Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 | |
Document and Entity Information | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2022 |
Entity Registrant Name | PRUDENTIAL PLC |
Entity Central Index Key | 0001116578 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2022 |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Income Statement - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Continuing operations: | |||
Gross premiums earned | $ 12,241 | $ 11,521 | |
Outward reinsurance premiums | (919) | (898) | |
Earned premiums, net of reinsurance | 11,322 | 10,623 | |
Investment return | (24,570) | 738 | |
Other income | 253 | 331 | |
Total revenue, net of reinsurance | (12,995) | 11,692 | |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | 14,826 | (7,748) | |
Acquisition costs and other expenditure | (1,632) | (2,402) | |
Finance costs: interest on core structural borrowings of shareholder-financed businesses | (103) | (164) | |
Gain (loss) attaching to corporate transactions | 62 | (56) | |
Total charges, net of reinsurance | 13,153 | (10,370) | |
Share of profit from joint ventures and associates, net of related tax | 16 | 179 | |
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | 174 | 1,501 |
Remove tax credit (charge) attributable to policyholders' returns | 126 | (238) | |
Profit before tax attributable to shareholders' returns | 300 | 1,263 | |
Total tax charge attributable to shareholders' and policyholders' returns | (68) | (431) | |
Remove tax (credit) charge attributable to policyholders' returns | (126) | 238 | |
Tax charge attributable to shareholders' returns | (194) | (193) | |
Profit after tax from continuing operations | 106 | 1,070 | |
Loss after tax from discontinued US operations | [2] | (5,707) | |
Profit (loss) for the period | 106 | (4,637) | |
Attributable to: | |||
Equity holders of the Company From continuing operations | 104 | 1,063 | |
Equity holders of the Company From discontinued operations | (5,073) | ||
Profit (loss) attributable to equity holders of the company | 104 | (4,010) | |
Non-controlling interests from continuing operations | 2 | 7 | |
Non-controlling interests from discontinued operations | (634) | ||
Profit (loss) attributable to non-controlling interests | 2 | (627) | |
Profit (loss) for the period | $ 106 | $ (4,637) | |
Basic | |||
Based on profit from continuing operations (in USD per share) | $ 0.038 | $ 0.409 | |
Based on loss from discontinued operations (in USD per share) | (1.951) | ||
Total basic earnings per share (in USD per share) | 0.038 | (1.542) | |
Diluted | |||
Based on profit continuing operations (in USD per share) | 0.038 | 0.409 | |
Based on loss from discontinued operations (in USD per share) | (1.951) | ||
Total diluted earnings per share (in USD per share) | 0.038 | (1.542) | |
Dividends relating to reporting period: | |||
First interim ordinary dividend | 0.0574 | 0.0537 | |
Dividends paid in reporting period: | |||
Second interim ordinary dividend for prior year | $ 0.1186 | $ 0.1073 | |
[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 taxes 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. Discontinued operations for half year and full year 2021 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statement of Comprehensive income - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Continuing operations: | ||
Profit for the period | $ 106 | $ 1,070 |
Other comprehensive income (loss): | ||
Exchange movements arising during the period | (523) | (163) |
Valuation movements on retained interest in Jackson classified as available-for-sale securities | (247) | |
Total items that may be reclassified subsequently to profit or loss | (770) | (163) |
Total comprehensive (loss) income from continuing operations | (664) | 907 |
Total comprehensive loss for the period from discontinued US operations | (6,574) | |
Total comprehensive income (loss) for the period | (664) | (5,667) |
Equity holders of the Company: | ||
From continuing operations | (656) | 905 |
From discontinued US operations | (5,844) | |
Total comprehensive (loss) income, attributable to equity holders of the Company | (656) | (4,939) |
Non-controlling interests: | ||
From continuing operations | (8) | 2 |
From discontinued US operations | (730) | |
Total comprehensive (loss) income, attributable to non-controlling interests | (8) | (728) |
Total comprehensive income (loss) for the period | $ (664) | $ (5,667) |
Unaudited condensed consolida_3
Unaudited condensed 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 for the period | $ 1,063 | $ 1,063 | $ 7 | $ 1,070 | ||||
Other comprehensive loss | (158) | $ (158) | (5) | (163) | ||||
Total comprehensive (loss) income from continuing operations | 905 | 1,063 | (158) | 2 | 907 | |||
Total comprehensive loss from discontinued US operations | (5,844) | (5,073) | $ (771) | (730) | (6,574) | |||
Total comprehensive income (loss) for the period | (4,939) | (4,010) | (158) | (771) | (728) | (5,667) | ||
Dividends | (283) | (283) | (3) | (286) | ||||
Reserve movements in respect of share-based payments | 77 | 77 | 77 | |||||
Effect of transactions relating to non-controlling interests | (10) | (10) | (10) | |||||
New share capital subscribed | 8 | $ 8 | 8 | |||||
Movement in own shares in respect of share-based payment plans | (18) | (18) | (18) | |||||
Net increase (decrease) in equity | (5,165) | 8 | (4,244) | (158) | (771) | (731) | (5,896) | |
Balance at beginning of period at Dec. 31, 2020 | 20,878 | $ 173 | 2,637 | 14,424 | 1,132 | 2,512 | 1,241 | 22,119 |
Balance at end of period at Jun. 30, 2021 | 15,713 | 173 | 2,645 | 10,180 | 974 | 1,741 | 510 | 16,223 |
Balance at beginning of period at Dec. 31, 2020 | 20,878 | 173 | 2,637 | 14,424 | 1,132 | 2,512 | 1,241 | 22,119 |
Balance at end of period at Dec. 31, 2021 | 17,088 | 182 | 5,010 | 10,216 | 1,430 | 250 | 176 | 17,264 |
Reserves | ||||||||
Profit for the period | 104 | 104 | 2 | 106 | ||||
Other comprehensive loss | (760) | (513) | (247) | (10) | (770) | |||
Total comprehensive (loss) income from continuing operations | (664) | |||||||
Total comprehensive income (loss) for the period | (656) | 104 | (513) | (247) | (8) | (664) | ||
Dividends | (320) | (320) | (5) | (325) | ||||
Reserve movements in respect of share-based payments | 15 | 15 | 15 | |||||
Effect of transactions relating to non-controlling interests | (14) | (14) | (14) | |||||
Movement in own shares in respect of share-based payment plans | (4) | (4) | (4) | |||||
Net increase (decrease) in equity | (979) | (219) | (513) | (247) | (13) | (992) | ||
Balance at end of period at Jun. 30, 2022 | $ 16,109 | $ 182 | $ 5,010 | $ 9,997 | $ 917 | $ 3 | $ 163 | $ 16,272 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statement of Financial Position - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Goodwill | $ 871 | $ 907 | |
Deferred acquisition costs and other intangible assets | 6,750 | 6,858 | |
Property, plant and equipment | 405 | 478 | |
Reinsurers' share of insurance contract liabilities | 2,750 | 9,753 | |
Deferred tax assets | 378 | 266 | |
Current tax recoverable | 22 | 20 | |
Accrued investment income | 1,187 | 1,171 | |
Other debtors | 2,076 | 1,779 | |
Investment properties | 35 | 38 | |
Investments in joint ventures and associates accounted for using the equity method | 2,010 | 2,183 | |
Loans | 2,429 | 2,562 | |
Equity securities and holdings in collective investment schemes | [1] | 57,497 | 61,601 |
Debt securities | [1] | 79,119 | 99,094 |
Derivative assets | 182 | 481 | |
Deposits | 4,762 | 4,741 | |
Cash and cash equivalents | 6,415 | 7,170 | |
Total assets | 166,888 | 199,102 | |
Equity | |||
Shareholders' equity | 16,109 | 17,088 | |
Non-controlling interests | 163 | 176 | |
Total equity | 16,272 | 17,264 | |
Liabilities | |||
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) | 123,529 | 151,915 | |
Unallocated surplus of with-profits funds | 4,568 | 5,384 | |
Core structural borrowings of shareholder-financed businesses | 4,266 | 6,127 | |
Operational borrowings | 854 | 861 | |
Obligations under funding, securities lending and sale and repurchase agreements | 799 | 223 | |
Net asset value attributable to unit holders of consolidated investment funds | 4,549 | 5,664 | |
Deferred tax liabilities | 2,699 | 2,862 | |
Current tax liabilities | 253 | 185 | |
Accruals, deferred income and other creditors | 8,103 | 7,983 | |
Provisions | 225 | 372 | |
Derivative liabilities | 771 | 262 | |
Total liabilities | 150,616 | 181,838 | |
Total equity and liabilities | $ 166,888 | $ 199,102 | |
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 30 June 2022 are $1,384 million of lent securities and assets subject to repurchase agreements (31 December 2021: $854 million). |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statement of Financial Position (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Unaudited Condensed Consolidated Statement of Financial Position | ||
Lent securities and assets subject to repurchase agreements | $ 1,384 | $ 854 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities | |||
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 174 | $ 1,501 |
Adjustments to profit before tax for non-cash movements in operating assets and liabilities: | |||
Investments | 21,017 | (5,651) | |
Other non-investment and non-cash assets | 6,446 | 2,693 | |
Policyholder liabilities (including unallocated surplus of with-profits funds) | (25,972) | 2,424 | |
Other liabilities (including operational borrowings) | 74 | 105 | |
Other items | [2] | (23) | 156 |
Net cash flows from operating activities | [3] | 1,716 | 1,228 |
Cash flows from investing activities | |||
Net cash flows from purchases and disposals of property, plant and equipment | (14) | (19) | |
Net cash flows from other investing activities | [4] | (50) | (773) |
Net cash flows from investing activities | (64) | (792) | |
Structural borrowings of shareholder-financed operations: | |||
Issuance of debt, net of costs | [5] | 346 | |
Redemption of debt | [5] | (2,075) | |
Interest paid | [5] | (117) | (163) |
Payment of principal portion of lease liabilities | (56) | (54) | |
Equity capital: | |||
Issues of ordinary share capital | 8 | ||
External dividends: | |||
Dividends paid to the Company's shareholders | (320) | (283) | |
Dividends paid to non-controlling interests | (5) | (3) | |
Net cash flows from financing activities | (2,227) | (495) | |
Net (decrease) increase in cash and cash equivalents from continuing operations | (575) | (59) | |
Net decrease in cash and cash equivalents from discontinued US operations | (460) | ||
Cash and cash equivalents at beginning of period | 7,170 | 8,018 | |
Effect of exchange rate changes on cash and cash equivalents | (180) | (43) | |
Cash and cash equivalents at end of period | 6,415 | 7,456 | |
Comprising: | |||
Cash and cash equivalents from continuing operations | $ 6,415 | 6,295 | |
Cash and cash equivalents from discontinued US operations | $ 1,161 | ||
[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 taxes 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. Other items include adjustments to profit before tax in respect of non-cash items together with operational interest receipts and payments, dividend receipts and tax paid. Included in net cash flows from operating activities are dividends from joint ventures and associates of $60 million (half year 2021: $114 million). Net cash flows from other investing activities include amounts paid for distribution rights and cash flows arising from the sale of subsidiaries, joint ventures and associates and investments that do not form part of the Group's operating activities. Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, non-recourse borrowings of investment subsidiaries of shareholder-financed businesses and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from operating activities. |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Borrowings | |||
Dividends from joint ventures and associates | $ 60 | $ 114 | |
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows: | |||
Issuance of debt | [1] | 346 | |
Redemption of debt | [1] | (2,075) | |
Core structural borrowings of shareholder-financed businesses | |||
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows: | |||
Balance at beginning of period | 6,127 | ||
Issuance of debt | 346 | ||
Redemption of debt | (2,075) | ||
Foreign exchange movement | (137) | 14 | |
Demerger of Jackson | (250) | ||
Other movements | 5 | 7 | |
Balance at end of period | $ 4,266 | 6,404 | |
Core structural borrowings of shareholder-financed businesses | 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 period | $ 6,633 | ||
[1] 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. |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2022 | |
Basis of preparation | |
Basis of preparation | A Basis of preparation A1 Basis of preparation and exchange rates These condensed consolidated interim financial statements (‘interim financial statements’) for the six months ended 30 June 2022 have been prepared in accordance with both IAS 34 ‘Interim Financial Reporting’ as issued by the IASB and IAS 34 as adopted for use in the UK. The Group’s policy for preparing this interim financial information is to use the accounting policies adopted by the Group in its last consolidated financial statements, as updated by any changes in accounting policies it intends to make in its next consolidated financial statements as a result of new or amended IFRS and other policy improvements. At 30 June 2022, there were no The accounting policies applied by the Group in determining the IFRS financial results in this report are the same as those previously applied in the Group’s consolidated financial statements for the year ended 31 December 2021, as disclosed in the 2021 Form 20-F, aside from those discussed in note A2 below. These 2021 consolidated financial statements do not represent Prudential’s statutory accounts for the purpose of the UK Companies Act 2006. Going concern basis of accounting The Directors have made an assessment of going concern covering a period of at least 12 months from the date that these interim financial statements are approved. In making this assessment, the Directors have considered both the Group’s current performance, solvency and liquidity and the Group’s business plan taking into account the Group’s principal risks, and the mitigations available to it, as well as the results of the Group’s stress and sensitivity testing. Based on the above, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue their operations for a period of at least 12 months from the date that these interim financial statements are approved. No material uncertainties that may cast significant doubt on the ability of the Group to continue as a going concern have been identified. The Directors therefore consider it appropriate to continue to adopt the going concern basis of accounting in preparing these interim financial statements for the period ended 30 June 2022. Exchange rates The exchange rates applied for balances and transactions in currencies other than the presentation currency of the Group, US dollars (USD) were: USD : local currency Closing rate at period end Average rate for the period to date 30 Jun 2022 31 Dec 2021 Half year 2022 Half year 2021 Chinese yuan (CNY) 6.69 6.37 6.48 6.47 Hong Kong dollar (HKD) 7.85 7.80 7.83 7.76 Indian rupee (INR) 78.97 74.34 76.23 73.33 Indonesian rupiah (IDR) 14,897.50 14,252.50 14,453.52 14,273.32 Malaysian ringgit (MYR) 4.41 4.17 4.27 4.10 Singapore dollar (SGD) 1.39 1.35 1.37 1.33 Taiwan dollar (TWD) 29.73 27.67 28.73 28.02 Thai baht (THB) 35.35 33.19 33.73 30.83 UK pound sterling (GBP) 0.82 0.74 0.77 0.72 Vietnamese dong (VND) 23,265.00 22,790.00 22,925.22 23,044.83 A2 New accounting pronouncements The IASB has issued the following new accounting pronouncements to be effective from 1 January 2022, unless otherwise stated: – Amendments to IAS 37 ‘Onerous contracts – Cost of Fulfilling a Contract’ issued in May 2020; – Annual Improvements to IFRS Standards 2018-2020 issued in May 2020; – Amendments to IAS 16 ‘Property, Plant and Equipment – Proceeds before Intended Use’ issued in May 2020; and – Reference to the Conceptual Framework – Amendments to IFRS 3 ‘Business combination’ issued in May 2020. The adoption of these pronouncements has had no significant impact on the Group interim financial statements. In addition, in 2023 IFRS 17 ‘Insurance Contracts’ and IFRS 9 ‘Financial Instruments’ will become effective. The Group has a Group-wide implementation programme 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. During half year 2022 the Group has made significant progress with the testing of new actuarial and finance systems in our preparations for IFRS 17 adoption in 2023. Elements of the detailed calculation methodology remain subject to wider discussion and debate in the industry. It is not currently practicable to provide reliable estimates of the quantitative impact on the Group’s results and financial position. A further update on our IFRS 17 progress will be provided in our FY 22 financial statements. |
Analysis of performance by segm
Analysis of performance by segment | 6 Months Ended |
Jun. 30, 2022 | |
Analysis of performance by segment | |
Analysis of performance by segment | B Earnings performance B1 Analysis of performance by segment B1.1 Segment results 2022 $m 2021 $m Note Half year Half year note (i) note (i) Continuing operations: CPL 149 139 Hong Kong 501 460 Indonesia 196 225 Malaysia 190 184 Singapore 340 320 Growth markets and other note (ii) 522 479 Eastspring 131 162 Other income (expenditure): Investment return and other income 39 — Interest payable on core structural borrowings (103) (164) Corporate expenditure note(iii) (150) (157) Total other income (expenditure) (214) (321) Restructuring and IFRS 17 implementation costs note (iv) (154) (77) Adjusted operating profit B1.2 1,661 1,571 Short-term fluctuations in investment returns on shareholder-backed business note (v) (1,383) (212) Amortisation of acquisition accounting adjustments (5) (2) Gain (loss) attaching to corporate transactions D1.1 27 (94) Profit before tax attributable to shareholders 300 1,263 Tax charge attributable to shareholders' returns B3 (194) (193) Profit from continuing operations 106 1,070 Loss from discontinued US operations D1.2 — (5,707) Profit (loss) for the period 106 (4,637) Attributable to: Equity holders of the Company: From continuing operations 104 1,063 From discontinued US operations — (5,073) 104 (4,010) Non-controlling interests: From continuing operations 2 7 From discontinued US operations — (634) 2 (627) Profit (loss) for the period 106 (4,637) Basic earnings per share (in cents) 2022 2021 Note Half year Half year B4 note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations 49.2 ¢ 51.6 ¢ Based on profit from continuing operations, net of non-controlling interest 3.8 ¢ 40.9 ¢ Based on loss from discontinued US operations, net of non-controlling interest — ¢ (195.1) ¢ Notes (i) Segment results are attributed to the shareholders of the Group before deducting the amount attributable to the non-controlling interests. This presentation is applied consistently throughout the document. (ii) Adjusted operating profit for growth markets and other includes other items of $160 million (half year 2021: $167 million) which in the first half of 2022 comprised largely of the impact of the adoption of the Risk-Based Capital regime in Hong Kong (as discussed further in note C3.2) offset by corporate taxes for life joint ventures and associates and provisions for sales and premium tax. (iii) Corporate expenditure as shown above is for head office functions in London and Hong Kong. (iv) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $(44) million (half year 2021: $(33) million). (v) In general, the short-term fluctuations reflect the value movements on shareholders’ assets and policyholder liabilities (net of reinsurance) arising from market movements in the period. In half year 2022, rising interest rates and widening credits spreads across a number of the Group’s life insurance markets led to unrealised bond losses which more than offset the impact of higher discount rates on policyholder liabilities under the local reserving basis applied. The interest rates rises in the first half of 2022 were more substantial than that seen in the first half 2021. Short-term fluctuations also reflect losses on equities backing shareholder-backed business following market movements in the period (compared with equity gains in the prior period) and the impact of refinements to the reserving basis in Hong Kong following the adoption of the Risk-Based Capital regime as discussed further in note C3.2. B1.2 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), chaired by the Group Chief Executive. There have been no changes to the Group’s operating segments as reported in these interim financial statements from those reported in the Group’s consolidated financial statements for the year ended 31 December 2021. Performance measure The performance measure of operating segments utilised by the Group is IFRS operating profit based on longer-term investment returns (adjusted operating profit) as described below. This measurement basis distinguishes adjusted operating profit from other constituents of total profit or loss for the period as follows: – Short-term fluctuations in investment returns on shareholder-backed business; – Amortisation of acquisition accounting adjustments arising on the purchase of business; and – Gain or loss on corporate transactions, as discussed in note D1.1. The determination of adjusted operating profit for investment and liability movements is as described in note B1.2 of the Group’s consolidated financial statements for the year ended 31 December 2021. For debt securities at 30 June 2022, the level of unamortised interest-related realised gains and losses related to previously sold bonds was a net gain of $211 million (31 December 2021: $515 million). 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 insurance operations, investments in equity securities held for non-linked shareholder-backed business at 30 June 2022 amounted to $5,756 million (31 December 2021: $6,073 million). The longer-term rates of return applied in half year 2022 ranged from 4.6 per cent to 16.9 per cent (half year 2021: 5.5 per cent to 16.9 per cent) with the rates applied varying by business unit. B1.3 Additional segmental analysis of revenue Half year 2022 $m Insurance operations note (i) Growth Inter Un- markets -segment allocated Hong and elimi- Total to a Kong Indonesia Malaysia Singapore other Eastspring nation segment segment Total Gross premiums earned 4,672 809 934 3,616 2,210 — — 12,241 — 12,241 Outward reinsurance premiums (771) (18) (29) (70) (31) — — (919) — (919) Earned premiums, net of reinsurance 3,901 791 905 3,546 2,179 — — 11,322 — 11,322 Other income note (ii) 14 4 — 9 45 181 — 253 — 253 Total external revenue 3,915 795 905 3,555 2,224 181 — 11,575 — 11,575 Intra-group revenue — — — — 1 106 (107) — — — Interest income 510 39 115 395 317 1 — 1,377 3 1,380 Dividend and other investment income 338 103 103 321 66 — — 931 19 950 Investment (depreciation) appreciation (17,752) (144) (557) (6,134) (2,324) (17) — (26,928) 28 (26,900) Total revenue, net of reinsurance (12,989) 793 566 (1,863) 284 271 (107) (13,045) 50 (12,995) Half year 2021 $m Insurance operations note (i) Growth Inter Un- markets -segment allocated Hong and elimi- Total to a Kong Indonesia Malaysia Singapore other Eastspring nation segment segment Total Gross premiums earned 4,776 871 929 2,934 2,011 — — 11,521 — 11,521 Outward reinsurance premiums (767) (28) (22) (55) (26) — — (898) — (898) Earned premiums, net of reinsurance 4,009 843 907 2,879 1,985 — — 10,623 — 10,623 Other income note (ii) 24 5 1 10 57 234 — 331 — 331 Total external revenue 4,033 848 908 2,889 2,042 234 — 10,954 — 10,954 Intra-group revenue — — — — — 106 (106) — — — Interest income 528 46 117 462 303 1 — 1,457 — 1,457 Dividend and other investment income 214 33 101 186 39 — — 573 — 573 Investment (depreciation) appreciation (1,444) (135) (280) 817 (259) 9 — (1,292) — (1,292) Total revenue, net of reinsurance 3,331 792 846 4,354 2,125 350 (106) 11,692 — 11,692 Notes (i) CPL, Prudential’s life business in the Chinese Mainland, is a 50/50 joint venture with CITIC and is accounted for using the equity method under IFRS. The Group’s share of its results is presented in a single line within the Group’s profit before tax on a net of related tax basis and therefore not shown in the analysis of revenue line items above. Revenue from external customers of CPL (Prudential’s share) in half year 2022 is $1,605 million (half year 2021: $1,307 million). (ii) Other income comprises income from external customers and consists primarily of revenue from the Group’s asset management business of $181 million (half year 2021: $234 million). The remaining other income consists primarily of policy fee revenue from external customers and asset management rebate revenue from external fund managers. B1.4 Additional segmental analysis of profit after tax 2022 $m 2021 $m Half year Half year CPL (28) 148 Hong Kong (613) 441 Indonesia 131 179 Malaysia 119 135 Singapore 63 141 Growth markets and other note (i) 617 330 Eastspring 117 147 Total segment 406 1,521 Unallocated to a segment (central operations) note (ii) (300) (451) Total profit after tax from continuing operations 106 1,070 Notes (i) The Growth markets and other segment comprises all other Asia and Africa insurance businesses alongside other amounts that are not included in the segment profit of an individual business unit including tax on life joint ventures and associates and other items that are not representative of the underlying segment trading for the period, in line with the presentation used by management when assessing the performance of the underlying segments internally. (ii) Comprising other income and expenditure of $(214) million (half year 2021: $(321) million) attributable to the head office functions in London and Hong Kong and $(154) million (half year 2021: $(77) million) of restructuring and IFRS 17 implementation costs as shown in note B1.1, $7 million (half year 2021: $(4) million) of short-term fluctuations on investment returns, $62 million (half year 2021: $(56) million) from corporate transactions as shown in note D1.1 and related tax of $(1) million (half year 2021: $7 million). |
Acquisition costs and other exp
Acquisition costs and other expenditure | 6 Months Ended |
Jun. 30, 2022 | |
Acquisition costs and other expenditure | |
Acquisition costs and other expenditure | B2 Acquisition costs and other expenditure 2022 $m 2021 $m Half year Half year Acquisition costs incurred for insurance policies (1,120) (1,026) Acquisition costs deferred 426 373 Amortisation of acquisition costs (249) (186) Administration costs and other expenditure (net of other reinsurance commission) note (1,572) (1,542) Movements in amounts attributable to external unit holders of consolidated investment funds 883 (21) Total acquisition costs and other expenditure from continuing operations (1,632) (2,402) Note Included in total administration costs and other expenditure is depreciation of property, plant and equipment of $(71) million (half year 2021: $(85) million), of which $(53) million (half year 2021: $(62) million) relates to the right-of-use assets recognised under IFRS 16 and interest on the IFRS 16 lease liabilities of $(5) million (half year 2021: $(6) million). |
Tax charge
Tax charge | 6 Months Ended |
Jun. 30, 2022 | |
Tax charge | |
Tax charge | B3 Tax charge B3.1 Total tax charge by nature The total tax charge from continuing operations in the income statement is as follows: 2022 $m 2021 $m Continuing operations: Half year Half year Attributable to shareholders: Hong Kong (29) (16) Indonesia (38) (45) Malaysia (35) (28) Singapore (3) (23) Growth markets and other (74) (73) Eastspring (14) (15) Total segment (193) (200) Unallocated to a segment (central operations) (1) 7 Tax charge attributable to shareholders (194) (193) Attributable to policyholders: Hong Kong (30) (40) Indonesia 5 (2) Malaysia (4) (2) Singapore 155 (194) Growth markets and other — — Tax credit (charge) attributable to policyholders 126 (238) Total tax charge from continuing operations (68) (431) Analysed by: Current tax (255) (189) Deferred tax 187 (242) Total tax charge from continuing operations (68) (431) Profit before tax includes Prudential’s share of profit after tax from the joint ventures and associates that are equity-accounted for. Therefore, the actual tax charge in the income statement does not include tax arising from the results of joint ventures and associates including CPL. The reconciliation of the expected to actual tax charge attributable to shareholders is provided in B3.2 below. The tax credit (charge) attributable to policyholders of $126 million (half year 2021: $(238) million) above is equal to the profit before tax attributable to policyholders. This is the result of accounting for policyholder income after the deduction of expenses and movement in unallocated surpluses on an after-tax basis. B3.2 Reconciliation of shareholder effective tax rate In the reconciliation below, the expected tax rate reflects the corporation tax rates that are expected to apply to the taxable profit or loss of the continuing operations. It reflects the corporation tax rates of each jurisdiction weighted by reference to the amount of profit or loss contributing to the aggregate result from continuing operations. 2022 2021 Half year Half year Tax Percentage Tax Percentage attributable to impact attributable to impact shareholders on ETR shareholders on ETR Continuing operations $m % $m % Adjusted operating profit 1,661 1,571 Non-operating result note (i) (1,361) (308) Profit before tax 300 1,263 Tax charge at the expected rate (65) 22 % (259) 21 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 47 (16) % 33 (3) % Deductions not allowable for tax purposes note (iii) (135) 45 % (34) 3 % Items related to taxation of life insurance businesses note (iv) 49 (16) % 71 (6) % Deferred tax adjustments including unrecognised tax losses note (v) (48) 16 % (70) 5 % Effect of results of joint ventures and associates note (vi) 2 (1) % 37 (3) % Irrecoverable withholding taxes note (vii) (30) 10 % (35) 3 % Other (12) 4 % 2 0 % Total (charge) credit on recurring items (127) 42 % 4 (1) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years (1) 1 % 6 0 % Movements in provisions for open tax matters note (viii) (1) 0 % 59 (5) % Impact of changes in local statutory tax rates — 0 % 8 (1) % Adjustments in relation to business disposals and corporate transactions — 0 % (11) 1 % Total (charge) credit on non-recurring items (2) 1 % 62 (5) % Total actual tax charge (194) 65 % (193) 15 % Analysed into: Tax on adjusted operating profit (314) (222) Tax on non-operating result note (i) 120 29 Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note (ix) 19 % 14 % Excluding non-recurring tax reconciling items 19 % 19 % Total profit note(ix) 65 % 15 % Notes (i) ‘Non-operating result’ is used to refer to items excluded from adjusted operating profit and includes short-term investment fluctuations in investment returns on shareholder-backed business, corporate transactions and amortisation of acquisition accounting adjustments. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Singapore and Malaysia. (iii) Deductions not allowable for tax purposes primarily relates to non-deductible investment losses in Growth markets. (iv) Items related to taxation of life insurance businesses primarily relates to Hong Kong where the taxable profit is computed as 5 per cent of net insurance premiums. (v) The unrecognised tax losses reconciling amount reflects losses arising where it is unlikely that relief for the losses will be available in future periods. (vi) 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. (vii) The Group incurs withholding tax on remittances received from certain jurisdictions and on certain investment income. Where these withholding taxes cannot be offset against corporate income tax or otherwise recovered, they represent a cost to the Group. Irrecoverable withholding tax on remittances is included in Other operations and is not allocated to any segment. Irrecoverable withholding tax on investment income is included in the relevant segment where the investment income is reflected. (viii) The statement of financial position contains the following provisions in relation to open tax matters. Half year 2022 $m Balance at beginning of period 42 Movements in the current period included in tax charge attributable to shareholders 1 Provisions utilised in the period — Other movements (including 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) — Balance at end of period 43 (ix) The actual tax rates of the relevant business operations are shown below: Half year 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 22 % 23 % 14 % 25 % 11 % 0 % 19 % Tax rate on profit before tax (5) % 22 % 23 % 5 % 11 % 11 % 0 % 65 % Half year 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 20 % 18 % 16 % 14 % 9 % 2 % 14 % Tax rate on profit before tax 4 % 20 % 17 % 14 % 18 % 9 % 2 % 15 % |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per share | |
Earnings per share | B4 Earnings per share Half year 2022 Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on profit for the period 300 (194) (2) 104 3.8 ¢ 3.8 ¢ Short-term fluctuations in investment returns on shareholder-backed business 1,383 (118) (2) 1,263 46.2 ¢ 46.2 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Gain attaching to corporate transactions (27) (2) — (29) (1.0) ¢ (1.0) ¢ Based on adjusted operating profit 1,661 (314) (4) 1,343 49.2 ¢ 49.2 ¢ Half year 2021 Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on loss for the period (4,010) (154.2) ¢ (154.2) ¢ Based on loss from discontinued US operations 5,073 195.1 ¢ 195.1 ¢ Based on profit from continuing operations 1,263 (193) (7) 1,063 40.9 ¢ 40.9 ¢ Short-term fluctuations in investment returns on shareholder-backed business 212 (26) — 186 7.2 ¢ 7.2 ¢ Amortisation of acquisition accounting adjustments 2 — — 2 0.1 ¢ 0.1 ¢ Loss attaching to corporate transactions 94 (3) — 91 3.4 ¢ 3.4 ¢ Based on adjusted operating profit 1,571 (222) (7) 1,342 51.6 ¢ 51.6 ¢ Basic earnings per share are calculated based on earnings attributable to ordinary shareholders, after related tax and non-controlling interests, divided by the weighted average number of ordinary shares outstanding during the period, excluding those held in employee share trusts, 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 period. No adjustment is made if the impact is anti-dilutive overall. The weighted average number of shares for calculating basic and diluted earnings per share, which excludes those held in employee share trusts, is set out as below: 2022 2021 Number of shares (in millions) Half year Half year Weighted average number of shares for calculation of basic earnings per share 2,736 2,601 Shares under option at end of period — 2 Shares that would have been issued at fair value on assumed option price at end of period — (2) Weighted average number of shares for calculation of diluted earnings per share 2,736 2,601 |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2022 | |
Dividends | |
Dividends | B5 Dividends Half year 2022 Half year 2021 Cents per share $m Cents per share $m Dividends relating to reporting period: First interim ordinary dividend 5.74 ¢ 158 5.37 ¢ 140 Dividends paid in reporting period: Second interim ordinary dividend for prior year 11.86 ¢ 320 10.73 ¢ 283 First and second interim dividends are recorded in the period in which they are paid. In addition to the dividends shown in the table above, on 13 September 2021, following approval by the Group’s shareholders, Prudential plc demerged its US operations (Jackson) via a dividend in specie of $1,735 million. Dividend per share On 27 September 2022, Prudential will pay a first interim ordinary dividend of 5.74 cents per ordinary share for the year ending 31 December 2022. The first interim dividend will be paid to shareholders Shareholders on the UK register are eligible to participate in a Dividend Reinvestment Plan. |
Group assets and liabilities by
Group assets and liabilities by business type | 6 Months Ended |
Jun. 30, 2022 | |
Group assets and liabilities by business type | |
Group assets and liabilities by business type | C1 Group assets and liabilities by business type The analysis below is structured to show the investments and other assets and liabilities of the Group by reference to the differing degrees of policyholder and shareholder economic interest of the different types of business. Debt securities are analysed below according to the issuing government for sovereign debt and to credit ratings for the rest of the securities. The Group uses the middle of the Standard & Poor’s, Moody’s and Fitch ratings, where available. Where ratings are not available from these rating agencies, local external rating agencies’ ratings and lastly internal ratings have been used. Securities with none of the ratings listed above are classified as unrated and included under the ‘below BBB- and unrated’ category. The total securities (excluding sovereign debt) that were unrated at 30 June 2022 were $1,056 million (30 June 2021: $986 million; 31 December 2021: $1,130 million). Additionally, government debt is shown separately from the rating breakdowns in order to provide a more focused view of the credit portfolio. 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-. 30 Jun 2022 $m Asia and Africa Insurance Elimination of Unallocated intra-group With Unit- to a debtors and Group -profits linked Other Eastspring Eliminations Total segment creditors total note (i) note (i) note (i) Debt securities: Sovereign debt Indonesia 496 614 445 9 — 1,564 — — 1,564 Singapore 3,176 525 767 54 — 4,522 — — 4,522 Thailand — — 1,222 — — 1,222 — — 1,222 United Kingdom — 5 — — — 5 — — 5 United States 20,961 22 3,262 — — 24,245 — — 24,245 Vietnam — 13 2,813 — — 2,826 — — 2,826 Other (predominantly Asia) 1,940 709 3,334 27 — 6,010 — — 6,010 Subtotal 26,573 1,888 11,843 90 — 40,394 — — 40,394 Other government bonds AAA 1,361 77 131 — — 1,569 — — 1,569 AA+ to AA- 101 13 27 — — 141 — — 141 A+ to A- 757 125 257 — — 1,139 — — 1,139 BBB+ to BBB- 288 44 64 — — 396 — — 396 Below BBB- and unrated 234 20 424 — — 678 — — 678 Subtotal note(vi) 2,741 279 903 — — 3,923 — — 3,923 Corporate bonds AAA 1,055 171 392 — — 1,618 — — 1,618 AA+ to AA- 1,890 363 1,594 — — 3,847 — — 3,847 A+ to A- 7,020 529 4,129 — — 11,678 — — 11,678 BBB+ to BBB- 7,657 1,419 3,948 1 — 13,025 — — 13,025 Below BBB- and unrated 2,507 424 1,395 — — 4,326 — — 4,326 Subtotal note(vi) 20,129 2,906 11,458 1 — 34,494 — — 34,494 Asset-backed securities AAA 135 5 95 — — 235 — — 235 AA+ to AA- 6 1 4 — — 11 — — 11 A+ to A- 22 — 14 — — 36 — — 36 BBB+ to BBB- 14 — 8 — — 22 — — 22 Below BBB- and unrated 2 1 1 — — 4 — — 4 Subtotal note(vi) 179 7 122 — — 308 — — 308 Total debt securities note(ii) 49,622 5,080 24,326 91 — 79,119 — — 79,119 Loans: Mortgage loans — — 141 — — 141 — — 141 Policy loans 1,392 — 378 — — 1,770 — — 1,770 Other loans 509 — 9 — — 518 — — 518 Total loans 1,901 — 528 — — 2,429 — — 2,429 Equity securities and holdings in collective investment schemes: Direct equities 11,344 11,305 2,088 60 — 24,797 325 — 25,122 Collective investment schemes 21,802 6,901 3,668 2 — 32,373 2 — 32,375 Total equity securities and holdings in collective investment schemes 33,146 18,206 5,756 62 — 57,170 327 — 57,497 Other financial investments note (iii) 1,164 377 2,427 96 — 4,064 880 — 4,944 Total financial investments 85,833 23,663 33,037 249 — 142,782 1,207 — 143,989 Investment properties — — 35 – — 35 — — 35 Investments in joint ventures and associates accounted for using the equity method — — 1,715 295 — 2,010 — — 2,010 Cash and cash equivalents 785 768 1,977 149 — 3,679 2,736 — 6,415 Reinsurers' share of insurance contract liabilities 2 — 2,748 — — 2,750 — — 2,750 Other assets note (iv) 1,557 172 9,298 709 (56) 11,680 3,419 (3,410) 11,689 Total assets 88,177 24,603 48,810 1,402 (56) 162,936 7,362 (3,410) 166,888 Shareholders' equity — — 13,308 1,043 — 14,351 1,758 — 16,109 Non-controlling interests — — 42 121 — 163 – — 163 Total equity — — 13,350 1,164 — 14,514 1,758 — 16,272 Contract liabilities and unallocated surplus of with-profits funds 78,981 23,037 26,079 — — 128,097 — — 128,097 Core structural borrowings — — — — — — 4,266 — 4,266 Operational borrowings 128 3 89 12 — 232 622 — 854 Other liabilities note (v) 9,068 1,563 9,292 226 (56) 20,093 716 (3,410) 17,399 Total liabilities 88,177 24,603 35,460 238 (56) 148,422 5,604 (3,410) 150,616 Total equity and liabilities 88,177 24,603 48,810 1,402 (56) 162,936 7,362 (3,410) 166,888 31 Dec 2021 $m Asia and Africa Insurance Elimination of Unallocated intra-group With Unit- to a debtors and Group -profits linked Other Eastspring Eliminations Total segment creditors total note (i) note (i) note (i) Debt securities: Sovereign debt Indonesia 414 598 609 11 — 1,632 — — 1,632 Singapore 3,684 550 1,068 126 — 5,428 — — 5,428 Thailand — — 1,577 3 — 1,580 — — 1,580 United Kingdom — 7 — — — 7 226 — 233 United States 28,552 47 3,525 — — 32,124 — — 32,124 Vietnam — 20 3,022 — — 3,042 — — 3,042 Other (predominantly Asia) 2,030 720 4,001 21 — 6,772 — — 6,772 Subtotal 34,680 1,942 13,802 161 — 50,585 226 — 50,811 Other government bonds AAA 1,472 86 246 — — 1,804 — — 1,804 AA+ to AA- 45 2 12 — — 59 — — 59 A+ to A- 667 119 304 — — 1,090 — — 1,090 BBB+ to BBB- 121 16 116 — — 253 — — 253 Below BBB- and unrated 204 15 450 — — 669 — — 669 Subtotal note(vi) 2,509 238 1,128 — — 3,875 — — 3,875 Corporate bonds AAA 1,222 236 411 — — 1,869 — — 1,869 AA+ to AA- 2,203 359 1,858 — — 4,420 — — 4,420 A+ to A- 9,046 675 5,294 — — 15,015 — — 15,015 BBB+ to BBB- 9,523 1,711 5,105 — — 16,339 — — 16,339 Below BBB- and unrated 4,009 678 1,827 — — 6,514 — — 6,514 Subtotal note(vi) 26,003 3,659 14,495 — — 44,157 — — 44,157 Asset-backed securities AAA 88 6 74 — — 168 — — 168 AA+ to AA- 6 1 4 — — 11 — — 11 A+ to A- 26 — 17 — — 43 — — 43 BBB+ to BBB- 15 — 9 — — 24 — — 24 Below BBB- and unrated 2 2 1 — — 5 — — 5 Subtotal note(vi) 137 9 105 — — 251 — — 251 Total debt securities note(ii) 63,329 5,848 29,530 161 — 98,868 226 — 99,094 Loans: Mortgage loans — — 150 — — 150 — — 150 Policy loans 1,365 — 368 — — 1,733 — — 1,733 Other loans 668 — 11 — — 679 — — 679 Total loans 2,033 — 529 — — 2,562 — — 2,562 Equity securities and holdings in collective investment schemes: Direct equities 10,290 12,812 2,286 84 — 25,472 683 — 26,155 Collective investment schemes 23,950 7,704 3,787 3 — 35,444 2 — 35,446 Total equity securities and holdings in collective investment schemes 34,240 20,516 6,073 87 — 60,916 685 — 61,601 Other financial investments note (iii) 1,561 149 2,318 106 — 4,134 1,088 — 5,222 Total financial investments 101,163 26,513 38,450 354 — 166,480 1,999 — 168,479 Investment properties — — 38 — — 38 — — 38 Investments in joint ventures and associates accounted for using the equity method — — 1,878 305 — 2,183 — — 2,183 Cash and cash equivalents 905 911 1,444 181 — 3,441 3,729 — 7,170 Reinsurers' share of insurance contract liabilities 225 — 9,528 — — 9,753 — — 9,753 Other assets note (iv) 1,184 166 9,191 759 (51) 11,249 3,608 (3,378) 11,479 Total assets 103,477 27,590 60,529 1,599 (51) 193,144 9,336 (3,378) 199,102 Shareholders' equity — — 14,289 1,120 — 15,409 1,679 — 17,088 Non-controlling interests — — 45 131 — 176 — — 176 Total equity — — 14,334 1,251 — 15,585 1,679 — 17,264 Contract liabilities and unallocated surplus of with-profits funds 94,002 25,651 37,646 — — 157,299 — — 157,299 Core structural borrowings — — — — — — 6,127 — 6,127 Operational borrowings 142 — 106 18 — 266 595 — 861 Other liabilities note (v) 9,333 1,939 8,443 330 (51) 19,994 935 (3,378) 17,551 Total liabilities 103,477 27,590 46,195 348 (51) 177,559 7,657 (3,378) 181,838 Total equity and liabilities 103,477 27,590 60,529 1,599 (51) 193,144 9,336 (3,378) 199,102 Notes (i) ' With-profits’ comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore operations. ‘Unit-linked’ comprises the assets and liabilities held in the unit-linked funds. ‘Other’ includes assets and liabilities of other participating business and other non-linked shareholder-backed business. (ii) Of the Group’s debt securities, the following amounts were held by the consolidated investment funds: 2022 $m 2021 $m Continuing operations: 30 Jun 31 Dec Debt securities held by consolidated investment funds 12,090 15,076 (iii) Other financial investments comprise derivative assets and deposits. (iv) Of total ‘Other assets’ at 30 June 2022, there are: – Property, plant and equipment (PPE) of $405 million (31 December 2021: $478 million). During half year 2022, the Group made additions of $26 million of PPE (half year 2021: $24 million), of which $12 million relates to right-of-use assets (half year 2021: $5 million). – Premiums receivable of $718 million (31 December 2021: $912 million), of which $688 million (31 December 2021: $872 million) are due within one year. (v) Within ‘Other liabilities’ at 30 June 2022 are accruals, deferred income and other liabilities of $ 8,103 million (31 December 2021: $ 7,983 million), of which $ 5,737 million (31 December 2021: $ 5,972 million) are due within one year. (vi) 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. |
Fair value measurement
Fair value measurement | 6 Months Ended |
Jun. 30, 2022 | |
Fair value measurement | |
Fair value measurement | C2 Fair value measurement C2.1 Determination of fair value The fair values of the financial instruments for which fair valuation is required under IFRS Standards 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. Other than the loans which have been designated at fair value through profit or loss, the carrying value of loans and receivables is presented net of provisions for impairment. The fair value of loans is estimated from discounted cash flows expected to be received. The discount rate used is updated for the market rate of interest where applicable. The fair value of the subordinated and senior debt issued by the parent company is determined using quoted prices from independent third parties. The fair value of financial liabilities (other than subordinated debt, senior debt and derivative financial instruments) is determined using discounted cash flows of the amounts expected to be paid. 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. For further detail on the valuation approach for level 2 fair valued assets and liabilities, refer to note C2.1 of the Group IFRS financial statements for the year ended 31 December 2021. 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 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 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. C2.2 Fair value measurement hierarchy of Group assets and liabilities (a) 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 at 30 June 2022, except for $325 million of financial assets classified as available-for-sale (31 December 2021: $909 million). In the current year all Financial instruments at fair value 30 Jun 2022 $m Level 1 Level 2 Level 3 Valuation Valuation Quoted prices based on based on (unadjusted) significant significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 471 4 475 Equity securities and holdings in collective investment schemes 49,727 7,193 577 57,497 Debt securities 57,125 21,954 40 79,119 Derivative assets 48 134 — 182 Derivative liabilities (461) (310) — (771) Total financial investments, net of derivative liabilities 106,439 29,442 621 136,502 Investment contract liabilities without discretionary participation features — (727) — (727) Net asset value attributable to unit holders of consolidated investment funds (4,546) (3) — (4,549) Total financial instruments at fair value 101,893 28,712 621 131,226 Percentage of total (%) 78 % 22 % 0 % 100 % Analysed by business type: Financial investments, net of derivative liabilities at fair value: With-profits 66,775 15,612 503 82,890 Unit-linked 21,201 2,084 4 23,289 Non-linked shareholder-backed business 18,463 11,746 114 30,323 Total financial investments net of derivative liabilities, at fair value 106,439 29,442 621 136,502 Percentage of total (%) 78 % 22 % 0 % 100 % Total financial investments net of derivative liabilities, at fair value 106,439 29,442 621 136,502 Other financial liabilities at fair value (4,546) (730) — (5,276) Total financial instruments at fair value 101,893 28,712 621 131,226 31 Dec 2021 $m Level 1 Level 2 Level 3 Valuation Valuation Quoted prices based on based on (unadjusted) significant significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 616 5 621 Equity securities and holdings in collective investment schemes 54,107 6,917 577 61,601 Debt securities 76,049 22,987 58 99,094 Derivative assets 359 122 — 481 Derivative liabilities (146) (116) — (262) Total financial investments, net of derivative liabilities 130,369 30,526 640 161,535 Investment contract liabilities without discretionary participation features — (814) — (814) Net asset value attributable to unit holders of consolidated investment funds (5,618) (46) — (5,664) Total financial instruments at fair value 124,751 29,666 640 155,057 Percentage of total (%) 81 % 19 % 0 % 100 % Analysed by business type: Financial investments net of derivative liabilities, at fair value With-profits 82,489 15,438 506 98,433 Unit-linked 24,024 2,343 5 26,372 Non-linked shareholder-backed business 23,856 12,745 129 36,730 Total financial investments net of derivative liabilities, at fair value 130,369 30,526 640 161,535 Percentage of total (%) 81 % 19 % 0 % 100 % Total financial investments net of derivative liabilities, at fair value 130,369 30,526 640 161,535 Other financial liabilities at fair value (5,618) (860) — (6,478) Total financial instruments at fair value 124,751 29,666 640 155,057 Notes (i) Of the total level 2 debt securities of $ 21,954 million at 30 June 2022, (31 December 2021: $ 22,987 million), $33 million (31 December 2021: $24 million) are valued internally. (ii) At 30 June 2022, the Group held $621 million (31 December 2021: $640 million) of net financial instruments at fair value within level 3. This represents less than 0.5 per cent of the total fair valued financial assets, net of financial liabilities, for all periods and comprises the following: - Equity securities and holdings in collective investment schemes of $577 million (31 December 2021: $577 million) consisting primarily of property and infrastructure funds held by the participating funds, which are externally valued using the net asset value of the invested entities. Equity securities of $1 million (31 December 2021: $1 million) are internally valued, representing less than 0.1 per cent for all periods of the total fair valued financial assets net of financial liabilities. Internal valuations are inherently more subjective than external valuations; and - Other sundry individual financial instruments of a net asset of $44 million (31 December 2021: $63 million). Of the net financial instruments of $621 million at 30 June 2022 (31 December 2021: $640 million) referred to above: - A net asset of $507 million (31 December 2021: $511 million) is held by the Group's with-profits and unit-linked funds and therefore shareholders' profit and equity are not impacted by movements in the valuation of these financial instruments; and - A net asset of $114 million (31 December 2021: $129 million) is held to support non-linked shareholder-backed business, of which $ 112 million (31 December 2021: $112 million) are primarily private equity investments and corporate bonds externally valued using the net asset value of the invested entities and external prices adjusted to reflect the specific known conditions relating the these bonds (eg distressed securities) and are therefore inherently less subjective than internal valuations. If the value of all these level 3 financial instruments decreased by 10 per cent, the change in valuation would be $(11) million (31 December 2021: $(26) 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 operating profit. (b) Transfers into and transfers out of levels The Group's policy is to recognise transfers into and out of levels as of the end of each 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 the first half of 2022, the transfers between levels within the portfolios were primarily transfers from level 1 to level 2 of $3,867 million and transfers from level 2 to level 1 of $1,603 million. These transfers primarily reflect the change in the observed valuation inputs of equity securities and debt securities and, in certain cases, the change in the level of trading activities of the securities. There were transfers from level 3 to level 2 of $15 million in the period. 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 the beginning of the period to that presented at the end of the period. 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 from continuing operations comprises the translation of investments into the Group's presentational currency of US dollars. Half year 2022 $m Equity securities and holdings in collective investment Debt Group Loans schemes securities total Balance at beginning of period 5 577 58 640 Total losses in income statement note (1) (47) (1) (49) Total losses recorded in other comprehensive income — (14) (2) (16) Purchases and other additions — 61 — 61 Transfers out of level 3 — — (15) (15) Balance at end of period 4 577 40 621 Full year 2021 $m Equity securities and holdings in collective investment Debt Group Continuing operations Loans schemes securities total Balance at beginning of year 6 445 33 484 Total (losses) gains in income statement note (1) 6 (3) 2 Total losses recorded in other comprehensive income — (5) (2) (7) Purchases and other additions — 143 — 143 Transfers (out of) into level 3 — (12) 30 18 Balance at end of year 5 577 58 640 Note Of the total net (losses) gains in the income statement of $(49) million at half year 2022 (full year 2021: $2 million), $(26) million (full year 2021: $2 million) relates to net unrealised gains and losses of financial instruments still held at the end of the period, which can be analysed as follows: 2022 $m 2021 $m Half year Full year Loans (1) (1) Equity securities and holdings in collective investment schemes (24) 6 Debt securities (1) (3) Total net (losses) gains (26) 2 (c) 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. The carrying value of investment contracts with discretionary participation features is on an IFRS 4 basis, which is also excluded from the analysis below, as it is impractical to determine the fair value of these contracts due to the lack of a reliable basis to measure participation features. 2022 $m 2021 $m 30 Jun 31 Dec Carrying Fair Carrying Fair value value value value Assets: Loans 1,954 2,103 1,941 2,152 Liabilities: Core structural borrowings of shareholder-financed businesses (4,266) (4,073) (6,127) (6,565) Operational borrowings (excluding lease liabilities) (568) (568) (514) (514) Obligations under funding, securities lending and sale and repurchase agreements (799) (799) (223) (223) Total net financial assets (liabilities) at amortised cost (3,679) (3,337) (4,923) (5,150) |
Policyholder liabilities and un
Policyholder liabilities and unallocated surplus | 6 Months Ended |
Jun. 30, 2022 | |
Policyholder liabilities and unallocated surplus | |
Policyholder liabilities and unallocated surplus | C3 Policyholder liabilities and unallocated surplus C3.1 Policyholder liabilities and unallocated surplus by business type (a) Movement in policyholder liabilities and unallocated surplus of with-profits funds The items below 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 for the insurance operations of the Group. The policyholder liabilities shown include investment contracts without discretionary participation features (as defined in IFRS 4) and their full movement in the period. The items are shown gross of external reinsurance. Half year 2022 $m With- Shareholder-backed business Total profits Unit-linked Other business liabilities business At beginning of period 94,002 34,756 48,496 177,254 Comprising: Policyholder liabilities on the balance sheet 88,618 25,651 37,646 151,915 Unallocated surplus of with-profits funds on the balance sheet note (i) 5,384 — — 5,384 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 9,105 10,850 19,955 Premiums: note (iii) New business 1,456 1,231 1,607 4,294 In-force 2,867 1,219 2,694 6,780 4,323 2,450 4,301 11,074 Surrenders notes (iii)(iv) (558) (1,426) (293) (2,277) Maturities/deaths/other claim events (993) (127) (842) (1,962) Net flows 2,772 897 3,166 6,835 Shareholders' transfers post tax (74) — — (74) Investment-related items and other movements note (v) (16,422) (2,396) (12,391) (31,209) Foreign exchange translation differences note (vi) (1,297) (1,522) (1,563) (4,382) At end of period 78,981 31,735 37,708 148,424 Comprising: Policyholder liabilities on the balance sheet 74,413 23,037 26,079 123,529 Unallocated surplus of with-profits funds on the balance sheet note (i) 4,568 — — 4,568 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 8,698 11,629 20,327 Half year 2021 $m With- Shareholder-backed business Total profits Unit-linked Other Asia and Continuing operations: business liabilities business Africa At beginning of period 86,410 32,506 46,639 165,555 Comprising: Policyholder liabilities on the balance sheet 81,193 25,433 38,107 144,733 Unallocated surplus of with-profits funds on the balance sheet note (i) 5,217 — — 5,217 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 7,073 8,532 15,605 Premiums: note (iii) New business 900 1,237 942 3,079 In-force 3,617 1,211 2,469 7,297 4,517 2,448 3,411 10,376 Surrenders notes (iii)(iv) (393) (1,724) (410) (2,527) Maturities/deaths/other claim events (852) (101) (505) (1,458) Net flows 3,272 623 2,496 6,391 Shareholders' transfers post-tax (62) — — (62) Investment-related items and other movements note (v) 201 997 (2,994) (1,796) Foreign exchange translation differences note (vi) (578) (532) (230) (1,340) At end of period 89,243 33,594 45,911 168,748 Comprising: Policyholder liabilities on the balance sheet 82,970 25,615 36,224 144,809 Unallocated surplus of with-profits funds on the balance sheet note (i) 6,273 — — 6,273 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 7,979 9,687 17,666 Average policyholder liability balances note (vii) Half year 2022 81,516 33,245 43,102 157,863 Half year 2021 82,082 33,050 46,275 161,407 Notes (i) Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities, determined in accordance with the Group's accounting policies, that have yet to be appropriated between policyholders and shareholders for the Group's with-profits funds in Hong Kong and Malaysia. In Hong Kong, the unallocated surplus includes the shareholders' share of expected future bonuses, with the expected policyholder share being included in policyholder liabilities. Any excess of assets over liabilities and amounts expected to be paid out by the fund on future bonuses is also included in the unallocated surplus. (ii) The Group's investments in joint ventures and associates 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 CPL, India and the Takaful business in Malaysia. (iii) 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 are after any deductions for fees/charges; claims (surrenders, maturities, deaths and other claim events) shown above represent the policyholder liabilities provision released rather than the claims amount paid to the policyholder. The analysis also includes net flows of the Group's insurance joint ventures and associate. (iv) The rate of surrenders for shareholder-backed business (expressed as a percentage of opening policyholder liabilities) was 2.1 per cent in half year 2022 (half year 2021: 2.7 per cent). (v) Investment-related items and other movements in the first half of 2022 primarily represents the effects of higher interest rates on the discount rates applied in the measurement of the policyholder liabilities, together with bond losses due to rising interest rates and lower level of investment returns from equities following the falls in equity markets. Other business also includes the effect of the early adoption of the Risk-based Capital Regime in Hong Kong as discussed in note C3.2 below. (vi) Movements in the period have been translated at the average exchange rates for the period ended 30 June 2022 and 2021. The closing balance has been translated at the closing spot rates as at 30 June 2022 and 2021. Differences upon retranslation are included in foreign exchange translation differences. (vii) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the period, and exclude unallocated surplus of with-profits funds. C3.2 Further analysis of the movement in the period of the Group's gross contract liabilities, reinsurers' share of insurance contract liabilities and unallocated surplus of with-profits funds (excluding those held by joint ventures and associates) is provided below: Half year 2022 $m Reinsurers' share Unallocated Contract of insurance surplus of liabilities contract liabilities with-profits funds At beginning of period 151,915 (9,753) 5,384 (Income) expense included in the income statement note (i) (25,193) 6,942 (779) Other movements note (ii) 69 — — Foreign exchange translation differences (3,262) 61 (37) At end of period 123,529 (2,750) 4,568 Half year 2021 $m Reinsurers' share Unallocated Contract of insurance surplus of liabilities contract liabilities with-profits funds At beginning of period 441,246 (46,595) 5,217 Reclassification of US operations as held for distribution (296,513) 35,232 — Expense included in the income statement note (i) 1,354 1,450 1,070 Other movements note (ii) 25 — — Foreign exchange translation differences (1,303) 22 (14) At end of period 144,809 (9,891) 6,273 Notes (i) The total charge for benefit and claims in half year 2022 shown in the income statement comprises the amounts shown as '(Income) expense included in the income statement' in the table above together with claims paid of $( 4,406 ) million in the period (half year 2021: $( 4,143 ) million) and claim amounts attributable to reinsurers of $ 202 million (half year 2021: $269 million). (ii) Other movements 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. The segmental analysis of the total charge for benefit and claims and movement in unallocated surplus, net of reinsurance in the income statement is shown below. The CPL segment is a joint venture accounted for using the equity method under IFRS, with the Group's share of its results net of related tax presented in a single line within the Group's profit before tax, and therefore not shown in the analysis of benefit and claims items below. Half year 2022 $m Growth Hong markets and Total Kong Indonesia Malaysia Singapore other segment Claims incurred, net of reinsurance (894) (609) (533) (1,345) (887) (4,268) Decrease in policyholder liabilities, net of reinsurance 13,090 187 157 2,865 2,016 18,315 Movement in unallocated surplus of with-profits funds 660 — 119 — — 779 Benefits and claims and movement in unallocated surplus, net of reinsurance 12,856 (422) (257) 1,520 1,129 14,826 Half year 2021 $m Growth Hong markets and Total Kong Indonesia Malaysia Singapore other segment Claims incurred, net of reinsurance (818) (602) (482) (1,346) (755) (4,003) (Increase) decrease in policyholder liabilities, net of reinsurance (369) 266 (68) (2,197) (307) (2,675) Movement in unallocated surplus of with-profits funds (1,121) — 51 — — (1,070) Benefits and claims and movement in unallocated surplus, net of reinsurance (2,308) (336) (499) (3,543) (1,062) (7,748) Hong Kong Risk-based Capital Regime In April 2022, the Group's Hong Kong life business (PHKL) received approval from the Hong Kong Insurance Authority to early adopt the Hong Kong Risk-based Capital (HK RBC) regime with effect from 1 January 2022. In light of this development and given that the measurement technique set out within the local regulatory basis has been applied by PHKL to calculate IFRS liabilities, the Group has refined the reserving methodology of PHKL by reference to the method applied under the new HK RBC regime. Under the basis previously applied, liabilities of non-participating business were generally determined on a net premium valuation basis to determine the future policyholder benefit provisions, subject to minimum floors. Using the principles underpinning the HK RBC regime, the IFRS reserving basis has been refined at 30 June 2022 to one that is based on a gross premium valuation basis (including an allowance for the uncertainty of non-hedgeable risks), subject to minimum floors. Depending on the product, the minimum floor is set at the policyholder’s asset share or guaranteed cash surrender value or at a constraint that on day one no negative reserve exists at a product level. This new measurement technique better estimates the liability and brings the estimation basis for PHKL more in line with that used by the Group's other insurance operations. This change of estimate has reduced policyholder liabilities (net of reinsurance) and increased profit before tax for the first half of 2022 by $945 million. There has been no change to the reserving basis for with-profits liabilities, which under the Group's accounting policy are valued under the realistic basis in accordance with the requirements of the “grandfathered” UK standard FRS 27 ' Life Assurance |
Intangible assets
Intangible assets | 6 Months Ended |
Jun. 30, 2022 | |
Intangible assets | |
Intangible assets | C4 Intangible assets C4.1 Goodwill Goodwill shown on the consolidated statement of financial position at 30 June 2022 represents amounts allocated to businesses in Asia and Africa in respect of both acquired asset management and life businesses. There has been no impairment as at 30 June 2022. 2022 $m 2021 $m 30 Jun 31 Dec Carrying value at beginning of period 907 961 Exchange differences (36) (54) Carrying value at end of period 871 907 C4.2 Deferred acquisition costs and other intangible assets 2022 $m 2021 $m 30 Jun 31 Dec Shareholder-backed business: DAC related to insurance contracts as classified under IFRS 4 2,845 2,776 DAC related to investment management contracts, including life assurance contracts classified as financial instruments and investment management contracts under IFRS 4 39 39 DAC related to insurance and investment contracts 2,884 2,815 Distribution rights 3,626 3,782 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 22 28 Other intangibles 180 184 Present value of acquired in-force and other intangibles 3,828 3,994 Total of DAC and other intangible assets attributable to shareholders note (i) 6,712 6,809 Other intangible assets, including computer software, attributable to with-profits funds 38 49 Total of deferred acquisition costs and other intangible assets 6,750 6,858 Notes (i) Movement in DAC and other intangible assets attributable to shareholders is shown below: 2022 $m 2021 $m Distribution Other Half year Full year DAC rights intangibles Total Total note (ii) note (iii) Balance at beginning of period 2,815 3,782 212 6,809 20,275 Removal of discontinued US operations — — — — (13,881) Additions 426 44 27 497 1,185 Amortisation to the income statement (249) (143) (27) (419) (651) Disposals and transfers — — (3) (3) (7) Exchange differences and other movements (108) (57) (7) (172) (112) Balance at end of period 2,884 3,626 202 6,712 6,809 (ii) 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 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. (iii) Other intangibles comprise present value of acquired in-force (PVIF) related to insurance contracts and other intangible assets such as software rights. Software rights include additions of $17 million, amortisation of $(13) million, disposals of $(2) million, foreign exchange of $(6) million and closing balance at 30 June 2022 of $110 million (31 December 2021: $114 million) . |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Borrowings | |
Borrowings | C5 Borrowings C5.1 Core structural borrowings of shareholder-financed businesses 2022 $m 2021 $m 30 Jun 31 Dec Subordinated debt: US$1,000m 5.25% Notes note (i) — 1,000 US$725m 4.375% Notes note (iii) — 725 US$750m 4.875% Notes 749 748 €20m Medium Term Notes 2023 21 23 £435m 6.125% Notes 2031 524 584 US$1,000m 2.95% Notes 2033 note (ii) 995 995 Senior debt: note (iv) £300m 6.875% Notes 2023 363 404 £250m 5.875% Notes 2029 282 313 $1,000m 3.125% Notes 2030 986 985 $350m 3.625% Notes 2032 note (v) 346 — Bank loans: $350m Loan 2024 note (v) — 350 Total core structural borrowings of shareholder-financed businesses 4,266 6,127 Notes (i) The US$ 1,000 million notes were redeemed on 20 January 2022 using the proceeds from the issuance of ordinary shares in October 2021. (ii) In November 2021, the Company issued US$ 1,000 million 2.95 per cent subordinated debt maturing on 3 November 2033 with proceeds, net of costs, of $995 million. (iii) The US$ 725 million note was redeemed on 20 January 2022 using the proceeds from the US$ 1,000 million subordinated debt issued in November 2021. (iv) The senior debt ranks above subordinated debt in the event of liquidation. (v) In March 2022, the Company issued US$ 350 million 3.625 per cent senior debt maturing on 24 March 2032 with proceeds, net of costs, of $346 million, which was used to redeem the US$ 350 million bank loan in May 2022. C5.2 Operational borrowings 2022 $m 2021 $m 30 Jun 31 Dec Shareholder-financed business: Borrowings in respect of short-term fixed income securities programmes (commercial paper) 544 500 Lease liabilities under IFRS 16 177 209 Other borrowings 5 10 Operational borrowings attributable to shareholder-financed businesses 726 719 With profits business: Lease liabilities under IFRS 16 109 138 Other borrowings 19 4 Operational borrowings attributable to with-profits businesses 128 142 Total operational borrowings 854 861 |
Sensitivity analysis to key mar
Sensitivity analysis to key market risks | 6 Months Ended |
Jun. 30, 2022 | |
Sensitivity analysis to key market risks | |
Sensitivity analysis to key market risks | C6 Sensitivity analysis to key market risks The Group's risk framework and the management of risks attaching 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 Risk review report. The following sections set out the sensitivity of the Group’s profit or loss and shareholders' equity to instantaneous changes in interest rates and equity levels, which are then assumed to remain unchanged for the long term. Further information of the Group's sensitivity to key risks was set out in the Group's financial statements for the year ended 31 December 2021. C6. 1 Insurance operations The table below shows the sensitivity of shareholders' equity as at 30 June 2022 and 31 December 2021 for insurance operations to the following market risks: – 1 per cent increase and 0.5 per cent decrease in interest rates (based on local government bond yields at the valuation date) in isolation and subject to a floor of zero; and – Instantaneous 10 per cent rise and 20 per cent fall in the market value of equity and property assets. The equity risk sensitivity analysis assumes that all equity indices fall by the same percentage. The sensitivities below 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 shown below. Given the continuous risk management processes in place, 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, repricing of in-force benefits, changes to new business pricing and the mix of new business being sold. Where liabilities are valued using historic average rates for a short period (ie up to three years), the valuation interest rates are adjusted to assume a parallel increase or decrease in the interest rates used in the averaging approach to reflect the impact that could be seen in the near term. These sensitivities do not include credit risk sensitivities, such as movements in credit spreads, and hence the valuation of debt securities and policyholder liabilities. A one-letter credit downgrade in isolation (ie ignoring any consequential change in valuation) would not have a material impact on IFRS profit or shareholders’ equity. Net effect on shareholders' equity from insurance operations 2022 $m 2021 $m 30 Jun 31 Dec Shareholders’ equity of insurance operations 13,308 14,289 Sensitivity to key market risks: note Interest rates and consequential effects – 1% increase (680) (796) Interest rates and consequential effects – 0.5% decrease 121 137 Equity/property market values – 10% rise 305 372 Equity/property market values – 20% fall (750) (787) Note The effect from the changes in interest rates or equity and property prices above, if they arose, would impact profit after tax for the insurance operations and would mostly be recorded within short-term fluctuations in investment returns . The impact on profit after tax would be the same as the net effect on shareholders' equity. In the context of the Group, the results of the Africa insurance operations are not materially impacted by interest rate or equity rate changes. The degree of sensitivity of the results of the non-linked shareholder-backed business of the insurance 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 period to period. This varies by business unit. For example: – Certain businesses (Taiwan and India) apply US GAAP, for which the results can be more sensitive as the effect of interest rate movements on the backing investments may not be offset by liability movements; and – The level of options and guarantees in the products written in a particular business unit will affect the degree of sensitivity to interest rate movements. The sensitivity of the insurance operations presented as a whole at a given point in time will also be affected by a change in the relative size of the individual businesses. The ‘increase of 1%’ sensitivities reflects that, for many operations the impact of interest rate movements on the value of government and corporate bond investments dominates, namely bonds are expected to decrease in value as interest rates increase to a greater extent than the offsetting decrease in liabilities from a corresponding change in discount rates. This arises because the discount rate in some operations does not fluctuate in line with interest rate movements. Following a general increase in interest rates over 2021 and first half of 2022, under a 0.5% decrease interest rate scenario for most operations asset gains exceed the increases in liabilities resulting in an overall small positive impact of an instantaneous decrease of rates. Movements in equities backing with-profits and unit-linked business have been excluded from the equity and property sensitivities as they are generally matched by an equal movement in insurance liabilities (including unallocated surplus of with-profits funds). The impact on changes to future profitability as a result of changes to the asset values within unit-linked or with-profits funds have not been included in the instantaneous sensitivity above. The estimated sensitivities shown above include equity and property investments held by the Group’s joint venture and associate businesses. Generally, changes in equity and property investment values held outside unit-linked and with-profits funds are not directly offset by movements in non-linked policyholder liabilities. For Hong Kong’s non-participating business, liabilities largely reflect asset shares post the adoption of HK RBC and therefore the consequential movements in equities are offset by movements in policyholder liabilities. C6.2 Eastspring and central operations The profit for the period of Eastspring is 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 periods. Assets under management will rise and fall as market conditions change, with a consequential impact on profitability. Eastspring holds a small amount of investments direct on its balance sheet, including investments in respect of seeding capital into retail funds it sells to third parties (see note C.1). Eastspring’s profit will therefore have some exposure to the market movements of these investments. At 30 June 2022, the Group’s central operations held a 14.3 per cent (31 December 2021: 18.4 per cent) economic interest in the equity securities of Jackson. These equity securities are listed on the New York Stock Exchange and classified as 'available-for-sale' with a fair value of $325 million at 30 June 2022 (31 December 2021: $683 million). If the value of these securities decreased by 20 per cent, the change in valuation would be $(65) million (31 December 2021: $(137) million), which would reduce shareholders' equity by this amount before tax, all of which would pass through other comprehensive income outside |
Deferred tax assets and liabili
Deferred tax assets and liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Deferred tax assets and liabilities | |
Deferred tax assets and liabilities | C7 Deferred tax assets and liabilities The statement of financial position contains the following deferred tax assets and liabilities in relation to: Half year 2022 $m Other movements including Balance Movement in foreign Balance at beginning of income exchange at end of period statement movements period Deferred tax assets Unrealised losses or gains on investments 3 173 (7) 169 Balances relating to investment and insurance contracts 34 1 (34) 1 Short-term temporary differences 162 32 (10) 184 Unused tax losses 67 (41) (2) 24 Total deferred tax assets 266 165 (53) 378 Deferred tax liabilities Unrealised losses or gains on investments (242) 99 6 (137) Balances relating to investment and insurance contracts (2,125) (52) 113 (2,064) Short-term temporary differences (495) (25) 22 (498) Total deferred tax liabilities (2,862) 22 141 (2,699) Full year 2021 $m Other movements including Balance Removal of Movement in foreign Balance at beginning discontinued income exchange at end of of year US operations statement movements year Deferred tax assets Unrealised losses or gains on investments — — 3 — 3 Balances relating to investment and insurance contracts 87 — (16) (37) 34 Short-term temporary differences 4,662 (4,513) 15 (2) 162 Unused tax losses 109 (29) (14) 1 67 Total deferred tax assets 4,858 (4,542) (12) (38) 266 Deferred tax liabilities Unrealised losses or gains on investments (1,063) 691 127 3 (242) Balances relating to investment and insurance contracts (1,765) — (433) 73 (2,125) Short-term temporary differences (3,247) 2,832 (87) 7 (495) Total deferred tax liabilities (6,075) 3,523 (393) 83 (2,862) |
Share capital, share premium an
Share capital, share premium and own shares | 6 Months Ended |
Jun. 30, 2022 | |
Share capital, share premium and own shares | |
Share capital, share premium and own shares | C8 Share capital, share premium and own shares 30 Jun 2022 31 Dec 2021 Number of Number of ordinary Share Share ordinary Share Share Issued shares of 5p each shares capital premium shares capital premium fully paid: $m $m $m $m Balance at beginning of period 2,746,412,265 182 5,010 2,609,489,702 173 2,637 Shares issued under share-based schemes 2,902,591 — — 6,142,213 — 8 Shares issued under Hong Kong public offer and international placing in 2021 note — — — 130,780,350 9 2,365 Balance at end of period 2,749,314,856 182 5,010 2,746,412,265 182 5,010 Note In October 2021, Prudential completed the issuance of new ordinary shares on the Hong Kong Stock Exchange, resulting in net proceeds and an increase in shareholders' equity of $2.4 billion. The proceeds from this issuance were used to redeem high coupon debt instruments of US$2.3 billion in total in December 2021 and January 2022, with the remainder used to increase Prudential’s central stock of liquidity, as originally intended and disclosed in Prudential's prospectus for the issuance. Further details are provided in note C8 of the Group's consolidated financial statements for the year ended 31 December 2021. Options outstanding under save as you earn schemes to subscribe for shares at each period end shown below are as follows: Number of shares Share price range Exercisable to subscribe for from to by year 30 Jun 2022 1,734,638 964 p 1,455 p 2027 31 Dec 2021 2,022,535 964 p 1,455 p 2027 Transactions by Prudential plc and its subsidiaries in Prudential plc shares The Group buys and sells Prudential plc shares ('own shares') in relation to its employee share schemes. The cost of own shares of $271 million at 30 June 2022 (31 December 2021: $267 million) is deducted from retained earnings. The Company has established trusts to facilitate the delivery of shares under employee incentive plans. At 30 June 2022, 12.7 million (31 December 2021: 11.7 million) Prudential plc shares with a market value of $157 million (31 December 2021: $201 million) were held in such trusts, all of which are for employee incentive plans. The maximum number of shares held during the period was 12.7 million which was in June 2022. Within the trusts, shares are notionally allocated by business unit reflecting the employees to which the awards were made. The trusts purchased the following number of shares in respect of employee incentive plans: Number of shares purchased Cost (in millions) $m Half year 2022 5.2 69.9 Full year 2021 3.8 81.2 The cost in USD shown has been calculated from the share prices in pounds sterling using the monthly average exchange rate for the month in which those shares were purchased. A portion of the share purchases in respect of employee incentive plans as shown in the table above were made on the Hong Kong Stock Exchange with the remainder being made on the London Stock Exchange. |
Corporate transactions
Corporate transactions | 6 Months Ended |
Jun. 30, 2022 | |
Corporate transactions | |
Corporate transactions | D Other information D1 Corporate transactions D1.1 Gain (loss) attaching to corporate transactions 2022 $m 2021 $m Half year Half year Gain (loss) attaching to corporate transactions as shown separately on the condensed consolidated income statement note 62 (56) Loss arising on reinsurance transaction undertaken by the Hong Kong business (35) (38) Total gain (loss) attaching to corporate transactions note B1.1 27 (94) Note The gain (loss) attaching to corporate transactions includes a gain of $60 million (half year 2021: nil) from the sale of shares relating to the Group’s retained interest in Jackson post the demerger. Corporate transactions in 2021 also included amounts incurred by Prudential plc (half year 2021: $(28) million) in connection with the separation of Jackson and $(28) million of payment for the termination of loss of office made to the former chief executive of Jackson. D1.2 Discontinued US operations On 13 September 2021, the Group completed the separation of its US operations (Jackson) through a demerger, whereby the Group retained a 19.9 per cent non-controlling voting interest (19.7 per cent economic interest). In accordance with IFRS 5 ‘Non-current a ssets held for sale and discontinued operations’ The retained interest in Jackson is reported within the consolidated statement of financial position as a financial investment at fair value and is included in ‘Unallocated to a segment (central operations)’ for segmental analysis. This investment has been classified as available-for-sale under IAS 39. In December 2021, Jackson repurchased 2.2 million shares of its Class A common stock from Prudential, reducing Prudential’s remaining economic interest in Jackson to 18.4 per cent as of 31 December 2021 (18.5 per cent voting interest). During the first six months of 2022, further transactions have reduced the Group’s holding to 14.3 per cent economic interest (14.3 per cent voting interest) at 30 June 2022, realising a gain of $60 million. The fair value of the Group’s holding at 30 June 2022 was $325 million. The results for the discontinued US operations presented in the consolidated financial statements for the period up to the demerger in September 2021 are analysed below. (a) Income statement 2021 $m Half year Total revenue, net of reinsurance 35,379 Total charge, net of reinsurance (33,209) Profit before tax 2,170 Tax charge (370) Profit after tax 1,800 Remeasurement to fair value note (i) (7,507) Cumulative valuation movements on available-for-sale debt securities, net of related tax and change in DAC, and net investment hedges recycled from other comprehensive income note (ii) — Loss for the period (5,707) Attributable to: Equity holders of the Company (5,073) Non-controlling interests (634) Loss for the period (5,707) Notes (i) The loss on remeasurement to fair value on demerger was recognised in accordance with IFRIC 17, ‘Distribution of non-cash assets to owners’ as described above. (ii) In accordance with IFRS, as a result of the demerger of Jackson, accumulated balances previously recognised through other comprehensive income relating to financial instruments held by Jackson classified as available-for-sale and historical net investment hedges were recycled from other comprehensive income to the results of discontinued operations in the consolidated income statement. Total shareholders’ equity is unchanged as a result of this recycling. ( b) Total comprehensive income 2021 $m Half year Loss for the period (5,707) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (867) Cumulative valuation movements on available-for-sale debt securities, net of related tax and change in DAC, and net investment hedges recycled through profit or loss at the point of demerger — Other comprehensive loss for the period (867) Total comprehensive loss for the period (6,574) Attributable to: Equity holders of the Company (5,844) Non-controlling interests (730) Total comprehensive loss for the period (6,574) (c) Cash flows 2021 $m Half year Net cash flows from operating activities (442) Net cash flows from financing activities note (18) Net decrease in cash and cash equivalents (460) Cash and cash equivalents at beginning of period 1,621 Cash and cash equivalents at end of period 1,161 Note No dividends were paid by Jackson during 2021 prior to demerger. |
Contingencies and related oblig
Contingencies and related obligations | 6 Months Ended |
Jun. 30, 2022 | |
Contingencies and related obligations | |
Contingencies and related obligations | D2 Contingencies and related obligations The Group is involved in various litigation and regulatory proceedings. While the outcome of such litigation and regulatory issues cannot be predicted with certainty, the Group believes that their ultimate outcome will not have a material adverse effect on the Group’s financial condition, results of operations, or cash flows. There have been no material changes to the Group’s contingencies and related obligations in the six months ended 30 June 2022. |
Post balance sheet events
Post balance sheet events | 6 Months Ended |
Jun. 30, 2022 | |
Post balance sheet events | |
Post balance sheet events | D3 Post balance sheet events First interim ordinary dividend The 2022 first interim ordinary dividend approved by the Board of Directors after 30 June 2022 is as described in note B5. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related party transactions | |
Related party transactions | D4 Related party transactions There were no transactions with related parties during the six months ended 30 June 2022 which have had a material effect on the results or financial position of the Group. The nature of the related party transactions of the Group has not changed from those described in note D4 to the Group’s consolidated financial statements for the year ended 31 December 2021. |
Basis of preparation (Policies)
Basis of preparation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Basis of preparation | |
Accounting policies followed in interim financial statements | The accounting policies applied by the Group in determining the IFRS financial results in this report are the same as those previously applied in the Group’s consolidated financial statements for the year ended 31 December 2021, as disclosed in the 2021 Form 20-F, aside from those discussed in note A2 below. These 2021 consolidated financial statements do not represent Prudential’s statutory accounts for the purpose of the UK Companies Act 2006. |
New accounting pronouncements | A2 New accounting pronouncements The IASB has issued the following new accounting pronouncements to be effective from 1 January 2022, unless otherwise stated: – Amendments to IAS 37 ‘Onerous contracts – Cost of Fulfilling a Contract’ issued in May 2020; – Annual Improvements to IFRS Standards 2018-2020 issued in May 2020; – Amendments to IAS 16 ‘Property, Plant and Equipment – Proceeds before Intended Use’ issued in May 2020; and – Reference to the Conceptual Framework – Amendments to IFRS 3 ‘Business combination’ issued in May 2020. The adoption of these pronouncements has had no significant impact on the Group interim financial statements. In addition, in 2023 IFRS 17 ‘Insurance Contracts’ and IFRS 9 ‘Financial Instruments’ will become effective. The Group has a Group-wide implementation programme 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. During half year 2022 the Group has made significant progress with the testing of new actuarial and finance systems in our preparations for IFRS 17 adoption in 2023. Elements of the detailed calculation methodology remain subject to wider discussion and debate in the industry. It is not currently practicable to provide reliable estimates of the quantitative impact on the Group’s results and financial position. A further update on our IFRS 17 progress will be provided in our FY 22 financial statements. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Basis of preparation | |
Schedule of exchange rates applied | The exchange rates applied for balances and transactions in currencies other than the presentation currency of the Group, US dollars (USD) were: USD : local currency Closing rate at period end Average rate for the period to date 30 Jun 2022 31 Dec 2021 Half year 2022 Half year 2021 Chinese yuan (CNY) 6.69 6.37 6.48 6.47 Hong Kong dollar (HKD) 7.85 7.80 7.83 7.76 Indian rupee (INR) 78.97 74.34 76.23 73.33 Indonesian rupiah (IDR) 14,897.50 14,252.50 14,453.52 14,273.32 Malaysian ringgit (MYR) 4.41 4.17 4.27 4.10 Singapore dollar (SGD) 1.39 1.35 1.37 1.33 Taiwan dollar (TWD) 29.73 27.67 28.73 28.02 Thai baht (THB) 35.35 33.19 33.73 30.83 UK pound sterling (GBP) 0.82 0.74 0.77 0.72 Vietnamese dong (VND) 23,265.00 22,790.00 22,925.22 23,044.83 |
Analysis of performance by se_2
Analysis of performance by segment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Analysis of performance by segment | |
Schedule of segment results | 2022 $m 2021 $m Note Half year Half year note (i) note (i) Continuing operations: CPL 149 139 Hong Kong 501 460 Indonesia 196 225 Malaysia 190 184 Singapore 340 320 Growth markets and other note (ii) 522 479 Eastspring 131 162 Other income (expenditure): Investment return and other income 39 — Interest payable on core structural borrowings (103) (164) Corporate expenditure note(iii) (150) (157) Total other income (expenditure) (214) (321) Restructuring and IFRS 17 implementation costs note (iv) (154) (77) Adjusted operating profit B1.2 1,661 1,571 Short-term fluctuations in investment returns on shareholder-backed business note (v) (1,383) (212) Amortisation of acquisition accounting adjustments (5) (2) Gain (loss) attaching to corporate transactions D1.1 27 (94) Profit before tax attributable to shareholders 300 1,263 Tax charge attributable to shareholders' returns B3 (194) (193) Profit from continuing operations 106 1,070 Loss from discontinued US operations D1.2 — (5,707) Profit (loss) for the period 106 (4,637) Attributable to: Equity holders of the Company: From continuing operations 104 1,063 From discontinued US operations — (5,073) 104 (4,010) Non-controlling interests: From continuing operations 2 7 From discontinued US operations — (634) 2 (627) Profit (loss) for the period 106 (4,637) Basic earnings per share (in cents) 2022 2021 Note Half year Half year B4 note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations 49.2 ¢ 51.6 ¢ Based on profit from continuing operations, net of non-controlling interest 3.8 ¢ 40.9 ¢ Based on loss from discontinued US operations, net of non-controlling interest — ¢ (195.1) ¢ Notes (i) Segment results are attributed to the shareholders of the Group before deducting the amount attributable to the non-controlling interests. This presentation is applied consistently throughout the document. (ii) Adjusted operating profit for growth markets and other includes other items of $160 million (half year 2021: $167 million) which in the first half of 2022 comprised largely of the impact of the adoption of the Risk-Based Capital regime in Hong Kong (as discussed further in note C3.2) offset by corporate taxes for life joint ventures and associates and provisions for sales and premium tax. (iii) Corporate expenditure as shown above is for head office functions in London and Hong Kong. (iv) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $(44) million (half year 2021: $(33) million). (v) In general, the short-term fluctuations reflect the value movements on shareholders’ assets and policyholder liabilities (net of reinsurance) arising from market movements in the period. In half year 2022, rising interest rates and widening credits spreads across a number of the Group’s life insurance markets led to unrealised bond losses which more than offset the impact of higher discount rates on policyholder liabilities under the local reserving basis applied. The interest rates rises in the first half of 2022 were more substantial than that seen in the first half 2021. Short-term fluctuations also reflect losses on equities backing shareholder-backed business following market movements in the period (compared with equity gains in the prior period) and the impact of refinements to the reserving basis in Hong Kong following the adoption of the Risk-Based Capital regime as discussed further in note C3.2. |
Schedule of segmental analysis of revenue | Half year 2022 $m Insurance operations note (i) Growth Inter Un- markets -segment allocated Hong and elimi- Total to a Kong Indonesia Malaysia Singapore other Eastspring nation segment segment Total Gross premiums earned 4,672 809 934 3,616 2,210 — — 12,241 — 12,241 Outward reinsurance premiums (771) (18) (29) (70) (31) — — (919) — (919) Earned premiums, net of reinsurance 3,901 791 905 3,546 2,179 — — 11,322 — 11,322 Other income note (ii) 14 4 — 9 45 181 — 253 — 253 Total external revenue 3,915 795 905 3,555 2,224 181 — 11,575 — 11,575 Intra-group revenue — — — — 1 106 (107) — — — Interest income 510 39 115 395 317 1 — 1,377 3 1,380 Dividend and other investment income 338 103 103 321 66 — — 931 19 950 Investment (depreciation) appreciation (17,752) (144) (557) (6,134) (2,324) (17) — (26,928) 28 (26,900) Total revenue, net of reinsurance (12,989) 793 566 (1,863) 284 271 (107) (13,045) 50 (12,995) Half year 2021 $m Insurance operations note (i) Growth Inter Un- markets -segment allocated Hong and elimi- Total to a Kong Indonesia Malaysia Singapore other Eastspring nation segment segment Total Gross premiums earned 4,776 871 929 2,934 2,011 — — 11,521 — 11,521 Outward reinsurance premiums (767) (28) (22) (55) (26) — — (898) — (898) Earned premiums, net of reinsurance 4,009 843 907 2,879 1,985 — — 10,623 — 10,623 Other income note (ii) 24 5 1 10 57 234 — 331 — 331 Total external revenue 4,033 848 908 2,889 2,042 234 — 10,954 — 10,954 Intra-group revenue — — — — — 106 (106) — — — Interest income 528 46 117 462 303 1 — 1,457 — 1,457 Dividend and other investment income 214 33 101 186 39 — — 573 — 573 Investment (depreciation) appreciation (1,444) (135) (280) 817 (259) 9 — (1,292) — (1,292) Total revenue, net of reinsurance 3,331 792 846 4,354 2,125 350 (106) 11,692 — 11,692 Notes (i) CPL, Prudential’s life business in the Chinese Mainland, is a 50/50 joint venture with CITIC and is accounted for using the equity method under IFRS. The Group’s share of its results is presented in a single line within the Group’s profit before tax on a net of related tax basis and therefore not shown in the analysis of revenue line items above. Revenue from external customers of CPL (Prudential’s share) in half year 2022 is $1,605 million (half year 2021: $1,307 million). (ii) Other income comprises income from external customers and consists primarily of revenue from the Group’s asset management business of $181 million (half year 2021: $234 million). The remaining other income consists primarily of policy fee revenue from external customers and asset management rebate revenue from external fund managers. |
Schedule of additional segmental analysis of profit after tax | 2022 $m 2021 $m Half year Half year CPL (28) 148 Hong Kong (613) 441 Indonesia 131 179 Malaysia 119 135 Singapore 63 141 Growth markets and other note (i) 617 330 Eastspring 117 147 Total segment 406 1,521 Unallocated to a segment (central operations) note (ii) (300) (451) Total profit after tax from continuing operations 106 1,070 Notes (i) The Growth markets and other segment comprises all other Asia and Africa insurance businesses alongside other amounts that are not included in the segment profit of an individual business unit including tax on life joint ventures and associates and other items that are not representative of the underlying segment trading for the period, in line with the presentation used by management when assessing the performance of the underlying segments internally. (ii) Comprising other income and expenditure of $(214) million (half year 2021: $(321) million) attributable to the head office functions in London and Hong Kong and $(154) million (half year 2021: $(77) million) of restructuring and IFRS 17 implementation costs as shown in note B1.1, $7 million (half year 2021: $(4) million) of short-term fluctuations on investment returns, $62 million (half year 2021: $(56) million) from corporate transactions as shown in note D1.1 and related tax of $(1) million (half year 2021: $7 million). |
Acquisition costs and other e_2
Acquisition costs and other expenditure (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Acquisition costs and other expenditure | |
Schedule of acquisition costs and other expenditure | B2 Acquisition costs and other expenditure 2022 $m 2021 $m Half year Half year Acquisition costs incurred for insurance policies (1,120) (1,026) Acquisition costs deferred 426 373 Amortisation of acquisition costs (249) (186) Administration costs and other expenditure (net of other reinsurance commission) note (1,572) (1,542) Movements in amounts attributable to external unit holders of consolidated investment funds 883 (21) Total acquisition costs and other expenditure from continuing operations (1,632) (2,402) Note Included in total administration costs and other expenditure is depreciation of property, plant and equipment of $(71) million (half year 2021: $(85) million), of which $(53) million (half year 2021: $(62) million) relates to the right-of-use assets recognised under IFRS 16 and interest on the IFRS 16 lease liabilities of $(5) million (half year 2021: $(6) million). |
Tax charge (Tables)
Tax charge (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Tax charge | |
Schedule of total tax charge by nature | 2022 $m 2021 $m Continuing operations: Half year Half year Attributable to shareholders: Hong Kong (29) (16) Indonesia (38) (45) Malaysia (35) (28) Singapore (3) (23) Growth markets and other (74) (73) Eastspring (14) (15) Total segment (193) (200) Unallocated to a segment (central operations) (1) 7 Tax charge attributable to shareholders (194) (193) Attributable to policyholders: Hong Kong (30) (40) Indonesia 5 (2) Malaysia (4) (2) Singapore 155 (194) Growth markets and other — — Tax credit (charge) attributable to policyholders 126 (238) Total tax charge from continuing operations (68) (431) Analysed by: Current tax (255) (189) Deferred tax 187 (242) Total tax charge from continuing operations (68) (431) Profit before tax includes Prudential’s share of profit after tax from the joint ventures and associates that are equity-accounted for. Therefore, the actual tax charge in the income statement does not include tax arising from the results of joint ventures and associates including CPL. |
Schedule of shareholder profit and tax charge | 2022 2021 Half year Half year Tax Percentage Tax Percentage attributable to impact attributable to impact shareholders on ETR shareholders on ETR Continuing operations $m % $m % Adjusted operating profit 1,661 1,571 Non-operating result note (i) (1,361) (308) Profit before tax 300 1,263 Tax charge at the expected rate (65) 22 % (259) 21 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 47 (16) % 33 (3) % Deductions not allowable for tax purposes note (iii) (135) 45 % (34) 3 % Items related to taxation of life insurance businesses note (iv) 49 (16) % 71 (6) % Deferred tax adjustments including unrecognised tax losses note (v) (48) 16 % (70) 5 % Effect of results of joint ventures and associates note (vi) 2 (1) % 37 (3) % Irrecoverable withholding taxes note (vii) (30) 10 % (35) 3 % Other (12) 4 % 2 0 % Total (charge) credit on recurring items (127) 42 % 4 (1) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years (1) 1 % 6 0 % Movements in provisions for open tax matters note (viii) (1) 0 % 59 (5) % Impact of changes in local statutory tax rates — 0 % 8 (1) % Adjustments in relation to business disposals and corporate transactions — 0 % (11) 1 % Total (charge) credit on non-recurring items (2) 1 % 62 (5) % Total actual tax charge (194) 65 % (193) 15 % Analysed into: Tax on adjusted operating profit (314) (222) Tax on non-operating result note (i) 120 29 Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note (ix) 19 % 14 % Excluding non-recurring tax reconciling items 19 % 19 % Total profit note(ix) 65 % 15 % Notes (i) ‘Non-operating result’ is used to refer to items excluded from adjusted operating profit and includes short-term investment fluctuations in investment returns on shareholder-backed business, corporate transactions and amortisation of acquisition accounting adjustments. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Singapore and Malaysia. (iii) Deductions not allowable for tax purposes primarily relates to non-deductible investment losses in Growth markets. (iv) Items related to taxation of life insurance businesses primarily relates to Hong Kong where the taxable profit is computed as 5 per cent of net insurance premiums. (v) The unrecognised tax losses reconciling amount reflects losses arising where it is unlikely that relief for the losses will be available in future periods. (vi) 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. (vii) The Group incurs withholding tax on remittances received from certain jurisdictions and on certain investment income. Where these withholding taxes cannot be offset against corporate income tax or otherwise recovered, they represent a cost to the Group. Irrecoverable withholding tax on remittances is included in Other operations and is not allocated to any segment. Irrecoverable withholding tax on investment income is included in the relevant segment where the investment income is reflected. (viii) The statement of financial position contains the following provisions in relation to open tax matters. Half year 2022 $m Balance at beginning of period 42 Movements in the current period included in tax charge attributable to shareholders 1 Provisions utilised in the period — Other movements (including 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) — Balance at end of period 43 (ix) The actual tax rates of the relevant business operations are shown below: Half year 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 22 % 23 % 14 % 25 % 11 % 0 % 19 % Tax rate on profit before tax (5) % 22 % 23 % 5 % 11 % 11 % 0 % 65 % Half year 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 20 % 18 % 16 % 14 % 9 % 2 % 14 % Tax rate on profit before tax 4 % 20 % 17 % 14 % 18 % 9 % 2 % 15 % |
Schedule of movements in provisions for open tax matters | Half year 2022 $m Balance at beginning of period 42 Movements in the current period included in tax charge attributable to shareholders 1 Provisions utilised in the period — Other movements (including 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) — Balance at end of period 43 |
Schedule of tax rate of relevant business operations | Half year 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 22 % 23 % 14 % 25 % 11 % 0 % 19 % Tax rate on profit before tax (5) % 22 % 23 % 5 % 11 % 11 % 0 % 65 % Half year 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 20 % 18 % 16 % 14 % 9 % 2 % 14 % Tax rate on profit before tax 4 % 20 % 17 % 14 % 18 % 9 % 2 % 15 % |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per share | |
Schedule of earnings per share | Half year 2022 Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on profit for the period 300 (194) (2) 104 3.8 ¢ 3.8 ¢ Short-term fluctuations in investment returns on shareholder-backed business 1,383 (118) (2) 1,263 46.2 ¢ 46.2 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Gain attaching to corporate transactions (27) (2) — (29) (1.0) ¢ (1.0) ¢ Based on adjusted operating profit 1,661 (314) (4) 1,343 49.2 ¢ 49.2 ¢ Half year 2021 Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on loss for the period (4,010) (154.2) ¢ (154.2) ¢ Based on loss from discontinued US operations 5,073 195.1 ¢ 195.1 ¢ Based on profit from continuing operations 1,263 (193) (7) 1,063 40.9 ¢ 40.9 ¢ Short-term fluctuations in investment returns on shareholder-backed business 212 (26) — 186 7.2 ¢ 7.2 ¢ Amortisation of acquisition accounting adjustments 2 — — 2 0.1 ¢ 0.1 ¢ Loss attaching to corporate transactions 94 (3) — 91 3.4 ¢ 3.4 ¢ Based on adjusted operating profit 1,571 (222) (7) 1,342 51.6 ¢ 51.6 ¢ |
Summary of weighted average number of shares for calculating earnings per share | 2022 2021 Number of shares (in millions) Half year Half year Weighted average number of shares for calculation of basic earnings per share 2,736 2,601 Shares under option at end of period — 2 Shares that would have been issued at fair value on assumed option price at end of period — (2) Weighted average number of shares for calculation of diluted earnings per share 2,736 2,601 |
Dividends (Tables)
Dividends (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Dividends | |
Schedule of dividends | Half year 2022 Half year 2021 Cents per share $m Cents per share $m Dividends relating to reporting period: First interim ordinary dividend 5.74 ¢ 158 5.37 ¢ 140 Dividends paid in reporting period: Second interim ordinary dividend for prior year 11.86 ¢ 320 10.73 ¢ 283 |
Group assets and liabilities _2
Group assets and liabilities by business type (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Group assets and liabilities by business type | |
Schedule of segment statement of financial position by business type | 30 Jun 2022 $m Asia and Africa Insurance Elimination of Unallocated intra-group With Unit- to a debtors and Group -profits linked Other Eastspring Eliminations Total segment creditors total note (i) note (i) note (i) Debt securities: Sovereign debt Indonesia 496 614 445 9 — 1,564 — — 1,564 Singapore 3,176 525 767 54 — 4,522 — — 4,522 Thailand — — 1,222 — — 1,222 — — 1,222 United Kingdom — 5 — — — 5 — — 5 United States 20,961 22 3,262 — — 24,245 — — 24,245 Vietnam — 13 2,813 — — 2,826 — — 2,826 Other (predominantly Asia) 1,940 709 3,334 27 — 6,010 — — 6,010 Subtotal 26,573 1,888 11,843 90 — 40,394 — — 40,394 Other government bonds AAA 1,361 77 131 — — 1,569 — — 1,569 AA+ to AA- 101 13 27 — — 141 — — 141 A+ to A- 757 125 257 — — 1,139 — — 1,139 BBB+ to BBB- 288 44 64 — — 396 — — 396 Below BBB- and unrated 234 20 424 — — 678 — — 678 Subtotal note(vi) 2,741 279 903 — — 3,923 — — 3,923 Corporate bonds AAA 1,055 171 392 — — 1,618 — — 1,618 AA+ to AA- 1,890 363 1,594 — — 3,847 — — 3,847 A+ to A- 7,020 529 4,129 — — 11,678 — — 11,678 BBB+ to BBB- 7,657 1,419 3,948 1 — 13,025 — — 13,025 Below BBB- and unrated 2,507 424 1,395 — — 4,326 — — 4,326 Subtotal note(vi) 20,129 2,906 11,458 1 — 34,494 — — 34,494 Asset-backed securities AAA 135 5 95 — — 235 — — 235 AA+ to AA- 6 1 4 — — 11 — — 11 A+ to A- 22 — 14 — — 36 — — 36 BBB+ to BBB- 14 — 8 — — 22 — — 22 Below BBB- and unrated 2 1 1 — — 4 — — 4 Subtotal note(vi) 179 7 122 — — 308 — — 308 Total debt securities note(ii) 49,622 5,080 24,326 91 — 79,119 — — 79,119 Loans: Mortgage loans — — 141 — — 141 — — 141 Policy loans 1,392 — 378 — — 1,770 — — 1,770 Other loans 509 — 9 — — 518 — — 518 Total loans 1,901 — 528 — — 2,429 — — 2,429 Equity securities and holdings in collective investment schemes: Direct equities 11,344 11,305 2,088 60 — 24,797 325 — 25,122 Collective investment schemes 21,802 6,901 3,668 2 — 32,373 2 — 32,375 Total equity securities and holdings in collective investment schemes 33,146 18,206 5,756 62 — 57,170 327 — 57,497 Other financial investments note (iii) 1,164 377 2,427 96 — 4,064 880 — 4,944 Total financial investments 85,833 23,663 33,037 249 — 142,782 1,207 — 143,989 Investment properties — — 35 – — 35 — — 35 Investments in joint ventures and associates accounted for using the equity method — — 1,715 295 — 2,010 — — 2,010 Cash and cash equivalents 785 768 1,977 149 — 3,679 2,736 — 6,415 Reinsurers' share of insurance contract liabilities 2 — 2,748 — — 2,750 — — 2,750 Other assets note (iv) 1,557 172 9,298 709 (56) 11,680 3,419 (3,410) 11,689 Total assets 88,177 24,603 48,810 1,402 (56) 162,936 7,362 (3,410) 166,888 Shareholders' equity — — 13,308 1,043 — 14,351 1,758 — 16,109 Non-controlling interests — — 42 121 — 163 – — 163 Total equity — — 13,350 1,164 — 14,514 1,758 — 16,272 Contract liabilities and unallocated surplus of with-profits funds 78,981 23,037 26,079 — — 128,097 — — 128,097 Core structural borrowings — — — — — — 4,266 — 4,266 Operational borrowings 128 3 89 12 — 232 622 — 854 Other liabilities note (v) 9,068 1,563 9,292 226 (56) 20,093 716 (3,410) 17,399 Total liabilities 88,177 24,603 35,460 238 (56) 148,422 5,604 (3,410) 150,616 Total equity and liabilities 88,177 24,603 48,810 1,402 (56) 162,936 7,362 (3,410) 166,888 31 Dec 2021 $m Asia and Africa Insurance Elimination of Unallocated intra-group With Unit- to a debtors and Group -profits linked Other Eastspring Eliminations Total segment creditors total note (i) note (i) note (i) Debt securities: Sovereign debt Indonesia 414 598 609 11 — 1,632 — — 1,632 Singapore 3,684 550 1,068 126 — 5,428 — — 5,428 Thailand — — 1,577 3 — 1,580 — — 1,580 United Kingdom — 7 — — — 7 226 — 233 United States 28,552 47 3,525 — — 32,124 — — 32,124 Vietnam — 20 3,022 — — 3,042 — — 3,042 Other (predominantly Asia) 2,030 720 4,001 21 — 6,772 — — 6,772 Subtotal 34,680 1,942 13,802 161 — 50,585 226 — 50,811 Other government bonds AAA 1,472 86 246 — — 1,804 — — 1,804 AA+ to AA- 45 2 12 — — 59 — — 59 A+ to A- 667 119 304 — — 1,090 — — 1,090 BBB+ to BBB- 121 16 116 — — 253 — — 253 Below BBB- and unrated 204 15 450 — — 669 — — 669 Subtotal note(vi) 2,509 238 1,128 — — 3,875 — — 3,875 Corporate bonds AAA 1,222 236 411 — — 1,869 — — 1,869 AA+ to AA- 2,203 359 1,858 — — 4,420 — — 4,420 A+ to A- 9,046 675 5,294 — — 15,015 — — 15,015 BBB+ to BBB- 9,523 1,711 5,105 — — 16,339 — — 16,339 Below BBB- and unrated 4,009 678 1,827 — — 6,514 — — 6,514 Subtotal note(vi) 26,003 3,659 14,495 — — 44,157 — — 44,157 Asset-backed securities AAA 88 6 74 — — 168 — — 168 AA+ to AA- 6 1 4 — — 11 — — 11 A+ to A- 26 — 17 — — 43 — — 43 BBB+ to BBB- 15 — 9 — — 24 — — 24 Below BBB- and unrated 2 2 1 — — 5 — — 5 Subtotal note(vi) 137 9 105 — — 251 — — 251 Total debt securities note(ii) 63,329 5,848 29,530 161 — 98,868 226 — 99,094 Loans: Mortgage loans — — 150 — — 150 — — 150 Policy loans 1,365 — 368 — — 1,733 — — 1,733 Other loans 668 — 11 — — 679 — — 679 Total loans 2,033 — 529 — — 2,562 — — 2,562 Equity securities and holdings in collective investment schemes: Direct equities 10,290 12,812 2,286 84 — 25,472 683 — 26,155 Collective investment schemes 23,950 7,704 3,787 3 — 35,444 2 — 35,446 Total equity securities and holdings in collective investment schemes 34,240 20,516 6,073 87 — 60,916 685 — 61,601 Other financial investments note (iii) 1,561 149 2,318 106 — 4,134 1,088 — 5,222 Total financial investments 101,163 26,513 38,450 354 — 166,480 1,999 — 168,479 Investment properties — — 38 — — 38 — — 38 Investments in joint ventures and associates accounted for using the equity method — — 1,878 305 — 2,183 — — 2,183 Cash and cash equivalents 905 911 1,444 181 — 3,441 3,729 — 7,170 Reinsurers' share of insurance contract liabilities 225 — 9,528 — — 9,753 — — 9,753 Other assets note (iv) 1,184 166 9,191 759 (51) 11,249 3,608 (3,378) 11,479 Total assets 103,477 27,590 60,529 1,599 (51) 193,144 9,336 (3,378) 199,102 Shareholders' equity — — 14,289 1,120 — 15,409 1,679 — 17,088 Non-controlling interests — — 45 131 — 176 — — 176 Total equity — — 14,334 1,251 — 15,585 1,679 — 17,264 Contract liabilities and unallocated surplus of with-profits funds 94,002 25,651 37,646 — — 157,299 — — 157,299 Core structural borrowings — — — — — — 6,127 — 6,127 Operational borrowings 142 — 106 18 — 266 595 — 861 Other liabilities note (v) 9,333 1,939 8,443 330 (51) 19,994 935 (3,378) 17,551 Total liabilities 103,477 27,590 46,195 348 (51) 177,559 7,657 (3,378) 181,838 Total equity and liabilities 103,477 27,590 60,529 1,599 (51) 193,144 9,336 (3,378) 199,102 Notes (i) ' With-profits’ comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore operations. ‘Unit-linked’ comprises the assets and liabilities held in the unit-linked funds. ‘Other’ includes assets and liabilities of other participating business and other non-linked shareholder-backed business. (ii) Of the Group’s debt securities, the following amounts were held by the consolidated investment funds: 2022 $m 2021 $m Continuing operations: 30 Jun 31 Dec Debt securities held by consolidated investment funds 12,090 15,076 (iii) Other financial investments comprise derivative assets and deposits. (iv) Of total ‘Other assets’ at 30 June 2022, there are: – Property, plant and equipment (PPE) of $405 million (31 December 2021: $478 million). During half year 2022, the Group made additions of $26 million of PPE (half year 2021: $24 million), of which $12 million relates to right-of-use assets (half year 2021: $5 million). – Premiums receivable of $718 million (31 December 2021: $912 million), of which $688 million (31 December 2021: $872 million) are due within one year. (v) Within ‘Other liabilities’ at 30 June 2022 are accruals, deferred income and other liabilities of $ 8,103 million (31 December 2021: $ 7,983 million), of which $ 5,737 million (31 December 2021: $ 5,972 million) are due within one year. (vi) 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. |
Schedule of analysis of securities | 2022 $m 2021 $m Continuing operations: 30 Jun 31 Dec Debt securities held by consolidated investment funds 12,090 15,076 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
At fair value | |
Financial instruments | |
Schedule of fair value of assets and liabilities | 30 Jun 2022 $m Level 1 Level 2 Level 3 Valuation Valuation Quoted prices based on based on (unadjusted) significant significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 471 4 475 Equity securities and holdings in collective investment schemes 49,727 7,193 577 57,497 Debt securities 57,125 21,954 40 79,119 Derivative assets 48 134 — 182 Derivative liabilities (461) (310) — (771) Total financial investments, net of derivative liabilities 106,439 29,442 621 136,502 Investment contract liabilities without discretionary participation features — (727) — (727) Net asset value attributable to unit holders of consolidated investment funds (4,546) (3) — (4,549) Total financial instruments at fair value 101,893 28,712 621 131,226 Percentage of total (%) 78 % 22 % 0 % 100 % Analysed by business type: Financial investments, net of derivative liabilities at fair value: With-profits 66,775 15,612 503 82,890 Unit-linked 21,201 2,084 4 23,289 Non-linked shareholder-backed business 18,463 11,746 114 30,323 Total financial investments net of derivative liabilities, at fair value 106,439 29,442 621 136,502 Percentage of total (%) 78 % 22 % 0 % 100 % Total financial investments net of derivative liabilities, at fair value 106,439 29,442 621 136,502 Other financial liabilities at fair value (4,546) (730) — (5,276) Total financial instruments at fair value 101,893 28,712 621 131,226 31 Dec 2021 $m Level 1 Level 2 Level 3 Valuation Valuation Quoted prices based on based on (unadjusted) significant significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 616 5 621 Equity securities and holdings in collective investment schemes 54,107 6,917 577 61,601 Debt securities 76,049 22,987 58 99,094 Derivative assets 359 122 — 481 Derivative liabilities (146) (116) — (262) Total financial investments, net of derivative liabilities 130,369 30,526 640 161,535 Investment contract liabilities without discretionary participation features — (814) — (814) Net asset value attributable to unit holders of consolidated investment funds (5,618) (46) — (5,664) Total financial instruments at fair value 124,751 29,666 640 155,057 Percentage of total (%) 81 % 19 % 0 % 100 % Analysed by business type: Financial investments net of derivative liabilities, at fair value With-profits 82,489 15,438 506 98,433 Unit-linked 24,024 2,343 5 26,372 Non-linked shareholder-backed business 23,856 12,745 129 36,730 Total financial investments net of derivative liabilities, at fair value 130,369 30,526 640 161,535 Percentage of total (%) 81 % 19 % 0 % 100 % Total financial investments net of derivative liabilities, at fair value 130,369 30,526 640 161,535 Other financial liabilities at fair value (5,618) (860) — (6,478) Total financial instruments at fair value 124,751 29,666 640 155,057 Notes (i) Of the total level 2 debt securities of $ 21,954 million at 30 June 2022, (31 December 2021: $ 22,987 million), $33 million (31 December 2021: $24 million) are valued internally. (ii) At 30 June 2022, the Group held $621 million (31 December 2021: $640 million) of net financial instruments at fair value within level 3. This represents less than 0.5 per cent of the total fair valued financial assets, net of financial liabilities, for all periods and comprises the following: - Equity securities and holdings in collective investment schemes of $577 million (31 December 2021: $577 million) consisting primarily of property and infrastructure funds held by the participating funds, which are externally valued using the net asset value of the invested entities. Equity securities of $1 million (31 December 2021: $1 million) are internally valued, representing less than 0.1 per cent for all periods of the total fair valued financial assets net of financial liabilities. Internal valuations are inherently more subjective than external valuations; and - Other sundry individual financial instruments of a net asset of $44 million (31 December 2021: $63 million). Of the net financial instruments of $621 million at 30 June 2022 (31 December 2021: $640 million) referred to above: - A net asset of $507 million (31 December 2021: $511 million) is held by the Group's with-profits and unit-linked funds and therefore shareholders' profit and equity are not impacted by movements in the valuation of these financial instruments; and - A net asset of $114 million (31 December 2021: $129 million) is held to support non-linked shareholder-backed business, of which $ 112 million (31 December 2021: $112 million) are primarily private equity investments and corporate bonds externally valued using the net asset value of the invested entities and external prices adjusted to reflect the specific known conditions relating the these bonds (eg distressed securities) and are therefore inherently less subjective than internal valuations. If the value of all these level 3 financial instruments decreased by 10 per cent, the change in valuation would be $(11) million (31 December 2021: $(26) 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 operating profit. |
Schedule of reconciliation of movements in level 3 financial instruments measured at fair value | Half year 2022 $m Equity securities and holdings in collective investment Debt Group Loans schemes securities total Balance at beginning of period 5 577 58 640 Total losses in income statement note (1) (47) (1) (49) Total losses recorded in other comprehensive income — (14) (2) (16) Purchases and other additions — 61 — 61 Transfers out of level 3 — — (15) (15) Balance at end of period 4 577 40 621 Full year 2021 $m Equity securities and holdings in collective investment Debt Group Continuing operations Loans schemes securities total Balance at beginning of year 6 445 33 484 Total (losses) gains in income statement note (1) 6 (3) 2 Total losses recorded in other comprehensive income — (5) (2) (7) Purchases and other additions — 143 — 143 Transfers (out of) into level 3 — (12) 30 18 Balance at end of year 5 577 58 640 Note Of the total net (losses) gains in the income statement of $(49) million at half year 2022 (full year 2021: $2 million), $(26) million (full year 2021: $2 million) relates to net unrealised gains and losses of financial instruments still held at the end of the period, which can be analysed as follows: 2022 $m 2021 $m Half year Full year Loans (1) (1) Equity securities and holdings in collective investment schemes (24) 6 Debt securities (1) (3) Total net (losses) gains (26) 2 |
Schedule of net unrealised gains and losses in the income statement for financial instruments still held at the end of the year | 2022 $m 2021 $m Half year Full year Loans (1) (1) Equity securities and holdings in collective investment schemes (24) 6 Debt securities (1) (3) Total net (losses) gains (26) 2 |
Assets and liabilities at amortised cost for which fair value is disclosed | |
Financial instruments | |
Schedule of fair value of assets and liabilities | 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. The carrying value of investment contracts with discretionary participation features is on an IFRS 4 basis, which is also excluded from the analysis below, as it is impractical to determine the fair value of these contracts due to the lack of a reliable basis to measure participation features. 2022 $m 2021 $m 30 Jun 31 Dec Carrying Fair Carrying Fair value value value value Assets: Loans 1,954 2,103 1,941 2,152 Liabilities: Core structural borrowings of shareholder-financed businesses (4,266) (4,073) (6,127) (6,565) Operational borrowings (excluding lease liabilities) (568) (568) (514) (514) Obligations under funding, securities lending and sale and repurchase agreements (799) (799) (223) (223) Total net financial assets (liabilities) at amortised cost (3,679) (3,337) (4,923) (5,150) |
Policyholder liabilities and _2
Policyholder liabilities and unallocated surplus (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Policyholder liabilities and unallocated surplus | |
Movements in policyholder liabilities and unallocated surplus of with-profits funds | Half year 2022 $m With- Shareholder-backed business Total profits Unit-linked Other business liabilities business At beginning of period 94,002 34,756 48,496 177,254 Comprising: Policyholder liabilities on the balance sheet 88,618 25,651 37,646 151,915 Unallocated surplus of with-profits funds on the balance sheet note (i) 5,384 — — 5,384 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 9,105 10,850 19,955 Premiums: note (iii) New business 1,456 1,231 1,607 4,294 In-force 2,867 1,219 2,694 6,780 4,323 2,450 4,301 11,074 Surrenders notes (iii)(iv) (558) (1,426) (293) (2,277) Maturities/deaths/other claim events (993) (127) (842) (1,962) Net flows 2,772 897 3,166 6,835 Shareholders' transfers post tax (74) — — (74) Investment-related items and other movements note (v) (16,422) (2,396) (12,391) (31,209) Foreign exchange translation differences note (vi) (1,297) (1,522) (1,563) (4,382) At end of period 78,981 31,735 37,708 148,424 Comprising: Policyholder liabilities on the balance sheet 74,413 23,037 26,079 123,529 Unallocated surplus of with-profits funds on the balance sheet note (i) 4,568 — — 4,568 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 8,698 11,629 20,327 Half year 2021 $m With- Shareholder-backed business Total profits Unit-linked Other Asia and Continuing operations: business liabilities business Africa At beginning of period 86,410 32,506 46,639 165,555 Comprising: Policyholder liabilities on the balance sheet 81,193 25,433 38,107 144,733 Unallocated surplus of with-profits funds on the balance sheet note (i) 5,217 — — 5,217 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 7,073 8,532 15,605 Premiums: note (iii) New business 900 1,237 942 3,079 In-force 3,617 1,211 2,469 7,297 4,517 2,448 3,411 10,376 Surrenders notes (iii)(iv) (393) (1,724) (410) (2,527) Maturities/deaths/other claim events (852) (101) (505) (1,458) Net flows 3,272 623 2,496 6,391 Shareholders' transfers post-tax (62) — — (62) Investment-related items and other movements note (v) 201 997 (2,994) (1,796) Foreign exchange translation differences note (vi) (578) (532) (230) (1,340) At end of period 89,243 33,594 45,911 168,748 Comprising: Policyholder liabilities on the balance sheet 82,970 25,615 36,224 144,809 Unallocated surplus of with-profits funds on the balance sheet note (i) 6,273 — — 6,273 Group's share of policyholder liabilities relating to joint ventures and associates note (ii) — 7,979 9,687 17,666 Average policyholder liability balances note (vii) Half year 2022 81,516 33,245 43,102 157,863 Half year 2021 82,082 33,050 46,275 161,407 Notes (i) Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities, determined in accordance with the Group's accounting policies, that have yet to be appropriated between policyholders and shareholders for the Group's with-profits funds in Hong Kong and Malaysia. In Hong Kong, the unallocated surplus includes the shareholders' share of expected future bonuses, with the expected policyholder share being included in policyholder liabilities. Any excess of assets over liabilities and amounts expected to be paid out by the fund on future bonuses is also included in the unallocated surplus. (ii) The Group's investments in joint ventures and associates 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 CPL, India and the Takaful business in Malaysia. (iii) 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 are after any deductions for fees/charges; claims (surrenders, maturities, deaths and other claim events) shown above represent the policyholder liabilities provision released rather than the claims amount paid to the policyholder. The analysis also includes net flows of the Group's insurance joint ventures and associate. (iv) The rate of surrenders for shareholder-backed business (expressed as a percentage of opening policyholder liabilities) was 2.1 per cent in half year 2022 (half year 2021: 2.7 per cent). (v) Investment-related items and other movements in the first half of 2022 primarily represents the effects of higher interest rates on the discount rates applied in the measurement of the policyholder liabilities, together with bond losses due to rising interest rates and lower level of investment returns from equities following the falls in equity markets. Other business also includes the effect of the early adoption of the Risk-based Capital Regime in Hong Kong as discussed in note C3.2 below. (vi) Movements in the period have been translated at the average exchange rates for the period ended 30 June 2022 and 2021. The closing balance has been translated at the closing spot rates as at 30 June 2022 and 2021. Differences upon retranslation are included in foreign exchange translation differences. (vii) Average policyholder liabilities have been based on opening and closing balances, adjusted for any acquisitions, disposals and other corporate transactions arising in the period, and exclude unallocated surplus of with-profits funds. |
Schedule of reconciliation of gross and reinsurers' share of policyholder liabilities | Half year 2022 $m Reinsurers' share Unallocated Contract of insurance surplus of liabilities contract liabilities with-profits funds At beginning of period 151,915 (9,753) 5,384 (Income) expense included in the income statement note (i) (25,193) 6,942 (779) Other movements note (ii) 69 — — Foreign exchange translation differences (3,262) 61 (37) At end of period 123,529 (2,750) 4,568 Half year 2021 $m Reinsurers' share Unallocated Contract of insurance surplus of liabilities contract liabilities with-profits funds At beginning of period 441,246 (46,595) 5,217 Reclassification of US operations as held for distribution (296,513) 35,232 — Expense included in the income statement note (i) 1,354 1,450 1,070 Other movements note (ii) 25 — — Foreign exchange translation differences (1,303) 22 (14) At end of period 144,809 (9,891) 6,273 Notes (i) The total charge for benefit and claims in half year 2022 shown in the income statement comprises the amounts shown as '(Income) expense included in the income statement' in the table above together with claims paid of $( 4,406 ) million in the period (half year 2021: $( 4,143 ) million) and claim amounts attributable to reinsurers of $ 202 million (half year 2021: $269 million). (ii) Other movements 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. |
Schedule of segmental analysis of the total charge for benefit and claims and movement in unallocated surplus, net of reinsurance | Half year 2022 $m Growth Hong markets and Total Kong Indonesia Malaysia Singapore other segment Claims incurred, net of reinsurance (894) (609) (533) (1,345) (887) (4,268) Decrease in policyholder liabilities, net of reinsurance 13,090 187 157 2,865 2,016 18,315 Movement in unallocated surplus of with-profits funds 660 — 119 — — 779 Benefits and claims and movement in unallocated surplus, net of reinsurance 12,856 (422) (257) 1,520 1,129 14,826 Half year 2021 $m Growth Hong markets and Total Kong Indonesia Malaysia Singapore other segment Claims incurred, net of reinsurance (818) (602) (482) (1,346) (755) (4,003) (Increase) decrease in policyholder liabilities, net of reinsurance (369) 266 (68) (2,197) (307) (2,675) Movement in unallocated surplus of with-profits funds (1,121) — 51 — — (1,070) Benefits and claims and movement in unallocated surplus, net of reinsurance (2,308) (336) (499) (3,543) (1,062) (7,748) |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Intangible assets | |
Reconciliation of goodwill | 2022 $m 2021 $m 30 Jun 31 Dec Carrying value at beginning of period 907 961 Exchange differences (36) (54) Carrying value at end of period 871 907 |
Schedule of deferred acquisition costs and other intangible assets | 2022 $m 2021 $m 30 Jun 31 Dec Shareholder-backed business: DAC related to insurance contracts as classified under IFRS 4 2,845 2,776 DAC related to investment management contracts, including life assurance contracts classified as financial instruments and investment management contracts under IFRS 4 39 39 DAC related to insurance and investment contracts 2,884 2,815 Distribution rights 3,626 3,782 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 22 28 Other intangibles 180 184 Present value of acquired in-force and other intangibles 3,828 3,994 Total of DAC and other intangible assets attributable to shareholders note (i) 6,712 6,809 Other intangible assets, including computer software, attributable to with-profits funds 38 49 Total of deferred acquisition costs and other intangible assets 6,750 6,858 Notes (i) Movement in DAC and other intangible assets attributable to shareholders is shown below: 2022 $m 2021 $m Distribution Other Half year Full year DAC rights intangibles Total Total note (ii) note (iii) Balance at beginning of period 2,815 3,782 212 6,809 20,275 Removal of discontinued US operations — — — — (13,881) Additions 426 44 27 497 1,185 Amortisation to the income statement (249) (143) (27) (419) (651) Disposals and transfers — — (3) (3) (7) Exchange differences and other movements (108) (57) (7) (172) (112) Balance at end of period 2,884 3,626 202 6,712 6,809 (ii) 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 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. (iii) Other intangibles comprise present value of acquired in-force (PVIF) related to insurance contracts and other intangible assets such as software rights. Software rights include additions of $17 million, amortisation of $(13) million, disposals of $(2) million, foreign exchange of $(6) million and closing balance at 30 June 2022 of $110 million (31 December 2021: $114 million) . |
Shareholder-backed | |
Intangible assets | |
Schedule of deferred acquisition costs and other intangible assets | Notes (i) Movement in DAC and other intangible assets attributable to shareholders is shown below: 2022 $m 2021 $m Distribution Other Half year Full year DAC rights intangibles Total Total note (ii) note (iii) Balance at beginning of period 2,815 3,782 212 6,809 20,275 Removal of discontinued US operations — — — — (13,881) Additions 426 44 27 497 1,185 Amortisation to the income statement (249) (143) (27) (419) (651) Disposals and transfers — — (3) (3) (7) Exchange differences and other movements (108) (57) (7) (172) (112) Balance at end of period 2,884 3,626 202 6,712 6,809 (ii) 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 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. (iii) Other intangibles comprise present value of acquired in-force (PVIF) related to insurance contracts and other intangible assets such as software rights. Software rights include additions of $17 million, amortisation of $(13) million, disposals of $(2) million, foreign exchange of $(6) million and closing balance at 30 June 2022 of $110 million (31 December 2021: $114 million) . |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Core structural borrowings of shareholder-financed businesses | |
Borrowings | |
Schedule of borrowings | 2022 $m 2021 $m 30 Jun 31 Dec Subordinated debt: US$1,000m 5.25% Notes note (i) — 1,000 US$725m 4.375% Notes note (iii) — 725 US$750m 4.875% Notes 749 748 €20m Medium Term Notes 2023 21 23 £435m 6.125% Notes 2031 524 584 US$1,000m 2.95% Notes 2033 note (ii) 995 995 Senior debt: note (iv) £300m 6.875% Notes 2023 363 404 £250m 5.875% Notes 2029 282 313 $1,000m 3.125% Notes 2030 986 985 $350m 3.625% Notes 2032 note (v) 346 — Bank loans: $350m Loan 2024 note (v) — 350 Total core structural borrowings of shareholder-financed businesses 4,266 6,127 Notes (i) The US$ 1,000 million notes were redeemed on 20 January 2022 using the proceeds from the issuance of ordinary shares in October 2021. (ii) In November 2021, the Company issued US$ 1,000 million 2.95 per cent subordinated debt maturing on 3 November 2033 with proceeds, net of costs, of $995 million. (iii) The US$ 725 million note was redeemed on 20 January 2022 using the proceeds from the US$ 1,000 million subordinated debt issued in November 2021. (iv) The senior debt ranks above subordinated debt in the event of liquidation. (v) In March 2022, the Company issued US$ 350 million 3.625 per cent senior debt maturing on 24 March 2032 with proceeds, net of costs, of $346 million, which was used to redeem the US$ 350 million bank loan in May 2022. |
Operational borrowings | |
Borrowings | |
Schedule of borrowings | 2022 $m 2021 $m 30 Jun 31 Dec Shareholder-financed business: Borrowings in respect of short-term fixed income securities programmes (commercial paper) 544 500 Lease liabilities under IFRS 16 177 209 Other borrowings 5 10 Operational borrowings attributable to shareholder-financed businesses 726 719 With profits business: Lease liabilities under IFRS 16 109 138 Other borrowings 19 4 Operational borrowings attributable to with-profits businesses 128 142 Total operational borrowings 854 861 |
Sensitivity analysis to key m_2
Sensitivity analysis to key market risks (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Sensitivity analysis to key market risks | |
Schedule of estimated sensitivity to risk | Net effect on shareholders' equity from insurance operations 2022 $m 2021 $m 30 Jun 31 Dec Shareholders’ equity of insurance operations 13,308 14,289 Sensitivity to key market risks: note Interest rates and consequential effects – 1% increase (680) (796) Interest rates and consequential effects – 0.5% decrease 121 137 Equity/property market values – 10% rise 305 372 Equity/property market values – 20% fall (750) (787) Note The effect from the changes in interest rates or equity and property prices above, if they arose, would impact profit after tax for the insurance operations and would mostly be recorded within short-term fluctuations in investment returns . The impact on profit after tax would be the same as the net effect on shareholders' equity. In the context of the Group, the results of the Africa insurance operations are not materially impacted by interest rate or equity rate changes. |
Deferred tax assets and liabi_2
Deferred tax assets and liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred tax assets and liabilities | |
Schedule of deferred tax assets and liabilities | Half year 2022 $m Other movements including Balance Movement in foreign Balance at beginning of income exchange at end of period statement movements period Deferred tax assets Unrealised losses or gains on investments 3 173 (7) 169 Balances relating to investment and insurance contracts 34 1 (34) 1 Short-term temporary differences 162 32 (10) 184 Unused tax losses 67 (41) (2) 24 Total deferred tax assets 266 165 (53) 378 Deferred tax liabilities Unrealised losses or gains on investments (242) 99 6 (137) Balances relating to investment and insurance contracts (2,125) (52) 113 (2,064) Short-term temporary differences (495) (25) 22 (498) Total deferred tax liabilities (2,862) 22 141 (2,699) Full year 2021 $m Other movements including Balance Removal of Movement in foreign Balance at beginning discontinued income exchange at end of of year US operations statement movements year Deferred tax assets Unrealised losses or gains on investments — — 3 — 3 Balances relating to investment and insurance contracts 87 — (16) (37) 34 Short-term temporary differences 4,662 (4,513) 15 (2) 162 Unused tax losses 109 (29) (14) 1 67 Total deferred tax assets 4,858 (4,542) (12) (38) 266 Deferred tax liabilities Unrealised losses or gains on investments (1,063) 691 127 3 (242) Balances relating to investment and insurance contracts (1,765) — (433) 73 (2,125) Short-term temporary differences (3,247) 2,832 (87) 7 (495) Total deferred tax liabilities (6,075) 3,523 (393) 83 (2,862) |
Share capital, share premium _2
Share capital, share premium and own shares (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share capital, share premium and own shares | |
Schedule of reconciliation of issued shares | 30 Jun 2022 31 Dec 2021 Number of Number of ordinary Share Share ordinary Share Share Issued shares of 5p each shares capital premium shares capital premium fully paid: $m $m $m $m Balance at beginning of period 2,746,412,265 182 5,010 2,609,489,702 173 2,637 Shares issued under share-based schemes 2,902,591 — — 6,142,213 — 8 Shares issued under Hong Kong public offer and international placing in 2021 note — — — 130,780,350 9 2,365 Balance at end of period 2,749,314,856 182 5,010 2,746,412,265 182 5,010 |
Summary of options outstanding under save as you earn schemes to subscribe for shares | Options outstanding under save as you earn schemes to subscribe for shares at each period end shown below are as follows: Number of shares Share price range Exercisable to subscribe for from to by year 30 Jun 2022 1,734,638 964 p 1,455 p 2027 31 Dec 2021 2,022,535 964 p 1,455 p 2027 |
Summary of purchases of own shares in respect of employee incentive plans | Number of shares purchased Cost (in millions) $m Half year 2022 5.2 69.9 Full year 2021 3.8 81.2 The cost in USD shown has been calculated from the share prices in pounds sterling using the monthly average exchange rate for the month in which those shares were purchased. |
Corporate transactions (Tables)
Corporate transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Corporate transactions | |
Schedule of gain (loss) attaching to corporate transactions | 2022 $m 2021 $m Half year Half year Gain (loss) attaching to corporate transactions as shown separately on the condensed consolidated income statement note 62 (56) Loss arising on reinsurance transaction undertaken by the Hong Kong business (35) (38) Total gain (loss) attaching to corporate transactions note B1.1 27 (94) Note The gain (loss) attaching to corporate transactions includes a gain of $60 million (half year 2021: nil) from the sale of shares relating to the Group’s retained interest in Jackson post the demerger. Corporate transactions in 2021 also included amounts incurred by Prudential plc (half year 2021: $(28) million) in connection with the separation of Jackson and $(28) million of payment for the termination of loss of office made to the former chief executive of Jackson. |
Discontinued US operations | |
Corporate transactions | |
Summary of results and cash flows for the discontinued US operations | The results for the discontinued US operations presented in the consolidated financial statements for the period up to the demerger in September 2021 are analysed below. (a) Income statement 2021 $m Half year Total revenue, net of reinsurance 35,379 Total charge, net of reinsurance (33,209) Profit before tax 2,170 Tax charge (370) Profit after tax 1,800 Remeasurement to fair value note (i) (7,507) Cumulative valuation movements on available-for-sale debt securities, net of related tax and change in DAC, and net investment hedges recycled from other comprehensive income note (ii) — Loss for the period (5,707) Attributable to: Equity holders of the Company (5,073) Non-controlling interests (634) Loss for the period (5,707) Notes (i) The loss on remeasurement to fair value on demerger was recognised in accordance with IFRIC 17, ‘Distribution of non-cash assets to owners’ as described above. (ii) In accordance with IFRS, as a result of the demerger of Jackson, accumulated balances previously recognised through other comprehensive income relating to financial instruments held by Jackson classified as available-for-sale and historical net investment hedges were recycled from other comprehensive income to the results of discontinued operations in the consolidated income statement. Total shareholders’ equity is unchanged as a result of this recycling. ( b) Total comprehensive income 2021 $m Half year Loss for the period (5,707) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (867) Cumulative valuation movements on available-for-sale debt securities, net of related tax and change in DAC, and net investment hedges recycled through profit or loss at the point of demerger — Other comprehensive loss for the period (867) Total comprehensive loss for the period (6,574) Attributable to: Equity holders of the Company (5,844) Non-controlling interests (730) Total comprehensive loss for the period (6,574) (c) Cash flows 2021 $m Half year Net cash flows from operating activities (442) Net cash flows from financing activities note (18) Net decrease in cash and cash equivalents (460) Cash and cash equivalents at beginning of period 1,621 Cash and cash equivalents at end of period 1,161 Note No dividends were paid by Jackson during 2021 prior to demerger. |
Basis of preparation (Details)
Basis of preparation (Details) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2022 $ / ¥ | Jun. 30, 2022 $ / $ $ / ¥ | Jun. 30, 2022 $ / ₨ $ / ¥ | Jun. 30, 2022 $ / Rp $ / ¥ | Jun. 30, 2022 $ / RM $ / ¥ | Jun. 30, 2022 $ / $ $ / ¥ | Jun. 30, 2022 $ / ¥ $ / $ | Jun. 30, 2022 $ / ฿ $ / ¥ | Jun. 30, 2022 $ / £ $ / ¥ | Jun. 30, 2022 $ / ₫ $ / ¥ | Jun. 30, 2021 $ / ¥ | Jun. 30, 2021 $ / $ | Jun. 30, 2021 $ / ₨ | Jun. 30, 2021 $ / Rp | Jun. 30, 2021 $ / RM | Jun. 30, 2021 $ / $ | Jun. 30, 2021 $ / $ | Jun. 30, 2021 $ / ฿ | Jun. 30, 2021 $ / £ | Jun. 30, 2021 $ / ₫ | Jun. 30, 2022 $ / $ | Jun. 30, 2022 $ / ₨ | Jun. 30, 2022 $ / Rp | Jun. 30, 2022 $ / RM | Jun. 30, 2022 $ / $ | Jun. 30, 2022 $ / $ | Jun. 30, 2022 $ / ฿ | Jun. 30, 2022 $ / £ | Jun. 30, 2022 $ / ₫ | Dec. 31, 2021 $ / ¥ | Dec. 31, 2021 $ / $ | Dec. 31, 2021 $ / ₨ | Dec. 31, 2021 $ / Rp | Dec. 31, 2021 $ / RM | Dec. 31, 2021 $ / $ | Dec. 31, 2021 $ / $ | Dec. 31, 2021 $ / ฿ | Dec. 31, 2021 $ / £ | Dec. 31, 2021 $ / ₫ | |
Basis of preparation | |||||||||||||||||||||||||||||||||||||||
Closing rate | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 7.85 | 78.97 | 14,897.50 | 4.41 | 1.39 | 29.73 | 35.35 | 0.82 | 23,265 | 6.37 | 7.80 | 74.34 | 14,252.50 | 4.17 | 1.35 | 27.67 | 33.19 | 0.74 | 22,790 | ||||||||||
Average rate | 6.48 | 7.83 | 76.23 | 14,453.52 | 4.27 | 1.37 | 28.73 | 33.73 | 0.77 | 22,925.22 | 6.47 | 7.76 | 73.33 | 14,273.32 | 4.10 | 1.33 | 28.02 | 30.83 | 0.72 | 23,044.83 |
Analysis of performance by se_3
Analysis of performance by segment - Segment results (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Other income (expenditure): | |||
Interest payable on core structural borrowings | $ (103) | $ (164) | |
Adjusted operating profit | 1,661 | 1,571 | |
Short-term fluctuations in investment returns on shareholder-backed business | (1,383) | (212) | |
Amortisation of acquisition accounting adjustments | (5) | (2) | |
Gain (loss) attaching to corporate transactions | 27 | (94) | |
Profit before tax attributable to shareholders' returns | 300 | 1,263 | |
Tax charge attributable to shareholders' returns | (194) | (193) | |
Profit after tax from continuing operations | 106 | 1,070 | |
Loss after tax from discontinued US operations | [1] | (5,707) | |
Profit (loss) for the period | 106 | (4,637) | |
Attributable to: | |||
Equity holders of the Company From continuing operations | 104 | 1,063 | |
Equity holders of the Company From discontinued operations | (5,073) | ||
Profit (loss) attributable to equity holders of the company | 104 | (4,010) | |
Non-controlling interests from continuing operations | 2 | 7 | |
Non-controlling interests from discontinued operations | (634) | ||
Profit (loss) attributable to non-controlling interests | 2 | (627) | |
Profit (loss) for the period | $ 106 | $ (4,637) | |
Basic earnings per share | |||
Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations | $ 0.492 | $ 0.516 | |
Based on profit from continuing operations (in USD per share) | $ 0.038 | 0.409 | |
Based on loss from discontinued operations (in USD per share) | $ (1.951) | ||
Operating segments | |||
Other income (expenditure): | |||
Tax charge attributable to shareholders' returns | $ (193) | $ (200) | |
Profit after tax from continuing operations | 406 | 1,521 | |
Operating segments | CPL | |||
Other income (expenditure): | |||
Adjusted operating profit | 149 | 139 | |
Profit after tax from continuing operations | (28) | 148 | |
Operating segments | Hong Kong | |||
Other income (expenditure): | |||
Adjusted operating profit | 501 | 460 | |
Tax charge attributable to shareholders' returns | (29) | (16) | |
Profit after tax from continuing operations | (613) | 441 | |
Operating segments | Indonesia | |||
Other income (expenditure): | |||
Adjusted operating profit | 196 | 225 | |
Tax charge attributable to shareholders' returns | (38) | (45) | |
Profit after tax from continuing operations | 131 | 179 | |
Operating segments | Malaysia | |||
Other income (expenditure): | |||
Adjusted operating profit | 190 | 184 | |
Tax charge attributable to shareholders' returns | (35) | (28) | |
Profit after tax from continuing operations | 119 | 135 | |
Operating segments | Singapore | |||
Other income (expenditure): | |||
Adjusted operating profit | 340 | 320 | |
Tax charge attributable to shareholders' returns | (3) | (23) | |
Profit after tax from continuing operations | 63 | 141 | |
Operating segments | Growth markets and other | |||
Other income (expenditure): | |||
Adjusted operating profit | 522 | 479 | |
Tax charge attributable to shareholders' returns | (74) | (73) | |
Profit after tax from continuing operations | 617 | 330 | |
Other items | 160 | 167 | |
Operating segments | Eastspring | |||
Other income (expenditure): | |||
Adjusted operating profit | 131 | 162 | |
Tax charge attributable to shareholders' returns | (14) | (15) | |
Profit after tax from continuing operations | 117 | 147 | |
Material reconciling items | |||
Other income (expenditure): | |||
Investment return and other income | 39 | ||
Interest payable on core structural borrowings | (103) | (164) | |
Corporate expenditure | (150) | (157) | |
Total other income (expenditure) | (214) | (321) | |
Restructuring and IFRS 17 implementation costs | (154) | (77) | |
Material reconciling items | Insurance and asset management operations | |||
Other income (expenditure): | |||
Restructuring and IFRS 17 implementation costs | $ (44) | $ (33) | |
[1] Discontinued operations for half year and full year 2021 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Analysis of performance by se_4
Analysis of performance by segment - Performance measure (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Analysis of operating segments | |||
Unamortised interest-related realised gains related to previously sold bonds | $ 211 | $ 515 | |
Equity-type securities | |||
Financial investments | 143,989 | 168,479 | |
Insurance operations | Non-linked shareholder-backed | Equity-type securities | |||
Equity-type securities | |||
Financial investments | $ 5,756 | $ 6,073 | |
Insurance operations | Non-linked shareholder-backed | Equity-type securities | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 4.60% | 5.50% | |
Insurance operations | Non-linked shareholder-backed | Equity-type securities | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 16.90% | 16.90% |
Analysis of performance by se_5
Analysis of performance by segment - Revenue (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of operating segments | ||
Gross premiums earned | $ 12,241 | $ 11,521 |
Outward reinsurance premiums | (919) | (898) |
Earned premiums, net of reinsurance | 11,322 | 10,623 |
Other income | 253 | 331 |
Total revenue | 11,575 | 10,954 |
Interest income | 1,380 | 1,457 |
Dividend and other investment income | 950 | 573 |
Investment (depreciation) appreciation | (26,900) | (1,292) |
Total revenue, net of reinsurance | (12,995) | 11,692 |
CPL | ||
Analysis of operating segments | ||
Prudential's share of revenue | 1,605 | 1,307 |
Asset management business | ||
Analysis of operating segments | ||
Other income | 181 | 234 |
Operating segments after elimination of intra-group amounts, before unallocated | ||
Analysis of operating segments | ||
Gross premiums earned | 12,241 | 11,521 |
Outward reinsurance premiums | (919) | (898) |
Earned premiums, net of reinsurance | 11,322 | 10,623 |
Other income | 253 | 331 |
Total revenue | 11,575 | 10,954 |
Interest income | 1,377 | 1,457 |
Dividend and other investment income | 931 | 573 |
Investment (depreciation) appreciation | (26,928) | (1,292) |
Total revenue, net of reinsurance | (13,045) | 11,692 |
Operating segments after elimination of intra-group amounts, before unallocated | Hong Kong | ||
Analysis of operating segments | ||
Gross premiums earned | 4,672 | 4,776 |
Outward reinsurance premiums | (771) | (767) |
Earned premiums, net of reinsurance | 3,901 | 4,009 |
Other income | 14 | 24 |
Total revenue | 3,915 | 4,033 |
Operating segments after elimination of intra-group amounts, before unallocated | Indonesia | ||
Analysis of operating segments | ||
Gross premiums earned | 809 | 871 |
Outward reinsurance premiums | (18) | (28) |
Earned premiums, net of reinsurance | 791 | 843 |
Other income | 4 | 5 |
Total revenue | 795 | 848 |
Operating segments after elimination of intra-group amounts, before unallocated | Malaysia | ||
Analysis of operating segments | ||
Gross premiums earned | 934 | 929 |
Outward reinsurance premiums | (29) | (22) |
Earned premiums, net of reinsurance | 905 | 907 |
Other income | 1 | |
Total revenue | 905 | 908 |
Operating segments after elimination of intra-group amounts, before unallocated | Singapore | ||
Analysis of operating segments | ||
Gross premiums earned | 3,616 | 2,934 |
Outward reinsurance premiums | (70) | (55) |
Earned premiums, net of reinsurance | 3,546 | 2,879 |
Other income | 9 | 10 |
Total revenue | 3,555 | 2,889 |
Operating segments after elimination of intra-group amounts, before unallocated | Growth markets and other | ||
Analysis of operating segments | ||
Gross premiums earned | 2,210 | 2,011 |
Outward reinsurance premiums | (31) | (26) |
Earned premiums, net of reinsurance | 2,179 | 1,985 |
Other income | 45 | 57 |
Total revenue | 2,224 | 2,042 |
Operating segments after elimination of intra-group amounts, before unallocated | Eastspring | ||
Analysis of operating segments | ||
Other income | 181 | 234 |
Total revenue | 181 | 234 |
Operating segments | Hong Kong | ||
Analysis of operating segments | ||
Interest income | 510 | 528 |
Dividend and other investment income | 338 | 214 |
Investment (depreciation) appreciation | (17,752) | (1,444) |
Total revenue, net of reinsurance | (12,989) | 3,331 |
Operating segments | Indonesia | ||
Analysis of operating segments | ||
Interest income | 39 | 46 |
Dividend and other investment income | 103 | 33 |
Investment (depreciation) appreciation | (144) | (135) |
Total revenue, net of reinsurance | 793 | 792 |
Operating segments | Malaysia | ||
Analysis of operating segments | ||
Interest income | 115 | 117 |
Dividend and other investment income | 103 | 101 |
Investment (depreciation) appreciation | (557) | (280) |
Total revenue, net of reinsurance | 566 | 846 |
Operating segments | Singapore | ||
Analysis of operating segments | ||
Interest income | 395 | 462 |
Dividend and other investment income | 321 | 186 |
Investment (depreciation) appreciation | (6,134) | 817 |
Total revenue, net of reinsurance | (1,863) | 4,354 |
Operating segments | Growth markets and other | ||
Analysis of operating segments | ||
Interest income | 317 | 303 |
Dividend and other investment income | 66 | 39 |
Investment (depreciation) appreciation | (2,324) | (259) |
Total revenue, net of reinsurance | 284 | 2,125 |
Operating segments | Eastspring | ||
Analysis of operating segments | ||
Interest income | 1 | 1 |
Investment (depreciation) appreciation | (17) | 9 |
Total revenue, net of reinsurance | 271 | 350 |
Inter-segment elimination | ||
Analysis of operating segments | ||
Total revenue | (107) | (106) |
Total revenue, net of reinsurance | (107) | (106) |
Inter-segment elimination | Growth markets and other | ||
Analysis of operating segments | ||
Total revenue | (1) | |
Inter-segment elimination | Eastspring | ||
Analysis of operating segments | ||
Total revenue | (106) | $ (106) |
Unallocated to a segment (central operations) | ||
Analysis of operating segments | ||
Interest income | 3 | |
Dividend and other investment income | 19 | |
Investment (depreciation) appreciation | 28 | |
Total revenue, net of reinsurance | $ 50 |
Analysis of performance by se_6
Analysis of performance by segment - Profit after tax (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Additional analysis | ||
Profit after tax from continuing operations | $ 106 | $ 1,070 |
Short-term fluctuations in investment returns | (1,263) | (186) |
Loss attaching to corporate transactions | 62 | (56) |
Income tax expense | (68) | (431) |
Operating segments | ||
Additional analysis | ||
Profit after tax from continuing operations | 406 | 1,521 |
Operating segments | CPL | ||
Additional analysis | ||
Profit after tax from continuing operations | (28) | 148 |
Operating segments | Hong Kong | ||
Additional analysis | ||
Profit after tax from continuing operations | (613) | 441 |
Operating segments | Indonesia | ||
Additional analysis | ||
Profit after tax from continuing operations | 131 | 179 |
Operating segments | Malaysia | ||
Additional analysis | ||
Profit after tax from continuing operations | 119 | 135 |
Operating segments | Singapore | ||
Additional analysis | ||
Profit after tax from continuing operations | 63 | 141 |
Operating segments | Growth markets and other | ||
Additional analysis | ||
Profit after tax from continuing operations | 617 | 330 |
Operating segments | Eastspring | ||
Additional analysis | ||
Profit after tax from continuing operations | 117 | 147 |
Unallocated to a segment (central operations) | ||
Additional analysis | ||
Profit after tax from continuing operations | (300) | (451) |
Restructuring and IFRS 17 implementation costs | (154) | (77) |
Short-term fluctuations in investment returns | 7 | (4) |
Loss attaching to corporate transactions | 62 | (56) |
Income tax expense | (1) | 7 |
Head office function | ||
Additional analysis | ||
Other income and expenditure | $ (214) | $ (321) |
Acquisition costs and other e_3
Acquisition costs and other expenditure (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Acquisition costs and other expenditure | ||
Acquisition costs incurred for insurance policies | $ (1,120) | $ (1,026) |
Acquisition costs deferred | 426 | 373 |
Amortisation of acquisition costs | (249) | (186) |
Administration costs and other expenditure (net of other reinsurance commission) | (1,572) | (1,542) |
Movements in amounts attributable to external unit holders of consolidated investment funds | 883 | (21) |
Total acquisition costs and other expenditure from continuing operations | (1,632) | (2,402) |
Depreciation of property, plant and equipment | (71) | (85) |
Depreciation charge from the right-of-use assets | (53) | (62) |
Interest expense on lease liabilities | $ (5) | $ (6) |
Tax charge - Total tax charge b
Tax charge - Total tax charge by nature (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | $ (194) | $ (193) |
Tax charge attributable to policyholders: | ||
Total tax credit (charge) attributable to policyholders | 126 | (238) |
Total tax charge from continuing operations | (68) | (431) |
Current tax | (255) | (189) |
Deferred tax | 187 | (242) |
Operating segments | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (193) | (200) |
Operating segments | Hong Kong | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (29) | (16) |
Tax charge attributable to policyholders: | ||
Total tax credit (charge) attributable to policyholders | (30) | (40) |
Operating segments | Indonesia | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (38) | (45) |
Tax charge attributable to policyholders: | ||
Total tax credit (charge) attributable to policyholders | 5 | (2) |
Operating segments | Malaysia | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (35) | (28) |
Tax charge attributable to policyholders: | ||
Total tax credit (charge) attributable to policyholders | (4) | (2) |
Operating segments | Singapore | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (3) | (23) |
Tax charge attributable to policyholders: | ||
Total tax credit (charge) attributable to policyholders | 155 | (194) |
Operating segments | Growth markets and other | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (74) | (73) |
Operating segments | Eastspring | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (14) | (15) |
Unallocated to a segment (central operations) | ||
Tax charge attributable to shareholders: | ||
Total tax charge attributable to shareholders | (1) | 7 |
Tax charge attributable to policyholders: | ||
Total tax charge from continuing operations | $ (1) | $ 7 |
Tax charge - Reconciliation of
Tax charge - Reconciliation of shareholder effective tax rate (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of effective tax rate | ||
Adjusted operating profit | $ 1,661 | $ 1,571 |
Non-operating (loss) profit | (1,361) | (308) |
Profit before tax | 300 | 1,263 |
Tax charge at the expected rate | $ (65) | $ (259) |
Tax charge at the expected rate, percentage impact on ETR | 22% | 21% |
Effects of recurring tax reconciliation items: | ||
Income not taxable or taxable at concessionary rates | $ 47 | $ 33 |
Income not taxable or taxable at concessionary rates, percentage impact on ETR | (16.00%) | (3.00%) |
Deductions not allowable for tax purposes | $ (135) | $ (34) |
Deductions not allowable for tax purposes, percentage impact on ETR | 45% | 3% |
Items related to taxation of life insurance businesses | $ 49 | $ 71 |
Items related to taxation of life insurance businesses, percentage impact on ETR | (16.00%) | (6.00%) |
Deferred tax adjustments, including unrecognised tax losses | $ (48) | $ (70) |
Deferred tax adjustments including unrecognised tax losses, percentage impact on ETR | 16% | 5% |
Effect of results of joint ventures and associates | $ 2 | $ 37 |
Effect of results of joint ventures and associates, percentage impact on ETR | (1.00%) | (3.00%) |
Irrecoverable withholding taxes | $ (30) | $ (35) |
Irrecoverable withholding taxes, percentage impact on ETR | 10% | 3% |
Other | $ (12) | $ 2 |
Other, percentage impact on ETR | 4% | 0% |
Total effects of recurring tax reconciliation items | $ (127) | $ 4 |
Total tax rate, Effects of recurring tax reconciliation items, percentage impact on ETR | 42% | (1.00%) |
Effects of non-recurring tax reconciliation items: | ||
Adjustments to tax charge in relation to prior years | $ (1) | $ 6 |
Adjustments to tax charge in relation to prior years, percentage impact on ETR | 1% | 0% |
Movements in provisions for open tax matters | $ (1) | $ 59 |
Movements in provisions for open tax matters, percentage impact on ETR | 0% | (5.00%) |
Impact of changes in local statutory tax rates | $ 8 | |
Impact of changes in local statutory tax rates, percentage impact on ETR | 0% | (1.00%) |
Adjustments in relation to business disposals transactions | $ (11) | |
Adjustments in relation to business disposals, percentage impact on ETR | 0% | 1% |
Total effects of non-recurring tax reconciliation items | $ (2) | $ 62 |
Total tax rate, Effects of non-recurring tax reconciliation items, percentage impact on ETR | 1% | (5.00%) |
Total tax charge attributable to shareholders | $ (194) | $ (193) |
Total actual tax charge (credit), attributable to shareholders, percentage impact on ETR | 65% | 15% |
Analysed into: | ||
Tax charge on adjusted operating profit | $ (314) | $ (222) |
Tax credit on non-operating result | $ 120 | $ 29 |
Actual tax rate on: | ||
Adjusted operating profit (loss), Including non-recurring tax reconciling items (as a percent) | 19% | 14% |
Adjusted operating profit (loss), excluding non-recurring tax reconciling items (as a percent) | 19% | 19% |
Total profit (loss) (as a percent) | 65% | 15% |
Hong Kong | ||
Notes | ||
Applicable tax rate | 5% |
Tax charge - Provision for open
Tax charge - Provision for open tax matters (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Movements in provisions for open tax matters | |
Provision for open tax matters at beginning of period | $ 42 |
Movements in the current year included in tax charge attributable to shareholders | 1 |
Provision for open tax matters at end of period | $ 43 |
Tax charge - 2022 and 2021 actu
Tax charge - 2022 and 2021 actual tax rate of relevant business operations (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Tax charge | ||
Tax rate on adjusted operating profit | 19% | 14% |
Tax rate on profit before tax | 65% | 15% |
Hong Kong | ||
Tax charge | ||
Tax rate on adjusted operating profit | 6% | 4% |
Tax rate on profit before tax | (5.00%) | 4% |
Indonesia | ||
Tax charge | ||
Tax rate on adjusted operating profit | 22% | 20% |
Tax rate on profit before tax | 22% | 20% |
Malaysia | ||
Tax charge | ||
Tax rate on adjusted operating profit | 23% | 18% |
Tax rate on profit before tax | 23% | 17% |
Singapore | ||
Tax charge | ||
Tax rate on adjusted operating profit | 14% | 16% |
Tax rate on profit before tax | 5% | 14% |
Growth markets and other | ||
Tax charge | ||
Tax rate on adjusted operating profit | 25% | 14% |
Tax rate on profit before tax | 11% | 18% |
Eastspring | ||
Tax charge | ||
Tax rate on adjusted operating profit | 11% | 9% |
Tax rate on profit before tax | 11% | 9% |
Other operations | ||
Tax charge | ||
Tax rate on adjusted operating profit | 0% | 2% |
Tax rate on profit before tax | 0% | 2% |
Earnings per share - Calculatio
Earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Before tax | ||
Based on profit from continuing operations | $ 300 | $ 1,263 |
Short-term fluctuations in investment returns on shareholder-backed business | 1,383 | 212 |
Amortisation of acquisition accounting adjustments | 5 | 2 |
Loss (gain) attaching to corporate transactions | (27) | 94 |
Adjusted operating profit | 1,661 | 1,571 |
Tax | ||
Based on profit from continuing operations | (194) | (193) |
Short-term fluctuations in investment returns on shareholder-backed business | (118) | (26) |
Loss (gain) attaching to corporate transactions | (2) | (3) |
Based on adjusted operating profit | (314) | (222) |
Non-controlling interests | ||
Based on profit from continuing operations | (2) | (7) |
Short-term fluctuations in investment returns on shareholder-backed business | (2) | |
Based on adjusted operating profit | (4) | (7) |
Net of tax and non-controlling interests | ||
Profit (loss) attributable to equity holders of the company | 104 | (4,010) |
Loss from discontinued operations | 5,073 | |
Profit from continuing operations | 104 | 1,063 |
Short-term fluctuations in investment returns on shareholder-backed business | 1,263 | 186 |
Amortisation of acquisition accounting adjustments | 5 | 2 |
Loss (gain) attaching to corporate transactions | (29) | 91 |
Based on adjusted operating profit | $ 1,343 | $ 1,342 |
Basic | ||
Profit/loss (in USD per share) | $ 0.038 | $ (1.542) |
Loss from discontinued operations (in USD per share) | 1.951 | |
Profit from continuing operations (in USD per share) | 0.038 | 0.409 |
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.462 | 0.072 |
Amortisation of acquisition accounting adjustments (in USD per share) | 0.002 | 0.001 |
Loss (gain) attaching to corporate transactions | (0.010) | 0.034 |
Adjusted operating profit (in USD per share) | 0.492 | 0.516 |
Diluted | ||
Profit/loss (in USD per share) | 0.038 | (1.542) |
Loss from discontinued operations (in USD per share) | 1.951 | |
Profit from continuing operations (in USD per share) | 0.038 | 0.409 |
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.462 | 0.072 |
Amortisation of acquisition accounting adjustments (in USD per share) | 0.002 | 0.001 |
Loss (gain) attaching to corporate transactions | (0.010) | 0.034 |
Adjusted operating profit (in USD per share) | $ 0.492 | $ 0.516 |
Earnings per share - Weighted a
Earnings per share - Weighted average shares (Details) shares in Millions, Options in Millions | 6 Months Ended | |
Jun. 30, 2022 shares | Jun. 30, 2021 Options shares | |
Weighted average number of shares for calculating earnings per share | ||
Weighted average number of shares for calculation of basic earnings per share | 2,736 | 2,601 |
Shares under option at end of year | Options | 2 | |
Shares that would have been issued at fair value on assumed option price at end of year | (2) | |
Weighted average number of shares for calculation of diluted earnings per share | 2,736 | 2,601 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 13, 2021 | |
Dividends relating to reporting period: | |||
First interim ordinary dividend | $ 0.0574 | $ 0.0537 | |
First interim ordinary dividend | $ 158 | $ 140 | |
Dividends paid in reporting period: | |||
Second interim ordinary dividend for prior year | $ 0.1186 | $ 0.1073 | |
Second interim ordinary dividend for prior year | $ 320 | $ 283 | |
Discontinued US operations | |||
Dividends paid in reporting period: | |||
Dividend in specie | $ 1,735 |
Group assets and liabilities _3
Group assets and liabilities by business types (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Analysis of operating segments | |||||
Sovereign debt | $ 40,394 | $ 50,811 | |||
Other government bonds | 3,923 | 3,875 | |||
Corporate bonds | 34,494 | 44,157 | |||
Asset-backed securities | 308 | 251 | |||
Total debt securities | [1] | 79,119 | 99,094 | ||
Loans | 2,429 | 2,562 | |||
Equity securities and holdings in collective investment schemes | [1] | 57,497 | 61,601 | ||
Other financial investments | 4,944 | 5,222 | |||
Total financial investments | 143,989 | 168,479 | |||
Assets | |||||
Investment properties | 35 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 2,010 | 2,183 | |||
Cash and cash equivalents | 6,415 | 7,170 | $ 6,295 | ||
Reinsurers' share of insurance contract liabilities | 2,750 | 9,753 | |||
Other assets | 11,689 | 11,479 | |||
Total assets | 166,888 | 199,102 | |||
Shareholders' equity | 16,109 | 17,088 | |||
Non-controlling interests | 163 | 176 | |||
Total equity | 16,272 | 17,264 | 16,223 | $ 22,119 | |
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 128,097 | 157,299 | |||
Core structural borrowings | 4,266 | 6,127 | |||
Operational borrowings | 854 | 861 | |||
Other liabilities | 17,399 | 17,551 | |||
Total liabilities | 150,616 | 181,838 | |||
Total equity and liabilities | 166,888 | 199,102 | |||
Indonesia | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,564 | 1,632 | |||
Singapore | |||||
Analysis of operating segments | |||||
Sovereign debt | 4,522 | 5,428 | |||
Thailand | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,222 | 1,580 | |||
UK | |||||
Analysis of operating segments | |||||
Sovereign debt | 5 | 233 | |||
US | |||||
Analysis of operating segments | |||||
Sovereign debt | 24,245 | 32,124 | |||
Vietnam | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,826 | 3,042 | |||
Other (predominantly Asia) | |||||
Analysis of operating segments | |||||
Sovereign debt | 6,010 | 6,772 | |||
AAA | |||||
Analysis of operating segments | |||||
Other government bonds | 1,569 | 1,804 | |||
Corporate bonds | 1,618 | 1,869 | |||
Asset-backed securities | 235 | 168 | |||
AA+ to AA- | |||||
Analysis of operating segments | |||||
Other government bonds | 141 | 59 | |||
Corporate bonds | 3,847 | 4,420 | |||
Asset-backed securities | 11 | 11 | |||
A+ to A- | |||||
Analysis of operating segments | |||||
Other government bonds | 1,139 | 1,090 | |||
Corporate bonds | 11,678 | 15,015 | |||
Asset-backed securities | 36 | 43 | |||
BBB+ to BBB- | |||||
Analysis of operating segments | |||||
Other government bonds | 396 | 253 | |||
Corporate bonds | 13,025 | 16,339 | |||
Asset-backed securities | 22 | 24 | |||
Below BBB- and unrated | |||||
Analysis of operating segments | |||||
Other government bonds | 678 | 669 | |||
Corporate bonds | 4,326 | 6,514 | |||
Asset-backed securities | 4 | 5 | |||
Unrated | |||||
Analysis of operating segments | |||||
Securities excluding sovereign debt | 1,056 | 1,130 | $ 986 | ||
Mortgage loans | |||||
Analysis of operating segments | |||||
Loans | 141 | 150 | |||
Policy loans | |||||
Analysis of operating segments | |||||
Loans | 1,770 | 1,733 | |||
Other loans | |||||
Analysis of operating segments | |||||
Loans | 518 | 679 | |||
Direct equities | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 25,122 | 26,155 | |||
Collective investment schemes | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 32,375 | 35,446 | |||
Insurance operations | |||||
Assets | |||||
Shareholders' equity | 13,308 | 14,289 | |||
Operating segments | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 40,394 | 50,585 | |||
Other government bonds | 3,923 | 3,875 | |||
Corporate bonds | 34,494 | 44,157 | |||
Asset-backed securities | 308 | 251 | |||
Total debt securities | 79,119 | 98,868 | |||
Loans | 2,429 | 2,562 | |||
Equity securities and holdings in collective investment schemes | 57,170 | 60,916 | |||
Other financial investments | 4,064 | 4,134 | |||
Total financial investments | 142,782 | 166,480 | |||
Assets | |||||
Investment properties | 35 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 2,010 | 2,183 | |||
Cash and cash equivalents | 3,679 | 3,441 | |||
Reinsurers' share of insurance contract liabilities | 2,750 | 9,753 | |||
Other assets | 11,680 | 11,249 | |||
Total assets | 162,936 | 193,144 | |||
Shareholders' equity | 14,351 | 15,409 | |||
Non-controlling interests | 163 | 176 | |||
Total equity | 14,514 | 15,585 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 128,097 | 157,299 | |||
Operational borrowings | 232 | 266 | |||
Other liabilities | 20,093 | 19,994 | |||
Total liabilities | 148,422 | 177,559 | |||
Total equity and liabilities | 162,936 | 193,144 | |||
Operating segments | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,564 | 1,632 | |||
Operating segments | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 4,522 | 5,428 | |||
Operating segments | Thailand | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,222 | 1,580 | |||
Operating segments | UK | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 5 | 7 | |||
Operating segments | US | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 24,245 | 32,124 | |||
Operating segments | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,826 | 3,042 | |||
Operating segments | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 6,010 | 6,772 | |||
Operating segments | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,569 | 1,804 | |||
Corporate bonds | 1,618 | 1,869 | |||
Asset-backed securities | 235 | 168 | |||
Operating segments | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 141 | 59 | |||
Corporate bonds | 3,847 | 4,420 | |||
Asset-backed securities | 11 | 11 | |||
Operating segments | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,139 | 1,090 | |||
Corporate bonds | 11,678 | 15,015 | |||
Asset-backed securities | 36 | 43 | |||
Operating segments | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 396 | 253 | |||
Corporate bonds | 13,025 | 16,339 | |||
Asset-backed securities | 22 | 24 | |||
Operating segments | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 678 | 669 | |||
Corporate bonds | 4,326 | 6,514 | |||
Asset-backed securities | 4 | 5 | |||
Operating segments | Mortgage loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 141 | 150 | |||
Operating segments | Policy loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 1,770 | 1,733 | |||
Operating segments | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 518 | 679 | |||
Operating segments | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 24,797 | 25,472 | |||
Operating segments | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 32,373 | 35,444 | |||
Operations within segments | Insurance operations | With-profits business | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 26,573 | 34,680 | |||
Other government bonds | 2,741 | 2,509 | |||
Corporate bonds | 20,129 | 26,003 | |||
Asset-backed securities | 179 | 137 | |||
Total debt securities | 49,622 | 63,329 | |||
Loans | 1,901 | 2,033 | |||
Equity securities and holdings in collective investment schemes | 33,146 | 34,240 | |||
Other financial investments | 1,164 | 1,561 | |||
Total financial investments | 85,833 | 101,163 | |||
Assets | |||||
Cash and cash equivalents | 785 | 905 | |||
Reinsurers' share of insurance contract liabilities | 2 | 225 | |||
Other assets | 1,557 | 1,184 | |||
Total assets | 88,177 | 103,477 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 78,981 | 94,002 | |||
Operational borrowings | 128 | 142 | |||
Other liabilities | 9,068 | 9,333 | |||
Total liabilities | 88,177 | 103,477 | |||
Total equity and liabilities | 88,177 | 103,477 | |||
Operations within segments | Insurance operations | With-profits business | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 496 | 414 | |||
Operations within segments | Insurance operations | With-profits business | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3,176 | 3,684 | |||
Operations within segments | Insurance operations | With-profits business | US | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 20,961 | 28,552 | |||
Operations within segments | Insurance operations | With-profits business | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,940 | 2,030 | |||
Operations within segments | Insurance operations | With-profits business | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,361 | 1,472 | |||
Corporate bonds | 1,055 | 1,222 | |||
Asset-backed securities | 135 | 88 | |||
Operations within segments | Insurance operations | With-profits business | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 101 | 45 | |||
Corporate bonds | 1,890 | 2,203 | |||
Asset-backed securities | 6 | 6 | |||
Operations within segments | Insurance operations | With-profits business | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 757 | 667 | |||
Corporate bonds | 7,020 | 9,046 | |||
Asset-backed securities | 22 | 26 | |||
Operations within segments | Insurance operations | With-profits business | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 288 | 121 | |||
Corporate bonds | 7,657 | 9,523 | |||
Asset-backed securities | 14 | 15 | |||
Operations within segments | Insurance operations | With-profits business | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 234 | 204 | |||
Corporate bonds | 2,507 | 4,009 | |||
Asset-backed securities | 2 | 2 | |||
Operations within segments | Insurance operations | With-profits business | Policy loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 1,392 | 1,365 | |||
Operations within segments | Insurance operations | With-profits business | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 509 | 668 | |||
Operations within segments | Insurance operations | With-profits business | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 11,344 | 10,290 | |||
Operations within segments | Insurance operations | With-profits business | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 21,802 | 23,950 | |||
Operations within segments | Insurance operations | Unit-linked | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,888 | 1,942 | |||
Other government bonds | 279 | 238 | |||
Corporate bonds | 2,906 | 3,659 | |||
Asset-backed securities | 7 | 9 | |||
Total debt securities | 5,080 | 5,848 | |||
Equity securities and holdings in collective investment schemes | 18,206 | 20,516 | |||
Other financial investments | 377 | 149 | |||
Total financial investments | 23,663 | 26,513 | |||
Assets | |||||
Cash and cash equivalents | 768 | 911 | |||
Other assets | 172 | 166 | |||
Total assets | 24,603 | 27,590 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 23,037 | 25,651 | |||
Operational borrowings | 3 | ||||
Other liabilities | 1,563 | 1,939 | |||
Total liabilities | 24,603 | 27,590 | |||
Total equity and liabilities | 24,603 | 27,590 | |||
Operations within segments | Insurance operations | Unit-linked | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 614 | 598 | |||
Operations within segments | Insurance operations | Unit-linked | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 525 | 550 | |||
Operations within segments | Insurance operations | Unit-linked | UK | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 5 | 7 | |||
Operations within segments | Insurance operations | Unit-linked | US | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 22 | 47 | |||
Operations within segments | Insurance operations | Unit-linked | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 13 | 20 | |||
Operations within segments | Insurance operations | Unit-linked | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 709 | 720 | |||
Operations within segments | Insurance operations | Unit-linked | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 77 | 86 | |||
Corporate bonds | 171 | 236 | |||
Asset-backed securities | 5 | 6 | |||
Operations within segments | Insurance operations | Unit-linked | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 13 | 2 | |||
Corporate bonds | 363 | 359 | |||
Asset-backed securities | 1 | 1 | |||
Operations within segments | Insurance operations | Unit-linked | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 125 | 119 | |||
Corporate bonds | 529 | 675 | |||
Operations within segments | Insurance operations | Unit-linked | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 44 | 16 | |||
Corporate bonds | 1,419 | 1,711 | |||
Operations within segments | Insurance operations | Unit-linked | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 20 | 15 | |||
Corporate bonds | 424 | 678 | |||
Asset-backed securities | 1 | 2 | |||
Operations within segments | Insurance operations | Unit-linked | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 11,305 | 12,812 | |||
Operations within segments | Insurance operations | Unit-linked | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 6,901 | 7,704 | |||
Operations within segments | Insurance operations | Other business | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 11,843 | 13,802 | |||
Other government bonds | 903 | 1,128 | |||
Corporate bonds | 11,458 | 14,495 | |||
Asset-backed securities | 122 | 105 | |||
Total debt securities | 24,326 | 29,530 | |||
Loans | 528 | 529 | |||
Equity securities and holdings in collective investment schemes | 5,756 | 6,073 | |||
Other financial investments | 2,427 | 2,318 | |||
Total financial investments | 33,037 | 38,450 | |||
Assets | |||||
Investment properties | 35 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 1,715 | 1,878 | |||
Cash and cash equivalents | 1,977 | 1,444 | |||
Reinsurers' share of insurance contract liabilities | 2,748 | 9,528 | |||
Other assets | 9,298 | 9,191 | |||
Total assets | 48,810 | 60,529 | |||
Shareholders' equity | 13,308 | 14,289 | |||
Non-controlling interests | 42 | 45 | |||
Total equity | 13,350 | 14,334 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 26,079 | 37,646 | |||
Operational borrowings | 89 | 106 | |||
Other liabilities | 9,292 | 8,443 | |||
Total liabilities | 35,460 | 46,195 | |||
Total equity and liabilities | 48,810 | 60,529 | |||
Operations within segments | Insurance operations | Other business | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 445 | 609 | |||
Operations within segments | Insurance operations | Other business | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 767 | 1,068 | |||
Operations within segments | Insurance operations | Other business | Thailand | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,222 | 1,577 | |||
Operations within segments | Insurance operations | Other business | US | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3,262 | 3,525 | |||
Operations within segments | Insurance operations | Other business | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,813 | 3,022 | |||
Operations within segments | Insurance operations | Other business | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3,334 | 4,001 | |||
Operations within segments | Insurance operations | Other business | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 131 | 246 | |||
Corporate bonds | 392 | 411 | |||
Asset-backed securities | 95 | 74 | |||
Operations within segments | Insurance operations | Other business | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 27 | 12 | |||
Corporate bonds | 1,594 | 1,858 | |||
Asset-backed securities | 4 | 4 | |||
Operations within segments | Insurance operations | Other business | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 257 | 304 | |||
Corporate bonds | 4,129 | 5,294 | |||
Asset-backed securities | 14 | 17 | |||
Operations within segments | Insurance operations | Other business | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 64 | 116 | |||
Corporate bonds | 3,948 | 5,105 | |||
Asset-backed securities | 8 | 9 | |||
Operations within segments | Insurance operations | Other business | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 424 | 450 | |||
Corporate bonds | 1,395 | 1,827 | |||
Asset-backed securities | 1 | 1 | |||
Operations within segments | Insurance operations | Other business | Mortgage loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 141 | 150 | |||
Operations within segments | Insurance operations | Other business | Policy loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 378 | 368 | |||
Operations within segments | Insurance operations | Other business | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 9 | 11 | |||
Operations within segments | Insurance operations | Other business | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 2,088 | 2,286 | |||
Operations within segments | Insurance operations | Other business | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 3,668 | 3,787 | |||
Operations within segments | Eastspring | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 90 | 161 | |||
Corporate bonds | 1 | ||||
Total debt securities | 91 | 161 | |||
Equity securities and holdings in collective investment schemes | 62 | 87 | |||
Other financial investments | 96 | 106 | |||
Total financial investments | 249 | 354 | |||
Assets | |||||
Investments in joint ventures and associates accounted for using the equity method | 295 | 305 | |||
Cash and cash equivalents | 149 | 181 | |||
Other assets | 709 | 759 | |||
Total assets | 1,402 | 1,599 | |||
Shareholders' equity | 1,043 | 1,120 | |||
Non-controlling interests | 121 | 131 | |||
Total equity | 1,164 | 1,251 | |||
Liabilities | |||||
Operational borrowings | 12 | 18 | |||
Other liabilities | 226 | 330 | |||
Total liabilities | 238 | 348 | |||
Total equity and liabilities | 1,402 | 1,599 | |||
Operations within segments | Eastspring | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 9 | 11 | |||
Operations within segments | Eastspring | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 54 | 126 | |||
Operations within segments | Eastspring | Thailand | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3 | ||||
Operations within segments | Eastspring | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 27 | 21 | |||
Operations within segments | Eastspring | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Corporate bonds | 1 | ||||
Operations within segments | Eastspring | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 60 | 84 | |||
Operations within segments | Eastspring | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 2 | 3 | |||
Elimination of intra-segment amounts | Asia and Africa | |||||
Assets | |||||
Other assets | (56) | (51) | |||
Total assets | (56) | (51) | |||
Liabilities | |||||
Other liabilities | (56) | (51) | |||
Total liabilities | (56) | (51) | |||
Total equity and liabilities | (56) | (51) | |||
Unallocated to a segment (central operations) | |||||
Analysis of operating segments | |||||
Sovereign debt | 226 | ||||
Total debt securities | 226 | ||||
Equity securities and holdings in collective investment schemes | 327 | 685 | |||
Other financial investments | 880 | 1,088 | |||
Total financial investments | 1,207 | 1,999 | |||
Assets | |||||
Cash and cash equivalents | 2,736 | 3,729 | |||
Other assets | 3,419 | 3,608 | |||
Total assets | 7,362 | 9,336 | |||
Shareholders' equity | 1,758 | 1,679 | |||
Total equity | 1,758 | 1,679 | |||
Liabilities | |||||
Core structural borrowings | 4,266 | 6,127 | |||
Operational borrowings | 622 | 595 | |||
Other liabilities | 716 | 935 | |||
Total liabilities | 5,604 | 7,657 | |||
Total equity and liabilities | 7,362 | 9,336 | |||
Unallocated to a segment (central operations) | UK | |||||
Analysis of operating segments | |||||
Sovereign debt | 226 | ||||
Unallocated to a segment (central operations) | Direct equities | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 325 | 683 | |||
Unallocated to a segment (central operations) | Collective investment schemes | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 2 | 2 | |||
Inter-segment elimination | |||||
Assets | |||||
Other assets | (3,410) | (3,378) | |||
Total assets | (3,410) | (3,378) | |||
Liabilities | |||||
Other liabilities | (3,410) | (3,378) | |||
Total liabilities | (3,410) | (3,378) | |||
Total equity and liabilities | $ (3,410) | $ (3,378) | |||
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 30 June 2022 are $1,384 million of lent securities and assets subject to repurchase agreements (31 December 2021: $854 million). |
Group assets and liabilities _4
Group assets and liabilities by business types - debt securities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Financial investments | |||
Debt securities | [1] | $ 79,119 | $ 99,094 |
Consolidated investment funds | Operating segments | |||
Financial investments | |||
Debt securities | $ 12,090 | $ 15,076 | |
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 30 June 2022 are $1,384 million of lent securities and assets subject to repurchase agreements (31 December 2021: $854 million). |
Group assets and liabilities _5
Group assets and liabilities by business type - Notes (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Analysis of operating segments | |||
Property, plant and equipment | $ 405 | $ 478 | |
Additions to property, plant and equipment | 26 | $ 24 | |
Additions to right-of-use assets | 12 | $ 5 | |
Premiums receivable | 718 | 912 | |
Accruals, deferred income and other creditors | 8,103 | 7,983 | |
Within one year | |||
Analysis of operating segments | |||
Premiums receivable | 688 | 872 | |
Accruals, deferred income and other creditors | $ 5,737 | $ 5,972 |
Fair value measurement - Carrie
Fair value measurement - Carried at fair value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | |||
Financial assets classified as available-for-sale | $ 325 | $ 909 | |
Jackson | |||
Financial instruments | |||
Financial assets classified as available-for-sale | 325 | 683 | |
At fair value | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 136,502 | $ 161,535 | |
Percentage of total (%) | 100% | 100% | |
Total financial instruments at fair value | $ 131,226 | $ 155,057 | |
Percentage of total (%) | 100% | 100% | |
At fair value | Loans | |||
Financial instruments | |||
Financial assets | $ 475 | $ 621 | |
At fair value | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 57,497 | 61,601 | |
At fair value | Debt securities | |||
Financial instruments | |||
Financial assets | 79,119 | 99,094 | |
At fair value | Derivative assets | |||
Financial instruments | |||
Financial assets | 182 | 481 | |
At fair value | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (771) | (262) | |
At fair value | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (5,276) | (6,478) | |
At fair value | Investment contract liabilities without discretionary participation features | |||
Financial instruments | |||
Financial liabilities | (727) | (814) | |
At fair value | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (4,549) | (5,664) | |
At fair value | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 82,890 | 98,433 | |
At fair value | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 23,289 | 26,372 | |
At fair value | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 30,323 | 36,730 | |
At fair value | Level 1 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 106,439 | $ 130,369 | |
Percentage of total (%) | 78% | 81% | |
Total financial instruments at fair value | $ 101,893 | $ 124,751 | |
Percentage of total (%) | 78% | 81% | |
At fair value | Level 1 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | $ 49,727 | $ 54,107 | |
At fair value | Level 1 | Debt securities | |||
Financial instruments | |||
Financial assets | 57,125 | 76,049 | |
At fair value | Level 1 | Derivative assets | |||
Financial instruments | |||
Financial assets | 48 | 359 | |
At fair value | Level 1 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (461) | (146) | |
At fair value | Level 1 | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (4,546) | (5,618) | |
At fair value | Level 1 | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (4,546) | (5,618) | |
At fair value | Level 1 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 66,775 | 82,489 | |
At fair value | Level 1 | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 21,201 | 24,024 | |
At fair value | Level 1 | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 18,463 | 23,856 | |
At fair value | Level 2 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 29,442 | $ 30,526 | |
Percentage of total (%) | 22% | 19% | |
Total financial instruments at fair value | $ 28,712 | $ 29,666 | |
Percentage of total (%) | 22% | 19% | |
At fair value | Level 2 | Loans | |||
Financial instruments | |||
Financial assets | $ 471 | $ 616 | |
At fair value | Level 2 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 7,193 | 6,917 | |
At fair value | Level 2 | Debt securities | |||
Financial instruments | |||
Financial assets | 21,954 | 22,987 | |
At fair value | Level 2 | Debt securities | Internal valuation | |||
Financial instruments | |||
Financial assets | 33 | 24 | |
At fair value | Level 2 | Derivative assets | |||
Financial instruments | |||
Financial assets | 134 | 122 | |
At fair value | Level 2 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (310) | (116) | |
At fair value | Level 2 | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (730) | (860) | |
At fair value | Level 2 | Investment contract liabilities without discretionary participation features | |||
Financial instruments | |||
Financial liabilities | (727) | (814) | |
At fair value | Level 2 | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (3) | (46) | |
At fair value | Level 2 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 15,612 | 15,438 | |
At fair value | Level 2 | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 2,084 | 2,343 | |
At fair value | Level 2 | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 11,746 | 12,745 | |
At fair value | Level 3 | |||
Financial instruments | |||
Financial assets | 621 | 640 | $ 484 |
Total financial investments, net of derivative liabilities | $ 621 | $ 640 | |
Percentage of total (%) | 0% | 0% | |
Total financial instruments at fair value | $ 621 | $ 640 | |
Percentage of total (%) | 0% | 0% | |
At fair value | Level 3 | Loans | |||
Financial instruments | |||
Financial assets | $ 4 | $ 5 | 6 |
At fair value | Level 3 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 577 | 577 | 445 |
Total financial instruments at fair value | 577 | 577 | |
At fair value | Level 3 | Debt securities | |||
Financial instruments | |||
Financial assets | 40 | 58 | $ 33 |
At fair value | Level 3 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 503 | 506 | |
At fair value | Level 3 | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 4 | 5 | |
At fair value | Level 3 | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 114 | 129 | |
Total financial instruments at fair value | $ 114 | $ 129 |
Fair value measurement - Valuat
Fair value measurement - Valuation approach for level 3 (Details) - At fair value - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Net financial instruments at fair value | $ 131,226 | $ 155,057 |
Level 3 | ||
Financial instruments | ||
Net financial instruments at fair value | $ 621 | $ 640 |
Percentage using valuation method | 0.50% | 0.50% |
Level 3 | With-profits and unit-linked funds | ||
Financial instruments | ||
Net financial instruments at fair value | $ 507 | $ 511 |
Level 3 | Non-linked shareholder-backed | ||
Financial instruments | ||
Net financial instruments at fair value | $ 114 | $ 129 |
Reasonably possible decrease in valuation (as a percent) | 10% | 10% |
Amount of reasonably possible decrease in valuation | $ (11) | $ (26) |
Level 3 | Non-linked shareholder-backed | External valuation | ||
Financial instruments | ||
Net financial instruments at fair value | 112 | 112 |
Level 3 | Equity-type securities | Internal valuation | ||
Financial instruments | ||
Net financial instruments at fair value | $ 1 | $ 1 |
Percentage using valuation method | 0.10% | 0.10% |
Level 3 | Equity securities and holdings in collective investment schemes | ||
Financial instruments | ||
Net financial instruments at fair value | $ 577 | $ 577 |
Level 3 | Other sundry individual financial investments | ||
Financial instruments | ||
Net financial instruments at fair value | $ 44 | $ 63 |
Fair value measurement - Transf
Fair value measurement - Transfers between levels (Details) - At fair value - Equity and debt securities $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Financial instruments | |
Transfers from level 1 to level 2 | $ 3,867 |
Transfers from level 2 to level 1 | 1,603 |
Level 2 | |
Financial instruments | |
Transfers out of level 3 | $ 15 |
Fair value measurement - Level
Fair value measurement - Level 3 financial instruments (Details) - At fair value - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | $ 621 | |
Assets at end of period | 475 | $ 621 |
Equity securities and holdings in collective investment schemes | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 61,601 | |
Assets at end of period | 57,497 | 61,601 |
Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 99,094 | |
Assets at end of period | 79,119 | 99,094 |
Level 3 | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 640 | 484 |
Total (losses) gains in income statement | (49) | 2 |
Total losses recorded in other comprehensive income | (16) | (7) |
Purchases and other additions | 61 | 143 |
Transfers (out of) into level 3 | (15) | 18 |
Assets at end of period | 621 | 640 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (26) | 2 |
Level 3 | Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 5 | 6 |
Total (losses) gains in income statement | (1) | (1) |
Assets at end of period | 4 | 5 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (1) | (1) |
Level 3 | Equity securities and holdings in collective investment schemes | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 577 | 445 |
Total (losses) gains in income statement | (47) | 6 |
Total losses recorded in other comprehensive income | (14) | (5) |
Purchases and other additions | 61 | 143 |
Transfers (out of) into level 3 | (12) | |
Assets at end of period | 577 | 577 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (24) | 6 |
Level 3 | Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of period | 58 | 33 |
Total (losses) gains in income statement | (1) | (3) |
Total losses recorded in other comprehensive income | (2) | (2) |
Transfers (out of) into level 3 | (15) | 30 |
Assets at end of period | 40 | 58 |
Net unrealised (losses) gains on financial instruments held at the end of the year | $ (1) | $ (3) |
Fair value measurement - Assets
Fair value measurement - Assets and liabilities at amortised cost and their fair value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Total net financial assets (liabilities) at amortised cost | $ (3,679) | $ (4,923) |
Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 1,954 | 1,941 |
Core structural borrowings of shareholder-financed businesses | ||
Financial instruments | ||
Financial liabilities at amortised cost | (4,266) | (6,127) |
Operational borrowings (excluding lease liabilities) | ||
Financial instruments | ||
Financial liabilities at amortised cost | (568) | (514) |
Obligations under funding, securities lending and sale and repurchase agreements | ||
Financial instruments | ||
Financial liabilities at amortised cost | (799) | (223) |
Assets and liabilities at amortised cost for which fair value is disclosed | ||
Financial instruments | ||
Total net financial assets (liabilities) at amortised cost | (3,337) | (5,150) |
Assets and liabilities at amortised cost for which fair value is disclosed | Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 2,103 | 2,152 |
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 | (4,073) | (6,565) |
Assets and liabilities at amortised cost for which fair value is disclosed | Operational borrowings (excluding lease liabilities) | ||
Financial instruments | ||
Financial liabilities at amortised cost | (568) | (514) |
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 | $ (799) | $ (223) |
Policyholder liabilities and _3
Policyholder liabilities and unallocated surplus - Movement in policyholder liabilities and unallocated surplus of with-profits funds (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Beginning Balance | $ 177,254 | $ 165,555 |
Policyholder liabilities on the consolidated statement of financial position | 151,915 | 144,733 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 5,384 | 5,217 |
Group's share of policyholder liabilities of joint ventures and associates | 19,955 | 15,605 |
New business | 4,294 | 3,079 |
In-force | 6,780 | 7,297 |
Premiums | 11,074 | 10,376 |
Surrenders | (2,277) | (2,527) |
Maturities/deaths/other claim events | (1,962) | (1,458) |
Net flows | 6,835 | 6,391 |
Shareholders' transfers post-tax | (74) | (62) |
Investment-related items and other movements | (31,209) | (1,796) |
Foreign exchange translation differences | (4,382) | (1,340) |
Ending Balance | 148,424 | 168,748 |
Policyholder liabilities on the consolidated statement of financial position | 123,529 | 144,809 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 4,568 | 6,273 |
Group's share of policyholder liabilities of joint ventures and associates | 20,327 | 17,666 |
Average policyholder liability balances | 157,863 | 161,407 |
With-profits business | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Beginning Balance | 94,002 | 86,410 |
Policyholder liabilities on the consolidated statement of financial position | 88,618 | 81,193 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 5,384 | 5,217 |
New business | 1,456 | 900 |
In-force | 2,867 | 3,617 |
Premiums | 4,323 | 4,517 |
Surrenders | (558) | (393) |
Maturities/deaths/other claim events | (993) | (852) |
Net flows | 2,772 | 3,272 |
Shareholders' transfers post-tax | (74) | (62) |
Investment-related items and other movements | (16,422) | 201 |
Foreign exchange translation differences | (1,297) | (578) |
Ending Balance | 78,981 | 89,243 |
Policyholder liabilities on the consolidated statement of financial position | 74,413 | 82,970 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 4,568 | 6,273 |
Average policyholder liability balances | $ 81,516 | $ 82,082 |
Shareholder-backed | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Percentage rate of surrender | 2.10% | 2.70% |
Unit-linked | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Beginning Balance | $ 34,756 | $ 32,506 |
Policyholder liabilities on the consolidated statement of financial position | 25,651 | 25,433 |
Group's share of policyholder liabilities of joint ventures and associates | 9,105 | 7,073 |
New business | 1,231 | 1,237 |
In-force | 1,219 | 1,211 |
Premiums | 2,450 | 2,448 |
Surrenders | (1,426) | (1,724) |
Maturities/deaths/other claim events | (127) | (101) |
Net flows | 897 | 623 |
Investment-related items and other movements | (2,396) | 997 |
Foreign exchange translation differences | (1,522) | (532) |
Ending Balance | 31,735 | 33,594 |
Policyholder liabilities on the consolidated statement of financial position | 23,037 | 25,615 |
Group's share of policyholder liabilities of joint ventures and associates | 8,698 | 7,979 |
Average policyholder liability balances | 33,245 | 33,050 |
Other business | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Beginning Balance | 48,496 | 46,639 |
Policyholder liabilities on the consolidated statement of financial position | 37,646 | 38,107 |
Group's share of policyholder liabilities of joint ventures and associates | 10,850 | 8,532 |
New business | 1,607 | 942 |
In-force | 2,694 | 2,469 |
Premiums | 4,301 | 3,411 |
Surrenders | (293) | (410) |
Maturities/deaths/other claim events | (842) | (505) |
Net flows | 3,166 | 2,496 |
Investment-related items and other movements | (12,391) | (2,994) |
Foreign exchange translation differences | (1,563) | (230) |
Ending Balance | 37,708 | 45,911 |
Policyholder liabilities on the consolidated statement of financial position | 26,079 | 36,224 |
Group's share of policyholder liabilities of joint ventures and associates | 11,629 | 9,687 |
Average policyholder liability balances | $ 43,102 | $ 46,275 |
Policyholder liabilities and _4
Policyholder liabilities and unallocated surplus - Movement in gross and reinsurers' share of policyholder liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | $ 151,915 | $ 144,733 |
Policyholder liabilities on the consolidated statement of financial position | 123,529 | 144,809 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 5,384 | 5,217 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 4,568 | 6,273 |
Claims paid | (4,406) | (4,143) |
With-profits business | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | 88,618 | 81,193 |
Policyholder liabilities on the consolidated statement of financial position | 74,413 | 82,970 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 5,384 | 5,217 |
Income and expense included in the income statement | (779) | 1,070 |
Foreign exchange translation differences | (37) | (14) |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 4,568 | 6,273 |
Contract liabilities (before reinsurers' share) | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | 151,915 | |
Reclassification of US operations as held for distribution | (296,513) | |
Income and expense included in the income statement | (25,193) | 1,354 |
Other movements | 69 | 25 |
Foreign exchange translation differences | (3,262) | (1,303) |
Policyholder liabilities on the consolidated statement of financial position | 123,529 | 144,809 |
Reinsurers' share | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | (9,753) | |
Reclassification of US operations as held for distribution | 35,232 | |
Income and expense included in the income statement | 6,942 | 1,450 |
Foreign exchange translation differences | 61 | 22 |
Policyholder liabilities on the consolidated statement of financial position | (2,750) | (9,891) |
Claim amount attributable to reinsurers | $ 202 | 269 |
Continuing and discontinued operations | With-profits business | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 5,217 | |
Continuing and discontinued operations | Contract liabilities (before reinsurers' share) | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | 441,246 | |
Continuing and discontinued operations | Reinsurers' share | ||
Insurance contract liabilities, gross and reinsurance share, and unallocated surplus of with-profits funds | ||
Policyholder liabilities on the consolidated statement of financial position | $ (46,595) |
Policyholder liabilities and _5
Policyholder liabilities and unallocated surplus - Segmental Analysis of Total Charge for Benefit and Claims and Movement in Unallocated Surplus (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Insurance contracts | ||
Claims incurred, net of reinsurance | $ (4,268) | $ (4,003) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 18,315 | (2,675) |
Movement in unallocated surplus of with-profits funds | 779 | (1,070) |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | 14,826 | (7,748) |
Hong Kong | ||
Insurance contracts | ||
Claims incurred, net of reinsurance | (894) | (818) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 13,090 | (369) |
Movement in unallocated surplus of with-profits funds | 660 | (1,121) |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | 12,856 | (2,308) |
Increase in profit loss before tax due to change in reserving basis | 945 | |
Indonesia | ||
Insurance contracts | ||
Claims incurred, net of reinsurance | (609) | (602) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 187 | 266 |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | (422) | (336) |
Malaysia | ||
Insurance contracts | ||
Claims incurred, net of reinsurance | (533) | (482) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 157 | (68) |
Movement in unallocated surplus of with-profits funds | 119 | 51 |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | (257) | (499) |
Singapore | ||
Insurance contracts | ||
Claims incurred, net of reinsurance | (1,345) | (1,346) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 2,865 | (2,197) |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | 1,520 | (3,543) |
Growth markets and other | ||
Insurance contracts | ||
Claims incurred, net of reinsurance | (887) | (755) |
(Increase) decrease in policyholder liabilities, net of reinsurance | 2,016 | (307) |
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | $ 1,129 | $ (1,062) |
Intangible assets - Goodwill re
Intangible assets - Goodwill reconciliation (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Changes in goodwill: | ||
Carrying value at beginning of period | $ 907 | $ 961 |
Exchange differences | (36) | (54) |
Carrying value at end of period | 871 | $ 907 |
Accumulated impairment | ||
Changes in goodwill: | ||
Carrying value at end of period | $ 0 |
Intangible assets - Deferred ac
Intangible assets - Deferred acquisition costs and other intangible assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred acquisition costs and other intangible assets | ||
Total of deferred acquisition costs and other intangible assets | $ 6,750 | $ 6,858 |
Shareholder-backed | ||
Deferred acquisition costs and other intangible assets | ||
DAC related to insurance and investment contracts | 2,884 | 2,815 |
Acquired in-force (PVIF) and other intangibles | 3,828 | 3,994 |
Total of deferred acquisition costs and other intangible assets | 6,712 | 6,809 |
Shareholder-backed | Distribution rights | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 3,626 | 3,782 |
Shareholder-backed | PVIF | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 22 | 28 |
Shareholder-backed | Other intangibles | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 180 | 184 |
Shareholder-backed | Insurance contracts | ||
Deferred acquisition costs and other intangible assets | ||
DAC related to insurance and investment contracts | 2,845 | 2,776 |
Shareholder-backed | Investment contracts | ||
Deferred acquisition costs and other intangible assets | ||
DAC related to insurance and investment contracts | 39 | 39 |
With-profits business | ||
Deferred acquisition costs and other intangible assets | ||
Total of deferred acquisition costs and other intangible assets | $ 38 | $ 49 |
Intangible assets - Changes in
Intangible assets - Changes in DAC and other intangibles (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | $ 6,858 | |
At end of period | 6,750 | $ 6,858 |
Software | ||
Movements in deferred acquisition costs and intangible assets | ||
Additions | 17 | |
Amortisation charge | (13) | |
Disposals | (2) | |
Foreign exchange losses | (6) | |
Acquired in-force (PVIF) and other intangibles | 110 | 114 |
Shareholder-backed | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | 6,809 | |
Removal of discontinued US operations | (13,881) | |
Additions | 497 | 1,185 |
Amortisation to the income statement | (419) | (651) |
Disposals and transfers | (3) | (7) |
Exchange differences and other movements | (172) | (112) |
At end of period | 6,712 | 6,809 |
Acquired in-force (PVIF) and other intangibles | 3,828 | 3,994 |
Shareholder-backed | Deferred acquisition costs | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | 2,815 | |
Additions | 426 | |
Amortisation to the income statement | (249) | |
Exchange differences and other movements | (108) | |
At end of period | 2,884 | 2,815 |
Shareholder-backed | Distribution rights | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | 3,782 | |
Additions | 44 | |
Amortisation to the income statement | (143) | |
Exchange differences and other movements | (57) | |
At end of period | 3,626 | 3,782 |
Shareholder-backed | Other intangibles | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | 212 | |
Additions | 27 | |
Amortisation to the income statement | (27) | |
Disposals and transfers | (3) | |
Exchange differences and other movements | (7) | |
At end of period | $ 202 | 212 |
Continuing and discontinued operations | Shareholder-backed | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of period | $ 20,275 |
Borrowings - Core Structural Bo
Borrowings - Core Structural Borrowings (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | ||||||||
Mar. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | Jun. 30, 2021 USD ($) | |
Core structural borrowings of shareholder-financed businesses | |||||||||
Borrowings | |||||||||
Borrowings | $ 4,266 | $ 6,127 | $ 6,404 | ||||||
US$1,000m 5.25% Notes | |||||||||
Borrowings | |||||||||
Borrowings | 1,000 | ||||||||
Notional amount | $ 1,000 | ||||||||
Borrowings, interest rate | 5.25% | 5.25% | 5.25% | ||||||
US$725m 4.375% Notes | |||||||||
Borrowings | |||||||||
Borrowings | $ 725 | ||||||||
Notional amount | $ 725 | ||||||||
Borrowings, interest rate | 4.375% | 4.375% | 4.375% | ||||||
US$750m 4.875% Notes | |||||||||
Borrowings | |||||||||
Borrowings | 749 | $ 748 | |||||||
Notional amount | $ 750 | $ 750 | |||||||
Borrowings, interest rate | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | |||
EUR20m Medium Term Notes 2023 | |||||||||
Borrowings | |||||||||
Borrowings | $ 21 | $ 23 | |||||||
Notional amount | € | € 20 | € 20 | |||||||
GBP435m 6.125% Notes 2031 | |||||||||
Borrowings | |||||||||
Borrowings | $ 524 | $ 584 | |||||||
Notional amount | £ | £ 435 | £ 435 | |||||||
Borrowings, interest rate | 6.125% | 6.125% | 6.125% | 6.125% | 6.125% | 6.125% | |||
US$1,000m 2.95% Notes 2033 | |||||||||
Borrowings | |||||||||
Borrowings | $ 995 | $ 995 | |||||||
Notional amount | $ 1,000 | $ 1,000 | |||||||
Borrowings, interest rate | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% | |||
Proceeds from borrowings | $ 995 | ||||||||
Senior debt: GBP300m 6.875% Bonds 2023 | |||||||||
Borrowings | |||||||||
Borrowings | $ 363 | $ 404 | |||||||
Notional amount | £ | £ 300 | £ 300 | |||||||
Borrowings, interest rate | 6.875% | 6.875% | 6.875% | 6.875% | 6.875% | 6.875% | |||
Senior debt: GBP250m 5.875% Bonds 2029 | |||||||||
Borrowings | |||||||||
Borrowings | $ 282 | $ 313 | |||||||
Notional amount | £ | £ 250 | £ 250 | |||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | |||
Senior debt: $1,000m 3.125% Notes 2030 | |||||||||
Borrowings | |||||||||
Borrowings | $ 986 | $ 985 | |||||||
Notional amount | $ 1,000 | $ 1,000 | |||||||
Borrowings, interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | |||
Senior debt; $350m 3.625% Notes 2032 | |||||||||
Borrowings | |||||||||
Borrowings | $ 346 | ||||||||
Notional amount | $ 350 | ||||||||
Borrowings, interest rate | 3.625% | 3.625% | 3.625% | ||||||
Proceeds from borrowings | $ 346 | ||||||||
$350m Loan 2024 | |||||||||
Borrowings | |||||||||
Borrowings | $ 350 | ||||||||
Notional amount | $ 350 |
Borrowings - Operational borrow
Borrowings - Operational borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Operational borrowings | ||
Borrowings | ||
Borrowings | $ 854 | $ 861 |
Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 726 | 719 |
Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | 128 | 142 |
Borrowings in respect of short-term fixed income securities programmes - commercial paper | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 544 | 500 |
Lease liabilities under IFRS 16 | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 177 | 209 |
Lease liabilities under IFRS 16 | Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | 109 | 138 |
Other borrowings | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 5 | 10 |
Other borrowings | Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | $ 19 | $ 4 |
Sensitivity analysis to key m_3
Sensitivity analysis to key market risks - Sensitivity analysis to key market risks (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Sensitivity analysis | ||
Shareholders' equity | $ 16,109 | $ 17,088 |
Insurance operations | ||
Sensitivity analysis | ||
Shareholders' equity | $ 13,308 | $ 14,289 |
Interest rate risk | ||
Sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 1% | 1% |
Net effect on shareholders' equity, increase in assumption | $ (680) | $ (796) |
Net effect on profit after tax, increase in assumption | $ (680) | $ (796) |
Reasonably possible decrease in assumption (as a percent) | 0.50% | 0.50% |
Net effect on shareholders' equity, decrease in assumption | $ 121 | $ 137 |
Net effect on profit after tax, decrease in assumption | $ 121 | $ 137 |
Floor for movements in interest rates in sensitivity analysis | 0% | 0% |
Equity/property market | ||
Sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 10% | 10% |
Net effect on shareholders' equity, increase in assumption | $ 305 | $ 372 |
Net effect on profit after tax, increase in assumption | $ 305 | $ 372 |
Reasonably possible decrease in assumption (as a percent) | 20% | 20% |
Net effect on shareholders' equity, decrease in assumption | $ (750) | $ (787) |
Net effect on profit after tax, decrease in assumption | $ (750) | $ (787) |
Sensitivity analysis to key m_4
Sensitivity analysis to key market risks - Eastspring and central operations (Details) - Jackson - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Sensitivity analysis | ||||
Economic interest | 14.30% | 18.40% | ||
Available-for-sale | ||||
Sensitivity analysis | ||||
Financial assets, fair value | $ 325 | $ 683 | $ 325 | $ 683 |
Portfolio value risk | Available-for-sale | ||||
Sensitivity analysis | ||||
Reasonably possible decrease in assumption (as a percent) | 20% | 20% | 20% | 20% |
Net effect on shareholders' equity, decrease in assumption | $ (65) | $ (137) | $ (65) | $ (137) |
Net effect on other comprehensive income, decrease in assumption | $ (65) | $ (137) |
Deferred tax assets and liabi_3
Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | $ 266 | |
Removal of discontinued US operations | $ (4,542) | |
Movement in income statement | 165 | (12) |
Other movements including foreign exchange movements | (53) | (38) |
Deferred tax assets at end of period | 378 | 266 |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (2,862) | |
Removal of discontinued US operations | 3,523 | |
Movement in income statement | 22 | (393) |
Other movements including foreign exchange movements | 141 | 83 |
Deferred tax liabilities at end of period | (2,699) | (2,862) |
Unrealised gains and losses on investments | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 3 | |
Movement in income statement | 173 | 3 |
Other movements including foreign exchange movements | (7) | |
Deferred tax assets at end of period | 169 | 3 |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (242) | |
Removal of discontinued US operations | 691 | |
Movement in income statement | 99 | 127 |
Other movements including foreign exchange movements | 6 | 3 |
Deferred tax liabilities at end of period | (137) | (242) |
Balances relating to investment and insurance contracts | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 34 | |
Movement in income statement | 1 | (16) |
Other movements including foreign exchange movements | (34) | (37) |
Deferred tax assets at end of period | 1 | 34 |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (2,125) | |
Movement in income statement | (52) | (433) |
Other movements including foreign exchange movements | 113 | 73 |
Deferred tax liabilities at end of period | (2,064) | (2,125) |
Short-term temporary differences | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 162 | |
Removal of discontinued US operations | (4,513) | |
Movement in income statement | 32 | 15 |
Other movements including foreign exchange movements | (10) | (2) |
Deferred tax assets at end of period | 184 | 162 |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (495) | |
Removal of discontinued US operations | 2,832 | |
Movement in income statement | (25) | (87) |
Other movements including foreign exchange movements | 22 | 7 |
Deferred tax liabilities at end of period | (498) | (495) |
Unused tax losses | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 67 | |
Removal of discontinued US operations | (29) | |
Movement in income statement | (41) | (14) |
Other movements including foreign exchange movements | (2) | 1 |
Deferred tax assets at end of period | $ 24 | 67 |
Continuing and discontinued operations | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 4,858 | |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (6,075) | |
Continuing and discontinued operations | Unrealised gains and losses on investments | ||
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (1,063) | |
Continuing and discontinued operations | Balances relating to investment and insurance contracts | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 87 | |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (1,765) | |
Continuing and discontinued operations | Short-term temporary differences | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | 4,662 | |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (3,247) | |
Continuing and discontinued operations | Unused tax losses | ||
Deferred tax assets in statement of financial position | ||
Deferred tax assets at beginning of period | $ 109 |
Share capital, share premium _3
Share capital, share premium and own shares - Share capital and premium (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Oct. 04, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) Options shares | Dec. 31, 2021 USD ($) shares | Jun. 30, 2022 Options £ / shares | Dec. 31, 2021 Options £ / shares | |
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 period | shares | 2,746,412,265 | 2,609,489,702 | 2,609,489,702 | |||
Number of issued shares at end of period | shares | 2,749,314,856 | 2,746,412,265 | ||||
Balance at beginning of period | $ 17,264 | $ 22,119 | $ 22,119 | |||
Shares issued | 8 | |||||
Balance at end of period | 16,272 | $ 16,223 | $ 17,264 | |||
Options outstanding under save as you earn schemes | ||||||
Number of shares under option | Options | 2,000,000 | |||||
Share offer | ||||||
Disclosure of classes of share capital | ||||||
Number of shares issued | shares | 130,780,350 | |||||
Proceeds from issuing shares | $ 2,400 | |||||
Proceeds from issuing shares utilised to redeem debt | $ 2,300 | |||||
Share capital | ||||||
Disclosure of classes of share capital | ||||||
Balance at beginning of period | 182 | $ 173 | $ 173 | |||
Balance at end of period | 182 | 173 | 182 | |||
Share capital | Share offer | ||||||
Disclosure of classes of share capital | ||||||
Shares issued | 9 | |||||
Share premium | ||||||
Disclosure of classes of share capital | ||||||
Balance at beginning of period | 5,010 | 2,637 | 2,637 | |||
Shares issued | 8 | |||||
Balance at end of period | $ 5,010 | $ 2,645 | 5,010 | |||
Share premium | Share offer | ||||||
Disclosure of classes of share capital | ||||||
Shares issued | $ 2,365 | |||||
Share-based schemes | ||||||
Disclosure of classes of share capital | ||||||
Number of shares issued | shares | 2,902,591 | 6,142,213 | ||||
Share-based schemes | Share premium | ||||||
Disclosure of classes of share capital | ||||||
Shares issued | $ 8 | |||||
SAYE options | ||||||
Options outstanding under save as you earn schemes | ||||||
Number of shares under option | Options | 1,734,638 | 2,022,535 | ||||
SAYE options | Minimum | ||||||
Options outstanding under save as you earn schemes | ||||||
Share price | £ / shares | £ 9.64 | £ 9.64 | ||||
SAYE options | Maximum | ||||||
Options outstanding under save as you earn schemes | ||||||
Share price | £ / shares | £ 14.55 | £ 14.55 |
Share capital, share premium _4
Share capital, share premium and own shares - Transactions in Prudential plc shares (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Transactions in Prudential plc shares | ||
Cost of own shares deducted from retained earnings | $ 271 | $ 267 |
Shares held in trust for employee incentive plans | ||
Transactions in Prudential plc shares | ||
Number of shares held | 12.7 | 11.7 |
Market value of shares held | $ 157 | $ 201 |
Number of shares purchased | 5.2 | 3.8 |
Cost of shares purchased | $ 69.9 | $ 81.2 |
Shares held in trust for employee incentive plans | Maximum | ||
Transactions in Prudential plc shares | ||
Number of shares held | 12.7 |
Corporate transactions - (Loss)
Corporate transactions - (Loss) gain attaching to corporate transactions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Corporate transactions | ||
Gain (loss) attaching to corporate transactions | $ 62 | $ (56) |
Loss arising on reinsurance | (35) | (38) |
Total gain (loss) attaching to corporate transactions | 27 | (94) |
Jackson | ||
Corporate transactions | ||
Gain on reduction of investments | $ 60 | 0 |
Costs associated with the separation | (28) | |
Payment for the termination of loss of office | $ (28) |
Corporate transactions - Discon
Corporate transactions - Discontinued operations (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Sep. 13, 2021 | ||
Discontinued operations | ||||||||
Financial assets available-for-sale | $ 325 | $ 909 | $ 909 | $ 325 | $ 909 | |||
Income statement | ||||||||
Total revenue, net of reinsurance | (12,995) | $ 11,692 | ||||||
Total charges, net of reinsurance | 13,153 | (10,370) | ||||||
Profit before tax | [1] | 174 | 1,501 | |||||
Loss for the year | [2] | (5,707) | ||||||
Attributable to: | ||||||||
Equity holders of the Company | (5,073) | |||||||
Non-controlling interests | (634) | |||||||
Total comprehensive income | ||||||||
Loss for the period | [2] | (5,707) | ||||||
Other comprehensive loss: | ||||||||
Total comprehensive (loss) income from discontinued operations | (6,574) | |||||||
Attributable to: | ||||||||
Equity holders of the Company | (5,844) | |||||||
Non-controlling interests | (730) | |||||||
Total comprehensive (loss) income from discontinued operations | (6,574) | |||||||
Cash flows | ||||||||
Net cash flows from discontinued operations | (460) | |||||||
Cash and cash equivalents at beginning of period | 7,170 | 8,018 | 8,018 | |||||
Cash and cash equivalents at end of period | $ 6,415 | $ 7,170 | $ 7,170 | 6,415 | 7,456 | 7,170 | ||
Jackson | ||||||||
Discontinued operations | ||||||||
Number of shares repurchased from entity | 2.2 | |||||||
Economic interest | 14.30% | 18.40% | ||||||
Voting interest | 14.30% | 18.50% | ||||||
Gain on reduction of investments | 60 | 0 | ||||||
Financial assets available-for-sale | $ 325 | $ 683 | $ 683 | $ 325 | 683 | |||
Discontinued US operations | ||||||||
Discontinued operations | ||||||||
Proportion of voting interest retained after disposal | 19.90% | |||||||
Proportion of economic interest retained after disposal | 19.70% | |||||||
Income statement | ||||||||
Total revenue, net of reinsurance | 35,379 | |||||||
Total charges, net of reinsurance | (33,209) | |||||||
Profit before tax | 2,170 | |||||||
Tax charge | (370) | |||||||
Profit after tax | 1,800 | |||||||
Remeasurement to fair value | (7,507) | |||||||
Loss for the year | (5,707) | |||||||
Attributable to: | ||||||||
Equity holders of the Company | (5,073) | |||||||
Non-controlling interests | (634) | |||||||
Total comprehensive income | ||||||||
Loss for the period | (5,707) | |||||||
Other comprehensive loss: | ||||||||
Valuation movements on available-for-sale debt securities, net of related tax and change in DAC | (867) | |||||||
Other comprehensive (loss) income for the period, net of related tax | (867) | |||||||
Total comprehensive (loss) income from discontinued operations | (6,574) | |||||||
Attributable to: | ||||||||
Equity holders of the Company | (5,844) | |||||||
Non-controlling interests | (730) | |||||||
Total comprehensive (loss) income from discontinued operations | (6,574) | |||||||
Cash flows | ||||||||
Net cash flows from operating activities | (442) | |||||||
Net cash flows from financing activities | (18) | |||||||
Net cash flows from discontinued operations | (460) | |||||||
Cash and cash equivalents at beginning of period | 1,621 | 1,621 | ||||||
Cash and cash equivalents at end of period | $ 1,161 | |||||||
Pre-demerger dividend | $ 0 | |||||||
[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 taxes 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. Discontinued operations for half year and full year 2021 related to the US operations (Jackson) that were demerged from the Group in September 2021. |