Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
IFRS Statement [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 1-15040 |
Entity Registrant Name | PRUDENTIAL PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | 13th Floor, One International Financial Centre, 1 Harbour View Street, Central |
Entity Address, City or Town | Hong Kong |
Entity Address, Country | HK |
Entity Common Stock, Shares Outstanding | 2,749,669,380 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Entity Central Index Key | 0001116578 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Amendment Flag | false |
Auditor Name | KPMG LLP |
Auditor Location | London, United Kingdom |
Auditor Firm ID | 1118 |
Business Contact | |
IFRS Statement [Line Items] | |
Entity Address, Address Line One | 1 Angel Court |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | EC2R 7AG |
Entity Address, Country | GB |
Contact Personnel Name | Rebecca Wyatt |
City Area Code | +44 20 |
Local Phone Number | 7220 7588 |
Contact Personnel Email Address | rebecca.wyatt@prudentialplc.com |
American Depositary Shares, each representing 2 Ordinary Shares, 5 pence par value each | |
IFRS Statement [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing 2 Ordinary Shares, 5 pence par value each |
Trading Symbol | PUK |
Security Exchange Name | NYSE |
Ordinary Shares, 5 pence par value each | |
IFRS Statement [Line Items] | |
Title of 12(b) Security | Ordinary Shares, 5 pence par value each |
Trading Symbol | PUK/D |
Security Exchange Name | NYSE |
3.125% Senior Notes due 2030 | |
IFRS Statement [Line Items] | |
Title of 12(b) Security | 3.125% Senior Notes due 2030 issued by Prudential Funding (Asia) plc |
Trading Symbol | PUK30 |
Security Exchange Name | NYSE |
3.625% Senior Notes due 2032 | |
IFRS Statement [Line Items] | |
Title of 12(b) Security | 3.625% Senior Notes due 2032 issued by Prudential Funding (Asia) plc |
Trading Symbol | PUK32 |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Continuing operations: | ||||
Gross premiums earned | $ 23,344 | $ 24,217 | $ 23,495 | |
Outward reinsurance premiums | (1,943) | (1,844) | (1,625) | |
Earned premiums, net of reinsurance | 21,401 | 22,373 | 21,870 | |
Investment return | (30,159) | 3,486 | 13,762 | |
Other income | 539 | 641 | 615 | |
Total revenue, net of reinsurance | (8,219) | 26,500 | 36,247 | |
Benefits and claims | 17,997 | (17,738) | (34,463) | |
Reinsurers' share of benefits and claims | (6,168) | (971) | 6,313 | |
Movement in unallocated surplus of with-profits funds | 1,868 | (202) | (438) | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | 13,697 | (18,911) | (28,588) | |
Acquisition costs and other expenditure | (3,880) | (4,560) | (4,651) | |
Finance costs: interest on core structural borrowings of shareholder-financed businesses | (200) | (328) | (316) | |
Gain (loss) attaching to corporate transactions | 55 | (35) | (30) | |
Total charges net of reinsurance | 9,672 | (23,834) | (33,585) | |
Share of profit from joint ventures and associates, net of related tax | 29 | 352 | 517 | |
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | 1,482 | 3,018 | 3,179 |
Tax charge attributable to policyholders' returns | (21) | (342) | (271) | |
Profit before tax attributable to shareholders' returns | 1,461 | 2,676 | 2,908 | |
Total tax charge attributable to shareholders' and policyholders' returns | (475) | (804) | (711) | |
Remove tax charge attributable to policyholders' returns | 21 | 342 | 271 | |
Tax charge attributable to shareholders' returns | (454) | (462) | (440) | |
Profit after tax from continuing operations | 1,007 | 2,214 | 2,468 | |
Loss after tax from discontinued US operations | [2] | (5,027) | (283) | |
Profit (loss) for the year | 1,007 | (2,813) | 2,185 | |
Attributable to: | ||||
Equity holders of the Company From continuing operations | 998 | 2,192 | 2,458 | |
Equity holders of the Company From discontinued US operations | (4,234) | (340) | ||
Profit (loss) attributable to equity holders of the company | 998 | (2,042) | 2,118 | |
Non-controlling interests from continuing operations | 9 | 22 | 10 | |
Non-controlling interests from discontinued US operations | (793) | 57 | ||
Profit (loss) attributable to non-controlling interests | 9 | (771) | 67 | |
Profit (loss) for the year | $ 1,007 | $ (2,813) | $ 2,185 | |
Basic | ||||
Based on profit from continuing operations (in USD per share) | $ 0.365 | $ 0.834 | $ 0.946 | |
Based on loss from discontinued US operations (in USD per share) | [2] | (1.611) | (0.130) | |
Total basic earnings per share (in USD per share) | 0.365 | (0.777) | 0.816 | |
Diluted | ||||
Based on profit continuing operations (in USD per share) | 0.365 | 0.834 | 0.946 | |
Based on loss from discontinued US operations (in USD per share) | [2] | (1.611) | (0.130) | |
Total diluted earnings per share (in USD per share) | $ 0.365 | $ (0.777) | $ 0.816 | |
[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 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 2021 and 2020 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Continuing operations: | |||
Profit for the year | $ 1,007 | $ 2,214 | $ 2,468 |
Other comprehensive (loss) income: | |||
Exchange movements arising during the year | (541) | (180) | 233 |
Valuation movements on retained interest in Jackson classified as available-for-sale securities: | |||
Unrealised (loss) gain arising during the year | (125) | 273 | |
Deduct net gains included in the income statement on disposal | (62) | (23) | |
Valuation movements on retained interest in Jackson classified as available-for-sale securities | (187) | 250 | |
Total items that may be reclassified subsequently to profit or loss | (728) | 70 | 233 |
Total comprehensive income (loss) from continuing operations | 279 | 2,284 | 2,701 |
Total comprehensive (loss) income from discontinued US operations | (7,068) | 9 | |
Total comprehensive income (loss) for the year | 279 | (4,784) | 2,710 |
Equity holders of the Company: | |||
From continuing operations | 280 | 2,277 | 2,697 |
From discontinued US operations | (6,283) | (40) | |
Total comprehensive (loss) income, attributable to equity holders of the Company | 280 | (4,006) | 2,657 |
Non-controlling interests: | |||
From continuing operations | (1) | 7 | 4 |
From discontinued US operations | (785) | 49 | |
Total comprehensive (loss) income, attributable to non-controlling interests | (1) | (778) | 53 |
Total comprehensive income (loss) for the year | $ 279 | $ (4,784) | $ 2,710 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Shareholders' equity | Share capital | Share premium | Retained earnings | Translation reserve | Available-for-sale securities reserves | Non-controlling interests | Total | |
Reserves | |||||||||
Profit for the year | $ 2,458 | $ 2,458 | $ 10 | $ 2,468 | |||||
Other comprehensive (loss) income | 239 | $ 239 | (6) | 233 | |||||
Total comprehensive income (loss) from continuing operations | 2,697 | 2,458 | 239 | 4 | 2,701 | ||||
Total comprehensive (loss) income from discontinued US operations | (40) | (340) | $ 300 | 49 | 9 | ||||
Total comprehensive income (loss) for the year | 2,657 | 2,118 | 239 | 300 | 53 | 2,710 | |||
Dividends | (814) | (814) | (18) | (832) | |||||
Reserve movements in respect of share-based payments | 89 | 89 | 89 | ||||||
Effect of transactions relating to non-controlling interests | (484) | (484) | 1,014 | 530 | |||||
New share capital subscribed | 13 | $ 1 | $ 12 | 13 | |||||
Movement in own shares in respect of share-based payment plans | (60) | (60) | (60) | ||||||
Net increase (decrease) in equity | 1,401 | 1 | 12 | 849 | 239 | 300 | 1,049 | 2,450 | |
Balance at beginning of year at Dec. 31, 2019 | 19,477 | 172 | 2,625 | 13,575 | 893 | 2,212 | 192 | 19,669 | |
Balance at end of year at Dec. 31, 2020 | 20,878 | 173 | 2,637 | 14,424 | 1,132 | 2,512 | 1,241 | 22,119 | |
Reserves | |||||||||
Profit for the year | 2,192 | 2,192 | 22 | 2,214 | |||||
Other comprehensive (loss) income | 85 | (165) | 250 | (15) | 70 | ||||
Total comprehensive income (loss) from continuing operations | 2,277 | 2,192 | (165) | 250 | 7 | 2,284 | |||
Total comprehensive (loss) income from discontinued US operations | (6,283) | (4,234) | 463 | (2,512) | (785) | (7,068) | |||
Total comprehensive income (loss) for the year | (4,006) | (2,042) | 298 | (2,262) | (778) | (4,784) | |||
Demerger dividend in specie of Jackson | (1,735) | (1,735) | (1,735) | ||||||
Dividends | (421) | (421) | (9) | (430) | |||||
Reserve movements in respect of share-based payments | 46 | 46 | 46 | ||||||
Effect of transactions relating to non-controlling interests | [1] | (32) | (32) | (278) | (310) | ||||
New share capital subscribed | 2,382 | 9 | 2,373 | 2,382 | |||||
Movement in own shares in respect of share-based payment plans | (24) | (24) | (24) | ||||||
Net increase (decrease) in equity | (3,790) | 9 | 2,373 | (4,208) | 298 | (2,262) | (1,065) | (4,855) | |
Balance at end of year at Dec. 31, 2021 | 17,088 | 182 | 5,010 | 10,216 | 1,430 | 250 | 176 | 17,264 | |
Reserves | |||||||||
Profit for the year | 998 | 998 | 9 | 1,007 | |||||
Other comprehensive (loss) income | (718) | (531) | (187) | (10) | (728) | ||||
Total comprehensive income (loss) from continuing operations | 279 | ||||||||
Total comprehensive income (loss) for the year | 280 | 998 | (531) | (187) | (1) | 279 | |||
Dividends | (474) | (474) | (8) | (482) | |||||
Reserve movements in respect of share-based payments | 24 | 24 | 24 | ||||||
Effect of transactions relating to non-controlling interests | 49 | 49 | 49 | ||||||
New share capital subscribed | (4) | (4) | (4) | ||||||
Movement in own shares in respect of share-based payment plans | (3) | (3) | (3) | ||||||
Net increase (decrease) in equity | (128) | (4) | 594 | (531) | (187) | (9) | (137) | ||
Balance at end of year at Dec. 31, 2022 | $ 16,960 | $ 182 | $ 5,006 | $ 10,810 | $ 899 | $ 63 | $ 167 | $ 17,127 | |
[1] The $ (278) million in 2021 related to the derecognition of Athene’s non-controlling interest upon the demerger of Jackson. |
Consolidated statement of cha_2
Consolidated statement of changes in equity (Parenthetical) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) | ||
Effect of transactions relating to non-controlling interests | $ (310) | [1] |
Non-controlling interests | ||
Effect of transactions relating to non-controlling interests | (278) | [1] |
Athene | Non-controlling interests | ||
Effect of transactions relating to non-controlling interests | $ (278) | |
[1] The $ (278) million in 2021 related to the derecognition of Athene’s non-controlling interest upon the demerger of Jackson. |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Goodwill | $ 890 | $ 907 | |
Deferred acquisition costs and other intangible assets | 7,155 | 6,858 | |
Property, plant and equipment | 419 | 478 | |
Reinsurers' share of insurance contract liabilities | 2,807 | 9,753 | |
Deferred tax assets | 310 | 266 | |
Current tax recoverable | 18 | 20 | |
Accrued investment income | 1,135 | 1,171 | |
Other debtors | 1,694 | 1,779 | |
Investment properties | 37 | 38 | |
Investments in joint ventures and associates accounted for using the equity method | 1,915 | 2,183 | |
Loans | 2,536 | 2,562 | |
Equity securities and holdings in collective investment schemes | [1] | 57,679 | 61,601 |
Debt securities | [1] | 76,989 | 99,094 |
Derivative assets | 569 | 481 | |
Deposits | 6,275 | 4,741 | |
Cash and cash equivalents | 5,514 | 7,170 | |
Total assets | 165,942 | 199,102 | |
Equity | |||
Shareholders' equity | 16,960 | 17,088 | |
Non-controlling interests | 167 | 176 | |
Total equity | 17,127 | 17,264 | |
Liabilities | |||
Insurance contract liabilities | 121,213 | 150,755 | |
Investment contract liabilities with discretionary participation features | 309 | 346 | |
Investment contract liabilities without discretionary participation features | 741 | 814 | |
Unallocated surplus of with-profits funds | 3,495 | 5,384 | |
Core structural borrowings of shareholder-financed businesses | 4,261 | 6,127 | |
Operational borrowings | 815 | 861 | |
Obligations under funding, securities lending and sale and repurchase agreements | 582 | 223 | |
Net asset value attributable to unit holders of consolidated investment funds | 4,193 | 5,664 | |
Deferred tax liabilities | 2,872 | 2,862 | |
Current tax liabilities | 208 | 185 | |
Accruals, deferred income and other creditors | 8,777 | 7,983 | |
Provisions | 348 | 372 | |
Derivative liabilities | 1,001 | 262 | |
Total liabilities | 148,815 | 181,838 | |
Total equity and liabilities | $ 165,942 | $ 199,102 | |
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2022 are $ 1,571 million of lent securities and assets subject to repurchase agreements (31 December 2021: $ 854 million). |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Statement of Financial Position | ||
Lent securities and assets subject to repurchase agreements | $ 1,571 | $ 854 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities | ||||
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 1,482 | $ 3,018 | $ 3,179 |
Adjustments to profit before tax for non-cash movements in operating assets and liabilities: | ||||
Investments | 22,374 | (14,553) | (20,978) | |
Other non-investment and non-cash assets | 6,429 | 2,658 | (7,185) | |
Policyholder liabilities (including unallocated surplus of with-profits funds) | (29,208) | 9,095 | 27,670 | |
Other liabilities (including operational borrowings) | 15 | 16 | 155 | |
Investment income and interest payments included in profit before tax | (4,037) | (3,738) | (2,931) | |
Operating cash items: | ||||
Interest receipts | 2,689 | 2,328 | 1,833 | |
Interest payments | (16) | (11) | (25) | |
Dividend receipts | 1,523 | 1,480 | 1,305 | |
Tax paid | (449) | (453) | (551) | |
Other non-cash items | 276 | 438 | 301 | |
Net cash flows from operating activities | [2] | 1,078 | 278 | 2,773 |
Cash flows from investing activities | ||||
Purchases of property, plant and equipment | (34) | (36) | (57) | |
Proceeds from disposal of property, plant and equipment | 6 | |||
Acquisition of businesses and intangibles | [3] | (298) | (773) | (1,142) |
Disposal of Jackson shares | [3] | 293 | 83 | |
Net cash flows from investing activities | (39) | (726) | (1,193) | |
Structural borrowings of shareholder-financed operations: | ||||
Issuance of debt, net of costs | [4] | 346 | 995 | 983 |
Redemption of debt | [4] | (2,075) | (1,250) | |
Interest paid | [4] | (204) | (314) | (294) |
Payment of principal portion of lease liabilities | (101) | (118) | (128) | |
Equity capital: | ||||
Issues of ordinary share capital | (4) | 2,382 | 13 | |
External dividends: | ||||
Dividends paid to equity holders of the Company | (474) | (421) | (814) | |
Dividends paid to non-controlling interests | (8) | (9) | (18) | |
Net cash flows from financing activities | (2,520) | 1,265 | (258) | |
Net (decrease) increase in cash and cash equivalents from continuing operations | (1,481) | 817 | 1,322 | |
Net decrease in cash and cash equivalents from discontinued US operations | (1,621) | (339) | ||
Cash and cash equivalents at beginning of year | 7,170 | 8,018 | 6,965 | |
Effect of exchange rate changes on cash and cash equivalents | (175) | (44) | 70 | |
Cash and cash equivalents at end of year | $ 5,514 | $ 7,170 | $ 8,018 | |
[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 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. Included in net cash flows from operating activities are dividends from joint ventures and associates of $112 million (2021: $175 million; 2020: $118 million) . Net cash flows from other investing activities include amounts paid for distribution rights and cash flows arising from the sale of subsidiaries, joint ventures and associates and investments that do not form part of the Group’s operating activities Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, non-recourse borrowings of investment subsidiaries of shareholder-financed businesses and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from operating activities. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Borrowings | ||||
Dividends from joint ventures and associates | $ 112 | $ 175 | $ 118 | |
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows: | ||||
Issuance of core structural borrowings | [1] | 346 | 995 | 983 |
Redemption of core structural borrowings | [1] | (2,075) | (1,250) | |
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 year | 6,127 | |||
Issuance of core structural borrowings | 346 | 995 | ||
Redemption of core structural borrowings | (2,075) | (1,250) | ||
Foreign exchange movement | (147) | (13) | ||
Demerger of Jackson | (250) | |||
Other movements | 10 | 12 | ||
Balance at end of year | $ 4,261 | 6,127 | ||
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 year | $ 6,633 | |||
Balance at end of year | $ 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 and accoun
Basis of preparation and accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Basis of preparation and accounting policies | |
Basis of preparation and accounting policies | A Basis of preparation and accounting policies A1 Basis of preparation and exchange rates Prudential plc (‘the Company’) together with its subsidiaries (collectively, ‘the Group’ or ‘Prudential’) provides life and health insurance and asset management products in Asia and Africa. The Group is headquartered in Hong Kong. Basis of preparation These consolidated financial statements have been prepared in accordance with IFRS Standards as issued by the IASB and in accordance with UK-adopted international accounting standards. At 31 December 2022, there were no unadopted standards effective for the year ended 31 December 2022 which had an impact on the consolidated financial statements of the Group, and there were no differences between UK-adopted international accounting standards and IFRS Standards as issued by the IASB in terms of their application to the Group. The Group accounting policies are the same as those applied for the year ended 31 December 2021 with the exception of the adoption of the new and amended IFRS Standards as described in note A2. 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 these consolidated 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 address them, as well as the results of the Group’s stress and scenario 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 these consolidated financial statements are approved. No material uncertainties that may cast significant doubt on the ability of the Company and 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 consolidated financial statements for the year ended 31 December 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: Closing rate at year end Average rate for the year-to-date USD : local currency 31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2022 31 Dec 2021 31 Dec 2020 Chinese yuan (CNY) 6.95 6.37 6.54 6.73 6.45 6.90 Hong Kong dollar (HKD) 7.81 7.80 7.75 7.83 7.77 7.76 Indian rupee (INR) 82.73 74.34 73.07 78.63 73.94 74.12 Indonesian rupiah (IDR) 15,567.50 14,252.50 14,050.00 14,852.24 14,294.88 14,541.70 Malaysian ringgit (MYR) 4.41 4.17 4.02 4.40 4.15 4.20 Singapore dollar (SGD) 1.34 1.35 1.32 1.38 1.34 1.38 Taiwan dollar (TWD) 30.74 27.67 28.10 29.81 27.93 29.44 Thai baht (THB) 34.56 33.19 30.02 35.06 32.01 31.29 UK pound sterling (GBP) 0.83 0.74 0.73 0.81 0.73 0.78 Vietnamese dong (VND) 23,575.00 22,790.00 23,082.50 23,409.87 22,934.86 23,235.84 Foreign exchange translation In order to present the consolidated financial statements in USD, the results and financial position of entities not using USD as functional currency (ie the currency of the primary economic environment in which the entity operates) must be translated into USD. All assets and liabilities of entities not operating in USD are converted at closing exchange rates while all income and expenses are converted at average exchange rates where this is a reasonable approximation of the rates prevailing on transaction dates. The impact of these foreign exchange translations into the Group’s USD presentation currency is recorded as a separate component in the Statement of comprehensive income. Upon the disposal of the entity, the related cumulative foreign exchange translation differences are recycled from other comprehensive income to the income statement as part of the gain or loss on disposal. The general principle for converting foreign currency transactions to the functional currency of an entity is to translate at the functional currency spot rate prevailing at the date of the transactions. Foreign currency monetary assets and liabilities are translated at the spot exchange rate for the functional currency at the reporting date. Changes resulting from the foreign exchange translations into the functional currency of the entity are recognised in the income statement . The consolidated financial statements do not represent Prudential’s statutory accounts for the purposes of the UK Companies Act. These financial statements are based on the prescribed formats. The Group’s external auditors have reported on the 2022, 2021 and 2020 statutory accounts. Statutory accounts for 2021 and 2020 have been delivered to the UK Registrar of Companies and those for 2022 will be delivered following the Company’s Annual General Meeting. The auditor’s reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006. A2 New accounting pronouncements in 2022 The IASB has issued the following new accounting pronouncements to be effective from 1 January 2022: – 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 consolidated financial statements. A3 Accounting policies A3.1 Critical accounting policies, estimates and judgements Note A3.1 presents the critical accounting policies, estimates and judgements applied in preparing the Group’s consolidated financial statements. Other accounting policies, where significant, are presented in the relevant individual notes. All accounting policies are applied consistently for the years presented and normally are not subject to changes unless new accounting standards, interpretations or amendments are introduced by the IASB. The preparation of these consolidated financial statements requires Prudential to make accounting estimates and judgements about the amounts of assets, liabilities, revenues and expenses, which are both recognised and unrecognised (eg contingent liabilities) in the consolidated financial statements. Prudential evaluates its critical accounting estimates, including those related to long-term business provisioning and the fair value of assets as required. The notes below set out those critical accounting policies, the application of which requires the Group to make critical estimates and judgements. Also set out are further critical accounting policies affecting the presentation of the Group’s results and other items that require the application of critical estimates and judgements. (a) Critical accounting policies with associated critical estimates and judgements Measurement of policyholder liabilities and unallocated surplus of with-profits The measurement basis of policyholder liabilities is dependent upon the classification of the contracts under IFRS 4. Impacts $146.7 billion of policyholder liabilities and unallocated surplus of with-profits funds including those held by joint venture and associates. Policyholder liabilities are estimated based on a number of actuarial assumptions (eg mortality, morbidity, policyholder behaviour and expenses). The Group applies judgement in determining the actuarial assumptions to be applied to estimate the future amounts due to or from the policyholder in the measurement of the policyholder liabilities. IFRS 4 permits the continued usage of previously applied Generally Accepted Accounting Practices (GAAP) for insurance contracts and investment contracts with discretionary participating features. A modified statutory basis of reporting was adopted by the Group on first time adoption of IFRS Standards in 2005. This was set out in the Statement of Recommended Practice issued by the Association of British Insurers (ABI SORP). The ABI SORP was withdrawn for the accounting periods beginning in or after 2015. As used in these consolidated financial statements, the term 'grandfathered' ABI SORP refers to the requirements of the pronouncements prior to its withdrawal. For investment contracts that do not contain discretionary participating features, IAS 39 is applied and, where the contract includes an investment management element, IFRS 15 ‘Revenue from Contracts with Customers’ applies. The current policies applied for the Group’s insurance businesses are noted below. Measurement of insurance contract liabilities and investment contract liabilities with discretionary participation features The policyholder liabilities for businesses of the insurance operations are generally determined in accordance with methods prescribed by local GAAP, adjusted to comply with the 'grandfathered' ABI SORP where necessary. Refinements to the local reserving methodology are generally treated as changes in estimates, dependent on their nature. The UK-style with-profits funds’ liabilities in Hong Kong are valued under the realistic basis in accordance with the requirements of ‘grandfathered’ FRS 27 ‘Life Assurance’ (issued by the UK Accounting Standards Board in 2004 and withdrawn in 2015). The realistic basis requires the value of liabilities to be calculated as the sum of a with-profits benefits reserve, future policy-related liabilities and the realistic current liabilities of the fund. In Taiwan and India, US GAAP principles are applied. Further details on how liabilities are determined for material product types are set out in note C3.4. This includes the approach to assumption setting including a margin for prudence. The sensitivity of the insurance operations to variations in key economic assumptions, as well as the insurance risks of mortality and morbidity, is discussed in note C6.1. In April 2022 Prudential Hong Kong Limited received approval from the Hong Kong IA to early adopt the new risk-based capital regime effective from 1 January 2022. The implication for IFRS reporting of the Group is as explained further in note C3.2. Measurement of unallocated surplus of with-profits funds Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities, determined in accordance with the Group's accounting policies, that have yet to be appropriated between policyholders and shareholders for the Group's with-profits funds in Hong Kong and Malaysia. The unallocated surplus is recorded wholly as a liability with no allocation to equity. The annual excess or shortfall of income over expenditure of the with-profits funds, after declaration and attribution of the cost of bonuses to policyholders and shareholders, is transferred to or from the unallocated surplus each period through a charge or credit to the income statement. 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. The balance of the unallocated surplus is determined after full provision for deferred tax on unrealised appreciation or depreciation on investments. Liability adequacy test The Group performs adequacy testing on its insurance liabilities to ensure that the carrying amounts (net of related deferred acquisition costs and, where relevant, present value of acquired in-force business) is sufficient to cover current estimates of future cash outflows of the in-force policies over the expected lives. Any deficiency is immediately charged to the income statement. The liability adequacy test is performed at the level of a portfolio of contracts that are subject to broadly similar risks and managed together as a single portfolio which may be at an entity or business unit level, depending on how the business is managed. (b) Further critical accounting policies affecting the presentation of the Group's results Presentation of results before tax attributable to shareholders Profit before tax is a significant IFRS income statement item. The Group has chosen to present a measure of profit before tax attributable to shareholders which distinguishes between tax borne by shareholders and tax attributable to policyholders to support understanding of the performance of the Group. Profit before tax attributable to shareholders is $1,461 million and compares to profit before tax of $1,482 million. The total tax charge for the Group reflects tax that, in addition to that relating to shareholders’ profit, is also attributable to policyholders through the interest in with-profits or unit-linked funds. Further detail is provided in note B3. Reported IFRS profit before the tax measure is therefore not representative of pre-tax profit attributable to shareholders. Accordingly, in order to provide a measure of pre-tax profit attributable to shareholders, the Group has chosen to adopt an income statement presentation of the tax charge and pre-tax results that distinguishes between policyholders’ and shareholders’ returns. Segmental analysis of results and earnings attributable to shareholders The Group uses adjusted operating profit as the segmental measure of its results. Total segmental adjusted operating profit is $4,106 million. The basis of calculation of adjusted operating profit is provided in note B1.2. For shareholder-backed business, with the exception of securities which are treated as available-for-sale (AFS), and assets classified as loans and receivables at amortised cost, all financial investments and investment properties are designated as assets at fair value through profit or loss. Short-term fluctuations in fair value affect the result for the year and the Group provides additional analysis of results before and after the effects of short-term fluctuations in investment returns, together with other items that are of a short-term, volatile or one-off in nature. Short-term fluctuations in investment returns on assets held by with-profits funds in Hong Kong, Malaysia and Singapore do not affect directly reported shareholder results. This is because (i) the unallocated surplus of with-profits funds is accounted for as a liability and (ii) excess or deficit of income and expenditure of the funds over the required surplus for distribution are transferred to or from policyholder liabilities (including the unallocated surplus). (c) Other items requiring application of critical estimates or judgements Carrying value of distribution rights intangible assets The Group applies judgement to assess whether factors such as the financial performance of the distribution arrangements, changes in relevant legislation and regulatory requirements indicate an impairment of intangible assets representing distribution rights. To determine the impaired value, the Group estimates the discounted future expected cash flows arising from the cash generating unit containing the distribution rights. Affects $3.6 billion of assets as shown in note C4.2. Distribution rights relate to bancassurance partnership arrangements for the distribution of products for the term of the contractual agreement with the bank partner, for which an asset is recognised based on fees paid and fees payable not subject to performance conditions. Distribution rights impairment testing is conducted when there is an indication of an impairment. To assess indicators of an impairment, the Group monitors a number of internal and external factors, including indications that the financial performance of the arrangement is likely to be worse than expected and changes in relevant legislation and regulatory requirements that could impact the Group’s ability to continue to sell new business through the bancassurance channel, and then applies judgement to assess whether these factors indicate that an impairment has occurred. If an impairment has occurred, a charge is recognised in the income statement for the difference between the carrying value and recoverable amount of the asset. The recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is calculated as the present value of future expected cash flows from the asset or the cash generating unit to which it is allocated. Deferred acquisition costs (DAC) for insurance contracts The Group estimates projected future profits/margins to assess whether adjustments to the carrying value or amortisation profile of DAC asset are necessary. Impacts $3.3 billion of DAC as shown in note C4.2. Except for acquisition costs of the UK-style with-profits funds’ contracts in Hong Kong, which are accounted for under the ‘grandfathered’ FRS 27, costs of acquiring new insurance business are accounted for in a way that is consistent with the principles of the ‘grandfathered’ ABI SORP. The Group determines qualifying costs that should be capitalised (ie those costs of acquiring new insurance contracts that meet the criteria under the Group’s accounting policy for DAC) shown by an explicit carrying value in the balance sheet. However, in some insurance operations, the deferral is implicit through the reserving basis. DAC is amortised against the profit margins within future revenues on the related insurance policies. For some business units this is approximated by amortising DAC on a straight-line basis over the expected duration of the policies. The recoverability of the DAC is measured and the DAC asset is deemed impaired if the projected margins (which are estimated based on a number of assumptions similar to those underlying policyholder liabilities) are less than the carrying value. To the extent that the future margins differ from those anticipated, an adjustment to the carrying value will be necessary either through a charge to the income statement (if the projected margins are lower than carrying value) or through a change in the amortisation profile. For those business units applying US GAAP to insurance assets and liabilities, as permitted by the ‘grandfathered’ ABI SORP, acquisition costs are deferred and amortised as per the US GAAP requirements under ASC 944 Financial Services - Insurance. Financial investments – Valuation Financial investments held at fair value represent $135.7 billion of the Group’s total assets. Financial investments held at amortised cost represent $8.4 billion of the Group’s total assets. The Group estimates the fair value of financial investments that are not actively traded using quotations from independent third parties or internally developed pricing models. The Group holds the majority of its financial investments at fair value (primarily through profit or loss). Financial investments held at amortised cost primarily comprise loans and deposits. Determination of fair value The fair values of the financial instruments for which fair valuation is required under IFRS Standards are determined by the use of quoted market 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. Further details are included in note C2.1. 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. Quoted market prices are used to value investments having quoted prices. Actively traded investments without quoted prices are valued using prices provided by third parties such as brokers or pricing services. Financial investments measured at fair value are classified into a three-level hierarchy as described in note C2.1. If the market for a financial investment of the Group is not active, the Group establishes fair value by using quotations from independent third parties, such as brokers or pricing services, or by using internally developed pricing models. Priority is given to publicly available prices from independent sources when available, but overall the source of pricing and/or the valuation technique is chosen with the objective of arriving at a fair value measurement which reflects the price at which an orderly transaction would take place between market participants on the measurement date. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these financial investments. Details of the financial investments classified as 'level 3' to which valuation techniques are applied and the sensitivity of profit before tax to a change in the valuation of these items, are presented in note C2.2. A3.2 New accounting pronouncements not yet effective The following standards, interpretations and amendments have been issued by the IASB but are not yet effective for the Group in 2022. The Group prepares consolidated financial statements in accordance with IFRS Standards as issued by the IASB and UK-adopted international accounting standards. This is not intended to be a complete list as only those standards, interpretations and amendments that could have a material impact on the Group’s consolidated financial statements are discussed. IFRS 9 ‘Financial instruments: Classification and measurement’ IFRS 9 became mandatorily effective for the annual periods beginning on or after 1 January 2018, with early application permitted and transitional rules apply. The Group met the eligibility criteria for temporary exemption under the Amendments to IFRS 4 from applying IFRS 9 and has accordingly deferred the adoption of IFRS 9 until 1 January 2023. The Group is eligible as its activities are predominantly to issue insurance contracts based on the criteria as set out in the amendments to IFRS 4. The required disclosure of the fair value of the Group’s financial assets, showing the amounts for instruments that meet the ‘Solely for Payment of Principal and Interest’ (SPPI) criteria but do not meet the definition of held for trading and are not managed and evaluated on a fair value basis separately from all other financial assets, is provided below. The Group is implementing this standard in conjunction with IFRS 17 as permitted. IFRS 9 replaces the existing IAS 39 The classification and the measurement of financial assets and liabilities IFRS 9 redefines the classification of financial assets. Based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’), financial assets are classified into one of the following categories: amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). An option is also available at initial recognition to irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. Under IAS 39, 97 per cent of the Group’s financial investments are valued at FVTPL and the vast majority of its investments will continue to be classified as such under IFRS 9. The Company expects to make an election under IFRS 9 to measure its retained interest in Jackson’s equity securities at FVOCI. Under this designation, only dividend income from this retained interest is recognised in the profit or loss of the Company. Unrealised gains and losses are recognised in other comprehensive income and there is no recycling to the profit or loss on derecognition. The existing IAS 39 amortised cost measurement for financial liabilities is largely maintained under IFRS 9. For financial liabilities designated at FVTPL IFRS 9 requires changes in fair value due to changes in the entity’s own credit risk to be recognised in other comprehensive income. The calculation of the impairment charge relevant for financial assets held at amortised cost or FVOCI A new impairment model based on an expected credit loss approach replaces the existing IAS 39 incurred loss impairment model, resulting in earlier recognition of credit losses compared to IAS 39. This aspect is the most complex area of IFRS 9 to implement and will involve significant judgements and estimation processes. The Group has assessed the scope of assets to which these requirements will apply and expects that the vast majority of the financial investments of the Group to be held at FVTPL to which these requirements will not apply. Accordingly, no significant amount of additional impairment is expected to be recognised by the Group under the expected credit loss approach as a result of the adoption of IFRS 9. The hedge accounting requirements which are more closely aligned with the risk management activities The Group has not applied hedge accounting treatment under IAS 39 and therefore, there is no impact in this area for the Group upon the adoption of IFRS 9. The parent company and a number of intermediate holding companies and non-insurance subsidiaries adopted IFRS 9 in 2018 in their individual or separate financial statements where these statements are prepared in accordance with IFRS, including the UK Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. The public availability of the financial statements for these entities varies according to the local laws and regulations of each jurisdiction. The results for these entities continue to be accounted for on an IAS 39 basis in these consolidated financial statements. The fair value of the Group’s directly held financial assets at 31 December 2022 and 2021 are shown below. Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) as defined by IFRS 9 are shown separately. This excludes financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis. Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2022 during 2022 31 Dec 2022 during 2022 $m $m $m $m Accrued investment income 1,135 — — — Other debtors 1,694 — — — Loans note 2,189 15 468 (37) Equity securities and holdings in collective investment schemes — — 57,679 (8,420) Debt securities — — 76,989 (21,803) Derivative assets, net of derivative liabilities — — (432) (4,487) Deposits 6,275 — — — Cash and cash equivalents 5,514 — — — Total financial assets, net of derivative liabilities 16,807 15 134,704 (34,747) Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2021 during 2021 31 Dec 2021 during 2021 $m $m $m $m Accrued investment income 1,171 — — — Other debtors 1,779 — — — Loans note 2,126 41 647 (1) Equity securities and holdings in collective investment schemes — — 61,601 4,061 Debt securities 226 — 98,868 (3,164) Derivative assets, net of derivative liabilities — — 219 (943) Deposits 4,741 — — — Cash and cash equivalents 7,170 — — — Total financial assets, net of derivative liabilities 17,213 41 161,335 (47) Note The loans that pass the SPPI test in the tables above are primarily carried at amortised cost under IAS 39. Further information on these loans is as provided in note C2.2. The underlying financial assets of the Group’s joint ventures and associates accounted for using the equity method are analysed below into those which meet the SPPI condition of IFRS 9, excluding any financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis, and all other financial assets. Fair value information of the financial assets held by CITIC-Prudential Life Insurance Company (CPL), the Group’s individually material joint venture, is shown in the table below. The amounts disclosed represent 100 per cent of the entity’s financial assets and not the Group’s share of those amounts and have been prepared on the same basis as the Group’s consolidated financial statements. Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during CPL (100% of the financial assets of the entity) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 176 170 — — — — Other debtors 667 620 — — — — Loans 674 656 — — — — Equity securities and holdings in collective investment schemes — — 15,698 12,882 (1,314) 254 Debt securities — — 11,478 11,976 37 184 Deposits 1,174 1,210 — — — — Cash and cash equivalents 561 422 — — — — Total financial assets 3,252 3,078 27,176 24,858 (1,277) 438 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. Fair value information for the Group’s share of financial assets of other joint ventures and associates in aggregate is set out in the table below: Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during Other JVs and associates (Prudential’s share) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 83 85 — — — — Other debtors 143 187 — — — — Loans — 26 — — — — Equity securities and holdings in collective investment schemes — — 3,657 3,859 133 680 Debt securities — — 3,476 3,674 (131) (121) Deposits 335 203 — — — — Cash and cash equivalents 380 510 — — — — Total financial assets 941 1,011 7,133 7,533 2 559 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. IFRS 17 ‘Insurance Contracts’ IFRS 17 ‘Insurance Contracts’ became effective on 1 January 2023 and replaces IFRS 4 ‘Insurance Contracts’. IFRS 4 permitted insurers to continue to use the statutory basis of accounting for insurance assets and liabilities that existed in their jurisdictions prior to January 2005. IFRS 17 replaced this with a new measurement model that significantly changes the way insurance and reinsurance contracts are accounted for, albeit the scope of IFRS 17 and IFRS 4 is very similar. Therefore, nearly all of the Group’s insurance and investment contracts with discretionary participation features accounted under IFRS 4 will be accounted for under IFRS 17. The transition date of the Group for IFRS 17 was 1 January 2022. The Group is adopting IFRS 17 on its mandatory effective date on 1 January 2023, alongside the adoption of IFRS 9. IFRS 17 implementation programme The requirements of the new standard are complex and require a fundamental change to accounting, presentation and disclosures for insurance contracts as well as the application of significant judgement and new estimation techniques. The implementation of this standard has involved significant enhancements to IT, actuarial and finance systems of the Group. The Group has been implementing IFRS 17 and IFRS 9 through a Group-wide implementation programme. A Group-wide Steering Committee, chaired by the Group Chief Financial Officer, provides oversight and strategic direction to the implementation programme. Regular updates on progress are provided to the Group Audit Committee and during 2022 members of the Committee, as well as the Board, received training on the new requirements. Since the l |
Analysis of performance by segm
Analysis of performance by segment | 12 Months Ended |
Dec. 31, 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 2020 $m Note note (i) note (i) note (i) Continuing operations: CPL 368 343 251 Hong Kong 1,036 975 891 Indonesia 343 446 519 Malaysia 364 350 309 Singapore 678 663 574 Growth markets and other note (ii) 1,057 932 835 Eastspring 260 314 283 Other income and expenditure unallocated to a segment: Net investment return and other items 39 21 (15) Interest payable on core structural borrowings (200) (328) (316) Corporate expenditure note (iii) (276) (298) (412) Total other income (expenditure) B1.4 (437) (605) (743) Restructuring and IFRS 17 implementation costs note (iv) B1.4 (294) (185) (162) Adjusted operating profit B1.2 3,375 3,233 2,757 Short-term fluctuations in investment returns on shareholder-backed business note (v) (1,915) (458) (579) Amortisation of acquisition accounting adjustments (10) (5) (5) Gain (loss) attaching to corporate transactions D1.1 11 (94) 735 Profit before tax attributable to shareholders 1,461 2,676 2,908 Tax charge attributable to shareholders' returns B3 (454) (462) (440) Profit from continuing operations 1,007 2,214 2,468 Loss from discontinued US operations D1.2 — (5,027) (283) Profit (loss) for the year 1,007 (2,813) 2,185 Attributable to: Equity holders of the Company From continuing operations 998 2,192 2,458 From discontinued US operations — (4,234) (340) 998 (2,042) 2,118 Non-controlling interests From continuing operations 9 22 10 From discontinued US operations — (793) 57 9 (771) 67 Profit (loss) for the year 1,007 (2,813) 2,185 Basic earnings per share (in cents) 2022 2021 2020 Note note (i) note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations B4 100.5 ¢ 101.5 ¢ 86.6 ¢ Based on profit from continuing operations, net of non-controlling interest B4 36.5 ¢ 83.4 ¢ 94.6 ¢ Based on loss from discontinued US operations, net of non-controlling interest B4 — ¢ (161.1) ¢ (13.0) ¢ 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 $211 million (2021: $217 million; 2020: $119 million) which in 2022 primarily included the impact of the adoption of the Risk-Based Capital regime in Hong Kong (as discussed further in note C3.2) partially offset by corporate taxes for life joint ventures and associates. (iii) Corporate expenditure as shown above is for head office functions. (iv) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $( 137 ) million (2021: $( 101 ) million; 2020: $( 97 ) million), largely comprising the costs of Group-wide projects including the implementation of IFRS 17, reorganisation programmes and initial costs of establishing new business initiatives and operations. (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 year. In 2022, rising interest rates and widening credit 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. The interest rates rises in 2022 were more substantial than that seen in 2021. Short-term fluctuations also reflect losses on equities backing shareholder-backed business following market movements in 2022 (2021: equity gains) 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 and reported 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 Chief Executive Officer. Performance measures for insurance operations are analysed by geographical areas for the larger business units of CPL, Hong Kong, Indonesia, Malaysia and Singapore, with Eastspring, the asset management business, also analysed separately. CPL is managed jointly with CITIC, a Chinese state-owned conglomerate. All other Asia and Africa insurance operations are included in the ‘Growth markets and other’ segment 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. Operations and transactions which do not form part of any business unit are reported as ‘Unallocated to a segment’ and generally comprise head office functions, as presented in the additional segmental analysis in note B1.4. 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 year 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. Determination of adjusted operating profit for investment and liability movements With-profits business For with-profits business in Hong Kong, Singapore and Malaysia, the adjusted operating profit reflects the shareholders’ share in the bonuses declared to policyholders. Value movements in the underlying assets of the with-profits funds only affect the shareholder results through indirect effects of investment performance on declared policyholder bonuses and therefore, do not affect directly the determination of adjusted operating profit. Assets and liabilities held within unit-linked funds The policyholder unit liabilities are directly reflective of the underlying asset value movements. Accordingly, the adjusted operating profit reflects the current year value movements in both the unit liabilities and the backing assets, which offset one another. Other shareholder-backed long-term insurance business In the case of other shareholder-financed business, the measurement of adjusted operating profit reflects that, for the long-term insurance business, assets and liabilities are held for the longer term. For this business the Group believes trends in underlying performance are better understood if the effects of short-term fluctuations in market conditions, such as changes in interest rates or equity markets, are excluded. In determining the profit on this basis, the following key elements are applied to the results of the Group’s shareholder-financed businesses. (a) Policyholder liabilities that are sensitive to market conditions Under IFRS, the degree to which the carrying values of liabilities to policyholders are sensitive to current market conditions varies between business units depending upon the nature of the ‘grandfathered’ measurement basis. Taiwan and India apply US GAAP, whose policyholder liabilities are not sensitive to market movements as they are locked in at policy inception. Movements in liabilities for some types of business do require bifurcation between the elements that relate to longer-term market condition and short-term effects to ensure that at the net level (ie after allocated investment return and charge for policyholder benefits) the adjusted operating profit reflects longer-term market returns. For certain non-participating business, for example in Hong Kong, the economic features are more akin to asset management products with policyholder liabilities reflecting asset shares over the contract term. Consequently, for these products, the charge for policyholder benefits in the adjusted operating profit reflects the asset share feature that is calculated assuming a longer-term return assumption rather than volatile movements that would otherwise be reflected if the IFRS balance sheet reserving basis was applied. For other types of non-participating business, expected longer-term investment returns and interest rates are used to determine the movement in policyholder liabilities for determining adjusted operating profit. This ensures assets and liabilities are reflected on a consistent basis. (b) Assets backing other shareholder-backed long-term insurance business Except in the case of assets backing liabilities which are directly matched (such as unit-linked business) adjusted operating profit for assets backing shareholder-financed business is determined on the basis of expected longer-term investment returns. Longer-term investment returns comprise actual income receivable for the year (interest/dividend income) and longer-term capital returns, determined for debt and equity-type securities on the basis described below. The difference between the actual investment returns in the reporting period and the longer-term investment returns is recognised within short-term fluctuations in investment returns. Debt securities and loans As a general principle, for debt securities and loans, the longer-term investment returns comprise the interest receivable for the year and the amortisation of interest-related realised gains and losses to the date when sold securities would have otherwise matured (or a suitable proxy for this period). All unrealised gains and losses are treated as a component of short-term investment fluctuations. Consideration is given to the need to recognise an expected longer-term level of defaults for the securities within the longer-term investment returns, based on past performance and having regard to the credit quality of the portfolio, with any difference with actual credit-related realised losses arising in the year being included in short-term fluctuations. If, under this analysis, realised gains and losses are principally considered to be interest related with no significant credit-related losses based on past performance, then all realised gains and losses to date for these operations are treated as interest related and amortised to adjusted operating profit over the period to the date those securities would otherwise have matured and no separate charge to longer-term investment returns for credit defaults is made. For Group debt securities at 31 December 2022, the level of interest-related realised gains and losses on previously sold bonds that had yet to be amortised to adjusted operating profit from short-term investment fluctuations was a net loss of $(98) million (2021: net gain of $515 million; 2020: net gain of $525 million). Equity-type securities For equity-type securities that comprise both the Group's investments in direct equities and all of its collective investment scheme holdings, 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 the securities within this category. For insurance operations, investments in equity-type securities held for non-linked shareholder-backed business amounted to $7,089 million as at 31 December 2022 (31 December 2021: $6,073 million). For Group’s investments in direct equities, the longer-term rates of return applied in 2022 ranged from 8.7 per cent to 16.9 per cent (2021: 7.3 per cent to 16.9 per cent; 2020: 5.8 per cent to 16.9 per cent). For Group’s collective investment scheme holdings, the longer-term rates of return applied ranged from 3.5 per cent to 10.7 per cent (2021: 3.6 per cent to 11.0 per cent; 2020: 3.7 per cent to 11.3 per cent) representing the range across business units of the weighted average expected longer-term return rates determined by reference to the underlying asset mix of the funds for each business unit. These rates are broadly stable from year to year but may be different between regions, reflecting, for example, differing expectations of inflation in each business unit. The assumptions are for the returns expected to apply in equilibrium conditions. The assumed rates of return do not reflect any cyclical variability in economic performance and are not set by reference to prevailing asset valuations. The longer-term investment returns for the insurance joint ventures and associates accounted for using the equity method are determined on a similar basis as the other insurance operations described above. Derivative value movements Generally, derivative value movements are excluded from adjusted operating profit. The exception is where the derivative value movements broadly offset changes in the accounting value of other assets and liabilities included in adjusted operating profit. Other non-insurance businesses For these businesses, the determination of adjusted operating profit reflects the underlying economic substance of the arrangements. Generally, realised gains and losses are included in adjusted operating profit with temporary unrealised gains and losses being included in short-term fluctuations. In some instances, realised gains and losses on derivatives and other financial instruments are amortised to adjusted operating profit over a time period that reflects the underlying economic substance of the arrangements. B1.3 Revenue Premiums and annuity considerations for conventional and other protection type insurance policies are recognised as revenue when due. Premiums and annuity considerations for linked policies and other investment type policies are recognised as revenue when received or, in the case of unitised or unit-linked policies, when units are issued. These amounts exclude premium taxes and similar duties where Prudential collects and settles taxes borne by the policyholder. Policy fees charged on linked policies for mortality, morbidity, asset management and policy administration are recognised when related services are provided. (a) 2022 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total Gross premiums earned 8,792 1,590 1,843 6,540 4,579 — — 23,344 — 23,344 Outward reinsurance premiums (1,494) (34) (58) (299) (58) — — (1,943) — (1,943) Earned premiums, net of reinsurance 7,298 1,556 1,785 6,241 4,521 — — 21,401 — 21,401 Other income note (ii) 65 12 — 15 116 330 — 538 1 539 Total external revenue note (iii) 7,363 1,568 1,785 6,256 4,637 330 — 21,939 1 21,940 Intra-group revenue — — — — 1 199 (200) — — — Interest income note B1.3(b) 996 83 217 744 628 4 — 2,672 50 2,722 Dividend and other investment income 689 77 183 576 107 1 — 1,633 25 1,658 Investment appreciation (depreciation) (23,704) (70) (365) (7,498) (2,876) (21) — (34,534) (5) (34,539) Total revenue, net of reinsurance (14,656) 1,658 1,820 78 2,497 513 (200) (8,290) 71 (8,219) 2021 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total Gross premiums earned 10,032 1,724 1,900 6,246 4,315 — — 24,217 — 24,217 Outward reinsurance premiums (1,557) (43) (47) (137) (60) — — (1,844) — (1,844) Earned premiums, net of reinsurance 8,475 1,681 1,853 6,109 4,255 — — 22,373 — 22,373 Other income note (ii) 52 12 — 22 117 437 — 640 1 641 Total external revenue note (iii) 8,527 1,693 1,853 6,131 4,372 437 — 23,013 1 23,014 Intra-group revenue — — — — 1 217 (218) — — — Interest income note B1.3(b) 934 87 220 707 618 3 — 2,569 1 2,570 Dividend and other investment income 679 74 160 506 86 — — 1,505 19 1,524 Investment appreciation (depreciation) 57 34 (300) (29) (361) 8 — (591) (17) (608) Total revenue, net of reinsurance 10,197 1,888 1,933 7,315 4,716 665 (218) 26,496 4 26,500 2020 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total note (vii) Gross premiums earned 11,091 1,738 1,783 5,035 3,848 — — 23,495 — 23,495 Outward reinsurance premiums note (iv) (1,918) (62) (27) 432 (50) — — (1,625) — (1,625) Earned premiums, net of reinsurance 9,173 1,676 1,756 5,467 3,798 — — 21,870 — 21,870 Other income note (ii) 59 8 — 38 91 417 — 613 2 615 Total external revene note (iii) 9,232 1,684 1,756 5,505 3,889 417 — 22,483 2 22,485 Intra-group revenue — — — — 1 164 (165) — — — Interest note B1.3(b) 646 104 210 447 570 5 — 1,982 15 1,997 Dividend and other investment income 646 86 99 364 65 5 — 1,265 32 1,297 Investment appreciation (depreciation) 7,493 (201) 369 2,045 765 21 — 10,492 (24) 10,468 Total revenue, net of reinsurance 18,017 1,673 2,434 8,361 5,290 612 (165) 36,222 25 36,247 Notes (i) CPL, Prudential’s life business in the Chinese Mainland, is a 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 2022 is $2,948 million (2021: $3,052 million; 2020: $1,866 million). Further financial information on CPL is provided in note D6.3. (ii) Other income comprises income from external customers and consists primarily of revenue from the Group’s asset management business of $330 million (2021: $437 million; 2020: $417 million). The remaining other income consists primarily of policy fee revenue from external customers and asset management rebate revenue from external fund managers. Also included in other income is fee income on financial instruments that are not held at FVTPL of $2 million (2021: $1 million; 2020: $1 million). (iii) Due to the nature of the business of the Group, there is no reliance on any major customers. Of the Group’s markets, only Hong Kong and Singapore have external revenue that exceeds 10 per cent of the Group total for the years presented. (iv) The 2020 outward reinsurance premiums in Singapore included a credit of $ 542 million for the recapture of previously reinsured business following a change in regulatory requirements. (b) Investment return included in the income statement principally comprises interest income, dividends, investment appreciation and depreciation (realised and unrealised gains and losses) on investments designated as fair value through profit or loss, and realised gains and losses (including impairment losses) on items held at amortised cost and/or designated as AFS. Movements in unrealised appreciation or depreciation of securities designated as AFS are recorded in other comprehensive income. Interest income is recognised as it accrues. Dividends on equity securities are recognised on the ex-dividend date and rental income is recognised on an accrual basis. 2022 $m 2021 $m 2020 $m Net realised and unrealised gains (losses) on securities at fair value through profit or loss note (i) (30,097) 624 9,741 Net realised and unrealised gains (losses) on derivatives at fair value through profit or loss note (i) (4,487) (943) 916 Net realised (losses) on loans note (i) (14) (2) — Interest income note (ii) 2,722 2,570 1,997 Dividend income 1,531 1,496 1,257 Other investment returns (including foreign exchange gains and losses) 186 (259) (149) Investment return (30,159) 3,486 13,762 Notes (i) Net realised gains and losses on the Group’s investments for 2022 recognised in the income statement amounted to a net loss of $(9.3) billion (2021: a net gain of $6.0 billion; 2020: a net gain of $4.9 billion). The movement in the net amount of realised and unrealised gains and losses on the Group’s investments from 2021 to 2022 primarily reflects the effects of significant increases in interest rates during the year compared with 2021 as well as equity market falls during the year. (ii) Interest income includes $362 million (2021: $280 million; 2020: $257 million) in respect of financial assets not at fair value through profit and loss. The overall financial strength of Prudential and the results, both current and future, of the insurance business are in part dependent upon the quality and performance of the various investment portfolios. Prudential’s insurance investments support a range of businesses operating in many geographic areas. Each of the operations formulates a strategy based on the nature of its underlying liabilities, its level of capital and its local regulatory requirements. Prudential’s insurance business’s investments, excluding assets to cover linked liabilities and those attributable to external unit holders of consolidated investment funds, are largely held by Prudential’s Singapore and Hong Kong operations. All investments are carried at fair value in the statement of financial position with fair value movements, which are volatile from period to period, recorded in the income statement, except for loans and receivables, which are generally carried at amortised cost (unless designated at fair value through profit or loss), the Group’s retained interest in Jackson and certain centrally held debt securities, which are designated as available-for-sale and therefore the changes in unrealised fair value are booked in other comprehensive income. Subject to the effect of the exceptions, the year-on-year changes in investment returns primarily reflect the generality of overall market movements for equities and debt securities. In addition, foreign exchange rates affect the USD value of the translated income. Consistent with the treatment applied for other items of income and expenditure, investment return for operations not using USD as functional currency is translated at average exchange rates. The year-on-year movements in investment return of the Group mainly reflect the cumulative impact from the changes in interest rates on bond asset values and in the performance of the equity markets. Allocation of investment return between policyholders and shareholders Investment return is attributable to policyholders and shareholders. A key feature of the accounting policies under IFRS is that the investment return included in the income statement relates to all investment assets of the Group, irrespective of whether the return is attributable to shareholders, policyholders or the unallocated surplus of with-profits funds, the latter two of which have no direct impact on shareholders’ profit. The table below provides a breakdown of the investment return attributable to each type of business. 2022 $m 2021 $m 2020 $m Policyholder returns Assets backing unit-linked liabilities (2,574) 516 1,549 With-profits business (21,287) 2,700 8,384 (23,861) 3,216 9,933 Shareholder returns (6,298) 270 3,829 Total investment return (30,159) 3,486 13,762 Policyholder returns Investment returns allocated to policyholders are those from investments in which shareholders have no direct economic interest, namely unit-linked business for which the investment returns are wholly attributable to policyholders and with-profits business in which the shareholders’ economic interest (and the basis of recognising IFRS basis profits) is restricted to a share of the actuarially determined surplus for distribution. Except for this surplus, the investment returns of the with-profits funds are attributable to policyholders (through the asset-share liabilities) or the unallocated surplus, which is accounted for as a liability under IFRS 4 as shown in note C3. Shareholder returns For shareholder-backed non-with-profits business, the investment returns are generally not directly attributable to policyholders and, therefore, impact shareholders’ profit directly. B1.4 2022 $m 2021 $m 2020 $m CPL (144) 278 394 Hong Kong (211) 1,068 994 Indonesia 243 362 409 Malaysia 252 265 256 Singapore 406 394 521 Growth markets and other note (i) 881 434 548 Eastspring 234 284 253 Total segment 1,661 3,085 3,375 Unallocated to a segment (central operations) note (ii) (654) (871) (907) Total profit after tax 1,007 2,214 2,468 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 year, in line with the presentation used by management when assessing the performance of the underlying segments internally. (ii) Comprising other income and expenditure of $(437) million (2021: $(605) million; 2020: $(743) million) attributable to the head office functions, $(294) million (2021: $(185) million; 2020: $(162) million) of restructuring and IFRS 17 implementation costs, $19 million (2021: $(25) million; 2020: $28 million) of short-term fluctuations on investment returns in central operations, $62 million (2021: $(35) million; 2020: $(30) million) of corporate transactions and related tax of $(4) million (2021: $(21) million; 2020: nil ). |
Acquisition costs and other exp
Acquisition costs and other expenditure | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition costs and other expenditure | |
Acquisition costs and other expenditure | B2 Acquisition costs and other expenditure 2022 $m 2021 $m 2020 $m Acquisition costs incurred for insurance policies (2,325) (2,089) (2,080) Acquisition costs deferred 1,002 848 617 Amortisation of acquisition costs (475) (343) (308) Administration costs and other expenditure (net of other reinsurance commission) (3,100) (3,128) (2,433) Movements in amounts attributable to external unit holders of consolidated investment funds 1,018 152 (447) Total acquisition costs and other expenditure (3,880) (4,560) (4,651) Notes (i) Administration costs and other expenditure include fee expenses relating to financial liabilities held at amortised cost and are part of the determination of the effective interest rate. (ii) Total depreciation and amortisation expenses are included in ‘Acquisition costs incurred for insurance policies’, ‘Administration costs and other expenditure (net of other reinsurance commission)’ and ‘Amortisation of acquisition costs’ and relate primarily to amortisation of DAC of insurance contracts and distribution rights intangibles. The segmental analysis of depreciation and amortisation is shown below. 2022 $m 2021 $m 2020 $m Hong Kong (147) (123) (158) Indonesia (61) (51) (34) Malaysia (70) (56) (37) Singapore (202) (162) (144) Growth markets and other (461) (390) (301) Eastspring (13) (17) (16) Total segment (954) (799) (690) Unallocated to a segment (central operations) (26) (31) (35) Total depreciation and amortisation (980) (830) (725) (iii) Interest expense is included in ‘Administration costs and other expenditure (net of other reinsurance commission)’ other than interest on core structural borrowings that is presented separately on the income statement as ‘Finance costs: interest on core structural borrowings of shareholder-financed businesses’. Interest expense of the central operations amounted to $(209) million (2021: $(331) million; 2020: $ (334) million) comprising $ (200) million (2021: $ (328) million; 2020: $ (316) million) of interest on core structural borrowings, $ (2) million of interest on lease liabilities (2021: $ (3) million; 2020: $ (4) million) and $ (7) million (2021: nil ; 2020: $ (14) million) of interest on other operational borrowings. Core structural borrowings and operational borrowings (other than lease liabilities) represent financial liabilities that are not classified at fair value through profit and loss. The ‘Total segment’ interest expense is $(16) million (2021: $(10) million; 2020: $(13) million) of which $(11) million arises in the Hong Kong segment (2021: $(3) million; 2020: $(5) million) with the remainder spread broadly evenly across the other markets. Included within interest expense is $(7) million (2021: $(10) million; 2020: $(13) million) of interest on lease liabilities. B2.1 Staff and employment costs The average number of staff employed by the Group during the years shown was: 2022 2021 2020 Asia and Africa operations note (i) 13,685 13,237 12,949 Head office function 511 600 657 Total continuing operations 14,196 13,837 13,606 Discontinued US operations note (ii) — 3,306 3,650 Total Group 14,196 17,143 17,256 Notes (i) The Asia and Africa operations staff numbers above exclude 744 (2021: 440 ; 2020: 502 ) commission-based sales staff who have an employment contract with the Group. (ii) Average staff numbers of the discontinued US operations were for the period up to the demerger in September 2021. The costs of employment were: 2022 $m 2021 $m 2020 $m Group Discontinued Group Group total Continuing US operations total Continuing Discontinued total Wages and salaries 1,018 973 511 1,484 917 619 1,536 Social security costs 41 42 22 64 41 26 67 Defined contribution schemes 40 42 29 71 42 34 76 Total Group 1,099 1,057 562 1,619 1,000 679 1,679 B2.2 Share-based payment The Company offers discretionary share awards to certain key employees and all-employee share plans in the UK and a number of Asia locations. The compensation expense charged to the income statement is primarily based upon the fair value of the awards granted, the vesting period and the vesting conditions. The Company has established trusts to facilitate the delivery of Prudential plc shares under some of these plans. The cost to the Company of acquiring these newly issued shares held in trusts is shown as a deduction from shareholders’ equity. (a) Description of the plans The Group operates a number of share award plans that provides Prudential plc shares, or ADRs, to participants upon vesting. The plans in operation include the Prudential Long Term Incentive Plan, the Prudential Annual Incentive Plan, savings-related share option schemes, share purchase plans and deferred bonus plans. Where Executive Directors participate in these plans, details about those schemes are provided in the Compensation and Employee section. The following information is provided about plans in which the Executive Directors do not participate: Share scheme Description Prudential Asia and Africa (PAA) Long-Term Incentive Plan (PAA LTIP) The PAA LTIP provides eligible employees with conditional awards. Awards are discretionary and vest after one, two or three years subject to the employee being in employment. Vesting of awards may also be subject to performance conditions. All awards are generally made in Prudential shares. In countries where share awards are not feasible for reasons including securities and/or tax considerations, awards will be replaced by the cash value of the shares that would otherwise have vested. Prudential Agency Long-Term Incentive Plan (LTIP) Certain agents are eligible to be granted awards in Prudential shares under the Prudential Agency LTIP. These awards are structured in a similar way to the PAA LTIP described above, with most awards granted with a three year vesting period. Restricted Share Plan (RSP) The Company operates the RSP for certain employees. Awards under this plan are discretionary, and the vesting of awards may be subject to performance conditions. All awards are made in Prudential shares. Deferred bonus plans The Company operates a number of deferred bonus plans including the Group Deferred Bonus Plan (GDBP) and the Prudential Deferred Bonus Plan. There are no performance conditions attached to deferred share awards made under these arrangements. Savings-related share option schemes Eligible agents in certain business units are able to participate in the International Savings-Related Share Option Scheme for Non-Employees, which is similar to the HMRC-approved Save As You Earn (SAYE) share option scheme in the UK. Share purchase plans Eligible employees outside the UK are invited to participate in arrangements similar to the Company’s HMRC-approved UK Share Incentive Plan, which allows the purchase of Prudential plc shares. Staff based in Asia and Africa are eligible to participate in the Prudential All Employee Share Purchase Plan. (b) Outstanding options and awards The following table shows the movement in outstanding options and awards under the Group’s share-based compensation plans: Awards outstanding under Options outstanding under SAYE schemes incentive plans 2022 2021 2020 2022 2021 2020 Weighted Weighted Weighted average average average Number exercise Number exercise Number exercise of options price of options price of options price Number of awards millions £ millions £ millions £ millions Balance at beginning of year: 2.0 11.61 2.3 11.86 3.8 12.38 24.6 40.6 33.0 Granted 0.5 7.37 0.4 11.90 0.4 9.64 6.5 5.2 20.2 Modification — — 0.1 11.77 — — — 0.7 — Exercised (0.3) 11.17 (0.7) 12.58 (0.9) 11.44 (7.2) (8.6) (10.3) Forfeited — 10.84 — 11.11 — 14.27 (1.1) (3.1) (1.5) Cancelled (0.3) 12.67 (0.1) 11.51 (0.1) 12.55 (0.1) (0.1) (0.1) Lapsed/Expired — 13.00 — 12.88 (0.9) 13.28 (1.7) (0.6) (0.7) Jackson awards derecognised on demerger note — — — — — — — (9.5) — Balance at end of year 1.9 10.43 2.0 11.61 2.3 11.86 21.0 24.6 40.6 Options immediately exercisable at end of year 0.3 12.48 0.2 12.26 0.5 12.64 Note On demerger of Jackson from the Prudential Group, outstanding share awards for Prudential plc participants were adjusted to receive the demerger dividend in the form of additional Prudential plc shares, to be released on the same timetable and to the same extent as their original share awards. In the case of the International Savings-Related Share Option Scheme for Non Employees the adjustments to outstanding options were confirmed as being fair and reasonable by an independent financial adviser in accordance with the rules of that plan and the Hong Kong Stock Exchange Listing Rules. Employees of Jackson were granted replacement awards over Jackson shares, in exchange for existing Group awards outstanding under incentive plans. As designated replacement awards were granted, no cancellation was recognised in respect of the original awards. As the replacement awards are an obligation of Jackson these awards were derecognised by the Group on demerger. The weighted average share price of Prudential plc for 2022 was £10.33 (2021: £14.31 ; 2020: £11.64 ). The following table provides a summary of the range of exercise prices for Prudential plc options outstanding at 31 December: Outstanding Exercisable Weighted average remaining Weighted average Weighted average Number outstanding contractual life exercise prices Number exercisable exercise prices millions years £ millions £ 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 Between £7 and £8 0.5 — — 4.1 — — 7.37 — — — — — — — — Between £9 and £10 0.4 0.4 0.4 2.2 3.2 4.2 9.64 9.64 9.64 — — — — — — Between £11 and £12 0.8 1.2 1.2 2.4 2.7 2.2 11.48 11.38 11.11 0.2 0.1 0.3 11.12 11.04 11.11 Between £13 and £14 0.1 0.2 0.3 1.4 1.6 2.2 13.94 13.94 13.94 — 0.1 — — 13.94 — Between £14 and £15 0.1 0.2 0.4 0.4 1.4 1.3 14.55 14.55 14.55 0.1 — 0.2 14.55 — 14.55 Total 1.9 2.0 2.3 2.6 2.6 2.4 10.43 11.61 11.86 0.3 0.2 0.5 12.48 12.26 12.64 The years shown above for weighted average remaining contractual life include the time period from end of vesting period to expiration of contract. (c) Fair value of options and awards The fair value amounts estimated on the date of grant relating to all options and awards were determined by using the following assumptions: 2022 2021 2020 Prudential SAYE Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) options awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 1.11 — — 0.81 — — 3.45 — Expected volatility (%) 33.64 25.68 — 26.69 22.31 — 41.08 27.55 — Risk-free interest rate (%) 2.79 3.97 — 0.36 1.18 — 0.39 0.27 — Expected option life (years) — 4.52 — — 4.50 — — 3.92 — Weighted average exercise price (£) — 7.37 — — 11.90 — — 9.64 — Weighted average share price at grant date (£) 11.15 9.54 — 15.11 14.76 — 10.49 10.74 — Weighted average fair value at grant date (£) 2.09 3.45 11.11 7.70 4.13 14.79 4.93 1.95 10.54 The compensation costs for all awards and options are recognised in net income over the plans’ respective vesting periods. The Group uses the Black-Scholes model to value all options, and financial equivalence to value all awards other than those which have TSR performance conditions attached (some Prudential LTIP and RSP awards) for which the Group uses a Monte Carlo model in order to allow for the impact of these conditions. These models are used to calculate fair values for share options and awards at the grant date based on the quoted market price of the stock at the measurement date, the amount, if any, that the employees are required to pay, the dividend yield, expected volatility, risk-free interest rates and exercise prices. For all options and awards, the expected volatility is based on the market implied volatilities as quoted on Bloomberg. The Prudential specific at-the-money implied volatilities are adjusted to allow for the different terms and discounted exercise price on SAYE options by using information on the volatility surface of the FTSE 100. Risk-free interest rates are taken from swap spot rates with projection terms matching the corresponding vesting periods. For awards with a TSR condition, volatilities and correlations between Prudential and a basket of 12 competitor companies is required. For grants in 2022, the average volatility for the basket of competitors was 26.46 per cent (2021: 23.62 per cent; 2020: 41.40 per cent). Correlations for the basket are calculated for each pairing from the log of daily TSR returns for the three years prior to the valuation date. Market implied volatilities are used for both Prudential and the basket of competitors. Changes to the subjective input assumptions could materially affect the fair value estimate. Other awards, without market performance conditions or exercise price, are valued based on grant date share price. (d) Share-based payment expense charged to the income statement The total expense recognised in 2022 in the consolidated financial statements relating to share-based compensation is $ 104 million (2021: $100 million; 2020: $103 million), of which $97 million (2021: $94 million; 2020: $97 million) is accounted for as equity-settled. The Group had $27 million of liabilities at 31 December 2022 (31 December 2021: $32 million) relating to share-based payment awards accounted for as cash-settled. B2.3 Key management remuneration Key management constitutes the Directors of Prudential plc and other non-Director members of the GEC, as they have authority and responsibility for planning, directing and controlling the activities of the Group. Total key management remuneration is analysed in the following table: 2022 $m 2021 $m 2020 $m Salaries and short-term benefits 22.5 29.3 20.0 Post-employment benefits 1.0 1.4 1.2 Share-based payments 15.4 14.0 14.6 Payments on separation 1.0 23.5 — 39.9 68.2 35.8 The share-based payments charge comprises $6.7 million (2021: $7.5 million; 2020: $10.7 million), which is determined in accordance with IFRS 2 ‘Share-based Payment’ (see note B2.2) and $8.7 million (2021: $6.5 million; 2020: $3.9 million) of deferred share awards. Additional details on the Directors’ emoluments, retirement benefits and other payments are given in the Compensation and Employees section. In addition to the total amounts disclosed of remuneration paid to the Directors in 2021, are amounts paid to those directors who stepped down from the Board in 2021 being $102,000 to Kai Nargolwala and $203,000 to Fields Wicker-Miurin. This is as disclosed in the 2021 Form 20-F. B2.4 Fees payable to the auditor 2022 $m 2021 $m 2020 $m Audit of the Company's annual accounts 2.3 2.4 2.3 Audit of subsidiaries pursuant to legislation 4.4 5.9 9.2 Audit fees payable to the auditor 6.7 8.3 11.5 Audit-related assurance services note (i) 3.5 4.5 3.5 Other assurance services 0.7 1.1 0.7 Services relating to corporate finance transactions — 1.6 0.3 Non-audit fees payable to the auditor 4.2 7.2 4.5 Total fees payable to the auditor 10.9 15.5 16.0 Analysed into: Fees payable to the auditor attributable to continuing operations: One-off non-audit services associated with demerger and public offering note (ii) — 1.9 0.4 Other audit and non-audit services 10.9 11.3 9.5 10.9 13.2 9.9 Fees payable to the auditor attributable to discontinued US operations — 2.3 6.1 10.9 15.5 16.0 Notes (i) Of the audit-related assurance service fees of $3.5 million in 2022 (2021: $4.5 million; 2020: $3.5 million), $0.9 million (2021: $0.6 million; 2020: $0.7 million) relates to services that are required by law and regulation. (ii) Of the $1.9 million one-off non-audit services fees associated with the demerger of the US operations and the public offering in Hong Kong in 2021, $0.1 million was for audit-related assurance and $0.1 million for other assurance services required by law and regulation. |
Tax charge
Tax charge | 12 Months Ended |
Dec. 31, 2022 | |
Tax charge | |
Tax charge | B3 Tax charge Prudential is subject to tax in numerous jurisdictions and the calculation of the total tax charge inherently involves a degree of estimation and judgement. Current tax expense is charged or credited based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year and adjustments made in relation to prior years. The positions taken in tax returns where applicable tax regulation is subject to interpretation are recognised in full in the determination of the tax charge in the consolidated financial statements if the Group considers that it is probable that the taxation authority will accept those positions. Otherwise, provisions are established based on the likely amount of the liability, or recovery, by providing for the single best estimate of the most likely outcome or the weighted average expected value where there are multiple outcomes. The total tax charge includes tax expense attributable to both policyholders and shareholders. The tax expense attributable to policyholders comprises the tax on the income of the consolidated with-profits and unit-linked funds. In certain jurisdictions, life insurance companies are taxed on both their shareholders' profits and on their policyholders' insurance and investment returns on certain insurance and investment products. Although both types of tax are included in the total tax charge in the Group’s Consolidated income statement, they are presented separately in the Consolidated income statement to provide the most relevant information about tax that the Group pays on its profits. Deferred taxes are provided under the liability method for all relevant temporary differences. IAS 12 ‘Income Taxes’ does not require all temporary differences to be provided for, in particular, the Group does not provide for deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the temporary difference created is not expected to reverse in the foreseeable future. Deferred tax assets are only recognised when it is more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period. B3.1 Total tax charge by nature The total tax charge in the income statement is as follows: 2022 $m 2021 $m 2020 $m Attributable to shareholders: Hong Kong (52) (40) (15) Indonesia (60) (74) (125) Malaysia (90) (71) (58) Singapore (78) (67) (87) Growth markets and other (144) (159) (125) Eastspring (26) (30) (30) Total segment (450) (441) (440) Unallocated to a segment (central operations) (4) (21) — Tax charge attributable to shareholders (454) (462) (440) Attributable to policyholders: Hong Kong (56) (79) (60) Indonesia (5) 4 (3) Malaysia — (2) (34) Singapore 44 (261) (170) Growth markets and other (4) (4) (4) Tax charge attributable to policyholders (21) (342) (271) Total tax charge (475) (804) (711) 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 charge attributable to policyholders of $(21) million (2021: $(342) million; 2020: $(271) million) above is equal to the profit before tax attributable to policyholders as a result of accounting for policyholder income after the deduction of expenses and movement in unallocated surpluses on a post-tax basis. The reduction in the tax charge attributable to policyholders results from the deferred tax impact of policyholder liability movements caused by adverse market movements in 2022, primarily in Singapore. The total tax charge comprises: 2022 $m 2021 $m 2020 $m Current tax expense: Corporation tax (474) (405) (376) Adjustments in respect of prior years (7) 6 (7) Total current tax charge (481) (399) (383) Deferred tax arising from: Origination and reversal of temporary differences 4 (388) (306) Impact of changes in local statutory tax rates — — (1) Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year 2 (17) (21) Total deferred tax credit (charge) 6 (405) (328) Total tax charge (475) (804) (711) 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 for the period. It reflects the corporation tax rates of each jurisdiction weighted by reference to the amount of profit or loss contributing to the aggregate result. 2022 2021 2020 Tax Percentage Tax Percentage Tax Percentage attributable to impact attributable to impact on attributable to impact shareholders on ETR shareholders ETR shareholders on ETR $m % $m % $m % Adjusted operating profit 3,375 3,233 2,757 Non-operating result note (i) (1,914) (557) 151 Profit before tax 1,461 2,676 2,908 Tax charge at the expected rate (287) 20 % (539) 20 % (602) 21 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 61 (4) % 63 (2) % 102 (4) % Deductions and losses not allowable for tax purposes note (iii) (196) 13 % (92) 3 % (32) 1 % Items related to taxation of life insurance businesses note (iv) 108 (7) % 177 (7) % 152 (5) % Deferred tax adjustments including unrecognised tax losses note (v) (45) 3 % (111) 4 % (172) 6 % Effect of results of joint ventures and associates note (vi) 3 0 % 80 (3) % 129 (4) % Irrecoverable withholding taxes note (vii) (55) 4 % (60) 2 % (35) 1 % Other (15) 0 % (8) 1 % 17 (1) % Total (charge) credit on recurring items (139) 9 % 49 (2) % 161 (6) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years 1 0 % (11) 0 % (25) 1 % Movements in provisions for open tax matters note (viii) (40) 3 % 47 (2) % 33 (1) % Impact of changes in local statutory tax rates — 0 % 6 0 % (1) 0 % Adjustments in relation to business disposals and corporate transactions 11 (1) % (14) 1 % (6) 0 % Total (charge) credit on non-recurring items (28) 2 % 28 (1) % 1 0 % Total actual tax charge (454) 31 % (462) 17 % (440) 15 % Analysed into: Tax charge on adjusted operating profit (614) (548) (497) Tax credit on non-operating result note (i) 160 86 57 Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note (ix) 18 % 17 % 18 % Excluding non-recurring tax reconciling items 17 % 18 % 18 % Total profit note (ix) 31 % 17 % 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. The tax charge on non-operating result is calculated using the tax rates applicable to investment profit or loss recorded in the non-operating result for each entity, and then adjusting for any discrete items included in the total tax charge that relate specifically to the amounts (other than investment related profit or loss) included in the non-operating result. The difference between this tax on non-operating result and the tax charge calculated on profit before tax is the tax charge on adjusted operating profit. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Malaysia and Singapore. (iii) Deductions and losses 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 years. (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: 2022 $m Balance at 1 Jan (42) Movements in the current year included in tax charge attributable to shareholders (40) 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) 3 Balance at 31 Dec (79) (ix) The actual tax rates of the relevant business operations are shown below: 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 20 % 26 % 16 % 24 % 10 % (1) % 18 % Tax rate on profit before tax (33) % 20 % 26 % 16 % 14 % 10 % (1) % 31 % 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 5 % 17 % 21 % 15 % 22 % 10 % (3) % 17 % Tax rate on profit before tax 4 % 17 % 21 % 15 % 27 % 10 % (2) % 17 % 2020 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 3 % 24 % 18 % 14 % 22 % 11 % 0 % 18 % Tax rate on profit before tax 1 % 23 % 18 % 14 % 19 % 11 % 0 % 15 % |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Earnings per share | B4 Earnings per share 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 Profit from continuing operations 1,461 (454) (9) 998 36.5 ¢ 36.5 ¢ Short-term fluctuations in investment returns on shareholder-backed business 1,915 (155) (2) 1,758 64.3 ¢ 64.3 ¢ Amortisation of acquisition accounting adjustments 10 — — 10 0.4 ¢ 0.4 ¢ Loss attaching to corporate transactions (11) (5) — (16) (0.7) ¢ (0.7) ¢ Adjusted operating profit 3,375 (614) (11) 2,750 100.5 ¢ 100.5 ¢ 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 Loss for the year (2,042) (77.7) (77.7) ¢ Loss from discontinued US operations 4,234 161.1 161.1 ¢ Profit from continuing operations 2,676 (462) (22) 2,192 83.4 ¢ 83.4 ¢ Short-term fluctuations in investment returns on shareholder-backed business 458 (81) 5 382 14.5 ¢ 14.5 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Loss attaching to corporate transactions 94 (5) — 89 3.4 ¢ 3.4 ¢ Adjusted operating profit 3,233 (548) (17) 2,668 101.5 ¢ 101.5 ¢ 2020 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 B1.1 B3 Profit for the year 2,118 81.6 ¢ 81.6 ¢ Loss from discontinued US operations 340 13 ¢ 13.0 ¢ Profit from continuing operations 2,908 (440) (10) 2,458 94.6 ¢ 94.6 ¢ Short-term fluctuations in investment returns on shareholder-backed business 579 (49) — 530 20.4 ¢ 20.4 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Gain attaching to corporate transactions (735) (8) — (743) (28.6) ¢ (28.6) ¢ Adjusted operating profit 2,757 (497) (10) 2,250 86.6 ¢ 86.6 ¢ 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 year, 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 ordinary shares during the year. 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: Number of shares (in millions) 2022 2021 2020 Weighted average number of shares for calculation of basic earnings per share 2,736 2,628 2,597 Shares under option at end of year 1 2 2 Shares that would have been issued at fair value on assumed option price at end of year (1) (2) (2) Weighted average number of shares for calculation of diluted earnings per share 2,736 2,628 2,597 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2022 | |
Dividends | |
Dividends | B5 Dividends 2022 2021 2020 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim dividend 5.74 ¢ 154 5.37 ¢ 140 5.37 ¢ 140 Second interim dividend 13.04 ¢ 359 11.86 ¢ 326 10.73 ¢ 280 Total relating to reporting year 18.78 ¢ 513 17.23 ¢ 466 16.10 ¢ 420 Dividends paid in reporting year: Current year first interim dividend 5.74 ¢ 154 5.37 ¢ 138 5.37 ¢ 140 Second interim dividend for prior year 11.86 ¢ 320 10.73 ¢ 283 25.97 ¢ 674 Total paid in reporting year 17.60 ¢ 474 16.10 ¢ 421 31.34 ¢ 814 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 The 2022 first interim dividend of 5.74 cents per ordinary share was paid to eligible shareholders on 27 September 2022. On 15 May 2023, Prudential will pay a second interim dividend of 13.04 cents per ordinary share for the year ended 31 December 2022. The second interim dividend will be paid to shareholders included on the UK register at 5.00pm (Greenwich Mean Time) and to shareholders on the HK branch register at 4.30pm (Hong Kong Time) on 24 March 2023 (Record Date), and also to the Holders of US American Depositary Receipts (ADRs) as at 24 March 2023. The second interim dividend will be paid on or about 22 May 2023 to shareholders with shares standing to the credit of their securities accounts with The Central Depository (Pte) Limited (CDP) at 5.00pm (Singapore Time) on the Record Date. Shareholders holding shares on the UK or HK share registers will continue to receive their dividend payments in either GBP or HKD respectively, unless they elect otherwise. Shareholders holding shares on the UK or HK registers may elect to receive dividend payments in USD. Elections must be made through the relevant UK or HK share registrar on or before 19 April 2023. The corresponding amounts per share in GBP and HKD are expected to be announced on or about 27 April 2023. The USD to GBP and HKD conversion rates will be determined by the actual rates achieved by Prudential buying those currencies prior to the subsequent announcement. Holders of ADRs will continue to receive their dividend payments in USD. Shareholders holding an interest in Prudential shares through CDP in Singapore will continue to receive their dividend payments in SGD at an exchange rate determined by CDP. 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 | 12 Months Ended |
Dec. 31, 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 31 December 2022 were $1,152 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-. 31 Dec 2022 $m Asia and Africa Unallo- Elimination Insurance cated of intra-group With- Unit- Elimina- to a debtors and Group profits linked Other Eastspring tions Total segment creditors total note (i) note (i) note (i) Debt securities notes (ii)(iv) Sovereign debt Indonesia 482 589 483 3 — 1,557 — — 1,557 Singapore 3,240 507 917 67 — 4,731 — — 4,731 Thailand — — 1,456 — — 1,456 — — 1,456 United Kingdom — 4 — — — 4 — — 4 United States 19,983 54 1,854 — — 21,891 — — 21,891 Vietnam 1 12 2,397 — — 2,410 — — 2,410 Other (predominantly Asia) 2,041 646 3,288 27 — 6,002 — — 6,002 Subtotal 25,747 1,812 10,395 97 — 38,051 — — 38,051 Other government bonds AAA 1,480 85 108 — — 1,673 — — 1,673 AA+ to AA- 105 21 27 — — 153 — — 153 A+ to A- 746 139 248 — — 1,133 — — 1,133 BBB+ to BBB- 292 77 134 — — 503 — — 503 Below BBB- and unrated 227 22 323 — — 572 — — 572 Subtotal 2,850 344 840 — — 4,034 — — 4,034 Corporate bonds AAA 996 181 362 — — 1,539 — — 1,539 AA+ to AA- 1,951 385 1,556 — — 3,892 — — 3,892 A+ to A- 7,230 524 4,348 — — 12,102 — — 12,102 BBB+ to BBB- 7,885 1,325 3,974 1 — 13,185 — — 13,185 Below BBB- and unrated 2,090 444 1,282 — — 3,816 — — 3,816 Subtotal 20,152 2,859 11,522 1 — 34,534 — — 34,534 Asset-backed securities AAA 168 5 126 — — 299 — — 299 AA+ to AA- 6 1 3 — — 10 — — 10 A+ to A- 20 — 14 — — 34 — — 34 BBB+ to BBB- 14 — 9 — — 23 — — 23 Below BBB- and unrated 2 1 1 — — 4 — — 4 Subtotal 210 7 153 — — 370 — — 370 Total debt securities 48,959 5,022 22,910 98 — 76,989 — — 76,989 Loans Mortgage loans — — 140 — — 140 — — 140 Policy loans 1,498 — 422 — — 1,920 — — 1,920 Other loans 472 — 4 — — 476 — — 476 Total loans 1,970 — 566 — — 2,536 — — 2,536 Equity securities and holdings in collective investment schemes Direct equities 13,063 11,379 2,139 61 — 26,642 266 — 26,908 Collective investment schemes 19,057 6,760 4,950 2 — 30,769 2 — 30,771 Total equity securities and holdings in collective investment schemes 32,120 18,139 7,089 63 — 57,411 268 — 57,679 Other financial investments note (iii) 1,793 379 2,816 107 — 5,095 1,749 — 6,844 Total financial investments note (v) 84,842 23,540 33,381 268 — 142,031 2,017 — 144,048 Investment properties — — 37 — — 37 — — 37 Investments in joint ventures and associates accounted for using the equity method — — 1,601 314 — 1,915 — — 1,915 Cash and cash equivalents note (vi) 1,038 749 1,791 127 — 3,705 1,809 — 5,514 Reinsurers' share of insurance contract liabilities note C3.3 145 — 2,662 — — 2,807 — — 2,807 Other assets note (vii) 1,156 154 9,665 713 (67) 11,621 3,409 (3,409) 11,621 Total assets 87,181 24,443 49,137 1,422 (67) 162,116 7,235 (3,409) 165,942 Shareholders' equity — — 14,407 1,058 — 15,465 1,495 — 16,960 Non-controlling interests — — 43 124 — 167 — — 167 Total equity — — 14,450 1,182 — 15,632 1,495 — 17,127 Contract liabilities and unallocated surplus of with-profits funds 77,687 22,842 25,229 — — 125,758 — — 125,758 Core structural borrowings — — — — — — 4,261 — 4,261 Operational borrowings 118 — 86 15 — 219 596 — 815 Other liabilities note (viii) 9,376 1,601 9,372 225 (67) 20,507 883 (3,409) 17,981 Total liabilities 87,181 24,443 34,687 240 (67) 146,484 5,740 (3,409) 148,815 Total equity and liabilities 87,181 24,443 49,137 1,422 (67) 162,116 7,235 (3,409) 165,942 31 Dec 2021 $m Asia and Africa Unallo- Elimination Insurance cated of intra-group With- Unit- Elimina- to a debtors and Group profits linked Other Eastspring tions Total segment creditors total note (i) note (i) note (i) Debt securities notes (ii)(iv) 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 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 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 137 9 105 — — 251 — — 251 Total debt securities 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 note (v) 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 note (vi) 905 911 1,444 181 — 3,441 3,729 — 7,170 Reinsurers' share of insurance contract liabilities note C3.3 225 — 9,528 — — 9,753 — — 9,753 Other assets note (vii) 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 (viii) 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. 31 Dec 2022 $m 31 Dec 2021 $m Debt securities held by consolidated investment funds 11,899 15,076 (iii) Other financial investments comprise derivative assets and deposits. (iv) 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. (v) Of the total financial investments of $ 144,048 million as at 31 December 2022 (31 December 2021: $ 168,479 million), $ 68,955 million (31 December 2021: $ 71,524 million) are expected to be recovered within one year, including equity securities and holdings in collective investment schemes. (vi) Cash and cash equivalents consist of cash at bank and in hand, deposits held at call with banks, treasury bills and other short-term highly liquid investments with less than 90 days maturity from the date of acquisition and are analysed as follows: 31 Dec 2022 $m 31 Dec 2021 $m Cash 1,878 1,902 Cash equivalents 3,636 5,268 Total cash and cash equivalents 5,514 7,170 Analysed as: Held by the Group's holding and non-regulated entities and available for general use 1,809 3,729 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 3,705 3,441 Total cash and cash equivalents 5,514 7,170 * The Group’s cash and cash equivalents are held in the following currencies as at 31 December 2022: USD 45 per cent, GBP 11 per cent, HKD 5 per cent, SGD 5 per cent, MYR 14 per cent and other currencies 20 per cent (31 December 2021: USD 59 per cent, GBP 7 per cent, HKD 3 per cent, SGD 3 per cent, MYR 9 per cent and other currencies 19 per cent). (vii) ‘Other assets’ at 31 December 2022, comprise goodwill, intangibles (including deferred acquisition costs), property, plant and equipment (see note C11), tax balances and accrued investment income and other debtors, which are analysed as follows: 31 Dec 2022 $m 31 Dec 2021 $m Interest receivable 885 872 Other accrued income 250 299 Total accrued investment income 1,135 1,171 Amounts receivable due from: Policyholders 644 686 Intermediaries — 4 Reinsurers 192 226 Other sundry debtors 858 863 Total other debtors 1,694 1,779 Total accrued investment income and other debtors 2,829 2,950 Analysed as: Expected to be settled within one year 2,700 2,761 Expected to be settled beyond one year 129 189 2,829 2,950 (viii) Within ‘Other liabilities’ at 31 December 2022 are accruals, deferred income and other liabilities of $ 8,777 million (31 December 2021: $ 7,983 million), which are analysed as follows (detailed maturity analysis is provided in note C2.3): 31 Dec 2022 $m 31 Dec 2021 $m Accruals and deferred income 539 565 Creditors arising from direct insurance and reinsurance operations 3,000 1,120 Interest payable 59 77 Funds withheld under reinsurance agreements 2,040 1,545 Other creditors 3,139 4,676 Total accruals, deferred income and other creditors 8,777 7,983 |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair value measurement | |
Fair value measurement | C2 Fair value measurement The Group uses the trade date method to account for regular purchases and sales of financial assets. The Group holds financial assets in accordance with IAS 39, whereby subject to specific criteria, financial instruments are required to be accounted for under one of the following categories: – Financial assets and liabilities at fair value through profit or loss (FVTPL): this comprises assets and liabilities designated by management as FVTPL on inception and derivatives. This includes instruments that are managed and the performance evaluated on a fair value basis, including liabilities related to net assets attributable to unit holders of consolidated investment funds and policyholder liabilities for investment contracts without discretionary participation features. All investments within this category are measured at fair value with all changes thereon being recognised in investment return in the income statement. – Financial investments on an available-for-sale (AFS) basis: this comprises assets that are designated by management as AFS and/or do not fall into any of the other categories. These assets are initially recognised at fair value plus attributable transaction costs and are subsequently measured at fair value. Interest and/or dividend income is recognised in the income statement. Unrealised gains and losses are recognised in other comprehensive income. Upon disposal or impairment, accumulated unrealised gains and losses are transferred from other comprehensive income to the income statement as realised gains or losses. Subsequent to the demerger of Jackson in September 2021, the Group has designated its retained interest in Jackson (as described in note D1.2) as AFS equity securities. – Loans and receivables: except for those designated as FVTPL or AFS, these instruments comprise non-quoted investments that have fixed or determinable payments, including loans collateralised by mortgages, deposits, loans to policyholders and other unsecured loans and receivables. These investments are initially recognised at fair value plus transaction costs. Subsequently, these instruments are carried at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset. When assets held at amortised cost are subject to impairment testing, estimated future cash flows are compared to the carrying value of the asset. The estimated future cash flows are discounted using the financial asset’s original or variable effective interest rate and exclude credit losses that have not yet been incurred. If, in subsequent periods, an impaired loan or receivable recovers in value (in part or in full) and this recovery can be objectively related to an event occurring after the impairment, then any amount determined to have been recovered is reversed through the income statement. 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 quoted market 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 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. When prices are not available from pricing services, quotes are sourced directly from brokers. Prudential seeks to obtain a number of quotes from different brokers so as to obtain the most comprehensive information available on their executability. The selected quote is the one which best represents an executable quote for the security at the measurement date. Generally, no adjustment is made to the prices obtained from independent third parties. Adjustments are made in only limited circumstances, where it is determined that the third-party valuations obtained do not reflect fair value (eg either because the value is stale and/or the values are extremely diverse in range). Securities valued in such manner are classified as level 3 where these significant inputs are not based on observable market data. 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, except for $266 million of financial assets classified as available-for-sale at 31 December 2022 (31 December 2021: $909 million), all of which (31 December 2021: $683 million) related to the Group’s retained interest in Jackson’s equity securities. All assets and liabilities held at fair value are measured on a recurring basis. As of 31 December 2022, the Group did not have any financial instruments that are measured at fair value on a non-recurring basis. Financial instruments at fair value 31 Dec 2022 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 447 3 450 Equity securities and holdings in collective investment schemes 49,725 7,130 824 57,679 Debt securities 57,215 19,736 38 76,989 Derivative assets 82 487 — 569 Derivative liabilities (778) (223) — (1,001) Total financial investments, net of derivative liabilities 106,244 27,577 865 134,686 Investment contract liabilities without discretionary participation features — (741) — (741) Net asset value attributable to unit holders of consolidated investment funds (4,193) — — (4,193) Total financial instruments at fair value 102,051 26,836 865 129,752 Percentage of total (%) 78 % 21 % 1 % 100 % Analysed by business type: Financial investments net of derivative liabilities, at fair value With-profits 65,880 14,605 748 81,233 Unit-linked 21,319 1,851 4 23,174 Non-linked shareholder-backed business 19,045 11,121 113 30,279 Total financial investments net of derivative liabilities, at fair value 106,244 27,577 865 134,686 Percentage of total (%) 78 % 21 % 1 % 100 % Total financial investments net of derivative liabilities, at fair value 106,244 27,577 865 134,686 Other financial liabilities at fair value (4,193) (741) — (4,934) Total financial instruments at fair value 102,051 26,836 865 129,752 31 Dec 2021 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on 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 $19,736 million at 31 December 2022 (31 December 2021: $22,987 million), $37 million (31 December 2021: $24 million) are valued internally. (ii) At 31 December 2022, the Group held $865 million (31 December 2021: $640 million) of net financial instruments at fair value within level 3. This represents less than 1 per cent of the total fair-valued financial assets, net of financial liabilities, for both years and comprises the following items: – Equity securities and holdings in collective investment schemes of $824 million (31 December 2021: $557 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 $41 million (31 December 2021: net asset of $63 million). Of the net financial instruments of $865 million at 31 December 2022 (31 December 2021: $640 million) referred to above: – A net asset of $752 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 $113 million (31 December 2021: $129 million) is held to support non-linked shareholder-backed business, of which $111 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 to 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: $(13) 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 2022, the transfers between levels within the portfolios were primarily transfers from level 1 to level 2 of $2,640 million (31 December 2021: $3,789 million) and transfers from level 2 to level 1 of $1,982 million (31 December 2021: $1,742 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 year (31 December 2021: $12 million) and no transfers into level 3 (31 December 2021: $30 million). 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 and end of the years shown. 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 comprises the translation of investments into the Group's presentational currency of USD. 2022 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 5 577 58 640 Total losses in income statement note (2) (31) (2) (35) Total losses recorded in other comprehensive income — (6) (3) (9) Purchases and other additions — 305 — 305 Sales — (21) — (21) Transfers out of level 3 — — (15) (15) Balance at 31 Dec 3 824 38 865 2021 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 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 31 Dec 5 577 58 640 Note Of the total net losses in the income statement of $(35) million in 2022 (2021: net gains of $2 million), $(12) million (2021: $2 million) relates to net unrealised gains and losses of financial instruments still held at the end of the year, which can be analysed as follows: 2022 $m 2021 $m Loans (2) (1) Equity securities and holdings in collective investment schemes (8) 6 Debt securities (2) (3) Total net (losses) gains (12) 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. 31 Dec 2022 $m 31 Dec 2021 $m Carrying Fair Carrying Fair value value value value Assets Loans 2,086 2,207 1,941 2,152 Liabilities Core structural borrowings of shareholder-financed businesses (4,261) (3,834) (6,127) (6,565) Operational borrowings (excluding lease liabilities) (516) (516) (514) (514) Obligations under funding, securities lending and sale and repurchase agreements (582) (582) (223) (223) Total net financial liabilities at amortised cost (3,273) (2,725) (4,923) (5,150) The fair value of the assets and liabilities in the table above, with the exception of the subordinated and senior debt issued by the parent company, has been estimated from the discounted cash flows expected to be received or paid. All the assets and liabilities in the table above have been classified within level 2 at 31 December 2022 and 2021, reflecting the observability of the inputs used to derive their fair value. The fair value of the subordinated and senior debt issued by the parent company is determined using quoted prices from independent third parties. C2.3 Additional information on financial instruments (a) Financial risk Liquidity analysis Contractual maturities of financial liabilities on an undiscounted cash flow basis The following table sets out the contractual maturities for applicable classes of financial liabilities, excluding derivative liabilities and investment contracts that are separately presented. The financial liabilities are included in the column relating to the contractual maturities of the undiscounted cash flows (including contractual interest payments) based on the earliest period in which the Group can be required to pay assuming conditions are consistent with those of year end. 31 Dec 2022 $m Contractual maturity profile for financial liabilities Total Total carrying 1 year 10-15 15-20 Over No stated undiscounted value or less 1-2 years 2-5 years 5-10 years years years 20 years maturity cash flows Core structural borrowings of shareholder-financed businesses note C5.1 4,261 509 124 370 2,598 1,024 — — 750 5,375 Lease liabilities under IFRS 16 note C5.2 299 101 76 127 28 9 — — — 341 Other operational borrowings note C5.2 516 516 — — — — — — — 516 Obligations under funding, securities lending and sale and repurchase agreements 582 582 — — — — — — — 582 Accruals, deferred income and other liabilities 8,777 6,258 — — — — — — 2,519 8,777 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 4,193 4,193 — — — — — — — 4,193 Total financial liabilities 18,628 12,159 200 497 2,626 1,033 — — 3,269 19,784 31 Dec 2021 $m Contractual maturity profile for financial liabilities Total Total carrying 1 year 10-15 15-20 Over No stated undiscounted value or less 1-2 years 2-5 years 5-10 years years years 20 years maturity cash flows Core structural borrowings of shareholder-financed businesses note C5.1 6,127 1,872 551 702 1,817 1,642 — — 750 7,334 Lease liabilities under IFRS 16 note C5.2 347 110 81 135 45 11 — — — 382 Other operational borrowings note C5.2 514 514 — — — — — — — 514 Obligations under funding, securities lending and sale and repurchase agreements 223 223 — — — — — — — 223 Accruals, deferred income and other liabilities 7,983 5,972 — — — — — — 2,011 7,983 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 5,664 5,664 — — — — — — — 5,664 Total financial liabilities 20,858 14,355 632 837 1,862 1,653 — — 2,761 22,100 Maturity analysis of derivatives The following table shows the carrying value of the gross and net derivative positions. Carrying value of net derivatives $m Net Derivative Derivative derivative assets liabilities position 31 Dec 2022 569 (1,001) (432) 31 Dec 2021 481 (262) 219 All net derivatives have been included at fair value due within one year or less, representing the basis on which they are managed (ie to manage principally asset or liability value exposures). The Group has no cash flow hedges and, in general, contractual maturities are not considered essential for an understanding of the timing of the cash flows for these instruments. Maturity analysis of investment contracts The table below shows the maturity profile for investment contracts based on undiscounted cash flow projections of expected benefit payments. Maturity profile for investment contracts $m Total Total carrying 1 year Over undiscounted value or less 1-5 years 5-10 years 10-15 years 15-20 years 20 years cash flows 31 Dec 2022 420 11 369 98 22 8 4 512 31 Dec 2021 459 14 442 63 16 6 2 543 The undiscounted cash flows in the maturity profile shown above excludes contracts which have no stated maturity but which are repayable on demand. Most investment contracts have options to surrender early, often subject to surrender or other penalties. Therefore, most contracts can be said to have a contractual maturity of less than one year, but the additional charges and term of the contracts mean these are unlikely to be exercised in practice and the more useful information is to present information on expected payment. The vast majority of the Group’s financial assets are held to back the Group’s policyholder liabilities. Although asset/liability matching is an important component of managing policyholder liabilities (both those classified as insurance and those classified as investments), this profile is mainly relevant for managing market risk rather than liquidity risk. Within each business unit, this asset/liability matching is performed on a portfolio-by-portfolio basis. In terms of liquidity risk, a large proportion of the policyholder liabilities contain discretionary surrender values or surrender charges, meaning that many of the Group’s liabilities are expected to be held for the long term. Much of the Group’s investment portfolios are in marketable securities, which can therefore be converted quickly to liquid assets. For the reasons provided above, an analysis of the Group’s assets by contractual maturity is not considered meaningful to evaluate the nature and extent of the Group’s liquidity risk. Credit risk The Group’s maximum exposure to credit risk of financial instruments before any allowance for collateral or allocation of losses to policyholders is represented by the carrying value of financial instruments on the balance sheet that have exposures to credit risk comprising cash and cash equivalents, deposits, debt securities, loans and derivative assets, accrued investment income and other debtors. Further details of collateral in place in relation to derivatives, securities lending, repurchase and reverse repurchase agreements and other transactions are provided in note (c) below. The Group’s exposure to credit risk is further discussed in the Risk review report. Of the total loans and receivables held at 31 December 2022, $6 million (31 December 2021: $7 million) are past their due date but are not impaired, of which $1 million are less than one year past their due date (31 December 2021: $2 million). The Group expects full recovery of these loans and receivables. There are no financial assets that would have been past due or impaired had the terms not been renegotiated in both years. In addition, the Group did not take possession of any other collateral held as security in both years. Foreign exchange risk As at 31 December 2022, the Group held 27 per cent (31 December 2021: 26 per cent) of its financial assets and 64 per cent (31 December 2021: 63 per cent) of its financial liabilities in currencies mainly USD, other than the functional currency of the relevant business units or the currency to which the functional currency is pegged (eg financial assets and liabilities of USD denominated business in Hong Kong). The exchange risks inherent in these exposures are mitigated through the use of derivatives, mainly forward currency contracts and currency swaps as described in note (b) below. The amount of exchange gain recognised in the income statement in 2022, except for those arising on financial instruments measured at fair value through profit or loss, is $234 million (2021: loss of $(132) million). (b) Derivatives and hedging Derivative financial instruments are used to reduce or manage investment, interest rate and currency exposures, to facilitate efficient portfolio management and for investment purposes. The Group does not regularly seek to apply fair value or cash flow hedging treatment under IAS 39. The Group has no net investment, fair value or cash flow hedges under IAS 39 at 31 December 2022 and 2021. All derivatives that are not designated as hedging instruments are carried at fair value, with movements in fair value being recorded in the income statement. Embedded derivatives are embedded within other non-derivative host financial instruments and insurance contracts to create hybrid instruments. Embedded derivatives meeting the definition of an insurance contract are accounted for under IFRS 4. Where economic characteristics and risks of the embedded derivatives are not closely related to the economic characteristics and risks of the host instrument, and where the hybrid instrument is not measured at fair value with the changes in fair value recognised in the income statement, the embedded derivative is required to be bifurcated and carried at fair value as a derivative measured in accordance with IAS 39. In addition, the Group applies the option under IFRS 4 to not separate and fair value surrender options embedded in host contracts and with-profits investment contracts whose strike price is either a fixed amount or a fixed amount plus interest. Derivatives held and their purpose The Group enters into a variety of exchange traded and over-the-counter derivative financial instruments, including futures, options, forward contracts, swaps and swaptions. All over-the-counter derivative transactions are conducted under standardised ISDA (International Swaps and Derivatives Association Inc) master agreements and collateral agreements are in place between the individual entities and relevant counterparties under each of these market master agreements. Derivatives are used for efficient portfolio management to obtain cost effective and management of exposure to various markets in accordance with the Group’s investment strategies and to manage exposure to interest rate, currency, credit and other business risks. The Group also uses interest rate derivatives to reduce exposure to interest rate volatility. (c) Derecognition, collateral and offsetting Derecognition of financial assets and liabilities The Group’s policy is to derecognise financial assets when it is deemed that substantially all the risks and rewards of ownership have been transferred. The Group derecognises financial liabilities only when the obligation specified in the contract is discharged, cancelled or has expired. Reverse repurchase agreements The Group is party to various reverse repurchase agreements under which securities are purchased from third parties with an obligation to resell the securities. The securities are not recognised as investments in the statement of financial position but the right to receive the cash paid is recognised as deposits. The Group has entered into reverse repurchase transactions under which it purchased securities and had taken on the obligation to resell the securities. At 31 December 2022, the fair value of the collateral held in respect of these transactions, which is represented by the purchased securities, was $3,244 million (31 December 2021: $2,149 million). Securities lending and repurchase agreements The Group is also party to various securities lending agreements (including repurchase agreements) under which securities are loaned to third parties on a short-term basis. The loaned securities are not derecognised; rather, they continue to be recognised within the appropriate investment classification. To the extent cash collateral is received it is recognised on the statement of financial position with the obligation to repay the cash paid recognised as a liability. Other collateral is not recognised. At 31 December 2022, the Group had $1,571 million (31 December 2021: $854 million) of lent securities and assets subject to repurchase agreements. The cash and securities collateral held or pledged under such agreements were $1,679 million (31 December 2021: $913 million). Collateral and pledges under derivative transactions At 31 December 2022, the Group had pledged $62 million (31 December 2021: $99 million) for liabilities and held collateral of $234 million (31 December 2021: $50 million) in respect of over-the-counter derivative transactions. These transactions are conducted under terms that are usual and customary to collateralised transactions including, where relevant, standard securities lending and repurchase agreements. The Group has entered into collateral arrangements in relation to over-the-counter derivative transactions, which permit sale or re-pledging of underlying collateral. The Group has not sold any collateral held or re-pledged any collateral. All over-the-counter derivative transactions are conducted under standardised International Swaps and Derivatives Association (ISDA) master agreements. The collateral management for these transactions is conducted under the usual and customary terms and conditions set out in the Credit Support Annex to the ISDA master agreement. Offsetting assets and liabilities The Group’s derivative instruments, repurchase agreements and securities lending agreements are subject to master netting arrangements and collateral arrangements. A master netting arrangement with a counterparty creates a right of offset for amounts due to and due from that same counterparty that is enforceable in the event of a default or bankruptcy. The Group recognises amounts subject to master netting arrangements on a gross basis within the consolidated balance sheets. The following tables present the gross and net information about the Group’s financial instruments subject to master netting arrangements: 31 Dec 2022 $m Gross amount Related amounts not offset included in the in the balance sheet balance Financial Cash Securities sheet instruments collateral collateral Net amount note (i) note (ii) note (iii) note (iv) Financial assets: Derivative assets 457 (179) (217) — 61 Reverse repurchase agreements 3,174 — — (3 |
Policyholder liabilities and un
Policyholder liabilities and unallocated surplus | 12 Months Ended |
Dec. 31, 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 year. The items are shown gross of external reinsurance. With- Shareholder-backed business Total profits Unit-linked Other business liabilities business $m $m $m $m At 1 Jan 2021 86,410 32,506 46,639 165,555 Comprising: - Policyholder liabilities on the balance sheet (excludes $296,513 million from discontinued US operations) 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 1,990 3,038 2,172 7,200 In-force 7,096 2,406 5,286 14,788 9,086 5,444 7,458 21,988 Surrenders notes (iii)(iv) (844) (3,326) (734) (4,904) Maturities/deaths/other claim events (2,116) (215) (1,123) (3,454) Net flows 6,126 1,903 5,601 13,630 Shareholders’ transfers post-tax (134) — — (134) Investment-related items and other movements note (v) 2,499 897 (3,505) (109) Foreign exchange translation differences note (vi) (899) (550) (239) (1,688) At 31 Dec 2021/1 Jan 2022 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 2,244 1,838 2,697 6,779 In-force 5,809 2,404 5,623 13,836 8,053 4,242 8,320 20,615 Surrenders notes (iii)(iv) (1,233) (2,763) (677) (4,673) Maturities/deaths/other claim events (2,103) (200) (1,712) (4,015) Net flows 4,717 1,279 5,931 11,927 Shareholders' transfers post-tax (158) — — (158) Investment-related items and other movements note (v) (20,677) (2,802) (14,623) (38,102) Foreign exchange translation differences note (vi) (197) (1,836) (2,181) (4,214) At 31 Dec 2022 77,687 31,397 37,623 146,707 Comprising: - Policyholder liabilities on the balance sheet 74,192 22,842 25,229 122,263 - Unallocated surplus of with-profits funds on the balance sheet note (i) 3,495 — — 3,495 - Group's share of policyholder liabilities relating to joint ventures and associates note(ii) — 8,555 12,394 20,949 Average policyholder liability balances note (vii) 2022 81,405 33,076 43,060 157,541 2021 84,905 33,631 47,568 166,104 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) is 4.1 per cent in 2022 (2021: 5.1 per cent). (v) Investment-related items and other movements in 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 , primarily in Hong Kong and Singapore with profits-fund. 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 year have been translated at the average exchange rates for the year. The closing balance has been translated at the closing spot rates as at 31 December. 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 relevant corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds. (b) Duration of policyholder liabilities The table below shows the carrying value of policyholder liabilities and the maturity profile of the cash flows on a discounted basis, taking account of expected future premiums and investment returns: 31 Dec 2022 $m 31 Dec 2021 $m Policyholder liabilities 122,263 151,915 Expected maturity: 31 Dec 2022 % 31 Dec 2021 % 0 to 5 years 22 20 5 to 10 years 18 18 10 to 15 years 14 15 15 to 20 years 11 12 20 to 25 years 10 10 Over 25 years 25 25 (c) Policyholder liabilities and unallocated surplus by operating segment The table below shows the policyholder liabilities and unallocated surplus, excluding joint ventures and associates and net of external reinsurance, by segment: 31 Dec 2022 $m 31 Dec 2021 $m Hong Kong 60,880 79,363 Indonesia 3,648 4,257 Malaysia 8,231 8,660 Singapore 31,197 34,361 Growth markets and other 18,995 20,905 Total segment 122,951 147,546 C3.2 Reconciliation of gross and reinsurers’ share of policyholder liabilities and unallocated surplus Claims paid include maturities, annuities, surrenders, deaths and other claim events. Maturity claims are recorded as charges on the policy maturity date. Annuity claims are recorded when each annuity instalment becomes due for payment. Surrenders are charged to the income statement when paid. Death and other claims are generally recorded when notified with additional contract liabilities held, where appropriate, for ‘incurred but not reported’ (IBNR) claims. Further analysis of the movement in the year 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: Reinsurers’ Gross share of Unallocated insurance insurance Investment surplus of contract contract contract with-profits liabilities liabilities liabilities funds $m $m $m $m At 1 Jan 2021 (436,787) 46,595 (4,459) (5,217) Removal of discontinued US operations note (i) 293,325 (35,232) 3,188 — Income (expense) included in the income statement notes (i)(iii) (9,082) (1,552) 189 (202) Other movements note(ii) — — (75) — Foreign exchange translation differences 1,789 (58) (3) 35 Balance at 31 Dec 2021/1 Jan 2022 (150,755) 9,753 (1,160) (5,384) Income (expense) included in the income statement notes (i),(iii) 27,252 (6,908) 88 1,868 Other movements note(ii) — — (26) — Foreign exchange translation differences 2,290 (38) 48 21 At 31 Dec 2022 (121,213) 2,807 (1,050) (3,495) Notes (i) The total charge for benefits and claims 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 $ (9,343) million in the year (2021: $ (8,845) million) and claim amounts attributable to reinsurers of $ 740 million (2021: $581 million). Claims incurred, net of reinsurance, shown in the segment analysis of benefits and claims items below include claims paid and movement in claims outstanding payables, net of reinsurance, in the year. (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. (iii) The 2021 movement in the gross contract liabilities included $ 160 million for the impact of a change to allow for illiquidity premium in the calculation of the valuation interest rate (VIR) used to value long-term insurance liabilities in Thailand. The 2022 movement in the gross contract liabilities and reinsurers’ share of insurance contract liabilities included the impact from the early adoption of the Hong Kong Risk-Based Capital Regime as discussed below. 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. 2022 $m Growth Hong markets Total Kong Indonesia Malaysia Singapore and other segment Claims incurred, net of reinsurance (2,033) (1,228) (1,070) (2,718) (1,768) (8,817) Decrease in policyholder liabilities, net of reinsurance 15,643 270 (135) 3,189 1,679 20,646 Movement in unallocated surplus of with-profits funds 1,815 — 53 — — 1,868 Benefits and claims and movement in unallocated surplus, net of reinsurance 15,425 (958) (1,152) 471 (89) 13,697 2021 $m Growth Hong markets Total Kong Indonesia Malaysia Singapore and other segment Claims incurred, net of reinsurance (1,687) (1,184) (1,015) (3,037) (1,590) (8,513) (Increase) decrease in policyholder liabilities, net of reinsurance (6,088) 167 (260) (2,856) (1,159) (10,196) Movement in unallocated surplus of with-profits funds (250) — 48 — — (202) Benefits and claims and movement in unallocated surplus, net of reinsurance (8,025) (1,017) (1,227) (5,893) (2,749) (18,911) 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 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 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’. C3.3 Reinsurers’ share of insurance contract liabilities The measurement of reinsurance assets is consistent with the measurement of the underlying direct insurance contracts. The treatment of any gains or losses arising on the purchase of reinsurance contracts is dependent on the underlying accounting basis of the entity concerned. 31 Dec 2022 $m 31 Dec 2021$m Insurance contract liabilities 2,592 9,550 Claims outstanding 215 203 Total operations 2,807 9,753 The Group cedes certain business to other insurance companies. Although the ceding of insurance does not relieve the Group from its liability to its policyholders, the Group participates in such agreements largely for the purpose of managing its loss exposure. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk from similar geographic regions, activities or economic characteristics of the reinsurers to minimise its exposure from reinsurer insolvencies. Of the reinsurers’ share of insurance contract liabilities balance of $2,807 million at 31 December 2022 (31 December 2021: $9,753 million), 98 per cent (31 December 2021: 99 per cent) was from reinsurers with rating A- and above by Standard & Poor’s or other external rating agencies. The reinsurers’ share of insurance contract liabilities primarily relates to protection business written in Hong Kong. The year-on-year movement in the reinsurers’ share of insurance contract liabilities included the impact from the early adoption of the Hong Kong Risk-Based Capital Regime as discussed above in note C3.2. The Group’s Hong Kong business cedes insurance risk to limit exposure to underwriting losses under various agreements that cover individual risks, group risks or defined blocks of business, on a co-insurance, surplus, quota share, or catastrophe excess of loss basis. The amount of each risk retained depends on the evaluation of the specific risk, subject to certain circumstances, to maximum limits based on characteristics of coverage. Net commissions received during 2022 on ceded business totalled $216 million (2021: $285 million) and claims incurred ceded to external reinsurers totalled $766 million (2021: $604 million). There was $1 million (2021: $3 million) of deferred gains in the year. C3.4 Products and determining contract liabilities IFRS 4 requires contracts written by insurers to be classified as either ‘insurance’ contracts or ‘investment’ contracts. The classification of the contract determines its accounting. Contracts that transfer significant insurance risk to the Group are classified as insurance contracts. This judgement is applied in considering whether the material features of a contract gives rise to the transfer of significant insurance risk, which is made at the point of contract inception and not revisited. For the majority of the Group’s contracts, classification is based on a readily identifiable scenario that demonstrates a significant difference in cash flows if the covered event occurs (as opposed to does not occur) reducing the level of judgement involved. Contracts that transfer financial risk to the Group but not significant insurance risk are classified as investment contracts. Insurance contracts and investment contracts with discretionary participation features are accounted for under IFRS 4. Investment contracts without such discretionary participation features are accounted for as financial instruments under IAS 39. Investment contracts without discretionary participation features are measured in accordance with IAS 39 to reflect the deposit nature of the arrangement, with premiums and claims reflected as deposits and withdrawals, and taken directly to the statement of financial position as movements in the financial liability balance. Investment contracts without fixed and guaranteed terms are classified as financial instruments and designated as FVTPL because the resulting liabilities are managed and their performance is evaluated on a fair value basis. Where the contract includes a surrender option, its carrying value is subject to a minimum carrying value equal to its surrender value. Other investment contracts are measured at amortised cost. The table below provides description of material feature of each of the products listed above, together with how their contract liabilities are determined. Contract type Description and material features Determination of liabilities With-profits and participating contracts Provides savings and/or protection where the basic sum assured can be enhanced by a profit share (or bonus) from the underlying fund as determined at the discretion of the business unit. Participating products often offer a guaranteed maturity or surrender value. Declared regular bonuses are guaranteed once vested. Future bonus rates and cash dividends are not guaranteed. Market value adjustments and surrender penalties are used for certain products where the law permits such adjustments. Guarantees are predominantly supported by the segregated funds and their estates. As explained in note A3.1, with-profits contracts are predominantly sold in Hong Kong, Malaysia and Singapore. The total value of the with-profits funds is driven by the underlying asset valuation with movements reflected principally in the accounting value of policyholder liabilities and unallocated surplus. 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. Unit-linked Combines savings with protection, the cash value of the policy primarily depends on the value of the underlying unitised funds. The attaching liabilities largely reflect the unit value obligation driven by the value of the investments of the unit fund. Additional contract liabilities are held for guaranteed benefits beyond the unit fund value, generally using a gross premium valuation method, as discussed below for health and protection business. These additional provisions are recognised as a component of other business liabilities. Health and protection Health and protection features are offered as supplements to the products listed above or sold as standalone products. Protection covers mortality and/or morbidity benefits including health, disability, critical illness and accident coverage. The approach to determine the contract liabilities is generally driven by the local solvency basis. The discount rates used to determine the contract liabilities are derived in line with the measurement basis applied in each business unit and are generally based on the risk-free rates applicable to the underlying contracts, including appropriate margins. A gross premium valuation (GPV) method is typically used in those local businesses where a risk-based capital framework is adopted for local solvency. Under the GPV method, all cash flows are valued explicitly using best estimate assumptions with a suitable margin for prudence. Contract type Description and material features Determination of liabilities This is achieved either through adding an explicit allowance above best estimate to the assumptions, or by applying an overlay constraint such that on day one no negative reserves (ie where future premium inflows are expected to exceed future claims and outflows) are derived at an individual policyholder level, or at a product/fund level, or a combination of both. The margin for prudence is released to profit over the life of the contract. Best estimate assumptions are reviewed annually with reference to experience and expectations around the short-term nature of any change (for example increases or decreases in claims levels as a result of Covid-19). Any changes made to best estimate impact the prudence mechanisms described above and, as a consequence, IFRS profit tends to be relatively insensitive to assumption changes made in any given year. Prior to the adoption of the new HK RBC regime in 2022, the Hong Kong business unit applied a net premium valuation method (NPV) to determine the future policyholder benefit provisions, subject to minimum floors at the policyholder’s asset share or guaranteed cash surrender value as appropriate. Upon the adoption of the HK RBC regime, the gross premium valuation method (including an allowance for the uncertainty of non-hedgeable risks), subject to minimum floors is applied. For India and Taiwan, US GAAP is applied for measuring insurance liabilities. For these businesses, the future policyholder benefit provisions for non-linked business are determined using the net level premium method, with an allowance for surrenders, maintenance and claims expenses. In Vietnam, an estimation basis to determine the contract liabilities is aligned substantially to that used by the business units applying the GPV method. Non-participating term contracts, whole life and endowment assurance Non-participating savings and/or protection where the benefits are guaranteed, determined by a set of defined market-related parameters, or determined at the discretion of the business unit. These products often offer a guaranteed maturity and/or surrender value. It is common for regulations or market-driven demand and competition to provide some form of capital value protection and minimum crediting interest rate guarantees. This is reflected within the guaranteed maturity and surrender values. Guarantees are supported by shareholders. The approach to determining the contract liabilities is generally driven by the local solvency basis, as discussed for health and protection business above. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets | |
Intangible assets | C4 Intangible assets C4.1 Goodwill Business combination Business acquisitions are accounted for by applying the purchase method of accounting, which adjusts the net assets of the acquired company to fair value at the date of purchase. The excess of the acquisition consideration over the fair value of the assets and liabilities of the acquired business is recorded as goodwill. The Group chooses the full goodwill method or the partial goodwill method to calculate goodwill on an acquisition by acquisition basis. Expenses related to acquiring new subsidiaries are charged to the income statement in the period in which they are incurred and not included in goodwill. Income and expenses of acquired businesses are included in the income statement from the date of acquisition. Where the Group writes a put option, which if exercised triggers the purchase of non-controlling interests as part of its business acquisition, the put option is recognised as a financial liability at the acquisition date. Where risks and rewards remain with the non-controlling interests, a corresponding amount is deducted from equity. Any subsequent changes to the carrying amount of the put option liability are also recognised within equity. Goodwill Goodwill is capitalised and carried on the Group consolidated statement of financial position as an intangible asset at initial value less any accumulated impairment losses. Goodwill impairment testing is conducted annually and when there is an indication of impairment. Goodwill shown on the consolidated statement of financial position at 31 December 2022 represents amounts allocated to business units in respect of both acquired asset management and life businesses. There has been no impairment as at 31 December 2022 and 2021. 2022 $m 2021 $m Carrying value at 1 Jan 907 961 Exchange differences (17) (54) Carrying value at 31 Dec 890 907 Impairment testing Goodwill does not generate cash flows independently of other groups of assets and thus is assigned to cash-generating units for the purposes of impairment testing. These cash-generating units (CGUs) are based upon how management monitors the business and represent the lowest level to which goodwill can be allocated on a reasonable basis. Of the carrying value at 31 December 2022, $445 million (31 December 2021: $465 million) relates to asset management business in Thailand and $234 million (31 December 2021: $233 million) relates to the acquisition of UOB Life in Singapore. Other goodwill amounts are allocated across CGUs, which are not individually material. Goodwill is tested for impairment by comparing the CGU’s carrying amount, including any goodwill, with its recoverable amount. The Group’s methodology of assessing whether goodwill may be impaired for acquired life and asset management operations is discussed below. For acquired life businesses, the Group routinely compares the aggregate of net asset value and acquired goodwill on an IFRS basis of the acquired life business with the value of the current in-force business as determined using the EEV methodology. Any excess of IFRS value over EEV carrying value is then compared with EEV basis value of current and projected future new business to determine whether there is any indication that the goodwill in the IFRS statement of financial position may be impaired. The methodology and assumptions underpinning the Group’s EEV basis of reporting are included in the EEV basis supplementary information in this Annual Report. The goodwill in respect of asset management businesses comprises mainly the goodwill arising from the acquisition of Thanachart Fund Management Co., Ltd in 2019 and TMB Asset Management Co., Ltd in Thailand in 2018. The goodwill impairment testing for these businesses is prepared as a single CGU reflecting that these businesses are managed together. The recoverable amount of these businesses has been determined by calculating the value in use of combined business calculated using a discounted cash flow valuation. For the combined Thailand asset management business, the valuation is based on a number of key assumptions as follows : – Cash flow projections based on the latest five-year business plan/forecast; – A constant growth rate of 3.5 per cent (2021: 2.3 per cent) on forecast cash flows beyond the terminal year of the cash flow projection period; – The risk discount rate applied in accordance with the nature of the businesses. The pre-tax discount rate applied is 9.0 per cent (2021: 9.0 per cent); and – The continuation of asset management contracts on similar terms. The key assumptions used in the impairment testing, including the cash flow projections, are subject to fluctuations in the external market and economic conditions. The recent adverse conditions had contributed to reduced cash flow projections leading to a fall in the headroom in comparison to the prior year. While management believes that any reasonable change in each of the key assumptions would not cause the recoverable amount of the asset management businesses acquired to fall below its carrying amount, a more significant adverse change in the key assumptions applied concurrently could lead to impairment charges. C4.2 Deferred acquisition costs and other intangible assets Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. DAC are accounted for as described in note A3.1(c). Other intangible assets, such as distribution rights and software, are valued initially at the price paid to acquire or cost to develop them and are subsequently carried at cost less amortisation and any accumulated impairment losses. For intangibles other than DAC, amortisation follows the pattern in which the future economic benefits are expected to be consumed. If the pattern cannot be determined reliably, a straight-line method is applied. For software, the amortisation generally represents the licence period of the software acquired. Amortisation of intangible assets is charged to the ‘acquisition costs and other expenditure’ line in the Consolidated income statement. Impairment testing is conducted when there is an indication of impairment. 31 Dec 2022 $m 31 Dec 2021 $m Shareholder-backed business: DAC related to insurance contracts as classified under IFRS 4 3,215 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 3,254 2,815 Distribution rights 3,630 3,782 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 17 28 Other intangibles 209 184 Present value of acquired in-force and other intangibles 3,856 3,994 Total of DAC and other intangible assets attributable to shareholders 7,110 6,809 Other intangible assets, including computer software, attributable to with-profits funds 45 49 Total of deferred acquisition costs and other intangible assets 7,155 6,858 (a) Movement in DAC and other intangible assets attributable to shareholders 2022 $m 2021 $m PVIF and Distribution other DAC rights intangibles Total Total note (i) notes (ii)(iii) Balance at 1 Jan 2,815 3,782 212 6,809 20,275 Removal of discontinued US operations — — — — (13,881) Additions 1,002 206 76 1,284 1,185 Amortisation to the income statement (475) (301) (50) (826) (651) Disposals and transfers — — (5) (5) (7) Exchange differences and other movements (88) (57) (7) (152) (112) Balance at 31 Dec 3,254 3,630 226 7,110 6,809 Notes (i) 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. (ii) All of the net PVIF balances relate to insurance contracts. The PVIF attaching to investment contracts have been fully amortised. (iii) Other intangibles comprise other intangible assets such as software rights. Software rights include additions of $ 58 million, amortisation of $ (24) million, disposals of $ (3) million, foreign exchange of $( 7 ) million and closing balance at 31 December 2022 of $ 138 million (31 December 2021: $ 114 million). (b) Movement in DAC related to insurance and investment contracts 2022 $m 2021 $m Insurance Investment Insurance Investment contracts contracts contracts contracts note note Balance at 1 Jan 2,776 39 16,182 34 Removal of discontinued US operations — — (13,863) — Additions 993 9 841 7 Amortisation (470) (5) (339) (4) Exchange differences and other movements (84) (4) (45) 2 Balance at 31 Dec 3,215 39 2,776 39 Note The carrying amount of the DAC balance relating to investment contracts comprises the following gross and accumulated amortisation amounts: 31 Dec 2022 $m 31 Dec 2021 $m Gross amount 59 55 Accumulated amortisation (20) (16) Carrying amount 39 39 (c) Movement in PVIF and other intangibles attributable to shareholders 2022 $m 2021 $m Other Other intangibles intangibles Distribution (including Distribution (including PVIF rights software) Total PVIF rights software) Total Balance at 1 Jan Cost 140 5,037 313 5,490 177 4,845 424 5,446 Accumulated amortisation (112) (1,255) (129) (1,496) (143) (994) (250) (1,387) 28 3,782 184 3,994 34 3,851 174 4,059 Removal of discontinued US operations — — — — — — (18) (18) Additions — 206 76 282 — 260 77 337 Amortisation charge (10) (301) (40) (351) (5) (268) (35) (308) Disposals and transfers — — (5) (5) — — (7) (7) Exchange differences and other movements (1) (57) (6) (64) (1) (61) (7) (69) Balance at 31 Dec 17 3,630 209 3,856 28 3,782 184 3,994 Comprising: Cost 134 5,176 373 5,683 140 5,037 313 5,490 Accumulated amortisation (117) (1,546) (164) (1,827) (112) (1,255) (129) (1,496) 17 3,630 209 3,856 28 3,782 184 3,994 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings. | |
Borrowings | C5 Borrowings Although initially recognised at fair value (net of transaction costs), borrowings are subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds (net of related issue costs) is amortised through the income statement to the date of maturity or, for hybrid debt, over the expected life of the instrument. C5.1 Core structural borrowings of shareholder-financed businesses 31 Dec 2022 $m 31 Dec 2021 $m Subordinated debt: US $1,000 m 5.25% Notes note (i) — 1,000 US $725 m 4.375% Notes note (ii) — 725 US $750 m 4.875% Notes 750 748 €20 m Medium Term Notes 2023 21 23 £435 m 6.125% Notes 2031 520 584 US $1,000 m 2.95% Notes 2033 995 995 Senior debt: note (iii) £300 m 6.875% Notes 2023 note (iv) 361 404 £250 m 5.875% Notes 2029 281 313 US $1,000 m 3.125% Notes 2030 987 985 US $350 m 3.625% Notes 2032 note (v) 346 — Bank loans: US $350 m Loan 2024 note(v) — 350 Total core structural borrowings of shareholder-financed businesses 4,261 6,127 Notes (i) The US$ 1,000 million notes were redeemed on 20 January 2022 using the proceeds from the issuance of ordinary shares during 2021 as discussed in note C8. (ii) The US $725 million notes were redeemed on 20 January 2022 using the proceeds from the US$ 1,000 million subordinated debt issued in November 2021. (iii) The senior debt ranks above subordinated debt in the event of liquidation. (iv) The £300 million notes were redeemed on 20 January 2023. (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 US$ 346 million, which was used to redeem the US$ 350 million bank loan in May 2022. C5.2 Operational borrowings 31 Dec 2022 $m 31 Dec 2021 $m Shareholder-financed business: Borrowings in respect of short-term fixed income securities programmes – commercial paper 501 500 Lease liabilities under IFRS 16 185 209 Other borrowings 11 10 Operational borrowings attributable to shareholder-financed businesses 697 719 With-profits business: Lease liabilities under IFRS 16 114 138 Other borrowings 4 4 Operational borrowings attributable to with-profits businesses 118 142 Total operational borrowings 815 861 |
Risk and sensitivity analysis
Risk and sensitivity analysis | 12 Months Ended |
Dec. 31, 2022 | |
Risk and sensitivity analysis | |
Risk and sensitivity analysis | C6 Risk and sensitivity analysis Group overview The Group’s risk framework and the management of risks attaching to the Group’s consolidated financial statements including financial assets, financial liabilities and insurance liabilities, together with the inter-relationship with the management of capital, have been included in the audited sections of the Risk review report. The financial and insurance assets and liabilities on the Group’s statement of financial position are, to varying degrees, subject to market and insurance risk and other changes of experience assumptions that may have a material effect on IFRS basis profit or loss and shareholders’ equity. The market and insurance risks and also ESG-related risks, including how they affect Group’s operations and how these are managed are discussed in the Risk review report referred to above. The ESG-related risks discussed in the Risk review report include in particular the potential long-term impact of environmental risks associated with climate change (including physical and transition risks) on the Group’s investments and liabilities. During 2022, the Group continued developing its scenario testing approach for climate change and applied three commonly used scenarios of plausible global responses to climate change to identify risks over the short, medium and long term. Each scenario is translated into potential sensitivities to economic factors, using third party calibrated inputs, which have then been applied during the year to the Group’s starting assets and liabilities to quantify possible future impacts thereon. Though the Group remains exposed to financial impact from plausible global responses addressing climate change, the results for each scenario are not outside observed market volatility experienced and therefore do not indicate the need for explicit allowance for climate change within the current valuations. In addition, given the nature of the business, the impact of climate change does not directly alter the Group’s assumptions for claims and lapses for its insurance business based on the annual review of experience. If experience or exposure changes, for example due to a step change in long-term morbidity and/or mortality expectations in a particular region due to climate events, the financial impacts from climate-related risks on our insurance liabilities could be more significant and would be allowed for as part of the regular review. The most significant market and credit risks that the IFRS shareholders’ profit or loss and shareholders’ equity for the Group’s life assurance business are sensitive to, are shown in the following tables. The distinction between direct and indirect exposure is not intended to indicate the relative size of the sensitivity. In addition, insurance businesses are sensitive to mortality and/or morbidity risk as well as persistency risk depending on the products sold. Type of business Market and credit risk With-profits business Net neutral direct exposure (indirect exposure to investment performance, which is subject to smoothing through declared bonuses) Unit-linked business Net neutral direct exposure (indirect exposure to investment performance, through asset management fees) Non-participating business Asset/liability mismatch risk which results in sensitivity to interest rates and credit spreads, particularly for operations where the insurance liability basis is sensitive to current market movements Profit and shareholders’ equity are also sensitive to the impact of current market movements on assets held in excess of non-participating policyholder liabilities Indirect exposure to investment performance through policyholder charges and guarantees in some cases Sensitivity analyses of IFRS shareholders’ equity to key market and other risks for the insurance operations are provided in section C6.1 below. The sensitivity analyses provided show the effect on shareholders’ equity to changes in the relevant risk variables, all of which are considered to be reasonably possible at the relevant balance sheet date. The sensitivity of the Group’s Eastspring and central operations to market risks is discussed in section C6.2. The Group benefits from diversification benefits achieved through the geographical spread of the Group’s operations and, within those operations, through a broad mix of product types. These benefits are not reflected in the simplified sensitivities below. Relevant correlation factors include: – – The geographical diversity of the Group’s business means that it has some exposure to the risk of foreign exchange rate fluctuations. The Group has no exposure to currency fluctuation from business units that operate in USD, or currencies pegged to the USD (such as HKD), and reduced exposure to currencies partially managed to the USD within a basket of currencies (such as SGD). Sensitivities to exchange rate movements in the Group’s key markets are therefore expected to be limited. C6.1 Insurance operations (a) Sensitivity to key market risks The table below shows the sensitivity of shareholders' equity as at 31 December 2022 and 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. Credit risk sensitivities, such as the impact on the value of debt securities and policyholder liabilities from movements in credit spreads are not presented below. 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 31 Dec 2022 $m 31 Dec 2021 $m Shareholders' equity of insurance operations 14,407 14,289 Sensitivity to key market risks: note Interest rates and consequential effects – 1% increase (386) (796) Interest rates and consequential effects – 0.5% decrease (122) 137 Equity/property market values – 10% rise 190 372 Equity/property market values – 20% fall (729) (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. Changes to the results of the Africa insurance operations from interest rate or equity rate changes would not materially impact the Group. 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: – Taiwan and India businesses 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 reflect 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. Under a 0.5% decrease interest rate scenario although in the majority of operations asset gains exceed the increase in liabilities, there are a number of operations where the increase in liabilities dominates, driven by an increase in the value of policyholder guarantees, hence this results in an overall small negative impact of an instantaneous decrease of rates at 31 December 2022. 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. (b) Sensitivity to insurance risk For insurance operations, adverse persistency experience can impact the IFRS profitability of certain types of business written. This risk is managed at a business unit level through regular monitoring of experience and the implementation of management actions as necessary. These actions could include product enhancements, increased management focus on premium collection, as well as other customer retention efforts. The potential financial impact of lapses is often mitigated through the specific features of the products, eg surrender charges, or through the availability of premium holiday or partial withdrawal policy features. The reserving basis, as discussed in note A3.1(a) and C3.4, is generally such that a change in lapse assumptions has an immaterial effect on immediate profitability. Many of the business units are exposed to mortality and morbidity risk and a provision is made within policyholder liabilities to cover the potential exposure. If all these assumptions were strengthened by 5 per cent then it is estimated that profit after tax and shareholders ’ equity would decrease by approximately $(101) million ( 2021 : $(108) million), before consideration of other reserving adjustments eg a corresponding release of margin for prudence. Weakening these assumptions by 5 per cent would have a similar opposite impact. C6.2 Eastspring and central operations The profit for the year 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 C1). Eastspring’s profit will therefore have some exposure to the market movements of these investments. At 31 December 2022, the Group’s central operations held a 9.2 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 $266 million at 31 December 2022 (31 December 2021: $683 million). If the value of these securities decreased by 20 per cent, the change in valuation would be $(53) million (31 December 2021: $(137) comprehensive income outside |
Tax assets and liabilities
Tax assets and liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Tax assets and liabilities | |
Tax assets and liabilities | C7 Tax assets and liabilities Accounting policies on deferred tax are included in note B3. C7.1 Current tax At 31 December 2022, of the $ 18 million (31 December 2021: $20 million) current tax recoverable, the majority is expected to be recovered within 12 months after the reporting period. At 31 December 2022, the current tax liability from operations of $ 208 million (31 December 2021: $185 million) includes $ 79 million (31 December 2021: $42 million) of provisions for uncertain tax matters. Further detail is provided in note B3.2. C7.2 Deferred tax The statement of financial position contains the following deferred tax assets and liabilities in relation to: 2022 $m Other movements including Movement in foreign Balance income exchange Balance at 1 Jan statement movements at 31 Dec Deferred tax assets Unrealised losses or gains on investments 3 317 (178) 142 Balances relating to investment and insurance contracts 34 1 (33) 2 Short-term temporary differences 162 (15) (12) 135 Unused tax losses 67 (32) (4) 31 Total deferred tax assets 266 271 (227) 310 Deferred tax liabilities Unrealised losses or gains on investments (242) 44 185 (13) Balances relating to investment and insurance contracts (2,125) (228) 47 (2,306) Short-term temporary differences (495) (81) 23 (553) Total deferred tax liabilities (2,862) (265) 255 (2,872) 2021 $m Other movements including Removal of Movement in foreign Balance discontinued income exchange Balance at 1 Jan US operations statement movements at 31 Dec 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) At 31 December 2022, no deferred tax asset has been recognised in respect of unused tax losses and temporary deductible differences of $2,235 million (31 December 2021: $1,382 million). $837 million of the unused tax losses expired at the point of Prudential plc’s tax residency change from the UK to Hong Kong on 3 March 2023. A further $103 million (31 December 2021: $108 million) relates to unused tax losses that will expire within the next ten years (potential tax benefit: $22 million), and the remainder of $1,295 million (31 December 2021: $1,274 million) has no expiry date (potential tax benefit: $277 million). Some of the Group’s businesses are located in jurisdictions in which a withholding tax charge is incurred upon the distribution of earnings. At 31 December 2022, deferred tax liabilities of $216 million (31 December 2021: $330 million) have not been recognised in respect of such withholding taxes as the Group is able to control the timing of the distributions and it is probable that the timing differences will not reverse in the foreseeable future. |
Share capital, share premium an
Share capital, share premium and own shares | 12 Months Ended |
Dec. 31, 2022 | |
Share capital, share premium and own shares | |
Share capital, share premium and own shares | C8 Share capital, share premium and own shares Shares are classified as equity when their terms do not create an obligation to transfer assets. Amounts recorded in share capital represent the nominal value of the shares issued. The difference between the proceeds received on issue of the shares, net of share issue costs, and the nominal value of the shares issued, is credited to share premium. Where the Company purchases shares for the purposes of employee incentive plans, the consideration paid, net of issue costs, is deducted from retained earnings. Upon issue or sale any consideration received is credited to retained earnings net of related costs. 2022 2021 Issued shares of 5 p each fully paid Number of ordinary Share Share Number of ordinary Share Share shares capital premium shares capital premium $m $m $m $m Balance at 1 Jan 2,746,412,265 182 5,010 2,609,489,702 173 2,637 Shares issued under share-based schemes 3,257,115 — 2 6,142,213 — 8 Shares issued under Hong Kong public offer and international placing in 2021 note — — (6) 130,780,350 9 2,365 Balance at 31 Dec 2,749,669,380 182 5,006 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 $1.3 billion in total in December 2021 and US $1.0 billion in 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. Options outstanding under save as you earn schemes to subscribe for shares at each year end shown below are as follows: Number of shares to Share price range subscribe for from to Exercisable by year 31 Dec 2022 1,858,292 737 p 1,455 p 2028 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 $270 million at 31 December 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 31 December 2022, 12.6 million (31 December 2021: 11.7 million) Prudential plc shares with a market value of $174 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 year was 13.0 million which was in September 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: 2022 2021 Number Share price Number Share price of shares Low High Cost of shares Low High Cost £ £ $ £ £ $ January 63,019 12.93 13.14 1,120,889 74,817 14.12 14.48 1,443,158 February 65,223 12.43 12.49 1,098,500 69,865 12.42 12.96 1,251,067 March 73,193 10.37 10.96 1,055,044 55,545 14.91 15.49 1,189,784 April 4,024,410 10.64 11.29 58,880,934 2,438,884 15.45 15.55 52,512,098 May 460,897 8.95 9.05 5,288,807 52,989 15.82 15.96 1,183,836 June 196,180 10.13 11.70 2,402,464 121,472 14.62 14.89 2,508,974 July 87,338 10.06 10.15 1,052,807 60,473 13.62 13.78 1,145,078 August 86,540 9.81 9.95 1,029,843 57,004 14.20 14.37 1,128,450 September 90,843 9.24 9.73 1,000,619 312,226 14.89 15.24 7,961,098 October 175,837 9.06 9.30 1,675,634 436,771 14.48 14.99 8,410,274 November 79,326 8.99 9.04 837,944 53,867 14.77 14.83 1,072,374 December 95,680 10.63 10.74 1,240,296 76,926 13.20 13.24 1,355,942 Total 5,498,486 76,683,781 3,810,839 81,162,133 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. Other than set out above, the Group did not purchase, sell or redeem any Prudential plc listed securities during 2022. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Provisions | C9 Provisions 31 Dec 2022 $m 31 Dec 2021 $m Staff benefits provisions note (i) 341 355 Other provisions 7 17 Total provisions note (ii) 348 372 Notes (i) Provisions for staff benefits are generally expected to be paid out within the next three years. (ii) Analysis of movement in total provisions is shown below: 2022 $m 2021 $m Balance at 1 Jan 372 350 Removal of discontinued US operations — (14) Charged (credited) to income statement: Additional provisions 231 263 Unused amounts released (20) (15) Utilisation during the year (221) (204) Exchange differences (14) (8) Balance at 31 Dec 348 372 |
Capital
Capital | 12 Months Ended |
Dec. 31, 2022 | |
Capital | |
Capital | C10 Capital C10.1 Group objectives, policies and processes for managing capital (a) Capital measure The Group manages its Group GWS capital resources as its measure of capital. At 31 December 2022, estimated Group shareholder GWS capital resources is $23.2 billion (31 December 2021: $25.5 billion). The impacts of regulatory updates, estimated as at 31 December 2021, and $1.7 billion debt redemption in January 2022 are included within the 31 December 2021 capital resources. (b) External capital requirements Prudential plc is subject to the Group-wide Supervision (GWS) Framework issued by the Hong Kong Insurance Authority (IA). Prudential applies the Insurance (Group Capital) Rules set out in the GWS Framework to determine group regulatory capital requirements (both minimum and prescribed levels). The summation of local statutory capital requirements across the Group is used to determine group regulatory capital requirements, with no allowance for diversification between business operations. The GWS eligible group capital resources are determined by the summation of capital resources across local solvency regimes for regulated entities and IFRS shareholders’ equity, with adjustments where applicable, for non-regulated entities. The recent trend to more risk-based capital regimes being adopted in many of the Group's markets is continuing and this impacts on the Group's GWS capital measure, which is underpinned by the local regulatory regimes of the Group's subsidiaries, joint ventures and associates. C-ROSS Phase II became effective in the Chinese Mainland in the first quarter of 2022 and, in April 2022, Prudential Hong Kong Limited received approval from the Hong Kong IA to early adopt the new risk-based capital regime (HK RBC) effective from 1 January 2022. More details on Group capital are given in section I(i) in the Additional unaudited financial information section. (c) Meeting of capital management objectives The GWS group capital adequacy requirements have been met since the GWS Framework became effective for Prudential upon designation. This includes maintaining total eligible group capital resources in excess of the Group Prescribed Capital Requirement (GPCR) of the supervised group and maintaining Tier 1 group capital resources in excess of the Group Minimum Capital Requirement (GMCR) of the supervised group. The Group’s capital management framework focuses on achieving sustainable, profitable growth and maintaining a resilient balance sheet, with a disciplined approach to active capital allocation. As well as holding sufficient capital to meet GWS requirements at Group level, the Group also closely manages the cash it holds within its central holding companies so that it can: – Fund new opportunities; – Maintain flexibility and absorb shock events; – Cover central costs; and – Fund dividends. The Group monitors regulatory capital, economic capital and rating agency capital metrics and manages the business within its risk appetite by remaining within its economic and regulatory capital limits. Reserve adequacy testing under a range of scenarios and dynamic solvency testing is carried out, including under certain scenarios mandated by the local regulators. The sensitivity of liabilities and other components of total capital vary depending upon the type of business concerned and this conditions the approach to asset/liability management. C10.2 Local capital regulations (a) Insurance operations For regulated insurance entities, the capital resources and required capital included in the GWS capital measure for Hong Kong IA Group regulatory purposes are based on the local solvency regime applicable in each jurisdiction. The local valuation basis for the assets, liabilities and capital requirements of significant insurance operations are: CPL A risk-based capital, risk management and governance framework, known as the China Risk Oriented Solvency System (C-ROSS), applies in the Chinese Mainland. Under C-ROSS, insurers are required to maintain a core solvency ratio (core capital over minimum capital) and a comprehensive solvency ratio (capital resources over minimum capital) of not lower than 50 per cent and 100 per cent, respectively. The actual capital is the difference between the admitted assets and admitted liabilities with trading and AFS assets marked-to-market and other assets at book value. Policyholder liabilities are based on a gross premium valuation method using best estimate assumptions with a separate risk margin. The final regulations of C-ROSS Phase II became effective in the first quarter of 2022. The main updates to the local regulation were to introduce explicit tiering and admissibility rules on negative reserves in the capital resources and further updates to the risk calibrations used in calculating capital requirements. Hong Kong In April 2022, Prudential Hong Kong Limited received approval from the Hong Kong IA to early adopt the new risk-based capital regime (HK RBC) effective from 1 January 2022. The HK RBC framework requires liabilities to be based on a gross premium valuation method using best estimate assumptions and capital requirements to be risk-based, resulting in the release of prudent regulatory margins previously included in liabilities and an increase in required capital. Indonesia Solvency capital is determined using a risk-based capital approach. The capital resources are based on assets that are marked-to-market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. Liabilities are zeroised at policy level (ie negative liabilities are not permitted at a policy level). For unit-linked policies, an unearned premium reserve is established. Malaysia A risk-based capital framework applies in Malaysia. The local regulator, Bank Negara Malaysia (BNM), has set a Supervisory Target Capital Level of 130 per cent, below which supervisory actions of increasing intensity will be taken. Each insurer is also required to set its own Individual Target Capital Level to reflect its own risk profile and this is expected to be higher than the Supervisory Target Capital Level. The capital resources are based on assets that are marked-to-market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. Liabilities are zeroised at a fund level (ie negative liabilities are not permitted at fund level). The BNM has initiated a review of its RBC framework and a discussion paper on the design of the updated RBC framework was issued on 30 June 2021 with industry feedback provided by 30 September 2021. The BNM have yet to issue their final technical specifications and the exact timing of implementation of potential revisions remains uncertain as these would need to be subject to quantitative impact studies and parallel run prior to introduction. Market liberalisation measures were introduced by BNM in April 2009, which increases the limit from 49 per cent to 70 per cent on foreign equity ownership for insurance companies and Takaful operators in Malaysia. A higher foreign equity limit beyond 70 per cent for insurance companies will be considered by BNM on a case by case basis, for example, for companies who support expansion of providing insurance coverage to the most vulnerable in Malaysian society. Singapore A risk-based capital framework applies in Singapore. The local regulator, Monetary Authority of Singapore (MAS), has the authority to direct insurance companies to satisfy additional capital adequacy requirements in addition to those set forth under the Singapore Insurance Act, if considered appropriate. The capital resources are based on assets that are marked-to-market, with policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence. The updated risk-based capital framework (RBC2) permits the recognition of a prudent allowance for negative reserves in the capital resources. (b) Asset management operations – regulatory and other surplus Certain asset management subsidiaries of the Group are subject to local regulatory requirements. The movement in the year of the estimated surplus regulatory capital position (over the GPCR) of those subsidiaries, combined with the movement in the IFRS basis shareholders’ equity for unregulated asset management operations, is as follows: 2022 $m 2021 $m Balance at 1 Jan 522 453 Gains during the year 187 266 Movement in capital requirement 15 3 Capital injection 3 6 Distributions made to the parent company (214) (201) Exchange and other movements (47) (5) Balance at 31 Dec 466 522 C10.3 Transferability of capital resources The amounts retained within the insurance companies are at levels that provide an appropriate level of capital strength in excess of the local regulatory minimum capital requirements. The businesses may, in general, remit dividends to parent entities, provided the statutory insurance fund meets the local regulatory solvency requirements and there are sufficient statutory accounting profits. For with-profits funds, the excess of assets over liabilities is retained within the funds, with distribution to shareholders tied to the shareholders’ share of declared bonuses. Capital resources of the non-insurance business units are transferable after taking account an appropriate level of operating capital, based on local regulatory solvency requirements, where relevant. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment | C11 Property, plant and equipment Property, plant and equipment comprise Group occupied properties and tangible assets. Property, plant and equipment also includes right-of-use assets for operating leases of properties occupied by the Group and leases of equipment and other tangible assets. All property, plant and equipment, including the right-of-use assets under operating leases, are held at cost less cumulative depreciation, calculated using the straight-line method, and impairment charge. A reconciliation of the carrying amount of the Group's property, plant and equipment from the beginning to the end of the years shown is as follows: 2022 $m 2021 $m Group Group occupied Tangible Right-of- occupied Tangible Right-of- property assets use assets Total property assets use assets Total Balance at 1 Jan Cost 33 489 678 1,200 355 707 710 1,772 Accumulated depreciation (10) (349) (363) (722) (88) (523) (268) (879) Opening net book amount 23 140 315 478 267 184 442 893 Removal of discontinued US operations — — — — (242) (32) (35) (309) Additions — 34 49 83 — 36 59 95 Depreciation and impairment charge — (39) (106) (145) (1) (45) (123) (169) Disposals, transfers and lease modifications — (2) 26 24 — — (22) (22) Effect of movements in exchange rates (1) (7) (13) (21) (1) (3) (6) (10) Balance at 31 Dec 22 126 271 419 23 140 315 478 Representing: Cost 32 486 676 1,194 33 489 678 1,200 Accumulated depreciation (10) (360) (405) (775) (10) (349) (363) (722) Closing net book amount 22 126 271 419 23 140 315 478 Right-of-use assets The Group does not have any right-of-use assets that would meet the definition of investment property. As at 31 December 2022, total right-of-use assets comprised $267 million (31 December 2021: $311 million) of property and $4 million (31 December 2021: $4 million) of non-property assets. Of the $271 million (31 December 2021: $315 million) total right-of-use assets, $105 million (31 December 2021: $128 million) were held by the Group’s with-profits businesses. Extension and termination options are included in a number of property and equipment leases across the Group. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. The Group assesses at lease commencement whether it is reasonably certain to exercise the option. This assertion is revisited if there is a material change in circumstances. As at 31 December 2022, the undiscounted value of lease payments beyond the break period not recognised in the lease liabilities is $189 million (31 December 2021: $201 million). The Group has non-cancellable property subleases which have been classified as operating leases under IFRS 16. The sublease rental income received in 2022 for the leases is $6 million (2021: $6 million). Tangible assets At 31 December 2022, of the $126 million (31 December 2021: $140 million) tangible assets, $53 million (31 December 2021: $63 million) were held by the Group’s with-profits businesses. Capital expenditure: property, plant and equipment by segment The capital expenditure on property, plant and equipment in 2022 of $34 million (2021: $36 million) arose as follows: 2022 $m 2021 $m Hong Kong 11 9 Indonesia 1 1 Malaysia 1 2 Singapore 3 1 Growth markets and other 16 19 Eastspring 2 3 Total segment 34 35 Unallocated to a segment (central operations) — 1 Total capital expenditure on property, plant and equipment 34 36 |
Corporate transactions
Corporate transactions | 12 Months Ended |
Dec. 31, 2022 | |
Corporate transactions | |
Corporate transactions | D1 Corporate transactions D1.1 Gain (loss) attaching to corporate transactions Corporate transactions include those associated with the disposal of the Group’s entities amongst other items. Where there is a disposal, income and expenses of entities sold during the year are included in the income statement up to the date of disposal. The gain or loss on disposal is calculated as the difference between sale proceeds net of selling costs, less the net assets of the entity at the date of disposal, adjusted for foreign exchange movements attaching to the sold entity that are required to be recycled to the income statement under IAS 21. 2022 $m 2021 $m 2020 $m Gain (loss) attaching to corporate transactions as shown separately on the Consolidated income statement note 55 (35) (30) Loss arising on reinsurance transaction undertaken by the Hong Kong business (44) (59) 765 Total gain (loss) attaching to corporate transactions note B1.1 11 (94) 735 Note The gain (loss) attaching to corporate transactions largely comprises a gain of $62 million (2021: $23 million) from the sale of shares relating to the Group’s retained interest in Jackson post the demerger. Other corporate transactions in 2021 largely represent costs associated with the demerger of Jackson. D1.2 Discontinued US operations On 13 September 2021, the Group completed the separation of its US operations (Jackson) through a demerger. In accordance with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, the US operations were classified as discontinued. The 2021 income statement included the results of Jackson up to 13 September 2021, the date of demerger. 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. During 2022, transactions reduced the Group’s holding to 9.2 per cent (both voting and economic interest) at 31 December 2022 (31 December 2021: 18.4 per cent economic interest with 18.5 per cent voting interest). The fair value of the Group’s holding at 31 December 2022 was $266 million (31 December 2021: $683 million). The results for the discontinued US operations presented in the consolidated financial statements up to the demerger in September 2021 are analysed below. (a) Income statement 2021 $m 2020 $m Total revenue, net of reinsurance 45,972 19,763 Total charge, net of reinsurance (43,655) (20,523) Profit (loss) before tax 2,317 (760) Tax (charge) credit (363) 477 Profit (loss) after tax 1,954 (283) Remeasurement to fair value note (i) (8,259) — 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) 1,278 — Loss for the year (5,027) (283) Attributable to: Equity holders of the Company (4,234) (340) Non-controlling interests (793) 57 Loss for the year (5,027) (283) Notes (i) The loss on remeasurement to fair value on demerger was recognised in accordance with IFRIC 17 'Distributions of non-cash assets to owners' with the fair value determined with reference to the opening quoted price of Jackson shares on the New York Stock Exchange as at the date of demerger on 13 September 2021. (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 2020 $m Loss for the year (5,027) (283) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (763) 292 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 (1,278) — Other comprehensive (loss) income for the year (2,041) 292 Total comprehensive (loss) income for the year (7,068) 9 Attributable to: Equity holders of the Company (6,283) (40) Non-controlling interests (785) 49 Total comprehensive (loss) income for the year (7,068) 9 (c) 2021 $m 2020 $m Net cash flows from operating activities (423) (807) Net cash flows from investing activities — (2) Net cash flows from financing activities note 2,329 470 Cash divested upon demerger (3,527) — Net decrease in cash and cash equivalents (1,621) (339) Cash and cash equivalents at 1 Jan 1,621 1,960 Cash and cash equivalents at 31 Dec — 1,621 Note Financing activities in 2021 largely reflected the issuance of debt of $2,350 million. No dividends were paid by Jackson during 2021 prior to demerger. |
Contingencies and related oblig
Contingencies and related obligations | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies and related obligations | |
Contingencies and related obligations | D2 Contingencies and related obligations Litigation and regulatory matters 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. Guarantees The Group has provided guarantees and commitments to third parties entered into in the normal course of business and the Company has guaranteed public debt securities issued by one of its wholly-owned subsidiaries, Prudential Funding (Asia) PLC from early 2023. The Group considers the likelihood of outflows arising under such guarantees and commitments as remote. Intra-group capital support arrangements Prudential has put in place intra-group arrangements to formalise undertakings by Prudential to the regulators of the Hong Kong subsidiaries regarding their solvency levels. Other intra-group transactions are discussed in note D4 below. |
Post balance sheet events
Post balance sheet events | 12 Months Ended |
Dec. 31, 2022 | |
Post balance sheet events | |
Post balance sheet events | D3 Post balance sheet events Dividends The 2022 second interim dividend approved by the Board of Directors after 31 December 2022 is as described in note B5. Debt redemption On 20 January 2023 the Company redeemed senior debt instruments of £300 million, as described in note C5.1. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | D4 Related party transactions Transactions between the Company and its subsidiaries or intra-group transactions are eliminated on consolidation. Intra-group transactions of the Group mainly related to a limited number of loans, guarantees or services provided by the Company to or from others business units, or between business units, including investment management services provided by the Group’s asset managers to the insurance operations businesses as shown in note B1.3. All intra-group transactions are subject to the same internal approval framework as external transactions. As the Group’s business units operate independently, overall there is limited interconnectedness across the Group. The Group reviews its recovery plan (that also covers intra-group transactions and the level of the Group’s interconnectivity risk) on an annual basis and details the remedial actions that could be used to restore financial strength and viability if the Group were to come under severe stress. The Company has transactions and outstanding balances with collective investment schemes and similar entities that are not consolidated and where a Group company acts as manager, which are regarded as related parties for the purposes of IAS 24. The balances are included in the Group’s statement of financial position at fair value or amortised cost in accordance with IAS 39 classifications with the corresponding amounts included in the income statement. The transactions include amounts paid on issue of shares or units, amounts received on cancellation of shares or units and amounts paid in respect of the periodic charge and administration fee. In addition, there are no material transactions between the Group’s joint ventures and associates, which are accounted for on an equity method basis, and other Group companies. Key management personnel of the Company, as described in note B2.3, may from time to time purchase insurance, asset management or annuity products marketed by Group companies in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons. In 2022, transactions with key management personnel were not deemed to be significant both by virtue of their size and in the context of the individuals’ financial positions. All of these transactions were on terms broadly equivalent to those that prevailed in arm’s-length transactions. On 5 April 2021, pursuant to a separation agreement, Jackson National Life agreed to pay circa $23.5 million to Michael Falcon, the former chief executive officer of Jackson, as a series of cash lump sum payments for termination of loss of office, and agreed that Mr Falcon would retain 98,311 Prudential ADRs that had been previously deferred under the Deferred Annual Incentive Plan. Prudential agreed to reimburse Jackson National Life for such payments and settled this obligation prior to the demerger on 13 September 2021. On completion of the demerger, the Prudential ADRs were translated into Jackson Shares with an equivalent value. They will be released on the original timeline, ie in 2022 and 2023, and remain subject to the original malus and clawback provisions. Other transactions with those individuals meeting the definition of key management personnel in 2021 were not deemed to be significant using the criteria described above. Additional details on the Directors’ interests in shares, transactions or arrangements are given in ‘Compensation and Employees’. Key management remuneration is disclosed in note B2.3. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Commitments | D5 Commitments The Group has provided, from time to time, certain commitments to third parties. At 31 December 2022, the Group had $2,626 million unfunded commitments (31 December 2021: $2,878 million) primarily related to investments in infrastructure funds and alternative investment funds in Asia. |
Investments in subsidiary under
Investments in subsidiary undertakings, joint ventures and associates | 12 Months Ended |
Dec. 31, 2022 | |
Investments in subsidiary undertakings, joint ventures and associates | |
Investments in subsidiary undertakings, joint ventures and associates | D6 Investments in subsidiary undertakings, joint ventures and associates D6.1 Basis of consolidation The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the followings are met: (1) it has power over an investee; (2) it is exposed to, or has rights to, variable returns from its involvement with the investee; and (3) it has the ability to use its power over the investee to affect its own returns. (a) Subsidiaries Subsidiaries are those investees that the Group controls. The majority of the Group’s subsidiaries are corporate entities. The Group performs a re-assessment of consolidation whenever there is a change in the substance of the relationship between the Group and an investee. Where the Group is deemed to control an entity, it is treated as a subsidiary and its results, assets and liabilities are consolidated. Where the Group holds a minority share in an entity with no control over the entity, the investments are carried at fair value within financial investments in the Consolidated statement of financial position. Entities consolidated by the Group include Qualifying Partnerships as defined under the UK Partnerships (Accounts) Regulations 2008 (the 'Partnerships Act'). The Group's limited partnership has taken advantage of the exemption under regulation 7 of the Partnerships Act from the financial statement requirements. This is under regulations 4 to 6, on the basis that the limited partnership is dealt with on a consolidated basis in these financial statements. (b) Joint ventures and associates Joint ventures are joint arrangements arising from a contractual agreement whereby the Group and other investors have joint control of the net assets of the arrangement. In a number of these arrangements, the Group’s share of the underlying net assets may be less than 50 per cent but the terms of the relevant agreement make it clear that control is jointly exercised between the Group and the third party. Associates are entities over which the Group has significant influence but does not control. Generally, it is presumed that the Group has significant influence if it holds between 20 per cent and 50 per cent voting rights of an entity. With the exception of those referred to below, the Group accounts for its investments in joint ventures and associates using the equity method of accounting. The Group’s share of profit or loss of its joint ventures and associates is recognised in the income statement and its share of movements in other comprehensive income is recognised in other comprehensive income. The equity method of accounting does not apply to investments in joint ventures and associates held by the Group’s insurance or investment funds, including collective investment schemes which, as allowed by IAS 28 ‘Investments in Associates and Joint Ventures’, are carried at fair value through profit or loss. (c) Structured entities Structured entities are those that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. Voting rights relate to administrative tasks. Relevant activities are directed by means of contractual arrangements. The Group invests in both consolidated and unconsolidated structured entities including investment vehicles such as collective investment schemes, collateralised debt obligations, mortgage-backed securities and similar asset-backed securities. Collective investment schemes The Group invests in collective investment schemes that invest mainly in equities, bonds, cash and cash equivalents and properties. In assessing control under IFRS 10 ‘Consolidated Financial Statements’, the Group determines whether it is acting as principal or agent and the variable returns from its involvement with these entities. The Group’s percentage ownership in these entities can fluctuate on a daily basis according to the participation of the Group and other investors. Where the entity is managed by a Group asset manager: – Where the Group’s ownership holding in the entity exceeds 50 per cent, the Group is judged to have control over the entity; – Where the Group’s ownership holding in the entity is between 20 per cent and 50 per cent, the facts and circumstances of the Group’s involvement in the entity are considered, including the rights to any fees earned by the asset manager, in forming a judgement as to whether the Group has control over the entity; – Where the Group’s ownership holding in the entity is less than 20 per cent, the Group is judged to not have control over the entity. Where the entity is managed by an asset manager outside the Group, an assessment is made of whether the Group has existing rights that gives it the ability to direct the current activities of the entity and therefore control the entity. In assessing the Group’s ability to direct an entity, the Group considers its ability relative to other investors. Where the Group is deemed to control an entity, it is treated as a subsidiary and is consolidated, with the interests of investors other than the Group being classified as liabilities, and presented within ‘Net asset value attributable to unit holders of consolidated investment funds’. Where the Group does not control these entities (where the Group is deemed to be acting as an agent under IFRS 10) and they do not meet the definition of associates, they are carried at FVTPL within financial investments in the Consolidated statement of financial position. Where the Group’s asset manager sets up investment funds as part of its asset management operations, unless the Group also participates in the ownership holding of the entities, the Group’s interest is limited to the fees charged to manage the assets of such entities. With no participation in ownership holding of these entities, the Group does not retain risks associated with investment funds. For these investment funds, the Group is not deemed to control the entities but deemed to be acting as an agent. The Group generates returns and retains the ownership risks in these investment vehicles commensurate to its participation and does not have any further exposure to the residual risks of these investment vehicles. Other structured entities The Group holds investments in mortgage-backed securities, collateralised debt obligations and similar asset-backed securities, the majority of which are actively traded in a liquid market. The Group consolidates the vehicles that hold the investments where the Group is deemed to control the vehicles. When assessing control over the vehicles, the factors considered include the purpose and design of the vehicle, the Group’s exposure to the variability of returns and the scope of the Group’s ability to direct the relevant activities of the vehicle including any kick-out or removal rights that are held by third parties. The outcome of the control assessment is dependent on the terms and conditions of the respective individual arrangements. The majority of such vehicles are not consolidated. In these cases, the Group is not the sponsor of the vehicles in which it holds investments and has no administrative rights over the vehicles’ activities. The Group generates returns and retains the ownership risks commensurate to its holding and its exposure to the investments and does not have any further exposure to the residual risks or losses of the investments or the vehicles in which it holds investments. Accordingly, the Group does not have power over the relevant activities of such vehicles and all are carried at FVTPL within financial investments in the Consolidated statement of financial position. The table below provides aggregate carrying amounts of the investments in unconsolidated structured entities reported in the Group’s Consolidated statement of financial position: 31 Dec 2022 $m 31 Dec 2021 $m Other Other Investment structured Investment structured Consolidated statement of financial position line items funds entities funds entities Equity securities and holdings in collective investment schemes 30,771 — 35,446 — Debt securities — 370 — 251 Total investments in unconsolidated structured entities 30,771 370 35,446 251 The Group's maximum exposure to loss related to the interest in unconsolidated structured entities is limited to the carrying value in the Consolidated statement of financial position and the unfunded investment commitments provided by the Group (see note D5). During the year, the Group receives dividend and interest income from its investments in these unconsolidated structured entities. Where the Group’s asset manager manages these entities, such as the collective investment schemes, the Group also receives asset management fees from these entities. As at 31 December 2022 and 2021, the Group does not have an agreement, contractual or otherwise, or intention to provide financial support to structured entities (both consolidated and unconsolidated) that could expose the Group to a loss. D6.2 Dividend restrictions and minimum capital requirements Certain Group entities are subject to restrictions on the amounts of funds they may transfer in the form of cash dividends or otherwise to the parent company. Under UK company law, UK companies can only declare dividends if they have sufficient distributable reserves. The Group’s subsidiaries, joint ventures and associates may remit dividends to the Group, in general, provided the statutory insurance fund meets the capital adequacy standard required under local statutory regulations and has sufficient distributable reserves. Further details on local capital regulations in certain Asia operations are provided in note C10.2. D6.3 Investments in joint ventures and associates Joint ventures represent arrangements where the controlling parties through contractual or other agreement have the rights to the net assets of the arrangements. The Group has insurance and asset management joint ventures in Chinese Mainland with CITIC Group and an asset management joint venture in India with ICICI Bank. In addition, there is an asset management joint venture in Hong Kong with Bank of China International Holdings Limited (BOCI) and Takaful insurance joint venture in Malaysia. For the Group’s joint ventures that are accounted for using the equity method, the net-of-tax results of these operations are included in the Group’s profit before tax. The Group’s associates, which are also accounted for using the equity method, include the Indian insurance entity (with the majority shareholder being ICICI Bank). In addition, the Group has investments in collective investment schemes, funds holding collateralised debt obligations and property funds where the Group has significant influence. As allowed under IAS 28, these investments are accounted for on a FVTPL basis. The aggregate fair value of associates accounted for at fair value through profit or loss, where there are published price quotations, is approximately $0.3 billion at 31 December 2022 (31 December 2021: $0.6 billion). For joint ventures and associates accounted for using the equity method, the 12 months financial information of these investments for the years ended 31 December 2022 and 2021 (covering the same period as that of the Group) has been used in these consolidated financial statements. The Group’s share of the profit for shareholder-backed business (including short-term fluctuations in investment returns), net of related tax, in joint ventures and associates equity accounted for as shown in the Consolidated income statement, is allocated across segments as follows: 2022 $m 2021 $m 2020 $m CPL (144) 278 394 Hong Kong — 9 3 Malaysia 24 28 30 Growth markets and other note 5 (110) (27) Insurance operations (115) 205 400 Eastspring 144 147 117 Total segment and Group total 29 352 517 Note For growth markets and other, as well as the segment results for associates and joint ventures within the segment, the amount shown includes other items of $15 million (2021: $(38) million; 2020: $(103) million) which primarily comprise of taxes for all life joint ventures and associates together with other non-recurring items. There is no other comprehensive income in the joint ventures and associates other than the foreign exchange differences that arise from translating the associates and joint ventures into the Group's presentational currency. There has been no unrecognised share of losses of a joint venture or associate The Group’s interest in joint ventures and associates gives rise to no contingent liabilities capital material CITIC-Prudential Life Insurance Company (CPL) CPL is the Group’s joint venture with the CITIC Group in which the Group owns a 50 per cent interest. The joint venture is incorporated in China and is principally engaged in underwriting insurance and investment contracts. The summarised financial information for CPL, which is considered to be a material joint venture to the Group, is set out below. The financial information represents the entity’s financial statements prepared in accordance with Group’s IFRS accounting policies, on a 100 per cent basis, for the years shown: Statement of financial position: 31 Dec 2022 $m 31 Dec 2021 $m Total assets 31,608 29,237 Total liabilities (including non-controlling interest) 29,330 26,523 Shareholders’ equity 2,278 2,714 The above amounts of assets and liabilities include the following: Cash and cash equivalents 561 422 Financial liabilities (excluding trade and other payables and provisions) 985 938 Income statement: 2022 $m 2021 $m 2020 $m Revenue 5,778 7,374 5,492 Profit for the year after tax (248) 453 599 The above profit for the year includes the following: Depreciation and amortisation (106) (86) (81) Interest income 599 465 378 Interest expense (3) (2) (2) Income tax credit (charge) 40 (84) (166) The summarised financial information above is reconciled to the carrying amount of the Group’s interest in the joint venture recognised in the consolidated financial statements as follows: 31 Dec 2022 $m 31 Dec 2021 $m Net assets of CITIC-Prudential Life as shown above 2,278 2,714 Proportion owned by the joint venture partner (50%) 1,139 1,357 Carrying amount of the Group’s interest in the joint venture (50%) 1,139 1,357 The Group has received no dividends from CPL in 2022 (2021: $57 million). D6.4 Related undertakings In accordance with Section 409 of the Companies Act 2006, a list of Prudential Group’s subsidiaries, joint ventures, associates and significant holdings (being holdings of more than 20 per cent) is disclosed below, along with the classes of shares held, the registered office address and the effective percentage of equity owned at 31 December 2022. The Group also operates through branches, none of which are significant. The definitions of a subsidiary undertaking, joint venture and associate in accordance with the Companies Act 2006 are different from the definition under IFRS Standards. As a result, the related undertakings included within the list below may not be the same as the undertakings consolidated in the Group consolidated financial statements. The Group’s consolidation policy is described in note D6.1. Simplified corporate structure as at 31 December 2022 * † Direct subsidiary undertakings of the parent company, Prudential plc (shares held directly or via nominees) Key to share classes: Abbreviation Class of share held LBG Limited by Guarantee MI Membership Interest MI - WFOE Membership Interest of a Wholly Foreign Owned Enterprise in the Chinese Mainland MI – JV Membership Interest of a Sino-Foreign Equity Joint Venture in the Chinese Mainland OS Ordinary Shares PI Partnership Interest PS Preference Shares U Units Name of entity Classes of shares held Proportion held Registered office address Prudential Corporation Asia Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Other subsidiaries, joint ventures, associates and significant holdings of the Group – no shares held directly by the parent company (Prudential plc) or its nominees Classes of shares Proportion Name of entity held held Registered office address Aberdeen Cash Creation Fund U 30.62% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Global Opportunities Fund U 34.61% 21 Church Street, #01-01, Capital Square Two, Singapore 049480 Aberdeen Standard Singapore Equity Fund U 62.18% AC Financial Partners Limited Partnership PI 100.00% 65 Haymarket Terrace, Edinburgh, EH12 5HD Alternatives North America Ltd. U 100.00% PO Box 1093, Queensgate House, Grand Cayman, KY1-1102, Cayman Islands BOCHK Aggressive Growth Fund U 47.75% 27th Floor, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Balanced Growth Fund U 41.47% BOCHK China Equity Fund U 73.71% BOCHK Conservative Growth Fund U 42.71% BOCHK US Dollar Money Market Fund U 21.91% BOCI-Prudential Asset Management Limited OS 36.00% BOCI-Prudential Trustee Limited OS 36.00% Suites 1501-1507 & 1513-1516, 15th Floor, 1111 King's Road, Taikoo Shing, Hong Kong Cathay High Yield Ex China Cash Pay 1-5 Year 2% Issuer Capped ETF U 42.71% 6th Floor, No.39, Sec.2, Dunhua South. Road, Taipei, Taiwan CITIC-CP Asset Management Co., Ltd. MI - JV 26.95% Room 101-2, No.128 North Zhangjiabang Road, Pudong District, Shanghai, China CITIC-Prudential Fund Management Company Limited MI - JV 49.00% Level 9, HSBC Building, Shanghai IFC, 8 Century Avenue, Pudong, Shanghai, China CITIC-Prudential Life Insurance Company Limited MI - JV 50.00% Room 1101-A, 1201, 1301, 1401, 1501, 1601, 1701, 1801, Unit 01, Building 1, No. B2, North Road of East Third Ring Road, Chaoyang District, Beijing, PRC,100027, China Classes of shares Proportion Name of entity held held Registered office address Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Asia Pacific High Yield Equity Fund U 37.57% 4th Floor, No.1, Songzhi Road, Xinyi Dist., Taipei, Taiwan Eastspring Asset Management (Thailand) Co., Ltd. OS 59.50% 944 Mitrtown Office Tower, 9th Floor, Rama 4 Road, Wangmai, Pathumwan, Bangkok 10330, Thailand Eastspring Asset Management Korea Co. Ltd. OS 100.00% 22nd Floor (Seoul International Finance Center, Yeouido dong), 10 Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, Republic of Korea 07326 Eastspring Investment K-Short Term Bond Alpha Securities Investment Trust(Bond Balanced) U 27.54% 22nd Floor One IFC, 10 Gukjegeumyung-ro, Youngdungpo-gu, Seoul 07326, Korea Eastspring Investment Management (Shanghai) Company Limited MI - WFOE 100.00% Unit 306-308, 3rd Floor, Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Investments - Asia Opportunities Equity Fund U 99.97% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments - Global Growth Equity Fund U 59.04% Eastspring Investments - Global Low Volatility Equity Fund U 96.36% Eastspring Investments - Global Technology Fund U 82.06% Eastspring Investments - Pan European Fund U 61.34% Eastspring Investments - US High Yield Bond Fund U 46.85% Eastspring Investments - US Investment Grade Bond Fund U 68.91% Eastspring Investments - World Value Equity Fund U 95.64% Eastspring Investments (Hong Kong) Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Eastspring Investments (Luxembourg) S.A. OS 100.00% 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg Eastspring Investments (Singapore) Limited OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Asia Pacific Equity Fund U 93.92% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asia Pacific ex-Japan Target Return Fund U 75.84% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Asia Real Estate Multi Asset Income Fund U 73.95% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asia Sustainable Bond Fund U 93.97% Eastspring Investments Asian Bond Fund U 42.30% Eastspring Investments Asian Dynamic Fund U 91.58% Eastspring Investments Asian Equity Fund U 98.97% Eastspring Investments Asian Equity Income Fund U 87.52% Eastspring Investments Asian High Yield Bond Fund U 44.35% Eastspring Investments Asian Investment Grade Bond Fund U 90.06% Eastspring Investments Asian Low Volatility Equity Fund U 89.01% Eastspring Investments Asian Multi Factor Equity Fund U 90.94% Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Eastspring Investments China A Shares Growth Fund U 63.69% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Dragon Peacock Fund U 95.82% Eastspring Investments Emerging Markets Star Players U 40.88% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Equity Income Fund U 40.95% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments European Investment Grade Bond Fund U 99.91% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Fund Management Limited Liability Company MI 100.00% 23rd Floor, Saigon Trade Center, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Eastspring Investments Global Emerging Markets Bond Fund U 99.38% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Emerging Markets Dynamic Fund U 62.79% Eastspring Investments Global Emerging Markets ex-China Dynamic Fund U 99.96% Eastspring Investments Global Equity Navigator Fund U 97.19% Eastspring Investments Global Growth Fund U 40.22% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Global Market Navigator Fund U 99.75% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Multi Asset Income Plus Growth Fund U 100.00% Eastspring Investments Greater China Equity Fund U 90.60% Eastspring Investments Group Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, City of Dover, County of Kent, State of Delaware, 19904, USA Eastspring Investments India Consumer Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Equity Fund U 79.97% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments India Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Infrastructure Equity Open Limited OS 100.00% Eastspring Investments Limited OS 100.00% Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-Ku, Tokyo, Japan Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments MY Focus Fund U 28.33% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Private Fixed Income Fund Number 1 U 87.11% Units 306-308, 3rd Floor, Azia Center 1233 Lujiazui Ring Road, Shanghai, China Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investments Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Syariah Equity Islamic Asia Pacific USD Kelas B U 88.02% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Eastspring Investments Unit Trusts - Dragon Peacock Fund U 97.69% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Unit Trusts Singapore ASEAN Equity Fund U 98.74% Eastspring Investments Unit Trusts Singapore Select Bond Fund U 66.05% Eastspring Investments US Corporate Bond Fund U 60.04% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments US High Investment Grade Bond Fund U 87.42% Eastspring Investments Vietnam Navigator Fund U 76.79% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Eastspring Investments-Global Emerging Markets Fundamental Value Fund U 99.96% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments-Japan Sustainable Value Fund U 100.00% Eastspring Overseas Investment Fund Management (Shanghai) Company Limited MI - WFOE 100.00% Unit 306-308, 3rd Floor, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Private Equity Fund 2 U 99.99% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Securities Investment Trust Co., Ltd. OS 99.54% 4th Floor, No.1 Songzhi Road, Taipei 110, Taiwan Eastspring Singapore Alternatives VCC U 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Syariah Fixed Income USD Kelas A U 69.23% Prudential Tower Lantai 23, JI. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia FCP Ecobank Actions Uemoa U 43.63% Immeuble Ecobank, 2Er Etage -Avenue Houdaille Plateau, 01 B.P 4107 Abidjan O1 Cote D’Ivoire First Sentier Global Property Securities Fund U 67.50% 79 Robinson Road, #17-01, Singapore 068897 FSSA China Focus Fund U 67.76% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland Fubon 1-5 Years US High Yield Bond Ex China U 61.05% 8th Floor, No.108, Sec.1, Dunhua South. Road, Taipei, Taiwan Fubon China Bond Umbrella Fund - Fubon China Quality Rmb Bond Fund U 23.37% Fubon China Currency Fund U 35.49% Fuh Hwa 1-5 Yr High Yield ETF U 44.22% 8th & 9th Floor, No.308, Sec. 2, Bade Road, Da-an District Fuh Hwa Emerging Market RMB Fixed Income Fund U 46.42% Fuh Hwa Rmb Money Market Fund U 37.52% Furnival Insurance Company PCC Limited OS 100.00% PO Box 155, Mill Court, La Charroterie, St Peter Port, GY1 4ET, Guernsey GIS Total Return Bond Fund U 27.53% 78 Sir John Rogerson's Quay, Dublin, D02 HD32, Ireland Classes of shares Proportion Name of entity held held Registered office address GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom HSBC Asia Pacific Ex Japan Sustainable Equity UCITS ETF U 63.65% 25/28 North Wall Quay, IFSC, Dublin 1, Ireland HSBC Senior Global Infrastructure Debt Fund U 100.00% 8 Canada Square, London, E14 5HQ, United Kingdom ICICI Prudential Asset Management Company Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India ICICI Prudential Life Insurance Company Limited OS 22.07% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company Limited OS 22.07% ICICI Prudential Trust Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India India Innovation High Growth EQ QII U 100.00% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Invesco Fixed Maturity Selective Emerging Market Bonds 2024 U 100.00% 8th Floor, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 100.00% iShares Core MSCI Asia U 61.46% 15th, 16th, 17th Floor, Champion Tower & 17th Floor ICBC Tower, Three Garden Road, Central, Hong Kong iShares Global High Yield Corp Bond UCITS ETF U 65.61% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI Europe ESG Enhanced UCITS ETF U 51.34% 12 Throgmorton Avenue, London, EC2N 2DL iShares MSCI Korea UCITS ETF USD (Acc) U 53.66% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI USA ESG Enhanced UCITS ETF U 41.86% 12 Throgmorton Avenue, London, EC2N 2DL KKP Active Equity Fund U 35.38% 19th Floor Muang Thai-Phatra Complex, Building Tower, A, 252/25 Ratchadapisek Road, Huaykwang, Bangkok 10310, Thailand Krungsri Greater China Equity Hedged Dividend Fund U 31.10% 12th, 18th Zone B Floor, Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok 10330, Thailand Lasalle Property Securities SICAV-FIS U 99.97% 11-13 Bouldevard de la Foire, L-1528 Luxembourg M&G Asia Property Trust U 100.00% 138 Market Street, CapitaGreen #35-01, Singapore 048946 M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% 138 Market Street, #35-01 CapitaGreen, Singapore 048946 Classes of shares Proportion Name of entity held held Registered office address Manulife Asia Pacific Bond Fund U 57.81% 9th Floor, No 89 Son Ren Road, Taipei, Taiwan Manulife China Dim Sum High Yield Bond Fund U 22.54% Manulife China Offshore Bond Fund U 85.22% Manulife Taiwan Dynamic Fund U 20.53% Manulife USD High Yield Bond Fund U 29.47% Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 100.00% 101 Tower, 30th Floor, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 41.88% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 97.86% North Sathorn Holdings Company Limited OS 100.00% No. 63, Athenee Tower, 34th Floor, Wireless Road, Lumpini Subdistrict Pathumwan District, Bangkok Metropolis, Thailand PCA IP Services Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong PCA Life Assurance Co., Ltd. OS 99.79% 8th Floor, No.1 Songzhi Road, Taipei City, 11047, Taiwan PCA Reinsurance Co. Ltd. OS 100.00% Unit Level 13(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia Classes of shares Proportion Name of entity held held Registered office address PineBridge US Dual Core Income Fund U 37.37% 10th Floor, No. 144, Sec. 2, Minquan East Rd, Taipei Principal Global Silver Age Fund U 22.89% 44, 16th Floor, CIMB Thai Bank, Lungsuan Road, Lumpini, Bangkok 10330, Thailand Pru Life Insurance Corporation of U.K. OS 100.00% 9th Floor, Uptown Place Tower 1, 1 East 11th Drive, Uptown Bonifacio, 1634 Taguig City, Metro Manila, Philippines Pru Life UK Asset Management and Trust Corporation OS 100.00% Prudence Foundation LBG 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential (Cambodia) Life Assurance Plc OS 100.00% Phnom Penh Tower, 20th Floor, #445, Monivong Blvd., Boeung Prolit, 7 Makara, Phnom Penh, Cambodia Prudential (US Holdco 1) Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Africa Holdings Limited OS 100.00% Prudential Africa Services Limited OS 100.00% 3rd Floor, One Africa Place, LR. No. 1870/X/45, P.O. Box 25093-00100, Westlands, Nairobi, Kenya Prudential Assurance Company Singapore (Pte) Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Assurance Malaysia Berhad* OS 51.00% Level 26, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Prudential Assurance Uganda Limited OS 100.00% 9th Floor Zebra Plaza, Plot 23 Kampala Road, P.O. Box 2660, Kampala, Uganda Prudential BeGene |
Condensed Financial Information
Condensed Financial Information of Registrant Prudential plc | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information of Registrant Prudential plc | |
Condensed Financial Information of Registrant Prudential plc | Condensed Financial Information of Registrant Prudential plc Profit and Loss Accounts (FRS 101 Basis) Years ended 31 Dec 2022 $m 2021 $m 2020 $m Investment income, including dividends received from subsidiary undertakings 800 3,642 539 Investment expenses and charges (207) (328) (14) Loss on revaluation of Jackson upon demerger — (439) — Corporate expenditure (158) (244) (572) Foreign currency exchange gains (losses) 25 11 (19) Profit (loss) on ordinary activities before tax 460 2,642 (66) Tax (charge) credit on profit on ordinary activities (5) 6 (19) Profit (loss) for the financial year 455 2,648 (85) Other comprehensive income: Items that will not be reclassified to profit or loss Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income (125) 273 — (125) 273 — Total comprehensive income (loss) for the year 330 2,921 (85) The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Financial Position (FRS 101 Basis) 31 Dec 2022 $m 31 Dec 2021 $m Fixed assets Investments in subsidiary undertakings 13,178 13,114 Current assets Amounts owed by subsidiary undertakings 7,501 7,013 Other debtors — 9 Other investments: equity securities - fair value through other comprehensive income 266 683 Cash at bank and in hand 45 1,711 7,812 9,416 Liabilities: amounts falling due within one year Subordinated liabilities (21) (1,725) Debenture loans (361) — Commercial paper (501) (500) Amounts owed to subsidiary undertakings (614) (161) Tax payable (9) (7) Accruals and deferred income (63) (85) (1,569) (2,478) Net current assets 6,243 6,938 Total assets less current liabilities 19,421 20,052 Liabilities: amounts falling due after more than one year Subordinated liabilities (2,265) (2,350) Debenture loans (1,614) (1,702) Other borrowings — (350) (3,879) (4,402) Total net assets 15,542 15,650 Capital and reserves Share capital 182 182 Share premium 5,006 5,010 Profit and loss account 10,354 10,458 Shareholders’ funds 15,542 15,650 The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Changes in Equity (FRS 101 basis) Total Share Share Profit and shareholders' capital premium loss account funds $m $m $m $m Balance at 1 Jan 2020 172 2,625 10,376 13,173 Total comprehensive loss for the year — — (85) (85) Transactions with owners, recorded directly in equity New share capital subscribed 1 12 — 13 Share-based payment transactions — — (1) (1) Dividends — — (814) (814) Total contributions by and distributions to owners 1 12 (815) (802) Balance at 31 Dec 2020/1 Jan 2021 173 2,637 9,476 12,286 Profit for the year — — 2,648 2,648 Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income — — 273 273 Total comprehensive income for the year — — 2,921 2,921 Transactions with owners, recorded directly in equity New share capital subscribed 9 2,373 — 2,382 Demerger dividend in specie of Jackson — — (1,735) (1,735) Share-based payment transactions — — 217 217 Other dividends — — (421) (421) Total contributions by and distributions to owners 9 2,373 (1,939) 443 Balance at 31 Dec 2021 / 1 Jan 2022 182 5,010 10,458 15,650 Profit for the year — — 455 455 Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income — — (125) (125) Total comprehensive income for the year — — 330 330 Transactions with owners, recorded directly in equity New share capital subscribed — (4) — (4) Share-based payment transactions — — 40 40 Dividends — — (474) (474) Total contributions by and distributions to owners — (4) (434) (438) Balance at 31 Dec 2022 182 5,006 10,354 15,542 The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Statements of Cash Flows (FRS 101 Basis) Years ended 31 December 2022 $m 2021 $m 2020 $m Operating activities Net cash inflow from operating activities before interest and tax 664 417 273 Interest paid (204) (328) (320) Taxes (paid) received (4) (13) 93 Equity dividends paid (474) (421) (814) Net cash outflow from operating activities (18) (345) (768) Financing activities Issuance of ordinary share capital (4) 2,383 13 Issuance of core structural borrowings 346 995 983 Redemption of core structural borrowings (2,075) (1,250) — Movement in commercial paper and other borrowings to support a short-term fixed income securities program 1 (1) (19) Dividend income and returns of capital from investment in subsidiary undertakings — 215 112 Movement in share based payment receivable (111) — — Capitalisation of amount owed by subsidiary (62) — — Movement in net amount owed by subsidiary undertakings (36) (374) (370) Net cash (outflow) inflow from financing activities (1,941) 1,968 719 Investing activities Disposal of Jackson shares 293 83 — Net cash inflow from investing activities 293 83 — Net cash (outflow) inflow for the year (1,666) 1,706 (49) Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities before interest and tax Profit (loss) on ordinary activities before tax 460 2,642 (66) Add back: interest charged to profit or loss 207 328 320 Adjustments for non-cash items: Non-cash dividends paid — (2,968) — Revaluation of Jackson on distribution in 2021 — 439 — Gain on realisation of Jackson shares — (23) — Foreign currency exchange and other movements 8 (6) 8 Decrease (increase) in debtors 9 (4) (1) (Increase) decrease in creditors (20) 9 12 Net cash inflow from operating activities before interest and tax 664 417 273 The accompanying notes are an integral part of this condensed financial information Schedule II Condensed Financial Information of Registrant Prudential plc Notes to the Condensed Financial Statement Schedule 31 December 2022 1 Basis of preparation The financial statements of the parent company, which comprise the profit and loss accounts, statement of financial position, statement of changes in equity, statement of cash flows and related notes, are prepared in accordance with UK Generally Accepted Accounting Practice, including Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’). In preparing these financial statements, the Company applies the recognition and measurement requirements in accordance with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) but makes presentational amendments where necessary in order to comply with the UK Companies Act 2006. The Company and Group manages its cash resources, remittances and financing primarily in US dollars. Accordingly, the functional currency of the Company is US dollars. 2 Significant accounting policies Investments in subsidiary undertakings Investments in subsidiary undertakings are shown at cost, less impairment. Investments are assessed for impairment by comparing the net assets of the subsidiary undertakings with the carrying value of the investment. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost, less provisions. Provisions are determined using the expected credit loss approach under IFRS 9. Financial instruments Under IFRS 9, except for derivative instruments (where applicable) that are mandatorily classified as fair value through profit or loss and the Company’s financial investment in Jackson’s equity securities (as discussed below), all of the financial assets and liabilities of the Company are held at amortised cost.The Company assesses impairment on its loans and receivables using the expected credit loss approach. The expected credit loss on the Company’s loans and receivables, the majority of which represent loans to its subsidiaries, have been assessed by taking into account the probability of default on those loans. In all cases, the subsidiaries are expected to have sufficient resources to repay the loan either now or over time based on projected earnings. For loans recallable on demand, the expected credit loss has been limited to the impact of discounting the value of the loan between the balance sheet date and the anticipated recovery date. For loans with a fixed maturity date the expected credit loss has been determined with reference to the historic experience of loans with equivalent credit characteristics. Upon the demerger of Jackson in September 2021, the Company has made the election under IFRS 9 to measure its retained interest in Jackson’s equity securities at ‘fair value through other comprehensive income’. Under this designation, only dividend income from this retained interest is recognised in the profit or loss of the Company. Unrealised gains and losses are recognised in other comprehensive income and there is no recycling to the profit or loss on derecognition. Borrowings Borrowings are initially recognised at fair value, net of transaction costs, and subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds, net of transaction costs, is amortised through the profit and loss account to the date of maturity or, for subordinated debt, over the expected life of the instrument. Dividends Interim dividends are recorded in the period in which they are paid. Foreign currency translation Transactions not denominated in the Company’s functional currency, US dollars, are initially recorded at the functional rate of currency prevailing on the date of the transaction. Monetary assets and liabilities not denominated in the Company’s functional currency are translated to the Company's functional currency at year end spot rates. The impact of these currency translations is recorded within the profit and loss account for the year. Tax Current tax expense is charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year. To the extent that losses of an individual UK company are not offset, they can be carried back for one year or carried forward indefinitely to be offset, Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ‘Income Taxes’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. Share-based payments The Group offers share award and option plans for certain key employees and a Save As You Earn (‘SAYE’) plan for all UK and certain overseas employees. The share-based payment plans operated by the Group are mainly equity-settled. Under IFRS 2 ‘Share-based payment’, where the Company, as the parent company, has the obligation to settle the options or awards of its equity instruments to employees of its subsidiary undertakings, and such share-based payments are accounted for as equity-settled in the Group financial statements, the Company records an increase in the investment in subsidiary undertakings for the value of the share options and awards granted with a corresponding credit entry recognised directly in equity. The value of the share options and awards granted is based upon the fair value of the options and awards at the grant date, the vesting period and the vesting conditions. Cash receipts from business units in respect of newly issued share schemes are treated as returns of capital within investments in subsidiaries . 3 Dividends received from subsidiary undertakings The parent company received dividends totalling $708 million from its consolidated subsidiary undertakings in 2022 (2021: $3,597 million; 2020: $406 million). 4 Reconciliation from the FRS 101 parent company results to the IFRS Group results The parent company financial statements are prepared in accordance with FRS 101 and the Group financial statements are prepared in accordance with IFRS Standards as issued by the IASB and international financial reporting standards adopted for use in the UK. The tables below provide a reconciliation between the FRS 101 parent company results and the IFRS Group results. Profit after tax 2022 $m 2021 $m 2020 $m Profit (loss) for the financial year of the Company in accordance with FRS 101 note (i) 455 2,648 (85) Accounting policy difference note (ii) 108 28 (18) Share in the IFRS result of the Group, net of distributions to the Company note (iii) 435 (4,718) 2,221 Profit (loss) after tax of the Group attributable to equity holders in accordance with IFRS note (iv) 998 (2,042) 2,118 Shareholders' equity 31 Dec 2022 $m 31 Dec 2021 $m Shareholders’ funds of the Company in accordance with FRS 101 15,542 15,650 Accounting policy difference note (ii) 66 19 Share in the IFRS net equity of the Group note (iii) 1,352 1,419 Shareholders’ equity of the Group in accordance with IFRS 16,960 17,088 Notes (i) The Company’s profit (loss) for the financial year includes distributions to the Company from subsidiaries. (ii) Accounting policy difference represents the difference in accounting policy for expected credit losses on loan assets, and the difference in treatment of realised gains and losses on investments classified as fair value through other comprehensive income, as the Company has adopted IFRS 9 while the Group applies IAS 39. (iii) The ‘Share in the IFRS result and net equity of the Group’ line represents the parent company’s equity in the earnings and net assets of its subsidiaries and associates. The movement relative to the prior period reflects movements in the results of the Group relative to the result of the Company. (iv) The profit (loss) for the year of the parent company in accordance with IFRS includes dividends received from subsidiary undertakings (note 3). 5 Guarantees provided by the parent company In certain instances the parent company has guaranteed that its subsidiaries will meet their obligations when they fall due for payment. 6 The Company’s interest in the equity securities of Jackson Financial Inc are recognised as a financial investment at ‘fair value through other comprehensive income’. Transactions in 2022 reduced the Company’s interest in Jackson to 9.2 per cent (both voting and economic interest) at 31 December 2022 (31 December 2021: 18.4 per cent economic interest with 18.5 per cent voting interest). The fair value of the Company’s holding in the equity securities of Jackson Financial Inc. is determined by the use of current market bid prices, and is categorised as Level 1: Quoted prices (unadjusted in active markets) of the IFRS 13 ‘Fair Value Measurement’ defined fair value hierarchy. A loss of $125 million (2021: $273 million gain) has been recognised in other comprehensive income for the year in respect of these instruments. 7 Post balance sheet events Dividends The second interim dividend for the year ended 31 December 2022, which was approved by the Board of Directors after 31 December 2022, is described in note B5 of the Group IFRS consolidated financial statements. Debt redemption On 20 January 2023, the Company redeemed a senior debt instrument of £ 300 million, as described in note C5.1 of the Group IFRS consolidated financial statements. Debt Transfer On 2 March 2023 the Company transferred all its external debt instruments, classified as core structural borrowings, to a wholly-owned indirect subsidiary of the Company, Prudential Funding (Asia) plc, in exchange for assuming intercompany debt liabilities with similar terms to the transferred instruments. The Company has provided a guarantee to holders of the debt instruments in the event of default by Prudential Funding (Asia) plc. The effect of this transaction, which in substance crystallises the difference between the fair value and the carrying value of the debt, is a gain of approximately $ 0.4 billion. |
Basis of preparation and acco_2
Basis of preparation and accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting policies | |
Basis of preparation and exchange rates | A1 Basis of preparation and exchange rates Prudential plc (‘the Company’) together with its subsidiaries (collectively, ‘the Group’ or ‘Prudential’) provides life and health insurance and asset management products in Asia and Africa. The Group is headquartered in Hong Kong. Basis of preparation These consolidated financial statements have been prepared in accordance with IFRS Standards as issued by the IASB and in accordance with UK-adopted international accounting standards. At 31 December 2022, there were no unadopted standards effective for the year ended 31 December 2022 which had an impact on the consolidated financial statements of the Group, and there were no differences between UK-adopted international accounting standards and IFRS Standards as issued by the IASB in terms of their application to the Group. The Group accounting policies are the same as those applied for the year ended 31 December 2021 with the exception of the adoption of the new and amended IFRS Standards as described in note A2. 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 these consolidated 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 address them, as well as the results of the Group’s stress and scenario 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 these consolidated financial statements are approved. No material uncertainties that may cast significant doubt on the ability of the Company and 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 consolidated financial statements for the year ended 31 December 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: Closing rate at year end Average rate for the year-to-date USD : local currency 31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2022 31 Dec 2021 31 Dec 2020 Chinese yuan (CNY) 6.95 6.37 6.54 6.73 6.45 6.90 Hong Kong dollar (HKD) 7.81 7.80 7.75 7.83 7.77 7.76 Indian rupee (INR) 82.73 74.34 73.07 78.63 73.94 74.12 Indonesian rupiah (IDR) 15,567.50 14,252.50 14,050.00 14,852.24 14,294.88 14,541.70 Malaysian ringgit (MYR) 4.41 4.17 4.02 4.40 4.15 4.20 Singapore dollar (SGD) 1.34 1.35 1.32 1.38 1.34 1.38 Taiwan dollar (TWD) 30.74 27.67 28.10 29.81 27.93 29.44 Thai baht (THB) 34.56 33.19 30.02 35.06 32.01 31.29 UK pound sterling (GBP) 0.83 0.74 0.73 0.81 0.73 0.78 Vietnamese dong (VND) 23,575.00 22,790.00 23,082.50 23,409.87 22,934.86 23,235.84 Foreign exchange translation In order to present the consolidated financial statements in USD, the results and financial position of entities not using USD as functional currency (ie the currency of the primary economic environment in which the entity operates) must be translated into USD. All assets and liabilities of entities not operating in USD are converted at closing exchange rates while all income and expenses are converted at average exchange rates where this is a reasonable approximation of the rates prevailing on transaction dates. The impact of these foreign exchange translations into the Group’s USD presentation currency is recorded as a separate component in the Statement of comprehensive income. Upon the disposal of the entity, the related cumulative foreign exchange translation differences are recycled from other comprehensive income to the income statement as part of the gain or loss on disposal. The general principle for converting foreign currency transactions to the functional currency of an entity is to translate at the functional currency spot rate prevailing at the date of the transactions. Foreign currency monetary assets and liabilities are translated at the spot exchange rate for the functional currency at the reporting date. Changes resulting from the foreign exchange translations into the functional currency of the entity are recognised in the income statement . The consolidated financial statements do not represent Prudential’s statutory accounts for the purposes of the UK Companies Act. These financial statements are based on the prescribed formats. The Group’s external auditors have reported on the 2022, 2021 and 2020 statutory accounts. Statutory accounts for 2021 and 2020 have been delivered to the UK Registrar of Companies and those for 2022 will be delivered following the Company’s Annual General Meeting. The auditor’s reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006. |
New accounting pronouncements | The IASB has issued the following new accounting pronouncements to be effective from 1 January 2022: – 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 consolidated financial statements. |
Measurement of policyholder liabilities and unallocated surplus of with-profits | Measurement of policyholder liabilities and unallocated surplus of with-profits The measurement basis of policyholder liabilities is dependent upon the classification of the contracts under IFRS 4. Impacts $146.7 billion of policyholder liabilities and unallocated surplus of with-profits funds including those held by joint venture and associates. Policyholder liabilities are estimated based on a number of actuarial assumptions (eg mortality, morbidity, policyholder behaviour and expenses). The Group applies judgement in determining the actuarial assumptions to be applied to estimate the future amounts due to or from the policyholder in the measurement of the policyholder liabilities. IFRS 4 permits the continued usage of previously applied Generally Accepted Accounting Practices (GAAP) for insurance contracts and investment contracts with discretionary participating features. A modified statutory basis of reporting was adopted by the Group on first time adoption of IFRS Standards in 2005. This was set out in the Statement of Recommended Practice issued by the Association of British Insurers (ABI SORP). The ABI SORP was withdrawn for the accounting periods beginning in or after 2015. As used in these consolidated financial statements, the term 'grandfathered' ABI SORP refers to the requirements of the pronouncements prior to its withdrawal. For investment contracts that do not contain discretionary participating features, IAS 39 is applied and, where the contract includes an investment management element, IFRS 15 ‘Revenue from Contracts with Customers’ applies. The current policies applied for the Group’s insurance businesses are noted below. Measurement of insurance contract liabilities and investment contract liabilities with discretionary participation features The policyholder liabilities for businesses of the insurance operations are generally determined in accordance with methods prescribed by local GAAP, adjusted to comply with the 'grandfathered' ABI SORP where necessary. Refinements to the local reserving methodology are generally treated as changes in estimates, dependent on their nature. The UK-style with-profits funds’ liabilities in Hong Kong are valued under the realistic basis in accordance with the requirements of ‘grandfathered’ FRS 27 ‘Life Assurance’ (issued by the UK Accounting Standards Board in 2004 and withdrawn in 2015). The realistic basis requires the value of liabilities to be calculated as the sum of a with-profits benefits reserve, future policy-related liabilities and the realistic current liabilities of the fund. In Taiwan and India, US GAAP principles are applied. Further details on how liabilities are determined for material product types are set out in note C3.4. This includes the approach to assumption setting including a margin for prudence. The sensitivity of the insurance operations to variations in key economic assumptions, as well as the insurance risks of mortality and morbidity, is discussed in note C6.1. In April 2022 Prudential Hong Kong Limited received approval from the Hong Kong IA to early adopt the new risk-based capital regime effective from 1 January 2022. The implication for IFRS reporting of the Group is as explained further in note C3.2. Measurement of unallocated surplus of with-profits funds Unallocated surplus of with-profits funds represents the excess of assets over policyholder liabilities, determined in accordance with the Group's accounting policies, that have yet to be appropriated between policyholders and shareholders for the Group's with-profits funds in Hong Kong and Malaysia. The unallocated surplus is recorded wholly as a liability with no allocation to equity. The annual excess or shortfall of income over expenditure of the with-profits funds, after declaration and attribution of the cost of bonuses to policyholders and shareholders, is transferred to or from the unallocated surplus each period through a charge or credit to the income statement. 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. The balance of the unallocated surplus is determined after full provision for deferred tax on unrealised appreciation or depreciation on investments. Liability adequacy test The Group performs adequacy testing on its insurance liabilities to ensure that the carrying amounts (net of related deferred acquisition costs and, where relevant, present value of acquired in-force business) is sufficient to cover current estimates of future cash outflows of the in-force policies over the expected lives. Any deficiency is immediately charged to the income statement. The liability adequacy test is performed at the level of a portfolio of contracts that are subject to broadly similar risks and managed together as a single portfolio which may be at an entity or business unit level, depending on how the business is managed. |
Presentation of results before tax attributable to shareholders | Presentation of results before tax attributable to shareholders Profit before tax is a significant IFRS income statement item. The Group has chosen to present a measure of profit before tax attributable to shareholders which distinguishes between tax borne by shareholders and tax attributable to policyholders to support understanding of the performance of the Group. Profit before tax attributable to shareholders is $1,461 million and compares to profit before tax of $1,482 million. The total tax charge for the Group reflects tax that, in addition to that relating to shareholders’ profit, is also attributable to policyholders through the interest in with-profits or unit-linked funds. Further detail is provided in note B3. Reported IFRS profit before the tax measure is therefore not representative of pre-tax profit attributable to shareholders. Accordingly, in order to provide a measure of pre-tax profit attributable to shareholders, the Group has chosen to adopt an income statement presentation of the tax charge and pre-tax results that distinguishes between policyholders’ and shareholders’ returns. |
Segmental analysis of results and earnings attributable to shareholders | Segmental analysis of results and earnings attributable to shareholders The Group uses adjusted operating profit as the segmental measure of its results. Total segmental adjusted operating profit is $4,106 million. The basis of calculation of adjusted operating profit is provided in note B1.2. For shareholder-backed business, with the exception of securities which are treated as available-for-sale (AFS), and assets classified as loans and receivables at amortised cost, all financial investments and investment properties are designated as assets at fair value through profit or loss. Short-term fluctuations in fair value affect the result for the year and the Group provides additional analysis of results before and after the effects of short-term fluctuations in investment returns, together with other items that are of a short-term, volatile or one-off in nature. Short-term fluctuations in investment returns on assets held by with-profits funds in Hong Kong, Malaysia and Singapore do not affect directly reported shareholder results. This is because (i) the unallocated surplus of with-profits funds is accounted for as a liability and (ii) excess or deficit of income and expenditure of the funds over the required surplus for distribution are transferred to or from policyholder liabilities (including the unallocated surplus). |
Carrying value of distribution rights intangible assets | Carrying value of distribution rights intangible assets The Group applies judgement to assess whether factors such as the financial performance of the distribution arrangements, changes in relevant legislation and regulatory requirements indicate an impairment of intangible assets representing distribution rights. To determine the impaired value, the Group estimates the discounted future expected cash flows arising from the cash generating unit containing the distribution rights. Affects $3.6 billion of assets as shown in note C4.2. Distribution rights relate to bancassurance partnership arrangements for the distribution of products for the term of the contractual agreement with the bank partner, for which an asset is recognised based on fees paid and fees payable not subject to performance conditions. Distribution rights impairment testing is conducted when there is an indication of an impairment. To assess indicators of an impairment, the Group monitors a number of internal and external factors, including indications that the financial performance of the arrangement is likely to be worse than expected and changes in relevant legislation and regulatory requirements that could impact the Group’s ability to continue to sell new business through the bancassurance channel, and then applies judgement to assess whether these factors indicate that an impairment has occurred. If an impairment has occurred, a charge is recognised in the income statement for the difference between the carrying value and recoverable amount of the asset. The recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is calculated as the present value of future expected cash flows from the asset or the cash generating unit to which it is allocated. |
Deferred acquisition costs (DAC) for insurance contracts | Deferred acquisition costs (DAC) for insurance contracts The Group estimates projected future profits/margins to assess whether adjustments to the carrying value or amortisation profile of DAC asset are necessary. Impacts $3.3 billion of DAC as shown in note C4.2. Except for acquisition costs of the UK-style with-profits funds’ contracts in Hong Kong, which are accounted for under the ‘grandfathered’ FRS 27, costs of acquiring new insurance business are accounted for in a way that is consistent with the principles of the ‘grandfathered’ ABI SORP. The Group determines qualifying costs that should be capitalised (ie those costs of acquiring new insurance contracts that meet the criteria under the Group’s accounting policy for DAC) shown by an explicit carrying value in the balance sheet. However, in some insurance operations, the deferral is implicit through the reserving basis. DAC is amortised against the profit margins within future revenues on the related insurance policies. For some business units this is approximated by amortising DAC on a straight-line basis over the expected duration of the policies. The recoverability of the DAC is measured and the DAC asset is deemed impaired if the projected margins (which are estimated based on a number of assumptions similar to those underlying policyholder liabilities) are less than the carrying value. To the extent that the future margins differ from those anticipated, an adjustment to the carrying value will be necessary either through a charge to the income statement (if the projected margins are lower than carrying value) or through a change in the amortisation profile. For those business units applying US GAAP to insurance assets and liabilities, as permitted by the ‘grandfathered’ ABI SORP, acquisition costs are deferred and amortised as per the US GAAP requirements under ASC 944 Financial Services - Insurance. |
Financial Investments - Valuation | Financial investments – Valuation Financial investments held at fair value represent $135.7 billion of the Group’s total assets. Financial investments held at amortised cost represent $8.4 billion of the Group’s total assets. The Group estimates the fair value of financial investments that are not actively traded using quotations from independent third parties or internally developed pricing models. The Group holds the majority of its financial investments at fair value (primarily through profit or loss). Financial investments held at amortised cost primarily comprise loans and deposits. Determination of fair value The fair values of the financial instruments for which fair valuation is required under IFRS Standards are determined by the use of quoted market 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. Further details are included in note C2.1. 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. Quoted market prices are used to value investments having quoted prices. Actively traded investments without quoted prices are valued using prices provided by third parties such as brokers or pricing services. Financial investments measured at fair value are classified into a three-level hierarchy as described in note C2.1. If the market for a financial investment of the Group is not active, the Group establishes fair value by using quotations from independent third parties, such as brokers or pricing services, or by using internally developed pricing models. Priority is given to publicly available prices from independent sources when available, but overall the source of pricing and/or the valuation technique is chosen with the objective of arriving at a fair value measurement which reflects the price at which an orderly transaction would take place between market participants on the measurement date. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these financial investments. Details of the financial investments classified as 'level 3' to which valuation techniques are applied and the sensitivity of profit before tax to a change in the valuation of these items, are presented in note C2.2. The Group uses the trade date method to account for regular purchases and sales of financial assets. The Group holds financial assets in accordance with IAS 39, whereby subject to specific criteria, financial instruments are required to be accounted for under one of the following categories: – Financial assets and liabilities at fair value through profit or loss (FVTPL): this comprises assets and liabilities designated by management as FVTPL on inception and derivatives. This includes instruments that are managed and the performance evaluated on a fair value basis, including liabilities related to net assets attributable to unit holders of consolidated investment funds and policyholder liabilities for investment contracts without discretionary participation features. All investments within this category are measured at fair value with all changes thereon being recognised in investment return in the income statement. – Financial investments on an available-for-sale (AFS) basis: this comprises assets that are designated by management as AFS and/or do not fall into any of the other categories. These assets are initially recognised at fair value plus attributable transaction costs and are subsequently measured at fair value. Interest and/or dividend income is recognised in the income statement. Unrealised gains and losses are recognised in other comprehensive income. Upon disposal or impairment, accumulated unrealised gains and losses are transferred from other comprehensive income to the income statement as realised gains or losses. Subsequent to the demerger of Jackson in September 2021, the Group has designated its retained interest in Jackson (as described in note D1.2) as AFS equity securities. – Loans and receivables: except for those designated as FVTPL or AFS, these instruments comprise non-quoted investments that have fixed or determinable payments, including loans collateralised by mortgages, deposits, loans to policyholders and other unsecured loans and receivables. These investments are initially recognised at fair value plus transaction costs. Subsequently, these instruments are carried at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset. When assets held at amortised cost are subject to impairment testing, estimated future cash flows are compared to the carrying value of the asset. The estimated future cash flows are discounted using the financial asset’s original or variable effective interest rate and exclude credit losses that have not yet been incurred. If, in subsequent periods, an impaired loan or receivable recovers in value (in part or in full) and this recovery can be objectively related to an event occurring after the impairment, then any amount determined to have been recovered is reversed through the income statement. |
New accounting pronouncements not yet effective | A3.2 New accounting pronouncements not yet effective The following standards, interpretations and amendments have been issued by the IASB but are not yet effective for the Group in 2022. The Group prepares consolidated financial statements in accordance with IFRS Standards as issued by the IASB and UK-adopted international accounting standards. This is not intended to be a complete list as only those standards, interpretations and amendments that could have a material impact on the Group’s consolidated financial statements are discussed. IFRS 9 ‘Financial instruments: Classification and measurement’ IFRS 9 became mandatorily effective for the annual periods beginning on or after 1 January 2018, with early application permitted and transitional rules apply. The Group met the eligibility criteria for temporary exemption under the Amendments to IFRS 4 from applying IFRS 9 and has accordingly deferred the adoption of IFRS 9 until 1 January 2023. The Group is eligible as its activities are predominantly to issue insurance contracts based on the criteria as set out in the amendments to IFRS 4. The required disclosure of the fair value of the Group’s financial assets, showing the amounts for instruments that meet the ‘Solely for Payment of Principal and Interest’ (SPPI) criteria but do not meet the definition of held for trading and are not managed and evaluated on a fair value basis separately from all other financial assets, is provided below. The Group is implementing this standard in conjunction with IFRS 17 as permitted. IFRS 9 replaces the existing IAS 39 The classification and the measurement of financial assets and liabilities IFRS 9 redefines the classification of financial assets. Based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’), financial assets are classified into one of the following categories: amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). An option is also available at initial recognition to irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. Under IAS 39, 97 per cent of the Group’s financial investments are valued at FVTPL and the vast majority of its investments will continue to be classified as such under IFRS 9. The Company expects to make an election under IFRS 9 to measure its retained interest in Jackson’s equity securities at FVOCI. Under this designation, only dividend income from this retained interest is recognised in the profit or loss of the Company. Unrealised gains and losses are recognised in other comprehensive income and there is no recycling to the profit or loss on derecognition. The existing IAS 39 amortised cost measurement for financial liabilities is largely maintained under IFRS 9. For financial liabilities designated at FVTPL IFRS 9 requires changes in fair value due to changes in the entity’s own credit risk to be recognised in other comprehensive income. The calculation of the impairment charge relevant for financial assets held at amortised cost or FVOCI A new impairment model based on an expected credit loss approach replaces the existing IAS 39 incurred loss impairment model, resulting in earlier recognition of credit losses compared to IAS 39. This aspect is the most complex area of IFRS 9 to implement and will involve significant judgements and estimation processes. The Group has assessed the scope of assets to which these requirements will apply and expects that the vast majority of the financial investments of the Group to be held at FVTPL to which these requirements will not apply. Accordingly, no significant amount of additional impairment is expected to be recognised by the Group under the expected credit loss approach as a result of the adoption of IFRS 9. The hedge accounting requirements which are more closely aligned with the risk management activities The Group has not applied hedge accounting treatment under IAS 39 and therefore, there is no impact in this area for the Group upon the adoption of IFRS 9. The parent company and a number of intermediate holding companies and non-insurance subsidiaries adopted IFRS 9 in 2018 in their individual or separate financial statements where these statements are prepared in accordance with IFRS, including the UK Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. The public availability of the financial statements for these entities varies according to the local laws and regulations of each jurisdiction. The results for these entities continue to be accounted for on an IAS 39 basis in these consolidated financial statements. The fair value of the Group’s directly held financial assets at 31 December 2022 and 2021 are shown below. Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) as defined by IFRS 9 are shown separately. This excludes financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis. Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2022 during 2022 31 Dec 2022 during 2022 $m $m $m $m Accrued investment income 1,135 — — — Other debtors 1,694 — — — Loans note 2,189 15 468 (37) Equity securities and holdings in collective investment schemes — — 57,679 (8,420) Debt securities — — 76,989 (21,803) Derivative assets, net of derivative liabilities — — (432) (4,487) Deposits 6,275 — — — Cash and cash equivalents 5,514 — — — Total financial assets, net of derivative liabilities 16,807 15 134,704 (34,747) Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2021 during 2021 31 Dec 2021 during 2021 $m $m $m $m Accrued investment income 1,171 — — — Other debtors 1,779 — — — Loans note 2,126 41 647 (1) Equity securities and holdings in collective investment schemes — — 61,601 4,061 Debt securities 226 — 98,868 (3,164) Derivative assets, net of derivative liabilities — — 219 (943) Deposits 4,741 — — — Cash and cash equivalents 7,170 — — — Total financial assets, net of derivative liabilities 17,213 41 161,335 (47) Note The loans that pass the SPPI test in the tables above are primarily carried at amortised cost under IAS 39. Further information on these loans is as provided in note C2.2. The underlying financial assets of the Group’s joint ventures and associates accounted for using the equity method are analysed below into those which meet the SPPI condition of IFRS 9, excluding any financial assets that meet the definition of held for trading or are managed and evaluated on a fair value basis, and all other financial assets. Fair value information of the financial assets held by CITIC-Prudential Life Insurance Company (CPL), the Group’s individually material joint venture, is shown in the table below. The amounts disclosed represent 100 per cent of the entity’s financial assets and not the Group’s share of those amounts and have been prepared on the same basis as the Group’s consolidated financial statements. Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during CPL (100% of the financial assets of the entity) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 176 170 — — — — Other debtors 667 620 — — — — Loans 674 656 — — — — Equity securities and holdings in collective investment schemes — — 15,698 12,882 (1,314) 254 Debt securities — — 11,478 11,976 37 184 Deposits 1,174 1,210 — — — — Cash and cash equivalents 561 422 — — — — Total financial assets 3,252 3,078 27,176 24,858 (1,277) 438 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. Fair value information for the Group’s share of financial assets of other joint ventures and associates in aggregate is set out in the table below: Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during Other JVs and associates (Prudential’s share) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 83 85 — — — — Other debtors 143 187 — — — — Loans — 26 — — — — Equity securities and holdings in collective investment schemes — — 3,657 3,859 133 680 Debt securities — — 3,476 3,674 (131) (121) Deposits 335 203 — — — — Cash and cash equivalents 380 510 — — — — Total financial assets 941 1,011 7,133 7,533 2 559 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. IFRS 17 ‘Insurance Contracts’ IFRS 17 ‘Insurance Contracts’ became effective on 1 January 2023 and replaces IFRS 4 ‘Insurance Contracts’. IFRS 4 permitted insurers to continue to use the statutory basis of accounting for insurance assets and liabilities that existed in their jurisdictions prior to January 2005. IFRS 17 replaced this with a new measurement model that significantly changes the way insurance and reinsurance contracts are accounted for, albeit the scope of IFRS 17 and IFRS 4 is very similar. Therefore, nearly all of the Group’s insurance and investment contracts with discretionary participation features accounted under IFRS 4 will be accounted for under IFRS 17. The transition date of the Group for IFRS 17 was 1 January 2022. The Group is adopting IFRS 17 on its mandatory effective date on 1 January 2023, alongside the adoption of IFRS 9. IFRS 17 implementation programme The requirements of the new standard are complex and require a fundamental change to accounting, presentation and disclosures for insurance contracts as well as the application of significant judgement and new estimation techniques. The implementation of this standard has involved significant enhancements to IT, actuarial and finance systems of the Group. The Group has been implementing IFRS 17 and IFRS 9 through a Group-wide implementation programme. A Group-wide Steering Committee, chaired by the Group Chief Financial Officer, provides oversight and strategic direction to the implementation programme. Regular updates on progress are provided to the Group Audit Committee and during 2022 members of the Committee, as well as the Board, received training on the new requirements. Since the last Annual Report, the systems implementation has been completed and the transition impacts at 1 January 2022 have been calculated. The production of half year and full year 2022 comparatives using the IFRS 17 accounting standard is scheduled to be completed in the first half of 2023. Overview of IFRS 17 IFRS 17 requires liabilities for insurance contracts to be measured as the total of: – fulfilment cash flows, comprising the best estimate of the present value of future cash flows within the contract boundary that are expected to arise and an explicit risk adjustment for non-financial risk; and – a contractual service margin (CSM) that is representing the deferral of any day-one gains arising on initial recognition. Losses are recognised directly into the income statement. For measurement purposes, contracts are grouped together into contracts of similar risk, profitability profile and issue year, with further divisions for contracts that are managed separately. The establishment of CSM on the Group’s in-force business and transition approach Transition refers to the determination of the opening balance sheet for the first year of comparative information presented under IFRS 17 (ie at 1 January 2022). The future cash flows and risk adjustment are measured on a current basis in the same manner as they would be calculated for subsequent measurement. The key component of transition is therefore the determination of the CSM. The standard requires IFRS 17 to be applied retrospectively (the ‘fully retrospective approach’) unless impracticable. If a fully retrospective approach is impracticable there is an option to choose either a modified retrospective approach or a fair value approach. If reasonable and supportable information necessary to apply the modified retrospective approach is not available, the fair value approach must be applied. The Group applied all three approaches on transition, after taking into account the information that is available to be used for the different groups of contracts of the Group. The fair value approach is applied, in particular, where suitable historical information required to apply the retrospective transition approaches is no longer practicably available. Profit for insurance contracts under IFRS 17 IFRS 17 introduces a new measure of insurance revenue, based on the delivery of services to policyholders and excluding any premiums related to the investment elements of policies, which will be significantly different from existing premium revenue measures, currently reported in the income statement. Profit for insurance contracts under IFRS 17 is represented by the recognition of the services provided to policyholders in the period (release of the CSM), release from non-economic risk (release of risk adjustment) and the excess of the actual investment return in the period over the effect of the unwind of the rate used to discount the General Measurement Model liabilities , together with operating variances as appropriate. CSM is released in line with coverage units that are a measure of the quantity of benefits provided under a contract and the period over which coverage is provided. The CSM is released as profit over the coverage period of the insurance contract, reflecting the delivery of services to the policyholder. Under IFRS 17 insurance contracts are measured under either the General Measurement Model (GMM), the Variable Fee Approach (VFA) for contracts with direct participating features or the simplified Premium Allocation Approach (PAA). The Group predominantly uses the VFA and GMM, depending on the specific characteristics of the insurance contracts. The Group makes very limited use of the PAA for some small portfolios of short duration contracts. Reinsurance contracts held are measured under the GMM. We estimate that over two-thirds of the CSM at transition is calculated using the VFA and relates to the Group’s with-profits products, the Group’s flagship critical illness products in Hong Kong and unit-linked products with a low proportion of protection riders. The contracts calculated using the GMM, include the Group’s non-profit protection business and unit-linked business with a high proportion of protection riders. The fulfilment cash flows comprise the best estimate of the present value of future cash flows within the contract boundary that are expected to arise and an explicit risk adjustment for non-financial risk. The discount rate applied to derive the present value of future cash flows is determined on a bottom-up basis, starting with a liquid risk-free yield curve and adding an illiquidity premium to reflect the characteristics of the insurance contracts. The risk adjustment reflects the compensation the Group requires for bearing the uncertainty about the amount and timing of the cash flows from non-financial risk as the Group fulfils insurance contracts, determined by the Group using a confidence level approach. The fulfilment cash flows are updated each reporting date to reflect current conditions. For contracts with direct participating features which are accounted for under the VFA, the CSM represents the variable fee to shareholders and it is adjusted to reflect the effect of changes in economics as well as experience variances and/or assumptions changes that relate to future services. For contracts accounted for under GMM, the CSM is accreted using the locked-in discount rates and only adjusted to reflect the effect of non-economic experience variances and/or assumptions changes that relate to future services. The adjustments to the CSM are determined using the locked-in discount rates. Expected impact on transition (1 January 2022) The Group is adopting IFRS 17 retrospectively to its 2022 comparatives as required by the standard. As permitted by IFRS 9, the Group is not planning to restate the 2022 comparatives on initial application of IFRS 9 but the Group is taking advantage of the classification overlay for selected assets, principally to change the classification of certain debt securities, so that they are valued at amortised cost rather than at fair value under IAS 39, and certain loans, so that they are valued at fair value instead of the prior amortised cost valuation. Changes from IFRS 9 have an immaterial impact on the Group's financial statements. The adoption of IFRS 17 and the IFRS 9 classification overlay are estimated to increase the Group shareholders’ equity at 1 January 2022 to between $18.9 - $19.8 billion. This reflects the release of prudent margins from our legacy accounting basis, particularly in Hong Kong, recognition of the shareholders’ share of the inherited estate within the with-profit funds and the net impact of timing differences in the pattern of profit recognition. The overall net impact of the IFRS 9 classification overlay at 1 January 2022 is insignificant given the vast majority of the Group’s financial investments will continue to be carried at fair value through profit or loss under IFRS 9, as currently applied under IAS 39. The Group is yet to complete production of its 2022 comparatives under the IFRS 17 accounting standard. In addition we continue to review our IFRS 17 accounting policies and approach to ensure they remain in line with market practice. Therefore the impacts discussed above are subject to change prior to finalisation of the Group’s financial statements for the year ending 31 December 2023. Other new accounting pronouncements In addition to the above, the following new accounting pronouncements have also been issued and are not yet effective but the Group is not expecting them to have a significant impact on the Group’s consolidated financial statements: – Amendments to IAS 1 ‘Classification of liabilities as current or non-current’ issued in January 2020 and effective from 1 January 2023. An exposure draft was issued in November 2021 proposing for this effective date to be delayed to periods starting no earlier than 1 January 2024; – Amendments to IAS 1 and IFRS Practice Statement 2 ‘Disclosure of accounting policies’ issued in February 2021 and effective from 1 January 2023; – Amendments to IAS 8 ‘Definition of accounting estimates’ issued in February 2021 and effective from 1 January 2023; – Amendments to IAS 12 ‘Deferred tax related to assets and liabilities arising from a single transaction’ issued in May 2021 and effective from 1 January 2023; – Amendments to IFRS 16 ‘Lease liability in a sale and leaseback’ issued in September 2022 and effective from 1 January 2024; and – Amendments to IAS 1 ‘Non-current liabilities with covenants’ issued in October 2022 and effective from 1 January 2024. |
Revenue | Premiums and annuity considerations for conventional and other protection type insurance policies are recognised as revenue when due. Premiums and annuity considerations for linked policies and other investment type policies are recognised as revenue when received or, in the case of unitised or unit-linked policies, when units are issued. These amounts exclude premium taxes and similar duties where Prudential collects and settles taxes borne by the policyholder. Policy fees charged on linked policies for mortality, morbidity, asset management and policy administration are recognised when related services are provided. |
Investment return | Investment return included in the income statement principally comprises interest income, dividends, investment appreciation and depreciation (realised and unrealised gains and losses) on investments designated as fair value through profit or loss, and realised gains and losses (including impairment losses) on items held at amortised cost and/or designated as AFS. Movements in unrealised appreciation or depreciation of securities designated as AFS are recorded in other comprehensive income. Interest income is recognised as it accrues. Dividends on equity securities are recognised on the ex-dividend date and rental income is recognised on an accrual basis. |
Share-based payments and related movements in own shares | The Company offers discretionary share awards to certain key employees and all-employee share plans in the UK and a number of Asia locations. The compensation expense charged to the income statement is primarily based upon the fair value of the awards granted, the vesting period and the vesting conditions. The Company has established trusts to facilitate the delivery of Prudential plc shares under some of these plans. The cost to the Company of acquiring these newly issued shares held in trusts is shown as a deduction from shareholders’ equity. |
Tax | Prudential is subject to tax in numerous jurisdictions and the calculation of the total tax charge inherently involves a degree of estimation and judgement. Current tax expense is charged or credited based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year and adjustments made in relation to prior years. The positions taken in tax returns where applicable tax regulation is subject to interpretation are recognised in full in the determination of the tax charge in the consolidated financial statements if the Group considers that it is probable that the taxation authority will accept those positions. Otherwise, provisions are established based on the likely amount of the liability, or recovery, by providing for the single best estimate of the most likely outcome or the weighted average expected value where there are multiple outcomes. The total tax charge includes tax expense attributable to both policyholders and shareholders. The tax expense attributable to policyholders comprises the tax on the income of the consolidated with-profits and unit-linked funds. In certain jurisdictions, life insurance companies are taxed on both their shareholders' profits and on their policyholders' insurance and investment returns on certain insurance and investment products. Although both types of tax are included in the total tax charge in the Group’s Consolidated income statement, they are presented separately in the Consolidated income statement to provide the most relevant information about tax that the Group pays on its profits. Deferred taxes are provided under the liability method for all relevant temporary differences. IAS 12 ‘Income Taxes’ does not require all temporary differences to be provided for, in particular, the Group does not provide for deferred tax on undistributed earnings of subsidiaries where the Group is able to control the timing of the distribution and the temporary difference created is not expected to reverse in the foreseeable future. Deferred tax assets are only recognised when it is more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period. |
Earnings per share | 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 year, 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 ordinary shares during the year. No adjustment is made if the impact is anti-dilutive overall. |
Derivatives and hedging | Derivative financial instruments are used to reduce or manage investment, interest rate and currency exposures, to facilitate efficient portfolio management and for investment purposes. The Group does not regularly seek to apply fair value or cash flow hedging treatment under IAS 39. The Group has no net investment, fair value or cash flow hedges under IAS 39 at 31 December 2022 and 2021. All derivatives that are not designated as hedging instruments are carried at fair value, with movements in fair value being recorded in the income statement. Embedded derivatives are embedded within other non-derivative host financial instruments and insurance contracts to create hybrid instruments. Embedded derivatives meeting the definition of an insurance contract are accounted for under IFRS 4. Where economic characteristics and risks of the embedded derivatives are not closely related to the economic characteristics and risks of the host instrument, and where the hybrid instrument is not measured at fair value with the changes in fair value recognised in the income statement, the embedded derivative is required to be bifurcated and carried at fair value as a derivative measured in accordance with IAS 39. In addition, the Group applies the option under IFRS 4 to not separate and fair value surrender options embedded in host contracts and with-profits investment contracts whose strike price is either a fixed amount or a fixed amount plus interest. |
Derecognition of financial assets and liabilities | Derecognition of financial assets and liabilities The Group’s policy is to derecognise financial assets when it is deemed that substantially all the risks and rewards of ownership have been transferred. The Group derecognises financial liabilities only when the obligation specified in the contract is discharged, cancelled or has expired. |
Reverse repurchase agreements, securities lending and repurchase agreements | The Group is party to various reverse repurchase agreements under which securities are purchased from third parties with an obligation to resell the securities. The securities are not recognised as investments in the statement of financial position but the right to receive the cash paid is recognised as deposits. The Group is also party to various securities lending agreements (including repurchase agreements) under which securities are loaned to third parties on a short-term basis. The loaned securities are not derecognised; rather, they continue to be recognised within the appropriate investment classification. To the extent cash collateral is received it is recognised on the statement of financial position with the obligation to repay the cash paid recognised as a liability. Other collateral is not recognised. |
Claims | Claims paid include maturities, annuities, surrenders, deaths and other claim events. Maturity claims are recorded as charges on the policy maturity date. Annuity claims are recorded when each annuity instalment becomes due for payment. Surrenders are charged to the income statement when paid. Death and other claims are generally recorded when notified with additional contract liabilities held, where appropriate, for ‘incurred but not reported’ (IBNR) claims. |
Business combinations | Business combination Business acquisitions are accounted for by applying the purchase method of accounting, which adjusts the net assets of the acquired company to fair value at the date of purchase. The excess of the acquisition consideration over the fair value of the assets and liabilities of the acquired business is recorded as goodwill. The Group chooses the full goodwill method or the partial goodwill method to calculate goodwill on an acquisition by acquisition basis. Expenses related to acquiring new subsidiaries are charged to the income statement in the period in which they are incurred and not included in goodwill. Income and expenses of acquired businesses are included in the income statement from the date of acquisition. Where the Group writes a put option, which if exercised triggers the purchase of non-controlling interests as part of its business acquisition, the put option is recognised as a financial liability at the acquisition date. Where risks and rewards remain with the non-controlling interests, a corresponding amount is deducted from equity. Any subsequent changes to the carrying amount of the put option liability are also recognised within equity. |
Goodwill | Goodwill Goodwill is capitalised and carried on the Group consolidated statement of financial position as an intangible asset at initial value less any accumulated impairment losses. Goodwill impairment testing is conducted annually and when there is an indication of impairment. Goodwill shown on the consolidated statement of financial position at 31 December 2022 represents amounts allocated to business units in respect of both acquired asset management and life businesses. There has been no impairment as at 31 December 2022 and 2021. |
Deferred acquisition costs and other intangible assets | Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. DAC are accounted for as described in note A3.1(c). Other intangible assets, such as distribution rights and software, are valued initially at the price paid to acquire or cost to develop them and are subsequently carried at cost less amortisation and any accumulated impairment losses. For intangibles other than DAC, amortisation follows the pattern in which the future economic benefits are expected to be consumed. If the pattern cannot be determined reliably, a straight-line method is applied. For software, the amortisation generally represents the licence period of the software acquired. Amortisation of intangible assets is charged to the ‘acquisition costs and other expenditure’ line in the Consolidated income statement. Impairment testing is conducted when there is an indication of impairment. |
Borrowings | Although initially recognised at fair value (net of transaction costs), borrowings are subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds (net of related issue costs) is amortised through the income statement to the date of maturity or, for hybrid debt, over the expected life of the instrument. |
Share capital, share premium and own shares | Shares are classified as equity when their terms do not create an obligation to transfer assets. Amounts recorded in share capital represent the nominal value of the shares issued. The difference between the proceeds received on issue of the shares, net of share issue costs, and the nominal value of the shares issued, is credited to share premium. Where the Company purchases shares for the purposes of employee incentive plans, the consideration paid, net of issue costs, is deducted from retained earnings. Upon issue or sale any consideration received is credited to retained earnings net of related costs. |
Property, plant and equipment | Property, plant and equipment comprise Group occupied properties and tangible assets. Property, plant and equipment also includes right-of-use assets for operating leases of properties occupied by the Group and leases of equipment and other tangible assets. All property, plant and equipment, including the right-of-use assets under operating leases, are held at cost less cumulative depreciation, calculated using the straight-line method, and impairment charge. |
Basis of consolidation | The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the followings are met: (1) it has power over an investee; (2) it is exposed to, or has rights to, variable returns from its involvement with the investee; and (3) it has the ability to use its power over the investee to affect its own returns. (a) Subsidiaries Subsidiaries are those investees that the Group controls. The majority of the Group’s subsidiaries are corporate entities. The Group performs a re-assessment of consolidation whenever there is a change in the substance of the relationship between the Group and an investee. Where the Group is deemed to control an entity, it is treated as a subsidiary and its results, assets and liabilities are consolidated. Where the Group holds a minority share in an entity with no control over the entity, the investments are carried at fair value within financial investments in the Consolidated statement of financial position. Entities consolidated by the Group include Qualifying Partnerships as defined under the UK Partnerships (Accounts) Regulations 2008 (the 'Partnerships Act'). The Group's limited partnership has taken advantage of the exemption under regulation 7 of the Partnerships Act from the financial statement requirements. This is under regulations 4 to 6, on the basis that the limited partnership is dealt with on a consolidated basis in these financial statements. (b) Joint ventures and associates Joint ventures are joint arrangements arising from a contractual agreement whereby the Group and other investors have joint control of the net assets of the arrangement. In a number of these arrangements, the Group’s share of the underlying net assets may be less than 50 per cent but the terms of the relevant agreement make it clear that control is jointly exercised between the Group and the third party. Associates are entities over which the Group has significant influence but does not control. Generally, it is presumed that the Group has significant influence if it holds between 20 per cent and 50 per cent voting rights of an entity. With the exception of those referred to below, the Group accounts for its investments in joint ventures and associates using the equity method of accounting. The Group’s share of profit or loss of its joint ventures and associates is recognised in the income statement and its share of movements in other comprehensive income is recognised in other comprehensive income. The equity method of accounting does not apply to investments in joint ventures and associates held by the Group’s insurance or investment funds, including collective investment schemes which, as allowed by IAS 28 ‘Investments in Associates and Joint Ventures’, are carried at fair value through profit or loss. (c) Structured entities Structured entities are those that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. Voting rights relate to administrative tasks. Relevant activities are directed by means of contractual arrangements. The Group invests in both consolidated and unconsolidated structured entities including investment vehicles such as collective investment schemes, collateralised debt obligations, mortgage-backed securities and similar asset-backed securities. Collective investment schemes The Group invests in collective investment schemes that invest mainly in equities, bonds, cash and cash equivalents and properties. In assessing control under IFRS 10 ‘Consolidated Financial Statements’, the Group determines whether it is acting as principal or agent and the variable returns from its involvement with these entities. The Group’s percentage ownership in these entities can fluctuate on a daily basis according to the participation of the Group and other investors. Where the entity is managed by a Group asset manager: – Where the Group’s ownership holding in the entity exceeds 50 per cent, the Group is judged to have control over the entity; – Where the Group’s ownership holding in the entity is between 20 per cent and 50 per cent, the facts and circumstances of the Group’s involvement in the entity are considered, including the rights to any fees earned by the asset manager, in forming a judgement as to whether the Group has control over the entity; – Where the Group’s ownership holding in the entity is less than 20 per cent, the Group is judged to not have control over the entity. Where the entity is managed by an asset manager outside the Group, an assessment is made of whether the Group has existing rights that gives it the ability to direct the current activities of the entity and therefore control the entity. In assessing the Group’s ability to direct an entity, the Group considers its ability relative to other investors. Where the Group is deemed to control an entity, it is treated as a subsidiary and is consolidated, with the interests of investors other than the Group being classified as liabilities, and presented within ‘Net asset value attributable to unit holders of consolidated investment funds’. Where the Group does not control these entities (where the Group is deemed to be acting as an agent under IFRS 10) and they do not meet the definition of associates, they are carried at FVTPL within financial investments in the Consolidated statement of financial position. Where the Group’s asset manager sets up investment funds as part of its asset management operations, unless the Group also participates in the ownership holding of the entities, the Group’s interest is limited to the fees charged to manage the assets of such entities. With no participation in ownership holding of these entities, the Group does not retain risks associated with investment funds. For these investment funds, the Group is not deemed to control the entities but deemed to be acting as an agent. The Group generates returns and retains the ownership risks in these investment vehicles commensurate to its participation and does not have any further exposure to the residual risks of these investment vehicles. Other structured entities The Group holds investments in mortgage-backed securities, collateralised debt obligations and similar asset-backed securities, the majority of which are actively traded in a liquid market. The Group consolidates the vehicles that hold the investments where the Group is deemed to control the vehicles. When assessing control over the vehicles, the factors considered include the purpose and design of the vehicle, the Group’s exposure to the variability of returns and the scope of the Group’s ability to direct the relevant activities of the vehicle including any kick-out or removal rights that are held by third parties. The outcome of the control assessment is dependent on the terms and conditions of the respective individual arrangements. The majority of such vehicles are not consolidated. In these cases, the Group is not the sponsor of the vehicles in which it holds investments and has no administrative rights over the vehicles’ activities. The Group generates returns and retains the ownership risks commensurate to its holding and its exposure to the investments and does not have any further exposure to the residual risks or losses of the investments or the vehicles in which it holds investments. Accordingly, the Group does not have power over the relevant activities of such vehicles and all are carried at FVTPL within financial investments in the Consolidated statement of financial position. |
Prudential plc | |
Accounting policies | |
Basis of preparation and exchange rates | 1 Basis of preparation The financial statements of the parent company, which comprise the profit and loss accounts, statement of financial position, statement of changes in equity, statement of cash flows and related notes, are prepared in accordance with UK Generally Accepted Accounting Practice, including Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’). In preparing these financial statements, the Company applies the recognition and measurement requirements in accordance with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) but makes presentational amendments where necessary in order to comply with the UK Companies Act 2006. The Company and Group manages its cash resources, remittances and financing primarily in US dollars. Accordingly, the functional currency of the Company is US dollars. |
Investments in and amounts owed by subsidiary undertakings | Investments in subsidiary undertakings Investments in subsidiary undertakings are shown at cost, less impairment. Investments are assessed for impairment by comparing the net assets of the subsidiary undertakings with the carrying value of the investment. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost, less provisions. Provisions are determined using the expected credit loss approach under IFRS 9. |
Financial instruments | Financial instruments Under IFRS 9, except for derivative instruments (where applicable) that are mandatorily classified as fair value through profit or loss and the Company’s financial investment in Jackson’s equity securities (as discussed below), all of the financial assets and liabilities of the Company are held at amortised cost.The Company assesses impairment on its loans and receivables using the expected credit loss approach. The expected credit loss on the Company’s loans and receivables, the majority of which represent loans to its subsidiaries, have been assessed by taking into account the probability of default on those loans. In all cases, the subsidiaries are expected to have sufficient resources to repay the loan either now or over time based on projected earnings. For loans recallable on demand, the expected credit loss has been limited to the impact of discounting the value of the loan between the balance sheet date and the anticipated recovery date. For loans with a fixed maturity date the expected credit loss has been determined with reference to the historic experience of loans with equivalent credit characteristics. Upon the demerger of Jackson in September 2021, the Company has made the election under IFRS 9 to measure its retained interest in Jackson’s equity securities at ‘fair value through other comprehensive income’. Under this designation, only dividend income from this retained interest is recognised in the profit or loss of the Company. Unrealised gains and losses are recognised in other comprehensive income and there is no recycling to the profit or loss on derecognition. |
Share-based payments and related movements in own shares | Share-based payments The Group offers share award and option plans for certain key employees and a Save As You Earn (‘SAYE’) plan for all UK and certain overseas employees. The share-based payment plans operated by the Group are mainly equity-settled. Under IFRS 2 ‘Share-based payment’, where the Company, as the parent company, has the obligation to settle the options or awards of its equity instruments to employees of its subsidiary undertakings, and such share-based payments are accounted for as equity-settled in the Group financial statements, the Company records an increase in the investment in subsidiary undertakings for the value of the share options and awards granted with a corresponding credit entry recognised directly in equity. The value of the share options and awards granted is based upon the fair value of the options and awards at the grant date, the vesting period and the vesting conditions. Cash receipts from business units in respect of newly issued share schemes are treated as returns of capital within investments in subsidiaries . |
Tax | Tax Current tax expense is charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable amounts for the current year. To the extent that losses of an individual UK company are not offset, they can be carried back for one year or carried forward indefinitely to be offset, Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ‘Income Taxes’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. |
Borrowings | Borrowings Borrowings are initially recognised at fair value, net of transaction costs, and subsequently accounted for on an amortised cost basis using the effective interest method. Under the effective interest method, the difference between the redemption value of the borrowing and the initial proceeds, net of transaction costs, is amortised through the profit and loss account to the date of maturity or, for subordinated debt, over the expected life of the instrument. |
Shareholders' dividends; Dividends | Dividends Interim dividends are recorded in the period in which they are paid. |
Foreign exchange; Foreign currency translation | Foreign currency translation Transactions not denominated in the Company’s functional currency, US dollars, are initially recorded at the functional rate of currency prevailing on the date of the transaction. Monetary assets and liabilities not denominated in the Company’s functional currency are translated to the Company's functional currency at year end spot rates. The impact of these currency translations is recorded within the profit and loss account for the year. |
Basis of preparation and acco_3
Basis of preparation and accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of preparation and accounting policies | |
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: Closing rate at year end Average rate for the year-to-date USD : local currency 31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2022 31 Dec 2021 31 Dec 2020 Chinese yuan (CNY) 6.95 6.37 6.54 6.73 6.45 6.90 Hong Kong dollar (HKD) 7.81 7.80 7.75 7.83 7.77 7.76 Indian rupee (INR) 82.73 74.34 73.07 78.63 73.94 74.12 Indonesian rupiah (IDR) 15,567.50 14,252.50 14,050.00 14,852.24 14,294.88 14,541.70 Malaysian ringgit (MYR) 4.41 4.17 4.02 4.40 4.15 4.20 Singapore dollar (SGD) 1.34 1.35 1.32 1.38 1.34 1.38 Taiwan dollar (TWD) 30.74 27.67 28.10 29.81 27.93 29.44 Thai baht (THB) 34.56 33.19 30.02 35.06 32.01 31.29 UK pound sterling (GBP) 0.83 0.74 0.73 0.81 0.73 0.78 Vietnamese dong (VND) 23,575.00 22,790.00 23,082.50 23,409.87 22,934.86 23,235.84 |
Schedule of financial assets on the Group's statement of financial position that pass the SPPI test of IFRS 9 | Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2022 during 2022 31 Dec 2022 during 2022 $m $m $m $m Accrued investment income 1,135 — — — Other debtors 1,694 — — — Loans note 2,189 15 468 (37) Equity securities and holdings in collective investment schemes — — 57,679 (8,420) Debt securities — — 76,989 (21,803) Derivative assets, net of derivative liabilities — — (432) (4,487) Deposits 6,275 — — — Cash and cash equivalents 5,514 — — — Total financial assets, net of derivative liabilities 16,807 15 134,704 (34,747) Financial assets that pass All other financial assets, net of the SPPI test derivative liabilities Movement in Movement in Fair value at the fair value Fair value at the fair value Financial assets, net of derivative liabilities 31 Dec 2021 during 2021 31 Dec 2021 during 2021 $m $m $m $m Accrued investment income 1,171 — — — Other debtors 1,779 — — — Loans note 2,126 41 647 (1) Equity securities and holdings in collective investment schemes — — 61,601 4,061 Debt securities 226 — 98,868 (3,164) Derivative assets, net of derivative liabilities — — 219 (943) Deposits 4,741 — — — Cash and cash equivalents 7,170 — — — Total financial assets, net of derivative liabilities 17,213 41 161,335 (47) Note The loans that pass the SPPI test in the tables above are primarily carried at amortised cost under IAS 39. Further information on these loans is as provided in note C2.2. |
Schedule of financial assets held by the Group's joint ventures and associates that pass the SPPI test of IFRS 9 | Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during CPL (100% of the financial assets of the entity) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 176 170 — — — — Other debtors 667 620 — — — — Loans 674 656 — — — — Equity securities and holdings in collective investment schemes — — 15,698 12,882 (1,314) 254 Debt securities — — 11,478 11,976 37 184 Deposits 1,174 1,210 — — — — Cash and cash equivalents 561 422 — — — — Total financial assets 3,252 3,078 27,176 24,858 (1,277) 438 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. Fair value information for the Group’s share of financial assets of other joint ventures and associates in aggregate is set out in the table below: Financial assets that pass the SPPI test* All other financial assets Movement in the fair value Fair value at 31 Dec Fair value at 31 Dec during Other JVs and associates (Prudential’s share) 2022 2021 2022 2021 2022 2021 Financial assets $m $m $m $m $m $m Accrued investment income 83 85 — — — — Other debtors 143 187 — — — — Loans — 26 — — — — Equity securities and holdings in collective investment schemes — — 3,657 3,859 133 680 Debt securities — — 3,476 3,674 (131) (121) Deposits 335 203 — — — — Cash and cash equivalents 380 510 — — — — Total financial assets 941 1,011 7,133 7,533 2 559 * The carrying value approximates fair value for the financial assets in this category with no movement in the fair value during the year. |
Analysis of performance by se_2
Analysis of performance by segment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of performance by segment | |
Schedule of segment results | 2022 $m 2021 $m 2020 $m Note note (i) note (i) note (i) Continuing operations: CPL 368 343 251 Hong Kong 1,036 975 891 Indonesia 343 446 519 Malaysia 364 350 309 Singapore 678 663 574 Growth markets and other note (ii) 1,057 932 835 Eastspring 260 314 283 Other income and expenditure unallocated to a segment: Net investment return and other items 39 21 (15) Interest payable on core structural borrowings (200) (328) (316) Corporate expenditure note (iii) (276) (298) (412) Total other income (expenditure) B1.4 (437) (605) (743) Restructuring and IFRS 17 implementation costs note (iv) B1.4 (294) (185) (162) Adjusted operating profit B1.2 3,375 3,233 2,757 Short-term fluctuations in investment returns on shareholder-backed business note (v) (1,915) (458) (579) Amortisation of acquisition accounting adjustments (10) (5) (5) Gain (loss) attaching to corporate transactions D1.1 11 (94) 735 Profit before tax attributable to shareholders 1,461 2,676 2,908 Tax charge attributable to shareholders' returns B3 (454) (462) (440) Profit from continuing operations 1,007 2,214 2,468 Loss from discontinued US operations D1.2 — (5,027) (283) Profit (loss) for the year 1,007 (2,813) 2,185 Attributable to: Equity holders of the Company From continuing operations 998 2,192 2,458 From discontinued US operations — (4,234) (340) 998 (2,042) 2,118 Non-controlling interests From continuing operations 9 22 10 From discontinued US operations — (793) 57 9 (771) 67 Profit (loss) for the year 1,007 (2,813) 2,185 Basic earnings per share (in cents) 2022 2021 2020 Note note (i) note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations B4 100.5 ¢ 101.5 ¢ 86.6 ¢ Based on profit from continuing operations, net of non-controlling interest B4 36.5 ¢ 83.4 ¢ 94.6 ¢ Based on loss from discontinued US operations, net of non-controlling interest B4 — ¢ (161.1) ¢ (13.0) ¢ 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 $211 million (2021: $217 million; 2020: $119 million) which in 2022 primarily included the impact of the adoption of the Risk-Based Capital regime in Hong Kong (as discussed further in note C3.2) partially offset by corporate taxes for life joint ventures and associates. (iii) Corporate expenditure as shown above is for head office functions. (iv) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $( 137 ) million (2021: $( 101 ) million; 2020: $( 97 ) million), largely comprising the costs of Group-wide projects including the implementation of IFRS 17, reorganisation programmes and initial costs of establishing new business initiatives and operations. (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 year. In 2022, rising interest rates and widening credit 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. The interest rates rises in 2022 were more substantial than that seen in 2021. Short-term fluctuations also reflect losses on equities backing shareholder-backed business following market movements in 2022 (2021: equity gains) 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 | 2022 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total Gross premiums earned 8,792 1,590 1,843 6,540 4,579 — — 23,344 — 23,344 Outward reinsurance premiums (1,494) (34) (58) (299) (58) — — (1,943) — (1,943) Earned premiums, net of reinsurance 7,298 1,556 1,785 6,241 4,521 — — 21,401 — 21,401 Other income note (ii) 65 12 — 15 116 330 — 538 1 539 Total external revenue note (iii) 7,363 1,568 1,785 6,256 4,637 330 — 21,939 1 21,940 Intra-group revenue — — — — 1 199 (200) — — — Interest income note B1.3(b) 996 83 217 744 628 4 — 2,672 50 2,722 Dividend and other investment income 689 77 183 576 107 1 — 1,633 25 1,658 Investment appreciation (depreciation) (23,704) (70) (365) (7,498) (2,876) (21) — (34,534) (5) (34,539) Total revenue, net of reinsurance (14,656) 1,658 1,820 78 2,497 513 (200) (8,290) 71 (8,219) 2021 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total Gross premiums earned 10,032 1,724 1,900 6,246 4,315 — — 24,217 — 24,217 Outward reinsurance premiums (1,557) (43) (47) (137) (60) — — (1,844) — (1,844) Earned premiums, net of reinsurance 8,475 1,681 1,853 6,109 4,255 — — 22,373 — 22,373 Other income note (ii) 52 12 — 22 117 437 — 640 1 641 Total external revenue note (iii) 8,527 1,693 1,853 6,131 4,372 437 — 23,013 1 23,014 Intra-group revenue — — — — 1 217 (218) — — — Interest income note B1.3(b) 934 87 220 707 618 3 — 2,569 1 2,570 Dividend and other investment income 679 74 160 506 86 — — 1,505 19 1,524 Investment appreciation (depreciation) 57 34 (300) (29) (361) 8 — (591) (17) (608) Total revenue, net of reinsurance 10,197 1,888 1,933 7,315 4,716 665 (218) 26,496 4 26,500 2020 $m Insurance operations note (i) Growth Inter Hong markets -segment Total Unallocated Kong Indonesia Malaysia Singapore and other Eastspring elimination segment to a segment Total note (vii) Gross premiums earned 11,091 1,738 1,783 5,035 3,848 — — 23,495 — 23,495 Outward reinsurance premiums note (iv) (1,918) (62) (27) 432 (50) — — (1,625) — (1,625) Earned premiums, net of reinsurance 9,173 1,676 1,756 5,467 3,798 — — 21,870 — 21,870 Other income note (ii) 59 8 — 38 91 417 — 613 2 615 Total external revene note (iii) 9,232 1,684 1,756 5,505 3,889 417 — 22,483 2 22,485 Intra-group revenue — — — — 1 164 (165) — — — Interest note B1.3(b) 646 104 210 447 570 5 — 1,982 15 1,997 Dividend and other investment income 646 86 99 364 65 5 — 1,265 32 1,297 Investment appreciation (depreciation) 7,493 (201) 369 2,045 765 21 — 10,492 (24) 10,468 Total revenue, net of reinsurance 18,017 1,673 2,434 8,361 5,290 612 (165) 36,222 25 36,247 Notes (i) CPL, Prudential’s life business in the Chinese Mainland, is a 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 2022 is $2,948 million (2021: $3,052 million; 2020: $1,866 million). Further financial information on CPL is provided in note D6.3. (ii) Other income comprises income from external customers and consists primarily of revenue from the Group’s asset management business of $330 million (2021: $437 million; 2020: $417 million). The remaining other income consists primarily of policy fee revenue from external customers and asset management rebate revenue from external fund managers. Also included in other income is fee income on financial instruments that are not held at FVTPL of $2 million (2021: $1 million; 2020: $1 million). (iii) Due to the nature of the business of the Group, there is no reliance on any major customers. Of the Group’s markets, only Hong Kong and Singapore have external revenue that exceeds 10 per cent of the Group total for the years presented. (iv) The 2020 outward reinsurance premiums in Singapore included a credit of $ 542 million for the recapture of previously reinsured business following a change in regulatory requirements. |
Schedule of investment return | 2022 $m 2021 $m 2020 $m Net realised and unrealised gains (losses) on securities at fair value through profit or loss note (i) (30,097) 624 9,741 Net realised and unrealised gains (losses) on derivatives at fair value through profit or loss note (i) (4,487) (943) 916 Net realised (losses) on loans note (i) (14) (2) — Interest income note (ii) 2,722 2,570 1,997 Dividend income 1,531 1,496 1,257 Other investment returns (including foreign exchange gains and losses) 186 (259) (149) Investment return (30,159) 3,486 13,762 Notes (i) Net realised gains and losses on the Group’s investments for 2022 recognised in the income statement amounted to a net loss of $(9.3) billion (2021: a net gain of $6.0 billion; 2020: a net gain of $4.9 billion). The movement in the net amount of realised and unrealised gains and losses on the Group’s investments from 2021 to 2022 primarily reflects the effects of significant increases in interest rates during the year compared with 2021 as well as equity market falls during the year. (ii) Interest income includes $362 million (2021: $280 million; 2020: $257 million) in respect of financial assets not at fair value through profit and loss. |
Schedule of investment return allocation | 2022 $m 2021 $m 2020 $m Policyholder returns Assets backing unit-linked liabilities (2,574) 516 1,549 With-profits business (21,287) 2,700 8,384 (23,861) 3,216 9,933 Shareholder returns (6,298) 270 3,829 Total investment return (30,159) 3,486 13,762 |
Schedule of additional segmental analysis of profit after tax | 2022 $m 2021 $m 2020 $m CPL (144) 278 394 Hong Kong (211) 1,068 994 Indonesia 243 362 409 Malaysia 252 265 256 Singapore 406 394 521 Growth markets and other note (i) 881 434 548 Eastspring 234 284 253 Total segment 1,661 3,085 3,375 Unallocated to a segment (central operations) note (ii) (654) (871) (907) Total profit after tax 1,007 2,214 2,468 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 year, in line with the presentation used by management when assessing the performance of the underlying segments internally. (ii) Comprising other income and expenditure of $(437) million (2021: $(605) million; 2020: $(743) million) attributable to the head office functions, $(294) million (2021: $(185) million; 2020: $(162) million) of restructuring and IFRS 17 implementation costs, $19 million (2021: $(25) million; 2020: $28 million) of short-term fluctuations on investment returns in central operations, $62 million (2021: $(35) million; 2020: $(30) million) of corporate transactions and related tax of $(4) million (2021: $(21) million; 2020: nil ). |
Acquisition costs and other e_2
Acquisition costs and other expenditure (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition costs and other expenditure | |
Schedule of acquisition costs and other expenditure | 2022 $m 2021 $m 2020 $m Acquisition costs incurred for insurance policies (2,325) (2,089) (2,080) Acquisition costs deferred 1,002 848 617 Amortisation of acquisition costs (475) (343) (308) Administration costs and other expenditure (net of other reinsurance commission) (3,100) (3,128) (2,433) Movements in amounts attributable to external unit holders of consolidated investment funds 1,018 152 (447) Total acquisition costs and other expenditure (3,880) (4,560) (4,651) Notes (i) Administration costs and other expenditure include fee expenses relating to financial liabilities held at amortised cost and are part of the determination of the effective interest rate. (ii) Total depreciation and amortisation expenses are included in ‘Acquisition costs incurred for insurance policies’, ‘Administration costs and other expenditure (net of other reinsurance commission)’ and ‘Amortisation of acquisition costs’ and relate primarily to amortisation of DAC of insurance contracts and distribution rights intangibles. The segmental analysis of depreciation and amortisation is shown below. 2022 $m 2021 $m 2020 $m Hong Kong (147) (123) (158) Indonesia (61) (51) (34) Malaysia (70) (56) (37) Singapore (202) (162) (144) Growth markets and other (461) (390) (301) Eastspring (13) (17) (16) Total segment (954) (799) (690) Unallocated to a segment (central operations) (26) (31) (35) Total depreciation and amortisation (980) (830) (725) (iii) Interest expense is included in ‘Administration costs and other expenditure (net of other reinsurance commission)’ other than interest on core structural borrowings that is presented separately on the income statement as ‘Finance costs: interest on core structural borrowings of shareholder-financed businesses’. Interest expense of the central operations amounted to $(209) million (2021: $(331) million; 2020: $ (334) million) comprising $ (200) million (2021: $ (328) million; 2020: $ (316) million) of interest on core structural borrowings, $ (2) million of interest on lease liabilities (2021: $ (3) million; 2020: $ (4) million) and $ (7) million (2021: nil ; 2020: $ (14) million) of interest on other operational borrowings. Core structural borrowings and operational borrowings (other than lease liabilities) represent financial liabilities that are not classified at fair value through profit and loss. The ‘Total segment’ interest expense is $(16) million (2021: $(10) million; 2020: $(13) million) of which $(11) million arises in the Hong Kong segment (2021: $(3) million; 2020: $(5) million) with the remainder spread broadly evenly across the other markets. Included within interest expense is $(7) million (2021: $(10) million; 2020: $(13) million) of interest on lease liabilities. |
Schedule of segmental analysis of depreciation and amortisation | 2022 $m 2021 $m 2020 $m Hong Kong (147) (123) (158) Indonesia (61) (51) (34) Malaysia (70) (56) (37) Singapore (202) (162) (144) Growth markets and other (461) (390) (301) Eastspring (13) (17) (16) Total segment (954) (799) (690) Unallocated to a segment (central operations) (26) (31) (35) Total depreciation and amortisation (980) (830) (725) |
Schedule of average number of staff employed | 2022 2021 2020 Asia and Africa operations note (i) 13,685 13,237 12,949 Head office function 511 600 657 Total continuing operations 14,196 13,837 13,606 Discontinued US operations note (ii) — 3,306 3,650 Total Group 14,196 17,143 17,256 Notes (i) The Asia and Africa operations staff numbers above exclude 744 (2021: 440 ; 2020: 502 ) commission-based sales staff who have an employment contract with the Group. (ii) Average staff numbers of the discontinued US operations were for the period up to the demerger in September 2021. |
Schedule of costs of employment | 2022 $m 2021 $m 2020 $m Group Discontinued Group Group total Continuing US operations total Continuing Discontinued total Wages and salaries 1,018 973 511 1,484 917 619 1,536 Social security costs 41 42 22 64 41 26 67 Defined contribution schemes 40 42 29 71 42 34 76 Total Group 1,099 1,057 562 1,619 1,000 679 1,679 |
Schedule of movement in outstanding options and awards | Awards outstanding under Options outstanding under SAYE schemes incentive plans 2022 2021 2020 2022 2021 2020 Weighted Weighted Weighted average average average Number exercise Number exercise Number exercise of options price of options price of options price Number of awards millions £ millions £ millions £ millions Balance at beginning of year: 2.0 11.61 2.3 11.86 3.8 12.38 24.6 40.6 33.0 Granted 0.5 7.37 0.4 11.90 0.4 9.64 6.5 5.2 20.2 Modification — — 0.1 11.77 — — — 0.7 — Exercised (0.3) 11.17 (0.7) 12.58 (0.9) 11.44 (7.2) (8.6) (10.3) Forfeited — 10.84 — 11.11 — 14.27 (1.1) (3.1) (1.5) Cancelled (0.3) 12.67 (0.1) 11.51 (0.1) 12.55 (0.1) (0.1) (0.1) Lapsed/Expired — 13.00 — 12.88 (0.9) 13.28 (1.7) (0.6) (0.7) Jackson awards derecognised on demerger note — — — — — — — (9.5) — Balance at end of year 1.9 10.43 2.0 11.61 2.3 11.86 21.0 24.6 40.6 Options immediately exercisable at end of year 0.3 12.48 0.2 12.26 0.5 12.64 |
Summary of the range of exercise prices for options outstanding | Outstanding Exercisable Weighted average remaining Weighted average Weighted average Number outstanding contractual life exercise prices Number exercisable exercise prices millions years £ millions £ 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 Between £7 and £8 0.5 — — 4.1 — — 7.37 — — — — — — — — Between £9 and £10 0.4 0.4 0.4 2.2 3.2 4.2 9.64 9.64 9.64 — — — — — — Between £11 and £12 0.8 1.2 1.2 2.4 2.7 2.2 11.48 11.38 11.11 0.2 0.1 0.3 11.12 11.04 11.11 Between £13 and £14 0.1 0.2 0.3 1.4 1.6 2.2 13.94 13.94 13.94 — 0.1 — — 13.94 — Between £14 and £15 0.1 0.2 0.4 0.4 1.4 1.3 14.55 14.55 14.55 0.1 — 0.2 14.55 — 14.55 Total 1.9 2.0 2.3 2.6 2.6 2.4 10.43 11.61 11.86 0.3 0.2 0.5 12.48 12.26 12.64 The years shown above for weighted average remaining contractual life include the time period from end of vesting period to expiration of contract. |
Schedule of assumptions used to estimate fair value amounts on date of grant relating to all options and awards | 2022 2021 2020 Prudential SAYE Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) options awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 1.11 — — 0.81 — — 3.45 — Expected volatility (%) 33.64 25.68 — 26.69 22.31 — 41.08 27.55 — Risk-free interest rate (%) 2.79 3.97 — 0.36 1.18 — 0.39 0.27 — Expected option life (years) — 4.52 — — 4.50 — — 3.92 — Weighted average exercise price (£) — 7.37 — — 11.90 — — 9.64 — Weighted average share price at grant date (£) 11.15 9.54 — 15.11 14.76 — 10.49 10.74 — Weighted average fair value at grant date (£) 2.09 3.45 11.11 7.70 4.13 14.79 4.93 1.95 10.54 |
Schedule of key management remuneration | 2022 $m 2021 $m 2020 $m Salaries and short-term benefits 22.5 29.3 20.0 Post-employment benefits 1.0 1.4 1.2 Share-based payments 15.4 14.0 14.6 Payments on separation 1.0 23.5 — 39.9 68.2 35.8 |
Schedule of fees payable to the auditor | 2022 $m 2021 $m 2020 $m Audit of the Company's annual accounts 2.3 2.4 2.3 Audit of subsidiaries pursuant to legislation 4.4 5.9 9.2 Audit fees payable to the auditor 6.7 8.3 11.5 Audit-related assurance services note (i) 3.5 4.5 3.5 Other assurance services 0.7 1.1 0.7 Services relating to corporate finance transactions — 1.6 0.3 Non-audit fees payable to the auditor 4.2 7.2 4.5 Total fees payable to the auditor 10.9 15.5 16.0 Analysed into: Fees payable to the auditor attributable to continuing operations: One-off non-audit services associated with demerger and public offering note (ii) — 1.9 0.4 Other audit and non-audit services 10.9 11.3 9.5 10.9 13.2 9.9 Fees payable to the auditor attributable to discontinued US operations — 2.3 6.1 10.9 15.5 16.0 Notes (i) Of the audit-related assurance service fees of $3.5 million in 2022 (2021: $4.5 million; 2020: $3.5 million), $0.9 million (2021: $0.6 million; 2020: $0.7 million) relates to services that are required by law and regulation. (ii) Of the $1.9 million one-off non-audit services fees associated with the demerger of the US operations and the public offering in Hong Kong in 2021, $0.1 million was for audit-related assurance and $0.1 million for other assurance services required by law and regulation. |
Tax charge (Tables)
Tax charge (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tax charge | |
Schedule of total tax charge by nature | 2022 $m 2021 $m 2020 $m Attributable to shareholders: Hong Kong (52) (40) (15) Indonesia (60) (74) (125) Malaysia (90) (71) (58) Singapore (78) (67) (87) Growth markets and other (144) (159) (125) Eastspring (26) (30) (30) Total segment (450) (441) (440) Unallocated to a segment (central operations) (4) (21) — Tax charge attributable to shareholders (454) (462) (440) Attributable to policyholders: Hong Kong (56) (79) (60) Indonesia (5) 4 (3) Malaysia — (2) (34) Singapore 44 (261) (170) Growth markets and other (4) (4) (4) Tax charge attributable to policyholders (21) (342) (271) Total tax charge (475) (804) (711) |
Schedule of total tax (charge) credit | 2022 $m 2021 $m 2020 $m Current tax expense: Corporation tax (474) (405) (376) Adjustments in respect of prior years (7) 6 (7) Total current tax charge (481) (399) (383) Deferred tax arising from: Origination and reversal of temporary differences 4 (388) (306) Impact of changes in local statutory tax rates — — (1) Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year 2 (17) (21) Total deferred tax credit (charge) 6 (405) (328) Total tax charge (475) (804) (711) |
Schedule of shareholder profit and tax charge | 2022 2021 2020 Tax Percentage Tax Percentage Tax Percentage attributable to impact attributable to impact on attributable to impact shareholders on ETR shareholders ETR shareholders on ETR $m % $m % $m % Adjusted operating profit 3,375 3,233 2,757 Non-operating result note (i) (1,914) (557) 151 Profit before tax 1,461 2,676 2,908 Tax charge at the expected rate (287) 20 % (539) 20 % (602) 21 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 61 (4) % 63 (2) % 102 (4) % Deductions and losses not allowable for tax purposes note (iii) (196) 13 % (92) 3 % (32) 1 % Items related to taxation of life insurance businesses note (iv) 108 (7) % 177 (7) % 152 (5) % Deferred tax adjustments including unrecognised tax losses note (v) (45) 3 % (111) 4 % (172) 6 % Effect of results of joint ventures and associates note (vi) 3 0 % 80 (3) % 129 (4) % Irrecoverable withholding taxes note (vii) (55) 4 % (60) 2 % (35) 1 % Other (15) 0 % (8) 1 % 17 (1) % Total (charge) credit on recurring items (139) 9 % 49 (2) % 161 (6) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years 1 0 % (11) 0 % (25) 1 % Movements in provisions for open tax matters note (viii) (40) 3 % 47 (2) % 33 (1) % Impact of changes in local statutory tax rates — 0 % 6 0 % (1) 0 % Adjustments in relation to business disposals and corporate transactions 11 (1) % (14) 1 % (6) 0 % Total (charge) credit on non-recurring items (28) 2 % 28 (1) % 1 0 % Total actual tax charge (454) 31 % (462) 17 % (440) 15 % Analysed into: Tax charge on adjusted operating profit (614) (548) (497) Tax credit on non-operating result note (i) 160 86 57 Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note (ix) 18 % 17 % 18 % Excluding non-recurring tax reconciling items 17 % 18 % 18 % Total profit note (ix) 31 % 17 % 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. The tax charge on non-operating result is calculated using the tax rates applicable to investment profit or loss recorded in the non-operating result for each entity, and then adjusting for any discrete items included in the total tax charge that relate specifically to the amounts (other than investment related profit or loss) included in the non-operating result. The difference between this tax on non-operating result and the tax charge calculated on profit before tax is the tax charge on adjusted operating profit. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Malaysia and Singapore. (iii) Deductions and losses 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 years. (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: 2022 $m Balance at 1 Jan (42) Movements in the current year included in tax charge attributable to shareholders (40) 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) 3 Balance at 31 Dec (79) (ix) The actual tax rates of the relevant business operations are shown below: 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 20 % 26 % 16 % 24 % 10 % (1) % 18 % Tax rate on profit before tax (33) % 20 % 26 % 16 % 14 % 10 % (1) % 31 % 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 5 % 17 % 21 % 15 % 22 % 10 % (3) % 17 % Tax rate on profit before tax 4 % 17 % 21 % 15 % 27 % 10 % (2) % 17 % 2020 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 3 % 24 % 18 % 14 % 22 % 11 % 0 % 18 % Tax rate on profit before tax 1 % 23 % 18 % 14 % 19 % 11 % 0 % 15 % |
Schedule of movements in provisions for open tax matters | 2022 $m Balance at 1 Jan (42) Movements in the current year included in tax charge attributable to shareholders (40) 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) 3 Balance at 31 Dec (79) |
Schedule of tax rate of relevant business operations | 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 6 % 20 % 26 % 16 % 24 % 10 % (1) % 18 % Tax rate on profit before tax (33) % 20 % 26 % 16 % 14 % 10 % (1) % 31 % 2021 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 5 % 17 % 21 % 15 % 22 % 10 % (3) % 17 % Tax rate on profit before tax 4 % 17 % 21 % 15 % 27 % 10 % (2) % 17 % 2020 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 3 % 24 % 18 % 14 % 22 % 11 % 0 % 18 % Tax rate on profit before tax 1 % 23 % 18 % 14 % 19 % 11 % 0 % 15 % |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Schedule of earnings per share | 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 Profit from continuing operations 1,461 (454) (9) 998 36.5 ¢ 36.5 ¢ Short-term fluctuations in investment returns on shareholder-backed business 1,915 (155) (2) 1,758 64.3 ¢ 64.3 ¢ Amortisation of acquisition accounting adjustments 10 — — 10 0.4 ¢ 0.4 ¢ Loss attaching to corporate transactions (11) (5) — (16) (0.7) ¢ (0.7) ¢ Adjusted operating profit 3,375 (614) (11) 2,750 100.5 ¢ 100.5 ¢ 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 Loss for the year (2,042) (77.7) (77.7) ¢ Loss from discontinued US operations 4,234 161.1 161.1 ¢ Profit from continuing operations 2,676 (462) (22) 2,192 83.4 ¢ 83.4 ¢ Short-term fluctuations in investment returns on shareholder-backed business 458 (81) 5 382 14.5 ¢ 14.5 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Loss attaching to corporate transactions 94 (5) — 89 3.4 ¢ 3.4 ¢ Adjusted operating profit 3,233 (548) (17) 2,668 101.5 ¢ 101.5 ¢ 2020 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 B1.1 B3 Profit for the year 2,118 81.6 ¢ 81.6 ¢ Loss from discontinued US operations 340 13 ¢ 13.0 ¢ Profit from continuing operations 2,908 (440) (10) 2,458 94.6 ¢ 94.6 ¢ Short-term fluctuations in investment returns on shareholder-backed business 579 (49) — 530 20.4 ¢ 20.4 ¢ Amortisation of acquisition accounting adjustments 5 — — 5 0.2 ¢ 0.2 ¢ Gain attaching to corporate transactions (735) (8) — (743) (28.6) ¢ (28.6) ¢ Adjusted operating profit 2,757 (497) (10) 2,250 86.6 ¢ 86.6 ¢ |
Summary of weighted average number of shares for calculating earnings per share | Number of shares (in millions) 2022 2021 2020 Weighted average number of shares for calculation of basic earnings per share 2,736 2,628 2,597 Shares under option at end of year 1 2 2 Shares that would have been issued at fair value on assumed option price at end of year (1) (2) (2) Weighted average number of shares for calculation of diluted earnings per share 2,736 2,628 2,597 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Dividends | |
Schedule of dividends | 2022 2021 2020 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim dividend 5.74 ¢ 154 5.37 ¢ 140 5.37 ¢ 140 Second interim dividend 13.04 ¢ 359 11.86 ¢ 326 10.73 ¢ 280 Total relating to reporting year 18.78 ¢ 513 17.23 ¢ 466 16.10 ¢ 420 Dividends paid in reporting year: Current year first interim dividend 5.74 ¢ 154 5.37 ¢ 138 5.37 ¢ 140 Second interim dividend for prior year 11.86 ¢ 320 10.73 ¢ 283 25.97 ¢ 674 Total paid in reporting year 17.60 ¢ 474 16.10 ¢ 421 31.34 ¢ 814 |
Group assets and liabilities _2
Group assets and liabilities by business type (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of operating segments | |
Schedule of segment statement of financial position by business type | 31 Dec 2022 $m Asia and Africa Unallo- Elimination Insurance cated of intra-group With- Unit- Elimina- to a debtors and Group profits linked Other Eastspring tions Total segment creditors total note (i) note (i) note (i) Debt securities notes (ii)(iv) Sovereign debt Indonesia 482 589 483 3 — 1,557 — — 1,557 Singapore 3,240 507 917 67 — 4,731 — — 4,731 Thailand — — 1,456 — — 1,456 — — 1,456 United Kingdom — 4 — — — 4 — — 4 United States 19,983 54 1,854 — — 21,891 — — 21,891 Vietnam 1 12 2,397 — — 2,410 — — 2,410 Other (predominantly Asia) 2,041 646 3,288 27 — 6,002 — — 6,002 Subtotal 25,747 1,812 10,395 97 — 38,051 — — 38,051 Other government bonds AAA 1,480 85 108 — — 1,673 — — 1,673 AA+ to AA- 105 21 27 — — 153 — — 153 A+ to A- 746 139 248 — — 1,133 — — 1,133 BBB+ to BBB- 292 77 134 — — 503 — — 503 Below BBB- and unrated 227 22 323 — — 572 — — 572 Subtotal 2,850 344 840 — — 4,034 — — 4,034 Corporate bonds AAA 996 181 362 — — 1,539 — — 1,539 AA+ to AA- 1,951 385 1,556 — — 3,892 — — 3,892 A+ to A- 7,230 524 4,348 — — 12,102 — — 12,102 BBB+ to BBB- 7,885 1,325 3,974 1 — 13,185 — — 13,185 Below BBB- and unrated 2,090 444 1,282 — — 3,816 — — 3,816 Subtotal 20,152 2,859 11,522 1 — 34,534 — — 34,534 Asset-backed securities AAA 168 5 126 — — 299 — — 299 AA+ to AA- 6 1 3 — — 10 — — 10 A+ to A- 20 — 14 — — 34 — — 34 BBB+ to BBB- 14 — 9 — — 23 — — 23 Below BBB- and unrated 2 1 1 — — 4 — — 4 Subtotal 210 7 153 — — 370 — — 370 Total debt securities 48,959 5,022 22,910 98 — 76,989 — — 76,989 Loans Mortgage loans — — 140 — — 140 — — 140 Policy loans 1,498 — 422 — — 1,920 — — 1,920 Other loans 472 — 4 — — 476 — — 476 Total loans 1,970 — 566 — — 2,536 — — 2,536 Equity securities and holdings in collective investment schemes Direct equities 13,063 11,379 2,139 61 — 26,642 266 — 26,908 Collective investment schemes 19,057 6,760 4,950 2 — 30,769 2 — 30,771 Total equity securities and holdings in collective investment schemes 32,120 18,139 7,089 63 — 57,411 268 — 57,679 Other financial investments note (iii) 1,793 379 2,816 107 — 5,095 1,749 — 6,844 Total financial investments note (v) 84,842 23,540 33,381 268 — 142,031 2,017 — 144,048 Investment properties — — 37 — — 37 — — 37 Investments in joint ventures and associates accounted for using the equity method — — 1,601 314 — 1,915 — — 1,915 Cash and cash equivalents note (vi) 1,038 749 1,791 127 — 3,705 1,809 — 5,514 Reinsurers' share of insurance contract liabilities note C3.3 145 — 2,662 — — 2,807 — — 2,807 Other assets note (vii) 1,156 154 9,665 713 (67) 11,621 3,409 (3,409) 11,621 Total assets 87,181 24,443 49,137 1,422 (67) 162,116 7,235 (3,409) 165,942 Shareholders' equity — — 14,407 1,058 — 15,465 1,495 — 16,960 Non-controlling interests — — 43 124 — 167 — — 167 Total equity — — 14,450 1,182 — 15,632 1,495 — 17,127 Contract liabilities and unallocated surplus of with-profits funds 77,687 22,842 25,229 — — 125,758 — — 125,758 Core structural borrowings — — — — — — 4,261 — 4,261 Operational borrowings 118 — 86 15 — 219 596 — 815 Other liabilities note (viii) 9,376 1,601 9,372 225 (67) 20,507 883 (3,409) 17,981 Total liabilities 87,181 24,443 34,687 240 (67) 146,484 5,740 (3,409) 148,815 Total equity and liabilities 87,181 24,443 49,137 1,422 (67) 162,116 7,235 (3,409) 165,942 31 Dec 2021 $m Asia and Africa Unallo- Elimination Insurance cated of intra-group With- Unit- Elimina- to a debtors and Group profits linked Other Eastspring tions Total segment creditors total note (i) note (i) note (i) Debt securities notes (ii)(iv) 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 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 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 137 9 105 — — 251 — — 251 Total debt securities 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 note (v) 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 note (vi) 905 911 1,444 181 — 3,441 3,729 — 7,170 Reinsurers' share of insurance contract liabilities note C3.3 225 — 9,528 — — 9,753 — — 9,753 Other assets note (vii) 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 (viii) 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. 31 Dec 2022 $m 31 Dec 2021 $m Debt securities held by consolidated investment funds 11,899 15,076 (iii) Other financial investments comprise derivative assets and deposits. (iv) 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. (v) Of the total financial investments of $ 144,048 million as at 31 December 2022 (31 December 2021: $ 168,479 million), $ 68,955 million (31 December 2021: $ 71,524 million) are expected to be recovered within one year, including equity securities and holdings in collective investment schemes. (vi) Cash and cash equivalents consist of cash at bank and in hand, deposits held at call with banks, treasury bills and other short-term highly liquid investments with less than 90 days maturity from the date of acquisition and are analysed as follows: 31 Dec 2022 $m 31 Dec 2021 $m Cash 1,878 1,902 Cash equivalents 3,636 5,268 Total cash and cash equivalents 5,514 7,170 Analysed as: Held by the Group's holding and non-regulated entities and available for general use 1,809 3,729 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 3,705 3,441 Total cash and cash equivalents 5,514 7,170 * The Group’s cash and cash equivalents are held in the following currencies as at 31 December 2022: USD 45 per cent, GBP 11 per cent, HKD 5 per cent, SGD 5 per cent, MYR 14 per cent and other currencies 20 per cent (31 December 2021: USD 59 per cent, GBP 7 per cent, HKD 3 per cent, SGD 3 per cent, MYR 9 per cent and other currencies 19 per cent). (vii) ‘Other assets’ at 31 December 2022, comprise goodwill, intangibles (including deferred acquisition costs), property, plant and equipment (see note C11), tax balances and accrued investment income and other debtors, which are analysed as follows: 31 Dec 2022 $m 31 Dec 2021 $m Interest receivable 885 872 Other accrued income 250 299 Total accrued investment income 1,135 1,171 Amounts receivable due from: Policyholders 644 686 Intermediaries — 4 Reinsurers 192 226 Other sundry debtors 858 863 Total other debtors 1,694 1,779 Total accrued investment income and other debtors 2,829 2,950 Analysed as: Expected to be settled within one year 2,700 2,761 Expected to be settled beyond one year 129 189 2,829 2,950 (viii) Within ‘Other liabilities’ at 31 December 2022 are accruals, deferred income and other liabilities of $ 8,777 million (31 December 2021: $ 7,983 million), which are analysed as follows (detailed maturity analysis is provided in note C2.3): 31 Dec 2022 $m 31 Dec 2021 $m Accruals and deferred income 539 565 Creditors arising from direct insurance and reinsurance operations 3,000 1,120 Interest payable 59 77 Funds withheld under reinsurance agreements 2,040 1,545 Other creditors 3,139 4,676 Total accruals, deferred income and other creditors 8,777 7,983 |
Schedule of cash and cash equivalents | 31 Dec 2022 $m 31 Dec 2021 $m Cash 1,878 1,902 Cash equivalents 3,636 5,268 Total cash and cash equivalents 5,514 7,170 Analysed as: Held by the Group's holding and non-regulated entities and available for general use 1,809 3,729 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 3,705 3,441 Total cash and cash equivalents 5,514 7,170 * The Group’s cash and cash equivalents are held in the following currencies as at 31 December 2022: USD 45 per cent, GBP 11 per cent, HKD 5 per cent, SGD 5 per cent, MYR 14 per cent and other currencies 20 per cent (31 December 2021: USD 59 per cent, GBP 7 per cent, HKD 3 per cent, SGD 3 per cent, MYR 9 per cent and other currencies 19 per cent). |
Schedule of accrued investment income and other debtors | 31 Dec 2022 $m 31 Dec 2021 $m Interest receivable 885 872 Other accrued income 250 299 Total accrued investment income 1,135 1,171 Amounts receivable due from: Policyholders 644 686 Intermediaries — 4 Reinsurers 192 226 Other sundry debtors 858 863 Total other debtors 1,694 1,779 Total accrued investment income and other debtors 2,829 2,950 Analysed as: Expected to be settled within one year 2,700 2,761 Expected to be settled beyond one year 129 189 2,829 2,950 |
Schedule of accruals, deferred income and other liabilities | 31 Dec 2022 $m 31 Dec 2021 $m Accruals and deferred income 539 565 Creditors arising from direct insurance and reinsurance operations 3,000 1,120 Interest payable 59 77 Funds withheld under reinsurance agreements 2,040 1,545 Other creditors 3,139 4,676 Total accruals, deferred income and other creditors 8,777 7,983 |
Consolidated investment funds | |
Analysis of operating segments | |
Schedule of analysis of securities | 31 Dec 2022 $m 31 Dec 2021 $m Debt securities held by consolidated investment funds 11,899 15,076 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Schedule of contractual maturities of financial liabilities, excluding derivative liabilities and investment contracts, on an undiscounted cash flow basis | 31 Dec 2022 $m Contractual maturity profile for financial liabilities Total Total carrying 1 year 10-15 15-20 Over No stated undiscounted value or less 1-2 years 2-5 years 5-10 years years years 20 years maturity cash flows Core structural borrowings of shareholder-financed businesses note C5.1 4,261 509 124 370 2,598 1,024 — — 750 5,375 Lease liabilities under IFRS 16 note C5.2 299 101 76 127 28 9 — — — 341 Other operational borrowings note C5.2 516 516 — — — — — — — 516 Obligations under funding, securities lending and sale and repurchase agreements 582 582 — — — — — — — 582 Accruals, deferred income and other liabilities 8,777 6,258 — — — — — — 2,519 8,777 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 4,193 4,193 — — — — — — — 4,193 Total financial liabilities 18,628 12,159 200 497 2,626 1,033 — — 3,269 19,784 31 Dec 2021 $m Contractual maturity profile for financial liabilities Total Total carrying 1 year 10-15 15-20 Over No stated undiscounted value or less 1-2 years 2-5 years 5-10 years years years 20 years maturity cash flows Core structural borrowings of shareholder-financed businesses note C5.1 6,127 1,872 551 702 1,817 1,642 — — 750 7,334 Lease liabilities under IFRS 16 note C5.2 347 110 81 135 45 11 — — — 382 Other operational borrowings note C5.2 514 514 — — — — — — — 514 Obligations under funding, securities lending and sale and repurchase agreements 223 223 — — — — — — — 223 Accruals, deferred income and other liabilities 7,983 5,972 — — — — — — 2,011 7,983 Net asset value attributable to unit holders of consolidated unit trusts and similar funds 5,664 5,664 — — — — — — — 5,664 Total financial liabilities 20,858 14,355 632 837 1,862 1,653 — — 2,761 22,100 |
Schedule of maturity profile of net derivative positions | Carrying value of net derivatives $m Net Derivative Derivative derivative assets liabilities position 31 Dec 2022 569 (1,001) (432) 31 Dec 2021 481 (262) 219 |
Schedule of maturity profile for investment contracts | The table below shows the maturity profile for investment contracts based on undiscounted cash flow projections of expected benefit payments. Maturity profile for investment contracts $m Total Total carrying 1 year Over undiscounted value or less 1-5 years 5-10 years 10-15 years 15-20 years 20 years cash flows 31 Dec 2022 420 11 369 98 22 8 4 512 31 Dec 2021 459 14 442 63 16 6 2 543 |
Schedule of gross and net information about financial instruments subject to master netting arrangements | 31 Dec 2022 $m Gross amount Related amounts not offset included in the in the balance sheet balance Financial Cash Securities sheet instruments collateral collateral Net amount note (i) note (ii) note (iii) note (iv) Financial assets: Derivative assets 457 (179) (217) — 61 Reverse repurchase agreements 3,174 — — (3,174) — Total financial assets 3,631 (179) (217) (3,174) 61 Financial liabilities: Derivative liabilities (284) 179 27 6 (72) Securities lending and repurchase agreements (582) — 13 566 (3) Total financial liabilities (866) 179 40 572 (75) 31 Dec 2021 $m Gross amount Related amounts not offset included in the in the balance sheet balance Financial Cash Securities Net sheet instruments collateral collateral amount note (i) note (ii) note (iii) note (iv) Financial assets: Derivative assets 170 (94) (31) (1) 44 Reverse repurchase agreements 2,135 — — (2,134) 1 Total financial assets 2,305 (94) (31) (2,135) 45 Financial liabilities: Derivative liabilities (165) 94 63 — (8) Securities lending and repurchase agreements (222) — 153 69 — Total financial liabilities (387) 94 216 69 (8) Notes (i) The Group has not offset any of the amounts included in the balance sheet. (ii) Represents the amount that could be offset under master netting or similar arrangements where the Group does not satisfy the full criteria to offset in the balance sheet. (iii) Excludes initial margin amounts for exchange-traded derivatives. (iv) In the tables above, the amounts of assets or liabilities included in the balance sheet would be offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables. |
At fair value | |
Financial instruments | |
Schedule of fair value of assets and liabilities | 31 Dec 2022 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on significant in active observable unobservable markets market inputs market inputs Total note (i) note (ii) Loans — 447 3 450 Equity securities and holdings in collective investment schemes 49,725 7,130 824 57,679 Debt securities 57,215 19,736 38 76,989 Derivative assets 82 487 — 569 Derivative liabilities (778) (223) — (1,001) Total financial investments, net of derivative liabilities 106,244 27,577 865 134,686 Investment contract liabilities without discretionary participation features — (741) — (741) Net asset value attributable to unit holders of consolidated investment funds (4,193) — — (4,193) Total financial instruments at fair value 102,051 26,836 865 129,752 Percentage of total (%) 78 % 21 % 1 % 100 % Analysed by business type: Financial investments net of derivative liabilities, at fair value With-profits 65,880 14,605 748 81,233 Unit-linked 21,319 1,851 4 23,174 Non-linked shareholder-backed business 19,045 11,121 113 30,279 Total financial investments net of derivative liabilities, at fair value 106,244 27,577 865 134,686 Percentage of total (%) 78 % 21 % 1 % 100 % Total financial investments net of derivative liabilities, at fair value 106,244 27,577 865 134,686 Other financial liabilities at fair value (4,193) (741) — (4,934) Total financial instruments at fair value 102,051 26,836 865 129,752 31 Dec 2021 $m Level 1 Level 2 Level 3 Quoted prices Valuation based Valuation based (unadjusted) on significant on 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 $19,736 million at 31 December 2022 (31 December 2021: $22,987 million), $37 million (31 December 2021: $24 million) are valued internally. (ii) At 31 December 2022, the Group held $865 million (31 December 2021: $640 million) of net financial instruments at fair value within level 3. This represents less than 1 per cent of the total fair-valued financial assets, net of financial liabilities, for both years and comprises the following items: – Equity securities and holdings in collective investment schemes of $824 million (31 December 2021: $557 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 $41 million (31 December 2021: net asset of $63 million). Of the net financial instruments of $865 million at 31 December 2022 (31 December 2021: $640 million) referred to above: – A net asset of $752 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 $113 million (31 December 2021: $129 million) is held to support non-linked shareholder-backed business, of which $111 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 to 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: $(13) 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 | 2022 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 5 577 58 640 Total losses in income statement note (2) (31) (2) (35) Total losses recorded in other comprehensive income — (6) (3) (9) Purchases and other additions — 305 — 305 Sales — (21) — (21) Transfers out of level 3 — — (15) (15) Balance at 31 Dec 3 824 38 865 2021 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 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 31 Dec 5 577 58 640 Note Of the total net losses in the income statement of $(35) million in 2022 (2021: net gains of $2 million), $(12) million (2021: $2 million) relates to net unrealised gains and losses of financial instruments still held at the end of the year, which can be analysed as follows: 2022 $m 2021 $m Loans (2) (1) Equity securities and holdings in collective investment schemes (8) 6 Debt securities (2) (3) Total net (losses) gains (12) 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 Loans (2) (1) Equity securities and holdings in collective investment schemes (8) 6 Debt securities (2) (3) Total net (losses) gains (12) 2 |
Assets and liabilities at amortised cost for which fair value is disclosed | |
Financial instruments | |
Schedule of fair value of assets and liabilities | 31 Dec 2022 $m 31 Dec 2021 $m Carrying Fair Carrying Fair value value value value Assets Loans 2,086 2,207 1,941 2,152 Liabilities Core structural borrowings of shareholder-financed businesses (4,261) (3,834) (6,127) (6,565) Operational borrowings (excluding lease liabilities) (516) (516) (514) (514) Obligations under funding, securities lending and sale and repurchase agreements (582) (582) (223) (223) Total net financial liabilities at amortised cost (3,273) (2,725) (4,923) (5,150) |
Policyholder liabilities and _2
Policyholder liabilities and unallocated surplus (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Policyholder liabilities and unallocated surplus | |
Schedule of movements in policyholder liabilities and unallocated surplus of with-profits funds | With- Shareholder-backed business Total profits Unit-linked Other business liabilities business $m $m $m $m At 1 Jan 2021 86,410 32,506 46,639 165,555 Comprising: - Policyholder liabilities on the balance sheet (excludes $296,513 million from discontinued US operations) 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 1,990 3,038 2,172 7,200 In-force 7,096 2,406 5,286 14,788 9,086 5,444 7,458 21,988 Surrenders notes (iii)(iv) (844) (3,326) (734) (4,904) Maturities/deaths/other claim events (2,116) (215) (1,123) (3,454) Net flows 6,126 1,903 5,601 13,630 Shareholders’ transfers post-tax (134) — — (134) Investment-related items and other movements note (v) 2,499 897 (3,505) (109) Foreign exchange translation differences note (vi) (899) (550) (239) (1,688) At 31 Dec 2021/1 Jan 2022 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 2,244 1,838 2,697 6,779 In-force 5,809 2,404 5,623 13,836 8,053 4,242 8,320 20,615 Surrenders notes (iii)(iv) (1,233) (2,763) (677) (4,673) Maturities/deaths/other claim events (2,103) (200) (1,712) (4,015) Net flows 4,717 1,279 5,931 11,927 Shareholders' transfers post-tax (158) — — (158) Investment-related items and other movements note (v) (20,677) (2,802) (14,623) (38,102) Foreign exchange translation differences note (vi) (197) (1,836) (2,181) (4,214) At 31 Dec 2022 77,687 31,397 37,623 146,707 Comprising: - Policyholder liabilities on the balance sheet 74,192 22,842 25,229 122,263 - Unallocated surplus of with-profits funds on the balance sheet note (i) 3,495 — — 3,495 - Group's share of policyholder liabilities relating to joint ventures and associates note(ii) — 8,555 12,394 20,949 Average policyholder liability balances note (vii) 2022 81,405 33,076 43,060 157,541 2021 84,905 33,631 47,568 166,104 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) is 4.1 per cent in 2022 (2021: 5.1 per cent). (v) Investment-related items and other movements in 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 , primarily in Hong Kong and Singapore with profits-fund. 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 year have been translated at the average exchange rates for the year. The closing balance has been translated at the closing spot rates as at 31 December. 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 relevant corporate transactions arising in the year, and exclude unallocated surplus of with-profits funds. |
Schedule of carrying value of policyholder liabilities and maturity profile of cash flows on a discounted basis | 31 Dec 2022 $m 31 Dec 2021 $m Policyholder liabilities 122,263 151,915 Expected maturity: 31 Dec 2022 % 31 Dec 2021 % 0 to 5 years 22 20 5 to 10 years 18 18 10 to 15 years 14 15 15 to 20 years 11 12 20 to 25 years 10 10 Over 25 years 25 25 |
Schedule of policyholder liabilities and unallocated surplus, by operating segment | 31 Dec 2022 $m 31 Dec 2021 $m Hong Kong 60,880 79,363 Indonesia 3,648 4,257 Malaysia 8,231 8,660 Singapore 31,197 34,361 Growth markets and other 18,995 20,905 Total segment 122,951 147,546 |
Schedule of reconciliation of gross and reinsurers' share of policyholder liabilities | Reinsurers’ Gross share of Unallocated insurance insurance Investment surplus of contract contract contract with-profits liabilities liabilities liabilities funds $m $m $m $m At 1 Jan 2021 (436,787) 46,595 (4,459) (5,217) Removal of discontinued US operations note (i) 293,325 (35,232) 3,188 — Income (expense) included in the income statement notes (i)(iii) (9,082) (1,552) 189 (202) Other movements note(ii) — — (75) — Foreign exchange translation differences 1,789 (58) (3) 35 Balance at 31 Dec 2021/1 Jan 2022 (150,755) 9,753 (1,160) (5,384) Income (expense) included in the income statement notes (i),(iii) 27,252 (6,908) 88 1,868 Other movements note(ii) — — (26) — Foreign exchange translation differences 2,290 (38) 48 21 At 31 Dec 2022 (121,213) 2,807 (1,050) (3,495) Notes (i) The total charge for benefits and claims 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 $ (9,343) million in the year (2021: $ (8,845) million) and claim amounts attributable to reinsurers of $ 740 million (2021: $581 million). Claims incurred, net of reinsurance, shown in the segment analysis of benefits and claims items below include claims paid and movement in claims outstanding payables, net of reinsurance, in the year. (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. (iii) The 2021 movement in the gross contract liabilities included $ 160 million for the impact of a change to allow for illiquidity premium in the calculation of the valuation interest rate (VIR) used to value long-term insurance liabilities in Thailand. The 2022 movement in the gross contract liabilities and reinsurers’ share of insurance contract liabilities included the impact from the early adoption of the Hong Kong Risk-Based Capital Regime as discussed below. |
Schedule of segmental analysis of the total charge for benefit and claims and movement in unallocated surplus, net of reinsurance | 2022 $m Growth Hong markets Total Kong Indonesia Malaysia Singapore and other segment Claims incurred, net of reinsurance (2,033) (1,228) (1,070) (2,718) (1,768) (8,817) Decrease in policyholder liabilities, net of reinsurance 15,643 270 (135) 3,189 1,679 20,646 Movement in unallocated surplus of with-profits funds 1,815 — 53 — — 1,868 Benefits and claims and movement in unallocated surplus, net of reinsurance 15,425 (958) (1,152) 471 (89) 13,697 2021 $m Growth Hong markets Total Kong Indonesia Malaysia Singapore and other segment Claims incurred, net of reinsurance (1,687) (1,184) (1,015) (3,037) (1,590) (8,513) (Increase) decrease in policyholder liabilities, net of reinsurance (6,088) 167 (260) (2,856) (1,159) (10,196) Movement in unallocated surplus of with-profits funds (250) — 48 — — (202) Benefits and claims and movement in unallocated surplus, net of reinsurance (8,025) (1,017) (1,227) (5,893) (2,749) (18,911) |
Schedule of reinsurers' share of insurance contract liabilities | 31 Dec 2022 $m 31 Dec 2021$m Insurance contract liabilities 2,592 9,550 Claims outstanding 215 203 Total operations 2,807 9,753 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets | |
Reconciliation of goodwill | 2022 $m 2021 $m Carrying value at 1 Jan 907 961 Exchange differences (17) (54) Carrying value at 31 Dec 890 907 |
Schedule of deferred acquisition costs and other intangible assets | 31 Dec 2022 $m 31 Dec 2021 $m Shareholder-backed business: DAC related to insurance contracts as classified under IFRS 4 3,215 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 3,254 2,815 Distribution rights 3,630 3,782 Present value of acquired in-force policies for insurance contracts as classified under IFRS 4 17 28 Other intangibles 209 184 Present value of acquired in-force and other intangibles 3,856 3,994 Total of DAC and other intangible assets attributable to shareholders 7,110 6,809 Other intangible assets, including computer software, attributable to with-profits funds 45 49 Total of deferred acquisition costs and other intangible assets 7,155 6,858 |
Shareholder-backed | |
Intangible assets | |
Schedule of deferred acquisition costs and other intangible assets | (a) Movement in DAC and other intangible assets attributable to shareholders 2022 $m 2021 $m PVIF and Distribution other DAC rights intangibles Total Total note (i) notes (ii)(iii) Balance at 1 Jan 2,815 3,782 212 6,809 20,275 Removal of discontinued US operations — — — — (13,881) Additions 1,002 206 76 1,284 1,185 Amortisation to the income statement (475) (301) (50) (826) (651) Disposals and transfers — — (5) (5) (7) Exchange differences and other movements (88) (57) (7) (152) (112) Balance at 31 Dec 3,254 3,630 226 7,110 6,809 Notes (i) 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. (ii) All of the net PVIF balances relate to insurance contracts. The PVIF attaching to investment contracts have been fully amortised. (iii) Other intangibles comprise other intangible assets such as software rights. Software rights include additions of $ 58 million, amortisation of $ (24) million, disposals of $ (3) million, foreign exchange of $( 7 ) million and closing balance at 31 December 2022 of $ 138 million (31 December 2021: $ 114 million). |
Reconciliation of deferred acquisition costs relating to insurance and investment contracts | 2022 $m 2021 $m Insurance Investment Insurance Investment contracts contracts contracts contracts note note Balance at 1 Jan 2,776 39 16,182 34 Removal of discontinued US operations — — (13,863) — Additions 993 9 841 7 Amortisation (470) (5) (339) (4) Exchange differences and other movements (84) (4) (45) 2 Balance at 31 Dec 3,215 39 2,776 39 Note The carrying amount of the DAC balance relating to investment contracts comprises the following gross and accumulated amortisation amounts: 31 Dec 2022 $m 31 Dec 2021 $m Gross amount 59 55 Accumulated amortisation (20) (16) Carrying amount 39 39 |
Reconciliation of PVIF and other intangibles | (c) Movement in PVIF and other intangibles attributable to shareholders 2022 $m 2021 $m Other Other intangibles intangibles Distribution (including Distribution (including PVIF rights software) Total PVIF rights software) Total Balance at 1 Jan Cost 140 5,037 313 5,490 177 4,845 424 5,446 Accumulated amortisation (112) (1,255) (129) (1,496) (143) (994) (250) (1,387) 28 3,782 184 3,994 34 3,851 174 4,059 Removal of discontinued US operations — — — — — — (18) (18) Additions — 206 76 282 — 260 77 337 Amortisation charge (10) (301) (40) (351) (5) (268) (35) (308) Disposals and transfers — — (5) (5) — — (7) (7) Exchange differences and other movements (1) (57) (6) (64) (1) (61) (7) (69) Balance at 31 Dec 17 3,630 209 3,856 28 3,782 184 3,994 Comprising: Cost 134 5,176 373 5,683 140 5,037 313 5,490 Accumulated amortisation (117) (1,546) (164) (1,827) (112) (1,255) (129) (1,496) 17 3,630 209 3,856 28 3,782 184 3,994 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Core structural borrowings of shareholder-financed businesses | |
Borrowings | |
Schedule of borrowings | 31 Dec 2022 $m 31 Dec 2021 $m Subordinated debt: US $1,000 m 5.25% Notes note (i) — 1,000 US $725 m 4.375% Notes note (ii) — 725 US $750 m 4.875% Notes 750 748 €20 m Medium Term Notes 2023 21 23 £435 m 6.125% Notes 2031 520 584 US $1,000 m 2.95% Notes 2033 995 995 Senior debt: note (iii) £300 m 6.875% Notes 2023 note (iv) 361 404 £250 m 5.875% Notes 2029 281 313 US $1,000 m 3.125% Notes 2030 987 985 US $350 m 3.625% Notes 2032 note (v) 346 — Bank loans: US $350 m Loan 2024 note(v) — 350 Total core structural borrowings of shareholder-financed businesses 4,261 6,127 Notes (i) The US$ 1,000 million notes were redeemed on 20 January 2022 using the proceeds from the issuance of ordinary shares during 2021 as discussed in note C8. (ii) The US $725 million notes were redeemed on 20 January 2022 using the proceeds from the US$ 1,000 million subordinated debt issued in November 2021. (iii) The senior debt ranks above subordinated debt in the event of liquidation. (iv) The £300 million notes were redeemed on 20 January 2023. (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 US$ 346 million, which was used to redeem the US$ 350 million bank loan in May 2022. |
Operational borrowings | |
Borrowings | |
Schedule of borrowings | 31 Dec 2022 $m 31 Dec 2021 $m Shareholder-financed business: Borrowings in respect of short-term fixed income securities programmes – commercial paper 501 500 Lease liabilities under IFRS 16 185 209 Other borrowings 11 10 Operational borrowings attributable to shareholder-financed businesses 697 719 With-profits business: Lease liabilities under IFRS 16 114 138 Other borrowings 4 4 Operational borrowings attributable to with-profits businesses 118 142 Total operational borrowings 815 861 |
Risk and sensitivity analysis (
Risk and sensitivity analysis (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risk and sensitivity analysis | |
Schedule of significant items of risk sensitivity | Type of business Market and credit risk With-profits business Net neutral direct exposure (indirect exposure to investment performance, which is subject to smoothing through declared bonuses) Unit-linked business Net neutral direct exposure (indirect exposure to investment performance, through asset management fees) Non-participating business Asset/liability mismatch risk which results in sensitivity to interest rates and credit spreads, particularly for operations where the insurance liability basis is sensitive to current market movements Profit and shareholders’ equity are also sensitive to the impact of current market movements on assets held in excess of non-participating policyholder liabilities Indirect exposure to investment performance through policyholder charges and guarantees in some cases |
Schedule of estimated sensitivity to risk | Net effect on shareholders' equity from insurance operations 31 Dec 2022 $m 31 Dec 2021 $m Shareholders' equity of insurance operations 14,407 14,289 Sensitivity to key market risks: note Interest rates and consequential effects – 1% increase (386) (796) Interest rates and consequential effects – 0.5% decrease (122) 137 Equity/property market values – 10% rise 190 372 Equity/property market values – 20% fall (729) (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. Changes to the results of the Africa insurance operations from interest rate or equity rate changes would not materially impact the Group. |
Tax assets and liabilities (Tab
Tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tax assets and liabilities | |
Schedule of deferred tax assets and liabilities | 2022 $m Other movements including Movement in foreign Balance income exchange Balance at 1 Jan statement movements at 31 Dec Deferred tax assets Unrealised losses or gains on investments 3 317 (178) 142 Balances relating to investment and insurance contracts 34 1 (33) 2 Short-term temporary differences 162 (15) (12) 135 Unused tax losses 67 (32) (4) 31 Total deferred tax assets 266 271 (227) 310 Deferred tax liabilities Unrealised losses or gains on investments (242) 44 185 (13) Balances relating to investment and insurance contracts (2,125) (228) 47 (2,306) Short-term temporary differences (495) (81) 23 (553) Total deferred tax liabilities (2,862) (265) 255 (2,872) 2021 $m Other movements including Removal of Movement in foreign Balance discontinued income exchange Balance at 1 Jan US operations statement movements at 31 Dec 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) | 12 Months Ended |
Dec. 31, 2022 | |
Share capital, share premium and own shares | |
Schedule of reconciliation of issued shares | 2022 2021 Issued shares of 5 p each fully paid Number of ordinary Share Share Number of ordinary Share Share shares capital premium shares capital premium $m $m $m $m Balance at 1 Jan 2,746,412,265 182 5,010 2,609,489,702 173 2,637 Shares issued under share-based schemes 3,257,115 — 2 6,142,213 — 8 Shares issued under Hong Kong public offer and international placing in 2021 note — — (6) 130,780,350 9 2,365 Balance at 31 Dec 2,749,669,380 182 5,006 2,746,412,265 182 5,010 |
Summary of options outstanding under save as you earn schemes to subscribe for shares | Number of shares to Share price range subscribe for from to Exercisable by year 31 Dec 2022 1,858,292 737 p 1,455 p 2028 31 Dec 2021 2,022,535 964 p 1,455 p 2027 |
Summary of purchases of own shares in respect of employee incentive plans | 2022 2021 Number Share price Number Share price of shares Low High Cost of shares Low High Cost £ £ $ £ £ $ January 63,019 12.93 13.14 1,120,889 74,817 14.12 14.48 1,443,158 February 65,223 12.43 12.49 1,098,500 69,865 12.42 12.96 1,251,067 March 73,193 10.37 10.96 1,055,044 55,545 14.91 15.49 1,189,784 April 4,024,410 10.64 11.29 58,880,934 2,438,884 15.45 15.55 52,512,098 May 460,897 8.95 9.05 5,288,807 52,989 15.82 15.96 1,183,836 June 196,180 10.13 11.70 2,402,464 121,472 14.62 14.89 2,508,974 July 87,338 10.06 10.15 1,052,807 60,473 13.62 13.78 1,145,078 August 86,540 9.81 9.95 1,029,843 57,004 14.20 14.37 1,128,450 September 90,843 9.24 9.73 1,000,619 312,226 14.89 15.24 7,961,098 October 175,837 9.06 9.30 1,675,634 436,771 14.48 14.99 8,410,274 November 79,326 8.99 9.04 837,944 53,867 14.77 14.83 1,072,374 December 95,680 10.63 10.74 1,240,296 76,926 13.20 13.24 1,355,942 Total 5,498,486 76,683,781 3,810,839 81,162,133 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Schedule of total provisions | 31 Dec 2022 $m 31 Dec 2021 $m Staff benefits provisions note (i) 341 355 Other provisions 7 17 Total provisions note (ii) 348 372 Notes (i) Provisions for staff benefits are generally expected to be paid out within the next three years. (ii) Analysis of movement in total provisions is shown below: 2022 $m 2021 $m Balance at 1 Jan 372 350 Removal of discontinued US operations — (14) Charged (credited) to income statement: Additional provisions 231 263 Unused amounts released (20) (15) Utilisation during the year (221) (204) Exchange differences (14) (8) Balance at 31 Dec 348 372 |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset management business | |
Group objectives, policies and processes for managing capital | |
Reconciliation of regulatory and other surplus | 2022 $m 2021 $m Balance at 1 Jan 522 453 Gains during the year 187 266 Movement in capital requirement 15 3 Capital injection 3 6 Distributions made to the parent company (214) (201) Exchange and other movements (47) (5) Balance at 31 Dec 466 522 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Reconciliation of the carrying amount of property, plant and equipment | 2022 $m 2021 $m Group Group occupied Tangible Right-of- occupied Tangible Right-of- property assets use assets Total property assets use assets Total Balance at 1 Jan Cost 33 489 678 1,200 355 707 710 1,772 Accumulated depreciation (10) (349) (363) (722) (88) (523) (268) (879) Opening net book amount 23 140 315 478 267 184 442 893 Removal of discontinued US operations — — — — (242) (32) (35) (309) Additions — 34 49 83 — 36 59 95 Depreciation and impairment charge — (39) (106) (145) (1) (45) (123) (169) Disposals, transfers and lease modifications — (2) 26 24 — — (22) (22) Effect of movements in exchange rates (1) (7) (13) (21) (1) (3) (6) (10) Balance at 31 Dec 22 126 271 419 23 140 315 478 Representing: Cost 32 486 676 1,194 33 489 678 1,200 Accumulated depreciation (10) (360) (405) (775) (10) (349) (363) (722) Closing net book amount 22 126 271 419 23 140 315 478 |
Schedule of capital expenditure | 2022 $m 2021 $m Hong Kong 11 9 Indonesia 1 1 Malaysia 1 2 Singapore 3 1 Growth markets and other 16 19 Eastspring 2 3 Total segment 34 35 Unallocated to a segment (central operations) — 1 Total capital expenditure on property, plant and equipment 34 36 |
Corporate transactions (Tables)
Corporate transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Corporate transactions | |
Schedule of gain (loss) attaching to corporate transactions | 2022 $m 2021 $m 2020 $m Gain (loss) attaching to corporate transactions as shown separately on the Consolidated income statement note 55 (35) (30) Loss arising on reinsurance transaction undertaken by the Hong Kong business (44) (59) 765 Total gain (loss) attaching to corporate transactions note B1.1 11 (94) 735 Note The gain (loss) attaching to corporate transactions largely comprises a gain of $62 million (2021: $23 million) from the sale of shares relating to the Group’s retained interest in Jackson post the demerger. Other corporate transactions in 2021 largely represent costs associated with the demerger of Jackson. |
Discontinued US operations | |
Corporate transactions | |
Summary of results and cash flows for the discontinued US operations | (a) Income statement 2021 $m 2020 $m Total revenue, net of reinsurance 45,972 19,763 Total charge, net of reinsurance (43,655) (20,523) Profit (loss) before tax 2,317 (760) Tax (charge) credit (363) 477 Profit (loss) after tax 1,954 (283) Remeasurement to fair value note (i) (8,259) — 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) 1,278 — Loss for the year (5,027) (283) Attributable to: Equity holders of the Company (4,234) (340) Non-controlling interests (793) 57 Loss for the year (5,027) (283) Notes (i) The loss on remeasurement to fair value on demerger was recognised in accordance with IFRIC 17 'Distributions of non-cash assets to owners' with the fair value determined with reference to the opening quoted price of Jackson shares on the New York Stock Exchange as at the date of demerger on 13 September 2021. (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 2020 $m Loss for the year (5,027) (283) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (763) 292 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 (1,278) — Other comprehensive (loss) income for the year (2,041) 292 Total comprehensive (loss) income for the year (7,068) 9 Attributable to: Equity holders of the Company (6,283) (40) Non-controlling interests (785) 49 Total comprehensive (loss) income for the year (7,068) 9 (c) 2021 $m 2020 $m Net cash flows from operating activities (423) (807) Net cash flows from investing activities — (2) Net cash flows from financing activities note 2,329 470 Cash divested upon demerger (3,527) — Net decrease in cash and cash equivalents (1,621) (339) Cash and cash equivalents at 1 Jan 1,621 1,960 Cash and cash equivalents at 31 Dec — 1,621 Note Financing activities in 2021 largely reflected the issuance of debt of $2,350 million. No dividends were paid by Jackson during 2021 prior to demerger. |
Investments in subsidiary und_2
Investments in subsidiary undertakings, joint ventures and associates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in subsidiary undertakings, joint ventures and associates | |
Schedule of investments in unconsolidated structured entities | 31 Dec 2022 $m 31 Dec 2021 $m Other Other Investment structured Investment structured Consolidated statement of financial position line items funds entities funds entities Equity securities and holdings in collective investment schemes 30,771 — 35,446 — Debt securities — 370 — 251 Total investments in unconsolidated structured entities 30,771 370 35,446 251 |
Schedule of group's share of the profits , net of related tax, and carrying amount of interest in joint ventures and associates, which are equity accounted | 2022 $m 2021 $m 2020 $m CPL (144) 278 394 Hong Kong — 9 3 Malaysia 24 28 30 Growth markets and other note 5 (110) (27) Insurance operations (115) 205 400 Eastspring 144 147 117 Total segment and Group total 29 352 517 Note For growth markets and other, as well as the segment results for associates and joint ventures within the segment, the amount shown includes other items of $15 million (2021: $(38) million; 2020: $(103) million) which primarily comprise of taxes for all life joint ventures and associates together with other non-recurring items. |
Schedule of financial information relating to joint venture | Statement of financial position: 31 Dec 2022 $m 31 Dec 2021 $m Total assets 31,608 29,237 Total liabilities (including non-controlling interest) 29,330 26,523 Shareholders’ equity 2,278 2,714 The above amounts of assets and liabilities include the following: Cash and cash equivalents 561 422 Financial liabilities (excluding trade and other payables and provisions) 985 938 Income statement: 2022 $m 2021 $m 2020 $m Revenue 5,778 7,374 5,492 Profit for the year after tax (248) 453 599 The above profit for the year includes the following: Depreciation and amortisation (106) (86) (81) Interest income 599 465 378 Interest expense (3) (2) (2) Income tax credit (charge) 40 (84) (166) The summarised financial information above is reconciled to the carrying amount of the Group’s interest in the joint venture recognised in the consolidated financial statements as follows: 31 Dec 2022 $m 31 Dec 2021 $m Net assets of CITIC-Prudential Life as shown above 2,278 2,714 Proportion owned by the joint venture partner (50%) 1,139 1,357 Carrying amount of the Group’s interest in the joint venture (50%) 1,139 1,357 |
Schedule of direct subsidiary undertakings of the parent company | Simplified corporate structure as at 31 December 2022 * † Direct subsidiary undertakings of the parent company, Prudential plc (shares held directly or via nominees) Key to share classes: Abbreviation Class of share held LBG Limited by Guarantee MI Membership Interest MI - WFOE Membership Interest of a Wholly Foreign Owned Enterprise in the Chinese Mainland MI – JV Membership Interest of a Sino-Foreign Equity Joint Venture in the Chinese Mainland OS Ordinary Shares PI Partnership Interest PS Preference Shares U Units Name of entity Classes of shares held Proportion held Registered office address Prudential Corporation Asia Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom |
Schedule of other subsidiaries, joint ventures, associates and significant holdings | Other subsidiaries, joint ventures, associates and significant holdings of the Group – no shares held directly by the parent company (Prudential plc) or its nominees Classes of shares Proportion Name of entity held held Registered office address Aberdeen Cash Creation Fund U 30.62% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Global Opportunities Fund U 34.61% 21 Church Street, #01-01, Capital Square Two, Singapore 049480 Aberdeen Standard Singapore Equity Fund U 62.18% AC Financial Partners Limited Partnership PI 100.00% 65 Haymarket Terrace, Edinburgh, EH12 5HD Alternatives North America Ltd. U 100.00% PO Box 1093, Queensgate House, Grand Cayman, KY1-1102, Cayman Islands BOCHK Aggressive Growth Fund U 47.75% 27th Floor, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Balanced Growth Fund U 41.47% BOCHK China Equity Fund U 73.71% BOCHK Conservative Growth Fund U 42.71% BOCHK US Dollar Money Market Fund U 21.91% BOCI-Prudential Asset Management Limited OS 36.00% BOCI-Prudential Trustee Limited OS 36.00% Suites 1501-1507 & 1513-1516, 15th Floor, 1111 King's Road, Taikoo Shing, Hong Kong Cathay High Yield Ex China Cash Pay 1-5 Year 2% Issuer Capped ETF U 42.71% 6th Floor, No.39, Sec.2, Dunhua South. Road, Taipei, Taiwan CITIC-CP Asset Management Co., Ltd. MI - JV 26.95% Room 101-2, No.128 North Zhangjiabang Road, Pudong District, Shanghai, China CITIC-Prudential Fund Management Company Limited MI - JV 49.00% Level 9, HSBC Building, Shanghai IFC, 8 Century Avenue, Pudong, Shanghai, China CITIC-Prudential Life Insurance Company Limited MI - JV 50.00% Room 1101-A, 1201, 1301, 1401, 1501, 1601, 1701, 1801, Unit 01, Building 1, No. B2, North Road of East Third Ring Road, Chaoyang District, Beijing, PRC,100027, China Classes of shares Proportion Name of entity held held Registered office address Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Eastspring Asia Pacific High Yield Equity Fund U 37.57% 4th Floor, No.1, Songzhi Road, Xinyi Dist., Taipei, Taiwan Eastspring Asset Management (Thailand) Co., Ltd. OS 59.50% 944 Mitrtown Office Tower, 9th Floor, Rama 4 Road, Wangmai, Pathumwan, Bangkok 10330, Thailand Eastspring Asset Management Korea Co. Ltd. OS 100.00% 22nd Floor (Seoul International Finance Center, Yeouido dong), 10 Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, Republic of Korea 07326 Eastspring Investment K-Short Term Bond Alpha Securities Investment Trust(Bond Balanced) U 27.54% 22nd Floor One IFC, 10 Gukjegeumyung-ro, Youngdungpo-gu, Seoul 07326, Korea Eastspring Investment Management (Shanghai) Company Limited MI - WFOE 100.00% Unit 306-308, 3rd Floor, Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Investments - Asia Opportunities Equity Fund U 99.97% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments - Global Growth Equity Fund U 59.04% Eastspring Investments - Global Low Volatility Equity Fund U 96.36% Eastspring Investments - Global Technology Fund U 82.06% Eastspring Investments - Pan European Fund U 61.34% Eastspring Investments - US High Yield Bond Fund U 46.85% Eastspring Investments - US Investment Grade Bond Fund U 68.91% Eastspring Investments - World Value Equity Fund U 95.64% Eastspring Investments (Hong Kong) Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Eastspring Investments (Luxembourg) S.A. OS 100.00% 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg Eastspring Investments (Singapore) Limited OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Asia Pacific Equity Fund U 93.92% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asia Pacific ex-Japan Target Return Fund U 75.84% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Asia Real Estate Multi Asset Income Fund U 73.95% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Asia Sustainable Bond Fund U 93.97% Eastspring Investments Asian Bond Fund U 42.30% Eastspring Investments Asian Dynamic Fund U 91.58% Eastspring Investments Asian Equity Fund U 98.97% Eastspring Investments Asian Equity Income Fund U 87.52% Eastspring Investments Asian High Yield Bond Fund U 44.35% Eastspring Investments Asian Investment Grade Bond Fund U 90.06% Eastspring Investments Asian Low Volatility Equity Fund U 89.01% Eastspring Investments Asian Multi Factor Equity Fund U 90.94% Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Eastspring Investments China A Shares Growth Fund U 63.69% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Dragon Peacock Fund U 95.82% Eastspring Investments Emerging Markets Star Players U 40.88% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Eastspring Investments Equity Income Fund U 40.95% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments European Investment Grade Bond Fund U 99.91% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Fund Management Limited Liability Company MI 100.00% 23rd Floor, Saigon Trade Center, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Eastspring Investments Global Emerging Markets Bond Fund U 99.38% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Emerging Markets Dynamic Fund U 62.79% Eastspring Investments Global Emerging Markets ex-China Dynamic Fund U 99.96% Eastspring Investments Global Equity Navigator Fund U 97.19% Eastspring Investments Global Growth Fund U 40.22% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Global Market Navigator Fund U 99.75% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Global Multi Asset Income Plus Growth Fund U 100.00% Eastspring Investments Greater China Equity Fund U 90.60% Eastspring Investments Group Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, City of Dover, County of Kent, State of Delaware, 19904, USA Eastspring Investments India Consumer Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Equity Fund U 79.97% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments India Equity Open Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Eastspring Investments India Infrastructure Equity Open Limited OS 100.00% Eastspring Investments Limited OS 100.00% Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-Ku, Tokyo, Japan Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments MY Focus Fund U 28.33% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Private Fixed Income Fund Number 1 U 87.11% Units 306-308, 3rd Floor, Azia Center 1233 Lujiazui Ring Road, Shanghai, China Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investments Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Syariah Equity Islamic Asia Pacific USD Kelas B U 88.02% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Eastspring Investments Unit Trusts - Dragon Peacock Fund U 97.69% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Unit Trusts Singapore ASEAN Equity Fund U 98.74% Eastspring Investments Unit Trusts Singapore Select Bond Fund U 66.05% Eastspring Investments US Corporate Bond Fund U 60.04% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments US High Investment Grade Bond Fund U 87.42% Eastspring Investments Vietnam Navigator Fund U 76.79% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Eastspring Investments-Global Emerging Markets Fundamental Value Fund U 99.96% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments-Japan Sustainable Value Fund U 100.00% Eastspring Overseas Investment Fund Management (Shanghai) Company Limited MI - WFOE 100.00% Unit 306-308, 3rd Floor, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, China Eastspring Private Equity Fund 2 U 99.99% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Securities Investment Trust Co., Ltd. OS 99.54% 4th Floor, No.1 Songzhi Road, Taipei 110, Taiwan Eastspring Singapore Alternatives VCC U 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Syariah Fixed Income USD Kelas A U 69.23% Prudential Tower Lantai 23, JI. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia FCP Ecobank Actions Uemoa U 43.63% Immeuble Ecobank, 2Er Etage -Avenue Houdaille Plateau, 01 B.P 4107 Abidjan O1 Cote D’Ivoire First Sentier Global Property Securities Fund U 67.50% 79 Robinson Road, #17-01, Singapore 068897 FSSA China Focus Fund U 67.76% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland Fubon 1-5 Years US High Yield Bond Ex China U 61.05% 8th Floor, No.108, Sec.1, Dunhua South. Road, Taipei, Taiwan Fubon China Bond Umbrella Fund - Fubon China Quality Rmb Bond Fund U 23.37% Fubon China Currency Fund U 35.49% Fuh Hwa 1-5 Yr High Yield ETF U 44.22% 8th & 9th Floor, No.308, Sec. 2, Bade Road, Da-an District Fuh Hwa Emerging Market RMB Fixed Income Fund U 46.42% Fuh Hwa Rmb Money Market Fund U 37.52% Furnival Insurance Company PCC Limited OS 100.00% PO Box 155, Mill Court, La Charroterie, St Peter Port, GY1 4ET, Guernsey GIS Total Return Bond Fund U 27.53% 78 Sir John Rogerson's Quay, Dublin, D02 HD32, Ireland Classes of shares Proportion Name of entity held held Registered office address GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom HSBC Asia Pacific Ex Japan Sustainable Equity UCITS ETF U 63.65% 25/28 North Wall Quay, IFSC, Dublin 1, Ireland HSBC Senior Global Infrastructure Debt Fund U 100.00% 8 Canada Square, London, E14 5HQ, United Kingdom ICICI Prudential Asset Management Company Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India ICICI Prudential Life Insurance Company Limited OS 22.07% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company Limited OS 22.07% ICICI Prudential Trust Limited OS 49.00% 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India India Innovation High Growth EQ QII U 100.00% Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905 Invesco Fixed Maturity Selective Emerging Market Bonds 2024 U 100.00% 8th Floor, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 100.00% iShares Core MSCI Asia U 61.46% 15th, 16th, 17th Floor, Champion Tower & 17th Floor ICBC Tower, Three Garden Road, Central, Hong Kong iShares Global High Yield Corp Bond UCITS ETF U 65.61% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI Europe ESG Enhanced UCITS ETF U 51.34% 12 Throgmorton Avenue, London, EC2N 2DL iShares MSCI Korea UCITS ETF USD (Acc) U 53.66% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI USA ESG Enhanced UCITS ETF U 41.86% 12 Throgmorton Avenue, London, EC2N 2DL KKP Active Equity Fund U 35.38% 19th Floor Muang Thai-Phatra Complex, Building Tower, A, 252/25 Ratchadapisek Road, Huaykwang, Bangkok 10310, Thailand Krungsri Greater China Equity Hedged Dividend Fund U 31.10% 12th, 18th Zone B Floor, Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok 10330, Thailand Lasalle Property Securities SICAV-FIS U 99.97% 11-13 Bouldevard de la Foire, L-1528 Luxembourg M&G Asia Property Trust U 100.00% 138 Market Street, CapitaGreen #35-01, Singapore 048946 M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% 138 Market Street, #35-01 CapitaGreen, Singapore 048946 Classes of shares Proportion Name of entity held held Registered office address Manulife Asia Pacific Bond Fund U 57.81% 9th Floor, No 89 Son Ren Road, Taipei, Taiwan Manulife China Dim Sum High Yield Bond Fund U 22.54% Manulife China Offshore Bond Fund U 85.22% Manulife Taiwan Dynamic Fund U 20.53% Manulife USD High Yield Bond Fund U 29.47% Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 100.00% 101 Tower, 30th Floor, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 41.88% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 97.86% North Sathorn Holdings Company Limited OS 100.00% No. 63, Athenee Tower, 34th Floor, Wireless Road, Lumpini Subdistrict Pathumwan District, Bangkok Metropolis, Thailand PCA IP Services Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong PCA Life Assurance Co., Ltd. OS 99.79% 8th Floor, No.1 Songzhi Road, Taipei City, 11047, Taiwan PCA Reinsurance Co. Ltd. OS 100.00% Unit Level 13(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia Classes of shares Proportion Name of entity held held Registered office address PineBridge US Dual Core Income Fund U 37.37% 10th Floor, No. 144, Sec. 2, Minquan East Rd, Taipei Principal Global Silver Age Fund U 22.89% 44, 16th Floor, CIMB Thai Bank, Lungsuan Road, Lumpini, Bangkok 10330, Thailand Pru Life Insurance Corporation of U.K. OS 100.00% 9th Floor, Uptown Place Tower 1, 1 East 11th Drive, Uptown Bonifacio, 1634 Taguig City, Metro Manila, Philippines Pru Life UK Asset Management and Trust Corporation OS 100.00% Prudence Foundation LBG 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential (Cambodia) Life Assurance Plc OS 100.00% Phnom Penh Tower, 20th Floor, #445, Monivong Blvd., Boeung Prolit, 7 Makara, Phnom Penh, Cambodia Prudential (US Holdco 1) Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Africa Holdings Limited OS 100.00% Prudential Africa Services Limited OS 100.00% 3rd Floor, One Africa Place, LR. No. 1870/X/45, P.O. Box 25093-00100, Westlands, Nairobi, Kenya Prudential Assurance Company Singapore (Pte) Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Assurance Malaysia Berhad* OS 51.00% Level 26, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Prudential Assurance Uganda Limited OS 100.00% 9th Floor Zebra Plaza, Plot 23 Kampala Road, P.O. Box 2660, Kampala, Uganda Prudential BeGeneral Insurance Côte d'Ivoire S.A. OS 51.00% Abidjan Plateau, Avenue Noguès, Immeuble Woodin Center, 1er étage, 01 P.O. BOX 5173, Abidjan 01, Côte d'Ivoire Prudential Belife Insurance Côte d'Ivoire S.A. OS 51.00% Prudential Beneficial General Insurance Cameroon S.A. OS 50.71% 1944, Boulevard de la République Douala-Akwa, P.O. BOX 2328, Douala, Cameroon Prudential Beneficial Life Insurance Cameroon S.A. OS 51.00% Prudential Beneficial Life Insurance Togo S.A. OS 50.99% 2963 Rue de la Chance Agbalepedogan, P.O. Box 1115, Lome, Togo Prudential BSN Takaful Berhad † OS 49.00% Level 13, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Prudential Corporation Holdings Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Financial Advisers Singapore Pte. Ltd. OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 Prudential Financial Partners (Asia) Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, England, United Kingdom Prudential Financial Partners HK Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential General Insurance Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential Group Secretarial Services HK Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Secretarial Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Holdings Limited OS 100.00% 4th Floor, Saltire Court, 20, Castle Terrace, Edinburgh, EH1 2EN, United Kingdom Prudential Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential International Treasury Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential IP Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Life Assurance (Lao) Company Limited OS 100.00% 5th Floor, Lao international Business and Tourist Center Project (Vientiane Center), Khouvieng Road, Nongchan Village, Sisattanak District, Vientiane Capital, Lao PDR Prudential Life Assurance (Thailand) Public Company Limited OS 99.93% 944 Mitrtown Office Tower, 10th, 29th-31st Floor, Rama 4 Road, Wangmai, Pathumwan, Bangkok, 10330, Thailand Prudential Life Assurance Kenya Limited OS 100.00% Vienna Court, Ground Floor, State House Crescent, Off State House Avenue, P.O. Box 25093-00603, Nairobi, Kenya Prudential Life Assurance Zambia Limited OS 100.00% Prudential House, Plot No. 32256, Thabo Mbeki Road, P.O. Box 31357, Lusaka, Zambia Prudential Life Insurance Ghana Limited OS 100.00% H/NO. 35, Opp. Hobats Clinic, North Street, Tesano, Accra, Accra Metropolitan, Greater Accra, P.O. Box AN 10476, Ghana Prudential Life Vault Limited OS 100.00% 48 Awolowo Road, South-West Ikoyi, Lagos, Nigeria Classes of shares Proportion Name of entity held held Registered office address Prudential Mauritius Holdings Limited OS 100.00% 3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius Prudential Myanmar Life Insurance Limited OS 100.00% #15-01, 15th Floor, Sule Square, 221 Sule Pagoda Road, Kyauktada Township, Yangon, Myanmar Prudential Pensions Management Zambia Limited OS 49.00% Prudential House, Plot No. 32256, Thabo Mbeki Road, P.O. Box 31357, Lusaka, Zambia Prudential Services Asia Sdn. Bhd. OS 100.00% Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1 Leboh Ampang, 50100 Kuala Lumpur, Malaysia PS 100.00% Prudential Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Services Philippines Corporation OS 100.00% 19th Floor Uptown Place Tower I East, 11th Drive Uptown Bonifacio Fort Bonifacio Bonifacio Global City, Taguig City, Fourth District, National Capital Region (NCR), 1630, Philippines Prudential Services Singapore Pte. Ltd. OS 100.00% 7 Straits View, #06-01 Marina One East Tower, Singapore 018936 Prudential Singapore Holdings Pte. Limited OS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 PS 100.00% Prudential Technology and Services India Private Limited OS 100.00% CoWrks NXT, EPIP Industrial Area, Whitefield Road, K.R Puram, Near SAP Labs, Hubli, Bangalore, Karnataka, 560066, India Prudential Vietnam Assurance Private Limited OS 100.00% 25th Floor, Saigon Trade Center, 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam Prudential Wealth Holdings Company Pte. Ltd. OS 100.00% 7 Straits View #07-01, Marina One East Tower, Singapore 018936, Singapore Prudential Wealth Management Singapore Pte. Ltd. OS 100.00% 8 Marina View #15-06A, Asia Square Tower 1, Singapore 018960, Singapore Prudential Zenith Life Insurance Limited OS 51.00% 13th Floor, Civic Towers, Ozumba Mbadiwe Avenue, Victoria Island, Lagos State, Lagos, Nigeria PRUInvest PHP Liquid Fund U 99.84% 9th Floor, Uptown Place Tower 1, 1 East 11th Drive, Uptown Bonifacio, 1634 Taguig City, Metro Manila, Philippines PRUInvest PH Equity Index Tracker Fund U 100.00% PT Prudential Sharia Life Assurance OS 94.62% Prudential Tower, 2nd Floor, Jl. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia PT. Eastspring Investments Indonesia OS 99.95% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia PT. Prudential Life Assurance ‡ OS 94.62% Prudential Tower, Jl. Jend. Sudirman Kav. 79, Jakarta 12910, Indonesia Pulse Ecosystems Pte. Ltd. OS 100.00% 7 Straits View, #06-01 Marina One East Tower, Singapore 018936 Pulse Wealth Limited OS 100.00% Suite 3703-04, 37/F, Tower 6, The Gateway, Harbour City, 9 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong Reksa Dana Eastspring IDR Fixed Income Fund U 98.81% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Reksa Dana Eastspring Investments Cash Reserve U 88.93% Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah U 66.32% Reksa Dana Syariah Eastspring Syariah Money Market Khazanah U 99.30% Reksa Dana Syariah Penyertaan Terbatas Bahana Syariah Bumn Fund IV U 99.01% Graha CIMB Niaga 21st Floor. Jl Jend Sudirman Kav 58, Jakarta - 12190, Indonesia Rhodium Investment Funds - Singapore Bond Fund U 99.75% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Rhodium Passive Long Dated Bond Fund U 99.87% Robeco QI European Active Index Equities U 94.55% 6, route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg Schroder Asian Investment Grade Credit U 37.95% 138 Market Street, #23-01 CapitaGreen, Singapore 048946 Schroder Emerging Markets Fund U 67.30% Schroder Multi-Asset Revolution U 48.29% Schroder US Dollar Money Fund U 34.92% 9th floor, no. 108, section 5, xinyi road, taipei Scotts Spazio Pte. Ltd. OS 45.00% 316 Tanglin Road, #01-01,Singapore, 247978 Shenzhen Prudential Technology Limited MI - WFOE 100.00% Unit 5, 8th Floor, China Resources Tower, No.2666 Keyuan South Road, Yuehai Street, Nanshan District, Shenzhen 518054, China Classes of shares Proportion Name of entity held held Registered office address Sinopac RMB Money Market Fund U 27.12% 14th Floor, No.17,Po Ai Rd., Taipei, Taiwan Sri Han Suria Sdn. Bhd. OS 51.00% Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1 Leboh Ampang, 50100 Kuala Lumpur, Malaysia Staple Limited OS 100.00% No. 63, Athenee Tower, 34th Floor, Wireless Road, Lumpini Subdistrict Pathumwan District, Bangkok Metropolis, Thailand Templeton Asian Growth Fund U 31.40% 8A, rue Albert Borschette, L-1246 Luxembourg Threadneedle (Lux) – Global Emerging Market Equities U 69.10% 44 Rue de la vallée, 2661 Luxembourg United Global Innovation Fund U 21.33% 23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathon Road, Thungmahamek, Sathon, Bangkok 10120, Thailand UOB Smart Global Healthcare Fund U 42.04% UOB Smart Japan Small and Mid Cap Fund U 29.79% UOB Smart Millennium Growth Fund U 38.65% USD Investment Grade Infrastructure Debt Fund SCSp U 21.53% 35a, Avenue J.F. Kennedy, L-1855, Luxembourg, Grand Duchy of Luxembourg * Prudential Assurance Malaysia Berhad is consolidated at 100 per cent in the Group's consolidated financial statements reflecting the economic interest to the Group. † Prudential BSN Takaful Berhad is a joint venture that is accounted for using the equity method, for which the Group has an economic interest of 70 per cent for all business sold up to 23 December 2016 and of 49 per cent for new business sold subsequent to this date. |
Schedule of issued share capital of subsidiaries which affect results or assets of group | Name of entity Issued and fully paid up share/ registered capital Prudential Assurance Company Singapore (Pte) Limited 526,557,000 ordinary shares of SG$ 1 each PT. Prudential Life Assurance 105,500 ordinary shares and 6,000 preference shares of Rp 1,000,000 each Prudential Hong Kong Limited 3,641,479,873 ordinary shares of HK$ 1 each Prudential Assurance Malaysia Berhad 100,000,000 ordinary shares of RM 1 each |
Basis of preparation and acco_4
Basis of preparation and accounting policies (Details) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2022 $ / ¥ | Dec. 31, 2022 $ / $ $ / ¥ | Dec. 31, 2022 $ / ₨ $ / ¥ | Dec. 31, 2022 $ / Rp $ / ¥ | Dec. 31, 2022 $ / RM $ / ¥ | Dec. 31, 2022 $ / ¥ $ / $ | Dec. 31, 2022 $ / $ $ / ¥ | Dec. 31, 2022 $ / ฿ $ / ¥ | Dec. 31, 2022 $ / £ $ / ¥ | Dec. 31, 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 $ / ₫ $ / ¥ | Dec. 31, 2020 $ / ¥ | Dec. 31, 2020 $ / ¥ $ / $ | Dec. 31, 2020 $ / ₨ $ / ¥ | Dec. 31, 2020 $ / ¥ $ / Rp | Dec. 31, 2020 $ / ¥ $ / RM | Dec. 31, 2020 $ / ¥ $ / $ | Dec. 31, 2020 $ / $ $ / ¥ | Dec. 31, 2020 $ / ฿ $ / ¥ | Dec. 31, 2020 $ / £ $ / ¥ | Dec. 31, 2020 $ / ₫ $ / ¥ | Dec. 31, 2022 $ / $ | Dec. 31, 2022 $ / ₨ | Dec. 31, 2022 $ / Rp | Dec. 31, 2022 $ / RM | Dec. 31, 2022 $ / $ | Dec. 31, 2022 $ / $ | Dec. 31, 2022 $ / ฿ | Dec. 31, 2022 $ / £ | Dec. 31, 2022 $ / ₫ | 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 $ / ₫ | Dec. 31, 2020 $ / $ | Dec. 31, 2020 $ / ₨ | Dec. 31, 2020 $ / Rp | Dec. 31, 2020 $ / RM | Dec. 31, 2020 $ / $ | Dec. 31, 2020 $ / $ | Dec. 31, 2020 $ / ฿ | Dec. 31, 2020 $ / £ | Dec. 31, 2020 $ / ₫ | |
Basis of preparation and accounting policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closing rate | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.95 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.37 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 7.81 | 82.73 | 15,567.50 | 4.41 | 1.34 | 30.74 | 34.56 | 0.83 | 23,575 | 7.80 | 74.34 | 14,252.50 | 4.17 | 1.35 | 27.67 | 33.19 | 0.74 | 22,790 | 7.75 | 73.07 | 14,050 | 4.02 | 1.32 | 28.10 | 30.02 | 0.73 | 23,082.50 |
Average rate | 6.73 | 7.83 | 78.63 | 14,852.24 | 4.40 | 1.38 | 29.81 | 35.06 | 0.81 | 23,409.87 | 6.45 | 7.77 | 73.94 | 14,294.88 | 4.15 | 1.34 | 27.93 | 32.01 | 0.73 | 22,934.86 | 6.90 | 7.76 | 74.12 | 14,541.70 | 4.20 | 1.38 | 29.44 | 31.29 | 0.78 | 23,235.84 |
Basis of preparation and acco_5
Basis of preparation and accounting policies - Various accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Critical accounting policies and estimates | ||||
Liabilities relating to insurance or investment contracts | $ 146,707 | $ 177,254 | $ 165,555 | |
Profit (loss) before tax, attributable to shareholders | 1,461 | 2,676 | 2,908 | |
Profit (loss) before tax | [1] | 1,482 | 3,018 | 3,179 |
Adjusted operating profit | 3,375 | $ 3,233 | $ 2,757 | |
Operating segments | ||||
Critical accounting policies and estimates | ||||
Adjusted operating profit | $ 4,106 | |||
[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 under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders. |
Basis of preparation and acco_6
Basis of preparation and accounting policies - Distribution rights (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Distribution rights | |
Assets subject to impairment estimates | |
Distribution rights | $ 3.6 |
Basis of preparation and acco_7
Basis of preparation and accounting policies - Deferred acquisition costs (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Basis of preparation and accounting policies | |
Deferred acquisition costs for insurance contracts | $ 3.3 |
Basis of preparation and acco_8
Basis of preparation and accounting policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial investments | $ 144,048 | $ 168,479 |
At fair value | ||
Financial instruments | ||
Financial investments | 135,700 | |
Assets and liabilities at amortised cost for which fair value is disclosed | ||
Financial instruments | ||
Financial investments | $ 8,400 |
Basis of preparation and acco_9
Basis of preparation and accounting policies - New accounting pronouncements (Details) | Dec. 31, 2022 |
Basis of preparation and accounting policies | |
Percentage of the Group's financial investments valued at FVTPL | 97% |
Basis of preparation and acc_10
Basis of preparation and accounting policies - Financial assets presentation based on SPPI test of IFRS 9 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial assets | ||
Fair value of financial assets that pass the SPPI test | $ 16,807 | $ 17,213 |
Movement in the fair value of financial assets that pass the SPPI test | 15 | 41 |
Fair value of all other financial assets, net of derivative liabilities | 134,704 | 161,335 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (34,747) | (47) |
CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 3,252 | 3,078 |
Fair value of all other financial assets, net of derivative liabilities | 27,176 | 24,858 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (1,277) | 438 |
Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | 941 | 1,011 |
Share of fair value of all other financial assets | 7,133 | 7,533 |
Share of movement in the fair value of all other financial assets | 2 | 559 |
Accrued investment income | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 1,135 | 1,171 |
Accrued investment income | CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 176 | 170 |
Accrued investment income | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | 83 | 85 |
Other debtors | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 1,694 | 1,779 |
Other debtors | CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 667 | 620 |
Other debtors | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | 143 | 187 |
Loans | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 2,189 | 2,126 |
Movement in the fair value of financial assets that pass the SPPI test | 15 | 41 |
Fair value of all other financial assets, net of derivative liabilities | 468 | 647 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (37) | (1) |
Loans | CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 674 | 656 |
Loans | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | 26 | |
Equity securities and holdings in collective investment schemes | ||
Financial assets | ||
Fair value of all other financial assets, net of derivative liabilities | 57,679 | 61,601 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (8,420) | 4,061 |
Equity securities and holdings in collective investment schemes | CPL | ||
Financial assets | ||
Fair value of all other financial assets, net of derivative liabilities | 15,698 | 12,882 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (1,314) | 254 |
Equity securities and holdings in collective investment schemes | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of all other financial assets | 3,657 | 3,859 |
Share of movement in the fair value of all other financial assets | 133 | 680 |
Debt securities | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 226 | |
Fair value of all other financial assets, net of derivative liabilities | 76,989 | 98,868 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (21,803) | (3,164) |
Debt securities | CPL | ||
Financial assets | ||
Fair value of all other financial assets, net of derivative liabilities | 11,478 | 11,976 |
Movement in the fair value of all other financial assets, net of derivative liabilities | 37 | 184 |
Debt securities | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of all other financial assets | 3,476 | 3,674 |
Share of movement in the fair value of all other financial assets | (131) | (121) |
Derivative assets, net of derivative liabilities | ||
Financial assets | ||
Fair value of all other financial assets, net of derivative liabilities | (432) | 219 |
Movement in the fair value of all other financial assets, net of derivative liabilities | (4,487) | (943) |
Deposits | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 6,275 | 4,741 |
Deposits | CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 1,174 | 1,210 |
Deposits | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | 335 | 203 |
Cash and cash equivalents | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 5,514 | 7,170 |
Cash and cash equivalents | CPL | ||
Financial assets | ||
Fair value of financial assets that pass the SPPI test | 561 | 422 |
Cash and cash equivalents | Joint ventures and associates other than CITIC | ||
Financial assets | ||
Share of fair value of financial assets that pass the SPPI test | $ 380 | $ 510 |
Basis of preparation and acc_11
Basis of preparation and accounting policies - Overview of IFRS 17 (Details) | Jan. 01, 2022 |
Basis of preparation and accounting policies | |
Percentage of CSM calculated under VFA | 66.67% |
Basis of preparation and acc_12
Basis of preparation and accounting policies - Expected impact on transition (Details) - Forecast - IFRS 17 and IFRS 9 classification overlay $ in Billions | Jan. 01, 2022 USD ($) |
Minimum | |
Estimated impact of IFRS 17 and IFRS 9 classification overlay | |
Increase (decrease) in shareholders' equity due to application of new standard | $ 18.9 |
Maximum | |
Estimated impact of IFRS 17 and IFRS 9 classification overlay | |
Increase (decrease) in shareholders' equity due to application of new standard | $ 19.8 |
Analysis of performance by se_3
Analysis of performance by segment - Segment results (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Other income (expenditure): | ||||
Interest payable on core structural borrowings | $ (200) | $ (328) | $ (316) | |
Adjusted operating profit | 3,375 | 3,233 | 2,757 | |
Short-term fluctuations in investment returns on shareholder-backed business | (1,915) | (458) | (579) | |
Amortisation of acquisition accounting adjustments | (10) | (5) | (5) | |
Gain (loss) attaching to corporate transactions | 11 | (94) | 735 | |
Profit before tax attributable to shareholders' returns | 1,461 | 2,676 | 2,908 | |
Tax charge attributable to shareholders' returns | (454) | (462) | (440) | |
Profit after tax from continuing operations | 1,007 | 2,214 | 2,468 | |
Loss after tax from discontinued US operations | [1] | (5,027) | (283) | |
Profit (loss) for the year | 1,007 | (2,813) | 2,185 | |
Attributable to: | ||||
Equity holders of the Company From continuing operations | 998 | 2,192 | 2,458 | |
Equity holders of the Company From discontinued US operations | (4,234) | (340) | ||
Profit (loss) attributable to equity holders of the company | 998 | (2,042) | 2,118 | |
Non-controlling interests from continuing operations | 9 | 22 | 10 | |
Non-controlling interests from discontinued US operations | (793) | 57 | ||
Profit (loss) attributable to non-controlling interests | 9 | (771) | 67 | |
Profit (loss) for the year | $ 1,007 | $ (2,813) | $ 2,185 | |
Basic earnings per share | ||||
Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations | $ 1.005 | $ 1.015 | $ 0.866 | |
Based on profit from continuing operations (in USD per share) | $ 0.365 | 0.834 | 0.946 | |
Based on loss from discontinued US operations (in USD per share) | [1] | $ (1.611) | $ (0.130) | |
Operating segments | ||||
Other income (expenditure): | ||||
Adjusted operating profit | $ 4,106 | |||
Tax charge attributable to shareholders' returns | (450) | $ (441) | $ (440) | |
Profit after tax from continuing operations | 1,661 | 3,085 | 3,375 | |
Operating segments | CPL | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 368 | 343 | 251 | |
Profit after tax from continuing operations | (144) | 278 | 394 | |
Operating segments | Hong Kong | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 1,036 | 975 | 891 | |
Tax charge attributable to shareholders' returns | (52) | (40) | (15) | |
Profit after tax from continuing operations | (211) | 1,068 | 994 | |
Operating segments | Indonesia | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 343 | 446 | 519 | |
Tax charge attributable to shareholders' returns | (60) | (74) | (125) | |
Profit after tax from continuing operations | 243 | 362 | 409 | |
Operating segments | Malaysia | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 364 | 350 | 309 | |
Tax charge attributable to shareholders' returns | (90) | (71) | (58) | |
Profit after tax from continuing operations | 252 | 265 | 256 | |
Operating segments | Singapore | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 678 | 663 | 574 | |
Tax charge attributable to shareholders' returns | (78) | (67) | (87) | |
Profit after tax from continuing operations | 406 | 394 | 521 | |
Operating segments | Growth markets and other | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 1,057 | 932 | 835 | |
Tax charge attributable to shareholders' returns | (144) | (159) | (125) | |
Profit after tax from continuing operations | 881 | 434 | 548 | |
Other items | 211 | 217 | 119 | |
Operating segments | Eastspring | ||||
Other income (expenditure): | ||||
Adjusted operating profit | 260 | 314 | 283 | |
Tax charge attributable to shareholders' returns | (26) | (30) | (30) | |
Profit after tax from continuing operations | 234 | 284 | 253 | |
Material reconciling items | ||||
Other income (expenditure): | ||||
Net investment return and other items | 39 | 21 | (15) | |
Interest payable on core structural borrowings | (200) | (328) | (316) | |
Corporate expenditure | (276) | (298) | (412) | |
Total other income (expenditure) | (437) | (605) | (743) | |
Restructuring and IFRS 17 implementation costs | (294) | (185) | (162) | |
Material reconciling items | Insurance and asset management operations | ||||
Other income (expenditure): | ||||
Restructuring and IFRS 17 implementation costs | $ (137) | $ (101) | $ (97) | |
[1] Discontinued operations for 2021 and 2020 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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Equity-type securities | |||
Financial investments | $ 144,048 | $ 168,479 | |
Insurance operations | |||
Analysis of operating segments | |||
Unamortised interest-related realised gains related to previously sold bonds | (98) | 515 | $ 525 |
Insurance operations | Non-linked shareholder-backed | Equity-type securities | |||
Equity-type securities | |||
Financial investments | $ 7,089 | $ 6,073 | |
Insurance operations | Non-linked shareholder-backed | Direct equities | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 8.70% | 7.30% | 5.80% |
Insurance operations | Non-linked shareholder-backed | Direct equities | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 16.90% | 16.90% | 16.90% |
Insurance operations | Non-linked shareholder-backed | Collective investment schemes | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 3.50% | 3.60% | 3.70% |
Insurance operations | Non-linked shareholder-backed | Collective investment schemes | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 10.70% | 11% | 11.30% |
Analysis of performance by se_5
Analysis of performance by segment - Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of operating segments | |||
Gross premiums earned | $ 23,344 | $ 24,217 | $ 23,495 |
Outward reinsurance premiums | (1,943) | (1,844) | (1,625) |
Earned premiums, net of reinsurance | 21,401 | 22,373 | 21,870 |
Other income | 539 | 641 | 615 |
Total revenue | 21,940 | 23,014 | 22,485 |
Interest income | 2,722 | 2,570 | 1,997 |
Dividend and other investment income | 1,658 | 1,524 | 1,297 |
Investment appreciation (depreciation) | (34,539) | (608) | 10,468 |
Total revenue, net of reinsurance | (8,219) | 26,500 | 36,247 |
Fee income on financial instruments that are not held at fair value through profit or loss | 2 | 1 | 1 |
CPL | |||
Analysis of operating segments | |||
Prudential's share of revenue | 2,948 | 3,052 | 1,866 |
Asset management business | |||
Analysis of operating segments | |||
Other income | 330 | 437 | 417 |
Operating segments after elimination of intra-group amounts, before unallocated | |||
Analysis of operating segments | |||
Gross premiums earned | 23,344 | 24,217 | 23,495 |
Outward reinsurance premiums | (1,943) | (1,844) | (1,625) |
Earned premiums, net of reinsurance | 21,401 | 22,373 | 21,870 |
Other income | 538 | 640 | 613 |
Total revenue | 21,939 | 23,013 | 22,483 |
Interest income | 2,672 | 2,569 | 1,982 |
Dividend and other investment income | 1,633 | 1,505 | 1,265 |
Investment appreciation (depreciation) | (34,534) | (591) | 10,492 |
Total revenue, net of reinsurance | (8,290) | 26,496 | 36,222 |
Operating segments after elimination of intra-group amounts, before unallocated | Hong Kong | |||
Analysis of operating segments | |||
Gross premiums earned | 8,792 | 10,032 | 11,091 |
Outward reinsurance premiums | (1,494) | (1,557) | (1,918) |
Earned premiums, net of reinsurance | 7,298 | 8,475 | 9,173 |
Other income | 65 | 52 | 59 |
Total revenue | 7,363 | 8,527 | 9,232 |
Operating segments after elimination of intra-group amounts, before unallocated | Indonesia | |||
Analysis of operating segments | |||
Gross premiums earned | 1,590 | 1,724 | 1,738 |
Outward reinsurance premiums | (34) | (43) | (62) |
Earned premiums, net of reinsurance | 1,556 | 1,681 | 1,676 |
Other income | 12 | 12 | 8 |
Total revenue | 1,568 | 1,693 | 1,684 |
Operating segments after elimination of intra-group amounts, before unallocated | Malaysia | |||
Analysis of operating segments | |||
Gross premiums earned | 1,843 | 1,900 | 1,783 |
Outward reinsurance premiums | (58) | (47) | (27) |
Earned premiums, net of reinsurance | 1,785 | 1,853 | 1,756 |
Total revenue | 1,785 | 1,853 | 1,756 |
Operating segments after elimination of intra-group amounts, before unallocated | Singapore | |||
Analysis of operating segments | |||
Gross premiums earned | 6,540 | 6,246 | 5,035 |
Outward reinsurance premiums | (299) | (137) | 432 |
Earned premiums, net of reinsurance | 6,241 | 6,109 | 5,467 |
Other income | 15 | 22 | 38 |
Total revenue | 6,256 | 6,131 | 5,505 |
Recapture of previously reinsured business | 542 | ||
Operating segments after elimination of intra-group amounts, before unallocated | Growth markets and other | |||
Analysis of operating segments | |||
Gross premiums earned | 4,579 | 4,315 | 3,848 |
Outward reinsurance premiums | (58) | (60) | (50) |
Earned premiums, net of reinsurance | 4,521 | 4,255 | 3,798 |
Other income | 116 | 117 | 91 |
Total revenue | 4,637 | 4,372 | 3,889 |
Operating segments after elimination of intra-group amounts, before unallocated | Eastspring | |||
Analysis of operating segments | |||
Other income | 330 | 437 | 417 |
Total revenue | 330 | 437 | 417 |
Operating segments | Hong Kong | |||
Analysis of operating segments | |||
Interest income | 996 | 934 | 646 |
Dividend and other investment income | 689 | 679 | 646 |
Investment appreciation (depreciation) | (23,704) | 57 | 7,493 |
Total revenue, net of reinsurance | (14,656) | 10,197 | 18,017 |
Operating segments | Indonesia | |||
Analysis of operating segments | |||
Interest income | 83 | 87 | 104 |
Dividend and other investment income | 77 | 74 | 86 |
Investment appreciation (depreciation) | (70) | 34 | (201) |
Total revenue, net of reinsurance | 1,658 | 1,888 | 1,673 |
Operating segments | Malaysia | |||
Analysis of operating segments | |||
Interest income | 217 | 220 | 210 |
Dividend and other investment income | 183 | 160 | 99 |
Investment appreciation (depreciation) | (365) | (300) | 369 |
Total revenue, net of reinsurance | 1,820 | 1,933 | 2,434 |
Operating segments | Singapore | |||
Analysis of operating segments | |||
Interest income | 744 | 707 | 447 |
Dividend and other investment income | 576 | 506 | 364 |
Investment appreciation (depreciation) | (7,498) | (29) | 2,045 |
Total revenue, net of reinsurance | 78 | 7,315 | 8,361 |
Operating segments | Growth markets and other | |||
Analysis of operating segments | |||
Interest income | 628 | 618 | 570 |
Dividend and other investment income | 107 | 86 | 65 |
Investment appreciation (depreciation) | (2,876) | (361) | 765 |
Total revenue, net of reinsurance | 2,497 | 4,716 | 5,290 |
Operating segments | Eastspring | |||
Analysis of operating segments | |||
Interest income | 4 | 3 | 5 |
Dividend and other investment income | 1 | 5 | |
Investment appreciation (depreciation) | (21) | 8 | 21 |
Total revenue, net of reinsurance | 513 | 665 | 612 |
Inter-segment elimination | |||
Analysis of operating segments | |||
Total revenue | (200) | (218) | (165) |
Total revenue, net of reinsurance | (200) | (218) | (165) |
Inter-segment elimination | Growth markets and other | |||
Analysis of operating segments | |||
Total revenue | (1) | (1) | (1) |
Inter-segment elimination | Eastspring | |||
Analysis of operating segments | |||
Total revenue | (199) | (217) | (164) |
Unallocated to a segment (central operations) | |||
Analysis of operating segments | |||
Other income | 1 | 1 | 2 |
Total revenue | 1 | 1 | 2 |
Interest income | 50 | 1 | 15 |
Dividend and other investment income | 25 | 19 | 32 |
Investment appreciation (depreciation) | (5) | (17) | (24) |
Total revenue, net of reinsurance | $ 71 | $ 4 | $ 25 |
Analysis of performance by se_6
Analysis of performance by segment - Investment return (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of operating segments | |||
Net realised (losses) on loans | $ (14) | $ (2) | |
Interest income | 2,722 | 2,570 | $ 1,997 |
Dividends | 1,531 | 1,496 | 1,257 |
Other investment returns (including foreign exchange gains and losses) | 186 | (259) | (149) |
Investment return | (30,159) | 3,486 | 13,762 |
Net realised gains and losses on investments recognised in the income statement | (9,300) | 6,000 | 4,900 |
Interest income for financial assets not at fair value through profit or loss | 362 | 280 | 257 |
Securities | |||
Analysis of operating segments | |||
Net realised and unrealised gains (losses) on investments at fair value through profit or loss | (30,097) | 624 | 9,741 |
Derivatives | |||
Analysis of operating segments | |||
Net realised and unrealised gains (losses) on investments at fair value through profit or loss | $ (4,487) | $ (943) | $ 916 |
Analysis of performance by se_7
Analysis of performance by segment - Allocation of return (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of operating segments | |||
Investment return | $ (30,159) | $ 3,486 | $ 13,762 |
Policyholder returns | |||
Analysis of operating segments | |||
Investment return | (23,861) | 3,216 | 9,933 |
Policyholder returns | Unit-linked | |||
Analysis of operating segments | |||
Investment return | (2,574) | 516 | 1,549 |
Policyholder returns | With-profits business | |||
Analysis of operating segments | |||
Investment return | (21,287) | 2,700 | 8,384 |
Shareholder returns | |||
Analysis of operating segments | |||
Investment return | $ (6,298) | $ 270 | $ 3,829 |
Analysis of performance by se_8
Analysis of performance by segment - Profit after tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Additional analysis | |||
Profit after tax from continuing operations | $ 1,007 | $ 2,214 | $ 2,468 |
Short-term fluctuations in investment returns | (1,758) | (382) | (530) |
Loss attaching to corporate transactions | 55 | (35) | (30) |
Income tax credit (charge) | (475) | (804) | (711) |
Operating segments | |||
Additional analysis | |||
Profit after tax from continuing operations | 1,661 | 3,085 | 3,375 |
Operating segments | CPL | |||
Additional analysis | |||
Profit after tax from continuing operations | (144) | 278 | 394 |
Operating segments | Hong Kong | |||
Additional analysis | |||
Profit after tax from continuing operations | (211) | 1,068 | 994 |
Operating segments | Indonesia | |||
Additional analysis | |||
Profit after tax from continuing operations | 243 | 362 | 409 |
Operating segments | Malaysia | |||
Additional analysis | |||
Profit after tax from continuing operations | 252 | 265 | 256 |
Operating segments | Singapore | |||
Additional analysis | |||
Profit after tax from continuing operations | 406 | 394 | 521 |
Operating segments | Growth markets and other | |||
Additional analysis | |||
Profit after tax from continuing operations | 881 | 434 | 548 |
Operating segments | Eastspring | |||
Additional analysis | |||
Profit after tax from continuing operations | 234 | 284 | 253 |
Unallocated to a segment (central operations) | |||
Additional analysis | |||
Profit after tax from continuing operations | (654) | (871) | (907) |
Restructuring and IFRS 17 implementation costs | (294) | (185) | (162) |
Short-term fluctuations in investment returns | 19 | (25) | 28 |
Loss attaching to corporate transactions | 62 | (35) | (30) |
Income tax credit (charge) | (4) | (21) | 0 |
Head office function | |||
Additional analysis | |||
Other income and expenditure | $ (437) | $ (605) | $ (743) |
Acquisition costs and other e_3
Acquisition costs and other expenditure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisition costs and other expenditure | |||
Acquisition costs incurred for insurance policies | $ (2,325) | $ (2,089) | $ (2,080) |
Acquisition costs deferred | 1,002 | 848 | 617 |
Amortisation of acquisition costs | (475) | (343) | (308) |
Administration costs and other expenditure (net of other reinsurance commission) | (3,100) | (3,128) | (2,433) |
Movements in amounts attributable to external unit holders of consolidated investment funds | 1,018 | 152 | (447) |
Total acquisition costs and other expenditure | $ (3,880) | $ (4,560) | $ (4,651) |
Acquisition costs and other e_4
Acquisition costs and other expenditure - Depreciation and amortisation and Interest expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisition costs and other expenditure | |||
Depreciation and amortisation | $ (980) | $ (830) | $ (725) |
Interest payable on core structural borrowings | (200) | (328) | (316) |
Operating segments | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (954) | (799) | (690) |
Interest expense | (16) | (10) | (13) |
Interest expense on lease liabilities | (7) | (10) | (13) |
Operating segments | Hong Kong | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (147) | (123) | (158) |
Interest expense | (11) | (3) | (5) |
Operating segments | Indonesia | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (61) | (51) | (34) |
Operating segments | Malaysia | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (70) | (56) | (37) |
Operating segments | Singapore | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (202) | (162) | (144) |
Operating segments | Growth markets and other | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (461) | (390) | (301) |
Operating segments | Eastspring | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (13) | (17) | (16) |
Unallocated to a segment (central operations) | |||
Acquisition costs and other expenditure | |||
Depreciation and amortisation | (26) | (31) | (35) |
Interest expense | (209) | (331) | (334) |
Interest payable on core structural borrowings | (200) | (328) | (316) |
Interest expense on other operational borrowings | (7) | 0 | (14) |
Interest expense on lease liabilities | $ (2) | $ (3) | $ (4) |
Acquisition costs and other e_5
Acquisition costs and other expenditure - Staff and employment costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) employee | |
Acquisition costs and other expenditure | |||
Average number of staff employed by the Group during the year | employee | 14,196 | 13,837 | 13,606 |
Costs of employment | |||
Wages and salaries | $ 1,018 | $ 973 | $ 917 |
Social security costs | 41 | 42 | 41 |
Defined contribution schemes | 40 | 42 | 42 |
Total costs of employment | $ 1,099 | $ 1,057 | $ 1,000 |
Discontinued US operations | |||
Acquisition costs and other expenditure | |||
Average number of staff employed by the Group during the year | employee | 3,306 | 3,650 | |
Costs of employment | |||
Wages and salaries | $ 511 | $ 619 | |
Social security costs | 22 | 26 | |
Defined contribution schemes | 29 | 34 | |
Total costs of employment | $ 562 | $ 679 | |
Continuing and discontinued operations | |||
Acquisition costs and other expenditure | |||
Average number of staff employed by the Group during the year | employee | 14,196 | 17,143 | 17,256 |
Costs of employment | |||
Wages and salaries | $ 1,484 | $ 1,536 | |
Social security costs | 64 | 67 | |
Defined contribution schemes | 71 | 76 | |
Total costs of employment | $ 1,619 | $ 1,679 | |
Asia and Africa | |||
Acquisition costs and other expenditure | |||
Average number of staff employed by the Group during the year | employee | 13,685 | 13,237 | 12,949 |
Number of commission based sales staff | employee | 744 | 440 | 502 |
Head office function | |||
Acquisition costs and other expenditure | |||
Average number of staff employed by the Group during the year | employee | 511 | 600 | 657 |
Acquisition costs and other e_6
Acquisition costs and other expenditure - Outstanding options and awards (Details) EquityInstruments in Millions | 12 Months Ended | ||
Dec. 31, 2022 EquityInstruments Options £ / shares | Dec. 31, 2021 Options EquityInstruments £ / shares | Dec. 31, 2020 Options EquityInstruments £ / shares | |
Number of options | |||
Balance at beginning of year | Options | 2,000,000 | 2,000,000 | |
Balance at end of year | Options | 1,000,000 | 2,000,000 | 2,000,000 |
Number of awards | |||
Weighted average share price | £ / shares | £ 10.33 | £ 14.31 | £ 11.64 |
SAYE options | |||
Number of options | |||
Balance at beginning of year | Options | 2,022,535 | 2,300,000 | 3,800,000 |
Granted | Options | 500,000 | 400,000 | 400,000 |
Modification | Options | 100,000 | ||
Exercised | Options | (300,000) | (700,000) | (900,000) |
Cancelled | Options | (300,000) | (100,000) | (100,000) |
Lapsed/Expired | Options | (900,000) | ||
Balance at end of year | Options | 1,858,292 | 2,022,535 | 2,300,000 |
Options immediately exercisable at end of year | Options | 300,000 | 200,000 | 500,000 |
Weighted average exercise price | |||
Balance at beginning of year | £ / shares | £ 11.61 | £ 11.86 | £ 12.38 |
Granted | £ / shares | 7.37 | 11.90 | 9.64 |
Modification | £ / shares | 11.77 | ||
Exercised | £ / shares | 11.17 | 12.58 | 11.44 |
Forfeited | £ / shares | 10.84 | 11.11 | 14.27 |
Cancelled | £ / shares | 12.67 | 11.51 | 12.55 |
Lapsed/Expired | £ / shares | 13 | 12.88 | 13.28 |
Balance at end of year | £ / shares | 10.43 | 11.61 | 11.86 |
Options immediately exercisable at end of year | £ / shares | £ 12.48 | £ 12.26 | £ 12.64 |
Incentive plans | |||
Number of awards | |||
Balance at beginning of year | EquityInstruments | 24.6 | 40.6 | 33 |
Granted | EquityInstruments | 6.5 | 5.2 | 20.2 |
Modification | EquityInstruments | 0.7 | ||
Exercised | EquityInstruments | (7.2) | (8.6) | (10.3) |
Forfeited | EquityInstruments | (1.1) | (3.1) | (1.5) |
Cancelled | EquityInstruments | (0.1) | (0.1) | (0.1) |
Lapsed/Expired | EquityInstruments | (1.7) | (0.6) | (0.7) |
Jackson awards derecognised on demerger | EquityInstruments | (9.5) | ||
Balance at end of year | EquityInstruments | 21 | 24.6 | 40.6 |
Acquisition costs and other e_7
Acquisition costs and other expenditure - Exercise price ranges for options (Details) | 12 Months Ended | |||
Dec. 31, 2022 Options £ / shares | Dec. 31, 2021 Options £ / shares | Dec. 31, 2020 Options £ / shares | Dec. 31, 2019 Options £ / shares | |
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 1,000,000 | 2,000,000 | 2,000,000 | |
SAYE options | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 1,858,292 | 2,022,535 | 2,300,000 | 3,800,000 |
Outstanding - Weighted average remaining contractual life (years) | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 4 months 24 days | |
Outstanding - Weighted average exercise prices | £ 10.43 | £ 11.61 | £ 11.86 | £ 12.38 |
Exercisable - Number exercisable | Options | 300,000 | 200,000 | 500,000 | |
Exercisable - Weighted average exercise prices | £ 12.48 | £ 12.26 | £ 12.64 | |
SAYE options | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 7.37 | 9.64 | ||
SAYE options | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 14.55 | £ 14.55 | ||
SAYE options | Between 7 and 8 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 500,000 | |||
Outstanding - Weighted average remaining contractual life (years) | 4 years 1 month 6 days | |||
Outstanding - Weighted average exercise prices | £ 7.37 | |||
SAYE options | Between 7 and 8 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 7 | |||
SAYE options | Between 7 and 8 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 8 | |||
SAYE options | Between 9 and 10 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 400,000 | 400,000 | 400,000 | |
Outstanding - Weighted average remaining contractual life (years) | 2 years 2 months 12 days | 3 years 2 months 12 days | 4 years 2 months 12 days | |
Outstanding - Weighted average exercise prices | £ 9.64 | £ 9.64 | £ 9.64 | |
SAYE options | Between 9 and 10 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 9 | 9 | 9 | |
SAYE options | Between 9 and 10 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 10 | £ 10 | £ 10 | |
SAYE options | Between 11 and 12 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 800,000 | 1,200,000 | 1,200,000 | |
Outstanding - Weighted average remaining contractual life (years) | 2 years 4 months 24 days | 2 years 8 months 12 days | 2 years 2 months 12 days | |
Outstanding - Weighted average exercise prices | £ 11.48 | £ 11.38 | £ 11.11 | |
Exercisable - Number exercisable | Options | 200,000 | 100,000 | 300,000 | |
Exercisable - Weighted average exercise prices | £ 11.12 | £ 11.04 | £ 11.11 | |
SAYE options | Between 11 and 12 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 11 | 11 | 11 | |
SAYE options | Between 11 and 12 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 12 | £ 12 | £ 12 | |
SAYE options | Between 13 and 14 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 100,000 | 200,000 | 300,000 | |
Outstanding - Weighted average remaining contractual life (years) | 1 year 4 months 24 days | 1 year 7 months 6 days | 2 years 2 months 12 days | |
Outstanding - Weighted average exercise prices | £ 13.94 | £ 13.94 | £ 13.94 | |
Exercisable - Number exercisable | Options | 100,000 | |||
Exercisable - Weighted average exercise prices | £ 13.94 | |||
SAYE options | Between 13 and 14 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 13 | 13 | 13 | |
SAYE options | Between 13 and 14 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 14 | £ 14 | £ 14 | |
SAYE options | Between 14 and 15 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 100,000 | 200,000 | 400,000 | |
Outstanding - Weighted average remaining contractual life (years) | 4 months 24 days | 1 year 4 months 24 days | 1 year 3 months 18 days | |
Outstanding - Weighted average exercise prices | £ 14.55 | £ 14.55 | £ 14.55 | |
Exercisable - Number exercisable | Options | 100,000 | 200,000 | ||
Exercisable - Weighted average exercise prices | £ 14.55 | £ 14.55 | ||
SAYE options | Between 14 and 15 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 14 | 14 | 14 | |
SAYE options | Between 14 and 15 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 15 | £ 15 | £ 15 |
Acquisition costs and other e_8
Acquisition costs and other expenditure - Fair value of options and awards (Details) | 12 Months Ended | ||
Dec. 31, 2022 GBP (£) entity Y £ / shares | Dec. 31, 2021 GBP (£) Y £ / shares | Dec. 31, 2020 GBP (£) Y £ / shares | |
Share-based payment | |||
Volatility assumption - number of competitors in basket | entity | 12 | ||
Volatility assumption - average volatility for basket of competitors (as a percent) | 26.46% | 23.62% | 41.40% |
Volatility assumption - period of correlations for basket of competitors | 3 years | ||
Prudential LTIP (TSR) | |||
Share-based payment | |||
Expected volatility (as a percent) | 33.64% | 26.69% | 41.08% |
Risk-free interest rate (as a percent) | 2.79% | 0.36% | 0.39% |
Weighted average share price at grant date | £ / shares | £ 11.15 | £ 15.11 | £ 10.49 |
Weighted average fair value at grant date | £ | £ 2.09 | £ 7.70 | £ 4.93 |
SAYE options | |||
Share-based payment | |||
Dividend yield (as a percent) | 1.11% | 0.81% | 3.45% |
Expected volatility (as a percent) | 25.68% | 22.31% | 27.55% |
Risk-free interest rate (as a percent) | 3.97% | 1.18% | 0.27% |
Expected option life (years) | Y | 4.52 | 4.50 | 3.92 |
Weighted average exercise price | £ / shares | £ 7.37 | £ 11.90 | £ 9.64 |
Weighted average share price at grant date | £ / shares | £ 9.54 | £ 14.76 | £ 10.74 |
Weighted average fair value at grant date | £ | £ 3.45 | £ 4.13 | £ 1.95 |
Other awards | |||
Share-based payment | |||
Weighted average fair value at grant date | £ | £ 11.11 | £ 14.79 | £ 10.54 |
Acquisition costs and other e_9
Acquisition costs and other expenditure - Share-based payment expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based payment expense charged to the income statement | |||
Share-based compensation expense | $ 104 | $ 100 | $ 103 |
Share-based compensation expense accounted for as equity-settled | 97 | 94 | $ 97 |
Liabilities relating to awards which are settled in cash | $ 27 | $ 32 |
Acquisition costs and other _10
Acquisition costs and other expenditure - Key management remuneration (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Key management remuneration | |||
Salaries and short-term benefits | $ 22,500,000 | $ 29,300,000 | $ 20,000,000 |
Post-employment benefits | 1,000,000 | 1,400,000 | 1,200,000 |
Share-based payments | 15,400,000 | 14,000,000 | 14,600,000 |
Payments on separation | 1,000,000 | 23,500,000 | |
Total key management remuneration | 39,900,000 | 68,200,000 | 35,800,000 |
Share-based payments in accordance with IFRS 2 | 6,700,000 | 7,500,000 | 10,700,000 |
Deferred share awards | $ 8,700,000 | 6,500,000 | $ 3,900,000 |
Kai Nargolwala | |||
Key management remuneration | |||
Amounts paid to directors who stepped down | 102,000 | ||
Fields Wicker-Miurin | |||
Key management remuneration | |||
Amounts paid to directors who stepped down | $ 203,000 |
Acquisition costs and other _11
Acquisition costs and other expenditure - Fees payable to the auditor (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fees payable to the Company's auditor and its associates for other services: | |||
Total fees payable to the auditor | $ 10.9 | $ 13.2 | $ 9.9 |
One-off non-audit services associated with demerger and public offering | 1.9 | 0.4 | |
Other audit and non-audit services | 10.9 | 11.3 | 9.5 |
One-off non-audit services associated with demerger and public offering, audit-related assurance | 0.1 | ||
One-off non-audit services associated with demerger and public offering, other assurance services required by law | 0.1 | ||
Discontinued US operations | |||
Fees payable to the Company's auditor and its associates for other services: | |||
Total fees payable to the auditor | 2.3 | 6.1 | |
Continuing and discontinued operations | |||
Fees payable to the auditor | |||
Audit of the Company's annual accounts | 2.3 | 2.4 | 2.3 |
Audit of subsidiaries pursuant to legislation | 4.4 | 5.9 | 9.2 |
Audit fees payable to the auditor | 6.7 | 8.3 | 11.5 |
Fees payable to the Company's auditor and its associates for other services: | |||
Audit-related assurance services | 3.5 | 4.5 | 3.5 |
Other assurance services | 0.7 | 1.1 | 0.7 |
Services relating to corporate finance transactions | 1.6 | 0.3 | |
Non-audit fees payable to the auditor | 4.2 | 7.2 | 4.5 |
Total fees payable to the auditor | 10.9 | 15.5 | 16 |
Audit-related assurance service fees, required by law | $ 0.9 | $ 0.6 | $ 0.7 |
Tax charge - Total tax charge b
Tax charge - Total tax charge by nature (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | $ (454) | $ (462) | $ (440) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | (21) | (342) | (271) |
Total tax charge | (475) | (804) | (711) |
Operating segments | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (450) | (441) | (440) |
Operating segments | Hong Kong | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (52) | (40) | (15) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | (56) | (79) | (60) |
Operating segments | Indonesia | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (60) | (74) | (125) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | (5) | 4 | (3) |
Operating segments | Malaysia | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (90) | (71) | (58) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | (2) | (34) | |
Operating segments | Singapore | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (78) | (67) | (87) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | 44 | (261) | (170) |
Operating segments | Growth markets and other | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (144) | (159) | (125) |
Tax charge attributable to policyholders: | |||
Total tax credit (charge) attributable to policyholders | (4) | (4) | (4) |
Operating segments | Eastspring | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (26) | (30) | (30) |
Unallocated to a segment (central operations) | |||
Tax charge attributable to shareholders: | |||
Total tax charge attributable to shareholders | (4) | (21) | |
Tax charge attributable to policyholders: | |||
Total tax charge | $ (4) | $ (21) | $ 0 |
Tax charge - Components (Detail
Tax charge - Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense: | |||
Corporation tax | $ (474) | $ (405) | $ (376) |
Adjustments in respect of prior years | (7) | 6 | (7) |
Total current tax charge | (481) | (399) | (383) |
Deferred tax arising from: | |||
Origination and reversal of temporary differences | 4 | (388) | (306) |
Impact of changes in local statutory tax rates | (1) | ||
Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year | 2 | (17) | (21) |
Total deferred tax credit (charge) | 6 | (405) | (328) |
Total tax charge | $ (475) | $ (804) | $ (711) |
Tax charge - Reconciliation of
Tax charge - Reconciliation of shareholder effective tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of effective tax rate | |||
Adjusted operating profit | $ 3,375 | $ 3,233 | $ 2,757 |
Non-operating (loss) profit | (1,914) | (557) | 151 |
Profit before tax | 1,461 | 2,676 | 2,908 |
Tax charge at the expected rate | $ (287) | $ (539) | $ (602) |
Tax charge at the expected rate, percentage impact on ETR | 20% | 20% | 21% |
Effects of recurring tax reconciliation items: | |||
Income not taxable or taxable at concessionary rates | $ 61 | $ 63 | $ 102 |
Income not taxable or taxable at concessionary rates, percentage impact on ETR | (4.00%) | (2.00%) | (4.00%) |
Deductions and losses not allowable for tax purposes | $ (196) | $ (92) | $ (32) |
Deductions and losses not allowable for tax purposes, percentage impact on ETR | 13% | 3% | 1% |
Items related to taxation of life insurance businesses | $ 108 | $ 177 | $ 152 |
Items related to taxation of life insurance businesses, percentage impact on ETR | (7.00%) | (7.00%) | (5.00%) |
Deferred tax adjustments, including unrecognised tax losses | $ (45) | $ (111) | $ (172) |
Deferred tax adjustments including unrecognised tax losses, percentage impact on ETR | 3% | 4% | 6% |
Effect of results of joint ventures and associates | $ 3 | $ 80 | $ 129 |
Effect of results of joint ventures and associates, percentage impact on ETR | 0% | (3.00%) | (4.00%) |
Irrecoverable withholding taxes | $ (55) | $ (60) | $ (35) |
Irrecoverable withholding taxes, percentage impact on ETR | 4% | 2% | 1% |
Other | $ (15) | $ (8) | $ 17 |
Other, percentage impact on ETR | 0% | 1% | (1.00%) |
Total effects of recurring tax reconciliation items | $ (139) | $ 49 | $ 161 |
Total tax rate, Effects of recurring tax reconciliation items, percentage impact on ETR | 9% | (2.00%) | (6.00%) |
Effects of non-recurring tax reconciliation items: | |||
Adjustments to tax charge in relation to prior years | $ 1 | $ (11) | $ (25) |
Adjustments to tax charge in relation to prior years, percentage impact on ETR | 0% | 0% | 1% |
Movements in provisions for open tax matters | $ (40) | $ 47 | $ 33 |
Movements in provisions for open tax matters, percentage impact on ETR | 3% | (2.00%) | (1.00%) |
Impact of changes in local statutory tax rates | $ 6 | $ (1) | |
Impact of changes in local statutory tax rates, percentage impact on ETR | 0% | 0% | 0% |
Adjustments in relation to business disposals and corporate transactions | $ 11 | $ (14) | $ (6) |
Adjustments in relation to business disposals and corporate transactions, percentage impact on ETR | (1.00%) | 1% | 0% |
Total effects of non-recurring tax reconciliation items | $ (28) | $ 28 | $ 1 |
Total tax rate, Effects of non-recurring tax reconciliation items, percentage impact on ETR | 2% | (1.00%) | 0% |
Total tax charge attributable to shareholders | $ (454) | $ (462) | $ (440) |
Total actual tax charge (credit), attributable to shareholders, percentage impact on ETR | 31% | 17% | 15% |
Analysed into: | |||
Tax charge on adjusted operating profit | $ (614) | $ (548) | $ (497) |
Tax credit on non-operating result | $ 160 | $ 86 | $ 57 |
Actual tax rate on: | |||
Adjusted operating profit (loss), Including non-recurring tax reconciling items (as a percent) | 18% | 17% | 18% |
Adjusted operating profit (loss), excluding non-recurring tax reconciling items (as a percent) | 17% | 18% | 18% |
Total profit (loss) (as a percent) | 31% | 17% | 15% |
Hong Kong | |||
Notes | |||
Applicable tax rate | 5% |
Tax charge - Provision for open
Tax charge - Provision for open tax matters (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Movements in provisions for open tax matters | |
Provision for open tax matters at beginning of period | $ (42) |
Movements in the current period included in tax charge attributable to shareholders | (40) |
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) | 3 |
Provision for open tax matters at end of period | $ (79) |
Tax charge - 2022 and 2021 actu
Tax charge - 2022 and 2021 actual tax rate of relevant business operations (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax charge | |||
Tax rate on adjusted operating profit | 18% | 17% | 18% |
Tax rate on profit before tax | 31% | 17% | 15% |
Hong Kong | |||
Tax charge | |||
Tax rate on adjusted operating profit | 6% | 5% | 3% |
Tax rate on profit before tax | (33.00%) | 4% | 1% |
Indonesia | |||
Tax charge | |||
Tax rate on adjusted operating profit | 20% | 17% | 24% |
Tax rate on profit before tax | 20% | 17% | 23% |
Malaysia | |||
Tax charge | |||
Tax rate on adjusted operating profit | 26% | 21% | 18% |
Tax rate on profit before tax | 26% | 21% | 18% |
Singapore | |||
Tax charge | |||
Tax rate on adjusted operating profit | 16% | 15% | 14% |
Tax rate on profit before tax | 16% | 15% | 14% |
Growth markets and other | |||
Tax charge | |||
Tax rate on adjusted operating profit | 24% | 22% | 22% |
Tax rate on profit before tax | 14% | 27% | 19% |
Eastspring | |||
Tax charge | |||
Tax rate on adjusted operating profit | 10% | 10% | 11% |
Tax rate on profit before tax | 10% | 10% | 11% |
Other operations | |||
Tax charge | |||
Tax rate on adjusted operating profit | (1.00%) | (3.00%) | 0% |
Tax rate on profit before tax | (1.00%) | (2.00%) | 0% |
Earnings per share - Calculatio
Earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Before tax | ||||
Based on profit from continuing operations | $ 1,461 | $ 2,676 | $ 2,908 | |
Short-term fluctuations in investment returns on shareholder-backed business | 1,915 | 458 | 579 | |
Amortisation of acquisition accounting adjustments | 10 | 5 | 5 | |
Loss (gain) attaching to corporate transactions | (11) | 94 | (735) | |
Adjusted operating profit | 3,375 | 3,233 | 2,757 | |
Tax | ||||
Based on profit from continuing operations | (454) | (462) | (440) | |
Short-term fluctuations in investment returns on shareholder-backed business | (155) | (81) | (49) | |
Loss (gain) attaching to corporate transactions | (5) | (5) | (8) | |
Based on adjusted operating profit | (614) | (548) | (497) | |
Non-controlling interests | ||||
Based on profit from continuing operations | (9) | (22) | (10) | |
Short-term fluctuations in investment returns on shareholder-backed business | (2) | 5 | ||
Based on adjusted operating profit | (11) | (17) | (10) | |
Net of tax and non-controlling interests | ||||
Profit (loss) attributable to equity holders of the company | 998 | (2,042) | 2,118 | |
Loss from discontinued operations | 4,234 | 340 | ||
Profit from continuing operations | 998 | 2,192 | 2,458 | |
Short-term fluctuations in investment returns on shareholder-backed business | 1,758 | 382 | 530 | |
Amortisation of acquisition accounting adjustments | 10 | 5 | 5 | |
Loss (gain) attaching to corporate transactions | (16) | 89 | (743) | |
Based on adjusted operating profit | $ 2,750 | $ 2,668 | $ 2,250 | |
Basic | ||||
Profit/loss (in USD per share) | $ 0.365 | $ (0.777) | $ 0.816 | |
Loss from discontinued operations (in USD per share) | [1] | 1.611 | 0.130 | |
Profit from continuing operations (in USD per share) | 0.365 | 0.834 | 0.946 | |
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.643 | 0.145 | 0.204 | |
Amortisation of acquisition accounting adjustments (in USD per share) | 0.004 | 0.002 | 0.002 | |
Loss (gain) attaching to corporate transactions | (0.007) | 0.034 | (0.286) | |
Adjusted operating profit (in USD per share) | 1.005 | 1.015 | 0.866 | |
Diluted | ||||
Profit/loss (in USD per share) | 0.365 | (0.777) | 0.816 | |
Loss from discontinued operations (in USD per share) | [1] | 1.611 | 0.130 | |
Profit from continuing operations (in USD per share) | 0.365 | 0.834 | 0.946 | |
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.643 | 0.145 | 0.204 | |
Amortisation of acquisition accounting adjustments (in USD per share) | 0.004 | 0.002 | 0.002 | |
Loss (gain) attaching to corporate transactions | (0.007) | 0.034 | (0.286) | |
Adjusted operating profit (in USD per share) | $ 1.005 | $ 1.015 | $ 0.866 | |
[1] Discontinued operations for 2021 and 2020 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Earnings per share - Weighted a
Earnings per share - Weighted average shares (Details) shares in Millions, Options in Millions | 12 Months Ended | ||
Dec. 31, 2022 Options shares | Dec. 31, 2021 Options shares | Dec. 31, 2020 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 | 2,628 | 2,597 |
Shares under option at end of year | Options | 1 | 2 | 2 |
Shares that would have been issued at fair value on assumed option price at end of year | (1) | (2) | (2) |
Weighted average number of shares for calculation of diluted earnings per share | 2,736 | 2,628 | 2,597 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 13, 2021 | |
Dividends relating to reporting period: | ||||
First interim dividend (in USD per share) | $ 0.0574 | $ 0.0537 | $ 0.0537 | |
Second interim dividend (in USD per share) | 0.1304 | 0.1186 | 0.1073 | |
Total (in USD per share) | $ 0.1878 | $ 0.1723 | $ 0.1610 | |
First interim dividend | $ 154 | $ 140 | $ 140 | |
Second interim dividend | 359 | 326 | 280 | |
Total | $ 513 | $ 466 | $ 420 | |
Dividends paid in reporting period: | ||||
First interim dividend (in USD per share) | $ 0.0574 | $ 0.0537 | $ 0.0537 | |
Second interim dividend for prior year (in USD per share) | 0.1186 | 0.1073 | 0.2597 | |
Total (in USD per share) | $ 0.1760 | $ 0.1610 | $ 0.3134 | |
Current year first interim dividend | $ 154 | $ 138 | $ 140 | |
Second interim dividend for prior year | 320 | 283 | 674 | |
Total | $ 474 | $ 421 | $ 814 | |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of operating segments | |||||
Sovereign debt | $ 38,051 | $ 50,811 | |||
Other government bonds | 4,034 | 3,875 | |||
Corporate bonds | 34,534 | 44,157 | |||
Asset-backed securities | 370 | 251 | |||
Total debt securities | [1] | 76,989 | 99,094 | ||
Loans | 2,536 | 2,562 | |||
Equity securities and holdings in collective investment schemes | [1] | 57,679 | 61,601 | ||
Other financial investments | 6,844 | 5,222 | |||
Total financial investments | 144,048 | 168,479 | |||
Assets | |||||
Investment properties | 37 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 1,915 | 2,183 | |||
Cash and cash equivalents | 5,514 | 7,170 | |||
Reinsurers' share of insurance contract liabilities | 2,807 | 9,753 | |||
Other assets | 11,621 | 11,479 | |||
Total assets | 165,942 | 199,102 | |||
Shareholders' equity | 16,960 | 17,088 | |||
Non-controlling interests | 167 | 176 | |||
Total equity | 17,127 | 17,264 | $ 22,119 | $ 19,669 | |
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 125,758 | 157,299 | |||
Core structural borrowings | 4,261 | 6,127 | |||
Operational borrowings | 815 | 861 | |||
Other liabilities | 17,981 | 17,551 | |||
Total liabilities | 148,815 | 181,838 | |||
Total equity and liabilities | 165,942 | 199,102 | |||
Within one year | |||||
Analysis of operating segments | |||||
Total financial investments | 68,955 | 71,524 | |||
Indonesia | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,557 | 1,632 | |||
Singapore | |||||
Analysis of operating segments | |||||
Sovereign debt | 4,731 | 5,428 | |||
Thailand | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,456 | 1,580 | |||
United Kingdom | |||||
Analysis of operating segments | |||||
Sovereign debt | 4 | 233 | |||
United States | |||||
Analysis of operating segments | |||||
Sovereign debt | 21,891 | 32,124 | |||
Vietnam | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,410 | 3,042 | |||
Other (predominantly Asia) | |||||
Analysis of operating segments | |||||
Sovereign debt | 6,002 | 6,772 | |||
AAA | |||||
Analysis of operating segments | |||||
Other government bonds | 1,673 | 1,804 | |||
Corporate bonds | 1,539 | 1,869 | |||
Asset-backed securities | 299 | 168 | |||
AA+ to AA- | |||||
Analysis of operating segments | |||||
Other government bonds | 153 | 59 | |||
Corporate bonds | 3,892 | 4,420 | |||
Asset-backed securities | 10 | 11 | |||
A+ to A- | |||||
Analysis of operating segments | |||||
Other government bonds | 1,133 | 1,090 | |||
Corporate bonds | 12,102 | 15,015 | |||
Asset-backed securities | 34 | 43 | |||
BBB+ to BBB- | |||||
Analysis of operating segments | |||||
Other government bonds | 503 | 253 | |||
Corporate bonds | 13,185 | 16,339 | |||
Asset-backed securities | 23 | 24 | |||
Below BBB- and unrated | |||||
Analysis of operating segments | |||||
Other government bonds | 572 | 669 | |||
Corporate bonds | 3,816 | 6,514 | |||
Asset-backed securities | 4 | 5 | |||
Unrated | |||||
Analysis of operating segments | |||||
Securities excluding sovereign debt | 1,152 | 1,130 | |||
Mortgage loans | |||||
Analysis of operating segments | |||||
Loans | 140 | 150 | |||
Policy loans | |||||
Analysis of operating segments | |||||
Loans | 1,920 | 1,733 | |||
Other loans | |||||
Analysis of operating segments | |||||
Loans | 476 | 679 | |||
Direct equities | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 26,908 | 26,155 | |||
Collective investment schemes | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 30,771 | 35,446 | |||
Insurance operations | |||||
Assets | |||||
Shareholders' equity | 14,407 | 14,289 | |||
Operating segments | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 38,051 | 50,585 | |||
Other government bonds | 4,034 | 3,875 | |||
Corporate bonds | 34,534 | 44,157 | |||
Asset-backed securities | 370 | 251 | |||
Total debt securities | 76,989 | 98,868 | |||
Loans | 2,536 | 2,562 | |||
Equity securities and holdings in collective investment schemes | 57,411 | 60,916 | |||
Other financial investments | 5,095 | 4,134 | |||
Total financial investments | 142,031 | 166,480 | |||
Assets | |||||
Investment properties | 37 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 1,915 | 2,183 | |||
Cash and cash equivalents | 3,705 | 3,441 | |||
Reinsurers' share of insurance contract liabilities | 2,807 | 9,753 | |||
Other assets | 11,621 | 11,249 | |||
Total assets | 162,116 | 193,144 | |||
Shareholders' equity | 15,465 | 15,409 | |||
Non-controlling interests | 167 | 176 | |||
Total equity | 15,632 | 15,585 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 125,758 | 157,299 | |||
Operational borrowings | 219 | 266 | |||
Other liabilities | 20,507 | 19,994 | |||
Total liabilities | 146,484 | 177,559 | |||
Total equity and liabilities | 162,116 | 193,144 | |||
Operating segments | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,557 | 1,632 | |||
Operating segments | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 4,731 | 5,428 | |||
Operating segments | Thailand | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,456 | 1,580 | |||
Operating segments | United Kingdom | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 4 | 7 | |||
Operating segments | United States | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 21,891 | 32,124 | |||
Operating segments | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,410 | 3,042 | |||
Operating segments | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 6,002 | 6,772 | |||
Operating segments | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,673 | 1,804 | |||
Corporate bonds | 1,539 | 1,869 | |||
Asset-backed securities | 299 | 168 | |||
Operating segments | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 153 | 59 | |||
Corporate bonds | 3,892 | 4,420 | |||
Asset-backed securities | 10 | 11 | |||
Operating segments | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,133 | 1,090 | |||
Corporate bonds | 12,102 | 15,015 | |||
Asset-backed securities | 34 | 43 | |||
Operating segments | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 503 | 253 | |||
Corporate bonds | 13,185 | 16,339 | |||
Asset-backed securities | 23 | 24 | |||
Operating segments | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 572 | 669 | |||
Corporate bonds | 3,816 | 6,514 | |||
Asset-backed securities | 4 | 5 | |||
Operating segments | Mortgage loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 140 | 150 | |||
Operating segments | Policy loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 1,920 | 1,733 | |||
Operating segments | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 476 | 679 | |||
Operating segments | Direct equities | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 26,642 | 25,472 | |||
Operating segments | Collective investment schemes | Asia and Africa | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 30,769 | 35,444 | |||
Operations within segments | Insurance operations | With-profits business | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 25,747 | 34,680 | |||
Other government bonds | 2,850 | 2,509 | |||
Corporate bonds | 20,152 | 26,003 | |||
Asset-backed securities | 210 | 137 | |||
Total debt securities | 48,959 | 63,329 | |||
Loans | 1,970 | 2,033 | |||
Equity securities and holdings in collective investment schemes | 32,120 | 34,240 | |||
Other financial investments | 1,793 | 1,561 | |||
Total financial investments | 84,842 | 101,163 | |||
Assets | |||||
Cash and cash equivalents | 1,038 | 905 | |||
Reinsurers' share of insurance contract liabilities | 145 | 225 | |||
Other assets | 1,156 | 1,184 | |||
Total assets | 87,181 | 103,477 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 77,687 | 94,002 | |||
Operational borrowings | 118 | 142 | |||
Other liabilities | 9,376 | 9,333 | |||
Total liabilities | 87,181 | 103,477 | |||
Total equity and liabilities | 87,181 | 103,477 | |||
Operations within segments | Insurance operations | With-profits business | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 482 | 414 | |||
Operations within segments | Insurance operations | With-profits business | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3,240 | 3,684 | |||
Operations within segments | Insurance operations | With-profits business | United States | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 19,983 | 28,552 | |||
Operations within segments | Insurance operations | With-profits business | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1 | ||||
Operations within segments | Insurance operations | With-profits business | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,041 | 2,030 | |||
Operations within segments | Insurance operations | With-profits business | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 1,480 | 1,472 | |||
Corporate bonds | 996 | 1,222 | |||
Asset-backed securities | 168 | 88 | |||
Operations within segments | Insurance operations | With-profits business | AA+ to AA- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 105 | 45 | |||
Corporate bonds | 1,951 | 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 | 746 | 667 | |||
Corporate bonds | 7,230 | 9,046 | |||
Asset-backed securities | 20 | 26 | |||
Operations within segments | Insurance operations | With-profits business | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 292 | 121 | |||
Corporate bonds | 7,885 | 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 | 227 | 204 | |||
Corporate bonds | 2,090 | 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 | 1,498 | 1,365 | |||
Operations within segments | Insurance operations | With-profits business | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 472 | 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 | 13,063 | 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 | 19,057 | 23,950 | |||
Operations within segments | Insurance operations | Unit-linked | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,812 | 1,942 | |||
Other government bonds | 344 | 238 | |||
Corporate bonds | 2,859 | 3,659 | |||
Asset-backed securities | 7 | 9 | |||
Total debt securities | 5,022 | 5,848 | |||
Equity securities and holdings in collective investment schemes | 18,139 | 20,516 | |||
Other financial investments | 379 | 149 | |||
Total financial investments | 23,540 | 26,513 | |||
Assets | |||||
Cash and cash equivalents | 749 | 911 | |||
Other assets | 154 | 166 | |||
Total assets | 24,443 | 27,590 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 22,842 | 25,651 | |||
Other liabilities | 1,601 | 1,939 | |||
Total liabilities | 24,443 | 27,590 | |||
Total equity and liabilities | 24,443 | 27,590 | |||
Operations within segments | Insurance operations | Unit-linked | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 589 | 598 | |||
Operations within segments | Insurance operations | Unit-linked | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 507 | 550 | |||
Operations within segments | Insurance operations | Unit-linked | United Kingdom | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 4 | 7 | |||
Operations within segments | Insurance operations | Unit-linked | United States | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 54 | 47 | |||
Operations within segments | Insurance operations | Unit-linked | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 12 | 20 | |||
Operations within segments | Insurance operations | Unit-linked | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 646 | 720 | |||
Operations within segments | Insurance operations | Unit-linked | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 85 | 86 | |||
Corporate bonds | 181 | 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 | 21 | 2 | |||
Corporate bonds | 385 | 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 | 139 | 119 | |||
Corporate bonds | 524 | 675 | |||
Operations within segments | Insurance operations | Unit-linked | BBB+ to BBB- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 77 | 16 | |||
Corporate bonds | 1,325 | 1,711 | |||
Operations within segments | Insurance operations | Unit-linked | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 22 | 15 | |||
Corporate bonds | 444 | 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 | 11,379 | 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 | 6,760 | 7,704 | |||
Operations within segments | Insurance operations | Other business | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 10,395 | 13,802 | |||
Other government bonds | 840 | 1,128 | |||
Corporate bonds | 11,522 | 14,495 | |||
Asset-backed securities | 153 | 105 | |||
Total debt securities | 22,910 | 29,530 | |||
Loans | 566 | 529 | |||
Equity securities and holdings in collective investment schemes | 7,089 | 6,073 | |||
Other financial investments | 2,816 | 2,318 | |||
Total financial investments | 33,381 | 38,450 | |||
Assets | |||||
Investment properties | 37 | 38 | |||
Investments in joint ventures and associates accounted for using the equity method | 1,601 | 1,878 | |||
Cash and cash equivalents | 1,791 | 1,444 | |||
Reinsurers' share of insurance contract liabilities | 2,662 | 9,528 | |||
Other assets | 9,665 | 9,191 | |||
Total assets | 49,137 | 60,529 | |||
Shareholders' equity | 14,407 | 14,289 | |||
Non-controlling interests | 43 | 45 | |||
Total equity | 14,450 | 14,334 | |||
Liabilities | |||||
Contract liabilities and unallocated surplus of with-profits funds | 25,229 | 37,646 | |||
Operational borrowings | 86 | 106 | |||
Other liabilities | 9,372 | 8,443 | |||
Total liabilities | 34,687 | 46,195 | |||
Total equity and liabilities | 49,137 | 60,529 | |||
Operations within segments | Insurance operations | Other business | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 483 | 609 | |||
Operations within segments | Insurance operations | Other business | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 917 | 1,068 | |||
Operations within segments | Insurance operations | Other business | Thailand | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,456 | 1,577 | |||
Operations within segments | Insurance operations | Other business | United States | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 1,854 | 3,525 | |||
Operations within segments | Insurance operations | Other business | Vietnam | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 2,397 | 3,022 | |||
Operations within segments | Insurance operations | Other business | Other (predominantly Asia) | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3,288 | 4,001 | |||
Operations within segments | Insurance operations | Other business | AAA | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 108 | 246 | |||
Corporate bonds | 362 | 411 | |||
Asset-backed securities | 126 | 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 | 1,556 | 1,858 | |||
Asset-backed securities | 3 | 4 | |||
Operations within segments | Insurance operations | Other business | A+ to A- | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 248 | 304 | |||
Corporate bonds | 4,348 | 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 | 134 | 116 | |||
Corporate bonds | 3,974 | 5,105 | |||
Asset-backed securities | 9 | 9 | |||
Operations within segments | Insurance operations | Other business | Below BBB- and unrated | Asia and Africa | |||||
Analysis of operating segments | |||||
Other government bonds | 323 | 450 | |||
Corporate bonds | 1,282 | 1,827 | |||
Asset-backed securities | 1 | 1 | |||
Operations within segments | Insurance operations | Other business | Mortgage loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 140 | 150 | |||
Operations within segments | Insurance operations | Other business | Policy loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 422 | 368 | |||
Operations within segments | Insurance operations | Other business | Other loans | Asia and Africa | |||||
Analysis of operating segments | |||||
Loans | 4 | 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 | 2,139 | 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 | 4,950 | 3,787 | |||
Operations within segments | Eastspring | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 97 | 161 | |||
Corporate bonds | 1 | ||||
Total debt securities | 98 | 161 | |||
Equity securities and holdings in collective investment schemes | 63 | 87 | |||
Other financial investments | 107 | 106 | |||
Total financial investments | 268 | 354 | |||
Assets | |||||
Investments in joint ventures and associates accounted for using the equity method | 314 | 305 | |||
Cash and cash equivalents | 127 | 181 | |||
Other assets | 713 | 759 | |||
Total assets | 1,422 | 1,599 | |||
Shareholders' equity | 1,058 | 1,120 | |||
Non-controlling interests | 124 | 131 | |||
Total equity | 1,182 | 1,251 | |||
Liabilities | |||||
Operational borrowings | 15 | 18 | |||
Other liabilities | 225 | 330 | |||
Total liabilities | 240 | 348 | |||
Total equity and liabilities | 1,422 | 1,599 | |||
Operations within segments | Eastspring | Indonesia | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 3 | 11 | |||
Operations within segments | Eastspring | Singapore | Asia and Africa | |||||
Analysis of operating segments | |||||
Sovereign debt | 67 | 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 | 61 | 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 | (67) | (51) | |||
Total assets | (67) | (51) | |||
Liabilities | |||||
Other liabilities | (67) | (51) | |||
Total liabilities | (67) | (51) | |||
Total equity and liabilities | (67) | (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 | 268 | 685 | |||
Other financial investments | 1,749 | 1,088 | |||
Total financial investments | 2,017 | 1,999 | |||
Assets | |||||
Cash and cash equivalents | 1,809 | 3,729 | |||
Other assets | 3,409 | 3,608 | |||
Total assets | 7,235 | 9,336 | |||
Shareholders' equity | 1,495 | 1,679 | |||
Total equity | 1,495 | 1,679 | |||
Liabilities | |||||
Core structural borrowings | 4,261 | 6,127 | |||
Operational borrowings | 596 | 595 | |||
Other liabilities | 883 | 935 | |||
Total liabilities | 5,740 | 7,657 | |||
Total equity and liabilities | 7,235 | 9,336 | |||
Unallocated to a segment (central operations) | United Kingdom | |||||
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 | 266 | 683 | |||
Unallocated to a segment (central operations) | Collective investment schemes | |||||
Analysis of operating segments | |||||
Equity securities and holdings in collective investment schemes | 2 | 2 | |||
Elimination of inter-group debtors and creditors | |||||
Assets | |||||
Other assets | (3,409) | (3,378) | |||
Total assets | (3,409) | (3,378) | |||
Liabilities | |||||
Other liabilities | (3,409) | (3,378) | |||
Total liabilities | (3,409) | (3,378) | |||
Total equity and liabilities | $ (3,409) | $ (3,378) | |||
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2022 are $ 1,571 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 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial investments | |||
Debt securities | [1] | $ 76,989 | $ 99,094 |
Consolidated investment funds | Operating segments | |||
Financial investments | |||
Debt securities | $ 11,899 | $ 15,076 | |
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2022 are $ 1,571 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 - Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | ||
Cash | $ 1,878 | $ 1,902 |
Cash equivalents | 3,636 | 5,268 |
Cash and cash equivalents | 5,514 | 7,170 |
Held by the Group's holding and non-regulated entities and available for general use | 1,809 | 3,729 |
Other funds not available for general use by the Group, including funds held for the benefit of policyholders | $ 3,705 | $ 3,441 |
USD | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 45% | 59% |
GBP | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 11% | 7% |
HKD | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 5% | 3% |
SGD | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 5% | 3% |
MYR | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 14% | 9% |
Other currencies | ||
Cash and cash equivalents | ||
Percentage of cash and cash equivalents held in respective currencies | 20% | 19% |
Group assets and liabilities _6
Group assets and liabilities by business type - Accrued investment income and other debtors (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other assets | ||
Interest receivable | $ 885 | $ 872 |
Other accrued income | 250 | 299 |
Total accrued investment income | 1,135 | 1,171 |
Other debtors comprises: | ||
Amounts due from Reinsurers | 192 | 226 |
Other sundry debtors | 858 | 863 |
Total other debtors | 1,694 | 1,779 |
Total accrued investment income and other debtors | 2,829 | 2,950 |
Analysed as: | ||
Expected to be settled within one year | 2,700 | 2,761 |
Expected to be settled beyond one year | 129 | 189 |
Policyholders | ||
Other debtors comprises: | ||
Amounts due from Policyholders and Intermediaries | $ 644 | 686 |
Intermediaries | ||
Other debtors comprises: | ||
Amounts due from Policyholders and Intermediaries | $ 4 |
Group assets and liabilities _7
Group assets and liabilities by business type - Accruals, deferred income and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Group assets and liabilities by business type | ||
Accruals and deferred income | $ 539 | $ 565 |
Creditors arising from direct insurance and reinsurance operations | 3,000 | 1,120 |
Interest payable | 59 | 77 |
Funds withheld under reinsurance agreements | 2,040 | 1,545 |
Other creditors | 3,139 | 4,676 |
Total accruals, deferred income and other creditors | $ 8,777 | $ 7,983 |
Fair value measurement - Carrie
Fair value measurement - Carried at fair value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | |||
Financial assets classified as available-for-sale | $ 266 | $ 909 | |
Jackson | |||
Financial instruments | |||
Financial assets classified as available-for-sale | 266 | 683 | |
At fair value | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 134,686 | $ 161,535 | |
Percentage of total (%) | 100% | 100% | |
Total financial instruments at fair value | $ 129,752 | $ 155,057 | |
Percentage of total (%) | 100% | 100% | |
At fair value | Loans | |||
Financial instruments | |||
Financial assets | $ 450 | $ 621 | |
At fair value | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 57,679 | 61,601 | |
At fair value | Debt securities | |||
Financial instruments | |||
Financial assets | 76,989 | 99,094 | |
At fair value | Derivative assets | |||
Financial instruments | |||
Financial assets | 569 | 481 | |
At fair value | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (1,001) | (262) | |
At fair value | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (4,934) | (6,478) | |
At fair value | Investment contract liabilities without discretionary participation features | |||
Financial instruments | |||
Financial liabilities | (741) | (814) | |
At fair value | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (4,193) | (5,664) | |
At fair value | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 81,233 | 98,433 | |
At fair value | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 23,174 | 26,372 | |
At fair value | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 30,279 | 36,730 | |
At fair value | Level 1 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 106,244 | $ 130,369 | |
Percentage of total (%) | 78% | 81% | |
Total financial instruments at fair value | $ 102,051 | $ 124,751 | |
Percentage of total (%) | 78% | 81% | |
At fair value | Level 1 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | $ 49,725 | $ 54,107 | |
At fair value | Level 1 | Debt securities | |||
Financial instruments | |||
Financial assets | 57,215 | 76,049 | |
At fair value | Level 1 | Derivative assets | |||
Financial instruments | |||
Financial assets | 82 | 359 | |
At fair value | Level 1 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (778) | (146) | |
At fair value | Level 1 | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (4,193) | (5,618) | |
At fair value | Level 1 | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (4,193) | (5,618) | |
At fair value | Level 1 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 65,880 | 82,489 | |
At fair value | Level 1 | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 21,319 | 24,024 | |
At fair value | Level 1 | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 19,045 | 23,856 | |
At fair value | Level 2 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 27,577 | $ 30,526 | |
Percentage of total (%) | 21% | 19% | |
Total financial instruments at fair value | $ 26,836 | $ 29,666 | |
Percentage of total (%) | 21% | 19% | |
At fair value | Level 2 | Loans | |||
Financial instruments | |||
Financial assets | $ 447 | $ 616 | |
At fair value | Level 2 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 7,130 | 6,917 | |
At fair value | Level 2 | Debt securities | |||
Financial instruments | |||
Financial assets | 19,736 | 22,987 | |
At fair value | Level 2 | Debt securities | Internal valuation | |||
Financial instruments | |||
Financial assets | 37 | 24 | |
At fair value | Level 2 | Derivative assets | |||
Financial instruments | |||
Financial assets | 487 | 122 | |
At fair value | Level 2 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (223) | (116) | |
At fair value | Level 2 | Other financial liabilities at fair value | |||
Financial instruments | |||
Financial liabilities | (741) | (860) | |
At fair value | Level 2 | Investment contract liabilities without discretionary participation features | |||
Financial instruments | |||
Financial liabilities | (741) | (814) | |
At fair value | Level 2 | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (46) | ||
At fair value | Level 2 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 14,605 | 15,438 | |
At fair value | Level 2 | Unit-linked and variable annuity separate account | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 1,851 | 2,343 | |
At fair value | Level 2 | Non-linked shareholder-backed | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 11,121 | 12,745 | |
At fair value | Level 3 | |||
Financial instruments | |||
Financial assets | 865 | 640 | $ 484 |
Total financial investments, net of derivative liabilities | $ 865 | $ 640 | |
Percentage of total (%) | 1% | 0% | |
Total financial instruments at fair value | $ 865 | $ 640 | |
Percentage of total (%) | 1% | 0% | |
At fair value | Level 3 | Loans | |||
Financial instruments | |||
Financial assets | $ 3 | $ 5 | 6 |
At fair value | Level 3 | Equity securities and holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 824 | 577 | 445 |
Total financial instruments at fair value | 824 | 557 | |
At fair value | Level 3 | Debt securities | |||
Financial instruments | |||
Financial assets | 38 | 58 | $ 33 |
At fair value | Level 3 | With-profits business | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 748 | 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 | 113 | 129 | |
Total financial instruments at fair value | $ 113 | $ 129 |
Fair value measurement - Valuat
Fair value measurement - Valuation approach for level 3 (Details) - At fair value - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Net financial instruments at fair value | $ 129,752 | $ 155,057 |
Level 3 | ||
Financial instruments | ||
Net financial instruments at fair value | $ 865 | $ 640 |
Percentage using valuation method | 1% | 1% |
Level 3 | With-profits and unit-linked funds | ||
Financial instruments | ||
Net financial instruments at fair value | $ 752 | $ 511 |
Level 3 | Non-linked shareholder-backed | ||
Financial instruments | ||
Net financial instruments at fair value | $ 113 | $ 129 |
Reasonably possible decrease in valuation (as a percent) | (10.00%) | (10.00%) |
Amount of reasonably possible decrease in valuation | $ (11) | $ (13) |
Level 3 | Non-linked shareholder-backed | External valuation | ||
Financial instruments | ||
Net financial instruments at fair value | 111 | 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 | $ 824 | $ 557 |
Level 3 | Other sundry individual financial investments | ||
Financial instruments | ||
Net financial instruments at fair value | $ 41 | $ 63 |
Fair value measurement - Transf
Fair value measurement - Transfers between levels (Details) - At fair value - Equity and debt securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial instruments | ||
Transfers from level 1 to level 2 | $ 2,640 | $ 3,789 |
Transfers from level 2 to level 1 | 1,982 | 1,742 |
Transfers into level 3 | 0 | 30 |
Level 2 | ||
Financial instruments | ||
Transfers out of level 3 | $ 15 | $ 12 |
Fair value measurement - Level
Fair value measurement - Level 3 financial instruments (Details) - At fair value - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | $ 621 | |
Assets at end of year | 450 | $ 621 |
Equity securities and holdings in collective investment schemes | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 61,601 | |
Assets at end of year | 57,679 | 61,601 |
Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 99,094 | |
Assets at end of year | 76,989 | 99,094 |
Level 3 | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 640 | 484 |
Total (losses) gains in income statement | (35) | 2 |
Total losses recorded in other comprehensive income | (9) | (7) |
Purchases and other additions | 305 | 143 |
Sales | (21) | |
Transfers (out of) into level 3 | (15) | 18 |
Assets at end of year | 865 | 640 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (12) | 2 |
Level 3 | Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 5 | 6 |
Total (losses) gains in income statement | (2) | (1) |
Assets at end of year | 3 | 5 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (2) | (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 year | 577 | 445 |
Total (losses) gains in income statement | (31) | 6 |
Total losses recorded in other comprehensive income | (6) | (5) |
Purchases and other additions | 305 | 143 |
Sales | (21) | |
Transfers (out of) into level 3 | (12) | |
Assets at end of year | 824 | 577 |
Net unrealised (losses) gains on financial instruments held at the end of the year | (8) | 6 |
Level 3 | Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 58 | 33 |
Total (losses) gains in income statement | (2) | (3) |
Total losses recorded in other comprehensive income | (3) | (2) |
Transfers (out of) into level 3 | (15) | 30 |
Assets at end of year | 38 | 58 |
Net unrealised (losses) gains on financial instruments held at the end of the year | $ (2) | $ (3) |
Fair value measurement - Assets
Fair value measurement - Assets and liabilities at amortised cost and their fair value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Total net financial assets (liabilities) at amortised cost | $ (3,273) | $ (4,923) |
Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 2,086 | 1,941 |
Core structural borrowings of shareholder-financed businesses | ||
Financial instruments | ||
Financial liabilities at amortised cost | (4,261) | (6,127) |
Operational borrowings (excluding lease liabilities) | ||
Financial instruments | ||
Financial liabilities at amortised cost | (516) | (514) |
Obligations under funding, securities lending and sale and repurchase agreements | ||
Financial instruments | ||
Financial liabilities at amortised cost | (582) | (223) |
Assets and liabilities at amortised cost for which fair value is disclosed | ||
Financial instruments | ||
Total net financial assets (liabilities) at amortised cost | (2,725) | (5,150) |
Assets and liabilities at amortised cost for which fair value is disclosed | Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 2,207 | 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 | (3,834) | (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 | (516) | (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 | $ (582) | $ (223) |
Fair value measurement - Maturi
Fair value measurement - Maturity of financial liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | $ 18,628 | $ 20,858 |
Contractual maturities | 19,784 | 22,100 |
Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 4,261 | 6,127 |
Contractual maturities | 5,375 | 7,334 |
Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 299 | 347 |
Contractual maturities | 341 | 382 |
Operational borrowings (excluding lease liabilities) | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 516 | 514 |
Contractual maturities | 516 | 514 |
Obligations under funding, securities lending and sale and repurchase agreements | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 582 | 223 |
Contractual maturities | 582 | 223 |
Accruals, deferred income and other liabilities | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 8,777 | 7,983 |
Contractual maturities | 8,777 | 7,983 |
Net asset value attributable to unit holders of consolidated investment funds | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 4,193 | 5,664 |
Contractual maturities | 4,193 | 5,664 |
Within one year | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 12,159 | 14,355 |
Within one year | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 509 | 1,872 |
Within one year | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 101 | 110 |
Within one year | Operational borrowings (excluding lease liabilities) | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 516 | 514 |
Within one year | Obligations under funding, securities lending and sale and repurchase agreements | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 582 | 223 |
Within one year | Accruals, deferred income and other liabilities | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 6,258 | 5,972 |
Within one year | Net asset value attributable to unit holders of consolidated investment funds | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 4,193 | 5,664 |
1 to 2 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 200 | 632 |
1 to 2 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 124 | 551 |
1 to 2 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 76 | 81 |
2 to 5 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 497 | 837 |
2 to 5 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 370 | 702 |
2 to 5 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 127 | 135 |
5 to 10 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 2,626 | 1,862 |
5 to 10 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 2,598 | 1,817 |
5 to 10 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 28 | 45 |
10 to 15 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 1,033 | 1,653 |
10 to 15 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 1,024 | 1,642 |
10 to 15 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 9 | 11 |
No stated maturity | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 3,269 | 2,761 |
No stated maturity | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 750 | 750 |
No stated maturity | Accruals, deferred income and other liabilities | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | $ 2,519 | $ 2,011 |
Fair value measurement - Matu_2
Fair value measurement - Maturity analysis of derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Maturity analysis of derivatives | ||
Derivative assets | $ 569 | $ 481 |
Derivative liabilities | (1,001) | (262) |
Net derivative position | $ (432) | $ 219 |
Fair value measurement - Matu_3
Fair value measurement - Maturity analysis of investment contracts (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Total carrying value | $ 1,050 | $ 1,160 |
Investment contracts | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Total carrying value | 420 | 459 |
Undiscounted value | 512 | 543 |
Investment contracts | Within one year | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | 11 | 14 |
Investment contracts | 1 to 5 years | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | 369 | 442 |
Investment contracts | 5 to 10 years | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | 98 | 63 |
Investment contracts | 10 to 15 years | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | 22 | 16 |
Investment contracts | 15 to 20 years | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | 8 | 6 |
Investment contracts | Over 20 years | ||
Maturity profile for investment contracts on undiscounted cash flow projections of expected benefit payments | ||
Undiscounted value | $ 4 | $ 2 |
Fair value measurement - Credit
Fair value measurement - Credit risk (Details) - Past due date but not impaired - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit risk | ||
Loans and receivables | $ 6 | $ 7 |
Within one year | ||
Credit risk | ||
Loans and receivables | $ 1 | $ 2 |
Fair value measurement - Foreig
Fair value measurement - Foreign exchange risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign exchange risk | ||
Amount of exchange gain (loss) recognised | $ 234 | $ (132) |
Foreign exchange risk | ||
Foreign exchange risk | ||
Percentage of financial assets in other than functional currencies | 27% | 26% |
Percentage of financial liabilities in other than functional currencies | 64% | 63% |
Fair value measurement - Dereco
Fair value measurement - Derecognition and collateral (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Securities lending and reverse repurchase agreements | ||
Collateral held in respect of reverse repurchase agreements | $ 3,244 | $ 2,149 |
Lent securities and assets subject to repurchase | 1,571 | 854 |
Cash and securities collateral held or pledged under repurchase and securities lending agreements | 1,679 | 913 |
Credit risk, over-the-counter derivative transactions | ||
Collateral and pledges | ||
Amount of assets pledged as collateral for liabilities | 62 | 99 |
Amount of collateral held | $ 234 | $ 50 |
Fair value measurement - Offset
Fair value measurement - Offsetting assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | $ 3,631 | $ 2,305 |
Financial assets, financial instruments not offset in the consolidated statement of financial position | (179) | (94) |
Financial assets, cash collateral not offset in the consolidated statement of financial position | (217) | (31) |
Financial assets, securities collateral not offset in the consolidated statement of financial position | (3,174) | (2,135) |
Net amount of financial assets | 61 | 45 |
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (866) | (387) |
Financial liabilities, financial instruments not offset in the consolidated statement of financial position | 179 | 94 |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | 40 | 216 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 572 | 69 |
Net amount of financial liabilities | (75) | (8) |
Derivative liabilities | ||
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (284) | (165) |
Financial liabilities, financial instruments not offset in the consolidated statement of financial position | 179 | 94 |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | 27 | 63 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 6 | |
Net amount of financial liabilities | (72) | (8) |
Securities lending and repurchase agreements | ||
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (582) | (222) |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | 13 | 153 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 566 | 69 |
Net amount of financial liabilities | (3) | |
Derivative assets | ||
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | 457 | 170 |
Financial assets, financial instruments not offset in the consolidated statement of financial position | (179) | (94) |
Financial assets, cash collateral not offset in the consolidated statement of financial position | (217) | (31) |
Financial assets, securities collateral not offset in the consolidated statement of financial position | (1) | |
Net amount of financial assets | 61 | 44 |
Reverse repurchase agreements | ||
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | 3,174 | 2,135 |
Financial assets, securities collateral not offset in the consolidated statement of financial position | $ (3,174) | (2,134) |
Net amount of financial assets | $ 1 |
Policyholder liabilities and _3
Policyholder liabilities and unallocated surplus - Movement in policyholder liabilities and unallocated surplus of with-profits funds (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 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 | 6,779 | 7,200 |
In-force | 13,836 | 14,788 |
Premiums | 20,615 | 21,988 |
Surrenders | (4,673) | (4,904) |
Maturities/deaths/other claim events | (4,015) | (3,454) |
Net flows | 11,927 | 13,630 |
Shareholders' transfers post-tax | (158) | (134) |
Investment-related items and other movements | (38,102) | (109) |
Foreign exchange translation differences | (4,214) | (1,688) |
Ending Balance | 146,707 | 177,254 |
Policyholder liabilities on the consolidated statement of financial position | 122,263 | 151,915 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 3,495 | 5,384 |
Group's share of policyholder liabilities of joint ventures and associates | 20,949 | 19,955 |
Average policyholder liability balances | 157,541 | 166,104 |
Discontinued US operations | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Policyholder liabilities on the consolidated statement of financial position | 296,513 | |
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 | 2,244 | 1,990 |
In-force | 5,809 | 7,096 |
Premiums | 8,053 | 9,086 |
Surrenders | (1,233) | (844) |
Maturities/deaths/other claim events | (2,103) | (2,116) |
Net flows | 4,717 | 6,126 |
Shareholders' transfers post-tax | (158) | (134) |
Investment-related items and other movements | (20,677) | 2,499 |
Foreign exchange translation differences | (197) | (899) |
Ending Balance | 77,687 | 94,002 |
Policyholder liabilities on the consolidated statement of financial position | 74,192 | 88,618 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | 3,495 | 5,384 |
Average policyholder liability balances | $ 81,405 | $ 84,905 |
Shareholder-backed | ||
Analysis of movements in policyholder liabilities and unallocated surplus | ||
Percentage rate of surrender | 4.10% | 5.10% |
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 | 1,838 | 3,038 |
In-force | 2,404 | 2,406 |
Premiums | 4,242 | 5,444 |
Surrenders | (2,763) | (3,326) |
Maturities/deaths/other claim events | (200) | (215) |
Net flows | 1,279 | 1,903 |
Investment-related items and other movements | (2,802) | 897 |
Foreign exchange translation differences | (1,836) | (550) |
Ending Balance | 31,397 | 34,756 |
Policyholder liabilities on the consolidated statement of financial position | 22,842 | 25,651 |
Group's share of policyholder liabilities of joint ventures and associates | 8,555 | 9,105 |
Average policyholder liability balances | 33,076 | 33,631 |
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 | 2,697 | 2,172 |
In-force | 5,623 | 5,286 |
Premiums | 8,320 | 7,458 |
Surrenders | (677) | (734) |
Maturities/deaths/other claim events | (1,712) | (1,123) |
Net flows | 5,931 | 5,601 |
Investment-related items and other movements | (14,623) | (3,505) |
Foreign exchange translation differences | (2,181) | (239) |
Ending Balance | 37,623 | 48,496 |
Policyholder liabilities on the consolidated statement of financial position | 25,229 | 37,646 |
Group's share of policyholder liabilities of joint ventures and associates | 12,394 | 10,850 |
Average policyholder liability balances | $ 43,060 | $ 47,568 |
Policyholder liabilities and _4
Policyholder liabilities and unallocated surplus - Duration of policyholder liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder liabilities and unallocated surplus | |||
Policyholder liabilities | $ 122,263 | $ 151,915 | $ 144,733 |
0 to 5 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 22% | 20% | |
5 to 10 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 18% | 18% | |
10 to 15 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 14% | 15% | |
15 to 20 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 11% | 12% | |
20 to 25 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 10% | 10% | |
Over 25 years | |||
Policyholder liabilities and unallocated surplus | |||
Percentage of policyholder liabilities | 25% | 25% |
Policyholder liabilities and _5
Policyholder liabilities and unallocated surplus - Policyholder liabilities and unallocated surplus by operating segment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | $ 122,951 | $ 147,546 |
Hong Kong | ||
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | 60,880 | 79,363 |
Indonesia | ||
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | 3,648 | 4,257 |
Malaysia | ||
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | 8,231 | 8,660 |
Singapore | ||
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | 31,197 | 34,361 |
Growth markets and other | ||
Policyholder liabilities and unallocated surplus | ||
Policyholder liabilities and unallocated surplus, net of reinsurance, excluding joint ventures | $ 18,995 | $ 20,905 |
Policyholder liabilities and _6
Policyholder liabilities and unallocated surplus - Reconciliation of gross and reinsurers' share of policyholder liabilities and unallocated surplus (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities at beginning of period | $ (150,755) | |
Insurance contract liabilities at end of period | (121,213) | $ (150,755) |
Investment contract liabilities at beginning of period | (1,160) | |
Removal of discontinued operations | 3,188 | |
Income and expense included in the income statement | 88 | 189 |
Other movements | (26) | (75) |
Foreign exchange translation differences | 48 | (3) |
Investment contract liabilities at end of period | (1,050) | (1,160) |
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 | (3,495) | (5,384) |
Claims paid | (9,343) | (8,845) |
Claim amount attributable to reinsurers | 740 | 581 |
Thailand | ||
Policyholder liabilities and unallocated surplus | ||
Valuation interest rate impact on policyholder liabilities | 160 | |
With-profits business | ||
Policyholder liabilities and unallocated surplus | ||
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 | 1,868 | (202) |
Foreign exchange translation differences | 21 | 35 |
Unallocated surplus of with-profits funds on the consolidated statement of financial position | (3,495) | (5,384) |
Contract liabilities (before reinsurers' share) | ||
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities at beginning of period | (150,755) | |
Removal of discontinued operations | 293,325 | |
Income (expense) included in the income statement | 27,252 | (9,082) |
Foreign exchange translation differences | 2,290 | 1,789 |
Insurance contract liabilities at end of period | (121,213) | (150,755) |
Reinsurers' share | ||
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities at beginning of period | 9,753 | |
Removal of discontinued operations | (35,232) | |
Income (expense) included in the income statement | (6,908) | (1,552) |
Foreign exchange translation differences | (38) | (58) |
Insurance contract liabilities at end of period | $ 2,807 | 9,753 |
Continuing and discontinued operations | ||
Policyholder liabilities and unallocated surplus | ||
Investment contract liabilities at beginning of period | (4,459) | |
Continuing and discontinued operations | With-profits business | ||
Policyholder liabilities and unallocated surplus | ||
Unallocated surplus of with-profits funds on the consolidated statement of financial position | (5,217) | |
Continuing and discontinued operations | Contract liabilities (before reinsurers' share) | ||
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities at beginning of period | (436,787) | |
Continuing and discontinued operations | Reinsurers' share | ||
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities at beginning of period | $ 46,595 |
Policyholder liabilities and _7
Policyholder liabilities and unallocated surplus - Segmental analysis of the total charge for benefit and claims and movement in unallocated surplus (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | $ (8,817) | $ (8,513) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | 20,646 | (10,196) | |
Movement in unallocated surplus of with-profits funds | 1,868 | (202) | $ (438) |
Benefits and claims and movement in unallocated surplus, net of reinsurance | 13,697 | (18,911) | $ (28,588) |
Increase in profit loss before tax due to change in reserving basis | 945 | ||
Hong Kong | |||
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | (2,033) | (1,687) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | 15,643 | (6,088) | |
Movement in unallocated surplus of with-profits funds | 1,815 | (250) | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | 15,425 | (8,025) | |
Indonesia | |||
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | (1,228) | (1,184) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | 270 | 167 | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | (958) | (1,017) | |
Malaysia | |||
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | (1,070) | (1,015) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | (135) | (260) | |
Movement in unallocated surplus of with-profits funds | 53 | 48 | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | (1,152) | (1,227) | |
Singapore | |||
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | (2,718) | (3,037) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | 3,189 | (2,856) | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | 471 | (5,893) | |
Growth markets and other | |||
Policyholder liabilities and unallocated surplus | |||
Claims incurred, net of reinsurance | (1,768) | (1,590) | |
Decrease (Increase) in policyholder liabilities, net of reinsurance | 1,679 | (1,159) | |
Benefits and claims and movement in unallocated surplus, net of reinsurance | $ (89) | $ (2,749) |
Policyholder liabilities and _8
Policyholder liabilities and unallocated surplus - Reinsurers' share of insurance contract liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder liabilities and unallocated surplus | ||
Insurance contract liabilities | $ 2,592 | $ 9,550 |
Claims outstanding | 215 | 203 |
Total reinsurers' share of insurance contract liabilities | 2,807 | 9,753 |
Net commission on ceded business | 216 | 285 |
Claims incurred on ceded business | 766 | 604 |
Deferred gains in the year | $ 1 | $ 3 |
Standard & Poor's rating A- and above | ||
Policyholder liabilities and unallocated surplus | ||
Percentage of ceded insurance contract liabilities per A- and above credit rating of reinsurer | 98% | 99% |
Intangible assets - Goodwill re
Intangible assets - Goodwill reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in goodwill: | ||
Carrying value at beginning of period | $ 907 | $ 961 |
Exchange differences | (17) | (54) |
Carrying value at end of period | 890 | 907 |
Accumulated impairment | ||
Changes in goodwill: | ||
Carrying value at beginning of period | 0 | |
Carrying value at end of period | $ 0 | $ 0 |
Intangible assets - Impairment
Intangible assets - Impairment testing (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash-generating units | |||
Goodwill | $ 890 | $ 907 | $ 961 |
Thailand Asset Management | |||
Cash-generating units | |||
Goodwill | $ 445 | $ 465 | |
Period of discounted cash flow valuation | 5 years | ||
Constant growth rate | 3.50% | 2.30% | |
Pre-tax discount rate | 9% | 9% | |
UOB Life | |||
Cash-generating units | |||
Goodwill | $ 234 | $ 233 |
Intangible assets - Deferred ac
Intangible assets - Deferred acquisition costs and other intangible assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred acquisition costs and other intangible assets | ||
Total of deferred acquisition costs and other intangible assets | $ 7,155 | $ 6,858 |
Distribution rights | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 3,600 | |
Shareholder-backed | ||
Deferred acquisition costs and other intangible assets | ||
DAC related to insurance and investment contracts | 3,254 | 2,815 |
Acquired in-force (PVIF) and other intangibles | 3,856 | 3,994 |
Total of deferred acquisition costs and other intangible assets | 7,110 | 6,809 |
Shareholder-backed | Distribution rights | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 3,630 | 3,782 |
Shareholder-backed | PVIF | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 17 | 28 |
Shareholder-backed | Other intangibles | ||
Deferred acquisition costs and other intangible assets | ||
Acquired in-force (PVIF) and other intangibles | 209 | 184 |
Shareholder-backed | Insurance contracts | ||
Deferred acquisition costs and other intangible assets | ||
DAC related to insurance and investment contracts | 3,215 | 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 | $ 45 | $ 49 |
Intangible assets - Changes in
Intangible assets - Changes in DAC and other intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movements in deferred acquisition costs and intangible assets | |||
At beginning of period | $ 6,858 | ||
At end of period | 7,155 | $ 6,858 | |
Software | |||
Movements in deferred acquisition costs and intangible assets | |||
Additions | 58 | ||
Amortisation charge | (24) | ||
Disposals | (3) | ||
Foreign exchange losses | (7) | ||
Acquired in-force (PVIF) and other intangibles | 138 | 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 | 1,284 | 1,185 | |
Amortisation to the income statement | (826) | (651) | |
Disposals and transfers | (5) | (7) | |
Exchange differences and other movements | (152) | (112) | |
At end of period | 7,110 | 6,809 | |
Additions | 282 | 337 | |
Amortisation charge | (351) | (308) | |
Acquired in-force (PVIF) and other intangibles | 3,856 | 3,994 | |
Shareholder-backed | Deferred acquisition costs | |||
Movements in deferred acquisition costs and intangible assets | |||
At beginning of period | 2,815 | ||
Additions | 1,002 | ||
Amortisation to the income statement | (475) | ||
Exchange differences and other movements | (88) | ||
At end of period | 3,254 | 2,815 | |
Shareholder-backed | Distribution rights | |||
Movements in deferred acquisition costs and intangible assets | |||
At beginning of period | 3,782 | ||
Additions | 206 | ||
Amortisation to the income statement | (301) | ||
Exchange differences and other movements | (57) | ||
At end of period | 3,630 | 3,782 | |
Shareholder-backed | Other intangibles | |||
Movements in deferred acquisition costs and intangible assets | |||
At beginning of period | 212 | ||
Additions | 76 | ||
Amortisation to the income statement | (50) | ||
Disposals and transfers | (5) | ||
Exchange differences and other movements | (7) | ||
At end of period | $ 226 | 212 | |
Continuing and discontinued operations | Shareholder-backed | |||
Movements in deferred acquisition costs and intangible assets | |||
At beginning of period | $ 20,275 | ||
Acquired in-force (PVIF) and other intangibles | $ 4,059 |
Intangible Assets - DAC for ins
Intangible Assets - DAC for insurance and investment contracts (Details) - Shareholder-backed - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movements in deferred acquisition costs and intangible assets | ||
At beginning of year | $ 2,815 | |
At end of year | 3,254 | $ 2,815 |
Insurance contracts | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of year | 2,776 | |
Removal of discontinued US operations | (13,863) | |
Additions | 993 | 841 |
Amortisation | (470) | (339) |
Exchange differences and other movements | (84) | (45) |
At end of year | 3,215 | 2,776 |
Investment contracts | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of year | 39 | |
Additions | 9 | 7 |
Amortisation | (5) | (4) |
Exchange differences and other movements | (4) | 2 |
At end of year | $ 39 | 39 |
Continuing and discontinued operations | Insurance contracts | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of year | 16,182 | |
Continuing and discontinued operations | Investment contracts | ||
Movements in deferred acquisition costs and intangible assets | ||
At beginning of year | $ 34 |
Intangible Assets - DAC balance
Intangible Assets - DAC balance comprises the following gross and accumulated amortisation amounts (Details) - Shareholder-backed - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Movements in deferred acquisition costs and intangible assets | ||
Deferred acquisition costs | $ 3,254 | $ 2,815 |
Investment contracts | ||
Movements in deferred acquisition costs and intangible assets | ||
Deferred acquisition costs | 39 | 39 |
Investment contracts | Cost/Gross amount | ||
Movements in deferred acquisition costs and intangible assets | ||
Deferred acquisition costs | 59 | 55 |
Investment contracts | Accumulated amortisation | ||
Movements in deferred acquisition costs and intangible assets | ||
Deferred acquisition costs | $ (20) | $ (16) |
Intangible Assets - PVIF and ot
Intangible Assets - PVIF and other intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | $ 3,994 | |
Removal of discontinued US operations | $ (18) | |
Additions | 282 | 337 |
Amortisation charge | (351) | (308) |
Disposals and transfers | (5) | (7) |
Exchange differences and other movements | (64) | (69) |
Intangible assets balance at the end of the period | 3,856 | 3,994 |
Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 5,490 | |
Intangible assets balance at the end of the period | 5,683 | 5,490 |
Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (1,496) | |
Intangible assets balance at the end of the period | (1,827) | (1,496) |
PVIF | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 28 | |
Amortisation charge | (10) | (5) |
Exchange differences and other movements | (1) | (1) |
Intangible assets balance at the end of the period | 17 | 28 |
PVIF | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 140 | |
Intangible assets balance at the end of the period | 134 | 140 |
PVIF | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (112) | |
Intangible assets balance at the end of the period | (117) | (112) |
Distribution rights | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the end of the period | 3,600 | |
Distribution rights | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 3,782 | |
Additions | 206 | 260 |
Amortisation charge | (301) | (268) |
Exchange differences and other movements | (57) | (61) |
Intangible assets balance at the end of the period | 3,630 | 3,782 |
Distribution rights | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 5,037 | |
Intangible assets balance at the end of the period | 5,176 | 5,037 |
Distribution rights | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (1,255) | |
Intangible assets balance at the end of the period | (1,546) | (1,255) |
Other intangibles | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 184 | |
Removal of discontinued US operations | (18) | |
Additions | 76 | 77 |
Amortisation charge | (40) | (35) |
Disposals and transfers | (5) | (7) |
Exchange differences and other movements | (6) | (7) |
Intangible assets balance at the end of the period | 209 | 184 |
Other intangibles | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 313 | |
Intangible assets balance at the end of the period | 373 | 313 |
Other intangibles | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (129) | |
Intangible assets balance at the end of the period | $ (164) | (129) |
Continuing and discontinued operations | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 4,059 | |
Continuing and discontinued operations | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 5,446 | |
Continuing and discontinued operations | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (1,387) | |
Continuing and discontinued operations | PVIF | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 34 | |
Continuing and discontinued operations | PVIF | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 177 | |
Continuing and discontinued operations | PVIF | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (143) | |
Continuing and discontinued operations | Distribution rights | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 3,851 | |
Continuing and discontinued operations | Distribution rights | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 4,845 | |
Continuing and discontinued operations | Distribution rights | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | (994) | |
Continuing and discontinued operations | Other intangibles | Shareholder-backed | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 174 | |
Continuing and discontinued operations | Other intangibles | Shareholder-backed | Cost/Gross amount | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | 424 | |
Continuing and discontinued operations | Other intangibles | Shareholder-backed | Accumulated amortisation | ||
Present value of acquired in-force (PVIF) and other intangibles | ||
Intangible assets balance at the beginning of the period | $ (250) |
Borrowings - Core Structural Bo
Borrowings - Core Structural Borrowings (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | ||||||
Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | |
Core structural borrowings of shareholder-financed businesses | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 4,261 | $ 6,127 | |||||
US$1,000m 5.25% Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,000 | ||||||
Notional amount | $ 1,000 | ||||||
Borrowings, interest rate | 5.25% | 5.25% | 5.25% | ||||
US$725m 4.375% Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 725 | ||||||
Notional amount | $ 725 | ||||||
Borrowings, interest rate | 4.375% | 4.375% | 4.375% | ||||
US$750m 4.875% Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 750 | $ 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 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 21 | $ 23 | |||||
Notional amount | € | € 20 | € 20 | |||||
GBP435m 6.125% Notes 2031 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 520 | $ 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 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 995 | $ 995 | |||||
Notional amount | $ 1,000 | $ 1,000 | |||||
Borrowings, interest rate | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% | |
Senior debt: GBP300m 6.875% Bonds 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 361 | $ 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 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 281 | $ 313 | |||||
Notional amount | £ | £ 250 | £ 250 | |||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | |
Senior debt: US$1,000m 3.125% Notes 2030 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 987 | $ 985 | |||||
Notional amount | $ 1,000 | $ 1,000 | |||||
Borrowings, interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | |
Senior debt; US$350m 3.625% Notes 2032 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 346 | ||||||
Notional amount | $ 350 | ||||||
Borrowings, interest rate | 3.625% | 3.625% | 3.625% | ||||
Proceeds from borrowings | $ 346 | ||||||
$350m Loan 2024 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 350 | ||||||
Notional amount | $ 350 |
Borrowings - Operational borrow
Borrowings - Operational borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operational borrowings | ||
Borrowings | ||
Borrowings | $ 815 | $ 861 |
Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 697 | 719 |
Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | 118 | 142 |
Borrowings in respect of short-term fixed income securities programmes - commercial paper | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 501 | 500 |
Lease liabilities under IFRS 16 | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 185 | 209 |
Lease liabilities under IFRS 16 | Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | 114 | 138 |
Other borrowings | Operational borrowings attributable to shareholder-financed businesses | ||
Borrowings | ||
Borrowings | 11 | 10 |
Other borrowings | Borrowings attributable to with-profits businesses | ||
Borrowings | ||
Borrowings | $ 4 | $ 4 |
Risk and sensitivity analysis -
Risk and sensitivity analysis - Sensitivity analysis to key market risks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Risk and sensitivity analysis | ||
Shareholders' equity | $ 16,960 | $ 17,088 |
Insurance operations | ||
Risk and sensitivity analysis | ||
Shareholders' equity | $ 14,407 | $ 14,289 |
Interest rate risk | ||
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 1% | 1% |
Net effect on shareholders' equity, increase in assumption | $ (386) | $ (796) |
Net effect on profit after tax, increase in assumption | $ (386) | $ (796) |
Reasonably possible decrease in assumption (as a percent) | 0.50% | 0.50% |
Net effect on shareholders' equity, decrease in assumption | $ (122) | $ 137 |
Net effect on profit after tax, decrease in assumption | $ (122) | $ 137 |
Floor for movements in interest rates in sensitivity analysis | 0% | 0% |
Equity/property market | ||
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 10% | 10% |
Net effect on shareholders' equity, increase in assumption | $ 190 | $ 372 |
Net effect on profit after tax, increase in assumption | $ 190 | $ 372 |
Reasonably possible decrease in assumption (as a percent) | 20% | 20% |
Net effect on shareholders' equity, decrease in assumption | $ (729) | $ (787) |
Net effect on profit after tax, decrease in assumption | $ (729) | $ (787) |
Risk and sensitivity analysis_2
Risk and sensitivity analysis - Insurance operations (Details) - Insurance risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 5% | 5% |
Net effect on profit after tax, increase in assumption | $ (101) | $ (108) |
Net effect on shareholders' equity, increase in assumption | $ (101) | $ (108) |
Reasonably possible decrease in assumption (as a percent) | 5% | 5% |
Net effect on profit after tax, decrease in assumption | $ 101 | $ 108 |
Net effect on shareholders' equity, decrease in assumption | $ 101 | $ 108 |
Risk and sensitivity analysis_3
Risk and sensitivity analysis - Eastspring and central operations (Details) - Jackson - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Risk and sensitivity analysis | ||||
Economic interest | 9.20% | 18.40% | ||
Available-for-sale | ||||
Risk and sensitivity analysis | ||||
Financial assets, fair value | $ 266 | $ 683 | $ 266 | $ 683 |
Portfolio value risk | Available-for-sale | ||||
Risk and sensitivity analysis | ||||
Reasonably possible decrease in assumption (as a percent) | 20% | 20% | 20% | 20% |
Net effect on shareholders' equity, decrease in assumption | $ (53) | $ (137) | $ (53) | $ (137) |
Net effect on other comprehensive income, decrease in assumption | $ (53) | $ (137) |
Tax assets and liabilities - Cu
Tax assets and liabilities - Current tax (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Tax assets and liabilities | ||
Current tax recoverable | $ 18 | $ 20 |
Current tax liabilities | 208 | 185 |
Provision for uncertain tax matters | $ 79 | $ 42 |
Tax assets and liabilities - De
Tax assets and liabilities - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | 271 | (12) |
Other movements including foreign exchange movements | (227) | (38) |
Deferred tax assets at end of period | 310 | 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 | (265) | (393) |
Other movements including foreign exchange movements | 255 | 83 |
Deferred tax liabilities at end of period | (2,872) | (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 | 317 | 3 |
Other movements including foreign exchange movements | (178) | |
Deferred tax assets at end of period | 142 | 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 | 44 | 127 |
Other movements including foreign exchange movements | 185 | 3 |
Deferred tax liabilities at end of period | (13) | (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 | (33) | (37) |
Deferred tax assets at end of period | 2 | 34 |
Deferred tax liabilities in statement of financial position | ||
Deferred tax liabilities at beginning of period | (2,125) | |
Movement in income statement | (228) | (433) |
Other movements including foreign exchange movements | 47 | 73 |
Deferred tax liabilities at end of period | (2,306) | (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 | (15) | 15 |
Other movements including foreign exchange movements | (12) | (2) |
Deferred tax assets at end of period | 135 | 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 | (81) | (87) |
Other movements including foreign exchange movements | 23 | 7 |
Deferred tax liabilities at end of period | (553) | (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 | (32) | (14) |
Other movements including foreign exchange movements | (4) | 1 |
Deferred tax assets at end of period | $ 31 | 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 |
Tax assets and liabilities - Ta
Tax assets and liabilities - Tax benefits not recognized (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of deferred tax in statement of financial position and by Group's operations | ||
Unused tax losses and temporary deductible differences for which no deferred tax asset recognised | $ 2,235 | $ 1,382 |
Deferred tax liabilities not recognized in jurisdictions where a withholding charge is incurred upon distribution of earnings | 216 | 330 |
3 March 2023 | ||
Disclosure of deferred tax in statement of financial position and by Group's operations | ||
Unused tax losses and temporary deductible differences for which no deferred tax asset recognised | 837 | |
Within 10 years | ||
Disclosure of deferred tax in statement of financial position and by Group's operations | ||
Unused tax losses and temporary deductible differences for which no deferred tax asset recognised | 103 | 108 |
Tax benefit not recognized | 22 | |
No expiry date | ||
Disclosure of deferred tax in statement of financial position and by Group's operations | ||
Unused tax losses and temporary deductible differences for which no deferred tax asset recognised | 1,295 | $ 1,274 |
Tax benefit not recognized | $ 277 |
Share capital, share premium _3
Share capital, share premium and own shares - Share capital and premium (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Oct. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) Options shares | Dec. 31, 2022 Options £ / shares | Dec. 31, 2021 Options £ / shares | Dec. 31, 2019 Options | |
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 | 2,746,412,265 | 2,609,489,702 | ||||||
Number of issued shares at end of period | shares | 2,746,412,265 | 2,749,669,380 | 2,746,412,265 | 2,609,489,702 | |||||
Balance at beginning of year | $ 17,264 | $ 17,264 | $ 22,119 | $ 19,669 | |||||
Shares issued | (4) | 2,382 | 13 | ||||||
Balance at end of year | $ 17,264 | 17,127 | $ 17,264 | $ 22,119 | |||||
Options outstanding under save as you earn schemes | |||||||||
Number of shares under option | Options | 2,000,000 | 1,000,000 | 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 | 1,000 | 1,300 | |||||||
Share capital | |||||||||
Disclosure of classes of share capital | |||||||||
Balance at beginning of year | 182 | 182 | $ 173 | $ 172 | |||||
Shares issued | 9 | 1 | |||||||
Balance at end of year | 182 | 182 | 182 | 173 | |||||
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 year | $ 5,010 | 5,010 | 2,637 | 2,625 | |||||
Shares issued | (4) | 2,373 | 12 | ||||||
Balance at end of year | $ 5,010 | 5,006 | 5,010 | $ 2,637 | |||||
Share premium | Share offer | |||||||||
Disclosure of classes of share capital | |||||||||
Shares issued | $ (6) | $ 2,365 | |||||||
Share-based schemes | |||||||||
Disclosure of classes of share capital | |||||||||
Number of shares issued | shares | 3,257,115 | 6,142,213 | |||||||
Share-based schemes | Share premium | |||||||||
Disclosure of classes of share capital | |||||||||
Shares issued | $ 2 | $ 8 | |||||||
SAYE options | |||||||||
Options outstanding under save as you earn schemes | |||||||||
Number of shares under option | Options | 2,300,000 | 1,858,292 | 2,022,535 | 3,800,000 | |||||
SAYE options | Minimum | |||||||||
Options outstanding under save as you earn schemes | |||||||||
Share price | £ / shares | £ 7.37 | £ 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) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2022 USD ($) shares | Nov. 30, 2022 USD ($) shares | Oct. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Aug. 31, 2022 USD ($) shares | Jul. 31, 2022 USD ($) shares | Jun. 30, 2022 USD ($) shares | May 31, 2022 USD ($) shares | Apr. 30, 2022 USD ($) shares | Mar. 31, 2022 USD ($) shares | Feb. 28, 2022 USD ($) shares | Jan. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Nov. 30, 2021 USD ($) shares | Oct. 31, 2021 USD ($) shares | Sep. 30, 2021 USD ($) shares | Aug. 31, 2021 USD ($) shares | Jul. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) shares | May 31, 2021 USD ($) shares | Apr. 30, 2021 USD ($) shares | Mar. 31, 2021 USD ($) shares | Feb. 28, 2021 USD ($) shares | Jan. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 £ / shares | Nov. 30, 2022 £ / shares | Oct. 31, 2022 £ / shares | Sep. 30, 2022 £ / shares shares | Aug. 31, 2022 £ / shares | Jul. 31, 2022 £ / shares | Jun. 30, 2022 £ / shares | May 31, 2022 £ / shares | Apr. 30, 2022 £ / shares | Mar. 31, 2022 £ / shares | Feb. 28, 2022 £ / shares | Jan. 31, 2022 £ / shares | Dec. 31, 2021 £ / shares | Nov. 30, 2021 £ / shares | Oct. 31, 2021 £ / shares | Sep. 30, 2021 £ / shares | Aug. 31, 2021 £ / shares | Jul. 31, 2021 £ / shares | Jun. 30, 2021 £ / shares | May 31, 2021 £ / shares | Apr. 30, 2021 £ / shares | Mar. 31, 2021 £ / shares | Feb. 28, 2021 £ / shares | Jan. 31, 2021 £ / shares | |
Transactions in Prudential plc shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of own shares deducted from retained earnings | $ | $ 270,000,000 | $ 267,000,000 | $ 270,000,000 | $ 267,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares held in trust for employee incentive plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions in Prudential plc shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares held | shares | 12,600,000 | 11,700,000 | 12,600,000 | 11,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Market value of shares held | $ | $ 174,000,000 | $ 201,000,000 | $ 174,000,000 | $ 201,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of shares purchased | shares | 95,680 | 79,326 | 175,837 | 90,843 | 86,540 | 87,338 | 196,180 | 460,897 | 4,024,410 | 73,193 | 65,223 | 63,019 | 76,926 | 53,867 | 436,771 | 312,226 | 57,004 | 60,473 | 121,472 | 52,989 | 2,438,884 | 55,545 | 69,865 | 74,817 | 5,498,486 | 3,810,839 | ||||||||||||||||||||||||
Cost of shares purchased | $ | $ 1,240,296 | $ 837,944 | $ 1,675,634 | $ 1,000,619 | $ 1,029,843 | $ 1,052,807 | $ 2,402,464 | $ 5,288,807 | $ 58,880,934 | $ 1,055,044 | $ 1,098,500 | $ 1,120,889 | $ 1,355,942 | $ 1,072,374 | $ 8,410,274 | $ 7,961,098 | $ 1,128,450 | $ 1,145,078 | $ 2,508,974 | $ 1,183,836 | $ 52,512,098 | $ 1,189,784 | $ 1,251,067 | $ 1,443,158 | $ 76,683,781 | $ 81,162,133 | ||||||||||||||||||||||||
Shares held in trust for employee incentive plans | Minimum | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions in Prudential plc shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share price | £ / shares | £ 10.63 | £ 8.99 | £ 9.06 | £ 9.24 | £ 9.81 | £ 10.06 | £ 10.13 | £ 8.95 | £ 10.64 | £ 10.37 | £ 12.43 | £ 12.93 | £ 13.20 | £ 14.77 | £ 14.48 | £ 14.89 | £ 14.20 | £ 13.62 | £ 14.62 | £ 15.82 | £ 15.45 | £ 14.91 | £ 12.42 | £ 14.12 | ||||||||||||||||||||||||||
Shares held in trust for employee incentive plans | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions in Prudential plc shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares held | shares | 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share price | £ / shares | £ 10.74 | £ 9.04 | £ 9.30 | £ 9.73 | £ 9.95 | £ 10.15 | £ 11.70 | £ 9.05 | £ 11.29 | £ 10.96 | £ 12.49 | £ 13.14 | £ 13.24 | £ 14.83 | £ 14.99 | £ 15.24 | £ 14.37 | £ 13.78 | £ 14.89 | £ 15.96 | £ 15.55 | £ 15.49 | £ 12.96 | £ 14.48 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Provisions | |||
Staff benefits provisions | $ 341 | $ 355 | |
Other provisions | 7 | 17 | |
Total provisions | $ 348 | $ 372 | $ 350 |
Provisions - Reconciliation (De
Provisions - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions | ||
Balance at the beginning of the year | $ 372 | $ 350 |
Removal of discontinued US operations | (14) | |
Additional provisions | 231 | 263 |
Unused amounts released | (20) | (15) |
Utilisation during the year | (221) | (204) |
Exchange differences | (14) | (8) |
Balance at the end of the year | $ 348 | $ 372 |
Capital - Capital Measure (Deta
Capital - Capital Measure (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Capital | ||
Group shareholder GWS capital resources | $ 23.2 | $ 25.5 |
Amount of debt redemption included with capital resources | $ 1.7 |
Capital - Local capital regulat
Capital - Local capital regulations (Details) | Dec. 31, 2022 | Apr. 01, 2009 | Mar. 31, 2009 |
CPL | |||
Local capital regulations | |||
Minimum core solvency ratio | 50% | ||
Minimum comprehensive solvency ratio | 100% | ||
Malaysia | |||
Local capital regulations | |||
Minimum Supervisory Target Capital Level percentage | 130% | ||
Percentage of foreign equity ownership | 70% | 49% |
Capital - Asset management oper
Capital - Asset management operations (Details) - Asset management business - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Regulatory and other surplus | ||
Balance at 1 January | $ 522 | $ 453 |
Gains during the year | 187 | 266 |
Movement in capital requirement | 15 | 3 |
Capital injection | 3 | 6 |
Distributions made to the parent company | (214) | (201) |
Exchange and other movements | (47) | (5) |
Balance at 31 December | $ 466 | $ 522 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | $ 478 | ||
Removal of discontinued US operations | $ (309) | ||
Additions | 83 | 95 | |
Depreciation and impairment charge | (145) | (169) | |
Disposals, transfers and lease modifications | 24 | (22) | |
Effect of movements in exchange rates | (21) | (10) | |
Property, plant and equipment at end of year | 419 | 478 | |
Right-of-use assets, property assets | 267 | 311 | |
Right-of-use assets, non-property assets | 4 | 4 | |
Right-of-use assets | 271 | 315 | |
Undiscounted value of lease payments not recognised in the lease liabilities | 189 | 201 | |
Sublease rental income | 6 | 6 | |
Capital expenditures | 34 | 36 | $ 57 |
Operating segments | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 34 | 35 | |
Operating segments | Hong Kong | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 11 | 9 | |
Operating segments | Indonesia | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 1 | 1 | |
Operating segments | Malaysia | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 1 | 2 | |
Operating segments | Singapore | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 3 | 1 | |
Operating segments | Growth markets and other | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 16 | 19 | |
Operating segments | Eastspring | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 2 | 3 | |
Unallocated to a segment (central operations) | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Capital expenditures | 1 | ||
With-profits business | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Right-of-use assets | 105 | 128 | |
Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 1,200 | ||
Property, plant and equipment at end of year | 1,194 | 1,200 | |
Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (722) | ||
Property, plant and equipment at end of year | (775) | (722) | |
Group occupied property | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 23 | ||
Removal of discontinued US operations | (242) | ||
Depreciation and impairment charge | (1) | ||
Effect of movements in exchange rates | (1) | (1) | |
Property, plant and equipment at end of year | 22 | 23 | |
Group occupied property | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 33 | ||
Property, plant and equipment at end of year | 32 | 33 | |
Group occupied property | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (10) | ||
Property, plant and equipment at end of year | (10) | (10) | |
Tangible assets | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 140 | ||
Removal of discontinued US operations | (32) | ||
Additions | 34 | 36 | |
Depreciation and impairment charge | (39) | (45) | |
Disposals, transfers and lease modifications | (2) | ||
Effect of movements in exchange rates | (7) | (3) | |
Property, plant and equipment at end of year | 126 | 140 | |
Tangible assets | With-profits business | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 63 | ||
Property, plant and equipment at end of year | 53 | 63 | |
Tangible assets | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 489 | ||
Property, plant and equipment at end of year | 486 | 489 | |
Tangible assets | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (349) | ||
Property, plant and equipment at end of year | (360) | (349) | |
Right-of-use assets | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 315 | ||
Removal of discontinued US operations | (35) | ||
Additions | 49 | 59 | |
Depreciation and impairment charge | (106) | (123) | |
Disposals, transfers and lease modifications | 26 | (22) | |
Effect of movements in exchange rates | (13) | (6) | |
Property, plant and equipment at end of year | 271 | 315 | |
Right-of-use assets | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 678 | ||
Property, plant and equipment at end of year | 676 | 678 | |
Right-of-use assets | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (363) | ||
Property, plant and equipment at end of year | $ (405) | (363) | |
Continuing and discontinued operations | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 893 | ||
Property, plant and equipment at end of year | 893 | ||
Continuing and discontinued operations | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 1,772 | ||
Property, plant and equipment at end of year | 1,772 | ||
Continuing and discontinued operations | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (879) | ||
Property, plant and equipment at end of year | (879) | ||
Continuing and discontinued operations | Group occupied property | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 267 | ||
Property, plant and equipment at end of year | 267 | ||
Continuing and discontinued operations | Group occupied property | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 355 | ||
Property, plant and equipment at end of year | 355 | ||
Continuing and discontinued operations | Group occupied property | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (88) | ||
Property, plant and equipment at end of year | (88) | ||
Continuing and discontinued operations | Tangible assets | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 184 | ||
Property, plant and equipment at end of year | 184 | ||
Continuing and discontinued operations | Tangible assets | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 707 | ||
Property, plant and equipment at end of year | 707 | ||
Continuing and discontinued operations | Tangible assets | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | (523) | ||
Property, plant and equipment at end of year | (523) | ||
Continuing and discontinued operations | Right-of-use assets | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 442 | ||
Property, plant and equipment at end of year | 442 | ||
Continuing and discontinued operations | Right-of-use assets | Cost/Gross amount | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | 710 | ||
Property, plant and equipment at end of year | 710 | ||
Continuing and discontinued operations | Right-of-use assets | Accumulated depreciation | |||
Reconciliation of the carrying amount of property, plant and equipment | |||
Property, plant and equipment at beginning of year | $ (268) | ||
Property, plant and equipment at end of year | $ (268) |
Corporate transactions - Gain (
Corporate transactions - Gain (Loss) attaching to corporate transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Corporate transactions | |||
Gain (loss) attaching to corporate transactions | $ 55 | $ (35) | $ (30) |
Loss arising on reinsurance transaction undertaken by the Hong Kong business | (44) | (59) | 765 |
Total gain (loss) attaching to corporate transactions | 11 | (94) | $ 735 |
Jackson | |||
Corporate transactions | |||
Gain (loss) attaching to corporate transactions | $ 62 | $ 23 |
Corporate transactions - Discon
Corporate transactions - Discontinued operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Discontinued operations | ||||||
Financial assets available-for-sale | $ 266 | $ 909 | $ 266 | $ 909 | ||
Income statement | ||||||
Total revenue, net of reinsurance | (8,219) | 26,500 | $ 36,247 | |||
Total charges net of reinsurance | 9,672 | (23,834) | (33,585) | |||
Profit (loss) before tax | [1] | 1,482 | 3,018 | 3,179 | ||
Loss for the year | [2] | (5,027) | (283) | |||
Attributable to: | ||||||
Equity holders of the Company | (4,234) | (340) | ||||
Non-controlling interests | (793) | 57 | ||||
Loss for the year | [2] | (5,027) | (283) | |||
Total comprehensive income | ||||||
Loss for the year | [2] | (5,027) | (283) | |||
Other comprehensive loss: | ||||||
Valuation movements on available-for-sale debt securities, net of related tax and change in DAC | (125) | 273 | ||||
Valuation movements on available-for-sale debt securities recycled to profit or loss in the year | (62) | (23) | ||||
Total comprehensive (loss) income for the year | (7,068) | 9 | ||||
Attributable to: | ||||||
Equity holders of the Company | (6,283) | (40) | ||||
Non-controlling interests | (785) | 49 | ||||
Total comprehensive (loss) income for the year | (7,068) | 9 | ||||
Cash flows | ||||||
Net cash flows from discontinued operations | (1,621) | (339) | ||||
Cash and cash equivalents at beginning of year | 7,170 | 8,018 | 6,965 | |||
Cash and cash equivalents at end of year | $ 5,514 | $ 7,170 | 5,514 | 7,170 | 8,018 | |
Jackson | ||||||
Discontinued operations | ||||||
Economic interest | 9.20% | 18.40% | ||||
Voting interest | 9.20% | 18.50% | ||||
Financial assets available-for-sale | $ 266 | $ 683 | $ 266 | 683 | ||
Discontinued US operations | ||||||
Income statement | ||||||
Total revenue, net of reinsurance | 45,972 | 19,763 | ||||
Total charges net of reinsurance | (43,655) | (20,523) | ||||
Profit (loss) before tax | 2,317 | (760) | ||||
Tax (charge) credit | (363) | 477 | ||||
Profit (loss) after tax | 1,954 | (283) | ||||
Remeasurement to fair value | (8,259) | |||||
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) | 1,278 | |||||
Loss for the year | (5,027) | (283) | ||||
Attributable to: | ||||||
Equity holders of the Company | (4,234) | (340) | ||||
Non-controlling interests | (793) | 57 | ||||
Loss for the year | (5,027) | (283) | ||||
Total comprehensive income | ||||||
Loss for the year | (5,027) | (283) | ||||
Other comprehensive loss: | ||||||
Valuation movements on available-for-sale debt securities, net of related tax and change in DAC | (763) | 292 | ||||
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 | (1,278) | |||||
Other comprehensive (loss) income for the year | (2,041) | 292 | ||||
Total comprehensive (loss) income for the year | (7,068) | 9 | ||||
Attributable to: | ||||||
Equity holders of the Company | (6,283) | (40) | ||||
Non-controlling interests | (785) | 49 | ||||
Total comprehensive (loss) income for the year | (7,068) | 9 | ||||
Cash flows | ||||||
Net cash flows from operating activities | (423) | (807) | ||||
Net cash flows from investing activities | (2) | |||||
Net cash flows from financing activities | 2,329 | 470 | ||||
Cash divested upon demerger | (3,527) | |||||
Net cash flows from discontinued operations | (1,621) | (339) | ||||
Cash and cash equivalents at beginning of year | 1,621 | 1,960 | ||||
Cash and cash equivalents at end of year | $ 1,621 | |||||
Issuance of debt | 2,350 | |||||
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 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 2021 and 2020 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Post balance sheet events (Deta
Post balance sheet events (Details) £ in Millions | Jan. 20, 2023 GBP (£) |
Redemption of debt | |
Post balance sheet events | |
Redemption of notes | £ 300 |
Related party transactions (Det
Related party transactions (Details) - Michael Falcon $ in Millions | Apr. 05, 2021 USD ($) shares |
Related parties | |
Number of ADR retained | shares | 98,311 |
Jackson National Life | |
Related parties | |
Amount agreed to be paid | $ | $ 23.5 |
Commitments - Capital commitmen
Commitments - Capital commitments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments in infrastructure funds and alternative investment funds | ||
Contractual obligations and unfunded commitments | ||
Amount committed | $ 2,626 | $ 2,878 |
Investments in subsidiary und_3
Investments in subsidiary undertakings, joint ventures and associates - Aggregate carrying amounts of the investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment funds | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | $ 30,771 | $ 35,446 |
Investment funds | Equity securities and holdings in collective investment schemes | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | 30,771 | 35,446 |
Other structured entities | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | 370 | 251 |
Other structured entities | Debt securities | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | $ 370 | $ 251 |
Investments in subsidiary und_4
Investments in subsidiary undertakings, joint ventures and associates - Equity method and fair value through profit or loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in subsidiary undertakings, joint ventures and associates | |||
Fair value of associates accounted for at fair value through profit or loss | $ 300 | $ 600 | |
Share of profit from joint ventures and associates, net of related tax | 29 | 352 | $ 517 |
Other comprehensive income in the joint ventures and associates | 0 | ||
Unrecognised share of losses of a joint venture | 0 | ||
Unrecognised share of losses of a associate | 0 | ||
Contingent liabilities in relation to interests in joint ventures | 0 | ||
Contingent liabilities in relation to interests in associates | 0 | ||
Capital commitments in relation to interests in joint ventures | 0 | ||
Capital commitments in relation to interests in associates | 0 | ||
Shareholder-backed | Operating segments | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | 29 | 352 | 517 |
Shareholder-backed | Operating segments | CPL | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | (144) | 278 | 394 |
Shareholder-backed | Operating segments | Hong Kong | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | 9 | 3 | |
Shareholder-backed | Operating segments | Malaysia | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | 24 | 28 | 30 |
Shareholder-backed | Operating segments | Growth markets and other | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | 5 | (110) | (27) |
Other items included in share of profit from joint ventures and associates, net of related tax | 15 | (38) | (103) |
Shareholder-backed | Operating segments | Insurance operations | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | (115) | 205 | 400 |
Shareholder-backed | Operating segments | Eastspring | |||
Investments in subsidiary undertakings, joint ventures and associates | |||
Share of profit from joint ventures and associates, net of related tax | $ 144 | $ 147 | $ 117 |
Investments in subsidiary und_5
Investments in subsidiary undertakings, joint ventures and associates - Financial position (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of financial position: | ||
Assets | $ 165,942 | $ 199,102 |
Shareholders' equity | 16,960 | 17,088 |
The above amounts of assets and liabilities include the following: | ||
Cash and cash equivalents | 5,514 | 7,170 |
Financial liabilities (excluding trade and other payables and provisions) | 18,628 | 20,858 |
CPL | ||
Statement of financial position: | ||
Assets | 31,608 | 29,237 |
Liabilities (including non-controlling interest) | 29,330 | 26,523 |
Shareholders' equity | 2,278 | 2,714 |
The above amounts of assets and liabilities include the following: | ||
Cash and cash equivalents | 561 | 422 |
Financial liabilities (excluding trade and other payables and provisions) | $ 985 | $ 938 |
Investments in subsidiary und_6
Investments in subsidiary undertakings, joint ventures and associates - Income statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income statement: | |||
Revenue | $ 21,940 | $ 23,014 | $ 22,485 |
Profit for the year after tax | 1,007 | (2,813) | 2,185 |
The above profit for the year includes the following | |||
Depreciation and amortisation | (980) | (830) | (725) |
Interest income | 2,722 | 2,570 | 1,997 |
Income tax credit (charge) | (475) | (804) | (711) |
CPL | |||
Income statement: | |||
Revenue | 5,778 | 7,374 | 5,492 |
Profit for the year after tax | (248) | 453 | 599 |
The above profit for the year includes the following | |||
Depreciation and amortisation | (106) | (86) | (81) |
Interest income | 599 | 465 | 378 |
Interest expense | (3) | (2) | (2) |
Income tax credit (charge) | $ 40 | $ (84) | $ (166) |
Investments in subsidiary und_7
Investments in subsidiary undertakings, joint ventures and associates - Reconciliation of carrying amounts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of carrying amount | ||
Carrying amount of the Group's interest in the joint venture (50%) | $ 1,915 | $ 2,183 |
CPL | ||
Reconciliation of carrying amount | ||
Total net assets | 2,278 | 2,714 |
Proportion owned by the joint venture partner (50%) | $ 1,139 | $ 1,357 |
Interest in joint ventures held by partner (as a percent) | 50% | 50% |
Carrying amount of the Group's interest in the joint venture (50%) | $ 1,139 | $ 1,357 |
Interest in joint ventures (as a percent) | 50% | 50% |
Dividends received | $ 0 | $ 57 |
Investments in subsidiary und_8
Investments in subsidiary undertakings, joint ventures and associates - Ownership percentage (Details) | Dec. 31, 2022 | Dec. 24, 2016 | Dec. 23, 2016 |
Aberdeen Cash Creation Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 30.62% | ||
Aberdeen Standard Global Opportunities Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 34.61% | ||
Aberdeen Standard Singapore Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 62.18% | ||
AC Financial Partners Limited Partnership | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Alternatives North America Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
BOCHK Aggressive Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 47.75% | ||
BOCHK Balanced Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 41.47% | ||
BOCHK China Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 73.71% | ||
BOCHK Conservative Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.71% | ||
BOCHK US Dollar Money Market Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 21.91% | ||
BOCI-Prudential Asset Management Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 36% | ||
BOCI-Prudential Trustee Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 36% | ||
Cathay High Yield Ex China Cash Pay 1-5 Year 2% Issuer Capped ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.71% | ||
CITIC-CP Asset Management Co., Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 26.95% | ||
CITIC-Prudential Fund Management Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 49% | ||
CITIC-Prudential Life Insurance Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 50% | ||
Eastspring Al-Wara' Investments Berhad | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Asia Pacific High Yield Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 37.57% | ||
Eastspring Asset Management (Thailand) Co., Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 59.50% | ||
Eastspring Asset Management Korea Co. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investment K-Short Term Bond Alpha Securities Investment Trust (Bond Balanced) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 27.54% | ||
Eastspring Investment Management (Shanghai) Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments - Asia Opportunities Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.97% | ||
Eastspring Investments - Global Growth Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 59.04% | ||
Eastspring Investments - Global Low Volatility Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 96.36% | ||
Eastspring Investments - Global Technology Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 82.06% | ||
Eastspring Investments - Pan European Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 61.34% | ||
Eastspring Investments - US High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 46.85% | ||
Eastspring Investments - US Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 68.91% | ||
Eastspring Investments - World Value Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 95.64% | ||
Eastspring Investments (Hong Kong) Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments (Luxembourg) S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments (Singapore) Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Asia Pacific Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 93.92% | ||
Eastspring Investments Asia Pacific ex-Japan Target Return Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 75.84% | ||
Eastspring Investments Asia Real Estate Multi Asset Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 73.95% | ||
Eastspring Investments Asia Sustainable Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 93.97% | ||
Eastspring Investments Asian Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.30% | ||
Eastspring Investments Asian Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 91.58% | ||
Eastspring Investments Asian Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.97% | ||
Eastspring Investments Asian Equity Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 87.52% | ||
Eastspring Investments Asian High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 44.35% | ||
Eastspring Investments Asian Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 90.06% | ||
Eastspring Investments Asian Low Volatility Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 89.01% | ||
Eastspring Investments Asian Multi Factor Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 90.94% | ||
Eastspring Investments Berhad | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments China A Shares Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 63.69% | ||
Eastspring Investments Dragon Peacock Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 95.82% | ||
Eastspring Investments Emerging Markets Star Players | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 40.88% | ||
Eastspring Investments Equity Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 40.95% | ||
Eastspring Investments European Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.91% | ||
Eastspring Investments Fund Management Limited Liability Company | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Global Emerging Markets Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.38% | ||
Eastspring Investments Global Emerging Markets Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 62.79% | ||
Eastspring Investments Global Emerging Markets ex-China Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.96% | ||
Eastspring Investments Global Equity Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.19% | ||
Eastspring Investments Global Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 40.22% | ||
Eastspring Investments Global Market Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.75% | ||
Eastspring Investments Global Multi Asset Income Plus Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Greater China Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 90.60% | ||
Eastspring Investments Group Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Incorporated | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments India Consumer Equity Open Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments India Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 79.97% | ||
Eastspring Investments India Equity Open Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments India Infrastructure Equity Open Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments MY Focus Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 28.33% | ||
Eastspring Investments Private Fixed Income Fund Number 1 | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 87.11% | ||
Eastspring Investments Services Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments SICAV-FIS - Alternative Investments Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments SICAV-FIS - Asia Pacific Loan Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Syariah Equity Islamic Asia Pacific USD Kelas B | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 88.02% | ||
Eastspring Investments Unit Trusts - Dragon Peacock Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.69% | ||
Eastspring Investments Unit Trusts Singapore ASEAN Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.74% | ||
Eastspring Investments Unit Trusts Singapore Select Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 66.05% | ||
Eastspring Investments US Corporate Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 60.04% | ||
Eastspring Investments US High Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 87.42% | ||
Eastspring Investments Vietnam Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 76.79% | ||
Eastspring Investments-Global Emerging Markets Fundamental Value Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.96% | ||
Eastspring Investments-Japan Sustainable Value Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Overseas Investment Fund Management (Shanghai) Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Private Equity Fund 2 | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.99% | ||
Eastspring Securities Investment Trust Co., Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.54% | ||
Eastspring Singapore Alternatives VCC | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Syariah Fixed Income USD Kelas A | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 69.23% | ||
FCP Ecobank Actions Uemoa | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 43.63% | ||
First Sentier Global Property Securities Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 67.50% | ||
FSSA China Focus Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 67.76% | ||
Fubon 1-5 Years US High Yield Bond Ex China | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 61.05% | ||
Fubon China Bond Umbrella Fund - Fubon China Quality Rmb Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 23.37% | ||
Fubon China Currency Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 35.49% | ||
Fuh Hwa 1-5 Yr High Yield ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 44.22% | ||
Fuh Hwa Emerging Market RMB Fixed Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 46.42% | ||
Fuh Hwa Rmb Money Market Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 37.52% | ||
Furnival Insurance Company PCC Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
GIS Total Return Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 27.53% | ||
GS Twenty Two Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
HSBC Asia Pacific Ex Japan Sustainable Equity UCITS ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 63.65% | ||
HSBC Senior Global Infrastructure Debt Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
ICICI Prudential Asset Management Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 49% | ||
ICICI Prudential Life Insurance Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 22.07% | ||
ICICI Prudential Pension Funds Management Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 22.07% | ||
ICICI Prudential Trust Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 49% | ||
India Innovation High Growth EQ QII | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Invesco Fixed Maturity Selective Emerging Market Bonds 2024 | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Invesco Select 6 Year Maturity Global Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
iShares Core MSCI Asia | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 61.46% | ||
iShares Global High Yield Corp Bond UCITS ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 65.61% | ||
iShares MSCI Europe ESG Enhanced UCITS ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51.34% | ||
iShares MSCI Korea UCITS ETF USD (Acc) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 53.66% | ||
iShares MSCI USA ESG Enhanced UCITS ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 41.86% | ||
KKP Active Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 35.38% | ||
Krungsri Greater China Equity Hedged Dividend Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 31.10% | ||
Lasalle Property Securities SICAV-FIS | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.97% | ||
M&G Asia Property Trust | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
M&G Real Estate Asia Holding Company Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 33% | ||
Manulife Asia Pacific Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 57.81% | ||
Manulife China Dim Sum High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 22.54% | ||
Manulife China Offshore Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 85.22% | ||
Manulife Taiwan Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 20.53% | ||
Manulife USD High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 29.47% | ||
Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Nomura Six Years Fixed Maturity Emerging Market Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 41.88% | ||
Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.86% | ||
North Sathorn Holdings Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
PCA IP Services Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
PCA Life Assurance Co., Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.79% | ||
PCA Reinsurance Co. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
PineBridge US Dual Core Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 37.37% | ||
Principal Global Silver Age Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 22.89% | ||
Pru Life Insurance Corporation of U.K. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Pru Life UK Asset Management and Trust Corporation | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudence Foundation | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential (Cambodia) Life Assurance Plc | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential (US Holdco 1) Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Africa Holdings Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Africa Services Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Assurance Company Singapore (Pte) Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Assurance Malaysia Berhad | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
Percentage of consolidation of entity | 100% | ||
Prudential Assurance Uganda Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential BeGeneral Insurance Cote d'Ivoire S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
Prudential Belife Insurance Cote d'Ivoire S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
Prudential Beneficial General Insurance Cameroon S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 50.71% | ||
Prudential Beneficial Life Insurance Cameroon S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
Prudential Beneficial Life Insurance Togo S.A. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 50.99% | ||
Prudential BSN Takaful Berhad | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 49% | 49% | 70% |
Prudential Corporation Holdings Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Financial Advisers Singapore Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Financial Partners (Asia) Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Financial Partners HK Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential General Insurance Hong Kong Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Group Secretarial Services HK Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Group Secretarial Services Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Holdings Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Hong Kong Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential International Treasury Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential IP Services Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Life Assurance (Lao) Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Life Assurance (Thailand) Public Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.93% | ||
Prudential Life Assurance Kenya Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Life Assurance Zambia Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Life Insurance Ghana Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Life Vault Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Mauritius Holdings Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Myanmar Life Insurance Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Pensions Management Zambia Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 49% | ||
Prudential Services Asia Sdn. Bhd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Services Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Services Philippines Corporation | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Services Singapore Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Singapore Holdings Pte. Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Technology and Services India Private Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Vietnam Assurance Private Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Wealth Holdings Company Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Wealth Management Singapore Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Prudential Zenith Life Insurance Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
PRUInvest PHP Liquid Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.84% | ||
PRUInvest PH Equity Index Tracker Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
PT Prudential Sharia Life Assurance | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 94.62% | ||
PT. Eastspring Investments Indonesia | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.95% | ||
PT. Prudential Life Assurance | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 94.62% | ||
Pulse Ecosystems Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Pulse Wealth Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Reksa Dana Eastspring IDR Fixed Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.81% | ||
Reksa Dana Eastspring Investments Cash Reserve | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 88.93% | ||
Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 66.32% | ||
Reksa Dana Syariah Eastspring Syariah Money Market Khazanah | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.30% | ||
Reksa Dana Syariah Penyertaan Terbatas Bahana Syariah Bumn Fund IV | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.01% | ||
Rhodium Investment Funds - Singapore Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.75% | ||
Rhodium Passive Long Dated Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.87% | ||
Robeco QI European Active Index Equities | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 94.55% | ||
Schroder Asian Investment Grade Credit | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 37.95% | ||
Schroder Emerging Markets Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 67.30% | ||
Schroder Multi-Asset Revolution | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 48.29% | ||
Schroder US Dollar Money Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 34.92% | ||
Scotts Spazio Pte. Ltd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 45% | ||
Shenzhen Prudential Technology Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Sinopac RMB Money Market Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 27.12% | ||
Sri Han Suria Sdn. Bhd. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51% | ||
Staple Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Templeton Asian Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 31.40% | ||
Threadneedle (Lux) - Global Emerging Market Equities | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 69.10% | ||
United Global Innovation Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 21.33% | ||
UOB Smart Global Healthcare Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.04% | ||
UOB Smart Japan Small and Mid Cap Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 29.79% | ||
UOB Smart Millennium Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 38.65% | ||
USD Investment Grade Infrastructure Debt Fund SCSp | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 21.53% | ||
Prudential Corporation Asia Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held (as a percent) | 100% | ||
Prudential Group Holdings Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held (as a percent) | 100% |
Investments in subsidiary und_9
Investments in subsidiary undertakings, joint ventures and associates - Issued capital of subsidiaries (Details) | Dec. 31, 2022 £ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 Rp / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 RM / shares shares | Dec. 31, 2021 £ / shares |
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Par value per share | £ / shares | £ 0.05 | £ 0.05 | ||||
Prudential Assurance Company Singapore (Pte) Limited | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Par value per share | $ / shares | $ 1 | |||||
Prudential Assurance Company Singapore (Pte) Limited | Ordinary shares | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Issued and fully paid up share | 526,557,000 | 526,557,000 | 526,557,000 | 526,557,000 | 526,557,000 | |
PT. Prudential Life Assurance | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Par value per share | Rp / shares | Rp 1,000,000 | |||||
PT. Prudential Life Assurance | Ordinary shares | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Issued and fully paid up share | 105,500 | 105,500 | 105,500 | 105,500 | 105,500 | |
PT. Prudential Life Assurance | Preference shares | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Issued and fully paid up share | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | |
Prudential Hong Kong Limited | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Par value per share | $ / shares | $ 1 | |||||
Prudential Hong Kong Limited | Ordinary shares | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Issued and fully paid up share | 3,641,479,873 | 3,641,479,873 | 3,641,479,873 | 3,641,479,873 | 3,641,479,873 | |
Prudential Assurance Malaysia Berhad | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Par value per share | RM / shares | RM 1 | |||||
Prudential Assurance Malaysia Berhad | Ordinary shares | ||||||
Investments in subsidiaries, joint ventures, associates and significant holdings | ||||||
Issued and fully paid up share | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Condensed Financial Informati_2
Condensed Financial Information of Registrant Prudential plc - Profit and Loss Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Profit and Loss Accounts | ||||
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 1,482 | $ 3,018 | $ 3,179 |
Tax (charge) credit on profit on ordinary activities | (475) | (804) | (711) | |
Profit (loss) attributable to equity holders of the company | 998 | (2,042) | 2,118 | |
Items that will not be reclassified to profit or loss | ||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (187) | 250 | ||
Total comprehensive (loss) income, attributable to equity holders of the Company | 280 | (4,006) | 2,657 | |
Prudential plc | ||||
Profit and Loss Accounts | ||||
Investment income, including dividends received from subsidiary undertakings | 800 | 3,642 | 539 | |
Investment expenses and charges | (207) | (328) | (14) | |
Loss on revaluation of Jackson upon demerger | (439) | |||
Corporate expenditure | (158) | (244) | (572) | |
Foreign currency exchange gains (losses) | 25 | 11 | (19) | |
Profit before tax (being tax attributable to shareholders' and policyholders' returns) | 460 | 2,642 | (66) | |
Tax (charge) credit on profit on ordinary activities | (5) | 6 | (19) | |
Profit (loss) attributable to equity holders of the company | 455 | 2,648 | (85) | |
Items that will not be reclassified to profit or loss | ||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (125) | 273 | ||
Other comprehensive income for the period, net of related tax | (125) | 273 | ||
Total comprehensive (loss) income, attributable to equity holders of the Company | $ 330 | $ 2,921 | $ (85) | |
[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 under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders. |
Condensed Financial Informati_3
Condensed Financial Information of Registrant Prudential plc - Statements of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Other debtors | $ 1,694 | $ 1,779 |
Cash at bank and in hand | 1,878 | 1,902 |
Liabilities: amounts falling due within one year | ||
Accruals and deferred income | (539) | (565) |
Capital and reserves | ||
Shareholders' funds | 16,960 | 17,088 |
Prudential plc | ||
Fixed assets | ||
Investments in subsidiary undertakings | 13,178 | 13,114 |
Current assets | ||
Amounts owed by subsidiary undertakings | 7,501 | 7,013 |
Other debtors | 9 | |
Other investments: equity securities - fair value through other comprehensive income | 266 | 683 |
Cash at bank and in hand | 45 | 1,711 |
Total current assets | 7,812 | 9,416 |
Liabilities: amounts falling due within one year | ||
Subordinated liabilities | (21) | (1,725) |
Debenture loans | (361) | |
Commercial paper | (501) | (500) |
Amounts owed to subsidiary undertakings | (614) | (161) |
Tax payable | (9) | (7) |
Accruals and deferred income | (63) | (85) |
Total current liabilities | (1,569) | (2,478) |
Net current assets | 6,243 | 6,938 |
Total assets less current liabilities | 19,421 | 20,052 |
Liabilities: amounts falling due after more than one year | ||
Subordinated liabilities | (2,265) | (2,350) |
Debenture loans | (1,614) | (1,702) |
Other borrowings | (350) | |
Total non-current liabilities | (3,879) | (4,402) |
Total net assets | 15,542 | 15,650 |
Capital and reserves | ||
Share capital | 182 | 182 |
Share premium | 5,006 | 5,010 |
Profit and loss account | 10,354 | 10,458 |
Shareholders' funds | $ 15,542 | $ 15,650 |
Condensed Financial Informati_4
Condensed Financial Information of Registrant Prudential plc - Statements of Changes in Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at beginning of year | $ 17,264 | $ 22,119 | $ 19,669 |
Total comprehensive income for the year | |||
Profit for the year | 998 | (2,042) | 2,118 |
Total comprehensive (loss) income, attributable to equity holders of the Company | 280 | (4,006) | 2,657 |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | (4) | 2,382 | 13 |
Share-based payment transactions | 24 | 46 | 89 |
Demerger dividend in specie of Jackson | (1,735) | ||
Dividends | (482) | (430) | (832) |
Balance at end of year | 17,127 | 17,264 | 22,119 |
Share capital | |||
Balance at beginning of year | 182 | 173 | 172 |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | 9 | 1 | |
Balance at end of year | 182 | 182 | 173 |
Share premium | |||
Balance at beginning of year | 5,010 | 2,637 | 2,625 |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | (4) | 2,373 | 12 |
Balance at end of year | 5,006 | 5,010 | 2,637 |
Retained earnings | |||
Balance at beginning of year | 10,216 | 14,424 | 13,575 |
Transactions with owners, recorded directly in equity | |||
Share-based payment transactions | 24 | 46 | 89 |
Demerger dividend in specie of Jackson | (1,735) | ||
Dividends | (474) | (421) | (814) |
Balance at end of year | 10,810 | 10,216 | 14,424 |
Prudential plc | |||
Balance at beginning of year | 15,650 | 12,286 | 13,173 |
Total comprehensive income for the year | |||
Profit for the year | 455 | 2,648 | (85) |
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (125) | 273 | |
Total comprehensive (loss) income, attributable to equity holders of the Company | 330 | 2,921 | (85) |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | (4) | 2,382 | 13 |
Share-based payment transactions | 40 | 217 | (1) |
Demerger dividend in specie of Jackson | (1,735) | ||
Dividends | (474) | (421) | (814) |
Total contributions by and distributions to owners | (438) | 443 | (802) |
Balance at end of year | 15,542 | 15,650 | 12,286 |
Prudential plc | Share capital | |||
Balance at beginning of year | 182 | 173 | 172 |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | 9 | 1 | |
Total contributions by and distributions to owners | 9 | 1 | |
Balance at end of year | 182 | 182 | 173 |
Prudential plc | Share premium | |||
Balance at beginning of year | 5,010 | 2,637 | 2,625 |
Transactions with owners, recorded directly in equity | |||
New share capital subscribed | (4) | 2,373 | 12 |
Total contributions by and distributions to owners | (4) | 2,373 | 12 |
Balance at end of year | 5,006 | 5,010 | 2,637 |
Prudential plc | Retained earnings | |||
Balance at beginning of year | 10,458 | 9,476 | 10,376 |
Total comprehensive income for the year | |||
Profit for the year | 455 | 2,648 | |
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (125) | 273 | |
Total comprehensive (loss) income, attributable to equity holders of the Company | 330 | 2,921 | (85) |
Transactions with owners, recorded directly in equity | |||
Share-based payment transactions | 40 | 217 | (1) |
Demerger dividend in specie of Jackson | (1,735) | ||
Dividends | (474) | (421) | (814) |
Total contributions by and distributions to owners | (434) | (1,939) | (815) |
Balance at end of year | $ 10,354 | $ 10,458 | $ 9,476 |
Condensed Financial Informati_5
Condensed Financial Information of Registrant Prudential plc - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating activities | ||||
Interest paid | $ (16) | $ (11) | $ (25) | |
Taxes (paid) received | (449) | (453) | (551) | |
Financing activities | ||||
Issues of ordinary share capital | (4) | 2,382 | 13 | |
Issuance of core structural borrowings | [1] | 346 | 995 | 983 |
Redemption of core structural borrowings | [1] | (2,075) | (1,250) | |
Investing activities | ||||
Disposal of Jackson shares | [2] | 293 | 83 | |
Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities before interest and tax | ||||
Profit (loss) before tax | [3] | 1,482 | 3,018 | 3,179 |
Prudential plc | ||||
Operating activities | ||||
Net cash inflow from operating activities before interest and tax | 664 | 417 | 273 | |
Interest paid | (204) | (328) | (320) | |
Taxes (paid) received | (4) | (13) | 93 | |
Equity dividends paid | (474) | (421) | (814) | |
Net cash outflow from operating activities | (18) | (345) | (768) | |
Financing activities | ||||
Issues of ordinary share capital | (4) | 2,383 | 13 | |
Issuance of core structural borrowings | 346 | 995 | 983 | |
Redemption of core structural borrowings | (2,075) | (1,250) | ||
Movement in commercial paper and other borrowings to support a short-term fixed income securities program | 1 | (1) | (19) | |
Dividend income and returns of capital from investment in subsidiary undertakings | 215 | 112 | ||
Movement in share based payment receivable | (111) | |||
Capitalisation of amount owed by subsidiary | (62) | |||
Movement in net amount owed by subsidiary undertakings | (36) | (374) | (370) | |
Net cash outflow (inflow) from financing activities | (1,941) | 1,968 | 719 | |
Investing activities | ||||
Disposal of Jackson shares | 293 | 83 | ||
Net cash inflow from investing activities | 293 | 83 | ||
Net cash (outflow) inflow for the year | (1,666) | 1,706 | (49) | |
Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities before interest and tax | ||||
Profit (loss) before tax | 460 | 2,642 | (66) | |
Add back: interest charged to profit or loss | 207 | 328 | 320 | |
Adjustments for non-cash items: | ||||
Non-cash dividends paid | (2,968) | |||
Revaluation of Jackson on distribution in 2021 | 439 | |||
Gain on realisation of Jackson shares | (23) | |||
Foreign currency exchange and other movements | 8 | (6) | 8 | |
Decrease (increase) in debtors | 9 | (4) | (1) | |
(Increase) decrease in creditors | (20) | 9 | 12 | |
Net cash inflow from operating activities before interest and tax | $ 664 | $ 417 | $ 273 | |
[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. 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 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 under IAS 12. Consequently, the IFRS profit before tax measure is not representative of pre-tax profit attributable to shareholders as it is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of with-profits funds after adjusting for tax borne by policyholders. |
Condensed Financial Informati_6
Condensed Financial Information of Registrant Prudential plc - Notes (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 02, 2023 USD ($) | Jan. 20, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Additional information | |||||||
Profit (loss) for the year | $ 998 | $ (2,042) | $ 2,118 | ||||
Shareholders' equity | $ 16,960 | $ 17,088 | 16,960 | 17,088 | |||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (187) | 250 | |||||
Redemption of debt | |||||||
Additional information | |||||||
Redemption of notes | £ | £ 300 | ||||||
Jackson Financial Inc | |||||||
Additional information | |||||||
Economic interest | 9.20% | 18.40% | |||||
Voting interest | 9.20% | 18.50% | |||||
Accounting policy difference | |||||||
Additional information | |||||||
Profit (loss) for the year | 108 | 28 | (18) | ||||
Shareholders' equity | $ 66 | $ 19 | 66 | 19 | |||
Share in IFRS amount of the Group | |||||||
Additional information | |||||||
Profit (loss) for the year | 435 | (4,718) | 2,221 | ||||
Shareholders' equity | 1,352 | 1,419 | 1,352 | 1,419 | |||
Prudential plc | |||||||
Additional information | |||||||
Dividends received by parent company from consolidated subsidiary undertakings | 708 | 3,597 | 406 | ||||
Profit (loss) for the year | 455 | 2,648 | $ (85) | ||||
Shareholders' equity | $ 15,542 | $ 15,650 | 15,542 | 15,650 | |||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | (125) | 273 | |||||
Prudential plc | Redemption of debt | |||||||
Additional information | |||||||
Redemption of notes | £ | £ 300 | ||||||
Prudential plc | Transfer of debt | |||||||
Additional information | |||||||
Gain on transfer of external debt instruments | $ 400 | ||||||
Prudential plc | Jackson Financial Inc | |||||||
Additional information | |||||||
Economic interest | 9.20% | 18.40% | |||||
Voting interest | 9.20% | 18.50% | |||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | $ (125) | $ 273 |