7,520 Other debtors 4 6 Tax recoverable 66 53 Derivative assets — 6 Pension asset — 88 Cash at bank and in hand 54 28 6,476 7,701 Liabilities: amounts falling due within one year Commercial paper (520) (601) Derivative liabilities — (539) Amounts owed to subsidiary undertakings (141) (1,192) Tax payable (14) (13) Deferred tax liability — (15) Accruals and deferred income (78) (129) (753) (2,489) Net current assets 5,723 5,212 Total assets less current liabilities 18,167 18,999 Liabilities: amounts falling due after more than one year Subordinated liabilities (4,304) (8,503) Debenture loans (690) (658) Other borrowings — (350) (4,994) (9,511) Total net assets 13,173 9,488 Capital and reserves Share capital 172 166 Share premium 2,625 2,502 Profit and loss account 10,376 6,820 Shareholders’ funds 13,173 9,488 * The 2018 comparative results have been re-presented from those previously published to reflect the change in the Company’s presentation currency from pounds sterling to US dollars (as described in note 2). The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Changes in Equity (FRS 101 basis) Share Share Profit and Total $m capital premium loss account equity Balance at 1 January 2017 159 2,381 6,733 9,273 Total comprehensive income for the year Profit for the year — — 1,592 1,592 Foreign exchange translation differences due to change in presentation currency* — — 676 676 Actuarial gains recognised in respect of the defined benefit pension scheme — — 36 36 Total comprehensive income for the year — — 2,304 2,304 Transactions with owners, recorded directly in equity New share capital subscribed — 27 — 27 Share based payment transactions — — (1) (1) Foreign exchange translation differences due to change in presentation currency* 16 227 — 243 Dividends — — (1,525) (1,525) Total contributions by and distributions to owners 16 254 (1,526) (1,256) Balance at 31 December 2017 175 2,635 7,511 10,321 Balance at 1 January 2018 175 2,635 7,511 10,321 Impact of initial application of IFRS 9 — — (12) (12) Total comprehensive income for the year Profit for the year — — 1,390 1,390 Actuarial gains recognised in respect of the defined benefit pension scheme — — 21 21 Foreign exchange translation differences due to change in presentation currency* — — (428) (428) Total comprehensive income for the year — — 983 983 Transactions with owners, recorded directly in equity New share capital subscribed 1 22 — 23 Dividends — — (1,662) (1,662) Foreign exchange translation differences due to change in presentation currency * (10) (155) — (165) Total contributions by and distributions to owners (9) (133) (1,662) (1,804) Balance at 31 December 2018 166 2,502 6,820 9,488 Balance at 1 January 2019 166 2,502 6,820 9,488 Profit for the year — — 12,255 12,255 Actuarial losses recognised in respect of the defined benefit pension scheme — — (75) (75) Foreign exchange translation differences due to change in presentation currency* — — 393 393 Total comprehensive income for the year — — 12,573 12,573 Transactions with owners, recorded directly in equity New share capital subscribed — 22 — 22 Share based payment transactions — — (4) (4) Dividend in specie of M&G plc — — (7,379) (7,379) Dividends — — (1,634) (1,634) Foreign exchange translation differences due to change in presentation currency* 6 101 — 107 Total contributions by and distributions to owners 6 123 (9,017) (8,888) Balance at 31 December 2019 172 2,625 10,376 13,173 * The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Cash Flows (FRS 101 Basis) Years ended 31 December 2019 $m 2018* $m 2017* $m Operating Net cash inflow from operating activities before interest and tax 6,015 1,868 1,977 Interest paid (500) (537) (527) Taxes received 117 130 156 Equity dividends paid (1,634) (1,662) (1,525) Net cash inflow (outflow) before financing 3,998 (201) 81 Financing Issue of ordinary share capital 22 23 27 Issue of borrowings 367 2,132 728 Repayment of borrowings (863) (1,381) (968) Transfer of debt to M&G plc prior to demerger of UK and Europe operations (4,161) — — Movement in commercial paper and other borrowings to support a short-term fixed income securities program (81) (19) (731) Investment in subsidiary undertakings 118 (117) — Movement in net amount owed by subsidiary undertakings 626 (600) 985 Net cash (outflow) inflow from financing (3,972) 38 41 Net cash inflow (outflow) for the year 26 (163) 122 Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities Profit on ordinary activities before tax 12,110 1,255 1,439 Add back: interest charged 515 558 546 Adjustments for non-cash items: Fair value adjustments on derivatives 77 (28) (5) Pension scheme (21) 28 14 Non-cash dividends received (2,960) — — Revaluation of M&G plc on distribution (3,649) — — Foreign currency exchange and other movements (8) 26 (35) Decrease (increase) in debtors 2 — 8 Increase (decrease) in creditors (51) 29 10 Net cash inflow from operating activities 6,015 1,868 1,977 * The 2018 and 2017 comparative results have been re-presented from those previously published to reflect the change in the Company’s presentation currency from pounds sterling to US dollars (as described in note 2). The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Notes to the Condensed Financial Statement Schedule 31 December 2019 1 The financial statements of the parent company are prepared in accordance with UK Generally Accepted Accounting Practice, including Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’). In preparing these financial statements, the Company applies the recognition and measurement requirements in International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) and endorsed by the EU but makes amendments where necessary in order to comply with the Companies Act 2006. 2 Investments in subsidiary undertakings Investments in subsidiary undertakings are shown at cost less impairment. Investments are assessed for impairment by comparing the net assets of the subsidiary undertakings with the carrying value of the investment. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost, less provisions. Provisions are determined using the expected credit loss approach under IFRS 9. Derivatives Derivative financial instruments are held to manage certain macro-economic exposures. Derivative financial instruments are carried at fair value with changes in fair value included in the profit and loss account. Refer to Section 6.1 of the Group Risk Framework for detail of the approach to market risk. Financial Instruments Under IFRS 9, except for derivative instruments that are mandatorily classified as fair value through profit or loss, all of the financial assets and liabilities of the Company are classified as amortised cost.The Company assesses impairment on its loans and receivables using the expected credit loss approach. The expected credit loss on the Company’s loans and receivables, the majority of which represent loans to its subsidiaries, have been assessed by taking into account the probability of default on those loans. In all cases the subsidiaries are expected to have sufficient resources to repay the loan either now or over time (based on projected earnings). For loans recallable on demand the expected credit loss has therefore been limited to the impact of discounting the value of the loan between the balance sheet date and the anticipated recovery date. For loans with a fixed maturity date the expected credit loss has been determined with reference to the historic experience of loans with equivalent credit characteristics. Borrowings Borrowings are initially recognised at fair value, net of transaction costs, and subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds, net of transaction costs, is amortised through the profit and loss account to the date of maturity or, for subordinated debt, over the expected life of the instrument. Where modifications to borrowings do not result in a substantial difference to the terms of the instrument, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining expected life of the modified instrument. Where modifications to borrowings do result in a substantial difference to the terms of the instrument, the instrument is treated as if it had been extinguished and replaced by a new instrument which is initially recognised at fair value and subsequently accounted for on an amortised cost basis using the effective interest method. Any costs or fees arising from such a modification are recognised as an expense when incurred. Dividends Interim dividends are recorded in the period in which they are paid. Share premium The difference between the proceeds received on issue of shares and the nominal value of the shares issued is credited to the share premium account. Foreign currency translation Transactions not denominated in the Company’s functional currency are initially recorded at the functional rate of currency prevailing on the date of the transaction. Monetary assets and liabilities not denominated in the Company’s functional currency , including borrowings that have been used to finance or provide a hedge against Group equity investments in overseas subsidiaries, are translated to the Company's functional currency at year end exchange rates. The impact of these currency translations is recorded within the profit and loss account for the year. As discussed above, the Company's functional currency changed from pounds sterling to US dollars on 31 December 2019. The Company has also changed its presentation currency from pounds sterling to US dollars. Tax Current tax expense is charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year. To the extent that losses of an individual UK company are not offset, they can be carried back for one year or carried forward indefinitely to be offset , subject to restrictions based on future taxable profits,against profits arising from the same company or other companies in the same UK tax group. Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ’ Income Taxes ’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The Group’s UK subsidiaries each file separate tax returns. In accordance with UK tax legislation, where one domestic UK company is a 75 per cent owned subsidiary of another UK company or both are 75 per cent owned subsidiaries of a common parent, the companies are considered to be within the same UK tax group. For companies within the same tax group, trading losses may be offset against taxable profits arising in the same or future accounting periods for the purposes of determining current and deferred taxes. Pensions The Company historically assumed a portion of the pension surplus or deficit of the Group’s main pension scheme, the Prudential Staff Pension Scheme (‘PSPS’). The Company's portion of the surplus was transferred to M&GPrudential Services Limited at 30 June 2019. Up until that date, the Company applied the requirements of IAS 19 ‘ Employee Benefits ’ (as revised in 2011) for the accounting of its interest in the PSPS surplus or deficit. The key items are highlighted below. A pension surplus or deficit is recorded as the difference between the present value of the scheme liabilities and the fair value of the scheme assets. The Company’s share of pension surplus is recognised to the extent that the Company is able to recover a surplus either through reduced contributions in the future or through refunds from the scheme. The assets and liabilities of the defined benefit pension schemes of the Prudential Group are subject to a full triennial actuarial valuation using the projected unit method. Estimated future cash flows are then discounted at a high quality corporate bond yield, adjusted to allow for the difference in duration between the bond index and the pension liabilities, where appropriate, to determine their present value. These calculations are performed by independent actuaries. The aggregate of the actuarially determined service costs of the currently employed personnel and the net income (interest) on the net scheme assets (liabilities) at the start of the period, is recognised in the profit or loss account. Actuarial gains and losses as a result of the changes in assumptions, experience variances or the return on scheme assets excluding amounts included in the net deferred benefit asset (liability) are recorded in other comprehensive income. The loss on transfer of the pension surplus transferred to M&GPrudential Services Limited has been recognised in the profit or loss account. Share-based payments The Group offers share award and option plans for certain key employees and a Save As You Earn (‘SAYE’) plan for all UK and certain overseas employees. The share-based payment plans operated by the Group are mainly equity-settled. Under IFRS 2 ‘Share-based payment’, where the Company, as the parent company, has the obligation to settle the options or awards of its equity instruments to employees of its subsidiary undertakings, and such share-based payments are accounted for as equity-settled in the Group financial statements, the Company records an increase in the investment in subsidiary undertakings for the value of the share options and awards granted with a corresponding credit entry recognised directly in equity. The value of the share options and awards granted is based upon the fair value of the options and awards at the grant date, the vesting period and the vesting conditions. Cash receipts from business units in respect of newly issued share schemes are treated as returns of capital within investments in subsidiaries. 3 The parent company received dividends totalling $9,599 million from its consolidated subsidiary undertakings in 2019 (2018: $1,996 million; 2017: $2,227 million). 4 The parent company financial statements are prepared in accordance with FRS 101 and the Group financial statements are prepared in accordance with IFRS as issued by the IASB and endorsed by the EU. The tables below provide a reconciliation between the FRS 101 parent company results and the IFRS Group results. 2019 $m 2018 $m 2017 $m Profit after tax Profit for the financial year of the Company (including dividends from subsidiaries) in accordance with FRS 101 12,255 1,390 1,592 Accounting policy difference* 15 7 — Share in the IFRS result of the Group, net of distributions to the Company† (11,487) 2,622 1,488 Profit after tax of the Group attributable to shareholders in accordance with IFRS 783 4,019 3,080 31 Dec 2019 $m 31 Dec 2018 $m Net equity Shareholders’ equity of the Company in accordance with FRS 101 13,173 9,488 Accounting policy difference* 33 18 Share in the IFRS net equity of the Group† 6,271 12,462 Shareholders’ equity of the Group in accordance with IFRS 19,477 21,968 * Adjustment represents difference in accounting policy for expected credit losses on loan assets, the Company has adopted IFRS 9 while the Group applies IAS 39. † The profit for the financial year of the parent company in accordance with IFRS includes dividends received in the year from subsidiary undertakings (note 3). 5 In certain instances the parent company has guaranteed that its subsidiaries will meet their obligations when they fall due for payment. 6 The second interim ordinary dividend for the year ended 31 December 2019, which was approved by the Board of Directors after 31 December 2019, is described in note B6 of the Group financial statements.

Basis of preparation and acco_2

Basis of preparation and accounting policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting policies
Basis of preparation and exchange rates	Basis of preparation and exchange rates Prudential plc (‘the Company’) together with its subsidiaries (collectively, ‘the Group’ or ‘Prudential’) is an international financial services group. The Group has operations in Asia, the US, Africa and, prior to the demerger of M&G plc in October 2019, UK and Europe. The Group helps individuals to de-risk their lives and deal with their biggest financial concerns through life and health insurance, and retirement and asset management solutions. On 21 October 2019, the Company completed the demerger of M&G plc, its UK and Europe operations, from Prudential plc resulting in two separately-listed companies. It has therefore reclassified these operations as discontinued in these financial statements (see note A2). Basis of preparation These statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union (EU) as required by EU law (IAS Regulation EC1606/2032). EU-endorsed IFRS may differ from IFRS issued by the IASB if, at any point in time, new or amended IFRS have not been endorsed by the EU. At 31 December 2019, there were no unendorsed standards effective for the three years ended 31 December 2019 which impact the consolidated financial statements of the Group and there were no differences between IFRS endorsed by the EU and IFRS issued by the IASB in terms of their application to the Group. For financial years beginning after 31 December 2020, the Group will prepare its consolidated financial statements in accordance with UK-adopted international accounting standards, instead of the EU-endorsed IFRS. These statements have been prepared on a going concern basis. The Group IFRS accounting policies are the same as those applied for the year ended 31 December 2018 with the exception of the adoption of the new and amended accounting standards as described in note A3. Exchange rates Following the demerger of its UK and Europe operations, the Directors have elected to change the Group’s presentation currency in these financial statements from pounds sterling to US dollars which better reflects the economic footprint of our business going forward. The Group believes that the presentation currency change will give investors and other stakeholders a clearer understanding of Prudential’s performance over time. The change in presentation currency is a voluntary change which is accounted for retrospectively in the comparative information and all comparative statements and notes have been restated accordingly applying the foreign exchange translation principles as set out below. The exchange rates applied for balances and transactions in the presentation currency of the Group, US dollars ($),and other currencies were: Closing Average rate Closing Average rate Closing Average rate Opening rate at for rate at for rate at for rate at $: local currency 31 Dec 2019 31 Dec 2018 31 Dec 2017 1 Jan 2017 China 6.97 6.91 6.87 6.61 6.51 6.76 6.95 Hong Kong 7.79 7.84 7.83 7.84 7.82 7.79 7.75 Indonesia 13,882.50 14,140.84 14,380.00 14,220.82 13,567.00 13,383.03 13,471.96 Malaysia 4.09 4.14 4.13 4.03 4.05 4.30 4.49 Singapore 1.34 1.36 1.36 1.35 1.34 1.38 1.44 Thailand 29.75 31.05 32.56 32.30 32.59 33.91 35.81 UK 0.75 0.78 0.79 0.75 0.74 0.78 0.81 Vietnam 23,172.50 23,227.64 23,195.00 23,017.17 22,708.16 22,716.82 22,770.08 Foreign exchange translation In order to present the consolidated financial statements in US dollars, the results and financial position of entities not using US dollars as functional currency (ie the currency of the primary economic environment in which the entity operates) must be translated into the US dollars. The general principle for converting foreign currency transactions is to translate at the functional currency spot rate prevailing at the date of the transactions. This includes external dividends determined and paid to shareholders in pounds sterling. Prudential will determine and declare its dividend in US dollars commencing with dividends paid in 2020, including the 2019 second interim dividend. All assets and liabilities of entities not operating in US dollars are converted at closing exchange rates while all income and expenses are converted at average exchange rates where this is a reasonable approximation of the rates prevailing on transaction dates. The impact of these currency translations is recorded as a separate component in the statement of comprehensive income. At 31 December 2019 the functional currency of the Group’s parent company changed to US dollars. The Group and parent company have chosen, for presentational purposes, to retranslate their share capital and share premium as at 31 December 2019 using the closing exchange rate as at that date, and comparative amounts at the relative closing exchange rates. The foreign exchange adjustments arising on the share capital and share premium balances of $2,797 million (31 December 2018: $2,668 million) adjust the translation reserve movement in the statement of other comprehensive income. As this amount arises on the translation of the parent company’s share capital and share premium, the corresponding impact to the currency translation reserve of $980 million will never be recycled on disposal of any foreign operations. During 2019 and 2018, borrowings that are used to provide a hedge against Group equity investments in overseas entities were translated at year end exchange rates and movements recognised in other comprehensive income. Other foreign currency monetary items are translated at year end exchange rates with changes recognised in the income statement. Certain notes to the financial statements present 2018 comparative information at constant exchange rates (CER), in addition to the reporting at actual exchange rates (AER) used throughout the consolidated financial statements. AER are actual historical exchange rates for the specific accounting period, being the average rates over the period for the income statement and the closing rates at the balance sheet date for the statement of financial position. CER results are calculated by translating prior period results using the current period foreign exchange rate, ie current period average rates for the income statement and current period closing rates for the statement of financial position. The effect of foreign exchange movement from continuing operations arising during the years shown recognised in other comprehensive income is: 2019 $m 2018 $m 2017 $m Asia operations 194 (206) 363 Unallocated to a segment (other funds) (42) 167 (234) 152 (39) 129 The consolidated financial statements do not represent Prudential’s statutory accounts for the purposes of the UK Companies Act. These financial statements are based on the prescribed formats. The Group’s external auditors have reported on the 2019, 2018 and 2017 statutory accounts. Statutory accounts for 2018 and 2017 have been delivered to the UK Registrar of Companies and those for 2019 will be delivered following the Company’s Annual General Meeting. The auditor’s reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006.
Discontinued operations	Discontinued operations The Group completed the demerger of its UK and Europe operations, M&G plc, from the Prudential plc group on 21 October 2019. In accordance with IFRS 5 ‘Non-Current Assets Held for Sale and Discontinued Operations’ , the results of M&G plc have been reclassified as discontinued operations in these consolidated financial statements. Consistent with IFRS 5 requirements, profit after tax attributable to the discontinued UK and Europe operations in 2019 have been shown in a single line in the income statement with 2018 and 2017 comparatives being restated accordingly, with further analysis provided in note D2. Notes B1 to B5 have also been prepared on this basis. IFRS 5 does not permit the comparative 31 December 2018 and 1 January 2018 statement of financial position to be re-presented, as the UK and Europe operations were not reclassified as held for sale at these dates. In the related balance sheet notes, prior year balances have been presented to show the amounts from discontinued operations separately from continuing operations in order to present the results of the continuing operations on a comparable basis. Additionally, in the analysis of movements in Group’s assets and liabilities between the beginning and end of the years, the balances of the discontinued UK and Europe operations are removed from the opening balances to show the underlying movements from continuing operations. Profit from the discontinued UK and Europe operations up to the demerger is presented in the consolidated income statement after the elimination of intragroup transactions with continuing operations where it is appropriate to provide a more meaningful presentation of the position of the Group immediately after the demerger.
New accounting pronouncements in 2019	New accounting pronouncements in 2019 IFRS 16 ‘ Leases ’ The Group has adopted IFRS 16 ‘ Leases’ from 1 January 2019. The new standard brings most leases on-balance-sheet for lessees under a single model, eliminating the distinction between operating and finance leases. IFRS 16 applies primarily to operating leases of major properties occupied by the Group’s businesses where Prudential is a lessee. Under IFRS 16, these leases are brought onto the Group’s statement of financial position with a ‘right-of-use’ asset being established and a corresponding liability representing the obligation to make lease payments. The rental accrual charge in the income statement under IAS 17 is replaced with a depreciation charge for the ‘right-of-use’ asset and an interest expense on the lease liability leading to a more front-loaded operating lease cost profile compared to IAS 17. As permitted by IFRS 16, the Group has chosen to adopt the modified retrospective approach upon transition to the new standard. Under the approach adopted, there is no adjustment to the Group’s retained earnings at 1 January 2019 and the Group’s 2018 comparative information is not restated. The ‘right-of-use’ asset and lease liability at 1 January 2019 are set at an amount equal to the discounted remaining lease payments adjusted by any prepaid or accrued lease payment balance immediately before the date of initial application of the standard. When measuring lease liabilities on adoption, the Group discounted lease payments using its incremental borrowing rate at 1 January 2019. The weighted average rate applied is 3.4 per cent. The aggregate effect of the adoption of the standard on the statement of financial position at 1 January 2019 is shown in the table below: Continuing Discontinued Total operations operations Group Effect of adoption of IFRS 16 at 1 January 2019 $m $m $m Assets Property, plant and equipment (right-of-use assets) 527 368 895 Total assets 527 368 895 Liabilities Operational borrowings (lease liability) 541 414 955 Accruals, deferred income and other liabilities (accrued lease payment balance under IAS 17) (14) (46) (60) Total liabilities 527 368 895 Reconciliation of IFRS 16 lease liability and IAS 17 lease commitments Total Group $m IFRS 16 operating lease liability shown in the table above 955 Add back impact of discounting 210 IFRS 16 operating lease liability on an undiscounted basis 1,165 Difference in lease rental payments due to probable renewals or early termination decisions reflected above (48) Other (6) Total operating lease commitments at 31 December 2018* 1,111 * As disclosed in note D5 of the Group’s IFRS financial statements for the year ended 31 December 2018 and after excluding $76 million for the amount relating to certain lease commitments from the central operations to the discontinued UK with-profits fund. The Group has applied the practical expedient to grandfather the definition of a lease on transition. This means that IFRS 16 has been applied to all contracts that were identified as leases in accordance with IAS 17 and IFRIC 4 ‘Determining whether an Arrangement contains a Lease’ entered into before 1 January 2019. Therefore, the definition of a lease under IFRS 16 is applied only to contracts entered into or changed on or after 1 January 2019. The Group has used the following practical expedients, in addition to the aforementioned, when applying IFRS 16 to leases previously classified as operating leases under IAS 17: - Applying a single discount rate to a portfolio of leases with similar characteristics. Accordingly, for such portfolios, the incremental borrowing rates used to discount the future lease payments will be determined based on market specific risk-free rates adjusted with a margin/spread to reflect the Group’s credit standing, lease term and the outstanding lease payments. - Using hindsight when determining the lease term if the contract contains options to extend or terminate the lease. Other new accounting pronouncements In addition to the above, the following new accounting pronouncements were also effective from 1 January 2019: - IFRIC Interpretation 23 ‘Uncertainty over Income Tax Treatments’; - Amendments to IAS 28 ‘ Long-term Interests in Associates and Joint Ventures’ ; - Amendments to IFRS 9 ‘ Prepayment Features with Negative Compensation’ ; - Annual Improvements to IFRSs 2015-2017 cycle; and - Amendments to IAS 19 ‘ Plan Amendment, Curtailment or Settlement’ . The Group has applied the principles within the Amendments to IAS 19 ‘ Plan Amendment, Curtailment or Settlement’ when accounting for the changes to the pension benefits of its UK defined benefit schemes during the year. The other pronouncements have had no significant impact on the Group financial statements.
Classification of insurance and investment contracts; Measurement of policyholder liabilities and unallocated surplus of with-profits	Classification of insurance and investment contracts IFRS 4 requires contracts written by insurers to be classified as either ‘insurance’ contracts or ‘investment’ contracts. The classification of the contract determines its accounting. Impacts $397.6 billion of reported contract liabilities, requiring classification, including those held by the joint venture and associate. Judgement is applied in considering whether the material features of a contract gives rise to the transfer of significant insurance risk. Contracts that transfer significant insurance risk to the Group are classified as insurance contracts. This judgement is made at the point of contract inception and is not revisited. For the majority of the Group’s contracts, classification is based on a readily identifiable scenario that demonstrates a significant difference in cash flows if the covered event occurs (as opposed to does not occur) reducing the level of judgement involved. Contracts that transfer financial risk to the Group but not significant insurance risk are classified as investment contracts.Certain investment contracts contain discretionary participating features as discussed in IFRS 4. Insurance contracts and investment contracts with discretionary participation features are accounted for under IFRS 4. Investment contracts without such discretionary participation features are accounted for as financial instruments under IAS 39. Insurance business units Insurance contracts and investment contracts with discretionary participation features Investment contracts without discretionary participation features Asia – With-profits contracts – Non-participating term contracts – Whole life contracts – Unit-linked policies – Accident and health policies – Minor amounts for a number of small categories of business US – Variable annuity contracts – Fixed annuity contracts – Fixed index annuity contracts – Group pay-out annuity contracts – Life insurance contracts – Guaranteed investment contracts (GICs) – Minor amounts of ‘annuity certain’ contracts Discontinued UK and Europe – With-profits contracts – Bulk and individual annuity business – Non-participating term contracts – Certain unit-linked savings and similar contracts Measurement of policyholder liabilities and unallocated surplus of with-profits The measurement basis of policyholder liabilities is dependent upon the classification of the contracts under IFRS 4 described above. Impacts $402.3 billion of policyholder liabilities and unallocated surplus of with-profits. Policyholder liabilities are estimated based on a number of actuarial assumptions (eg mortality, morbidity, policyholder behaviour and expenses). IFRS 4 permits the continued usage of previously applied Generally Accepted Accounting Practices (GAAP) for insurance contracts and investment contracts with discretionary participating features. A modified statutory basis of reporting was adopted by the Group on first time adoption of IFRS in 2005. This was set out in the Statement of Recommended Practice issued by the Association of British Insurers (ABI SORP). An exception was for UK regulated with-profits funds which were measured under FRS 27, ‘Life Assurance’ as discussed below. FRS 27 and the ABI SORP were withdrawn for the accounting periods beginning in or after 2015. As used in these consolidated financial statements, the terms 'grandfathered' FRS 27 and the 'grandfathered' ABI SORP refer to the requirements of these pronouncements prior to their withdrawal. For investment contracts that do not contain discretionary participating features, IAS 39 is applied and, where the contract includes an investment management element, IFRS 15 ‘Revenue from Contracts with Customers’ applies. The policies applied in each business unit are noted below. When measuring policyholder liabilities, a number of assumptions are applied to estimate future amounts due to or from the policyholder. The nature of assumptions varies by product and among the most significant is policyholder behaviour, particularly in the US. Additional details of valuation methodologies and assumptions applied for material product types are discussed in note C4.2. Measurement of insurance contract liabilities and investment contract liabilities with discretionary participation features Asia insurance operations The policyholder liabilities for businesses in Asia are generally determined in accordance with methods prescribed by local GAAP, adjusted to comply with the modified statutory basis where necessary. Refinements to the local reserving methodology are generally treated as changes in estimates, dependent on their nature. In Taiwan and India, US GAAP principles are applied. The sensitivity of Asia insurance operations to variations in key estimates and assumptions, including mortality and morbidity, is discussed in note C7.2. US insurance operations (Jackson) The policyholder liabilities for Jackson’s conventional protection-type policies are determined under US GAAP principles with locked in assumptions for mortality, interest, policy lapses and expenses along with provisions for adverse deviations. For other policies, the policyholder liabilities include the policyholder account balance. For those investment contracts in the US with fixed and guaranteed terms, the Group uses the amortised cost model to measure the liability. The US has no investment contracts with discretionary participation features. The sensitivity of US insurance operations to variations in key estimates and assumptions, including policyholder behaviour, is discussed in note C7.3. Discontinued UK and Europe insurance operations The UK regulated with-profits funds’ liabilities are the realistic basis liabilities in accordance with ‘grandfathered’ FRS 27. The realistic basis requires the value of liabilities to be calculated as the sum of a with-profits benefits reserve, future policy-related liabilities and the realistic current liabilities of the fund. The interest rates used in establishing policyholder benefit provisions for pension annuities in the course of payment are adjusted each reporting period and include an allowance for credit risk. Mortality rates used in establishing policyholder benefits are based on published mortality tables adjusted to reflect actual experience. Measurement of investment contract liabilities without discretionary participation features Investment contracts without discretionary participation features are measured in accordance with IAS 39 to reflect the deposit nature of the arrangement, with premiums and claims reflected as deposits and withdrawals, and taken directly to the statement of financial position as movements in the financial liability balance. Investment contracts without fixed and guaranteed terms are classified as financial instruments and designated as fair value through profit or loss because the resulting liabilities are managed and their performance is evaluated on a fair value basis. Where the contract includes a surrender option, its carrying value is subject to a minimum carrying value equal to its surrender value. Other investment contracts are measured at amortised cost. Measurement of unallocated surplus of with-profits funds Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities determined in accordance with the Group's accounting policies and based on local GAAP for the Group’s with-profits funds in Hong Kong, Malaysia and, up to its demerger, the UK and Europe operations that have yet to be appropriated between policyholders and shareholders. The unallocated surplus is recorded wholly as a liability with no allocation to equity. The annual excess or shortfall of income over expenditure of the with-profits funds, after declaration and attribution of the cost of bonuses to policyholders and shareholders, is transferred to or from the unallocated surplus each period through a charge or credit to the income statement. The balance retained in the unallocated surplus represents cumulative income arising on the with-profits business that has not been allocated to policyholders or shareholders. The balance of the unallocated surplus is determined after full provision for deferred tax on unrealised appreciation or depreciation on investments. Liability adequacy test The Group performs adequacy testing on its insurance liabilities to ensure that the carrying amounts (net of related deferred acquisition costs) and, where relevant, present value of acquired in-force business is sufficient to cover current estimates of future cash outflows. Any deficiency is immediately charged to the income statement. Jackson’s liabilities for insurance contracts, which include those for separate accounts (reflecting separate account assets), policyholder account values and guarantees measured as described in note C4.2 and the associated deferred acquisition cost asset, are measured under US GAAP and liability adequacy testing is performed in this context. Under US GAAP, most of Jackson’s products are accounted for under Accounting Standards Codification Topic 944, Financial Services – Insurance of the Financial Accounting Standards Board (ASC 944) whereby deferred acquisition costs are amortised in line with expected gross profits. Recoverability of the deferred acquisition costs in the balance sheet is tested against the projected value of future profit using current estimates and therefore no additional liability adequacy test is required under IFRS 4. The deferred acquisition cost asset recoverability test is performed in line with US GAAP requirements, which in practice is at a grouped level of those contracts managed together.
Measurement and presentation of derivatives and debt securities of US insurance operations; financial instruments other than instruments classified as long-term business contracts	Measurement and presentation of derivatives and debt securities of US insurance operations (Jackson) Jackson holds a number of derivative instruments and debt securities. The selection of the accounting approach for these items significantly affects the volatility of profit before tax. $ (4,225) million of the US investment return in the income statement arises from such derivatives and debt securities. Jackson enters into derivative instruments to mitigate economic exposures. The Group has considered whether it is appropriate to undertake the necessary operational changes to qualify for hedge accounting so as to achieve matching of value movements in hedging instruments and hedged items in the performance statements. The key factors considered in this assessment were the complexity of asset and liability matching in Jackson’s product range and the difficulty and cost of applying the macro hedge provisions under IAS 39 (which are more suited to banking arrangements) to Jackson’s derivative book. The Group has decided that, except for occasional circumstances, applying hedge accounting using IAS 39 to derivative instruments held by Jackson would not improve the relevance or reliability of the financial statements to such an extent that would justify the difficulty and cost of applying these provisions. As a result of this decision, the total income statement results are more volatile as the movements in the fair value of Jackson’s derivatives are reflected within it. This volatility is reflected in the level of short-term fluctuations in investment returns, as shown in notes B1.1 and B1.2. Under IAS 39, unless carried at amortised cost (subject to impairment provisions where appropriate) under the held-to-maturity category, debt securities are carried at fair value. The Group has chosen not to classify any financial assets as held-to-maturity. Debt securities of Jackson are designated as available-for-sale with value movements, unless impaired, being recorded as movements within other comprehensive income. Impairments are recorded in the income statement, as discussed in note (c) below.
Presentation of results before tax attributable to shareholders	Presentation of results before tax attributable to shareholders Profit before tax is a significant IFRS income statement item. The Group has chosen to present a measure of profit before tax attributable to shareholders which distinguishes between tax borne by shareholders and tax attributable to policyholders to support understanding of the performance of the Group. Profit from continuing operations before tax attributable to shareholders is $1,922 million and compares to profit from continuing operations before tax of $2,287 million. The total tax charge for the Group reflects tax that, in addition to that relating to shareholders’ profit, is also attributable to policyholders through the interest in with-profits or unit-linked funds. Further detail is provided in note B4. Reported IFRS profit before the tax measure is therefore not representative of pre-tax profit attributable to shareholders. Accordingly, in order to provide a measure of pre-tax profit attributable to shareholders, the Group has chosen to adopt an income statement presentation of the tax charge and pre-tax results that distinguishes between policyholders and shareholders returns.
Segmental analysis of results and earnings attributable to shareholders	Segmental analysis of results and earnings attributable to shareholders The Group uses adjusted IFRS operating profit based on longer-term investment returns as the segmental measure of its results. Total segmental adjusted IFRS operating profit from continuing operations based on longer-term investment returns is $6,346 million and is shown in note B1.1. The basis of calculation of adjusted IFRS operating profit based on longer-term investment returns is provided in note B1.3. For shareholder-backed business, with the exception of debt securities held by Jackson and the Group's new treasury company, which are treated as available-for-sale, and assets classified as loans and receivables at amortised cost, all financial investments and investment properties are designated as assets at fair value through profit or loss. Short-term fluctuations in fair value affect the result for the year and the Group provides additional analysis of results before and after the effects of short-term fluctuations in investment returns, together with other items that are of a short-term, volatile or one-off nature. The effects of short-term fluctuations include asymmetric impacts where the measurement bases of the liabilities and associated derivatives used to manage the Jackson annuity business differ as described in note B1.2. Short-term fluctuations in investment returns on assets held by with-profits funds in Hong Kong, Malaysia and Singapore do not affect directly reported shareholder results. This is because (i) the unallocated surplus of with-profits funds is accounted for as a liability and (ii) excess or deficit of income and expenditure of the funds over the required surplus for distribution are transferred to or from policyholder liabilities (including the unallocated surplus).
Deferred acquisition costs (DAC) for insurance contracts	Deferred acquisition costs (DAC) for insurance contracts The Group applies judgement in determining qualifying costs that should be capitalised (ie those costs of acquiring new insurance contracts that meet the criteria under the Group’s accounting policy for deferred acquisition costs). The Group estimates projected future profits/margins to assess whether adjustments to the carrying value or amortisation profile of deferred acquisition cost asset are necessary. Impacts $14.2 billion of deferred acquisition costs as shown in note C5.2(i). Costs of acquiring new insurance business are accounted for in a way that is consistent with the principles of the ’grandfathered’ ABI SORP with deferral and amortisation against margins in future revenues on the related insurance policies. The recoverability of the deferred acquisition costs (DAC) is measured and the DAC asset is deemed impaired if the projected margins (which are estimated based on a number of assumptions similar to those underlying policyholder liabilities) are less than the carrying value. To the extent that the future margins differ from those anticipated, an adjustment to the carrying value will be necessary either through an impairment (if the projected margins are lower than carrying value) or through a change in the amortisation profile. Asia insurance operations For those business units applying US GAAP to insurance assets and liabilities, as permitted by the ‘grandfathered’ ABI SORP, principles similar to those set out in the US insurance operations paragraph below are applied to the deferral and amortisation of acquisition costs. For other business units in Asia, the general principles of the ‘grandfathered’ ABI SORP are applied. In general, deferral of acquisition costs is shown by an explicit carrying value in the balance sheet. However, in some Asia operations the deferral is implicit through the reserving basis. US insurance operations The most material estimates and assumptions applied in the measurement and amortisation of DAC balances relate to the US insurance operations. The Group’s US insurance operations apply FASB ASU 2010-26 on ‘Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts’ and capitalise only those incremental costs directly relating to successfully acquiring a contract. For term life business, acquisition costs are deferred and amortised in line with expected premiums. For annuity and interest-sensitive life business, acquisition costs are deferred and amortised in line with expected gross profits on the relevant contracts. For fixed and fixed index annuity and interest-sensitive life business, the key assumption is the long-term spread between the earned rate on investments and the rate credited to policyholders. For variable annuity business, a key assumption is the long-term investment return from the separate accounts, which for 2019 is 7.4 per cent (2018: 7.4 per cent). The impact of using this return is reflected in two principal ways, namely: - Through the projected expected gross profits that are used to determine the amortisation of deferred acquisition costs. This is applied through the use of a mean reversion technique which is described in more detail below; and - The required level of provision for claims for guaranteed minimum death, ‘for life’ withdrawal, and income benefits. In addition, expected gross profits depend on mortality assumptions, lapses (including the related charges), assumed unit costs and future hedge costs, which are based on a combination of Jackson’s actual experience, industry benchmarking and future expectations. Jackson uses a mean reversion methodology that sets the projected level of return for each of the next five years such that these returns in combination with the actual rates of return for the preceding three years (including the current year) average the assumed long-term annual return (gross of asset management fees and other charges to policyholders, but net of external fund management fees) over the eight-year period. Projected returns after the mean reversion period revert back to the long-term investment return. For further details on current balances, assumptions and sensitivity, refer to note C5.2 (i). To ensure that the methodology in extreme market movements produces future expected returns that are realistic, the mean reversion technique has a cap and floor feature whereby the projected returns in each of the next five years can be no more than 15 per cent per annum and no less than zero per cent per annum (both gross of asset management fees and other charges to policyholders, but net of external fund management fees) in each year. Jackson makes certain adjustments to the DAC assets which are recognised directly in other comprehensive income (‘shadow accounting’) to match the recognition of unrealised gains or losses on available-for-sale securities causing the adjustments. More precisely, shadow DAC adjustments reflect the change in DAC that would have arisen if the assets held in the statement of financial position had been sold, crystallising unrealised gains or losses, and the proceeds reinvested at the yields currently available in the market.
Carrying value of distribution rights intangible assets	Carrying value of distribution rights intangible assets The Group applies judgement to assess whether factors such as the financial performance of the distribution arrangement, changes in relevant legislation and regulatory requirements indicate an impairment of intangible assets representing distribution rights. To determine the impaired value, the Group estimates the discounted future expected cash flows arising from distribution rights. Affects $3.0 billion of assets as shown in note C5.2. Distribution rights relate to bancassurance partnership arrangements for the distribution of products for the term of the contractual agreement with the bank partner, for which an asset is recognised based on fees paid. Distribution rights impairment testing is conducted when there is an indication of impairment. To assess indicators of an impairment, the Group monitors a number of internal and external factors, including indications that the financial performance of the arrangement is likely to be worse than expected and changes in relevant legislation and regulatory requirements that could impact the Group’s ability to continue to sell new business through the bancassurance channel, and then applies judgement to assess whether these factors indicate that an impairment has occurred. If an impairment has occurred, a charge is recognised in the income statement for the difference between the carrying value and recoverable amount of the asset. The recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is calculated as the present value of future expected cash flows from the asset or the cash generating unit to which it is allocated.
Financial Investments - Valuation	Financial investments – Valuation Financial investments held at fair value represent $388.1 billion of the Group’s total assets. Financial investments held at amortised cost represent $15.6 billion of the Group’s total assets. The Group estimates the fair value of financial investments that are not actively traded using quotations from independent third parties or internally developed pricing models. The Group holds the majority of its financial investments at fair value (either through profit or loss or available-for-sale). Financial investments held at amortised cost primarily comprise loans and deposits. Determination of fair value The fair values of the financial instruments for which fair valuation is required under IFRS are determined by the use of current market bid prices for exchange-quoted investments or by using quotations from independent third parties such as brokers and pricing services or by using appropriate valuation techniques. The estimated fair value of derivative financial instruments reflects the estimated amount the Group would receive or pay in an arm’s-length transaction. This amount is determined using quoted prices if exchange listed, quotations from independent third parties or valued internally using standard market practices. Current market bid prices are used to value investments having quoted prices. Actively traded investments without quoted prices are valued using prices provided by third parties such as brokers or pricing services. Financial investments measured at fair value are classified into a three-level hierarchy as described in note C3.1(b). If the market for a financial investment of the Group is not active, the Group establishes fair value by using quotations from independent third parties, such as brokers or pricing services, or by using internally developed pricing models. Priority is given to publicly available prices from independent sources when available, but overall the source of pricing and/or the valuation technique is chosen with the objective of arriving at a fair value measurement which reflects the price at which an orderly transaction would take place between market participants on the measurement date. The valuation techniques include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option-adjusted spread models and, if applicable, enterprise valuation and may include a number of assumptions relating to variables such as credit risk and interest rates. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these financial investments. Details of the financial investments classified as ‘level 3’ to which valuation techniques are applied and the sensitivity of profit before tax to a change in the valuation of these items, are presented in note C3.1(d).
Financial Investments - Determining impairment in relation to financial assets	Financial investments - Determining impairment of "available-for-sale" and "amortised cost" assets The Group applies judgement to assess whether factors such as the severity and duration of the decline in fair value, the financial condition and the prospects of the issuer indicate an impairment in value of financial investments classified as ‘available-for-sale’ or ‘held at amortised cost’. If evidence for impairment exists, valuation techniques, including estimates, are then applied in determining the impaired value, which is based on its expectation of discounted future cash flows. If the impaired value is less than book cost, an impairment loss is recognised in the income statement. Affects $73.9 billion of assets. For financial investments classified as ‘available for sale’ or ‘at amortised cost’, if a loss event that will have a detrimental effect on cash flows is identified, an impairment loss is recognised in the income statement. The loss recognised is determined as the difference between the book cost and the fair value or estimated future cash flows of the relevant impairment assets. The loss comprises the effect of the expected loss of contractual cash flows and any additional market-price driven temporary reductions in values. Available-for-sale securities The Group’s available-for-sale securities are principally held by the US insurance operations. For these securities, the consideration of evidence of impairment requires management's judgement. In making this determination, a range of market and industry indicators are considered including the severity and duration of the decline in fair value and the financial condition and prospects of the issuer. The factors reviewed include economic conditions, credit loss experience, other issuer-specific developments and future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealised losses currently in equity may be recognised in the income statement in future periods. For US residential mortgage-backed and other asset-backed securities, all of which are classified as available-for-sale, impairment is estimated using a model of expected future cash flows. Key assumptions used in the model include assumptions about how much of the currently delinquent loans will eventually default and assumed loss severity. Additional details on the methodology and estimates used to determine impairments of the available-for-sale securities of Jackson are described in note C3.2(e). Assets held at amortised cost When assets held at amortised cost are subject to impairment testing, estimated future cash flows are compared to the carrying value of the asset. In estimating future cash flows, the Group looks at the expected cash flows of the assets and applies historical loss experience of assets with similar credit risks that has been adjusted for conditions in the historical loss experience which no longer exist, or for conditions that are expected to arise. The estimated future cash flows are discounted using the financial asset’s original or variable effective interest rate and exclude credit losses that have not yet been incurred. Reversal of impairment losses If, in subsequent periods, an impaired debt security held on an available-for-sale basis or an impaired loan or receivable recovers in value (in part or in full) and this recovery can be objectively related to an event occurring after the impairment, then any amount determined to have been recovered is reversed through the income statement.
New accounting pronouncements not yet effective	New accounting pronouncements not yet effective The following standards, interpretations and amendments have been issued but are not yet effective in 2019, including those which have not yet been adopted in the EU. Following UK’s withdrawal from the European Union, the Group will continue to prepare these statements in accordance with IASB issued standards as endorsed by the EU until the end of the transition period on 31 December 2020. This includes accounting standards already endorsed by the EU but not yet effective as well as any new or amended standards adopted by the EU before the 31 December 2020. For financial years beginning after 31 December 2020, the Group will be required to prepare financial statements in accordance with UK-adopted international accounting standards. The Government is in the process of establishing the UK Endorsement Board to undertake the work of assessing, endorsing and adopting any new or amended International Accounting Standards published by the IASB. This is not intended to be a complete list as only those standards, interpretations and amendments that could have a material impact on the Group’s financial statements are discussed. IFRS 9 ‘Financial instruments: Classification and measurement’ In July 2014, the IASB published a complete version of IFRS 9 with the exception of macro hedge accounting. The standard became mandatorily effective for the annual periods beginning on or after 1 January 2018, with early application permitted and transitional rules apply. The Group met the eligibility criteria for temporary exemption under the Amendments to IFRS 4 from applying IFRS 9 in 2018 and has accordingly deferred the adoption of IFRS 9 until the date when IFRS 17 ‘Insurance Contracts ’ is expected to be adopted upon its current mandatory effective date. The Group made a reassessment during the year following the demerger of the UK and Europe operations in October 2019 and confirmed that it remained qualified for the temporary exemption. The Group is eligible as its activities are predominantly to issue insurance contracts based on the criteria as set out in the amendments to IFRS 4. The disclosure of the fair value of the Group’s financial assets, showing the amounts for instruments that meet the ‘Solely for Payment of Principal and Interest’ (SPPI) criteria that do not meet the definition of held for trading or are managed and evaluated on a fair value basis separately from all other financial assets, as required for entities applying the temporary exemption is provided below. When adopted IFRS 9 replaces the existing IAS 39 ’Financial Instruments - Recognition and Measurement’ and will affect the following three areas: The classification and the measurement of financial assets and liabilities IFRS 9 redefines the classification of financial assets. Based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’), financial assets are classified into one of the following categories: amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). An option is also available at initial recognition to irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. Under IAS 39, 82 per cent of the Group’s investments are valued at FVTPL and the Group’s current expectation is that a significant proportion will continue to be designated as such under IFRS 9. The existing IAS 39 amortised cost measurement for financial liabilities is largely maintained under IFRS 9. For financial liabilities designated at FVTPL IFRS 9 requires changes in fair value due to changes in entity’s own credit risk to be recognised in other comprehensive income. The calculation of the impairment charge relevant for financial assets held at amortised cost or FVOCI A new impairment model based on an expected credit loss approach replaces the existing IAS 39 incurred loss impairment model, resulting in earlier recognition of credit losses compared to IAS 39. This aspect is the most complex area of IFRS 9 to implement and will involve significant judgements and estimation processes. The Group is currently assessing the scope of assets to which these requirements will apply. The hedge accounting requirements which are more closely aligned with the risk management activities of the Company No significant change to the Group’s hedge accounting is currently anticipated, but this remains under review. The Group is assessing the impact of IFRS 9 and implementing this standard in conjunction with IFRS 17 as permitted. Further details on IFRS 17 are provided below. The parent company and a number of intermediate holding companies in the UK and non-insurance subsidiaries in Asia adopted IFRS 9 in 2018 in their individual or separate financial statements where these statements are prepared in accordance with IFRS, including the UK Financial Reporting Standard 101 Reduced Disclosure Framework. The public availability of the financial statements for these entities varies according to the local laws and regulations of each jurisdiction. The results for these entities continue to be accounted for on an IAS 39 basis in these consolidated financial statements. The fair value of the Group’s directly held financial assets at 31 December 2019 and 2018 are shown below. The 2018 comparative information includes financial assets related to M&G plc, which was demerged from the Group in October 2019. Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) as defined by IFRS 9 are shown separately. This excludes financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis. Financial assets that pass All other financial assets, the SPPI test net of derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities, on the Group's 31 Dec 2019 during the year 31 Dec 2019 during the year statement of financial position at 31 Dec 2019 $m $m $m $m Accrued investment income 1,641 — — — Other debtors 2,054 — — — Loans note (1) 13,484 517 3,614 2 Equity securities and holdings in collective investment schemes — — 247,281 44,250 Debt securities note (2) 56,365 4,114 78,205 5,594 Derivative assets, net of derivative liabilities — — 1,353 (5,825) Other investments — — 1,302 44 Deposits 2,615 — — — Cash and cash equivalents 6,965 — — — Total financial assets, net of derivative liabilities 83,124 4,631 331,755 44,065 Financial assets that pass All other financial assets, the SPPI test net of derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities, on the Group's 31 Dec 2018 during the year 31 Dec 2018 during the year statement of financial position at 31 Dec 2018 $m $m $m $m Accrued investment income 3,501 — — — Other debtors 5,207 — — — Loans note (1) 15,175 (658) 8,284 (233) Equity securities and holdings in collective investment schemes — — 273,484 (21,843) Debt securities note (2) 50,335 (2,102) 172,998 (4,464) Derivative assets, net of derivative liabilities — — (15) (1,256) Other investments — — 8,294 622 Deposits 15,023 — — — Cash and cash equivalents 15,442 — — — Total financial assets, net of derivative liabilities 104,683 (2,760) 463,045 (27,174) Notes (1) The loans that pass the SPPI test in the table above are primarily carried at amortised cost under IAS 39. Further information on these loans is as provided in note C3.3. (2) The debt securities that pass the SPPI test in the table above are primarily held by Jackson and are classified as available-for-sale under IAS 39. The credit ratings of these securities, analysed on the same basis of those disclosed in note C3.2, are as follows: 31 Dec 2019 $m 31 Dec 2018 $m Available-for- sale debt securities that pass the SPPI test AAA 1,117 830 AA+ to AA- 11,328 9,236 A+ to A- 15,140 13,009 BBB+ to BBB- 17,972 18,232 Below BBB- 814 1,074 Other 9,994 7,954 Total fair value 56,365 50,335 The underlying financial assets of the Group’s joint ventures and associates accounted for using the equity method are analysed below into those which meet the SPPI condition of IFRS 9, excluding any financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis, and all other financial assets. Fair value information for joint ventures and associates is also set out in the table below: Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Financial assets, net of derivative liabilities, held by the Fair value at the fair value Fair value at the fair value Group's joint ventures and associates accounted for using 31 Dec 2019 during the year 31 Dec 2019 during the year the equity method at 31 Dec 2019 $m $m $m $m Accrued investment income 161 — — — Other debtors 329 — — — Loans 197 — — — Equity securities and holdings in collective investment schemes — — 5,999 444 Debt securities — — 6,080 86 Deposits 521 — — — Cash and cash equivalents 513 — — — Total financial assets, net of derivative liabilities 1,721 — 12,079 530 Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Financial assets, net of derivative liabilities, held by the Fair value at the fair value Fair value at the fair value Group's joint ventures and associates accounted for using 31 Dec 2018 during the year 31 Dec 2018 during the year the equity method at 31 Dec 2018 $m $m $m $m Accrued investment income 167 — — — Other debtors 270 — — — Loans 149 — — — Equity securities and holdings in collective investment schemes — — 4,683 (375) Debt securities — — 5,409 115 Deposits 452 — — — Cash and cash equivalents 504 — — — Total financial assets, net of derivative liabilities 1,542 — 10,092 (260) IFRS 17 ‘ Insurance Contracts ’ In May 2017, the IASB issued IFRS 17 ‘Insurance Contracts’ to replace the existing IFRS 4 ‘Insurance Contracts’. The standard, which is subject to endorsement in the EU and other regions, applies to annual periods beginning on or after 1 January 2021. In June 2019, the IASB issued an exposure draft proposing amendments to IFRS 17 which includes a delay of the effective date of IFRS 17 by one year to periods beginning on or after 1 January 2022. As a result of comments on this exposure draft, the IASB redeliberated on a number of areas of the IFRS 17 with an amended standard expected to be issued in mid-2020. In March 2020, the IASB has tentatively decided to delay the effective date of IFRS 17 by a further year to 1 January 2023. Early application of IFRS 17 is permitted after the standard has been endorsed, provided the entity also applies IFRS 9 on or before the date it first applies IFRS 17. The Group intends to adopt the new standard on its mandatory effective date, alongside the adoption of IFRS 9. IFRS 4 permitted insurers to continue to use the statutory basis of accounting for insurance assets and liabilities that existed in their jurisdictions prior to January 2005. IFRS 17 replaces this with a new measurement model for all insurance contracts. IFRS 17 requires liabilities for insurance contracts to be recognised as the present value of future cash flows, incorporating an explicit risk adjustment, which is updated at each reporting date to reflect current conditions, and a contractual service margin (CSM) that is initially set equal and opposite to any day-one gain arising on initial recognition. Losses are recognised directly into the income statement. For measurement purposes, contracts are grouped together into contracts of similar risk, profitability profile and issue year, with further divisions for contracts that are managed separately. Profit for insurance contracts under IFRS 17 is represented by the recognition of the services provided to policyholders in the period (release of the CSM), release from non-economic risk (release of risk adjustment) and investment profit. The CSM is released as profit over the coverage period of the insurance contract, reflecting the delivery of services to the policyholder. For certain contracts with participating features (where a substantial share of the fair value of the related investments and other underlying items is paid to policyholders), the CSM reflects the variable fee to shareholders. For these contracts, the CSM is adjusted to reflect the changes in economic experience and assumptions. For all other contracts the CSM is only adjusted for non-economic assumptions. The scope of contracts subject to the variable fee remains under consideration by the Group. IFRS 17 introduces a new measure of insurance revenue, based on the delivery of services to policyholders and excluding any premiums related to the investment elements of policies, which will be significantly different from existing premium revenue measures, currently reported in the income statement. In order to transition to IFRS 17, the amount of deferred profit, being the CSM at transition date, needs to be determined. IFRS 17 requires this CSM to be calculated as if the standard had applied retrospectively. However if this is not practical an entity is required to choose either a simplified retrospective approach or to determine the CSM by reference to the fair value of the liabilities at the transition date. The approach for determining the CSM will have a significant impact on both shareholders’ equity and on the amount of profits on in-force business in future reporting periods. IFRS 17 Implementation Programme IFRS 17 is expected to have a significant impact as the requirements of the new standard are complex and requires a fundamental change to accounting for insurance contracts as well as the application of significant judgement and new estimation techniques. The effect of changes required to the Group’s accounting policies as a result of implementing these standards are currently uncertain, particularly as the requirements of the standard continue to be deliberated by the IASB. These changes can be expected to, among other things, alter the timing of IFRS profit recognition. Given the implementation of this standard will involve significant enhancements to IT, actuarial and finance systems of the Group, it will also have an impact on the Group’s expenses. The Group has a Group-wide implementation programme underway to implement IFRS 17 and IFRS 9. The programme is responsible for setting Group-wide accounting policies and developing application methodologies, establishing appropriate processes and controls, sourcing appropriate data and implementing actuarial and finance system changes. A Group-wide Steering Committee, chaired by the Group Chief Financial Officer and Chief Operating Officer with participation from the Group Risk function and the Group’s and business units’ senior finance managers, provides oversight and strategic direction to the implementation programme. A number of sub-committees are also in place to provide governance over the technical interpretation and accounting policies selected, programme management, design and delivery of the programme. The Group is making progress towards providing IFRS 17 financial statements in line with the requirements for interim reporting at its effective date. Other new accounting pronouncements In addition to the above, the following new accounting pronouncements have also been issued and are not yet effective but the Group is not expecting them to have a significant impact on the Group’s financial statements: - Revised Conceptual Framework for Financial Reporting, issued in March 2018 and effective from 1 January 2020; - Amendment to IFRS 3 ‘ Business Combinations ’ issued in October 2018 and effective from 1 January 2020; - Amendments to IAS 1 and IAS 8 ‘ Definition of material ’ issued in October 2018 and effective from 1 January 2020; - Amendments to IFRS 9, IAS 39 and IFRS 7 ‘ Interest rate benchmark reform ’ issued in September 2019 and effective from 1 January 2020; and - Amendments to IAS 1 ‘ Classification of liabilities as current or non-current ’ issued in January 2020 and effective from 1 January 2022. For those IASB standards and amendments that have an effective date after 31 December 2020, the Group’s financial statements will be prepared in accordance with UK-adopted international accounting standards, which is currently being finalised, instead of EU-endorsed IFRS
Investment return	Investment return included in the income statement principally comprises interest income, dividends, investment appreciation and depreciation (realised and unrealised gains and losses) on investments designated as fair value through profit or loss, and realised gains and losses (including impairment losses) on items held at amortised cost and Jackson’s debt securities designated as available-for-sale. Movements in unrealised appreciation or depreciation of debt securities designated as available-for-sale are recorded in other comprehensive income. Interest income is recognised as it accrues, taking into account the effective yield on investments. Dividends on equity securities are recognised on the ex-dividend date and rental income is recognised on an accrual basis.
Share-based payments and related movements in own shares	The Group offers discretionary share awards to certain key employees and all-employee share plans for all UK and a number of Asian locations. The compensation expense charged to the income statement is primarily based upon the fair value of the options granted, the vesting period and the vesting conditions. The Company has established trusts to facilitate the delivery of Prudential plc shares under these plans. The cost to the Company of acquiring these newly issued shares held in trusts is shown as a deduction from shareholders’ equity.
Tax	Prudential is subject to tax in numerous jurisdictions and the calculation of the total tax charge inherently involves a degree of estimation and judgement. Current tax expense is charged or credited based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year and adjustments made in relation to prior years. The positions taken in tax returns where applicable tax regulation is subject to interpretation are recognised in full in the determination of the tax charge in the financial statements if the Group considers that it is probable that the taxation authority will accept those positions. Otherwise, provisions are established based on management's estimate and judgement of the likely amount of the liability, or recovery by providing for the single best estimate of the most likely outcome or the weighted average expected value where there are multiple outcomes. The total tax charge includes tax expense attributable to both policyholders and shareholders. The tax expense attributable to policyholders comprises the tax on the income of the consolidated with-profits and unit-linked funds. In certain jurisdictions, life insurance companies are taxed on both their shareholders' profits and on their policyholders' insurance and investment returns on certain insurance and investment products. Although both types of tax are included in the total tax charge in the Group's consolidated income statement, they are presented separately in the consolidated income statement to provide the most relevant information about tax that the Group pays on its profits. Deferred taxes are provided under the liability method for all relevant temporary differences. IAS 12 'Income Taxes' does not require all temporary differences to be provided for, in particular, the Group does not provide for deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the temporary difference created is not expected to reverse in the foreseeable future. Deferred tax assets are only recognised when it is more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period.
Business combinations	Business combination Business acquisitions are accounted for by applying the purchase method of accounting, which adjusts the net assets of the acquired company to fair value at the date of purchase. The excess of the acquisition consideration over the fair value of the assets and liabilities of the acquired business is recorded as goodwill. The Group chooses the full goodwill method or the partial goodwill method to calculate goodwill on an acquisition by acquisition basis. Expenses related to acquiring new subsidiaries are charged to the income statement in the period in which they are incurred and not included in goodwill. Income and expenses of acquired businesses are included in the income statement from the date of acquisition. Where the Group writes a put option over its non-controlling interests as part of its business acquisition, which if exercised triggers the purchase by the Group of the non-controlling interests, the put option is recognised as a financial liability at the acquisition date with a corresponding amount, deducted directly from shareholder’s equity due to the significant risks and rewards of ownership remaining with the non-controlling interests. Any subsequent changes to the carrying amount of the put liability are also recognised within equity.
Goodwill	Goodwill Goodwill is capitalised and carried on the Group consolidated statement of financial position as an intangible asset at initial value less any accumulated impairment losses. Goodwill impairment testing is conducted annually and when there is an indication of impairment. Goodwill shown on the consolidated statement of financial position at 31 December 2019 is wholly attributable to shareholders and represents amounts allocated to businesses in Asia and Africa in respect of both acquired asset management and life businesses.
Deferred acquisition costs and other intangible assets	Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. Deferred acquisition costs are accounted for as described in note A4.1(c). Other intangible assets, such as distribution rights and software, are valued initially at the price paid to acquire them and are subsequently carried at cost less amortisation and any accumulated impairment losses. For intangibles other than DAC, amortisation follows the pattern in which the future economic benefits are expected to be consumed. If the pattern cannot be determined reliably, a straight-line method is applied. For software, the amortisation generally represents the licence period of the software acquired. Amortisation of intangible assets is charged to the ‘acquisition costs and other expenditure’ line in the consolidated income statement. Impairment testing is conducted when there is an indication of impairment.
Share capital; Share premium	Shares are classified as equity when their terms do not create an obligation to transfer assets. Amounts recorded in share capital represent the nominal value of the shares issued. The difference between the proceeds received on issue of the shares, net of share issue costs, and the nominal value of the shares issued, is credited to share premium. Where the Company purchases shares for the purposes of employee incentive plans, the consideration paid, net of issue costs, is deducted from retained earnings. Upon issue or sale any consideration received is credited to retained earnings net of related costs.
Earnings per share	Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders (after related tax and non-controlling interests) by the weighted average number of ordinary shares outstanding during the year, excluding those held in employee share trusts and consolidated investment funds, which are treated as cancelled. For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group's only class of potentially dilutive ordinary shares are those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. No adjustment is made if the impact is anti-dilutive overall.
Property, plant and equipment	Property, plant and equipment comprise Group occupied properties and tangible assets. Following the adoption of IFRS 16 on 1 January 2019 (as described in note A3), property, plant and equipment also includes right-of-use assets for operating leases of properties occupied by the Group and leases of equipment and other tangible assets. All property, plant and equipment, including the right-of-use assets under operating leases, are held at cost less cumulative depreciation calculated using the straight-line method.
Basis of consolidation	The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the following are met: (1) it has power over an investee; (2) it is exposed to, or has rights to, variable returns from its involvement with the investee; and (3) it has ability to use its power over the investee to affect its own returns. (i) Subsidiaries Subsidiaries are those investees that the Group controls. The majority of the Group’s subsidiaries are corporate entities, but the Group’s insurance operations also invest in a number of limited partnerships. The Group performs a re-assessment of consolidation whenever there is a change in the substance of the relationship between the Group and an investee. Where the Group is deemed to control an entity it is treated as a subsidiary and its results, assets and liabilities are consolidated. Where the Group holds a minority share in an entity, with no control over the entity, the investments are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. (ii) Joint ventures and associates Joint ventures are joint arrangements arising from a contractual agreement whereby the Group and other investors have joint control of the net assets of the arrangement. In a number of these arrangements, the Group’s share of the underlying net assets may be less than 50 per cent but the terms of the relevant agreement make it clear that control is jointly exercised between the Group and the third party. Associates are entities over which the Group has significant influence, but it does not control. Generally it is presumed that the Group has significant influence if it holds between 20 per cent and 50 per cent voting rights of the entity. With the exception of those referred to below, the Group accounts for its investments in joint ventures and associates by using the equity method of accounting. The Group’s share of profit or loss of its joint ventures and associates is recognised in the income statement and its share of movements in other comprehensive income is recognised in other comprehensive income. The equity method of accounting does not apply to investments in associates and joint ventures held by the Group’s insurance or investment funds. This includes venture capital business, mutual funds and unit trusts and which, as allowed by IAS 28, ‘Investments in Associates and Joint Ventures’, are carried at fair value through profit or loss. (iii) Structured entities Structured entities are those that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. Voting rights relate to administrative tasks. Relevant activities are directed by means of contractual arrangements. The Group invests in structured entities such as: - Collective investment schemes; - Limited partnerships; - Variable interest entities; - Investment vehicles within separate accounts offered through variable annuities; - Collateralised debt obligations; - Mortgage-backed securities; and - Similar asset-backed securities. Collective investment schemes The Group invests in collective investment schemes, which invest mainly in equities, bonds, cash and cash equivalents, and properties. The Group’s percentage ownership in these entities can fluctuate on a daily basis according to the participation of the Group and other investors in them. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity exceeds 50 per cent, the Group is judged to have control over the entity. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity is between 20 per cent and 50 per cent, the facts and circumstances of the Group’s involvement in the entity are considered, including the rights to any fees earned by the asset manager from the entity, in forming a judgement as to whether the Group has control over the entity. - Where the entity is managed by a Group asset manager, and the Group’s ownership holding in the entity is less than 20 per cent, the Group is judged to not have control over the entity. - Where the entity is managed by an asset manager outside the Group, an assessment is made of whether the Group has existing rights that gives it the ability to direct the current activities of the entity and therefore control the entity. In assessing the Group’s ability to direct an entity, the Group considers its ability relative to other investors. The Group has a limited number of investment funds where it considers it has such ability. Where the Group is deemed to control these entities, they are treated as a subsidiary and are consolidated, with the interests of investors other than the Group being classified as liabilities, and appear as net asset value attributable to unit holders of consolidated investment funds. Where the Group does not control these entities (as it is deemed to be acting as an agent) and they do not meet the definition of associates, they are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. Where the Group’s asset manager sets up investment funds as part of asset management operations, the Group’s interest is limited to the administration fees charged to manage the assets of such entities. With no participation in these entities, the Group does not retain risks associated with investment funds. For these investment funds, the Group is not deemed to control the entities but to be acting as an agent. The Group generates returns and retains the ownership risks in investment vehicles commensurate to its participation and does not have any further exposure to the residual risks of these investment vehicles. Jackson’s separate account assets These are investment vehicles that invest contract holders’ premiums in equity, fixed income, bonds and money market mutual funds. The contract holder retains the underlying returns and the ownership risks related to the underlying investments. The shareholder’s economic interest in separate accounts is limited to the administrative fees charged. The separate accounts are set up as separate regulated entities governed by a Board of Governors or trustees for which the majority of the members are independent of Jackson or any affiliated entity. The independent members are responsible for any decision making that impacts contract holders’ interest and govern the operational activities of the entities’ advisers, including asset managers. Accordingly, the Group does not control these vehicles. These investments are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position. Limited partnerships The Group’s insurance operations invest in a number of limited partnerships, either directly or through unit trusts, through a mix of capital and loans. These limited partnerships are managed by general partners, in which the Group holds equity. Such interest in general partners and limited partnerships provide the Group with voting and similar rights to participate in the governance framework of the relevant activities in which limited partnerships are engaged in. Accounting for the limited partnerships as subsidiaries, joint ventures, associates or other financial investments depends on the terms of each partnership agreement and the shareholdings in the general partners. Other structured entities The Group holds investments in mortgage-backed securities, collateralised debt obligations and similar asset-backed securities, the majority of which are actively traded in a liquid market. The Group consolidates the vehicles that hold the investments where the Group is deemed to control the vehicles. When assessing control over the vehicles, the factors considered include the purpose and design of the vehicle, the Group’s exposure to the variability of returns and the scope of the Group’s ability to direct the relevant activities of the vehicle including any kick-out or removal rights that are held by third parties. The outcome of the control assessment is dependent on the terms and conditions of the respective individual arrangements. The majority of such vehicles are not consolidated. In these cases the Group is not the sponsor of the vehicles in which it holds investments and has no administrative rights over the vehicles’ activities. The Group generates returns and retains the ownership risks commensurate to its holding and its exposure to the investments. Accordingly the Group does not have power over the relevant activities of such vehicles and all are carried at fair value through profit or loss within financial investments in the consolidated statement of financial position.
Prudential plc
Accounting policies
Basis of preparation and exchange rates	1 The financial statements of the parent company are prepared in accordance with UK Generally Accepted Accounting Practice, including Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’). In preparing these financial statements, the Company applies the recognition and measurement requirements in International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) and endorsed by the EU but makes amendments where necessary in order to comply with the Companies Act 2006.
Measurement and presentation of derivatives and debt securities of US insurance operations; financial instruments other than instruments classified as long-term business contracts	Financial Instruments Under IFRS 9, except for derivative instruments that are mandatorily classified as fair value through profit or loss, all of the financial assets and liabilities of the Company are classified as amortised cost.The Company assesses impairment on its loans and receivables using the expected credit loss approach. The expected credit loss on the Company’s loans and receivables, the majority of which represent loans to its subsidiaries, have been assessed by taking into account the probability of default on those loans. In all cases the subsidiaries are expected to have sufficient resources to repay the loan either now or over time (based on projected earnings). For loans recallable on demand the expected credit loss has therefore been limited to the impact of discounting the value of the loan between the balance sheet date and the anticipated recovery date.
Investments in and amounts owed by subsidiary undertakings	Investments in subsidiary undertakings Investments in subsidiary undertakings are shown at cost less impairment. Investments are assessed for impairment by comparing the net assets of the subsidiary undertakings with the carrying value of the investment. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost, less provisions. Provisions are determined using the expected credit loss approach under IFRS 9.
Derivatives	Derivatives Derivative financial instruments are held to manage certain macro-economic exposures. Derivative financial instruments are carried at fair value with changes in fair value included in the profit and loss account. Refer to Section 6.1 of the Group Risk Framework for detail of the approach to market risk. Financial Instruments Under IFRS 9, except for derivative instruments that are mandatorily classified as fair value through profit or loss, all of the financial assets and liabilities of the Company are classified as amortised cost.The Company assesses impairment on its loans and receivables using the expected credit loss approach. The expected credit loss on the Company’s loans and receivables, the majority of which represent loans to its subsidiaries, have been assessed by taking into account the probability of default on those loans. In all cases the subsidiaries are expected to have sufficient resources to repay the loan either now or over time (based on projected earnings). For loans recallable on demand the expected credit loss has therefore been limited to the impact of discounting the value of the loan between the balance sheet date and the anticipated recovery date. For loans with a fixed maturity date the expected credit loss has been determined with reference to the historic experience of loans with equivalent credit characteristics.
Borrowings	Borrowings Borrowings are initially recognised at fair value, net of transaction costs, and subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds, net of transaction costs, is amortised through the profit and loss account to the date of maturity or, for subordinated debt, over the expected life of the instrument. Where modifications to borrowings do not result in a substantial difference to the terms of the instrument, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining expected life of the modified instrument. Where modifications to borrowings do result in a substantial difference to the terms of the instrument, the instrument is treated as if it had been extinguished and replaced by a new instrument which is initially recognised at fair value and subsequently accounted for on an amortised cost basis using the effective interest method. Any costs or fees arising from such a modification are recognised as an expense when incurred.
Pension schemes; Pensions	Pensions The Company historically assumed a portion of the pension surplus or deficit of the Group’s main pension scheme, the Prudential Staff Pension Scheme (‘PSPS’). The Company's portion of the surplus was transferred to M&GPrudential Services Limited at 30 June 2019. Up until that date, the Company applied the requirements of IAS 19 ‘ Employee Benefits ’ (as revised in 2011) for the accounting of its interest in the PSPS surplus or deficit. The key items are highlighted below. A pension surplus or deficit is recorded as the difference between the present value of the scheme liabilities and the fair value of the scheme assets. The Company’s share of pension surplus is recognised to the extent that the Company is able to recover a surplus either through reduced contributions in the future or through refunds from the scheme. The assets and liabilities of the defined benefit pension schemes of the Prudential Group are subject to a full triennial actuarial valuation using the projected unit method. Estimated future cash flows are then discounted at a high quality corporate bond yield, adjusted to allow for the difference in duration between the bond index and the pension liabilities, where appropriate, to determine their present value. These calculations are performed by independent actuaries. The aggregate of the actuarially determined service costs of the currently employed personnel and the net income (interest) on the net scheme assets (liabilities) at the start of the period, is recognised in the profit or loss account. Actuarial gains and losses as a result of the changes in assumptions, experience variances or the return on scheme assets excluding amounts included in the net deferred benefit asset (liability) are recorded in other comprehensive income. The loss on transfer of the pension surplus transferred to M&GPrudential Services Limited has been recognised in the profit or loss account.
Share-based payments and related movements in own shares	Share-based payments The Group offers share award and option plans for certain key employees and a Save As You Earn (‘SAYE’) plan for all UK and certain overseas employees. The share-based payment plans operated by the Group are mainly equity-settled. Under IFRS 2 ‘Share-based payment’, where the Company, as the parent company, has the obligation to settle the options or awards of its equity instruments to employees of its subsidiary undertakings, and such share-based payments are accounted for as equity-settled in the Group financial statements, the Company records an increase in the investment in subsidiary undertakings for the value of the share options and awards granted with a corresponding credit entry recognised directly in equity. The value of the share options and awards granted is based upon the fair value of the options and awards at the grant date, the vesting period and the vesting conditions. Cash receipts from business units in respect of newly issued share schemes are treated as returns of capital within investments in subsidiaries.
Tax	Tax Current tax expense is charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year. To the extent that losses of an individual UK company are not offset, they can be carried back for one year or carried forward indefinitely to be offset , subject to restrictions based on future taxable profits,against profits arising from the same company or other companies in the same UK tax group. Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ’ Income Taxes ’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The Group’s UK subsidiaries each file separate tax returns. In accordance with UK tax legislation, where one domestic UK company is a 75 per cent owned subsidiary of another UK company or both are 75 per cent owned subsidiaries of a common parent, the companies are considered to be within the same UK tax group. For companies within the same tax group, trading losses may be offset against taxable profits arising in the same or future accounting periods for the purposes of determining current and deferred taxes.
Shareholders' dividends; Dividends	Dividends Interim dividends are recorded in the period in which they are paid.
Share capital; Share premium	Share premium The difference between the proceeds received on issue of shares and the nominal value of the shares issued is credited to the share premium account.
Foreign exchange; Foreign currency translation	Foreign currency translation Transactions not denominated in the Company’s functional currency are initially recorded at the functional rate of currency prevailing on the date of the transaction. Monetary assets and liabilities not denominated in the Company’s functional currency , including borrowings that have been used to finance or provide a hedge against Group equity investments in overseas subsidiaries, are translated to the Company's functional currency at year end exchange rates. The impact of these currency translations is recorded within the profit and loss account for the year. As discussed above, the Company's functional currency changed from pounds sterling to US dollars on 31 December 2019. The Company has also changed its presentation currency from pounds sterling to US dollars.

Basis of preparation and acco_3

Basis of preparation and accounting policies (Tables)	12 Months Ended
	Dec. 31, 2019
Basis of preparation and accounting policies
Schedule of exchange rates applied	The exchange rates applied for balances and transactions in the presentation currency of the Group, US dollars ($),and other currencies were: Closing Average rate Closing Average rate Closing Average rate Opening rate at for rate at for rate at for rate at $: local currency 31 Dec 2019 31 Dec 2018 31 Dec 2017 1 Jan 2017 China 6.97 6.91 6.87 6.61 6.51 6.76 6.95 Hong Kong 7.79 7.84 7.83 7.84 7.82 7.79 7.75 Indonesia 13,882.50 14,140.84 14,380.00 14,220.82 13,567.00 13,383.03 13,471.96 Malaysia 4.09 4.14 4.13 4.03 4.05 4.30 4.49 Singapore 1.34 1.36 1.36 1.35 1.34 1.38 1.44 Thailand 29.75 31.05 32.56 32.30 32.59 33.91 35.81 UK 0.75 0.78 0.79 0.75 0.74 0.78 0.81 Vietnam 23,172.50 23,227.64 23,195.00 23,017.17 22,708.16 22,716.82 22,770.08
Schedule of effect of foreign exchange movement from continuing operations	The effect of foreign exchange movement from continuing operations arising during the years shown recognised in other comprehensive income is: 2019 $m 2018 $m 2017 $m Asia operations 194 (206) 363 Unallocated to a segment (other funds) (42) 167 (234) 152 (39) 129
Schedule of effect of IFRS 16 on statement of financial position	The aggregate effect of the adoption of the standard on the statement of financial position at 1 January 2019 is shown in the table below: Continuing Discontinued Total operations operations Group Effect of adoption of IFRS 16 at 1 January 2019 $m $m $m Assets Property, plant and equipment (right-of-use assets) 527 368 895 Total assets 527 368 895 Liabilities Operational borrowings (lease liability) 541 414 955 Accruals, deferred income and other liabilities (accrued lease payment balance under IAS 17) (14) (46) (60) Total liabilities 527 368 895
Schedule of reconciliation of lease liability and lease commitments	Reconciliation of IFRS 16 lease liability and IAS 17 lease commitments Total Group $m IFRS 16 operating lease liability shown in the table above 955 Add back impact of discounting 210 IFRS 16 operating lease liability on an undiscounted basis 1,165 Difference in lease rental payments due to probable renewals or early termination decisions reflected above (48) Other (6) Total operating lease commitments at 31 December 2018* 1,111 * As disclosed in note D5 of the Group’s IFRS financial statements for the year ended 31 December 2018 and after excluding $76 million for the amount relating to certain lease commitments from the central operations to the discontinued UK with-profits fund.
Schedule of financial assets on the Group's statement of financial position that pass the SPPI test of IFRS 9	Financial assets that pass All other financial assets, the SPPI test net of derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities, on the Group's 31 Dec 2019 during the year 31 Dec 2019 during the year statement of financial position at 31 Dec 2019 $m $m $m $m Accrued investment income 1,641 — — — Other debtors 2,054 — — — Loans note (1) 13,484 517 3,614 2 Equity securities and holdings in collective investment schemes — — 247,281 44,250 Debt securities note (2) 56,365 4,114 78,205 5,594 Derivative assets, net of derivative liabilities — — 1,353 (5,825) Other investments — — 1,302 44 Deposits 2,615 — — — Cash and cash equivalents 6,965 — — — Total financial assets, net of derivative liabilities 83,124 4,631 331,755 44,065 Financial assets that pass All other financial assets, the SPPI test net of derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities, on the Group's 31 Dec 2018 during the year 31 Dec 2018 during the year statement of financial position at 31 Dec 2018 $m $m $m $m Accrued investment income 3,501 — — — Other debtors 5,207 — — — Loans note (1) 15,175 (658) 8,284 (233) Equity securities and holdings in collective investment schemes — — 273,484 (21,843) Debt securities note (2) 50,335 (2,102) 172,998 (4,464) Derivative assets, net of derivative liabilities — — (15) (1,256) Other investments — — 8,294 622 Deposits 15,023 — — — Cash and cash equivalents 15,442 — — — Total financial assets, net of derivative liabilities 104,683 (2,760) 463,045 (27,174) Notes (1) The loans that pass the SPPI test in the table above are primarily carried at amortised cost under IAS 39. Further information on these loans is as provided in note C3.3. (2) The debt securities that pass the SPPI test in the table above are primarily held by Jackson and are classified as available-for-sale under IAS 39. The credit ratings of these securities, analysed on the same basis of those disclosed in note C3.2, are as follows: 31 Dec 2019 $m 31 Dec 2018 $m Available-for- sale debt securities that pass the SPPI test AAA 1,117 830 AA+ to AA- 11,328 9,236 A+ to A- 15,140 13,009 BBB+ to BBB- 17,972 18,232 Below BBB- 814 1,074 Other 9,994 7,954 Total fair value 56,365 50,335
Schedule of financial assets held by the Group's joint ventures and associates that pass the SPPI test of IFRS 9	Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Financial assets, net of derivative liabilities, held by the Fair value at the fair value Fair value at the fair value Group's joint ventures and associates accounted for using 31 Dec 2019 during the year 31 Dec 2019 during the year the equity method at 31 Dec 2019 $m $m $m $m Accrued investment income 161 — — — Other debtors 329 — — — Loans 197 — — — Equity securities and holdings in collective investment schemes — — 5,999 444 Debt securities — — 6,080 86 Deposits 521 — — — Cash and cash equivalents 513 — — — Total financial assets, net of derivative liabilities 1,721 — 12,079 530 Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Financial assets, net of derivative liabilities, held by the Fair value at the fair value Fair value at the fair value Group's joint ventures and associates accounted for using 31 Dec 2018 during the year 31 Dec 2018 during the year the equity method at 31 Dec 2018 $m $m $m $m Accrued investment income 167 — — — Other debtors 270 — — — Loans 149 — — — Equity securities and holdings in collective investment schemes — — 4,683 (375) Debt securities — — 5,409 115 Deposits 452 — — — Cash and cash equivalents 504 — — — Total financial assets, net of derivative liabilities 1,542 — 10,092 (260)

Analysis of performance by se_2

Analysis of performance by segment (Tables)	12 Months Ended
	Dec. 31, 2019
Analysis of performance by segment
Schedule of segment results	Note 2019 $m 2018 $m 2017 $m Asia Insurance operations B3(a) 2,993 2,646 2,319 Asset management 283 242 227 Total Asia 3,276 2,888 2,546 US Jackson (US insurance operations) B3(b) 3,038 2,552 2,854 Asset management 32 11 12 Total US 3,070 2,563 2,866 Other income and expenditure Investment return and other income 50 70 14 Interest payable on core structural borrowings note (i) (516) (547) (548) Corporate expenditure note (ii) (460) (490) (465) Total other income and expenditure (926) (967) (999) Restructuring costs note (iii) (110) (75) (35) Adjusted IFRS operating profit based on longer-term investment returns 5,310 4,409 4,378 Short-term fluctuations in investment returns on shareholder-backed business B1.2 (3,203) (791) (1,994) Amortisation of acquisition accounting adjustments note (iv) (43) (61) (82) (Loss) on disposal of businesses and corporate transactions D1 (142) (107) 286 Profit from continuing operations before tax attributable to shareholders 1,922 3,450 2,588 Tax credit (charge) attributable to shareholders’ returns B4 31 (569) (840) Profit from continuing operations 1,953 2,881 1,748 Profit from discontinued operations D2 1,319 1,142 1,333 Re-measurement of discontinued operations on demerger D2 188 — — Cumulative exchange loss recycled from other comprehensive income D2 (2,668) — — (Loss) profit from discontinued operations (1,161) 1,142 1,333 Profit for the year 792 4,023 3,081 Attributable to: Equity holders of the Company From continuing operations 1,944 2,877 1,747 From discontinued operations (1,161) 1,142 1,333 Non-controlling interests from continuing operations 9 4 1 792 4,023 3,081 Basic earnings per share (in cents) Note Based on adjusted IFRS operating profit based on longer-term investment returns, net of tax, from continuing operations note (v) B5 175.0 ¢ 145.2 ¢ 134.6 ¢ Based on profit for the year from continuing operations B5 75.1 ¢ 111.7 ¢ 68.0 ¢ Based on (loss) profit for the year from discontinued operations B5 (44.8) ¢ 44.3 ¢ 52.0 ¢ Notes (i) Interest charged to the income statement on debt that was substituted to M&G plc in October 2019 for 2019 was $(179) million (2018: $(128) million; 2017: $ (90) million). (ii) Corporate expenditure as shown above is primarily for head office functions in London and Hong Kong. (iii) Restructuring costs include group-wide costs incurred for IFRS 17 implementation in 2019 from continuing operations. (iv) Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012. (v) Tax charges have been reflected as operating and non-operating in the same way as for the pre-tax items. Further details on tax charges are provided in note B4.
Schedules of short-term fluctuations in investment returns on shareholder-backed business	2019 $m 2018 $m 2017 $m Asia operations note (i) 657 (684) (1) US operations note (ii) (3,757) (134) (2,019) Other operations (103) 27 26 Total (3,203) (791) (1,994) (i) Asia operations In Asia, the positive short-term fluctuations of $657 million (2018: negative $(684) million; 2017: negative $(1) million) principally reflect net value movements on shareholders’ assets and related liabilities following decreases in bond yields during the year. (ii) US operations The short-term fluctuations in investment returns for US insurance operations are reported net of the related credit for amortisation of deferred acquisition costs of $1,248 million as shown in note C5.2(i) (2018: debit of $(152) million; 2017: credit of $595 million) and comprise amounts in respect of the following items: 2019 $m 2018 $m 2017 $m Net equity hedge result note (a) (4,582) (78) (1,920) Other than equity-related derivatives note (b) 678 (85) (46) Debt securities note (c) 156 (42) (94) Equity-type investments: actual less longer-term return 18 51 15 Other items (27) 20 26 Total net of related DAC amortisation (3,757) (134) (2,019) Notes (a) Net equity hedge result The purpose of the inclusion of this item in short-term fluctuations in investment returns is to segregate the amount included in pre-tax profit that relates to the accounting effect of market movements on both the value of guarantees in Jackson’s variable annuity and fixed index annuity products and on the related derivatives used to manage the exposures inherent in these guarantees. The level of fees recognised in non-operating profit is determined by reference to that allowed for within the reserving basis. The variable annuity guarantees are valued in accordance with either Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures (formerly FAS 157) or ASC Topic 944, Financial Services – Insurance (formerly SOP 03-01) depending on the type of guarantee. Both approaches require an entity to determine the total fee (‘the fee assessment’) that is expected to fund future projected benefit payments arising using the assumptions applicable for that method. The method under FAS 157 requires this fee assessment to be fixed at the time of issue. As the fees included within the initial fee assessment are earned, they are included in non-operating profit to match the corresponding movement in the guarantee liability. Other guarantee fees are included in operating profit, which in 2019 was $699 million (2018: $ 657 million; 2017: $622 million), net of related DAC amortisation. As the Group applies US GAAP for the measured value of the product guarantees, the net equity hedge result also includes asymmetric impacts where the measurement bases of the liabilities and associated derivatives used to manage the Jackson annuity business differ. The net equity hedge result therefore includes significant accounting mismatches and other factors that do not represent the economic result. These other factors include: - The variable annuity guarantees and fixed index annuity embedded options being only partially fair valued under ‘grandfathered’ US GAAP; - The interest rate exposure being managed through the other than equity-related derivative programme explained in note (b) below; and - Jackson’s management of its economic exposures for a number of other factors that are treated differently in the accounting frameworks such as future fees and assumed volatility levels. The net equity hedge result can be summarised as follows: 2019 $m 2018 $m 2017 $m Fair value movements on equity hedge instruments* (5,314) 399 (2,411) Accounting value movements on the variable and fixed index annuity guarantee liabilities (22) (1,194) (128) Fee assessments net of claim payments 754 717 619 Total net of related DAC amortisation (4,582) (78) (1,920) * Held to manage equity exposures of the variable annuity guarantees and fixed index annuity options as discussed in Explanation of Performance and Other Financial Measures. (b) Other than equity-related derivatives The fluctuations for this item comprise the net effect of: - Fair value movements on free-standing, other than equity-related derivatives; - Fair value movements on the Guaranteed Minimum Income Benefit (GMIB) reinsurance asset that are not matched by movements in the underlying GMIB liability, which is not fair valued; and - Related amortisation of DAC. The free-standing, other than equity-related derivatives, are held to manage interest rate exposures and durations within the general account and the variable annuity guarantees and fixed index annuity embedded options described in note (a) above. Accounting mismatches arise because of differences between the measurement basis and presentation of the derivatives, which are fair valued with movements recorded in the income statement, and the exposures they are intended to manage. (c) Short-term fluctuations related to debt securities 2019 $m 2018 $m 2017 $m (Charges) credits in the year: Losses on sales of impaired and deteriorating bonds (28) (6) (4) Bond write-downs (15) (5) (3) Recoveries 1 25 13 Total (charges) credits in the year (42) 14 6 Risk margin allowance deducted from adjusted IFRS operating profit based on longer-term investment returns* 109 104 112 67 118 118 Interest-related realised gains (losses): Gains (losses) arising in the year 220 (12) (55) Less: Amortisation of gains and losses arising in current and prior years to adjusted IFRS operating profit based on longer-term investment returns (129) (155) (180) 91 (167) (235) Related amortisation of deferred acquisition costs (2) 7 24 Total short-term fluctuations related to debt securities net of related DAC amortisation 156 (42) (93) * The debt securities of Jackson are held in the general account of the business. Realised gains and losses are recorded in the income statement with normalised returns included in adjusted IFRS operating profit based on longer-term investment returns with variations from year to year included in the short-term fluctuations category. The risk margin reserve charge for longer-term credit-related losses included in adjusted IFRS operating profit based on longer-term investment returns of Jackson for 2019 is based on an average annual risk margin reserve of 17 basis points (2018: 18 basis points; 2017: 21 basis points) on average book values of $62.6 billion (2018: $57.1 billion; 2017: $55.3 billion) as shown below:
Schedule of average annual risk margin reserve	Moody’s rating category (or equivalent under NAIC ratings of mortgage-backed securities) 2019 2018 2017 Average Annual Average Annual Average Annual book expected book expected book expected value RMR loss value RMR loss value RMR loss $m % $m $m % $m $m % $m A3 or higher 38,811 0.10 (38) 29,982 0.10 (31) 27,277 0.12 (33) Baa1, 2 or 3 22,365 0.24 (53) 25,814 0.21 (55) 26,626 0.22 (58) Ba1, 2 or 3 1,094 0.85 (9) 1,042 0.98 (10) 1,046 1.03 (11) B1, 2 or 3 223 2.56 (6) 289 2.64 (8) 318 2.70 (9) Below B3 75 3.39 (3) 11 3.69 — 23 3.78 (1) Total 62,568 0.17 (109) 57,138 0.18 (104) 55,290 0.21 (112) Related amortisation of deferred acquisition costs 19 22 21 Risk margin reserve charge to adjusted IFRS operating profit based on longer-term investment returns for longer-term credit-related losses (90) (82) (91)
Schedule of equity-type securities	Equity-type securities such as common and preferred stock and portfolio holdings in mutual funds 5.5 % to 6.7 % 6.7 % to 7.2 % 6.1 % to 6.5 % Other equity-type securities such as investments in limited partnerships and private equity funds 7.5 % to 8.7 % 8.7 % to 9.2 % 8.1 % to 8.5 %
Schedule of segmental income statements	2019 $m Unallocated Group to a segment total Total (central continuing Asia US segment operations) operations note (vi) Gross premiums earned 23,757 21,209 44,966 98 45,064 Outward reinsurance premiums (1,108) (467) (1,575) (8) (1,583) Earned premiums, net of reinsurance 22,649 20,742 43,391 90 43,481 Other income note (i) 548 61 609 91 700 Total external revenue notes (ii),(iii) 23,197 20,803 44,000 181 44,181 Intra-group revenue — 34 34 (34) — Interest income note (iv) 1,569 2,971 4,540 67 4,607 Other investment return note B1.5 13,406 31,623 45,029 (81) 44,948 Total revenue, net of reinsurance 38,172 55,431 93,603 133 93,736 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance (29,119) (54,734) (83,853) (52) (83,905) Acquisition costs and other operating expenditure note B2, (5,157) (1,402) (6,559) (724) (7,283) Interest on core structural borrowings — (20) (20) (496) (516) Gain (loss) on disposal of businesses and corporate transactions note D1.1 265 — 265 (407) (142) Total charges, net of reinsurance and loss on disposal of businesses (34,011) (56,156) (90,167) (1,679) (91,846) Share of profit from joint ventures and associates, net of related tax 397 — 397 — 397 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (v) 4,558 (725) 3,833 (1,546) 2,287 Tax charge attributable to policyholders’ returns (365) — (365) — (365) Profit (loss) before tax attributable to shareholders’ returns from continuing operations 4,193 (725) 3,468 (1,546) 1,922 Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations: Profit for the year from continuing operations 3,725 (380) 3,345 (1,392) 1,953 Tax attributable to shareholders 468 (345) 123 (154) (31) Profit (loss) before tax 4,193 (725) 3,468 (1,546) 1,922 Short-term fluctuations in investment returns on shareholder-backed business (657) 3,757 3,100 103 3,203 Amortisation of acquisition accounting adjustments 5 38 43 — 43 (Gain) loss on disposal of businesses and corporate transactions note D1.1 (265) — (265) 407 142 Adjusted IFRS operating profit based on longer-term investment returns 3,276 3,070 6,346 (1,036) 5,310 2018 $m Unallocated Group to a segment total Total (other continuing Asia US segment operations) operations note (vi) Gross premiums earned note(vii) 21,989 23,573 45,562 52 45,614 Outward reinsurance premiums (768) (412) (1,180) (3) (1,183) Earned premiums, net of reinsurance 21,221 23,161 44,382 49 44,431 Other income note(i) 412 67 479 52 531 Total external revenue notes (ii),(iii) 21,633 23,228 44,861 101 44,962 Intra-group revenue 56 67 123 (123) — Interest income note(iv) 1,450 2,692 4,142 68 4,210 Other investment return note B1.5 (4,326) (9,085) (13,411) 84 (13,327) Total revenue, net of reinsurance 18,813 16,902 35,715 130 35,845 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance note(vii) (11,664) (11,736) (23,400) (26) (23,426) Acquisition costs and other operating expenditure note B2, note(vii) (5,162) (2,773) (7,935) (592) (8,527) Interest on core structural borrowings — (20) (20) (527) (547) Loss on disposal of businesses and corporate transactions note D1.1 (15) (51) (66) (41) (107) Total charges, net of reinsurance and gain on disposal of business (16,841) (14,580) (31,421) (1,186) (32,607) Share of profit from joint ventures and associates, net of related tax 319 — 319 — 319 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (v) 2,291 2,322 4,613 (1,056) 3,557 Tax charge attributable to policyholders’ returns (107) — (107) — (107) Profit (loss) before tax attributable to shareholders’ returns from continuing operations 2,184 2,322 4,506 (1,056) 3,450 Analysis of profit (loss) before tax attributable to shareholders’ returns from continuing operations: Profit for the year from continuing operations 1,815 1,982 3,797 (916) 2,881 Tax attributable to shareholders 369 340 709 (140) 569 Profit (loss) before tax 2,184 2,322 4,506 (1,056) 3,450 Short-term fluctuations in investment returns on shareholder-backed business 684 134 818 (27) 791 Amortisation of acquisition accounting adjustments 5 56 61 — 61 Loss on disposal of businesses and corporate transactions 15 51 66 41 107 Adjusted IFRS operating profit (loss) based on longer-term investment returns 2,888 2,563 5,451 (1,042) 4,409 2017 $m Unallocated Group to a segment total Total (other continuing Asia US segment operations) operations note (vi) Gross premiums earned 20,220 19,545 39,765 35 39,800 Outward reinsurance premiums (845) (454) (1,299) (5) (1,304) Earned premiums, net of reinsurance 19,375 19,091 38,466 30 38,496 Other income note(i) 396 862 1,258 61 1,319 Total external revenue note(ii),(iii) 19,771 19,953 39,724 91 39,815 Intra-group revenue 52 82 134 (134) — Interest income note(iv) 1,201 2,688 3,889 86 3,975 Other investment return note B1.5 10,392 21,200 31,592 7 31,599 Total revenue, net of reinsurance 31,416 43,923 75,339 50 75,389 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance note(vii) (23,574) (40,220) (63,794) (14) (63,808) Acquisition costs and other operating expenditure note B2, note (vii) (5,224) (2,908) (8,132) (517) (8,649) Interest on core structural borrowings — (21) (21) (527) (548) Gain on disposal of businesses and corporate transactions note D1 .1 84 208 292 — 292 Total charges, net of reinsurance and gain (loss) on disposal of businesses (28,714) (42,941) (71,655) (1,058) (72,713) Share of profit from joint ventures and associates, net of related tax 233 — 233 — 233 Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note (vi 2,935 982 3,917 (1,008) 2,909 Tax charge attributable to policyholders’ returns (321) — (321) — (321) Profit (loss) before tax attributable to shareholders’ returns from continuing operations 2,614 982 3,596 (1,008) 2,588 Analysis of profit (loss) before tax attributable to shareholders’ returns from continuing operations: Profit for the year from continuing operations 2,288 327 2,615 (867) 1,748 Tax attributable to shareholders 326 655 981 (141) 840 Profit (loss) before tax 2,614 982 3,596 (1,008) 2,588 Short-term fluctuations in investment returns on shareholder-backed business 1 2,019 2,020 (26) 1,994 Amortisation of acquisition accounting adjustments 9 73 82 — 82 Gain on disposal of businesses and corporate transactions (78) (208) (286) — (286) Adjusted IFRS operating profit (loss) based on longer-term investment returns 2,546 2,866 5,412 (1,034) 4,378 Notes (i) Included within other income is revenue from the Group’s continuing asset management business of $453 million (2018: $287 million; 2017: $275 million). The remaining other income consists primarily of policy fee income from external customers. Other income also includes $3 million (2018: $7 million; 2017: $9 million) relating to the fee income on financial instruments that are not held at fair value through profit or loss. (ii) In Asia, external revenue from no one individual market exceeds 10 per cent of the Group total except for Hong Kong in 2019, 2018 and 2017 and Singapore in 2019.Total external revenue of Hong Kong is $9,821 million (2018: $10,307 million; 2017: $9,369 million) and Singapore is $4,401 million. (iii) Due to the nature of the business of the Group, there is no reliance on any major customers. (iv) Interest income includes $4 million (2018: $5 million; 2017: $4 million) accrued in respect of impaired securities. (v) This measure is the formal profit (loss) before tax measure under IFRS but is not the result attributable to shareholders. (vi) Unallocated to a segment includes central operations (Head Office functions and Group borrowings), the Group’s treasury function and Africa operations. (vii) In October 2018, Jackson entered into a 100 per cent reinsurance agreement with John Hancock Life Insurance Company (John Hancock USA) to acquire a closed block of group pay-out annuity business. The transaction resulted in an addition to gross premiums earned of $5.0 billion and a corresponding increase in benefits and claims of $5.5 billion for the increase in policyholder liabilities and a decrease in other operating expenditure for negative ceding commissions of $0.5 billion at the inception of the contract. There was no material impact on adjusted IFRS operating profit based on longer-term investment returns or total profit as a result of the transaction.
Schedule of other investment return	2019 $m 2018 $m 2017 $m Realised and unrealised gains (losses) on securities at fair value through profit or loss 49,809 (14,867) 33,651 Realised and unrealised (losses) gains on derivatives at fair value through profit or loss (5,825) 705 (2,940) Realised gains on available-for-sale securities, including impairment previously recognised in other comprehensive income 185 15 (33) Realised (losses) on loans (3) (1) (4) Dividends 1,000 740 884 Other investment (loss) income (218) 81 41 Other investment return 44,948 (13,327) 31,599
Schedule of additional analysis of performance by segment	(a) Asia 2019 $m 2018 $m 2017 $m Asset Insurance management Eliminations Total Total Total Earned premiums, net of reinsurance 22,649 — — 22,649 21,221 19,375 Other income 143 405 — 548 412 396 Total external revenue 22,792 405 — 23,197 21,633 19,771 Intra-group revenue — 160 (160) — 56 52 Interest income 1,564 5 — 1,569 1,450 1,201 Other investment return 13,407 (1) — 13,406 (4,326) 10,392 Total revenue, net of reinsurance 37,763 569 (160) 38,172 18,813 31,416 Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance (29,119) — — (29,119) (11,664) (23,574) Acquisition costs and other expenditure note B2 (4,925) (392) 160 (5,157) (5,162) (5,224) Gain (loss) on disposal of businesses and corporate transactions note D1.1 265 — — 265 (15) 84 Total charges, net of reinsurance and gain (loss) on disposal of businesses (33,779) (392) 160 (34,011) (16,841) (28,714) Share of profit from joint ventures and associates, net of related tax 291 106 — 397 319 233 Profit before tax (being tax attributable to shareholders’ and policyholders’ returns) 4,275 283 — 4,558 2,291 2,935 Tax charge attributable to policyholders’ returns (365) — — (365) (107) (321) Profit before tax attributable to shareholders' returns 3,910 283 — 4,193 2,184 2,614 Analysis of profit before tax: Profit (loss) before tax attributable to shareholders 3,910 283 — 4,193 2,184 2,614 Short-term fluctuations in investment returns on shareholder-backed business (657) — — (657) 684 1 Amortisation of acquisition accounting adjustments 5 — — 5 5 9 (Profit) loss on disposal of businesses and corporate transactions note D1.1 (265) — — (265) 15 (78) Adjusted IFRS operating profit based on longer-term investment returns 2,993 283 — 3,276 2,888 2,546 (b) US 2019 $m 2018 $m 2017 $m Asset Insurance management Eliminations Total Total Total Earned premiums, net of reinsurance* 20,742 — — 20,742 23,161 19,091 Other income 6 55 — 61 67 862 Total external revenue 20,748 55 — 20,803 23,228 19,953 Intra-group revenue — 127 (93) 34 67 82 Interest income 2,971 — — 2,971 2,692 2,688 Other investment return 31,621 2 — 31,623 (9,085) 21,200 Total revenue, net of reinsurance 55,340 184 (93) 55,431 16,902 43,923 Benefits and claims* (54,734) — — (54,734) (11,736) (40,220) Acquisition costs and other operating expenditure* (1,343) (152) 93 (1,402) (2,773) (2,908) Interest on core structural borrowings (20) — — (20) (20) (21) (Loss) profit on disposal of businesses and corporate transactions note D1.1 — — — — (51) 208 Total charges, net of reinsurance and loss on disposal of businesses (56,097) (152) 93 (56,156) (14,580) (42,941) (Loss) profit before tax (757) 32 — (725) 2,322 982 Analysis of (loss) profit before tax: Profit (loss) before tax attributable to shareholders (757) 32 — (725) 2,322 982 Short-term fluctuations in investment returns on shareholder-backed business 3,757 — — 3,757 134 2,019 Amortisation of acquisition accounting adjustments 38 — — 38 56 73 Loss (profit) on disposal of businesses and corporate transactions note D1.1 — — — — 51 (208) Adjusted IFRS operating profit based on longer-term investment returns 3,038 32 — 3,070 2,563 2,866 *

Acquisition costs and other e_2

Acquisition costs and other expenditure (Tables)	12 Months Ended
	Dec. 31, 2019
Acquisition costs and other expenditure
Schedule of segmental analysis of other interest expense and depreciation and amortisation	Other interest expense Depreciation and amortisation 2019* $m 2018 $m 2017 $m 2019* $m 2018 $m 2017 $m Asia operations: Insurance (13) — — (641) (482) (446) Asset management – — — (14) (5) (4) US operations: Insurance (264) (212) (150) 901 (1,110) 26 Asset management (2) — — (4) (8) (8) Total segment (279) (212) (150) 242 (1,605) (432) Unallocated to a segment (other operations) (27) (38) (50) (30) (3) (3) Total continuing operations (306) (250) (200) 212 (1,608) (435) *
Schedule of average number of staff employed	Asia operations 14,471 16,798 15,477 US operations 4,014 4,285 4,564 Other operations* 519 676 660 Total continuing operations 19,004 21,759 20,701 Discontinued UK and Europe operations † 5,672 6,447 6,450 Total Group 24,676 28,206 27,151 * The Other operations' staff numbers include staff from central operations and Africa which are unallocated to a segment. † Average staff numbers of the discontinued UK and Europe operations are for the period up to the demerger in October 2019.
Schedule of costs of employment	2019 $m 2018 $m 2017 $m Group Group Group Continuing Discontinued total Continuing Discontinued total Continuing Discontinued total Wages and salaries 1,435 573 2,008 1,517 694 2,211 1,557 730 2,287 Social security costs 53 68 121 71 84 155 73 93 166 Defined benefit schemes* (91) (5) (96) 7 (46) (39) (23) 19 (4) Defined contribution schemes 69 41 110 77 50 127 67 43 110 Total Group† 1,466 677 2,143 1,672 782 2,454 1,674 885 2,559 * The charge (credit) incorporated the effect of actuarial gains and losses. Post-demerger of the UK and Europe operations, the Group's defined benefit schemes costs are expected to be negligible. See note C9. † Total costs of employment in the table above include the costs of employment of the discontinued UK and Europe operations up to the demerger in October 2019.
Schedule of movement in outstanding options and awards	Options outstanding under SAYE Awards outstanding under schemes incentive plans 2019 2018 2017 Weighted Weighted Weighted average average average Number exercise Number exercise Number exercise Number of options price of options price of options price of awards millions £ millions £ millions £ millions Balance at beginning of year: 4.9 12.10 6.4 11.74 7.1 10.74 32.8 33.6 30.2 Granted 0.6 11.13 0.3 13.94 1.4 14.55 13.4 10.7 12.7 Modification 0.3 11.95 — — — — 4.3 — — Exercised (1.7) 10.87 (1.4) 10.85 (1.7) 10.07 (9.8) (8.7) (7.3) Forfeited — 12.87 (0.1) 12.25 (0.1) 10.83 (2.5) (2.6) (1.3) Cancelled (0.1) 12.82 (0.2) 12.43 (0.2) 11.19 (0.7) — (0.1) Lapsed/Expired (0.1) 12.93 (0.1) 12.60 (0.1) 10.86 (1.0) (0.2) (0.6) M&G plc awards derecognised on demerger (0.1) 13.37 — — — — (3.5) — — Balance at end of year 3.8 12.38 4.9 12.10 6.4 11.74 33.0 32.8 33.6 Options immediately exercisable at end of year 0.9 11.33 0.8 10.37 0.4 11.06
Summary of the range of exercise prices for options outstanding	Outstanding Exercisable Weighted average Number remaining Weighted average Number Weighted average outstanding contractual life exercise exercisable exercise (millions) (years)* prices £ (millions) prices £ Between £6 and £7 — — — — — 0.4 — — 6.29 — — — — — 6.29 Between £9 and £10 — 0.3 0.5 — 0.4 1.4 — 9.01 9.01 — 0.3 — — 9.01 — Between £11 and £12 2.4 3.0 4.5 2.0 1.6 2.2 11.19 11.19 11.21 0.9 0.5 0.4 11.33 11.11 11.55 Between £13 and £14 0.3 0.3 — 3.2 4.1 — 13.94 13.94 — — — — — — — Between £14 and £15 1.1 1.3 1.4 2.0 2.6 3.9 14.55 14.55 14.55 — — — — — — Weighted average 3.8 4.9 6.4 2.1 2.1 2.5 12.38 12.10 11.74 0.9 0.8 0.4 11.33 11.06 * The years shown above for weighted average remaining contractual life include the time period from end of vesting period to expiration of contract.
Schedule of assumptions used to estimate fair value amounts on date of grant relating to all options and awards	2019 2018 2017 SAYE options Granted in Granted in Prudential October November Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 3.66 2.10 — — 2.52 — — 2.85 — Expected volatility (%) 22.14 25.58 23.92 — 24.03 21.09 — 23.17 20.15 — Risk-free interest rate (%) 0.97 0.31 1.60 — 1.19 0.97 — 0.62 0.56 — Expected option life (years) — 3.96 3.47 — — 3.94 — — 3.49 — Weighted average exercise price (£) — 11.12 11.18 — — 13.94 — — 14.55 — Weighted average share price at grant date (£) 16.07 13.94 13.77 — 17.46 16.64 — 16.80 17.74 — Weighted average fair value at grant date (£) 6.32 2.90 3.35 15.39 6.64 3.29 17.04 8.30 3.29 16.12
Schedule of key management remuneration	2019 $m 2018 $m 2017 $m Salaries and short-term benefits 25.2 22.0 23.0 Post-employment benefits 1.5 2.0 2.0 Share-based payments 13.1 19.0 18.0 39.8 43.0 43.0
Schedule of fees payable to the auditor	2019 $m 2018 $m 2017 $m Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 2.2 2.8 2.7 Fees payable to the Company’s auditor and its associates for other services: Audit of subsidiaries pursuant to legislation 9.5 12.3 10.7 Audit-related assurance services * 5.7 6.3 5.5 Other assurance services 5.7 1.5 1.9 Services relating to corporate finance transactions 7.3 0.3 0.5 All other services — 1.2 0.9 Total fees paid to the auditor 30.4 24.4 22.2 Analysed into: Fees payable to the auditor attributable to the continuing operations: Non-audit services associated with the demerger of the UK and Europe operations† 11.7 1.0 — Other audit and non-audit services 15.3 15.1 14.6 27.0 16.1 14.6 Fees payable to the auditor attributable to the discontinued UK and Europe operations 3.4 8.3 7.6 30.4 24.4 22.2 * Of the audit-related assurance service fees of $5.7 million in 2019 (2018: $6.3 million), $1.1 million relates to services that are required by law. †

Tax charge from continuing op_2

Tax charge from continuing operations (Tables)	12 Months Ended
	Dec. 31, 2019
Tax charge from continuing operations
Schedule of total tax charge for by nature of continuing operations in the income statement	2019 $m 2018 $m 2017 $m Current Deferred Tax charge tax tax Total Total Total Attributable to shareholders: Asia operations (306) (162) (468) (369) (326) US operations (307) 652 345 (340) (655) Other operations 182 (28) 154 140 141 Tax (charge) credit attributable to shareholders' returns (431) 462 31 (569) (840) Attributable to policyholders: Asia operations (130) (235) (365) (107) (321) Total tax (charge) credit (561) 227 (334) (676) (1,161)
Schedule of components total tax charge	2019 $m 2018 $m 2017 $m Current tax expense: Corporation tax (589) (380) (165) Adjustments in respect of prior years 28 15 48 Total current tax charge (561) (365) (117) Deferred tax arising from: Origination and reversal of temporary differences 235 (331) (470) Impact of changes in local statutory tax rates 7 11 (574) Credit in respect of a previously unrecognised tax loss, tax credit or temporary difference from a prior period (15) 9 — Total deferred tax credit (charge) 227 (311) (1,044) Total tax charge (334) (676) (1,161)
Schedule of shareholder profit and tax charge from continuing operations	2019 2018 2017 Total Percentage Total Percentage Total Percentage Asia US Other* attributable to impact on attributable to impact on attributable to impact on operations operations operations shareholders ETR shareholders ETR shareholders ETR $m $m $m $m % $m % $m % Adjusted IFRS operating profit (loss) based on longer-term investment returns 3,276 3,070 (1,036) 5,310 — 4,409 — 4,378 Non-operating profit (loss) 917 (3,795) (510) (3,388) — (959) — (1,790) Profit (loss) before tax 4,193 (725) (1,546) 1,922 — 3,450 — 2,588 Expected tax rate: 20 % 21 % 19 % 20 % 22 % 27 % Tax at the expected rate 839 (152) (294) 393 20.4 % 759 22.0 % 701 27.1 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates (94) (29) (3) (126) (6.6) % (71) (2.1) % (115) (4.4) % Deductions not allowable for tax purposes 40 10 5 55 2.9 % 69 2.0 % 54 2.1 % Items related to taxation of life insurance businesses note (i) (192) (125) – (317) (16.5) % (128) (3.7) % (425) (16.4) % Deferred tax adjustments (28) (1) (4) (33) (1.7) % (55) (1.6) % 29 1.1 % Unrecognised tax losses note (ii) – – 46 46 2.4 % — — — — Effect of results of joint ventures and associates note (iii) (100) – – (100) (5.2) % (83) (2.4) % (67) (2.6) % Irrecoverable withholding taxes note (iv) – – 59 59 3.1 % 63 1.8 % 70 2.7 % Other 5 5 3 13 0.7 % 9 0.3 % (15) (0.6) % Total (369) (140) 106 (403) (20.9) % (196) (5.7) % (469) (18.1) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years 4 (53) (18) (67) (3.5) % (4) (0.1) % (27) (1.0) % Movements in provisions for open tax matters note (v) 17 — (18) (1) (0.0) % 10 0.3 % 57 2.2 % Demerger related activities note (vi) — — 76 76 4.1 % — — — — Impact of US tax reform — — — — — — — 573 22.1 % Adjustments in relation to business disposals (23) — (6) (29) (1.4) % — — 5 0.2 % Total (2) (53) 34 (21) (1.1) % 6 0.2 % 608 23.5 % Total actual tax charge (credit) 468 (345) (154) (31) (1.6) % 569 16.5 % 840 32.5 % Analysed into: Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns 436 437 (100) 773 — 666 — 922 — Tax on non-operating profit (loss) 32 (782) (54) (804) — (97) — (82) — Actual tax rate on: Adjusted IFRS operating profit (loss) based on longer-term investment returns: Including non-recurring tax reconciling items 13 % 14 % 10 % 15 % — 15 % — 21 % — Excluding non-recurring tax reconciling items 13 % 16 % 10 % 15 % — 15 note (vii) % — 20 note (vii) % — Total profit (loss) 11 % 48 % 10 % (2) % — 16 note (vii) % — 32 note (vii) % — * Other operations include restructuring costs. Notes (i) The $125 million (2018: $111 million; 2017: $307 million) reconciling item in US operations reflects the impact of the dividend received deduction on the taxation of profits from variable annuity business. The principal reason for the increase in the Asia operations reconciling items from $17 million in 2018 to $192 million in 2019 reflects an increase in investment gains in Hong Kong which are not taxable due to the taxable profit being computed as 5 per cent of net insurance premiums. (ii) The $46 million adverse reconciling item in unrecognised tax losses reflects losses arising after the demerger of the Group’s UK and Europe operations where it is unlikely that relief for the losses will be available in future periods. (iii) Profit before tax includes Prudential’s share of profit after tax from the joint ventures and associates. Therefore, the actual tax charge does not include tax arising from profit or loss of joint ventures and associates and is reflected as a reconciling item. (iv) The $59 million (2018: $63 million; 2017: $70 million) adverse reconciling items reflects local withholding taxes on dividends paid by certain non-UK subsidiaries, principally Indonesia, to the UK. The dividends are exempt from UK tax and consequently the withholding tax cannot be offset against UK tax payments. (v) The complexity of the tax laws and regulations that relate to our businesses means that from time to time we may disagree with tax authorities on the technical interpretation of a particular area of tax law. This uncertainty means that in the normal course of business the Group will have matters where, upon ultimate resolution of the uncertainty, the amount of profit subject to tax may be greater than the amounts reflected in the Group’s submitted tax returns. The statement of financial position contains the following provisions in relation to open tax matters. $m Balance at beginning of year 190 Movements in the current year included in: Tax charge attributable to shareholders (1) Other movements* 9 Balance at end of year 198 * Other movements include interest arising on open tax matters and amounts included in the Group’s share of profits from joint ventures and associates, net of related tax. (vi) The $76 million adverse reconciling items in Demerger related activities relates to non-tax deductible costs incurred in preparation for, or as a result of, the demerger of the Group’s UK and Europe operations. (vii) 2018 and 2017 actual tax rate of the relevant business operations are shown below: 2018 Asia US Other Total attributable to operations operations operations shareholders Adjusted IFRS operating profit based on longer-term investment returns 14 % 16 % 14 % 15 % Profit before tax 17 % 15 % 13 % 16 % 2017 Asia US Other Total attributable to operations operations operations shareholders Adjusted IFRS operating profit based on longer-term investment returns 14 % 25 % 13 % 21 % Profit before tax 12 % 67 % 14 % 32 %
Schedule of movements in provisions for open tax matters	$m Balance at beginning of year 190 Movements in the current year included in: Tax charge attributable to shareholders (1) Other movements* 9 Balance at end of year 198 Other movements include interest arising on open tax matters and amounts included in the Group’s share of profits from joint ventures and associates, net of related tax.
Schedule of tax rate of relevant business operations	2017 Asia US Other Total attributable to operations operations operations shareholders Adjusted IFRS operating profit based on longer-term investment returns 14 % 25 % 13 % 21 % Profit before tax 12 % 67 % 14 % 32 %

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings per share
Schedule of earnings per share	2019 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 783 30.3 ¢ 30.3 ¢ Loss for the year from discontinued operations D2 — — — 1,161 44.8 ¢ 44.8 ¢ Profit for the year from continuing operations 1,922 31 (9) 1,944 75.1 ¢ 75.1 ¢ Short-term fluctuations in investment returns on shareholder-backed business 3,203 (772) — 2,431 94.0 ¢ 94.0 ¢ Amortisation of acquisition accounting adjustments 43 (8) — 35 1.3 ¢ 1.3 ¢ Loss on disposal of businesses and corporate transactions D1.1 142 (24) — 118 4.6 ¢ 4.6 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 5,310 (773) (9) 4,528 175.0 ¢ 175.0 ¢ 2018 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 4,019 156.0 ¢ 156.0 ¢ Loss for the year from discontinued operations D2 — — — (1,142) (44.3) ¢ (44.3) ¢ Profit for the year from continuing operations 3,450 (569) (4) 2,877 111.7 ¢ 111.7 ¢ Short-term fluctuations in investment returns on shareholder-backed business 791 (70) — 721 28.0 ¢ 28.0 ¢ Amortisation of acquisition accounting adjustments 61 (11) — 50 1.9 ¢ 1.9 ¢ Loss on disposal of businesses and corporate transactions D1.1 107 (16) — 91 3.6 ¢ 3.5 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 4,409 (666) (4) 3,739 145.2 ¢ 145.1 ¢ 2017 Net of tax Before Non- and non- Basic Diluted tax Tax controlling controlling earnings earnings $m $m interests interests per share per share Note B1.1 B4 $m $m cents cents Profit for the year — — — 3,080 120.0 ¢ 119.9 ¢ Loss for the year from discontinued operations D2 — — — (1,333) (52.0) ¢ (52.0) ¢ Profit for the year from continuing operations 2,588 (840) (1) 1,747 68.0 ¢ 67.9 ¢ Short-term fluctuations in investment returns on shareholder-backed business B1.2 1,994 (736) — 1,258 49.0 ¢ 49.0 ¢ Amortisation of acquisition accounting adjustments 82 (26) — 56 2.2 ¢ 2.2 ¢ Cumulative exchange gain on the sold Korea life business recycled from other comprehensive income (78) — — (78) (3.0) ¢ (3.0) ¢ Gain (loss) on disposal of businesses and corporate transactions D1.1 (208) 106 — (102) (4.0) ¢ (4.0) ¢ Impact of US tax reform — 574 — 574 22.4 ¢ 22.4 ¢ Adjusted IFRS operating profit based on longer-term investment returns from continuing operations 4,378 (922) (1) 3,455 134.6 ¢ 134.5 ¢
Summary of weighted average number of shares for calculating earnings per share	Number of shares (in millions) Weighted average number of shares* for calculation of : Basic earnings per share 2,587 2,575 2,567 Shares under option at end of year 4 5 6 Shares that would have been issued at fair value on assumed option price (4) (4) (5) Diluted earnings per share 2,587 2,576 2,568 * Excluding those held in employee share trusts and consolidated investment funds.

Dividends (Tables)

Dividends (Tables)	12 Months Ended
	Dec. 31, 2019
Dividends
Schedule of dividends	2019 2018 2017 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim ordinary dividend 20.29 ¢ 528 20.55 ¢ 530 19.50 ¢ 501 Second interim ordinary dividend 25.97 ¢ 675 42.89 ¢ 1,108 43.79 ¢ 1,132 Total 46.26 ¢ 1,203 63.44 ¢ 1,638 63.29 ¢ 1,633 Dividends paid in reporting year: Current year first interim ordinary dividend 20.29 ¢ 526 20.55 ¢ 530 19.50 ¢ 501 Second interim ordinary dividend for prior year 42.89 ¢ 1,108 43.79 ¢ 1,132 39.82 ¢ 1,024 Total 63.18 ¢ 1,634 64.34 ¢ 1,662 59.32 ¢ 1,525

Analysis of Group statement o_2

Analysis of Group statement of financial position by segment (Tables)	12 Months Ended
	Dec. 31, 2019
Analysis of Group statement of financial position by segment
Schedule of financial position by segment	To explain the assets, liabilities and capital of the Group's businesses more comprehensively, it is appropriate to provide analyses of the Group's statement of financial position by operating segment and type of business. 31 Dec 2019 $m Elimination of intra- Unallocated group to a segment debtors (central and Group Asia US operations) creditors total By operating segment Note C2.1 C2.2 note (i) Assets Goodwill C5.1 926 — 43 — 969 Deferred acquisition costs and other intangible assets C5.2 5,154 12,264 58 — 17,476 Reinsurers' share of insurance contract liabilities 5,458 8,394 4 — 13,856 Other assets note (ii) 3,208 5,432 3,339 (2,652) 9,327 Investment properties 7 7 11 — 25 Investment in joint ventures and associates accounted for using the equity method D7 1,500 — – — 1,500 Financial investments note (v) 131,499 271,190 1,407 — 404,096 Cash and cash equivalents note (iii) 2,490 1,960 2,515 — 6,965 Total assets 150,242 299,247 7,377 (2,652) 454,214 Equity Shareholders' equity 10,866 8,929 (318) — 19,477 Non-controlling interests 155 — 37 — 192 Total equity 11,021 8,929 (281) — 19,669 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.1 115,943 269,549 186 — 385,678 Unallocated surplus of with-profits funds C4.1 4,750 — – — 4,750 Core structural borrowings of shareholder-financed businesses C6.1 — 250 5,344 — 5,594 Operational borrowings C6.2 473 1,501 671 — 2,645 Other liabilities note (iv) 18,055 19,018 1,457 (2,652) 35,878 Total liabilities 139,221 290,318 7,658 (2,652) 434,545 Total equity and liabilities 150,242 299,247 7,377 (2,652) 454,214 31 Dec 2018 $m Before elimination of intra-group debtors and creditors Elimination of intra- Unallocated Discontinued group to a segment Total UK and debtors (central continuing Europe and Group Asia US operations) operations operations creditors Total By operating segment Note C2.1 C2.2 note (i) Assets Goodwill C5.1 634 — — 634 1,731 — 2,365 Deferred acquisition costs and other intangible assets C5.2 3,741 11,140 55 14,936 249 — 15,185 Reinsurers' share of insurance contract liabilities 3,537 8,485 2 12,024 3,581 (1,412) 14,193 Other assets note (ii) 4,987 4,569 2,829 12,385 9,044 (6,834) 14,595 Investment properties 6 8 — 14 22,815 — 22,829 Investment in joint ventures and associates accounted for using the equity method 1,262 — — 1,262 945 — 2,207 Financial investments note (v) 103,016 232,955 2,998 338,969 208,553 — 547,522 Assets held for sale — — — — 13,472 — 13,472 Cash and cash equivalents note (iii) 2,789 3,827 2,778 9,394 6,048 — 15,442 Total assets 119,972 260,984 8,662 389,618 266,438 (8,246) 647,810 Equity Shareholders' equity 8,175 7,163 (4,450) 10,888 11,080 — 21,968 Non-controlling interests 12 — 11 23 — — 23 Total equity 8,187 7,163 (4,439) 10,911 11,080 — 21,991 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.1 93,248 236,380 50 329,678 193,020 (1,412) 521,286 Unallocated surplus of with-profits funds C4.1 3,198 — — 3,198 16,982 — 20,180 Core structural borrowings of shareholder-financed businesses C6.1 — 250 9,511 9,761 — — 9,761 Operational borrowings C6.2 102 418 640 1,160 5,129 — 6,289 Other liabilities note (iv) 15,237 16,773 2,900 34,910 26,768 (6,834) 54,844 Liabilities held for sale — — — — 13,459 — 13,459 Total liabilities 111,785 253,821 13,101 378,707 255,358 (8,246) 625,819 Total equity and liabilities 119,972 260,984 8,662 389,618 266,438 (8,246) 647,810
Schedule of accrued investment income and other debtors	31 Dec 2019 $m 31 Dec 2018 $m Interest receivable 1,064 2,221 Other 577 1,280 Total accrued investment income 1,641 3,501 Premiums receivable due from: Policyholders 574 576 Intermediaries 4 4 Reinsurers 216 277 Other receivables 1,260 4,350 Total other debtors 2,054 5,207 Total accrued investment income and other debtors 3,695 8,708 Analysed as: From continuing operations — 4,356 From discontinued operations — 4,352 — 8,708
Schedule of cash and cash equivalents	31 Dec 2019 $m 31 Dec 2018 $m Cash 2,071 7,335 Cash equivalents 4,894 8,107 Total cash and cash equivalents 6,965 15,442 Analysed as: Held centrally and available for general use by the Group 2,491 445 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 4,474 14,997 Total cash and cash equivalents 6,965 15,442 Comprising: Cash and cash equivalents from continuing operations — 9,394 Cash and cash equivalents from discontinued operations — 6,048 — 15,442
Schedule of accruals, deferred income and other liabilities	31 Dec 2019 $m 31 Dec 2018 $m Accruals and deferred income 582 2,165 Other creditors 6,724 9,010 Creditors arising from direct insurance and reinsurance operations 2,831 3,010 Interest payable 68 149 Funds withheld under reinsurance of the REALIC business 3,760 3,745 Other items 523 1,342 Total accruals, deferred income and other liabilities 14,488 19,421 Analysed as: From continuing operations — 13,338 From discontinued operations — 6,083 — 19,421

Analysis of segment statement_2

Analysis of segment statement of financial position by business type (Tables)	12 Months Ended
	Dec. 31, 2019
Asia
Analysis of operating segments
Schedule of segment statement of financial position by business type	31 Dec 31 Dec 2019 $m 2018 $m Total insurance Unit-linked With-profits assets and Other Asset Note business* liabilities business Total management Eliminations Total Total Assets Goodwill — — 327 327 599 — 926 634 Deferred acquisition costs and other intangible assets 67 — 5,072 5,139 15 — 5,154 3,741 Reinsurers’ share of insurance contract liabilities 152 — 5,306 5,458 – — 5,458 3,537 Other assets 1,210 237 1,584 3,031 212 (35) 3,208 4,987 Investment properties — — 7 7 – — 7 6 Investment in joint ventures and associates accounted for using the equity method — — 1,263 1,263 237 — 1,500 1,262 Financial investments 76,581 24,628 29,982 131,191 308 — 131,499 103,016 Cash and cash equivalents 963 356 1,015 2,334 156 — 2,490 2,789 Total assets 78,973 25,221 44,556 148,750 1,527 (35) 150,242 119,972 Total equity — — 9,803 9,803 1,218 — 11,021 8,187 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.2 65,558 23,571 26,814 115,943 — — 115,943 93,248 Unallocated surplus of with-profits funds C4.2 4,750 — — 4,750 — — 4,750 3,198 Operational borrowings 302 21 123 446 27 — 473 102 Other liabilities 8,363 1,629 7,816 17,808 282 (35) 18,055 15,237 Total liabilities 78,973 25,221 34,753 138,947 309 (35) 139,221 111,785 Total equity and liabilities 78,973 25,221 44,556 148,750 1,527 (35) 150,242 119,972 * The statement of financial position for with-profits business comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore operations. 'Other business' includes assets and liabilities of other participating businesses and other non-linked shareholder-backed business.
US
Analysis of operating segments
Schedule of segment statement of financial position by business type	31 Dec 31 Dec 2019 $m 2018 $m Total insurance Variable annuity Fixed separate account annuity, assets and GICs and other Asset Note liabilities business Total management Eliminations Total Total Assets Goodwill — — — — — — — Deferred acquisition costs and other intangible assets — 12,264 12,264 — — 12,264 11,140 Reinsurers’ share of insurance contract liabilities — 8,394 8,394 — — 8,394 8,485 Other assets — 5,293 5,293 228 (89) 5,432 4,569 Investment properties — 7 7 – – 7 8 Financial investments 195,070 76,106 271,176 14 — 271,190 232,955 Cash and cash equivalents – 1,912 1,912 48 — 1,960 3,827 Total assets 195,070 103,976 299,046 290 (89) 299,247 260,984 Total equity — 8,923 8,923 6 – 8,929 7,163 Liabilities Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.3 195,070 74,479 269,549 — — 269,549 236,380 Core structural borrowings of shareholder-financed businesses C6.1 — 250 250 — — 250 250 Operational borrowings — 1,460 1,460 41 — 1,501 418 Other liabilities — 18,864 18,864 243 (89) 19,018 16,773 Total liabilities 195,070 95,053 290,123 284 (89) 290,318 253,821 Total equity and liabilities 195,070 103,976 299,046 290 (89) 299,247 260,984

Group assets and liabilities _2

Group assets and liabilities - measurement (Tables)	12 Months Ended
	Dec. 31, 2019
Financial instruments
Schedule of net unrealised gains and losses in the income statement for financial instruments still held at the end of the year	2019 $m Net asset value Equity attributable securities Other Borrowings to unit and holdings investments attributable holders of in collective (including to with consolidated Other Reconciliation of movements in level 3 assets investment Debt derivative Derivative -profits investment financial and liabilities measured at fair value Loans schemes securities assets) liabilities businesses funds liabilities Total Balance at 1 January 6,054 656 1,505 6,714 (539) (2,045) (1,258) (4,335) 6,752 Demerger of UK and Europe operations (2,509) (440) (1,498) (5,513) — 2,045 1,258 451 (6,206) Total gains (losses) in income statement* 1 (11) 6 30 539 — — (28) 537 Total gains (losses) recorded in other comprehensive income — 3 — (6) — — — (11) (14) Purchases — 69 — 269 — — (2) — 336 Sales — (1) (7) (193) — — — — (201) Issues 275 — — — — — — (143) 132 Settlements (234) — — — — — — 306 72 Balance at 31 December 3,587 276 6 1,301 — — (2) (3,760) 1,408 2018 $m Net asset value Equity attributable securities Other Borrowings to unit and holdings investments attributable holders of in collective (including to with consolidated Other Reconciliation of movements in level 3 assets investment Debt derivative Derivative -profits investment financial and liabilities measured at fair value Loans schemes securities assets) liabilities businesses funds liabilities Total Balance at 1 January 6,543 502 885 5,985 (693) (2,553) (559) (4,100) 6,010 Total gains (losses) in income statement* (104) 51 (9) 540 36 (31) 89 7 579 Total gains (losses) recorded in other comprehensive income (162) (28) (85) (331) 34 133 111 36 (292) Purchases 83 167 889 1,605 — — — — 2,744 Sales (238) (47) (175) (1,085) — — — — (1,545) Issues 373 — — — — — (931) (642) (1,200) Settlements (441) — — — — 406 76 364 405 Transfers into level 3 — 11 — — — — — — 11 Transfers out of level 3 — — — — 84 — (44) — 40 Balance at 31 December 6,054 656 1,505 6,714 (539) (2,045) (1,258) (4,335) 6,752 * 2019 $m 2018 $m Equity securities and holdings in collective investment schemes (11) (10) Debt securities — 3 Other investments 34 133 Derivative liabilities — 36 Net asset value attributable to unit holders of consolidated investment funds — (9) Other financial liabilities (4) — Total 19 153
At fair value
Financial instruments
Schedule of fair value of assets and liabilities	31 Dec 2019 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable Analysis of financial investments, net of derivative liabilities by business type from continuing operations markets market inputs market inputs Total With-profits Equity securities and holdings in collective investment schemes 25,850 3,268 254 29,372 Debt securities 40,291 4,485 6 44,782 Other investments (including derivative assets) 57 103 — 160 Derivative liabilities (137) (94) — (231) Total financial investments, net of derivative liabilities 66,061 7,762 260 74,083 Percentage of total (%) 90 % 10 % 0 % 100 % Unit-linked and variable annuity separate account Equity securities and holdings in collective investment schemes 213,797 365 — 214,162 Debt securities 4,036 1,117 — 5,153 Other investments (including derivative assets) 6 4 — 10 Derivative liabilities (1) — — (1) Total financial investments, net of derivative liabilities 217,838 1,486 — 219,324 Percentage of total (%) 99 % 1 % 0 % 100 % Non-linked shareholder-backed Loans — — 3,587 3,587 Equity securities and holdings in collective investment schemes 3,638 87 22 3,747 Debt securities 23,600 61,035 — 84,635 Other investments (including derivative assets) 7 1,569 1,301 2,877 Derivative liabilities (47) (113) — (160) Total financial investments, net of derivative liabilities 27,198 62,578 4,910 94,686 Percentage of total (%) 29 % 66 % 5 % 100 % Group total analysis, including other financial liabilities held at fair value from continuing operations Loans — — 3,587 3,587 Equity securities and holdings in collective investment schemes 243,285 3,720 276 247,281 Debt securities 67,927 66,637 6 134,570 Other investments (including derivative assets) 70 1,676 1,301 3,047 Derivative liabilities (185) (207) — (392) Total financial investments, net of derivative liabilities 311,097 71,826 5,170 388,093 Investment contract liabilities without discretionary participation features held at fair value — (1,011) — (1,011) Net asset value attributable to unit holders of consolidated investment funds (5,973) (23) (2) (5,998) Other financial liabilities held at fair value — — (3,760) (3,760) Total financial instruments at fair value 305,124 70,792 1,408 377,324 Percentage of total (%) 81 % 19 % 0 % 100 % 31 Dec 2018 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable Analysis of financial investments, net of derivative liabilities by business type markets market inputs market inputs Total With-profits Loans — — 2,168 2,168 Equity securities and holdings in collective investment schemes 66,636 6,937 621 74,194 Debt securities 39,750 62,382 1,033 103,165 Other investments (including derivative assets) 183 4,156 5,508 9,847 Derivative liabilities (108) (1,568) — (1,676) Total financial investments, net of derivative liabilities 106,461 71,907 9,330 187,698 Percentage of total (%) 57 % 38 % 5 % 100 % Unit-linked and variable annuity separate account Equity securities and holdings in collective investment schemes 194,845 643 11 195,499 Debt securities 6,070 12,388 — 18,458 Other investments (including derivative assets) 8 4 8 20 Derivative liabilities (3) (4) — (7) Total financial investments, net of derivative liabilities 200,920 13,031 19 213,970 Percentage of total (%) 94 % 6 % 0 % 100 % Non-linked shareholder-backed Loans — — 3,886 3,886 Equity securities and holdings in collective investment schemes 3,764 3 24 3,791 Debt securities 22,525 78,713 472 101,710 Other investments (including derivative assets) 77 1,602 1,198 2,877 Derivative liabilities (2) (2,241) (539) (2,782) Total financial investments, net of derivative liabilities 26,364 78,077 5,041 109,482 Percentage of total (%) 24 % 71 % 5 % 100 % Group total analysis, including other financial liabilities held at fair value Loans — — 6,054 6,054 Equity securities and holdings in collective investment schemes 265,245 7,583 656 273,484 Debt securities 68,345 153,483 1,505 223,333 Other investments (including derivative assets) 268 5,762 6,714 12,744 Derivative liabilities (113) (3,813) (539) (4,465) Total financial investments, net of derivative liabilities 333,745 163,015 14,390 511,150 Investment contract liabilities without discretionary participation features held at fair value — (20,446) — (20,446) Borrowings attributable to with-profits businesses — — (2,045) (2,045) Net asset value attributable to unit holders of consolidated investment funds (8,727) (4,854) (1,258) (14,839) Other financial liabilities held at fair value — (3) (4,335) (4,338) Total financial instruments at fair value 325,018 137,712 6,752 469,482 Percentage of total (%) 70 % 29 % 1 % 100 % Analysed as: Total from continuing operations With-profits 49,914 5,003 203 55,120 Unit-linked and variable annuity separate account 182,833 (82) — 182,751 Non-linked shareholder-backed 21,077 55,972 339 77,388 253,824 60,893 542 315,259 Percentage of total continuing operations (%) 81 % 19 % 0 % 100 % Total from discontinued UK and Europe operations 71,194 76,819 6,210 154,223 Percentage of total discontinued operations (%) 46 % 50 % 4 % 100 %
Assets and liabilities at amortised cost for which fair value is disclosed
Financial instruments
Schedule of fair value of assets and liabilities	31 Dec 2019 $m 31 Dec 2018 $m Level 2 Level 3 Level 2 Level 3 Valuation Valuation Valuation Valuation based on based on based on based on significant significant significant significant observable unobservable observable unobservable market market Fair Carrying market market Fair Carrying inputs inputs value value inputs inputs value value Assets Loans 1,865 11,646 13,511 12,996 3,691 13,714 17,405 16,884 Liabilities Investment contract liabilities without discretionary participation features — (3,957) (3,957) (3,891) — (4,021) (4,021) (4,035) Core structural borrowings of shareholder-financed businesses (6,227) — (6,227) (5,594) (9,994) — (9,994) (9,761) Operational borrowings (excluding lease liabilities) (2,015) — (2,015) (2,015) (3,857) (92) (3,949) (4,244) Obligations under funding, securities lending and sale and repurchase agreements (48) (9,087) (9,135) (8,901) (1,602) (7,323) (8,925) (8,901) Total financial instruments carried at amortised cost (6,425) (1,398) (7,823) (7,405) (11,762) 2,278 (9,484) (10,057) Analysed as: Total from continuing operations (10,240) (9,996) Total from discontinued UK and Europe operations 756 (61) (9,484) (10,057)

Debt securities (Tables)

Debt securities (Tables)	12 Months Ended
	Dec. 31, 2019
Debt securities
Financial investments
Schedule of securities analysed according to external credit ratings	31 Dec 2019 $m Other BBB+ to (including AAA AA+ to AA- A+ to A- BBB- Below BBB- NAIC rated) Total Asia: With-profits 5,205 21,911 5,863 5,874 2,382 3,547 44,782 Unit-linked 770 135 674 2,074 522 978 5,153 Non-linked shareholder-backed 1,611 6,050 6,293 4,639 3,749 2,304 24,646 Asset management 14 — 112 — — 3 129 US: Non-linked shareholder-backed 1,154 10,300 15,229 18,489 1,995 11,361 58,528 Other operations — 1,211 — — 55 66 1,332 Total debt securities 8,754 39,607 28,171 31,076 8,703 18,259 134,570 31 Dec 2018 $m Other BBB+ to (including AAA AA+ to AA- A+ to A- BBB- Below BBB- NAIC rated) Total Asia: With-profits 3,659 15,766 5,275 4,788 2,225 2,934 34,647 Unit-linked 1,040 127 627 1,822 542 912 5,070 Non-linked shareholder-backed 1,317 4,524 4,734 3,738 2,805 1,455 18,573 Asset management 14 — 76 — — — 90 US: Non-linked shareholder-backed 864 9,403 13,100 18,667 1,820 9,120 52,974 Other operations 788 1,387 193 52 62 24 2,506 Total continuing operations 7,682 31,207 24,005 29,067 7,454 14,445 113,860 Total discontinued UK and Europe operations 13,931 23,185 23,746 25,126 4,387 19,098 109,473 Total debt securities 21,613 54,392 47,751 54,193 11,841 33,543 223,333
Schedule of securities with credit ratings classified as "Other"	Asia 31 Dec 2019 $m 31 Dec 2018 $m Government bonds* 323 46 Corporate bonds rated by local external rating agencies AAA 184 239 AA+ to AA- 958 702 A+ to A- 345 241 BBB+ to BBB- 91 39 Below BBB- and unrated 32 25 1,610 1,246 Other (asset-backed securities)† 371 163 Total Asia 2,304 1,455 * † 31 Dec 2019 $m 31 Dec 2018 $m Mortgage -backed Other US securities securities Total Total Implicit ratings based on NAIC valuations * NAIC 1 3,367 4,430 7,797 6,376 NAIC 2 1 3,470 3,471 2,697 NAIC 3-6 2 91 93 47 Total US† 3,370 7,991 11,361 9,120 * The Securities Valuation Office of the NAIC classifies debt securities into six quality categories ranging from Class 1 (the highest) to Class 6 (the lowest). Performing securities are designated as Classes 1 to 5 and securities in or near default are designated Class 6. † Mortgage-backed securities totalling $3,180 million at 31 December 2019 have credit ratings issued by Standard & Poor’s of BBB- or above and hence are designated as investment grade. Other securities totalling $7,900 million at 31 December 2019 with NAIC ratings 1 or 2 are also designated as investment grade.
Debt securities | Jackson (US insurance operations)
Financial investments
Schedule of additional analysis of securities	31 Dec 2019 $m 31 Dec 2018 $m Corporate and government security and commercial loans: Government 7,890 6,960 Publicly traded and SEC Rule 144A securities* 34,781 33,363 Non-SEC Rule 144A securities 9,842 8,061 Asset-backed securities (see note (c)) 6,015 4,590 Total US debt securities † 58,528 52,974 * A 1990 SEC rule that facilitates the resale of privately placed securities under Rule 144A that are without SEC registration to qualified institutional investors. The rule was designed to develop a more liquid and efficient institutional resale market for unregistered securities. † 31 Dec 2019 $m 31 Dec 2018 $m Available-for-sale 57,091 52,025 Fair value through profit and loss 1,437 949 58,528 52,974
Schedule of movements in unrealised gains and losses on available-for-sale securities	Changes in unrealised appreciation 31 Dec 2019 reflected in other comprehensive income 31 Dec 2018 $m $m $m Assets fair valued at below book value Book value* 3,121 32,260 Unrealised gain (loss) (27) 1,151 (1,178) Fair value (as included in statement of financial position) 3,094 31,082 Assets fair valued at or above book value Book value* 50,474 20,292 Unrealised gain (loss) 3,523 2,872 651 Fair value (as included in statement of financial position) 53,997 20,943 Total Book value* 53,595 52,552 Net unrealised gain (loss) 3,496 4,023 (527) Fair value (as included in the footnote above in the overview table and the statement of financial position) 57,091 52,025 * Book value represents cost or amortised cost of the debt securities.
Schedule of securities classified as available-for-sale in an unrealised loss position	(i) Fair value of securities as a percentage of book value The following table shows the fair value of the debt securities in a gross unrealised loss position for various percentages of book value: 31 Dec 2019 $m 31 Dec 2018 $m Fair Unrealised Fair Unrealised value loss value loss Between 90% and 100% 3,083 (25) 30,136 (1,030) Between 80% and 90% 11 (2) 900 (132) Below 80% — — 46 (16) Total 3,094 (27) 31,082 (1,178) (ii) Unrealised losses by maturity of security 31 Dec 2019 $m 31 Dec 2018 $m 1 year to 5 years (1) (92) 5 years to 10 years (12) (555) More than 10 years (7) (474) Mortgage-backed and other debt securities (7) (57) Total (27) (1,178) (iii) Age analysis of unrealised losses for the periods indicated The following table shows the age analysis of all the unrealised losses in the portfolio by reference to the length of time the securities have been in an unrealised loss position: 31 Dec 2019 $m 31 Dec 2018 $m Non- Non- investment Investment investment Investment Age analysis grade grade* Total grade grade* Total Less than 6 months (1) (20) (21) (26) (179) (205) 6 months to 1 year (1) (1) (2) (28) (560) (588) 1 year to 2 years — (1) (1) (13) (181) (194) 2 years to 3 years — (1) (1) — (157) (157) More than 3 years — (2) (2) (2) (32) (34) Total (2) (25) (27) (69) (1,109) (1,178) * For Standard and Poor’s, Moody’s and Fitch rated debt securities, those with ratings range from AAA to BBB- are designated as investment grade. For NAIC rated debt securities, those with ratings 1 or 2 are designated as investment grade. Further, the following table shows the age analysis of the securities whose fair values were below 80 per cent of the book value: 31 Dec 2019 $m 31 Dec 2018 $m Fair Unrealised Fair Unrealised Age analysis value loss value loss Less than 3 months — — 41 (13) 3 months to 6 months — — 2 (1) More than 6 months — — 3 (2) Total below 80% — — 46 (16)
Asset-backed securities
Financial investments
Schedule of additional analysis of securities	The Group’s holdings in asset-backed securities (ABS), which comprise residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), collateralised debt obligations (CDO) funds and other asset-backed securities, as at 31 December 2019 are as follows: 31 Dec 2019 $m 31 Dec 2018 $m Asia operations: note (i) Shareholder-backed business 189 154 With-profits business 369 299 US operations note (ii) 6,015 4,590 Other operations — 566 Total for continuing operations 6,573 5,609 Total for discontinued UK and Europe operations — 8,503 Group total 6,573 14,112 Notes (i) Of the Asia operations’ exposure to asset-backed securities for the shareholder-backed business and with-profits business at 31 December 2019, 100 per cent (31 December 2018: 99.8 per cent) are investment grade. (ii) US operations’ exposure to asset-backed securities comprises: 31 Dec 2019 $m 31 Dec 2018 $m RMBS Sub-prime (31 Dec 2019: 2% AAA, 3% AA, 3% A) 93 122 Alt-A (31 Dec 2019: 51% A) 116 134 Prime including agency (2019: 23% AAA, 61% AA, 10% A) 862 562 CMBS (31 Dec 2019: 76% AAA, 16% AA, 4% A) 3,080 2,477 CDO funds (31 Dec 2019: 46% AAA, 38% AA, 16% A), including $nil exposure to sub-prime 696 17 Other ABS (31 Dec 2019: 16% AAA, 11% AA, 54% A), including $84 million exposure to sub-prime 1,168 1,278 Total (31 Dec 2019: 50% AAA, 24% AA, 17% A) 6,015 4,590
Sovereign debt
Financial investments
Schedule of additional analysis of securities	31 Dec 2019 $m 31 Dec 2018 $m Shareholder- Shareholder- backed With-profits backed With-profits business * funds business funds Eurozone — — 481 560 United Kingdom 615 — 4,109 3,837 United States 9,526 20,338 7,192 15,102 Indonesia 420 — 359 — Singapore 230 3,514 209 2,112 Thailand 1,416 — 1,173 — Vietnam 2,900 — 2,383 — Other Asia 2,722 562 2,266 1,103 Other 143 32 159 282 Total 17,972 24,446 18,331 22,996 Analysed as: Total from continuing operations 14,848 16,740 Total from discontinued UK and Europe operations 3,483 6,256 18,331 22,996 * Includes $1.4 billion of sovereign debt held by the Group’s treasury function, Africa operations and asset management operations.
Bank debt securities
Financial investments
Schedule of additional analysis of securities	31 Dec 2019 $m 31 Dec 2018 $m Senior debt Subordinated debt Shareholder-backed business Total Tier 1 Tier 2 Total Total Total Eurozone 310 — 27 27 337 608 United Kingdom 568 17 138 155 723 1,714 United States 3,084 7 43 50 3,134 3,397 Asia 439 165 389 554 993 754 Other 516 — 131 131 647 821 Total 4,917 189 728 917 5,834 7,294 Analysed as: Total from continuing operations 5,910 Total from discontinued UK and Europe operations 1,384 7,294 With-profits funds Eurozone 29 — 102 102 131 1,243 United Kingdom 41 3 111 114 155 2,794 United States 30 1 3 4 34 3,477 Asia 307 479 344 823 1,130 1,293 Other 73 — 211 211 284 2,305 Total 480 483 771 1,254 1,734 11,112 Analysed as: Total from continuing operations 1,639 Total from discontinued UK and Europe operations 9,473 11,112

Loans portfolio (Tables)

Loans portfolio (Tables)	12 Months Ended
	Dec. 31, 2019
Loans
Financial investments
Schedule of amounts included in the statement of financial position	31 Dec 2019 $m 31 Dec 2018 $m Mortgage Policy Other Mortgage Policy Other loans loans loans loans note (i) note (ii) loans Total note (i) note (ii) loans Total Asia With-profits — 1,089 374 1,463 — 926 83 1,009 Non-linked shareholder-backed 165 316 19 500 199 288 259 746 US Non-linked shareholder-backed 9,904 4,707 — 14,611 9,406 4,688 — 14,094 Other operations — 9 — 9 — — — — Total continuing operations 10,069 6,121 393 16,583 9,605 5,902 342 15,849 Total discontinued UK and Europe operations 5,241 4 1,844 7,089 Total Group 14,846 5,906 2,186 22,938 Notes (i) All mortgage loans are secured by properties. (ii) In the US, $3,587 million of policy loans held at 31 December 2019 (31 December 2018: $3,544 million) are backing liabilities for funds withheld under reinsurance arrangements and are accounted for at fair value through profit or loss. All other policy loans are accounted for at amortised cost, less any impairment.

Financial instruments - addit_2

Financial instruments - additional information (Tables)	12 Months Ended
	Dec. 31, 2019
Financial instruments - additional information
Schedule of contractual maturities of financial liabilities, excluding derivative liabilities and investment contracts, on an undiscounted cash flow basis	31 Dec 2019 $m Total After 1 After 5 After 10 After 15 Total carrying 1 year year to years to years to years to Over No stated undiscounted value or less 5 years 10 years 15 years 20 years 20 years maturity cash flows Financial liabilities Core structural borrowings of shareholder-financed businesses C6.1 5,594 105 1,146 888 648 — — 3,725 6,512 Lease liabilities under IFRS 16 630 145 388 113 37 18 1 — 702 Other operational borrowings 2,015 941 188 232 1,132 2 — — 2,495 Obligations under funding, securities lending and sale and repurchase agreements 8,901 2,067 5,476 1,902 278 — — — 9,723 Accruals, deferred income and other liabilities 14,488 9,172 636 1 — 248 — 4,431 14,488 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 5,998 5,998 — — — — — — 5,998 Total 37,626 18,428 7,834 3,136 2,095 268 1 8,156 39,918 31 Dec 2018 $m Total After 1 After 5 After 10 After 15 Total carrying 1 year year to years to years to years to Over No stated undiscounted value or less 5 years 10 years 15 years 20 years 20 years maturity cash flows Financial liabilities Core structural borrowings of shareholder-financed businesses C6.1 9,761 380 2,240 1,944 2,347 1,363 8,371 3,725 20,370 Operational borrowings 6,289 1,961 1,703 1,002 349 181 2,657 — 7,853 Obligations under funding, securities lending and sale and repurchase agreements 8,901 2,450 4,908 2,131 289 — — — 9,778 Accruals, deferred income and other liabilities 19,421 13,811 599 90 115 138 448 4,503 19,704 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 14,839 14,839 — — — — — — 14,839 Total 59,211 33,441 9,450 5,167 3,100 1,682 11,476 8,228 72,544 Analysed as: Continuing operations 32,839 12,284 7,479 4,167 2,636 1,363 8,412 7,983 44,324 Discontinued UK and Europe operations 26,372 21,157 1,971 1,000 464 319 3,064 245 28,220 59,211 33,441 9,450 5,167 3,100 1,682 11,476 8,228 72,544
Schedule of maturity profile of net derivative positions	Carrying value of net derivatives $m Maturity profile of net derivative position $m Net After 1 After 3 Total Derivative Derivative derivative 1 year year to years to After 5 undiscounted assets liabilities position or less 3 years 5 years years cash flows 2019 1,745 (392) 1,353 1,353 — — — 1,353 2018 4,450 (4,465) (15) 372 (10) (5) 38 395
Schedule of maturity profile for investment contracts	Maturity profile for investment contracts from continuing operations $m Total After 1 After 5 After 10 After 15 undis- 1 year year to years to years to years to Over counted or less 5 years 10 years 15 years 20 years 20 years cash flows 31 Dec 2019 1,557 5,197 3,866 3,049 3,196 5,890 22,755 31 Dec 2018 1,409 4,779 3,352 2,487 2,830 4,257 19,114
Schedule of gross and net information about financial instruments subject to master netting arrangements	31 Dec 2019 $m Gross amount Related amounts not offset included in the in the consolidated statement of consolidated financial position statement of Financial Securities financial position instruments Cash collateral Net amount note (i) note (ii) collateral note (iii) note (iv) Financial assets: Derivative assets 1,708 (115) (901) (618) 74 Reverse repurchase agreements 953 — — (953) — Total financial assets 2,661 (115) (901) (1,571) 74 Financial liabilities: Derivative liabilities (216) 115 86 — (15) Securities lending and repurchase agreements (48) — 48 — — Total financial liabilities (264) 115 134 — (15) 31 Dec 2018 $m Gross amount Related amounts not offset included in the in the consolidated statement of consolidated financial position statement of Financial Securities financial position instruments Cash collateral Net amount note (i) note (ii) collateral note (iii) note (iv) Financial assets: Derivative assets 4,112 (1,606) (2,149) (211) 146 Reverse repurchase agreements 14,771 — — (14,782) (11) Total financial assets 18,883 (1,606) (2,149) (14,993) 135 Financial liabilities: Derivative liabilities (4,062) 1,606 905 1,346 (205) Securities lending and repurchase agreements (1,602) — 43 1,535 (24) Total financial liabilities (5,664) 1,606 948 2,881 (229) Analysed as: Financial assets from continuing operations 3,709 (308) (435) (2,947) 19 Financial assets from discontinued UK and 15,174 (1,298) (1,714) (12,046) 116 Total financial assets 18,883 (1,606) (2,149) (14,993) 135 Financial liabilities from continuing operations (1,637) 308 86 1,095 (148) Financial liabilities from discontinued UK and (4,027) 1,298 862 1,786 (81) Total financial liabilities (5,664) 1,606 948 2,881 (229) Notes (i) The Group has not offset any of the amounts included in the consolidated statement of financial position. (ii) Represents the amount that could be offset under master netting or similar arrangements where the Group does not satisfy the full criteria to offset on the consolidated statement of financial position. (iii) Excludes initial margin amounts for exchange-traded derivatives. (iv) In the tables above, the amounts of assets or liabilities included in the consolidated statement of financial position would be offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables.

Policyholder liabilities and _2

Policyholder liabilities and unallocated surplus (Tables)	12 Months Ended
	Dec. 31, 2019
Policyholder liabilities and unallocated surplus
Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds	Discontinued UK and Asia US Europe $m $m operations Total note C4.2 note C4.3 $m $m Balance at 1 January 2018 99,890 244,483 244,946 589,319 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position note (c) (excludes $43 million classified as unallocated to a segment) 85,089 244,483 226,715 556,287 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,700 — 18,231 22,931 ­ Group’s share of policyholder liabilities of joint ventures and associate note(d) 10,101 — — 10,101 Reclassification of reinsured UK annuity contracts as held for sale — — (14,689) (14,689) Net flows: Premiums 17,607 18,613 18,707 54,927 Surrenders (3,729) (16,211) (9,053) (28,993) Maturities/deaths (2,641) (2,687) (9,074) (14,402) Net flows 11,237 (285) 580 11,532 Addition for closed block of group payout annuities in the US — 5,532 — 5,532 Shareholders’ transfers post-tax (87) — (346) (433) Investment-related items and other movements (3,718) (13,350) (7,318) (24,386) Foreign exchange translation differences (1,914) — (13,171) (15,085) Balance at 31 December 2018/1 January 2019 105,408 236,380 210,002 551,790 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position note (c) (excludes $50 million classified as unallocated to a segment) 91,836 236,380 193,020 521,236 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 3,198 — 16,982 20,180 ­ Group’s share of policyholder liabilities of joint ventures and associate note (d) 10,374 — — 10,374 Demerger of UK and Europe operations — — (210,002) (210,002) Net flows: Premiums 20,094 20,976 — 41,070 Surrenders (4,156) (17,342) — (21,498) Maturities/deaths (2,800) (3,387) — (6,187) Net flows 13,138 247 — 13,385 Shareholders' transfers post-tax (99) – — (99) Investment-related items and other movements 12,824 32,922 — 45,746 Foreign exchange translation differences 1,299 – — 1,299 Balance at 31 December 2019 132,570 269,549 — 402,119 Comprising: ­ Policyholder liabilities on the consolidated statement of financial position (excludes $186 million classified as unallocated to a segment) 115,943 269,549 — 385,492 ­ Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,750 — — 4,750 ­ Group's share of policyholder liabilities of joint ventures and associate note (d) 11,877 — — 11,877 Average policyholder liability balances note (e) 2019 115,015 252,965 n/a 367,980 2018 98,698 239,049 213,492 551,239 Notes (a) The items above represent the amount attributable to changes in policyholder liabilities and unallocated surplus of with-profits funds as a result of each of the components listed. The policyholder liabilities shown include investment contracts without discretionary participation features (as defined in IFRS 4) and their full movement in the year but exclude liabilities that have not been allocated to a reporting segment. The items above are shown gross of external reinsurance. (a) The analysis includes the impact of premiums, claims and investment movements on policyholders’ liabilities. The impact does not represent premiums, claims and investment movements as reported in the income statement. For example, premiums shown above exclude any deductions for fees/charges; claims (surrenders, maturities and deaths) shown above represent the policyholder liabilities provision released rather than the claims amount paid to the policyholder. (b) The policyholder liabilities of the Asia insurance operations at 31 December 2018 of $91,836 million were after deducting the intra-group reinsurance liabilities ceded by the discontinued UK and Europe operations of $1,412 million to the Hong Kong with-profits business, which were recaptured in October 2019 upon demerger. Including this amount, total Asia policyholder liabilities at 31 December 2018 were $93,248 million. (c) The Group’s investment in joint ventures and associate are accounted for on an equity method basis in the Group’s statement of financial position. The Group’s share of the policyholder liabilities as shown above relates to life businesses of the China JV, India and the Takaful business in Malaysia. (d) Average policyholder liabilities have been based on opening and closing balances, adjusted for acquisitions, disposals and other corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds.
Schedule of movement in insurance contract liabilities and unallocated surplus of with-profit funds	Gross Reinsurer's Unallocated insurance share of surplus of contract insurance contract Investment with-profits liabilities liabilities contracts funds $m $m $m $m note (a) note (b) Balance at 1 January 2018 (443,952) 13,086 (112,378) (22,931) Income and expense included in the income statement note (c) - continuing operations 512 548 (104) 1,494 - discontinued operations 11,497 14,727 (5,249) 227 Other movements note (d) 13,375 (13,375) 859 (51) Foreign exchange translation differences 7,621 (793) 6,533 1,081 Balance at 31 December 2018/1 January 2019 (410,947) 14,193 (110,339) (20,180) Demerger of UK and Europe operations note (e) 87,824 (2,169) 105,196 16,982 Income and expense included in the income statement for continuing operations note (c) (55,579) 1,795 (311) (1,415) Other movements note (d) — — (63) (112) Foreign exchange translation differences (1,441) 37 (18) (25) Balance at 31 December 2019 (380,143) 13,856 (5,535) (4,750) Notes (a) Includes reinsurers’ share of claims outstanding of $1,094 million (31 December 2018: $1,280 million). (b) This comprises investment contracts with discretionary participation features of $633 million at 31 December 2019 (31 December 2018: $85,858 million) and investment contracts without discretionary participation features of $4,902 million at 31 December 2019 (31 December 2018: $24,481 million). (c) The total charge for benefits and claims from continuing operations in 2019 shown in the income statement comprises the amounts shown as ‘income and expense included in the income statement’ in the table above of $(55,510) million (2018: $2,450 million) together with claims paid of $(29,585) million (2018: $(26,926) million), net of amounts attributable to reinsurers of $1,190 million (2018: $1,050 million). (d) Other movements for 2019 are for continuing operations only and include premiums received and claims paid on investment contracts without discretionary participating features, which are taken directly to the statement of financial position in accordance with IAS 39 and changes in the unallocated surplus of with-profits funds resulting from the recapture of the intra-group reinsurance agreement between the with-profits discontinued UK and Europe operations and Asia insurance operations prior to the demerger, which is eliminated in the income statement for the continuing operations of the Group. For 2018, in addition to premiums received and claims paid on investment contracts without discretionary participating features, other movements also included the reclassification of the reinsured UK annuity business as held for sale at 31 December 2018 and the changes in the unallocated surplus of with-profits funds resulting from actuarial gains and losses on the Group’s defined benefit pension schemes allocated to the with-profits funds of the discontinued UK and Europe operations, which were recognised directly in other comprehensive income. (e) The balances of the discontinued UK and Europe operations are removed from the opening balances to show the underlying movement from continuing operations. The $2,169 million of reinsurer’s share of insurance contract liabilities in the table above excluded the intra-group reinsurance assets of $1,412 million for the with-profits business ceded to the Asia insurance operations. (iii) Reinsurers’ share of insurance contract liabilities The measurement of reinsurance assets is consistent with the measurement of the underlying direct insurance contracts. The treatment of any gains or losses arising on the purchase of reinsurance contracts is dependent on the underlying accounting basis of the entity concerned. 31 Dec 2019 $m 31 Dec 2018 $m Asia US Unallocated to note (a) note (b) a segment Total Total Insurance contract liabilities 5,311 7,447 4 12,762 12,913 Claims outstanding 147 947 — 1,094 1,280 Total 5,458 8,394 4 13,856 14,193 Analysed as: From continuing operations 12,024 From discontinued UK and Europe operations 2,169 14,193 Notes (a) The reinsurers’ share of insurance contract liabilities for Asia primarily relates to protection business written in Hong Kong. (b) The reinsurer’s share of insurance contract liabilities for Jackson as shown in the table above primarily relates to certain fully collateralised former REALIC business retained by Swiss Re through 100 per cent reinsurance agreements. Apart from the reinsurance of REALIC business, the principal reinsurance ceded by Jackson outside the Group is on term-life insurance, direct and assumed accident and health business and GMIB variable annuity guarantees.
Schedule of products and determination of contract liabilities	Contract type Description and material features Determination of liabilities With-profits and participating contracts Provides savings and/or protection where the basic sum assured can be enhanced by a profit share (or bonus) from the underlying fund as determined at the discretion of the Company. Participating products often offer a guaranteed maturity or surrender value. Declared regular bonuses are guaranteed once vested. Future bonus rates and cash dividends are not guaranteed. Market value adjustments and surrender penalties are used for certain products where the law permits such adjustments. Guarantees are predominantly supported by segregated life funds and their estates. With-profits contracts are predominantly sold in Hong Kong, Malaysia and Singapore. The total value of the with-profits funds is driven by the underlying asset valuation with movements reflected principally in the accounting value of policyholder liabilities and unallocated surplus. Term, whole life and endowment assurance Non-participating savings and/or protection where the benefits are guaranteed, or determined by a set of defined market-related parameters. These products often offer a guaranteed maturity and surrender value. It is common in Asia for regulations or market-driven demand and competition to provide some form of capital value protection and minimum crediting interest rate guarantees. This is reflected within the guaranteed maturity and surrender values. Guarantees are borne by shareholders. The approach to determining the contract liabilities is generally driven by the local solvency basis. A gross premium valuation method is used in those local businesses where a risk-based capital framework is adopted for local solvency. Under the gross premium valuation method, all cash flows are valued explicitly using best estimate assumptions with a suitable margin for prudence. This is achieved either through adding an explicit allowance for assumptions to deviate from best estimate or by applying an overlay constraint so that on day one no negative reserves (ie where future premium inflows are expected to exceed prudent future claims and outflows) are derived at an individual policyholder level, or a combination of both. In Vietnam, the Company uses an estimation basis aligned substantially to that used by the countries applying the gross premium valuation method. For India and Taiwan, US GAAP is applied for measuring insurance liabilities. For these businesses, the future policyholder benefit provisions for non-linked business are determined using the net level premium method, with an allowance for surrenders, maintenance and claims expenses. Rates of interest used in establishing the policyholder benefit provisions vary by operation depending on the circumstances attaching to each block of business. The Hong Kong business unit applies a net premium valuation method to determine the future policyholder benefit provisions. Unit-linked Combines savings with protection, the cash value of the policy depends on the value of the underlying unitised funds. The attaching liabilities reflect the unit value obligation driven by the value of the investments of the unit fund. Additional technical provisions are held for guaranteed benefits beyond the unit fund value using a gross premium valuation method. These additional provisions are recognised as a component of other business liabilities. Health and protection Health and protection features are offered as supplements to the products listed above or sold as standalone products. Protection covers mortality or morbidity benefits including health, disability, critical illness and accident coverage. The determination of the liabilities of health and protection contracts are driven by the local solvency basis. A gross premium valuation method is used in those countries where a risk-based capital framework is adopted for local solvency. Under the gross premium valuation method, all cash flows are valued explicitly using best estimate assumptions with a suitable margin for prudence. This is achieved either through adding an explicit allowance for assumptions to deviate from best estimate or by applying an overlay constraint so that on day one no negative reserves (ie where future premium inflows are expected to exceed prudent future claims and outflows) are derived at an individual policyholder level, or a combination of both. The Hong Kong business unit applies a net premium valuation method to determine the future policyholder benefit provisions. C4.4(b) US Contract type Description and material features Determination of liabilities Fixed interest rate annuities At 31 December 2019, fixed interest rate annuities accounted for 6 per cent (31 December 2018: 7 per cent) of Jackson’s policy and contract liabilities. Fixed interest rate annuities are primarily deferred annuity products that are used for asset accumulation in retirement planning and for providing income in retirement. The policyholder of a fixed interest rate annuity pays Jackson a premium, which is credited to the policyholder’s account. Periodically, interest is credited to the policyholder’s account and in some cases administrative charges are deducted from the policyholder’s account. Jackson makes benefit payments at a future date as specified in the policy based on the value of the policyholder’s account at that date. On more than 90 per cent (2018: 94 per cent) of in-force business, Jackson may reset the interest rate on each contract anniversary, subject to a guaranteed minimum, in line with state regulations. When the annuity matures, Jackson either pays the contract holder the account value or a series of payments in the form of an immediate annuity product. The policy provides that at Jackson’s discretion it may reset the interest rate, subject to a guaranteed minimum. Approximately 65 per cent (31 December 2018:64 per cent) of the fixed interest rate annuities Jackson wrote in 2019 provide for a (positive or negative) market value adjustment (MVA) on surrender. This formula-based adjustment approximates the change in value that assets supporting the product would realise as interest rates move. Guaranteed minimum interest rate. At 31 December 2019, Jackson had fixed interest rate annuities totalling $15.9 billion (31 December 2018: $16.1 billion) in account value with minimum guaranteed rates ranging from 1.0 per cent to 5.5 per cent and a 2.88 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 5.5 per cent and a 2.91 per cent average guaranteed rate), depending on the particular product, jurisdiction where issued and the date of issue. As explained in note A4.1, all of Jackson’s insurance liabilities are based on US GAAP. An overview of the deferral and amortisation of acquisition costs for Jackson is provided in note C5.2(i)(b). With minor exceptions, the following is applied to most of Jackson’s contracts. Contracts are accounted for as investment contracts as defined for US GAAP purposes by applying a retrospective deposit method to determine the liability for policyholder benefits. This is then augmented by: – Any amounts that have been assessed to compensate the insurer for services to be performed over future periods (ie deferred income); – Any amounts previously assessed against policyholders that are refundable on termination of the contract; and – Any probable future loss on the contract (ie premium deficiency). Capitalised acquisition costs and deferred income for these contracts are amortised over the life of the book of contracts. See the variable annuity section below for further discussion. The interest guarantees are not explicitly valued but are reflected as they are earned in the current account liability value. Fixed index annuities At 31 December 2019, fixed index annuities accounted for 5 per cent (31 December 2018: 5 per cent) of Jackson's policy and contract liabilities. Fixed index annuities vary in structure but are generally deferred annuities that enable policyholders to obtain a portion of an equity-linked return (based on participation rates, caps and spreads), and provide a guaranteed minimum return. Most fixed index annuities are subject to early surrender charges for the first five to 12 years of the contract. During the surrender charge period, the contract holder may cancel the contract for the surrender value. Jackson offers a fully liquid fixed index annuity product that has no surrender charges. Jackson hedges the equity return risk on fixed index products using offsetting equity exposure in the variable annuity product. The cost of hedging is taken into account in setting the index participation rates, caps or spreads. Guaranteed minimum rates are generally set at 1.0 to 3.0 per cent. At 31 December 2019, Jackson had fixed index annuities allocated to indexed funds totalling $9.8 billion (31 December 2018: $7.6 billion) in account value with minimum guaranteed rates on index accounts ranging from 1.0 per cent to 3.0 per cent and a 1.46 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 3.0 per cent and a 1.77 per cent average guarantee rate). Jackson offers an optional lifetime income rider, which can be elected for an additional fee. Jackson also offers fixed interest accounts on some fixed index annuity products. At 31 December 2019, fixed interest accounts of fixed index annuities totalled $4.3 billion (31 December 2018: $3.4 billion) in account value. Minimum guaranteed rates on fixed interest accounts range from 1.0 per cent to 3.0 per cent and a 2.75 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 3.0 per cent and a 2.58 per cent average guaranteed rate). The liability for policyholder benefits that represent the guaranteed minimum return is determined similarly to the liabilities of the fixed interest annuity above. The equity-linked return option within the contract is treated as an embedded derivative liability under US GAAP and therefore this element of the liability is recognised at fair value. The liability for the lifetime income rider is determined each period end by estimating the expected value of benefits in excess of the projected account balance and recognising the excess on a prorated basis over the life of the contract based on total expected assessments. Group pay-out annuities At 31 December 2019, group pay-out annuities accounted for 2 per cent (31 December 2018: 2 per cent) of Jackson's policy and contract liabilities. Group pay-out annuities consist of a block of defined benefit annuity plans assumed from John Hancock USA and John Hancock New York. A single premium payment from an employer (contract holder) funds the pension benefits for its employees (participants). The contracts are tailored to meet the requirements of the specific pension plan being covered. This is a closed block of business from two standpoints: (1) John Hancock USA and John Hancock New York are no longer selling new contracts, and (2) contract holders (companies) are no longer adding additional participants to these defined benefit pension plans. The contracts provide annuity payments that meet the requirements of the specific pension plan being covered. In some cases, the contracts have pre-retirement death and/or withdrawal benefits, pre-retirement surviving spouse benefits, and/or subsidised early retirement benefits. The liability for future benefits is determined under US GAAP methodology for limited-payment contracts, using assumptions as of the acquisition date as to mortality and expense plus provisions for adverse deviation. Contract type Description and material features Determination of liabilities Variable annuities At 31 December 2019, variable annuities accounted for 78 per cent (31 December 2018: 75 per cent) of Jackson's policy and contract liabilities. Variable annuities are deferred annuities that have the same tax advantages and pay-out options as fixed interest rate and fixed index annuities. They are also used for asset accumulation in retirement planning and to provide income in retirement. The rate of return depends upon the performance of the selected fund portfolio. Policyholders may allocate their investment to either the fixed account or a selection of variable accounts. Most variable annuities are subject to early surrender charges for the first three to nine years of the contract. During the surrender charge period, the contract holder may cancel the contract for the surrender value. Jackson offers some fully liquid variable annuity products that have no surrender charges. Subject to benefit guarantees, investment risk on the variable account is borne by the policyholder, while investment risk on the fixed account is borne by Jackson through guaranteed minimum fixed rates of interest. At 31 December 2019, 4 per cent (31 December 2018: 5 per cent) of variable annuity funds were in fixed accounts. Jackson had variable annuity funds in fixed accounts totalling $7.8 billion (31 December 2018: $8.1 billion) with minimum guaranteed rates ranging from 1.0 per cent to 3.0 per cent and a 2.19 per cent average guaranteed rate (31 December 2018: 1.0 per cent to 3.0 per cent and a 1.7 per cent average guaranteed rate). Jackson offers a choice of guaranteed benefit options within its variable annuity product portfolio, which can be elected for additional fees. These guaranteed benefits might be expressed as the return of either: (a) total deposits made to the contract adjusted for any partial withdrawals, (b) total deposits made to the contract adjusted for any partial withdrawals, plus a minimum return, or (c) the highest contract value on a specified anniversary date adjusted for any withdrawals following that contract anniversary. Jackson hedges these risks using derivative instruments as described in note C7.3. The general principles for fixed annuity and fixed index annuity also apply to variable annuities. The impact of any fixed account interest guarantees is reflected as they are earned in the current account value. Jackson regularly evaluates estimates used and adjusts the benefit guarantee liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. The benefit guarantee types are further set out below: Benefits that are payable in the event of death (guaranteed minimum death benefit) The liability for Guaranteed Minimum Death Benefit (GMDB) is determined at each period end by estimating the expected value of benefits in excess of the projected account balance and recognising the excess rateably over the life of the contract based on total expected assessments. At 31 December 2019, these liabilities were valued using a series of stochastic investment performance scenarios, a mean investment return of 7.4 per cent (31 December 2018: 7.4 per cent) net of external fund management fees, and assumptions for policyholder behaviour, mortality and expense. Benefits that are payable upon the depletion of funds (guaranteed minimum withdrawal benefit) The liability for the Guaranteed Minimum Withdrawal Benefit (GMWB) ‘for life’ portion is determined similarly to GMDB above. Provisions for benefits under GMWB ‘not for life’ features are recognised at fair value under US GAAP. Non-performance risk is incorporated into the fair value calculation through the use of discount interest rates sourced from an AA corporate credit curve as a proxy for Jackson’s own credit risk. Other risk margins, particularly for policyholder behaviour and long-term volatility, are also incorporated into the model through the use of explicitly conservative assumptions. On a periodic basis, Jackson validates the resulting fair values based on comparisons to other models and market movements. The value of future fees to offset payments made under the guarantees are established so that on day one no gain arises. Benefits that are payable at annuitisation (guaranteed minimum income benefit) This feature is no longer offered and existing coverage is substantially reinsured, subject to deductibles and annual claim limits. The direct Guaranteed Minimum Income Benefit (GMIB) liability is determined by estimating the expected value of the annuitisation benefits in excess of the projected account balance at the date of annuitisation and recognising the excess rateably over the life of the contract based on total expected assessments. Guaranteed Minimum Income Benefits are reinsured, subject to a deductible and annual claim limits. Due to the net settlement provisions of the reinsurance agreement, under the ‘grandfathered’ US GAAP, it is recognised at fair value with the change in fair value included as a component of short-term fluctuations. Volatility and non-performance risk is considered as per GMWB above. Benefits that are payable at the end of a specified period (guaranteed minimum accumulation benefit) This feature is no longer offered. Provisions for Guaranteed Minimum Accumulation Benefit (GMAB) are recognised at fair value under US GAAP. Volatility and non-performance risk is considered as per GMWB above. Deferred acquisition costs (DAC) Capitalised acquisition costs and deferred income for these contracts are amortised over the life of the book of contracts. The majority of Jackson’s DAC relates to its variable annuities business. The present value of the estimated gross profit is computed using the rate of interest that accrues to policyholder balances (sometimes referred to as the contract rate). Estimated gross profits for the fixed interest rate annuities, fixed index annuities and variable annuities include estimates of the following, each of which will be determined based on the best estimate of amounts over the life of the book of contracts without provision for adverse deviation: Contract type Description and material features Determination of liabilities – – – – – – Life insurance At 31 December 2019, life insurance products accounted for 7 per cent (31 December 2018: 9 per cent) of Jackson’s policy and contract liabilities. Jackson discontinued new sales of life insurance products in 2012. Life products include term life, traditional life and interest-sensitive life (universal life and variable universal life). – – – – Excluding the business that is subject to the retrocession treaties at 31 December 2019, Jackson had interest-sensitive life business in force with total account value of $7.9 billion (31 December 2018: $8.2 billion), with minimum guaranteed interest rates ranging from 2.5 per cent to 6.0 per cent with a 4.68 per cent average guaranteed rate (31 December 2018: 2.5 per cent to 6.0 per cent with a 4.67 per cent average guaranteed rate). For term and traditional life insurance contracts, provisions for future policy benefits are determined under US GAAP using the net level premium method and assumptions as of the issue or acquisition date as to mortality, interest, policy lapses and expenses plus provisions for adverse deviation for directly sold business and assumptions at purchase for acquired business. For universal life and variable universal life a retrospective deposit method is used to determine the liability for policyholder benefits. This is then augmented by additional liabilities to account for no-lapse guarantees, profits followed by losses, contract features such as persistency bonuses, and cost of interest rate guarantees. Institutional products At 31 December 2019, institutional products accounted for 1 per cent (31 December 2018: 1 per cent) of Jackson's policy and contract liabilities. Institutional products are: guaranteed investment contracts (GICs), funding agreements (including agreements issued in conjunction with Jackson’s participation in the US Federal Home Loan Bank programme) and Medium Term Note funding agreements. GICs feature a lump sum policyholder deposit on which interest is paid at a rate fixed at inception. Market value adjustments are made to the value of any early withdrawals. Funding agreements feature either lump sum or periodic policyholder deposits. Interest is paid at a fixed or index linked rate. Funding agreements have a duration of between one and 30 years. In 2019 and 2018 there were no funding agreements terminable by the policyholder with less than 90 days’ notice. Institutional products are classified as investment contracts, and are accounted for as financial liabilities at amortised cost. The currency risk on contracts that represent currency obligations other than US dollars are hedged using cross-currency swaps.
Shareholder-backed
Policyholder liabilities and unallocated surplus
Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds	Discontinued UK and Europe Asia US operations Total $m $m $m $m Balance at 1 January 2018 50,598 244,483 76,254 371,335 Reclassification of reinsured UK annuity contracts as held for sale — — (14,689) (14,689) Net flows: Premiums 9,015 18,613 1,984 29,612 Surrenders (3,278) (16,211) (2,692) (22,181) Maturities/deaths (1,396) (2,687) (2,996) (7,079) Net flows note 4,341 (285) (3,704) 352 Addition for closed block of group payout annuities in the US — 5,532 — 5,532 Investment-related items and other movements (1,608) (13,350) (2,637) (17,595) Foreign exchange translation differences (1,626) — (3,313) (4,939) Balance at 31 December 2018/1 January 2019 51,705 236,380 51,911 339,996 Comprising: - Policyholder liabilities on the consolidated statement of financial position (excludes $50 million classified as unallocated to a segment) 41,331 236,380 51,911 329,622 - Group’s share of policyholder liabilities relating to joint ventures and associate 10,374 — — 10,374 Demerger of UK and Europe operations — — (51,911) (51,911) Net flows: Premiums 10,372 20,976 — 31,348 Surrenders (3,610) (17,342) — (20,952) Maturities/deaths (1,168) (3,387) — (4,555) Net flows note 5,594 247 — 5,841 Investment-related items and other movements 4,186 32,922 — 37,108 Foreign exchange translation differences 777 — — 777 Balance at 31 December 2019 62,262 269,549 — 331,811 Comprising: - Policyholder liabilities on the consolidated statement of financial position (excludes $186 million classified as unallocated to a segment) 50,385 269,549 — 319,934 - Group's share of policyholder liabilities relating to joint ventures and associate 11,877 — — 11,877 Note Including net flows of the Group’s insurance joint ventures and associate.
Asia insurance operations
Policyholder liabilities and unallocated surplus
Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds	Shareholder-backed business With-profits Unit-linked Other business liabilities business Total $m $m $m $m Balance at 1 January 2018 49,292 27,093 23,505 99,890 Comprising: - Policyholder liabilities on the consolidated statement of financial position 44,592 22,001 18,496 85,089 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,700 — — 4,700 - Group’s share of policyholder liabilities relating to joint ventures and associate note (a) — 5,092 5,009 10,101 Premiums New business 1,542 1,904 1,449 4,895 In-force 7,050 2,359 3,303 12,712 8,592 4,263 4,752 17,607 Surrenders note (b) (451) (2,542) (736) (3,729) Maturities/deaths (1,245) (187) (1,209) (2,641) Net flows 6,896 1,534 2,807 11,237 Shareholders’ transfers post-tax (87) — — (87) Investment-related items and other movements note (c) (2,110) (1,903) 295 (3,718) Foreign exchange translation differences note (d) (288) (1,020) (606) (1,914) Balance at 31 December 2018/1 January 2019 53,703 25,704 26,001 105,408 Comprising: - Policyholder liabilities on the consolidated statement of financial position 50,505 20,846 20,485 91,836 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 3,198 — — 3,198 - Group’s share of policyholder liabilities relating to joint ventures and associate note (a) — 4,858 5,516 10,374 Premiums New business 1,611 1,837 2,419 5,867 In-force 8,111 2,361 3,755 14,227 9,722 4,198 6,174 20,094 Surrenders note (b) (546) (2,929) (681) (4,156) Maturities/deaths (1,632) (149) (1,019) (2,800) Net flows 7,544 1,120 4,474 13,138 Shareholders' transfers post-tax (99) — — (99) Investment-related items and other movements note (c) 8,638 1,663 2,523 12,824 Foreign exchange translation differences note (d) 522 363 414 1,299 Balance at 31 December 2019 70,308 28,850 33,412 132,570 Comprising: - Policyholder liabilities on the consolidated statement of financial position 65,558 23,571 26,814 115,943 - Unallocated surplus of with-profits funds on the consolidated statement of financial position 4,750 — — 4,750 - Group's share of policyholder liabilities relating to joint ventures and associate note (a) — 5,279 6,598 11,877 Average policyholder liability balances note (e) 2019 58,032 27,277 29,706 115,015 2018 47,548 26,398 24,752 98,698 Notes (a) The Group’s investment in joint ventures and associate are accounted for on an equity method and the Group’s share of the policyholder liabilities as shown above relate to the life business of the China JV, India and the Takaful business in Malaysia. (b) The rate of surrenders for shareholder-backed business (expressed as a percentage of opening policyholder liabilities) was 7.0 per cent in 2019 (2018: 6.6 per cent). (c) Investment-related items and other movements in 2019 primarily represent equity market gains from the with-profits business and effects from lower interest rates. (d) Movements in the year have been translated at the average exchange rates for the year ended 31 December 2019. The closing balance has been translated at the closing spot rates as at 31 December 2019. Differences upon retranslation are included in foreign exchange translation differences. (e) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds.
Schedule of carrying value of policyholder liabilities and maturity profile of cash flows on a discounted basis	31 Dec 2019 $m 31 Dec 2018 $m Policyholder liabilities 115,943 91,836 Expected maturity: 31 Dec 2019 % 31 Dec 2018 % 0 to 5 years 18 20 5 to 10 years 18 19 10 to 15 years 15 15 15 to 20 years 13 12 20 to 25 years 11 10 Over 25 years 25 24
Summary of policyholder liabilities (net of reinsurance) and unallocated surplus, by geographical area	31 Dec 2019 $m 31 Dec 2018 $m Hong Kong 58,800 43,997 Indonesia 4,933 4,687 Malaysia 7,725 6,937 Singapore 27,427 23,121 Taiwan 6,801 5,353 Other operations 9,549 7,402 Total Asia operations 115,235 91,497
Jackson (US insurance operations)
Policyholder liabilities and unallocated surplus
Analysis of movements in policyholder liabilities and unallocated surplus of with-profits funds	Variable annuity separate Fixed annuity, account GICs and other liabilities business Total $m $m $m Balance at 1 January 2018 176,578 67,905 244,483 Premiums 14,646 3,967 18,613 Surrenders (11,746) (4,465) (16,211) Maturities/deaths (1,449) (1,238) (2,687) Net flows 1,451 (1,736) (285) Addition for closed block of group payout annuities in the US — 5,532 5,532 Transfers from general to separate account 708 (708) — Investment-related items and other movements (15,436) 2,086 (13,350) Balance at 31 December 2018/1 January 2019 163,301 73,079 236,380 Premiums 12,776 8,200 20,976 Surrenders (12,767) (4,575) (17,342) Maturities/deaths (1,564) (1,823) (3,387) Net flows note (a) (1,555) 1,802 247 Transfers from general to separate account 951 (951) — Investment-related items and other movements note (b) 32,373 549 32,922 Balance at 31 December 2019 195,070 74,479 269,549 Average policyholder liability balances note (c) 2019 179,186 73,779 252,965 2018 169,940 69,109 239,049 Notes (a) Net inflows in 2019 are $247 million with new inflows into fixed annuity, fixed index annuity and the general account exceeding withdrawals and surrenders on this business, partially offset by net outflows from variable annuity business as the portfolio matures. (b) Positive investment-related items and other movements largely represent positive separate account returns following the increase in the US equity market in the year and asset gains arising from declining bond yields. (c) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the year.
Schedule of carrying value of policyholder liabilities and maturity profile of cash flows on a discounted basis	31 Dec 2019 31 Dec 2018 Variable Variable annuity annuity separate Fixed annuity, GICs separate Fixed annuity, GICs account and other account and other liabilities business Total liabilities business Total $m $m $m $m $m $m Policyholder liabilities 195,070 74,479 269,549 163,301 73,079 236,380 Expected maturity: % % % % % % 0 to 5 years 41 45 42 40 51 43 5 to 10 years 27 27 27 28 24 27 10 to 15 years 16 13 15 16 12 15 15 to 20 years 9 8 9 9 7 8 20 to 25 years 4 4 4 4 3 4 Over 25 years 3 3 3 3 3 3
Schedule of account values within ranges of minimum guaranteed interest rates	Fixed annuities and the fixed account portion of variable annuities Interest-sensitive life business Minimum guaranteed interest rate 31 Dec 2019 $m 31 Dec 2018 $m 31 Dec 2019 $m 31 Dec 2018$m > 0% - 1.0% 6,952 9,660 — — > 1.0% - 2.0% 12,994 8,646 — — > 2.0% - 3.0% 13,701 12,832 270 291 > 3.0% - 4.0% 1,561 1,623 3,018 3,049 > 4.0% - 5.0% 2,236 2,285 2,597 2,683 > 5.0% - 6.0% 278 286 2,031 2,168 Total 37,722 35,332 7,916 8,191

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2019
Intangible assets
Reconciliation of goodwill	31 Dec 2019 $m 31 Dec 2018 $m Carrying value at beginning of year 2,365 2,005 Demerger of UK and Europe operations (1,731) — Additions in the year 299 503 Disposals/reclassifications to held for sale — (13) Exchange differences 36 (130) Carrying value at end of year 969 2,365
Schedule of deferred acquisition costs and other intangible assets	31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs and other intangible assets attributable to shareholders From continuing operations 17,409 14,865 From discontinued operations — 143 Total note (i) 17,409 15,008 Other intangible assets, including computer software, attributable to with-profits funds From continuing operations 67 71 From discontinued operations — 106 Total 67 177 Total of deferred acquisition costs and other intangible assets 17,476 15,185
Shareholder-backed
Intangible assets
Schedule of deferred acquisition costs and other intangible assets	31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs related to insurance contracts as classified under IFRS 4 14,206 12,758 Deferred acquisition costs related to investment management contracts, including life assurance contracts classified as financial instruments and investment management contracts under IFRS 4 33 99 Deferred acquisition costs related to insurance and investment contracts note (ii) 14,239 12,857 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 (PVIF) 38 43 Distribution rights and other intangibles 3,132 2,108 Present value of acquired in-force (PVIF) and other intangibles attributable to shareholders note (iii) 3,170 2,151 Total of deferred acquisition costs and other intangible assets note (a) 17,409 15,008 Notes (a) Total deferred acquisition costs and other intangible assets attributable to shareholders can be further analysed by business operations as follows: 31 Dec 2019 $m 31 Dec 2018 $m Deferred acquisition costs Discontinued PVIF and Asia US UK and other insurance insurance* Europe intangibles† Total Total note (b) operations Balance at 1 January 1,610 11,113 134 2,151 15,008 14,700 Demerger of UK and Europe operations — — (134) (9) (143) — Additions ‡ 615 807 — 1,179 2,601 1,666 Amortisation to the income statement: Adjusted IFRS operating profit based on longer-term investment returns (257) (297) — (238) (792) (1,370) Non-operating profit (loss) — 1,248 — (5) 1,243 (156) (257) 951 — (243) 451 (1,526) Disposals and transfers — — — (11) (11) (19) Exchange differences and other movements 31 — — 103 134 (141) Amortisation of DAC related to net unrealised valuation movements on the US insurance operation's available-for-sale securities recognised within other comprehensive income — (631) — - (631) 328 Balance at 31 December 1,999 12,240 — 3,170 17,409 15,008 * Under the Group’s application of IFRS 4, US GAAP is used for measuring the insurance assets and liabilities of its US and certain Asia operations. Under US GAAP, most of the US insurance operation’s products are accounted for under Accounting Standard no. 97 of the Financial Accounting Standards Board (FAS 97) whereby deferred acquisition costs are amortised in line with the emergence of actual and expected gross profits which are determined using an assumption for long-term investment returns for the separate account of 7.4 per cent (2018: 7.4 per cent), gross of asset management fees and other charges to policyholders, but net of external fund management fees. The other assumption impacting expected gross profits include mortality assumptions, lapses, assumed unit costs and future hedge costs. The amounts included in the income statement and other comprehensive income affect the pattern of profit emergence and thus the DAC amortisation attaching. DAC amortisation is allocated to the operating and non-operating components of the Group’s supplementary analysis of profit and other comprehensive income by reference to the underlying items. † PVIF and other intangibles comprise present value of acquired in-force (PVIF), distribution rights and other intangibles such as software rights. Distribution rights relate to amounts that have been paid or have become unconditionally due for payment as a result of past events in respect of bancassurance partnership arrangements in Asia. These agreements allow for bank distribution of Prudential’s insurance products for a fixed period of time. Software rights include additions of $51 million, amortisation of $(33) million, disposals of $5 million, foreign exchange of $2 million and closing balance at 31 December 2019 of $85 million (31 December 2018: $70 million for continuing operations). ‡ In January 2019, the Group renewed its regional strategic bancassurance alliance with United Overseas Bank Limited (UOB). The new agreement extends the original alliance, which commenced in 2010, to 2034 and increases the geographical scope to include a fifth market, Vietnam, alongside the existing markets of Singapore, Malaysia, Thailand and Indonesia. As part of this transaction, Prudential has agreed to pay UOB an initial fee of $853 million (equivalent to SGD1,150 million) for distribution rights which are not dependent on future sales volumes. Of the $853 million, $301 million was paid in 2019, with another two instalments being payable in 2020 and 2021. After allowing for discounting, the amount included in additions in the table above is $834 million.
Reconciliation of deferred acquisition costs relating to insurance and investment contracts	2019 $m 2018 $m Insurance Investment Insurance Investment contracts contracts contracts contracts note note Balance at 1 January 12,758 99 12,406 85 Demerger of UK and Europe operations (62) (72) — — Additions 1,411 11 1,324 35 Amortisation 699 (5) (1,266) (16) Exchange differences 31 — (34) (5) Change in shadow DAC related to movement in unrealised appreciation of debt securities classified as available-for-sale (631) — 328 — Balance at 31 December 14,206 33 12,758 99 Note All of the additions of investment contracts are through internal development. The carrying amount of the DAC balance comprises the following gross and accumulated amortisation amounts: 31 Dec 2019 $m 31 Dec 2018 $m Gross amount 34 231 Accumulated amortisation (1) (132) Carrying amount 33 99
Reconciliation of PVIF and other intangibles	2019 $m 2018 $m Other Other intangibles intangibles Distribution (including Distribution (including PVIF rights software) Total PVIF rights software) Total note (a) note (b) note (a) note (b) Balance at 1 January Cost 295 2,546 399 3,240 307 2,426 491 3,224 Accumulated amortisation (252) (587) (250) (1,089) (258) (423) (334) (1,015) 43 1,959 149 2,151 49 2,003 157 2,209 Demerger of UK and Europe operations (1) — (8) (9) — — — — Additions — 1,110 69 1,179 — 242 65 307 Amortisation charge (5) (196) (42) (243) (5) (190) (49) (244) Disposals and transfers — — (11) (11) — — (19) (19) Exchange differences and other movements 1 98 4 103 (1) (96) (5) (102) Balance at 31 December 38 2,971 161 3,170 43 1,959 149 2,151 Comprising: Cost 175 3,783 379 4,337 295 2,546 399 3,240 Accumulated amortisation (137) (812) (218) (1,167) (252) (587) (250) (1,089) 38 2,971 161 3,170 43 1,959 149 2,151 Notes (a) All of the net PVIF balances relate to insurance contracts. The PVIF attaching to investment contracts have been fully amortised. Amortisation is charged over the period of provision of asset management services as those profits emerge. Distribution rights relate to fees paid in relation to the bancassurance partnership arrangements for the bank distribution of Prudential’s insurance products for a fixed period of time. The distribution rights amounts are amortised on a basis to reflect the pattern in which the future economic benefits are expected to be consumed by reference to new business production levels.
Jackson (US insurance operations) | Shareholder-backed
Intangible assets
Schedule of DAC components	31 Dec 2019 $m 31 Dec 2018 $m Variable annuity business 12,406 10,796 Other business 529 381 Cumulative shadow DAC (for unrealised gains/losses booked in other comprehensive income)* (695) (64) Total DAC for US operations 12,240 11,113 * A loss of $(631) million (2018: a gain of $328 million) for shadow DAC amortisation is booked within other comprehensive income to reflect the impact from the positive unrealised valuation movement of $4,023 million (2018: negative unrealised valuation movement of $(2,159) million). These adjustments reflect the movement from year to year, in the changes to the pattern of reported gross profit that would have happened if the assets reflected in the statement of financial position had been sold, crystallising the unrealised gains and losses, and the proceeds reinvested at the yields currently available in the market. At 31 December 2019, the cumulative shadow DAC balance as shown in the table above was negative $(695) million (31 December 2018: negative $(64) million).

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Core structural borrowings of shareholder-financed businesses
Borrowings
Schedule of borrowings	Although initially recognised at fair value, net of transaction costs, borrowings, excluding liabilities of consolidated collateralised debt obligations, are subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds (net of related issue costs) is amortised through the income statement to the date of maturity or for hybrid debt, over the expected life of the instrument. 31 Dec 2019 $m 31 Dec 2018 $m Central operations: Subordinated debt substituted to M&G plc in 2019: £600m 5.56% (30 Jun and 31 Dec 2018: 5.0%) Notes 2055 note (i) — 753 £700m 6.34% (30 Jun and 31 Dec 2018: 5.7%) Notes 2063 note (i) — 886 £750m 5.625% Notes 2051 — 947 £500m 6.25% Notes 2068 — 634 US$500m 6.5% Notes 2048 — 498 Total subordinated debt substituted to M&G plc in 2019 note (ii) — Subordinated and other debt not substituted to M&G plc: US$250m 6.75% Notes note (iii) 250 250 US$300m 6.5% Notes note (iii) 300 299 Perpetual Subordinated Capital Securities 550 549 US$700m 5.25% Notes 700 700 US$1,000m 5.25% Notes 996 993 US$725m 4.375% Notes 721 720 US$750m 4.875% Notes 744 743 Perpetual Subordinated Capital Securities 3,161 3,156 €20m Medium Term Notes 2023 22 23 £435m 6.125% Notes 2031 571 549 £400m 11.375% Notes 2039 note (iv) — 508 Subordinated notes 593 1,080 Subordinated debt total 4,304 4,785 Senior debt: note (v) £300m 6.875% Bonds 2023 392 375 £250m 5.875% Bonds 2029 298 283 Bank loans note (vi) $350m Loan 2024 350 — £275m Loan 2022 — 350 Total debt not substituted to M&G plc in 2019 5,344 5,793 Total central operations 5,344 9,511 Jackson US$250m 8.15% Surplus Notes 2027 note (vii) 250 250 Total core structural borrowings of shareholder-financed businesses note (viii) 5,594 9,761 Notes (i) In 2019, the Group agreed with the holders of these two subordinated debt instruments that, in return for an increase in the coupon of the two instruments and upfront fees totalling $182 million for both instruments, they would permit the substitution of M&G plc as the issuer of the instruments, together with other modifications of terms to ensure the debt meet the requirements of Solvency II. In accordance with IAS 39, this has been accounted for as an extinguishment of the old debt and the issuance of new debt, recognised at fair value. The debt was substituted to M&G plc in October 2019. The $182 million of upfront fees have been paid by Prudential plc and have been treated as a non-operating expense from continuing operations. (ii) In 2019, Prudential plc transferred subordinated debt to M&G plc as part of the demerger. In addition to the subordinated debt held at 31 December 2018 as shown in the table above, the debt transferred included the further £300 million 3.875 per cent subordinated debt raised in July 2019 (iii) These borrowings can be converted, in whole or in part, at the Company’s option and subject to certain conditions, on any interest payment date, into one or more series of Prudential preference shares. (iv) In May 2019, the Company redeemed its £400 million 11.375 per cent Tier 2 subordinated notes. (v) The senior debt ranks above subordinated debt in the event of liquidation. (vi) The bank loan of $350 million was drawn in November 2019 at a cost of LIBOR plus 0.2 per cent. The loan matures on 7 November 2024. The £275 million bank loan was repaid by the Group in October 2019. (vii) Jackson’s borrowings are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims of Jackson. (viii) The changes in the carrying value of the structural borrowings of shareholder-financed businesses for the Group (including both continuing and discontinued operations) are analysed below: Cash movements $m Non-cash movements $m Payment Demerger Balance at for change Foreign of UK and beginning Issue of Redemption to terms exchange Europe Other Balance at of year debt of debt of debt movement operations movements end of year 2019 9,761 367 (504) (182) 298 (4,161) 15 5,594 2018 8,496 2,079 (553) (44) (232) — 15 9,761
Schedule of changes in carrying value of structural borrowings of shareholder-financed businesses	Cash movements $m Non-cash movements $m Payment Demerger Balance at for change Foreign of UK and beginning Issue of Redemption to terms exchange Europe Other Balance at of year debt of debt of debt movement operations movements end of year 2019 9,761 367 (504) (182) 298 (4,161) 15 5,594 2018 8,496 2,079 (553) (44) (232) — 15 9,761
Operational borrowings attributable to shareholder-financed businesses
Borrowings
Schedule of borrowings	31 Dec 2019 $m 31 Dec 2018 $m Borrowings in respect of short-term fixed income securities programmes – commercial paper 520 601 Lease liabilities under IFRS 16 note (a) 371 — Non-recourse borrowings of consolidated investment funds note (b) 1,045 448 Bank loans and overdrafts 29 115 Finance lease liability under IAS 17 note (a) — 25 Other 377 82 Other borrowings note (c) 406 222 Operational borrowings attributable to shareholder-financed businesses 2,342 1,271 Non-recourse borrowings of consolidated investment funds note (b) — 2,153 Lease liabilities under IFRS 16 note (a) 259 — Other borrowings 44 2,865 Operational borrowings attributable to with-profits businesses note (d) 303 5,018 Total operational borrowings 2,645 6,289 Analysed as: Total from continuing operations 1,160 Total from discontinued UK and Europe operations 5,129 6,289 Notes (a) The Group adopted IFRS 16 that replaces IAS 17 as at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated (as described in note A3). The finance lease liabilities recognised under IAS 17 in the comparative was principally held by the discontinued UK and Europe operations. Further details on the Group’s IFRS 16 adoption and operating leases are provided in notes A3 and C13. (b) In all instances, the holders of the debt instruments issued by consolidated investment funds do not have recourse beyond the assets of those funds. (c) Other borrowings mainly include senior debt issued through the Federal Home Loan Bank of Indianapolis (FHLB), secured by collateral posted with the FHLB by Jackson. (d) Operational borrowings attributable to with-profits businesses at 31 December 2018 were mainly attributable to the discontinued UK and Europe operations ($4,994 million) held in consolidated investment funds.

Risk and sensitivity analysis (

Risk and sensitivity analysis (Tables)	12 Months Ended
	Dec. 31, 2019
Risk and sensitivity analysis
Schedule of significant items of risk sensitivity	Type of business Market and credit risk Insurance and Investments/derivatives Liabilities/unallocated Other exposure Asia insurance operations (see also section C7.2) All business Mortality and morbidity risk Persistency risk With-profits business Net neutral direct exposure (indirect exposure only) Investment performance subject to smoothing through declared bonuses Unit-linked business Net neutral direct exposure (indirect exposure only) Investment performance through asset management fees Non-participating business Asset/liability mismatch risk Credit risk Interest rates for those operations where the basis of insurance liabilities is sensitive to current market movements Interest rate and price risk US insurance operations (see also section C7.3) All business Currency risk Persistency risk Variable annuity business Net effect of market risk arising from incidence of guarantee features and variability of asset management fees offset by derivative hedging programme Risk that utilisation of withdrawal benefits or lapse levels differ from those assumed in pricing Fixed index annuity business Derivative hedge programme to the extent not fully hedged against liability Incidence of equity participation features and meeting contractual accumulation requirements Minimal lapse risk Fixed index annuities, Fixed annuities and GIC business Credit risk and interest rate risk on investments Profit and loss and shareholders’ equity are volatile for the incidence of these risks on unrealised appreciation of fixed income securities classified as available-for-sale under IAS 39 Interest rate risk on liabilities (meeting guaranteed rates of accumulation on fixed annuity products) Spread difference between earned rate and rate credited to policyholders Lapse risk, but the effects of extreme events may be mitigated by the application of market value adjustments
Asia insurance operations | Interest rate risk
Risk and sensitivity analysis
Schedule of estimated sensitivity to risk	2019 $m 2018 $m Decrease Increase Decrease Increase of 1% of 1% of 1% of 1% Profit before tax attributable to shareholders (705) (744) 397 (430) Related deferred tax (where applicable) 3 26 (19) 33 Net effect on profit after tax and shareholders' equity (702) (718) 378 (397)
Asia insurance operations | Equity price risk
Risk and sensitivity analysis
Schedule of estimated sensitivity to risk	2019 $m 2018 $m Decrease Decrease Decrease Decrease of 20% of 10% of 20% of 10% Profit before tax attributable to shareholders (864) (432) (709) (355) Related deferred tax (where applicable) 48 24 21 10 Net effect on profit after tax and shareholders’ equity (816) (408) (688) (345)
Jackson (US insurance operations)
Risk and sensitivity analysis
Schedule of significant items of risk sensitivity	Risks Risk of loss Equity risk — Related to the incidence of benefits related to guarantees issued in connection with its variable annuity contracts; and — Related to meeting contractual accumulation requirements in fixed index annuity contracts. Interest rate risk — Related to meeting guaranteed rates of accumulation on fixed annuity and interest sensitive life products following a sustained fall in interest rates; — Related to increases in the present value of projected benefits related to guarantees issued in connection with its variable annuity contracts following a sustained fall in interest rates especially if in conjunction with a fall in equity markets; — Related to the surrender value guarantee features attached to the Company’s fixed annuity and interest sensitive life products and to policyholder withdrawals following a sharp and sustained increase in interest rates; and — The risk of mismatch between the expected duration of certain annuity liabilities and prepayment risk and extension risk inherent in mortgage-backed securities.
Jackson (US insurance operations) | Interest rate risk
Risk and sensitivity analysis
Schedule of estimated sensitivity to risk	Debt securities and related derivatives are marked to fair value. Value movements on derivatives, again net of related changes to amortisation of DAC and deferred tax, are recorded within the income statement. Fair value movements on debt securities, net of related changes to amortisation of DAC and deferred tax, are recorded within other comprehensive income. The estimated sensitivity of these items and policyholder liabilities to a 1 per cent and 2 per cent decrease (with no floor of zero applied) and increase in interest rates is as follows: 2019 $m 2018 $m Decrease Increase Decrease Increase of 2% of 1% of 2% of 1% of 2% of 1% of 2% of 1% Profit or loss: Profit before tax (net of related changes in amortisation of DAC) (6,238) (2,815) 3,914 2,141 (4,502) (2,188) 2,815 1,530 Related deferred tax 1,310 591 (822) (450) 945 460 (591) (321) Net effect on profit after tax (4,928) (2,224) 3,092 1,691 (3,557) (1,728) 2,224 1,209 Other comprehensive income: Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC) 5,342 2,840 (5,342) (2,840) 5,265 2,988 (5,265) (2,988) Related deferred tax (1,122) (596) 1,122 596 (1,105) (628) 1,105 628 Net effect on other comprehensive income 4,220 2,244 (4,220) (2,244) 4,160 2,360 (4,160) (2,360) Total net effect on shareholders' equity (708) 20 (1,128) (553) 603 632 (1,936) (1,151)
Jackson (US insurance operations) | Equity price risk
Risk and sensitivity analysis
Schedule of net amount at risk for variable annuity contracts with guarantees	Period Net Weighted until Minimum Account amount average expected return ‡ value at risk attained age annuitisation 31 Dec 2019 % $m $m Years Years Return of net deposits plus a minimum return GMDB 0 - 6 % 150,576 2,477 66.9 years GMWB - premium only 0 % 2,753 16 GMWB * 0 - 5 % ‡ 257 14 GMAB - premium only 0 % 37 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 12,547 69 67.7 years GMWB - highest anniversary only 3,232 51 GMWB * 698 52 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB 0 - 6 % 8,159 687 70.0 years GMIB † 0 - 6 % 1,688 616 0.5 years GMWB * 0 - 8 % ‡ 140,529 7,160 Period Net Weighted until Minimum Account amount average expected return value at risk attained age annuitisation 31 Dec 2018 % $m $m Years Years Return of net deposits plus a minimum return GMDB - 6 % 125,644 5,652 66.5 years GMWB - premium only % 2,450 80 GMWB* - 5 % ‡ 251 25 GMAB - premium only % 34 — Highest specified anniversary account value minus withdrawals post-anniversary GMDB 10,865 1,418 67.1 years GMWB - highest anniversary only 2,827 400 GMWB* 682 113 Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary GMDB - 6 % 6,947 1,550 69.5 years GMIB † - 6 % 1,599 825 0.1 years GMWB* - 8 % ‡ 116,902 21,442 * Amounts shown for GMWB comprise sums for the ‘not for life’ portion (where the guaranteed withdrawal base less the account value equals to the net amount at risk (NAR)), and a ‘for life’ portion (where the NAR has been estimated as the present value of future expected benefit payment remaining after the amount of the ‘not for life’ guaranteed benefits is zero). † The GMIB guarantees are substantially reinsured. ‡ Ranges shown based on simple interest. The upper limits of 5 per cent or 8 per cent simple interest are approximately equal to 4.1 per cent and 6 per cent respectively, on a compound interest basis over a typical 10-year bonus period. For example 1 + 10 x 0.05 is similar to 1.04 growing at a compound rate of 4 per cent for a further nine years. The "Combination GMWB" category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions. Account balances of contracts with guarantees were invested in variable separate accounts as follows: Mutual fund type: 31 Dec 2019 $m 31 Dec 2018 $m Equity 121,520 99,834 Bond 19,341 17,705 Balanced 30,308 25,349 Money market 956 1,049 Total 172,125 143,937
Schedule of estimated sensitivity to risk	. Sensitivity to equity risk - Jackson 2019 $m 2018 $m Decrease Increase Decrease Increase of 20% of 10% of 20% of 10% of 20% of 10% of 20% of 10% Profit before tax (net of related changes in amortisation of DAC) 964 256 1,848 770 1,347 544 74 (159) Related deferred tax (202) (54) (388) (162) (282) (115) (15) 33 Net effect on profit after tax and shareholders' equity* 762 202 1,460 608 1,065 429 59 (126) * The table above has been prepared to exclude the impact of the instantaneous equity movements on the separate account fees. The sensitivity movements shown include those relating to the fixed index annuity and the reinsurance of GMIB guarantees.

Tax assets and liabilities (Tab

Tax assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Tax assets and liabilities
Schedule of deferred tax assets and liabilities	2019 $m Movement Other through movements other including Demerger of Movement in comprehensive foreign Balance at 1 UK and Europe income income and currency Balance at 31 Jan operations statement equity movements Dec Deferred tax assets Unrealised losses or gains on investments 144 — (16) — (128) — Balances relating to investment and insurance contracts 1 — 60 — (29) 32 Short-term temporary differences 2,979 (146) 1,069 (15) 1 3,888 Capital allowances 19 (14) (3) — (1) 1 Unused tax losses 162 — 8 — (16) 154 Total 3,305 (160) 1,118 (15) (173) 4,075 Deferred tax liabilities Unrealised losses or gains on investments (1,104) 1,053 (231) (713) 118 (877) Balances relating to investment and insurance contracts (1,276) — (246) — 15 (1,507) Short-term temporary differences (2,671) 233 (414) 19 (14) (2,847) Capital allowances (71) 65 — — — (6) Total (5,122) 1,351 (891) (694) 119 (5,237) Deferred tax assets Deferred tax liabilities 31 Dec 2019 $m 31 Dec 2018 $m 31 Dec 2019 $m 31 Dec 2018 $m Asia operations 270 152 (2,146) (1,601) US operations 3,804 2,923 (3,091) (2,150) Other operations 1 70 — (20) Total continuing operations 4,075 3,145 (5,237) (3,771) Discontinued UK and Europe operations — 160 — (1,351) Total Group 4,075 3,305 (5,237) (5,122)
Schedule of tax benefits not recognised	31 Dec 2019 $m 31 Dec 2018 $m Tax benefits Losses Tax benefits Losses Continuing Discontinued Total group Continuing Discontinued Total group Trading losses 36 175 61 1 62 301 6 307 Capital losses 1 5 55 7 62 270 38 308

Share capital, share premium _2

Share capital, share premium and own shares (Tables)	12 Months Ended
	Dec. 31, 2019
Share capital, share premium and own shares
Schedule of reconciliation of issued shares	2019 2018 Issued shares of 5p each Number of ordinary Share Share Number of ordinary Share Share fully paid shares capital premium shares capital premium $m $m $m $m Balance at 1 January 2,593,044,409 166 2,502 2,587,175,445 175 2,635 Shares issued under share-based schemes 8,115,540 — 22 5,868,964 1 22 Impact of change in presentation currency — 6 101 — (10) (155) Balance at 31 December 2,601,159,949 172 2,625 2,593,044,409 166 2,502
Summary of options outstanding under save as you earn schemes to subscribe for shares	Number of shares to Share price range subscribe for from to Exercisable by year 31 Dec 2019 3,805,447 1,104 p 1,455 p 31 Dec 2018 4,885,804 901 p 1,455 p
Summary of purchases of own shares in respect of employee incentive plans	Number 2019 share price Number 2018 share price of shares Low High Cost* of shares Low High Cost* £ £ $ £ £ $ January 51,555 19.18 19.40 1,378,409 February 55,765 17.91 18.10 1,402,089 March 55,623 18.25 18.54 1,432,155 April 1,664,334 16.67 17.95 40,997,710 May 63,334 18.91 19.38 1,636,433 June 181,995 18.21 18.65 4,432,511 July 55,888 17.68 17.86 1,308,608 August 60,384 18.04 18.10 1,404,285 September 82,612 16.95 16.98 1,829,814 October 148,209 15.62 16.84 3,223,238 November 67,162 15.95 15.96 1,382,514 December 73,744 13.99 14.30 1,323,949 Total 2,560,605 61,751,715 *

Provisions (Tables)

Provisions (Tables)	12 Months Ended
	Dec. 31, 2019
Provisions
Schedule of total provisions	31 Dec 2019 $m 31 Dec 2018 $m Provision in respect of defined benefit pension schemes C9 1 222 Other provisions note 465 1,151 Total provisions 466 1,373 Analysed as: Continuing operations Discontinued UK and Europe operations
Schedule of analysis of other provisions	2019 $m 2018 $m Balance at 1 January 1,151 1,275 Demerger of UK and Europe operations (725) — Charged to income statement: Additional provisions 188 307 Unused amounts released (7) (24) Utilisation during the year (154) (349) Exchange differences 12 (58) Balance at 31 December 465 1,151

Capital (Tables)

Capital (Tables)	12 Months Ended
	Dec. 31, 2019
Asset management operations
Group objectives, policies and processes for managing capital
Reconciliation of regulatory and other surplus	2019 $m 2018 $m Eastspring Total asset Total asset Regulatory and other surplus Investments US M&G management management Balance at 1 January 374 51 846 1,271 1,185 Demerger of UK and Europe operations (846) (846) — Gains during the year 214 24 — 238 701 Movement in capital requirement (32) — — (32) (7) Capital injection 20 (30) — (10) 135 Distributions made to the parent company (173) (40) — (213) (531) Exchange and other movements (27) 1 — (26) (212) Balance at 31 December 376 6 — 382 1,271

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Property, plant and equipment
Reconciliation of the carrying amount of property, plant and equipment	2019 $m 2018 $m Group Group occupied Tangible Right-of- occupied Tangible property assets use assets Total property assets Total Balance at 1 January Cost 525 2,089 — 2,614 496 1,408 1,904 Accumulated depreciation (105) (714) — (819) (97) (740) (837) Opening net book amount 420 1,375 — 1,795 399 668 1,067 Demerger of UK and Europe operations (143) (1,170) — (1,313) Recognition of right-of-use asset on initial application of IFRS 16 — — 527 527 Arising on acquisitions of subsidiaries 6 13 1 20 6 691 697 Additions 1 63 196 260 47 339 386 Depreciation and impairment charge (9) (77) (141) (227) (14) (170) (184) Disposals and transfers — (11) 1 (10) (11) (92) (103) Effect of movements in exchange rates — 4 9 13 (7) (61) (68) Balance at 31 December 275 197 593 1,065 420 1,375 1,795 Representing: Cost 351 687 734 1,772 525 2,089 2,614 Accumulated depreciation (76) (490) (141) (707) (105) (714) (819) Closing net book amount 275 197 593 1,065 420 1,375 1,795 Analysed as: Continuing operations 277 205 482 Discontinued operations 143 1,170 1,313 420 1,375 1,795

Gain (loss) on disposal of bu_2

Gain (loss) on disposal of business and corporate transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Gain (loss) on disposal of business and corporate transactions
Schedule of gain (Loss) on disposal of business	2019 $m 2018 $m 2017 $m Gain on disposals note (i) 265 — — Other transactions note (ii) (407) (107) Total gain (loss) on disposal of business from continuing operations (142) (107) Notes (i) In 2019, the $265 million gain on disposals principally relates to profits arising from a reduction in the Group’s stake (from 26 per cent to 22 per cent) in its associate in India, ICICI Prudential Life Insurance Company, and the disposal of Prudential Vietnam Finance Company Limited, a wholly owned subsidiary that provides consumer finance. (ii) In 2019, the $(407) million other transactions reflects costs related to the demerger of M&G plc from Prudential plc. These include the following amounts: - $(78) million transaction related costs, principally fees to advisors; - $(182) million being the fee paid to the holders of two subordinated debt instruments as discussed in note C6.1(i); and - $(147) million for one-off costs arising from the separation of the M&G plc business from Prudential plc. In 2018, the $(107) million other transactions primarily related to exiting the NPH broker-dealer business in the US and costs related to the preparation for the demerger of M&G plc.
Schedule of fair value of the acquired assets, assumed liabilities and resulting goodwill	$m Assets Other assets 28 Cash and cash equivalents 2 Total assets 30 Other liabilities (7) Non-controlling interests* (141) Net assets acquired and liabilities assumed (118) Goodwill arising on acquisition* 260 Purchase consideration 142 The goodwill on acquisition of $260 million is mainly attributable to the expected benefits from new customers and synergies. Refer to note C5.1 for changes to the carrying amount of goodwill during the year. The Group has chosen to apply the full goodwill method under IFRS 3, ' Business Combinations ' for this acquisition, with non-controlling interests being measured at fair value on the acquisition date

Discontinued UK and Europe op_2

Discontinued UK and Europe operations (Tables)	12 Months Ended
	Dec. 31, 2019
Discontinued UK and Europe operations
Schedule of results and cash flows for the discontinued UK and Europe operations presented in the consolidated financial statements for the period of ownership up to the demerger	The results and cash flows for the discontinued UK and Europe operations presented in the consolidated financial statements for the period of ownership up to the demerger in October 2019 are analysed below. Income statement 2019 $m 2018 $m 2017 $m Earned premiums, net of reinsurance 10,920 (101) 15,565 Investment return and other income note (1) 22,292 (2,386) 20,550 Total revenue, net of reinsurance 33,212 (2,487) 36,115 Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance (26,975) 6,645 (29,677) Acquisition costs and other expenditure (4,143) (3,296) (4,230) Total charges, net of reinsurance (31,118) 3,349 (33,907) Discontinued UK and Europe operations' profit before tax 2,094 862 2,208 Re-measurement of the UK and Europe operations on demerger note (2) 188 — — Cumulative exchange loss recycled from other comprehensive income (2,668) — — (Loss) profit before tax (386) 862 2,208 Tax (charge) credit note (3) (775) 280 (875) (Loss) profit for the year from discontinued operations (1,161) 1,142 1,333 Notes (1) Includes share of profits from joint ventures and associates, net of related tax. (2) The re-measurement of the discontinued UK and Europe operations on demerger reflects the difference between the fair value of the UK and Europe operations and its net assets at the date of the demerger. (3) The tax (charge) credit wholly relates to the tax on the ordinary profits of the discontinued UK and Europe operations. Other comprehensive income 2019 $m 2018 $m 2017 $m Cumulative exchange loss recycled through profit or loss 2,668 — — Other items, net of related tax 203 (605) 1,023 Other comprehensive income for the year from discontinued operations, net of related tax 2,871 (605) 1,023 The profit and other comprehensive income for the period from the discontinued UK and Europe operations were wholly attributable to the equity holders of the Company. Cash flows 2019 $m 2018 $m 2017 $m Cash flows from operating activities 2,375 5 318 Cash flows from investing activities (454) (478) 1,316 Cash flows from financing activities * — (137) (16) Cash and cash equivalents divested on demerger (7,611) — — Net cash flows in the year (5,690) (610) 1,618 Net cash flows between discontinued and continuing operations* (436) (842) (847) Cash and cash equivalents at beginning of year 6,048 7,857 6,258 Effect of exchange rate changes on cash and cash equivalents 78 (357) 828 Cash and cash equivalents on the consolidated statement of financial position at end of year — 6,048 7,857 The net cash flows between discontinued and continuing operations represents the net cash paid for dividend and other items from discontinued operations to continuing operations. In 2019, the net cash flows of $(436) million primarily include pre-demerger dividend of $(3,841) million, other dividends of $(684) million offset by payment for the transfer of debt to M&G plc from Prudential plc prior to the demerger of $4,161 million.

Investments in subsidiary und_2

Investments in subsidiary undertakings, joint ventures and associates (Tables)	12 Months Ended
	Dec. 31, 2019
Investments in subsidiary undertakings, joint ventures and associates
Schedule of investments in unconsolidated structured entities	31 Dec 2019 $m 31 Dec 2018 $m Separate Other Separate Other Statement of financial position line Investment account structured Investment account structured items funds assets entities funds assets entities Equity securities and holdings in collective investment schemes 23,620 195,070 — 27,021 163,301 — Debt securities — — 6,574 — — 14,113 Total 23,620 195,070 6,574 27,021 163,301 14,113
Schedule of group's share of the profits , net of related tax, and carrying amount of interest in joint ventures and associates, which are equity accounted	Share of profits from joint ventures and associates, net of related tax 2019 $m 2018 $m 2017 $m Asia insurance operations 291 238 156 Asia asset management operations 106 81 77 Total segment and Group total 397 319 233
Schedule of direct subsidiary undertakings of the parent company	The Group also operates through branches. At 31 December 2019, there is no significant branch outside the UK. Direct subsidiary undertakings of the parent company, Prudential plc (shares held directly or via nominees) Key to share classes: Abbreviation Class of share held LBG Limited by Guarantee LPI Limited Partnership Interest MI Membership Interest MFS Mutual Fund Shares NSB Non-stock basis OS Ordinary Shares PI Partnership Interest PS Preference Shares U Units Name of entity Classes of Proportion Registered office address and country of incorporation Prudential Corporation Asia Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom
Schedule of other subsidiaries, joint ventures, associates and significant holdings	Other subsidiaries, joint ventures, associates and significant holdings of the Group – no shares held directly by the parent company, Prudential plc or its nominees Classes of shares Proportion Name of entity held held Registered office address and country of incorporation 95th Avenue Retail Building, LLC MI 100.00% 901 S., Ste. 201, Second St., Springfield, IL, 62704-7909, USA Aberdeen Standard Cash Creation Fund U 34.16% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Singapore Equity U 60.44% 20 Collyer Quay, #01-01, Singapore 049319 Aberforth Standard Global Opportunities Fund U 28.46% Allied Life Brokerage Agency, Inc LPI 100.00% 400 East Court Avenue, Des Moines, IA 50309, USA AMUNDI FTSE China A50 Index ETF U 38.67% 90, boulevard Pasteur, 75015 Paris, France BeGeneral Insurance S.A. OS 51.00% Immeuble WOODIN Center 1st Floor, Avenue Nogues, Plateaux, Abidjan, Cote d’Ivoire BeLife Insurance S.A. OS 50.93% Beneficial General Insurance S.A. OS 50.04% 1944 Blvd de la République, BP 2328, Douala, Cameroon Beneficial Life Insurance S.A. OS 51.00% Beneficial Life Insurance S.A. OS 50.99% 2963 Rue De La Chance Agbalepedogan, P.B. 1115, Lome, Togo BOCHK Aggressive Growth Fund U 65.61% 27/F, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Asia Pacific Equity Fund U 26.29% BOCHK Balanced Growth Fund U 55.31% BOCHK China Equity Fund U 71.35% BOCHK Conservative Growth Fund U 55.24% BOCHK Hong Kong Equity Fund U 21.94% BOCHK US Dollar Money Market Fund U 34.85% BOCI-Prudential Asset Management Limited OS 36.00% BOCI-Prudential Trustee Limited OS 36.00% 12/F & 25/F, Citicorp Centre, 18 Whitfield Road, Causeway Bay, Hong Kong Brier Capital LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Brooke (Holdco 1) Inc OS 100.00% 1105 North Market Street, Suite 1300, Wilmington, DE 19801, USA Brooke Life Insurance Company OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Centre Capital Non-Qualified Investors IV AIV Orion, LP LPI 27.47% 2711 Centreville Road, Suite 400, Wilmington, DE 19808, USA Centre Capital Non-Qualified Investors IV AIV-RA, L.P. LPI 44.55% Centre Capital Non-Qualified Investors IV, L.P. LPI 27.16% Centre Capital Non-Qualified Investors V AIV-ELS LP LPI 36.58% Centre Capital Non-Qualified Investors V LP LPI 37.66% CEP IV-A Chicago AIV LP LPI 23.93% 615 South Dupont Highway, Dover, DE 19901, USA CEP IV-A CWV AIV LP LPI 23.97% 850 New Burton Road, Suite 201, Dover, DE 19904, USA CEP IV-A Davenport AIV LP LPI 23.94% 615 South Dupont Highway, Dover, DE 19901, USA CEP IV-A Indy AIV LP LPI 23.94% CEP IV-A NMR AIV LP LPI 23.94% CEP IV-A WBCT AIV LP LPI 23.94% CITIC-CP Asset Management Co., Ltd. MI 26.95% Room 101-2, No.128 North Zhangjiabang Road, Pudong District, Shanghai, China CITIC-Prudential Fund Management Company Limited MI 49.00% Level 9, HSBC Building, Shanghai IFC, 8 Century Avenue, Pudong, Shanghai, China CITIC-Prudential Life Insurance Company Limited MI 50.00% 0507-0510, 1601-1616, East Tower, World Financial Centre, No.1 East Third Ring Middle Road, Chaoyang District, Beijing, 100020, China Clairvest Equity Partners IV-A LP LPI 23.90% 22 St Clair Avenue East, Suite 1700, Toronto, ON M4T 2S3, Canada Curian Capital, LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Curian Clearing LLC (Michigan) OS 100.00% Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Asset Management Korea Co. Ltd. OS 100.00% 15th Floor, Shinhan Investment Tower, 70 Yoidae-ro, Yeungdeungpo-gu, Seoul 07325, Korea Eastspring Global Smart Beta EMP Securities Investment Trust (H) U 71.97% Goodmorning Shinhan Tower 15F Yeoido Dong 23-2, Yeungdeungpo-gu Seoul 150-010, Korea Eastspring Global Smart Beta EMP Securities Investor Trust (USD) U 99.46% Eastspring Infrastructure Debt Fund L.P. PI 90.00% PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands Eastspring Investment Asia Real Estate Multi Asset Income Fund U 99.99% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investment Asia Sustainable Bond Fund U 100.00% Eastspring Investment Management (Shanghai) Company Limited OS 100.00% Unit 306-308, 3/F Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Investments - Global Growth Equity Fund U 73.57% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments - Global Low Volatility Equity Fund U 98.72% Eastspring Investments - Global Technology Fund U 82.24% Eastspring Investments - India Discovery Fund U 36.63% Eastspring Investments - Japan Fundamental Value Fund U 99.85% Eastspring Investments - Pan European Fund U 61.01% Eastspring Investments - US High Yield Bond Fund U 49.96% Eastspring Investments (Hong Kong) Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Eastspring Investments (Luxembourg) SA OS 100.00% 26 Boulevard Royal, L-2449, Luxembourg Eastspring Investments (Singapore) Limited OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Investments Asia Oceania High Dividend Equity Fund U 100.00% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Asia Oceania U&I Bond Fund U 99.93% Eastspring Investments Asia Pacific Equity Fund U 99.99% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asian Bond Fund U 53.60% Eastspring Investments Asian Dynamic Fund U 92.59% Eastspring Investments Asian Equity Fund U 85.19% Eastspring Investments Asian Equity Income Fund U 78.33% Eastspring Investments Asian High Yield Bond Fund U 39.86% Eastspring Investments Asian High Yield Bond MY Fund U 86.36% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Asian Infrastructure Equity Fund U 50.78% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asian Investment Grade Bond Fund U 99.93% Eastspring Investments Asian Low Volatility Equity Fund U 97.27% Eastspring Investments Asian Multi Factor Equity Fund U 100.00% Eastspring Investments Asian Property Securities Fund U 97.72% Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Investments China A Shares Growth Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Dragon Peacock Fund U 53.18% Eastspring Investments Emerging Markets Star Players U 36.99% Eastsring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Equity Income Fund U 20.89% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments European Inv Grade Bond Fund U 99.28% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Fund Management Limited Liability Company MI 100.00% 23rd Floor, Saigon Trade Center, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Eastspring Investments Global Emerging Markets Bond Fund U 97.03% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Equity Navigator Fund U 100.00% Eastspring Investments Global Market Navigator Fund U 99.68% Eastspring Investments Global Multi Asset Income Plus Growth Fund U 99.99% Eastspring Investments Greater China Equity Fund U 95.19% Eastspring Investments Hong Kong Equity Fund U 93.10% Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, Dover, DE 19904, USA Eastspring Investments India Consumer Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Equity Fund U 68.69% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments India Equity Open (Asset Growth Type) U 28.90% Eastsring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments India Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Infrastructure Equity Open Limited OS 100.00% Eastspring Investments Japan Dynamic MY Fund U 27.65% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Limited OS 100.00% Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-Ku, Tokyo, Japan Eastspring Investments MY Focus Fund U 21.40% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments North America Value Fund U 99.84% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investments Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund U 100.00% Eastspring Investments SICAV-FIS Universal USD Bond Fund U 100.00% Eastspring Investments SICAV-FIS Universal USD Bond II Fund U 100.00% Eastspring Investments Unit Trust - Dragon Peacock Fund U 97.59% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments US Bond Fund U 27.84% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments US Corporate Bond Fund U 70.82% Eastspring Investments US High Inv Grade Bond Fund U 91.67% Eastspring Investments US Investment Grade Bond Fund U 45.41% Eastspring Investments US Strategic Income Bond Fund U 100.00% Eastspring Investments US Total Return Bond Fund U 100.00% Eastspring Investments UT Singapore ASEAN Equity Fund U 99.76% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments UT Singapore Select Bond Fund U 77.80% Eastspring Investments Vietnam Navigator Fund U 71.42% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Eastspring Investments World Value Equity Fund U 92.88% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Overseas Investment Fund Management (Shanghai) Company Limited OS 100.00% Unit 306-308, 3/F., 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Real Assets Partners OS 100.00% PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands Eastspring Securities Investment Trust Co., Ltd. OS 99.54% 4th Floor, No.1 Songzhi Road, Taipei 110, Taiwan First State China Focus Fund U 66.58% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland First State Global Property A U 52.26% 38 Beach Road, #06-11 South Beach Tower, Singapore 189767 Fubon China Currency Fund U 20.59% 8F, No. 108, Sec 1, Tun Hwa, South Road, Taipei, Taiwan Furnival Insurance Company PCC Limited OS 100.00% PO Box 34, St Martin’s House Le Bordage, St Peter Port, Guernsey, GY1 4AU GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Hermitage Management LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Hyde Holdco 1 Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom ICICI Prudential Asset Management Company Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India ICICI Prudential Life Insurance Company Limited OS 22.11% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company OS 22.11% ICICI Prudential Trust Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India Invesco Fixed Maturity Selective Emerging Market Bonds 2024 U 61.60% 8F, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 68.28% INVEST Financial Company Insurance Agency LLC of Illinois OS 100.00% 208 South LaSalle Street, Chicago, IL 60604, USA iShares Core MSCI Europe U 21.26% State Street Fund Services (Ireland) Limited, 78 Sir John Rogerson's Quay, Dublin 2, Ireland iShares Fallen Angels High Yield Corporate Bond UCITS ETF Wing U 47.36% 79 Sir John Rogerson's Quay, Dublin 2, D02 RK 57, Ireland iShares S&P 500 Financials Sector UCITS U 22.98% iShares S&P 500 Utilities Sector UCITS ETF U 53.39% Jackson Charitable Foundation Inc NSB 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson Holdings LLC OS 100.00% 1105 North Market Street, Suite 1300, Wilmington, DE 19801, USA Jackson National Asset Management LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson National Life (Bermuda) Limited OS 100.00% Cedar House, Hamilton, Bermuda Jackson National Life Distributors LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA Jackson National Life Insurance Company OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Jackson National Life Insurance Company of New York OS 100.00% 2900 Westchester Avenue, Suite 305, Purchase, NY 10577, USA Lasalle Property Securities SICAV-FIS U 99.97% 11-13 Boulevard de la Foire, L-1528 Luxembourg M&G Asia Property Trust U 99.97% 8 Marina Boulevard, 05-02 Marina Bay, Financial Centre Tower 1, Singapore, 018981 M&G Luxembourg European Strategic Value Fund U 50.24% 49 Avenue J.F. Kennedy, L-1855, Luxembourg M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% 10 Marina Boulevard, #31-03, Marina Bay, Financial Centre Tower 2, Singapore, 018983 Manulife Asia Pacific Bond Fund U 27.29% 9/F, No 89 Son Ren Road, Taipei, Taiwan Manulife China Dim Sum High Yield Bond Fund U 58.33% Manulife China Offshore Bond Fund U 39.57% Manulife USD High Yield Bond Fund U 37.47% Mission Plans of America, Inc OS 100.00% 1999 Bryan Street, Suite 900, Dallas, TX 75201, USA National Planning Holdings, LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 33.30% 101 Tower, 30F, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 42.14% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 25.01% North Sathorn Holdings Company Limited OS 100.00% 3 Rajanakarn Building, 20th Floor, South Sathorn Road, Yannawa Subdistrict, Sathorn District, Bangkok, Thailand PCA IP Services Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong PCA Life Assurance Co. Ltd. OS 99.79% 8th Floor, No.1 Songzhi Road, Taipei 11047, Taiwan PCA Reinsurance Co. Ltd. OS 100.00% Unit Level 13(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia PGDS (US One) LLC OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA PPM America Capital Partners III, LLC MI 60.50% 874 Walker Road, Suite C, Dover, DE 19904, USA PPM America Capital Partners IV, LLC MI 34.50% PPM America Capital Partners V, LLC MI 34.00% PPM America Capital Partners VI, LLC MI 32.00% PPM America Private Equity Fund III LP LPI 50.06% PPM America Private Equity Fund IV LP LPI 49.97% PPM America Private Equity Fund V LP LPI 49.97% PPM America Private Equity Fund VI LP LPI 59.94% PPM America Private Equity Fund VII LP LPI 54.00% PPM America, Inc OS 100.00% PPM CLO 2 Ltd. OS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM CLO 2, LLC PS 100.00% 4001 Kennet Pike, Suite 301, Wilmington, DE, 19807, USA PPM CLO 2018-1 Ltd. PS 100.00% Queensgate House, South Church Street, George Town, Grand Cayman KY1-1102, Cayman Islands PPM CLO 3 Ltd. OS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM CLO 3, LLC PS 100.00% 4001 Kennet Pike, Suite 301, Wilmington, DE, 19807, USA PPM CLO 4 Ltd. PS 100.00% PO Box 1093, Queensgate House,Grand Cayman KY1-1102, Cayman Islands PPM Funds - PPM Core plus Fixed Income Fund MFS 100.00% 84 State Street, 6th Floor, Boston, MA 02109 PPM Funds - PPM Large Cap Value Fund MFS 99.96% PPM Funds - PPM Long Short Credit Fund MFS 100.00% PPM Funds - PPM Mid Cap Value Fund MFS 99.57% PPM Holdings, Inc OS 100.00% 774 Walker Road, Suite C, Dover, DE 19904, USA PPM Loan Management Company LLC MI 100.00% PPM Loan Management Holding Company LLC MI 100.00% Prenetics Limited PS 14.27% 7th Floor, Prosperity Millennia Plaza, 663 King’s Road, North Point, Hong Kong Pru Life Insurance Corporation of U.K. OS 100.00% 9th Floor, Uptown Place Tower 1, 1 East 11th Drive, Uptown Bonifacio, 1634 Taguig City, Metro Manila, Philippines Pru Life UK Asset Management and Trust Corporation OS 100.00% 2/F., Uptown Parade 2, 36th Street, Uptown Bonifacio, 1634 Taguig City, Philippines Prudence Foundation LBG 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential (Cambodia) Life Assurance Plc OS 100.00% 20th Floor, #445, Monivong Blvd, Boeung Prolit, 7 Makara, Phnom Penh Tower, Phnom Penh, Cambodia Prudential (US Holdco 1) Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Africa Holdings Limited OS 100.00% Prudential Africa Services Limited OS 100.00% 5th Ngong Avenue, Nairobi, Kenya Prudential Assurance Company Singapore (Pte) Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Assurance Malaysia Berhad* OS 51.00% Level 20, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Prudential Assurance Uganda Limited OS 100.00% Kampala Road, Kampala, Uganda Prudential BSN Takaful Berhad† OS 49.00% Level 8A, Menara Prudential, No. 10 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Prudential Corporation Australasia Holdings Pty Limited (in liquidation) OS 100.00% 31 Highgate Circuit, Kellyville, NSW, 2155, Australia Prudential Corporation Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Five Limited (in liquidation) OS 100.00% c/o Mazars LLP, 45 Church Street, Birmingham, B3 2RT, United Kingdom Prudential General Insurance Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential Group Secretarial Services HK Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Secretarial Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Holdings Limited OS 100.00% 4th Floor, Saltire Court, 20, Castle Terrace, Edinburgh, EH1 2EN, United Kingdom Prudential Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential International Staff Pensions Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential International Treasury Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential IP Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Life Assurance (Lao) Company Limited OS 100.00% 5th Floor, Lao international Business and Tourist Center Project (Vientiane Center), Khouvieng Road, Nongchan Village, Sisattanak District, Vientiane Capital, Lao PDR Prudential Life Assurance (Thailand) Public Company Limited OS 99.93% 9/9 Sathorn Building, 20th–27th Floor, South Sathorn Road, Yannawa, Sahtorn, Bangkok 10120, Thailand Prudential Life Assurance Kenya Limited OS 100.00% 5th Ngong Avenue, Nairobi, Kenya Prudential Life Assurance Zambia Limited OS 100.00% Prudential House, Thabo Mbeki Road, Lusaka, Zambia Prudential Life Insurance Ghana Limited OS 100.00% 35 North Street, Accra, Ghana Prudential Life Vault Limited OS 100.00% 98 Awolowo Road, South-West Ikoyi, Lagos, Nigeria Prudential Mauritius Holdings Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene, 72201, Mauritius Prudential Myanmar Life Insurance Limited OS 100.00% #15-01, 15th Floor, Sule Square, 221 Sule Pagoda Road, Kyauktada Township, Yangon, Myanmar Prudential Pensions Management Zambia Limited OS 49.00% Prudential House, Thabo Mbeki Road, Lusaka, Zambia Prudential Services Asia Sdn. Bhd. OS 100.00% Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1 Leboh Ampang, 50100 Kuala Lumpur, Malaysia PS 100.00% Prudential Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Services Singapore Pte. Ltd. OS 100.00% 1 Wallich Street, #19-01 Guoco Tower, Singapore 078881 Prudential Singapore Holdings Pte. Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Vietnam Assurance Private Limited OS 100.00% 25th Floor, Saigon Trade Centre, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Prudential Zenith Life Insurance Limited OS 51.00% 13th Floor, Civic Towers, Ozumba Mbadiwe Avenue, Victoria Island, Lagos, Nigeria PT. Eastspring Investments Indonesia OS 99.95% Prudential Tower, 23rd Floor , Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia PT. Prudential Life Assurance OS 94.62% Prudential Tower, JI. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia PVFC Financial Limited OS 100.00% Suite 509, 5/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong REALIC of Jacksonville Plans, Inc OS 100.00% 1999 Bryan Street, Suite 900, Dallas, TX 75201, USA Reksa Dana Eastspring IDR Fixed Income Fund (NDEIFF) U 99.91% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia Reksa Dana Eastspring Investments Alpha Navigator Fund U 78.29% Reksa Dana Eastspring Investments Cash Reserve U 100.00% Reksa Dana Eastspring Investments IDR High Grade U 91.04% Reksa Dana Eastspring Investments Value Discovery U 91.94% Reksa Dana Syariah Eastspring Syariah Equity Islamic Asia Pacific USD U 94.37% Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah U 65.65% Reksa Dana Syariah Eastspring Syariah Money Market Khazanah U 99.93% Reksa Dana Syariah Penyertaan Terbatas Bahana Syariah BUMN Fund U 99.01% Graha CIMB Niaga 21st Floor. Jl Jend Sudirman Kav 58, Jakarta - 12190, Indonesia. Rhodium Investment Fund U 99.98% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 ROP, Inc OS 100.00% 1209 Orange Street, Wilmington, DE 19801, USA SCB SET Banking Sector Index (Accumulation) U 32.08% 7-8th Floor, SCB Park Plaza 1, 18 Ratchadapisek Road, Chatuchak, Bangkok 10900, Thailand Schroder Asian Investment Grade Credit U 41.08% 138 Market Street, #23-01 CapitaGreen, Singapore 048946 Schroder Emerging Markets Fund U 58.49% Schroder Multi-Asset Revolution U 63.81% Schroder US Dollar Money Fund U 37.19% HSBC Institutional Trust Service (Asia) Limited, 1 Queen's Road Central, Hong Kong. Scotts Spazio Pte. Ltd. OS 45.00% 30 Cecil Street #23-02 Prudential Tower, Singapore, 049712 SINOPAC China High Yield Fixed Income Fund U 35.38% 9F No.39 Section 1, Chung Hua Road, Taipei, Taiwan Squire Capital I LLC MI 100.00% 1 Corporate Way, Lansing, MI 48951, USA Squire Capital II LLC OS 100.00% Squire Reassurance Company II, Inc OS 100.00% 40600 Ann Arbor Road, East Suite 201, Plymouth, MI 48170, USA Squire Reassurance Company LLC OS 100.00% 1 Corporate Way, Lansing, MI 48951, USA Sri Han Suria Sdn. Bhd. OS 51.00% Suite 1005, 10th Floor Wisma Hamzah-Kwong Hing, No. 1 Leboh Ampang, 50100 Kuala Lumpur, Malaysia Staple Limited OS 100.00% 3 Rajanakarn Building, 20th Floor, South Sathorn Road, Yannawa Subdistrict, Sathorn District, Bangkok, Thailand Taishin Emerging Markets Bond Fund U 28.78% 1F, No.9, Dehui St., Zhongshan Dist. Taipei, Taiwan Templeton Asian Growth Fund U 26.08% 8A, rue Albert Borschette, L-1246 Luxembourg Thanachart Fund Management Co., Ltd. OS 50.10% No. 231, MBK Life Building, 5th-7th Floor, Ratchadamri Road, Lumpini Sub-district, Pathumwan District, Bangkok, Thailand Thanachart Long Term Fixed Income Fund U 27.79% TMB Asset Management Co., Ltd. OS 65.00% 32nd FL, Abdulrahim Place, 990 Rama IV Rd, Silom, Bangrak, Bangkok 10500, Thailand UOB Smart Global Healthcare U 35.44% 23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand UOB Smart Millennium Growth Fund U 36.96% VFL International Life Company SPC, Ltd. OS 100.00% 171 Elgin Avenue, Grand Cayman, Cayman Islands Wynnefield Private Equity Partners I, L.P. LPI 99.00% 1105 North Market Street, Suite 1300, Wilmington, DE 19801, USA * †

Basis of preparation and acco_4

Basis of preparation and accounting policies - Exchange rates applied (Details)	12 Months Ended
	Dec. 31, 2019$ / ₫	Dec. 31, 2019$ / ₫$ / ฿	Dec. 31, 2019$ / ₫$ / $	Dec. 31, 2019$ / ₫$ / RM	Dec. 31, 2019$ / ₫$ / Rp	Dec. 31, 2019$ / ₫$ / $	Dec. 31, 2019$ / ₫$ / £	Dec. 31, 2019$ / ₫$ / ¥	Dec. 31, 2018$ / ₫	Dec. 31, 2018$ / ₫$ / ฿	Dec. 31, 2018$ / ₫$ / $	Dec. 31, 2018$ / ₫$ / RM	Dec. 31, 2018$ / ₫$ / Rp	Dec. 31, 2018$ / ₫$ / $	Dec. 31, 2018$ / ₫$ / £	Dec. 31, 2018$ / ₫$ / ¥	Dec. 31, 2017$ / ₫	Dec. 31, 2017$ / ₫$ / ฿	Dec. 31, 2017$ / ₫$ / $	Dec. 31, 2017$ / ₫$ / RM	Dec. 31, 2017$ / ₫$ / Rp	Dec. 31, 2017$ / ₫$ / $	Dec. 31, 2017$ / ₫$ / £	Dec. 31, 2017$ / ₫$ / ¥	Dec. 31, 2019$ / ฿	Dec. 31, 2019$ / $	Dec. 31, 2019$ / RM	Dec. 31, 2019$ / Rp	Dec. 31, 2019$ / $	Dec. 31, 2019$ / £	Dec. 31, 2019$ / ¥	Dec. 31, 2018$ / ฿	Dec. 31, 2018$ / $	Dec. 31, 2018$ / RM	Dec. 31, 2018$ / Rp	Dec. 31, 2018$ / $	Dec. 31, 2018$ / £	Dec. 31, 2018$ / ¥	Dec. 31, 2017$ / ฿	Dec. 31, 2017$ / $	Dec. 31, 2017$ / RM	Dec. 31, 2017$ / Rp	Dec. 31, 2017$ / $	Dec. 31, 2017$ / £	Dec. 31, 2017$ / ¥	Dec. 31, 2016$ / ₫	Dec. 31, 2016$ / ฿	Dec. 31, 2016$ / $	Dec. 31, 2016$ / RM	Dec. 31, 2016$ / Rp	Dec. 31, 2016$ / $	Dec. 31, 2016$ / £	Dec. 31, 2016$ / ¥
Basis of preparation and accounting policies
Closing rate	23,172.50	23,172.50	23,172.50	23,172.50	23,172.50	23,172.50	23,172.50	23,172.50	23,195	23,195	23,195	23,195	23,195	23,195	23,195	23,195	22,708.16	22,708.16	22,708.16	22,708.16	22,708.16	22,708.16	22,708.16	22,708.16	29.75	1.34	4.09	13,882.50	7.79	0.75	6.97	32.56	1.36	4.13	14,380	7.83	0.79	6.87	32.59	1.34	4.05	13,567	7.82	0.74	6.51	22,770.08	35.81	1.44	4.49	13,471.96	7.75	0.81	6.95
Average rate	23,227.64	31.05	1.36	4.14	14,140.84	7.84	0.78	6.91	23,017.17	32.30	1.35	4.03	14,220.82	7.84	0.75	6.61	22,716.82	33.91	1.38	4.30	13,383.03	7.79	0.78	6.76

Basis of preparation and acco_5

Basis of preparation and accounting policies - Exchange movement (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Exchange movement arising recognised in other comprehensive income
Foreign exchange adjustments arising on retranslation of share capital and share premium balances	$ 2,797	$ 2,668
Impact of functional currency retranslation that will never be recycled	$ 980
Exchange movements arising during the year			$ 152	$ (39)	$ 129
Operating segments | Asia
Exchange movement arising recognised in other comprehensive income
Exchange movements arising during the year			194	(206)	363
Unallocated to a segment (other operations)
Exchange movement arising recognised in other comprehensive income
Exchange movements arising during the year			$ (42)	$ 167	$ (234)

Basis of preparation and acco_6

Basis of preparation and accounting policies - Effect of adoption of IFRS 16 and reconciliation of lease liability and lease commitments (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Disclosure of initial application of standards or interpretations [line items]
Weighted-average rate (as a percent)				3.40%
Liabilities
Operational borrowings (lease liability)	[1],[2]	$ 2,645
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)		$ (14,488)	[2]	$ (13,338)
UK & Europe Discontinued Operations (M&G Prudential)
Liabilities
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)				(6,083)
Total operating lease commitments as at 31 December 2018 disclosed in the 2018 Annual Report				76
Continuing and discontinued operations
Liabilities
Operational borrowings (lease liability)	[1],[2],[3]			6,289	$ 7,450
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)	[2],[3]			(19,421)	$ (19,190)
Effect of IFRS 16
Assets
Right-of-use assets				527
Liabilities
Operational borrowings (lease liability)				541
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)				(14)
Total liabilities				527
Effect of IFRS 16 | Property, plants and equipment
Assets
Right-of-use assets				527
Effect of IFRS 16 | UK & Europe Discontinued Operations (M&G Prudential)
Assets
Right-of-use assets				368
Liabilities
Operational borrowings (lease liability)				414
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)				(46)
Total liabilities				368
Effect of IFRS 16 | UK & Europe Discontinued Operations (M&G Prudential) | Property, plants and equipment
Assets
Right-of-use assets				368
Effect of IFRS 16 | Continuing and discontinued operations
Assets
Right-of-use assets				895
Liabilities
Operational borrowings (lease liability)				955
Accruals, deferred income and other liabilities (Accrued lease payment balance under IAS 17)				(60)
Total liabilities				895
IFRS 16 operating lease liability shown in the table above				955
Add back impact of discounting				210
IFRS 16 operating lease liability undiscounted				1,165
Difference in lease rental payments due to probable renewals or early termination decisions reflected above				(48)
Other				(6)
Total operating lease commitments as at 31 December 2018 disclosed in the 2018 Annual Report				1,111
Effect of IFRS 16 | Continuing and discontinued operations | Property, plants and equipment
Assets
Right-of-use assets				$ 895
[1]	As at 1 January 2019, the Group applied IFRS 16 ‘Leases’, using the modified retrospective approach. Under this approach, comparative information is not restated. The application of the standard has resulted in the recognition of an additional lease liability and a corresponding ‘right-of-use’ asset of a similar amount as at 1 January 2019. See note A3 and note C13 for further details.
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[3]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Basis of preparation and acco_7

Basis of preparation and accounting policies - Various accounting policies (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Critical accounting policies and estimates
Contract liabilities requiring classification		$ 397,600
Profit from continuing operations before tax attributable to shareholders		1,922	$ 3,450	$ 2,588
Profit from continuing operations before tax	[1]	2,287	3,557	2,909
Adjusted IFRS operating profit from continuing operations based on longer-term investment returns		5,310	4,409	4,378
Operating segments
Critical accounting policies and estimates
Profit from continuing operations before tax attributable to shareholders		3,468	4,506	3,596
Profit from continuing operations before tax		3,833	4,613	3,917
Adjusted IFRS operating profit from continuing operations based on longer-term investment returns		6,346	5,451	5,412
Operating segments after elimination of intra-group amounts, before unallocated
Critical accounting policies and estimates
Liabilities relating to insurance or investment contracts		402,119
Jackson (US insurance operations)
Critical accounting policies and estimates
Income statement investment return		(4,225)
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated
Critical accounting policies and estimates
Liabilities relating to insurance or investment contracts		$ 269,549	$ 236,380	$ 244,483
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.

Basis of preparation and acco_8

Basis of preparation and accounting policies - Policies - Deferred acquisition costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Jackson (US insurance operations) | Continuing and discontinued operations
Critical accounting policies and estimates
Deferred acquisition costs for insurance contracts	$ 12,240	$ 11,113
Shareholder-backed | Continuing and discontinued operations
Critical accounting policies and estimates
Deferred acquisition costs for insurance contracts	$ 14,200
Shareholder-backed | Jackson (US insurance operations) | Variable annuities
Critical accounting policies and estimates
Assumptions for amortisation of deferred acquisition costs - period for projected level of investment return	5 years
Assumptions for amortisation of deferred acquisition costs - preceding period of actual investment return	3 years
Assumptions for amortisation of deferred acquisition costs - investment return realisation period	8 years
Expected long-term level of separate account returns (as a percent)	7.40%	7.40%
Shareholder-backed | Jackson (US insurance operations) | Maximum | Variable annuities
Critical accounting policies and estimates
Projected long-term level of returns	15.00%
Shareholder-backed | Jackson (US insurance operations) | Minimum | Variable annuities
Critical accounting policies and estimates
Projected long-term level of returns	0.00%

Basis of preparation and acco_9

Basis of preparation and accounting policies - Policies - investments (Details) $ in Millions	Dec. 31, 2019USD ($)
Financial instruments
Financial investments	$ 404,096
At fair value
Financial instruments
Financial investments at fair value	388,093
Assets and liabilities at amortised cost for which fair value is disclosed
Financial instruments
Financial investments	$ 15,600

Basis of preparation and acc_10

Basis of preparation and accounting policies - Policies - impairment (Details) $ in Millions	Dec. 31, 2019USD ($)
Assets subject to impairment estimates
Financial investments	$ 404,096
Assets and liabilities at amortised cost for which fair value is disclosed
Assets subject to impairment estimates
Financial investments	15,600
Distribution rights
Assets subject to impairment estimates
Intangible assets	3,000
Available-for-sale securities and assets held at amortised cost
Assets subject to impairment estimates
Financial investments	$ 73,900

Basis of preparation and acc_11

Basis of preparation and accounting policies - New accounting pronouncements (Details)	Dec. 31, 2019
Basis of preparation and accounting policies
Percentage of the Group's investments valued at FVTPL	82.00%

Basis of preparation and acc_12

Basis of preparation and accounting policies - Financial assets presentation based on SPPI test of IFRS 9 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financial assets
Fair value of financial assets that pass the SPPI test	$ 83,124	$ 104,683
Movement in the fair value of financial assets that pass the SPPI test	4,631	(2,760)
Fair value of all other financial assets, net of derivative liabilities	331,755	463,045
Movement in the fair value of all other financial assets, net of derivative liabilities	44,065	(27,174)
Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	1,721	1,542
Fair value of all other financial assets, net of derivative liabilities	12,079	10,092
Movement in the fair value of all other financial assets, net of derivative liabilities	530	(260)
Accrued investment income
Financial assets
Fair value of financial assets that pass the SPPI test	1,641	3,501
Accrued investment income | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	161	167
Other debtors
Financial assets
Fair value of financial assets that pass the SPPI test	2,054	5,207
Other debtors | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	329	270
Loans
Financial assets
Fair value of financial assets that pass the SPPI test	13,484	15,175
Movement in the fair value of financial assets that pass the SPPI test	517	(658)
Fair value of all other financial assets, net of derivative liabilities	3,614	8,284
Movement in the fair value of all other financial assets, net of derivative liabilities	2	(233)
Loans | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	197	149
Equity securities and holdings in collective investment schemes
Financial assets
Fair value of all other financial assets, net of derivative liabilities	247,281	273,484
Movement in the fair value of all other financial assets, net of derivative liabilities	44,250	(21,843)
Equity securities and holdings in collective investment schemes | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of all other financial assets, net of derivative liabilities	5,999	4,683
Movement in the fair value of all other financial assets, net of derivative liabilities	444	(375)
Debt securities
Financial assets
Fair value of financial assets that pass the SPPI test	56,365	50,335
Movement in the fair value of financial assets that pass the SPPI test	4,114	(2,102)
Fair value of all other financial assets, net of derivative liabilities	78,205	172,998
Movement in the fair value of all other financial assets, net of derivative liabilities	5,594	(4,464)
Debt securities | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of all other financial assets, net of derivative liabilities	6,080	5,409
Movement in the fair value of all other financial assets, net of derivative liabilities	86	115
Debt securities | AAA
Financial assets
Fair value of financial assets that pass the SPPI test	1,117	830
Debt securities | AA+ to AA-
Financial assets
Fair value of financial assets that pass the SPPI test	11,328	9,236
Debt securities | A+ to A-
Financial assets
Fair value of financial assets that pass the SPPI test	15,140	13,009
Debt securities | BBB+ to BBB-
Financial assets
Fair value of financial assets that pass the SPPI test	17,972	18,232
Debt securities | Below BBB-
Financial assets
Fair value of financial assets that pass the SPPI test	814	1,074
Debt securities | Other
Financial assets
Fair value of financial assets that pass the SPPI test	9,994	7,954
Derivative assets, net of derivative liabilities
Financial assets
Fair value of all other financial assets, net of derivative liabilities	1,353	(15)
Movement in the fair value of all other financial assets, net of derivative liabilities	(5,825)	(1,256)
Other investments
Financial assets
Fair value of all other financial assets, net of derivative liabilities	1,302	8,294
Movement in the fair value of all other financial assets, net of derivative liabilities	44	622
Deposits
Financial assets
Fair value of financial assets that pass the SPPI test	2,615	15,023
Deposits | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	521	452
Cash and cash equivalents
Financial assets
Fair value of financial assets that pass the SPPI test	6,965	15,442
Cash and cash equivalents | Joint ventures and associates accounted for using equity method
Financial assets
Fair value of financial assets that pass the SPPI test	$ 513	$ 504

Analysis of performance by se_3

Analysis of performance by segment - Segment results (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other income and expenditure
Interest payable on core structural borrowings		$ (516)	$ (547)	$ (548)
Adjusted IFRS operating profit based on longer-term investment returns		5,310	4,409	4,378
Short-term fluctuations in investment returns on shareholder-backed business		(3,203)	(791)	(1,994)
Amortisation of acquisition accounting adjustments	[1]	(43)	(61)	(82)
(Loss) on disposal of business and corporate transactions		(142)	(107)	286
Profit before tax attributable to shareholders' returns		1,922	3,450	2,588
Tax credit (charge) attributable to shareholders' returns		31	(569)	(840)
Profit from continuing operations		1,953	2,881	1,748
Profit from discontinued operations		1,319	1,142	1,333
Re-measurement of discontinued operations on demerger		188
Cumulative exchange loss recycled from other comprehensive income		(2,668)
(Loss) profit from discontinued operations		(1,161)	1,142	1,333
Profit for the year		792	4,023	3,081
Attributable to:
Equity holders of the Company from continuing operations		1,944	2,877	1,747
Equity holders of the Company from discontinued operations		(1,161)	1,142	1,333
Non-controlling interests from continuing operations		9	4	1
Profit (loss)		$ 792	$ 4,023	$ 3,081
Basic earnings per share
Based on adjusted IFRS operating profit based on longer-term investment returns, net of tax, from continuing operations	[2]	$ 1.750	$ 1.452	$ 1.346
Based on profit from continuing operations (in USD per share)		0.751	1.117	0.680
Based on (loss) profit for the year from discontinued operations (in USD per share)		$ (0.448)	$ 0.443	$ 0.520
Subordinated debt substituted to M&G plc in 2019
Other income and expenditure
Interest payable on core structural borrowings		$ (179)	$ (128)	$ (90)
Operating segments
Other income and expenditure
Interest payable on core structural borrowings		(20)	(20)	(21)
Adjusted IFRS operating profit based on longer-term investment returns		6,346	5,451	5,412
Short-term fluctuations in investment returns on shareholder-backed business		(3,100)	(818)	(2,020)
Amortisation of acquisition accounting adjustments		(43)	(61)	(82)
(Loss) on disposal of business and corporate transactions		265	(66)	286
Profit before tax attributable to shareholders' returns		3,468	4,506	3,596
Tax credit (charge) attributable to shareholders' returns		(123)	(709)	(981)
Profit from continuing operations		3,345	3,797	2,615
Operating segments | Asia
Other income and expenditure
Adjusted IFRS operating profit based on longer-term investment returns		3,276	2,888	2,546
Short-term fluctuations in investment returns on shareholder-backed business		657	(684)	(1)
Amortisation of acquisition accounting adjustments		(5)	(5)	(9)
(Loss) on disposal of business and corporate transactions		265	(15)	78
Profit before tax attributable to shareholders' returns		4,193	2,184	2,614
Tax credit (charge) attributable to shareholders' returns		(468)	(369)	(326)
Profit from continuing operations		3,725	1,815	2,288
Operating segments | Asia | Insurance
Other income and expenditure
Adjusted IFRS operating profit based on longer-term investment returns		2,993	2,646	2,319
Operating segments | Asia | Asset management
Other income and expenditure
Adjusted IFRS operating profit based on longer-term investment returns		283	242	227
Operating segments | US
Other income and expenditure
Interest payable on core structural borrowings		(20)	(20)	(21)
Adjusted IFRS operating profit based on longer-term investment returns		3,070	2,563	2,866
Short-term fluctuations in investment returns on shareholder-backed business		(3,757)	(134)	(2,019)
Amortisation of acquisition accounting adjustments		(38)	(56)	(73)
(Loss) on disposal of business and corporate transactions			(51)	208
Profit before tax attributable to shareholders' returns		(725)	2,322	982
Tax credit (charge) attributable to shareholders' returns		345	(340)	(655)
Profit from continuing operations		(380)	1,982	327
Operating segments | US | Insurance
Other income and expenditure
Short-term fluctuations in investment returns on shareholder-backed business		(3,757)	(134)	(2,019)
Operating segments | US | Asset management
Other income and expenditure
Adjusted IFRS operating profit based on longer-term investment returns		32	11	12
Operating segments | Jackson (US insurance operations) | Insurance
Other income and expenditure
Adjusted IFRS operating profit based on longer-term investment returns		3,038	2,552	2,854
Operating profit reconciling items
Other income and expenditure
Investment return and other income		50	70	14
Interest payable on core structural borrowings	[3]	(516)	(547)	(548)
Corporate expenditure	[4]	(460)	(490)	(465)
Total other income and expenditure		(926)	(967)	(999)
Restructuring costs	[5]	$ (110)	$ (75)	$ (35)
[1]	Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012.
[2]	Tax charges have been reflected as operating and non-operating in the same way as for the pre-tax items. Further details on tax charges are provided in note B4.
[3]	Interest charged to the income statement on debt that was substituted to M&G plc in October 2019 for 2019 was $(179) million (2018: $(128) million; 2017: $ (90) million).
[4]	Corporate expenditure as shown above is primarily for head office functions in London and Hong Kong.
[5]	Restructuring costs include group-wide costs incurred for IFRS 17 implementation in 2019 from continuing operations.

Analysis of performance by se_4

Analysis of performance by segment - Short-term fluctuations in investment returns on shareholder-backed business (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		$ (3,203)	$ (791)	$ (1,994)
US
Analysis of operating segments
Related (credit) charge for amortisation of deferred acquisition costs		(951)	1,062	(77)
Jackson (US insurance operations) | Net equity hedge result
Analysis of operating segments
Other guarantee fees		699	657	622
Operating segments
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		(3,100)	(818)	(2,020)
Operating segments | Asia
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		657	(684)	(1)
Operating segments | US
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		(3,757)	(134)	(2,019)
Operating segments | US | Insurance
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		(3,757)	(134)	(2,019)
Operating segments | US | Insurance | Net equity hedge result
Analysis of operating segments
Fair value movements on equity hedge instruments	[1]	(5,314)	399	(2,411)
Accounting value movements on the variable and fixed index annuity guarantee liabilities		(22)	(1,194)	(128)
Fee assessments net of claim payments		754	717	619
Short-term fluctuations in investment returns on shareholder-backed business		(4,582)	(78)	(1,920)
Operating segments | US | Insurance | Other than equity-related derivatives
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		678	(85)	(46)
Operating segments | US | Insurance | Debt securities
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		156	(42)	(94)
Operating segments | US | Insurance | Equity-type securities such as common and preferred stock and portfolio holdings in mutual funds
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		18	51	15
Operating segments | US | Insurance | Other items
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		(27)	20	26
Operating segments | Jackson (US insurance operations) | Amortisation to the income statement, Non-operating profit
Analysis of operating segments
Related (credit) charge for amortisation of deferred acquisition costs		(1,248)	152	(595)
Operating segments | Jackson (US insurance operations) | Debt securities
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		156	(42)	(93)
Unallocated to a segment (other operations)
Analysis of operating segments
Short-term fluctuations in investment returns on shareholder-backed business		$ (103)	$ 27	$ 26
[1]	Held to manage equity exposures of the variable annuity guarantees and fixed index annuity options as discussed in Explanation of Performance and Other Financial Measures.

Analysis of performance by se_5

Analysis of performance by segment - Short-term fluctuations related to debt securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest-related realised gains (losses):
Total short-term fluctuations related to debt securities	$ (3,203)	$ (791)	$ (1,994)
Operating segments
Interest-related realised gains (losses):
Total short-term fluctuations related to debt securities	(3,100)	(818)	(2,020)
Operating segments | US
Interest-related realised gains (losses):
Total short-term fluctuations related to debt securities	(3,757)	(134)	(2,019)
Operating segments | Jackson (US insurance operations) | Debt securities
(Charges) credits in the period:
Losses on sales of impaired and deteriorating bonds	(28)	(6)	(4)
Bond write-downs	(15)	(5)	(3)
Recoveries	1	25	13
Total (charges) credits in the year	(42)	14	6
Risk margin allowance deducted from adjusted IFRS operating profit based on longer-term investment returns	109	104	112
Total credits (charge) in the year, net of risk margin allowance	67	118	118
Interest-related realised gains (losses):
Gains (losses) arising in the year	220	(12)	(55)
Less: Amortisation of gains and losses arising in current and prior years to adjusted IFRS operating profit based on longer-term investment returns	(129)	(155)	(180)
Total interest-related realised (losses) gains	91	(167)	(235)
Related amortisation of deferred acquisition costs	(2)	7	24
Total short-term fluctuations related to debt securities	$ 156	$ (42)	$ (93)

Analysis of performance by se_6

Analysis of performance by segment - Risk margin reserve (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Risk margin reserve
Debt securities	$ 134,570	[1],[2]	$ 113,860
Jackson (US insurance operations) | Debt securities
Risk margin reserve
RMR (as a percent)	0.17%		0.18%	0.21%
Annual expected loss	$ (109)		$ (104)	$ (112)
Pre-tax net unrealised gains/(losses) on debt securities classified as available-for-sale	3,392		(1,831)	697
Jackson (US insurance operations) | Debt securities | Cost/Gross amount | Average
Risk margin reserve
Debt securities	62,568		57,138	55,290
Related amortisation of deferred acquisition costs	19		22	21
Risk margin reserve charge to adjusted IFRS operating profit based on longer-term investment returns for longer-term credit-related losses	$ (90)		$ (82)	$ (91)
Jackson (US insurance operations) | Debt securities | A3 or higher
Risk margin reserve
RMR (as a percent)	0.10%		0.10%	0.12%
Annual expected loss	$ (38)		$ (31)	$ (33)
Jackson (US insurance operations) | Debt securities | A3 or higher | Cost/Gross amount | Average
Risk margin reserve
Debt securities	$ 38,811		$ 29,982	$ 27,277
Jackson (US insurance operations) | Debt securities | Baa1, 2 or 3
Risk margin reserve
RMR (as a percent)	0.24%		0.21%	0.22%
Annual expected loss	$ (53)		$ (55)	$ (58)
Jackson (US insurance operations) | Debt securities | Baa1, 2 or 3 | Cost/Gross amount | Average
Risk margin reserve
Debt securities	$ 22,365		$ 25,814	$ 26,626
Jackson (US insurance operations) | Debt securities | Ba1, 2 or 3
Risk margin reserve
RMR (as a percent)	0.85%		0.98%	1.03%
Annual expected loss	$ (9)		$ (10)	$ (11)
Jackson (US insurance operations) | Debt securities | Ba1, 2 or 3 | Cost/Gross amount | Average
Risk margin reserve
Debt securities	$ 1,094		$ 1,042	$ 1,046
Jackson (US insurance operations) | Debt securities | B1, 2 or 3
Risk margin reserve
RMR (as a percent)	2.56%		2.64%	2.70%
Annual expected loss	$ (6)		$ (8)	$ (9)
Jackson (US insurance operations) | Debt securities | B1, 2 or 3 | Cost/Gross amount | Average
Risk margin reserve
Debt securities	$ 223		$ 289	$ 318
Jackson (US insurance operations) | Debt securities | Below B3
Risk margin reserve
RMR (as a percent)	3.39%		3.69%	3.78%
Annual expected loss	$ (3)			$ (1)
Jackson (US insurance operations) | Debt securities | Below B3 | Cost/Gross amount | Average
Risk margin reserve
Debt securities	$ 75		$ 11	$ 23
[1]	Included within equity securities and holdings in collective investment schemes, debt securities and other investments are $90 million of lent securities as at 31 December 2019 (31 December 2018: $10,543 million, of which $107 million were from continuing operations).
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Analysis of performance by se_7

Analysis of performance by segment - Performance measure (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis of operating segments
Unamortised interest-related realised gains and losses related to previously sold bonds	$ 916	$ 776	$ 924
Equity-type securities
Financial investments	404,096
Asia insurance operations | Non-linked shareholder-backed | Equity-type securities
Equity-type securities
Financial investments	$ 3,473	$ 2,733	$ 2,380
Asia insurance operations | Non-linked shareholder-backed | Equity-type securities | Minimum
Equity-type securities
Longer-term rates of return (as a percent)		5.30%	4.30%
Asia insurance operations | Non-linked shareholder-backed | Equity-type securities | Maximum
Equity-type securities
Longer-term rates of return (as a percent)		17.60%	17.20%
Jackson (US insurance operations) | Non-linked shareholder-backed | Equity-type securities such as common and preferred stock and portfolio holdings in mutual funds | Minimum
Equity-type securities
Longer-term rates of return (as a percent)	5.50%	6.70%	6.10%
Jackson (US insurance operations) | Non-linked shareholder-backed | Equity-type securities such as common and preferred stock and portfolio holdings in mutual funds | Maximum
Equity-type securities
Longer-term rates of return (as a percent)	6.70%	7.20%	6.50%
Jackson (US insurance operations) | Non-linked shareholder-backed | Other equity-type securities such as investments in limited partnerships and private equity funds | Minimum
Equity-type securities
Longer-term rates of return (as a percent)	7.50%	8.70%	8.10%
Jackson (US insurance operations) | Non-linked shareholder-backed | Other equity-type securities such as investments in limited partnerships and private equity funds | Maximum
Equity-type securities
Longer-term rates of return (as a percent)	8.70%	9.20%	8.50%
Operations within segments | Asia insurance operations
Equity-type securities
Financial investments	$ 131,191
Operations within segments | Asia insurance operations | Non-linked shareholder-backed | Equity-type securities | Minimum
Equity-type securities
Longer-term rates of return (as a percent)	5.00%
Operations within segments | Asia insurance operations | Non-linked shareholder-backed | Equity-type securities | Maximum
Equity-type securities
Longer-term rates of return (as a percent)	17.60%
Operations within segments | Jackson (US insurance operations)
Equity-type securities
Financial investments	$ 271,176
Operations within segments | Jackson (US insurance operations) | Non-linked shareholder-backed | Equity-type securities
Equity-type securities
Financial investments	$ 1,481	$ 1,731	$ 1,280

Analysis of performance by se_8

Analysis of performance by segment - Segmental income statements (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
		Oct. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis of operating segments
Gross premiums earned			$ 45,064	$ 45,614	$ 39,800
Outward reinsurance premiums			(1,583)	(1,183)	(1,304)
Earned premiums, net of reinsurance			43,481	44,431	38,496
Other income			700	531	1,319
Total revenue			44,181	44,962	39,815
Interest income			4,607	4,210	3,975
Other investment return			44,948	(13,327)	31,599
Total revenue, net of reinsurance			93,736	35,845	75,389
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(83,905)	(23,426)	(63,808)
Acquisition costs and other expenditure			(7,283)	(8,527)	(8,649)
Interest payable on core structural borrowings			(516)	(547)	(548)
Gain (loss) on disposal of business and corporate transactions			(142)	(107)	292
Total charges net of reinsurance			(91,846)	(32,607)	(72,713)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)	[1]		2,287	3,557	2,909
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			1,922	3,450	2,588
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit for the year from continuing operations			1,953	2,881	1,748
Tax attributable to shareholders			(31)	569	840
Profit (loss) before tax, attributable to shareholders			1,922	3,450	2,588
Short-term fluctuations in investment returns on shareholder-backed business			3,203	791	1,994
Amortisation of acquisition accounting adjustments	[2]		43	61	82
(Gain) loss on disposal of businesses and corporate transactions			142	107	(286)
Adjusted IFRS operating profit based on longer-term investment returns			5,310	4,409	4,378
Interest income accrued in respect of impaired securities			4	5	4
Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Gross premiums earned			44,966	45,562	39,765
Outward reinsurance premiums			(1,575)	(1,180)	(1,299)
Earned premiums, net of reinsurance			43,391	44,382	38,466
Other income			609	479	1,258
Total revenue			44,000	44,861	39,724
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Income from financial instruments that are not held at fair value through profit or loss			3	7	9
Operating segments after elimination of intra-group amounts, before unallocated | Hong Kong
Analysis of operating segments
Total revenue, net of reinsurance			9,821	10,307	9,369
Operating segments after elimination of intra-group amounts, before unallocated | Singapore
Analysis of operating segments
Total revenue, net of reinsurance			4,401
Operating segments
Analysis of operating segments
Interest income			4,540	4,142	3,889
Other investment return			45,029	(13,411)	31,592
Total revenue, net of reinsurance			93,603	35,715	75,339
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(83,853)	(23,400)	(63,794)
Acquisition costs and other expenditure			(6,559)	(7,935)	(8,132)
Interest payable on core structural borrowings			(20)	(20)	(21)
Gain (loss) on disposal of business and corporate transactions			265	(66)	292
Total charges net of reinsurance			(90,167)	(31,421)	(71,655)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			3,833	4,613	3,917
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			3,468	4,506	3,596
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit for the year from continuing operations			3,345	3,797	2,615
Tax attributable to shareholders			123	709	981
Profit (loss) before tax, attributable to shareholders			3,468	4,506	3,596
Short-term fluctuations in investment returns on shareholder-backed business			3,100	818	2,020
Amortisation of acquisition accounting adjustments			43	61	82
(Gain) loss on disposal of businesses and corporate transactions			(265)	66	(286)
Adjusted IFRS operating profit based on longer-term investment returns			6,346	5,451	5,412
Unallocated to a segment (other operations) - including intra-group eliminations
Analysis of operating segments
Total revenue, net of reinsurance			133	130	50
Elimination of intra-group amounts
Analysis of operating segments
Total revenue			(34)	(123)	(134)
Unallocated to a segment (other operations)
Analysis of operating segments
Gross premiums earned			98	52	35
Outward reinsurance premiums			(8)	(3)	(5)
Earned premiums, net of reinsurance			90	49	30
Other income			91	52	61
Total revenue			181	101	91
Interest income			67	68	86
Other investment return			(81)	84	7
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(52)	(26)	(14)
Acquisition costs and other expenditure			(724)	(592)	(517)
Interest payable on core structural borrowings			(496)	(527)	(527)
Gain (loss) on disposal of business and corporate transactions			(407)	(41)
Total charges net of reinsurance			(1,679)	(1,186)	(1,058)
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			(1,546)	(1,056)	(1,008)
Profit before tax attributable to shareholders' returns			(1,546)	(1,056)	(1,008)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit for the year from continuing operations			(1,392)	(916)	(867)
Tax attributable to shareholders			(154)	(140)	(141)
Profit (loss) before tax, attributable to shareholders			(1,546)	(1,056)	(1,008)
Short-term fluctuations in investment returns on shareholder-backed business			103	(27)	(26)
(Gain) loss on disposal of businesses and corporate transactions			407	41
Adjusted IFRS operating profit based on longer-term investment returns			(1,036)	(1,042)	(1,034)
Asia | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Gross premiums earned			23,757	21,989	20,220
Outward reinsurance premiums			(1,108)	(768)	(845)
Earned premiums, net of reinsurance			22,649	21,221	19,375
Other income			548	412	396
Total revenue			23,197	21,633	19,771
Asia | Operating segments
Analysis of operating segments
Interest income			1,569	1,450	1,201
Other investment return			13,406	(4,326)	10,392
Total revenue, net of reinsurance			38,172	18,813	31,416
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(29,119)	(11,664)	(23,574)
Acquisition costs and other expenditure			(5,157)	(5,162)	(5,224)
Gain (loss) on disposal of business and corporate transactions			265	(15)	84
Total charges net of reinsurance			(34,011)	(16,841)	(28,714)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			4,558	2,291	2,935
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			4,193	2,184	2,614
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit for the year from continuing operations			3,725	1,815	2,288
Tax attributable to shareholders			468	369	326
Profit (loss) before tax, attributable to shareholders			4,193	2,184	2,614
Short-term fluctuations in investment returns on shareholder-backed business			(657)	684	1
Amortisation of acquisition accounting adjustments			5	5	9
(Gain) loss on disposal of businesses and corporate transactions			(265)	15	(78)
Adjusted IFRS operating profit based on longer-term investment returns			3,276	2,888	2,546
Asia | Elimination of intra-group amounts
Analysis of operating segments
Total revenue				(56)	(52)
US | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Gross premiums earned			21,209	23,573	19,545
Outward reinsurance premiums			(467)	(412)	(454)
Earned premiums, net of reinsurance			20,742	23,161	19,091
Other income			61	67	862
Total revenue			20,803	23,228	19,953
US | Operating segments
Analysis of operating segments
Interest income			2,971	2,692	2,688
Other investment return			31,623	(9,085)	21,200
Total revenue, net of reinsurance			55,431	16,902	43,923
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(54,734)	(11,736)	(40,220)
Acquisition costs and other expenditure			(1,402)	(2,773)	(2,908)
Interest payable on core structural borrowings			(20)	(20)	(21)
Gain (loss) on disposal of business and corporate transactions				(51)	208
Total charges net of reinsurance			(56,156)	(14,580)	(42,941)
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			(725)	2,322	982
Profit before tax attributable to shareholders' returns			(725)	2,322	982
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit for the year from continuing operations			(380)	1,982	327
Tax attributable to shareholders			(345)	340	655
Profit (loss) before tax, attributable to shareholders			(725)	2,322	982
Short-term fluctuations in investment returns on shareholder-backed business			3,757	134	2,019
Amortisation of acquisition accounting adjustments			38	56	73
(Gain) loss on disposal of businesses and corporate transactions				51	(208)
Adjusted IFRS operating profit based on longer-term investment returns			3,070	2,563	2,866
US | Elimination of intra-group amounts
Analysis of operating segments
Total revenue			$ (34)	(67)	(82)
Jackson (US insurance operations)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Percentage of reinsurance agreement			100.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Earned premiums, net of reinsurance			$ 20,742
Other income			6
Total revenue			20,748
Jackson (US insurance operations) | Operations within segments
Analysis of operating segments
Gross premiums earned		$ 5,000
Interest income			2,971
Other investment return			31,621
Total revenue, net of reinsurance			55,340
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(54,734)
Increase in benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance		5,500
Acquisition costs and other expenditure			(1,343)
Decrease in acquisition costs and other expenditure		$ (500)
Interest payable on core structural borrowings			(20)
Total charges net of reinsurance			(56,097)
Profit before tax attributable to shareholders' returns			(757)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			(757)
Short-term fluctuations in investment returns on shareholder-backed business			3,757
Amortisation of acquisition accounting adjustments			38
Adjusted IFRS operating profit based on longer-term investment returns			3,038
Percentage of reinsurance agreement		100.00%
Asset management (US) | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Other income			55
Total revenue			55
Asset management (US) | Operations within segments
Analysis of operating segments
Other investment return			2
Total revenue, net of reinsurance			184
Acquisition costs and other expenditure			(152)
Total charges net of reinsurance			(152)
Profit before tax attributable to shareholders' returns			32
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			32
Adjusted IFRS operating profit based on longer-term investment returns			32
Asset management operations | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of operating segments
Other income			$ 453	$ 287	$ 275
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.
[2]	Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012.

Analysis of performance by se_9

Analysis of performance by segment - Other investment return (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis of operating segments
Realised gains on available-for-sale securities, including impairment previously recognised in other comprehensive income	$ 185	$ 15	$ (33)
Realised (losses) on loans	(3)	(1)	(4)
Dividends	1,000	740	884
Other investment (loss) income	(218)	81	41
Other investment return	44,948	(13,327)	31,599
Realized gains and losses on investments recognised in the income statement	(2,000)	2,500	(1,700)
Securities
Analysis of operating segments
Realised and unrealised (losses) gains on investments at fair value through profit or loss	49,809	(14,867)	33,651
Derivatives
Analysis of operating segments
Realised and unrealised (losses) gains on investments at fair value through profit or loss	$ (5,825)	$ 705	$ (2,940)

Analysis of performance by s_10

Analysis of performance by segment - Additional analysis of performance by segment components (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
		Oct. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Additional analysis of performance by segment
Earned premiums, net of reinsurance			$ 43,481	$ 44,431	$ 38,496
Other income			700	531	1,319
Total revenue			44,181	44,962	39,815
Interest income			4,607	4,210	3,975
Other investment return			44,948	(13,327)	31,599
Total revenue, net of reinsurance			93,736	35,845	75,389
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(83,905)	(23,426)	(63,808)
Interest payable on core structural borrowings			(516)	(547)	(548)
Acquisition costs and other expenditure			(7,283)	(8,527)	(8,649)
Gain (loss) on disposal of business and corporate transactions			(142)	(107)	292
Total charges net of reinsurance			(91,846)	(32,607)	(72,713)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)	[1]		2,287	3,557	2,909
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			1,922	3,450	2,588
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			1,922	3,450	2,588
Short-term fluctuations in investment returns on shareholder-backed business			3,203	791	1,994
Amortisation of acquisition accounting adjustments	[2]		43	61	82
(Profit) loss on disposal of businesses and corporate transactions			142	107	(286)
Adjusted IFRS operating profit based on longer-term investment returns			5,310	4,409	4,378
Gross premiums earned			$ 45,064	45,614	39,800
Jackson (US insurance operations)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Percentage of reinsurance agreement			100.00%
Operating segments after elimination of intra-group amounts, before unallocated
Additional analysis of performance by segment
Earned premiums, net of reinsurance			$ 43,391	44,382	38,466
Other income			609	479	1,258
Total revenue			44,000	44,861	39,724
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Gross premiums earned			44,966	45,562	39,765
Operating segments after elimination of intra-group amounts, before unallocated | Asia
Additional analysis of performance by segment
Earned premiums, net of reinsurance			22,649	21,221	19,375
Other income			548	412	396
Total revenue			23,197	21,633	19,771
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Gross premiums earned			23,757	21,989	20,220
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations
Additional analysis of performance by segment
Earned premiums, net of reinsurance			22,649
Other income			143
Total revenue			22,792
Operating segments after elimination of intra-group amounts, before unallocated | Asia asset management
Additional analysis of performance by segment
Other income			405
Total revenue			405
Operating segments after elimination of intra-group amounts, before unallocated | US
Additional analysis of performance by segment
Earned premiums, net of reinsurance			20,742	23,161	19,091
Other income			61	67	862
Total revenue			20,803	23,228	19,953
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Gross premiums earned			21,209	23,573	19,545
Operating segments after elimination of intra-group amounts, before unallocated | Jackson (US insurance operations)
Additional analysis of performance by segment
Earned premiums, net of reinsurance			20,742
Other income			6
Total revenue			20,748
Operating segments after elimination of intra-group amounts, before unallocated | Asset management (US)
Additional analysis of performance by segment
Other income			55
Total revenue			55
Operating segments after elimination of intra-group amounts, before unallocated | Asset management operations
Additional analysis of performance by segment
Other income			453	287	275
Operating segments
Additional analysis of performance by segment
Interest income			4,540	4,142	3,889
Other investment return			45,029	(13,411)	31,592
Total revenue, net of reinsurance			93,603	35,715	75,339
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(83,853)	(23,400)	(63,794)
Interest payable on core structural borrowings			(20)	(20)	(21)
Acquisition costs and other expenditure			(6,559)	(7,935)	(8,132)
Gain (loss) on disposal of business and corporate transactions			265	(66)	292
Total charges net of reinsurance			(90,167)	(31,421)	(71,655)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			3,833	4,613	3,917
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			3,468	4,506	3,596
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			3,468	4,506	3,596
Short-term fluctuations in investment returns on shareholder-backed business			3,100	818	2,020
Amortisation of acquisition accounting adjustments			43	61	82
(Profit) loss on disposal of businesses and corporate transactions			(265)	66	(286)
Adjusted IFRS operating profit based on longer-term investment returns			6,346	5,451	5,412
Operating segments | Asia
Additional analysis of performance by segment
Interest income			1,569	1,450	1,201
Other investment return			13,406	(4,326)	10,392
Total revenue, net of reinsurance			38,172	18,813	31,416
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(29,119)	(11,664)	(23,574)
Acquisition costs and other expenditure			(5,157)	(5,162)	(5,224)
Gain (loss) on disposal of business and corporate transactions			265	(15)	84
Total charges net of reinsurance			(34,011)	(16,841)	(28,714)
Share of profit from joint ventures and associates net of related tax			397	319	233
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			4,558	2,291	2,935
Tax charge attributable to policyholders' returns			(365)	(107)	(321)
Profit before tax attributable to shareholders' returns			4,193	2,184	2,614
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			4,193	2,184	2,614
Short-term fluctuations in investment returns on shareholder-backed business			(657)	684	1
Amortisation of acquisition accounting adjustments			5	5	9
(Profit) loss on disposal of businesses and corporate transactions			(265)	15	(78)
Adjusted IFRS operating profit based on longer-term investment returns			3,276	2,888	2,546
Operating segments | Asia insurance operations
Additional analysis of performance by segment
Share of profit from joint ventures and associates net of related tax			291	238	156
Operating segments | Asia asset management
Additional analysis of performance by segment
Share of profit from joint ventures and associates net of related tax			106	81	77
Operating segments | US
Additional analysis of performance by segment
Interest income			2,971	2,692	2,688
Other investment return			31,623	(9,085)	21,200
Total revenue, net of reinsurance			55,431	16,902	43,923
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(54,734)	(11,736)	(40,220)
Interest payable on core structural borrowings			(20)	(20)	(21)
Acquisition costs and other expenditure			(1,402)	(2,773)	(2,908)
Gain (loss) on disposal of business and corporate transactions				(51)	208
Total charges net of reinsurance			(56,156)	(14,580)	(42,941)
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			(725)	2,322	982
Profit before tax attributable to shareholders' returns			(725)	2,322	982
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			(725)	2,322	982
Short-term fluctuations in investment returns on shareholder-backed business			3,757	134	2,019
Amortisation of acquisition accounting adjustments			38	56	73
(Profit) loss on disposal of businesses and corporate transactions				51	(208)
Adjusted IFRS operating profit based on longer-term investment returns			3,070	2,563	2,866
Operations within segments | Asia insurance operations
Additional analysis of performance by segment
Interest income			1,564
Other investment return			13,407
Total revenue, net of reinsurance			37,763
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(29,119)
Acquisition costs and other expenditure			(4,925)
Gain (loss) on disposal of business and corporate transactions			265
Total charges net of reinsurance			(33,779)
Share of profit from joint ventures and associates net of related tax			291
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			4,275
Tax charge attributable to policyholders' returns			(365)
Profit before tax attributable to shareholders' returns			3,910
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			3,910
Short-term fluctuations in investment returns on shareholder-backed business			(657)
Amortisation of acquisition accounting adjustments			5
(Profit) loss on disposal of businesses and corporate transactions			(265)
Adjusted IFRS operating profit based on longer-term investment returns			2,993
Operations within segments | Asia asset management
Additional analysis of performance by segment
Interest income			5
Other investment return			(1)
Total revenue, net of reinsurance			569
Acquisition costs and other expenditure			(392)
Total charges net of reinsurance			(392)
Share of profit from joint ventures and associates net of related tax			106
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			283
Profit before tax attributable to shareholders' returns			283
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			283
Adjusted IFRS operating profit based on longer-term investment returns			283
Operations within segments | Jackson (US insurance operations)
Additional analysis of performance by segment
Interest income			2,971
Other investment return			31,621
Total revenue, net of reinsurance			55,340
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(54,734)
Interest payable on core structural borrowings			(20)
Acquisition costs and other expenditure			(1,343)
Total charges net of reinsurance			(56,097)
Profit before tax attributable to shareholders' returns			(757)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			(757)
Short-term fluctuations in investment returns on shareholder-backed business			3,757
Amortisation of acquisition accounting adjustments			38
Adjusted IFRS operating profit based on longer-term investment returns			3,038
Revenue after deducting commissions		$ 500
Percentage of reinsurance agreement		100.00%
Gross premiums earned		$ 5,000
Changes to policyholder liabilities		5,500
Operations within segments | Asset management (US)
Additional analysis of performance by segment
Other investment return			2
Total revenue, net of reinsurance			184
Acquisition costs and other expenditure			(152)
Total charges net of reinsurance			(152)
Profit before tax attributable to shareholders' returns			32
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			32
Adjusted IFRS operating profit based on longer-term investment returns			32
Operations within segments | UK and Europe asset management
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Gross premiums earned		5,000
Changes to policyholder liabilities		$ 5,500
Elimination of intra-segment amounts | Asia
Additional analysis of performance by segment
Total revenue			160
Total revenue, net of reinsurance			(160)
Acquisition costs and other expenditure			160
Total charges net of reinsurance			160
Elimination of intra-segment amounts | Asia asset management
Additional analysis of performance by segment
Total revenue			(160)
Elimination of intra-segment amounts | US
Additional analysis of performance by segment
Total revenue			93
Total revenue, net of reinsurance			(93)
Acquisition costs and other expenditure			93
Total charges net of reinsurance			93
Elimination of intra-segment amounts | Asset management (US)
Additional analysis of performance by segment
Total revenue			(127)
Elimination of intra-group amounts
Additional analysis of performance by segment
Total revenue			(34)	(123)	(134)
Elimination of intra-group amounts | Asia
Additional analysis of performance by segment
Total revenue				(56)	(52)
Elimination of intra-group amounts | US
Additional analysis of performance by segment
Total revenue			(34)	(67)	(82)
Unallocated to a segment (other operations)
Additional analysis of performance by segment
Earned premiums, net of reinsurance			90	49	30
Other income			91	52	61
Total revenue			181	101	91
Interest income			67	68	86
Other investment return			(81)	84	7
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance			(52)	(26)	(14)
Interest payable on core structural borrowings			(496)	(527)	(527)
Acquisition costs and other expenditure			(724)	(592)	(517)
Gain (loss) on disposal of business and corporate transactions			(407)	(41)
Total charges net of reinsurance			(1,679)	(1,186)	(1,058)
Profit before tax (being tax attributable to shareholders' and policyholders' returns)			(1,546)	(1,056)	(1,008)
Profit before tax attributable to shareholders' returns			(1,546)	(1,056)	(1,008)
Analysis of profit (loss) before tax attributable to shareholders' returns from continuing operations:
Profit (loss) before tax, attributable to shareholders			(1,546)	(1,056)	(1,008)
Short-term fluctuations in investment returns on shareholder-backed business			103	(27)	(26)
(Profit) loss on disposal of businesses and corporate transactions			407	41
Adjusted IFRS operating profit based on longer-term investment returns			(1,036)	(1,042)	(1,034)
Gross premiums earned			$ 98	$ 52	$ 35
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.
[2]	Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012.

Acquisition costs and other e_3

Acquisition costs and other expenditure - Components (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Acquisition costs and other expenditure from continuing operations
Acquisition costs incurred for insurance policies	$ (4,177)	$ (4,313)	$ (4,471)
Acquisition costs deferred less amortisation of acquisition costs	2,116	59	1,173
Administration costs and other expenditure	(5,019)	(3,877)	(5,008)
Movements in amounts attributable to external unit holders of consolidated investment funds	(203)	(396)	(343)
Total acquisition costs and other expenditure from continuing operations	(7,283)	(8,527)	(8,649)
Upfront fees	182
600m 5.56% and 700m 6.34% Notes
Acquisition costs and other expenditure from continuing operations
Upfront fees	182
Asia
Acquisition costs and other expenditure from continuing operations
Acquisition costs deferred less amortisation of acquisition costs	358	362	246
US
Acquisition costs and other expenditure from continuing operations
Acquisition costs deferred less amortisation of acquisition costs	1,758	(303)	927
Additional costs deferred	807	759	850
DAC amortisation	951	(1,062)	$ 77
Jackson (US insurance operations)
Acquisition costs and other expenditure from continuing operations
Charge for non-deferred acquisition costs and amortisation of costs that were deferred	$ (20)	(9)
Jackson (US insurance operations) | Fixed annuity, GIC and other business
Acquisition costs and other expenditure from continuing operations
Charge for non-deferred acquisition costs and amortisation of costs that were deferred		$ (500)

Acquisition costs and other e_4

Acquisition costs and other expenditure - Interest expense, depreciation and amortisation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Acquisition costs and other expenditure from continuing operations
Other interest expense	$ (306)	$ (250)	$ (200)
Depreciation and amortisation	212	(1,608)	(435)
Operating segments
Acquisition costs and other expenditure from continuing operations
Other interest expense	(279)	(212)	(150)
Depreciation and amortisation	242	(1,605)	(432)
Operations within segments | Asia insurance operations
Acquisition costs and other expenditure from continuing operations
Other interest expense	(13)
Depreciation and amortisation	(641)	(482)	(446)
Operations within segments | Asia asset management
Acquisition costs and other expenditure from continuing operations
Depreciation and amortisation	(14)	(5)	(4)
Operations within segments | Jackson (US insurance operations)
Acquisition costs and other expenditure from continuing operations
Other interest expense	(264)	(212)	(150)
Depreciation and amortisation	901	(1,110)	26
Operations within segments | Asset management (US)
Acquisition costs and other expenditure from continuing operations
Other interest expense	(2)
Depreciation and amortisation	(4)	(8)	(8)
Unallocated to a segment (other operations)
Acquisition costs and other expenditure from continuing operations
Other interest expense	(27)	(38)	(50)
Depreciation and amortisation	(30)	$ (3)	$ (3)
Other interest expense
Acquisition costs and other expenditure from continuing operations
Interest expense on lease liabilities	20
Depreciation and amortisation
Acquisition costs and other expenditure from continuing operations
Depreciation, right-of-use assets	$ 141

Acquisition costs and other e_5

Acquisition costs and other expenditure - Staff and employment costs (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)employee	Dec. 31, 2018USD ($)employee	Dec. 31, 2017USD ($)employee
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	19,004	21,759	20,701
Costs of employment
Wages and salaries	$ 1,435	$ 1,517	$ 1,557
Social security costs	53	71	73
Defined benefit schemes	(91)	7	(23)
Defined contribution schemes	69	77	67
Total costs of employment	$ 1,466	$ 1,672	$ 1,674
UK & Europe Discontinued Operations (M&G Prudential)
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	5,672	6,447	6,450
Costs of employment
Wages and salaries	$ 573	$ 694	$ 730
Social security costs	68	84	93
Defined benefit schemes	(5)	(46)	19
Defined contribution schemes	41	50	43
Total costs of employment	$ 677	$ 782	$ 885
Continuing and discontinued operations
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	24,676	28,206	27,151
Costs of employment
Wages and salaries	$ 2,008	$ 2,211	$ 2,287
Social security costs	121	155	166
Defined benefit schemes	(96)	(39)	(4)
Defined contribution schemes	110	127	110
Total costs of employment	$ 2,143	$ 2,454	$ 2,559
Unallocated to a segment (other operations)
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	519	676	660
Asia
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	14,471	16,798	15,477
US
Acquisition costs and other expenditure from continuing operations
Average number of staff employed by the Group during the year | employee	4,014	4,285	4,564

Acquisition costs and other e_6

Acquisition costs and other expenditure - Share-based payment plans (Details)	12 Months Ended
	Dec. 31, 2019
PCA LTIP
Share-based payment
Vesting period of awards	3 years

Acquisition costs and other e_7

Acquisition costs and other expenditure - Outstanding options and awards (Details) EquityInstruments in Millions	12 Months Ended
	Dec. 31, 2019OptionsEquityInstruments£ / shares	Dec. 31, 2018OptionsEquityInstruments£ / shares	Dec. 31, 2017OptionsEquityInstruments£ / shares
Number of options
Balance at beginning of year	5,000,000	6,000,000
Balance at end of year	4,000,000	5,000,000	6,000,000
Number of awards
Weighted average share price | £ / shares	£ 15.05	£ 17.36	£ 17.51
SAYE options
Number of options
Balance at beginning of year	4,885,804	6,400,000	7,100,000
Granted	600,000	300,000	1,400,000
Modification	300,000
Exercised	(1,700,000)	(1,400,000)	(1,700,000)
Forfeited		(100,000)	(100,000)
Cancelled	(100,000)	(200,000)	(200,000)
Lapsed/Expired	(100,000)	(100,000)	(100,000)
Balance at end of year	3,805,447	4,885,804	6,400,000
Options immediately exercisable at end of year	900,000	800,000	400,000
Weighted average exercise price
Balance at beginning of year | £ / shares	£ 12.10	£ 11.74	£ 10.74
Granted | £ / shares	11.13	13.94	14.55
Modification | £ / shares	11.95
Exercised | £ / shares	10.87	10.85	10.07
Forfeited | £ / shares	12.87	12.25	10.83
Cancelled | £ / shares	12.82	12.43	11.19
Lapsed/Expired | £ / shares	12.93	12.60	10.86
Balance at end of year | £ / shares	12.38	12.10	11.74
Options immediately exercisable at end of year | £ / shares	£ 11.33	£ 10.37	£ 11.06
Incentive plans
Number of options
M&G plc awards derecognised on demerger	(100,000)
Weighted average exercise price
M&G plc awards derecognised on demerger | £ / shares	£ 13.37
Number of awards
Balance at beginning of year | EquityInstruments	32.8	33.6	30.2
Granted | EquityInstruments	13.4	10.7	12.7
Modification | EquityInstruments	4.3
Exercised | EquityInstruments	(9.8)	(8.7)	(7.3)
Forfeited | EquityInstruments	(2.5)	(2.6)	(1.3)
Cancelled | EquityInstruments	(0.7)		(0.1)
Lapsed/Expired | EquityInstruments	(1)	(0.2)	(0.6)
M&G plc awards derecognised on demerger | EquityInstruments	(3.5)
Balance at end of year | EquityInstruments	33	32.8	33.6

Acquisition costs and other e_8

Acquisition costs and other expenditure - Exercise price ranges for options (Details)	12 Months Ended
	Dec. 31, 2019Options£ / shares	Dec. 31, 2018Options£ / shares	Dec. 31, 2017Options£ / shares	Dec. 31, 2016Options£ / shares
Summary of options exercise price range
Outstanding - Number outstanding | Options	4,000,000	5,000,000	6,000,000
SAYE options
Summary of options exercise price range
Outstanding - Number outstanding | Options	3,805,447	4,885,804	6,400,000	7,100,000
Outstanding - Weighted average remaining contractual life (years)	2 years 1 month 6 days	2 years 1 month 6 days	2 years 6 months
Outstanding - Weighted average exercise prices	£ 12.38	£ 12.10	£ 11.74	£ 10.74
Exercisable - Number exercisable | Options	900,000	800,000	400,000
Exercisable - Weighted average exercise prices	£ 11.33	£ 10.37	£ 11.06
SAYE options | Minimum
Summary of options exercise price range
Exercise price	11.04	9.01
SAYE options | Maximum
Summary of options exercise price range
Exercise price	£ 14.55	14.55
SAYE options | Between 6 and 7
Summary of options exercise price range
Outstanding - Number outstanding | Options	0
Outstanding - Weighted average remaining contractual life (years)			4 months 24 days
Outstanding - Weighted average exercise prices			£ 6.29
Exercisable - Number exercisable | Options	0
Exercisable - Weighted average exercise prices	£ 0		6.29
SAYE options | Between 6 and 7 | Minimum
Summary of options exercise price range
Exercise price	6	6	6
SAYE options | Between 6 and 7 | Maximum
Summary of options exercise price range
Exercise price	£ 7	£ 7	£ 7
SAYE options | Between 9 and 10
Summary of options exercise price range
Outstanding - Number outstanding | Options	0	300,000	500,000
Outstanding - Weighted average remaining contractual life (years)		4 months 24 days	1 year 4 months 24 days
Outstanding - Weighted average exercise prices		£ 9.01	£ 9.01
Exercisable - Number exercisable | Options	0	300,000
Exercisable - Weighted average exercise prices	£ 0	£ 9.01
SAYE options | Between 9 and 10 | Minimum
Summary of options exercise price range
Exercise price	9	9	9
SAYE options | Between 9 and 10 | Maximum
Summary of options exercise price range
Exercise price	£ 10	£ 10	£ 10
SAYE options | Between 11 and 12
Summary of options exercise price range
Outstanding - Number outstanding | Options	2,400,000	3,000,000	4,500,000
Outstanding - Weighted average remaining contractual life (years)	2 years	1 year 7 months 6 days	2 years 2 months 12 days
Outstanding - Weighted average exercise prices	£ 11.19	£ 11.19	£ 11.21
Exercisable - Number exercisable | Options	900,000	500,000	400,000
Exercisable - Weighted average exercise prices	£ 11.33	£ 11.11	£ 11.55
SAYE options | Between 11 and 12 | Minimum
Summary of options exercise price range
Exercise price	11	11	11
SAYE options | Between 11 and 12 | Maximum
Summary of options exercise price range
Exercise price	£ 12	£ 12	12
SAYE options | Between 13 and 14
Summary of options exercise price range
Outstanding - Number outstanding | Options	300,000	300,000
Outstanding - Weighted average remaining contractual life (years)	3 years 2 months 12 days	4 years 1 month 6 days
Outstanding - Weighted average exercise prices	£ 13.94	£ 13.94
Exercisable - Number exercisable | Options	0
Exercisable - Weighted average exercise prices	£ 0
SAYE options | Between 13 and 14 | Minimum
Summary of options exercise price range
Exercise price	13	13	13
SAYE options | Between 13 and 14 | Maximum
Summary of options exercise price range
Exercise price	£ 14	£ 14	£ 14
SAYE options | Between 14 and 15
Summary of options exercise price range
Outstanding - Number outstanding | Options	1,100,000	1,300,000	1,400,000
Outstanding - Weighted average remaining contractual life (years)	2 years	2 years 7 months 6 days	3 years 10 months 24 days
Outstanding - Weighted average exercise prices	£ 14.55	£ 14.55	£ 14.55
Exercisable - Number exercisable | Options	0
Exercisable - Weighted average exercise prices	£ 0
SAYE options | Between 14 and 15 | Minimum
Summary of options exercise price range
Exercise price	14	14	14
SAYE options | Between 14 and 15 | Maximum
Summary of options exercise price range
Exercise price	£ 15	£ 15	£ 15

Acquisition costs and other e_9

Acquisition costs and other expenditure - Fair value of options and awards (Details)	1 Months Ended		12 Months Ended
	Nov. 30, 2019GBP (£)Y£ / shares	Oct. 31, 2019GBP (£)Y£ / shares	Dec. 31, 2019GBP (£)entity£ / shares	Dec. 31, 2018GBP (£)Y£ / shares	Dec. 31, 2017GBP (£)Y£ / shares
Share-based payment
Weighted average fair value at grant date					£ 16.12
Basis for risk-free interest rate - government bond term one			2 years
Basis for risk-free interest rate - government bond term two			3 years
Basis for risk-free interest rate - government bond term three			5 years
Dividend yield period			12 months
Estimated dividend yields			£ 750,000,000
Volatility assumption - number of competitors in basket | entity			12
Volatility assumption - average volatility for basket of competitors (as a percent)			23.10%	21.32%	22.93%
Volatility assumption - period of correlations for basket of competitors			3 years
Prudential LTIP (TSR)
Share-based payment
Expected volatility (as a percent)			22.14%	24.03%	23.17%
Risk-free interest rate (as a percent)			0.97%	1.19%	0.62%
Weighted average share price at grant date | £ / shares			£ 16.07	£ 17.46	£ 16.80
Weighted average fair value at grant date				£ 6.64	£ 8.30
Weighted-average fair value at grant date			£ 6.32
SAYE options
Share-based payment
Dividend yield (as a percent)	2.10%	3.66%		2.52%	2.85%
Expected volatility (as a percent)	23.92%	25.58%		21.09%	20.15%
Risk-free interest rate (as a percent)	1.60%	0.31%		0.97%	0.56%
Expected option life | Y	3.47	3.96		3.94	3.49
Weighted average exercise price | £ / shares	£ 11.18	£ 11.12		£ 13.94	£ 14.55
Weighted average share price at grant date | £ / shares	£ 13.77	£ 13.94		£ 16.64	£ 17.74
Weighted average fair value at grant date		£ 2.90
Weighted-average fair value at grant date	£ 3.35			£ 3.29	£ 3.29
Other awards
Share-based payment
Weighted-average fair value at grant date				£ 15.39	£ 17.04

Acquisition costs and other _10

Acquisition costs and other expenditure - Share-based payment expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based payment expense charged to the income statement
Share-based compensation expense	$ 181	$ 191
Liabilities relating to awards which are settled in cash	$ 0

Acquisition costs and other _11

Acquisition costs and other expenditure - Key management remuneration (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Key management remuneration
Salaries and short-term benefits	$ 25.2	$ 22	$ 23
Post-employment benefits	1.5	2	2
Share-based payments	13.1	19	18
Total key management remuneration	39.8	43	43
Share-based payments in accordance with IFRS 2	8.4	13	10.7
Deferred share awards	$ 4.8	$ 6.4	$ 7.5

Acquisition costs and other _12

Acquisition costs and other expenditure - Fees payable to the auditor (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fees payable to the Company's auditor and its associates for other services:
Total fees paid to the auditor	$ 27	$ 16.1	$ 14.6
Non-audit services associated with demerger	11.7	1
Non-audit other assurance services associated with demerger	4.4
Non-audit corporate finance transactions services associated with demerger	7.3
Other audit and non-audit services	15.3	15.1	14.6
Pension schemes audit services	0.1	0.3	0.1
UK & Europe Discontinued Operations (M&G Prudential)
Fees payable to the Company's auditor and its associates for other services:
Total fees paid to the auditor	3.4	8.3	7.6
Continuing and discontinued operations
Fees payable to the auditor
Fees payable to the Company's auditor for the audit of the Company's annual accounts	2.2	2.8	2.7
Fees payable to the Company's auditor and its associates for other services:
Audit of subsidiaries pursuant to legislation	9.5	12.3	10.7
Audit-related assurance services	5.7	6.3	5.5
Other assurance services	5.7	1.5	1.9
Services relating to corporate finance transactions	7.3	0.3	0.5
All other services		1.2	0.9
Total fees paid to the auditor	30.4	$ 24.4	$ 22.2
Audit-related assurance service fees, required by law	$ 1.1

Effect of changes and other a_2

Effect of changes and other accounting matters on insurance assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Asia insurance operations
Effect of changes and other accounting matters
Non-recurring items included in operating profit based on longer-term investment returns	$ 142	$ 126	$ 96

Tax charge from continuing op_3

Tax charge from continuing operations - Total tax charge by nature of expense from continuing operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax charge attributable to shareholders:
Current tax attributable to shareholders	$ (431)
Deferred tax attributable to shareholders	462
Tax (charge) credit attributable to shareholders' returns	31	$ (569)	$ (840)
Tax charge attributable to policyholders:
Total tax (charge) credit	(365)	(107)	(321)
Total current tax charge	(561)	(365)	(117)
Total deferred tax credit (charge)	227	(311)	(1,044)
Total tax (charge) credit	(334)	(676)	(1,161)
Loss before tax attributable to policyholders	365
Operating segments
Tax charge attributable to shareholders:
Tax (charge) credit attributable to shareholders' returns	(123)	(709)	(981)
Tax charge attributable to policyholders:
Total tax (charge) credit	(365)	(107)	(321)
Operating segments | Asia
Tax charge attributable to shareholders:
Current tax attributable to shareholders	(306)
Deferred tax attributable to shareholders	(162)
Tax (charge) credit attributable to shareholders' returns	(468)	(369)	(326)
Tax charge attributable to policyholders:
Current tax to attributable policyholders	(130)
Deferred tax attributable to policyholders	(235)
Total tax (charge) credit	(365)	(107)	(321)
Operating segments | US
Tax charge attributable to shareholders:
Current tax attributable to shareholders	(307)
Deferred tax attributable to shareholders	652
Tax (charge) credit attributable to shareholders' returns	345	(340)	(655)
Unallocated to a segment (other operations)
Tax charge attributable to shareholders:
Current tax attributable to shareholders	182
Deferred tax attributable to shareholders	(28)
Tax (charge) credit attributable to shareholders' returns	$ 154	$ 140	$ 141

Tax charge from continuing op_4

Tax charge from continuing operations - Components (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current tax expense:
Corporation tax	$ (589)	$ (380)	$ (165)
Adjustments in respect of prior years	28	15	48
Total current tax charge	(561)	(365)	(117)
Deferred tax arising from:
Origination and reversal of temporary differences	235	(331)	(470)
Impact of changes in local statutory tax rates	7	11	(574)
Credit in respect of a previously unrecognised tax loss, tax credit or temporary difference from a prior period	(15)	9
Total deferred tax credit (charge)	227	(311)	(1,044)
Total tax (charge) credit	$ (334)	(676)	(1,161)
Deferred tax credit (charge) deductible period	3 years
Tax taken through other comprehensive income	$ 709	$ 387	$ 85

Tax charge from continuing op_5

Tax charge from continuing operations - Reconciliation of shareholder effective tax rate for continuing operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of effective tax rate
Adjusted IFRS operating profit based on longer-term investment returns	$ 5,310	$ 4,409	$ 4,378
Non-operating profit (loss)	(3,388)	(959)	(1,790)
Profit (loss) before tax, attributable to shareholders	$ 1,922	$ 3,450	$ 2,588
Expected tax rate, attributable to shareholders (as a percent)	20.00%	22.00%	27.00%
Tax at the expected rate, attributable to shareholders	$ 393	$ 759	$ 701
Tax at the expected rate, attributable to shareholders, percentage impact on ETR	20.40%	22.00%	27.10%
Effects of recurring tax reconciliation items and percentage impact on ETR:
Income not taxable or taxable at concessionary rates	$ (126)	$ (71)	$ (115)
Income not taxable or taxable at concessionary rates, percentage impact on ETR	(6.60%)	(2.10%)	(4.40%)
Deductions not allowable for tax purposes	$ 55	$ 69	$ 54
Deductions not allowable for tax purposes, percentage impact on ETR	2.90%	2.00%	2.10%
Items related to taxation of life insurance businesses	$ (317)	$ (128)	$ (425)
Items related to taxation of life insurance businesses, percentage impact on ETR	(16.50%)	(3.70%)	(16.40%)
Deferred tax adjustments	$ (33)	$ (55)	$ 29
Deferred tax adjustments, percentage impact on ETR	(1.70%)	(1.60%)	1.10%
Unrecognised tax losses	$ 46
Unrecognised tax losses, percentage impact on ETR	2.40%
Effect of results of joint ventures and associates	$ (100)	$ (83)	$ (67)
Effect of results of joint ventures and associates, percentage impact on ETR	(5.20%)	(2.40%)	(2.60%)
Irrecoverable withholding taxes	$ 59	$ 63	$ 70
Irrecoverable withholding taxes, percentage impact on ETR	3.10%	1.80%	2.70%
Other	$ 13	$ 9	$ (15)
Other, percentage impact on ETR	0.70%	0.30%	(0.60%)
Total effects of recurring tax reconciliation items	$ (403)	$ (196)	$ (469)
Total tax rate, Effects of recurring tax reconciliation items	(20.90%)	(5.70%)	(18.10%)
Effects of non-recurring tax reconciliation items:
Adjustments to tax charge in relation to prior years	$ (67)	$ (4)	$ (27)
Adjustments to tax charge in relation to prior years, percentage impact on ETR	(3.50%)	(0.10%)	(1.00%)
Movements in provisions for open tax matters	$ (1)	$ 10	$ 57
Movements in provisions for open tax matters, percentage impact on ETR	0.00%	0.30%	2.20%
Demerger related activities	$ 76
Demerger related activities, percentage impact on ETR	4.10%
Impact of US tax reform			$ 573
Impact of US tax reform, percentage impact on ETR			22.10%
Adjustments in relation to business disposals	$ (29)		$ 5
Adjustments in relation to business disposals	(1.40%)		0.20%
Total effects of non-recurring tax reconciliation items	$ (21)	$ 6	$ 608
Total tax rate, Effects of non-recurring tax reconciliation items	(1.10%)	0.20%	23.50%
Total actual tax charge (credit), attributable to shareholders	$ (31)	$ 569	$ 840
Total actual tax charge	(2.00%)	16.00%	32.00%
Total actual tax charge (credit), attributable to shareholders, percentage impact on ETR	(1.60%)	16.50%	32.50%
Tax charge (credit) on:
Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns	$ 773	$ 666	$ 922
Tax on non-operating profit	$ (804)	$ (97)	$ (82)
Actual tax rate on:
Adjusted IFRS operating profit (loss) based on longer-term investment returns, including non-recurring tax reconciling items (as a percent)	15.00%	15.00%	21.00%
Operating profit based on longer-term investment returns, excluding non-recurring tax reconciling items (as a percent)	15.00%	15.00%	20.00%
Profit before tax	(2.00%)	16.00%	32.00%
Hong Kong
Actual tax rate on:
Percentage of net insurance premium used to calculate income tax charge	5.00%
Operating segments
Reconciliation of effective tax rate
Adjusted IFRS operating profit based on longer-term investment returns	$ 6,346	$ 5,451	$ 5,412
Profit (loss) before tax, attributable to shareholders	3,468	4,506	3,596
Effects of non-recurring tax reconciliation items:
Total actual tax charge (credit), attributable to shareholders	123	709	981
Unallocated to a segment (other operations)
Reconciliation of effective tax rate
Adjusted IFRS operating profit based on longer-term investment returns	(1,036)	(1,042)	(1,034)
Non-operating profit (loss)	(510)
Profit (loss) before tax, attributable to shareholders	$ (1,546)	(1,056)	(1,008)
Expected tax rate, attributable to shareholders (as a percent)	19.00%
Tax at the expected rate, attributable to shareholders	$ (294)
Effects of recurring tax reconciliation items and percentage impact on ETR:
Income not taxable or taxable at concessionary rates	(3)
Deductions not allowable for tax purposes	5
Deferred tax adjustments	(4)
Unrecognised tax losses	46
Irrecoverable withholding taxes	59
Other	3
Total effects of recurring tax reconciliation items	106
Effects of non-recurring tax reconciliation items:
Adjustments to tax charge in relation to prior years	(18)
Movements in provisions for open tax matters	(18)
Demerger related activities	76
Adjustments in relation to business disposals	(6)
Total effects of non-recurring tax reconciliation items	34
Total actual tax charge (credit), attributable to shareholders	$ (154)	$ (140)	$ (141)
Total actual tax charge	10.00%	13.00%	14.00%
Tax charge (credit) on:
Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns	$ (100)
Tax on non-operating profit	$ (54)
Actual tax rate on:
Adjusted IFRS operating profit (loss) based on longer-term investment returns, including non-recurring tax reconciling items (as a percent)	10.00%	14.00%	13.00%
Operating profit based on longer-term investment returns, excluding non-recurring tax reconciling items (as a percent)	10.00%
Profit before tax	10.00%	13.00%	14.00%
Asia | Operating segments
Reconciliation of effective tax rate
Adjusted IFRS operating profit based on longer-term investment returns	$ 3,276	$ 2,888	$ 2,546
Non-operating profit (loss)	917
Profit (loss) before tax, attributable to shareholders	$ 4,193	2,184	2,614
Expected tax rate, attributable to shareholders (as a percent)	20.00%
Tax at the expected rate, attributable to shareholders	$ 839
Effects of recurring tax reconciliation items and percentage impact on ETR:
Income not taxable or taxable at concessionary rates	(94)
Deductions not allowable for tax purposes	40
Items related to taxation of life insurance businesses	(192)
Deferred tax adjustments	(28)
Effect of results of joint ventures and associates	(100)
Other	5
Total effects of recurring tax reconciliation items	(369)
Effects of non-recurring tax reconciliation items:
Adjustments to tax charge in relation to prior years	4
Movements in provisions for open tax matters	17
Adjustments in relation to business disposals	(23)
Total effects of non-recurring tax reconciliation items	(2)
Total actual tax charge (credit), attributable to shareholders	$ 468	$ 369	$ 326
Total actual tax charge	11.00%	17.00%	12.00%
Tax charge (credit) on:
Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns	$ 436
Tax on non-operating profit	$ 32
Actual tax rate on:
Adjusted IFRS operating profit (loss) based on longer-term investment returns, including non-recurring tax reconciling items (as a percent)	13.00%	14.00%	14.00%
Operating profit based on longer-term investment returns, excluding non-recurring tax reconciling items (as a percent)	13.00%
Profit before tax	11.00%	17.00%	12.00%
US | Operating segments
Reconciliation of effective tax rate
Adjusted IFRS operating profit based on longer-term investment returns	$ 3,070	$ 2,563	$ 2,866
Non-operating profit (loss)	(3,795)
Profit (loss) before tax, attributable to shareholders	$ (725)	2,322	982
Expected tax rate, attributable to shareholders (as a percent)	21.00%
Tax at the expected rate, attributable to shareholders	$ (152)
Effects of recurring tax reconciliation items and percentage impact on ETR:
Income not taxable or taxable at concessionary rates	(29)
Deductions not allowable for tax purposes	10
Items related to taxation of life insurance businesses	(125)
Deferred tax adjustments	(1)
Other	5
Total effects of recurring tax reconciliation items	(140)
Effects of non-recurring tax reconciliation items:
Adjustments to tax charge in relation to prior years	(53)
Total effects of non-recurring tax reconciliation items	(53)
Total actual tax charge (credit), attributable to shareholders	$ (345)	$ 340	$ 655
Total actual tax charge	48.00%	15.00%	67.00%
Tax charge (credit) on:
Tax on adjusted IFRS operating profit (loss) based on longer-term investment returns	$ 437
Tax on non-operating profit	$ (782)
Actual tax rate on:
Adjusted IFRS operating profit (loss) based on longer-term investment returns, including non-recurring tax reconciling items (as a percent)	14.00%	16.00%	25.00%
Operating profit based on longer-term investment returns, excluding non-recurring tax reconciling items (as a percent)	16.00%
Profit before tax	48.00%	15.00%	67.00%
Notes
Impact of dividend received	$ 125	$ 111	$ (307)

Tax charge from continuing op_6

Tax charge from continuing operations - Provision for open tax matters (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Movements in provisions for open tax matters
Provision for open tax matters at beginning of period	$ 190
Movements in the current period included in tax charge attributable to shareholders	(1)
Other movements	9
Provision for open tax matters at end of period	$ 198

Tax charge from continuing op_7

Tax charge from continuing operations - 2018 and 2017 actual tax rate of relevant business operations (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of income taxes [Line Items]
Adjusted IFRS operating profit based on longer-term investment returns	15.00%	15.00%	21.00%
Profit before tax	(2.00%)	16.00%	32.00%
Unallocated to a segment (other operations)
Disclosure of income taxes [Line Items]
Adjusted IFRS operating profit based on longer-term investment returns	10.00%	14.00%	13.00%
Profit before tax	10.00%	13.00%	14.00%
Asia | Operating segments
Disclosure of income taxes [Line Items]
Adjusted IFRS operating profit based on longer-term investment returns	13.00%	14.00%	14.00%
Profit before tax	11.00%	17.00%	12.00%
US | Operating segments
Disclosure of income taxes [Line Items]
Adjusted IFRS operating profit based on longer-term investment returns	14.00%	16.00%	25.00%
Profit before tax	48.00%	15.00%	67.00%

Earnings per share - Calculatio

Earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Before tax
Profit for the year from continuing operations		$ 1,922	$ 3,450	$ 2,588
Short-term fluctuations in investment returns on shareholder-backed business		3,203	791	1,994
Amortisation of acquisition accounting adjustments	[1]	43	61	82
Cumulative exchange gain on sold business recycled from other comprehensive income				(78)
Gain (loss) on disposal of businesses and corporate transactions		142	107	(208)
Adjusted IFRS operating profit based on longer-term investment returns		5,310	4,409	4,378
Tax
Profit for the year from continuing operations		31	(569)	(840)
Short-term fluctuations in investment returns on shareholder-backed business		(772)	(70)	(736)
Amortisation of acquisition accounting adjustments		(8)	(11)	(26)
Gain (loss) on disposal of businesses and corporate transactions		(24)	(16)	106
Impact of US tax reform				574
Adjusted IFRS operating profit based on longer-term investment returns from continuing operations		(773)	(666)	(922)
Non-controlling interests
Profit for the year		(9)	(4)	(1)
Adjusted IFRS operating profit based on longer-term investment returns from continuing operations		(9)	(4)	(1)
Net of tax and non-controlling interests
Profit for the year		783	4,019	3,080
Income from discontinued operations attributable to owners of parent		(1,161)	1,142	1,333
Income from continuing operations attributable to owners of parent		1,944	2,877	1,747
Short-term fluctuations in investment returns on shareholder-backed business		2,431	721	1,258
Amortisation of acquisition accounting adjustments		35	50	56
Cumulative exchange gain on sold business recycled from other comprehensive income				(78)
Gain (loss) on disposal of businesses and corporate transactions		118	91	(102)
Impact of US Tax Reform				574
Based on adjusted IFRS operating profit based on longer-term investment returns		$ 4,528	$ 3,739	$ 3,455
Basic
Based on profit (loss) for the year (in USD per share)		$ 0.303	$ 1.560	$ 1.200
Based on (loss) profit for the year from discontinued operations (in USD per share)		(0.448)	0.443	0.520
Based on profit from continuing operations (in USD per share)		0.751	1.117	0.680
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share)		0.940	0.280	0.490
Amortisation of acquisition accounting adjustments (in USD per share)		0.013	0.019	0.022
Cumulative exchange gain on sold business recycled from other comprehensive income (in USD per share)				(0.030)
Gain (loss) on disposal of businesses and corporate transactions (in USD per share)		0.046	0.036	(0.040)
Impact of US Tax Reform (in USD per share)				0.224
Adjusted IFRS operating profit based on longer-term investment returns from continuing operations (in USD per share)		1.750	1.452	1.346
Diluted
Based on profit (loss) for the year (in USD per share)		0.303	1.560	1.199
Based on (loss) profit from discontinued operations (in USD per share)		(0.448)	0.443	0.520
Based on profit from continuing operations (in USD per share)		0.751	1.117	0.679
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share)		0.940	0.280	0.490
Amortisation of acquisition accounting adjustments (in USD per share)		0.013	0.019	0.022
Cumulative exchange gain on sold business recycled from other comprehensive income (in USD per share)				(0.030)
Gain (loss) on disposal of businesses and corporate transactions (in USD per share)		0.046	0.035	(0.040)
Impact of US Tax Reform (in USD per share)				0.224
Adjusted IFRS operating profit based on longer-term investment returns from continuing operations (in USD per share)		$ 1.750	$ 1.451	$ 1.345
[1]	Amortisation of acquisition accounting adjustments principally relate to the REALIC business of Jackson which was acquired in 2012.

Earnings per share - Weighted a

Earnings per share - Weighted average shares (Details) shares in Millions, Options in Millions	12 Months Ended
	Dec. 31, 2019Optionsshares	Dec. 31, 2018Optionsshares	Dec. 31, 2017Optionsshares
Weighted average number of shares for calculating earnings per share
Basic earnings per share	2,587	2,575	2,567
Shares under option at end of year | Options	4	5	6
Shares that would have been issued at fair value on assumed option price	(4)	(4)	(5)
Diluted earnings per share	2,587	2,576	2,568

Dividends (Details)

Dividends (Details) $ / shares in Units, £ in Millions, $ in Millions	Oct. 21, 2019USD ($)	Dec. 31, 2019GBP (£)	Dec. 31, 2019USD ($)$ / shares	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares
Dividends relating to reporting year:
First interim ordinary dividend (in USD per share) | $ / shares			$ 0.2029	$ 0.2055	$ 0.1950
Second interim ordinary dividend (in USD per share) | $ / shares			0.2597	0.4289	0.4379
Total (in USD per share) | $ / shares			$ 0.4626	$ 0.6344	$ 0.6329
First interim ordinary dividend | $			$ 528	$ 530	$ 501
Second interim ordinary dividend | $			675	1,108	1,132
Total | $	$ 7,379		$ 1,203	$ 1,638	$ 1,633
Dividends paid in reporting year:
First interim ordinary dividend (in USD per share) | $ / shares			$ 0.2029	$ 0.2055	$ 0.1950
Second interim ordinary dividend for prior year (in USD per share) | $ / shares			0.4289	0.4379	0.3982
Total (in USD per share) | $ / shares			$ 0.6318	$ 0.6434	$ 0.5932
Current year first interim ordinary dividend | $			$ 526	$ 530	$ 501
Second interim ordinary dividend for prior year | $			1,108	1,132	1,024
Total | $			1,634	$ 1,662	$ 1,525
Dividend base under the new progressive dividend policy		£ 750	$ 958
Dividend base under the new progressive dividend policy per share | $ / shares			$ 36.84
Second interim ordinary dividend from discontinued operations | $			$ 245

Analysis of Group statement o_3

Analysis of Group statement of financial position by segment (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Assets
Goodwill	[1]	$ 969
Deferred acquisition costs and other intangible assets	[1]	17,476
Reinsurers' share of insurance contract liabilities		13,856	[1]	$ 12,024
Other assets		9,327
Investment properties	[1]	25
Investment in joint ventures and associates accounted for using the equity method	[1]	1,500
Financial investments		404,096
Cash and cash equivalents		6,965	[1]	9,394		$ 6,604
Total assets	[1]	454,214
Shareholders' equity		19,477	[1]	21,968
Non-controlling interests	[1]	192
Total equity		19,669	[1]	21,991		21,771		$ 18,124
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		385,678
Unallocated surplus of with-profits funds	[1]	4,750
Core structural borrowings of shareholder-financed businesses	[1]	5,594
Operational borrowings	[1],[2]	2,645
Other Liabilities		35,878
Total liabilities	[1]	434,545
Total equity and liabilities	[1]	454,214
Property, plant and equipment		1,065	[1],[2]	482
Property, plant and equipment relating to continuing operations, included in Other assets		1,065		482
Accrued investment income and other debtors, included in Other assets		3,695		8,708
Accrued investment income and other debtors, expected to be settled within one year		3,191		7,834
Total continuing operations
Assets
Goodwill				634
Deferred acquisition costs and other intangible assets				14,936
Reinsurers' share of insurance contract liabilities				12,024
Other assets				12,385
Investment properties				14
Investment in joint ventures and associates accounted for using the equity method				1,262
Financial investments				338,969
Cash and cash equivalents				9,394
Total assets				389,618
Total equity				10,911
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)				329,678
Unallocated surplus of with-profits funds				3,198
Core structural borrowings of shareholder-financed businesses				9,761
Operational borrowings				1,160
Other Liabilities				34,910
Total liabilities				378,707
Total equity and liabilities				389,618
Unallocated to a segment (other operations)
Assets
Goodwill		43
Deferred acquisition costs and other intangible assets		58		55
Reinsurers' share of insurance contract liabilities		4		2
Other assets		3,339		2,829
Investment properties		11
Financial investments		1,407		2,998
Cash and cash equivalents		2,515		2,778
Total assets		7,377		8,662
Shareholders' equity		(318)
Non-controlling interests		37
Total equity		(281)		(4,439)
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		186		50		43
Core structural borrowings of shareholder-financed businesses		5,344		9,511
Operational borrowings		671		640
Other Liabilities		1,457		2,900
Total liabilities		7,658		13,101
Total equity and liabilities		7,377		8,662
Elimination of intra-group amounts
Assets
Other assets		(2,652)
Total assets		(2,652)
Liabilities
Other Liabilities		(2,652)
Total liabilities		(2,652)
Total equity and liabilities		(2,652)
Asia | Operating segments
Assets
Goodwill		926		634
Deferred acquisition costs and other intangible assets		5,154		3,741
Reinsurers' share of insurance contract liabilities		5,458		3,537
Other assets		3,208		4,987
Investment properties		7		6
Investment in joint ventures and associates accounted for using the equity method		1,500		1,262
Financial investments		131,499		103,016
Cash and cash equivalents		2,490		2,789
Total assets		150,242		119,972
Shareholders' equity		10,866
Non-controlling interests		155
Total equity		11,021		8,187
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		115,943		93,248
Unallocated surplus of with-profits funds		4,750		3,198
Operational borrowings		473		102
Other Liabilities		18,055		15,237
Total liabilities		139,221		111,785
Total equity and liabilities		150,242		119,972
US | Operating segments
Assets
Deferred acquisition costs and other intangible assets		12,264		11,140
Reinsurers' share of insurance contract liabilities		8,394		8,485
Other assets		5,432		4,569
Investment properties		7		8
Financial investments		271,190		232,955
Cash and cash equivalents		1,960		3,827
Total assets		299,247		260,984
Shareholders' equity		8,929
Total equity		8,929		7,163
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		269,549		236,380
Core structural borrowings of shareholder-financed businesses		250		250
Operational borrowings		1,501		418
Other Liabilities		19,018		16,773
Total liabilities		290,318		253,821
Total equity and liabilities		299,247		260,984
Effect of IFRS 16
Liabilities
Operational borrowings				541
Right-of-use assets recognised for continuing operations upon adoption of IFRS 16				527
Continuing and discontinued operations
Assets
Goodwill		969		2,365	[1],[3]	2,005	[1],[3]
Deferred acquisition costs and other intangible assets		$ 17,476		15,185	[1],[3]	14,896	[1],[3]
Reinsurers' share of insurance contract liabilities	[1],[3]			14,193		13,086
Other assets				14,595
Investment properties	[1],[3]			22,829		22,317
Investment in joint ventures and associates accounted for using the equity method	[1],[3]			2,207		1,916
Financial investments				547,522
Assets held for sale	[1],[3]			13,472		51
Cash and cash equivalents	[1],[3]			15,442		14,461
Total assets	[1],[3]			647,810		668,203
Shareholders' equity	[1],[3]			21,968		21,762
Non-controlling interests	[1],[3]			23		9
Total equity	[1],[3]			21,991		21,771
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)				521,286
Unallocated surplus of with-profits funds	[1],[3]			20,180		22,931
Core structural borrowings of shareholder-financed businesses	[1],[3]			9,761		8,496
Operational borrowings	[1],[2],[3]			6,289		7,450
Other Liabilities				54,844
Liabilities held for sale	[1],[3]			13,459
Total liabilities	[1],[3]			625,819		646,432
Total equity and liabilities	[1],[3]			647,810		668,203
Property, plant and equipment	[1],[2],[3]			1,795		$ 1,067
Continuing and discontinued operations | Elimination of intra-group amounts
Assets
Reinsurers' share of insurance contract liabilities				(1,412)
Other assets				(6,834)
Total assets				(8,246)
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)				(1,412)
Other Liabilities				(6,834)
Total liabilities				(8,246)
Total equity and liabilities				(8,246)
Continuing and discontinued operations | Effect of IFRS 16
Liabilities
Operational borrowings				955
UK & Europe Discontinued Operations (M&G Prudential)
Assets
Reinsurers' share of insurance contract liabilities				2,169
Liabilities
Property, plant and equipment				1,313
UK & Europe Discontinued Operations (M&G Prudential) | Operating segments
Assets
Goodwill				1,731
Deferred acquisition costs and other intangible assets				249
Reinsurers' share of insurance contract liabilities				3,581
Other assets				9,044
Investment properties				22,815
Investment in joint ventures and associates accounted for using the equity method				945
Financial investments				208,553
Assets held for sale				13,472
Cash and cash equivalents				6,048
Total assets				266,438
Total equity				11,080
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)				193,020
Unallocated surplus of with-profits funds				16,982
Operational borrowings				5,129
Other Liabilities				26,768
Liabilities held for sale				13,459
Total liabilities				255,358
Total equity and liabilities				266,438
UK & Europe Discontinued Operations (M&G Prudential) | Effect of IFRS 16
Liabilities
Operational borrowings				$ 414
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	As at 1 January 2019, the Group applied IFRS 16 ‘Leases’, using the modified retrospective approach. Under this approach, comparative information is not restated. The application of the standard has resulted in the recognition of an additional lease liability and a corresponding ‘right-of-use’ asset of a similar amount as at 1 January 2019. See note A3 and note C13 for further details.
[3]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Analysis of Group statement o_4

Analysis of Group statement of financial position by segment - Accrued investment income and other debtors (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Accrued investment income and other debtors
Interest receivable		$ 1,064		$ 2,221
Other		577		1,280
Total accrued investment income		1,641	[1]	3,501
Other debtors comprises:
Amounts due from Reinsurers		216		277
Other receivables		1,260		4,350
Total other debtors		2,054	[1]	5,207
Total accrued investment income and other debtors		3,695		8,708
Continuing and discontinued operations
Accrued investment income and other debtors
Total accrued investment income	[1],[2]			3,501	$ 3,620
Other debtors comprises:
Total other debtors	[1],[2]			5,207	$ 4,009
Total accrued investment income and other debtors				4,356
UK & Europe Discontinued Operations (M&G Prudential)
Other debtors comprises:
Total accrued investment income and other debtors				4,352
Policyholders
Other debtors comprises:
Amounts due from Policyholders and Intermediaries		574		576
Intermediaries
Other debtors comprises:
Amounts due from Policyholders and Intermediaries		$ 4		$ 4
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Analysis of Group statement o_5

Analysis of Group statement of financial position by segment - Cash and cash equivalents (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents
Cash		$ 2,071
Cash equivalents		4,894		$ 9,394
Total cash and cash equivalents		6,965	[1]	9,394	$ 6,604
Held centrally and available for general use by the Group		2,491
Other funds not available for general use by the Group, including funds held for the benefit of policyholders		$ 4,474
UK & Europe Discontinued Operations (M&G Prudential)
Cash and cash equivalents
Cash equivalents				6,048
Continuing and discontinued operations
Cash and cash equivalents
Cash				7,335
Cash equivalents				8,107
Total cash and cash equivalents	[1],[2]			15,442	$ 14,461
Held centrally and available for general use by the Group				445
Other funds not available for general use by the Group, including funds held for the benefit of policyholders				$ 14,997
US dollars
Cash and cash equivalents
Percentage of cash and cash equivalents held in respective currencies		52.00%		38.00%
Pounds sterling
Cash and cash equivalents
Percentage of cash and cash equivalents held in respective currencies		20.00%		32.00%
Euro
Cash and cash equivalents
Percentage of cash and cash equivalents held in respective currencies		1.00%		15.00%
Other
Cash and cash equivalents
Percentage of cash and cash equivalents held in respective currencies		27.00%		15.00%
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Analysis of Group statement o_6

Analysis of Group statement of financial position by segment - Accruals, deferred income and other liabilities (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Analysis of Accruals and deferred income
Accruals and deferred income		$ 582
Other creditors		6,724
Creditors arising from direct insurance and reinsurance operations		2,831
Interest payable		68
Funds withheld under reinsurance of the REALIC business		3,760
Other liabilities		523
Total accruals, deferred income and other liabilities		14,488	[1]	$ 13,338
Financial investments		404,096
UK & Europe Discontinued Operations (M&G Prudential)
Analysis of Accruals and deferred income
Total accruals, deferred income and other liabilities				6,083
Continuing and discontinued operations
Analysis of Accruals and deferred income
Accruals and deferred income				2,165
Other creditors				9,010
Creditors arising from direct insurance and reinsurance operations				3,010
Interest payable				149
Funds withheld under reinsurance of the REALIC business				3,745
Other liabilities				1,342
Total accruals, deferred income and other liabilities	[1],[2]			19,421	$ 19,190
Financial investments				547,522
Expected to be settled within one year
Analysis of Accruals and deferred income
Financial investments		$ 260,896		$ 304,843
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Analysis of segment statement_3

Analysis of segment statement of financial position by business type (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Goodwill	[1]	$ 969
Deferred acquisition costs and other intangible assets	[1]	17,476
Reinsurers' share of insurance contract liabilities		13,856	[1]	$ 12,024
Other assets		9,327
Investment properties	[1]	25
Investment in joint ventures and associates accounted for using the equity method	[1]	1,500
Financial investments		404,096
Cash and cash equivalents on the consolidated statement of financial position at end of year		6,965	[1]	9,394	$ 6,604
Total assets	[1]	454,214
Total equity		19,669	[1]	21,991	21,771	$ 18,124
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		385,678
Core structural borrowings of shareholder-financed businesses	[1]	5,594
Unallocated surplus of with-profits funds	[1]	4,750
Operational borrowings	[1],[2]	2,645
Other liabilities		523
Investment contract liabilities with discretionary participation features		633	[1]	85,858
Investment contract liabilities without discretionary participation features		4,902	[1]	24,481
Total liabilities	[1]	434,545
Total equity and liabilities	[1]	454,214
With-profits
Assets
Deferred acquisition costs and other intangible assets		67		71
Operating segments | Asia
Assets
Goodwill		926		634
Deferred acquisition costs and other intangible assets		5,154		3,741
Reinsurers' share of insurance contract liabilities		5,458		3,537
Other assets		3,208		4,987
Investment properties		7		6
Investment in joint ventures and associates accounted for using the equity method		1,500		1,262
Financial investments		131,499		103,016
Cash and cash equivalents on the consolidated statement of financial position at end of year		2,490		2,789
Total assets		150,242		119,972
Total equity		11,021		8,187
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		115,943		93,248
Unallocated surplus of with-profits funds		4,750		3,198
Operational borrowings		473		102
Other liabilities		18,055		15,237
Total liabilities		139,221		111,785
Total equity and liabilities		150,242		119,972
Operating segments | US
Assets
Deferred acquisition costs and other intangible assets		12,264		11,140
Reinsurers' share of insurance contract liabilities		8,394		8,485
Other assets		5,432		4,569
Investment properties		7		8
Financial investments		271,190		232,955
Cash and cash equivalents on the consolidated statement of financial position at end of year		1,960		3,827
Total assets		299,247		260,984
Total equity		8,929		7,163
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		269,549		236,380
Core structural borrowings of shareholder-financed businesses		250		250
Operational borrowings		1,501		418
Other liabilities		19,018		16,773
Total liabilities		290,318		253,821
Total equity and liabilities		299,247		260,984
Operations within segments | Asia insurance operations
Assets
Goodwill		327
Deferred acquisition costs and other intangible assets		5,139
Reinsurers' share of insurance contract liabilities		5,458
Other assets		3,031
Investment properties		7
Investment in joint ventures and associates accounted for using the equity method		1,263
Financial investments		131,191
Cash and cash equivalents on the consolidated statement of financial position at end of year		2,334
Total assets		148,750
Total equity		9,803
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		115,943
Unallocated surplus of with-profits funds		4,750
Operational borrowings		446
Other liabilities		17,808
Total liabilities		138,947
Total equity and liabilities		148,750
Operations within segments | Asia insurance operations | With-profits
Assets
Deferred acquisition costs and other intangible assets	[3]	67
Reinsurers' share of insurance contract liabilities	[3]	152
Other assets	[3]	1,210
Financial investments	[3]	76,581
Cash and cash equivalents on the consolidated statement of financial position at end of year	[3]	963
Total assets	[3]	78,973
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)	[3]	65,558
Unallocated surplus of with-profits funds	[3]	4,750
Operational borrowings	[3]	302
Other liabilities	[3]	8,363
Total liabilities	[3]	78,973
Total equity and liabilities	[3]	78,973
Operations within segments | Asia insurance operations | Unit-linked
Assets
Other assets		237
Financial investments		24,628
Cash and cash equivalents on the consolidated statement of financial position at end of year		356
Total assets		25,221
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		23,571
Operational borrowings		21
Other liabilities		1,629
Total liabilities		25,221
Total equity and liabilities		25,221
Operations within segments | Asia insurance operations | Other business
Assets
Goodwill		327
Deferred acquisition costs and other intangible assets		5,072
Reinsurers' share of insurance contract liabilities		5,306
Other assets		1,584
Investment properties		7
Investment in joint ventures and associates accounted for using the equity method		1,263
Financial investments		29,982
Cash and cash equivalents on the consolidated statement of financial position at end of year		1,015
Total assets		44,556
Total equity		9,803
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		26,814
Operational borrowings		123
Other liabilities		7,816
Total liabilities		34,753
Total equity and liabilities		44,556
Operations within segments | Asia asset management
Assets
Goodwill		599
Deferred acquisition costs and other intangible assets		15
Other assets		212
Investment in joint ventures and associates accounted for using the equity method		237
Financial investments		308
Cash and cash equivalents on the consolidated statement of financial position at end of year		156
Total assets		1,527
Total equity		1,218
Liabilities
Operational borrowings		27
Other liabilities		282
Total liabilities		309
Total equity and liabilities		1,527
Operations within segments | Jackson (US insurance operations)
Assets
Deferred acquisition costs and other intangible assets		12,264
Reinsurers' share of insurance contract liabilities		8,394
Other assets		5,293
Investment properties		7
Financial investments		271,176
Cash and cash equivalents on the consolidated statement of financial position at end of year		1,912
Total assets		299,046
Total equity		8,923
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		269,549
Core structural borrowings of shareholder-financed businesses		250
Operational borrowings		1,460
Other liabilities		18,864
Total liabilities		290,123
Total equity and liabilities		299,046
Operations within segments | Jackson (US insurance operations) | Variable annuity separate account
Assets
Financial investments		195,070
Total assets		195,070
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		195,070
Total liabilities		195,070
Total equity and liabilities		195,070
Operations within segments | Jackson (US insurance operations) | Fixed annuity, GIC and other business
Assets
Deferred acquisition costs and other intangible assets		12,264
Reinsurers' share of insurance contract liabilities		8,394
Other assets		5,293
Investment properties		7
Financial investments		76,106
Cash and cash equivalents on the consolidated statement of financial position at end of year		1,912
Total assets		103,976
Total equity		8,923
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		74,479
Core structural borrowings of shareholder-financed businesses		250
Operational borrowings		1,460
Other liabilities		18,864
Total liabilities		95,053
Total equity and liabilities		103,976
Operations within segments | Asset management (US)
Assets
Other assets		228
Financial investments		14
Cash and cash equivalents on the consolidated statement of financial position at end of year		48
Total assets		290
Total equity		6
Liabilities
Operational borrowings		41
Other liabilities		243
Total liabilities		284
Total equity and liabilities		290
Elimination of intra-segment amounts | Asia
Assets
Other assets		(35)
Total assets		(35)
Liabilities
Other liabilities		(35)
Total liabilities		(35)
Total equity and liabilities		(35)
Elimination of intra-segment amounts | US
Assets
Other assets		(89)
Total assets		(89)
Liabilities
Other liabilities		(89)
Total liabilities		(89)
Total equity and liabilities		(89)
Elimination of intra-group amounts
Assets
Other assets		(2,652)
Total assets		(2,652)
Liabilities
Total liabilities		(2,652)
Total equity and liabilities		(2,652)
Unallocated to a segment (other operations)
Assets
Goodwill		43
Deferred acquisition costs and other intangible assets		58		55
Reinsurers' share of insurance contract liabilities		4		2
Other assets		3,339		2,829
Investment properties		11
Financial investments		1,407		2,998
Cash and cash equivalents on the consolidated statement of financial position at end of year		2,515		2,778
Total assets		7,377		8,662
Total equity		(281)		(4,439)
Liabilities
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)		186		50	$ 43
Core structural borrowings of shareholder-financed businesses		5,344		9,511
Operational borrowings		671		640
Total liabilities		7,658		13,101
Total equity and liabilities		$ 7,377		$ 8,662
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	As at 1 January 2019, the Group applied IFRS 16 ‘Leases’, using the modified retrospective approach. Under this approach, comparative information is not restated. The application of the standard has resulted in the recognition of an additional lease liability and a corresponding ‘right-of-use’ asset of a similar amount as at 1 January 2019. See note A3 and note C13 for further details.
[3]	31 Dec31 Dec 2019 $m2018 $mTotal insuranceUnit-linked        With-profitsassets andOtherAsset    Note    business*    liabilities    business    Total    management    Eliminations    Total    TotalAssets              Goodwill     —  —  327  327 599 —  926 634Deferred acquisition costs and other intangible assets     67  —  5,072  5,139 15 —  5,154 3,741Reinsurers’ share of insurance contract liabilities     152  —  5,306  5,458- —  5,458 3,537Other assets     1,210  237  1,584  3,031 212 (35)  3,208 4,987Investment properties     —  —  7  7- —  7 6Investment in joint ventures and associates accounted for using the equity method     —  —  1,263  1,263 237 —  1,500 1,262Financial investments     76,581  24,628  29,982  131,191 308 —  131,499 103,016Cash and cash equivalents     963  356  1,015  2,334 156 —  2,490 2,789Total assets     78,973  25,221  44,556  148,750 1,527 (35)  150,242 119,972Total equity     —  —  9,803  9,803 1,218 —  11,021 8,187Liabilities       Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) C4.2  65,558  23,571  26,814  115,943 — —  115,943 93,248Unallocated surplus of with-profits funds C4.2  4,750  — —  4,750 — —  4,750 3,198Operational borrowings     302  21  123  446 27 —  473 102Other liabilities     8,363  1,629  7,816  17,808 282 (35)  18,055 15,237Total liabilities     78,973  25,221  34,753  138,947 309 (35)  139,221 111,785Total equity and liabilities     78,973  25,221  44,556  148,750 1,527 (35)  150,242 119,972The statement of financial position for with-profits business comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore operations. 'Other business' includes assets and liabilities of other participating businesses and other non-linked shareholder-backed business.

Group assets and liabilities _3

Group assets and liabilities - measurement - Carried at fair value (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Level 3
Financial instruments
Total financial instruments at fair value	$ 1,408
Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Total financial instruments at fair value	276
Level 3 | Non-linked shareholder-backed
Financial instruments
Total financial instruments at fair value	1,323
At fair value
Financial instruments
Total financial investments, net of derivative liabilities	388,093
Total financial instruments at fair value	$ 377,324	$ 315,259
Percentage of total (%)	100.00%	100.00%
At fair value | UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments at fair value		$ 154,223
Percentage of total (%)		100.00%
At fair value | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 511,150
Total financial instruments at fair value		$ 469,482
Percentage of total (%)		100.00%
At fair value | Loans
Financial instruments
Financial assets	$ 3,587
At fair value | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 6,054
At fair value | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	247,281
At fair value | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		273,484
At fair value | Debt securities
Financial instruments
Financial assets classified as available-for-sale	58,302	52,025
Financial assets	134,570
At fair value | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		223,333
At fair value | Other investments (including derivative assets)
Financial instruments
Financial assets	3,047
At fair value | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		12,744
At fair value | Derivative liabilities
Financial instruments
Financial liabilities	(392)
At fair value | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(4,465)
At fair value | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities	(1,011)
At fair value | Investment contract liabilities without discretionary participation features held at fair value | Continuing and discontinued operations
Financial instruments
Financial liabilities		(20,446)
At fair value | Borrowings attributable to with-profits businesses | Continuing and discontinued operations
Financial instruments
Financial liabilities		(2,045)
At fair value | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Financial instruments
Financial liabilities	(5,998)
At fair value | Net asset value attributable to unit holders of consolidated unit trusts and similar funds | Continuing and discontinued operations
Financial instruments
Financial liabilities		(14,839)
At fair value | Other financial liabilities
Financial instruments
Financial liabilities	(3,760)
At fair value | Other financial liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(4,338)
At fair value | With-profits
Financial instruments
Total financial investments, net of derivative liabilities	$ 74,083
Percentage of total (%)	100.00%
Total financial instruments at fair value		55,120
At fair value | With-profits | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 187,698
Percentage of total (%)		100.00%
At fair value | With-profits | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 2,168
At fair value | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 29,372
At fair value | With-profits | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		74,194
At fair value | With-profits | Debt securities
Financial instruments
Financial assets	44,782
At fair value | With-profits | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		103,165
At fair value | With-profits | Other investments (including derivative assets)
Financial instruments
Financial assets	160
At fair value | With-profits | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		9,847
At fair value | With-profits | Derivative liabilities
Financial instruments
Financial liabilities	(231)
At fair value | With-profits | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(1,676)
At fair value | Unit-linked and variable annuity separate account
Financial instruments
Total financial investments, net of derivative liabilities	$ 219,324
Percentage of total (%)	100.00%
Total financial instruments at fair value		182,751
At fair value | Unit-linked and variable annuity separate account | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 213,970
Percentage of total (%)		100.00%
At fair value | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 214,162
At fair value | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 195,499
At fair value | Unit-linked and variable annuity separate account | Debt securities
Financial instruments
Financial assets	5,153
At fair value | Unit-linked and variable annuity separate account | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		18,458
At fair value | Unit-linked and variable annuity separate account | Other investments (including derivative assets)
Financial instruments
Financial assets	10
At fair value | Unit-linked and variable annuity separate account | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		20
At fair value | Unit-linked and variable annuity separate account | Derivative liabilities
Financial instruments
Financial liabilities	(1)
At fair value | Unit-linked and variable annuity separate account | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(7)
At fair value | Non-linked shareholder-backed
Financial instruments
Total financial investments, net of derivative liabilities	$ 94,686
Percentage of total (%)	100.00%
Total financial instruments at fair value		77,388
At fair value | Non-linked shareholder-backed | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 109,482
Percentage of total (%)		100.00%
At fair value | Non-linked shareholder-backed | Loans
Financial instruments
Financial assets	$ 3,587
At fair value | Non-linked shareholder-backed | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 3,886
At fair value | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	3,747
At fair value | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		3,791
At fair value | Non-linked shareholder-backed | Debt securities
Financial instruments
Financial assets	84,635
At fair value | Non-linked shareholder-backed | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		101,710
At fair value | Non-linked shareholder-backed | Other investments (including derivative assets)
Financial instruments
Financial assets	2,877
At fair value | Non-linked shareholder-backed | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		2,877
At fair value | Non-linked shareholder-backed | Derivative liabilities
Financial instruments
Financial liabilities	(160)
At fair value | Non-linked shareholder-backed | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(2,782)
At fair value | Level 1
Financial instruments
Total financial investments, net of derivative liabilities	311,097
Total financial instruments at fair value	$ 305,124	$ 253,824
Percentage of total (%)	81.00%	81.00%
At fair value | Level 1 | UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments at fair value		$ 71,194
Percentage of total (%)		46.00%
At fair value | Level 1 | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 333,745
Total financial instruments at fair value		$ 325,018
Percentage of total (%)		70.00%
At fair value | Level 1 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 243,285
At fair value | Level 1 | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 265,245
At fair value | Level 1 | Debt securities
Financial instruments
Financial assets	67,927
At fair value | Level 1 | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		68,345
At fair value | Level 1 | Other investments (including derivative assets)
Financial instruments
Financial assets	70
At fair value | Level 1 | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		268
At fair value | Level 1 | Derivative liabilities
Financial instruments
Financial liabilities	(185)
At fair value | Level 1 | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(113)
At fair value | Level 1 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Financial instruments
Financial liabilities	(5,973)
At fair value | Level 1 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds | Continuing and discontinued operations
Financial instruments
Financial liabilities		(8,727)
At fair value | Level 1 | With-profits
Financial instruments
Total financial investments, net of derivative liabilities	$ 66,061
Percentage of total (%)	90.00%
Total financial instruments at fair value		49,914
At fair value | Level 1 | With-profits | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 106,461
Percentage of total (%)		57.00%
At fair value | Level 1 | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 25,850
At fair value | Level 1 | With-profits | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 66,636
At fair value | Level 1 | With-profits | Debt securities
Financial instruments
Financial assets	40,291
At fair value | Level 1 | With-profits | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		39,750
At fair value | Level 1 | With-profits | Other investments (including derivative assets)
Financial instruments
Financial assets	57
At fair value | Level 1 | With-profits | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		183
At fair value | Level 1 | With-profits | Derivative liabilities
Financial instruments
Financial liabilities	(137)
At fair value | Level 1 | With-profits | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(108)
At fair value | Level 1 | Unit-linked and variable annuity separate account
Financial instruments
Total financial investments, net of derivative liabilities	$ 217,838
Percentage of total (%)	99.00%
Total financial instruments at fair value		182,833
At fair value | Level 1 | Unit-linked and variable annuity separate account | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 200,920
Percentage of total (%)		94.00%
At fair value | Level 1 | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 213,797
At fair value | Level 1 | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 194,845
At fair value | Level 1 | Unit-linked and variable annuity separate account | Debt securities
Financial instruments
Financial assets	4,036
At fair value | Level 1 | Unit-linked and variable annuity separate account | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		6,070
At fair value | Level 1 | Unit-linked and variable annuity separate account | Other investments (including derivative assets)
Financial instruments
Financial assets	6
At fair value | Level 1 | Unit-linked and variable annuity separate account | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		8
At fair value | Level 1 | Unit-linked and variable annuity separate account | Derivative liabilities
Financial instruments
Financial liabilities	(1)
At fair value | Level 1 | Unit-linked and variable annuity separate account | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(3)
At fair value | Level 1 | Non-linked shareholder-backed
Financial instruments
Total financial investments, net of derivative liabilities	$ 27,198
Percentage of total (%)	29.00%
Total financial instruments at fair value		21,077
At fair value | Level 1 | Non-linked shareholder-backed | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 26,364
Percentage of total (%)		24.00%
At fair value | Level 1 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 3,638
At fair value | Level 1 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 3,764
At fair value | Level 1 | Non-linked shareholder-backed | Debt securities
Financial instruments
Financial assets	23,600
At fair value | Level 1 | Non-linked shareholder-backed | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		22,525
At fair value | Level 1 | Non-linked shareholder-backed | Other investments (including derivative assets)
Financial instruments
Financial assets	7
At fair value | Level 1 | Non-linked shareholder-backed | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		77
At fair value | Level 1 | Non-linked shareholder-backed | Derivative liabilities
Financial instruments
Financial liabilities	(47)
At fair value | Level 1 | Non-linked shareholder-backed | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(2)
At fair value | Level 2
Financial instruments
Total financial investments, net of derivative liabilities	71,826
Total financial instruments at fair value	$ 70,792	$ 60,893
Percentage of total (%)	19.00%	19.00%
At fair value | Level 2 | UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments at fair value		$ 76,819
Percentage of total (%)		50.00%
At fair value | Level 2 | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 163,015
Total financial instruments at fair value		$ 137,712
Percentage of total (%)		29.00%
At fair value | Level 2 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 3,720
At fair value | Level 2 | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 7,583
At fair value | Level 2 | Debt securities
Financial instruments
Financial assets	66,637	63,247
At fair value | Level 2 | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		153,483
At fair value | Level 2 | Other investments (including derivative assets)
Financial instruments
Financial assets	1,676
At fair value | Level 2 | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		5,762
At fair value | Level 2 | Derivative liabilities
Financial instruments
Financial liabilities	(207)
At fair value | Level 2 | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(3,813)
At fair value | Level 2 | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities	(1,011)
At fair value | Level 2 | Investment contract liabilities without discretionary participation features held at fair value | Continuing and discontinued operations
Financial instruments
Financial liabilities		(20,446)
At fair value | Level 2 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Financial instruments
Financial liabilities	(23)
At fair value | Level 2 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds | Continuing and discontinued operations
Financial instruments
Financial liabilities		(4,854)
At fair value | Level 2 | Other financial liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(3)
At fair value | Level 2 | With-profits
Financial instruments
Total financial investments, net of derivative liabilities	$ 7,762
Percentage of total (%)	10.00%
Total financial instruments at fair value		5,003
At fair value | Level 2 | With-profits | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 71,907
Percentage of total (%)		38.00%
At fair value | Level 2 | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 3,268
At fair value | Level 2 | With-profits | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 6,937
At fair value | Level 2 | With-profits | Debt securities
Financial instruments
Financial assets	4,485
At fair value | Level 2 | With-profits | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		62,382
At fair value | Level 2 | With-profits | Other investments (including derivative assets)
Financial instruments
Financial assets	103
At fair value | Level 2 | With-profits | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		4,156
At fair value | Level 2 | With-profits | Derivative liabilities
Financial instruments
Financial liabilities	(94)
At fair value | Level 2 | With-profits | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(1,568)
At fair value | Level 2 | Unit-linked and variable annuity separate account
Financial instruments
Total financial investments, net of derivative liabilities	$ 1,486
Percentage of total (%)	1.00%
Total financial instruments at fair value		(82)
At fair value | Level 2 | Unit-linked and variable annuity separate account | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 13,031
Percentage of total (%)		6.00%
At fair value | Level 2 | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 365
At fair value | Level 2 | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 643
At fair value | Level 2 | Unit-linked and variable annuity separate account | Debt securities
Financial instruments
Financial assets	1,117
At fair value | Level 2 | Unit-linked and variable annuity separate account | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		12,388
At fair value | Level 2 | Unit-linked and variable annuity separate account | Other investments (including derivative assets)
Financial instruments
Financial assets	4
At fair value | Level 2 | Unit-linked and variable annuity separate account | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		4
At fair value | Level 2 | Unit-linked and variable annuity separate account | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(4)
At fair value | Level 2 | Non-linked shareholder-backed
Financial instruments
Total financial investments, net of derivative liabilities	$ 62,578
Percentage of total (%)	66.00%
Total financial instruments at fair value		55,972
At fair value | Level 2 | Non-linked shareholder-backed | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 78,077
Percentage of total (%)		71.00%
At fair value | Level 2 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 87
At fair value | Level 2 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 3
At fair value | Level 2 | Non-linked shareholder-backed | Debt securities
Financial instruments
Financial assets	61,035
At fair value | Level 2 | Non-linked shareholder-backed | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		78,713
At fair value | Level 2 | Non-linked shareholder-backed | Other investments (including derivative assets)
Financial instruments
Financial assets	1,569
At fair value | Level 2 | Non-linked shareholder-backed | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		1,602
At fair value | Level 2 | Non-linked shareholder-backed | Derivative liabilities
Financial instruments
Financial liabilities	(113)
At fair value | Level 2 | Non-linked shareholder-backed | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(2,241)
At fair value | Level 3
Financial instruments
Total financial investments, net of derivative liabilities	5,170
Total financial instruments at fair value	$ 1,408	$ 542
Percentage of total (%)	0.00%	0.00%
At fair value | Level 3 | UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments at fair value		$ 6,210
Percentage of total (%)		4.00%
At fair value | Level 3 | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 14,390
Total financial instruments at fair value		$ 6,752	$ 6,010
Percentage of total (%)		1.00%
At fair value | Level 3 | Loans
Financial instruments
Financial assets	$ 3,587
At fair value | Level 3 | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 6,054	6,543
At fair value | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	276
At fair value | Level 3 | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		656	502
At fair value | Level 3 | Debt securities
Financial instruments
Financial assets	6
At fair value | Level 3 | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		1,505	885
At fair value | Level 3 | Other investments (including derivative assets)
Financial instruments
Financial assets	1,301
At fair value | Level 3 | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		6,714	5,985
At fair value | Level 3 | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(539)	(693)
At fair value | Level 3 | Borrowings attributable to with-profits businesses | Continuing and discontinued operations
Financial instruments
Financial liabilities		(2,045)	(2,553)
At fair value | Level 3 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Financial instruments
Financial liabilities	(2)
At fair value | Level 3 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds | Continuing and discontinued operations
Financial instruments
Financial liabilities		(1,258)	(559)
At fair value | Level 3 | Other financial liabilities
Financial instruments
Financial liabilities	(3,760)
At fair value | Level 3 | Other financial liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		(4,335)	$ (4,100)
At fair value | Level 3 | With-profits
Financial instruments
Total financial investments, net of derivative liabilities	$ 260
Percentage of total (%)	0.00%
Total financial instruments at fair value		203
At fair value | Level 3 | With-profits | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 9,330
Percentage of total (%)		5.00%
At fair value | Level 3 | With-profits | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 2,168
At fair value | Level 3 | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	$ 254
At fair value | Level 3 | With-profits | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		621
At fair value | Level 3 | With-profits | Debt securities
Financial instruments
Financial assets	$ 6
At fair value | Level 3 | With-profits | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		1,033
At fair value | Level 3 | With-profits | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		5,508
At fair value | Level 3 | Unit-linked and variable annuity separate account
Financial instruments
Percentage of total (%)	0.00%
At fair value | Level 3 | Unit-linked and variable annuity separate account | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 19
Percentage of total (%)		0.00%
At fair value | Level 3 | Unit-linked and variable annuity separate account | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		$ 11
At fair value | Level 3 | Unit-linked and variable annuity separate account | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		8
At fair value | Level 3 | Non-linked shareholder-backed
Financial instruments
Total financial investments, net of derivative liabilities	$ 4,910
Percentage of total (%)	5.00%
Total financial instruments at fair value		339
At fair value | Level 3 | Non-linked shareholder-backed | Continuing and discontinued operations
Financial instruments
Total financial investments, net of derivative liabilities		$ 5,041
Percentage of total (%)		5.00%
At fair value | Level 3 | Non-linked shareholder-backed | Loans
Financial instruments
Financial assets	$ 3,587
At fair value | Level 3 | Non-linked shareholder-backed | Loans | Continuing and discontinued operations
Financial instruments
Financial assets		$ 3,886
At fair value | Level 3 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	22
At fair value | Level 3 | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes | Continuing and discontinued operations
Financial instruments
Financial assets		24
At fair value | Level 3 | Non-linked shareholder-backed | Debt securities | Continuing and discontinued operations
Financial instruments
Financial assets		472
At fair value | Level 3 | Non-linked shareholder-backed | Other investments (including derivative assets)
Financial instruments
Financial assets	$ 1,301
At fair value | Level 3 | Non-linked shareholder-backed | Other investments (including derivative assets) | Continuing and discontinued operations
Financial instruments
Financial assets		1,198
At fair value | Level 3 | Non-linked shareholder-backed | Derivative liabilities | Continuing and discontinued operations
Financial instruments
Financial liabilities		$ (539)

Group assets and liabilities _4

Group assets and liabilities - measurement - Fair value disclosed (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Financial instruments
Total financial instruments carried at amortised cost	$ (7,405)	$ (9,996)
Loans
Financial instruments
Financial assets at amortised cost	12,996
Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost	(3,891)
Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost	(5,594)
Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost	(2,015)
Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost	(8,901)
Level 2
Financial instruments
Total financial instruments carried at amortised cost	(6,425)
Level 2 | Loans
Financial instruments
Financial assets at amortised cost	1,865
Level 2 | Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost	(6,227)
Level 2 | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost	(2,015)
Level 2 | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost	(48)
Level 3
Financial instruments
Total financial instruments carried at amortised cost	(1,398)
Level 3 | Loans
Financial instruments
Financial assets at amortised cost	11,646
Level 3 | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost	(3,957)
Level 3 | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost	(9,087)
Continuing and discontinued operations
Financial instruments
Total financial instruments carried at amortised cost		(10,057)
Continuing and discontinued operations | Loans
Financial instruments
Financial assets at amortised cost		16,884
Continuing and discontinued operations | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost		(4,035)
Continuing and discontinued operations | Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost		(9,761)
Continuing and discontinued operations | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost		(4,244)
Continuing and discontinued operations | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost		(8,901)
Continuing and discontinued operations | Level 2
Financial instruments
Total financial instruments carried at amortised cost		(11,762)
Continuing and discontinued operations | Level 2 | Loans
Financial instruments
Financial assets at amortised cost		3,691
Continuing and discontinued operations | Level 2 | Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost		(9,994)
Continuing and discontinued operations | Level 2 | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost		(3,857)
Continuing and discontinued operations | Level 2 | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost		(1,602)
Continuing and discontinued operations | Level 3
Financial instruments
Total financial instruments carried at amortised cost		2,278
Continuing and discontinued operations | Level 3 | Loans
Financial instruments
Financial assets at amortised cost		13,714
Continuing and discontinued operations | Level 3 | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost		(4,021)
Continuing and discontinued operations | Level 3 | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost		(92)
Continuing and discontinued operations | Level 3 | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost		(7,323)
UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments carried at amortised cost		(61)
Assets and liabilities at amortised cost for which fair value is disclosed
Financial instruments
Total financial instruments carried at amortised cost	(7,823)	(10,240)
Assets and liabilities at amortised cost for which fair value is disclosed | Loans
Financial instruments
Financial assets at amortised cost	13,511
Assets and liabilities at amortised cost for which fair value is disclosed | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost	(3,957)
Assets and liabilities at amortised cost for which fair value is disclosed | Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost	(6,227)
Assets and liabilities at amortised cost for which fair value is disclosed | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost	(2,015)
Assets and liabilities at amortised cost for which fair value is disclosed | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost	$ (9,135)
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations
Financial instruments
Total financial instruments carried at amortised cost		(9,484)
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations | Loans
Financial instruments
Financial assets at amortised cost		17,405
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations | Investment contract liabilities without discretionary participation features held at fair value
Financial instruments
Financial liabilities at amortised cost		(4,021)
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations | Core structural borrowings of shareholder-financed businesses
Financial instruments
Financial liabilities at amortised cost		(9,994)
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations | Operational borrowings (excluding lease liabilities)
Financial instruments
Financial liabilities at amortised cost		(3,949)
Assets and liabilities at amortised cost for which fair value is disclosed | Continuing and discontinued operations | Obligations under funding, securities lending and sale and repurchase agreements
Financial instruments
Financial liabilities at amortised cost		(8,925)
Assets and liabilities at amortised cost for which fair value is disclosed | UK & Europe Discontinued Operations (M&G Prudential)
Financial instruments
Total financial instruments carried at amortised cost		$ 756

Group assets and liabilities _5

Group assets and liabilities - measurement - Valuation approach for level 2 (Details) - At fair value - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Level 2 | Internal valuation
Group assets and liabilities - measurement
Financial assets	$ 8,915	$ 7,462
Debt securities
Group assets and liabilities - measurement
Financial assets	134,570
Debt securities | Level 2
Group assets and liabilities - measurement
Financial assets	$ 66,637	$ 63,247

Group assets and liabilities _6

Group assets and liabilities - measurement - Level 3 financial instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total gains (losses) in income statement:
Total gains (losses) in income statement	$ 537	$ 111
Transfers into level 3	0
Transfers out of Level 3	0
Continuing and discontinued operations
Total gains (losses) in income statement:
Total gains (losses) in income statement		579
Level 3
Total gains (losses) in income statement:
Net unrealised gains (losses) on financial instruments held at the end of the year	19	153
Total gains (losses) in income statement:
Financial instruments at end of period	1,408
Level 3 | Equity securities and holdings in collective investment schemes
Total gains (losses) in income statement:
Financial instruments at end of period	276
At fair value
Reconciliation of movements in level 3 net financial instruments measured at fair value
Financial instruments at beginning of period	315,259
Total gains (losses) in income statement:
Financial instruments at end of period	377,324	315,259
At fair value | Loans
Total gains (losses) in income statement:
Assets at end of period	3,587
At fair value | Equity securities and holdings in collective investment schemes
Total gains (losses) in income statement:
Assets at end of period	247,281
At fair value | Debt securities
Total gains (losses) in income statement:
Assets at end of period	134,570
At fair value | Other investments (including derivative assets)
Total gains (losses) in income statement:
Assets at end of period	3,047
At fair value | Derivative liabilities
Total gains (losses) in income statement:
Liabilities at end of period	(392)
At fair value | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Total gains (losses) in income statement:
Liabilities at end of period	(5,998)
At fair value | Other financial liabilities
Total gains (losses) in income statement:
Liabilities at end of period	(3,760)
At fair value | Continuing and discontinued operations
Reconciliation of movements in level 3 net financial instruments measured at fair value
Financial instruments at beginning of period	469,482
Total gains (losses) in income statement:
Financial instruments at end of period		469,482
At fair value | Continuing and discontinued operations | Loans
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	6,054
Total gains (losses) in income statement:
Assets at end of period		6,054
At fair value | Continuing and discontinued operations | Equity securities and holdings in collective investment schemes
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	273,484
Total gains (losses) in income statement:
Assets at end of period		273,484
At fair value | Continuing and discontinued operations | Debt securities
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	223,333
Total gains (losses) in income statement:
Assets at end of period		223,333
At fair value | Continuing and discontinued operations | Other investments (including derivative assets)
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	12,744
Total gains (losses) in income statement:
Assets at end of period		12,744
At fair value | Continuing and discontinued operations | Derivative liabilities
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(4,465)
Total gains (losses) in income statement:
Liabilities at end of period		(4,465)
At fair value | Continuing and discontinued operations | Borrowings attributable to with-profits businesses
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(2,045)
Total gains (losses) in income statement:
Liabilities at end of period		(2,045)
At fair value | Continuing and discontinued operations | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(14,839)
Total gains (losses) in income statement:
Liabilities at end of period		(14,839)
At fair value | Continuing and discontinued operations | Other financial liabilities
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(4,338)
Total gains (losses) in income statement:
Liabilities at end of period		(4,338)
At fair value | Level 3
Reconciliation of movements in level 3 net financial instruments measured at fair value
Financial instruments at beginning of period	542
Demerger of UK and Europe operations	(6,206)
Total gains (losses) in income statement:
Net realised gains (losses)	537
Total (losses)/gains recorded as other comprehensive income	(14)
Purchases	336
Sales	(201)
Issues	132
Settlements	72
Financial instruments at end of period	1,408	542
At fair value | Level 3 | Loans
Reconciliation of movements in level 3 assets measured at fair value
Demerger of UK and Europe operations	(2,509)
Total gains (losses) in income statement:
Total gains (losses) in income statement	1
Issues	275
Settlements	(234)
Assets at end of period	3,587
At fair value | Level 3 | Equity securities and holdings in collective investment schemes
Reconciliation of movements in level 3 assets measured at fair value
Demerger of UK and Europe operations	(440)
Total gains (losses) in income statement:
Total gains (losses) in income statement	(11)
Total gains/(losses) recorded as other comprehensive income	3
Purchases	69
Sales	(1)
Assets at end of period	276
At fair value | Level 3 | Debt securities
Reconciliation of movements in level 3 assets measured at fair value
Demerger of UK and Europe operations	(1,498)
Total gains (losses) in income statement:
Total gains (losses) in income statement	6
Sales	(7)
Assets at end of period	6
At fair value | Level 3 | Other investments (including derivative assets)
Reconciliation of movements in level 3 assets measured at fair value
Demerger of UK and Europe operations	(5,513)
Total gains (losses) in income statement:
Total gains (losses) in income statement	30
Total gains/(losses) recorded as other comprehensive income	(6)
Purchases	269
Sales	(193)
Assets at end of period	1,301
At fair value | Level 3 | Derivative liabilities
Total gains (losses) in income statement:
Net realised gains (losses)	(539)
At fair value | Level 3 | Borrowings attributable to with-profits businesses
Reconciliation of movements in level 3 liabilities measured at fair value
Demerger of UK and Europe operations	2,045
At fair value | Level 3 | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Reconciliation of movements in level 3 liabilities measured at fair value
Demerger of UK and Europe operations	1,258
Total gains (losses) in income statement:
Purchases	(2)
Liabilities at end of period	(2)
At fair value | Level 3 | Other financial liabilities
Reconciliation of movements in level 3 liabilities measured at fair value
Demerger of UK and Europe operations	451
Total gains (losses) in income statement:
Net realised gains (losses)	(28)
Total (losses)/gains recorded as other comprehensive income	(11)
Issues	(143)
Settlements	306
Liabilities at end of period	(3,760)
At fair value | Level 3 | Continuing and discontinued operations
Reconciliation of movements in level 3 net financial instruments measured at fair value
Financial instruments at beginning of period	6,752	6,010
Total gains (losses) in income statement:
Net realised gains (losses)		579
Total (losses)/gains recorded as other comprehensive income		(292)
Purchases		2,744
Sales		(1,545)
Issues		(1,200)
Settlements		405
Transfers into level 3		11
Transfers out of level 3		40
Financial instruments at end of period		6,752
At fair value | Level 3 | Continuing and discontinued operations | Loans
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	6,054	6,543
Total gains (losses) in income statement:
Total gains (losses) in income statement		(104)
Total gains/(losses) recorded as other comprehensive income		(162)
Purchases		83
Sales		(238)
Issues		373
Settlements		(441)
Assets at end of period		6,054
At fair value | Level 3 | Continuing and discontinued operations | Equity securities and holdings in collective investment schemes
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	656	502
Total gains (losses) in income statement:
Total gains (losses) in income statement		51
Total gains/(losses) recorded as other comprehensive income		(28)
Purchases		167
Sales		(47)
Transfers into level 3		11
Assets at end of period		656
At fair value | Level 3 | Continuing and discontinued operations | Debt securities
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	1,505	885
Total gains (losses) in income statement:
Total gains (losses) in income statement		(9)
Total gains/(losses) recorded as other comprehensive income		(85)
Purchases		889
Sales		(175)
Assets at end of period		1,505
At fair value | Level 3 | Continuing and discontinued operations | Other investments (including derivative assets)
Reconciliation of movements in level 3 assets measured at fair value
Assets at beginning of period	6,714	5,985
Total gains (losses) in income statement:
Total gains (losses) in income statement		540
Total gains/(losses) recorded as other comprehensive income		(331)
Purchases		1,605
Sales		(1,085)
Assets at end of period		6,714
At fair value | Level 3 | Continuing and discontinued operations | Derivative liabilities
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(539)	(693)
Total gains (losses) in income statement:
Net realised gains (losses)		36
Total (losses)/gains recorded as other comprehensive income		34
Transfers out of level 3		84
Liabilities at end of period		(539)
At fair value | Level 3 | Continuing and discontinued operations | Borrowings attributable to with-profits businesses
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(2,045)	(2,553)
Total gains (losses) in income statement:
Net realised gains (losses)		(31)
Total (losses)/gains recorded as other comprehensive income		133
Settlements		406
Liabilities at end of period		(2,045)
At fair value | Level 3 | Continuing and discontinued operations | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	(1,258)	(559)
Total gains (losses) in income statement:
Net realised gains (losses)		89
Total (losses)/gains recorded as other comprehensive income		111
Issues		(931)
Settlements		76
Transfers out of level 3		(44)
Liabilities at end of period		(1,258)
At fair value | Level 3 | Continuing and discontinued operations | Other financial liabilities
Reconciliation of movements in level 3 liabilities measured at fair value
Liabilities at beginning of period	$ (4,335)	(4,100)
Total gains (losses) in income statement:
Net realised gains (losses)		7
Total (losses)/gains recorded as other comprehensive income		36
Issues		(642)
Settlements		364
Liabilities at end of period		$ (4,335)

Group assets and liabilities _7

Group assets and liabilities - measurement - Valuation approach for level 3 (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Level 3
Financial instruments
Net financial instruments at fair value	$ 1,408
Percentage using valuation method	1.00%
Level 3 | Equity-type securities
Financial instruments
Financial assets	$ 1,301
Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Net financial instruments at fair value	276
Financial instruments of net asset	4
Non-linked shareholder-backed | Level 3
Financial instruments
Net financial instruments at fair value	$ 1,323
Reasonably possible decrease in valuation (as a percent)	10.00%
Amount of reasonably possible decrease in valuation	$ 132
REALIC of Jacksonville Plans, Inc | Level 3
Financial instruments
Net financial instruments at fair value	173
Financial assets	3,587
Financial liabilities	3,760
Internal valuation | REALIC of Jacksonville Plans, Inc | Level 3
Financial instruments
Net financial instruments at fair value	1,581
At fair value
Financial instruments
Net financial instruments at fair value	377,324	$ 315,259
At fair value | Derivative liabilities
Financial instruments
Financial liabilities	392
At fair value | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	247,281
At fair value | Level 3
Financial instruments
Net financial instruments at fair value	1,408	542
At fair value | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	276
At fair value | With-profits
Financial instruments
Net financial instruments at fair value		55,120
At fair value | With-profits | Derivative liabilities
Financial instruments
Financial liabilities	231
At fair value | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	29,372
At fair value | With-profits | Level 3
Financial instruments
Net financial instruments at fair value		203
At fair value | With-profits | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	254
At fair value | Non-linked shareholder-backed
Financial instruments
Net financial instruments at fair value		77,388
At fair value | Non-linked shareholder-backed | Derivative liabilities
Financial instruments
Financial liabilities	160
At fair value | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	3,747
At fair value | Non-linked shareholder-backed | Level 3
Financial instruments
Net financial instruments at fair value		339
At fair value | Non-linked shareholder-backed | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets	22
Continuing and discontinued operations | At fair value
Financial instruments
Net financial instruments at fair value		469,482
Continuing and discontinued operations | At fair value | Derivative liabilities
Financial instruments
Financial liabilities		4,465
Continuing and discontinued operations | At fair value | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		273,484
Continuing and discontinued operations | At fair value | Level 3
Financial instruments
Net financial instruments at fair value		6,752	$ 6,010
Continuing and discontinued operations | At fair value | Level 3 | Derivative liabilities
Financial instruments
Financial liabilities		539	693
Continuing and discontinued operations | At fair value | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		656	$ 502
Continuing and discontinued operations | At fair value | With-profits | Derivative liabilities
Financial instruments
Financial liabilities		1,676
Continuing and discontinued operations | At fair value | With-profits | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		74,194
Continuing and discontinued operations | At fair value | With-profits | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		621
Continuing and discontinued operations | At fair value | Non-linked shareholder-backed | Derivative liabilities
Financial instruments
Financial liabilities		2,782
Continuing and discontinued operations | At fair value | Non-linked shareholder-backed | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		3,791
Continuing and discontinued operations | At fair value | Non-linked shareholder-backed | Level 3 | Derivative liabilities
Financial instruments
Financial liabilities		539
Continuing and discontinued operations | At fair value | Non-linked shareholder-backed | Level 3 | Equity securities and holdings in collective investment schemes
Financial instruments
Financial assets		$ 24
Asia insurance operations | Level 3
Financial instruments
Net financial instruments at fair value	$ 258

Group assets and liabilities _8

Group assets and liabilities - measurement - Transfers between levels (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Disclosure of detailed information about financial instruments [line items]
Transfers into level 3	$ 0
Transfers out of level 3	0
At fair value | Equity and debt securities
Disclosure of detailed information about financial instruments [line items]
Transfers from level 1 to level 2	678
Transfers from level 2 to level 1	$ 1,121

Debt securities - Credit rating

Debt securities - Credit rating analysis (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Financial investments
Debt securities		$ 134,570	[1],[2]	$ 113,860
UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				109,473
Continuing and discontinued operations
Financial investments
Debt securities	[1],[2],[3]			223,333	$ 231,835
AAA
Financial investments
Debt securities		8,754		7,682
AAA | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				13,931
AAA | Continuing and discontinued operations
Financial investments
Debt securities				21,613
AA+ to AA-
Financial investments
Debt securities		39,607		31,207
AA+ to AA- | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				23,185
AA+ to AA- | Continuing and discontinued operations
Financial investments
Debt securities				54,392
A+ to A-
Financial investments
Debt securities		28,171		24,005
A+ to A- | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				23,746
A+ to A- | Continuing and discontinued operations
Financial investments
Debt securities				47,751
BBB+ to BBB-
Financial investments
Debt securities		31,076		29,067
BBB+ to BBB- | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				25,126
BBB+ to BBB- | Continuing and discontinued operations
Financial investments
Debt securities				54,193
Below BBB-
Financial investments
Debt securities		8,703		7,454
Below BBB- | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				4,387
Below BBB- | Continuing and discontinued operations
Financial investments
Debt securities				11,841
Other
Financial investments
Debt securities		18,259		14,445
Other | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Debt securities				19,098
Other | Continuing and discontinued operations
Financial investments
Debt securities				33,543
Operating segments | Asia insurance operations | With-profits
Financial investments
Debt securities		44,782		34,647
Operating segments | Asia insurance operations | Unit-linked
Financial investments
Debt securities		5,153		5,070
Operating segments | Asia insurance operations | Non-linked shareholder-backed
Financial investments
Debt securities		24,646		18,573
Operating segments | Asia insurance operations | AAA | With-profits
Financial investments
Debt securities		5,205		3,659
Operating segments | Asia insurance operations | AAA | Unit-linked
Financial investments
Debt securities		770		1,040
Operating segments | Asia insurance operations | AAA | Non-linked shareholder-backed
Financial investments
Debt securities		1,611		1,317
Operating segments | Asia insurance operations | AA+ to AA- | With-profits
Financial investments
Debt securities		21,911		15,766
Operating segments | Asia insurance operations | AA+ to AA- | Unit-linked
Financial investments
Debt securities		135		127
Operating segments | Asia insurance operations | AA+ to AA- | Non-linked shareholder-backed
Financial investments
Debt securities		6,050		4,524
Operating segments | Asia insurance operations | A+ to A- | With-profits
Financial investments
Debt securities		5,863		5,275
Operating segments | Asia insurance operations | A+ to A- | Unit-linked
Financial investments
Debt securities		674		627
Operating segments | Asia insurance operations | A+ to A- | Non-linked shareholder-backed
Financial investments
Debt securities		6,293		4,734
Operating segments | Asia insurance operations | BBB+ to BBB- | With-profits
Financial investments
Debt securities		5,874		4,788
Operating segments | Asia insurance operations | BBB+ to BBB- | Unit-linked
Financial investments
Debt securities		2,074		1,822
Operating segments | Asia insurance operations | BBB+ to BBB- | Non-linked shareholder-backed
Financial investments
Debt securities		4,639		3,738
Operating segments | Asia insurance operations | Below BBB- | With-profits
Financial investments
Debt securities		2,382		2,225
Operating segments | Asia insurance operations | Below BBB- | Unit-linked
Financial investments
Debt securities		522		542
Operating segments | Asia insurance operations | Below BBB- | Non-linked shareholder-backed
Financial investments
Debt securities		3,749		2,805
Operating segments | Asia insurance operations | Other | With-profits
Financial investments
Debt securities		3,547		2,934
Operating segments | Asia insurance operations | Other | Unit-linked
Financial investments
Debt securities		978		912
Operating segments | Asia insurance operations | Other | Non-linked shareholder-backed
Financial investments
Debt securities		2,304		1,455
Operating segments | Asia asset management
Financial investments
Debt securities		129		90
Operating segments | Asia asset management | AAA
Financial investments
Debt securities		14		14
Operating segments | Asia asset management | A+ to A-
Financial investments
Debt securities		112		76
Operating segments | Asia asset management | Other
Financial investments
Debt securities		3
Operating segments | US
Financial investments
Debt securities		58,528		52,974
Operating segments | US | Non-linked shareholder-backed
Financial investments
Debt securities		58,528		52,974
Operating segments | US | AAA | Non-linked shareholder-backed
Financial investments
Debt securities		1,154		864
Operating segments | US | AA+ to AA- | Non-linked shareholder-backed
Financial investments
Debt securities		10,300		9,403
Operating segments | US | A+ to A- | Non-linked shareholder-backed
Financial investments
Debt securities		15,229		13,100
Operating segments | US | BBB+ to BBB- | Non-linked shareholder-backed
Financial investments
Debt securities		18,489		18,667
Operating segments | US | Below BBB- | Non-linked shareholder-backed
Financial investments
Debt securities		1,995		1,820
Operating segments | US | Other | Non-linked shareholder-backed
Financial investments
Debt securities		11,361		9,120
Unallocated to a segment (other operations)
Financial investments
Debt securities		1,332		2,506
Unallocated to a segment (other operations) | AAA
Financial investments
Debt securities				788
Unallocated to a segment (other operations) | AA+ to AA-
Financial investments
Debt securities		1,211		1,387
Unallocated to a segment (other operations) | A+ to A-
Financial investments
Debt securities				193
Unallocated to a segment (other operations) | BBB+ to BBB-
Financial investments
Debt securities				52
Unallocated to a segment (other operations) | Below BBB-
Financial investments
Debt securities		55		62
Unallocated to a segment (other operations) | Other
Financial investments
Debt securities		$ 66		$ 24
[1]	Included within equity securities and holdings in collective investment schemes, debt securities and other investments are $90 million of lent securities as at 31 December 2019 (31 December 2018: $10,543 million, of which $107 million were from continuing operations).
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[3]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Debt securities - Credit rati_2

Debt securities - Credit rating classified as Other (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018
Financial investments
Debt securities	$ 134,570	[1],[2]	$ 113,860
Other
Financial investments
Debt securities	18,259		14,445
AAA
Financial investments
Debt securities	8,754		7,682
AA+ to AA-
Financial investments
Debt securities	39,607		31,207
A+ to A-
Financial investments
Debt securities	28,171		24,005
BBB+ to BBB-
Financial investments
Debt securities	31,076		29,067
Operating segments | Asia insurance operations | Non-linked shareholder-backed
Financial investments
Debt securities	24,646		18,573
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Other
Financial investments
Debt securities	2,304		1,455
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Other | Government bonds
Financial investments
Debt securities	323		46
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Other | Corporate bonds
Financial investments
Debt securities	1,610		1,246
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Other | Other asset-backed securities
Financial investments
Debt securities	371		163
Operating segments | Asia insurance operations | Non-linked shareholder-backed | AAA
Financial investments
Debt securities	1,611		1,317
Operating segments | Asia insurance operations | Non-linked shareholder-backed | AAA | Corporate bonds
Financial investments
Debt securities	184		239
Operating segments | Asia insurance operations | Non-linked shareholder-backed | AA+ to AA-
Financial investments
Debt securities	6,050		4,524
Operating segments | Asia insurance operations | Non-linked shareholder-backed | AA+ to AA- | Corporate bonds
Financial investments
Debt securities	958		702
Operating segments | Asia insurance operations | Non-linked shareholder-backed | A+ to A-
Financial investments
Debt securities	6,293		4,734
Operating segments | Asia insurance operations | Non-linked shareholder-backed | A+ to A- | Corporate bonds
Financial investments
Debt securities	345		241
Operating segments | Asia insurance operations | Non-linked shareholder-backed | BBB+ to BBB-
Financial investments
Debt securities	4,639		3,738
Operating segments | Asia insurance operations | Non-linked shareholder-backed | BBB+ to BBB- | Corporate bonds
Financial investments
Debt securities	91		39
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Below BBB- and unrated | Corporate bonds
Financial investments
Debt securities	$ 32		$ 25
Operating segments | Asia insurance operations | Non-linked shareholder-backed | Investment grade | Government bonds
Financial investments
Percentage of credit rating category of debt securities	99.70%		92.00%
Operating segments | US
Financial investments
Debt securities	$ 58,528		$ 52,974
Operating segments | US | Non-linked shareholder-backed
Financial investments
Debt securities	58,528		52,974
Operating segments | US | Non-linked shareholder-backed | Other
Financial investments
Debt securities	11,361		9,120
Operating segments | US | Non-linked shareholder-backed | Other | NAIC 1
Financial investments
Debt securities	7,797		6,376
Operating segments | US | Non-linked shareholder-backed | Other | NAIC 2
Financial investments
Debt securities	3,471		2,697
Operating segments | US | Non-linked shareholder-backed | Other | NAIC 3-6
Financial investments
Debt securities	93		47
Operating segments | US | Non-linked shareholder-backed | Other | Mortgage-backed securities
Financial investments
Debt securities	3,370
Operating segments | US | Non-linked shareholder-backed | Other | Mortgage-backed securities | NAIC 1
Financial investments
Debt securities	3,367
Operating segments | US | Non-linked shareholder-backed | Other | Mortgage-backed securities | NAIC 2
Financial investments
Debt securities	1
Operating segments | US | Non-linked shareholder-backed | Other | Mortgage-backed securities | NAIC 3-6
Financial investments
Debt securities	2
Operating segments | US | Non-linked shareholder-backed | Other | Mortgage-backed securities | Investment grade
Financial investments
Debt securities	3,180
Operating segments | US | Non-linked shareholder-backed | Other | Other securities
Financial investments
Debt securities	7,991
Operating segments | US | Non-linked shareholder-backed | Other | Other securities | NAIC 1
Financial investments
Debt securities	4,430
Operating segments | US | Non-linked shareholder-backed | Other | Other securities | NAIC 2
Financial investments
Debt securities	3,470
Operating segments | US | Non-linked shareholder-backed | Other | Other securities | NAIC 3-6
Financial investments
Debt securities	91
Operating segments | US | Non-linked shareholder-backed | Other | Other securities | NAIC 1 or 2
Financial investments
Debt securities	7,900
Operating segments | US | Non-linked shareholder-backed | AAA
Financial investments
Debt securities	1,154		864
Operating segments | US | Non-linked shareholder-backed | AA+ to AA-
Financial investments
Debt securities	10,300		9,403
Operating segments | US | Non-linked shareholder-backed | A+ to A-
Financial investments
Debt securities	15,229		13,100
Operating segments | US | Non-linked shareholder-backed | BBB+ to BBB-
Financial investments
Debt securities	$ 18,489		$ 18,667
[1]	Included within equity securities and holdings in collective investment schemes, debt securities and other investments are $90 million of lent securities as at 31 December 2019 (31 December 2018: $10,543 million, of which $107 million were from continuing operations).
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Debt securities - US operations

Debt securities - US operations (Details) - USD ($) $ in Millions	Dec. 31, 2019		Dec. 31, 2018
Financial investments
Debt securities	$ 134,570	[1],[2]	$ 113,860
Operating segments | US
Financial investments
Debt securities	58,528		52,974
Operating segments | US | Available-for-sale
Financial investments
Debt securities	57,091		52,025
Operating segments | US | Fair value through profit or loss
Financial investments
Debt securities	1,437		949
Operating segments | US | Government
Financial investments
Debt securities	7,890		6,960
Operating segments | US | Publicly traded and SEC rule 144A securities
Financial investments
Debt securities	34,781		33,363
Operating segments | US | Non-SEC Rule 144A securities
Financial investments
Debt securities	9,842		8,061
Operating segments | US | Asset-backed securities
Financial investments
Debt securities	$ 6,015		$ 4,590
[1]	Included within equity securities and holdings in collective investment schemes, debt securities and other investments are $90 million of lent securities as at 31 December 2019 (31 December 2018: $10,543 million, of which $107 million were from continuing operations).
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Debt securities - Movements in

Debt securities - Movements in unrealised gains and losses (Details) - Jackson (US insurance operations) - Debt securities $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Available-for-sale securities
Available-for-sale debt securities at beginning of period	$ 52,025
Available-for-sale debt securities at end of period	57,091
Cost/Gross amount
Available-for-sale securities
Available-for-sale debt securities at beginning of period	52,552
Available-for-sale debt securities at end of period	53,595
Unrealised gain (loss)
Available-for-sale securities
Available-for-sale debt securities at beginning of period	(527)
Changes in unrealised appreciation reflected as part of movement in other comprehensive income	4,023
Available-for-sale debt securities at end of period	3,496
Assets fair valued at below book value
Available-for-sale securities
Available-for-sale debt securities at beginning of period	31,082
Available-for-sale debt securities at end of period	3,094
Assets fair valued at below book value | Cost/Gross amount
Available-for-sale securities
Available-for-sale debt securities at beginning of period	32,260
Available-for-sale debt securities at end of period	3,121
Assets fair valued at below book value | Unrealised gain (loss)
Available-for-sale securities
Available-for-sale debt securities at beginning of period	(1,178)
Changes in unrealised appreciation reflected as part of movement in other comprehensive income	1,151
Available-for-sale debt securities at end of period	(27)
Assets fair valued at or above book value
Available-for-sale securities
Available-for-sale debt securities at beginning of period	20,943
Available-for-sale debt securities at end of period	53,997
Assets fair valued at or above book value | Cost/Gross amount
Available-for-sale securities
Available-for-sale debt securities at beginning of period	20,292
Available-for-sale debt securities at end of period	50,474
Assets fair valued at or above book value | Unrealised gain (loss)
Available-for-sale securities
Available-for-sale debt securities at beginning of period	651
Changes in unrealised appreciation reflected as part of movement in other comprehensive income	2,872
Available-for-sale debt securities at end of period	$ 3,523

Debt securities - Unrealised lo

Debt securities - Unrealised loss positions (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale securities
Unrealised loss	$ (27)	$ (1,178)
Jackson (US insurance operations) | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale	57,091	52,025
Jackson (US insurance operations) | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Financial assets classified as available-for-sale	3,496	(527)
Jackson (US insurance operations) | Between 90% and 100% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale	3,083	30,136
Unrealised loss	(25)	(1,030)
Jackson (US insurance operations) | Between 80% and 90% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale	11	900
Unrealised loss	(2)	(132)
Jackson (US insurance operations) | Below 80%
Available-for-sale securities
Financial assets classified as available-for-sale		46
Unrealised loss		(16)
Jackson (US insurance operations) | Assets fair valued at below book value | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale	3,094	31,082
Unrealised loss	(27)	(1,178)
Jackson (US insurance operations) | Assets fair valued at below book value | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Financial assets classified as available-for-sale	(27)	(1,178)
Unrealised loss	(27)	(1,178)
Jackson (US insurance operations) | Assets fair valued at below book value | Non-investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(2)	(69)
Jackson (US insurance operations) | Assets fair valued at below book value | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(25)	(1,109)
Jackson (US insurance operations) | Assets fair valued at below book value | 1 to 5 years | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Unrealised loss	(1)	(92)
Jackson (US insurance operations) | Assets fair valued at below book value | 5 years to 10 years | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Unrealised loss	(12)	(555)
Jackson (US insurance operations) | Assets fair valued at below book value | More than 10 years | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Unrealised loss	(7)	(474)
Jackson (US insurance operations) | Assets fair valued at below book value | Mortgage-backed and other debt securities | Debt securities | Unrealised gain (loss)
Available-for-sale securities
Unrealised loss	(7)	(57)
Jackson (US insurance operations) | Assets fair valued at below book value | Below 80% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale		46
Unrealised loss		(16)
Jackson (US insurance operations) | Less than 6 months | Debt securities
Available-for-sale securities
Unrealised loss	(21)	(205)
Jackson (US insurance operations) | Less than 6 months | Non-investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(26)
Jackson (US insurance operations) | Less than 6 months | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(20)	(179)
Jackson (US insurance operations) | 6 months to 1 year | Debt securities
Available-for-sale securities
Unrealised loss	(2)	(588)
Jackson (US insurance operations) | 6 months to 1 year | Non-investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(28)
Jackson (US insurance operations) | 6 months to 1 year | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(560)
Jackson (US insurance operations) | 1 year to 2 years | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(194)
Jackson (US insurance operations) | 1 year to 2 years | Non-investment grade | Debt securities
Available-for-sale securities
Unrealised loss		(13)
Jackson (US insurance operations) | 1 year to 2 years | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(181)
Jackson (US insurance operations) | 2 years to 3 years | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(157)
Jackson (US insurance operations) | 2 years to 3 years | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	(1)	(157)
Jackson (US insurance operations) | More than 3 years | Debt securities
Available-for-sale securities
Unrealised loss	(2)	(34)
Jackson (US insurance operations) | More than 3 years | Non-investment grade | Debt securities
Available-for-sale securities
Unrealised loss		(2)
Jackson (US insurance operations) | More than 3 years | Investment grade | Debt securities
Available-for-sale securities
Unrealised loss	$ (2)	(32)
Jackson (US insurance operations) | Less than 3 months | Below 80% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale		41
Unrealised loss		(13)
Jackson (US insurance operations) | 3 months to 6 months | Below 80% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale		2
Unrealised loss		(1)
Jackson (US insurance operations) | More than 6 months | Below 80% | Debt securities
Available-for-sale securities
Financial assets classified as available-for-sale		3
Unrealised loss		$ (2)

Debt securities - Asset-backed

Debt securities - Asset-backed securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Financial investments
Asset-backed securities	$ 6,573	$ 5,609
Continuing and discontinued operations
Financial investments
Asset-backed securities	$ 6,573	14,112
UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Asset-backed securities		$ 8,503
Operating segments | Asia | Investment grade
Financial investments
Percentage for credit rating category	100.00%	99.80%
Shareholder-backed | RMBS Sub-prime | AAA | US
Financial investments
Percentage for credit rating category	2.00%
Shareholder-backed | RMBS Sub-prime | AA | US
Financial investments
Percentage for credit rating category	3.00%
Shareholder-backed | RMBS Sub-prime | A | US
Financial investments
Percentage for credit rating category	3.00%
Shareholder-backed | Alt-A | A | US
Financial investments
Percentage for credit rating category	51.00%
Shareholder-backed | Prime including agency | AAA | US
Financial investments
Percentage for credit rating category	23.00%
Shareholder-backed | Prime including agency | AA | US
Financial investments
Percentage for credit rating category	61.00%
Shareholder-backed | Prime including agency | A | US
Financial investments
Percentage for credit rating category	10.00%
Shareholder-backed | CMBS | AAA | US
Financial investments
Percentage for credit rating category	76.00%
Shareholder-backed | CMBS | AA | US
Financial investments
Percentage for credit rating category	16.00%
Shareholder-backed | CMBS | A | US
Financial investments
Percentage for credit rating category	4.00%
Shareholder-backed | CDO funds | AAA | US
Financial investments
Percentage for credit rating category	46.00%
Shareholder-backed | CDO funds | AA | US
Financial investments
Percentage for credit rating category	38.00%
Shareholder-backed | CDO funds | A | US
Financial investments
Percentage for credit rating category	16.00%
Shareholder-backed | Other asset-backed securities | AAA | US
Financial investments
Percentage for credit rating category	16.00%
Shareholder-backed | Other asset-backed securities | AA | US
Financial investments
Percentage for credit rating category	11.00%
Shareholder-backed | Other asset-backed securities | A | US
Financial investments
Percentage for credit rating category	54.00%
Shareholder-backed | Operating segments | Asia
Financial investments
Asset-backed securities	$ 189	$ 154
Shareholder-backed | Operating segments | US
Financial investments
Asset-backed securities	$ 6,015	4,590
Shareholder-backed | Operating segments | AAA | US
Financial investments
Percentage for credit rating category	50.00%
Shareholder-backed | Operating segments | AA | US
Financial investments
Percentage for credit rating category	24.00%
Shareholder-backed | Operating segments | A | US
Financial investments
Percentage for credit rating category	17.00%
Shareholder-backed | Operating segments | RMBS Sub-prime | US
Financial investments
Asset-backed securities	$ 93	122
Shareholder-backed | Operating segments | Alt-A | US
Financial investments
Asset-backed securities	116	134
Shareholder-backed | Operating segments | Prime including agency | US
Financial investments
Asset-backed securities	862	562
Shareholder-backed | Operating segments | CMBS | US
Financial investments
Asset-backed securities	3,080	2,477
Shareholder-backed | Operating segments | CDO funds | US
Financial investments
Asset-backed securities	696	17
Shareholder-backed | Operating segments | Other asset-backed securities | US
Financial investments
Asset-backed securities	1,168	1,278
Shareholder-backed | Operating segments | Other asset-backed securities | US | Sub-prime
Financial investments
Asset-backed securities	84
Shareholder-backed | Unallocated to a segment (other operations)
Financial investments
Asset-backed securities		566
With-profits | Operating segments | Asia
Financial investments
Asset-backed securities	$ 369	$ 299

Debt securities - Group soverei

Debt securities - Group sovereign debt and bank debt exposure (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Shareholder-backed
Financial investments
Sovereign debt exposure		$ 14,848
Bank debt instruments held		5,910
Shareholder-backed | Group's treasury function, Africa operations and asset management operations
Financial investments
Sovereign debt exposure	$ 1,400
Shareholder-backed | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	17,972	18,331
Bank debt instruments held	5,834	7,294
Shareholder-backed | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Sovereign debt exposure		3,483
Bank debt instruments held		1,384
Shareholder-backed | Senior debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	4,917
Shareholder-backed | Subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	917
Shareholder-backed | Tier 1 subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	189
Shareholder-backed | Tier 2 subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	728
Shareholder-backed | Eurozone
Financial investments
Bank debt instruments held	337
Shareholder-backed | Eurozone | Continuing and discontinued operations
Financial investments
Sovereign debt exposure		481
Bank debt instruments held		608
Shareholder-backed | Eurozone | Senior debt
Financial investments
Bank debt instruments held	310
Shareholder-backed | Eurozone | Subordinated debt
Financial investments
Bank debt instruments held	27
Shareholder-backed | Eurozone | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	27
Shareholder-backed | UK
Financial investments
Bank debt instruments held	723
Shareholder-backed | UK | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	615	4,109
Bank debt instruments held		1,714
Shareholder-backed | UK | Senior debt
Financial investments
Bank debt instruments held	568
Shareholder-backed | UK | Subordinated debt
Financial investments
Bank debt instruments held	155
Shareholder-backed | UK | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	17
Shareholder-backed | UK | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	138
Shareholder-backed | US
Financial investments
Bank debt instruments held	3,134
Shareholder-backed | US | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	9,526	7,192
Bank debt instruments held		3,397
Shareholder-backed | US | Senior debt
Financial investments
Bank debt instruments held	3,084
Shareholder-backed | US | Subordinated debt
Financial investments
Bank debt instruments held	50
Shareholder-backed | US | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	7
Shareholder-backed | US | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	43
Shareholder-backed | Asia
Financial investments
Bank debt instruments held	993
Shareholder-backed | Asia | Continuing and discontinued operations
Financial investments
Bank debt instruments held		754
Shareholder-backed | Asia | Senior debt
Financial investments
Bank debt instruments held	439
Shareholder-backed | Asia | Subordinated debt
Financial investments
Bank debt instruments held	554
Shareholder-backed | Asia | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	165
Shareholder-backed | Asia | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	389
Shareholder-backed | Indonesia | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	420	359
Shareholder-backed | Singapore | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	230	209
Shareholder-backed | Thailand | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	1,416	1,173
Shareholder-backed | Vietnam | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	2,900	2,383
Shareholder-backed | Other Asia | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	2,722	2,266
Shareholder-backed | Other
Financial investments
Bank debt instruments held	647
Shareholder-backed | Other | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	143	159
Bank debt instruments held		821
Shareholder-backed | Other | Senior debt
Financial investments
Bank debt instruments held	516
Shareholder-backed | Other | Subordinated debt
Financial investments
Bank debt instruments held	131
Shareholder-backed | Other | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	131
With-profits
Financial investments
Sovereign debt exposure		16,740
Bank debt instruments held		1,639
With-profits | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	24,446	22,996
Bank debt instruments held	1,734	11,112
With-profits | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Sovereign debt exposure		6,256
Bank debt instruments held		9,473
With-profits | Senior debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	480
With-profits | Subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	1,254
With-profits | Tier 1 subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	483
With-profits | Tier 2 subordinated debt | Continuing and discontinued operations
Financial investments
Bank debt instruments held	771
With-profits | Eurozone
Financial investments
Bank debt instruments held	131
With-profits | Eurozone | Continuing and discontinued operations
Financial investments
Sovereign debt exposure		560
Bank debt instruments held		1,243
With-profits | Eurozone | Senior debt
Financial investments
Bank debt instruments held	29
With-profits | Eurozone | Subordinated debt
Financial investments
Bank debt instruments held	102
With-profits | Eurozone | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	102
With-profits | UK
Financial investments
Bank debt instruments held	155
With-profits | UK | Continuing and discontinued operations
Financial investments
Sovereign debt exposure		3,837
Bank debt instruments held		2,794
With-profits | UK | Senior debt
Financial investments
Bank debt instruments held	41
With-profits | UK | Subordinated debt
Financial investments
Bank debt instruments held	114
With-profits | UK | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	3
With-profits | UK | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	111
With-profits | US
Financial investments
Bank debt instruments held	34
With-profits | US | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	20,338	15,102
Bank debt instruments held		3,477
With-profits | US | Senior debt
Financial investments
Bank debt instruments held	30
With-profits | US | Subordinated debt
Financial investments
Bank debt instruments held	4
With-profits | US | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	1
With-profits | US | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	3
With-profits | Asia
Financial investments
Bank debt instruments held	1,130
With-profits | Asia | Continuing and discontinued operations
Financial investments
Bank debt instruments held		1,293
With-profits | Asia | Senior debt
Financial investments
Bank debt instruments held	307
With-profits | Asia | Subordinated debt
Financial investments
Bank debt instruments held	823
With-profits | Asia | Tier 1 subordinated debt
Financial investments
Bank debt instruments held	479
With-profits | Asia | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	344
With-profits | Singapore | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	3,514	2,112
With-profits | Other Asia | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	562	1,103
With-profits | Other
Financial investments
Bank debt instruments held	284
With-profits | Other | Continuing and discontinued operations
Financial investments
Sovereign debt exposure	32	282
Bank debt instruments held		$ 2,305
With-profits | Other | Senior debt
Financial investments
Bank debt instruments held	73
With-profits | Other | Subordinated debt
Financial investments
Bank debt instruments held	211
With-profits | Other | Tier 2 subordinated debt
Financial investments
Bank debt instruments held	$ 211

Debt securities - Impairment of

Debt securities - Impairment of US available-for-sale debt securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financial investments
Realised gross losses on sales of available-for-sale securities	$ 70	$ 55
Percentage of realised gross losses related to top 10 individual issuers	51.00%	49.00%
Unrealised loss	$ 27	$ 1,178
Impaired financial assets
Financial investments
Net credit for impairment net of reversals	17	19
Impaired and deteriorating financial assets
Financial investments
Realised gross losses on sales of available-for-sale securities	$ 28	$ 6

Loans portfolio - Components (D

Loans portfolio - Components (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Financial investments
Loans		$ 16,583	[1]	$ 15,849
UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Loans				7,089
Continuing and discontinued operations
Financial investments
Loans	[1],[2]			22,938	$ 23,054
Mortgage loans
Financial investments
Loans		10,069		9,605
Mortgage loans | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Loans				5,241
Mortgage loans | Continuing and discontinued operations
Financial investments
Loans				14,846
Policy loans
Financial investments
Loans		6,121		5,902
Policy loans | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Loans				4
Policy loans | Continuing and discontinued operations
Financial investments
Loans				5,906
Other loans
Financial investments
Loans		393		342
Other loans | UK & Europe Discontinued Operations (M&G Prudential)
Financial investments
Loans				1,844
Other loans | Continuing and discontinued operations
Financial investments
Loans				2,186
Jackson (US insurance operations) | Mortgage loans | Average
Financial investments
Loans		$ 19.3		$ 17.8
Estimated loan to value (as a percent)		54.00%		53.00%
Operating segments | Asia | With-profits
Financial investments
Loans		$ 1,463		$ 1,009
Operating segments | Asia | With-profits | Policy loans
Financial investments
Loans		1,089		926
Operating segments | Asia | With-profits | Other loans
Financial investments
Loans		374		83
Operating segments | Asia | Non-linked shareholder-backed
Financial investments
Loans		500		746
Operating segments | Asia | Non-linked shareholder-backed | Mortgage loans
Financial investments
Loans		165		199
Operating segments | Asia | Non-linked shareholder-backed | Policy loans
Financial investments
Loans		316		288
Operating segments | Asia | Non-linked shareholder-backed | Other loans
Financial investments
Loans		19		259
Operating segments | US | Non-linked shareholder-backed
Financial investments
Loans		14,611		14,094
Operating segments | US | Non-linked shareholder-backed | Mortgage loans
Financial investments
Loans		9,904		9,406
Operating segments | US | Non-linked shareholder-backed | Policy loans
Financial investments
Loans		4,707		4,688
Accounted for at fair value through profit or loss		3,587		$ 3,544
Unallocated to a segment (other operations)
Financial investments
Loans		9
Unallocated to a segment (other operations) | Policy loans
Financial investments
Loans		$ 9
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Financial instruments - addit_3

Financial instruments - additional information - Maturity of financial liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	$ 37,626	$ 32,839
Contractual maturities	39,918	44,324
Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	5,594
Contractual maturities	6,512
Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	630
Contractual maturities	702
Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	2,015
Contractual maturities	2,495
Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	8,901
Contractual maturities	9,723
Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	14,488
Contractual maturities	14,488
Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value	5,998
Contractual maturities	5,998
Expected to be settled within one year
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	18,428	12,284
Expected to be settled within one year | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	105
Expected to be settled within one year | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	145
Expected to be settled within one year | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	941
Expected to be settled within one year | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	2,067
Expected to be settled within one year | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	9,172
Expected to be settled within one year | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	5,998
1 to 5 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	7,834	7,479
1 to 5 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1,146
1 to 5 years | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	388
1 to 5 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	188
1 to 5 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	5,476
1 to 5 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	636
5 years to 10 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	3,136	4,167
5 years to 10 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	888
5 years to 10 years | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	113
5 years to 10 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	232
5 years to 10 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1,902
5 years to 10 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1
After 10 years to 15 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	2,095	2,636
After 10 years to 15 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	648
After 10 years to 15 years | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	37
After 10 years to 15 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1,132
After 10 years to 15 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	278
After 15 years to 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	268	1,363
After 15 years to 20 years | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	18
After 15 years to 20 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	2
After 15 years to 20 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	248
Over 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1	8,412
Over 20 years | Lease liabilities under IFRS 16
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	1
No stated maturity
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	8,156	7,983
No stated maturity | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	3,725
No stated maturity | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities	$ 4,431
UK & Europe Discontinued Operations (M&G Prudential)
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		26,372
Contractual maturities		28,220
UK & Europe Discontinued Operations (M&G Prudential) | Expected to be settled within one year
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		21,157
UK & Europe Discontinued Operations (M&G Prudential) | 1 to 5 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,971
UK & Europe Discontinued Operations (M&G Prudential) | 5 years to 10 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,000
UK & Europe Discontinued Operations (M&G Prudential) | After 10 years to 15 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		464
UK & Europe Discontinued Operations (M&G Prudential) | After 15 years to 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		319
UK & Europe Discontinued Operations (M&G Prudential) | Over 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		3,064
UK & Europe Discontinued Operations (M&G Prudential) | No stated maturity
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		245
Continuing and discontinued operations
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		59,211
Contractual maturities		72,544
Continuing and discontinued operations | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		9,761
Contractual maturities		20,370
Continuing and discontinued operations | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		6,289
Contractual maturities		7,853
Continuing and discontinued operations | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		8,901
Contractual maturities		9,778
Continuing and discontinued operations | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		19,421
Contractual maturities		19,704
Continuing and discontinued operations | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Carrying value		14,839
Contractual maturities		14,839
Continuing and discontinued operations | Expected to be settled within one year
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		33,441
Continuing and discontinued operations | Expected to be settled within one year | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		380
Continuing and discontinued operations | Expected to be settled within one year | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,961
Continuing and discontinued operations | Expected to be settled within one year | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		2,450
Continuing and discontinued operations | Expected to be settled within one year | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		13,811
Continuing and discontinued operations | Expected to be settled within one year | Net asset value attributable to unit holders of consolidated unit trusts and similar funds
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		14,839
Continuing and discontinued operations | 1 to 5 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		9,450
Continuing and discontinued operations | 1 to 5 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		2,240
Continuing and discontinued operations | 1 to 5 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,703
Continuing and discontinued operations | 1 to 5 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		4,908
Continuing and discontinued operations | 1 to 5 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		599
Continuing and discontinued operations | 5 years to 10 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		5,167
Continuing and discontinued operations | 5 years to 10 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,944
Continuing and discontinued operations | 5 years to 10 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,002
Continuing and discontinued operations | 5 years to 10 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		2,131
Continuing and discontinued operations | 5 years to 10 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		90
Continuing and discontinued operations | After 10 years to 15 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		3,100
Continuing and discontinued operations | After 10 years to 15 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		2,347
Continuing and discontinued operations | After 10 years to 15 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		349
Continuing and discontinued operations | After 10 years to 15 years | Obligations under funding, securities lending and sale and repurchase agreements
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		289
Continuing and discontinued operations | After 10 years to 15 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		115
Continuing and discontinued operations | After 15 years to 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,682
Continuing and discontinued operations | After 15 years to 20 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		1,363
Continuing and discontinued operations | After 15 years to 20 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		181
Continuing and discontinued operations | After 15 years to 20 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		138
Continuing and discontinued operations | Over 20 years
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		11,476
Continuing and discontinued operations | Over 20 years | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		8,371
Continuing and discontinued operations | Over 20 years | Other operational borrowings
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		2,657
Continuing and discontinued operations | Over 20 years | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		448
Continuing and discontinued operations | No stated maturity
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		8,228
Continuing and discontinued operations | No stated maturity | Core structural borrowings of shareholder-financed businesses
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		3,725
Continuing and discontinued operations | No stated maturity | Accruals, deferred income and other liabilities
Contractual maturities of financial liabilities on an undiscounted cash flow basis
Contractual maturities		$ 4,503

Financial instruments - addit_4

Financial instruments - additional information - Maturity analysis of derivatives (Details) - USD ($) $ in Millions	Dec. 31, 2019		Dec. 31, 2018
Maturity analysis of derivatives
Derivative assets	$ 1,745	[1]	$ 4,450
Derivative liabilities	(392)	[1]	(4,465)
Net derivative position	1,353		(15)
Maturity profile of net derivative position	1,353		395
Expected to be settled within one year
Maturity analysis of derivatives
Maturity profile of net derivative position	$ 1,353		372
After 1 year to 3 years
Maturity analysis of derivatives
Maturity profile of net derivative position			(10)
After 3 years to 5 years
Maturity analysis of derivatives
Maturity profile of net derivative position			(5)
Over 5 years
Maturity analysis of derivatives
Maturity profile of net derivative position			$ 38
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Financial instruments - addit_5

Financial instruments - additional information - Maturity analysis of investment contracts (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Investment contract liabilities	$ 5,535	$ 5,142
Policyholder Liabilities Amount	385,678
Continuing and discontinued operations
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Investment contract liabilities		110,339	$ 112,378
Policyholder Liabilities Amount		521,286
Investment contracts
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	22,755	19,114
Investment contracts | Expected to be settled within one year
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	1,557	1,409
Investment contracts | 1 to 5 years
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	5,197	4,779
Investment contracts | 5 years to 10 years
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	3,866	3,352
Investment contracts | After 10 years to 15 years
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	3,049	2,487
Investment contracts | After 15 years to 20 years
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	3,196	2,830
Investment contracts | Over 20 years
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments
Undiscounted value	$ 5,890	$ 4,257

Financial instruments - addit_6

Financial instruments - additional information - Credit risk (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Credit risk
Financial assets not past due or impaired due to renegotiation of terms	$ 0	$ 29
Past due date but not impaired
Credit risk
Loans and receivables	7	18
Past due date but not impaired | Less than one year past due date
Credit risk
Loans and receivables	$ 1	$ 11

Financial instruments - addit_7

Financial instruments - additional information - Foreign exchange risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Foreign exchange risk
Amount of exchange gain (loss) recognised	$ 72	$ 88	$ 17
Foreign exchange risk
Foreign exchange risk
Percentage of financial assets in other than functional currencies	8.00%
Percentage of financial liabilities in other than functional currencies	25.00%

Financial instruments - addit_8

Financial instruments - additional information - Derivatives and hedging (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Net investment hedge | Subordinated capital securities
Derivatives and hedging
Notional amount	$ 3,700	$ 3,700
Foreign exchange gain (loss) recognised in shareholders' equity	$ (150)	$ (266)
Effectiveness of hedging	100.00%
Cash flow hedges
Derivatives and hedging
Notional amount	$ 0
Fair value hedges
Derivatives and hedging
Notional amount	$ 0

Financial instruments - addit_9

Financial instruments - additional information - Derecognition and collateral (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Securities lending and reverse repurchase agreements
Lent securities and assets subject to repurchase	$ 90	$ 107
Cash and securities collateral held or pledged under repurchase and securities lending agreements	95	112
Collateral held in respect of reverse repurchase agreements	1,011	3,039
Credit risk, over-the-counter derivative transactions
Collateral and pledges
Amount of assets pledged as collateral for liabilities	1,301	2,896
Amount of collateral held	1,883	810
Sale of collateral held	0	0
Collateral re-pledged	0	5
Credit risk, funding agreements and other transactions
Collateral and pledges
Amount of assets pledged as collateral for liabilities	$ 3,299	$ 3,053

Financial instruments - addi_10

Financial instruments - additional information - Offsetting assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position	$ 2,661	$ 3,709
Financial assets, financial instruments not offset in the consolidated statement of financial position	(115)	(308)
Financial assets, cash collateral not offset in the consolidated statement of financial position	(901)	(435)
Financial assets, securities collateral not offset in the consolidated statement of financial position	(1,571)	(2,947)
Net amount of financial assets	74	19
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position	(264)	(1,637)
Financial liabilities, financial instruments not offset in the consolidated statement of financial position	115	308
Financial liabilities, cash collateral not offset in the consolidated statement of financial position	134	86
Financial liabilities, securities collateral not offset in the consolidated statement of financial position		1,095
Net amount of financial liabilities	(15)	(148)
Continuing and discontinued operations
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position		18,883
Financial assets, financial instruments not offset in the consolidated statement of financial position		(1,606)
Financial assets, cash collateral not offset in the consolidated statement of financial position		(2,149)
Financial assets, securities collateral not offset in the consolidated statement of financial position		(14,993)
Net amount of financial assets		135
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position		(5,664)
Financial liabilities, financial instruments not offset in the consolidated statement of financial position		1,606
Financial liabilities, cash collateral not offset in the consolidated statement of financial position		948
Financial liabilities, securities collateral not offset in the consolidated statement of financial position		2,881
Net amount of financial liabilities		(229)
UK & Europe Discontinued Operations (M&G Prudential)
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position		15,174
Financial assets, financial instruments not offset in the consolidated statement of financial position		(1,298)
Financial assets, cash collateral not offset in the consolidated statement of financial position		(1,714)
Financial assets, securities collateral not offset in the consolidated statement of financial position		(12,046)
Net amount of financial assets		116
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position		(4,027)
Financial liabilities, financial instruments not offset in the consolidated statement of financial position		1,298
Financial liabilities, cash collateral not offset in the consolidated statement of financial position		862
Financial liabilities, securities collateral not offset in the consolidated statement of financial position		1,786
Net amount of financial liabilities		(81)
Derivative liabilities
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position	(216)
Financial liabilities, financial instruments not offset in the consolidated statement of financial position	115
Financial liabilities, cash collateral not offset in the consolidated statement of financial position	86
Net amount of financial liabilities	(15)
Derivative liabilities | Continuing and discontinued operations
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position		(4,062)
Financial liabilities, financial instruments not offset in the consolidated statement of financial position		1,606
Financial liabilities, cash collateral not offset in the consolidated statement of financial position		905
Financial liabilities, securities collateral not offset in the consolidated statement of financial position		1,346
Net amount of financial liabilities		(205)
Securities lending and repurchase agreements
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position	(48)
Financial liabilities, cash collateral not offset in the consolidated statement of financial position	48
Securities lending and repurchase agreements | Continuing and discontinued operations
Financial liabilities:
Financial liabilities, gross amount included in the consolidated statement of financial position		(1,602)
Financial liabilities, cash collateral not offset in the consolidated statement of financial position		43
Financial liabilities, securities collateral not offset in the consolidated statement of financial position		1,535
Net amount of financial liabilities		(24)
Derivative assets
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position	1,708
Financial assets, financial instruments not offset in the consolidated statement of financial position	(115)
Financial assets, cash collateral not offset in the consolidated statement of financial position	(901)
Financial assets, securities collateral not offset in the consolidated statement of financial position	(618)
Net amount of financial assets	74
Derivative assets | Continuing and discontinued operations
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position		4,112
Financial assets, financial instruments not offset in the consolidated statement of financial position		(1,606)
Financial assets, cash collateral not offset in the consolidated statement of financial position		(2,149)
Financial assets, securities collateral not offset in the consolidated statement of financial position		(211)
Net amount of financial assets		146
Reverse repurchase agreements
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position	953
Financial assets, securities collateral not offset in the consolidated statement of financial position	$ (953)
Reverse repurchase agreements | Continuing and discontinued operations
Financial assets:
Financial assets, gross amount included in the consolidated statement of financial position		14,771
Financial assets, securities collateral not offset in the consolidated statement of financial position		(14,782)
Net amount of financial assets		$ (11)

Policyholder liabilities and _3

Policyholder liabilities and unallocated surplus - Analysis of movements (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		$ 385,678
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1]	4,750
Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Premiums		41,070
Surrenders		(21,498)
Maturities/deaths		(6,187)
Net flows		13,385
Shareholders' transfers post-tax		(99)
Investment-related items and other movements		45,746
Foreign exchange translation differences		1,299
Demerger of UK and Europe operations		(210,002)
Ending Balance		402,119
Policyholder liabilities on the consolidated statement of financial position		385,492
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750
Group's share of policyholder liabilities of joint ventures and associates		11,877
Average policyholder liability balances		367,980	$ 551,239
Operating segments after elimination of intra-group amounts, before unallocated | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Premiums		31,348
Surrenders		(20,952)
Maturities/deaths		(4,555)
Net flows		5,841
Investment-related items and other movements		37,108
Foreign exchange translation differences		777
Policyholder liabilities		331,811
Policyholder liabilities on the consolidated statement of financial position		319,934
Group's share of policyholder liabilities of joint ventures and associates		11,877
Unallocated to a segment (other operations)
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		50	43
Policyholder liabilities on the consolidated statement of financial position		186	50
Unallocated to a segment (other operations) | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		50
Policyholder liabilities on the consolidated statement of financial position		186	50
Asia insurance operations
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities		93,248
Policyholder liabilities			93,248
Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		105,408	99,890
Policyholder liabilities on the consolidated statement of financial position		91,836	85,089
Unallocated surplus of with-profits funds on the consolidated statement of financial position		3,198	4,700
Group's share of policyholder liabilities of joint ventures and associates		10,374	10,101
Premiums		20,094	17,607
Surrenders		(4,156)	(3,729)
Maturities/deaths		(2,800)	(2,641)
Net flows		13,138	11,237
Shareholders' transfers post-tax		(99)	(87)
Investment-related items and other movements		12,824	(3,718)
Foreign exchange translation differences		1,299	(1,914)
Ending Balance		132,570	105,408
Policyholder liabilities on the consolidated statement of financial position		115,943	91,836
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750	3,198
Group's share of policyholder liabilities of joint ventures and associates		11,877	10,374
Average policyholder liability balances		115,015	98,698
Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities		51,705	50,598
Policyholder liabilities on the consolidated statement of financial position		41,331
Group's share of policyholder liabilities of joint ventures and associates		10,374
Premiums		10,372	9,015
Surrenders		(3,610)	(3,278)
Maturities/deaths		(1,168)	(1,396)
Net flows		5,594	4,341
Investment-related items and other movements		4,186	(1,608)
Foreign exchange translation differences		777	(1,626)
Policyholder liabilities		62,262	51,705
Policyholder liabilities on the consolidated statement of financial position		50,385	41,331
Group's share of policyholder liabilities of joint ventures and associates		11,877	10,374
Asia insurance operations | Deductions for intra-group reinsurance
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		1,412
Policyholder liabilities on the consolidated statement of financial position			1,412
Asia insurance operations | Operations within segments
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		115,943
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		236,380	244,483
Policyholder liabilities on the consolidated statement of financial position		236,380	244,483
Premiums		20,976	18,613
Surrenders		(17,342)	(16,211)
Maturities/deaths		(3,387)	(2,687)
Net flows		247	(285)
Addition for closed block of group payout annuities in the US			5,532
Investment-related items and other movements		32,922	(13,350)
Ending Balance		269,549	236,380
Policyholder liabilities on the consolidated statement of financial position		269,549	236,380
Average policyholder liability balances		252,965	239,049
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities		236,380	244,483
Policyholder liabilities on the consolidated statement of financial position		236,380
Premiums		20,976	18,613
Surrenders		(17,342)	(16,211)
Maturities/deaths		(3,387)	(2,687)
Net flows		247	(285)
Addition for closed block of group payout annuities in the US			5,532
Investment-related items and other movements		32,922	(13,350)
Policyholder liabilities		269,549	236,380
Policyholder liabilities on the consolidated statement of financial position		269,549	236,380
Jackson (US insurance operations) | Operations within segments
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		269,549
UK and Europe insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		210,002	244,946
Policyholder liabilities on the consolidated statement of financial position		193,020	226,715
Unallocated surplus of with-profits funds on the consolidated statement of financial position		16,982	18,231
Reclassification of reinsured UK annuity contracts as held for sale			(14,689)
Premiums			18,707
Surrenders			(9,053)
Maturities/deaths			(9,074)
Net flows			580
Shareholders' transfers post-tax			(346)
Investment-related items and other movements			(7,318)
Foreign exchange translation differences			(13,171)
Demerger of UK and Europe operations		(210,002)
Ending Balance			210,002
Policyholder liabilities on the consolidated statement of financial position			193,020
Unallocated surplus of with-profits funds on the consolidated statement of financial position			16,982
Average policyholder liability balances			213,492
UK and Europe insurance operations | Operating segments after elimination of intra-group amounts, before unallocated | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities		51,911	76,254
Policyholder liabilities on the consolidated statement of financial position		51,911
Reclassification of reinsured UK annuity contracts as held for sale			(14,689)
Premiums			1,984
Surrenders			(2,692)
Maturities/deaths			(2,996)
Net flows			(3,704)
Investment-related items and other movements			(2,637)
Foreign exchange translation differences			(3,313)
Demerger of UK and Europe operations		(51,911)
Policyholder liabilities			51,911
Policyholder liabilities on the consolidated statement of financial position			51,911
Continuing and discontinued operations
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		521,286
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1],[2]	20,180	22,931
Policyholder liabilities on the consolidated statement of financial position			521,286
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1],[2]		20,180
Continuing and discontinued operations | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		551,790	589,319
Policyholder liabilities on the consolidated statement of financial position		521,236	556,287
Unallocated surplus of with-profits funds on the consolidated statement of financial position		20,180	22,931
Group's share of policyholder liabilities of joint ventures and associates		10,374	10,101
Reclassification of reinsured UK annuity contracts as held for sale			(14,689)
Premiums			54,927
Surrenders			(28,993)
Maturities/deaths			(14,402)
Net flows			11,532
Addition for closed block of group payout annuities in the US			5,532
Shareholders' transfers post-tax			(433)
Investment-related items and other movements			(24,386)
Foreign exchange translation differences			(15,085)
Ending Balance			551,790
Policyholder liabilities on the consolidated statement of financial position			521,236
Unallocated surplus of with-profits funds on the consolidated statement of financial position			20,180
Group's share of policyholder liabilities of joint ventures and associates			10,374
Continuing and discontinued operations | Operating segments after elimination of intra-group amounts, before unallocated | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities		339,996	371,335
Policyholder liabilities on the consolidated statement of financial position		329,622
Group's share of policyholder liabilities of joint ventures and associates		10,374
Reclassification of reinsured UK annuity contracts as held for sale			(14,689)
Premiums			29,612
Surrenders			(22,181)
Maturities/deaths			(7,079)
Net flows			352
Addition for closed block of group payout annuities in the US			5,532
Investment-related items and other movements			(17,595)
Foreign exchange translation differences			(4,939)
Demerger of UK and Europe operations		$ (51,911)
Policyholder liabilities			339,996
Policyholder liabilities on the consolidated statement of financial position			329,622
Group's share of policyholder liabilities of joint ventures and associates			$ 10,374
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Policyholder liabilities and _4

Policyholder liabilities and unallocated surplus - Movement in insurance contract liabilities and unallocated surplus (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Income and expense included in the income statement		$ (55,510)		$ 2,450
Insurance contract liabilities at end of period	[1]	(380,143)
Investment contract liabilities at beginning of period		(5,142)
Income and expense included in the income statement		(311)
Other movements		(63)		859
Foreign exchange translation differences		(18)		6,533
Investment contract liabilities at end of period		(5,535)		(5,142)
Income and expense included in the income statement		(1,415)
Other movements		(112)		(51)
Foreign exchange translation differences		(25)		1,081
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1]	(4,750)
Claims outstanding		1,094
Investment contract liabilities with discretionary participation features		633	[1]	85,858
Investment contract liabilities without discretionary participation features		4,902	[1]	24,481
Claims paid		(29,585)		(26,926)
Contract liabilities (before reinsurers' share)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Income and expense included in the income statement		(55,579)
Other movements				13,375
Foreign exchange translation differences		(1,441)		7,621
Insurance contract liabilities at end of period		(380,143)
Reinsurers' share
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Income and expense included in the income statement		1,795
Other movements				(13,375)
Foreign exchange translation differences		37		(793)
Insurance contract liabilities at end of period		13,856
Amount Attributable To Reinsurers		1,190		1,050
Continuing and discontinued operations
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities at beginning of period	[1],[2]	(410,947)		(443,952)
Insurance contract liabilities at end of period	[1],[2]			(410,947)
Investment contract liabilities at beginning of period		(110,339)		(112,378)
Investment contract liabilities at end of period				(110,339)
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1],[2]	(20,180)		(22,931)
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1],[2]			(20,180)
Claims outstanding				1,280
Investment contract liabilities with discretionary participation features	[1],[2]			85,858	$ 84,789
Investment contract liabilities without discretionary participation features	[1],[2]			24,481	$ 27,589
Continuing and discontinued operations | Contract liabilities (before reinsurers' share)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities at beginning of period		(410,947)		(443,952)
Insurance contract liabilities at end of period				(410,947)
Continuing and discontinued operations | Reinsurers' share
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities at beginning of period		14,193		13,086
Insurance contract liabilities at end of period				14,193
UK & Europe Discontinued Operations (M&G Prudential)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Demerger of UK and Europe operations				87,824
Demerger of UK and Europe operations				105,196
Demerger of UK and Europe operations				16,982
UK & Europe Discontinued Operations (M&G Prudential) | Reinsurers' share
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Demerger of UK and Europe operations				(2,169)
Deductions for intra-group reinsurance | UK & Europe Discontinued Operations (M&G Prudential) | Reinsurers' share | With-profits
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities at beginning of period		$ 1,412
Insurance contract liabilities at end of period				$ 1,412
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Policyholder liabilities and _5

Policyholder liabilities and unallocated surplus - Reinsurers' share of insurance contract liabilities (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities		$ 12,762
Claims outstanding		1,094
Total reinsurers' share of insurance contract liabilities		13,856	[1]	$ 12,024
Claims incurred on ceded business		$ 630
UK & Europe Discontinued Operations (M&G Prudential)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Total reinsurers' share of insurance contract liabilities				2,169
Continuing and discontinued operations
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities				12,913
Claims outstanding				1,280
Total reinsurers' share of insurance contract liabilities	[1],[2]			$ 14,193	$ 13,086
Standard & Poor's rating A- and above
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Percentage of ceded insurance contract liabilities per credit rating of reinsurer		97.00%		95.00%
Asia insurance operations
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Net commission on ceded business		$ 355		$ 294
Claims incurred on ceded business		552		362
Remaining unamortised gains (losses) arising on buying reinsurance		$ 0		0
Jackson (US insurance operations)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Percentage of reinsurance agreement coverage		100.00%
Net commission on ceded business		$ 20		9
Claims incurred on ceded business				653
Remaining unamortised gains (losses) arising on buying reinsurance		0		0
Operating segments net of eliminations | Asia insurance operations
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities		5,311
Claims outstanding		147
Total reinsurers' share of insurance contract liabilities		5,458
Operating segments net of eliminations | Jackson (US insurance operations)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities		7,447
Claims outstanding		947
Total reinsurers' share of insurance contract liabilities		8,394
Unallocated to a segment (other operations)
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds
Insurance contract liabilities		4
Total reinsurers' share of insurance contract liabilities		$ 4		$ 2
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Policyholder liabilities and _6

Policyholder liabilities and unallocated surplus - Analysis of movements, Asia (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		$ 385,678
Unallocated surplus of with-profits funds on the consolidated statement of financial position	[1]	4,750
Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Premiums		41,070
Surrenders		(21,498)
Maturities/deaths		(6,187)
Net flows		13,385
Shareholders' transfers post-tax		(99)
Investment-related items and other movements		45,746
Foreign exchange translation differences		1,299
Ending Balance		402,119
Policyholder liabilities on the consolidated statement of financial position		385,492
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750
Group's share of policyholder liabilities of joint ventures and associates		11,877
Average policyholder liability balances		367,980	$ 551,239
Shareholder-backed | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Premiums		31,348
Surrenders		(20,952)
Maturities/deaths		(4,555)
Net flows		5,841
Investment-related items and other movements		37,108
Foreign exchange translation differences		777
Policyholder liabilities on the consolidated statement of financial position		319,934
Group's share of policyholder liabilities of joint ventures and associates		11,877
Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		105,408	99,890
Policyholder liabilities on the consolidated statement of financial position		91,836	85,089
Unallocated surplus of with-profits funds on the consolidated statement of financial position		3,198	4,700
Group's share of policyholder liabilities of joint ventures and associates		10,374	10,101
New business		5,867	4,895
In-force		14,227	12,712
Premiums		20,094	17,607
Surrenders		(4,156)	(3,729)
Maturities/deaths		(2,800)	(2,641)
Net flows		13,138	11,237
Shareholders' transfers post-tax		(99)	(87)
Investment-related items and other movements		12,824	(3,718)
Foreign exchange translation differences		1,299	(1,914)
Ending Balance		132,570	105,408
Policyholder liabilities on the consolidated statement of financial position		115,943	91,836
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750	3,198
Group's share of policyholder liabilities of joint ventures and associates		11,877	10,374
Average policyholder liability balances		115,015	98,698
Asia insurance operations | Deductions for intra-group reinsurance
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		1,412
Policyholder liabilities on the consolidated statement of financial position			1,412
Asia insurance operations | With-profits | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		53,703	49,292
Policyholder liabilities on the consolidated statement of financial position		50,505	44,592
Unallocated surplus of with-profits funds on the consolidated statement of financial position		3,198	4,700
New business		1,611	1,542
In-force		8,111	7,050
Premiums		9,722	8,592
Surrenders		(546)	(451)
Maturities/deaths		(1,632)	(1,245)
Net flows		7,544	6,896
Shareholders' transfers post-tax		(99)	(87)
Investment-related items and other movements		8,638	(2,110)
Foreign exchange translation differences		522	(288)
Ending Balance		70,308	53,703
Policyholder liabilities on the consolidated statement of financial position		65,558	50,505
Unallocated surplus of with-profits funds on the consolidated statement of financial position		4,750	3,198
Average policyholder liability balances		$ 58,032	$ 47,548
Asia insurance operations | Shareholder-backed
Analysis of movements in policyholder liabilities and unallocated surplus
Percentage rate of surrender		7.00%	6.60%
Asia insurance operations | Shareholder-backed | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position		$ 41,331
Group's share of policyholder liabilities of joint ventures and associates		10,374
Premiums		10,372	$ 9,015
Surrenders		(3,610)	(3,278)
Maturities/deaths		(1,168)	(1,396)
Net flows		5,594	4,341
Investment-related items and other movements		4,186	(1,608)
Foreign exchange translation differences		777	(1,626)
Policyholder liabilities on the consolidated statement of financial position		50,385	41,331
Group's share of policyholder liabilities of joint ventures and associates		11,877	10,374
Asia insurance operations | Unit-linked | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		25,704	27,093
Policyholder liabilities on the consolidated statement of financial position		20,846	22,001
Group's share of policyholder liabilities of joint ventures and associates		4,858	5,092
New business		1,837	1,904
In-force		2,361	2,359
Premiums		4,198	4,263
Surrenders		(2,929)	(2,542)
Maturities/deaths		(149)	(187)
Net flows		1,120	1,534
Investment-related items and other movements		1,663	(1,903)
Foreign exchange translation differences		363	(1,020)
Ending Balance		28,850	25,704
Policyholder liabilities on the consolidated statement of financial position		23,571	20,846
Group's share of policyholder liabilities of joint ventures and associates		5,279	4,858
Average policyholder liability balances		27,277	26,398
Asia insurance operations | Other business | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Beginning Balance		26,001	23,505
Policyholder liabilities on the consolidated statement of financial position		20,485	18,496
Group's share of policyholder liabilities of joint ventures and associates		5,516	5,009
New business		2,419	1,449
In-force		3,755	3,303
Premiums		6,174	4,752
Surrenders		(681)	(736)
Maturities/deaths		(1,019)	(1,209)
Net flows		4,474	2,807
Investment-related items and other movements		2,523	295
Foreign exchange translation differences		414	(606)
Ending Balance		33,412	26,001
Policyholder liabilities on the consolidated statement of financial position		26,814	20,485
Group's share of policyholder liabilities of joint ventures and associates		6,598	5,516
Average policyholder liability balances		$ 29,706	$ 24,752
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Policyholder liabilities and _7

Policyholder liabilities and unallocated surplus - Asia liabilities by duration (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities
Policyholder liabilities	$ 385,678
Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities	385,492
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations
Liabilities
Policyholder liabilities	$ 115,943	$ 91,836	$ 85,089
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | 0 to 5 years
Liabilities
Percentage of policyholder liabilities	18.00%	20.00%
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | 5 years to 10 years
Liabilities
Percentage of policyholder liabilities	18.00%	19.00%
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | After 10 years to 15 years
Liabilities
Percentage of policyholder liabilities	15.00%	15.00%
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | After 15 years to 20 years
Liabilities
Percentage of policyholder liabilities	13.00%	12.00%
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | 20 to 25 years
Liabilities
Percentage of policyholder liabilities	11.00%	10.00%
Operating segments after elimination of intra-group amounts, before unallocated | Asia insurance operations | Over 25 years
Liabilities
Percentage of policyholder liabilities	25.00%	24.00%

Policyholder liabilities and _8

Policyholder liabilities and unallocated surplus - Asia liabilities by geographic area (Details) - USD ($) $ in Millions	Dec. 31, 2019		Dec. 31, 2018
Liabilities
Reinsurers' share of insurance contract liabilities	$ 13,856	[1]	$ 12,024
Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Reinsurers' share of insurance contract liabilities	5,458		3,537
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	115,235		91,497
Hong Kong | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	58,800		43,997
Indonesia | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	4,933		4,687
Malaysia | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	7,725		6,937
Singapore | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	27,427		23,121
Taiwan | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	6,801		5,353
Other operations | Asia insurance operations | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures	$ 9,549		$ 7,402
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Policyholder liabilities and _9

Policyholder liabilities and unallocated surplus - Analysis of movements, US (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position	$ 385,678
Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Premiums	41,070
Surrenders	(21,498)
Maturities/deaths	(6,187)
Net flows	13,385
Investment-related items and other movements	45,746
Foreign exchange translation differences	1,299
Policyholder liabilities on the consolidated statement of financial position	385,492
Average policyholder liability balances	367,980	$ 551,239
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position	236,380	244,483
Premiums	20,976	18,613
Surrenders	(17,342)	(16,211)
Maturities/deaths	(3,387)	(2,687)
Net flows	247	(285)
Addition for closed block of group payout annuities in the US		5,532
Investment-related items and other movements	32,922	(13,350)
Policyholder liabilities on the consolidated statement of financial position	269,549	236,380
Average policyholder liability balances	252,965	239,049
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position	163,301	176,578
Premiums	12,776	14,646
Surrenders	(12,767)	(11,746)
Maturities/deaths	(1,564)	(1,449)
Net flows	(1,555)	1,451
Transfers from general to separate account	951	708
Investment-related items and other movements	32,373	(15,436)
Policyholder liabilities on the consolidated statement of financial position	195,070	163,301
Average policyholder liability balances	179,186	169,940
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business
Analysis of movements in policyholder liabilities and unallocated surplus
Policyholder liabilities on the consolidated statement of financial position	73,079	67,905
Premiums	8,200	3,967
Surrenders	(4,575)	(4,465)
Maturities/deaths	(1,823)	(1,238)
Net flows	1,802	(1,736)
Addition for closed block of group payout annuities in the US		5,532
Transfers from general to separate account	(951)	(708)
Investment-related items and other movements	549	2,086
Policyholder liabilities on the consolidated statement of financial position	74,479	73,079
Average policyholder liability balances	$ 73,779	$ 69,109

Policyholder liabilities and_10

Policyholder liabilities and unallocated surplus - US liabilities by duration (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities
Policyholder liabilities	$ 385,678
Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities	385,492
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated
Liabilities
Policyholder liabilities	$ 269,549	$ 236,380	$ 244,483
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | 0 to 5 years
Liabilities
Percentage of policyholder liabilities	42.00%	43.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | 5 years to 10 years
Liabilities
Percentage of policyholder liabilities	27.00%	27.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | After 10 years to 15 years
Liabilities
Percentage of policyholder liabilities	15.00%	15.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | After 15 years to 20 years
Liabilities
Percentage of policyholder liabilities	9.00%	8.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | 20 to 25 years
Liabilities
Percentage of policyholder liabilities	4.00%	4.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Over 25 years
Liabilities
Percentage of policyholder liabilities	3.00%	3.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account
Liabilities
Policyholder liabilities	$ 195,070	$ 163,301	176,578
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | 0 to 5 years
Liabilities
Percentage of policyholder liabilities	41.00%	40.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | 5 years to 10 years
Liabilities
Percentage of policyholder liabilities	27.00%	28.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | After 10 years to 15 years
Liabilities
Percentage of policyholder liabilities	16.00%	16.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | After 15 years to 20 years
Liabilities
Percentage of policyholder liabilities	9.00%	9.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | 20 to 25 years
Liabilities
Percentage of policyholder liabilities	4.00%	4.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Variable annuity separate account | Over 25 years
Liabilities
Percentage of policyholder liabilities	3.00%	3.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business
Liabilities
Policyholder liabilities	$ 74,479	$ 73,079	$ 67,905
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | 0 to 5 years
Liabilities
Percentage of policyholder liabilities	45.00%	51.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | 5 years to 10 years
Liabilities
Percentage of policyholder liabilities	27.00%	24.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | After 10 years to 15 years
Liabilities
Percentage of policyholder liabilities	13.00%	12.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | After 15 years to 20 years
Liabilities
Percentage of policyholder liabilities	8.00%	7.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | 20 to 25 years
Liabilities
Percentage of policyholder liabilities	4.00%	3.00%
Jackson (US insurance operations) | Operating segments after elimination of intra-group amounts, before unallocated | Fixed annuity, GIC and other business | Over 25 years
Liabilities
Percentage of policyholder liabilities	3.00%	3.00%

Policyholder liabilities and_11

Policyholder liabilities and unallocated surplus - Aggregate account values (Details) - Jackson (US insurance operations) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Liabilities
Percentage of account values corresponding to crediting rates that are at minimum guaranteed interest rates	87.00%	87.00%
Fixed annuities and the fixed account portion of variable annuities
Liabilities
Aggregate account value	$ 37,722	$ 35,332
Fixed annuities and the fixed account portion of variable annuities | > 0% - 1.0%
Liabilities
Aggregate account value	6,952	9,660
Fixed annuities and the fixed account portion of variable annuities | > 1.0% - 2.0%
Liabilities
Aggregate account value	12,994	8,646
Fixed annuities and the fixed account portion of variable annuities | > 2.0% - 3.0%
Liabilities
Aggregate account value	13,701	12,832
Fixed annuities and the fixed account portion of variable annuities | > 3.0% - 4.0%
Liabilities
Aggregate account value	1,561	1,623
Fixed annuities and the fixed account portion of variable annuities | > 4.0% - 5.0%
Liabilities
Aggregate account value	2,236	2,285
Fixed annuities and the fixed account portion of variable annuities | > 5.0% - 6.0%
Liabilities
Aggregate account value	278	286
Interest-sensitive life business
Liabilities
Aggregate account value	7,916	8,191
Interest-sensitive life business | > 2.0% - 3.0%
Liabilities
Aggregate account value	270	291
Interest-sensitive life business | > 3.0% - 4.0%
Liabilities
Aggregate account value	3,018	3,049
Interest-sensitive life business | > 4.0% - 5.0%
Liabilities
Aggregate account value	2,597	2,683
Interest-sensitive life business | > 5.0% - 6.0%
Liabilities
Aggregate account value	$ 2,031	$ 2,168

Policyholder liabilities and_12

Policyholder liabilities and unallocated surplus - Products and determining contract liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018
Liabilities
Provisions	$ 466	[1]	$ 427
Group pay-out annuities
Liabilities
Percentage of policy and contract liabilities	2.00%
Variable annuities | Minimum
Liabilities
Surrender charge period (in years)	3 years
Variable annuities | Maximum
Liabilities
Surrender charge period (in years)	9 years
Jackson (US insurance operations) | Fixed interest rate annuities
Liabilities
Percentage of policy and contract liabilities	6.00%		7.00%
Minimum percent of in-force business	90.00%		94.00%
Account value	$ 15,900		$ 16,100
Average guaranteed rate	2.88%		2.91%
Percentage of market value adjustment	65.00%		64.00%
Jackson (US insurance operations) | Fixed interest rate annuities | Minimum
Liabilities
Minimum guaranteed interest rate	1.00%		1.00%
Jackson (US insurance operations) | Fixed interest rate annuities | Maximum
Liabilities
Minimum guaranteed interest rate	5.50%		5.50%
Jackson (US insurance operations) | Fixed index annuities
Liabilities
Percentage of policy and contract liabilities	5.00%		5.00%
Account value	$ 9,800		$ 7,600
Average guaranteed rate	1.46%		1.77%
Jackson (US insurance operations) | Fixed index annuities | Minimum
Liabilities
Minimum guaranteed interest rate	1.00%		1.00%
Jackson (US insurance operations) | Fixed index annuities | Maximum
Liabilities
Minimum guaranteed interest rate	3.00%		3.00%
Jackson (US insurance operations) | Fixed interest accounts of fixed index annuities
Liabilities
Account value	$ 4,300		$ 3,400
Average guaranteed rate	2.75%		2.58%
Jackson (US insurance operations) | Fixed interest accounts of fixed index annuities | Minimum
Liabilities
Minimum guaranteed interest rate	1.00%		1.00%
Jackson (US insurance operations) | Fixed interest accounts of fixed index annuities | Maximum
Liabilities
Minimum guaranteed interest rate	3.00%		3.00%
Jackson (US insurance operations) | Group pay-out annuities
Liabilities
Percentage of policy and contract liabilities			2.00%
Jackson (US insurance operations) | Variable annuities
Liabilities
Percentage of policy and contract liabilities	78.00%		75.00%
Percentage of variable annuity funds	4.00%		5.00%
Mean investment return	7.40%		7.40%
Jackson (US insurance operations) | Variable annuities in fixed accounts
Liabilities
Account value	$ 7,800		$ 8,100
Average guaranteed rate	2.19%		1.70%
Jackson (US insurance operations) | Variable annuities in fixed accounts | Minimum
Liabilities
Minimum guaranteed interest rate	1.00%		1.00%
Jackson (US insurance operations) | Variable annuities in fixed accounts | Maximum
Liabilities
Minimum guaranteed interest rate	3.00%		3.00%
Jackson (US insurance operations) | Life insurance contracts
Liabilities
Percentage of policy and contract liabilities	7.00%		9.00%
Account value	$ 7,900		$ 8,200
Average guaranteed rate	4.68%		4.67%
Jackson (US insurance operations) | Life insurance contracts | Minimum
Liabilities
Minimum guaranteed interest rate	2.50%		2.50%
Jackson (US insurance operations) | Life insurance contracts | Maximum
Liabilities
Minimum guaranteed interest rate	6.00%		6.00%
Jackson (US insurance operations) | Institutional products
Liabilities
Percentage of policy and contract liabilities	1.00%		1.00%
Minimum notice period for funding agreement termination by the policyholder	90 days		90 days
Jackson (US insurance operations) | Institutional products | Minimum
Liabilities
Number of years funding agreements	1 year
Jackson (US insurance operations) | Institutional products | Maximum
Liabilities
Number of years funding agreements	30 years
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Intangible assets - Goodwill re

Intangible assets - Goodwill reconciliation (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Changes in goodwill:
Carrying value at end of year	[1]	$ 969
Continuing and discontinued operations
Changes in goodwill:
Carrying value at beginning of year	[1],[2]	2,365	$ 2,005
Demerger of UK and Europe operations		(1,731)
Additions in the year		299	503
Disposals/reclassifications to held for sale			(13)
Exchange differences		36	(130)
Carrying value at end of year		$ 969	$ 2,365	[1],[2]
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Intangible assets - Impairment

Intangible assets - Impairment testing (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash-generating units
Assumed growth rate	2.25%
Pre-tax discount rate	9.00%
Thanachart Fund Management Co., Ltd.
Cash-generating units
Period of discounted cash flow valuation	10 years
TMB Asset Management Co., Ltd.
Cash-generating units
Period of discounted cash flow valuation	3 years
Assumed growth rate		2.25%
Pre-tax discount rate		9.00%

Intangible assets - Deferred ac

Intangible assets - Deferred acquisition costs and other intangible assets (Details) - USD ($) $ in Millions		Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets	[1]	$ 17,476
Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets		17,476	$ 15,185	[1],[2]	$ 14,896	[1],[2]
Shareholder-backed
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets		17,409	14,865
Shareholder-backed | UK & Europe Discontinued Operations (M&G Prudential)
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets			143
Shareholder-backed | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Deferred acquisition costs		14,239	12,857
Intangible assets other than goodwill		3,170	2,151
Total of deferred acquisition costs and other intangible assets		17,409	15,008		14,700
Shareholder-backed | PVIF | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Intangible assets other than goodwill		38	43
Shareholder-backed | Distribution rights and other intangible assets | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Intangible assets other than goodwill		3,132	2,108
Shareholder-backed | Insurance contracts | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Deferred acquisition costs		14,206	12,758		12,406
Shareholder-backed | Investment contracts | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Deferred acquisition costs		33	99		$ 85
With-profits
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets		67	71
With-profits | UK & Europe Discontinued Operations (M&G Prudential)
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets			106
With-profits | Continuing and discontinued operations
Deferred acquisition costs and other intangible assets
Total of deferred acquisition costs and other intangible assets		$ 67	$ 177
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Intangible assets - Changes in

Intangible assets - Changes in DAC and other intangibles (Details) $ in Millions, $ in Millions		1 Months Ended	12 Months Ended
		Jan. 31, 2019USD ($)installment	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)$ / ₫	Dec. 31, 2019USD ($)$ / ฿	Dec. 31, 2019USD ($)$ / $	Dec. 31, 2019USD ($)$ / RM	Dec. 31, 2019USD ($)$ / Rp	Dec. 31, 2019USD ($)$ / $	Dec. 31, 2019USD ($)$ / £	Dec. 31, 2019USD ($)$ / ¥	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)$ / ₫	Dec. 31, 2018USD ($)$ / ฿	Dec. 31, 2018USD ($)$ / $	Dec. 31, 2018USD ($)$ / RM	Dec. 31, 2018USD ($)$ / Rp	Dec. 31, 2018USD ($)$ / $	Dec. 31, 2018USD ($)$ / £	Dec. 31, 2018USD ($)$ / ¥	Dec. 31, 2018USD ($)		Dec. 31, 2017USD ($)$ / ₫	Dec. 31, 2017USD ($)$ / ฿	Dec. 31, 2017USD ($)$ / $	Dec. 31, 2017USD ($)$ / RM	Dec. 31, 2017USD ($)$ / Rp	Dec. 31, 2017USD ($)$ / $	Dec. 31, 2017USD ($)$ / £	Dec. 31, 2017USD ($)$ / ¥	Dec. 31, 2017USD ($)		Jan. 31, 2019SGD ($)	Jan. 31, 2019USD ($)
Movements in deferred acquisition costs and intangible assets
At end of year	[1]											$ 17,476
PVIF and other intangibles
Foreign exchange rate				23,227.64	31.05	1.36	4.14	14,140.84	7.84	0.78	6.91			23,017.17	32.30	1.35	4.03	14,220.82	7.84	0.75	6.61			22,716.82	33.91	1.38	4.30	13,383.03	7.79	0.78	6.76
United Overseas Bank Limited
PVIF and other intangibles
Additions		$ 834
Initial fee payable																																		$ 1,150	$ 853
Initial fee payable in 2019		$ 301
Number of instalments | installment		2
Continuing and discontinued operations
Movements in deferred acquisition costs and intangible assets
At beginning of year	[1],[2]	$ 15,185										15,185										$ 14,896
At end of year												17,476										15,185	[1],[2]									$ 14,896	[1],[2]
Shareholder-backed
Movements in deferred acquisition costs and intangible assets
At beginning of year		14,865										14,865
At end of year												17,409										14,865
Assumption for long-term investment returns (as a percent)			7.40%
Shareholder-backed | Software
Movements in deferred acquisition costs and intangible assets
Disposals and transfers												5
PVIF and other intangibles
Additions												51
Amortisation												(33)
Foreign exchange losses												2
Intangible assets			$ 85	$ 85	$ 85	$ 85	$ 85	$ 85	$ 85	$ 85	$ 85	85	$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	70
Shareholder-backed | Jackson (US insurance operations)
Movements in deferred acquisition costs and intangible assets
Assumption for long-term investment returns (as a percent)			7.40%										7.40%
Shareholder-backed | Continuing and discontinued operations
Movements in deferred acquisition costs and intangible assets
At beginning of year		15,008										15,008										14,700
Demerger of UK and Europe operations												(143)
Additions												2,601										1,666
Amortisation to the income statement												451										(1,526)
Adjusted IFRS operating profit based on longer-term investment returns												(792)										(1,370)
Non-operating profit (loss)												1,243										(156)
Disposals and transfers												(11)										(19)
Exchange differences and other movements												134										(141)
Amortisation of DAC related to net unrealised valuation movements on the US insurance operation's available-for-sale securities recognised within other comprehensive income												(631)										328
At end of year												17,409										15,008										14,700
PVIF and other intangibles
Intangible assets			$ 3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	$ 2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151
Shareholder-backed | Continuing and discontinued operations | PVIF and other intangibles
Movements in deferred acquisition costs and intangible assets
At beginning of year		2,151										2,151
Demerger of UK and Europe operations												(9)
Additions												1,179
Amortisation to the income statement												(243)
Adjusted IFRS operating profit based on longer-term investment returns												(238)
Non-operating profit (loss)												(5)
Disposals and transfers												(11)										(19)
Exchange differences and other movements												103
At end of year												3,170										2,151
PVIF and other intangibles
Additions												1,179										307
Amortisation												(243)										(244)
Intangible assets			3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	3,170	2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151	2,151		$ 2,209	$ 2,209	$ 2,209	$ 2,209	$ 2,209	$ 2,209	$ 2,209	$ 2,209	2,209
Shareholder-backed | Continuing and discontinued operations | Asia insurance operations | Deferred acquisition costs
Movements in deferred acquisition costs and intangible assets
At beginning of year		1,610										1,610
Additions												615
Amortisation to the income statement												(257)
Adjusted IFRS operating profit based on longer-term investment returns												(257)
Exchange differences and other movements												31
At end of year												1,999										1,610
Shareholder-backed | Continuing and discontinued operations | Jackson (US insurance operations) | Deferred acquisition costs
Movements in deferred acquisition costs and intangible assets
At beginning of year		11,113										11,113
Additions												807
Amortisation to the income statement												951
Adjusted IFRS operating profit based on longer-term investment returns												(297)
Non-operating profit (loss)												1,248
Amortisation of DAC related to net unrealised valuation movements on the US insurance operation's available-for-sale securities recognised within other comprehensive income												(631)
At end of year												12,240										11,113
Shareholder-backed | Continuing and discontinued operations | UK and Europe insurance operations | Deferred acquisition costs
Movements in deferred acquisition costs and intangible assets
At beginning of year		$ 134										134
Demerger of UK and Europe operations												(134)
At end of year																						134
Distribution rights
PVIF and other intangibles
Intangible assets			3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000
Distribution rights | Shareholder-backed | Continuing and discontinued operations | PVIF and other intangibles
PVIF and other intangibles
Additions												1,110										242
Amortisation												(196)										(190)
Intangible assets			2,971	2,971	2,971	2,971	2,971	2,971	2,971	2,971	2,971	2,971	1,959	1,959	1,959	1,959	1,959	1,959	1,959	1,959	1,959	1,959		$ 2,003	$ 2,003	$ 2,003	$ 2,003	$ 2,003	$ 2,003	$ 2,003	$ 2,003	$ 2,003
Distribution rights and other intangible assets | Shareholder-backed | Continuing and discontinued operations
PVIF and other intangibles
Intangible assets			$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 3,132	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108	$ 2,108
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Intangible Assets - DAC for US

Intangible Assets - DAC for US operations and sensitivity of amortisation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DAC amounts
Gain (loss) for shadow DAC amortisation	$ (631)	$ 328	$ (98)
Jackson (US insurance operations) | Continuing and discontinued operations
DAC amounts
Deferred acquisition costs	12,240	11,113
Shareholder-backed
DAC amounts
Credit (charge) for decelerated (accelerated) amortisation	$ (280)	(259)
Assumption for long-term investment returns (as a percent)	7.40%
Maximum decrease in separate account values for mean reversion assumption to remain within the corridor (as a percent)	26.00%
Maximum increase in separate account values for mean reversion assumption to remain within the corridor (as a percent)	49.00%
Shareholder-backed | Continuing and discontinued operations
DAC amounts
Deferred acquisition costs	$ 14,200
Shareholder-backed | Jackson (US insurance operations)
DAC amounts
Gain (loss) for shadow DAC amortisation	(631)	328
Positive (negative) unrealised valuation movement	$ 4,023	$ (2,159)
Assumption for long-term investment returns (as a percent)	7.40%	7.40%
Shareholder-backed | Jackson (US insurance operations) | Cumulative shadow DAC | Continuing and discontinued operations
DAC amounts
Deferred acquisition costs	$ (695)	$ (64)
Shareholder-backed | Jackson (US insurance operations) | Variable annuities
DAC amounts
Assumptions for amortisation of deferred acquisition costs - period for projected level of investment return	5 years
Assumptions for amortisation of deferred acquisition costs - preceding period of actual investment return	3 years
Assumptions for amortisation of deferred acquisition costs - investment return realisation period	8 years
Shareholder-backed | Jackson (US insurance operations) | Variable annuities | Amount before cumulative shadow DAC | Continuing and discontinued operations
DAC amounts
Deferred acquisition costs	$ 12,406	10,796
Shareholder-backed | Jackson (US insurance operations) | Other business | Amount before cumulative shadow DAC | Continuing and discontinued operations
DAC amounts
Deferred acquisition costs	$ 529	$ 381

Intangible Assets - DAC for ins

Intangible Assets - DAC for insurance and investment contracts (Details) - Shareholder-backed - Continuing and discontinued operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movements in deferred acquisition costs and intangible assets
At beginning of year	$ 12,857
Change in shadow DAC related to movement in unrealised appreciation of Jackson's securities classified as available-for-sale	(631)	$ 328
At end of year	14,239	12,857
Insurance contracts
Movements in deferred acquisition costs and intangible assets
At beginning of year	12,758	12,406
Demerger of UK and Europe operations	(62)
Additions	1,411	1,324
Amortisation	699	(1,266)
Exchange differences	31	(34)
Change in shadow DAC related to movement in unrealised appreciation of Jackson's securities classified as available-for-sale	(631)	328
At end of year	14,206	12,758
Investment contracts
Movements in deferred acquisition costs and intangible assets
At beginning of year	99	85
Demerger of UK and Europe operations	(72)
Additions	11	35
Amortisation	(5)	(16)
Exchange differences		(5)
At end of year	33	99
Investment contracts | Cost/Gross amount
Movements in deferred acquisition costs and intangible assets
At beginning of year	231
At end of year	34	231
Investment contracts | Accumulated amortisation
Movements in deferred acquisition costs and intangible assets
At beginning of year	(132)
At end of year	$ (1)	$ (132)

Intangible Assets - DAC balance

Intangible Assets - DAC balance comprises the following gross and accumulated amortisation amounts (Details) - Shareholder-backed - Continuing and discontinued operations - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Movements in deferred acquisition costs and intangible assets
Carrying amount	$ 14,239	$ 12,857
Insurance contracts
Movements in deferred acquisition costs and intangible assets
Carrying amount	14,206	12,758	$ 12,406
Investment contracts
Movements in deferred acquisition costs and intangible assets
Carrying amount	33	99	$ 85
Investment contracts | Cost/Gross amount
Movements in deferred acquisition costs and intangible assets
Carrying amount	34	231
Investment contracts | Accumulated amortisation
Movements in deferred acquisition costs and intangible assets
Carrying amount	$ (1)	$ (132)

Intangible Assets - PVIF and ot

Intangible Assets - PVIF and other intangibles (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	$ 2,151
Demerger of UK and Europe operations	(143)
Disposals and transfers	(11)	$ (19)
Balance at the end of the period	3,170	2,151
PVIF and other intangibles | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	2,151	2,209
Demerger of UK and Europe operations	(9)
Additions	1,179	307
Amortisation charge	(243)	(244)
Disposals and transfers	(11)	(19)
Exchange differences and other movements	103	(102)
Balance at the end of the period	3,170	2,151
PVIF and other intangibles | Shareholder-backed | Cost/Gross amount | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	3,240	3,224
Balance at the end of the period	4,337	3,240
PVIF and other intangibles | Shareholder-backed | Accumulated amortisation | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	(1,089)	(1,015)
Balance at the end of the period	(1,167)	(1,089)
PVIF | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	43
Balance at the end of the period	38	43
PVIF | PVIF and other intangibles | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	43	49
Demerger of UK and Europe operations	(1)
Amortisation charge	(5)	(5)
Exchange differences and other movements	1	(1)
Balance at the end of the period	38	43
PVIF | PVIF and other intangibles | Shareholder-backed | Cost/Gross amount | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	295	307
Balance at the end of the period	175	295
PVIF | PVIF and other intangibles | Shareholder-backed | Accumulated amortisation | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	(252)	(258)
Balance at the end of the period	(137)	(252)
Distribution rights
Present value of acquired in-force (PVIF) and other intangibles
Balance at the end of the period	3,000
Distribution rights | PVIF and other intangibles | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	1,959	2,003
Additions	1,110	242
Amortisation charge	(196)	(190)
Exchange differences and other movements	98	(96)
Balance at the end of the period	2,971	1,959
Distribution rights | PVIF and other intangibles | Shareholder-backed | Cost/Gross amount | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	2,546	2,426
Balance at the end of the period	3,783	2,546
Distribution rights | PVIF and other intangibles | Shareholder-backed | Accumulated amortisation | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	(587)	(423)
Balance at the end of the period	(812)	(587)
Distribution rights and other intangible assets | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	2,108
Balance at the end of the period	3,132	2,108
Computer software and other intangible assets | PVIF and other intangibles | Shareholder-backed | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	149	157
Demerger of UK and Europe operations	(8)
Additions	69	65
Amortisation charge	(42)	(49)
Disposals and transfers	(11)	(19)
Exchange differences and other movements	4	(5)
Balance at the end of the period	161	149
Computer software and other intangible assets | PVIF and other intangibles | Shareholder-backed | Cost/Gross amount | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	399	491
Balance at the end of the period	379	399
Computer software and other intangible assets | PVIF and other intangibles | Shareholder-backed | Accumulated amortisation | Continuing and discontinued operations
Present value of acquired in-force (PVIF) and other intangibles
Balance at the beginning of the period	(250)	(334)
Balance at the end of the period	$ (218)	$ (250)

Borrowings - Core Structural Bo

Borrowings - Core Structural Borrowings (Details) € in Millions, £ in Millions, $ in Millions	1 Months Ended			12 Months Ended
	Nov. 30, 2019USD ($)	Oct. 31, 2019GBP (£)	May 31, 2019GBP (£)	Dec. 31, 2019GBP (£)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019EUR (€)	Dec. 31, 2019USD ($)	Jun. 30, 2019	Dec. 31, 2018GBP (£)	Dec. 31, 2018EUR (€)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Borrowings
Upfront fees					$ 182
Core structural borrowings of shareholder-financed businesses
Borrowings
Borrowings								$ 5,594
Redemption of debt					504
Core structural borrowings of shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings												$ 9,761	$ 8,496
Redemption of debt						$ 553
Central operations total
Borrowings
Borrowings								$ 5,344
Central operations total | Continuing and discontinued operations
Borrowings
Borrowings												9,511
Subordinated debt substituted to M&G plc in 2019 | Continuing and discontinued operations
Borrowings
Borrowings												$ 3,718
600m 5.56% and 700m 6.34% Notes
Borrowings
Upfront fees					$ 182
600m 5.56% (30 Jun and 31 Dec 2018: 5.0%) Notes 2055
Borrowings
Notional amount | £				£ 600						£ 600
Interest rate (as a percent)				5.56%			5.56%	5.56%	5.00%	5.00%	5.00%	5.00%
600m 5.56% (30 Jun and 31 Dec 2018: 5.0%) Notes 2055 | Continuing and discontinued operations
Borrowings
Borrowings												$ 753
700m 6.34% (30 Jun and 31 Dec 2018: 5.7%) Notes 2063
Borrowings
Notional amount | £				£ 700						£ 700
Interest rate (as a percent)				6.34%			6.34%	6.34%	5.70%	5.70%	5.70%	5.70%
700m 6.34% (30 Jun and 31 Dec 2018: 5.7%) Notes 2063 | Continuing and discontinued operations
Borrowings
Borrowings												$ 886
750 million 5.625 per cent tier 2 bonds due 2051
Borrowings
Notional amount | £				£ 750						£ 750
Interest rate (as a percent)				5.625%			5.625%	5.625%		5.625%	5.625%	5.625%
750 million 5.625 per cent tier 2 bonds due 2051 | Continuing and discontinued operations
Borrowings
Borrowings												$ 947
500 million 6.25 per cent tier 2 bonds due 2068
Borrowings
Notional amount | £				£ 500						£ 500
Interest rate (as a percent)				6.25%			6.25%	6.25%		6.25%	6.25%	6.25%
500 million 6.25 per cent tier 2 bonds due 2068 | Continuing and discontinued operations
Borrowings
Borrowings												$ 634
US$500 million 6.5 per cent tier 2 bonds due 2048
Borrowings
Notional amount								$ 500				$ 500
Interest rate (as a percent)				6.50%			6.50%	6.50%		6.50%	6.50%	6.50%
US$500 million 6.5 per cent tier 2 bonds due 2048 | Continuing and discontinued operations
Borrowings
Borrowings												$ 498
300m 3.875% Notes 2024
Borrowings
Interest rate (as a percent)				3.875%			3.875%	3.875%
Transfer of subordinated debt to M & G plc | £				£ (300)
Debt not substituted to M&G plc in 2019
Borrowings
Borrowings								$ 5,344
Debt not substituted to M&G plc in 2019 | Continuing and discontinued operations
Borrowings
Borrowings												5,793
Subordinated debt total
Borrowings
Borrowings								4,304
Subordinated debt total | Continuing and discontinued operations
Borrowings
Borrowings												4,785
Perpetual subordinated Capital Securities (Tier 1)
Borrowings
Borrowings								550
Perpetual subordinated Capital Securities (Tier 1) | Continuing and discontinued operations
Borrowings
Borrowings												549
US$250m 6.75% Notes
Borrowings
Borrowings								250
Notional amount								$ 250				$ 250
Interest rate (as a percent)				6.75%			6.75%	6.75%		6.75%	6.75%	6.75%
US$250m 6.75% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 250
US$300m 6.5% Notes
Borrowings
Borrowings								$ 300
Notional amount								$ 300				$ 300
Interest rate (as a percent)				6.50%			6.50%	6.50%		6.50%	6.50%	6.50%
US$300m 6.5% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 299
Perpetual subordinated Capital Securities
Borrowings
Borrowings								$ 3,161
Perpetual subordinated Capital Securities | Continuing and discontinued operations
Borrowings
Borrowings												3,156
US$700m 5.25% Notes
Borrowings
Borrowings								700
Notional amount								$ 700				$ 700
Interest rate (as a percent)				5.25%			5.25%	5.25%		5.25%	5.25%	5.25%
US$700m 5.25% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 700
US$1,000m 5.25% Notes
Borrowings
Borrowings								$ 996
Notional amount								$ 1,000				$ 1,000
Interest rate (as a percent)				5.25%			5.25%	5.25%		5.25%	5.25%	5.25%
US$1,000m 5.25% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 993
US$725m 4.375% Notes
Borrowings
Borrowings								$ 721
Notional amount								$ 725				$ 725
Interest rate (as a percent)				4.375%			4.375%	4.375%		4.375%	4.375%	4.375%
US$725m 4.375% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 720
US$750m 4.875% Notes
Borrowings
Borrowings								$ 744
Notional amount								$ 750				$ 750
Interest rate (as a percent)				4.875%			4.875%	4.875%		4.875%	4.875%	4.875%
US$750m 4.875% Notes | Continuing and discontinued operations
Borrowings
Borrowings												$ 743
Subordinated notes
Borrowings
Borrowings								$ 593
Subordinated notes | Continuing and discontinued operations
Borrowings
Borrowings												1,080
20m Medium Term Notes 2023
Borrowings
Borrowings								22
Notional amount | €							€ 20				€ 20
20m Medium Term Notes 2023 | Continuing and discontinued operations
Borrowings
Borrowings												$ 23
435m 6.125% Notes 2031
Borrowings
Borrowings								$ 571
Notional amount | £				£ 435						£ 435
Interest rate (as a percent)				6.125%			6.125%	6.125%		6.125%	6.125%	6.125%
435m 6.125% Notes 2031 | Continuing and discontinued operations
Borrowings
Borrowings												$ 549
400m 11.375% Notes 2039
Borrowings
Notional amount | £				£ 400						£ 400
Redemption of debt | £			£ 400
Interest rate (as a percent)				11.375%			11.375%	11.375%		11.375%	11.375%	11.375%
400m 11.375% Notes 2039 | Continuing and discontinued operations
Borrowings
Borrowings												$ 508
Senior debt: 300m 6.875% Bonds 2023
Borrowings
Borrowings								$ 392
Notional amount | £				£ 300						£ 300
Interest rate (as a percent)				6.875%			6.875%	6.875%		6.875%	6.875%	6.875%
Senior debt: 300m 6.875% Bonds 2023 | Continuing and discontinued operations
Borrowings
Borrowings												$ 375
Senior debt: 250m 5.875% Bonds 2029
Borrowings
Borrowings								$ 298
Notional amount | £				£ 250						£ 250
Interest rate (as a percent)				5.875%			5.875%	5.875%		5.875%	5.875%	5.875%
Senior debt: 250m 5.875% Bonds 2029 | Continuing and discontinued operations
Borrowings
Borrowings												$ 283
$350m Loan 2024
Borrowings
Borrowings								$ 350
Notional amount								350				350
Adjustment to interest rate basis (as a percent)	0.20%
Proceeds from borrowings	$ 350
275m Loan 2022
Borrowings
Notional amount | £				£ 275						£ 275
Repayment of bank loan | £		£ 275
275m Loan 2022 | Continuing and discontinued operations
Borrowings
Borrowings												350
Jackson US$250m 8.15% Surplus Notes 2027
Borrowings
Borrowings								250
Notional amount								$ 250				$ 250
Interest rate (as a percent)				8.15%			8.15%	8.15%		8.15%	8.15%	8.15%
Jackson US$250m 8.15% Surplus Notes 2027 | Continuing and discontinued operations
Borrowings
Borrowings												$ 250

Borrowings - Changes (Details)

Borrowings - Changes (Details) - Core structural borrowings of shareholder-financed businesses - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows:
Issue of debt	$ 367
Redemption of debt	(504)
Payment for change to terms of debt	(182)
Foreign exchange movement	298
Demerger of UK and Europe operations	(4,161)
Other movements	15
Balance at end of year	5,594
Continuing and discontinued operations
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows:
Balance at beginning of year	$ 9,761	$ 8,496
Issue of debt		2,079
Redemption of debt		(553)
Payment for change to terms of debt		(44)
Foreign exchange movement		(232)
Other movements		15
Balance at end of year		$ 9,761

Borrowings - Operational borrow

Borrowings - Operational borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Other operational borrowings
Borrowings
Borrowings	$ 2,645	$ 1,160
Other operational borrowings | Continuing and discontinued operations
Borrowings
Borrowings		6,289
Other operational borrowings | UK & Europe Discontinued Operations (M&G Prudential)
Borrowings
Borrowings		5,129
Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	2,342
Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		1,271
Borrowings attributable to with-profits businesses
Borrowings
Borrowings	303
Borrowings attributable to with-profits businesses | Continuing and discontinued operations
Borrowings
Borrowings		5,018
Borrowings attributable to with-profits businesses | UK & Europe Discontinued Operations (M&G Prudential)
Borrowings
Borrowings		4,994
Commercial Paper | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	520
Commercial Paper | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		601
Lease liabilities under IFRS 16 | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	371
Lease liabilities under IFRS 16 | Borrowings attributable to with-profits businesses
Borrowings
Borrowings	259
Non-recourse borrowings of consolidated investment fund | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	1,045
Non-recourse borrowings of consolidated investment fund | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		448
Non-recourse borrowings of consolidated investment fund | Borrowings attributable to with-profits businesses | Continuing and discontinued operations
Borrowings
Borrowings		2,153
Total other borrowings | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	406
Total other borrowings | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		222
Bank loans and overdrafts | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	29
Bank loans and overdrafts | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		115
Obligations under finance leases | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		25
Other borrowings | Operational borrowings attributable to shareholder-financed businesses
Borrowings
Borrowings	377
Other borrowings | Operational borrowings attributable to shareholder-financed businesses | Continuing and discontinued operations
Borrowings
Borrowings		82
Other borrowings | Borrowings attributable to with-profits businesses
Borrowings
Borrowings	$ 44
Other borrowings | Borrowings attributable to with-profits businesses | Continuing and discontinued operations
Borrowings
Borrowings		$ 2,865

Risk and sensitivity analysis -

Risk and sensitivity analysis - Overview (Details)	Dec. 31, 2019
Equity price risk | Maximum
Risk and sensitivity analysis
Instantaneous decrease in risk assumption considered in analysis	20.00%

Risk and sensitivity analysis_2

Risk and sensitivity analysis - Asia, interest rate sensitivity (Details) - Asia insurance operations - Non-linked shareholder-backed - Interest rate risk - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	1.00%	1.00%
Change in profit before tax attributable to shareholders, decrease in assumption	$ (705)	$ 397
Change in related deferred tax (where applicable), decrease in assumption	3	(19)
Net effect on profit and shareholders' equity, decrease in assumption	$ (702)	$ 378
Reasonably possible increase in assumption (as a percent)	1.00%	1.00%
Change in profit before tax attributable to shareholders, increase in assumption	$ (744)	$ (430)
Change in related deferred tax (where applicable), increase in assumption	26	33
Net effect on profit and shareholders' equity, increase in assumption	$ (718)	$ (397)
10-year government bond rates | Minimum
Risk and sensitivity analysis
Reference rate (as a percent)	0.70%	0.90%
10-year government bond rates | Maximum
Risk and sensitivity analysis
Reference rate (as a percent)	7.20%	8.10%

Risk and sensitivity analysis_3

Risk and sensitivity analysis - Asia, equity price sensitivity (Details) - Asia insurance operations - Non-linked shareholder-backed - Equity price risk - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Risk and sensitivity analysis
Exposure to equity and property investment	$ 3,480	$ 2,740
20% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	20.00%	20.00%
Change in profit before tax attributable to shareholders, decrease in assumption	$ (864)	$ (709)
Change in related deferred tax (where applicable), decrease in assumption	48	21
Net effect on profit and shareholders' equity, decrease in assumption	$ (816)	$ (688)
10% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	10.00%	10.00%
Change in profit before tax attributable to shareholders, decrease in assumption	$ (432)	$ (355)
Change in related deferred tax (where applicable), decrease in assumption	24	10
Net effect on profit and shareholders' equity, decrease in assumption	$ (408)	$ (345)

Risk and sensitivity analysis_4

Risk and sensitivity analysis - Asia, insurance risk sensitivity (Details) - Asia insurance operations - Mortality rates - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Risk and sensitivity analysis
Reasonably possible increase in assumption (as a percent)	5.00%	5.00%
Effect on post-tax profit and shareholders' equity, increase in assumption	$ (77)	$ (73)

Risk and sensitivity analysis_5

Risk and sensitivity analysis - US, variable annuity guarantees (Details) - Jackson (US insurance operations) - Variable annuities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
GMDB | Return of net deposits plus a minimum return
Risk and sensitivity analysis
Account value	$ 150,576	$ 125,644
Net amount at risk	$ 2,477	$ 5,652
Weighted average attained age	66 years 10 months 24 days	66 years 6 months
GMDB | Return of net deposits plus a minimum return | Minimum
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
GMDB | Return of net deposits plus a minimum return | Maximum
Risk and sensitivity analysis
Minimum return (as a percent)	6.00%	6.00%
GMDB | Highest specified anniversary account value minus withdrawals post-anniversary
Risk and sensitivity analysis
Account value	$ 12,547	$ 10,865
Net amount at risk	$ 69	$ 1,418
Weighted average attained age	67 years 8 months 12 days	67 years 1 month 6 days
GMDB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Risk and sensitivity analysis
Account value	$ 8,159	$ 6,947
Net amount at risk	$ 687	$ 1,550
Weighted average attained age	70 years	69 years 6 months
GMDB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Minimum
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
GMDB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Maximum
Risk and sensitivity analysis
Minimum return (as a percent)	6.00%	6.00%
GMIB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Risk and sensitivity analysis
Account value	$ 1,688	$ 1,599
Net amount at risk	$ 616	$ 825
Period until expected annuitisation	6 months	1 month 6 days
GMIB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Minimum
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
GMIB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Maximum
Risk and sensitivity analysis
Minimum return (as a percent)	6.00%	6.00%
GMWB | Return of net deposits plus a minimum return
Risk and sensitivity analysis
Account value	$ 257	$ 251
Net amount at risk	$ 14	$ 25
GMWB | Return of net deposits plus a minimum return | Minimum
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
GMWB | Return of net deposits plus a minimum return | Maximum
Risk and sensitivity analysis
Minimum return (as a percent)	5.00%	5.00%
Compound interest equivalent of minimum return (as a percent)	4.10%
Bonus period for compound interest equivalent of minimum return	10 years
GMWB | Return of net deposits - premium only
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
Account value	$ 2,753	$ 2,450
Net amount at risk	16	80
GMWB | Highest specified anniversary account value minus withdrawals post-anniversary
Risk and sensitivity analysis
Account value	698	682
Net amount at risk	52	113
GMWB | Highest specified anniversary account value only
Risk and sensitivity analysis
Account value	3,232	2,827
Net amount at risk	51	400
GMWB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Risk and sensitivity analysis
Account value	140,529	116,902
Net amount at risk	$ 7,160	$ 21,442
GMWB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Minimum
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
GMWB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary | Maximum
Risk and sensitivity analysis
Minimum return (as a percent)	8.00%	8.00%
Compound interest equivalent of minimum return (as a percent)	6.00%
Bonus period for compound interest equivalent of minimum return	10 years
GMAB | Return of net deposits - premium only
Risk and sensitivity analysis
Minimum return (as a percent)	0.00%	0.00%
Account value	$ 37	$ 34

Risk and sensitivity analysis_6

Risk and sensitivity analysis - US, separate account balances (Details) - Jackson (US insurance operations) - Variable annuities - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Mutual funds
Risk and sensitivity analysis
Guarantee contract account balance in variable separate accounts	$ 172,125	$ 143,937
Equity mutual funds
Risk and sensitivity analysis
Guarantee contract account balance in variable separate accounts	121,520	99,834
Bond mutual funds
Risk and sensitivity analysis
Guarantee contract account balance in variable separate accounts	19,341	17,705
Balanced mutual funds
Risk and sensitivity analysis
Guarantee contract account balance in variable separate accounts	30,308	25,349
Money market mutual funds
Risk and sensitivity analysis
Guarantee contract account balance in variable separate accounts	$ 956	$ 1,049

Risk and sensitivity analysis_7

Risk and sensitivity analysis - US, equity price sensitivity (Details) - Jackson (US insurance operations) - Equity price risk - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
20% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	20.00%	20.00%
Profit before tax, (net of related changes in amortisation of DAC), decrease in assumption	$ 964	$ 1,347
Related deferred tax, decrease in assumption	(202)	(282)
Net effect on profit and shareholders' equity, decrease in assumption	$ 762	$ 1,065
Reasonably possible increase in assumption (as a percent)	20.00%	20.00%
Profit before tax, (net of related changes in amortisation of DAC), increase in assumption	$ 1,848	$ 74
Related deferred tax, increase in assumption	(388)	(15)
Net effect on profit and shareholders' equity, increase in assumption	$ 1,460	$ 59
10% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	10.00%	10.00%
Profit before tax, (net of related changes in amortisation of DAC), decrease in assumption	$ 256	$ 544
Related deferred tax, decrease in assumption	(54)	(115)
Net effect on profit and shareholders' equity, decrease in assumption	$ 202	$ 429
Reasonably possible increase in assumption (as a percent)	10.00%	10.00%
Profit before tax, (net of related changes in amortisation of DAC), increase in assumption	$ 770	$ (159)
Related deferred tax, increase in assumption	(162)	33
Net effect on profit and shareholders' equity, increase in assumption	$ 608	$ (126)

Risk and sensitivity analysis_8

Risk and sensitivity analysis - US, interest rate sensitivity (Details) - Jackson (US insurance operations) - Interest rate risk - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
2% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	2.00%	2.00%
Profit before tax, (net of related changes in amortisation of DAC), decrease in assumption	$ (6,238)	$ (4,502)
Related deferred tax, decrease in assumption	1,310	945
Net effect on profit after tax, decrease in assumption	(4,928)	(3,557)
Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC), decrease in assumption	5,342	5,265
Related deferred tax, decrease in assumption	(1,122)	(1,105)
Net effect on other comprehensive income, decrease in assumption	4,220	4,160
Net effect on profit and shareholders' equity, decrease in assumption	$ (708)	$ 603
Reasonably possible increase in assumption (as a percent)	2.00%	2.00%
Profit before tax, (net of related changes in amortisation of DAC), increase in assumption	$ 3,914	$ 2,815
Related deferred tax, increase in assumption	(822)	(591)
Net effect on profit after tax, increase in assumption	3,092	2,224
Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC), increase in assumption	(5,342)	(5,265)
Related deferred tax, increase in assumption	1,122	1,105
Net effect on other comprehensive income, increase in assumption	(4,220)	(4,160)
Net effect on profit and shareholders' equity, increase in assumption	$ (1,128)	$ (1,936)
1% change
Risk and sensitivity analysis
Reasonably possible decrease in assumption (as a percent)	1.00%	1.00%
Profit before tax, (net of related changes in amortisation of DAC), decrease in assumption	$ (2,815)	$ (2,188)
Related deferred tax, decrease in assumption	591	460
Net effect on profit after tax, decrease in assumption	(2,224)	(1,728)
Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC), decrease in assumption	2,840	2,988
Related deferred tax, decrease in assumption	(596)	(628)
Net effect on other comprehensive income, decrease in assumption	2,244	2,360
Net effect on profit and shareholders' equity, decrease in assumption	$ 20	$ 632
Reasonably possible increase in assumption (as a percent)	1.00%	1.00%
Profit before tax, (net of related changes in amortisation of DAC), increase in assumption	$ 2,141	$ 1,530
Related deferred tax, increase in assumption	(450)	(321)
Net effect on profit after tax, increase in assumption	1,691	1,209
Direct effect on carrying value of debt securities (net of related changes in amortisation of DAC), increase in assumption	(2,840)	(2,988)
Related deferred tax, increase in assumption	596	628
Net effect on other comprehensive income, increase in assumption	(2,244)	(2,360)
Net effect on profit and shareholders' equity, increase in assumption	$ (553)	$ (1,151)

Tax assets and liabilities - Cu

Tax assets and liabilities - Current tax (Details) - USD ($) $ in Millions	Dec. 31, 2019		Dec. 31, 2018
Tax assets and liabilities
Current tax recoverable	$ 492	[1]	$ 476
Current tax liability	396	[1]	411
Provision for uncertain tax matters	$ 198		$ 190
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Tax assets and liabilities (Det

Tax assets and liabilities (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	$ 3,145
Movement in income statement	1,118
Movement through other comprehensive income and equity	(15)
Other movements including foreign currency movements	(173)
Deferred tax assets at the end of the year	4,075	[1]
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(3,771)
Movement in income statement	(891)
Movement through other comprehensive income and equity	(694)
Other movements including foreign currency movements	119
Deferred tax liabilities at the end of the year	(5,237)	[1]
Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	3,305	[1],[2]
Deferred tax assets at the end of the year	4,075
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(5,122)	[1],[2]
Deferred tax liabilities at the end of the year	(5,237)
UK & Europe Discontinued Operations (M&G Prudential)
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	160
Demerger of UK and Europe operations	(160)
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(1,351)
Demerger of UK and Europe operations	1,351
Unrealised gains and losses on investments
Deferred tax assets in statement of financial position
Movement in income statement	(16)
Other movements including foreign currency movements	(128)
Deferred tax liabilities in statement of financial position
Movement in income statement	(231)
Movement through other comprehensive income and equity	(713)
Other movements including foreign currency movements	118
Deferred tax liabilities at the end of the year	(877)
Unrealised gains and losses on investments | Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	144
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(1,104)
Unrealised gains and losses on investments | UK & Europe Discontinued Operations (M&G Prudential)
Deferred tax liabilities in statement of financial position
Demerger of UK and Europe operations	1,053
Balances relating to investment and insurance contracts
Deferred tax assets in statement of financial position
Movement in income statement	60
Other movements including foreign currency movements	(29)
Deferred tax assets at the end of the year	32
Deferred tax liabilities in statement of financial position
Movement in income statement	(246)
Other movements including foreign currency movements	15
Deferred tax liabilities at the end of the year	(1,507)
Balances relating to investment and insurance contracts | Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	1
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(1,276)
Short-term temporary differences
Deferred tax assets in statement of financial position
Movement in income statement	1,069
Movement through other comprehensive income and equity	(15)
Other movements including foreign currency movements	1
Deferred tax assets at the end of the year	3,888
Deferred tax liabilities in statement of financial position
Movement in income statement	(414)
Movement through other comprehensive income and equity	19
Other movements including foreign currency movements	(14)
Deferred tax liabilities at the end of the year	$ (2,847)
Expected recovery period for balances other than US insurance operations	5 years
Short-term temporary differences | Jackson (US insurance operations)
Deferred tax liabilities in statement of financial position
Deferred tax assets expected to be recovered in line with the run off of the in-force book	$ 3,068
Short-term temporary differences | Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	2,979
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(2,671)
Short-term temporary differences | UK & Europe Discontinued Operations (M&G Prudential)
Deferred tax assets in statement of financial position
Demerger of UK and Europe operations	(146)
Deferred tax liabilities in statement of financial position
Demerger of UK and Europe operations	233
Capital allowances
Deferred tax assets in statement of financial position
Movement in income statement	(3)
Other movements including foreign currency movements	(1)
Deferred tax assets at the end of the year	1
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the end of the year	(6)
Capital allowances | Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	19
Deferred tax liabilities in statement of financial position
Deferred tax liabilities at the beginning of the year	(71)
Capital allowances | UK & Europe Discontinued Operations (M&G Prudential)
Deferred tax assets in statement of financial position
Demerger of UK and Europe operations	(14)
Deferred tax liabilities in statement of financial position
Demerger of UK and Europe operations	65
Unused tax losses
Deferred tax assets in statement of financial position
Movement in income statement	8
Other movements including foreign currency movements	(16)
Deferred tax assets at the end of the year	154
Unused tax losses | Continuing and discontinued operations
Deferred tax assets in statement of financial position
Deferred tax assets at the beginning of the year	$ 162
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Tax assets and liabilities - De

Tax assets and liabilities - Deferred tax by segment (Details) - USD ($) $ in Millions	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017	[1],[2]
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets	$ 4,075	[1]	$ 3,145
Deferred tax liabilities	(5,237)	[1]	(3,771)
UK & Europe Discontinued Operations (M&G Prudential)
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets			160
Deferred tax liabilities			(1,351)
Continuing and discontinued operations
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets	4,075		3,305	[1],[2]	$ 3,554
Deferred tax liabilities	(5,237)		(5,122)	[1],[2]	$ (6,378)
Unallocated to a segment (other operations)
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets	1		70
Deferred tax liabilities			(20)
Asia | Operating segments
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets	270		152
Deferred tax liabilities	(2,146)		(1,601)
US | Operating segments
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax assets	3,804		2,923
Deferred tax liabilities	$ (3,091)		$ (2,150)
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Tax assets and liabilities - Ta

Tax assets and liabilities - Tax benefits not recognized (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Disclosure of deferred tax in statement of financial position and by Group's operations
Deferred tax liabilities not recognized in jurisdictions where a withholding charge is incurred upon distribution of earnings	$ 247	$ 149
Capital losses
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized	1	55
Losses for which tax benefits have not been recognised	5	270
Capital losses | UK & Europe Discontinued Operations (M&G Prudential)
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized		7
Losses for which tax benefits have not been recognised		38
Capital losses | Continuing and discontinued operations
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized		62
Losses for which tax benefits have not been recognised		308
Trading losses
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized	36	61
Losses for which tax benefits have not been recognised	175	301
Trading losses | UK & Europe Discontinued Operations (M&G Prudential)
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized		1
Losses for which tax benefits have not been recognised		6
Trading losses | Continuing and discontinued operations
Disclosure of deferred tax in statement of financial position and by Group's operations
Tax benefit not recognized		62
Losses for which tax benefits have not been recognised		$ 307
Trading losses | Within 10 years
Disclosure of deferred tax in statement of financial position and by Group's operations
Losses for which tax benefits have not been recognised	$ 34

Defined benefit pension schem_2

Defined benefit pension schemes - Background (Details) - plan	12 Months Ended
	Dec. 31, 2019	Jun. 29, 2019
PSPS
Defined benefit pension schemes
Percentage of underlying Group's defined benefit schemes	30.00%
PSPS | M&G Prudential Service Company Limited
Defined benefit pension schemes
Percentage of underlying Group's defined benefit schemes		30.00%
Other schemes | Taiwan
Defined benefit pension schemes
Number of plans	2

Share capital, share premium _3

Share capital, share premium and own shares - Share capital and premium (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)shares		Dec. 31, 2018USD ($)shares	Dec. 31, 2017USD ($)Optionsshares	Dec. 31, 2019Options£ / shares	Dec. 31, 2018Options£ / shares	Dec. 31, 2016Options
Disclosure of classes of share capital
Par value per share (in GBP per share) | £ / shares					£ 0.05	£ 0.05
Number of issued shares at beginning of year | shares	2,593,044,409		2,587,175,445
Number of shares issued under share-based schemes | shares	8,115,540		5,868,964
Number of issued shares at end of year | shares	2,601,159,949		2,593,044,409	2,587,175,445
Balance at beginning of year	$ 21,991		$ 21,771	$ 18,124
Shares issued under share-based schemes	22		23	27
Balance at end of year	19,669	[1]	21,991	$ 21,771
Options outstanding under save as you earn schemes
Shares under option at end of year | Options				6,000,000	4,000,000	5,000,000
Share capital
Disclosure of classes of share capital
Balance at beginning of year	166		175	$ 159
Shares issued under share-based schemes			1
Impact of change in presentation currency in relation to share capital and share premium	6		(10)
Balance at end of year	172		166	175
Share premium
Disclosure of classes of share capital
Balance at beginning of year	2,502		2,635	2,381
Shares issued under share-based schemes	22		22	27
Impact of change in presentation currency in relation to share capital and share premium	101		(155)
Balance at end of year	$ 2,625		$ 2,502	$ 2,635
SAYE options
Options outstanding under save as you earn schemes
Shares under option at end of year | Options				6,400,000	3,805,447	4,885,804	7,100,000
SAYE options | Minimum
Options outstanding under save as you earn schemes
Exercise price | £ / shares					£ 11.04	£ 9.01
SAYE options | Maximum
Options outstanding under save as you earn schemes
Exercise price | £ / shares					£ 14.55	£ 14.55
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Share capital, share premium _4

Share capital, share premium and own shares - Transactions in Prudential plc shares (Details)	1 Months Ended																								12 Months Ended
	Dec. 31, 2019USD ($)shares	Nov. 30, 2019USD ($)shares	Oct. 31, 2019USD ($)shares	Sep. 30, 2019USD ($)shares	Aug. 31, 2019USD ($)shares	Jul. 31, 2019USD ($)shares	Jun. 30, 2019USD ($)shares	May 31, 2019USD ($)shares	Apr. 30, 2019USD ($)shares	Mar. 31, 2019USD ($)shares	Feb. 28, 2019USD ($)shares	Jan. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)shares	Nov. 30, 2018USD ($)shares	Oct. 31, 2018USD ($)shares	Sep. 30, 2018USD ($)shares	Aug. 31, 2018USD ($)shares	Jul. 31, 2018USD ($)shares	Jun. 30, 2018USD ($)shares	May 31, 2018USD ($)shares	Apr. 30, 2018USD ($)shares	Mar. 31, 2018USD ($)shares	Feb. 28, 2018USD ($)shares	Jan. 31, 2018USD ($)shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)shares	Dec. 31, 2019£ / shares	Dec. 31, 2019USD ($)shares	Nov. 30, 2019£ / shares	Oct. 31, 2019£ / shares	Sep. 30, 2019£ / shares	Aug. 31, 2019£ / shares	Jul. 31, 2019£ / shares	Jun. 30, 2019£ / shares	May 31, 2019£ / shares	Apr. 30, 2019£ / shares	Mar. 31, 2019£ / sharesshares	Feb. 28, 2019£ / shares	Jan. 31, 2019£ / shares	Dec. 31, 2018£ / shares	Dec. 31, 2018USD ($)shares	Nov. 30, 2018£ / shares	Oct. 31, 2018£ / shares	Sep. 30, 2018£ / shares	Aug. 31, 2018£ / shares	Jul. 31, 2018£ / shares	Jun. 30, 2018£ / shares	May 31, 2018£ / shares	Apr. 30, 2018£ / shares	Mar. 31, 2018£ / shares	Feb. 28, 2018£ / shares	Jan. 31, 2018£ / shares
Transactions in Prudential plc shares
Cost of own shares deducted from retained earnings																												$ 183,000,000													$ 217,000,000
Shares held in trust for employee incentive plans
Transactions in Prudential plc shares
Number of shares held | shares																												8,400,000													9,600,000
Market value of shares held																												$ 161,000,000													$ 172,000,000
Number of shares purchased | shares	68,573	75,904	178,359	73,284	72,671	60,514	217,800	73,417	2,638,429	68,497	71,044	75,165	73,744	67,162	148,209	82,612	60,384	55,888	181,995	63,334	1,664,334	55,623	55,765	51,555	3,673,657	2,560,605
Cost of shares purchased	$ 1,178,206	$ 1,309,146	$ 3,148,811	$ 1,318,767	$ 1,318,593	$ 1,321,427	$ 4,484,773	$ 1,550,109	$ 54,052,710	$ 1,385,182	$ 1,390,865	$ 1,384,926	$ 1,323,949	$ 1,382,514	$ 3,223,238	$ 1,829,814	$ 1,404,285	$ 1,308,608	$ 4,432,511	$ 1,636,433	$ 40,997,710	$ 1,432,155	$ 1,402,089	$ 1,378,409	$ 73,843,515	$ 61,751,715
Shares held in authorized investment funds
Transactions in Prudential plc shares
Cost of own shares deducted from retained earnings																																									$ 25,000,000
Number of shares held | shares																																									3,000,000
Market value of shares held																																									$ 53,000,000
Minimum | Shares held in trust for employee incentive plans
Transactions in Prudential plc shares
IFRS Share Price | £ / shares																											£ 13.07		£ 13.38	£ 13.78	£ 14.14	£ 14.86	£ 17.47	£ 16.20	£ 16.35	£ 15.65	£ 15.20	£ 15	£ 14.25	£ 13.99		£ 15.95	£ 15.62	£ 16.95	£ 18.04	£ 17.68	£ 18.21	£ 18.91	£ 16.67	£ 18.25	£ 17.91	£ 19.18
Maximum | Shares held in trust for employee incentive plans
Transactions in Prudential plc shares
Number of shares held | shares																																					14,100,000
IFRS Share Price | £ / shares																											£ 13.13		£ 13.85	£ 14.24	£ 14.76	£ 15.21	£ 17.71	£ 16.36	£ 16.45	£ 16.73	£ 16.32	£ 15.18	£ 14.29	£ 14.30		£ 15.96	£ 16.84	£ 16.98	£ 18.10	£ 17.86	£ 18.65	£ 19.38	£ 17.95	£ 18.54	£ 18.10	£ 19.40

Provisions - Total provisions (

Provisions - Total provisions (Details) - USD ($) $ in Millions		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Provisions
Provision in respect of defined benefit pension schemes		$ 1
Other provisions		465		$ 1,151
Total provisions		$ 466	[1]	427
Continuing and discontinued operations
Provisions
Provision in respect of defined benefit pension schemes				222
Other provisions				1,151	$ 1,275
Total provisions	[1],[2]			1,373	$ 1,519
UK & Europe Discontinued Operations (M&G Prudential)
Provisions
Total provisions				$ 946
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[2]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Provisions - Analysis of other

Provisions - Analysis of other provisions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Analysis of other provisions:
Balance at the beginning of the year	$ 1,151
Charged to income statement:
Demerger of UK and Europe operations	(725)
Additional provisions	188
Unused amounts released	(7)
Utilisation during the year	(154)
Exchange differences	12
Balance at the end of the year	465	$ 1,151
Continuing and discontinued operations
Analysis of other provisions:
Balance at the beginning of the year	$ 1,151	1,275
Charged to income statement:
Additional provisions		307
Unused amounts released		(24)
Utilisation during the year		(349)
Exchange differences		(58)
Balance at the end of the year		$ 1,151

Provisions - Details of other p

Provisions - Details of other provisions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other provisions
Other provisions	$ 465	$ 1,151
Staff benefits provisions
Other provisions
Other provisions	$ 408	364
Expected pay out period of provision	3 years
Other provisions
Other provisions
Other provisions	$ 57	$ 63

Capital - Capital Measure (Deta

Capital - Capital Measure (Details) - USD ($) $ in Billions	Dec. 31, 2019	Dec. 31, 2018
Capital
Estimated Group Solvency II own funds	$ 14	$ 13.5

Capital - Local capital regulat

Capital - Local capital regulations (Details) - USD ($) $ in Millions		Mar. 31, 2009	Apr. 30, 2009	Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Estimated capital position with reconciliation to shareholders' equity
IFRS shareholders' equity				$ 19,669	[1]	$ 21,991	$ 21,771	$ 18,124
Surplus notes	[1]			$ 5,594
Asia insurance operations | China
Local capital regulations
Minimum core solvency ratio				50.00%
Minimum comprehensive solvency ratio				100.00%
Asia insurance operations | Malaysia
Local capital regulations
Minimum Supervisory Target Capital Level percentage				130.00%
Percentage of foreign equity ownership		49.00%	70.00%
Operations within segments | Asia insurance operations
Estimated capital position with reconciliation to shareholders' equity
IFRS shareholders' equity				$ 9,803
Operations within segments | Jackson (US insurance operations)
Estimated capital position with reconciliation to shareholders' equity
IFRS shareholders' equity				8,923
Surplus notes				$ 250
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Capital - Asset management oper

Capital - Asset management operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Asset management operations
Regulatory and other surplus
Balance at 1 January	$ 1,271	$ 1,185
Demerger of UK and Europe operations	(846)
Gains during the year	238	701
Movement in capital requirement	(32)	(7)
Capital injection	(10)	135
Distributions made to the parent company	(213)	(531)
Exchange and other movements	(26)	(212)
Balance at 31 December	382	1,271
M&G Prudential asset management
Regulatory and other surplus
Balance at 1 January	846
Demerger of UK and Europe operations	(846)
Balance at 31 December		846
Asset management (US)
Regulatory and other surplus
Balance at 1 January	51
Gains during the year	24
Capital injection	(30)
Distributions made to the parent company	(40)
Exchange and other movements	1
Balance at 31 December	6	51
Asia asset management
Regulatory and other surplus
Balance at 1 January	374
Gains during the year	214
Movement in capital requirement	(32)
Capital injection	20
Distributions made to the parent company	(173)
Exchange and other movements	(27)
Balance at 31 December	$ 376	$ 374

Capital - Transferability of av

Capital - Transferability of available capital (Details)	12 Months Ended
	Dec. 31, 2019
Jackson (US insurance operations)
Group objectives, policies and processes for managing capital
Percentage of prior year end statutory surplus, above which dividends require prior regulatory approval	10.00%

Property, plant and equipment_2

Property, plant and equipment (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		$ 482
Demerger of UK and Europe operations		(1,313)
Arising on acquisitions of subsidiaries		20
Additions		260
Depreciation and impairment charge		(227)
Disposals and transfers		(10)
Exchange differences		13
Property, plant and equipment at end of year		1,065	[1],[2]	$ 482
Capital expenditures		64		134	$ 98
Right-of-use assets, property assets		0
Right-of-use assets, non-property assets		24
Right-of-use assets, non-property assets, attributable to shareholders		18
Undiscounted value of lease payments not recognised in the lease liabilities		0
Sublease rental income		11
Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year	[1],[2],[3]	1,795		1,067
Arising on acquisitions of subsidiaries				697
Additions				386
Depreciation and impairment charge				(184)
Disposals and transfers				(103)
Exchange differences				(68)
Property, plant and equipment at end of year	[1],[2],[3]			1,795	1,067
UK & Europe Discontinued Operations (M&G Prudential)
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		1,313
Property, plant and equipment at end of year				1,313
Cost/Gross amount
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		2,614
Property, plant and equipment at end of year		1,772		2,614
Cost/Gross amount | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		2,614		1,904
Property, plant and equipment at end of year				2,614	1,904
Accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(819)
Property, plant and equipment at end of year		(707)		(819)
Accumulated depreciation | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(819)		(837)
Property, plant and equipment at end of year				(819)	(837)
Group occupied property
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		277
Demerger of UK and Europe operations		(143)
Arising on acquisitions of subsidiaries		6
Additions		1
Depreciation and impairment charge		(9)
Property, plant and equipment at end of year		275		277
Group occupied property | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		420		399
Arising on acquisitions of subsidiaries				6
Additions				47
Depreciation and impairment charge				(14)
Disposals and transfers				(11)
Exchange differences				(7)
Property, plant and equipment at end of year				420	399
Group occupied property | UK & Europe Discontinued Operations (M&G Prudential)
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		143
Property, plant and equipment at end of year				143
Group occupied property | Cost/Gross amount
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		525
Property, plant and equipment at end of year		351		525
Group occupied property | Cost/Gross amount | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		525		496
Property, plant and equipment at end of year				525	496
Group occupied property | Accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(105)
Property, plant and equipment at end of year		(76)		(105)
Group occupied property | Accumulated depreciation | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(105)		(97)
Property, plant and equipment at end of year				(105)	(97)
Tangible assets
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		205
Demerger of UK and Europe operations		(1,170)
Arising on acquisitions of subsidiaries		13
Additions		63
Depreciation and impairment charge		(77)
Disposals and transfers		(11)
Exchange differences		4
Property, plant and equipment at end of year		197		205
Capital expenditures		64		133
Tangible assets | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		1,375		668
Arising on acquisitions of subsidiaries				691
Additions				339
Depreciation and impairment charge				(170)
Disposals and transfers				(92)
Exchange differences				(61)
Property, plant and equipment at end of year				1,375	668
Capital expenditures				386
Tangible assets | UK & Europe Discontinued Operations (M&G Prudential)
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		1,170
Property, plant and equipment at end of year				1,170
Tangible assets | Operating segments | US
Reconciliation of the carrying amount of property, plant and equipment
Capital expenditures		5		62
Tangible assets | Operating segments | Asia
Reconciliation of the carrying amount of property, plant and equipment
Capital expenditures		44		69
Tangible assets | Unallocated to a segment (other operations)
Reconciliation of the carrying amount of property, plant and equipment
Capital expenditures		15		2
Tangible assets | With-profits
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		94
Property, plant and equipment at end of year		83		94
Tangible assets | Cost/Gross amount
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		2,089
Property, plant and equipment at end of year		687		2,089
Tangible assets | Cost/Gross amount | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		2,089		1,408
Property, plant and equipment at end of year				2,089	1,408
Tangible assets | Accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(714)
Property, plant and equipment at end of year		(490)		(714)
Tangible assets | Accumulated depreciation | Continuing and discontinued operations
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at beginning of year		(714)		(740)
Property, plant and equipment at end of year				$ (714)	$ (740)
Right-of-use assets
Reconciliation of the carrying amount of property, plant and equipment
Recognition of right-of-use asset on initial application of IFRS 16		527
Arising on acquisitions of subsidiaries		1
Additions		196
Depreciation and impairment charge		(141)
Disposals and transfers		1
Exchange differences		9
Property, plant and equipment at end of year		593
Right-of-use assets | Cost/Gross amount
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at end of year		734
Right-of-use assets | Accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment
Property, plant and equipment at end of year		$ (141)
[1]	As at 1 January 2019, the Group applied IFRS 16 ‘Leases’, using the modified retrospective approach. Under this approach, comparative information is not restated. The application of the standard has resulted in the recognition of an additional lease liability and a corresponding ‘right-of-use’ asset of a similar amount as at 1 January 2019. See note A3 and note C13 for further details.
[2]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1
[3]	The 31 December 2018 and 1 January 2018 comparative statements of financial position included discontinued UK and Europe operations

Gain (loss) on disposals of bus

Gain (loss) on disposals of business and corporate transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gain (loss) on disposal of businesses and corporate transactions
Gain on disposals	$ 265
Other transactions	(407)	$ (107)	$ 286
Total gain (loss) on disposal of business from continuing operations	(142)	$ (107)	$ 286
Transaction related costs - fees to advisors	(78)
Fee paid to holders of subordinated debt instruments	(182)
Business separation costs	$ (147)
ICICI Prudential Life Insurance Company Limited
Gain (loss) on disposal of businesses and corporate transactions
Ownership percentage	22.00%	26.00%

Gain (loss) on disposals of b_2

Gain (loss) on disposals of business and corporate transactions - Acquisition of Thanachart Fund Management Co, Ltd. in Thailand (Details) - USD ($) $ in Millions		Dec. 27, 2019	Dec. 31, 2019
Fair value of acquired assets, assumed liabilities and resulting goodwill
Goodwill arising on acquisition	[1]		$ 969
TMB Asset Management Co., Ltd.
Acquisition
Proportion of ownership interest in subsidiary, joint venture, associate or significant holding, held indirectly		65.00%	65.00%
Thanachart Fund Management Co., Ltd.
Acquisition
Percentage of interest acquired		50.10%
Remaining percentage of interest under option		100.00%
Reduction in equity in respect of discounted expected consideration payable for remaining interest		$ 130
Fair value of acquired assets, assumed liabilities and resulting goodwill
Other assets			$ 28
Cash and cash equivalents			2
Total assets			30
Other liabilities			(7)
Non-controlling interests			(141)
Net assets acquired and liabilities assumed			(118)
Goodwill arising on acquisition			260
Purchase consideration			$ 142
Thanachart Fund Management Co., Ltd. | Thanachart Bank Public Company Ltd
Acquisition
Percentage of interest held		49.90%
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Discontinued UK and Europe op_3

Discontinued UK and Europe operations (Details) $ in Millions		12 Months Ended
		Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Oct. 21, 2019company
Income Statement
Earned premiums, net of reinsurance		$ 43,481	$ 44,431	$ 38,496
Total revenue, net of reinsurance		93,736	35,845	75,389
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance		(83,905)	(23,426)	(63,808)
Acquisition costs and other expenditure		(7,283)	(8,527)	(8,649)
Total charges net of reinsurance		(91,846)	(32,607)	(72,713)
Re-measurement of the UK and Europe operations on demerger		188
Profit before tax	[1]	2,287	3,557	2,909
(Loss) profit from discontinued operations		(1,161)	1,142	1,333
Other comprehensive income
Cumulative exchange loss recycled through profit or loss		(2,668)
Other comprehensive income for the year from discontinued operations, net of related tax		203	(605)	1,023
Cash flows
Net cash flows in the year	[2]	(5,690)	(610)	1,618
Cash and cash equivalents at beginning of year		15,442	14,461	12,437
Effect of exchange rate changes on cash and cash equivalents		203	(529)	1,080
Cash and cash equivalents at end of year		6,965	15,442	14,461
UK & Europe Discontinued Operations (M&G Prudential)
Disclosure of analysis of single amount of discontinued operations [line items]
Number of resulting listed companies | company					2
Income Statement
Earned premiums, net of reinsurance		10,920	(101)	15,565
Investment return and other income		22,292	(2,386)	20,550
Total revenue, net of reinsurance		33,212	(2,487)	36,115
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance		(26,975)	6,645	(29,677)
Acquisition costs and other expenditure		(4,143)	(3,296)	(4,230)
Total charges net of reinsurance		(31,118)	3,349	(33,907)
Discontinued UK and Europe operations' profit before tax		2,094	862	2,208
Re-measurement of the UK and Europe operations on demerger		188
Cumulative exchange loss recycled from other comprehensive income		(2,668)
Profit before tax		(386)	862	2,208
Tax (charge) credit		(775)	280	(875)
(Loss) profit from discontinued operations		(1,161)	1,142	1,333
Other comprehensive income
Cumulative exchange loss recycled through profit or loss		2,668
Other items, net of related tax		203	(605)	1,023
Other comprehensive income for the year from discontinued operations, net of related tax		2,871	(605)	1,023
Cash flows
Cash flows from operating activities		2,375	5	318
Cash flows from investing activities		(454)	(478)	1,316
Cash flows from financing activities			(137)	(16)
Cash and cash equivalents divested on demerger		(7,611)
Net cash flows in the year		(5,690)	(610)	1,618
Net cash flows between discontinued and continuing operations		(436)	(842)	(847)
Cash and cash equivalents at beginning of year		6,048	7,857	6,258
Effect of exchange rate changes on cash and cash equivalents		78	(357)	828
Cash and cash equivalents at end of year			$ 6,048	$ 7,857
Pre-demerger dividend		(3,841)
Other dividends		(684)
Payment received from Prudential plc for the transfer of debt to M&G plc prior to the demerger		$ 4,161
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.
[2]	The cash flows shown above are presented excluding any transactions between continuing and discontinued operations.

Post balance sheet events (Deta

Post balance sheet events (Details) - Entering into bancassurance agreement - TMB Bank $ in Millions, ฿ in Billions	Mar. 19, 2020THB (฿)item	Mar. 19, 2020USD ($)item	Apr. 30, 2020THB (฿)
Post balance sheet events
Period of bancassurance agreement	15 years	15 years
Cost of change in arrangements due to bancassurance agreement	฿ 24.5	$ 754
Number of instalments in bancassurance agreement | item	2	2
Forecast
Post balance sheet events
Payment for change in arrangements due to bancassurance agreement | ฿			฿ 12

Commitments - Capital commitmen

Commitments - Capital commitments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Jackson (US insurance operations) | Investments in limited partnerships
Contractual obligations and unfunded commitments
Amount committed	$ 889	$ 846
Jackson (US insurance operations) | Commercial mortgage loans and other fixed maturities
Contractual obligations and unfunded commitments
Amount committed	796	440
Asia | Investments in infrastructure funds and alternative investment funds
Contractual obligations and unfunded commitments
Amount committed	$ 2,013	$ 1,554

Investments in subsidiary und_3

Investments in subsidiary undertakings, joint ventures and associates - Aggregate carrying amounts of the investments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investment funds
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	$ 23,620	$ 27,021
Investment funds | Equity securities and holdings in collective investment schemes
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	23,620	27,021
Separate account assets
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	195,070	163,301
Separate account assets | Equity securities and holdings in collective investment schemes
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	195,070	163,301
Other structured entities
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	6,574	14,113
Other structured entities | Debt securities
Unconsolidated structured entities reported in the statement of financial position
Aggregate carrying amount of investments in unconsolidated structured entities	$ 6,574	$ 14,113

Investments in subsidiary und_4

Investments in subsidiary undertakings, joint ventures and associates - Equity method and fair value through profit or loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments in subsidiary undertakings, joint ventures and associates
Fair value of associates accounted for at fair value through profit or loss	$ 700	$ 100
Share of profit from joint ventures and associates net of related tax	397	319	$ 233
Other comprehensive income in the joint ventures and associates	0	0	0
Unrecognised share of losses of a joint venture	0	0	0
Unrecognised share of losses of a associate	0	0	0
Operating segments
Investments in subsidiary undertakings, joint ventures and associates
Share of profit from joint ventures and associates net of related tax	397	319	233
Operating segments | Asia insurance operations
Investments in subsidiary undertakings, joint ventures and associates
Share of profit from joint ventures and associates net of related tax	291	238	156
Operating segments | Asia asset management
Investments in subsidiary undertakings, joint ventures and associates
Share of profit from joint ventures and associates net of related tax	$ 106	$ 81	$ 77

Investments in subsidiary und_5

Investments in subsidiary undertakings, joint ventures and associates - Ownership percentage (Details)	Dec. 27, 2019	Dec. 31, 2019	Dec. 23, 2016	Dec. 31, 2019
Aberdeen Standard Cash Creation Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		34.16%
Aberforth Standard Global Opportunities Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		28.46%
AMUNDI FTSE China A50 Index ETF
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		38.67%
BOCHK Asia Pacific Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		26.29%
BOCHK Hong Kong Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		21.94%
BOCHK US Dollar Money Market Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		34.85%
Centre Capital Non-Qualified Investors IV AIV Orion, LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.47%
Centre Capital Non-Qualified Investors IV AIV-RA, L.P.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		44.55%
Centre Capital Non-Qualified Investors IV, L.P.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.16%
Centre Capital Non-Qualified Investors V AIV-ELS LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.58%
Centre Capital Non-Qualified Investors V LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		37.66%
CEP IV-A Chicago AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.93%
CEP IV-A CWV AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.97%
CEP IV-A Davenport AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.94%
CEP IV-A Indy AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.94%
CEP IV-A NMR AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.94%
CEP IV-A WBCT AIV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.94%
Clairvest Equity Partners IV-A LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		23.90%
Eastspring Investments - India Discovery Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.63%
Eastspring Investments Emerging Markets Star Players
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.99%
Eastspring Investments Equity Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		20.89%
Eastspring Investments India Equity Open (Asset Growth Type)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		28.90%
Eastspring Investments Japan Dynamic MY Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.65%
Eastspring Investments MY Focus Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		21.40%
Eastspring Investments US Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.84%
Eastspring Investments US Investment Grade Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		45.41%
ICICI Prudential Asset Management Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.00%
ICICI Prudential Life Insurance Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		22.11%
ICICI Prudential Pension Funds Management Company
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		22.11%
ICICI Prudential Trust Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.00%
iShares Core MSCI Europe
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		21.26%
iShares Fallen Angels High Yield Corporate Bond UCITS ETF Wing
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		47.36%
iShares S&P 500 Financials Sector UCITS
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		22.98%
M&G Real Estate Asia Holding Company Pte. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		33.00%
Manulife Asia Pacific Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.29%
Manulife China Offshore Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		39.57%
Manulife USD High Yield Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		37.47%
Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		33.30%
Nomura Six Years Fixed Maturity Emerging Market Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		42.14%
Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		25.01%
PPM America Capital Partners IV, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		34.50%
PPM America Capital Partners V, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		34.00%
PPM America Capital Partners VI, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		32.00%
PPM America Private Equity Fund IV LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.97%
PPM America Private Equity Fund V LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.97%
Prenetics Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		14.27%
Prudential Pensions Management Zambia Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.00%
Eastspring Investments - US High Yield Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.96%
Eastspring Investments Asian High Yield Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		39.86%
Fubon China Currency Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		20.59%
SCB SET Banking Sector Index (Accumulation)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		32.08%
Schroder Asian Investment Grade Credit
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		41.08%
Schroder US Dollar Money Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		37.19%
Scotts Spazio Pte. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		45.00%
SINOPAC China High Yield Fixed Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		35.38%
Taishin Emerging Markets Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		28.78%
Templeton Asian Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		26.08%
Thanachart Long Term Fixed Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		27.79%
UOB Smart Global Healthcare
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		35.44%
UOB Smart Millennium Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.96%
BOCI-Prudential Asset Management Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.00%
BOCI-Prudential Trustee Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		36.00%
CITIC-CP Asset Management Co., Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		26.95%
CITIC-Prudential Fund Management Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.00%
CITIC-Prudential Life Insurance Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.00%
Prudential BSN Takaful Berhad
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		49.00%	70.00%	49.00%
Prudential Corporation Asia Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held (as a percent)		100.00%
Prudential Group Holdings Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held (as a percent)		100.00%
95th Avenue Retail Building, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Aberdeen Standard Singapore Equity
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		60.44%
Allied Life Brokerage Agency, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
BeGeneral Insurance S.A.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		51.00%
BeLife Insurance S.A.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.93%
Beneficial General Insurance S.A
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.04%
Beneficial Life Insurance S.A.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		51.00%
Beneficial Life Insurance S.A.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.99%
BOCHK Aggressive Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		65.61%
BOCHK Balanced Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		55.31%
BOCHK China Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		71.35%
BOCHK Conservative Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		55.24%
Brier Capital LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Brooke (Holdco 1) Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Brooke Life Insurance Company
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Curian Capital, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Curian Clearing LLC (Michigan)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Al-Wara' Investments Berhad
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Asset Management Korea Co. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Global Smart Beta EMP Securities Investment Trust (H)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		71.97%
Eastspring Global Smart Beta EMP Securities Investor Trust (USD)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.46%
Eastspring Infrastructure Debt Fund L.P.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		90.00%
Eastspring Investment Asia Real Estate Multi Asset Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.99%
Eastspring Investment Asia Sustainable Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investment Management (Shanghai) Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments - Global Growth Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		73.57%
Eastspring Investments - Global Low Volatility Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		98.72%
Eastspring Investments - Global Technology Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		82.24%
Eastspring Investments - Japan Fundamental Value Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.85%
Eastspring Investments - Pan European Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		61.01%
Eastspring Investments (Hong Kong) Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments (Luxembourg) SA
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments (Singapore) Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Asia Oceania High Dividend Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Asia Oceania U&I Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.93%
Eastspring Investments Asia Pacific Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.99%
Eastspring Investments Asian Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		53.60%
Eastspring Investments Asian Dynamic Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		92.59%
Eastspring Investments Asian Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		85.19%
Eastspring Investments Asian Equity Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		78.33%
Eastspring Investments Asian High Yield Bond MY Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		86.36%
Eastspring Investments Asian Investment Grade Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.93%
Eastspring Investments Asian Infrastructure Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.78%
Eastspring Investments Asian Low Volatility Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		97.27%
Eastspring Investments Asian Multi Factor Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Asian Property Securities Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		97.72%
Eastspring Investments Berhad
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments China A Shares Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Dragon Peacock Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		53.18%
Eastspring Investments European Inv Grade Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.28%
Eastspring Investments Fund Management Limited Liability Company
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Global Emerging Markets Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		97.03%
Eastspring Investments Global Equity Navigator Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Global Market Navigator Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.68%
Eastspring Investments Global Multi Asset Income Plus Growth Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.99%
Eastspring Investments Greater China Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		95.19%
Eastspring Investments Hong Kong Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		93.10%
Eastspring Investments Incorporated
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments India Consumer Equity Open Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments India Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		68.69%
Eastspring Investments India Equity Open Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments India Infrastructure Equity Open Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments North America Value Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.84%
Eastspring Investments Services Pte. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments SICAV-FIS - Alternative Investments Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments SICAV-FIS Universal USD Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments SICAV-FIS Universal USD Bond II Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments Unit Trust - Dragon Peacock Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		97.59%
Eastspring Investments US Corporate Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		70.82%
Eastspring Investments US High Inv Grade Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		91.67%
Eastspring Investments US Strategic Income Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments US Total Return Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Investments UT Singapore ASEAN Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.76%
Eastspring Investments UT Singapore Select Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		77.80%
Eastspring Investments Vietnam Navigator Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		71.42%
Eastspring Investments World Value Equity Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		92.88%
Eastspring Overseas Investment Fund Management (Shanghai) Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Real Assets Partners
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Eastspring Securities Investment Trust Co., Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.54%
First State China Focus Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		66.58%
First State Global Property A
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		52.26%
Furnival Insurance Company PCC Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
GS Twenty Two Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Hermitage Management LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Hyde Holdco 1 Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Invesco Fixed Maturity Selective Emerging Market Bonds 2024
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		61.60%
Invesco Select 6 Year Maturity Global Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		68.28%
INVEST Financial Company Insurance Agency LLC of Illinois
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
iShares S&P 500 Utilities Sector UCITS ETF
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		53.39%
Jackson Charitable Foundation Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson Holdings LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson National Asset Management LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson National Life (Bermuda) Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson National Life Distributors LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson National Life Insurance Company
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Jackson National Life Insurance Company of New York
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Lasalle Property Securities SICAV-FIS
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.97%
M&G Asia Property Trust
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.97%
M&G Luxembourg European Strategic Value Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.24%
Manulife China Dim Sum High Yield Bond Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		58.33%
Mission Plans of America, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
National Planning Holdings, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
North Sathorn Holdings Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PCA IP Services Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PCA Life Assurance Co. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.79%
PCA Reinsurance Co. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PGDS (US One) LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM America Capital Partners III, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		60.50%
PPM America Private Equity Fund III LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.06%
PPM America Private Equity Fund VI LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		59.94%
PPM America Private Equity Fund VII LP
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		54.00%
PPM America, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 2 Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 2, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 2018-1 Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 3 Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 3, LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM CLO 4 Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM Funds - PPM Core Plus Fixed Income Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM Funds - PPM Large Cap Value Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.96%
PPM Funds - PPM Long Short Credit Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM Funds - PPM Mid Cap Value Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.57%
PPM Holdings, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM Loan Management Company LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
PPM Loan Management Holding Company LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Pru Life Insurance Corporation of U.K.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Pru Life UK Asset Management and Trust Corporation
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudence Foundation
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential (Cambodia) Life Assurance Plc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential (US Holdco 1) Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Africa Holdings Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Africa Services Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Assurance Company Singapore (Pte) Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Assurance Malaysia Berhad
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		51.00%
Percentage of consolidation of entity		100.00%
Prudential Assurance Uganda Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Corporation Australasia Holdings Pty Limited (in liquidation)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Corporation Holdings Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Five Limited (in liquidation)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential General Insurance Hong Kong Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Group Secretarial Services HK Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Group Secretarial Services Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Holdings Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Hong Kong Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential International Staff Pensions Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential International Treasury Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential IP Services Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Life Assurance (Lao) Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Life Assurance (Thailand) Public Company Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.93%
Prudential Life Assurance Kenya Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Life Assurance Zambia Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Life Insurance Ghana Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Life Vault Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Mauritius Holdings Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Myanmar Life Insurance Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Services Asia Sdn. Bhd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Services Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Services Singapore Pte. Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Singapore Holdings Pte. Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Vietnam Assurance Private Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Prudential Zenith Life Insurance Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		51.00%
PT. Eastspring Investments Indonesia
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.95%
PT. Prudential Life Assurance
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		94.62%
PVFC Financial Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
REALIC of Jacksonville Plans, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Reksa Dana Eastspring IDR Fixed Income Fund (NDEIFF)
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.91%
Reksa Dana Eastspring Investments Alpha Navigator Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		78.29%
Reksa Dana Eastspring Investments Cash Reserve
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Reksa Dana Eastspring Investments IDR High Grade
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		91.04%
Reksa Dana Eastspring Investments Value Discovery
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		91.94%
Reksa Dana Syariah Eastspring Syariah Equity Islamic Asia Pacific USD
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		94.37%
Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		65.65%
Reksa Dana Syariah Eastspring Syariah Money Market Khazanah
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.93%
Reksa Dana Syariah Penyertaan Terbatas Bahana Syariah BUMN Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.01%
Rhodium Investment Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.98%
ROP, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Schroder Emerging Markets Fund
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		58.49%
Schroder Multi-Asset Revolution
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		63.81%
Squire Capital I LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Squire Capital II LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Squire Reassurance Company II, Inc
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Squire Reassurance Company LLC
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Sri Han Suria Sdn. Bhd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		51.00%
Staple Limited
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Thanachart Fund Management Co., Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		50.10%
TMB Asset Management Co., Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)	65.00%	65.00%
VFL International Life Company SPC, Ltd.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		100.00%
Wynnefield Private Equity Partners I, L.P.
Investments in subsidiaries, joint ventures, associates and significant holdings
Proportion held indirectly - related undertakings (as a percent)		99.00%

Condensed Financial Informati_2

Condensed Financial Information of Registrant Prudential plc - Profit and Loss Accounts (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other charges:
Profit before tax (being tax attributable to shareholders' and policyholders' returns)	[1]	$ 2,287	$ 3,557	$ 2,909
Tax credit on profit on ordinary activities		(334)	(676)	(1,161)
Profit for the year		783	4,019	3,080
Items that will not be reclassified to profit or loss
Net actuarial (losses) gains on defined benefit pension schemes		(108)	26	44
Related tax		19	(5)	(8)
Prudential plc
Profit and Loss Accounts
Investment income, including dividends received from subsidiary undertakings		9,707	2,143	2,265
Investment expenses and charges		(515)	(549)	(534)
Gain on revaluation of M&G plc		3,649
Other charges:
Corporate expenditure		(713)	(346)	(280)
Foreign currency exchange (losses) gains		(18)	7	(12)
Profit before tax (being tax attributable to shareholders' and policyholders' returns)		12,110	1,255	1,439
Tax credit on profit on ordinary activities		145	135	153
Profit for the year		12,255	1,390	1,592
Items that may be reclassified subsequently to profit or loss
Exchange movements arising during the year		393	(428)	676
Items that will not be reclassified to profit or loss
Net actuarial (losses) gains on defined benefit pension schemes		(91)	25	44
Related tax		16	(4)	(8)
Other comprehensive income for the period, net of related tax		318	(407)	712
Total comprehensive income for the year		$ 12,573	$ 983	$ 2,304
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.

Condensed Financial Informati_3

Condensed Financial Information of Registrant Prudential plc - Statements of Financial Position (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018
Current assets
Debtors: Other debtors	$ 2,054	[1]	$ 5,207
Tax recoverable	492	[1]	476
Cash at bank and in hand	2,071
Liabilities: amounts falling due within one year
Deferred tax liability	(5,237)	[1]	(3,771)
Accruals and deferred income	(582)
Capital and reserves
Shareholders' funds	19,477	[1]	21,968
Prudential plc
Non-current assets
Investments in subsidiary undertakings	10,444		13,787
Amounts owed by subsidiary undertakings	2,000
Total non-current assets	12,444		13,787
Current assets
Debtors: Amounts owed by subsidiary undertakings	6,352		7,520
Debtors: Other debtors	4		6
Tax recoverable	66		53
Derivative assets			6
Pension asset			88
Cash at bank and in hand	54		28
Total current assets	6,476		7,701
Liabilities: amounts falling due within one year
Commercial paper	(520)		(601)
Derivative liabilities			(539)
Amounts owed to subsidiary undertakings	(141)		(1,192)
Tax payable	(14)		(13)
Deferred tax liability			(15)
Accruals and deferred income	(78)		(129)
Total current liabilities	(753)		(2,489)
Net current assets	5,723		5,212
Total assets less current liabilities	18,167		18,999
Liabilities: amounts falling due after more than one year
Subordinated liabilities	(4,304)		(8,503)
Debenture loans	(690)		(658)
Other borrowings			(350)
Total non-current liabilities	(4,994)		(9,511)
Total net assets	13,173		9,488
Capital and reserves
Share capital	172		166
Share premium	2,625		2,502
Profit and loss account	10,376		6,820
Shareholders' funds	$ 13,173		$ 9,488
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Condensed Financial Informati_4

Condensed Financial Information of Registrant Prudential plc - Statements of Changes in Equity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Balance at beginning of year	$ 21,991		$ 21,771	$ 18,124
Comprehensive income
Profit for the year	783		4,019	3,080
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes	22		23	27
Share based payment transactions	64		92	115
Dividend in specie of M&G plc	(7,379)
Dividends	(1,634)		(1,662)	(1,525)
Balance at end of year	19,669	[1]	21,991	21,771
Share capital
Balance at beginning of year	166		175	159
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes			1
Impact of change in presentation currency in relation to share capital and share premium	6		(10)
Balance at end of year	172		166	175
Share premium
Balance at beginning of year	2,502		2,635	2,381
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes	22		22	27
Impact of change in presentation currency in relation to share capital and share premium	101		(155)
Balance at end of year	2,625		2,502	2,635
Prudential plc
Balance at beginning of year	9,488		10,321	9,273
Changes in equity
Impact of initial application of IFRS 9			(12)
Comprehensive income
Profit for the year	12,255		1,390	1,592
Foreign exchange translation differences due to change in presentation currency	393		(428)	676
Actuarial gains recognised in respect of the defined benefit pension scheme	(75)		21	36
Total comprehensive income for the year	12,573		983	2,304
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes	22		23	27
Share based payment transactions	(4)			(1)
Dividend in specie of M&G plc	(7,379)
Dividends	(1,634)		(1,662)	(1,525)
Impact of change in presentation currency in relation to share capital and share premium	107		(165)	243
Total contributions by and distributions to owners	(8,888)		(1,804)	(1,256)
Balance at end of year	13,173		9,488	10,321
Prudential plc | Share capital
Balance at beginning of year	166		175	159
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes			1
Impact of change in presentation currency in relation to share capital and share premium	6		(10)	16
Total contributions by and distributions to owners	6		(9)	16
Balance at end of year	172		166	175
Prudential plc | Share premium
Balance at beginning of year	2,502		2,635	2,381
Transactions with owners, recorded directly in equity
Shares issued under share-based schemes	22		22	27
Impact of change in presentation currency in relation to share capital and share premium	101		(155)	227
Total contributions by and distributions to owners	123		(133)	254
Balance at end of year	2,625		2,502	2,635
Prudential plc | Profit and loss account
Balance at beginning of year	6,820		7,511	6,733
Changes in equity
Impact of initial application of IFRS 9			(12)
Comprehensive income
Profit for the year	12,255		1,390	1,592
Foreign exchange translation differences due to change in presentation currency	393		(428)	676
Actuarial gains recognised in respect of the defined benefit pension scheme	(75)		21	36
Total comprehensive income for the year	12,573		983	2,304
Transactions with owners, recorded directly in equity
Share based payment transactions	(4)			(1)
Dividend in specie of M&G plc	(7,379)
Dividends	(1,634)		(1,662)	(1,525)
Total contributions by and distributions to owners	(9,017)		(1,662)	(1,526)
Balance at end of year	$ 10,376		$ 6,820	$ 7,511
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1

Condensed Financial Informati_5

Condensed Financial Information of Registrant Prudential plc - Statements of Cash Flows (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating
Taxes received		$ (717)	$ (477)	$ (611)
Financing
Issues of ordinary share capital		22	23	27
Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities
Profit before tax	[1]	2,287	3,557	2,909
Adjustments for non-cash items:
Financial assets not past due or impaired due to renegotiation of terms		0	29
Prudential plc
Operating
Net cash inflow from operating activities before interest and tax		6,015	1,868	1,977
Interest paid		(500)	(537)	(527)
Taxes received		117	130	156
Equity dividends paid		(1,634)	(1,662)	(1,525)
Net cash inflow (outflow) before financing		3,998	(201)	81
Financing
Issues of ordinary share capital		22	23	27
Issue of debt		367	2,132	728
Redemption of debt		(863)	(1,381)	(968)
Transfer of debt to M&G plc prior to demerger of UK and Europe operations		(4,161)
Movement in commercial paper and other borrowings to support a short-term fixed income securities program		(81)	(19)	(731)
Investment in subsidiary undertakings		118
Investment in subsidiary undertakings			(117)
Movement in net amount owed by subsidiary undertakings		626	(600)	985
Net cash flows from financing activities		(3,972)	38	41
Net cash inflow (outflow) for the year		26	(163)	122
Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities
Profit before tax		12,110	1,255	1,439
Add back: interest charged		515	558	546
Adjustments for non-cash items:
Fair value adjustments on derivatives		77	(28)	(5)
Pension scheme		(21)	28	14
Non-cash dividends received		(2,960)
Revaluation of M&G plc on distribution		(3,649)
Foreign currency exchange and other movements		(8)	26	(35)
Decrease (increase) in debtors		2		8
Increase (decrease) in creditors		(51)	29	10
Net cash inflow from operating activities		$ 6,015	$ 1,868	$ 1,977
[1]	This measure is the formal profit before tax measure under IFRS. It is not the result attributable to shareholders principally because total corporate tax of the Group includes those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders.

Condensed Financial Informati_6

Condensed Financial Information of Registrant Prudential plc - Notes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Additional information
Profit after tax of the Group attributable to shareholders in accordance with IFRS	$ 783		$ 4,019	$ 3,080
Shareholders' equity of the Group in accordance with IFRS	19,477	[1]	21,968
Accounting policy difference
Additional information
Profit after tax of the Group attributable to shareholders in accordance with IFRS	15		7
Shareholders' equity of the Group in accordance with IFRS	33		18
Share in IFRS amount of the Group
Additional information
Profit after tax of the Group attributable to shareholders in accordance with IFRS	(11,487)		2,622	1,488
Shareholders' equity of the Group in accordance with IFRS	6,271		12,462
Prudential plc
Additional information
Dividends received by parent company from consolidated subsidiary undertakings	9,599		1,996	2,227
Profit after tax of the Group attributable to shareholders in accordance with IFRS	12,255		1,390	$ 1,592
Shareholders' equity of the Group in accordance with IFRS	$ 13,173		$ 9,488
[1]	The Group has adopted a change in its presentation currency from pounds sterling to US dollars at 31 December 2019 as described in note A1. Accordingly, the 31 December 2018 and 1 January 2018 comparative statements of financial position and the 2018 related notes have been re-presented retrospectively from the previously published results. As a result of this change, the statement of financial position as at 1 January 2018 has been re-presented in accordance with IAS 1