Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IFRS Statement [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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 | 2,753,520,756 | |
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 | 2023 | |
Amendment Flag | false | |
Auditor Name | EY LLP | KPMG LLP |
Auditor Location | London, UK | London, United Kingdom |
Auditor Firm ID | 1438 | 1118 |
Document Financial Statement Error Correction [Flag] | false | |
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, 2023 | Dec. 31, 2022 | [1] | ||
Continuing operations: | ||||
Insurance revenue | $ 9,371 | $ 8,549 | ||
Insurance service expense: | ||||
Claims incurred | (2,913) | (2,563) | ||
Directly attributable expenses incurred | (1,258) | (1,221) | ||
Amortisation of insurance acquisition cash flows | (2,745) | (2,453) | ||
Other insurance service expenses | (197) | (30) | ||
Insurance service expense | (7,113) | (6,267) | ||
Net expense from reinsurance contracts held | (171) | (105) | ||
Insurance service result | 2,087 | 2,177 | ||
Interest revenue calculated using the effective interest method | 340 | 237 | ||
Other investment return on financial investments | 9,423 | (29,617) | ||
Investment return | 9,763 | (29,380) | ||
Fair value movement on investment contract liabilities | (24) | 67 | ||
Net insurance and reinsurance finance income (expense) | ||||
Net finance (expense) income from insurance contracts | (8,839) | 28,623 | ||
Net finance income (expense) from reinsurance contracts held | 191 | (1,193) | ||
Net insurance and reinsurance finance income (expense) | (8,648) | 27,430 | ||
Net investment result | 1,091 | (1,883) | ||
Other revenue | 369 | 436 | ||
Non-insurance expenditure | (990) | (1,019) | ||
Finance costs: interest on core structural borrowings of shareholder-financed businesses | (172) | (200) | ||
(Loss) gain attaching to corporate transactions | (22) | 55 | ||
Share of loss from joint ventures and associates, net of related tax | (91) | (85) | ||
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | [2] | 2,272 | (519) | [3] |
Tax charge attributable to policyholders' returns | (175) | (124) | ||
Profit (loss) before tax attributable to shareholders' returns | 2,097 | (643) | ||
Total tax charge attributable to shareholders' and policyholders' returns | (560) | (478) | ||
Remove tax charge attributable to policyholders' returns | 175 | 124 | ||
Tax charge attributable to shareholders' returns | (385) | (354) | ||
Profit (loss) for the year | 1,712 | (997) | ||
Attributable to: | ||||
Profit (loss) attributable to equity holders of the Company | 1,701 | (1,007) | ||
Profit (loss) attributable to non-controlling interests | 11 | 10 | ||
Profit (loss) for the year | $ 1,712 | $ (997) | ||
Basic | ||||
Basic earnings per share | $ 0.621 | $ (0.368) | ||
Diluted | ||||
Diluted earnings per share | $ 0.619 | $ (0.368) | ||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. 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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Consolidated income statement I
Consolidated income statement IFRS 4 $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) $ / shares | ||
Continuing operations: | ||
Gross premiums earned | $ 24,217 | |
Outward reinsurance premiums | (1,844) | |
Earned premiums, net of reinsurance | 22,373 | |
Investment return | 3,486 | |
Other income | 641 | |
Total revenue, net of reinsurance | 26,500 | |
Benefits and claims | (17,738) | |
Reinsurers' share of benefits and claims | (971) | |
Movement in unallocated surplus of with-profits funds | (202) | |
Benefits and claims and movement in unallocated surplus of with-profits, net of reinsurance | (18,911) | |
Acquisition costs and other expenditure | (4,560) | |
Finance costs: interest on core structural borrowings of shareholder-financed businesses | (328) | |
Loss attaching to corporate transactions | (35) | |
Total charges net of reinsurance | (23,834) | |
Share of profit from joint ventures and associates, net of related tax | 352 | |
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | 3,018 | [1] |
Tax charge attributable to policyholders' returns | (342) | |
Profit (loss) before tax attributable to shareholders' returns | 2,676 | |
Total tax charge attributable to shareholders' and policyholders' returns | (804) | |
Remove tax charge attributable to policyholders' returns | 342 | |
Tax charge attributable to shareholders' returns | (462) | |
Profit (loss) after tax from continuing operations | 2,214 | [2],[3] |
Loss after tax from discontinued US operations | (5,027) | [4] |
Profit (loss) for the year | (2,813) | |
Attributable to: | ||
Equity holders of the Company: From continuing operations | 2,192 | |
Equity holders of the Company: Based on loss from discontinued US operations | (4,234) | |
Profit (loss) attributable to equity holders of the Company | (2,042) | |
Non-controlling interests: From continuing operations | 22 | |
Non-controlling interests: From discontinued US operations | (793) | |
Profit (loss) attributable to non-controlling interests | (771) | |
Profit (loss) for the year | $ (2,813) | |
Basic | ||
Based on profit continuing operations (in USD per share) | $ / shares | $ 0.834 | |
Based on loss from discontinued US operations (in USD per share) | $ / shares | (1.611) | [4] |
Total basic earnings per share (in USD per share) | $ / shares | (0.777) | |
Diluted | ||
Based on profit continuing operations (in USD per share) | $ / shares | 0.834 | |
Based on loss from discontinued US operations (in USD per share) | $ / shares | (1.611) | [4] |
Total diluted earnings per share (in USD per share) | $ / shares | $ (0.777) | |
[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. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. Discontinued operations for 2021 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Continuing operations: | ||||||
Profit (loss) for the year | $ 1,712 | $ (997) | [1],[2] | $ 2,214 | [1],[3] | |
Other comprehensive income (loss): | ||||||
Exchange movements arising during the year | (135) | (613) | [1] | (180) | [1] | |
Valuation movements on retained interest in Jackson classified as available-for-sale securities: | ||||||
Unrealised (loss) gain arising during the year | [1],[4] | (125) | 273 | |||
Deduct net gains included in the income statements on disposal | [1],[4] | (62) | (23) | |||
Valuation movements on retained interest in Jackson classified as available-for-sale under IAS 39 | [1],[4] | (187) | 250 | |||
Total items that may be reclassified subsequently to profit or loss | (135) | (800) | [1] | 70 | [1] | |
Valuation movements on retained interest in Jackson classified as fair value through other comprehensive income under IFRS 9 | [4] | 8 | ||||
Total items that will not be reclassified subsequently to profit or loss | 8 | |||||
Total comprehensive income (loss) from continuing operations | 1,585 | (1,797) | [1] | 2,284 | [1],[3] | |
Total comprehensive loss from discontinued US operations | [1],[3] | (7,068) | ||||
Total comprehensive income (loss) for the year | 1,585 | (1,797) | [1],[2] | (4,784) | [1],[3] | |
Equity holders of the Company: | ||||||
From continuing operations | 1,585 | (1,797) | [1] | 2,277 | [1] | |
From discontinued US operations | [1] | (6,283) | ||||
Total comprehensive (loss) income, attributable to equity holders of the Company | 1,585 | (1,797) | [1] | (4,006) | [1] | |
Non-controlling interests | ||||||
From continuing operations | [1] | 7 | ||||
From discontinued US operations | [1] | (785) | ||||
Total comprehensive (loss) income, attributable to non-controlling interests | [1] | (778) | ||||
Total comprehensive income (loss) for the year | $ 1,585 | $ (1,797) | [1],[2] | $ (4,784) | [1],[3] | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. On the adoption of IFRS 9 at 1 January 2023, the Group elected to measure its retained interest in the equity securities of Jackson at fair value through other comprehensive income. The Group has subsequently disposed of its remaining interest in Jackson in 2023. In 2022 and 2021, these securities were measured at available-for-sale under IAS 39. |
Consolidated statement of chang
Consolidated statement of changes in equity - USD ($) $ in Millions | Shareholders' equity | Share capital | Share premium | Retained earnings | Translation reserve | Fair value reserve under IFRS 9 | Available-for-sale securities reserves | Non-controlling interests | Total | |||||||||
Reserves | ||||||||||||||||||
Profit (loss) for the year | [1] | $ 2,192 | $ 2,192 | $ 22 | $ 2,214 | [2] | ||||||||||||
Other comprehensive (loss) income | [1] | 85 | $ (165) | $ 250 | (15) | 70 | ||||||||||||
Total comprehensive income (loss) from continuing operations | [1] | 2,277 | 2,192 | (165) | 250 | 7 | 2,284 | [2] | ||||||||||
Total comprehensive loss from discontinued US operations | [1] | (6,283) | (4,234) | 463 | (2,512) | (785) | (7,068) | [2] | ||||||||||
Total comprehensive income (loss) for the year | [1] | (4,006) | (2,042) | 298 | (2,262) | (778) | (4,784) | [2] | ||||||||||
Demerger dividend in specie of Jackson | [1] | (1,735) | (1,735) | (1,735) | ||||||||||||||
Dividends | [1] | (421) | (421) | (9) | (430) | |||||||||||||
Reserve movements in respect of share-based payments | [1] | 46 | 46 | 46 | ||||||||||||||
Effect of transactions relating to non-controlling interests | [1],[3] | (32) | (32) | (278) | (310) | |||||||||||||
New share capital subscribed | [1] | 2,382 | $ 9 | $ 2,373 | 2,382 | |||||||||||||
Movement in own shares in respect of share-based payment plans | [1] | (24) | (24) | (24) | ||||||||||||||
Net increase (decrease) in equity | [1] | (3,790) | 9 | 2,373 | (4,208) | 298 | (2,262) | (1,065) | (4,855) | |||||||||
Balance at beginning of year at Dec. 31, 2020 | [1] | 20,878 | 173 | 2,637 | 14,424 | 1,132 | 2,512 | 1,241 | 22,119 | |||||||||
Balance at end of year (As previously reported) at Dec. 31, 2021 | [1],[4] | 17,088 | 182 | 5,010 | 10,216 | 1,430 | 250 | 176 | 17,264 | |||||||||
Balance at end of year (Effect of initial application of IFRS 17 and classification overlay of IFRS 9, net of tax) at Dec. 31, 2021 | [4] | 1,848 | 1,848 | (1) | 1,847 | |||||||||||||
Balance at end of year at Dec. 31, 2021 | [4] | 18,936 | 182 | 5,010 | 12,064 | 1,430 | 250 | 175 | 19,111 | [5] | ||||||||
Reserves | ||||||||||||||||||
Profit (loss) for the year | [4] | (1,007) | (1,007) | 10 | (997) | [2] | ||||||||||||
Other comprehensive (loss) income | [4] | (790) | (603) | (187) | (10) | (800) | ||||||||||||
Total comprehensive income (loss) from continuing operations | [2] | (1,797) | ||||||||||||||||
Total comprehensive income (loss) for the year | [4] | (1,797) | (1,007) | (603) | (187) | (1,797) | [2] | |||||||||||
Dividends | [4] | (474) | (474) | (8) | (482) | |||||||||||||
Reserve movements in respect of share-based payments | [4] | 24 | 24 | 24 | ||||||||||||||
Effect of transactions relating to non-controlling interests | [4] | 49 | 49 | 49 | ||||||||||||||
New share capital subscribed | [4] | (4) | (4) | (4) | ||||||||||||||
Movement in own shares in respect of share-based payment plans | [4] | (3) | (3) | (3) | ||||||||||||||
Net increase (decrease) in equity | [4] | (2,205) | (4) | (1,411) | (603) | (187) | (8) | (2,213) | ||||||||||
Balance at end of year at Dec. 31, 2022 | 16,731 | [4] | 182 | [4] | 5,006 | [4] | 10,653 | [4] | 827 | [4] | $ 63 | $ 63 | [4] | 167 | [4] | 16,898 | [4],[5] | |
Reserves | ||||||||||||||||||
Profit (loss) for the year | 1,701 | 1,701 | 11 | 1,712 | ||||||||||||||
Other comprehensive (loss) income | (116) | (124) | 8 | (11) | (127) | |||||||||||||
Total comprehensive income (loss) from continuing operations | 1,585 | |||||||||||||||||
Total comprehensive income (loss) for the year | 1,585 | 1,701 | (124) | 8 | 1,585 | |||||||||||||
Dividends | (533) | (533) | (7) | (540) | ||||||||||||||
Transfer of fair value reserve following disposal of investment in Jackson | 71 | (71) | ||||||||||||||||
Reserve movements in respect of share-based payments | (5) | (5) | (5) | |||||||||||||||
Effect of transactions relating to non-controlling interests | 16 | 16 | 16 | |||||||||||||||
New share capital subscribed | 4 | 1 | 3 | 4 | ||||||||||||||
Movement in own shares in respect of share-based payment plans | 25 | 25 | 25 | |||||||||||||||
Net increase (decrease) in equity | 1,092 | 1 | 3 | 1,275 | (124) | $ (63) | (7) | 1,085 | ||||||||||
Balance at end of year at Dec. 31, 2023 | $ 17,823 | $ 183 | $ 5,009 | $ 11,928 | $ 703 | $ 160 | $ 17,983 | |||||||||||
[1] Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The $(278) million in 2021 related to the derecognition of Athene's non-controlling interest upon the demerger of Jackson The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
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],[2] |
Non-controlling interests | ||
Effect of transactions relating to non-controlling interests | (278) | [1],[2] |
Athene | Non-controlling interests | ||
Effect of transactions relating to non-controlling interests | $ (278) | |
[1] Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. 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, 2023 | Dec. 31, 2022 | [1] | Dec. 31, 2021 | [1] | |
Assets | ||||||
Goodwill | $ 896 | $ 890 | $ 907 | |||
Other intangible assets | 3,986 | 3,884 | 4,015 | |||
Property, plant and equipment | 374 | 437 | 495 | |||
Insurance contract assets | 1,180 | 1,134 | 1,250 | |||
Reinsurance contracts assets | 2,426 | 1,856 | 2,787 | |||
Deferred tax assets | 156 | 140 | 132 | |||
Current tax recoverable | 34 | 18 | 20 | |||
Investments in joint ventures and associates accounted for using the equity method | 1,940 | 2,259 | 2,698 | |||
Investment properties | 39 | 37 | 38 | |||
Loans | 578 | 590 | 771 | |||
Equity securities and holdings in collective investment schemes | [2] | 64,753 | 57,679 | 61,601 | ||
Debt securities | [2] | 83,064 | 77,016 | 99,154 | ||
Derivative assets | 1,855 | 569 | 481 | |||
Deposits | 5,870 | 6,275 | 4,741 | |||
Accrued investment income | 1,003 | 983 | 1,017 | |||
Other debtors | 1,161 | 968 | 955 | |||
Cash and cash equivalents | 4,751 | 5,514 | [3] | 7,170 | [3] | |
Total assets | 174,066 | 160,249 | 188,232 | |||
Equity | ||||||
Shareholders' equity | 17,823 | 16,731 | 18,936 | |||
Non-controlling interests | 160 | 167 | 175 | |||
Total equity | 17,983 | 16,898 | [4] | 19,111 | [4] | |
Liabilities | ||||||
Insurance contract liabilities | 139,840 | 126,242 | 149,798 | |||
Reinsurance contract liabilities | 1,151 | 1,175 | 1,254 | |||
Investment contract liabilities without discretionary participation features | 769 | 663 | 722 | |||
Core structural borrowings of shareholder-financed businesses | 3,933 | 4,261 | 6,127 | |||
Operational borrowings | 941 | 815 | 861 | |||
Obligations under funding, securities lending and sale and repurchase agreements | 716 | 582 | 223 | |||
Net asset value attributable to unit holders of consolidated investment funds | 2,711 | 4,193 | 5,664 | |||
Deferred tax liabilities | 1,250 | 1,139 | 1,167 | |||
Current tax liabilities | 275 | 208 | 185 | |||
Accruals, deferred income and other creditors | 4,035 | 2,866 | 2,624 | |||
Provisions | 224 | 206 | 234 | |||
Derivative liabilities | 238 | 1,001 | 262 | |||
Total liabilities | 156,083 | 143,351 | 169,121 | |||
Total equity and liabilities | $ 174,066 | $ 160,249 | $ 188,232 | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2023 are $ 2,001 million of lent securities and assets subject to repurchase agreements (31 December 2022: $ 1,571 million) The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Statement of Financial Position | ||
Lent securities and assets subject to repurchase agreements | $ 2,001 | $ 1,571 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | [3] | Dec. 31, 2021 | ||||
Cash flows from operating activities | |||||||
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 2,272 | $ (519) | [2] | $ 3,018 | ||
Adjustments to profit before tax for non-cash movements in operating assets and liabilities: | |||||||
Investments | (14,539) | 22,717 | (14,553) | ||||
Other non-investment and non-cash assets | 23 | (35) | 2,658 | ||||
Insurance and reinsurance contract assets and liabilities under IFRS 17 | 12,787 | (20,440) | |||||
IFRS 4 policyholder liabilities (including unallocated surplus of with-profits funds) | 9,095 | ||||||
Other non-insurance liabilities | 42 | (665) | 16 | ||||
Investment income and interest payments included in profit before tax | (4,378) | (3,912) | (3,738) | ||||
Operating cash items: | |||||||
Interest receipts | 2,872 | 2,589 | 2,328 | ||||
Interest payments | (75) | (16) | (11) | ||||
Dividend receipts | 1,650 | 1,523 | 1,480 | ||||
Tax paid | (406) | (449) | (453) | ||||
Other non-cash items | 584 | 285 | 438 | ||||
Net cash flows from operating activities | [4] | 832 | 1,078 | 278 | |||
Cash flows from investing activities | |||||||
Purchases of property, plant and equipment | (44) | (34) | (36) | ||||
Proceeds from disposal of property, plant and equipment | 2 | ||||||
Acquisition of businesses and intangibles | [5] | (415) | (298) | (773) | |||
Cash advanced to CPL | [4] | (176) | |||||
Disposal of Jackson shares | 273 | 293 | 83 | ||||
Net cash flows from investing activities | (360) | (39) | (726) | ||||
Structural borrowings of shareholder-financed operations: | |||||||
Issuance of debt, net of costs | [6] | 346 | 995 | ||||
Redemption of debt | [6] | (393) | (2,075) | (1,250) | |||
Interest paid | [6] | (188) | (204) | (314) | |||
Payment of principal portion of lease liabilities | (93) | (101) | (118) | ||||
Equity capital: | |||||||
Issues of ordinary share capital | 4 | (4) | 2,382 | ||||
External dividends: | |||||||
Dividends paid to equity holders of the Company | (533) | (474) | (421) | ||||
Dividends paid to non-controlling interests | (7) | (8) | (9) | ||||
Net cash flows from financing activities | (1,210) | (2,520) | 1,265 | ||||
Net (decrease) increase in cash and cash equivalents from continuing operations | (738) | (1,481) | 817 | ||||
Net decrease in cash and cash equivalents from discontinued US operations | (1,621) | ||||||
Cash and cash equivalents at 1 Jan | 5,514 | [3],[7] | 7,170 | [7] | 8,018 | ||
Effect of exchange rate changes on cash and cash equivalents | (25) | (175) | (44) | ||||
Cash and cash equivalents at 31 Dec | $ 4,751 | $ 5,514 | [7] | $ 7,170 | [3],[7] | ||
[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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. Included in net cash flows from operating activities are dividends from joint ventures and associates of $209 million (2022: $112 million , 2021: $175 million). Cash advanced to CPL, the Group’s joint venture in the Chinese Mainland, of $176 million was made in anticipation of a future capital injection as described in note D3. Cash flows from acquisition of business and intangibles include amounts paid for distribution rights. There were no acquisitions of businesses in the year. Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, lease liabilities and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from operating activities. The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Borrowings | |||||
Dividends from joint ventures and associates | $ 209 | $ 112 | $ 175 | ||
Changes in the carrying value of the structural borrowings of shareholder-financed businesses are analysed as follows: | |||||
Issuance of core structural borrowings | [1] | 346 | [2] | 995 | |
Redemption of core structural borrowings | [1] | (393) | (2,075) | [2] | (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 | 4,261 | 6,127 | 6,633 | ||
Issuance of core structural borrowings | 346 | 995 | |||
Redemption of core structural borrowings | (393) | (2,075) | (1,250) | ||
Foreign exchange movement | 58 | (147) | (13) | ||
Demerger of Jackson | (250) | ||||
Other movements | 7 | 10 | 12 | ||
Balance at end of year | $ 3,933 | $ 4,261 | $ 6,127 | ||
[1] Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, lease liabilities and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from operating activities. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Basis of preparation and accoun
Basis of preparation and accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
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 UK-adopted international accounting standards. At 31 December 2023, there were no unadopted standards effective for the year ended 31 December 2023 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 has adopted IFRS 17, 'Insurance Contracts' and IFRS 9, 'Financial Instruments'(including any consequential amendments to other standards) as issued by the IASB and as adopted for use in the UK from 1 January 2023, as discussed in note A2.1. The transition date of the Group for IFRS 17 was 1 January 2022. Except for the changes from the adoption of these two standards and the new and amended IFRS Standards as described in note A2.2, the accounting policies applied by the Group in determining the IFRS financial results in these consolidated financial statements are the same as those previously applied in the Group's consolidated financial statements for the year ended 31 December 2022 as disclosed in the 2022 annual report. As permitted by IFRS 17, comparative results and related accounting policies presented for the year ended 31 December 2021 have not been re-presented and are as previously published in the 2022 Annual Report when the Group had not yet adopted IFRS 17 and IFRS 9. Going concern basis of accounting The Directors have made an assessment of going concern covering a period to 31 March 2025, being 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, as described further in the Risk review section. 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 to 31 March 2025, being 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 2023. 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 2023 31 Dec 2022 31 Dec 2021 / 1 Jan 2022 2023 2022 2021 Chinese yuan (CNY) 7.09 6.95 6.37 7.09 6.73 6.45 Hong Kong dollar (HKD) 7.81 7.81 7.80 7.83 7.83 7.77 Indian rupee (INR) 83.21 82.73 74.34 82.60 78.63 73.94 Indonesian rupiah (IDR) 15,397.00 15,567.50 14,252.50 15,230.82 14,852.24 14,294.88 Malaysian ringgit (MYR) 4.60 4.41 4.17 4.56 4.40 4.15 Singapore dollar (SGD) 1.32 1.34 1.35 1.34 1.38 1.34 Taiwan dollar (TWD) 30.69 30.74 27.67 31.17 29.81 27.93 Thai baht (THB) 34.37 34.56 33.19 34.80 35.06 32.01 UK pound sterling (GBP) 0.78 0.83 0.74 0.80 0.81 0.73 Vietnamese dong (VND) 24,262.00 23,575.00 22,790.00 23,835.92 23,409.87 22,934.86 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 2023, 2022 and 2021 statutory accounts. Statutory accounts for 2022 and 2021 have been delivered to the UK Registrar of Companies and those for 2023 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 2023 A2.1 Adoption of IFRS 17 and IFRS 9 The Group adopted IFRS 17 ‘Insurance Contracts’ and IFRS 9 ‘Financial Instruments’, including any consequential amendments to other standards, from 1 January 2023. IFRS 17, ‘Insurance contracts’ IFRS 17 introduces significant changes to 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 (DPF)accounted under IFRS 4 are now accounted under IFRS 17. IFRS 4 permitted insurers to continue to use the statutory basis of accounting for insurance assets and liabilities that existed in their jurisdictions prior to January 2005. IFRS 17 replaces this with a new measurement model that establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with DPF. Insurance contracts are aggregated into groups for measurement purposes. Groups of insurance contracts are determined by identifying portfolios of insurance contracts, each comprising contracts subject to similar risks and managed together, and dividing each portfolio into annual cohorts (ie by year of issue) and each annual cohort into groups based on the profitability of contracts. Portfolios of reinsurance contracts held are assessed for aggregation separately from portfolios of insurance contracts issued. When determining 'similar risks' the Group does not divide risks within a contract, eg riders sold under a single contract would not be split by risk type. The Group have therefore identified three broad categories of risks referred to as 'dominant' risks, namely, protection, investment and to a less material extent longevity. The requirement 'managed together' is assessed within the geographical boundary of each local business unit. Each ring-fenced fund is considered to be managed separately. Under IFRS 17 groups of contracts are measured on initial recognition 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 represents the deferral of any day-one gains arising on initial recognition. Day-one losses, any subsequent losses on onerous contracts and reversal of those losses arising from groups of insurance contracts are recognised directly in the income statement. For groups of reinsurance contracts held, any net gains or losses at initial recognition are recognised as CSM unless the net cost of purchasing reinsurance relates to past events, in which case such net cost is recognised immediately in the income statement. Under IFRS 17 insurance contracts are measured under the General Measurement Model (GMM), Variable Fee Approach (VFA) or 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. Approximately 72 per cent of the CSM (including joint ventures and associates and net of reinsurance) at transition (as described below) was calculated under the VFA and relates to the Group’s with-profits and shareholder-backed participating products and unit-linked products with a low proportion of protection riders. The remaining approximately 28 per cent of the CSM at transition was calculated under the GMM and includes the Group’s non-profit protection products and unit-linked products with a high proportion of protection riders. 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, on initial recognition 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 discount rates determined at the date of initial recognition (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 for GMM business are determined using the locked-in discount rates. Further information on the subsequent measurement of the CSM is contained within note C3.4. IFRS 17 is applied retrospectively unless impractical to do so. The effect of adopting IFRS 17 retrospectively adjusts shareholders’ equity as at the date of transition of 1 January 2022. At the transition date, the opening balance sheet for IFRS 17 is established, as set out in the section 'Effect of adoption of IFRS 17 and IFRS 9' below. With the adoption of IFRS 17, certain line items in the Group’s consolidated statement of financial position have been replaced with new line items. For example, the Group now presents separately the carrying amount of portfolios of: – Insurance contracts issued that are assets; – Insurance contracts issued that are liabilities; – Reinsurance contracts held that are assets; and – Reinsurance contracts held that are liabilities. Further, the line items in the consolidated income statement have been changed significantly compared with reporting under IFRS 4. In accordance with the IFRS 17 requirements, the following line items are no-longer reported: Gross premiums earned, Outward reinsurance premiums, Benefits and claims, Reinsurers’ share of benefits and claims, Movements in unallocated surplus of with-profits funds and Acquisition costs. Those are replaced with the following IFRS 17 line items: – Insurance revenue; – Insurance service expenses; – Net income (expense) from reinsurance contracts held; and – Net insurance finance income (expenses). Approach to transition to IFRS 17 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 'Full 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. Prudential has adopted the Modified Retrospective Approach for cohorts of business for which expected cash flows at the date of initial recognition are not available but where actual historic cash flows are available. If reasonable and supportable information necessary to apply the modified retrospective approach is not available, the fair value approach must be applied. The CSM of the groups of insurance contracts transitioned under retrospective approaches (ie full retrospective approach and modified retrospective approach) has been calculated as if the Group had only prepared annual financial statements before the transition date (ie transition CSM has been measured using a year-to-date approach). Full Retrospective Approach (FRA) Under the FRA, each group of insurance contracts has been identified, recognised and measured as if IFRS 17 had always applied. The CSM was calculated at initial recognition of a group of contracts based on the facts and circumstances at that time (ie without use of hindsight). This CSM was then rolled forward to the transition date in line with the requirements of the standard. Modified Retrospective Approach (MRA) The objective of the MRA is to achieve the closest possible outcome to retrospective application possible using reasonable and supportable information without undue cost and effort. A number of specific modifications are permitted under the MRA. The Group has adopted the following modifications: – To use information at the transition date to identify insurance contract groups; – To use information at the transition date to assess eligibility for the variable fee approach; and – To use information at the transition date to identify discretionary cash flows. General Measurement Model (GMM) Under the MRA for GMM business, the cash flows at the date of initial recognition of a group of insurance contracts have been estimated as the cash flows at the earliest available date (ie the first year when the FRA is practicable, referred to as the 'earlier date'), adjusted by the cash flows that are known to have occurred between these two dates. A number of further specific modifications are permitted. The Group has adopted the following modifications: – To estimate the risk adjustment at the date of initial recognition as the risk adjustment at the earlier date adjusted by the expected release of risk before that date based on the risk adjustment release pattern for similar contracts; – To estimate CSM amortisation in line with run-off of the coverage units; and – If there is a loss component at initial recognition, to estimate the amount allocated to the loss component before the transition date using a systematic allocation consistent with the modifications adopted above. Discount rates at the date of initial recognition were determined using observable market data at that date. Variable Fee Approach (VFA) Under the MRA for VFA business, the CSM at the transition date for a group of insurance contracts has been determined as: – The total fair value of the underlying items at that date; minus – The fulfilment cash flows at that date; plus or minus – An adjustment for: – Amounts charged to policyholders before that date; – Amounts paid before that date not varying with underlying items; – The change in the risk adjustment caused by the release from risk before that date; and minus – An estimate of the amounts that would have been recognised in profit or loss for services provided before the transition date by comparing the remaining coverage units at the transition date with the coverage units provided under the group of contracts before the transition date. In implementing this approach, the amounts charged to policyholders, the amounts paid not varying with underlying items and coverage units have been adjusted for the time value of money. Fair Value Approach (FVA) The insurance contracts of the Group under the FVA generally represent groups of contracts that were written many years ago where suitable historical information required to apply the retrospective transition approaches is no longer practicably available. Under the FVA, the CSM at the transition date is the difference between the fair value of the insurance contracts, determined in accordance with IFRS 13 Fair Value Measurement, and the fulfilment cash flows at that date. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of groups of insurance contracts has therefore been interpreted as the compensation that a market participant would require for taking on the relevant obligation under the contracts. The fair value has been determined using a cost of capital approach by reference to a quantum of capital required to be held in order to fulfil the contracts and a required return on that capital. Expected cash flows and the required locked-in capital are projected forward over the duration of the groups of contracts and discounted at the required rate of return. These calculations are based on the following key assumptions: – The expected cash flows reflect the future cost that a market participant would expect to incur in fulfilling the obligations under the contracts. The fair value has been based on the same scope of cash flows as are included in the calculation of the best estimate liability. In particular, the same contract boundaries are assumed in the calculation of the fair value and best estimate liability. However, the measurement of those cash flows need not be the same. – The required locked-in capital is the level of capital realistically required for a business to operate in the relevant jurisdiction. – The required rate of return is compensation the Group would expect a market participant to require to enter into a transaction to transfer the liability associated with the insurance contracts at the transition date. This return has been determined using the Capital Asset Pricing Model, including allowance for both financial risk and uncertainty in non-financial risk. A number of specific modifications are permitted under the FVA. The Group has adopted the following modifications: – To use information at the transition date to identify groups of insurance contracts; – To use information at the transition date to assess eligibility for the VFA; – To use information at the transition date to identify discretionary cash flows; – To use information at the transition date to assess whether a contract meets the definition of an investment contract with DPF; and – To group annual cohorts of business. The allocation of opening CSM by transition approach is given in note C3.2(b), alongside a segmental split. IFRS 9, ‘Financial Instruments’ IFRS 9 replaced IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018. The Group met the eligibility criteria, under the amendments to IFRS 4 to apply the temporary exemption from IFRS 9, deferring the initial application date of IFRS 9 to align with the initial application of IFRS 17. The adoption of IFRS 9 has affected the following three areas: The classification and the measurement of financial assets and liabilities IFRS 9 redefines the classification of financial assets. Based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’), financial assets are classified into one of the following categories: amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). An option is also available at initial recognition to irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. The Company has made the election under IFRS 9 to measure its retained interest in Jackson 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.This was the only investment classified at FVOCI at 1 January 2023. A table explaining the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at 1 January 2023 is set out in the section 'Effect of adoption of IFRS 17 and IFRS 9' below. 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 replaced the incurred loss impairment model under IAS 39, resulting in earlier recognition of credit losses compared with IAS 39. This aspect is the most complex area of IFRS 9 and involves significant judgements and estimation processes. As discussed above, the vast majority of the financial investments of the Group are held at FVTPL to which these requirements do not apply. Accordingly, no significant amount of additional impairment was 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. Effect of adoption of IFRS 17 and IFRS 9 The adoption of IFRS 17 has significant changes to the accounting for insurance and reinsurance contracts, as discussed above. The Group’s approach to transition to IFRS 17 is set out in the preceding section. The Group has restated the 2022 comparative amounts and presented a restated consolidated statement of financial position as at 1 January 2022. The implementation of IFRS 9 has an insignificant impact on the Group’s financial statements. As permitted by IFRS 9, the Group has not restated the comparatives on initial application of the standard but the Group is taking advantage of the classification overlay as permitted by the Amendment to IFRS 17, ‘Initial Application of IFRS 17 and IFRS 9 – Comparative Information’ issued in December 2021. In accordance with this amendment, the balance sheet at 1 January 2022 reflects the change in classification of certain debt securities to amortised cost from fair value through profit and loss, certain loans to fair value through profit and loss from amortised cost and the recognition of IFRS 9 expected credit losses for certain mortgage loans that continue to be classified as amortised cost. With the exception of these changes, for which the overall net asset impact is insignificant at less than $5 million, the consolidated statement of financial position as of 1 January 2022 as restated under IFRS 17 has been presented to reflect the classification and measurement under IAS 39. Consolidated statement of financial position at transition date 1 January 2022 The following table shows the Group’s consolidated statement of financial position as at 1 January 2022 restated under the IFRS 17 basis and the summarised effects of the adoption of the new standard. At 31 Dec 2021 $m Effects of adoption of IFRS 17 $m At 1 Jan 2022 $m (as reported under Presentation Measurement (as restated under IFRS 4) changes changes IFRS 17) note (i) note (ii) Assets Goodwill 907 — — 907 Deferred acquisition costs and other intangible assets: Deferred acquisition costs 2,815 (39) (2,776) — Other intangible assets 4,043 — (28) 4,015 6,858 (39) (2,804) 4,015 Insurance contract assets n/a — 1,250 1,250 Reinsurance contract assets 9,753 (22) (6,944) 2,787 Deferred tax assets 266 (134) — 132 Other non-investment and non-cash assets 3,448 (1,022) 61 2,487 Investment properties 38 — — 38 Investments in joint ventures and associates accounted for using the equity method 2,183 — 515 2,698 Total financial investments: Policy loans 1,733 (1,733) — — Other loans 829 — (58) 771 Equity securities and holdings in collective investment schemes 61,601 — — 61,601 Debt securities 99,094 — 60 99,154 Derivative assets 481 — — 481 Deposits 4,741 — — 4,741 168,479 (1,733) 2 166,748 Cash and cash equivalents 7,170 — — 7,170 Total assets 199,102 (2,950) (7,920) 188,232 Equity Shareholders' equity 17,088 — 1,848 18,936 Non-controlling interests 176 — (1) 175 Total equity 17,264 — 1,847 19,111 Liabilities Insurance contract liabilities* 156,485 4,243 (10,930) 149,798 Reinsurance contract liabilities n/a — 1,254 1,254 Investment contract liabilities without discretionary participation features 814 — (92) 722 Core structural borrowings of shareholder-financed businesses 6,127 — — 6,127 Operational borrowings 861 — — 861 Deferred tax liabilities 2,862 (1,696) 1 1,167 Other liabilities 14,689 (5,497) — 9,192 Total liabilities 181,838 (2,950) (9,767) 169,121 Total equity and liabilities 199,102 (2,950) (7,920) 188,232 * Included within insurance contract liabilities at 31 December 2021 are investment contracts with DPF and unallocated surplus of with-profits funds under IFRS 4. Notes (i) The presentation changes as shown in the table above principally arise from the following effects of the adoption of IFRS 17: – Inclusion of insurance and reinsurance related receivable and payable balances within IFRS 17 insurance and reinsurance contract assets and liabilities Under IFRS 17, the measurement of a group of insurance contracts requires inclusion of all the future cash flows within the boundary of each contract and as a result, all insurance and reinsurance related receivable and payable balances (eg premiums receivable and claims payable) that were previously separately presented on the balance sheet are now in effect included within the insurance and reinsurance contract balances under IFRS 17. – Policy loans Applying the same IFRS 17 measurement principles described above, policy loans related cash flows including any accrued interest income (previously included in ‘Accrued investment income’) are also included within the fulfilment cash flows of the associated group of insurance contracts. – Deferred tax liabilities In line with IAS 12, deferred tax assets and liabilities have been netted as appropriate. The deferred tax liabilities arising from expected future distributions of the Singapore with-profits funds have been reclassified to be part of the insurance contract liabilities under IFRS 17. (ii) The measurement changes shown in the table above principally reflect the following measurement differences arising from the adoption of IFRS 17: – Deferred acquisition costs (DAC) Acquisition cash flows are taken into account in determining the day-one CSM of a group insurance contracts. As such, explicit assets for DAC are not required and the IFRS 4 balances are removed. DAC relating to investment contracts without discretionary participation features remains as an asset and has been reclassified to ‘Other debtors’ under 'Other non-investment and non-cash items’. – Insurance and reinsurance contract assets and liabilities The adjustments represent insurance and reinsurance contract measurement differences between IFRS 4 and IFRS 17, which primarily relate to the following effects: – the establishment of a CSM under IFRS 17 in accordance with the transition rules, intended to represent the unamortised amount of expected future profit deferred upon initial recognition of an insurance contract for all in-force contracts; – the establishment of an explicit risk adjustment for non-financial risk under IFRS 17; – release of prudence in the IFRS 4 policyholder liabilities to leave the best estimate liability; and – the change in treatment of the unallocated surplus of with-profits funds such that the shareholders’ share is recognised in shareholders’ equity after allowing for measurement differences between IFRS 4 and IFRS 17. Tax – Current tax assets and liabilities are calculated for each entity in the Group based on local tax rules, and the basis of tax varies between jurisdictions. For insurance entities in the Group, the current tax is calculated based on either the financial statements prepared under local generally accepted accounting principles (GAAP), or the regulatory return prepared under relevant regulatory rules, or on an alternative basis (for example, Hong Kong, where most life insurance business is taxed by reference to net premiums). Current tax assets and liabilities at transition date are not impacted by the adoption of IFRS 17 at Group level as the adoption for the Group financial statements has no impact on local tax calculations. For jurisdictions where the basis of tax is the local financial statements, current tax assets and liabilities will be calculated applying IFRS 17 if and when the standard is adopted locally, and subject to local tax rules for transitional adjustments. The impact of any such local adoption on the Group financial statements will be considered when relevant. – Deferred tax balances are adjusted to reflect the deferred tax effects of the measurement adjustments arising from transition to IFRS 17 described above. The methods of calculating deferred tax are unchanged. Where insurance and reinsurance contract assets and liabilities give rise to a tax deduction or taxable income when they are recovered or settled, measurement changes to these balances, without equal changes in current taxable income, give rise to corresponding changes to the deferred tax balances at the tax rates expected to apply when the deferred tax assets or liabilities are realised or settled. – Investments in joint ventures and associates accounted for using the equity method The adjustments represent the Group’s share of the impact of the transition of the balance sheets of the Group’s life joint ventures and associate (being CPL, India and the Takaful business in Malaysia) from IFRS 4 to IFRS 17, arising principally from the measurement differences as described above. Financial assets and liabilities by IFRS 9 category The following table and the accompanying notes explain the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at 31 December 2022/1 January, 2023. The effects of the reclassification of financial assets as a result of transition to IFRS 9 is not material. Classification at initial application Carrying value $m Financial instruments Original under IAS 39 New under IFRS 9 Original under IAS 39 New under IFRS 9 Financial assets Loans note (i) Amortised cost Amortised cost 140 140 Loans /debt securities note (ii) Amortised cost Mandatorily at FVTPL 26 27 Loans FVTPL Mandatorily at FVTPL 450 450 Equity securities and portfolio holdings in collective investment schemes FVTPL Mandatorily at FVTPL 57,413 57,413 Equity securities note (iii) Available-for-sale (AFS) FVOCI 266 266 Debt securities held by Eastspring note (iv) FVTPL Amortised cost 67 67 Other Debt securities FVTPL Mandatorily at FVTPL 76,922 76,922 Derivative assets FVTPL Mandatorily at FVTPL 569 569 Accrued investment income Loans and receivables Amortised cost 983 983 Deposits Loans and receivables Amortised cost 6,275 6,275 Cash and cash equivalents Loans and receivables Amortised cost 5,514 5,514 Other debtors note (i) Loans and receivables Amortised cost 968 968 Financial liabilities Investment contract liabilities w |
Analysis of performance by segm
Analysis of performance by segment | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of performance by segment | |
Analysis of performance by segment | B1 Analysis of performance by segment B1.1 Segment results IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Note note (i) note (i) note (i) Continuing operations: CPL 368 271 343 Hong Kong 1,013 1,162 975 Indonesia 221 205 446 Malaysia 305 340 350 Singapore 584 570 663 Growth markets and other note (ii) 746 728 932 Eastspring 280 260 314 Other income and expenditure: Net investment return and other items note (iii) (21) (44) 21 Interest payable on core structural borrowings (172) (200) (328) Corporate expenditure note (iv) (230) (276) (298) Total other expenditure (423) (520) (605) Restructuring and IFRS 17 implementation costs note (v) (201) (294) (185) Adjusted operating profit B1.2 2,893 2,722 3,233 Short-term fluctuations in investment returns note (vi) (774) (3,420) (458) Amortisation of acquisition accounting adjustments under IFRS 4 — — (5) (Loss) gain attaching to corporate transactions note (vii) (22) 55 (94) Profit (loss) before tax attributable to shareholders 2,097 (643) 2,676 Tax charge attributable to shareholders' returns B3.2 (385) (354) (462) Profit (loss) for the year 1,712 (997) 2,214 Loss from discontinued US operations D6 — — (5,027) Profit (loss) for the year 1,712 (997) (2,813) Attributable to: Equity holders of the Company From continuing operations 1,701 (1,007) 2,192 From discontinued US operations — — (4,234) 1,701 (1,007) (2,042) Non-controlling interests From continuing operations 11 10 22 From discontinued US operations — — (793) 11 10 (771) Profit (loss) for the year 1,712 (997) (2,813) IFRS 17 basis IFRS 4 basis 2023 2022 2021 Basic earnings per share (in cents) Note note (i) note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest from continuing operations B4 89.0 ¢ 79.4 ¢ 101.5 ¢ Based on profit for the year from continuing operations, net of non-controlling interest B4 62.1 ¢ (36.8) ¢ 83.4 ¢ Based on loss from discontinued US operations, net of non-controlling interest B4 n/a n/a (161.1) ¢ Notes (i) Segment results are attributed to the shareholders of the Group before deducting the amount attributable to the non-controlling interests. This presentation is applied consistently throughout the document. (ii) The Growth markets and other segment includes non-insurance entities that support the Group’s insurance business and the result for this segment is after deducting the corporate taxes arising from the life joint ventures and associates. In 2021, this also comprised of other non-recurring items which largely included the impact of refinements to the run-off of the allowance of prudence within IFRS 4 technical provisions. (iii) Net investment return and other items in 2023 and 2022 includes an adjustment to eliminate intercompany profits as described below. Entities within the Prudential Group can provide services to each other, the most significant example being the provision of asset management services by Eastspring to the life entities. If the associated expenses are deemed attributable to the entity’s insurance contracts then the costs are included within the estimate of future cashflows when measuring the insurance contract under IFRS 17. In the Group’s consolidated accounts, IFRS 17 requires the removal of the intercompany profit from the measurement of the insurance contract. Put another way the future cash flows include the cost to the Group (not the insurance entity) of providing the service. In the period that the service is provided the entity undertaking the service, for example Eastspring, recognises the profit it earns as part of its results. To avoid any double counting an adjustment is included with the centre’s 'net investment return and other item' to remove the benefit already recognised when valuing the insurance contract. (iv) Corporate expenditure as shown above is for head office functions. (v) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $(81) million (2022: $(137) million; 2021: $(101) million), largely comprising the costs of Group-wide projects including the implementation of IFRS 17 (this includes one-off costs associated with embedding IFRS 17), reorganisation programmes and initial costs of establishing new business initiatives and operations. (vi) In 2021, rising interest rates across most operations led to unrealized bond losses which more than offset the impact of higher discount rates on IFRS 4 policyholder liabilities under the local reserving basis applied and equity gains on shareholder backed business in the year which led to overall negative short-term investment fluctuations for total insurance and asset management operations. (vii) The loss for 2021 of $ (94) million included $(35) million as shown separately on the Consolidated income statement largely related to costs associated with the demerger of Jackson and $(59) million arising on reinsurance transaction undertaken by the Hong Kong business under IFRS 4 basis. 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’. There have been no changes to the Group’s operating segments from those reported in the Group’s consolidated financial statements for the year ended 31 December 2022. In the first quarter of 2021, the Group reviewed its operating segments for financial reporting under IFRS 8 following changes to the business and financial management information provided to the GEC. On 13 September 2021, the Group completed the demerger of the US operations (Jackson Financial Inc.) from the Prudential plc Group. Accordingly, the US operations did not represent an operating segment as of the end of 2021. The results of US operations were reclassified as discontinued in those consolidated financial statements in accordance with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, and were therefore excluded in the analysis of performance measure of operating segments. 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. 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, including short-term fluctuations in investment returns and gain or loss on corporate transactions. Note B1.1 shows the reconciliation from adjusted operating profit to total profit (loss) for the year. Determination of adjusted operating profit under IFRS 17 (for 2023 and 2022) (a) Approach adopted for insurance businesses The measurement of adjusted operating profit reflects that, for the insurance business, assets and liabilities are held for the longer term. 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. This concept was previously applied under IFRS 4, but the changing measurement model under IFRS 17 has impacted how such short-term fluctuations are determined. The method of allocating profit between operating and non-operating components involves applying longer-term rates of return to the Group’s assets held by insurance entities (including joint ventures and associates). These longer-term rates of return are not applied when assets and liabilities move broadly in tandem and hence the effect on profit from short-term market movements is more muted. In summary the Group applies the following approach when attributing the ‘net investment result’ between operating and non-operating profit: – Returns on investments that meet the definition of an ‘underlying item’, namely those investments that determine some of the amounts payable to a policyholder such as assets within unit linked funds or with-profits funds, are recorded in adjusted operating profit on an actual return basis. The exception is for investments backing the shareholders’ 10 per cent share of the estate within the Hong Kong with-profits fund. Changes in the value of these investments, including those driven by market movements, pass through the income statement with no liability offset. Consequently adjusted operating profit recognises investment return on a longer-term basis for these assets. – For insurance contracts measured under the GMM, the impact of market movements on both the non-underlying insurance contract balances and the investments they relate to are considered together. Adjusted operating profit allows for the long-term credit spread (net of the expected defaults) or long-term equity risk premium on the debt and equity-type instruments respectively. Deducted from this amount is the unwind of the illiquidity premium included in the current discount rate for the liabilities. – Some GMM BEL components are calculated by reference to the investment return of assets, even if the BEL component itself is not considered an underlying item, for example the BEL component related to future fee income or a guarantee. In these cases for the purposes of determining operating profit, the BEL component is calculated assuming a longer-term investment return and any difference between the actual return arising in the period and the longer-term investment return is taken to non-operating profit. There is no impact on the balance sheet of this allocation. – A longer-term rate of return is applied to all other investments held by the Group’s insurance business for the purposes of calculating adjusted operating profit. More details on how longer-term rates are determined are set out below. The difference between the net investment result recorded in the income statement and the longer-term returns determined using the above principles is recorded as ‘short-term fluctuations in investment returns’ as a component of non-operating profit. The ‘insurance service result’ is recognised in adjusted operating profit in full with the exception of gains or losses that arise from market and other related movements on onerous contracts measured under the variable fee approach. If these gains and losses are capable of being offset across more than one annual cohort of the same product or fund as applicable, then the adjusted operating profit is determined by amortising the net of the future profits and losses on all contracts where profits or losses can be shared. Any difference between this and the insurance service results presented in the income statement is classified as part of ‘short-term fluctuations in investment returns’, a component of non-operating profit. (b) Determination of longer-term returns The longer-term rates of return are estimates of the long-term trend investment returns having regard to past performance, current trends and future expectations. 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. For collective investment schemes that include different types of assets (eg equities and debt securities), weighted assumptions are used reflecting the asset mix underlying the relevant fund mandates. Debt securities and loans For debt securities and loans, the longer-term rates of return are estimates of the long-term government bond yield, plus the estimated long-term credit spread over the government bond yield, less an allowance for expected credit losses. The credit spread and credit loss assumptions reflect the mix of assets by credit rating. Longer-term rates of return range from 2.8 per cent to 8.4 per cent for 2023 (2022: 2.8 per cent to 7.8 per cent). Equity-type securities For equity-type securities, the longer-term rates of return are estimates of the long-term trend investment returns for income and capital. Longer-term rates of return range from 8.6 per cent to 15.7 per cent for 2023 and 2022. Derivative value movements In the case where derivatives change the nature of other invested assets (eg by lengthening the duration of assets, hedging overseas bonds to the currency of the local liabilities, or by providing synthetic exposure to equities), the longer-term return on those invested assets reflects the impacts of the derivatives. (c) Non-insurance businesses For these businesses, the determination of adjusted operating profit reflects the underlying economic substance of the arrangements and excludes market related items only where it is expected these will unwind over time. Determination of adjusted operating profit under IFRS 4 (for 2021) (a) With-profits business For with-profits business in Hong Kong, Singapore and Malaysia, the adjusted operating profit reflected the shareholders’ share in the bonuses declared to policyholders. Value movements in the underlying assets of the with-profits funds only affected the shareholder results through indirect effects of investment performance on declared policyholder bonuses and therefore, did not affect directly the determination of adjusted operating profit. (b) Assets and liabilities held within unit-linked funds The policyholder unit liabilities were directly reflective of the underlying asset value movements. Accordingly, the adjusted operating profit reflected the current year value movements in both the unit liabilities and the backing assets, which offset one another. (c) Other shareholder-backed long-term insurance business In the case of other shareholder-financed business, the measurement of adjusted operating profit reflected the fact that, for the long-term insurance business, assets and liabilities were held for the longer term. For this business the Group believes trends in underlying performance were better understood if the effects of short-term fluctuations in market conditions, such as changes in interest rates or equity markets, were excluded. In determining the profit on this basis, the following key elements were applied to the results of the Group’s shareholder-financed businesses. (i) Policyholder liabilities that are sensitive to market conditions Under IFRS 4, the degree to which the carrying values of liabilities to policyholders were sensitive to current market conditions varies between business units depending upon the nature of the ‘grandfathered’ measurement basis. Taiwan and India applied US GAAP, whose policyholder liabilities were not sensitive to market movements as they were locked in at policy inception. Movements in liabilities for some types of business did 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 were 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 reflected 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 were used to determine the movement in policyholder liabilities for determining adjusted operating profit. This ensured assets and liabilities were reflected on a consistent basis. (ii) Assets backing other shareholder-backed long-term insurance business Except in the case of assets backing liabilities which were directly matched (such as unit-linked business) adjusted operating profit for assets backing shareholder-financed business was determined on the basis of expected longer-term investment returns. Longer-term investment returns comprised 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 was 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 comprised 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 were treated as a component of short-term investment fluctuations. Consideration was 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 were 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 were 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 was made. Equity-type securities For equity-type securities that comprised both the Group's investments in direct equities and all of its collective investment scheme holdings, the longer-term rates of return were estimates of the long-term trend investment returns for income and capital having regard to past performance, current trends and future expectations. Different rates applied to different categories of the securities within this category. For the Group’s investments in direct equities, the longer-term rates of return applied in 2021 ranged from 7.3 per cent to 16.9 per cent. For Group’s collective investment scheme holdings, the longer-term rates of return applied in 2021 ranged from 3.6 per cent to 11.0 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 were 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 were for the returns expected to apply in equilibrium conditions. The assumed rates of return did not reflect any cyclical variability in economic performance and were 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 were determined on a similar basis as the other insurance operations described above. Derivative value movements Generally, derivative value movements were excluded from adjusted operating profit. The exception was where the derivative value movements broadly offset changes in the accounting value of other assets and liabilities included in adjusted operating profit. (d) Other non-insurance businesses For these businesses, the determination of adjusted operating profit reflected the underlying economic substance of the arrangements. Generally, realised gains and losses were 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 were amortised to adjusted operating profit over a time period that reflected the underlying economic substance of the arrangements. B1.3 Revenue Accounting policies for revenue under IFRS 17 The Group recognises insurance revenue as it satisfies its performance obligations, ie as it provides services under groups of insurance contracts. The insurance revenue relating to services provided for each period represents the total of the changes in the liability for remaining coverage that relate to services for which the Group expects to receive consideration and comprises the following items. – A release of the CSM, measured based on coverage units; – Changes in the risk adjustment for non-financial risk relating to current services; – Claims and other insurance service expenses for the period expected at the beginning of the year; and – Other amounts include the revenue recognised to cover the tax charge attributable to policyholders and other items, for example experience adjustments for premium receipts for current or past services . In addition, the Group allocates a portion of premiums that relate to recovering insurance acquisition cash flows to each period using the same amortisation factor used to amortise CSM. The Group recognises the allocated amount, adjusted for interest accretion, as insurance revenue and an equal amount as insurance service expenses. Non-distinct investment components are excluded from insurance revenue and insurance service expenses. Policy fees charged on investment contracts without discretionary participation features for asset management and policy administration fees are recognised when related services are provided. Accounting policies for revenue under IFRS 4 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) IFRS 17 basis 2023 $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 Amounts relating to changes in the liability for remaining coverage: Expected claims and other directly attributable expenses 1,089 582 642 970 670 — — 3,953 — 3,953 Change in risk adjustment for non-financial risk 73 35 24 55 41 — — 228 — 228 Release of CSM for services provided 787 187 203 478 538 — — 2,193 — 2,193 Other adjustments note (ii) 73 32 31 45 71 — — 252 — 252 Recovery of insurance acquisition cash flows 1,207 306 234 435 563 — — 2,745 — 2,745 Insurance revenue 3,229 1,142 1,134 1,983 1,883 — — 9,371 — 9,371 Other revenue note (iii) 22 4 4 — 39 299 — 368 1 369 Total revenue from external customers note (iv) 3,251 1,146 1,138 1,983 1,922 299 — 9,739 1 9,740 Intra-group revenue — — — — — 184 (184) — — — Interest income 1,033 92 239 785 627 7 — 2,783 164 2,947 Dividend and other investment income 775 93 151 528 117 3 — 1,667 7 1,674 Investment appreciation (depreciation) 2,155 50 177 1,490 1,309 4 — 5,185 (43) 5,142 Investment return 3,963 235 567 2,803 2,053 198 (184) 9,635 128 9,763 Total revenue 7,214 1,381 1,705 4,786 3,975 497 (184) 19,374 129 19,503 IFRS 17 basis 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 Amounts relating to changes in the liability for remaining coverage: Expected claims and other directly attributable expenses 969 438 563 935 736 — — 3,641 — 3,641 Change in risk adjustment for non-financial risk 53 33 20 33 30 — — 169 — 169 Release of CSM for services provided 737 274 215 442 513 — — 2,181 — 2,181 Other adjustments note (ii) 30 16 — 27 32 — — 105 — 105 Recovery of insurance acquisition cash flows 1,051 309 231 378 484 — — 2,453 — 2,453 Insurance revenue 2,840 1,070 1,029 1,815 1,795 — — 8,549 — 8,549 Other revenue note (iii) 65 6 — 1 33 330 — 435 1 436 Total revenue from external customers note (iv) 2,905 1,076 1,029 1,816 1,828 330 — 8,984 1 8,985 Intra-group revenue — — — — 1 199 (200) — — — Interest income 927 83 208 724 601 4 — 2,547 50 2,597 Dividend and other investment income 689 77 183 576 107 1 — 1,633 25 1,658 Investment depreciation (23,615) (69) (386) (6,679) (2,860) (21) — (33,630) (5) (33,635) Investment return (21,999) 91 5 (5,379) (2,151) 183 (200) (29,450) 70 (29,380) Total revenue (19,094) 1,167 1,034 (3,563) (323) 513 (200) (20,466) 71 (20,395) IFRS 4 basis 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 (iii) 52 12 — 22 117 437 — 640 1 641 Total external revenue note(iv) 8,527 1,693 1,853 6,131 4,372 437 — 23,013 1 23,014 Intra-group revenue — — — — 1 217 (218) — — — Interest income 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 10,197 1,888 1,933 7,315 4,716 665 (218) 26,496 4 26,500 Notes (i) The Group’s share of the results from the joint ventures and associates including CPL that are equity accounted for 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 2023 is $560 million (2022: $595 million under IFRS 17 basis; 2021: $ 3,052 million under IFRS 4 basis). Further financial information on CPL is provided in note D5.3. (ii) Other adjustments comprise experience adjustment for premium receipts relating to past and current services provided under insurance contracts and insurance revenue earned from contracts measured under the PAA as well as the revenue recognised to cover the tax charge attributable to policyholders. (iii) Other revenue comprises revenue from external customers and consists primarily of revenue from the Group’s asset management business of $299 million (2022: $330 million; 2021: $437 million). Also included in other revenue is fee income on financial instruments that are not held at FVTPL of $3 million (2022: $2 million; 2021: $1 million). (iv) Due to the nature of the business of the Group, there is no reliance on any major customers. Of the Group’s markets, other than Hong Kong, Singapore, Indonesia and Malaysia as shown above, no individual markets have revenue from external customers that exceeds 10 per cent of the Group total for the years presented. (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 mandatorily classified or designated as FVTPL and realised gains and losses (including impairment losses) on items classified at amortised cost and/or FVOCI (AFS for 2022 and 2021). Movements in unrealised appreciation or depreciation of securities designated as FVOCI (AFS for 2022 and 2021) 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. IFRS 9 basis 2023 $m Interest income calculated using the effective interest method 340 Net gains on financial instruments at FVTPL note (i) 9,400 Dividend income from Jackson shares designated at FVOCI recognised in the income statement 7 Other investment returns (including foreign exchange gains and losses) 267 Movement in amounts attributable to external unit holders of consolidated investment funds (251) Investment return recognised in the income statement 9,763 Valuation movements in Jackson shares recognised in other comprehensive income 8 Total investment return recognised in the income statement and other comprehensive income 9,771 IAS 39 basis 2022 $m Interest income calculated using the effective interest method 237 Net losses on financial instruments at FVTPL note (i) (30,890) Dividend income from Jackson shares classified as AFS recognised in the income statement 24 Other investment returns (including foreign exchange gains and losses) 239 Movement in amounts attributable to external unit holders of consolidated investment funds 1,010 Investment return recognised in the income statement (29,380) Valuation movements in Jackson shares recognised in other comprehensive income (187) Total investment return recognised in the income statement and other comprehensive income (29,567) IAS 39 basis 2021 $m Net realised and unrealised gains on securities at fair value through profit or loss note (ii) 624 Net realised and unrealised losses on derivatives at fair value through profit or loss note (ii) (943) Net realised losses on loans note (ii) (2) Interest income note (iii) 2,570 Dividend income 1,496 Other investment returns (including foreign exchange gains and losses) (259) Investment return recognised in the income statement 3,486 Notes (i) Net gains (losses) comprise interest income on financial instruments at FVTPL, dividend and other investment income and investment appreciation (depreciation). Net realised gains and losses on the Group’s investments for 2023 recognised in the income statement amounted to a net loss of $(6.0) billion (2022: a net loss of $(9.4) billion). (ii) Net realised gains and losses on the Group’s investments for 2021 recognised in the income statement amounted a net gain of $6.0 billion. (iii) Interest income in 2021 includes $280 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, excl |
Insurance service expenses and
Insurance service expenses and other expenditure | 12 Months Ended |
Dec. 31, 2023 | |
Insurance service expenses and other expenditure | |
Insurance service expenses and other expenditure | B2 Insurance service expenses and other expenditure (a) Total expenses on IFRS 17 basis Insurance service expenses arising from insurance contracts are recognised in profit or loss generally as they are incurred. They exclude repayments of investment components and comprise: – incurred claims and other insurance service expenses; – amortisation of insurance acquisition cash flows; – losses on onerous contracts and reversals of such losses; – adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk and changes therein, which are recognised in insurance finance income (expense); and – impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses . An analysis of the expenses incurred by the Group in the year is provided in the table below. IFRS 17 basis 2023 $m 2022 $m Expenses attributed to insurance acquisition cash flows note (i) 4,833 3,232 Other directly attributable expenses note (ii) 1,258 1,221 Other expenditure note (iii) 990 1,019 Total expenses 7,081 5,472 Notes (i) Expenses attributed to insurance acquisition cash flows represent insurance acquisition expenses incurred in the year, which are implicitly deferred within the CSM and amortised as part of the CSM amortisation. (ii) Other directly attributable expenses are those incurred in the year when providing insurance services to the policyholders, excluding the cost of claims and benefit payments. The expected other directly attributable expenses are explicitly included within the BEL and form part of the BEL release to the insurance revenue. The actual other directly attributable expenses incurred in the year form part of insurance service expenses. (iii) Other expenditure includes interest expense other than interest on core structural borrowings that is presented separately on the income statement as Finance costs. Total segment interest expense is $58 million (2022: $23 million), of which $31 million arises in the Hong Kong segment (2022: $11 million) and $23 million (2022: $9 million) arises in the Centre segment with the remainder spread broadly across the other markets. Included within interest expense is $7 million (2022: $8 million) of interest on lease liabilities. Core structural borrowings and operational borrowings (other than lease liabilities) represent financial liabilities that are not classified at FVTPL. Total depreciation and amortisation expenses relate primarily to amortisation of distribution rights intangibles as shown in note C4.2. The segmental analysis of total depreciation and amortisation is shown below. IFRS 17 basis 2023 $m 2022 $m Hong Kong 42 43 Indonesia 11 12 Malaysia 21 21 Singapore 36 40 Growth markets and other 369 339 Eastspring 12 13 Total segment 491 468 Unallocated to a segment (central operations) 33 26 Total depreciation and amortisation 524 494 (b) Acquisition costs and other expenditure on IFRS 4 basis The 2021 comparative results and the related notes have been shown on an IFRS 4 basis as previously published. The results have not been re-presented to the IFRS 17 basis as permitted by the standard. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. IFRS 4 basis 2021 $m Acquisition costs incurred for insurance policies 2,089 Acquisition costs deferred (848) Amortisation of acquisition costs 343 Administration costs and other expenditure (net of other reinsurance commission) 3,128 Movements in amounts attributable to external unit holders of consolidated investment funds (152) Total acquisition costs and other expenditure 4,560 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. IFRS 4 basis 2021 $m Hong Kong 123 Indonesia 51 Malaysia 56 Singapore 162 Growth markets and other 390 Eastspring 17 Total segment 799 Unallocated to a segment (central operations) 31 Total depreciation and amortisation 830 (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’. In 2021, interest expense of the central operations amounted to $(331) million comprising $(328) million of interest on core structural borrowings and $(3) million of interest on lease liabilities. 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 in 2021 is $(10) million of which $(3) million arises in the Hong Kong segment with the remainder spread broadly evenly across the other markets. Included within interest expense is $(10) million of interest on lease liabilities. B2.1 Staff and employment costs Total staff and employment costs are analysed by category below: 2023 $m 2022 $m 2021 $m Discontinued US Continuing operations Group total Wages and salaries 1,079 1,018 973 511 1,484 Social security costs 37 41 42 22 64 Defined contribution pension schemes 46 40 42 29 71 Total Group 1,162 1,099 1,057 562 1,619 The average number of staff employed by the Group during the years shown was: 2023 2022 2021 Asia and Africa operations note (i) 14,479 13,685 13,237 Head office function 551 511 600 Total continuing operations 15,030 14,196 13,837 Discontinued US operations note (ii) — — 3,306 Total Group 15,030 14,196 17,143 Notes (i) The Asia and Africa operations staff numbers above exclude 621 (2022: 744 ; 2021: 440 ) 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. 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 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 Employees section. The following information is provided about plans in which the Executive Directors do not participate: Share scheme* Description Prudential Global Long Term Incentive Plan (PGLTIP) The PGLTIP 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 PGLTIP 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. * The total numbers of securities available for issue under these schemes are disclosed in note I(vii) within additional unaudited financial information. (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 2023 2022 2021 2023 2022 2021 Weighted Weighted Weighted average average Number average Number exercise Number exercise of options exercise of options price of options price millions price Number of awards millions £ millions £ millions £ millions Balance at beginning of year: 1.9 10.4 2.0 11.6 2.3 11.9 21.0 24.6 40.6 Granted 0.4 7.8 0.5 7.4 0.4 11.9 6.3 6.5 5.2 Modification — — 0.1 11.8 — — 0.7 Exercised (0.3) 11.6 (0.3) 11.2 (0.7) 12.6 (10.1) (7.2) (8.6) Forfeited — 7.8 — 10.8 — 11.1 (1.7) (1.1) (3.1) Cancelled (0.3) 12.0 (0.3) 12.7 (0.1) 11.5 (0.1) (0.1) (0.1) Lapsed/Expired — 10.4 — 13.0 — 12.9 (1.1) (1.7) (0.6) Jackson awards derecognised on demerger note — — (9.5) Balance at end of year 1.7 9.5 1.9 10.4 2.0 11.6 14.3 21.0 24.6 Options immediately exercisable at end of year 0.2 10.8 0.3 12.5 0.2 12.3 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 2023 was £10.46 (2022: £10.33, 2021: £14.31). 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 £ 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 Between £7 and £8 0.7 0.5 — 3.7 4.1 — 7.55 7.37 — — — — — — — Between £9 and £10 0.3 0.4 0.4 1.4 2.2 3.2 9.64 9.64 9.64 0.1 — — 9.64 — — Between £11 and £12 0.6 0.8 1.2 2.0 2.4 2.7 11.59 11.48 11.38 — 0.2 0.1 — 11.12 11.04 Between £12 and £13 — — — — — — — — — — — — — — — Between £13 and £14 0.1 0.1 0.2 0.4 1.4 1.6 13.94 13.94 13.94 0.1 — 0.1 13.94 — 13.94 Between £14 and £15 — 0.1 0.2 — 0.4 1.4 — 14.55 14.55 — 0.1 — — 14.55 — Total 1.7 1.9 2.0 2.6 2.6 2.6 9.50 10.43 11.61 0.2 0.3 0.2 10.82 12.48 12.26 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: 2023 2022 2021 Prudential SAYE Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) options awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 1.38 — — 1.11 — — 0.81 — Expected volatility (%) 31.50 30.02 — 33.64 25.68 — 26.69 22.31 — Risk-free interest rate (%) 4.34 4.55 — 2.79 3.97 — 0.36 1.18 — Expected option life (years) — 3.95 — — 4.52 — — 4.50 — Weighted average exercise price (£) — 7.75 — — 7.37 — — 11.90 — Weighted average share price at grant date (£) 11.59 8.89 — 11.15 9.54 — 15.11 14.76 — Weighted average fair value at grant date (£) 5.10 2.85 11.45 2.09 3.45 11.11 7.70 4.13 14.79 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 2023 the average volatility for the basket of competitors was 26 per cent (2022: 26 per cent, 2021: 24 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 2023 in the consolidated financial statements relating to share-based compensation is $81 million (2022: $104 million; 2021: $100 million), of which $71 million (2022: $97 million; 2021: $94 million) is accounted for as equity-settled. The Group had $31 million of liabilities at 31 December 2023 (31 December 2022: $27 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: 2023 $m 2022 $m 2021 $m Salaries and short-term benefits (including fees paid to non-executive directors) 27.0 22.5 29.3 Post-employment benefits 1.0 1.0 1.4 Share-based payments 22.2 15.4 14.0 Payments on separation — 1.0 23.5 50.2 39.9 68.2 The share-based payments charge comprises $7.6 million (2022: $6.7 million; 2021: $7.5 million), which is determined in accordance with IFRS 2 ‘Share-based Payment’ (see note B2.2), $9.6 million (2022: $8.7 million; 2021: $6.5 million) of deferred share awards and $5.0 million for an award made to Mr Wadhwani in 2023 to replace share-based awards from his former employer that were forfeited as a consequence of his joining Prudential. 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 2023 $m 2022 $m 2021 $m Audit of the Company’s annual accounts 5.8 2.3 2.4 Audit of subsidiaries pursuant to legislation 8.1 4.4 5.9 Audit fees payable to the auditor note (i) 13.9 6.7 8.3 Audit-related assurance services note (ii) 4.0 3.5 4.5 Other assurance services 0.9 0.7 1.1 Services relating to corporate finance transactions — — 1.6 Non-audit fees payable to the auditor 4.9 4.2 7.2 Total fees payable to the auditor 18.8 10.9 15.5 Analysed into: Fees payable to the auditor attributable to continuing operations: One-off non-audit services associated with demerger and public offering note (iii) — — 1.9 Other audit and non-audit services 18.8 10.9 11.3 18.8 10.9 13.2 Fees payable to the auditor attributable to discontinued US operations — — 2.3 Total fees payable to the auditor 18.8 10.9 15.5 Notes (i) EY became the Group’s statutory auditor in 2023 replacing KPMG who was the statutory auditor during 2022 and 2021. The 2023 fees shown above are wholly in respect of fees payable to EY while the 2022 fees were the fees paid to KPMG. (ii) Of the audit-related assurance service fees of $4.0 million for EY in 2023 (2022: $3.5 million; 2021: $4.5 million for KPMG), $1.1 million (2022: $0.9 million, 2021: $0.6 million) relates to services that are required by law and regulation as defined by the FRC. (iii) 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. In addition to the above, in the period from September 2021 until their appointment as the Group's statutory auditor in May 2023, EY were paid $12.4 million to provide audit assurance over the implementation of IFRS 17. |
Tax charge
Tax charge | 12 Months Ended |
Dec. 31, 2023 | |
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: IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Hong Kong (129) (106) (119) Indonesia (43) (27) (70) Malaysia (98) (44) (73) Singapore (174) (61) (328) Growth markets and other (103) (210) (163) Eastspring (26) (26) (30) Total segment note (i) (573) (474) (783) Unallocated to a segment (central operations) 13 (4) (21) Total tax charge notes (i)(ii) (560) (478) (804) Notes (i) 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. (ii) The total tax charge is analysed between current tax and deferred tax as follows IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Current tax expense: Corporation tax (457) (474) (405) Adjustments in respect of prior years 1 (7) 6 Total current tax charge (456) (481) (399) Deferred tax arising from: Origination and reversal of temporary differences (135) — (388) Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year 31 3 (17) Total deferred tax (charge) credit (104) 3 (405) Total tax charge (560) (478) (804) B3.2 Reconciliation of 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 year. It reflects the corporation tax rates of each jurisdiction weighted by reference to the amount of profit or loss contributing to the aggregate result. The reconciliation of the expected to actual tax charge/credit and the percentage impact of reconciliation items on shareholder effective tax rate are provided below. IFRS 17 basis IFRS 4 basis 2023 2022 2021 $m % $m % $m % Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) 2,272 (519) 3,018 Tax charge attributable to policyholders’ returns note (i) (175) (124) (342) Profit (loss) before tax attributable to shareholders’ returns 2,097 (643) 2,676 Tax (charge) credit at the expected rate (399) 19 % 85 13 % (539) 20 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 80 (4) % 61 9 % 63 (2) % Deductions and losses not allowable for tax purposes note (iii) (136) 6 % (196) (30) % (92) 3 % Items related to taxation of life insurance businesses note (iv) 137 (7) % (129) (20) % 177 (7) % Deferred tax adjustments including unrecognised tax losses 13 (1) % (45) (7) % (111) 4 % Effect of results of joint ventures and associates note (v) (38) 2 % (32) (5) % 80 (3) % Irrecoverable withholding taxes note (vi) (63) 3 % (55) (9) % (60) 2 % Other (2) 1 % (15) (2) % (8) 1 % Total (charge) credit on recurring items (9) 0 % (411) (64) % 49 (2) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years note(vii) 42 (2) % 1 0 % (11) 0 % Movements in provisions for open tax matters note (viii) (15) 1 % (40) (6) % 47 (2) % Impact of changes in local statutory tax rates — 0 % — 0 % 6 0 % Adjustments in relation to business disposals and corporate transactions (4) 0 % 11 2 % (14) 1 % Total credit (charge) on non-recurring items 23 (1) % (28) (4) % 28 (1) % Tax charge attributable to shareholders’ returns (385) (354) (462) Tax charge attributable to policyholders’ returns note (i) (175) (124) (342) Tax charge attributable to shareholders’ and policyholders’ returns (560) (478) (804) Profit before tax attributable to shareholders’ returns analysed into: Adjusted operating profit 2,893 2,722 3,233 Non-operating result note (ix) (796) (3,365) (557) Profit (loss) before tax attributable to shareholders’ returns 2,097 (643) 2,676 Tax charge attributable to shareholders' returns analysed into: Tax charge on adjusted operating profit (444) (539) (548) Tax credit on non-operating result note (ix) 59 185 86 Tax charge attributable to shareholders’ returns (385) (354) (462) Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note(x) 15 % 20 % 17 % Excluding non-recurring tax reconciling items 16 % 18 % 18 % Profit before tax attributable to shareholders’ returns note (x) 18 % (55) % 17 % Notes (i) The tax charge attributable to policyholders of $(175) million (2022: $(124) million on an IFRS 17 basis; 2021: $(342) million on an IFRS 4 basis) is equal to the profit before tax attributable to policyholders as a result of accounting for policyholder income after the deduction of expenses on a post-tax basis. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Growth markets and Singapore. (iii) Deductions and losses not allowable for tax purposes primarily relates to non-deductible head office costs in Other operations. (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) 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. (vi) 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. (vii) Adjustments to tax charge in relation to prior years primarily relates to the recognition of a deferred tax asset in relation to historical tax losses, due to an increase in forecast taxable profit in the UK tax group. (viii) The statement of financial position contains the following provisions in relation to open tax matters. 2023 $m Balance at 1 Jan (79) Movements in the current year included in tax charge attributable to shareholders (15) 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) 1 Balance at 31 Dec (93) (ix) ‘Non-operating result’ is used to refer to items excluded from adjusted operating profit and includes short-term investment fluctuations in investment returns and corporate transactions. 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. (x) The actual tax rates of the relevant business operations are shown below: IFRS 17 basis 2023 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 7 % 22 % 22 % 16 % 20 % 9 % 2 % 15 % Tax rate on profit before tax 7 % 22 % 20 % 16 % 11 % 9 % 2 % 18 % IFRS 17 basis 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 19 % 26 % 16 % 33 % 10 % 0 % 20 % Tax rate on profit before tax (7) % 16 % 25 % 63 % 40 % 10 % (1) % (55) % IFRS 4 basis 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 % Actual tax rates on adjusted operating profit for each segment for 2022 prepared applying IFRS 17 as shown in the table above are generally consistent with the tax rates previously published for 2022 results prepared applying IFRS 4. The tax rates on adjusted operating profit for Growth markets and other and the Group total as shown in the table above differ from the equivalent tax rates previously published under IFRS 4 for 2022 due primarily to differences in the proportions of adjusted operating profit contributed by entities with different tax rates. Actual tax rates on profit before tax for 2022 prepared under IFRS 17 differ from the equivalent tax rates previously published under IFRS 4 for 2022 primarily due to non-taxable and non-deductible amounts, such as investment gains or losses, making up a different proportion of total profit before tax for each segment and the Group total under each standard. A number of jurisdictions in which the Group has operations – Japan, South Korea, Luxembourg, Vietnam and the UK – have implemented either a global minimum tax or a domestic minimum tax at a rate of 15 per cent, in line with the OECD proposals, effective for 2024 onwards. Malaysia has implemented both the global minimum tax and domestic minimum tax effective for 2025 onwards. Other jurisdictions where the Group has a taxable presence, including Hong Kong (where Prudential plc has been tax resident since 3 March 2023), Singapore and Thailand intend to implement the proposals for 2025 onwards. For those jurisdictions where either a global minimum tax or domestic minimum tax or both have been implemented with effect for 2024, no material impact to the Group’s IFRS tax charge for the 2024 financial year is expected. The implementation of a global minimum tax and domestic minimum tax in Malaysia effective for 2025 is not expected to have a material impact for the Group’s IFRS tax charge for the 2025 financial year. These assessments consider a number of factors including whether the transitional safe harbour is expected to apply based on the most recent filings of tax returns, country by country reporting and financial statements of the relevant entities. In some jurisdictions a global minimum tax but not a domestic minimum tax regime has been implemented and the Group’s operations in that jurisdiction will not be subject to the rules as they are wholly domestic operations. Luxembourg and South Korea have both implemented an undertaxed profits rule effective for 2025 onwards. The undertaxed profits rule is intended as a backstop provision to deal with jurisdictions which delay or do not implement the global minimum tax or domestic minimum tax rules. In the December 2023 public consultation and February 2024 budget, Hong Kong confirmed its intention to implement the global minimum and domestic minimum tax rules effective from 2025 onwards. As the Hong Kong rules are expected to be in force for 2025 and would apply to the Group from 2025, the undertaxed profits rules implemented in South Korea and Luxembourg are not expected to have any practical application to the Group. For those jurisdictions, such as Hong Kong and Singapore, where the proposals are expected to be implemented with effect from 2025 onwards, work is ongoing to assess the potential impact and guidance will be provided in due course during 2024. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Earnings per share | B4 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. No adjustment is made if the impact is anti-dilutive overall. 2023 IFRS 17 basis Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on profit for the year 2,097 (385) (11) 1,701 62.1 ¢ 61.9 ¢ Short-term fluctuations in investment returns 774 (59) — 715 26.1 ¢ 26.0 ¢ Loss attaching to corporate transactions 22 — — 22 0.8 ¢ 0.8 ¢ Based on adjusted operating profit 2,893 (444) (11) 2,438 89.0 ¢ 88.7 ¢ For 2023, the weighted average number of shares for calculating basic earnings per share, which excludes those held in employee share trusts, is 2,741 million. After including a dilutive effect of the Group's share options and awards(see note B2.2) of 6 million, the weighted average number of shares for calculating diluted earnings per share is, 2,747 million. 2022 IFRS 17 basis Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on loss for the year (643) (354) (10) (1,007) (36.8) ¢ (36.8) ¢ Short-term fluctuations in investment returns 3,420 (185) (1) 3,234 118.2 ¢ 118.2 ¢ Gain attaching to corporate transactions (55) — — (55) (2.0) ¢ (2.0) ¢ Based on adjusted operating profit 2,722 (539) (11) 2,172 79.4 ¢ 79.4 ¢ For 2022, the weighted average number of shares for calculating basic and diluted 2021 (IFRS 4 basis) 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 ¢ For 2021, the weighted average number of shares for calculating basic earnings per share, which excludes those held in employee share trusts, was 2,628 million. There was no difference between the basic and diluted earnings per share. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2023 | |
Dividends | |
Dividends | B5 Dividends 2023 2022 2021 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim dividend 6.26 ¢ 172 5.74 ¢ 154 5.37 ¢ 140 Second interim dividend 14.21 ¢ 392 13.04 ¢ 359 11.86 ¢ 326 Total relating to reporting year 20.47 ¢ 564 18.78 ¢ 513 17.23 ¢ 466 Dividends paid in reporting year: Current year first interim dividend 6.26 ¢ 172 5.74 ¢ 154 5.37 ¢ 138 Second interim dividend for prior year 13.04 ¢ 361 11.86 ¢ 320 10.73 ¢ 283 Total paid in reporting year 19.30 ¢ 533 17.60 ¢ 474 16.10 ¢ 421 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 2023 first interim dividend of 6.26 cents per ordinary share was paid to eligible shareholders on 19 October 2023. On 16 May 2024, Prudential will pay a second interim dividend of 14.21 cents per ordinary share for the year ended 31 December 2023. The second interim dividend will be paid to shareholders recorded on the UK register at 6.00pm (British Summer Time) and to shareholders on the HK branch register at 4.30pm (Hong Kong Time) on 2 April 2024 (Record Date), and also to the Holders of US American Depositary Receipts (ADRs) as at 2 April 2024. The second interim dividend will be paid on or about 23 May 2024 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 to receive dividend payments in USD. Elections must be made through the relevant UK or HK share registrar on or before 24 April 2024. The corresponding amounts per share in GBP and HKD are expected to be announced on or about 2 May 2024. 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
Group assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Group assets and liabilities | |
Group assets and liabilities | C1 Group assets and liabilities C1.1 Group investments by business type The analysis below is structured to show the investments of the Group's subsidiaries 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 2023 were $1,181 million (31 December 2022: $1,152 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-. The following table classifies assets into those that primarily back the Group’s participating funds that are measured under the variable fee approach, those backing unit-linked funds, other investments held within the insurance entities, Eastspring’s investments and those that are unallocated to a segment (principally centrally held investments). In terms of the investments held by the insurance businesses, those within funds with policyholder participation and those within unit-linked funds represent underlying items. The gains or losses on these investments will be offset by movements in policyholder liabilities and therefore adjusted operating profit reflects the actual investment return on these assets. The exception is for investments backing the shareholders’ 10 per cent share of the estate within the Hong Kong with-profits fund. Changes in the value of these investments, including those driven by market movements, pass through the income statement with no liability offset. Consequently adjusted operating profit recognises investment return on a longer-term basis for these assets. In terms of other assets held within the insurance entities, these largely comprise assets backing IFRS shareholders’ equity or are non-underlying items backing GMM liabilities and therefore the returns on these other investments are recognised in adjusted operating profit at a longer-term rate. 31 Dec 2023 $m Asia and Africa Insurance Funds with policyholder Unit-linked Unallocated Group participation funds Other Eastspring Total to a segment total note (i) Debt securities Sovereign debt Indonesia 393 611 525 — 1,529 — 1,529 Singapore 3,006 607 929 — 4,542 — 4,542 Thailand 2 4 1,957 — 1,963 — 1,963 United Kingdom — 5 87 — 92 — 92 United States 23,552 84 2,351 — 25,987 — 25,987 Vietnam 3,143 30 173 — 3,346 — 3,346 Other (predominantly Asia) 4,375 664 1,732 28 6,799 — 6,799 Subtotal 34,471 2,005 7,754 28 44,258 — 44,258 Other government bonds AAA 1,533 94 119 — 1,746 — 1,746 AA+ to AA- 120 17 29 — 166 — 166 A+ to A- 689 95 239 — 1,023 — 1,023 BBB+ to BBB- 271 57 56 — 384 — 384 Below BBB- and unrated 502 11 63 2 578 — 578 Subtotal 3,115 274 506 2 3,897 — 3,897 Corporate bonds AAA 1,214 147 243 — 1,604 — 1,604 AA+ to AA- 2,716 440 934 — 4,090 — 4,090 A+ to A- 10,918 460 2,179 — 13,557 1 13,558 BBB+ to BBB- 9,466 714 2,055 — 12,235 1 12,236 Below BBB- and unrated 2,280 500 356 — 3,136 — 3,136 Subtotal 26,594 2,261 5,767 — 34,622 2 34,624 Asset-backed securities AAA 174 2 54 — 230 — 230 AA+ to AA- 6 — 2 — 8 — 8 A+ to A- 30 — 7 — 37 — 37 BBB+ to BBB- 7 — 2 — 9 — 9 Below BBB- and unrated — 1 — — 1 — 1 Subtotal 217 3 65 — 285 — 285 Total debt securities notes (ii)(iv) 64,397 4,543 14,092 30 83,062 2 83,064 Loans Mortgage loans 65 — 83 — 148 — 148 Other loans 430 — — — 430 — 430 Total loans 495 — 83 — 578 — 578 Equity securities and holdings in collective investment schemes Direct equities 18,711 12,075 182 128 31,096 — 31,096 Collective investment schemes 24,529 7,546 1,580 2 33,657 — 33,657 Total equity securities and holdings in collective investment schemes 43,240 19,621 1,762 130 64,753 — 64,753 Other financial investments note (iii) 2,893 396 1,707 101 5,097 2,628 7,725 Total financial investments note (v) 111,025 24,560 17,644 261 153,490 2,630 156,120 Investment properties — — 39 — 39 — 39 Cash and cash equivalents 1,054 647 1,287 173 3,161 1,590 4,751 Total investments 112,079 25,207 18,970 434 156,690 4,220 160,910 31 Dec 2022 $m Asia and Africa Insurance Funds with policyholder Unit-linked Unallocated Group participation funds Other Eastspring Total to a segment total note (i) Debt securities Sovereign debt Indonesia 565 589 400 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 21,580 54 257 — 21,891 — 21,891 Vietnam 2,263 12 135 — 2,410 — 2,410 Other (predominantly Asia) 3,663 646 1,666 27 6,002 — 6,002 Subtotal 31,311 1,812 4,831 97 38,051 — 38,051 Other government bonds AAA 1,480 85 108 — 1,673 — 1,673 AA+ to AA- 112 21 20 — 153 — 153 A+ to A- 765 139 233 — 1,137 — 1,137 BBB+ to BBB- 327 77 99 — 503 — 503 Below BBB- and unrated 483 22 67 — 572 — 572 Subtotal 3,167 344 527 — 4,038 — 4,038 Corporate bonds AAA 1,094 181 268 — 1,543 — 1,543 AA+ to AA- 2,356 385 1,151 — 3,892 — 3,892 A+ to A- 9,233 524 2,345 — 12,102 — 12,102 BBB+ to BBB- 9,515 1,325 2,344 1 13,185 — 13,185 Below BBB- and unrated 2,918 444 454 — 3,816 — 3,816 Subtotal 25,116 2,859 6,562 1 34,538 — 34,538 Asset-backed securities AAA 228 5 85 — 318 — 318 AA+ to AA- 7 1 2 — 10 — 10 A+ to A- 25 — 9 — 34 — 34 BBB+ to BBB- 17 — 6 — 23 — 23 Below BBB- and unrated 2 1 1 — 4 — 4 Subtotal 279 7 103 — 389 — 389 Total debt securities notes (ii)(iv) 59,873 5,022 12,023 98 77,016 — 77,016 Loans Mortgage loans 92 — 48 — 140 — 140 Other loans 450 — — — 450 — 450 Total loans 542 — 48 — 590 — 590 Equity securities and holdings in collective investment schemes Direct equities 15,000 11,379 202 61 26,642 266 26,908 Collective investment schemes 22,015 6,760 1,992 2 30,769 2 30,771 Total equity securities and holdings in collective investment schemes 37,015 18,139 2,194 63 57,411 268 57,679 Other financial investments note (iii) 3,010 379 1,599 107 5,095 1,749 6,844 Total financial investments note (v) 100,440 23,540 15,864 268 140,112 2,017 142,129 Investment properties — — 37 — 37 — 37 Cash and cash equivalents 1,563 749 1,266 127 3,705 1,809 5,514 Total investments 102,003 24,289 17,167 395 143,854 3,826 147,680 Notes (i) Funds with policyholder participation represent investments held to support insurance products where policyholders participate in the returns of a specified pool of investments (excluding unit-linked policies) that are measured using the variable fee approach. (ii) Of the Group’s debt securities, the following amounts were held by the consolidated investment funds: 31 Dec 2023 $m 31 Dec 2022 $m Debt securities held by the consolidated investment funds 11,116 11,899 (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 $156,120 million as at 31 December 2023 (31 December 2022: $142,129 million), $80,022 million (31 December 2022: $68,949 million) are expected to be recovered within one year, including equity securities and holdings in collective investment schemes. C1.2 Other assets and liabilities (a) Accrued investment income and other debtors 31 Dec 2023 $m 31 Dec 2022 $m Interest receivable 871 806 Other accrued income 132 177 Total accrued investment income 1,003 983 Other debtors 1,161 968 Total accrued investment income and other debtors 2,164 1,951 Analysed as: Expected to be settled within one year 2,048 1,882 Expected to be settled beyond one year 116 69 Total accrued investment income and other debtors 2,164 1,951 (b) Accruals, deferred income and other creditors Accruals, deferred income and other creditors are analysed as follows (detailed maturity analysis is provided in note C2.3): 31 Dec 2023 $m 31 Dec 2022 $m Accruals and deferred income 244 200 Interest payable 35 59 Other creditors 3,756 2,607 Total accruals, deferred income and other creditors 4,035 2,866 C1.3 Cash and cash equivalents Cash and cash equivalents consist of cash at bank and in hand, deposits held at call with banks, treasury bills and other short-term highly liquid investments with less than 90 days maturity from the date of acquisition and are analysed as follows: 31 Dec 2023 $m 31 Dec 2022 $m Cash 1,964 1,878 Cash equivalents 2,787 3,636 Total cash and cash equivalents 4,751 5,514 Analysed as: Held by the Group's holding and non-regulated entities and available for general use 1,590 1,809 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 3,161 3,705 Total cash and cash equivalents 4,751 5,514 The Group’s cash and cash equivalents are held in the following currencies as at 31 December 2023: USD 42 per cent, MYR 14 per cent, GBP 5 per cent, HKD 6 per cent, SGD 8 per cent, and other currencies 25 per cent (31 December 2022: USD 45 per cent, MYR 14 per cent, GBP 11 per cent, HKD 5 per cent, SGD 5 per cent and other currencies 20 per cent). C1.4 Provisions An analysis of movement in total provisions held is shown below: 2023 $m 2022 $m Balance at 1 Jan 206 234 Charge (credit) to income statement: Additional provisions 198 153 Unused amounts released (10) (19) Utilisation during the year (172) (154) Exchange differences 2 (8) Balance at 31 Dec 224 206 Of the $224 million of provisions at 31 December 2023 (31 December 2022: $206 million), which excludes any amounts attributable to insurance contracts,the Group held $215 million (31 December 2022: $199 million) provisions for staff benefits, which are generally expected to be paid out within the next three years. |
Measurement of financial assets
Measurement of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Measurement of financial assets and liabilities | |
Measurement of financial assets and liabilities | C2 Measurement of financial assets and liabilities 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 IFRS 9 (2023) / IAS 39 (2022 and prior) whereby subject to specific criteria, financial instruments are required to be accounted for under one of the following categories: – Financial instruments at FVTPL: this comprises primarily 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. In addition, this includes derivatives. All investments within this category are measured at fair value with all changes thereon being recognised in investment return in the income statement. – Financial instruments at FVOCI under IFRS 9 or on an AFS basis under IAS 39: these instruments 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 except for equity securities that have been elected to be designated at FVOCI under IFRS 9 whereby there is no recycling to the profit or loss on derecognition being the difference to the AFS treatment for equity securities under IAS 39. Subsequent to the demerger of Jackson in September 2021, the Group designated its retained interest in Jackson as AFS equity securities under IAS 39. Upon the adoption of IFRS 9, the Group made the election to measure its interest in equity securities in Jackson at FVOCI, which were disposed of entirely in 2023. There were no financial instruments at FVOCI at 31 December 2023. – Financial instruments at amortised cost: these instruments comprise non-quoted investments that have fixed or determinable payments, including loans collateralised by mortgages, deposits, and other 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. Climate change does not directly impact fair values particularly where these are built on observable inputs (ie level 1 and level 2), which represent the majority of the Group's financial instruments as discussed below. 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. The fair value of the subordinated and senior debt issued by the Group is determined using quoted prices from independent third parties. 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 Valuation hierarchy (a) Assets and liabilities at fair value 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 FVTPL at 31 December 2023. At 31 December 2022, $266 million of financial assets classified as AFS under IAS 39 related to the Group’s retained interest in Jackson, which was disposed of in 2023. All assets and liabilities held at fair value are measured on a recurring basis. Financial instruments at fair value 31 Dec 2023 $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 (iii) Loans — 430 — 430 Equity securities and holdings in collective investment schemes 56,327 5,562 2,864 64,753 Debt securities note (i) 64,004 19,020 40 83,064 Derivative assets 1,460 395 — 1,855 Derivative liabilities (58) (180) — (238) Total financial investments, net of derivative liabilities 121,733 25,227 2,904 149,864 Investment contract liabilities without DPF note (ii) — (769) — (769) Net asset value attributable to unit holders of consolidated investment funds (2,711) — — (2,711) Total financial instruments at fair value 119,022 24,458 2,904 146,384 Percentage of total (%) 81 % 17 % 2 % 100 % 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 (iii) Loans — 447 3 450 Equity securities and holdings in collective investment schemes 49,725 7,130 824 57,679 Debt securities note (i) 57,148 19,763 38 76,949 Derivative assets 82 487 — 569 Derivative liabilities (778) (223) — (1,001) Total financial investments, net of derivative liabilities 106,177 27,604 865 134,646 Investment contract liabilities without DPF note (ii) — (663) — (663) Net asset value attributable to unit holders of consolidated investment funds (4,193) — — (4,193) Total financial instruments at fair value 101,984 26,941 865 129,790 Percentage of total (%) 78 % 21 % 1 % 100 % Notes (i) Of the total level 2 debt securities of $19,020 million at 31 December 2023 (31 December 2022: $19,763 million), $10 million (31 December 2022: $37 million) are valued internally. (ii) For Investment contract liabilities without DPF, it is assumed that these investment contracts are not quoted in an active market and do not have readily available published prices and that their fair values are determined using valuation techniques. It is assumed that all significant inputs used in the valuation are observable and these investment contract liabilities are classified in level 2. (iii) At 31 December 2023, the Group held $2,904 million (31 December 2022: $865 million) of net financial instruments at fair value within level 3. This represents 2 per cent (2022: less than one per cent) of the total fair valued financial assets, net of financial liabilities and comprises the following: – Equity securities and holdings in collective investment schemes of $2,863 million (31 December 2022: $823 million) are externally valued using the net asset value of the invested entities and consist primarily of property and infrastructure funds held by the participating funds. Equity securities of $1 million (31 December 2022: $1 million) are internally valued. Internal valuations are inherently more subjective than external valuations; and – Other sundry individual financial instruments of a net asset of $40 million(31 December 2022: $41 million). Of the net financial instruments of $2,904 million (31 December 2022: $865 million) referred to above: – A net asset of $2,866 million (31 December 2022: $830 million) is held by the Group’s with-profits and unit-linked funds and therefore shareholders’ profit and equity are not immediately impacted by movements in the valuation of these financial instruments; and – The remaining level 3 investments comprise a net asset of $38 million (31 December 2022: $35 million) and are primarily corporate bonds valued using external prices adjusted to reflect the specific known conditions relating to these bonds (eg distressed securities). If the value of all these level 3 financial instruments decreased by 10 per cent, the change in valuation would be $(4) million (31 December 2022: $(4) million), which would reduce shareholders’ equity by this amount before tax. 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 2023, the transfers between levels within the portfolios included transfers from level 1 to level 2 of $505 million and transfers from level 2 to level 1 of $1,708 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 2 to level 3 of $1,489 million in the period relating to certain of the underlying investments of the Group’s consolidated investment funds, which are now deemed to have more unobservable inputs. Reconciliation of movements in level 3 assets and liabilities measured at fair value The following table reconciles the value of level 3 fair valued assets and liabilities at the beginning of the period to that presented at the end of the period. Total investment return recorded in the income statement represents interest and dividend income, realised gains and losses, unrealised gains and losses on the assets classified at fair value through profit and loss and foreign exchange movements on an individual entity’s overseas investments. Total gains and losses recorded in other comprehensive income comprises the translation of investments into the Group's presentational currency of US dollars. 2023 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 3 824 38 865 Total gains in income statement note — 25 2 27 Total gains recorded in other comprehensive income — 6 — 6 Purchases and other additions — 524 — 524 Sales (3) (4) — (7) Transfers into level 3 — 1,489 — 1,489 Balance at 31 Dec — 2,864 40 2,904 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 Note Of the total net gain in the income statement of $27 million at 2023 (2022: net loss of $(35) million), $29 million (2022: $(12) 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: 2023 $m 2022 $m Loans — (2) Equity securities and holdings in collective investment schemes 27 (8) Debt securities 2 (2) Net unrealised gains and losses of financial instruments still held at the end of the year 29 (12) (b) 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. Deposits, cash and cash equivalents, accrued investment income, other debtors, accruals, deferred income and other creditors are excluded from the analysis below, as these are carried at amortised cost which approximates fair value. 31 Dec 2023 $m 31 Dec 2022 $m Carrying Fair Carrying Fair value value value value Assets Debt securities — — 67 67 Loans 148 179 140 206 Liabilities Core structural borrowings of shareholder-financed businesses (3,933) (3,659) (4,261) (3,834) Operational borrowings (excluding lease liabilities) (707) (707) (516) (516) Obligations under funding, securities lending and sale and repurchase agreements (716) (716) (582) (582) Net financial liabilities at amortised cost (5,208) (4,903) (5,152) (4,659) The fair value of the assets and liabilities in the table above, with the exception of the subordinated and senior debt issued by the Group, 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 2023 and 2022, reflecting the observability of the inputs used to derive their fair value. The fair value of the subordinated and senior debt issued by the Group is determined using quoted prices from independent third parties. C2.3 Additional information on financial instruments (a) Financial risk Liquidity analysis 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. 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 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. For investment contracts without DPF, the maturity profile is based on undiscounted cash flow projections of expected benefit payments. 31 Dec 2023 $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 Investment contracts without DPF note 769 155 169 68 149 24 9 5 273 852 Core structural borrowings of shareholder-financed businesses 3,933 126 126 379 3,555 — — — 750 4,936 Lease liabilities under IFRS 16 234 76 62 86 25 2 — — — 251 Other operational borrowings 707 707 — — — — — — — 707 Obligations under funding, securities lending and sale and repurchase agreements 716 716 — — — — — — — 716 Accruals, deferred income and other liabilities 4,035 3,845 — — — — — — 190 4,035 Net asset value attributable to unit holders of consolidated investment funds 2,711 2,711 — — — — — — — 2,711 Total non-derivative financial liabilities 13,105 8,336 357 533 3,729 26 9 5 1,213 14,208 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 Investment contracts without DPF note 663 11 163 206 98 22 8 4 243 755 Core structural borrowings of shareholder-financed businesses 4,261 509 124 370 2,598 1,024 — — 750 5,375 Lease liabilities under IFRS 16 299 101 76 127 28 9 — — — 341 Other operational borrowings 516 516 — — — — — — — 516 Obligations under funding, securities lending and sale and repurchase agreements 582 582 — — — — — — — 582 Accruals, deferred income and other liabilities 2,866 2,686 — — — — — — 180 2,866 Net asset value attributable to unit holders of consolidated investment funds 4,193 4,193 — — — — — — — 4,193 Total non-derivative financial liabilities 13,380 8,598 363 703 2,724 1,055 8 4 1,173 14,628 Note The undiscounted cash flows of investment contracts without DPF included under the 'No stated maturity’ category in the maturity profile shown above are mostly repayable on demand due to most of these investment contracts having options to surrender early, though often subject to surrender or other penalties therefore, these options are unlikely to be exercised in practice. 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 2023 1,855 (238) 1,617 31 Dec 2022 569 (1,001) (432) All net derivatives are carried at fair value and are considered to be 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. 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. The majority of Group’s financial instruments are carried at FVTPL. The total value of assets held at amortised cost is $12,933 million (31 December 2022: $13,947 million), comprising primarily cash and cash equivalents, deposits and accrued investment income where the credit risk is considered to be low by nature. There are no material expected credit losses recognised on these assets. At 31 December 2023, $9 million (31 December 2022: $7 million) are past their due date and as recovery is anticipated, immaterial expected credit loss provision has been established. In addition, the Group did not take possession of any other collateral held as security in both years. Foreign exchange risk The Group is exposed to exchange gains and losses on financial assets and liabilities held by the Group’s business units in a currency 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 loss on financial instruments recognised in the income statement in 2023, except for those arising on financial instruments measured at FVTPL, is $(38) million (2022: $234 million gain). 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 IFRS 9/IAS 39. The Group has no net investment, fair value or cash flow hedges under IFRS 9 and IAS 39 at 31 December 2023 and 2022, respectively. 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. 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. 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. 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. (b) 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 2023, the fair value of the collateral held in respect of these transactions, which is represented by the purchased securities was $3,623 million (31 December 2022: $3,244 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 2023, the Group had $2,001 million (31 December 2022: $1,571 million) of lent securities and assets subject to repurchase agreements. The cash and securities collateral held or pledged under such agreements were $2,042 million (31 December 2022: $1,679 million). Collateral and pledges under derivative transactions At 31 December 2023, the Group had pledged $457 million (31 December 2022: $62 million) for liabilities and held collateral of $1,586 million (31 December 2022: $234 million) for assets in respect of 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 derivative transactions, which permit sale or re-pledging of underlying collateral. The Group has not sold any non-cash collateral held or re-pledged any non-cash collateral. 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 2023 $m Related amounts not offset Gross amount in the balance sheet included in the Net amount balance Financial Cash Securities included in the sheet instruments collateral collateral balance sheet note (i) note (ii) note (iv) Derivative assets 1,820 (138) (1,529) (11) 142 Reverse repurchase agreements 3,616 (12) — (3,604) — Total financial assets 5,436 (150) (1,529) (3,615) 142 Derivative liabilities (225) 138 57 — (30) Securities lending and repurchase agreements (713) — (18) 730 (1) Total financial liabilities (938) 138 39 730 (31) 31 Dec 2022 $m Related amounts not offset Gross amount in the balance sheet included in the Net amount balance Financial Cash Securities included in the sheet instruments collateral collateral balance sheet note (i) note (ii) note (iii) note (iv) Derivative assets 457 (179) (217) — 61 Reverse repurchase agreements 3,174 — — (3,174) — Total financial assets 3,631 (179) (217) (3,174) 61 Derivative liabilities (284) 179 27 6 (72) Securities lending and repurchase agreements (582) — 13 566 (3) Total financial liabilities (866) 179 40 572 (75) 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. |
Insurance and reinsurance contr
Insurance and reinsurance contracts | 12 Months Ended |
Dec. 31, 2023 | |
Insurance and reinsurance contracts | |
Insurance and reinsurance contracts | C3 Insurance and reinsurance contracts Portfolios of insurance contracts that are assets and those that are liabilities, and portfolios of reinsurance contracts that are assets and those that are liabilities, are presented separately in the statement of financial position. Any assets or liabilities recognised for cash flows arising before the recognition of the related group of contracts (including any assets for insurance acquisition cash flows) are included in the carrying amount of the related portfolios of contracts. The amounts recorded in the balance sheet as insurance and reinsurance contract asset and liabilities are set out in the table below (on the left hand side), broken out into their component parts. Additionally presented on the right hand side are the same amounts but including the Group’s share of the relevant amounts of its joint venture and associates, which are equity accounted for on the statement of financial position and hence all assets and liabilities of those businesses are included in a separate line. Management believe that the movement in the CSM is a key driver for understanding changes in profitability from period to period and as the Group’s share of the results of the joint ventures and associates are included in the Group’s adjusted operating and total profit, it is relevant to understand the movement in insurance assets and liabilities including those entities too. Therefore note C3 comprises: – Note C3.1 which sets out the components of assets and liabilities as described above. It also provides adjusted shareholders’ equity which includes the Contractual service margin net of tax and other adjustments, which management believes is a better measure of value than IFRS shareholders’ equity alone as it includes the Group’s future expected profits (based on assumptions at 31 December) on policies that are in-force at the balance sheet date. – Note C3.2 which contains the required IFRS 17 disclosures on how certain insurance and reinsurance contract balances have moved during the year, including an analysis of the movement of CSM by transition type. These exclude JV and associate balances. – Note C3.3 includes the disclosures in C3.2 which management believe would be helpful to show on a basis that includes the Group’s share of joint ventures and associates, together with a further breakdown of the movement in insurance and reinsurance contract balances by segment. The difference in most cases between the notes in C3.2 and C3.3 is solely the addition of the joint venture and associate amounts and so no explicit reconciliation has been provided to bridge between the two. C3.1 Group overview (a) Analysis of Group insurance and reinsurance contract assets and liabilities The table below provides an analysis of portfolio of insurance and reinsurance (RI) contract assets and liabilities held on the Group’s statement of financial position: Excluding JVs and associates Including JVs and associates note (i) Assets Liabilities Net liabilities (assets) Assets Liabilities Net liabilities (assets) Insurance RI Insurance RI Insurance RI Insurance RI Insurance RI Insurance RI $m $m $m $m $m $m $m $m $m $m $m $m note (ii) note (ii) As at 31 Dec 2023 Best estimate liabilities (BEL) 3,952 1,175 120,115 1,182 116,163 7 3,998 1,315 139,673 1,222 135,675 (93) Risk adjustment for non-financial risk (RA) (631) (84) 1,713 (21) 2,344 63 (630) (67) 1,969 (24) 2,599 43 Contractual service margin (CSM) (2,173) 1,335 18,011 (10) 20,184 (1,345) (2,176) 1,321 20,176 (19) 22,352 (1,340) Insurance contract balances 1,148 2,426 139,839 1,151 138,691 (1,275) 1,192 2,569 161,818 1,179 160,626 (1,390) Assets for insurance acquisition cash flows 32 — 1 — (31) — 32 — 1 — (31) — Insurance and reinsurance contract (assets) liabilities 1,180 2,426 139,840 1,151 138,660 (1,275) 1,224 2,569 161,819 1,179 160,595 (1,390) As at 31 Dec 2022 Best estimate liabilities (BEL) 3,540 508 107,582 1,162 104,042 654 3,562 652 124,297 1,193 120,735 541 Risk adjustment for non-financial risk (RA) (505) (39) 1,418 (44) 1,923 (5) (502) (21) 1,662 (47) 2,164 (26) Contractual service margin (CSM) (1,929) 1,387 17,239 57 19,168 (1,330) (1,921) 1,369 19,383 54 21,304 (1,315) Insurance contract balances 1,106 1,856 126,239 1,175 125,133 (681) 1,139 2,000 145,342 1,200 144,203 (800) Assets for insurance acquisition cash flows 28 — 3 — (25) — 28 — 3 — (25) — Insurance and reinsurance contract (assets) liabilities 1,134 1,856 126,242 1,175 125,108 (681) 1,167 2,000 145,345 1,200 144,178 (800) As at 1 Jan 2022 (transition date) Best estimate liabilities (BEL) 3,818 1,752 126,438 1,474 122,620 (278) 3,993 1,916 142,146 1,501 138,153 (415) Risk adjustment for non-financial risk (RA) (547) (15) 1,661 (46) 2,208 (31) (575) 1 1,868 (49) 2,443 (50) Contractual service margin (CSM) (2,050) 1,050 21,699 (174) 23,749 (1,224) (2,161) 1,023 23,787 (176) 25,948 (1,199) Insurance contract balances 1,221 2,787 149,798 1,254 148,577 (1,533) 1,257 2,940 167,801 1,276 166,544 (1,664) Assets for insurance acquisition cash flows 29 — — — (29) — 29 — — — (29) — Insurance and reinsurance contract (assets) liabilities 1,250 2,787 149,798 1,254 148,548 (1,533) 1,286 2,940 167,801 1,276 166,515 (1,664) Notes (i) The Group’s investments in JVs and associates are accounted for on an equity method and the Group’s share of insurance and reinsurance contract liabilities and assets as shown above relate to the life business of CPL, India and Takaful business in Malaysia. (ii) At 31 December 2023 and 2022 the Group’s exposure to credit risk arising from insurance contracts issued is not material to the Group as premiums receivable from an individual party (policyholders and intermediaries) is not material to the Group. (b) Adjusted shareholders’ equity 31 Dec 2023 $m 31 Dec 2022 $m 1 Jan 2022 (transition date) $m Group’s Group’s Group’s Balances share Total Balances share Total Balances share Total excluding relating to including excluding relating to including excluding relating to including JVs and JVs and JVs and JVs and JVs and JVs and JVs and JVs and JVs and associates associates associates associates associates associates associates associates associates Shareholders’ equity 15,883 1,940 17,823 14,472 2,259 16,731 16,238 2,698 18,936 CSM, net of reinsurance 18,839 2,173 21,012 17,838 2,151 19,989 22,525 2,224 24,749 Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders 1,367 — 1,367 1,295 — 1,295 1,144 — 1,144 Less: Related tax adjustments (2,347) (509) (2,856) (2,295) (509) (2,804) (2,531) (527) (3,058) Adjusted shareholders’ equity 33,742 3,604 37,346 31,310 3,901 35,211 37,376 4,395 41,771 C3.2 Analysis of movements in insurance and reinsurance contract balances (excluding JVs and associates ) (a) Analysis of movements in insurance and reinsurance contract balances by measurement component An analysis of movements in insurance and reinsurance contract balances by measurement component and excluding the Group’s share of insurance and reinsurance contract liabilities and assets relate to the life JVs and associates is set out below: Excluding JVs and associates 2023 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,540) 505 1,929 (1,106) (508) 39 (1,387) (1,856) Opening liabilities 107,582 1,418 17,239 126,239 1,162 (44) 57 1,175 Net opening balance at 1 Jan 104,042 1,923 19,168 125,133 654 (5) (1,330) (681) Changes that relate to future service Changes in estimates that adjust the CSM (1,181) 343 838 — 57 43 (100) — Changes in estimates that result in losses or reversal of losses on onerous contracts 196 (6) — 190 (98) — — (98) New contracts in the year (2,461) 295 2,173 7 75 (5) (70) — (3,446) 632 3,011 197 34 38 (170) (98) Changes that relate to current service Release of CSM to profit or loss — — (2,193) (2,193) — — 203 203 Release of risk adjustment to profit or loss — (228) — (228) — 24 — 24 Experience adjustments (176) — — (176) 45 — — 45 (176) (228) (2,193) (2,597) 45 24 203 272 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 144 (2) — 142 (3) — — (3) Insurance service result (3,478) 402 818 (2,258) 76 62 33 171 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts (43) 47 229 233 6 (2) (49) (45) Other net finance (income) expense 8,650 (32) (12) 8,606 (156) 10 – (146) 8,607 15 217 8,839 (150) 8 (49) (191) Total amount recognised in income statement 5,129 417 1,035 6,581 (74) 70 (16) (20) Effect of movements in exchange rates 225 4 (19) 210 1 (2) 1 — Total amount recognised in comprehensive income 5,354 421 1,016 6,791 (73) 68 (15) (20) Cash flows Premiums received net of ceding commissions paid 22,294 — — 22,294 (1,032) — — (1,032) Insurance acquisition cash flows (4,270) — — (4,270) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (11,082) — — (11,082) 458 — — 458 Total cash flows 6,942 — — 6,942 (574) — — (574) Other changes note (175) — — (175) — — — — Closing assets (3,952) 631 2,173 (1,148) (1,175) 84 (1,335) (2,426) Closing liabilities 120,115 1,713 18,011 139,839 1,182 (21) (10) 1,151 Net closing balance at 31 Dec 116,163 2,344 20,184 138,691 7 63 (1,345) (1,275) Excluding JVs and associates 2022 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,818) 547 2,050 (1,221) (1,752) 15 (1,050) (2,787) Opening liabilities 126,438 1,661 21,699 149,798 1,474 (46) (174) 1,254 Net opening balance at 1 Jan 122,620 2,208 23,749 148,577 (278) (31) (1,224) (1,533) Changes that relate to future service Changes in estimates that adjust the CSM 4,043 (222) (3,821) — 280 10 (290) — Changes in estimates that result in losses or reversal of losses on onerous contracts 79 (52) — 27 (3) — — (3) New contracts in the period (1,811) 232 1,582 3 (45) 1 44 — 2,311 (42) (2,239) 30 232 11 (246) (3) Changes that relate to current service Release of CSM to profit or loss — — (2,181) (2,181) — — 168 168 Release of risk adjustment to profit or loss — (169) — (169) — 2 — 2 Experience adjustments (108) — — (108) (87) — — (87) (108) (169) (2,181) (2,458) (87) 2 168 83 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 144 2 — 146 25 — — 25 Insurance service result 2,347 (209) (4,420) (2,282) 170 13 (78) 105 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 13 9 218 240 (3) (1) (41) (45) Other net finance (income) expense (28,954) (26) 117 (28,863) 1,224 10 4 1,238 (28,941) (17) 335 (28,623) 1,221 9 (37) 1,193 Total amount recognised in income statement (26,594) (226) (4,085) (30,905) 1,391 22 (115) 1,298 Effect of movements in exchange rates (1,595) (59) (496) (2,150) (19) 4 9 (6) Total amount recognised in comprehensive income (28,189) (285) (4,581) (33,055) 1,372 26 (106) 1,292 Cash flows Premiums received net of ceding commissions paid 23,464 — — 23,464 (970) — — (970) Insurance acquisition cash flows (3,138) — — (3,138) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (10,650) — — (10,650) 519 — — 519 Total cash flows 9,676 — — 9,676 (451) — — (451) Other changes note (65) — — (65) 11 — — 11 Closing assets (3,540) 505 1,929 (1,106) (508) 39 (1,387) (1,856) Closing liabilities 107,582 1,418 17,239 126,239 1,162 (44) 57 1,175 Net closing balance at 31 Dec 104,042 1,923 19,168 125,133 654 (5) (1,330) (681) * Note Other changes include movements in insurance contract liabilities arising from adjustments to remove the incurred non-cash expenses (such as depreciation,amortisation) from insurance contract asset/liability balance. Accretion of interest includes interest on policy loans. (b) CSM transition approach The table below provides an analysis of CSM by transition approach excluding JVs and associates: Insurance contracts (excluding JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan 822 3,635 14,711 19,168 944 4,798 18,007 23,749 Changes that relate to future service Changes in estimates that adjust the CSM 143 462 233 838 18 (686) (3,153) (3,821) New contracts in the year — — 2,173 2,173 — — 1,582 1,582 143 462 2,406 3,011 18 (686) (1,571) (2,239) Changes that relate to current service Release of CSM to profit or loss (135) (434) (1,624) (2,193) (122) (466) (1,593) (2,181) 8 28 782 818 (104) (1,152) (3,164) (4,420) Net finance income (expenses) from insurance contracts 24 3 190 217 35 40 260 335 Effect of movements in exchange rates (25) 8 (2) (19) (53) (51) (392) (496) Balance at 31 Dec 829 3,674 15,681 20,184 822 3,635 14,711 19,168 * Other contracts represent groups of insurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. Reinsurance contracts (excluding JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan — (34) (1,296) (1,330) — (26) (1,198) (1,224) Changes that relate to future service Changes in estimates that adjust the CSM — (19) (81) (100) — (18) (272) (290) New contracts in the year — — (70) (70) — — 44 44 — (19) (151) (170) — (18) (228) (246) Changes that relate to current service Release of CSM to profit or loss — 8 195 203 — 8 160 168 — (11) 44 33 — (10) (68) (78) Net finance income (expenses) from reinsurance contracts — (1) (48) (49) — — (37) (37) Effect of movements in exchange rates — 1 — 1 — 2 7 9 Balance at 31 Dec — (45) (1,300) (1,345) — (34) (1,296) (1,330) * Other contracts represent groups of reinsurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. An analysis of insurance revenue by transition approach is included in note C3.2(c). (c) Analysis of movements in insurance and reinsurance contract balances by remaining coverage and incurred claims (excluding JVs and associates) An analysis of movements in insurance and reinsurance contract balances by remaining coverage and incurred claims and excluding JVs and associates is set out below: Excluding JVs and associates 2023 $m Insurance Reinsurance Liabilities for remaining Liabilities for remaining coverage coverage Excluding Liabilities Excluding Liabilities loss Loss for incurred loss Loss for incurred component component claims Total component component claims Total note (i) note (i) Opening assets (1,200) 14 80 (1,106) (1,460) (29) (367) (1,856) Opening liabilities 123,855 622 1,762 126,239 1,220 (6) (39) 1,175 Net opening balance at 1 Jan 122,655 636 1,842 125,133 (240) (35) (406) (681) Insurance revenue Contracts measured under the modified retrospective approach (247) — — (247) Contracts measured under the fair value approach (733) — — (733) Other contracts note (ii) (8,391) — — (8,391) (9,371) — — (9,371) Insurance service expense Incurred claims and other directly attributable expenses — (42) 4,071 4,029 Amortisation of insurance acquisition cash flows 2,745 — — 2,745 Losses or reversal of losses on onerous contracts — 197 — 197 Adjustments to liability for incurred claims — — 142 142 2,745 155 4,213 7,113 Net (income) expense from reinsurance contracts held 640 (98) (371) 171 Insurance service result (6,626) 155 4,213 (2,258) 640 (98) (371) 171 Investment components and premium refunds (7,095) — 7,095 — (1) — 1 — Net finance (income) expenses from insurance and reinsurance contracts 8,792 15 32 8,839 (191) — — (191) Total amount recognised in income statement (4,929) 170 11,340 6,581 448 (98) (370) (20) Effect of movement in exchange rates 220 (4) (6) 210 (1) – 1 — Total amount recognised in comprehensive income (4,709) 166 11,334 6,791 447 (98) (369) (20) Cash flows Premiums received net of ceding commissions 22,294 — — 22,294 (1,032) — — (1,032) Insurance acquisition cash flows (4,270) — — (4,270) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* — — (11,082) (11,082) — — 458 458 Total cash flows 18,024 — (11,082) 6,942 (1,032) — 458 (574) Other changes note (iii) (236) 23 38 (175) 2 (1) (1) — Closing assets (1,285) 20 117 (1,148) (2,023) (119) (284) (2,426) Closing liabilities 137,019 805 2,015 139,839 1,200 (15) (34) 1,151 Net closing balance at 31 Dec 135,734 825 2,132 138,691 (823) (134) (318) (1,275) Excluding JVs and associates 2022 $m Insurance Reinsurance Liabilities for remaining Liabilities for remaining coverage coverage Excluding Liabilities Excluding Liabilities loss Loss for incurred loss Loss for incurred component component claims Total component component claims Total note (i) note (i) Opening assets (1,308) 17 70 (1,221) (2,431) (32) (324) (2,787) Opening liabilities 147,209 651 1,938 149,798 1,314 (1) (59) 1,254 Net opening balance at 1 Jan 145,901 668 2,008 148,577 (1,117) (33) (383) (1,533) Insurance revenue Contracts measured under the modified retrospective approach (367) — — (367) Contracts measured under the fair value approach (1,083) — — (1,083) Other contracts note (ii) (7,099) — — (7,099) (8,549) — — (8,549) Insurance service expense Incurred claims and other directly attributable expenses — (41) 3,679 3,638 Amortisation of insurance acquisition cash flows 2,453 — — 2,453 Losses or reversal of losses on onerous contracts — 30 — 30 Adjustments to liability for incurred claims — — 146 146 2,453 (11) 3,825 6,267 Net (income) expense from reinsurance contracts held 487 (2) (380) 105 Insurance service result (6,096) (11) 3,825 (2,282) 487 (2) (380) 105 Investment components and premium refunds (6,895) — 6,895 — 179 — (179) — Net finance (income) expenses from insurance and reinsurance contracts (28,605) (21) 3 (28,623) 1,182 — 11 1,193 Total amount recognised in income statement (41,596) (32) 10,723 (30,905) 1,848 (2) (548) 1,298 Effect of movement in exchange rates (2,044) (15) (91) (2,150) (10) 2 2 (6) Total amount recognised in comprehensive income (43,640) (47) 10,632 (33,055) 1,838 — (546) 1,292 Cash flows Premiums received net of ceding commissions paid 23,464 — — 23,464 (970) — — (970) Insurance acquisition cash flows (3,138) — — (3,138) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* — — (10,650) (10,650) — — 519 519 Total cash flows 20,326 — (10,650) 9,676 (970) — 519 (451) Other changes note (iii) 68 15 (148) (65) 9 (2) 4 11 Closing assets (1,200) 14 80 (1,106) (1,460) (29) (367) (1,856) Closing liabilities 123,855 622 1,762 126,239 1,220 (6) (39) 1,175 Net closing balance at 31 Dec 122,655 636 1,842 125,133 (240) (35) (406) (681) * Notes (i) The Group establishes a loss component of the liability for remaining coverage for onerous groups of insurance contracts. The loss component determines the amounts of fulfilment cash flows that are subsequently presented in profit or loss as reversals of losses on onerous contracts and are excluded from insurance revenue when they occur. (ii) Other contracts represent groups of insurance and reinsurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. (iii) Other changes include adjustments to remove the incurred non-cash expenses (such as depreciation and amortisation) from insurance contract asset/liability balance. (d) Effect of insurance and reinsurance contracts initially recognised in the year The following tables summarise the effect on the measurement components arising from the initial recognition of insurance and reinsurance contracts in the year, excluding the effect from the Group’s share of the amounts relating to life JVs and associates. (i) Insurance contracts Excluding JVs and associates 2023 $m 2022 $m Profitable Onerous Profitable Onerous contracts contracts contracts contracts issued issued Total issued issued Total Estimate of present value of expected future cash outflows: Insurance acquisition cash flows 4,365 101 4,466 2,416 49 2,465 Claims and other directly attributable expenses 17,125 348 17,473 12,153 420 12,573 21,490 449 21,939 14,569 469 15,038 Estimate of present value of expected future cash inflows (23,916) (484) (24,400) (16,379) (470) (16,849) Risk adjustment for non-financial risk 253 42 295 228 4 232 CSM 2,173 — 2,173 1,582 — 1,582 Loss recognised on initial recognition — 7 7 — 3 3 (ii) Reinsurance contracts Excluding JVs and associates 2023 $m 2022 $m Contracts Contracts Contracts Contracts initiated without initiated with initiated without initiated with loss-recovery loss-recovery loss-recovery loss-recovery component component Total component component Total Estimate of present value of expected future cash outflows 1,022 (1) 1,021 762 — 762 Estimate of present value of expected future cash inflows (946) — (946) (813) 6 (807) Risk adjustment for non-financial risk (5) — (5) 1 — 1 CSM (71) 1 (70) 50 (6) 44 Profit (loss) recognised on initial recognition — — — — — — C3.3 Analysis of movements in insurance and reinsurance contract balances (including JVs and associates) (a) Analysis of movements in insurance and reinsurance contract balances by measurement component An analysis of movements in insurance and reinsurance contract balances by measurement component and including the Group’s share of insurance and reinsurance contract liabilities and assets relate to the life JVs and associates is set out below: Including JVs and associates 2023 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,562) 502 1,921 (1,139) (652) 21 (1,369) (2,000) Opening liabilities 124,297 1,662 19,383 145,342 1,193 (47) 54 1,200 Net opening balance at 1 Jan 120,735 2,164 21,304 144,203 541 (26) (1,315) (800) Changes that relate to future service Changes in estimates that adjust the CSM (1,142) 341 801 — 62 43 (105) — Changes in estimates that result in losses or reversal of losses on onerous contracts 224 (8) — 216 (93) — — (93) New contracts in the year (2,687) 317 2,429 59 86 (6) (81) (1) (3,605) 650 3,230 275 55 37 (186) (94) Changes that relate to current service Release of CSM to profit or loss — — (2,414) (2,414) — — 206 206 Release of risk adjustment to profit or loss — (242) — (242) — 27 — 27 Experience adjustments (170) — — (170) 50 — — 50 (170) (242) (2,414) (2,826) 50 27 206 283 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 130 (3) — 127 — — — — Insurance service result (3,645) 405 816 (2,424) 105 64 20 189 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 158 52 307 517 (3) (3) (47) (53) Other net finance (income) expense 10,379 (20) (12) 10,347 (155) 9 — (146) 10,537 32 295 10,864 (158) 6 (47) (199) Total amount recognised in income statement 6,892 437 1,111 8,440 (53) 70 (27) (10) Effect of movements in exchange rates (49) (2) (63) (114) 2 (1) 2 3 Total amount recognised in comprehensive income 6,843 435 1,048 8,326 (51) 69 (25) (7) Cash flows Premiums received net of ceding commissions paid 26,224 — — 26,224 (1,137) — — (1,137) Insurance acquisition cash flows (4,802) — — (4,802) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (13,144) — — (13,144) 554 — — 554 Total cash flows 8,278 — — 8,278 (583) — — (583) Other changes note (181) — — (181) — — — — Closing assets (3,998) 630 2,176 (1,192) (1,315) 67 (1,321) (2,569) Closing liabilities 139,673 1,969 20,176 161,818 1,222 (24) (19) 1,179 Net closing balance at 31 Dec 135,675 2,599 22,352 160,626 (93) 43 (1,340) (1,390) Including JVs and associates 2022 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,993) 575 2,161 (1,257) (1,916) (1) (1,023) (2,940) Opening liabilities 142,146 1,868 23,787 167,801 1,501 (49) (176) 1,276 Net opening balance at 1 Jan 138,153 2,443 25,948 166,544 (415) (50) (1,199) (1,664) Changes that relate to future service Changes in estimates that adjust the CSM 4,214 (226) (3,988) — 284 10 (294) — Changes in estimates that result in losses or reversal of losses on onerous contracts 162 (52) — 110 (17) — — (17) New contracts in the period (2,210) 259 2,027 76 (37) — 37 — 2,166 (19) (1,961) 186 230 10 (257) (17) Changes that relate to current service Release of CSM to profit or loss — — (2,413) (2,413) — — 171 171 Release of risk adjustment to profit or loss — (184) — (184) — 5 — 5 Experience adjustments (119) — — (119) (80) — — (80) (119) (184) (2,413) (2,716) (80) 5 171 96 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 133 1 — 134 28 — — 28 Insurance service result 2,180 (202) (4,374) (2,396) 178 15 (86) 107 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 182 13 294 489 (8) (6) (39) (53) Other net finance (income) expense (28,612) (12) 117 (28,507) 1,215 10 4 1,229 (28,430) 1 411 (28,018) 1,207 4 (35) 1,176 Total amount recognised in income statement (26,250) (201) (3,963) (30,414) 1,385 19 (121) 1,283 Effect of movements in exchange rates (3,070) (78) (681) (3,829) 3 5 5 13 Total amount recognised in comprehensive income (29,320) (279) (4,644) (34,243) 1,388 24 (116) 1,296 Cash flows Premiums received net of ceding commissions paid 27,916 — — 27,916 (1,013) — — (1,013) Insurance acquisition cash flows (3,690) — — (3,690) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (12,241) — — (12,241) 567 — — 567 Total cash flows 11,985 — — 11,985 (446) — — (446) Other changes note (83) — — (83) 14 — — 14 Closing assets (3,562) 502 1,921 (1,139) (652) 21 (1,369) (2,000) Closing liabilities 124,297 1,662 19,383 145,342 1,193 (47) 54 1,200 Net closing balance at 31 Dec 120,735 2,164 21,304 144,203 541 (26) (1,315) (800) * Note Other changes include movements in insurance contract liabilities arising from adjustments to remove the incurred non-cash expenses (such as depreciation, amortisation) from insurance contract asset/liability balance. Accretion of interest includes interest on policy loans. (b) Analysis of CSM by transition approach including JVs and associates Insurance contracts (including JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan 2,033 4,102 15,169 21,304 2,467 5,355 18,126 25,948 Changes that relate to future service Changes in estimates that adjust the CSM 117 496 188 801 (92) (707) (3,189) (3,988) New contracts in the year — — 2,429 2,429 — — 2,027 2,027 117 496 2,617 3,230 (92) (707) (1,162) (1,961) Changes that relate to current service Release of CSM to profit or loss (247) (458) (1,709) (2,414) (250) (511) (1,652) (2,413) (130) 38 908 816 (342) (1,218) (2,814) (4,374) Net finance income (expenses) from insurance contracts 66 9 220 295 83 54 274 411 Effect of movements in exchange rates (47) (6) (10) (63) (175) (89) (417) (681) Balance at 31 Dec 1,922 4,143 16,287 22,352 2,033 4,102 15,169 21,304 * Other contracts represent groups of insurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. The majority of the CSM on transition on insurance contracts under MRA arises from CPL while the majority of the CSM on transition under FVA arises from the Hong Kong and Singapore businesses. The transition approach adopted by the Group’s main business segments for the different cohorts of their insurance contracts is summarised in the table below. The overlap between approaches reflects the fact that the approaches used vary by insurance contract portfolio and year of issue (cohort). FRA MRA FVA Cohort Cohort Cohort CPL n/a 2016 – 2021 Pre 2016 H |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
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 that the goodwill may be impaired. Goodwill shown on the consolidated statement of financial position represents amounts allocated to businesses in Asia and Africa in respect of both acquired asset management and life businesses. There has been no impairment as at 31 December 2023 and 2022. 2023 $m 2022 $m Carrying value at 1 Jan 890 907 Exchange differences 6 (17) Carrying value at 31 Dec 896 890 Impairment testing Goodwill does not generate cash flows independently of other groups of assets and thus is assigned to CGUs for the purposes of impairment testing. These 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 2023, $449 million (31 December 2022: $445 million) relates to asset management business in Thailand and $238 million (31 December 2022: $234 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 two acquired entities were merged as Eastspring Asset Management (Thailand) Co., Ltd in 2022. The goodwill impairment testing for these businesses is prepared as a single CGU reflecting that these businesses are managed together. The recoverable amount has been determined by calculating the value in use of the 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 or forecast; – A constant growth rate of 3.5 per cent (2022: 3.5 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 (31 December 2022: 9.0 per cent); and – The c ontinuation 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. No material impairment is expected to occur if a reasonably possible change is made to each of the individual key assumptions, which the Group has taken to be a 10 per cent fall in cashflow projections, a 1 per cent fall in the growth rate or a 1 per cent increase in the discount rate. A more significant fall or a combination of effects could have a larger impact on the recoverable value and so there are circumstances where an impairment could occur. C4.2 Other intangible assets Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. 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 goodwill, 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 Consolidated income statement and allocated between attributable and non-attributable expenses for the Group's insurance entities as shown in note B2. Impairment testing is conducted when there is an indication that the intangible asset may be impaired. 2023 $m 2022 $m Distribution Other Distribution Other rights intangibles Total rights intangibles Total note (i) note (ii) note (i) note (ii) Balance at 1 Jan Cost 5,176 489 5,665 5,037 425 5,462 Accumulated amortisation (1,546) (235) (1,781) (1,255) (192) (1,447) 3,630 254 3,884 3,782 233 4,015 Additions 415 83 498 206 83 289 Amortisation charge (330) (49) (379) (301) (48) (349) Disposals and transfers — (6) (6) — (6) (6) Exchange differences and other movements (6) (5) (11) (57) (8) (65) Balance at 31 Dec 3,709 277 3,986 3,630 254 3,884 Comprising: Cost 5,585 537 6,122 5,176 489 5,665 Accumulated amortisation (1,876) (260) (2,136) (1,546) (235) (1,781) 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) Included within other intangibles are software and licence fees. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 $m 31 Dec 2022 $m Subordinated debt: US $750 m 4.875% Notes 750 750 €20 m Medium Term Notes 2023 note (ii) — 21 £435 m 6.125% Notes 2031 551 520 US $1,000 m 2.95% Notes 2033 996 995 Senior debt: note (i) £300 m 6.875% Notes 2023 note (ii) — 361 £250 m 5.875% Notes 2029 301 281 US $1,000 m 3.125% Notes 2030 988 987 US $350 m 3.625% Notes 2032 347 346 Total core structural borrowings of shareholder-financed businesses 3,933 4,261 Notes (i) The senior debt ranks above subordinated debt in the event of liquidation. (ii) T he £300 million Notes were redeemed on 20 January 2023. The €20 million Medium Term Notes were redeemed on 10 July 2023. C5.2 Operational borrowings 31 Dec 2023 $m 31 Dec 2022 $m Borrowings in respect of short-term fixed income securities programmes (commercial paper) 699 501 Lease liabilities under IFRS 16 234 299 Other borrowings 8 15 Total operational borrowings 941 815 |
Risk and sensitivity analysis
Risk and sensitivity analysis | 12 Months Ended |
Dec. 31, 2023 | |
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 assumptions that may have an effect on IFRS basis profit or loss and shareholders’ equity as described below. The market and insurance risks and also sustainability-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 sustainability-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 2023 the Group continued to apply the three commonly used scenarios of plausible global responses to climate change in its scenario testing to identify risks over the short, medium and long-term. The Group’s scenario testing results are translated into sensitivities to economic factors to assess the possible financial consequences of climate change on the Group’s business. Though the Group faces potential financial risks from plausible global responses to climate change, the results for the Group’s scenario testing are not outside observed market volatility suggesting no immediate need for explicit climate change allowance within the current valuations of the Group’s investment portfolio. The Group remains mindful of the limitations within the results of the scenario testing and that the models for the testing continue to change. Additionally, the Group’s climate scenario analysis currently does not consider management actions the Group could take to mitigate the negative impacts of climate change. In addition, given the current insufficiency and uncertainty of data available, at this stage, the Group’s claims and lapses assumptions for its life and health insurance business do not include additional assumptions related to the impacts of climate change over and above those that arise from the annual review of experience. The Group will continue to perform its regular experience analysis, engage with reinsurers and monitor relevant academic studies. If significant changes occur, the financial impacts from climate-related risks on insurance liabilities will be considered. The Group has analysed the distribution of its customers across locations to assess their vulnerability to extreme climate events to improve the Group’s understanding of its customers and its exposure to climate risks. Sensitivity analyses of IFRS profit or loss, shareholders’ equity and CSM 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 profit after tax, shareholders’ equity and CSM to changes in the relevant risk variables, all of which are considered to be reasonably possible at the relevant balance sheet date. The sensitivities reflect consequential impacts from market movements at the valuation 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. The simplified sensitivities below are calculated at the individual business unit level and aggregated to show the Group impact and no group level adjustments are made. Relevant correlation factors include: – Correlation across geographic regions for both financial and non-financial risk factors; and – Correlation across risk factors for mortality and morbidity, expenses, persistency and other risks . The geographical diversity of the Group’s business means that it has some exposure to the risk of foreign exchange rate fluctuations where a group undertaking has a functional currency that differs to US dollar, the Group's presentational currency. Consistent with the Group's accounting policies, the profits of these business units are translated at average exchange rates and shareholders' equity at the closing rate for the reporting period. For 2023 and 2022, the rates for the most significant operations are given in note A1. 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). The impact of changes of foreign exchange rates on the Group’s assets and liabilities from the above exposure is recorded as part of Other comprehensive income and in 2023 represented a loss of $124 million (2022: loss of $603 million) which corresponds to 1 per cent of opening shareholders’ equity (2022: 3 per cent). Additionally note B1.1 ‘Segment Results’ shows the Group’s segment and total profit for 2022 as if it had been prepared using the same exchange rates as 2023, giving an indication of how foreign exchange rates impact the Group’s profit and loss. A 10 per cent increase (strengthening of the US dollar) or decrease (weakening of the US dollar) in these rates would have reduced or increased profit for the year and shareholders’ equity of the Group respectively as follows: 31 Dec 2023 $m 31 Dec 2022 $m Change in local currency to $exchange rates Decrease of 10% Increase of 10% Decrease of 10% Increase of 10% Profit after tax for the year 152 (124) 49 (40) Shareholders’ equity 1,256 (1,028) 1,182 (967) The Group is also exposed to foreign exchange gains and losses on assets and liabilities held by the Group’s undertakings in a currency other than their functional currency. These will often be managed by derivatives or by having assets and liabilities that match in terms of currency. C6.1 Insurance operations (a) Sensitivity to key market risks The table below shows the sensitivity of profit after tax, shareholders’ equity and CSM as at 31 December 2023 and 2022 for insurance segments to the following market risks: - 1 per cent increase and 0.5 per cent decrease in observable risk-free interest rates (as described in note A3.1(a)) 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 and re - pricing for medical business, 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) increased use of reinsurance, repricing of in-force benefits, changes to new business pricing and the mix of new business being sold. The impact of changes in interest rates and equity values impacts both assets and liabilities. For assets backing insurance contract liabilities and those related liabilities, these impacts will vary depending on whether insurance contracts are classified as VFA or GMM. In addition there will be impacts from other shareholder assets that back IFRS shareholders equity rather than insurance contract liabilities. The vast majority of the Group’s investments are classified as FVTPL and so movements as a result of interest rate and equity markets directly impact profit, unless they are offset by corresponding movements in the Group’s liabilities. For VFA contracts (which include the majority of the Group’s participating and unit-linked contracts but not all as discussed in note A2.1) movements in underlying assets are matched by a movement in insurance liabilities. Changes in BEL and risk adjustment as a result of a change in discount rate or from changes in the variable fee (that is dependent on the value of underlying assets) are taken as a change to the CSM with no immediate impact on profit or shareholders’ equity. There will however be an impact on profit and shareholders’ equity from changes to the CSM amortisation as a result of changes both to the CSM and the discounting of the coverage units. Onerous contracts with no CSM will also have impacts going directly to the income statement. For GMM contracts, the CSM is calculated on a locked-in basis (ie using discount rates applied at the dates of initial recognition of each group of contracts), whereas the BEL and risk adjustment are calculated using a current discount rate. This accounting mismatch passes through the income statement. The impact will depend on whether the BEL is an asset or a liability. For BEL assets, which are largely offset by CSM liabilities, (ie for certain protection contracts where future premiums are expected to exceed future claims and expenses) increases in interest rates will reduce the BEL asset with no impact on the CSM liability and hence reduce profit. For a BEL liability, where the BEL and CSM liabilities are backed by invested assets, (eg certain Universal Life contracts) there are likely to be offsetting asset impacts (for example BEL liabilities and bond values will both reduce as interest rates increase) and the impact on profit will be dependent on any mismatches between assets and liabilities together with the impact of the CSM being calculated on a locked-in basis. For other shareholder assets, that are not backing insurance contract liabilities increases in interest rates and falls in equity markets reduce asset values, which under the Group’s accounting policy pass directly through the income statement and hence reduce profit (vice-versa for decreases in interest rates and increases in equity markets). The income statement volatilities stated above lead to a volatility in the shareholders’ equity to the same extent. Base values 2023 $m 2022 $m Profit (loss) after tax for the year from insurance segments 2,099 (494) Group shareholders’ equity as at 31 Dec 17,823 16,731 CSM as at 31 Dec including JVs and associates 21,012 19,989 Insurance segments 31 Dec 2023 $m 31 Dec 2022 $m Interest rates and consequential effects Decrease of 0.5 % Increase of 1 % Decrease of 0.5 % Increase of 1 % Increase/(decrease) to shareholders’ equity and profit after tax: Financial assets 6,815 (12,004) 5,873 (10,362) Net insurance contract liabilities (including CSM) (7,332) 12,191 (6,120) 10,295 Net effect on shareholders' equity and profit after tax note (328) 24 (127) (165) Increase/(decrease) to CSM liability: CSM 358 (880) 220 (850) Insurance segments 31 Dec 2023 $m 31 Dec 2022 $m Equity/property market values Decrease of 20 % Increase of 10 % Decrease of 20 % Increase of 10 % Increase/(decrease) to shareholders’ equity and profit after tax: Financial assets (13,359) 6,681 (11,884) 5,939 Net insurance contract liabilities (including CSM) 12,288 (6,254) 10,927 (5,571) Net effect on shareholders' equity and profit after tax note (822) 327 (735) 283 Increase/(decrease) to CSM liability: CSM (1,392) 618 (1,303) 550 Note The net effect on shareholders’ equity and profit after tax reflects the net pre-tax effect on the financial assets and net insurance contract liabilities shown above, together with the pre-tax effect on other non-insurance liabilities and the related tax impact. The sensitivity of the insurance segments 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. Changes to the results of the Africa insurance operations from interest rate or equity price changes would not materially impact the Group's results. The Group uses the segment measure 'Adjusted operating profit' to review the performance of the business (see note B1.2 for how this measure is determined). The impact on 'Adjusted operating profit' will be more muted than on total profit as long-term asset returns are assumed for surplus assets and long-term spreads are assumed for GMM business. Adjusted operating profit will be impacted by changes in CSM amortisation for VFA business following the impact of economic changes on underlying assets and discount rates that impact the value of variable fees, and on the value of onerous contracts losses (or reversal thereof) taken directly to the income statement. The changes in CSM amortisation result from changes both to the CSM and the discounting of the coverage units. The pre-tax adjusted operating profit impacts for a decrease of 0.5 per cent and an increase of 1 per cent in interest rates at 31 December 2023 were $(30) million and $33 million, respectively (2022: $(47) million and $54 million, respectively). The pre-tax adjusted operating profit impacts for a decrease of 20 per cent and an increase of 10 per cent in equity/property market values at 31 December 2023 were $(186) million and $83 million, respectively (2022: $(157) million and $66 million, respectively). (b) Sensitivity to insurance risk For insurance operations, adverse persistency experience can impact the overall 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 effects of these management actions have not been factored into the sensitivities below. In addition many of the business units are exposed to mortality and morbidity risk and changes in maintenance expense level. Changes to the assumed levels of persistency, mortality, morbidity and expenses from that when the contract is first recognised will impact the overall profitability of the insurance contract. These risks are managed on a portfolio basis and reinsurance can be used to mitigate the risk the Group has. In particular for certain medical contracts, product repricing is a key management action that is embedded in the process to mitigate morbidity risk. A degree of medical product repricing is assumed to have been undertaken in the mortality and morbidity sensitivity results shown in the table below. In terms of the impact on the Group’s financial results, changes to shareholders’ equity or profit or loss will occur over the life of the contract, as changes to future cash flows from altered assumptions are recognised as an increase or decrease of CSM (except for onerous contracts), which is then amortised to profit and loss (and hence shareholders’ equity) over time. The table below shows how the shareholders’ equity and CSM would have increased or decreased if changes in the future assumptions in insurance risk that were reasonably possible at the reporting date had occurred. This analysis presents the sensitivities both before and after risk mitigation by reinsurance and assumes that the other variables remain constant. 2023 $m Net effect on shareholders’ equity and profit after tax Net effect on CSM Gross of Net of Gross of Net of Sensitivity to insurance risk: reinsurance reinsurance reinsurance reinsurance Maintenance expenses – 10% increase (77) (71) (420) (427) Lapse rates – 10% increase (88) (76) (1,363) (1,496) Mortality and morbidity – 5% increase (131) (96) (638) (261) 2022 $m Net effect on shareholders’ equity and profit after tax Net effect on CSM Gross of Net of Gross of Net of Sensitivity to insurance risk: reinsurance reinsurance reinsurance reinsurance Maintenance expenses – 10% increase (58) (57) (365) (365) Lapse rates – 10% increase (78) (70) (1,179) (1,274) Mortality and morbidity – 5% increase (88) (79) (548) (217) The pre-tax adjusted operating profit impacts, net of reinsurance, for a 10 per cent increase in maintenance expenses, a 10 per cent increase in lapse rates and a 5 per cent increase in mortality and morbidity were $(61) million, $(95) million and $(85) million, respectively (2022: $(53) million, $(69) million and $(67) million, respectively). A 10 per cent decrease in the maintenance expense and lapse rate assumptions would have a broadly similar opposite effect on profit and shareholders’ equity to the sensitivities shown above. The effect from a 5 per cent decrease in mortality and morbidity assumptions is dependent on the degree of product repricing assumed to have been undertaken. 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 2023 Central operations did not hold significant financial investments other than short-term deposits and money market funds held by the Group’s treasury function for liquidity purposes and so there is immaterial sensitivity to market movements . |
Tax assets and liabilities
Tax assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
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 2023, of the $34 million (31 December 2022: $18 million) current tax recoverable, the majority is expected to be recovered within 12 months after the reporting period. At 31 December 2023, the current tax liability of $275 million (31 December 2022: $208 million) includes $93 million (31 December 2022: $79 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 deferred tax assets of $156 million(31 December 2022: $140 million) and deferred tax liabilities of $1,250 million (31 December 2022: $1,139 million), which are presented on a net basis in each of the categories below for the purpose of this movement analysis only: 2023 $m Other movements Net deferred including Net deferred tax (assets) Movement in foreign tax (assets) liabilities at income exchange liabilities at 1 Jan statement movements 31 Dec Unrealised losses or gains on investments (129) 268 (10) 129 Balances relating to insurance and reinsurance contracts 1,255 (87) 2 1,170 Short-term temporary differences (96) 2 — (94) Unused tax losses (31) (79) (1) (111) Net deferred tax liabilities note 999 104 (9) 1,094 2022 $m Effect of initial Other application of Restated net movements Net deferred IFRS 17 and deferred tax including Net deferred tax (assets) classification (assets) Movement in foreign tax (assets) liabilities overlay of liabilities income exchange liabilities at 1 Jan IFRS 9 at 1 Jan statement movements at 31 Dec Unrealised losses or gains on investments 239 — 239 (361) (7) (129) Balances relating to insurance and reinsurance contracts 2,091 (1,092) 999 297 (41) 1,255 Short-term temporary differences 333 (469) (136) 29 11 (96) Unused tax losses (67) — (67) 32 4 (31) Net deferred tax liabilities note 2,596 (1,561) 1,035 (3) (33) 999 Note Deferred tax assets and deferred tax liabilities in the statement of financial position are offset at an entity level (or in some cases at a jurisdiction level where relevant tax grouping rules apply) as permitted under IAS 12. The Group has applied the mandatory exemption from recognising and disclosing information on the associated deferred tax assets and liabilities at 31 December 2023 as required by the amendments to IAS 12 ‘International Tax Reform – Pillar Two Model Rules’ referred to in note A2.2. At 31 December 2023, a deferred tax asset of $54 million has been recognised in relation to unused UK tax losses and deductible temporary differences, due to an increase in forecast taxable profit in the UK tax group, which follows the change of tax residence of Prudential plc in March 2023 from the UK to Hong Kong. The Group has further unused tax losses and deductible temporary differences of $1,319 million (31 December 2022: $2,235 million) in respect of which no deferred tax asset has been recognised. $837 million of unused tax losses expired at the point of Prudential plc’s tax residency change. Of the unrecognised amounts, $108 million (31 December 2022: $103 million) relates to unused tax losses that will expire within the next ten years (potential tax benefit: $24 million), and the remainder of $1,211 million (31 December 2022: $1,295 million) has no expiry date (potential tax benefit: $240 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 2023, deferred tax liabilities of $225 million (31 December 2022: $210 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, 2023 | |
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. 2023 2022 Number of ordinary Share Share Number of ordinary Share Share Issued shares of 5 p each fully paid shares capital premium shares capital premium $m $m $m $m Balance at 1 Jan 2,749,669,380 182 5,006 2,746,412,265 182 5,010 Shares issued under share-based schemes 3,851,376 1 3 3,257,115 — 2 Shares issued under Hong Kong public offer and international placing in 2022 — — — — (6) Balance at 31 Dec 2,753,520,756 183 5,009 2,749,669,380 182 5,006 Options outstanding under save as you earn schemes to subscribe for shares at each year end shown below are as follows: Number of Share price range shares to from to Exercisable subscribe for (in pence) (in pence) by year 31 Dec 2023 1,671,215 737 p 1,455 p 2029 31 Dec 2022 1,858,292 737 p 1,455 p 2028 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 through the trusts established to facilitate the delivery of shares under employee incentive plans. During the year, the trusts purchased a total number of shares of 3,888,138 (2022: 5,498,486) and the cost of acquiring these shares, including shares purchased for members under employee share purchase plans was $54 million (2022: $77 million). 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. At 31 December 2023, 10.0 million (31 December 2022: 12.6 million) Prudential plc shares were held in the trusts. Other than as disclosed above, the Company and its subsidiaries did not purchase, sell or redeem any Prudential plc listed securities during 2023. Subsequent to the year end, the Company commenced and completed a share repurchase programme in January 2024 in respect of 3,851,376 ordinary shares as disclosed in note D2. |
Capital
Capital | 12 Months Ended |
Dec. 31, 2023 | |
Capital | |
Capital | C9 Capital C9.1 Group objectives, policies and processes for managing capital Capital measure The Group manages its Group GWS capital resources as its measure of capital. At 31 December 2023, estimated Group shareholder GWS capital resources is $24.3 billion (31 December 2022: $23.2 billion). 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. More details on Group capital are given in section I(i) in the Additional unaudited financial information section. 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: – Invest in core capabilities; – Maintain flexibility and absorb shock events; – Cover central costs; – Fund dividends; and – Fund new opportunities where there is a good strategic fit. 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. C9.2 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 set out below. 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. A transition period allows insurers to implement the rules in stages before full implementation of the new regime is required from 2025 onwards. Hong Kong Prudential Hong Kong Limited applies the new risk-based capital regime (HK RBC) following approval in April 2022 from the Hong Kong IA to early adopt this new regime. 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. The HK RBC regime is expected to become effective across the industry in the second half of 2024. The Hong Kong IA issued a consultation paper on the draft rules in December 2023 and Prudential Hong Kong Limited have provided feedback on this. The quantitative impact of any changes to the final rules will be reflected on implementation of the final HK RBC regime. 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 (i.e. negative liabilities are not permitted at a policy level). For unit-linked policies, an unearned premium reserve is established. Malaysia A risk-based capital (RBC) 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 (i.e. negative liabilities are not permitted at fund level). The BNM has initiated a review of its RBC framework for insurers and Takaful operators in 2021 and the BNM has yet to issue their final technical specifications. 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 implementation. 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 financially support expansion of providing insurance coverage to the most vulnerable in Malaysian society through the National B40 Protection Trust Fund. 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: 2023 $m 2022 $m Balance at 1 Jan 466 522 Gains during the year 254 187 Movement in capital requirement (20) 15 Capital injection 3 3 Distributions made to the parent company (205) (214) Exchange and other movements (1) (47) Balance at 31 Dec 497 466 C9.3 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, 2023 | |
Property, plant and equipment. | |
Property, plant and equipment | C10 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. Property, plant and equipment, including the right-of-use assets under operating leases, are generally held at cost less cumulative depreciation calculated using the straight-line method, and impairment charge. Owner occupied properties held by the Group's Singapore business that are underlying items of direct participating contracts are measured at fair value following the adoption of IFRS 17. 31 Dec 2023 $m 31 Dec 2022 $m Property, plant and equipment held at cost note (a) 347 410 Owner occupied properties held at fair value note (b) 27 27 Total property, plant and equipment 374 437 (a) Property, plant and equipment held at cost A reconciliation of the carrying amount of the Group’s property, plant and equipment held at cost from the beginning to the end of the years shown is as follows: 2023 $m 2022 $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 21 486 676 1,183 22 489 678 1,189 Accumulated depreciation (8) (360) (405) (773) (8) (349) (363) (720) Opening net book amount 13 126 271 410 14 140 315 469 Additions — 44 57 101 — 34 49 83 Depreciation and impairment charge — (50) (95) (145) — (39) (106) (145) Disposals, transfers and lease modifications 3 (4) (18) (19) — (2) 26 24 Effect of movements in exchange rates — (1) 1 — (1) (7) (13) (21) Balance at 31 Dec 16 115 216 347 13 126 271 410 Representing: Cost 24 495 683 1,202 21 486 676 1,183 Accumulated depreciation (8) (380) (467) (855) (8) (360) (405) (773) Closing net book amount 16 115 216 347 13 126 271 410 Owner occupied properties held at fair value IFRS 17 amended the subsequent measurement requirements in IAS 16 Property, plant and equipment to permit entities to elect to measure owner-occupied properties that are underlying items of direct participating contracts at fair value through profit or loss.Upon the adoption of IFRS 17, the Group has elected to measure the owner-occupied properties held by the participating funds of its Singapore business at fair value from the transition date. Previously, these properties were measured at cost less accumulated depreciation less any impairment losses. The fair value of these properties is based on market values as assessed by professionally qualified external valuers or by the Group’s qualified surveyors. 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 2023, total right-of-use assets comprised $202 million (31 December 2022: $267 million) of property and $14 million (31 December 2022: $4 million) of non-property assets. 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 2023, the undiscounted value of lease payments beyond the break period not recognised in the lease liabilities is $231 million (31 December 2022: $189 million). The Group has non-cancellable property subleases which have been classified as operating leases under IFRS 16. The sublease rental income received in 2023 for the leases is $7 million (2022: $6 million). Capital expenditure: property, plant and equipment by segment The capital expenditure on property, plant and equipment excluding right - of - use assets in 2023 of $44 million (2022: $34 million) arose as follows: 2023 $m 2022 $m Hong Kong 22 11 Indonesia — 1 Malaysia 1 1 Singapore 2 3 Growth markets and other 15 16 Eastspring 4 2 Total segment 44 34 Unallocated to a segment (central operations) — — Total capital expenditure on property, plant and equipment 44 34 |
Contingencies and related oblig
Contingencies and related obligations | 12 Months Ended |
Dec. 31, 2023 | |
Contingencies and related obligations | |
Contingencies and related obligations | D1 Contingencies and related obligations Litigation and regulatory proceedings The Group is involved in various litigation and regulatory proceedings from time to time. 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. Litigation developments during the year include a case regarding a historic transaction connected to the legal and beneficial ownership of 49 per cent of the ordinary shares of the holding company of Prudential Assurance Malaysia Berhad. Prudential currently owns 51 per cent of this entity but consolidates the entity at 100 per cent reflecting the economic interest of the Group. Prudential has been successful at court hearings relating to the transaction concerned both in the first instance and at the subsequent appeal stage. In July 2023, the Federal Court, which is Malaysia’s highest Court, granted leave to allow the appellant to further appeal the case in the Federal Court. The appeals process is ongoing. 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 provided undertakings to the regulators of its Hong Kong life subsidiary, Prudential Hong Kong Limited, to formalise the circumstances regarding their solvency levels in which intra-group capital support will be provided by Prudential. Other intra-group transactions are discussed in note D3 below. |
Post balance sheet events
Post balance sheet events | 12 Months Ended |
Dec. 31, 2023 | |
Post balance sheet events | |
Post balance sheet events | D2 Post balance sheet events Dividends The 2023 second interim dividend approved by the Board of Directors after 31 December 2023 is as described in note B5. Share repurchase programme to neutralise 2023 employee and agent share scheme issuance On 16 January 2024, the Company announced that the share repurchase programme in respect of 3,851,376 ordinary shares that it announced on 5 January 2024 and commenced on 8 January has been completed. The purpose of the share repurchase programme was to offset dilution from the vesting of awards under employee and agent share schemes during 2023. The Company has repurchased 3,851,376 ordinary shares in aggregate (representing 0.14 per cent of the total number of ordinary shares in issue at the end of the year (as disclosed in note C8)) at a volume weighted average price of £8.2676 per ordinary share for a total consideration of approximately £32 million. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | D3 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. Given the nature of the Group’s business there has historically been 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 IFRS 9 / 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 except for a planned capital injection into CPL, the Group's joint venture business in the Chinese Mainland announced in December 2023. The Group announced that it was providing additional growth capital to CPL of RMB1.25 billion (US$176 million) in cash subject to relevant regulatory approvals, with CITIC, its joint venture partner providing an equal amount. In anticipation of the future capital injection, the Group advanced the cash of $176 million to CPL in December 2023. Key management personnel of the Company, as described in note B2.3, may from time to time purchase insurance or asset management 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 2023, 2022 and 2021, transactions with key management personnel were not deemed to be significant both by virtue of their size and in the context of the individuals’ financial positions. All of these transactions were on terms broadly equivalent to those that prevailed in arm’s-length transactions. Additional details on the Directors’ interests in shares, transactions or arrangements are given in the Compensation and Employees section. Key management remuneration is disclosed in note B2.3. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments | |
Commitments | D4 Commitments The Group has provided, from time to time, certain commitments to third parties. At 31 December 2023, the Group had $2,456 million unfunded commitments (31 December 2022: $2,626 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, 2023 | |
Investments in subsidiary undertakings, joint ventures and associates | |
Investments in subsidiary undertakings, joint ventures and associates | D5 Investments in subsidiary undertakings, joint ventures and associates D5.1 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 following are met: – It has power over an investee; – It is exposed to, or has rights to, variable returns from its involvement with the investee; and – 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 of the Partnership Act, on the basis that the limited partnership is consolidated 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 FVTPL. (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; and – 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 2023 $m 31 Dec 2022 $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 33,657 — 30,771 — Debt securities — 285 — 389 Total investments in unconsolidated structured entities 33,657 285 30,771 389 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 D4). 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 2023 and 2022, 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. D5.2 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 C9.2. D5.3 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 FVTPL, where there are published price quotations, is approximately $0.5 billion at 31 December 2023 (31 December 2022: $0.3 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 2023 and 2022 (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 that are equity accounted for as shown in the Consolidated income statement, is allocated across segments as follows: IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m CPL (577) (345) 278 Hong Kong 9 Malaysia 18 16 28 Growth markets and other note 310 100 (110) Insurance operations (249) (229) 205 Eastspring 158 144 147 Total segment and Group total (91) (85) 352 Note For growth markets and other, as well as the segment results for associates and joint ventures within the segment, the amount shown under IFRS 17 basis includes a credit of $191 million (2022: $72 million credit) of taxes for all life joint ventures and associates. In 2021, under IFRS 4 basis, growth markets and other included other items of $(38) million charge which primarily comprised 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: IFRS 17 basis Statement of financial position: 31 Dec 2023 $m 31 Dec 2022 $m Total assets 33,271 29,914 Total liabilities (including non-controlling interest) 32,005 27,734 Shareholders’ equity 1,266 2,180 The above amounts of assets and liabilities include the following*: Cash and cash equivalents 868 561 Financial liabilities (excluding trade and other payables and provisions) 1,198 985 * The Group's 50 per cent share of CPL's insurance and reinsurance contract balances are shown in note C3.3 (c). IFRS 17 basis IFRS 4 basis Income statement: 2023 $m 2022 $m 2021 $m Revenue 1,676 1,023 7,347 (Loss) profit for the year after tax (733) (550) 453 The above (loss) profit for the year includes the following: Depreciation and amortisation (39) (43) (86) Interest income 543 569 465 Interest expense (2) (3) (2) Income tax credit 422 140 (84) 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: IFRS 17 basis 31 Dec 2023 $m 31 Dec 2022 $m Net assets of CITIC-Prudential Life as shown above 1,266 2,180 Proportion owned by the joint venture partner (50%) 633 1,090 Carrying amount of the Group’s interest in the joint venture (50%) 633 1,090 The Group has received $88 million of dividends from CPL in 2023 (2022: nil). In December 2023, the Group announced a planned capital injection into CPL of $176 million as discussed in note D3. At 31 December 2023, the Group’s investments in joint ventures and associates accounted for using the equity method are $1,940 million (31 December 2022: $2,259 million), out of which $633 million (31 December 2022: $1,090 million) relates to the Group’s interest in CPL as discussed above. The aggregate carrying amount of the Group’s investments in the other joint ventures and associates accounted for using the equity method is $1,307 million (31 December 2022: $1,169 million). D5.4 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 2023. 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 D5.1. Simplified corporate structure as at 31 December 2023 * CPL is a joint venture with CITIC, a leading state owned conglomerate in the Chinese Mainland. † Indirectly held by Prudential Corporation Asia Limited. ‡ The company was incorporated in February 2023 and a 100 per cent subsidiary of Prudential Corporation Asia Limited. 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 26.87% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Global Opportunities Fund U 35.13% 21 Church Street, #01-01, Capital Square Two, Singapore 049480 Aberdeen Standard Singapore Equity Fund U 61.88% AC Financial Partners Limited Partnership PI 100.00% Citypoint, 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 46.52% 27th Floor, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Balanced Growth Fund U 40.43% BOCHK China Equity Fund U 52.42% BOCHK Conservative Growth Fund U 42.17% BOCHK US Dollar Money Market Fund U 37.11% 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 BSP Debt Fund V Unlevered (Non-US) L.P. U 53.00% C/o Benefit Street Partners LLC, New York, New York 10019 Cathay High Yield ex China Cash pay 1-5 Year 2% Issuer Capped ETF U 46.49% 6th Floor, No.39, Sec.2, Dunhua South. Rd., 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 Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Eastspring Asia Pacific High Yield Equity Fund U 39.60% 4th Floor, No.1, Songzhi Rd., 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% 22F (Seoul International Finance Center, Yeouido dong), 10 Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 07326, Republic of 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 ESG Bond Fund U 94.82% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments – Asia Opportunities Equity Fund U 100.00% Eastspring Investments - Asia Pacific Equity Fund U 95.55% Eastspring Investments - Asia Real Estate Multi Asset Income Fund U 35.06% Eastspring Investments - Asian Bond Fund U 89.85% Eastspring Investments - Asian Dynamic Fund U 95.21% Eastspring Investments - Asian Equity Fund U 98.94% Eastspring Investments - Asian Equity Income Fund U 88.46% Eastspring Investments - Asian High Yield Bond Fund U 67.15% Eastspring Investments - Asian Investment Grade Bond Fund U 88.64% EastSpring Investments - Asian Local Bond Fund U 83.45% Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments - Asian Low Volatility Equity Fund U 91.60% Eastspring Investments - Asian Multi Factor Equity Fund U 95.20% Eastspring Investments - China A Shares Growth Fund U 79.87% Eastspring Investments - Dragon Peacock Fund U 97.09% Eastspring Investments - European Investment Grade Bond Fund U 99.88% Eastspring Investments - Global Emerging Markets Bond Fund U 98.06% Eastspring Investments - Global Emerging Markets Dynamic Fund U 38.21% Eastspring Investments - Global Emerging Markets ex-China Dynamic Fund U 100.00% Eastspring Investments - Global Emerging Markets Fundamental Value Fund U 100.00% Eastspring Investments - Global Equity Navigator Fund U 97.86% Eastspring Investments - Global Growth Equity Fund U 42.30% Eastspring Investments - Global Low Volatility Equity Fund U 98.48% Eastspring Investments - Global Market Navigator Fund U 99.60% Eastspring Investments - Global Multi Asset Income Plus Growth Fund U 100.00% Eastspring Investments - Global Technology Fund U 84.16% Eastspring Investments - Greater China Equity Fund U 89.88% Eastspring Investments - India Equity Fund U 58.85% Eastspring Investments - Japan Sustainable Value Fund U 86.85% Eastspring Investments - Pan European Fund U 66.59% Eastspring Investments - US Corporate Bond Fund U 68.69% Eastspring Investments - US High Investment Grade Bond Fund U 85.91% Eastspring Investments - US High Yield Bond Fund U 54.03% Eastspring Investments - US Investment Grade Bond Fund U 58.61% Eastspring Investments - World Value Equity Fund U 93.68% 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 ex-Japan Target Return Fund U 78.56% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments Equity Income Fund U 43.13% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia 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 Oncology Securities Baby Investment Trust (H) U 72.72% 22nd Floor One IFC, 10 Gukjegeumyung-ro, Youngdungpo-gu, Seoul 07326, Korea Eastspring Investments Global Oncology Securities Baby Investment Trust (UH) U 92.43% Eastspring Investments Global Oncology Securities Baby Investment Trust (USD) U 96.00% Eastspring Investments Group Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Growth Fund U 40.96% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, City of Dover, County of Kent, State of Delaware, 19904, United States 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 Open Limited OS 100.00% 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 Eastspring Investments MY Focus Fund U 31.20% 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 66.94% Units 306-308, 3rd Floor, Azia Center, 1233 Lujiazui Ring Road, Shanghai, China, 200120 Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investment Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Unit Trusts - Dragon Peacock Fund ID U 97.79% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Investments Unit Trusts - Singapore ASEAN Equity Fund U 98.85% Eastspring Investments Unit Trusts - Singapore Select Bond Fund U 64.89% Eastspring Investments Vietnam Navigator Fund U 77.52% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 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 100.00% 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 Equity Islamic Asia Pacific USD Kelas B U 86.25% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Eastspring Syariah Fixed Income USD Kelas A U 63.13% First Sentier Global Property Securities Fund U 74.35% 38 Beach Road, #06-11 South Beach Tower, Singapore 189767 FSITC GLOBAL TRENDS FUND U 24.31% 1st Floor, No.6, Sec. 3 ,Minquan West Rd, Taipei FSSA China Focus Fund U 65.21% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296 Ireland Classes of shares Proportion Name of entity held held Registered office address Fubon 1-5 Years US High Yield Bond Ex China U 42.48% 8th Floor, No.108, Sec.1, Dunhua South. Rd., Taipei, Taiwan Fubon Global Investment Grade Bond Fund U 57.59% Fuh Hwa 1-5 Yr High Yield ETF U 44.38% 8th & 9th Floor, No.308, Sec. 2, Bade Rd., Da-an District 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 25.22% 78 Sir John Rogerson's Quay, Dublin, D02 HD32, Ireland GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom 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 22.05% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company Limited OS 22.05% 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 98.42% 8th Floor, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 98.69% iShares Global High Yield Corp Bond UCITS ETF U 55.25% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI Asia ex Japan Climate Action ETF U 73.52% 20 Anson Road, #18-01 Twenty Anson, Singapore 079912 JPMorgan Investment Funds - Japan Sustainable Equity Fund U 62.01% 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg KKP ACTIVE EQUITY FUND U 31.54% 209 KKP Tower A, 17 Fl., Sukhumvit 21 (Asoke), Khlong Toey Nua, Wattana, Bangkok 10110 Thailand Krungsri Greater China Equity Hedged Dividend Fund U 28.12% 12th, 18th Zone B Floor, Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok 10330 Thailand Lasalle Property Securities SICAV-FIS U 100.00% 11-13 Bouldevard de la Foire, L-1528 Luxembourg M&G Asia Property TS Trust U 100.00% 138 Market Street, CapitaGreen #35-01, Singapore 048946 M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% Manulife Asia Pacific Bond Fund U 82.22% 9th Floor, No 89 Son Ren Road, Taipei, Taiwan Manulife AUD Income Bond Fund-A(CNY-H) U 30.73% Manulife China Offshore Bond Fund U 32.48% Manulife Taiwan Dynamic Fund U 26.11% Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 98.98% 101 Tower, 30th Floor, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 40.50% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 98.40% 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 27.97% 10th Floor, No. 144, Sec. 2, Minquan East Rd, Taipei PLUK Agents Savings Fund U 100.00% 8th Floor, 8 Rockwell, Rockwell Drive, Rockwell Center, Makati City Principal Global Silver Age Fund U 31.05% 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% VTrust Tower, Unit A B &C, 3rd Floor, Tchecoslova Blvd (Street 169), Sangkat Veal Vong, Khan 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, Ma |
Discontinued US operations
Discontinued US operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued operations | |
Discontinued US operations | D6 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. In 2021, 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 was classified as available-for-sale under IAS 39. The Group's holding at 31 December 2021 was 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 Total revenue, net of reinsurance 45,972 Total charge, net of reinsurance (43,655) Profit before tax 2,317 Tax (charge) (363) Profit after tax 1,954 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) Attributable to: Equity holders of the Company (4,234) Non-controlling interests (793) Loss for the year (5,027) 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 Loss for the year (5,027) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (763) 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 for the year (2,041) Total comprehensive loss for the year (7,068) Attributable to: Equity holders of the Company (6,283) Non-controlling interests (785) Total comprehensive loss for the year (7,068) (c) Cash flows 2021 $m Net cash flows from operating activities (423) Net cash flows from financing activities note 2,329 Cash divested upon demerger (3,527) Net decrease in cash and cash equivalents (1,621) Cash and cash equivalents at 1 Jan 1,621 Cash and cash equivalents at 31 Dec — 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. |
Condensed Financial Information
Condensed Financial Information of Registrant Prudential plc | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 $m 2022 $m 2021 $m Investment income, including dividends received from subsidiary undertakings 1,430 800 3,642 Investment expenses and charges (203) (207) (328) Gain on transfer of debt to Prudential Funding (Asia) PLC 370 — — Loss on revaluation of Jackson upon demerger — — (439) Corporate expenditure (47) (158) (244) Foreign currency exchange (losses) gains (27) 25 11 Profit on ordinary activities before tax 1,523 460 2,642 Tax credit on profit on ordinary activities 2 5 6 Profit for the financial year 1,525 455 2,648 Other comprehensive income: Items that may be reclassified subsequently to profit or loss Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income 8 (125) 273 Total comprehensive income for the year 1,533 330 2,921 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 2023 $m 31 Dec 2022 $m Fixed assets Investments in subsidiary undertakings 13,786 13,178 Current assets Amounts owed by subsidiary undertakings 7,267 7,501 Other investments: equity securities - fair value through other comprehensive income — 266 Cash at bank and in hand 21 45 7,288 7,812 Liabilities: amounts falling due within one year Subordinated liabilities — (21) Debenture loans — (361) Commercial paper — (501) Amounts owed to subsidiary undertakings (866) (614) Tax payable (7) (9) Accruals and deferred income (7) (63) (880) (1,569) Net current assets 6,408 6,243 Total assets less current liabilities 20,194 19,421 Liabilities: amounts falling due after more than one year Subordinated liabilities — (2,265) Debenture loans — (1,614) Amounts owed to subsidiary undertakings (3,610) — (3,610) (3,879) Total net assets 16,584 15,542 Capital and reserves Share capital 183 182 Share premium 5,009 5,006 Profit and loss account 11,392 10,354 Shareholders’ funds 16,584 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 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 2021 173 2,637 9,476 12,286 Profit for the year — — 2,648 2,648 Valuation movements on Jackson equity securities 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 Jackson equity securities 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 distributions to owners — (4) (434) (438) Balance at 31 Dec 2022 / 1 Jan 2023 182 5,006 10,354 15,542 Profit for the year — — 1,525 1,525 Valuation movements on Jackson equity securities measured at fair value through other comprehensive income — — 8 8 Total comprehensive income for the year — — 1,533 1,533 Transactions with owners, recorded directly in equity New share capital subscribed 1 3 — 4 Share based payment transactions — — 38 38 Dividends — — (533) (533) Total distributions to owners 1 3 (495) (491) Balance at 31 Dec 2023 183 5,009 11,392 16,584 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 2023 $m 2022 $m 2021 $m Operating activities Net cash inflow from operating activities before interest and tax 1,527 664 417 Interest paid (35) (204) (328) Taxes received — (4) (13) Equity dividends paid (533) (474) (421) Net cash inflow (outflow) before operating activities 959 (18) (345) Financing activities Issuance of ordinary share capital 4 (4) 2,383 Issuance of core structural borrowings — 346 995 Redemption of core structural borrowings (393) (2,075) (1,250) Movement in commercial paper and other borrowings to support a short-term fixed income securities program (501) 1 (1) Dividend income from investment in subsidiary undertakings — — 215 Movement in share based payment receivable (4) (111) — Capitalisation of amount owed by subsidiary — (62) — Non-cash transfer of debt to PFAP (3,552) — — Movement in net amount owed by subsidiary undertakings 3,610 (36) (374) Net cash (outflow) inflow from financing activities (836) (1,941) 1,968 Investing activities Disposal of Jackson shares 273 293 83 Investment in subsidiaries (609) — — Capitalisation of intercompany loans 189 — — Net cash (outflow) inflow from investing activities (147) 293 83 Net cash (outflow) inflow for the year (24) (1,666) 1,706 Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities before interest and tax Profit on ordinary activities before tax 1,523 460 2,642 Add back: interest charged to profit or loss 203 207 328 Adjustments for non-cash items: Gain on transfer of subordinated liabilities and debenture loans (370) — — 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 27 8 (6) Decrease (increase) in debtors — 9 (4) Increase (decrease) in creditors 144 (20) 9 Net cash inflow from operating activities before interest and tax 1,527 664 417 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 2023 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’) and Part 15 of the Companies Act 2006. In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements in accordance with international accounting standards adopted for use in the UK but makes amendments where necessary, in order to comply with the Companies Act 2006. The accounting policies set out in note 2 below have been applied consistently to both years presented in these financial statements. The Company and the Group manage cash resources, remittances and financing primarily in US dollars. Accordingly, the functional and presentational currency of the Company is US dollars. On the basis of the assessment of going concern for the Company and the Group as set out in note A1 to the Group IFRS consolidated financial statements, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements for the year ended 31 December 2023. 2 Significant accounting policies Investments in subsidiary undertakings Investments in subsidiary undertakings are shown at cost less impairment. Investments are assessed for indicators of impairment, and if any are identified, any impairment is assessed by comparing the net assets and value in use of the subsidiary undertakings with the carrying value of the investments. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost less expected credit losses, which 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 FVTPL, all 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 defaults on those loans. In all cases, the subsidiaries are expected to have sufficient resources to repay the loans 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. 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 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 and adjustments made in relation to prior years. Current tax recoverable (payable) recognised in the balance sheet is measured at the amount expected to be either recovered from (paid to) relevant tax authorities or Group undertakings in relation to the surrender (claim) of tax losses. Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ‘Income Taxes’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The Company has applied the mandatory exemption from recognising and disclosing information on the associated deferred tax assets and liabilities at 31 December 2023 as required by the amendments to IAS 12 ‘International Tax Reform – Pillar Two Model Rules’ referred to in note A2.2 to the Group IFRS consolidated financial statements. 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. Significant accounting judgement - valuation of debt transfer The fair value of the external debt transferred from the Company to Prudential Funding (Asia) plc in March 2023 was determined by reference to the externally observable prices of these quoted instruments. The intercompany liability due to Prudential Funding (Asia) plc as consideration for the transfer of the external debt liabilities are for the same principal amounts and have identical terms to the external debt, with the exception of an additional margin on the interest rate. It is judged that the most appropriate measure of the fair value of these intercompany items is the fair value of the external debt instruments with an adjustment for the fair value of the additional interest margin, which increased the fair value of the liability by $17 million on initial recognition. 3 Dividends received from subsidiary undertakings The parent company received dividends totalling $1,277 million from its consolidated subsidiary undertakings in 2023 (2022: $708 million; 2021: $3,597 million). 4 Reconciliation from the FRS 101 parent company results to the Group 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 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 Group IFRS results. 2023 $m 2022* $m 2021 $m Profit after tax Profit for the financial year of the Company in accordance with FRS 101 note (i) 1,525 455 2,648 Accounting difference note (ii) (65) 108 28 Share in the IFRS result of the Group, net of distributions to the Company note (iii) 241 (1,570) (4,718) Profit (loss) after tax of the Group attributable to equity holders in accordance with IFRS note (iv) 1,701 (1,007) (2,042) 31 Dec 2023 $m 31 Dec 2022* $m Shareholders’ equity Shareholders’ funds of the Company in accordance with FRS 101 16,584 15,542 Accounting policy difference note (ii) — 66 Share in the IFRS net equity of the Group note(iii) 1,239 1,123 Shareholders’ equity of the Group in accordance with IFRS 17,823 16,731 * The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1 to the Group IFRS consolidated financial statements. Accordingly, the 2022 comparative results have been re-presented from those previously published. Notes (i) The Company’s profit (loss) for the financial year includes distributions to the Company from subsidiaries. (ii) In the current year, accounting difference represents the difference in accounting for expected credit losses on loan assets. In the prior years (2022 and 2021), differences also arose from that effect, together with the difference in treatment of realised gains and losses on investments classified as fair value through other comprehensive income, as the Company applied IFRS 9 in 2022 and 2021 which the Group adopted, without retrospective application, in 2023. (iii) The share in the IFRS result of the Group line represents the parent company’s interest in the earnings of its subsidiaries, joint ventures and associates. The share in the IFRS net equity line represents the parent company's interest in the net assets of its subsidiaries, joint ventures and associates. The movement compared with the prior year 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 (see 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 Equity securities – fair value through other comprehensive income The Company made the election to measure its interest in equity securities in Jackson at FVOCI, which were disposed of entirely in 2023. The fair value of the Company’s holding in the equity securities of Jackson Financial Inc. was 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 gain of $8 million (2022: a loss of $(125) million) 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 2023, which was approved by the Board of Directors after 31 December 2023, is described in note B5 of the Group IFRS consolidated financial statements. Share repurchase programme to neutralise 2023 employee and agent share scheme issuance On 16 January 2024, the Company announced that the share repurchase programme in respect of 3,851,376 ordinary shares that it announced on 5 January 2024 and commenced on 8 January has been completed. The purpose of the share repurchase programme was to offset dilution from the vesting of awards under employee and agent share schemes during 2023. The Company has repurchased 3,851,376 ordinary shares in aggregate (representing 0.14 per cent of the total number of ordinary shares in issue at the end of the year (as disclosed in note C8 of the Group IFRS consolidated financial statements)) at a volume weighted average price of £8.2676 per ordinary share for a total consideration of approximately £32 million. |
Basis of preparation and acco_2
Basis of preparation and accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 UK-adopted international accounting standards. At 31 December 2023, there were no unadopted standards effective for the year ended 31 December 2023 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 has adopted IFRS 17, 'Insurance Contracts' and IFRS 9, 'Financial Instruments'(including any consequential amendments to other standards) as issued by the IASB and as adopted for use in the UK from 1 January 2023, as discussed in note A2.1. The transition date of the Group for IFRS 17 was 1 January 2022. Except for the changes from the adoption of these two standards and the new and amended IFRS Standards as described in note A2.2, the accounting policies applied by the Group in determining the IFRS financial results in these consolidated financial statements are the same as those previously applied in the Group's consolidated financial statements for the year ended 31 December 2022 as disclosed in the 2022 annual report. As permitted by IFRS 17, comparative results and related accounting policies presented for the year ended 31 December 2021 have not been re-presented and are as previously published in the 2022 Annual Report when the Group had not yet adopted IFRS 17 and IFRS 9. Going concern basis of accounting The Directors have made an assessment of going concern covering a period to 31 March 2025, being 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, as described further in the Risk review section. 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 to 31 March 2025, being 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 2023. 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 2023 31 Dec 2022 31 Dec 2021 / 1 Jan 2022 2023 2022 2021 Chinese yuan (CNY) 7.09 6.95 6.37 7.09 6.73 6.45 Hong Kong dollar (HKD) 7.81 7.81 7.80 7.83 7.83 7.77 Indian rupee (INR) 83.21 82.73 74.34 82.60 78.63 73.94 Indonesian rupiah (IDR) 15,397.00 15,567.50 14,252.50 15,230.82 14,852.24 14,294.88 Malaysian ringgit (MYR) 4.60 4.41 4.17 4.56 4.40 4.15 Singapore dollar (SGD) 1.32 1.34 1.35 1.34 1.38 1.34 Taiwan dollar (TWD) 30.69 30.74 27.67 31.17 29.81 27.93 Thai baht (THB) 34.37 34.56 33.19 34.80 35.06 32.01 UK pound sterling (GBP) 0.78 0.83 0.74 0.80 0.81 0.73 Vietnamese dong (VND) 24,262.00 23,575.00 22,790.00 23,835.92 23,409.87 22,934.86 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 2023, 2022 and 2021 statutory accounts. Statutory accounts for 2022 and 2021 have been delivered to the UK Registrar of Companies and those for 2023 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 Group adopted IFRS 17 ‘Insurance Contracts’ and IFRS 9 ‘Financial Instruments’, including any consequential amendments to other standards, from 1 January 2023. IFRS 17, ‘Insurance contracts’ IFRS 17 introduces significant changes to 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 (DPF)accounted under IFRS 4 are now accounted under IFRS 17. IFRS 4 permitted insurers to continue to use the statutory basis of accounting for insurance assets and liabilities that existed in their jurisdictions prior to January 2005. IFRS 17 replaces this with a new measurement model that establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with DPF. Insurance contracts are aggregated into groups for measurement purposes. Groups of insurance contracts are determined by identifying portfolios of insurance contracts, each comprising contracts subject to similar risks and managed together, and dividing each portfolio into annual cohorts (ie by year of issue) and each annual cohort into groups based on the profitability of contracts. Portfolios of reinsurance contracts held are assessed for aggregation separately from portfolios of insurance contracts issued. When determining 'similar risks' the Group does not divide risks within a contract, eg riders sold under a single contract would not be split by risk type. The Group have therefore identified three broad categories of risks referred to as 'dominant' risks, namely, protection, investment and to a less material extent longevity. The requirement 'managed together' is assessed within the geographical boundary of each local business unit. Each ring-fenced fund is considered to be managed separately. Under IFRS 17 groups of contracts are measured on initial recognition 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 represents the deferral of any day-one gains arising on initial recognition. Day-one losses, any subsequent losses on onerous contracts and reversal of those losses arising from groups of insurance contracts are recognised directly in the income statement. For groups of reinsurance contracts held, any net gains or losses at initial recognition are recognised as CSM unless the net cost of purchasing reinsurance relates to past events, in which case such net cost is recognised immediately in the income statement. Under IFRS 17 insurance contracts are measured under the General Measurement Model (GMM), Variable Fee Approach (VFA) or 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. Approximately 72 per cent of the CSM (including joint ventures and associates and net of reinsurance) at transition (as described below) was calculated under the VFA and relates to the Group’s with-profits and shareholder-backed participating products and unit-linked products with a low proportion of protection riders. The remaining approximately 28 per cent of the CSM at transition was calculated under the GMM and includes the Group’s non-profit protection products and unit-linked products with a high proportion of protection riders. 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, on initial recognition 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 discount rates determined at the date of initial recognition (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 for GMM business are determined using the locked-in discount rates. Further information on the subsequent measurement of the CSM is contained within note C3.4. IFRS 17 is applied retrospectively unless impractical to do so. The effect of adopting IFRS 17 retrospectively adjusts shareholders’ equity as at the date of transition of 1 January 2022. At the transition date, the opening balance sheet for IFRS 17 is established, as set out in the section 'Effect of adoption of IFRS 17 and IFRS 9' below. With the adoption of IFRS 17, certain line items in the Group’s consolidated statement of financial position have been replaced with new line items. For example, the Group now presents separately the carrying amount of portfolios of: – Insurance contracts issued that are assets; – Insurance contracts issued that are liabilities; – Reinsurance contracts held that are assets; and – Reinsurance contracts held that are liabilities. Further, the line items in the consolidated income statement have been changed significantly compared with reporting under IFRS 4. In accordance with the IFRS 17 requirements, the following line items are no-longer reported: Gross premiums earned, Outward reinsurance premiums, Benefits and claims, Reinsurers’ share of benefits and claims, Movements in unallocated surplus of with-profits funds and Acquisition costs. Those are replaced with the following IFRS 17 line items: – Insurance revenue; – Insurance service expenses; – Net income (expense) from reinsurance contracts held; and – Net insurance finance income (expenses). Approach to transition to IFRS 17 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 'Full 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. Prudential has adopted the Modified Retrospective Approach for cohorts of business for which expected cash flows at the date of initial recognition are not available but where actual historic cash flows are available. If reasonable and supportable information necessary to apply the modified retrospective approach is not available, the fair value approach must be applied. The CSM of the groups of insurance contracts transitioned under retrospective approaches (ie full retrospective approach and modified retrospective approach) has been calculated as if the Group had only prepared annual financial statements before the transition date (ie transition CSM has been measured using a year-to-date approach). Full Retrospective Approach (FRA) Under the FRA, each group of insurance contracts has been identified, recognised and measured as if IFRS 17 had always applied. The CSM was calculated at initial recognition of a group of contracts based on the facts and circumstances at that time (ie without use of hindsight). This CSM was then rolled forward to the transition date in line with the requirements of the standard. Modified Retrospective Approach (MRA) The objective of the MRA is to achieve the closest possible outcome to retrospective application possible using reasonable and supportable information without undue cost and effort. A number of specific modifications are permitted under the MRA. The Group has adopted the following modifications: – To use information at the transition date to identify insurance contract groups; – To use information at the transition date to assess eligibility for the variable fee approach; and – To use information at the transition date to identify discretionary cash flows. General Measurement Model (GMM) Under the MRA for GMM business, the cash flows at the date of initial recognition of a group of insurance contracts have been estimated as the cash flows at the earliest available date (ie the first year when the FRA is practicable, referred to as the 'earlier date'), adjusted by the cash flows that are known to have occurred between these two dates. A number of further specific modifications are permitted. The Group has adopted the following modifications: – To estimate the risk adjustment at the date of initial recognition as the risk adjustment at the earlier date adjusted by the expected release of risk before that date based on the risk adjustment release pattern for similar contracts; – To estimate CSM amortisation in line with run-off of the coverage units; and – If there is a loss component at initial recognition, to estimate the amount allocated to the loss component before the transition date using a systematic allocation consistent with the modifications adopted above. Discount rates at the date of initial recognition were determined using observable market data at that date. Variable Fee Approach (VFA) Under the MRA for VFA business, the CSM at the transition date for a group of insurance contracts has been determined as: – The total fair value of the underlying items at that date; minus – The fulfilment cash flows at that date; plus or minus – An adjustment for: – Amounts charged to policyholders before that date; – Amounts paid before that date not varying with underlying items; – The change in the risk adjustment caused by the release from risk before that date; and minus – An estimate of the amounts that would have been recognised in profit or loss for services provided before the transition date by comparing the remaining coverage units at the transition date with the coverage units provided under the group of contracts before the transition date. In implementing this approach, the amounts charged to policyholders, the amounts paid not varying with underlying items and coverage units have been adjusted for the time value of money. Fair Value Approach (FVA) The insurance contracts of the Group under the FVA generally represent groups of contracts that were written many years ago where suitable historical information required to apply the retrospective transition approaches is no longer practicably available. Under the FVA, the CSM at the transition date is the difference between the fair value of the insurance contracts, determined in accordance with IFRS 13 Fair Value Measurement, and the fulfilment cash flows at that date. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of groups of insurance contracts has therefore been interpreted as the compensation that a market participant would require for taking on the relevant obligation under the contracts. The fair value has been determined using a cost of capital approach by reference to a quantum of capital required to be held in order to fulfil the contracts and a required return on that capital. Expected cash flows and the required locked-in capital are projected forward over the duration of the groups of contracts and discounted at the required rate of return. These calculations are based on the following key assumptions: – The expected cash flows reflect the future cost that a market participant would expect to incur in fulfilling the obligations under the contracts. The fair value has been based on the same scope of cash flows as are included in the calculation of the best estimate liability. In particular, the same contract boundaries are assumed in the calculation of the fair value and best estimate liability. However, the measurement of those cash flows need not be the same. – The required locked-in capital is the level of capital realistically required for a business to operate in the relevant jurisdiction. – The required rate of return is compensation the Group would expect a market participant to require to enter into a transaction to transfer the liability associated with the insurance contracts at the transition date. This return has been determined using the Capital Asset Pricing Model, including allowance for both financial risk and uncertainty in non-financial risk. A number of specific modifications are permitted under the FVA. The Group has adopted the following modifications: – To use information at the transition date to identify groups of insurance contracts; – To use information at the transition date to assess eligibility for the VFA; – To use information at the transition date to identify discretionary cash flows; – To use information at the transition date to assess whether a contract meets the definition of an investment contract with DPF; and – To group annual cohorts of business. The allocation of opening CSM by transition approach is given in note C3.2(b), alongside a segmental split. IFRS 9, ‘Financial Instruments’ IFRS 9 replaced IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018. The Group met the eligibility criteria, under the amendments to IFRS 4 to apply the temporary exemption from IFRS 9, deferring the initial application date of IFRS 9 to align with the initial application of IFRS 17. The adoption of IFRS 9 has affected the following three areas: The classification and the measurement of financial assets and liabilities IFRS 9 redefines the classification of financial assets. Based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’), financial assets are classified into one of the following categories: amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). An option is also available at initial recognition to irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. The Company has made the election under IFRS 9 to measure its retained interest in Jackson 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.This was the only investment classified at FVOCI at 1 January 2023. A table explaining the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at 1 January 2023 is set out in the section 'Effect of adoption of IFRS 17 and IFRS 9' below. 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 replaced the incurred loss impairment model under IAS 39, resulting in earlier recognition of credit losses compared with IAS 39. This aspect is the most complex area of IFRS 9 and involves significant judgements and estimation processes. As discussed above, the vast majority of the financial investments of the Group are held at FVTPL to which these requirements do not apply. Accordingly, no significant amount of additional impairment was 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. Effect of adoption of IFRS 17 and IFRS 9 The adoption of IFRS 17 has significant changes to the accounting for insurance and reinsurance contracts, as discussed above. The Group’s approach to transition to IFRS 17 is set out in the preceding section. The Group has restated the 2022 comparative amounts and presented a restated consolidated statement of financial position as at 1 January 2022. The implementation of IFRS 9 has an insignificant impact on the Group’s financial statements. As permitted by IFRS 9, the Group has not restated the comparatives on initial application of the standard but the Group is taking advantage of the classification overlay as permitted by the Amendment to IFRS 17, ‘Initial Application of IFRS 17 and IFRS 9 – Comparative Information’ issued in December 2021. In accordance with this amendment, the balance sheet at 1 January 2022 reflects the change in classification of certain debt securities to amortised cost from fair value through profit and loss, certain loans to fair value through profit and loss from amortised cost and the recognition of IFRS 9 expected credit losses for certain mortgage loans that continue to be classified as amortised cost. With the exception of these changes, for which the overall net asset impact is insignificant at less than $5 million, the consolidated statement of financial position as of 1 January 2022 as restated under IFRS 17 has been presented to reflect the classification and measurement under IAS 39. Consolidated statement of financial position at transition date 1 January 2022 The following table shows the Group’s consolidated statement of financial position as at 1 January 2022 restated under the IFRS 17 basis and the summarised effects of the adoption of the new standard. At 31 Dec 2021 $m Effects of adoption of IFRS 17 $m At 1 Jan 2022 $m (as reported under Presentation Measurement (as restated under IFRS 4) changes changes IFRS 17) note (i) note (ii) Assets Goodwill 907 — — 907 Deferred acquisition costs and other intangible assets: Deferred acquisition costs 2,815 (39) (2,776) — Other intangible assets 4,043 — (28) 4,015 6,858 (39) (2,804) 4,015 Insurance contract assets n/a — 1,250 1,250 Reinsurance contract assets 9,753 (22) (6,944) 2,787 Deferred tax assets 266 (134) — 132 Other non-investment and non-cash assets 3,448 (1,022) 61 2,487 Investment properties 38 — — 38 Investments in joint ventures and associates accounted for using the equity method 2,183 — 515 2,698 Total financial investments: Policy loans 1,733 (1,733) — — Other loans 829 — (58) 771 Equity securities and holdings in collective investment schemes 61,601 — — 61,601 Debt securities 99,094 — 60 99,154 Derivative assets 481 — — 481 Deposits 4,741 — — 4,741 168,479 (1,733) 2 166,748 Cash and cash equivalents 7,170 — — 7,170 Total assets 199,102 (2,950) (7,920) 188,232 Equity Shareholders' equity 17,088 — 1,848 18,936 Non-controlling interests 176 — (1) 175 Total equity 17,264 — 1,847 19,111 Liabilities Insurance contract liabilities* 156,485 4,243 (10,930) 149,798 Reinsurance contract liabilities n/a — 1,254 1,254 Investment contract liabilities without discretionary participation features 814 — (92) 722 Core structural borrowings of shareholder-financed businesses 6,127 — — 6,127 Operational borrowings 861 — — 861 Deferred tax liabilities 2,862 (1,696) 1 1,167 Other liabilities 14,689 (5,497) — 9,192 Total liabilities 181,838 (2,950) (9,767) 169,121 Total equity and liabilities 199,102 (2,950) (7,920) 188,232 * Included within insurance contract liabilities at 31 December 2021 are investment contracts with DPF and unallocated surplus of with-profits funds under IFRS 4. Notes (i) The presentation changes as shown in the table above principally arise from the following effects of the adoption of IFRS 17: – Inclusion of insurance and reinsurance related receivable and payable balances within IFRS 17 insurance and reinsurance contract assets and liabilities Under IFRS 17, the measurement of a group of insurance contracts requires inclusion of all the future cash flows within the boundary of each contract and as a result, all insurance and reinsurance related receivable and payable balances (eg premiums receivable and claims payable) that were previously separately presented on the balance sheet are now in effect included within the insurance and reinsurance contract balances under IFRS 17. – Policy loans Applying the same IFRS 17 measurement principles described above, policy loans related cash flows including any accrued interest income (previously included in ‘Accrued investment income’) are also included within the fulfilment cash flows of the associated group of insurance contracts. – Deferred tax liabilities In line with IAS 12, deferred tax assets and liabilities have been netted as appropriate. The deferred tax liabilities arising from expected future distributions of the Singapore with-profits funds have been reclassified to be part of the insurance contract liabilities under IFRS 17. (ii) The measurement changes shown in the table above principally reflect the following measurement differences arising from the adoption of IFRS 17: – Deferred acquisition costs (DAC) Acquisition cash flows are taken into account in determining the day-one CSM of a group insurance contracts. As such, explicit assets for DAC are not required and the IFRS 4 balances are removed. DAC relating to investment contracts without discretionary participation features remains as an asset and has been reclassified to ‘Other debtors’ under 'Other non-investment and non-cash items’. – Insurance and reinsurance contract assets and liabilities The adjustments represent insurance and reinsurance contract measurement differences between IFRS 4 and IFRS 17, which primarily relate to the following effects: – the establishment of a CSM under IFRS 17 in accordance with the transition rules, intended to represent the unamortised amount of expected future profit deferred upon initial recognition of an insurance contract for all in-force contracts; – the establishment of an explicit risk adjustment for non-financial risk under IFRS 17; – release of prudence in the IFRS 4 policyholder liabilities to leave the best estimate liability; and – the change in treatment of the unallocated surplus of with-profits funds such that the shareholders’ share is recognised in shareholders’ equity after allowing for measurement differences between IFRS 4 and IFRS 17. Tax – Current tax assets and liabilities are calculated for each entity in the Group based on local tax rules, and the basis of tax varies between jurisdictions. For insurance entities in the Group, the current tax is calculated based on either the financial statements prepared under local generally accepted accounting principles (GAAP), or the regulatory return prepared under relevant regulatory rules, or on an alternative basis (for example, Hong Kong, where most life insurance business is taxed by reference to net premiums). Current tax assets and liabilities at transition date are not impacted by the adoption of IFRS 17 at Group level as the adoption for the Group financial statements has no impact on local tax calculations. For jurisdictions where the basis of tax is the local financial statements, current tax assets and liabilities will be calculated applying IFRS 17 if and when the standard is adopted locally, and subject to local tax rules for transitional adjustments. The impact of any such local adoption on the Group financial statements will be considered when relevant. – Deferred tax balances are adjusted to reflect the deferred tax effects of the measurement adjustments arising from transition to IFRS 17 described above. The methods of calculating deferred tax are unchanged. Where insurance and reinsurance contract assets and liabilities give rise to a tax deduction or taxable income when they are recovered or settled, measurement changes to these balances, without equal changes in current taxable income, give rise to corresponding changes to the deferred tax balances at the tax rates expected to apply when the deferred tax assets or liabilities are realised or settled. – Investments in joint ventures and associates accounted for using the equity method The adjustments represent the Group’s share of the impact of the transition of the balance sheets of the Group’s life joint ventures and associate (being CPL, India and the Takaful business in Malaysia) from IFRS 4 to IFRS 17, arising principally from the measurement differences as described above. Financial assets and liabilities by IFRS 9 category The following table and the accompanying notes explain the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at 31 December 2022/1 January, 2023. The effects of the reclassification of financial assets as a result of transition to IFRS 9 is not material. Classification at initial application Carrying value $m Financial instruments Original under IAS 39 New under IFRS 9 Original under IAS 39 New under IFRS 9 Financial assets Loans note (i) Amortised cost Amortised cost 140 140 Loans /debt securities note (ii) Amortised cost Mandatorily at FVTPL 26 27 Loans FVTPL Mandatorily at FVTPL 450 450 Equity securities and portfolio holdings in collective investment schemes FVTPL Mandatorily at FVTPL 57,413 57,413 Equity securities note (iii) Available-for-sale (AFS) FVOCI 266 266 Debt securities held by Eastspring note (iv) FVTPL Amortised cost 67 67 Other Debt securities FVTPL Mandatorily at FVTPL 76,922 76,922 Derivative assets FVTPL Mandatorily at FVTPL 569 569 Accrued investment income Loans and receivables Amortised cost 983 983 Deposits Loans and receivables Amortised cost 6,275 6,275 Cash and cash equivalents Loans and receivables Amortised cost 5,514 5,514 Other debtors note (i) Loans and receivables Amortised cost 968 968 Financial liabilities Investment contract liabilities without DPF FVTPL Mandatorily at FVTPL 663 663 Derivative liabilities FVTPL Mandatorily at FVTPL 1,001 1,001 Core structural borrowings of shareholder-financed businesses Amortised cost Amortised cost 4,261 4,261 Operational borrowings Amortised cost Amortised cost 815 815 Obligations under funding, securities lending and sale and repurchase agreements Amortised cost Amortised cost 582 582 Net asset value attributable to unit holders of consolidated investment funds note (v) FVTPL Designated at FVTPL 4,193 4,193 Other liabilities Amortised cost Amortised cost 2,866 2,866 Notes (i) In accordance with IFRS 17 requirements policy loans and debtor balances that are related to insurance contracts are included within the measurement of insurance contract liabilities. Therefore, the amounts for these balance sheet line items as presented in this table do not include such balances. (ii) Certain securities that were classified as loans at amortised cost under IAS 39 were reclassified to debt securities at fair value through profit or loss under IFRS 9 aligning to how these securities are managed. (iii) Represents the Group’s interest in Jackson which the Group elected to be classified at FVOCI. (iv) Under IAS 39 Eastspring debt securities were classified as FVTPL. The Group has reclassified these debt securities as measured at amortised cost because these instruments meet the solely payments of principal and interest (SPPI) criterion and are held with the intention to collect contractual cash flows. (v) 'Net asset value attributable to unit holders of consolidated investment funds' represents the interests of investors other than the Group in the investment funds that the Group is deemed to control and therefore treated as a subsidiary and consolidated in the Group financial statements. The Group has designated 'Net asset value attributable to unit holders of consolidated investment funds' as financial liabilities measured at FVTPL to eliminate any accounting mismatch with the underlying investments of those consolidated investment funds, which are measured at FVTPL. The measurement categories of the Group’s financial assets and financial liabilities as at 31 December 2023, as shown on the consolidated statement of financial position, are consistent with those as at 1 January 2023. The following line items contain more than one asset classification at 31 December 2023: Mandatorily at Total 31 Dec 2023 Amortised Cost $m FVTPL $m $m Loans 148 430 578 Debt securities — 83,064 83,064 A2.2 Adoption of other new accounting pronouncements In addition to IFRS 17 and IFRS 9, the Group has adopted the following amendments in these consolidated financial statements. The adoption of these amendments has had no significant impact on the Group financial statements. – Amendments to IAS 1 and IFRS Practice Statement 2 ‘Disclosure of accounting policies’ issued in February 2021; – Amendments to IAS 8 ‘Definition of Accounting Estimates’ issued in February 2021; – Amendments to IAS 12 ‘Deferred tax related to assets and liabilities arising from a single transaction’ issued in May 2021; and – Amendments to IAS 12 ‘International Tax Reform – Pillar Two Model Rules’ issued in May 2023. Further details are provided in notes B3.2 and C7.2. |
Measurement of insurance and reinsurance contracts | IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. It introduces a model that measures groups of contracts based on the Group’s estimates of the present value of future cash flows that are expected to arise as the Group fulfils the contracts, an explicit risk adjustment for non-financial risk and a CSM. The process of determining the present value of future cashflows involves a number of estimates and judgments, which are set out below. Determination of fulfilment cashflows used in the measurement of insurance and reinsurance contract assets and liabilities (impacts $(137.4) billion of net insurance and reinsurance contract balances, excluding those held by joint ventures and associates) Estimates of future cash flows The Group’s process for estimating future cash flows incorporates, in an unbiased way, all reasonable and supportable information that is available without undue cost or effort at the reporting date. This information includes both internal and external historical data about claims and other experience, updated to reflect current expectations of future events. As this is a prediction of the future, significant judgement is applied in determining the assumptions that underpin the estimation of future cash flows. These assumptions include, but are not limited to, operating assumptions such as morbidity, mortality, persistency and expenses, and economic assumptions such as risk-free rates and illiquidity premium. Granular assumptions are set at a business unit level. The demographic assumptions are consistent with those used in other metrics such as EEV reporting. The Risk Review included in this Annual Report discusses the insurance and market risks the Group faces and how these risks are mitigated. When estimating future cash flows, the Group takes into account current expectations of future events (other than those from future legislation or regulatory changes that have not been substantively enacted) that might affect those cash flows. Cash flows within the boundary of a contract (the Group’s accounting policy on contract boundary is given below) relate directly to the fulfilment of the contract, including those for which the Group has discretion over the amount or timing. These include future premium receipts, payments to (or on behalf of) policyholders, insurance acquisition cash flows and other costs that are incurred in fulfilling contracts. In relation to reinsurance contracts held, the probability weighted estimates of the present value of future cash flows includes the potential credit losses and losses from other disputes to reflect the non-performance risk of the reinsurers. The sensitivity of shareholder equity and CSM to insurance risks is set out in Note C6.1 (b). Determination of fulfilment cashflows used in the measurement of insurance and reinsurance contract assets and liabilities (impacts $(137.4) billion of net insurance and reinsurance contract balances, excluding those held by joint ventures and associates) Expense assumptions used in future cash flow estimation Insurance acquisition cash flows (as discussed below) and other costs that are incurred in fulfilling contracts comprise both direct costs and an allocation of fixed and variable overheads incurred by the insurance entities. The Group projects estimates of future expenses relating to the fulfilment of contracts within the scope of IFRS 17 using current expense levels adjusted for inflation. Costs that are incurred in fulfilling the contracts include, but are not limited to claims handling costs, policy administration expenses, investment management expenses, income tax and other costs specifically chargeable to the policyholders under the terms of the contracts. Expenses included in estimated future cash flows comprise expenses directly attributable to the groups of contracts, including an allocation of fixed and variable overheads incurred by the insurance entities. Investment management expenses in relation to the management of the assets backing policyholder liabilities are included in the fulfilment cash flows for business using the VFA model, other participating business using the general model and general model non-participating business where the Group performs investment management activities to enhance benefits from insurance coverage for policyholders. The future expenses of internal asset management and other services excludes the projected future profits or losses generated by any non-insurance entities within the Group in providing those services (ie the IFRS results for the life insurance operations in the consolidated financial statements assume that the cost of internal asset management and other services will be that incurred by the Group as a whole, not the cost that will be borne by the insurance business). Most of the costs incurred by the insurance entities within the Group are considered to be incurred for the purpose of selling and fulfilling insurance contracts and are hence treated as attributable expenses. Cash flows that are not directly attributable to a portfolio of insurance contracts, such as some product development and training costs, are recognised in other operating expenses as incurred. Policyholder benefits The assumptions used to project the cash flows also reflect the actions that management would take over the duration of the projection, the time it would take to implement these actions and any expenses incurred in taking those actions. Management actions encompass, but are not confined to, investment allocation decisions, levels of regular and final bonuses and crediting rates. For participating contracts, estimated future claim payments include bonuses paid to policyholders determined by reference to the relevant profit-sharing arrangement. For example, for the Group’s with-profits business in Hong Kong, Singapore and Malaysia, asset shares are used to determine payments to policyholders. Where cash flows from one group of contracts affect, or are affected by, cash flows in other groups of contracts (eg for with-profits business), the fulfilment cash flows for a group include payments arising from the terms of existing contracts to policyholders in other groups and exclude payments to policyholders in the group that have been included in the fulfilment cash flows of another group. Insurance acquisition cash flows Insurance acquisition cash flows arise from the activities of selling, underwriting and starting a group of insurance contracts that are directly attributable to the portfolio of contracts to which the group belongs. Insurance acquisition cash flows that are directly attributable to a group of contracts (eg non-refundable commissions paid on issuance of a contract) are allocated to that group and to the groups that will include renewals of those contracts. Bancassurance payments (eg upfront payments to sell insurance contracts to distribution partners) are capitalised under IAS 38 as intangible assets and 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. The amortisation of the bancassurance intangibles is considered to constitute insurance acquisition cash flows. They generally form part of fulfilment cash flows and are amortised implicitly in line with the coverage unit pattern. Determination of fulfilment cashflows used in the measurement of insurance and reinsurance contract assets and liabilities (impacts $(137.4) billion of net insurance and reinsurance contract balances, excluding those held by joint ventures and associates) Determining the point of recognition and the boundary of an insurance contract The point of initial recognition of a group of contracts is the earliest of the premium due date, the date coverage starts and, for an onerous contract, the date the contract is signed and accepted by both parties. There is limited judgement involved in relation to most contracts issued by the Group as the coverage period generally starts from the premium due date. The contract boundary defines which future cash flows are included in the measurement of a contract. The boundary of the fulfilment cash flows under IFRS 17 is considered to be the point at which the Group both no longer has substantive rights and obligations under the insurance contract to provide services or compel the policyholder to pay premiums. The contract boundary is assessed at inception and then reassessed only when there are changes in features or circumstances that alter the commercial substance of the contract or when there are changes in the products within a portfolio. The reassessment of the contract boundary for any changes is performed at the end of each reporting period. For most contracts issued by the Group, there is little judgement involved in determining the contract boundary as either a single premium is received for a contract which is expected to continue for a long period or a guaranteed premium is received for regular premium contracts. For certain contracts where the premiums are not guaranteed, more judgement is involved in assessing the Group’s substantive rights and obligations. When determining the boundary for these contracts various factors are taken into consideration by the Group such as the Group’s practical ability to terminate or refuse renewal of a contract, the Group’s ability to fully reprice at the individual contract level and whether the Group has the ability to reassess risks at a portfolio level and set a price that fully reflects the risks of that portfolio. The Group has some immaterial business that is general insurance in nature and which is considered to have a boundary of one year. Where riders attach to and are not separated from a base contract, the contract boundary is determined based on the component of the contract which has the longest contract boundary. Future cash flows relating to riders which are not purchased at the inception of the base contract, but are added at a later date, are not included within the contract boundary at initial recognition. As the addition of these riders is the exercise of an option under the contract it is not considered a contract modification but is instead treated as changes in fulfilment cash flows. Similar considerations to those applying to underlying insurance contracts apply in determining the contract boundary of groups of reinsurance contracts held. Further detail on reinsurance contracts, including on recognition is set out in note C3.4(b). Determination of discount rates Discount rate and risk-free rate IFRS 17 enables discount rates to be calculated on a top-down or bottom-up basis. The Group elects to determine discount rates 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. Risk-free rates are based on government bond yields for all currencies except HKD where risk-free rates are based on swap rates due to the higher liquidity of the HKD swap market. Government bond yields and swap rates are obtained from publicly available data sources. Yield curves are constructed by using a market-observed curve up to a last liquid point and then extrapolating to an ultimate forward rate. Where cash flows vary based on the return on underlying items, the projected earned rate is set equal to the discount rate. Where stochastic modelling techniques are used, the projected average investment returns are calibrated to be equal to the deterministic discount rate (including the illiquidity premium). The illiquidity premium is calculated as the yield-to-maturity on a reference portfolio of assets with similar liquidity characteristics to the insurance contracts, (in particular, corporate bonds) less the risk-free curve, and an allowance for credit risk. The allowance for credit risk includes a credit risk premium which is derived through a lifetime projection of expected bond cash flows, allowing for the cost of downgrades and defaults, a rebalancing rate of projected downgrades and a recovery rate in the event of default. The allowance for credit risk varies by currency ranging between 20 bps and 56 bps at 31 December 2023 (31 December 2022: between 23 bps and 56 bps). A proportion of the reference portfolio’s illiquidity premium (either 0% , 50% or 100% ) is applied to portfolios of insurance contracts reflecting the liquidity characteristics of the insurance contracts. The liquidity characteristics are assessed from the policyholders’ perspective. Consideration is given to the nature of premiums, the level of underwriting, and the surrender and other benefit features of the portfolios. A product’s illiquidity premium is restricted to be no greater than reasonably expected to be earned on the assets backing the insurance contract liabilities, over the duration of the insurance contracts. The following tables set out the range of yield curves used to discount cash flows of insurance contracts for major currencies. The range reflects the proportion of illiquidity premium applied by business unit and portfolio. 31 Dec 2023 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.07 – 2.33 2.41 – 2.67 2.59 – 2.85 2.70 – 2.96 2.76 – 3.02 Hong Kong dollar (HKD) 4.76 – 5.23 3.75 – 4.22 3.76 – 4.23 3.89 – 4.36 3.95 – 4.42 Indonesian rupiah (IDR) 6.47 – 6.96 6.63 – 7.12 6.73 – 7.22 6.94 – 7.43 7.03 – 7.52 Malaysian ringgit (MYR) 3.31 – 3.56 3.67 – 3.92 3.78 – 4.03 4.09 – 4.34 4.33 – 4.58 Singapore dollar (SGD) 3.62 – 4.37 2.67 – 3.42 2.71 – 3.46 2.77 – 3.52 2.74 – 3.49 United States dollar (USD) 4.81 – 5.64 3.86 – 4.69 3.90 – 4.73 4.01 – 4.84 4.36 – 5.19 31 Dec 2022 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.09 – 2.84 2.65 – 3.29 2.88 – 3.52 3.05 – 3.69 3.14 – 3.79 Hong Kong dollar (HKD) 4.85 – 6.14 3.96 – 5.25 3.78 – 5.07 3.82 – 5.11 3.84 – 5.13 Indonesian rupiah (IDR) 5.65 – 6.13 6.72 – 7.20 7.29 – 7.77 7.51 – 7.99 7.77 – 8.25 Malaysian ringgit (MYR) 3.52 – 3.91 3.91 – 4.29 4.13 – 4.52 4.35 – 4.73 4.49 – 4.88 Singapore dollar (SGD) 3.83 – 4.94 2.86 – 3.98 3.11 – 4.22 2.91 – 4.02 2.49 – 3.61 United States dollar (USD) 4.75 – 5.91 4.02 – 5.17 3.89 – 5.05 3.98 – 5.15 4.27 – 5.43 1 Jan 2022 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.21 – 2.60 2.63 – 2.99 2.81 – 3.19 3.00 – 3.65 3.12 – 3.71 Hong Kong dollar (HKD) 0.43 – 1.44 1.24 – 2.26 1.47 – 2.48 1.62 – 2.64 1.91 – 2.92 Indonesian rupiah (IDR) 3.43 – 4.81 5.55 – 6.93 7.04 – 8.42 7.43 – 8.81 7.74 – 9.12 Malaysian ringgit (MYR) 2.25 – 2.58 3.19 – 3.52 3.72 – 4.05 4.13 – 4.46 4.34 – 4.67 Singapore dollar (SGD) 0.60 – 1.58 1.38 – 2.35 1.72 – 2.70 1.99 – 2.97 2.14 – 3.12 United States dollar (USD) 0.38 – 1.30 1.27 – 2.20 1.53 – 2.46 1.69 – 2.61 2.01 – 2.93 The sensitivity of shareholder equity and CSM to changes in interest rates is set out in Note C6.1(a), covers a sensitivity to changes in the discount rates. Determination of risk adjustment for non-financial risk Risk adjustment for non-financial risk The risk adjustment for non-financial risk 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. For reinsurance contracts held, the risk adjustment for non ‑ financial risk represents the amount of risk being transferred by the Group to the reinsurer. The risk adjustment for non-financial risk is determined by the Group using a confidence level approach. This is implemented through the use of provisions for adverse deviations (PADs) calibrated using non-financial risk distributions and correlation assumptions. The PADs are applied to best estimate assumptions and hence the risk adjustment is calculated on a contract by contract basis. The Group’s risk adjustment allows for all insurance, persistency and expense risks and operational risks specific to uncertainty in the amount and timing of insurance contract cash flows. Reinsurance counterparty default risk is excluded from the calculation. Diversification is included on a net of reinsurance basis within each insurance entity of the Group. Diversification is not allowed for between entities. By applying a confidence level technique, the Group estimates the probability distribution of the expected present value of the future cash flows from insurance contracts at each reporting date and calculates the risk adjustment for non-financial risk as the excess of the value at risk at the 75th percentile (the target confidence level) over the expected present value of the future cash flows. The confidence level is calibrated over a one-year period. Determination of coverage units Coverage units The proportion of CSM recognised in profit or loss at the end of each period for a group of contracts is determined as the ratio of: – the coverage units in the period; divided by – the sum of the coverage units in the period and the present value of expected coverage units in future periods. The total number of coverage units in a group reflects the quantity of service provided determined by considering the quantity of benefits for each contract and its expected coverage period. The Group defines the quantity of benefits for insurance services as the maximum amount which a policyholder receives when an insured event takes place, for example the sum assured, the annual limit for a medical plan or the present value of a stream of payments. The quantity of benefits is updated each period. Investment related and investment-return services are assumed to be constant over time. Where there are multiple different services in a group of contracts (for example both insurance and investment services are provided), the quantities of benefits for the different types of service are combined using weighting factors. These weighting factors are defined as the present value of expected outflows for each type of service, determined at a contract level. The expected coverage period is the expected duration up to the contract boundary. The expected coverage period of the contracts in a group and the calculation of future coverage units allows for expected decrements (eg deaths and lapses) in each future period using current best estimate assumptions consistent with the best estimate liabilities (BEL) calculation. The Group elects to allow for the time value of money by discounting future coverage units in the determination of the proportion of CSM recognised in profit or loss. Determination of coverage units for groups of reinsurance contracts held follows the same principles as for groups of underlying contracts. Insurance finance income and expenses Disaggregation between profit or loss and other comprehensive income IFRS 17 allows an accounting policy choice between: – Including insurance finance income or expenses for the period in profit or loss; or – Disaggregating insurance finance income or expenses for the period to include in profit or loss an amount determined by a systematic allocation of the expected total insurance finance income or expenses over the duration of the group of contracts, with the balance being included in other comprehensive income. The Group has made only very limited use of FVOCI accounting for assets. As discussed in note A2.1 under the heading 'The classification and measurement of financial assets and liabilities', the only financial assets classified at FVOCI at 1 January 2023 was the Group’s retained equity interest in Jackson, which have been subsequently disposed of. Consequently, the Group has not elected to disaggregate insurance finance income and expenses between profit or loss and other comprehensive income. Risk mitigation Risk mitigation option IFRS 17 allows the option in certain circumstances to not recognise a change in the CSM to reflect some or all of the changes in the effect of the time value of money and financial risk on: – the amount of the entity’s share of the underlying items if the entity mitigates the effect of financial risk on that amount using derivatives or reinsurance contracts held; and – The fulfilment cash flows if the entity mitigates the effect of financial risk on those fulfilment cash flows using derivatives, non-derivative financial instruments measured at fair value through profit or loss, or reinsurance contracts held. The Group has not elected to utilise this option. The effect of accounting estimates made in interim financial statements Effect of estimates made in interim financial statements IFRS 17 allows an accounting policy choice as to whether to change the treatment of accounting estimates made in previous interim financial statements when applying IFRS 17 in the annual reporting period. The Group has elected to allow updates to accounting estimates made in interim financial statements when applying IFRS 17 in the annual reporting period. (ii) Measurement of policyholder liabilities and unallocated surplus of with-profits funds under IFRS 4 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. 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 policies applied for the Group's insurance businesses under IFRS 4 are noted below. Measurement of investment contract liabilities with discretionary participation features and insurance contract liabilities The policyholder liabilities for businesses of the continuing 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. 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 local business unit level, depending on how the business is managed. Portfolios of insurance contracts that are assets and those that are liabilities, and portfolios of reinsurance contracts that are assets and those that are liabilities, are presented separately in the statement of financial position. Any assets or liabilities recognised for cash flows arising before the recognition of the related group of contracts (including any assets for insurance acquisition cash flows) are included in the carrying amount of the related portfolios of contracts. |
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 $2,097 million and compares to profit before tax of $2,272 million as shown in the Consolidated income statement. Total tax charge for the Group reflects tax that relates to shareholders’ profit and also tax attributable to policyholders through the interest in with-profits or unit-linked funds. 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. |
Operating segments | 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 $3,517 million as shown in note B1.1. The basis of calculation of adjusted operating profit is provided in note B1.2. The vast majority of the Group’s investments are valued at fair value through profit and loss. Short-term fluctuations in the fair value of investments are only partially offset by the effect of economic changes on insurance contract assets and liabilities and so affect the result for the year. The Group therefore provides additional analysis of results before and after the effects of short-term fluctuations in investment returns, together with other items that are of a short-term, volatile or one-off nature. Operating segments The Group's operating and reported segments for financial reporting purposes are defined and presented in accordance with IFRS 8 ‘Operating Segments’. There have been no changes to the Group’s operating segments from those reported in the Group’s consolidated financial statements for the year ended 31 December 2022. In the first quarter of 2021, the Group reviewed its operating segments for financial reporting under IFRS 8 following changes to the business and financial management information provided to the GEC. On 13 September 2021, the Group completed the demerger of the US operations (Jackson Financial Inc.) from the Prudential plc Group. Accordingly, the US operations did not represent an operating segment as of the end of 2021. The results of US operations were reclassified as discontinued in those consolidated financial statements in accordance with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, and were therefore excluded in the analysis of performance measure of operating segments. 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. |
VFA eligibility assessment | VFA eligibility assessment The Group applies judgements in assessing the VFA eligibility of contracts. Application of the VFA impacts the calculation of the CSM at the balance sheet date, which in turn impacts the future year’s amortisation recognised in the income statement. Unlike the GMM approach, the VFA approach absorbs economic impacts within the CSM, rather than in the profit and loss account. The total insurance and reinsurance CSM at the balance sheet date is $21,012 million, including joint ventures and associates, and the CSM amortisation, net of reinsurance, recognised in the income statement is $(2,208) million as shown in note C3.3(a). Approximately 72 per cent of the CSM (including joint ventures and associates and net of reinsurance) at transition was calculated under the VFA. IFRS 17 requires the use of the VFA for insurance contracts with direct participation features, ie substantially investment-related service contracts for which, at inception: – the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items; – the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and – the entity expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items. The following key judgements have been made in assessing VFA eligibility: Definition of substantial The term substantial is interpreted to mean greater than 50 per cent. Contractual terms In some circumstances contractual terms are implied by customary business practices. Granularity of assessment The assessment has been carried out at a contract level. However, to the extent insurance contracts in a group affect the cash flows to policyholders of contracts in other groups (referred to as ‘mutualisation’), eligibility for the VFA has been assessed at the level at which such mutualisation occurs (eg fund level). Calculation basis VFA eligibility assessments have been performed on a basis consistent with how the Group measures its realistic expectations, for example when pricing, monitoring or setting returns to policyholders. Contracts not qualifying for the VFA are accounted for under the GMM or PAA. The PAA is not used significantly within the Group. The measurement model (VFA or GMM) used for key products is set out in Note C3.4 (a). |
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, or 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 units (CGUs) containing the distribution rights. Impacts $3,709 million 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 CGUs to which it is allocated. Intangible assets acquired on the purchase of a subsidiary or portfolio of contracts are measured at fair value on acquisition. 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 goodwill, 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 Consolidated income statement and allocated between attributable and non-attributable expenses for the Group's insurance entities as shown in note B2. Impairment testing is conducted when there is an indication that the intangible asset may be impaired. |
Financial Investments - Valuation | Financial investments – Valuation Financial investments held at fair value, net of derivative liabilities, excluding those held by joint ventures and associates is $149.9 billion as shown in note C2.2(a). Financial investments held at amortised cost represent $6.0 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 and certain debt securities held by Eastspring. 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 IFRS 9 (2023) / IAS 39 (2022 and prior) whereby subject to specific criteria, financial instruments are required to be accounted for under one of the following categories: – Financial instruments at FVTPL: this comprises primarily 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. In addition, this includes derivatives. All investments within this category are measured at fair value with all changes thereon being recognised in investment return in the income statement. – Financial instruments at FVOCI under IFRS 9 or on an AFS basis under IAS 39: these instruments 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 except for equity securities that have been elected to be designated at FVOCI under IFRS 9 whereby there is no recycling to the profit or loss on derecognition being the difference to the AFS treatment for equity securities under IAS 39. Subsequent to the demerger of Jackson in September 2021, the Group designated its retained interest in Jackson as AFS equity securities under IAS 39. Upon the adoption of IFRS 9, the Group made the election to measure its interest in equity securities in Jackson at FVOCI, which were disposed of entirely in 2023. There were no financial instruments at FVOCI at 31 December 2023. – Financial instruments at amortised cost: these instruments comprise non-quoted investments that have fixed or determinable payments, including loans collateralised by mortgages, deposits, and other 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. |
Deferred acquisition costs (DAC) for insurance contracts under IFRS 4 basis | Deferred acquisition costs (DAC) for insurance contracts under IFRS 4 basis The Group estimates projected future profits/margins to assess whether adjustments to the carrying value or amortisation profile of DAC asset are necessary. 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. |
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 2023. 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 an impact on the Group’s consolidated financial statements are discussed. – Amendments to IFRS 16 ‘Lease liability in a sale and leaseback’ issued in September 2022 and effective from 1 January 2024; – Amendments to IAS 1 ‘Non-current liabilities with covenants’ issued in October 2022 and effective from 1 January 2024; – Amendments to IAS 7 and IFRS 7 'Supplier finance arrangements' issued in May 2023 and effective from 1 January 2024; and – Amendments to IAS 21 'Lack of exchangeability' issued in August 2023 and effective from 1 January 2025. |
Revenue | Accounting policies for revenue under IFRS 17 The Group recognises insurance revenue as it satisfies its performance obligations, ie as it provides services under groups of insurance contracts. The insurance revenue relating to services provided for each period represents the total of the changes in the liability for remaining coverage that relate to services for which the Group expects to receive consideration and comprises the following items. – A release of the CSM, measured based on coverage units; – Changes in the risk adjustment for non-financial risk relating to current services; – Claims and other insurance service expenses for the period expected at the beginning of the year; and – Other amounts include the revenue recognised to cover the tax charge attributable to policyholders and other items, for example experience adjustments for premium receipts for current or past services . In addition, the Group allocates a portion of premiums that relate to recovering insurance acquisition cash flows to each period using the same amortisation factor used to amortise CSM. The Group recognises the allocated amount, adjusted for interest accretion, as insurance revenue and an equal amount as insurance service expenses. Non-distinct investment components are excluded from insurance revenue and insurance service expenses. Policy fees charged on investment contracts without discretionary participation features for asset management and policy administration fees are recognised when related services are provided. Accounting policies for revenue under IFRS 4 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 mandatorily classified or designated as FVTPL and realised gains and losses (including impairment losses) on items classified at amortised cost and/or FVOCI (AFS for 2022 and 2021). Movements in unrealised appreciation or depreciation of securities designated as FVOCI (AFS for 2022 and 2021) 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. |
Net insurance and reinsurance finance income (expense) | Insurance finance income and expenses comprise changes in the carrying amounts of groups of insurance and reinsurance contracts arising from the effects of the time value of money, financial risk and changes therein, unless any such changes for groups of direct participating contracts are allocated to a loss component and included in insurance service expenses. These amounts include changes in the measurement of groups of contracts caused by changes in the value of underlying items (excluding additions and withdrawals). The Group does not disaggregate insurance finance income or expenses between profit or loss and other comprehensive income. |
Insurance service expenses | Insurance service expenses arising from insurance contracts are recognised in profit or loss generally as they are incurred. They exclude repayments of investment components and comprise: – incurred claims and other insurance service expenses; – amortisation of insurance acquisition cash flows; – losses on onerous contracts and reversals of such losses; – adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk and changes therein, which are recognised in insurance finance income (expense); and – impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses . |
Share-based payments | 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 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. 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 IFRS 9/IAS 39. The Group has no net investment, fair value or cash flow hedges under IFRS 9 and IAS 39 at 31 December 2023 and 2022, respectively. 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. |
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. |
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 that the goodwill may be impaired. Goodwill shown on the consolidated statement of financial position represents amounts allocated to businesses in Asia and Africa in respect of both acquired asset management and life businesses. There has been no impairment as at 31 December 2023 and 2022. |
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. Property, plant and equipment, including the right-of-use assets under operating leases, are generally held at cost less cumulative depreciation calculated using the straight-line method, and impairment charge. Owner occupied properties held by the Group's Singapore business that are underlying items of direct participating contracts are measured at fair value following the adoption of IFRS 17. |
Basis of consolidation | The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the following are met: – It has power over an investee; – It is exposed to, or has rights to, variable returns from its involvement with the investee; and – 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 of the Partnership Act, on the basis that the limited partnership is consolidated 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 FVTPL. (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; and – 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’) and Part 15 of the Companies Act 2006. In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements in accordance with international accounting standards adopted for use in the UK but makes amendments where necessary, in order to comply with the Companies Act 2006. The accounting policies set out in note 2 below have been applied consistently to both years presented in these financial statements. The Company and the Group manage cash resources, remittances and financing primarily in US dollars. Accordingly, the functional and presentational currency of the Company is US dollars. On the basis of the assessment of going concern for the Company and the Group as set out in note A1 to the Group IFRS consolidated financial statements, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements for the year ended 31 December 2023. |
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 indicators of impairment, and if any are identified, any impairment is assessed by comparing the net assets and value in use of the subsidiary undertakings with the carrying value of the investments. Amounts owed by subsidiary undertakings Amounts owed by subsidiary undertakings are shown at cost less expected credit losses, which 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 FVTPL, all 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 defaults on those loans. In all cases, the subsidiaries are expected to have sufficient resources to repay the loans 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. |
Share-based payments | 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 and adjustments made in relation to prior years. Current tax recoverable (payable) recognised in the balance sheet is measured at the amount expected to be either recovered from (paid to) relevant tax authorities or Group undertakings in relation to the surrender (claim) of tax losses. Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12 ‘Income Taxes’. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that future taxable profits will be available against which these losses can be utilised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The Company has applied the mandatory exemption from recognising and disclosing information on the associated deferred tax assets and liabilities at 31 December 2023 as required by the amendments to IAS 12 ‘International Tax Reform – Pillar Two Model Rules’ referred to in note A2.2 to the Group IFRS consolidated financial statements. |
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 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, 2023 | |
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 2023 31 Dec 2022 31 Dec 2021 / 1 Jan 2022 2023 2022 2021 Chinese yuan (CNY) 7.09 6.95 6.37 7.09 6.73 6.45 Hong Kong dollar (HKD) 7.81 7.81 7.80 7.83 7.83 7.77 Indian rupee (INR) 83.21 82.73 74.34 82.60 78.63 73.94 Indonesian rupiah (IDR) 15,397.00 15,567.50 14,252.50 15,230.82 14,852.24 14,294.88 Malaysian ringgit (MYR) 4.60 4.41 4.17 4.56 4.40 4.15 Singapore dollar (SGD) 1.32 1.34 1.35 1.34 1.38 1.34 Taiwan dollar (TWD) 30.69 30.74 27.67 31.17 29.81 27.93 Thai baht (THB) 34.37 34.56 33.19 34.80 35.06 32.01 UK pound sterling (GBP) 0.78 0.83 0.74 0.80 0.81 0.73 Vietnamese dong (VND) 24,262.00 23,575.00 22,790.00 23,835.92 23,409.87 22,934.86 |
Schedule of impact of IFRS 17 | At 31 Dec 2021 $m Effects of adoption of IFRS 17 $m At 1 Jan 2022 $m (as reported under Presentation Measurement (as restated under IFRS 4) changes changes IFRS 17) note (i) note (ii) Assets Goodwill 907 — — 907 Deferred acquisition costs and other intangible assets: Deferred acquisition costs 2,815 (39) (2,776) — Other intangible assets 4,043 — (28) 4,015 6,858 (39) (2,804) 4,015 Insurance contract assets n/a — 1,250 1,250 Reinsurance contract assets 9,753 (22) (6,944) 2,787 Deferred tax assets 266 (134) — 132 Other non-investment and non-cash assets 3,448 (1,022) 61 2,487 Investment properties 38 — — 38 Investments in joint ventures and associates accounted for using the equity method 2,183 — 515 2,698 Total financial investments: Policy loans 1,733 (1,733) — — Other loans 829 — (58) 771 Equity securities and holdings in collective investment schemes 61,601 — — 61,601 Debt securities 99,094 — 60 99,154 Derivative assets 481 — — 481 Deposits 4,741 — — 4,741 168,479 (1,733) 2 166,748 Cash and cash equivalents 7,170 — — 7,170 Total assets 199,102 (2,950) (7,920) 188,232 Equity Shareholders' equity 17,088 — 1,848 18,936 Non-controlling interests 176 — (1) 175 Total equity 17,264 — 1,847 19,111 Liabilities Insurance contract liabilities* 156,485 4,243 (10,930) 149,798 Reinsurance contract liabilities n/a — 1,254 1,254 Investment contract liabilities without discretionary participation features 814 — (92) 722 Core structural borrowings of shareholder-financed businesses 6,127 — — 6,127 Operational borrowings 861 — — 861 Deferred tax liabilities 2,862 (1,696) 1 1,167 Other liabilities 14,689 (5,497) — 9,192 Total liabilities 181,838 (2,950) (9,767) 169,121 Total equity and liabilities 199,102 (2,950) (7,920) 188,232 * Included within insurance contract liabilities at 31 December 2021 are investment contracts with DPF and unallocated surplus of with-profits funds under IFRS 4. Notes (i) The presentation changes as shown in the table above principally arise from the following effects of the adoption of IFRS 17: – Inclusion of insurance and reinsurance related receivable and payable balances within IFRS 17 insurance and reinsurance contract assets and liabilities Under IFRS 17, the measurement of a group of insurance contracts requires inclusion of all the future cash flows within the boundary of each contract and as a result, all insurance and reinsurance related receivable and payable balances (eg premiums receivable and claims payable) that were previously separately presented on the balance sheet are now in effect included within the insurance and reinsurance contract balances under IFRS 17. – Policy loans Applying the same IFRS 17 measurement principles described above, policy loans related cash flows including any accrued interest income (previously included in ‘Accrued investment income’) are also included within the fulfilment cash flows of the associated group of insurance contracts. – Deferred tax liabilities In line with IAS 12, deferred tax assets and liabilities have been netted as appropriate. The deferred tax liabilities arising from expected future distributions of the Singapore with-profits funds have been reclassified to be part of the insurance contract liabilities under IFRS 17. (ii) The measurement changes shown in the table above principally reflect the following measurement differences arising from the adoption of IFRS 17: – Deferred acquisition costs (DAC) Acquisition cash flows are taken into account in determining the day-one CSM of a group insurance contracts. As such, explicit assets for DAC are not required and the IFRS 4 balances are removed. DAC relating to investment contracts without discretionary participation features remains as an asset and has been reclassified to ‘Other debtors’ under 'Other non-investment and non-cash items’. – Insurance and reinsurance contract assets and liabilities The adjustments represent insurance and reinsurance contract measurement differences between IFRS 4 and IFRS 17, which primarily relate to the following effects: – the establishment of a CSM under IFRS 17 in accordance with the transition rules, intended to represent the unamortised amount of expected future profit deferred upon initial recognition of an insurance contract for all in-force contracts; – the establishment of an explicit risk adjustment for non-financial risk under IFRS 17; – release of prudence in the IFRS 4 policyholder liabilities to leave the best estimate liability; and – the change in treatment of the unallocated surplus of with-profits funds such that the shareholders’ share is recognised in shareholders’ equity after allowing for measurement differences between IFRS 4 and IFRS 17. Tax – Current tax assets and liabilities are calculated for each entity in the Group based on local tax rules, and the basis of tax varies between jurisdictions. For insurance entities in the Group, the current tax is calculated based on either the financial statements prepared under local generally accepted accounting principles (GAAP), or the regulatory return prepared under relevant regulatory rules, or on an alternative basis (for example, Hong Kong, where most life insurance business is taxed by reference to net premiums). Current tax assets and liabilities at transition date are not impacted by the adoption of IFRS 17 at Group level as the adoption for the Group financial statements has no impact on local tax calculations. For jurisdictions where the basis of tax is the local financial statements, current tax assets and liabilities will be calculated applying IFRS 17 if and when the standard is adopted locally, and subject to local tax rules for transitional adjustments. The impact of any such local adoption on the Group financial statements will be considered when relevant. – Deferred tax balances are adjusted to reflect the deferred tax effects of the measurement adjustments arising from transition to IFRS 17 described above. The methods of calculating deferred tax are unchanged. Where insurance and reinsurance contract assets and liabilities give rise to a tax deduction or taxable income when they are recovered or settled, measurement changes to these balances, without equal changes in current taxable income, give rise to corresponding changes to the deferred tax balances at the tax rates expected to apply when the deferred tax assets or liabilities are realised or settled. – Investments in joint ventures and associates accounted for using the equity method The adjustments represent the Group’s share of the impact of the transition of the balance sheets of the Group’s life joint ventures and associate (being CPL, India and the Takaful business in Malaysia) from IFRS 4 to IFRS 17, arising principally from the measurement differences as described above. |
Schedule of financial assets and liabilities by IFRS 9 category | Classification at initial application Carrying value $m Financial instruments Original under IAS 39 New under IFRS 9 Original under IAS 39 New under IFRS 9 Financial assets Loans note (i) Amortised cost Amortised cost 140 140 Loans /debt securities note (ii) Amortised cost Mandatorily at FVTPL 26 27 Loans FVTPL Mandatorily at FVTPL 450 450 Equity securities and portfolio holdings in collective investment schemes FVTPL Mandatorily at FVTPL 57,413 57,413 Equity securities note (iii) Available-for-sale (AFS) FVOCI 266 266 Debt securities held by Eastspring note (iv) FVTPL Amortised cost 67 67 Other Debt securities FVTPL Mandatorily at FVTPL 76,922 76,922 Derivative assets FVTPL Mandatorily at FVTPL 569 569 Accrued investment income Loans and receivables Amortised cost 983 983 Deposits Loans and receivables Amortised cost 6,275 6,275 Cash and cash equivalents Loans and receivables Amortised cost 5,514 5,514 Other debtors note (i) Loans and receivables Amortised cost 968 968 Financial liabilities Investment contract liabilities without DPF FVTPL Mandatorily at FVTPL 663 663 Derivative liabilities FVTPL Mandatorily at FVTPL 1,001 1,001 Core structural borrowings of shareholder-financed businesses Amortised cost Amortised cost 4,261 4,261 Operational borrowings Amortised cost Amortised cost 815 815 Obligations under funding, securities lending and sale and repurchase agreements Amortised cost Amortised cost 582 582 Net asset value attributable to unit holders of consolidated investment funds note (v) FVTPL Designated at FVTPL 4,193 4,193 Other liabilities Amortised cost Amortised cost 2,866 2,866 Notes (i) In accordance with IFRS 17 requirements policy loans and debtor balances that are related to insurance contracts are included within the measurement of insurance contract liabilities. Therefore, the amounts for these balance sheet line items as presented in this table do not include such balances. (ii) Certain securities that were classified as loans at amortised cost under IAS 39 were reclassified to debt securities at fair value through profit or loss under IFRS 9 aligning to how these securities are managed. (iii) Represents the Group’s interest in Jackson which the Group elected to be classified at FVOCI. (iv) Under IAS 39 Eastspring debt securities were classified as FVTPL. The Group has reclassified these debt securities as measured at amortised cost because these instruments meet the solely payments of principal and interest (SPPI) criterion and are held with the intention to collect contractual cash flows. (v) 'Net asset value attributable to unit holders of consolidated investment funds' represents the interests of investors other than the Group in the investment funds that the Group is deemed to control and therefore treated as a subsidiary and consolidated in the Group financial statements. The Group has designated 'Net asset value attributable to unit holders of consolidated investment funds' as financial liabilities measured at FVTPL to eliminate any accounting mismatch with the underlying investments of those consolidated investment funds, which are measured at FVTPL. |
Line items that contain more than one asset classification | Mandatorily at Total 31 Dec 2023 Amortised Cost $m FVTPL $m $m Loans 148 430 578 Debt securities — 83,064 83,064 |
Schedule of yield curves used to discount cash flows of insurance contracts for major currencies | 31 Dec 2023 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.07 – 2.33 2.41 – 2.67 2.59 – 2.85 2.70 – 2.96 2.76 – 3.02 Hong Kong dollar (HKD) 4.76 – 5.23 3.75 – 4.22 3.76 – 4.23 3.89 – 4.36 3.95 – 4.42 Indonesian rupiah (IDR) 6.47 – 6.96 6.63 – 7.12 6.73 – 7.22 6.94 – 7.43 7.03 – 7.52 Malaysian ringgit (MYR) 3.31 – 3.56 3.67 – 3.92 3.78 – 4.03 4.09 – 4.34 4.33 – 4.58 Singapore dollar (SGD) 3.62 – 4.37 2.67 – 3.42 2.71 – 3.46 2.77 – 3.52 2.74 – 3.49 United States dollar (USD) 4.81 – 5.64 3.86 – 4.69 3.90 – 4.73 4.01 – 4.84 4.36 – 5.19 31 Dec 2022 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.09 – 2.84 2.65 – 3.29 2.88 – 3.52 3.05 – 3.69 3.14 – 3.79 Hong Kong dollar (HKD) 4.85 – 6.14 3.96 – 5.25 3.78 – 5.07 3.82 – 5.11 3.84 – 5.13 Indonesian rupiah (IDR) 5.65 – 6.13 6.72 – 7.20 7.29 – 7.77 7.51 – 7.99 7.77 – 8.25 Malaysian ringgit (MYR) 3.52 – 3.91 3.91 – 4.29 4.13 – 4.52 4.35 – 4.73 4.49 – 4.88 Singapore dollar (SGD) 3.83 – 4.94 2.86 – 3.98 3.11 – 4.22 2.91 – 4.02 2.49 – 3.61 United States dollar (USD) 4.75 – 5.91 4.02 – 5.17 3.89 – 5.05 3.98 – 5.15 4.27 – 5.43 1 Jan 2022 % 1 year 5 years 10 years 15 years 20 years Chinese yuan (CNY) 2.21 – 2.60 2.63 – 2.99 2.81 – 3.19 3.00 – 3.65 3.12 – 3.71 Hong Kong dollar (HKD) 0.43 – 1.44 1.24 – 2.26 1.47 – 2.48 1.62 – 2.64 1.91 – 2.92 Indonesian rupiah (IDR) 3.43 – 4.81 5.55 – 6.93 7.04 – 8.42 7.43 – 8.81 7.74 – 9.12 Malaysian ringgit (MYR) 2.25 – 2.58 3.19 – 3.52 3.72 – 4.05 4.13 – 4.46 4.34 – 4.67 Singapore dollar (SGD) 0.60 – 1.58 1.38 – 2.35 1.72 – 2.70 1.99 – 2.97 2.14 – 3.12 United States dollar (USD) 0.38 – 1.30 1.27 – 2.20 1.53 – 2.46 1.69 – 2.61 2.01 – 2.93 |
Analysis of performance by se_2
Analysis of performance by segment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of performance by segment | |
Schedule of segment results | IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Note note (i) note (i) note (i) Continuing operations: CPL 368 271 343 Hong Kong 1,013 1,162 975 Indonesia 221 205 446 Malaysia 305 340 350 Singapore 584 570 663 Growth markets and other note (ii) 746 728 932 Eastspring 280 260 314 Other income and expenditure: Net investment return and other items note (iii) (21) (44) 21 Interest payable on core structural borrowings (172) (200) (328) Corporate expenditure note (iv) (230) (276) (298) Total other expenditure (423) (520) (605) Restructuring and IFRS 17 implementation costs note (v) (201) (294) (185) Adjusted operating profit B1.2 2,893 2,722 3,233 Short-term fluctuations in investment returns note (vi) (774) (3,420) (458) Amortisation of acquisition accounting adjustments under IFRS 4 — — (5) (Loss) gain attaching to corporate transactions note (vii) (22) 55 (94) Profit (loss) before tax attributable to shareholders 2,097 (643) 2,676 Tax charge attributable to shareholders' returns B3.2 (385) (354) (462) Profit (loss) for the year 1,712 (997) 2,214 Loss from discontinued US operations D6 — — (5,027) Profit (loss) for the year 1,712 (997) (2,813) Attributable to: Equity holders of the Company From continuing operations 1,701 (1,007) 2,192 From discontinued US operations — — (4,234) 1,701 (1,007) (2,042) Non-controlling interests From continuing operations 11 10 22 From discontinued US operations — — (793) 11 10 (771) Profit (loss) for the year 1,712 (997) (2,813) IFRS 17 basis IFRS 4 basis 2023 2022 2021 Basic earnings per share (in cents) Note note (i) note (i) note (i) Based on adjusted operating profit, net of tax and non-controlling interest from continuing operations B4 89.0 ¢ 79.4 ¢ 101.5 ¢ Based on profit for the year from continuing operations, net of non-controlling interest B4 62.1 ¢ (36.8) ¢ 83.4 ¢ Based on loss from discontinued US operations, net of non-controlling interest B4 n/a n/a (161.1) ¢ Notes (i) Segment results are attributed to the shareholders of the Group before deducting the amount attributable to the non-controlling interests. This presentation is applied consistently throughout the document. (ii) The Growth markets and other segment includes non-insurance entities that support the Group’s insurance business and the result for this segment is after deducting the corporate taxes arising from the life joint ventures and associates. In 2021, this also comprised of other non-recurring items which largely included the impact of refinements to the run-off of the allowance of prudence within IFRS 4 technical provisions. (iii) Net investment return and other items in 2023 and 2022 includes an adjustment to eliminate intercompany profits as described below. Entities within the Prudential Group can provide services to each other, the most significant example being the provision of asset management services by Eastspring to the life entities. If the associated expenses are deemed attributable to the entity’s insurance contracts then the costs are included within the estimate of future cashflows when measuring the insurance contract under IFRS 17. In the Group’s consolidated accounts, IFRS 17 requires the removal of the intercompany profit from the measurement of the insurance contract. Put another way the future cash flows include the cost to the Group (not the insurance entity) of providing the service. In the period that the service is provided the entity undertaking the service, for example Eastspring, recognises the profit it earns as part of its results. To avoid any double counting an adjustment is included with the centre’s 'net investment return and other item' to remove the benefit already recognised when valuing the insurance contract. (iv) Corporate expenditure as shown above is for head office functions. (v) Restructuring and IFRS 17 implementation costs include those incurred in insurance and asset management operations of $(81) million (2022: $(137) million; 2021: $(101) million), largely comprising the costs of Group-wide projects including the implementation of IFRS 17 (this includes one-off costs associated with embedding IFRS 17), reorganisation programmes and initial costs of establishing new business initiatives and operations. (vi) In 2021, rising interest rates across most operations led to unrealized bond losses which more than offset the impact of higher discount rates on IFRS 4 policyholder liabilities under the local reserving basis applied and equity gains on shareholder backed business in the year which led to overall negative short-term investment fluctuations for total insurance and asset management operations. (vii) The loss for 2021 of $ (94) million included $(35) million as shown separately on the Consolidated income statement largely related to costs associated with the demerger of Jackson and $(59) million arising on reinsurance transaction undertaken by the Hong Kong business under IFRS 4 basis. |
Schedule of segmental analysis of revenue | IFRS 17 basis 2023 $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 Amounts relating to changes in the liability for remaining coverage: Expected claims and other directly attributable expenses 1,089 582 642 970 670 — — 3,953 — 3,953 Change in risk adjustment for non-financial risk 73 35 24 55 41 — — 228 — 228 Release of CSM for services provided 787 187 203 478 538 — — 2,193 — 2,193 Other adjustments note (ii) 73 32 31 45 71 — — 252 — 252 Recovery of insurance acquisition cash flows 1,207 306 234 435 563 — — 2,745 — 2,745 Insurance revenue 3,229 1,142 1,134 1,983 1,883 — — 9,371 — 9,371 Other revenue note (iii) 22 4 4 — 39 299 — 368 1 369 Total revenue from external customers note (iv) 3,251 1,146 1,138 1,983 1,922 299 — 9,739 1 9,740 Intra-group revenue — — — — — 184 (184) — — — Interest income 1,033 92 239 785 627 7 — 2,783 164 2,947 Dividend and other investment income 775 93 151 528 117 3 — 1,667 7 1,674 Investment appreciation (depreciation) 2,155 50 177 1,490 1,309 4 — 5,185 (43) 5,142 Investment return 3,963 235 567 2,803 2,053 198 (184) 9,635 128 9,763 Total revenue 7,214 1,381 1,705 4,786 3,975 497 (184) 19,374 129 19,503 IFRS 17 basis 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 Amounts relating to changes in the liability for remaining coverage: Expected claims and other directly attributable expenses 969 438 563 935 736 — — 3,641 — 3,641 Change in risk adjustment for non-financial risk 53 33 20 33 30 — — 169 — 169 Release of CSM for services provided 737 274 215 442 513 — — 2,181 — 2,181 Other adjustments note (ii) 30 16 — 27 32 — — 105 — 105 Recovery of insurance acquisition cash flows 1,051 309 231 378 484 — — 2,453 — 2,453 Insurance revenue 2,840 1,070 1,029 1,815 1,795 — — 8,549 — 8,549 Other revenue note (iii) 65 6 — 1 33 330 — 435 1 436 Total revenue from external customers note (iv) 2,905 1,076 1,029 1,816 1,828 330 — 8,984 1 8,985 Intra-group revenue — — — — 1 199 (200) — — — Interest income 927 83 208 724 601 4 — 2,547 50 2,597 Dividend and other investment income 689 77 183 576 107 1 — 1,633 25 1,658 Investment depreciation (23,615) (69) (386) (6,679) (2,860) (21) — (33,630) (5) (33,635) Investment return (21,999) 91 5 (5,379) (2,151) 183 (200) (29,450) 70 (29,380) Total revenue (19,094) 1,167 1,034 (3,563) (323) 513 (200) (20,466) 71 (20,395) IFRS 4 basis 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 (iii) 52 12 — 22 117 437 — 640 1 641 Total external revenue note(iv) 8,527 1,693 1,853 6,131 4,372 437 — 23,013 1 23,014 Intra-group revenue — — — — 1 217 (218) — — — Interest income 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 10,197 1,888 1,933 7,315 4,716 665 (218) 26,496 4 26,500 Notes (i) The Group’s share of the results from the joint ventures and associates including CPL that are equity accounted for 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 2023 is $560 million (2022: $595 million under IFRS 17 basis; 2021: $ 3,052 million under IFRS 4 basis). Further financial information on CPL is provided in note D5.3. (ii) Other adjustments comprise experience adjustment for premium receipts relating to past and current services provided under insurance contracts and insurance revenue earned from contracts measured under the PAA as well as the revenue recognised to cover the tax charge attributable to policyholders. (iii) Other revenue comprises revenue from external customers and consists primarily of revenue from the Group’s asset management business of $299 million (2022: $330 million; 2021: $437 million). Also included in other revenue is fee income on financial instruments that are not held at FVTPL of $3 million (2022: $2 million; 2021: $1 million). (iv) Due to the nature of the business of the Group, there is no reliance on any major customers. Of the Group’s markets, other than Hong Kong, Singapore, Indonesia and Malaysia as shown above, no individual markets have revenue from external customers that exceeds 10 per cent of the Group total for the years presented. |
Schedule of investment return | IFRS 9 basis 2023 $m Interest income calculated using the effective interest method 340 Net gains on financial instruments at FVTPL note (i) 9,400 Dividend income from Jackson shares designated at FVOCI recognised in the income statement 7 Other investment returns (including foreign exchange gains and losses) 267 Movement in amounts attributable to external unit holders of consolidated investment funds (251) Investment return recognised in the income statement 9,763 Valuation movements in Jackson shares recognised in other comprehensive income 8 Total investment return recognised in the income statement and other comprehensive income 9,771 IAS 39 basis 2022 $m Interest income calculated using the effective interest method 237 Net losses on financial instruments at FVTPL note (i) (30,890) Dividend income from Jackson shares classified as AFS recognised in the income statement 24 Other investment returns (including foreign exchange gains and losses) 239 Movement in amounts attributable to external unit holders of consolidated investment funds 1,010 Investment return recognised in the income statement (29,380) Valuation movements in Jackson shares recognised in other comprehensive income (187) Total investment return recognised in the income statement and other comprehensive income (29,567) IAS 39 basis 2021 $m Net realised and unrealised gains on securities at fair value through profit or loss note (ii) 624 Net realised and unrealised losses on derivatives at fair value through profit or loss note (ii) (943) Net realised losses on loans note (ii) (2) Interest income note (iii) 2,570 Dividend income 1,496 Other investment returns (including foreign exchange gains and losses) (259) Investment return recognised in the income statement 3,486 Notes (i) Net gains (losses) comprise interest income on financial instruments at FVTPL, dividend and other investment income and investment appreciation (depreciation). Net realised gains and losses on the Group’s investments for 2023 recognised in the income statement amounted to a net loss of $(6.0) billion (2022: a net loss of $(9.4) billion). (ii) Net realised gains and losses on the Group’s investments for 2021 recognised in the income statement amounted a net gain of $6.0 billion. (iii) Interest income in 2021 includes $280 million in respect of financial assets not at fair value through profit and loss. |
Schedule of allocation of investment return between policyholders and shareholders under IFRS 4 | IFRS 4 basis 2021 $m Policyholder returns Assets backing unit-linked liabilities 516 With-profits business 2,700 3,216 Shareholder returns 270 Total investment return 3,486 |
Schedule of net insurance and reinsurance finance income (expense) | IFRS 17 basis 2023 $m 2022 $m Net finance (expense) income from insurance contracts notes (i)(ii) Accretion of interest on GMM contracts (233) (240) Changes in fair value of underlying assets and other adjustments relating to VFA contracts (8,162) 28,498 Effect of changes in interest rates and other financial assumptions (276) 458 Effect of measuring changes in estimates at current rates and adjusting the CSM at locked-in rates 43 53 Net foreign exchange income (expense) 12 (524) Other finance (expense) income from insurance contracts note (iii) (223) 378 (8,839) 28,623 Net finance expense from reinsurance contracts held notes (i)(ii) Accretion of interest on GMM contracts 45 45 Effect of changes in interest rates and other financial assumptions 168 (1,301) Effect of measuring changes in estimates at current rates and adjusting the CSM at locked-in rates (11) 71 Net foreign exchange (expense) (8) (1) Other finance (expense) from reinsurance contracts note (iv) (3) (7) 191 (1,193) Notes (i) The Group has made an accounting policy choice to disaggregate the finance component of the risk adjustment and present it under insurance finance income (expenses) instead of insurance service result. (ii) The analysis of the investment return on the assets of the Group is provided in note B1.4. The impact of changes in market movements on the assets and insurance contract liabilities will vary depending on whether the insurance contracts are classified as VFA or GMM, which is discussed further in note C6.1 (a). (iii) Other finance (expense) income from insurance contracts includes the effect of changes in the policyholders’ interest in the excess net assets of relevant participating funds of $(192) million (2022: $515 million). (iv) Other finance (expense) from reinsurance contracts held includes the effect of changes in non-performance risk of reinsurers of $(3) million (2022: $(7) million). |
Schedule of additional segmental analysis of profit after tax | IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m CPL note (577) (345) 278 Hong Kong 976 (742) 1,068 Indonesia 156 108 362 Malaysia 257 178 265 Singapore 512 (7) 394 Growth markets and other note 775 314 434 Eastspring 254 234 284 Total segment 2,353 (260) 3,085 Unallocated to a segment (central operations) (641) (737) (871) Total profit (loss) after tax 1,712 (997) 2,214 Note 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 that are accounted for on an equity-method basis. Accordingly, on the segmental analysis of the profit after tax basis above, the amount shown for CPL is before tax (with its tax being included in the Growth markets and other segment). The Group's share of CPL's post-tax result was $(366) million (2022: $(275) million). |
Insurance service expenses an_2
Insurance service expenses and other expenditure (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance service expenses and other expenditure | |
Schedule of analysis of expenses | IFRS 17 basis 2023 $m 2022 $m Expenses attributed to insurance acquisition cash flows note (i) 4,833 3,232 Other directly attributable expenses note (ii) 1,258 1,221 Other expenditure note (iii) 990 1,019 Total expenses 7,081 5,472 Notes (i) Expenses attributed to insurance acquisition cash flows represent insurance acquisition expenses incurred in the year, which are implicitly deferred within the CSM and amortised as part of the CSM amortisation. (ii) Other directly attributable expenses are those incurred in the year when providing insurance services to the policyholders, excluding the cost of claims and benefit payments. The expected other directly attributable expenses are explicitly included within the BEL and form part of the BEL release to the insurance revenue. The actual other directly attributable expenses incurred in the year form part of insurance service expenses. (iii) Other expenditure includes interest expense other than interest on core structural borrowings that is presented separately on the income statement as Finance costs. Total segment interest expense is $58 million (2022: $23 million), of which $31 million arises in the Hong Kong segment (2022: $11 million) and $23 million (2022: $9 million) arises in the Centre segment with the remainder spread broadly across the other markets. Included within interest expense is $7 million (2022: $8 million) of interest on lease liabilities. Core structural borrowings and operational borrowings (other than lease liabilities) represent financial liabilities that are not classified at FVTPL. Total depreciation and amortisation expenses relate primarily to amortisation of distribution rights intangibles as shown in note C4.2. The segmental analysis of total depreciation and amortisation is shown below. |
Schedule of segmental analysis of depreciation and amortisation | IFRS 17 basis 2023 $m 2022 $m Hong Kong 42 43 Indonesia 11 12 Malaysia 21 21 Singapore 36 40 Growth markets and other 369 339 Eastspring 12 13 Total segment 491 468 Unallocated to a segment (central operations) 33 26 Total depreciation and amortisation 524 494 |
Schedule of costs of employment | 2023 $m 2022 $m 2021 $m Discontinued US Continuing operations Group total Wages and salaries 1,079 1,018 973 511 1,484 Social security costs 37 41 42 22 64 Defined contribution pension schemes 46 40 42 29 71 Total Group 1,162 1,099 1,057 562 1,619 |
Schedule of average number of staff employed | 2023 2022 2021 Asia and Africa operations note (i) 14,479 13,685 13,237 Head office function 551 511 600 Total continuing operations 15,030 14,196 13,837 Discontinued US operations note (ii) — — 3,306 Total Group 15,030 14,196 17,143 Notes (i) The Asia and Africa operations staff numbers above exclude 621 (2022: 744 ; 2021: 440 ) 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 movement in outstanding options and awards | Awards outstanding under Options outstanding under SAYE schemes incentive plans 2023 2022 2021 2023 2022 2021 Weighted Weighted Weighted average average Number average Number exercise Number exercise of options exercise of options price of options price millions price Number of awards millions £ millions £ millions £ millions Balance at beginning of year: 1.9 10.4 2.0 11.6 2.3 11.9 21.0 24.6 40.6 Granted 0.4 7.8 0.5 7.4 0.4 11.9 6.3 6.5 5.2 Modification — — 0.1 11.8 — — 0.7 Exercised (0.3) 11.6 (0.3) 11.2 (0.7) 12.6 (10.1) (7.2) (8.6) Forfeited — 7.8 — 10.8 — 11.1 (1.7) (1.1) (3.1) Cancelled (0.3) 12.0 (0.3) 12.7 (0.1) 11.5 (0.1) (0.1) (0.1) Lapsed/Expired — 10.4 — 13.0 — 12.9 (1.1) (1.7) (0.6) Jackson awards derecognised on demerger note — — (9.5) Balance at end of year 1.7 9.5 1.9 10.4 2.0 11.6 14.3 21.0 24.6 Options immediately exercisable at end of year 0.2 10.8 0.3 12.5 0.2 12.3 |
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 £ 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 Between £7 and £8 0.7 0.5 — 3.7 4.1 — 7.55 7.37 — — — — — — — Between £9 and £10 0.3 0.4 0.4 1.4 2.2 3.2 9.64 9.64 9.64 0.1 — — 9.64 — — Between £11 and £12 0.6 0.8 1.2 2.0 2.4 2.7 11.59 11.48 11.38 — 0.2 0.1 — 11.12 11.04 Between £12 and £13 — — — — — — — — — — — — — — — Between £13 and £14 0.1 0.1 0.2 0.4 1.4 1.6 13.94 13.94 13.94 0.1 — 0.1 13.94 — 13.94 Between £14 and £15 — 0.1 0.2 — 0.4 1.4 — 14.55 14.55 — 0.1 — — 14.55 — Total 1.7 1.9 2.0 2.6 2.6 2.6 9.50 10.43 11.61 0.2 0.3 0.2 10.82 12.48 12.26 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 | 2023 2022 2021 Prudential SAYE Other Prudential SAYE Other Prudential SAYE Other LTIP (TSR) options awards LTIP (TSR) options awards LTIP (TSR) options awards Dividend yield (%) — 1.38 — — 1.11 — — 0.81 — Expected volatility (%) 31.50 30.02 — 33.64 25.68 — 26.69 22.31 — Risk-free interest rate (%) 4.34 4.55 — 2.79 3.97 — 0.36 1.18 — Expected option life (years) — 3.95 — — 4.52 — — 4.50 — Weighted average exercise price (£) — 7.75 — — 7.37 — — 11.90 — Weighted average share price at grant date (£) 11.59 8.89 — 11.15 9.54 — 15.11 14.76 — Weighted average fair value at grant date (£) 5.10 2.85 11.45 2.09 3.45 11.11 7.70 4.13 14.79 |
Schedule of key management remuneration | 2023 $m 2022 $m 2021 $m Salaries and short-term benefits (including fees paid to non-executive directors) 27.0 22.5 29.3 Post-employment benefits 1.0 1.0 1.4 Share-based payments 22.2 15.4 14.0 Payments on separation — 1.0 23.5 50.2 39.9 68.2 |
Schedule of fees payable to the auditor | 2023 $m 2022 $m 2021 $m Audit of the Company’s annual accounts 5.8 2.3 2.4 Audit of subsidiaries pursuant to legislation 8.1 4.4 5.9 Audit fees payable to the auditor note (i) 13.9 6.7 8.3 Audit-related assurance services note (ii) 4.0 3.5 4.5 Other assurance services 0.9 0.7 1.1 Services relating to corporate finance transactions — — 1.6 Non-audit fees payable to the auditor 4.9 4.2 7.2 Total fees payable to the auditor 18.8 10.9 15.5 Analysed into: Fees payable to the auditor attributable to continuing operations: One-off non-audit services associated with demerger and public offering note (iii) — — 1.9 Other audit and non-audit services 18.8 10.9 11.3 18.8 10.9 13.2 Fees payable to the auditor attributable to discontinued US operations — — 2.3 Total fees payable to the auditor 18.8 10.9 15.5 Notes (i) EY became the Group’s statutory auditor in 2023 replacing KPMG who was the statutory auditor during 2022 and 2021. The 2023 fees shown above are wholly in respect of fees payable to EY while the 2022 fees were the fees paid to KPMG. (ii) Of the audit-related assurance service fees of $4.0 million for EY in 2023 (2022: $3.5 million; 2021: $4.5 million for KPMG), $1.1 million (2022: $0.9 million, 2021: $0.6 million) relates to services that are required by law and regulation as defined by the FRC. (iii) 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, 2023 | |
Tax charge | |
Schedule of total tax charge in the income statment | IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Hong Kong (129) (106) (119) Indonesia (43) (27) (70) Malaysia (98) (44) (73) Singapore (174) (61) (328) Growth markets and other (103) (210) (163) Eastspring (26) (26) (30) Total segment note (i) (573) (474) (783) Unallocated to a segment (central operations) 13 (4) (21) Total tax charge notes (i)(ii) (560) (478) (804) Notes (i) 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. (ii) The total tax charge is analysed between current tax and deferred tax as follows |
Schedule of total tax charge | IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m Current tax expense: Corporation tax (457) (474) (405) Adjustments in respect of prior years 1 (7) 6 Total current tax charge (456) (481) (399) Deferred tax arising from: Origination and reversal of temporary differences (135) — (388) Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year 31 3 (17) Total deferred tax (charge) credit (104) 3 (405) Total tax charge (560) (478) (804) |
Schedule of shareholder profit and tax charge | IFRS 17 basis IFRS 4 basis 2023 2022 2021 $m % $m % $m % Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) 2,272 (519) 3,018 Tax charge attributable to policyholders’ returns note (i) (175) (124) (342) Profit (loss) before tax attributable to shareholders’ returns 2,097 (643) 2,676 Tax (charge) credit at the expected rate (399) 19 % 85 13 % (539) 20 % Effects of recurring tax reconciliation items: Income not taxable or taxable at concessionary rates note (ii) 80 (4) % 61 9 % 63 (2) % Deductions and losses not allowable for tax purposes note (iii) (136) 6 % (196) (30) % (92) 3 % Items related to taxation of life insurance businesses note (iv) 137 (7) % (129) (20) % 177 (7) % Deferred tax adjustments including unrecognised tax losses 13 (1) % (45) (7) % (111) 4 % Effect of results of joint ventures and associates note (v) (38) 2 % (32) (5) % 80 (3) % Irrecoverable withholding taxes note (vi) (63) 3 % (55) (9) % (60) 2 % Other (2) 1 % (15) (2) % (8) 1 % Total (charge) credit on recurring items (9) 0 % (411) (64) % 49 (2) % Effects of non-recurring tax reconciliation items: Adjustments to tax charge in relation to prior years note(vii) 42 (2) % 1 0 % (11) 0 % Movements in provisions for open tax matters note (viii) (15) 1 % (40) (6) % 47 (2) % Impact of changes in local statutory tax rates — 0 % — 0 % 6 0 % Adjustments in relation to business disposals and corporate transactions (4) 0 % 11 2 % (14) 1 % Total credit (charge) on non-recurring items 23 (1) % (28) (4) % 28 (1) % Tax charge attributable to shareholders’ returns (385) (354) (462) Tax charge attributable to policyholders’ returns note (i) (175) (124) (342) Tax charge attributable to shareholders’ and policyholders’ returns (560) (478) (804) Profit before tax attributable to shareholders’ returns analysed into: Adjusted operating profit 2,893 2,722 3,233 Non-operating result note (ix) (796) (3,365) (557) Profit (loss) before tax attributable to shareholders’ returns 2,097 (643) 2,676 Tax charge attributable to shareholders' returns analysed into: Tax charge on adjusted operating profit (444) (539) (548) Tax credit on non-operating result note (ix) 59 185 86 Tax charge attributable to shareholders’ returns (385) (354) (462) Actual tax rate on: Adjusted operating profit: Including non-recurring tax reconciling items note(x) 15 % 20 % 17 % Excluding non-recurring tax reconciling items 16 % 18 % 18 % Profit before tax attributable to shareholders’ returns note (x) 18 % (55) % 17 % Notes (i) The tax charge attributable to policyholders of $(175) million (2022: $(124) million on an IFRS 17 basis; 2021: $(342) million on an IFRS 4 basis) is equal to the profit before tax attributable to policyholders as a result of accounting for policyholder income after the deduction of expenses on a post-tax basis. (ii) Income not taxable or taxable at concessionary rates primarily relates to non-taxable investment income in Growth markets and Singapore. (iii) Deductions and losses not allowable for tax purposes primarily relates to non-deductible head office costs in Other operations. (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) 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. (vi) 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. (vii) Adjustments to tax charge in relation to prior years primarily relates to the recognition of a deferred tax asset in relation to historical tax losses, due to an increase in forecast taxable profit in the UK tax group. (viii) The statement of financial position contains the following provisions in relation to open tax matters. 2023 $m Balance at 1 Jan (79) Movements in the current year included in tax charge attributable to shareholders (15) 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) 1 Balance at 31 Dec (93) (ix) ‘Non-operating result’ is used to refer to items excluded from adjusted operating profit and includes short-term investment fluctuations in investment returns and corporate transactions. 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. (x) The actual tax rates of the relevant business operations are shown below: IFRS 17 basis 2023 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 7 % 22 % 22 % 16 % 20 % 9 % 2 % 15 % Tax rate on profit before tax 7 % 22 % 20 % 16 % 11 % 9 % 2 % 18 % IFRS 17 basis 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 19 % 26 % 16 % 33 % 10 % 0 % 20 % Tax rate on profit before tax (7) % 16 % 25 % 63 % 40 % 10 % (1) % (55) % IFRS 4 basis 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 % |
Schedule of movements in provisions for open tax matters | 2023 $m Balance at 1 Jan (79) Movements in the current year included in tax charge attributable to shareholders (15) 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) 1 Balance at 31 Dec (93) |
Schedule of tax rate of relevant business operations | IFRS 17 basis 2023 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 7 % 22 % 22 % 16 % 20 % 9 % 2 % 15 % Tax rate on profit before tax 7 % 22 % 20 % 16 % 11 % 9 % 2 % 18 % IFRS 17 basis 2022 % Growth Total Hong markets Other attributable to Kong Indonesia Malaysia Singapore and other Eastspring operations shareholders Tax rate on adjusted operating profit 4 % 19 % 26 % 16 % 33 % 10 % 0 % 20 % Tax rate on profit before tax (7) % 16 % 25 % 63 % 40 % 10 % (1) % (55) % IFRS 4 basis 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 % |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Schedule of earnings per share | 2023 IFRS 17 basis Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on profit for the year 2,097 (385) (11) 1,701 62.1 ¢ 61.9 ¢ Short-term fluctuations in investment returns 774 (59) — 715 26.1 ¢ 26.0 ¢ Loss attaching to corporate transactions 22 — — 22 0.8 ¢ 0.8 ¢ Based on adjusted operating profit 2,893 (444) (11) 2,438 89.0 ¢ 88.7 ¢ For 2023, the weighted average number of shares for calculating basic earnings per share, which excludes those held in employee share trusts, is 2,741 million. After including a dilutive effect of the Group's share options and awards(see note B2.2) of 6 million, the weighted average number of shares for calculating diluted earnings per share is, 2,747 million. 2022 IFRS 17 basis Net of tax Non- and non- Basic Diluted Before controlling controlling earnings earnings tax Tax interests interests per share per share $m $m $m $m cents cents Based on loss for the year (643) (354) (10) (1,007) (36.8) ¢ (36.8) ¢ Short-term fluctuations in investment returns 3,420 (185) (1) 3,234 118.2 ¢ 118.2 ¢ Gain attaching to corporate transactions (55) — — (55) (2.0) ¢ (2.0) ¢ Based on adjusted operating profit 2,722 (539) (11) 2,172 79.4 ¢ 79.4 ¢ For 2022, the weighted average number of shares for calculating basic and diluted 2021 (IFRS 4 basis) 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 ¢ |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dividends | |
Schedule of dividends | 2023 2022 2021 Cents per Cents per Cents per share $m share $m share $m Dividends relating to reporting year: First interim dividend 6.26 ¢ 172 5.74 ¢ 154 5.37 ¢ 140 Second interim dividend 14.21 ¢ 392 13.04 ¢ 359 11.86 ¢ 326 Total relating to reporting year 20.47 ¢ 564 18.78 ¢ 513 17.23 ¢ 466 Dividends paid in reporting year: Current year first interim dividend 6.26 ¢ 172 5.74 ¢ 154 5.37 ¢ 138 Second interim dividend for prior year 13.04 ¢ 361 11.86 ¢ 320 10.73 ¢ 283 Total paid in reporting year 19.30 ¢ 533 17.60 ¢ 474 16.10 ¢ 421 |
Group assets and liabilities (T
Group assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Group assets and liabilities | |
Schedule of segment statement of financial position by business type | 31 Dec 2023 $m Asia and Africa Insurance Funds with policyholder Unit-linked Unallocated Group participation funds Other Eastspring Total to a segment total note (i) Debt securities Sovereign debt Indonesia 393 611 525 — 1,529 — 1,529 Singapore 3,006 607 929 — 4,542 — 4,542 Thailand 2 4 1,957 — 1,963 — 1,963 United Kingdom — 5 87 — 92 — 92 United States 23,552 84 2,351 — 25,987 — 25,987 Vietnam 3,143 30 173 — 3,346 — 3,346 Other (predominantly Asia) 4,375 664 1,732 28 6,799 — 6,799 Subtotal 34,471 2,005 7,754 28 44,258 — 44,258 Other government bonds AAA 1,533 94 119 — 1,746 — 1,746 AA+ to AA- 120 17 29 — 166 — 166 A+ to A- 689 95 239 — 1,023 — 1,023 BBB+ to BBB- 271 57 56 — 384 — 384 Below BBB- and unrated 502 11 63 2 578 — 578 Subtotal 3,115 274 506 2 3,897 — 3,897 Corporate bonds AAA 1,214 147 243 — 1,604 — 1,604 AA+ to AA- 2,716 440 934 — 4,090 — 4,090 A+ to A- 10,918 460 2,179 — 13,557 1 13,558 BBB+ to BBB- 9,466 714 2,055 — 12,235 1 12,236 Below BBB- and unrated 2,280 500 356 — 3,136 — 3,136 Subtotal 26,594 2,261 5,767 — 34,622 2 34,624 Asset-backed securities AAA 174 2 54 — 230 — 230 AA+ to AA- 6 — 2 — 8 — 8 A+ to A- 30 — 7 — 37 — 37 BBB+ to BBB- 7 — 2 — 9 — 9 Below BBB- and unrated — 1 — — 1 — 1 Subtotal 217 3 65 — 285 — 285 Total debt securities notes (ii)(iv) 64,397 4,543 14,092 30 83,062 2 83,064 Loans Mortgage loans 65 — 83 — 148 — 148 Other loans 430 — — — 430 — 430 Total loans 495 — 83 — 578 — 578 Equity securities and holdings in collective investment schemes Direct equities 18,711 12,075 182 128 31,096 — 31,096 Collective investment schemes 24,529 7,546 1,580 2 33,657 — 33,657 Total equity securities and holdings in collective investment schemes 43,240 19,621 1,762 130 64,753 — 64,753 Other financial investments note (iii) 2,893 396 1,707 101 5,097 2,628 7,725 Total financial investments note (v) 111,025 24,560 17,644 261 153,490 2,630 156,120 Investment properties — — 39 — 39 — 39 Cash and cash equivalents 1,054 647 1,287 173 3,161 1,590 4,751 Total investments 112,079 25,207 18,970 434 156,690 4,220 160,910 31 Dec 2022 $m Asia and Africa Insurance Funds with policyholder Unit-linked Unallocated Group participation funds Other Eastspring Total to a segment total note (i) Debt securities Sovereign debt Indonesia 565 589 400 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 21,580 54 257 — 21,891 — 21,891 Vietnam 2,263 12 135 — 2,410 — 2,410 Other (predominantly Asia) 3,663 646 1,666 27 6,002 — 6,002 Subtotal 31,311 1,812 4,831 97 38,051 — 38,051 Other government bonds AAA 1,480 85 108 — 1,673 — 1,673 AA+ to AA- 112 21 20 — 153 — 153 A+ to A- 765 139 233 — 1,137 — 1,137 BBB+ to BBB- 327 77 99 — 503 — 503 Below BBB- and unrated 483 22 67 — 572 — 572 Subtotal 3,167 344 527 — 4,038 — 4,038 Corporate bonds AAA 1,094 181 268 — 1,543 — 1,543 AA+ to AA- 2,356 385 1,151 — 3,892 — 3,892 A+ to A- 9,233 524 2,345 — 12,102 — 12,102 BBB+ to BBB- 9,515 1,325 2,344 1 13,185 — 13,185 Below BBB- and unrated 2,918 444 454 — 3,816 — 3,816 Subtotal 25,116 2,859 6,562 1 34,538 — 34,538 Asset-backed securities AAA 228 5 85 — 318 — 318 AA+ to AA- 7 1 2 — 10 — 10 A+ to A- 25 — 9 — 34 — 34 BBB+ to BBB- 17 — 6 — 23 — 23 Below BBB- and unrated 2 1 1 — 4 — 4 Subtotal 279 7 103 — 389 — 389 Total debt securities notes (ii)(iv) 59,873 5,022 12,023 98 77,016 — 77,016 Loans Mortgage loans 92 — 48 — 140 — 140 Other loans 450 — — — 450 — 450 Total loans 542 — 48 — 590 — 590 Equity securities and holdings in collective investment schemes Direct equities 15,000 11,379 202 61 26,642 266 26,908 Collective investment schemes 22,015 6,760 1,992 2 30,769 2 30,771 Total equity securities and holdings in collective investment schemes 37,015 18,139 2,194 63 57,411 268 57,679 Other financial investments note (iii) 3,010 379 1,599 107 5,095 1,749 6,844 Total financial investments note (v) 100,440 23,540 15,864 268 140,112 2,017 142,129 Investment properties — — 37 — 37 — 37 Cash and cash equivalents 1,563 749 1,266 127 3,705 1,809 5,514 Total investments 102,003 24,289 17,167 395 143,854 3,826 147,680 Notes (i) Funds with policyholder participation represent investments held to support insurance products where policyholders participate in the returns of a specified pool of investments (excluding unit-linked policies) that are measured using the variable fee approach. (ii) Of the Group’s debt securities, the following amounts were held by the consolidated investment funds: 31 Dec 2023 $m 31 Dec 2022 $m Debt securities held by the consolidated investment funds 11,116 11,899 (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 $156,120 million as at 31 December 2023 (31 December 2022: $142,129 million), $80,022 million (31 December 2022: $68,949 million) are expected to be recovered within one year, including equity securities and holdings in collective investment schemes. |
Schedule of accrued investment income and other debtors | 31 Dec 2023 $m 31 Dec 2022 $m Interest receivable 871 806 Other accrued income 132 177 Total accrued investment income 1,003 983 Other debtors 1,161 968 Total accrued investment income and other debtors 2,164 1,951 Analysed as: Expected to be settled within one year 2,048 1,882 Expected to be settled beyond one year 116 69 Total accrued investment income and other debtors 2,164 1,951 |
Schedule of accruals, deferred income and other liabilities | 31 Dec 2023 $m 31 Dec 2022 $m Accruals and deferred income 244 200 Interest payable 35 59 Other creditors 3,756 2,607 Total accruals, deferred income and other creditors 4,035 2,866 |
Schedule of cash and cash equivalents | 31 Dec 2023 $m 31 Dec 2022 $m Cash 1,964 1,878 Cash equivalents 2,787 3,636 Total cash and cash equivalents 4,751 5,514 Analysed as: Held by the Group's holding and non-regulated entities and available for general use 1,590 1,809 Other funds not available for general use by the Group, including funds held for the benefit of policyholders 3,161 3,705 Total cash and cash equivalents 4,751 5,514 |
Schedule of provisions | 2023 $m 2022 $m Balance at 1 Jan 206 234 Charge (credit) to income statement: Additional provisions 198 153 Unused amounts released (10) (19) Utilisation during the year (172) (154) Exchange differences 2 (8) Balance at 31 Dec 224 206 |
Consolidated investment funds | |
Group assets and liabilities | |
Schedule of analysis of securities | 31 Dec 2023 $m 31 Dec 2022 $m Debt securities held by the consolidated investment funds 11,116 11,899 |
Measurement of financial asse_2
Measurement of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Schedule of contractual maturities of financial liabilities, excluding derivative liabilities, on an undiscounted cash flow basis | 31 Dec 2023 $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 Investment contracts without DPF note 769 155 169 68 149 24 9 5 273 852 Core structural borrowings of shareholder-financed businesses 3,933 126 126 379 3,555 — — — 750 4,936 Lease liabilities under IFRS 16 234 76 62 86 25 2 — — — 251 Other operational borrowings 707 707 — — — — — — — 707 Obligations under funding, securities lending and sale and repurchase agreements 716 716 — — — — — — — 716 Accruals, deferred income and other liabilities 4,035 3,845 — — — — — — 190 4,035 Net asset value attributable to unit holders of consolidated investment funds 2,711 2,711 — — — — — — — 2,711 Total non-derivative financial liabilities 13,105 8,336 357 533 3,729 26 9 5 1,213 14,208 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 Investment contracts without DPF note 663 11 163 206 98 22 8 4 243 755 Core structural borrowings of shareholder-financed businesses 4,261 509 124 370 2,598 1,024 — — 750 5,375 Lease liabilities under IFRS 16 299 101 76 127 28 9 — — — 341 Other operational borrowings 516 516 — — — — — — — 516 Obligations under funding, securities lending and sale and repurchase agreements 582 582 — — — — — — — 582 Accruals, deferred income and other liabilities 2,866 2,686 — — — — — — 180 2,866 Net asset value attributable to unit holders of consolidated investment funds 4,193 4,193 — — — — — — — 4,193 Total non-derivative financial liabilities 13,380 8,598 363 703 2,724 1,055 8 4 1,173 14,628 |
Schedule of maturity profile of net derivative positions | Carrying value of net derivatives $m Net Derivative Derivative derivative assets liabilities position 31 Dec 2023 1,855 (238) 1,617 31 Dec 2022 569 (1,001) (432) |
Schedule of gross and net information about financial instruments subject to master netting arrangements | 31 Dec 2023 $m Related amounts not offset Gross amount in the balance sheet included in the Net amount balance Financial Cash Securities included in the sheet instruments collateral collateral balance sheet note (i) note (ii) note (iv) Derivative assets 1,820 (138) (1,529) (11) 142 Reverse repurchase agreements 3,616 (12) — (3,604) — Total financial assets 5,436 (150) (1,529) (3,615) 142 Derivative liabilities (225) 138 57 — (30) Securities lending and repurchase agreements (713) — (18) 730 (1) Total financial liabilities (938) 138 39 730 (31) 31 Dec 2022 $m Related amounts not offset Gross amount in the balance sheet included in the Net amount balance Financial Cash Securities included in the sheet instruments collateral collateral balance sheet note (i) note (ii) note (iii) note (iv) Derivative assets 457 (179) (217) — 61 Reverse repurchase agreements 3,174 — — (3,174) — Total financial assets 3,631 (179) (217) (3,174) 61 Derivative liabilities (284) 179 27 6 (72) Securities lending and repurchase agreements (582) — 13 566 (3) Total financial liabilities (866) 179 40 572 (75) 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 2023 $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 (iii) Loans — 430 — 430 Equity securities and holdings in collective investment schemes 56,327 5,562 2,864 64,753 Debt securities note (i) 64,004 19,020 40 83,064 Derivative assets 1,460 395 — 1,855 Derivative liabilities (58) (180) — (238) Total financial investments, net of derivative liabilities 121,733 25,227 2,904 149,864 Investment contract liabilities without DPF note (ii) — (769) — (769) Net asset value attributable to unit holders of consolidated investment funds (2,711) — — (2,711) Total financial instruments at fair value 119,022 24,458 2,904 146,384 Percentage of total (%) 81 % 17 % 2 % 100 % 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 (iii) Loans — 447 3 450 Equity securities and holdings in collective investment schemes 49,725 7,130 824 57,679 Debt securities note (i) 57,148 19,763 38 76,949 Derivative assets 82 487 — 569 Derivative liabilities (778) (223) — (1,001) Total financial investments, net of derivative liabilities 106,177 27,604 865 134,646 Investment contract liabilities without DPF note (ii) — (663) — (663) Net asset value attributable to unit holders of consolidated investment funds (4,193) — — (4,193) Total financial instruments at fair value 101,984 26,941 865 129,790 Percentage of total (%) 78 % 21 % 1 % 100 % Notes (i) Of the total level 2 debt securities of $19,020 million at 31 December 2023 (31 December 2022: $19,763 million), $10 million (31 December 2022: $37 million) are valued internally. (ii) For Investment contract liabilities without DPF, it is assumed that these investment contracts are not quoted in an active market and do not have readily available published prices and that their fair values are determined using valuation techniques. It is assumed that all significant inputs used in the valuation are observable and these investment contract liabilities are classified in level 2. (iii) At 31 December 2023, the Group held $2,904 million (31 December 2022: $865 million) of net financial instruments at fair value within level 3. This represents 2 per cent (2022: less than one per cent) of the total fair valued financial assets, net of financial liabilities and comprises the following: – Equity securities and holdings in collective investment schemes of $2,863 million (31 December 2022: $823 million) are externally valued using the net asset value of the invested entities and consist primarily of property and infrastructure funds held by the participating funds. Equity securities of $1 million (31 December 2022: $1 million) are internally valued. Internal valuations are inherently more subjective than external valuations; and – Other sundry individual financial instruments of a net asset of $40 million(31 December 2022: $41 million). Of the net financial instruments of $2,904 million (31 December 2022: $865 million) referred to above: – A net asset of $2,866 million (31 December 2022: $830 million) is held by the Group’s with-profits and unit-linked funds and therefore shareholders’ profit and equity are not immediately impacted by movements in the valuation of these financial instruments; and – The remaining level 3 investments comprise a net asset of $38 million (31 December 2022: $35 million) and are primarily corporate bonds valued using external prices adjusted to reflect the specific known conditions relating to these bonds (eg distressed securities). If the value of all these level 3 financial instruments decreased by 10 per cent, the change in valuation would be $(4) million (31 December 2022: $(4) million), which would reduce shareholders’ equity by this amount before tax. |
Schedule of reconciliation of movements in level 3 financial instruments measured at fair value | 2023 $m Equity securities and holdings in collective investment Debt Loans schemes securities Group total Balance at 1 Jan 3 824 38 865 Total gains in income statement note — 25 2 27 Total gains recorded in other comprehensive income — 6 — 6 Purchases and other additions — 524 — 524 Sales (3) (4) — (7) Transfers into level 3 — 1,489 — 1,489 Balance at 31 Dec — 2,864 40 2,904 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 Note Of the total net gain in the income statement of $27 million at 2023 (2022: net loss of $(35) million), $29 million (2022: $(12) 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: 2023 $m 2022 $m Loans — (2) Equity securities and holdings in collective investment schemes 27 (8) Debt securities 2 (2) Net unrealised gains and losses of financial instruments still held at the end of the year 29 (12) |
Schedule of net unrealised gains and losses in the income statement for financial instruments still held at the end of the year | 2023 $m 2022 $m Loans — (2) Equity securities and holdings in collective investment schemes 27 (8) Debt securities 2 (2) Net unrealised gains and losses of financial instruments still held at the end of the year 29 (12) |
Assets and liabilities at amortised cost for which fair value is disclosed | |
Financial instruments | |
Schedule of fair value of assets and liabilities | 31 Dec 2023 $m 31 Dec 2022 $m Carrying Fair Carrying Fair value value value value Assets Debt securities — — 67 67 Loans 148 179 140 206 Liabilities Core structural borrowings of shareholder-financed businesses (3,933) (3,659) (4,261) (3,834) Operational borrowings (excluding lease liabilities) (707) (707) (516) (516) Obligations under funding, securities lending and sale and repurchase agreements (716) (716) (582) (582) Net financial liabilities at amortised cost (5,208) (4,903) (5,152) (4,659) |
Insurance and reinsurance con_2
Insurance and reinsurance contracts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance contracts | |
Schedule of analysis of portfolio of insurance and reinsurance (RI) contract assets and liabilities | Excluding JVs and associates Including JVs and associates note (i) Assets Liabilities Net liabilities (assets) Assets Liabilities Net liabilities (assets) Insurance RI Insurance RI Insurance RI Insurance RI Insurance RI Insurance RI $m $m $m $m $m $m $m $m $m $m $m $m note (ii) note (ii) As at 31 Dec 2023 Best estimate liabilities (BEL) 3,952 1,175 120,115 1,182 116,163 7 3,998 1,315 139,673 1,222 135,675 (93) Risk adjustment for non-financial risk (RA) (631) (84) 1,713 (21) 2,344 63 (630) (67) 1,969 (24) 2,599 43 Contractual service margin (CSM) (2,173) 1,335 18,011 (10) 20,184 (1,345) (2,176) 1,321 20,176 (19) 22,352 (1,340) Insurance contract balances 1,148 2,426 139,839 1,151 138,691 (1,275) 1,192 2,569 161,818 1,179 160,626 (1,390) Assets for insurance acquisition cash flows 32 — 1 — (31) — 32 — 1 — (31) — Insurance and reinsurance contract (assets) liabilities 1,180 2,426 139,840 1,151 138,660 (1,275) 1,224 2,569 161,819 1,179 160,595 (1,390) As at 31 Dec 2022 Best estimate liabilities (BEL) 3,540 508 107,582 1,162 104,042 654 3,562 652 124,297 1,193 120,735 541 Risk adjustment for non-financial risk (RA) (505) (39) 1,418 (44) 1,923 (5) (502) (21) 1,662 (47) 2,164 (26) Contractual service margin (CSM) (1,929) 1,387 17,239 57 19,168 (1,330) (1,921) 1,369 19,383 54 21,304 (1,315) Insurance contract balances 1,106 1,856 126,239 1,175 125,133 (681) 1,139 2,000 145,342 1,200 144,203 (800) Assets for insurance acquisition cash flows 28 — 3 — (25) — 28 — 3 — (25) — Insurance and reinsurance contract (assets) liabilities 1,134 1,856 126,242 1,175 125,108 (681) 1,167 2,000 145,345 1,200 144,178 (800) As at 1 Jan 2022 (transition date) Best estimate liabilities (BEL) 3,818 1,752 126,438 1,474 122,620 (278) 3,993 1,916 142,146 1,501 138,153 (415) Risk adjustment for non-financial risk (RA) (547) (15) 1,661 (46) 2,208 (31) (575) 1 1,868 (49) 2,443 (50) Contractual service margin (CSM) (2,050) 1,050 21,699 (174) 23,749 (1,224) (2,161) 1,023 23,787 (176) 25,948 (1,199) Insurance contract balances 1,221 2,787 149,798 1,254 148,577 (1,533) 1,257 2,940 167,801 1,276 166,544 (1,664) Assets for insurance acquisition cash flows 29 — — — (29) — 29 — — — (29) — Insurance and reinsurance contract (assets) liabilities 1,250 2,787 149,798 1,254 148,548 (1,533) 1,286 2,940 167,801 1,276 166,515 (1,664) Notes (i) The Group’s investments in JVs and associates are accounted for on an equity method and the Group’s share of insurance and reinsurance contract liabilities and assets as shown above relate to the life business of CPL, India and Takaful business in Malaysia. (ii) At 31 December 2023 and 2022 the Group’s exposure to credit risk arising from insurance contracts issued is not material to the Group as premiums receivable from an individual party (policyholders and intermediaries) is not material to the Group. |
Schedule of adjusted shareholders' equity | 31 Dec 2023 $m 31 Dec 2022 $m 1 Jan 2022 (transition date) $m Group’s Group’s Group’s Balances share Total Balances share Total Balances share Total excluding relating to including excluding relating to including excluding relating to including JVs and JVs and JVs and JVs and JVs and JVs and JVs and JVs and JVs and associates associates associates associates associates associates associates associates associates Shareholders’ equity 15,883 1,940 17,823 14,472 2,259 16,731 16,238 2,698 18,936 CSM, net of reinsurance 18,839 2,173 21,012 17,838 2,151 19,989 22,525 2,224 24,749 Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders 1,367 — 1,367 1,295 — 1,295 1,144 — 1,144 Less: Related tax adjustments (2,347) (509) (2,856) (2,295) (509) (2,804) (2,531) (527) (3,058) Adjusted shareholders’ equity 33,742 3,604 37,346 31,310 3,901 35,211 37,376 4,395 41,771 |
Schedule of analysis of movements in insurance and reinsurance contract balances by measurement component | Excluding JVs and associates 2023 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,540) 505 1,929 (1,106) (508) 39 (1,387) (1,856) Opening liabilities 107,582 1,418 17,239 126,239 1,162 (44) 57 1,175 Net opening balance at 1 Jan 104,042 1,923 19,168 125,133 654 (5) (1,330) (681) Changes that relate to future service Changes in estimates that adjust the CSM (1,181) 343 838 — 57 43 (100) — Changes in estimates that result in losses or reversal of losses on onerous contracts 196 (6) — 190 (98) — — (98) New contracts in the year (2,461) 295 2,173 7 75 (5) (70) — (3,446) 632 3,011 197 34 38 (170) (98) Changes that relate to current service Release of CSM to profit or loss — — (2,193) (2,193) — — 203 203 Release of risk adjustment to profit or loss — (228) — (228) — 24 — 24 Experience adjustments (176) — — (176) 45 — — 45 (176) (228) (2,193) (2,597) 45 24 203 272 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 144 (2) — 142 (3) — — (3) Insurance service result (3,478) 402 818 (2,258) 76 62 33 171 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts (43) 47 229 233 6 (2) (49) (45) Other net finance (income) expense 8,650 (32) (12) 8,606 (156) 10 – (146) 8,607 15 217 8,839 (150) 8 (49) (191) Total amount recognised in income statement 5,129 417 1,035 6,581 (74) 70 (16) (20) Effect of movements in exchange rates 225 4 (19) 210 1 (2) 1 — Total amount recognised in comprehensive income 5,354 421 1,016 6,791 (73) 68 (15) (20) Cash flows Premiums received net of ceding commissions paid 22,294 — — 22,294 (1,032) — — (1,032) Insurance acquisition cash flows (4,270) — — (4,270) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (11,082) — — (11,082) 458 — — 458 Total cash flows 6,942 — — 6,942 (574) — — (574) Other changes note (175) — — (175) — — — — Closing assets (3,952) 631 2,173 (1,148) (1,175) 84 (1,335) (2,426) Closing liabilities 120,115 1,713 18,011 139,839 1,182 (21) (10) 1,151 Net closing balance at 31 Dec 116,163 2,344 20,184 138,691 7 63 (1,345) (1,275) Excluding JVs and associates 2022 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,818) 547 2,050 (1,221) (1,752) 15 (1,050) (2,787) Opening liabilities 126,438 1,661 21,699 149,798 1,474 (46) (174) 1,254 Net opening balance at 1 Jan 122,620 2,208 23,749 148,577 (278) (31) (1,224) (1,533) Changes that relate to future service Changes in estimates that adjust the CSM 4,043 (222) (3,821) — 280 10 (290) — Changes in estimates that result in losses or reversal of losses on onerous contracts 79 (52) — 27 (3) — — (3) New contracts in the period (1,811) 232 1,582 3 (45) 1 44 — 2,311 (42) (2,239) 30 232 11 (246) (3) Changes that relate to current service Release of CSM to profit or loss — — (2,181) (2,181) — — 168 168 Release of risk adjustment to profit or loss — (169) — (169) — 2 — 2 Experience adjustments (108) — — (108) (87) — — (87) (108) (169) (2,181) (2,458) (87) 2 168 83 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 144 2 — 146 25 — — 25 Insurance service result 2,347 (209) (4,420) (2,282) 170 13 (78) 105 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 13 9 218 240 (3) (1) (41) (45) Other net finance (income) expense (28,954) (26) 117 (28,863) 1,224 10 4 1,238 (28,941) (17) 335 (28,623) 1,221 9 (37) 1,193 Total amount recognised in income statement (26,594) (226) (4,085) (30,905) 1,391 22 (115) 1,298 Effect of movements in exchange rates (1,595) (59) (496) (2,150) (19) 4 9 (6) Total amount recognised in comprehensive income (28,189) (285) (4,581) (33,055) 1,372 26 (106) 1,292 Cash flows Premiums received net of ceding commissions paid 23,464 — — 23,464 (970) — — (970) Insurance acquisition cash flows (3,138) — — (3,138) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (10,650) — — (10,650) 519 — — 519 Total cash flows 9,676 — — 9,676 (451) — — (451) Other changes note (65) — — (65) 11 — — 11 Closing assets (3,540) 505 1,929 (1,106) (508) 39 (1,387) (1,856) Closing liabilities 107,582 1,418 17,239 126,239 1,162 (44) 57 1,175 Net closing balance at 31 Dec 104,042 1,923 19,168 125,133 654 (5) (1,330) (681) * Note |
Schedule of CSM transition approach | Insurance contracts (excluding JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan 822 3,635 14,711 19,168 944 4,798 18,007 23,749 Changes that relate to future service Changes in estimates that adjust the CSM 143 462 233 838 18 (686) (3,153) (3,821) New contracts in the year — — 2,173 2,173 — — 1,582 1,582 143 462 2,406 3,011 18 (686) (1,571) (2,239) Changes that relate to current service Release of CSM to profit or loss (135) (434) (1,624) (2,193) (122) (466) (1,593) (2,181) 8 28 782 818 (104) (1,152) (3,164) (4,420) Net finance income (expenses) from insurance contracts 24 3 190 217 35 40 260 335 Effect of movements in exchange rates (25) 8 (2) (19) (53) (51) (392) (496) Balance at 31 Dec 829 3,674 15,681 20,184 822 3,635 14,711 19,168 * Other contracts represent groups of insurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. Reinsurance contracts (excluding JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan — (34) (1,296) (1,330) — (26) (1,198) (1,224) Changes that relate to future service Changes in estimates that adjust the CSM — (19) (81) (100) — (18) (272) (290) New contracts in the year — — (70) (70) — — 44 44 — (19) (151) (170) — (18) (228) (246) Changes that relate to current service Release of CSM to profit or loss — 8 195 203 — 8 160 168 — (11) 44 33 — (10) (68) (78) Net finance income (expenses) from reinsurance contracts — (1) (48) (49) — — (37) (37) Effect of movements in exchange rates — 1 — 1 — 2 7 9 Balance at 31 Dec — (45) (1,300) (1,345) — (34) (1,296) (1,330) * Other contracts represent groups of reinsurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. |
Schedule of movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | Excluding JVs and associates 2023 $m Insurance Reinsurance Liabilities for remaining Liabilities for remaining coverage coverage Excluding Liabilities Excluding Liabilities loss Loss for incurred loss Loss for incurred component component claims Total component component claims Total note (i) note (i) Opening assets (1,200) 14 80 (1,106) (1,460) (29) (367) (1,856) Opening liabilities 123,855 622 1,762 126,239 1,220 (6) (39) 1,175 Net opening balance at 1 Jan 122,655 636 1,842 125,133 (240) (35) (406) (681) Insurance revenue Contracts measured under the modified retrospective approach (247) — — (247) Contracts measured under the fair value approach (733) — — (733) Other contracts note (ii) (8,391) — — (8,391) (9,371) — — (9,371) Insurance service expense Incurred claims and other directly attributable expenses — (42) 4,071 4,029 Amortisation of insurance acquisition cash flows 2,745 — — 2,745 Losses or reversal of losses on onerous contracts — 197 — 197 Adjustments to liability for incurred claims — — 142 142 2,745 155 4,213 7,113 Net (income) expense from reinsurance contracts held 640 (98) (371) 171 Insurance service result (6,626) 155 4,213 (2,258) 640 (98) (371) 171 Investment components and premium refunds (7,095) — 7,095 — (1) — 1 — Net finance (income) expenses from insurance and reinsurance contracts 8,792 15 32 8,839 (191) — — (191) Total amount recognised in income statement (4,929) 170 11,340 6,581 448 (98) (370) (20) Effect of movement in exchange rates 220 (4) (6) 210 (1) – 1 — Total amount recognised in comprehensive income (4,709) 166 11,334 6,791 447 (98) (369) (20) Cash flows Premiums received net of ceding commissions 22,294 — — 22,294 (1,032) — — (1,032) Insurance acquisition cash flows (4,270) — — (4,270) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* — — (11,082) (11,082) — — 458 458 Total cash flows 18,024 — (11,082) 6,942 (1,032) — 458 (574) Other changes note (iii) (236) 23 38 (175) 2 (1) (1) — Closing assets (1,285) 20 117 (1,148) (2,023) (119) (284) (2,426) Closing liabilities 137,019 805 2,015 139,839 1,200 (15) (34) 1,151 Net closing balance at 31 Dec 135,734 825 2,132 138,691 (823) (134) (318) (1,275) Excluding JVs and associates 2022 $m Insurance Reinsurance Liabilities for remaining Liabilities for remaining coverage coverage Excluding Liabilities Excluding Liabilities loss Loss for incurred loss Loss for incurred component component claims Total component component claims Total note (i) note (i) Opening assets (1,308) 17 70 (1,221) (2,431) (32) (324) (2,787) Opening liabilities 147,209 651 1,938 149,798 1,314 (1) (59) 1,254 Net opening balance at 1 Jan 145,901 668 2,008 148,577 (1,117) (33) (383) (1,533) Insurance revenue Contracts measured under the modified retrospective approach (367) — — (367) Contracts measured under the fair value approach (1,083) — — (1,083) Other contracts note (ii) (7,099) — — (7,099) (8,549) — — (8,549) Insurance service expense Incurred claims and other directly attributable expenses — (41) 3,679 3,638 Amortisation of insurance acquisition cash flows 2,453 — — 2,453 Losses or reversal of losses on onerous contracts — 30 — 30 Adjustments to liability for incurred claims — — 146 146 2,453 (11) 3,825 6,267 Net (income) expense from reinsurance contracts held 487 (2) (380) 105 Insurance service result (6,096) (11) 3,825 (2,282) 487 (2) (380) 105 Investment components and premium refunds (6,895) — 6,895 — 179 — (179) — Net finance (income) expenses from insurance and reinsurance contracts (28,605) (21) 3 (28,623) 1,182 — 11 1,193 Total amount recognised in income statement (41,596) (32) 10,723 (30,905) 1,848 (2) (548) 1,298 Effect of movement in exchange rates (2,044) (15) (91) (2,150) (10) 2 2 (6) Total amount recognised in comprehensive income (43,640) (47) 10,632 (33,055) 1,838 — (546) 1,292 Cash flows Premiums received net of ceding commissions paid 23,464 — — 23,464 (970) — — (970) Insurance acquisition cash flows (3,138) — — (3,138) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* — — (10,650) (10,650) — — 519 519 Total cash flows 20,326 — (10,650) 9,676 (970) — 519 (451) Other changes note (iii) 68 15 (148) (65) 9 (2) 4 11 Closing assets (1,200) 14 80 (1,106) (1,460) (29) (367) (1,856) Closing liabilities 123,855 622 1,762 126,239 1,220 (6) (39) 1,175 Net closing balance at 31 Dec 122,655 636 1,842 125,133 (240) (35) (406) (681) * Notes (i) The Group establishes a loss component of the liability for remaining coverage for onerous groups of insurance contracts. The loss component determines the amounts of fulfilment cash flows that are subsequently presented in profit or loss as reversals of losses on onerous contracts and are excluded from insurance revenue when they occur. (ii) Other contracts represent groups of insurance and reinsurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. (iii) Other changes include adjustments to remove the incurred non-cash expenses (such as depreciation and amortisation) from insurance contract asset/liability balance. |
Schedule of effect of insurance and reinsurance contracts initially recognised | (i) Insurance contracts Excluding JVs and associates 2023 $m 2022 $m Profitable Onerous Profitable Onerous contracts contracts contracts contracts issued issued Total issued issued Total Estimate of present value of expected future cash outflows: Insurance acquisition cash flows 4,365 101 4,466 2,416 49 2,465 Claims and other directly attributable expenses 17,125 348 17,473 12,153 420 12,573 21,490 449 21,939 14,569 469 15,038 Estimate of present value of expected future cash inflows (23,916) (484) (24,400) (16,379) (470) (16,849) Risk adjustment for non-financial risk 253 42 295 228 4 232 CSM 2,173 — 2,173 1,582 — 1,582 Loss recognised on initial recognition — 7 7 — 3 3 (ii) Reinsurance contracts Excluding JVs and associates 2023 $m 2022 $m Contracts Contracts Contracts Contracts initiated without initiated with initiated without initiated with loss-recovery loss-recovery loss-recovery loss-recovery component component Total component component Total Estimate of present value of expected future cash outflows 1,022 (1) 1,021 762 — 762 Estimate of present value of expected future cash inflows (946) — (946) (813) 6 (807) Risk adjustment for non-financial risk (5) — (5) 1 — 1 CSM (71) 1 (70) 50 (6) 44 Profit (loss) recognised on initial recognition — — — — — — |
Schedule of additional analysis of insurance and reinsurance contract balances by segment | Insurance $m Reinsurance $m BEL RA CSM Total BEL RA CSM Total As at 31 Dec 2023 CPL 13,029 152 1,652 14,833 4 (3) (22) (21) Hong Kong 60,761 776 8,536 70,073 (44) 84 (1,429) (1,389) Indonesia 2,197 206 739 3,142 22 (7) (6) 9 Malaysia 5,910 357 2,127 8,394 26 (7) 6 25 Singapore 31,770 687 4,962 37,419 (146) 3 149 6 Growth markets and other 22,008 421 4,336 26,765 45 (27) (38) (20) Total insurance segments 135,675 2,599 22,352 160,626 (93) 43 (1,340) (1,390) As at 31 Dec 2022 CPL 10,989 149 1,699 12,837 2 (3) (21) (22) Hong Kong 54,347 482 7,857 62,686 465 17 (1,405) (923) Indonesia 2,032 199 1,046 3,277 8 (3) — 5 Malaysia 5,452 334 2,241 8,027 31 (7) (2) 22 Singapore 28,752 629 4,522 33,903 40 (3) 141 178 Growth markets and other 19,163 371 3,939 23,473 (5) (27) (28) (60) Total insurance segments 120,735 2,164 21,304 144,203 541 (26) (1,315) (800) Summarised movement analysis of insurance and reinsurance contract balances by segment Insurance $m Growth Total markets and insurance CPL Hong Kong Indonesia Malaysia Singapore other segments Net opening balance at 1 Jan 2022 11,273 80,186 3,720 8,342 36,643 26,380 166,544 Insurance service result (73) (696) (117) (242) (546) (722) (2,396) Net finance income (expenses) from insurance contracts Accretion of interest on GMM contracts 206 37 37 95 31 83 489 Other net finance (income) expense 87 (21,912) 26 (77) (4,956) (1,675) (28,507) 293 (21,875) 63 18 (4,925) (1,592) (28,018) Total amount recognised in income statement 220 (22,571) (54) (224) (5,471) (2,314) (30,414) Effect of movements in exchange rates (1,019) (153) (307) (454) 117 (2,013) (3,829) Total amount recognised in comprehensive income (799) (22,724) (361) (678) (5,354) (4,327) (34,243) Total cash flows 2,363 5,216 (69) 366 2,684 1,425 11,985 Other changes — 8 (13) (3) (70) (5) (83) Net closing balance at 31 Dec 2022 / 1 Jan 2023 12,837 62,686 3,277 8,027 33,903 23,473 144,203 Insurance service result (98) (755) (146) (254) (598) (573) (2,424) Net finance income (expenses) from insurance contracts Accretion of interest on GMM contracts 227 (1) 43 100 6 142 517 Other net finance (income) expense 692 3,646 145 498 2,657 2,709 10,347 919 3,645 188 598 2,663 2,851 10,864 Total amount recognised in income statement 821 2,890 42 344 2,065 2,278 8,440 Effect of movements in exchange rates (259) (11) 46 (336) 621 (175) (114) Total amount recognised in comprehensive income 562 2,879 88 8 2,686 2,103 8,326 Total cash flows 1,434 4,509 (186) 364 884 1,273 8,278 Other changes — (1) (37) (5) (54) (84) (181) Net closing balance at 31 Dec 2023 14,833 70,073 3,142 8,394 37,419 26,765 160,626 Reinsurance $m Growth Total markets and insurance CPL Hong Kong Indonesia Malaysia Singapore other segments Net opening balance at 1 Jan 2022 (25) (1,663) 8 15 59 (58) (1,664) Insurance service result 6 63 — 10 4 24 107 Net finance income (expenses) from reinsurance contracts Accretion of interest on GMM contracts (1) (45) — 1 (1) (7) (53) Other net finance (income) expense — 1,246 (1) 1 (6) (11) 1,229 (1) 1,201 (1) 2 (7) (18) 1,176 Total amount recognised in income statement 5 1,264 (1) 12 (3) 6 1,283 Effect of movements in exchange rates 1 4 (1) — 4 5 13 Total amount recognised in comprehensive income 6 1,268 (2) 12 1 11 1,296 Total cash flows (3) (535) (1) (5) 118 (20) (446) Other changes — 7 — — — 7 14 Net closing balance at 31 Dec 2022 / 1 Jan 2023 (22) (923) 5 22 178 (60) (800) Insurance service result 8 135 2 9 17 18 189 Net finance income (expenses) from reinsurance contracts Accretion of interest on GMM contracts (1) (38) — 1 (8) (7) (53) Other net finance (income) expense — (154) (6) — 1 13 (146) (1) (192) (6) 1 (7) 6 (199) Total amount recognised in income statement 7 (57) (4) 10 10 24 (10) Effect of movements in exchange rates 3 (2) (1) (1) (1) 5 3 Total amount recognised in comprehensive income 10 (59) (5) 9 9 29 (7) Total cash flows (9) (407) 9 (6) (181) 11 (583) Other changes — — — — — — — Net closing balance at 31 Dec 2023 (21) (1,389) 9 25 6 (20) (1,390) |
Schedule of Insurance contract liabilities - expected recognition of the CSM | (i) Insurance contracts – expected recognition of the CSM 31 Dec 2023 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less 2,041 226 2,267 After 1 year to 2 years 1,780 190 1,970 After 2 years to 3 years 1,586 165 1,751 After 3 years to 4 years 1,412 146 1,558 After 4 years to 5 years 1,283 127 1,410 After 5 years to 10 years 4,604 474 5,078 After 10 years to 15 years 2,924 293 3,217 After 15 years to 20 years 1,781 195 1,976 After 20 years 2,773 352 3,125 Total CSM 20,184 2,168 22,352 31 Dec 2022 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less 1,981 219 2,200 After 1 year to 2 years 1,751 175 1,926 After 2 years to 3 years 1,555 155 1,710 After 3 years to 4 years 1,385 138 1,523 After 4 years to 5 years 1,217 122 1,339 After 5 years to 10 years 4,306 454 4,760 After 10 years to 15 years 2,705 292 2,997 After 15 years to 20 years 1,666 201 1,867 After 20 years 2,602 380 2,982 Total CSM 19,168 2,136 21,304 (ii) Reinsurance contracts – expected recognition of the CSM 31 Dec 2023 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less (177) (2) (179) After 1 year to 2 years (132) — (132) After 2 years to 3 years (103) 1 (102) After 3 years to 4 years (85) 1 (84) After 4 years to 5 years (74) 1 (73) After 5 years to 10 years (268) 3 (265) After 10 years to 15 years (173) 2 (171) After 15 years to 20 years (113) — (113) After 20 years (220) (1) (221) Total CSM (1,345) 5 (1,340) 31 Dec 2022 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less (122) (2) (124) After 1 year to 2 years (111) 2 (109) After 2 years to 3 years (100) 2 (98) After 3 years to 4 years (89) 2 (87) After 4 years to 5 years (80) 2 (78) After 5 years to 10 years (301) 5 (296) After 10 years to 15 years (188) 3 (185) After 15 years to 20 years (119) 1 (118) After 20 years (220) — (220) Total CSM (1,330) 15 (1,315) |
Schedule of insurance contract liabilities - expected recognition of BEL | (i) Insurance contract liabilities – expected cash flows (discounted) 31 Dec 2023 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less 2,256 (477) 1,779 After 1 year to 2 years 2,262 94 2,356 After 2 years to 3 years 4,269 516 4,785 After 3 years to 4 years 5,272 973 6,245 After 4 years to 5 years 4,436 828 5,264 After 5 years to 10 years 18,726 3,076 21,802 After 10 years to 15 years 16,374 2,703 19,077 After 15 years to 20 years 14,560 2,016 16,576 After 20 years 35,210 6,287 41,497 No stated maturity 16,750 3,542 20,292 Total expected future cash flows 120,115 19,558 139,673 31 Dec 2022 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less (622) (847) (1,469) After 1 year to 2 years 1,040 81 1,121 After 2 years to 3 years 3,021 477 3,498 After 3 years to 4 years 4,441 732 5,173 After 4 years to 5 years 4,652 1,146 5,798 After 5 years to 10 years 20,131 2,832 22,963 After 10 years to 15 years 16,507 2,309 18,816 After 15 years to 20 years 12,873 1,674 14,547 After 20 years 30,891 5,064 35,955 No stated maturity 14,648 3,247 17,895 Total expected future cash flows 107,582 16,715 124,297 (ii) Reinsurance contract liabilities – expected cash flows (discounted) 31 Dec 2023 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less 820 15 835 After 1 year to 2 years 58 — 58 After 2 years to 3 years 54 — 54 After 3 years to 4 years 26 — 26 After 4 years to 5 years 4 — 4 After 5 years to 10 years (3) 1 (2) After 10 years to 15 years 4 2 6 After 15 years to 20 years 5 3 8 After 20 years 214 19 233 Total expected future cash flows 1,182 40 1,222 31 Dec 2022 $m Total as reported on the Total including consolidated statement of Group’s share relating to Group’s share relating to financial position JVs and associates JVs and associates 1 year or less 136 23 159 After 1 year to 2 years 693 2 695 After 2 years to 3 years — 2 2 After 3 years to 4 years 4 1 5 After 4 years to 5 years (15) 1 (14) After 5 years to 10 years (67) 2 (65) After 10 years to 15 years 1 — 1 After 15 years to 20 years 24 — 25 After 20 years 386 (1) 385 Total expected future cash flows 1,162 30 1,193 |
Including JVs and associates | |
Insurance contracts | |
Schedule of analysis of movements in insurance and reinsurance contract balances by measurement component | Including JVs and associates 2023 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,562) 502 1,921 (1,139) (652) 21 (1,369) (2,000) Opening liabilities 124,297 1,662 19,383 145,342 1,193 (47) 54 1,200 Net opening balance at 1 Jan 120,735 2,164 21,304 144,203 541 (26) (1,315) (800) Changes that relate to future service Changes in estimates that adjust the CSM (1,142) 341 801 — 62 43 (105) — Changes in estimates that result in losses or reversal of losses on onerous contracts 224 (8) — 216 (93) — — (93) New contracts in the year (2,687) 317 2,429 59 86 (6) (81) (1) (3,605) 650 3,230 275 55 37 (186) (94) Changes that relate to current service Release of CSM to profit or loss — — (2,414) (2,414) — — 206 206 Release of risk adjustment to profit or loss — (242) — (242) — 27 — 27 Experience adjustments (170) — — (170) 50 — — 50 (170) (242) (2,414) (2,826) 50 27 206 283 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 130 (3) — 127 — — — — Insurance service result (3,645) 405 816 (2,424) 105 64 20 189 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 158 52 307 517 (3) (3) (47) (53) Other net finance (income) expense 10,379 (20) (12) 10,347 (155) 9 — (146) 10,537 32 295 10,864 (158) 6 (47) (199) Total amount recognised in income statement 6,892 437 1,111 8,440 (53) 70 (27) (10) Effect of movements in exchange rates (49) (2) (63) (114) 2 (1) 2 3 Total amount recognised in comprehensive income 6,843 435 1,048 8,326 (51) 69 (25) (7) Cash flows Premiums received net of ceding commissions paid 26,224 — — 26,224 (1,137) — — (1,137) Insurance acquisition cash flows (4,802) — — (4,802) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (13,144) — — (13,144) 554 — — 554 Total cash flows 8,278 — — 8,278 (583) — — (583) Other changes note (181) — — (181) — — — — Closing assets (3,998) 630 2,176 (1,192) (1,315) 67 (1,321) (2,569) Closing liabilities 139,673 1,969 20,176 161,818 1,222 (24) (19) 1,179 Net closing balance at 31 Dec 135,675 2,599 22,352 160,626 (93) 43 (1,340) (1,390) Including JVs and associates 2022 $m Insurance Reinsurance BEL RA CSM Total BEL RA CSM Total note (b) note (b) Opening assets (3,993) 575 2,161 (1,257) (1,916) (1) (1,023) (2,940) Opening liabilities 142,146 1,868 23,787 167,801 1,501 (49) (176) 1,276 Net opening balance at 1 Jan 138,153 2,443 25,948 166,544 (415) (50) (1,199) (1,664) Changes that relate to future service Changes in estimates that adjust the CSM 4,214 (226) (3,988) — 284 10 (294) — Changes in estimates that result in losses or reversal of losses on onerous contracts 162 (52) — 110 (17) — — (17) New contracts in the period (2,210) 259 2,027 76 (37) — 37 — 2,166 (19) (1,961) 186 230 10 (257) (17) Changes that relate to current service Release of CSM to profit or loss — — (2,413) (2,413) — — 171 171 Release of risk adjustment to profit or loss — (184) — (184) — 5 — 5 Experience adjustments (119) — — (119) (80) — — (80) (119) (184) (2,413) (2,716) (80) 5 171 96 Changes that relate to past service Adjustments to assets/liabilities for incurred claims 133 1 — 134 28 — — 28 Insurance service result 2,180 (202) (4,374) (2,396) 178 15 (86) 107 Net finance (income) expense from insurance and reinsurance contracts Accretion of interest on GMM contracts 182 13 294 489 (8) (6) (39) (53) Other net finance (income) expense (28,612) (12) 117 (28,507) 1,215 10 4 1,229 (28,430) 1 411 (28,018) 1,207 4 (35) 1,176 Total amount recognised in income statement (26,250) (201) (3,963) (30,414) 1,385 19 (121) 1,283 Effect of movements in exchange rates (3,070) (78) (681) (3,829) 3 5 5 13 Total amount recognised in comprehensive income (29,320) (279) (4,644) (34,243) 1,388 24 (116) 1,296 Cash flows Premiums received net of ceding commissions paid 27,916 — — 27,916 (1,013) — — (1,013) Insurance acquisition cash flows (3,690) — — (3,690) — — — — Claims and other insurance service expenses net of recoveries from reinsurance received* (12,241) — — (12,241) 567 — — 567 Total cash flows 11,985 — — 11,985 (446) — — (446) Other changes note (83) — — (83) 14 — — 14 Closing assets (3,562) 502 1,921 (1,139) (652) 21 (1,369) (2,000) Closing liabilities 124,297 1,662 19,383 145,342 1,193 (47) 54 1,200 Net closing balance at 31 Dec 120,735 2,164 21,304 144,203 541 (26) (1,315) (800) * Note Other changes include movements in insurance contract liabilities arising from adjustments to remove the incurred non-cash expenses (such as depreciation, amortisation) from insurance contract asset/liability balance. |
Schedule of CSM transition approach | Insurance contracts (including JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan 2,033 4,102 15,169 21,304 2,467 5,355 18,126 25,948 Changes that relate to future service Changes in estimates that adjust the CSM 117 496 188 801 (92) (707) (3,189) (3,988) New contracts in the year — — 2,429 2,429 — — 2,027 2,027 117 496 2,617 3,230 (92) (707) (1,162) (1,961) Changes that relate to current service Release of CSM to profit or loss (247) (458) (1,709) (2,414) (250) (511) (1,652) (2,413) (130) 38 908 816 (342) (1,218) (2,814) (4,374) Net finance income (expenses) from insurance contracts 66 9 220 295 83 54 274 411 Effect of movements in exchange rates (47) (6) (10) (63) (175) (89) (417) (681) Balance at 31 Dec 1,922 4,143 16,287 22,352 2,033 4,102 15,169 21,304 * Other contracts represent groups of insurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. The majority of the CSM on transition on insurance contracts under MRA arises from CPL while the majority of the CSM on transition under FVA arises from the Hong Kong and Singapore businesses. The transition approach adopted by the Group’s main business segments for the different cohorts of their insurance contracts is summarised in the table below. The overlap between approaches reflects the fact that the approaches used vary by insurance contract portfolio and year of issue (cohort). FRA MRA FVA Cohort Cohort Cohort CPL n/a 2016 – 2021 Pre 2016 Hong Kong 2010 – 2021 n/a Pre 2010 Singapore 2009 – 2021 n/a Pre 2009 Pre 1999 (Unit-linked) 2010 – 2021 Pre-2009 (Unit-linked) (Non- 2010-2021 participating) (Non 2000 – 2009 Pre-2021 Malaysia Participating) (Unit-linked) (Other) Indonesia note(i) 2010 – 2021 2007 – 2009 Pre 2007 Growth markets and other note(ii) See note See note See note Notes (i) The cohorts shown are in respect of Indonesia’s unit-linked portfolios. (ii) CSM on transition for Growth markets primarily arises from Vietnam, Taiwan and the Philippines. Vietnam has applied the FRA for cohorts from 2013 – 2021, MRA for cohorts from 2008 – 2012 and FVA for cohorts prior to 2013. Taiwan and the Philippines have applied the FRA for cohorts from 2010 – 2021 and FVA for all cohorts prior to 2010. Reinsurance contracts (including JVs and associates) 2023 $m 2022 $m Contracts Contracts Other Contracts Contracts Other under MRA under FVA contracts* Total CSM under MRA under FVA contracts* Total CSM Balance at 1 Jan — (55) (1,260) (1,315) — (46) (1,153) (1,199) Changes that relate to future service Changes in estimates that adjust the CSM — (17) (88) (105) — (22) (272) (294) New contracts in the year — — (81) (81) — — 37 37 — (17) (169) (186) — (22) (235) (257) Changes that relate to current service Release of CSM to profit or loss — 10 196 206 — 10 161 171 — (7) 27 20 — (12) (74) (86) Net finance income (expenses) from reinsurance contracts — (2) (45) (47) — (1) (34) (35) Effect of movements in exchange rates — 1 1 2 — 4 1 5 Balance at 31 Dec — (63) (1,277) (1,340) — (55) (1,260) (1,315) *. Other contracts represent groups of reinsurance contracts measured under the full retrospective approach at the transition date, 1 January 2022 and groups of contracts recognised on or after the transition date. The CSM on transition on reinsurance contracts held primarily arises from the Hong Kong segment, which has predominantly applied the FRA to transition reinsurance cohorts from 2010 – 2021 and the FVA for reinsurance cohorts prior to 2010. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets | |
Reconciliation of goodwill | 2023 $m 2022 $m Carrying value at 1 Jan 890 907 Exchange differences 6 (17) Carrying value at 31 Dec 896 890 |
Reconciliation of other intangible assets | 2023 $m 2022 $m Distribution Other Distribution Other rights intangibles Total rights intangibles Total note (i) note (ii) note (i) note (ii) Balance at 1 Jan Cost 5,176 489 5,665 5,037 425 5,462 Accumulated amortisation (1,546) (235) (1,781) (1,255) (192) (1,447) 3,630 254 3,884 3,782 233 4,015 Additions 415 83 498 206 83 289 Amortisation charge (330) (49) (379) (301) (48) (349) Disposals and transfers — (6) (6) — (6) (6) Exchange differences and other movements (6) (5) (11) (57) (8) (65) Balance at 31 Dec 3,709 277 3,986 3,630 254 3,884 Comprising: Cost 5,585 537 6,122 5,176 489 5,665 Accumulated amortisation (1,876) (260) (2,136) (1,546) (235) (1,781) 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) Included within other intangibles are software and licence fees. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Core structural borrowings of shareholder-financed businesses | |
Borrowings | |
Schedule of borrowings | 31 Dec 2023 $m 31 Dec 2022 $m Subordinated debt: US $750 m 4.875% Notes 750 750 €20 m Medium Term Notes 2023 note (ii) — 21 £435 m 6.125% Notes 2031 551 520 US $1,000 m 2.95% Notes 2033 996 995 Senior debt: note (i) £300 m 6.875% Notes 2023 note (ii) — 361 £250 m 5.875% Notes 2029 301 281 US $1,000 m 3.125% Notes 2030 988 987 US $350 m 3.625% Notes 2032 347 346 Total core structural borrowings of shareholder-financed businesses 3,933 4,261 Notes (i) The senior debt ranks above subordinated debt in the event of liquidation. (ii) T he £300 million Notes were redeemed on 20 January 2023. The €20 million Medium Term Notes were redeemed on 10 July 2023. |
Operational borrowings | |
Borrowings | |
Schedule of borrowings | 31 Dec 2023 $m 31 Dec 2022 $m Borrowings in respect of short-term fixed income securities programmes (commercial paper) 699 501 Lease liabilities under IFRS 16 234 299 Other borrowings 8 15 Total operational borrowings 941 815 |
Risk and sensitivity analysis (
Risk and sensitivity analysis (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risk and sensitivity analysis | |
Schedule of sensitivity analysis to foreign exchange risk | 31 Dec 2023 $m 31 Dec 2022 $m Change in local currency to $exchange rates Decrease of 10% Increase of 10% Decrease of 10% Increase of 10% Profit after tax for the year 152 (124) 49 (40) Shareholders’ equity 1,256 (1,028) 1,182 (967) |
Schedule of sensitivity analysis to market risk | Base values 2023 $m 2022 $m Profit (loss) after tax for the year from insurance segments 2,099 (494) Group shareholders’ equity as at 31 Dec 17,823 16,731 CSM as at 31 Dec including JVs and associates 21,012 19,989 Insurance segments 31 Dec 2023 $m 31 Dec 2022 $m Interest rates and consequential effects Decrease of 0.5 % Increase of 1 % Decrease of 0.5 % Increase of 1 % Increase/(decrease) to shareholders’ equity and profit after tax: Financial assets 6,815 (12,004) 5,873 (10,362) Net insurance contract liabilities (including CSM) (7,332) 12,191 (6,120) 10,295 Net effect on shareholders' equity and profit after tax note (328) 24 (127) (165) Increase/(decrease) to CSM liability: CSM 358 (880) 220 (850) Insurance segments 31 Dec 2023 $m 31 Dec 2022 $m Equity/property market values Decrease of 20 % Increase of 10 % Decrease of 20 % Increase of 10 % Increase/(decrease) to shareholders’ equity and profit after tax: Financial assets (13,359) 6,681 (11,884) 5,939 Net insurance contract liabilities (including CSM) 12,288 (6,254) 10,927 (5,571) Net effect on shareholders' equity and profit after tax note (822) 327 (735) 283 Increase/(decrease) to CSM liability: CSM (1,392) 618 (1,303) 550 |
Schedule of sensitivity analysis to insurance risk | 2023 $m Net effect on shareholders’ equity and profit after tax Net effect on CSM Gross of Net of Gross of Net of Sensitivity to insurance risk: reinsurance reinsurance reinsurance reinsurance Maintenance expenses – 10% increase (77) (71) (420) (427) Lapse rates – 10% increase (88) (76) (1,363) (1,496) Mortality and morbidity – 5% increase (131) (96) (638) (261) 2022 $m Net effect on shareholders’ equity and profit after tax Net effect on CSM Gross of Net of Gross of Net of Sensitivity to insurance risk: reinsurance reinsurance reinsurance reinsurance Maintenance expenses – 10% increase (58) (57) (365) (365) Lapse rates – 10% increase (78) (70) (1,179) (1,274) Mortality and morbidity – 5% increase (88) (79) (548) (217) |
Tax assets and liabilities (Tab
Tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tax assets and liabilities | |
Schedule of deferred tax assets and liabilities | 2023 $m Other movements Net deferred including Net deferred tax (assets) Movement in foreign tax (assets) liabilities at income exchange liabilities at 1 Jan statement movements 31 Dec Unrealised losses or gains on investments (129) 268 (10) 129 Balances relating to insurance and reinsurance contracts 1,255 (87) 2 1,170 Short-term temporary differences (96) 2 — (94) Unused tax losses (31) (79) (1) (111) Net deferred tax liabilities note 999 104 (9) 1,094 2022 $m Effect of initial Other application of Restated net movements Net deferred IFRS 17 and deferred tax including Net deferred tax (assets) classification (assets) Movement in foreign tax (assets) liabilities overlay of liabilities income exchange liabilities at 1 Jan IFRS 9 at 1 Jan statement movements at 31 Dec Unrealised losses or gains on investments 239 — 239 (361) (7) (129) Balances relating to insurance and reinsurance contracts 2,091 (1,092) 999 297 (41) 1,255 Short-term temporary differences 333 (469) (136) 29 11 (96) Unused tax losses (67) — (67) 32 4 (31) Net deferred tax liabilities note 2,596 (1,561) 1,035 (3) (33) 999 |
Share capital, share premium _2
Share capital, share premium and own shares (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share capital, share premium and own shares | |
Schedule of reconciliation of issued shares | 2023 2022 Number of ordinary Share Share Number of ordinary Share Share Issued shares of 5 p each fully paid shares capital premium shares capital premium $m $m $m $m Balance at 1 Jan 2,749,669,380 182 5,006 2,746,412,265 182 5,010 Shares issued under share-based schemes 3,851,376 1 3 3,257,115 — 2 Shares issued under Hong Kong public offer and international placing in 2022 — — — — (6) Balance at 31 Dec 2,753,520,756 183 5,009 2,749,669,380 182 5,006 |
Summary of options outstanding under save as you earn schemes to subscribe for shares | Number of Share price range shares to from to Exercisable subscribe for (in pence) (in pence) by year 31 Dec 2023 1,671,215 737 p 1,455 p 2029 31 Dec 2022 1,858,292 737 p 1,455 p 2028 |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset management business | |
Group objectives, policies and processes for managing capital | |
Reconciliation of regulatory and other surplus | 2023 $m 2022 $m Balance at 1 Jan 466 522 Gains during the year 254 187 Movement in capital requirement (20) 15 Capital injection 3 3 Distributions made to the parent company (205) (214) Exchange and other movements (1) (47) Balance at 31 Dec 497 466 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment. | |
Reconciliation of the carrying amount of property, plant and equipment | 31 Dec 2023 $m 31 Dec 2022 $m Property, plant and equipment held at cost note (a) 347 410 Owner occupied properties held at fair value note (b) 27 27 Total property, plant and equipment 374 437 2023 $m 2022 $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 21 486 676 1,183 22 489 678 1,189 Accumulated depreciation (8) (360) (405) (773) (8) (349) (363) (720) Opening net book amount 13 126 271 410 14 140 315 469 Additions — 44 57 101 — 34 49 83 Depreciation and impairment charge — (50) (95) (145) — (39) (106) (145) Disposals, transfers and lease modifications 3 (4) (18) (19) — (2) 26 24 Effect of movements in exchange rates — (1) 1 — (1) (7) (13) (21) Balance at 31 Dec 16 115 216 347 13 126 271 410 Representing: Cost 24 495 683 1,202 21 486 676 1,183 Accumulated depreciation (8) (380) (467) (855) (8) (360) (405) (773) Closing net book amount 16 115 216 347 13 126 271 410 |
Schedule of capital expenditure | 2023 $m 2022 $m Hong Kong 22 11 Indonesia — 1 Malaysia 1 1 Singapore 2 3 Growth markets and other 15 16 Eastspring 4 2 Total segment 44 34 Unallocated to a segment (central operations) — — Total capital expenditure on property, plant and equipment 44 34 |
Investments in subsidiary und_2
Investments in subsidiary undertakings, joint ventures and associates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in subsidiary undertakings, joint ventures and associates | |
Schedule of investments in unconsolidated structured entities | 31 Dec 2023 $m 31 Dec 2022 $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 33,657 — 30,771 — Debt securities — 285 — 389 Total investments in unconsolidated structured entities 33,657 285 30,771 389 |
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 | IFRS 17 basis IFRS 4 basis 2023 $m 2022 $m 2021 $m CPL (577) (345) 278 Hong Kong 9 Malaysia 18 16 28 Growth markets and other note 310 100 (110) Insurance operations (249) (229) 205 Eastspring 158 144 147 Total segment and Group total (91) (85) 352 Note For growth markets and other, as well as the segment results for associates and joint ventures within the segment, the amount shown under IFRS 17 basis includes a credit of $191 million (2022: $72 million credit) of taxes for all life joint ventures and associates. In 2021, under IFRS 4 basis, growth markets and other included other items of $(38) million charge which primarily comprised of taxes for all life joint ventures and associates together with other non-recurring items. |
Schedule of financial information relating to joint venture | IFRS 17 basis Statement of financial position: 31 Dec 2023 $m 31 Dec 2022 $m Total assets 33,271 29,914 Total liabilities (including non-controlling interest) 32,005 27,734 Shareholders’ equity 1,266 2,180 The above amounts of assets and liabilities include the following*: Cash and cash equivalents 868 561 Financial liabilities (excluding trade and other payables and provisions) 1,198 985 * The Group's 50 per cent share of CPL's insurance and reinsurance contract balances are shown in note C3.3 (c). IFRS 17 basis IFRS 4 basis Income statement: 2023 $m 2022 $m 2021 $m Revenue 1,676 1,023 7,347 (Loss) profit for the year after tax (733) (550) 453 The above (loss) profit for the year includes the following: Depreciation and amortisation (39) (43) (86) Interest income 543 569 465 Interest expense (2) (3) (2) Income tax credit 422 140 (84) 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: IFRS 17 basis 31 Dec 2023 $m 31 Dec 2022 $m Net assets of CITIC-Prudential Life as shown above 1,266 2,180 Proportion owned by the joint venture partner (50%) 633 1,090 Carrying amount of the Group’s interest in the joint venture (50%) 633 1,090 |
Schedule of direct subsidiary undertakings of the parent company | 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 | Classes of shares Proportion Name of entity held held Registered office address Aberdeen Cash Creation Fund U 26.87% 28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Aberdeen Standard Global Opportunities Fund U 35.13% 21 Church Street, #01-01, Capital Square Two, Singapore 049480 Aberdeen Standard Singapore Equity Fund U 61.88% AC Financial Partners Limited Partnership PI 100.00% Citypoint, 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 46.52% 27th Floor, Bank of China Tower, 1 Garden Road, Hong Kong BOCHK Balanced Growth Fund U 40.43% BOCHK China Equity Fund U 52.42% BOCHK Conservative Growth Fund U 42.17% BOCHK US Dollar Money Market Fund U 37.11% 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 BSP Debt Fund V Unlevered (Non-US) L.P. U 53.00% C/o Benefit Street Partners LLC, New York, New York 10019 Cathay High Yield ex China Cash pay 1-5 Year 2% Issuer Capped ETF U 46.49% 6th Floor, No.39, Sec.2, Dunhua South. Rd., 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 Eastspring Al-Wara' Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Eastspring Asia Pacific High Yield Equity Fund U 39.60% 4th Floor, No.1, Songzhi Rd., 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% 22F (Seoul International Finance Center, Yeouido dong), 10 Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 07326, Republic of 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 ESG Bond Fund U 94.82% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments – Asia Opportunities Equity Fund U 100.00% Eastspring Investments - Asia Pacific Equity Fund U 95.55% Eastspring Investments - Asia Real Estate Multi Asset Income Fund U 35.06% Eastspring Investments - Asian Bond Fund U 89.85% Eastspring Investments - Asian Dynamic Fund U 95.21% Eastspring Investments - Asian Equity Fund U 98.94% Eastspring Investments - Asian Equity Income Fund U 88.46% Eastspring Investments - Asian High Yield Bond Fund U 67.15% Eastspring Investments - Asian Investment Grade Bond Fund U 88.64% EastSpring Investments - Asian Local Bond Fund U 83.45% Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments - Asian Low Volatility Equity Fund U 91.60% Eastspring Investments - Asian Multi Factor Equity Fund U 95.20% Eastspring Investments - China A Shares Growth Fund U 79.87% Eastspring Investments - Dragon Peacock Fund U 97.09% Eastspring Investments - European Investment Grade Bond Fund U 99.88% Eastspring Investments - Global Emerging Markets Bond Fund U 98.06% Eastspring Investments - Global Emerging Markets Dynamic Fund U 38.21% Eastspring Investments - Global Emerging Markets ex-China Dynamic Fund U 100.00% Eastspring Investments - Global Emerging Markets Fundamental Value Fund U 100.00% Eastspring Investments - Global Equity Navigator Fund U 97.86% Eastspring Investments - Global Growth Equity Fund U 42.30% Eastspring Investments - Global Low Volatility Equity Fund U 98.48% Eastspring Investments - Global Market Navigator Fund U 99.60% Eastspring Investments - Global Multi Asset Income Plus Growth Fund U 100.00% Eastspring Investments - Global Technology Fund U 84.16% Eastspring Investments - Greater China Equity Fund U 89.88% Eastspring Investments - India Equity Fund U 58.85% Eastspring Investments - Japan Sustainable Value Fund U 86.85% Eastspring Investments - Pan European Fund U 66.59% Eastspring Investments - US Corporate Bond Fund U 68.69% Eastspring Investments - US High Investment Grade Bond Fund U 85.91% Eastspring Investments - US High Yield Bond Fund U 54.03% Eastspring Investments - US Investment Grade Bond Fund U 58.61% Eastspring Investments - World Value Equity Fund U 93.68% 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 ex-Japan Target Return Fund U 78.56% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Berhad OS 100.00% Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia Classes of shares Proportion Name of entity held held Registered office address Eastspring Investments Equity Income Fund U 43.13% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia 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 Oncology Securities Baby Investment Trust (H) U 72.72% 22nd Floor One IFC, 10 Gukjegeumyung-ro, Youngdungpo-gu, Seoul 07326, Korea Eastspring Investments Global Oncology Securities Baby Investment Trust (UH) U 92.43% Eastspring Investments Global Oncology Securities Baby Investment Trust (USD) U 96.00% Eastspring Investments Group Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments Growth Fund U 40.96% Eastspring Investments Berhad, Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia Eastspring Investments Incorporated OS 100.00% 874 Walker Road, Suite C, City of Dover, County of Kent, State of Delaware, 19904, United States 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 Open Limited OS 100.00% 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 Eastspring Investments MY Focus Fund U 31.20% 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 66.94% Units 306-308, 3rd Floor, Azia Center, 1233 Lujiazui Ring Road, Shanghai, China, 200120 Eastspring Investments Services Pte. Ltd. OS 100.00% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre, Singapore 018983 Eastspring Investments SICAV-FIS - Alternative Investment Fund U 100.00% 26, Boulevard Royal, L-2449, Luxembourg Eastspring Investments Unit Trusts - Dragon Peacock Fund ID U 97.79% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Eastspring Investments Unit Trusts - Singapore ASEAN Equity Fund U 98.85% Eastspring Investments Unit Trusts - Singapore Select Bond Fund U 64.89% Eastspring Investments Vietnam Navigator Fund U 77.52% 23rd Floor, Saigon Trade Center Building, 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 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 100.00% 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 Equity Islamic Asia Pacific USD Kelas B U 86.25% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Eastspring Syariah Fixed Income USD Kelas A U 63.13% First Sentier Global Property Securities Fund U 74.35% 38 Beach Road, #06-11 South Beach Tower, Singapore 189767 FSITC GLOBAL TRENDS FUND U 24.31% 1st Floor, No.6, Sec. 3 ,Minquan West Rd, Taipei FSSA China Focus Fund U 65.21% 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296 Ireland Classes of shares Proportion Name of entity held held Registered office address Fubon 1-5 Years US High Yield Bond Ex China U 42.48% 8th Floor, No.108, Sec.1, Dunhua South. Rd., Taipei, Taiwan Fubon Global Investment Grade Bond Fund U 57.59% Fuh Hwa 1-5 Yr High Yield ETF U 44.38% 8th & 9th Floor, No.308, Sec. 2, Bade Rd., Da-an District 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 25.22% 78 Sir John Rogerson's Quay, Dublin, D02 HD32, Ireland GS Twenty Two Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom 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 22.05% ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India ICICI Prudential Pension Funds Management Company Limited OS 22.05% 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 98.42% 8th Floor, No 122, Tung Hua N. Rd. Taipei, Taiwan Invesco Select 6 Year Maturity Global Bond Fund U 98.69% iShares Global High Yield Corp Bond UCITS ETF U 55.25% 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, Ireland iShares MSCI Asia ex Japan Climate Action ETF U 73.52% 20 Anson Road, #18-01 Twenty Anson, Singapore 079912 JPMorgan Investment Funds - Japan Sustainable Equity Fund U 62.01% 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg KKP ACTIVE EQUITY FUND U 31.54% 209 KKP Tower A, 17 Fl., Sukhumvit 21 (Asoke), Khlong Toey Nua, Wattana, Bangkok 10110 Thailand Krungsri Greater China Equity Hedged Dividend Fund U 28.12% 12th, 18th Zone B Floor, Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok 10330 Thailand Lasalle Property Securities SICAV-FIS U 100.00% 11-13 Bouldevard de la Foire, L-1528 Luxembourg M&G Asia Property TS Trust U 100.00% 138 Market Street, CapitaGreen #35-01, Singapore 048946 M&G Real Estate Asia Holding Company Pte. Ltd. OS 33.00% Manulife Asia Pacific Bond Fund U 82.22% 9th Floor, No 89 Son Ren Road, Taipei, Taiwan Manulife AUD Income Bond Fund-A(CNY-H) U 30.73% Manulife China Offshore Bond Fund U 32.48% Manulife Taiwan Dynamic Fund U 26.11% Nomura Six Years Fixed Maturity Asia Pacific Emerging Market Bond Fund U 98.98% 101 Tower, 30th Floor, No. 7 Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, Taiwan Nomura Six Years Fixed Maturity Emerging Market Bond Fund U 40.50% Nomura Six Years Ladder Maturity Asia Pacific Emerging Market Bond Fund U 98.40% 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 27.97% 10th Floor, No. 144, Sec. 2, Minquan East Rd, Taipei PLUK Agents Savings Fund U 100.00% 8th Floor, 8 Rockwell, Rockwell Drive, Rockwell Center, Makati City Principal Global Silver Age Fund U 31.05% 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% VTrust Tower, Unit A B &C, 3rd Floor, Tchecoslova Blvd (Street 169), Sangkat Veal Vong, Khan 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 26, 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, United Kingdom Prudential Financial Partners HK Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Funding (Asia) PLC OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential General Insurance Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential Group Secretarial Services HK Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Group Secretarial Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Prudential Holdings Limited OS 100.00% 4th Floor, Saltire Court, 20, Castle Terrace, Edinburgh, EH1 2EN, United Kingdom Prudential Hong Kong Limited OS 100.00% 59th Floor, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Prudential International Treasury Limited OS 100.00% 13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong Prudential Investment Management Private Limited OS 100.00% 7 Straits View #07-01, Marina One East Tower, Singapore 018936, Singapore Prudential IP Services Limited OS 100.00% 1 Angel Court, London, EC2R 7AG, United Kingdom Classes of shares Proportion Name of entity held held Registered office address 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 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 Pensions Management Zambia Limited Support Office, Plot F/377/9/H/3, Kabulonga Road, Kabulonga, Lusaka 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 PS 100.00% 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712 OS 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 PH Equity Index Tracker Fund U 99.61% 8th Floor, 8 Rockwell, Rockwell Drive, Rockwell Center, Makati City PruInvest PHP Balanced Allocation Fund U 72.30% PruInvest PHP Dynamic Equity Fund U 52.45% PruInvest PHP Intermediate Term Bond Fund U 82.73% PRUInvest PHP Liquid Fund U 100.00% PruInvest USD Global Market Balanced Fund of Funds U 20.43% PruInvest USD High Yield Asian Bond Feeder Fund U 65.19% PruInvest USD Intermediate Term Bond Fund U 93.17% PruInvest USD Liquid Fund U 56.46% 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 Classes of shares Proportion Name of entity held held Registered office address 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 97.72% Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah U 70.16% Reksa Dana Syariah Eastspring Syariah Money Market Khazanah U 98.57% 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 99.93% 10 Marina Boulevard, #32-01, Marina Bay Financial Centre Tower 2, Singapore 018983 Rhodium Passive Long Dated Bond Fund U 99.92% Robeco QI European Active Index Equities U 92.86% 6, route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg Schroder Asian Investment Grade Credit U 31.68% 138 Market Street, #23-01 CapitaGreen, Singapore 048946 Schroder Emerging Markets Fund U 77.62% Schroder Multi-Asset Revolution U 51.13% Schroder US Dollar Money Fund U 27.98% 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 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 32.88% 8A, rue Albert Borschette, L-1246 Luxembourg Threadneedle (Lux) – Global Emerging Market Equities U 65.59% 44 Rue de la vallée, 2661 Luxembourg United Global Innovation Fund U 24.24% 23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand United Global Quality Equity Fund – MYR hedged Class U 27.57% Jln Raja Laut, City Centre, 50100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur UOB Smart Global Healthcare Fund U 45.27% 23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand UOB Smart Japan Small and Mid Cap Fund U 35.67% UOB Smart Millennium Growth Fund U 38.84% USD Investment Grade Infrastructure Debt Fund SCSp U 21.90% 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 31 December 2016 and of 49 per cent for new business sold subsequent to this date. ‡ The holding of 94.62 per cent for PT. Prudential Life Assurance represents the proportion held in the Indonesia subsidiary attaching to the aggregate of the shares across the types of capital in issue. |
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 |
Discontinued US operations (Tab
Discontinued US operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued US operations | |
Discontinued US operations | |
Summary of results and cash flows for the discontinued US operations | (a) Income statement 2021 $m Total revenue, net of reinsurance 45,972 Total charge, net of reinsurance (43,655) Profit before tax 2,317 Tax (charge) (363) Profit after tax 1,954 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) Attributable to: Equity holders of the Company (4,234) Non-controlling interests (793) Loss for the year (5,027) 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 Loss for the year (5,027) Other comprehensive loss: Valuation movements on available-for-sale debt securities, net of related tax and change in DAC (763) 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 for the year (2,041) Total comprehensive loss for the year (7,068) Attributable to: Equity holders of the Company (6,283) Non-controlling interests (785) Total comprehensive loss for the year (7,068) (c) Cash flows 2021 $m Net cash flows from operating activities (423) Net cash flows from financing activities note 2,329 Cash divested upon demerger (3,527) Net decrease in cash and cash equivalents (1,621) Cash and cash equivalents at 1 Jan 1,621 Cash and cash equivalents at 31 Dec — 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. |
Basis of preparation and acco_4
Basis of preparation and accounting policies (Details) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2023 $ / ¥ | Dec. 31, 2023 $ / $ $ / ¥ | Dec. 31, 2023 $ / ¥ $ / ₨ | Dec. 31, 2023 $ / Rp $ / ¥ | Dec. 31, 2023 $ / RM $ / ¥ | Dec. 31, 2023 $ / $ $ / ¥ | Dec. 31, 2023 $ / $ $ / ¥ | Dec. 31, 2023 $ / ฿ $ / ¥ | Dec. 31, 2023 $ / £ $ / ¥ | Dec. 31, 2023 $ / ¥ $ / ₫ | 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, 2023 $ / $ | Dec. 31, 2023 $ / ₨ | Dec. 31, 2023 $ / Rp | Dec. 31, 2023 $ / RM | Dec. 31, 2023 $ / $ | Dec. 31, 2023 $ / $ | Dec. 31, 2023 $ / ฿ | Dec. 31, 2023 $ / £ | Dec. 31, 2023 $ / ₫ | 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 $ / ₫ | |
Basis of preparation and accounting policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closing rate | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 7.09 | 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 | 7.81 | 83.21 | 15,397 | 4.60 | 1.32 | 30.69 | 34.37 | 0.78 | 24,262 | 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 |
Average rate | 7.09 | 7.83 | 82.60 | 15,230.82 | 4.56 | 1.34 | 31.17 | 34.80 | 0.80 | 23,835.92 | 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 |
Basis of preparation and acco_5
Basis of preparation and accounting policies - New accounting pronouncements (Details) $ in Millions | Dec. 31, 2023 item | Jan. 01, 2022 USD ($) |
New accounting pronouncements | ||
Number of broad categories of risks | item | 3 | |
IFRS 17 | ||
New accounting pronouncements | ||
Percentage of CSM calculated under VFA | 72% | |
Percentage of CSM calculated under GMM | 28% | |
IFRS 17 | Maximum | ||
New accounting pronouncements | ||
Net asset impact of classification overlay | $ | $ 5 |
Basis of preparation and acco_6
Basis of preparation and accounting policies - Statement of financial position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Assets | ||||||||
Goodwill | $ 896 | $ 890 | [1] | $ 907 | [1] | |||
Deferred acquisition costs and other intangible assets: | ||||||||
Other intangible assets | 3,986 | 3,884 | [1] | 4,015 | [1] | |||
Deferred acquisition costs and other intangible assets | 4,015 | |||||||
Insurance contract assets | 1,180 | 1,134 | [1] | 1,250 | [1] | |||
Reinsurance contracts assets | 2,426 | 1,856 | [1] | 2,787 | [1] | |||
Deferred tax assets | 156 | 140 | [1] | 132 | [1] | |||
Other non-investment and non-cash assets | 2,487 | |||||||
Investment properties | 39 | 37 | [1] | 38 | [1] | |||
Investments in joint ventures and associates accounted for using the equity method | 1,940 | 2,259 | [1] | 2,698 | [1] | |||
Total financial investments: | ||||||||
Other loans | 771 | |||||||
Equity securities and holdings in collective investment schemes | [2] | 64,753 | 57,679 | [1] | 61,601 | [1] | ||
Debt securities | [2] | 83,064 | 77,016 | [1] | 99,154 | [1] | ||
Derivative assets | 1,855 | 569 | [1] | 481 | [1] | |||
Deposits | 5,870 | 6,275 | [1] | 4,741 | [1] | |||
Total financial investments | 156,120 | 142,129 | 166,748 | |||||
Cash and cash equivalents | 4,751 | 5,514 | [1],[3] | 7,170 | [1],[3] | $ 8,018 | ||
Total assets | 174,066 | 160,249 | [1] | 188,232 | [1] | |||
Equity | ||||||||
Shareholders' equity | 17,823 | 16,731 | [1] | 18,936 | [1] | |||
Non-controlling interests | 160 | 167 | [1] | 175 | [1] | |||
Total equity | 17,983 | 16,898 | [1],[4] | 19,111 | [1],[4] | $ 22,119 | [5] | |
Insurance contract liabilities | 139,840 | 126,242 | [1] | 149,798 | [1] | |||
Reinsurance contract liabilities | 1,151 | 1,175 | [1] | 1,254 | [1] | |||
Investment contract liabilities without discretionary participation features | 769 | 663 | [1] | 722 | [1] | |||
Core structural borrowings of shareholder-financed businesses | 3,933 | 4,261 | [1] | 6,127 | [1] | |||
Operational borrowings | 941 | 815 | [1] | 861 | [1] | |||
Deferred tax liabilities | 1,250 | 1,139 | [1] | 1,167 | [1] | |||
Other items | 9,192 | |||||||
Total liabilities | 156,083 | 143,351 | [1] | 169,121 | [1] | |||
Total equity and liabilities | $ 174,066 | $ 160,249 | [1] | 188,232 | [1] | |||
As reported under IFRS 4 | ||||||||
Assets | ||||||||
Goodwill | 907 | |||||||
Deferred acquisition costs and other intangible assets: | ||||||||
Deferred acquisition costs for insurance contracts | 2,815 | |||||||
Other intangible assets | 4,043 | |||||||
Deferred acquisition costs and other intangible assets | 6,858 | |||||||
Reinsurance contracts assets | 9,753 | |||||||
Deferred tax assets | 266 | |||||||
Other non-investment and non-cash assets | 3,448 | |||||||
Investment properties | 38 | |||||||
Investments in joint ventures and associates accounted for using the equity method | 2,183 | |||||||
Total financial investments: | ||||||||
Policy loans | 1,733 | |||||||
Other loans | 829 | |||||||
Equity securities and holdings in collective investment schemes | 61,601 | |||||||
Debt securities | 99,094 | |||||||
Derivative assets | 481 | |||||||
Deposits | 4,741 | |||||||
Total financial investments | 168,479 | |||||||
Cash and cash equivalents | 7,170 | |||||||
Total assets | 199,102 | |||||||
Equity | ||||||||
Shareholders' equity | 17,088 | |||||||
Non-controlling interests | 176 | |||||||
Total equity | [4],[5] | 17,264 | ||||||
Insurance contract liabilities | 156,485 | |||||||
Investment contract liabilities without discretionary participation features | 814 | |||||||
Core structural borrowings of shareholder-financed businesses | 6,127 | |||||||
Operational borrowings | 861 | |||||||
Deferred tax liabilities | 2,862 | |||||||
Other items | 14,689 | |||||||
Total liabilities | 181,838 | |||||||
Total equity and liabilities | 199,102 | |||||||
Effect of initial application of IFRS 17 and classification overlay of IFRS 9, net of tax | ||||||||
Equity | ||||||||
Total equity | [4] | 1,847 | ||||||
IFRS 17 | Effects of adoption of IFRS 17, Presentation changes | ||||||||
Deferred acquisition costs and other intangible assets: | ||||||||
Deferred acquisition costs for insurance contracts | (39) | |||||||
Deferred acquisition costs and other intangible assets | (39) | |||||||
Reinsurance contracts assets | (22) | |||||||
Deferred tax assets | (134) | |||||||
Other non-investment and non-cash assets | (1,022) | |||||||
Total financial investments: | ||||||||
Policy loans | (1,733) | |||||||
Total financial investments | (1,733) | |||||||
Total assets | (2,950) | |||||||
Equity | ||||||||
Insurance contract liabilities | 4,243 | |||||||
Deferred tax liabilities | (1,696) | |||||||
Other items | (5,497) | |||||||
Total liabilities | (2,950) | |||||||
Total equity and liabilities | (2,950) | |||||||
IFRS 17 | Effects of adoption of IFRS 17, Measurement changes | ||||||||
Deferred acquisition costs and other intangible assets: | ||||||||
Deferred acquisition costs for insurance contracts | (2,776) | |||||||
Other intangible assets | (28) | |||||||
Deferred acquisition costs and other intangible assets | (2,804) | |||||||
Insurance contract assets | 1,250 | |||||||
Reinsurance contracts assets | (6,944) | |||||||
Other non-investment and non-cash assets | 61 | |||||||
Investments in joint ventures and associates accounted for using the equity method | 515 | |||||||
Total financial investments: | ||||||||
Other loans | (58) | |||||||
Debt securities | 60 | |||||||
Total financial investments | 2 | |||||||
Total assets | (7,920) | |||||||
Equity | ||||||||
Shareholders' equity | 1,848 | |||||||
Non-controlling interests | (1) | |||||||
Total equity | 1,847 | |||||||
Insurance contract liabilities | (10,930) | |||||||
Reinsurance contract liabilities | 1,254 | |||||||
Investment contract liabilities without discretionary participation features | (92) | |||||||
Deferred tax liabilities | 1 | |||||||
Total liabilities | (9,767) | |||||||
Total equity and liabilities | $ (7,920) | |||||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2023 are $ 2,001 million of lent securities and assets subject to repurchase agreements (31 December 2022: $ 1,571 million) The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Basis of preparation and acco_7
Basis of preparation and accounting policies - Financial assets and liabilities by IFRS 9 category (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | ||
Financial assets and liabilities by IFRS 9 category | ||||||
Loans | $ 578 | $ 590 | [1] | $ 771 | ||
Debt securities | [2] | 83,064 | 77,016 | [1] | $ 99,154 | |
Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Loans | 148 | |||||
Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Loans | 430 | |||||
Debt securities | $ 83,064 | |||||
Investment contract liabilities without DPF | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 663 | |||||
Investment contract liabilities without DPF | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, New under IFRS 9 | 663 | |||||
Derivative liabilities | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 1,001 | |||||
Derivative liabilities | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, New under IFRS 9 | 1,001 | |||||
Core structural borrowings of shareholder-financed businesses | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 4,261 | |||||
Carrying value liabilities, New under IFRS 9 | 4,261 | |||||
Operational borrowings | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 815 | |||||
Carrying value liabilities, New under IFRS 9 | 815 | |||||
Obligations under funding, securities lending and sale and repurchase agreements | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 582 | |||||
Carrying value liabilities, New under IFRS 9 | 582 | |||||
Net asset value attributable to unit holders of consolidated investment funds | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 4,193 | |||||
Net asset value attributable to unit holders of consolidated investment funds | Designated at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, New under IFRS 9 | 4,193 | |||||
Other liabilities | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value liabilities, Original under IAS 39 | 2,866 | |||||
Carrying value liabilities, New under IFRS 9 | 2,866 | |||||
Loans | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 140 | |||||
Carrying value assets, New under IFRS 9 | 140 | |||||
Loans/debt securities | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 26 | |||||
Loans/debt securities | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 27 | |||||
Loans | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 450 | |||||
Loans | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 450 | |||||
Equity securities and portfolio holdings in collective investment schemes | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 57,413 | |||||
Equity securities and portfolio holdings in collective investment schemes | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 57,413 | |||||
Equity securities | Available-for-sale | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 266 | |||||
Equity securities | FVOCI | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 266 | |||||
Debt securities held by Eastspring | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 67 | |||||
Debt securities held by Eastspring | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 67 | |||||
Other debt securities | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 76,922 | |||||
Other debt securities | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 76,922 | |||||
Derivative assets | FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 569 | |||||
Derivative assets | Mandatorily at FVTPL | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 569 | |||||
Accrued investment income | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 983 | |||||
Accrued investment income | Loans and receivables | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 983 | |||||
Deposits | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 6,275 | |||||
Deposits | Loans and receivables | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 6,275 | |||||
Cash and cash equivalents | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 5,514 | |||||
Cash and cash equivalents | Loans and receivables | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | 5,514 | |||||
Other debtors | Amortised cost | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, New under IFRS 9 | 968 | |||||
Other debtors | Loans and receivables | ||||||
Financial assets and liabilities by IFRS 9 category | ||||||
Carrying value assets, Original under IAS 39 | $ 968 | |||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2023 are $ 2,001 million of lent securities and assets subject to repurchase agreements (31 December 2022: $ 1,571 million) |
Basis of preparation and acco_8
Basis of preparation and accounting policies - Yield curves used to discount cash flows of insurance contracts (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Yield curves used to discount cash flows of insurance contracts | |||
Proportion of reference portfolio's illiquidity premium applied to portfolios of insurance contracts, low value | 0% | ||
Proportion of reference portfolio's illiquidity premium applied to portfolios of insurance contracts, middle value | 50% | ||
Proportion of reference portfolio's illiquidity premium applied to portfolios of insurance contracts, high value | 100% | ||
Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Allowance for credit risk | 0.0020 | 0.0023 | |
Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Allowance for credit risk | 0.0056 | 0.0056 | |
Chinese yuan (CNY) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.07% | 2.09% | 2.21% |
Chinese yuan (CNY) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.33% | 2.84% | 2.60% |
Chinese yuan (CNY) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.41% | 2.65% | 2.63% |
Chinese yuan (CNY) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.67% | 3.29% | 2.99% |
Chinese yuan (CNY) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.59% | 2.88% | 2.81% |
Chinese yuan (CNY) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.85% | 3.52% | 3.19% |
Chinese yuan (CNY) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.70% | 3.05% | 3% |
Chinese yuan (CNY) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.96% | 3.69% | 3.65% |
Chinese yuan (CNY) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.76% | 3.14% | 3.12% |
Chinese yuan (CNY) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.02% | 3.79% | 3.71% |
Hong Kong dollar (HKD) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.76% | 4.85% | 0.43% |
Hong Kong dollar (HKD) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 5.23% | 6.14% | 1.44% |
Hong Kong dollar (HKD) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.75% | 3.96% | 1.24% |
Hong Kong dollar (HKD) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.22% | 5.25% | 2.26% |
Hong Kong dollar (HKD) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.76% | 3.78% | 1.47% |
Hong Kong dollar (HKD) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.23% | 5.07% | 2.48% |
Hong Kong dollar (HKD) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.89% | 3.82% | 1.62% |
Hong Kong dollar (HKD) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.36% | 5.11% | 2.64% |
Hong Kong dollar (HKD) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.95% | 3.84% | 1.91% |
Hong Kong dollar (HKD) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.42% | 5.13% | 2.92% |
Indonesian rupiah (IDR) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 6.47% | 5.65% | 3.43% |
Indonesian rupiah (IDR) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 6.96% | 6.13% | 4.81% |
Indonesian rupiah (IDR) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 6.63% | 6.72% | 5.55% |
Indonesian rupiah (IDR) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 7.12% | 7.20% | 6.93% |
Indonesian rupiah (IDR) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 6.73% | 7.29% | 7.04% |
Indonesian rupiah (IDR) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 7.22% | 7.77% | 8.42% |
Indonesian rupiah (IDR) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 6.94% | 7.51% | 7.43% |
Indonesian rupiah (IDR) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 7.43% | 7.99% | 8.81% |
Indonesian rupiah (IDR) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 7.03% | 7.77% | 7.74% |
Indonesian rupiah (IDR) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 7.52% | 8.25% | 9.12% |
Malaysian ringgit (MYR) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.31% | 3.52% | 2.25% |
Malaysian ringgit (MYR) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.56% | 3.91% | 2.58% |
Malaysian ringgit (MYR) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.67% | 3.91% | 3.19% |
Malaysian ringgit (MYR) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.92% | 4.29% | 3.52% |
Malaysian ringgit (MYR) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.78% | 4.13% | 3.72% |
Malaysian ringgit (MYR) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.03% | 4.52% | 4.05% |
Malaysian ringgit (MYR) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.09% | 4.35% | 4.13% |
Malaysian ringgit (MYR) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.34% | 4.73% | 4.46% |
Malaysian ringgit (MYR) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.33% | 4.49% | 4.34% |
Malaysian ringgit (MYR) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.58% | 4.88% | 4.67% |
Singapore dollar (SGD) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.62% | 3.83% | 0.60% |
Singapore dollar (SGD) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.37% | 4.94% | 1.58% |
Singapore dollar (SGD) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.67% | 2.86% | 1.38% |
Singapore dollar (SGD) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.42% | 3.98% | 2.35% |
Singapore dollar (SGD) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.71% | 3.11% | 1.72% |
Singapore dollar (SGD) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.46% | 4.22% | 2.70% |
Singapore dollar (SGD) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.77% | 2.91% | 1.99% |
Singapore dollar (SGD) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.52% | 4.02% | 2.97% |
Singapore dollar (SGD) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 2.74% | 2.49% | 2.14% |
Singapore dollar (SGD) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.49% | 3.61% | 3.12% |
United States dollar (USD) | 1 year | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.81% | 4.75% | 0.38% |
United States dollar (USD) | 1 year | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 5.64% | 5.91% | 1.30% |
United States dollar (USD) | 5 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.86% | 4.02% | 1.27% |
United States dollar (USD) | 5 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.69% | 5.17% | 2.20% |
United States dollar (USD) | 10 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 3.90% | 3.89% | 1.53% |
United States dollar (USD) | 10 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.73% | 5.05% | 2.46% |
United States dollar (USD) | 15 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.01% | 3.98% | 1.69% |
United States dollar (USD) | 15 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.84% | 5.15% | 2.61% |
United States dollar (USD) | 20 years | Minimum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 4.36% | 4.27% | 2.01% |
United States dollar (USD) | 20 years | Maximum | |||
Yield curves used to discount cash flows of insurance contracts | |||
Yield (percentage) | 5.19% | 5.43% | 2.93% |
Basis of preparation and acco_9
Basis of preparation and accounting policies - Various accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Critical accounting policies and estimates | |||||
Net insurance and reinsurance contract balances impacted by fulfilment cash flows | $ (137,400) | ||||
Profit (loss) before tax, attributable to shareholders | 2,097 | $ (643) | [1] | $ 2,676 | |
Profit (loss) before tax | [2] | 2,272 | (519) | [1],[3] | 3,018 |
Adjusted operating profit | 2,893 | $ 2,722 | $ 3,233 | ||
Operating segments | |||||
Critical accounting policies and estimates | |||||
Adjusted operating profit | $ 3,517 | ||||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. 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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Basis of preparation and acc_10
Basis of preparation and accounting policies - VFA eligibility assessment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2022 | |
Statement | ||
Percentage to meet definition of substantial | 50% | |
Including JVs and associates | ||
Statement | ||
CSM as at 31 Dec | $ 21,012 | |
Percentage of CSM calculated under VFA | 72% | |
Including JVs and associates | Contractual service margin (CSM) | ||
Statement | ||
CSM amortisation, net of reinsurance, recognised in the income statement | $ (2,208) |
Basis of preparation and acc_11
Basis of preparation and accounting policies - Distribution rights (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Assets subject to impairment estimates | |||||
Distribution rights | $ 3,986 | $ 3,884 | [1] | $ 4,015 | [1] |
Distribution rights | |||||
Assets subject to impairment estimates | |||||
Distribution rights | $ 3,709 | $ 3,630 | $ 3,782 | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Basis of preparation and acc_12
Basis of preparation and accounting policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | |||
Financial investments | $ 156,120 | $ 142,129 | $ 166,748 |
FVTPL | |||
Financial instruments | |||
Financial investments | 149,900 | ||
Amortised cost | |||
Financial instruments | |||
Financial investments | $ 6,000 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Other income and expenditure: | ||||||
Interest payable on core structural borrowings | $ (172) | $ (200) | [1] | $ (328) | ||
Adjusted operating profit | 2,893 | 2,722 | 3,233 | |||
Short-term fluctuations in investment returns | (774) | (3,420) | (458) | |||
Amortisation of acquisition accounting adjustments under IFRS 4 | (5) | |||||
(Loss) gain attaching to corporate transactions | (22) | 55 | (94) | |||
Profit (loss) before tax attributable to shareholders' returns | 2,097 | (643) | [1] | 2,676 | ||
Tax charge attributable to shareholders' returns | (385) | (354) | [1] | (462) | ||
Profit (loss) for the year | 1,712 | (997) | [2],[3] | 2,214 | [2],[4] | |
Loss from discontinued US operations | [5] | (5,027) | ||||
Profit (loss) for the year | 1,712 | (997) | [1] | (2,813) | ||
Attributable to: | ||||||
Equity holders of the Company: From continuing operations | 1,701 | (1,007) | 2,192 | |||
Equity holders of the Company: Based on loss from discontinued US operations | (4,234) | |||||
Profit (loss) attributable to equity holders of the Company | 1,701 | (1,007) | [1] | (2,042) | ||
Non-controlling interests: From continuing operations | 11 | 10 | 22 | |||
Non-controlling interests: From discontinued US operations | (793) | |||||
Profit (loss) attributable to non-controlling interests | 11 | 10 | [1] | (771) | ||
Profit (loss) for the year | $ 1,712 | $ (997) | [1] | $ (2,813) | ||
Basic earnings per share | ||||||
Based on adjusted operating profit, net of tax and non-controlling interest, from continuing operations | $ 0.890 | $ 0.794 | $ 1.015 | |||
Based on profit continuing operations (in USD per share) | $ 0.621 | $ (0.368) | 0.834 | |||
Based on loss from discontinued US operations (in USD per share) | [5] | $ (1.611) | ||||
Loss attaching to corporate transactions, related to demerger | $ (22) | $ 55 | [1] | $ (35) | ||
Loss arising on reinsurance transaction undertaken by the Hong Kong business | (59) | |||||
Minimum | Debt securities and loans | ||||||
Basic earnings per share | ||||||
Longer-term rates of return (as a percent) | 2.80% | 2.80% | ||||
Minimum | Equity-type securities | ||||||
Basic earnings per share | ||||||
Longer-term rates of return (as a percent) | 8.60% | 8.60% | ||||
Maximum | Debt securities and loans | ||||||
Basic earnings per share | ||||||
Longer-term rates of return (as a percent) | 8.40% | 7.80% | ||||
Maximum | Equity-type securities | ||||||
Basic earnings per share | ||||||
Longer-term rates of return (as a percent) | 15.70% | 15.70% | ||||
Insurance operations | ||||||
Other income and expenditure: | ||||||
Profit (loss) for the year | $ 2,099 | $ (494) | ||||
Attributable to: | ||||||
Profit (loss) for the year | $ 2,099 | (494) | ||||
Hong Kong | ||||||
Basic earnings per share | ||||||
Share of estate within with-profits fund | 10% | |||||
Operating segments | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | $ 3,517 | |||||
Profit (loss) for the year | 2,353 | (260) | 3,085 | |||
Operating segments | CPL | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 368 | 271 | 343 | |||
Profit (loss) for the year | (366) | (275) | ||||
Operating segments | Hong Kong | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 1,013 | 1,162 | 975 | |||
Profit (loss) for the year | 976 | (742) | 1,068 | |||
Operating segments | Indonesia | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 221 | 205 | 446 | |||
Profit (loss) for the year | 156 | 108 | 362 | |||
Operating segments | Malaysia | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 305 | 340 | 350 | |||
Profit (loss) for the year | 257 | 178 | 265 | |||
Operating segments | Singapore | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 584 | 570 | 663 | |||
Profit (loss) for the year | 512 | (7) | 394 | |||
Operating segments | Growth markets and other | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 746 | 728 | 932 | |||
Profit (loss) for the year | 775 | 314 | 434 | |||
Operating segments | Eastspring | ||||||
Other income and expenditure: | ||||||
Adjusted operating profit | 280 | 260 | 314 | |||
Profit (loss) for the year | 254 | 234 | 284 | |||
Material reconciling items | ||||||
Other income and expenditure: | ||||||
Net investment return and other items | (21) | (44) | 21 | |||
Interest payable on core structural borrowings | (172) | (200) | (328) | |||
Corporate expenditure | (230) | (276) | (298) | |||
Total other expenditure | (423) | (520) | (605) | |||
Restructuring and IFRS 17 implementation costs | (201) | (294) | (185) | |||
Material reconciling items | Insurance and asset management operations | ||||||
Other income and expenditure: | ||||||
Restructuring and IFRS 17 implementation costs | $ (81) | $ (137) | $ (101) | |||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. Discontinued operations for 2021 related to the US operations (Jackson) that were demerged from the Group in September 2021. |
Analysis of performance by se_4
Analysis of performance by segment - Adjusted operating profit under IFRS 4 (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Equity-type securities | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 8.60% | 8.60% | |
Equity-type securities | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 15.70% | 15.70% | |
Insurance operations | Non-linked shareholder-backed | Direct equities | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 7.30% | ||
Insurance operations | Non-linked shareholder-backed | Direct equities | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 16.90% | ||
Insurance operations | Non-linked shareholder-backed | Collective investment schemes | Minimum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 3.60% | ||
Insurance operations | Non-linked shareholder-backed | Collective investment schemes | Maximum | |||
Equity-type securities | |||
Longer-term rates of return (as a percent) | 11% |
Analysis of performance by se_5
Analysis of performance by segment - Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | $ 3,953 | $ 3,641 | ||
Change in risk adjustment for non-financial risk | 228 | 169 | ||
Release of CSM for services provided | 2,193 | 2,181 | ||
Other adjustments | 252 | 105 | ||
Recovery of insurance acquisition cash flows | 2,745 | 2,453 | ||
Insurance revenue | 9,371 | 8,549 | [1] | |
Other revenue | 369 | 436 | [1] | |
Gross premiums earned | $ 24,217 | |||
Outward reinsurance premiums | (1,844) | |||
Earned premiums, net of reinsurance | 22,373 | |||
Other income | 641 | |||
Total revenue | 9,740 | 8,985 | 23,014 | |
Interest income | 2,947 | 2,597 | 2,570 | |
Dividend and other investment income | 1,674 | 1,658 | 1,524 | |
Investment appreciation (depreciation) | 5,142 | (33,635) | (608) | |
Investment return | 9,763 | (29,380) | [1] | 3,486 |
Total revenue | 19,503 | (20,395) | 26,500 | |
Fee income on financial instruments that are not held at fair value through profit or loss | 3 | 2 | 1 | |
CPL | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Prudential's share of revenue | 560 | 595 | 3,052 | |
Asset management business | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Other revenue | 299 | 330 | ||
Other income | 437 | |||
Operating segments after elimination of intra-group amounts, before unallocated | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 3,953 | 3,641 | ||
Change in risk adjustment for non-financial risk | 228 | 169 | ||
Release of CSM for services provided | 2,193 | 2,181 | ||
Other adjustments | 252 | 105 | ||
Recovery of insurance acquisition cash flows | 2,745 | 2,453 | ||
Insurance revenue | 9,371 | 8,549 | ||
Other revenue | 368 | 435 | ||
Gross premiums earned | 24,217 | |||
Outward reinsurance premiums | (1,844) | |||
Earned premiums, net of reinsurance | 22,373 | |||
Other income | 640 | |||
Total revenue | 9,739 | 8,984 | 23,013 | |
Interest income | 2,783 | 2,547 | 2,569 | |
Dividend and other investment income | 1,667 | 1,633 | 1,505 | |
Investment appreciation (depreciation) | 5,185 | (33,630) | (591) | |
Investment return | 9,635 | (29,450) | ||
Total revenue | 19,374 | (20,466) | 26,496 | |
Operating segments after elimination of intra-group amounts, before unallocated | Hong Kong | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 1,089 | 969 | ||
Change in risk adjustment for non-financial risk | 73 | 53 | ||
Release of CSM for services provided | 787 | 737 | ||
Other adjustments | 73 | 30 | ||
Recovery of insurance acquisition cash flows | 1,207 | 1,051 | ||
Insurance revenue | 3,229 | 2,840 | ||
Other revenue | 22 | 65 | ||
Gross premiums earned | 10,032 | |||
Outward reinsurance premiums | (1,557) | |||
Earned premiums, net of reinsurance | 8,475 | |||
Other income | 52 | |||
Total revenue | 3,251 | 2,905 | 8,527 | |
Operating segments after elimination of intra-group amounts, before unallocated | Indonesia | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 582 | 438 | ||
Change in risk adjustment for non-financial risk | 35 | 33 | ||
Release of CSM for services provided | 187 | 274 | ||
Other adjustments | 32 | 16 | ||
Recovery of insurance acquisition cash flows | 306 | 309 | ||
Insurance revenue | 1,142 | 1,070 | ||
Other revenue | 4 | 6 | ||
Gross premiums earned | 1,724 | |||
Outward reinsurance premiums | (43) | |||
Earned premiums, net of reinsurance | 1,681 | |||
Other income | 12 | |||
Total revenue | 1,146 | 1,076 | 1,693 | |
Operating segments after elimination of intra-group amounts, before unallocated | Malaysia | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 642 | 563 | ||
Change in risk adjustment for non-financial risk | 24 | 20 | ||
Release of CSM for services provided | 203 | 215 | ||
Other adjustments | 31 | |||
Recovery of insurance acquisition cash flows | 234 | 231 | ||
Insurance revenue | 1,134 | 1,029 | ||
Other revenue | 4 | |||
Gross premiums earned | 1,900 | |||
Outward reinsurance premiums | (47) | |||
Earned premiums, net of reinsurance | 1,853 | |||
Total revenue | 1,138 | 1,029 | 1,853 | |
Operating segments after elimination of intra-group amounts, before unallocated | Singapore | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 970 | 935 | ||
Change in risk adjustment for non-financial risk | 55 | 33 | ||
Release of CSM for services provided | 478 | 442 | ||
Other adjustments | 45 | 27 | ||
Recovery of insurance acquisition cash flows | 435 | 378 | ||
Insurance revenue | 1,983 | 1,815 | ||
Other revenue | 1 | |||
Gross premiums earned | 6,246 | |||
Outward reinsurance premiums | (137) | |||
Earned premiums, net of reinsurance | 6,109 | |||
Other income | 22 | |||
Total revenue | 1,983 | 1,816 | 6,131 | |
Operating segments after elimination of intra-group amounts, before unallocated | Growth markets and other | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Expected claims and other directly attributable expenses | 670 | 736 | ||
Change in risk adjustment for non-financial risk | 41 | 30 | ||
Release of CSM for services provided | 538 | 513 | ||
Other adjustments | 71 | 32 | ||
Recovery of insurance acquisition cash flows | 563 | 484 | ||
Insurance revenue | 1,883 | 1,795 | ||
Other revenue | 39 | 33 | ||
Gross premiums earned | 4,315 | |||
Outward reinsurance premiums | (60) | |||
Earned premiums, net of reinsurance | 4,255 | |||
Other income | 117 | |||
Total revenue | 1,922 | 1,828 | 4,372 | |
Operating segments after elimination of intra-group amounts, before unallocated | Eastspring | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Other revenue | 299 | 330 | ||
Other income | 437 | |||
Total revenue | 299 | 330 | 437 | |
Operating segments | Hong Kong | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 1,033 | 927 | 934 | |
Dividend and other investment income | 775 | 689 | 679 | |
Investment appreciation (depreciation) | 2,155 | (23,615) | 57 | |
Investment return | 3,963 | (21,999) | ||
Total revenue | 7,214 | (19,094) | 10,197 | |
Operating segments | Indonesia | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 92 | 83 | 87 | |
Dividend and other investment income | 93 | 77 | 74 | |
Investment appreciation (depreciation) | 50 | (69) | 34 | |
Investment return | 235 | 91 | ||
Total revenue | 1,381 | 1,167 | 1,888 | |
Operating segments | Malaysia | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 239 | 208 | 220 | |
Dividend and other investment income | 151 | 183 | 160 | |
Investment appreciation (depreciation) | 177 | (386) | (300) | |
Investment return | 567 | 5 | ||
Total revenue | 1,705 | 1,034 | 1,933 | |
Operating segments | Singapore | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 785 | 724 | 707 | |
Dividend and other investment income | 528 | 576 | 506 | |
Investment appreciation (depreciation) | 1,490 | (6,679) | (29) | |
Investment return | 2,803 | (5,379) | ||
Total revenue | 4,786 | (3,563) | 7,315 | |
Operating segments | Growth markets and other | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 627 | 601 | 618 | |
Dividend and other investment income | 117 | 107 | 86 | |
Investment appreciation (depreciation) | 1,309 | (2,860) | (361) | |
Investment return | 2,053 | (2,151) | ||
Total revenue | 3,975 | (323) | 4,716 | |
Operating segments | Eastspring | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Interest income | 7 | 4 | 3 | |
Dividend and other investment income | 3 | 1 | ||
Investment appreciation (depreciation) | 4 | (21) | 8 | |
Investment return | 198 | 183 | ||
Total revenue | 497 | 513 | 665 | |
Inter-segment elimination | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Total revenue | (184) | (200) | (218) | |
Investment return | (184) | (200) | ||
Total revenue | (184) | (200) | (218) | |
Inter-segment elimination | Growth markets and other | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Total revenue | (1) | (1) | ||
Inter-segment elimination | Eastspring | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Total revenue | (184) | (199) | (217) | |
Unallocated to a segment | ||||
Amounts relating to changes in the liability for remaining coverage: | ||||
Other revenue | 1 | 1 | ||
Other income | 1 | |||
Total revenue | 1 | 1 | 1 | |
Interest income | 164 | 50 | 1 | |
Dividend and other investment income | 7 | 25 | 19 | |
Investment appreciation (depreciation) | (43) | (5) | (17) | |
Investment return | 128 | 70 | ||
Total revenue | $ 129 | $ 71 | $ 4 | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Analysis of performance by se_6
Analysis of performance by segment - Additional analysis of investment return (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Disclosure of operating segments [line items] | |||||
Interest revenue calculated using the effective interest method | $ 340 | $ 237 | [1] | ||
Net gains (losses) on financial instruments at fair value through profit or loss | 9,400 | (30,890) | |||
Net realised (losses) on loans | $ (2) | ||||
Interest income | 2,947 | 2,597 | 2,570 | ||
Dividend income | 7 | 24 | 1,496 | ||
Other investment returns (including foreign exchange gains and losses) | 267 | 239 | (259) | ||
Movement in amounts attributable to external unit holders of consolidated investment funds | (251) | 1,010 | |||
Investment return | 9,763 | (29,380) | [1] | 3,486 | |
Valuation movements in Jackson shares recognised in other comprehensive income | [2],[3] | (187) | 250 | ||
Valuation movements in Jackson shares recognised in other comprehensive income | [2] | 8 | |||
Total investment return recognised in the income statement and other comprehensive income | 9,771 | (29,567) | |||
Net realised gains and losses on investments recognised in the income statement | $ (6,000) | $ (9,400) | 6,000 | ||
Interest income for financial assets not at fair value through profit or loss | 280 | ||||
Securities | |||||
Disclosure of operating segments [line items] | |||||
Net gains (losses) on financial instruments at fair value through profit or loss | 624 | ||||
Derivatives | |||||
Disclosure of operating segments [line items] | |||||
Net gains (losses) on financial instruments at fair value through profit or loss | $ (943) | ||||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. On the adoption of IFRS 9 at 1 January 2023, the Group elected to measure its retained interest in the equity securities of Jackson at fair value through other comprehensive income. The Group has subsequently disposed of its remaining interest in Jackson in 2023. In 2022 and 2021, these securities were measured at available-for-sale under IAS 39. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Analysis of performance by se_7
Analysis of performance by segment - Allocation of return (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | [1] | Dec. 31, 2021 | |
Analysis of operating segments | ||||
Investment return | $ 9,763 | $ (29,380) | $ 3,486 | |
Policyholder returns | ||||
Analysis of operating segments | ||||
Investment return | 3,216 | |||
Policyholder returns | Unit-linked | ||||
Analysis of operating segments | ||||
Investment return | 516 | |||
Policyholder returns | With-profits business | ||||
Analysis of operating segments | ||||
Investment return | 2,700 | |||
Shareholder returns | ||||
Analysis of operating segments | ||||
Investment return | $ 270 | |||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Analysis of performance by se_8
Analysis of performance by segment - Net insurance and reinsurance finance income (expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | $ (8,839) | $ 28,623 | [1] |
Net finance expense from reinsurance contracts held | 191 | (1,193) | [1] |
Accretion of interest on GMM contracts | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | (233) | (240) | |
Net finance expense from reinsurance contracts held | 45 | 45 | |
Changes in fair value of underlying assets and other adjustments relating to VFA contracts | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | (8,162) | 28,498 | |
Effect of changes in interest rates and other financial assumptions | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | (276) | 458 | |
Net finance expense from reinsurance contracts held | 168 | (1,301) | |
Effect of measuring changes in estimates at current rates and adjusting the CSM at locked-in rates | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | 43 | 53 | |
Net finance expense from reinsurance contracts held | (11) | 71 | |
Net foreign exchange income (expense) | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | 12 | (524) | |
Net finance expense from reinsurance contracts held | (8) | (1) | |
Other finance (expense) income from contracts | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | (223) | 378 | |
Net finance expense from reinsurance contracts held | (3) | (7) | |
Effect of changes in policyholder interest in excess net assets of relevant participating funds | |||
Analysis of operating segments | |||
Net finance (expense) income from insurance contracts | (192) | 515 | |
Effect of changes in non-performance risk of reinsurers | |||
Analysis of operating segments | |||
Net finance expense from reinsurance contracts held | $ (3) | $ (7) | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Analysis of performance by se_9
Analysis of performance by segment - Profit after tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Group assets and liabilities | ||||||
Profit (loss) for the year | $ 1,712 | $ (997) | [1],[2] | $ 2,214 | [1],[3] | |
Profit (loss) before tax | [4] | 2,272 | (519) | [1],[5] | 3,018 | |
Operating segments | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 2,353 | (260) | 3,085 | |||
Operating segments | CPL | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | (366) | (275) | ||||
Profit (loss) before tax | (577) | (345) | 278 | |||
Operating segments | Hong Kong | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 976 | (742) | 1,068 | |||
Operating segments | Indonesia | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 156 | 108 | 362 | |||
Operating segments | Malaysia | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 257 | 178 | 265 | |||
Operating segments | Singapore | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 512 | (7) | 394 | |||
Operating segments | Growth markets and other | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 775 | 314 | 434 | |||
Operating segments | Eastspring | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | 254 | 234 | 284 | |||
Unallocated to a segment | ||||||
Group assets and liabilities | ||||||
Profit (loss) for the year | $ (641) | $ (737) | $ (871) | |||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. 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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Insurance service expenses an_3
Insurance service expenses and other expenditure - Analysis of expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Insurance service expenses and other expenditure | |||
Expenses attributed to insurance acquisition cash flows | $ 4,833 | $ 3,232 | |
Other directly attributable expenses | 1,258 | 1,221 | |
Other expenditure | 990 | 1,019 | [1] |
Total expenses | $ 7,081 | $ 5,472 | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Insurance service expenses an_4
Insurance service expenses and other expenditure - Depreciation and amortisation and Interest expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | $ 524 | $ 494 | $ 830 |
Operating segments | |||
Insurance service expenses and other expenditure | |||
Interest expense | 58 | 23 | 10 |
Interest expense on lease liabilities | 8 | 7 | 10 |
Depreciation and amortisation | 491 | 468 | 799 |
Operating segments | Hong Kong | |||
Insurance service expenses and other expenditure | |||
Interest expense | 31 | 11 | 3 |
Depreciation and amortisation | 42 | 43 | 123 |
Operating segments | Indonesia | |||
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | 11 | 12 | 51 |
Operating segments | Malaysia | |||
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | 21 | 21 | 56 |
Operating segments | Singapore | |||
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | 36 | 40 | 162 |
Operating segments | Growth markets and other | |||
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | 369 | 339 | 390 |
Operating segments | Eastspring | |||
Insurance service expenses and other expenditure | |||
Depreciation and amortisation | 12 | 13 | 17 |
Unallocated to a segment | |||
Insurance service expenses and other expenditure | |||
Interest expense | 23 | 9 | 331 |
Interest expense on lease liabilities | 3 | ||
Depreciation and amortisation | $ 33 | $ 26 | $ 31 |
Insurance service expenses an_5
Insurance service expenses and other expenditure - Acquisition costs and other expenditure (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Insurance service expenses and other expenditure | ||||
Acquisition costs incurred for insurance policies | $ 2,089 | |||
Acquisition cost deferred | (848) | |||
Amortization of acquisition costs | 343 | |||
Administration costs and other expenditure (net of other reinsurance commission) | 3,128 | |||
Movement in amounts attributable to external unit holders of consolidated investment funds | (152) | |||
Total acquisition costs and other expenditure | 4,560 | |||
Depreciation and amortisation | $ 524 | $ 494 | 830 | |
Interest payable on core structural borrowings | (172) | (200) | [1] | (328) |
Operating segments | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 491 | 468 | 799 | |
Interest expense | (58) | (23) | (10) | |
Interest expense on lease liabilities | (8) | (7) | (10) | |
Operating segments | Hong Kong | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 42 | 43 | 123 | |
Interest expense | (31) | (11) | (3) | |
Operating segments | Indonesia | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 11 | 12 | 51 | |
Operating segments | Malaysia | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 21 | 21 | 56 | |
Operating segments | Singapore | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 36 | 40 | 162 | |
Operating segments | Growth markets and other | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 369 | 339 | 390 | |
Operating segments | Eastspring | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 12 | 13 | 17 | |
Unallocated to a segment | ||||
Insurance service expenses and other expenditure | ||||
Depreciation and amortisation | 33 | 26 | 31 | |
Interest expense | $ (23) | $ (9) | (331) | |
Interest payable on core structural borrowings | (328) | |||
Interest expense on lease liabilities | $ (3) | |||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Insurance service expenses an_6
Insurance service expenses and other expenditure - Staff and employment costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | |
Insurance service expenses and other expenditure | |||
Average number of staff employed by the Group during the year | 15,030 | 14,196 | 13,837 |
Costs of employment | |||
Wages and salaries | $ 1,079 | $ 1,018 | $ 973 |
Social security costs | 37 | 41 | 42 |
Defined contribution schemes | 46 | 40 | 42 |
Total costs of employment | $ 1,162 | $ 1,099 | $ 1,057 |
Discontinued US operations | |||
Insurance service expenses and other expenditure | |||
Average number of staff employed by the Group during the year | 3,306 | ||
Costs of employment | |||
Wages and salaries | $ 511 | ||
Social security costs | 22 | ||
Defined contribution schemes | 29 | ||
Total costs of employment | $ 562 | ||
Continuing and discontinued operations | |||
Insurance service expenses and other expenditure | |||
Average number of staff employed by the Group during the year | 15,030 | 14,196 | 17,143 |
Costs of employment | |||
Wages and salaries | $ 1,484 | ||
Social security costs | 64 | ||
Defined contribution schemes | 71 | ||
Total costs of employment | $ 1,619 | ||
Asia and Africa | |||
Insurance service expenses and other expenditure | |||
Average number of staff employed by the Group during the year | 14,479 | 13,685 | 13,237 |
Number of commission based sales staff | employee | 621 | 744 | 440 |
Head office function | |||
Insurance service expenses and other expenditure | |||
Average number of staff employed by the Group during the year | 551 | 511 | 600 |
Insurance service expenses an_7
Insurance service expenses and other expenditure - Outstanding options and awards (Details) EquityInstruments in Millions | 12 Months Ended | ||
Dec. 31, 2023 EquityInstruments Options £ / shares | Dec. 31, 2022 Options EquityInstruments £ / shares | Dec. 31, 2021 Options EquityInstruments £ / shares | |
Number of awards | |||
Weighted average share price | £ 10.46 | £ 10.33 | £ 14.31 |
SAYE options | |||
Number of options | |||
Balance at beginning of year | Options | 1,858,292 | 2,000,000 | 2,300,000 |
Granted | Options | 400,000 | 500,000 | 400,000 |
Modification | Options | 100,000 | ||
Exercised | Options | (300,000) | (300,000) | (700,000) |
Cancelled | Options | (300,000) | (300,000) | (100,000) |
Balance at end of year | Options | 1,671,215 | 1,858,292 | 2,000,000 |
Options immediately exercisable at end of year | Options | 200,000 | 300,000 | 200,000 |
Weighted average exercise price | |||
Balance at beginning of year | £ 10.43 | £ 11.61 | £ 11.9 |
Granted | 7.8 | 7.4 | 11.9 |
Modification | 11.8 | ||
Exercised | 11.6 | 11.2 | 12.6 |
Forfeited | 7.8 | 10.8 | 11.1 |
Cancelled | 12 | 12.7 | 11.5 |
Lapsed/Expired | 10.4 | 13 | 12.9 |
Balance at end of year | 9.50 | 10.43 | 11.61 |
Options immediately exercisable at end of year | £ 10.82 | £ 12.48 | £ 12.26 |
Incentive plans | |||
Number of awards | |||
Balance at beginning of year | EquityInstruments | 21 | 24.6 | 40.6 |
Granted | EquityInstruments | 6.3 | 6.5 | 5.2 |
Modification | EquityInstruments | 0.7 | ||
Exercised | EquityInstruments | (10.1) | (7.2) | (8.6) |
Forfeited | EquityInstruments | (1.7) | (1.1) | (3.1) |
Cancelled | EquityInstruments | (0.1) | (0.1) | (0.1) |
Lapsed/Expired | EquityInstruments | (1.1) | (1.7) | (0.6) |
Jackson awards derecognised on demerger | EquityInstruments | (9.5) | ||
Balance at end of year | EquityInstruments | 14.3 | 21 | 24.6 |
Insurance service expenses an_8
Insurance service expenses and other expenditure - Exercise price ranges for options (Details) - SAYE options | 12 Months Ended | |||
Dec. 31, 2023 Options £ / shares | Dec. 31, 2022 Options £ / shares | Dec. 31, 2021 Options £ / shares | Dec. 31, 2020 Options £ / shares | |
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 1,671,215 | 1,858,292 | 2,000,000 | 2,300,000 |
Outstanding - Weighted average remaining contractual life (years) | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 7 months 6 days | |
Outstanding - Weighted average exercise prices | £ 9.50 | £ 10.43 | £ 11.61 | £ 11.9 |
Exercisable - Number exercisable | Options | 200,000 | 300,000 | 200,000 | |
Exercisable - Weighted average exercise prices | £ 10.82 | £ 12.48 | £ 12.26 | |
Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 7.37 | 7.37 | ||
Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 14.55 | £ 14.55 | ||
Between 7 and 8 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 700,000 | 500,000 | ||
Outstanding - Weighted average remaining contractual life (years) | 3 years 8 months 12 days | 4 years 1 month 6 days | ||
Outstanding - Weighted average exercise prices | £ 7.55 | £ 7.37 | ||
Between 7 and 8 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 7 | 7 | 7 | |
Between 7 and 8 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 8 | £ 8 | £ 8 | |
Between 9 and 10 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 300,000 | 400,000 | 400,000 | |
Outstanding - Weighted average remaining contractual life (years) | 1 year 4 months 24 days | 2 years 2 months 12 days | 3 years 2 months 12 days | |
Outstanding - Weighted average exercise prices | £ 9.64 | £ 9.64 | £ 9.64 | |
Exercisable - Number exercisable | Options | 100,000 | |||
Exercisable - Weighted average exercise prices | £ 9.64 | |||
Between 9 and 10 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 9 | 9 | 9 | |
Between 9 and 10 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 10 | £ 10 | £ 10 | |
Between 11 and 12 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 600,000 | 800,000 | 1,200,000 | |
Outstanding - Weighted average remaining contractual life (years) | 2 years | 2 years 4 months 24 days | 2 years 8 months 12 days | |
Outstanding - Weighted average exercise prices | £ 11.59 | £ 11.48 | £ 11.38 | |
Exercisable - Number exercisable | Options | 200,000 | 100,000 | ||
Exercisable - Weighted average exercise prices | £ 11.12 | £ 11.04 | ||
Between 11 and 12 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 11 | 11 | 11 | |
Between 11 and 12 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | 12 | 12 | 12 | |
Between 12 and 13 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 12 | 12 | 12 | |
Between 12 and 13 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 13 | £ 13 | £ 13 | |
Between 13 and 14 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 100,000 | 100,000 | 200,000 | |
Outstanding - Weighted average remaining contractual life (years) | 4 months 24 days | 1 year 4 months 24 days | 1 year 7 months 6 days | |
Outstanding - Weighted average exercise prices | £ 13.94 | £ 13.94 | £ 13.94 | |
Exercisable - Number exercisable | Options | 100,000 | 100,000 | ||
Exercisable - Weighted average exercise prices | £ 13.94 | £ 13.94 | ||
Between 13 and 14 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 13 | 13 | 13 | |
Between 13 and 14 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | 14 | £ 14 | £ 14 | |
Between 14 and 15 | ||||
Summary of options exercise price range | ||||
Outstanding - Number outstanding | Options | 100,000 | 200,000 | ||
Outstanding - Weighted average remaining contractual life (years) | 4 months 24 days | 1 year 4 months 24 days | ||
Outstanding - Weighted average exercise prices | £ 14.55 | £ 14.55 | ||
Exercisable - Number exercisable | Options | 100,000 | |||
Exercisable - Weighted average exercise prices | £ 14.55 | |||
Between 14 and 15 | Minimum | ||||
Summary of options exercise price range | ||||
Exercise price | 14 | 14 | 14 | |
Between 14 and 15 | Maximum | ||||
Summary of options exercise price range | ||||
Exercise price | £ 15 | £ 15 | £ 15 |
Insurance service expenses an_9
Insurance service expenses and other expenditure - Fair value of options and awards (Details) | 12 Months Ended | ||
Dec. 31, 2023 GBP (£) entity Y £ / shares | Dec. 31, 2022 GBP (£) Y £ / shares | Dec. 31, 2021 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% | 26% | 24% |
Volatility assumption - period of correlations for basket of competitors | 3 years | ||
Prudential LTIP (TSR) | |||
Share-based payment | |||
Expected volatility (as a percent) | 31.50% | 33.64% | 26.69% |
Risk-free interest rate (as a percent) | 4.34% | 2.79% | 0.36% |
Weighted average share price at grant date | £ / shares | £ 11.59 | £ 11.15 | £ 15.11 |
Weighted average fair value at grant date | £ | £ 5.10 | £ 2.09 | £ 7.70 |
SAYE options | |||
Share-based payment | |||
Dividend yield (as a percent) | 1.38% | 1.11% | 0.81% |
Expected volatility (as a percent) | 30.02% | 25.68% | 22.31% |
Risk-free interest rate (as a percent) | 4.55% | 3.97% | 1.18% |
Expected option life (years) | Y | 3.95 | 4.52 | 4.50 |
Weighted average exercise price | £ / shares | £ 7.75 | £ 7.37 | £ 11.90 |
Weighted average share price at grant date | £ / shares | £ 8.89 | £ 9.54 | £ 14.76 |
Weighted average fair value at grant date | £ | £ 2.85 | £ 3.45 | £ 4.13 |
Other awards | |||
Share-based payment | |||
Weighted average fair value at grant date | £ | £ 11.45 | £ 11.11 | £ 14.79 |
Insurance service expenses a_10
Insurance service expenses and other expenditure - Share-based payment expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based payment expense charged to the income statement | |||
Share-based compensation expense | $ 81 | $ 104 | $ 100 |
Share-based compensation expense accounted for as equity-settled | 71 | 97 | $ 94 |
Liabilities relating to awards which are settled in cash | $ 31 | $ 27 |
Insurance service expenses a_11
Insurance service expenses and other expenditure - Key management remuneration (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Key management remuneration | |||
Salaries and short-term benefits (including fees paid to non-executive directors) | $ 27,000,000 | $ 22,500,000 | $ 29,300,000 |
Post-employment benefits | 1,000,000 | 1,000,000 | 1,400,000 |
Share-based payments | 22,200,000 | 15,400,000 | 14,000,000 |
Payments on separation | 1,000,000 | 23,500,000 | |
Total key management remuneration | 50,200,000 | 39,900,000 | 68,200,000 |
Share-based payments in accordance with IFRS 2 | 7,600,000 | 6,700,000 | 7,500,000 |
Deferred share awards | 9,600,000 | $ 8,700,000 | 6,500,000 |
Mr Wadhwani | |||
Key management remuneration | |||
Award made to replace share-based awards from former employer that were forfeited | $ 5,000,000 | ||
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 |
Insurance service expenses a_12
Insurance service expenses and other expenditure - Fees payable to the auditor (Details) - USD ($) $ in Millions | 12 Months Ended | 21 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2023 | |
Fees payable to the Company's auditor and its associates for other services: | ||||
Total fees payable to the auditor | $ 18.8 | $ 10.9 | $ 13.2 | |
One-off non-audit services associated with demerger and public offering | 1.9 | |||
Other audit and non-audit services | 18.8 | 10.9 | 11.3 | |
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 | |||
EY | ||||
Fees payable to the Company's auditor and its associates for other services: | ||||
Fees for audit assurance over implementation of IFRS 17 | $ 12.4 | |||
Discontinued US operations | ||||
Fees payable to the Company's auditor and its associates for other services: | ||||
Total fees payable to the auditor | 2.3 | |||
Continuing and discontinued operations | ||||
Fees payable to the auditor | ||||
Audit of the Company's annual accounts | 5.8 | 2.3 | 2.4 | |
Audit of subsidiaries pursuant to legislation | 8.1 | 4.4 | 5.9 | |
Audit fees payable to the auditor | 13.9 | 6.7 | 8.3 | |
Fees payable to the Company's auditor and its associates for other services: | ||||
Audit-related assurance services | 4 | 3.5 | 4.5 | |
Other assurance services | 0.9 | 0.7 | 1.1 | |
Services relating to corporate finance transactions | 1.6 | |||
Non-audit fees payable to the auditor | 4.9 | 4.2 | 7.2 | |
Total fees payable to the auditor | 18.8 | 10.9 | 15.5 | |
Continuing and discontinued operations | EY | ||||
Fees payable to the Company's auditor and its associates for other services: | ||||
Audit-related assurance services | 4 | |||
Audit-related assurance service fees, required by law | $ 1.1 | |||
Continuing and discontinued operations | KPMG | ||||
Fees payable to the Company's auditor and its associates for other services: | ||||
Audit-related assurance services | 3.5 | 4.5 | ||
Audit-related assurance service fees, required by law | $ 0.9 | $ 0.6 |
Tax charge - Total tax charge b
Tax charge - Total tax charge by nature (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Analysis of operating segments | ||||
Income tax credit | $ (560) | $ (478) | [1] | $ (804) |
Operating segments | ||||
Analysis of operating segments | ||||
Income tax credit | (573) | (474) | (783) | |
Operating segments | Hong Kong | ||||
Analysis of operating segments | ||||
Income tax credit | (129) | (106) | (119) | |
Operating segments | Indonesia | ||||
Analysis of operating segments | ||||
Income tax credit | (43) | (27) | (70) | |
Operating segments | Malaysia | ||||
Analysis of operating segments | ||||
Income tax credit | (98) | (44) | (73) | |
Operating segments | Singapore | ||||
Analysis of operating segments | ||||
Income tax credit | (174) | (61) | (328) | |
Operating segments | Growth markets and other | ||||
Analysis of operating segments | ||||
Income tax credit | (103) | (210) | (163) | |
Operating segments | Eastspring | ||||
Analysis of operating segments | ||||
Income tax credit | (26) | (26) | (30) | |
Unallocated to a segment | ||||
Analysis of operating segments | ||||
Income tax credit | $ 13 | $ (4) | $ (21) | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Tax charge - Components (Detail
Tax charge - Components (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Current tax expense: | ||||
Corporation tax | $ (457) | $ (474) | $ (405) | |
Adjustments in respect of prior years | 1 | (7) | 6 | |
Total current tax charge | (456) | (481) | (399) | |
Deferred tax arising from: | ||||
Origination and reversal of temporary differences | (135) | (388) | ||
Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year | 31 | 3 | (17) | |
Total deferred tax credit (charge) credit | (104) | 3 | (405) | |
Total tax charge | $ (560) | $ (478) | [1] | $ (804) |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Tax charge - Reconciliation of
Tax charge - Reconciliation of shareholder effective tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Reconciliation of effective tax rate | |||||
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 2,272 | $ (519) | [2],[3] | $ 3,018 |
Tax charge attributable to policyholders' returns | (175) | (124) | [2] | (342) | |
Profit (loss) before tax, attributable to shareholders | 2,097 | (643) | [2] | 2,676 | |
Tax (charge) credit at the expected rate | $ (399) | $ 85 | $ (539) | ||
Tax charge at the expected rate, percentage impact on ETR | 19% | 13% | 20% | ||
Effects of recurring tax reconciliation items: | |||||
Income not taxable or taxable at concessionary rates | $ 80 | $ 61 | $ 63 | ||
Income not taxable or taxable at concessionary rates, percentage impact on ETR | (4.00%) | 9% | (2.00%) | ||
Deductions and losses not allowable for tax purposes | $ (136) | $ (196) | $ (92) | ||
Deductions and losses not allowable for tax purposes, percentage impact on ETR | 6% | (30.00%) | 3% | ||
Items related to taxation of life insurance businesses | $ 137 | $ (129) | $ 177 | ||
Items related to taxation of life insurance businesses, percentage impact on ETR | (7.00%) | (20.00%) | (7.00%) | ||
Deferred tax adjustments, including unrecognised tax losses | $ 13 | $ (45) | $ (111) | ||
Deferred tax adjustments including unrecognised tax losses, percentage impact on ETR | (1.00%) | (7.00%) | 4% | ||
Effect of results of joint ventures and associates | $ (38) | $ (32) | $ 80 | ||
Effect of results of joint ventures and associates, percentage impact on ETR | 2% | (5.00%) | (3.00%) | ||
Irrecoverable withholding taxes | $ (63) | $ (55) | $ (60) | ||
Irrecoverable withholding taxes, percentage impact on ETR | 3% | (9.00%) | 2% | ||
Other | $ (2) | $ (15) | $ (8) | ||
Other, percentage impact on ETR | 1% | (2.00%) | 1% | ||
Total (charge) credit on recurring items | $ (9) | $ (411) | $ 49 | ||
Total (charge) credit on recurring items, percentage impact on ETR | 0% | (64.00%) | (2.00%) | ||
Effects of non-recurring tax reconciliation items: | |||||
Adjustments to tax charge in relation to prior years | $ 42 | $ 1 | $ (11) | ||
Adjustments to tax charge in relation to prior years, percentage impact on ETR | (2.00%) | 0% | 0% | ||
Movements in provisions for open tax matters | $ (15) | $ (40) | $ 47 | ||
Movements in provisions for open tax matters, percentage impact on ETR | 1% | (6.00%) | (2.00%) | ||
Impact of changes in local statutory tax rates | $ 6 | ||||
Impact of changes in local statutory tax rates, percentage impact on ETR | 0% | 0% | 0% | ||
Adjustments in relation to business disposals and corporate transactions | $ (4) | $ 11 | $ (14) | ||
Adjustments in relation to business disposals and corporate transactions, percentage impact on ETR | 0% | 2% | 1% | ||
Total credit (charge) on non-recurring items | $ 23 | $ (28) | $ 28 | ||
Total credit (charge) on non-recurring items, percentage impact on ETR | (1.00%) | (4.00%) | (1.00%) | ||
Total tax charge attributable to shareholders | $ (385) | $ (354) | [2] | $ (462) | |
Tax charge attributable to policyholders' returns | (175) | (124) | [2] | (342) | |
Total tax charge attributable to shareholders' and policyholders' returns | (560) | (478) | [2] | (804) | |
Adjusted operating profit | 2,893 | 2,722 | 3,233 | ||
Non-operating result | (796) | (3,365) | (557) | ||
Profit (loss) before tax attributable to shareholders' returns | 2,097 | (643) | [2] | 2,676 | |
Tax charge attributable to shareholders' returns analysed into: | |||||
Tax charge on adjusted operating profit | (444) | (539) | (548) | ||
Tax credit on non-operating result | 59 | 185 | 86 | ||
Tax charge attributable to shareholders' returns | $ (385) | $ (354) | [2] | $ (462) | |
Actual tax rate on: | |||||
Adjusted operating profit, Including non-recurring tax reconciling items (as a percent) | 15% | 20% | 17% | ||
Adjusted operating profit, excluding non-recurring tax reconciling items (as a percent) | 16% | 18% | 18% | ||
Profit before tax attributable to shareholders' returns (as a percent) | 18% | (55.00%) | 17% | ||
Hong Kong | |||||
Notes | |||||
Applicable tax rate | 5% | ||||
[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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Tax charge - Provision for open
Tax charge - Provision for open tax matters (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Movements in provisions for open tax matters | |
Provision for open tax matters at beginning of period | $ (79) |
Movements in the current period included in tax charge attributable to shareholders | (15) |
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) | 1 |
Provision for open tax matters at end of period | $ (93) |
Tax charge - 2023, 2022 and 202
Tax charge - 2023, 2022 and 2021 actual tax rate of relevant business operations (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax charge | |||
Tax rate on adjusted operating profit | 15% | 20% | 17% |
Tax rate on profit before tax | 18% | (55.00%) | 17% |
Hong Kong | |||
Tax charge | |||
Tax rate on adjusted operating profit | 7% | 4% | 5% |
Tax rate on profit before tax | 7% | (7.00%) | 4% |
Indonesia | |||
Tax charge | |||
Tax rate on adjusted operating profit | 22% | 19% | 17% |
Tax rate on profit before tax | 22% | 16% | 17% |
Malaysia | |||
Tax charge | |||
Tax rate on adjusted operating profit | 22% | 26% | 21% |
Tax rate on profit before tax | 20% | 25% | 21% |
Singapore | |||
Tax charge | |||
Tax rate on adjusted operating profit | 16% | 16% | 15% |
Tax rate on profit before tax | 16% | 63% | 15% |
Growth markets and other | |||
Tax charge | |||
Tax rate on adjusted operating profit | 20% | 33% | 22% |
Tax rate on profit before tax | 11% | 40% | 27% |
Eastspring | |||
Tax charge | |||
Tax rate on adjusted operating profit | 9% | 10% | 10% |
Tax rate on profit before tax | 9% | 10% | 10% |
Other operations | |||
Tax charge | |||
Tax rate on adjusted operating profit | 2% | 0% | (3.00%) |
Tax rate on profit before tax | 2% | (1.00%) | (2.00%) |
Earnings per share - Calculatio
Earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Before tax | |||||
Based on profit (loss) for the year | $ 2,097 | $ (643) | [1] | $ 2,676 | |
Short-term fluctuations in investment returns | 774 | 3,420 | 458 | ||
Amortisation of acquisition accounting adjustments | 5 | ||||
Loss (gain) attaching to corporate transactions | 22 | (55) | 94 | ||
Based on adjusted operating profit | 2,893 | 2,722 | 3,233 | ||
Tax | |||||
Based on profit (loss) for the year | (385) | (354) | [1] | (462) | |
Short-term fluctuations in investment returns | (59) | (185) | (81) | ||
Loss (gain) attaching to corporate transactions | (5) | ||||
Based on adjusted operating profit | (444) | (539) | (548) | ||
Non-controlling interests | |||||
Based on profit (loss) for the year | (11) | (10) | (22) | ||
Short-term fluctuations in investment returns | (1) | 5 | |||
Based on adjusted operating profit | (11) | (11) | (17) | ||
Net of tax and non-controlling interests | |||||
Profit (loss) attributable to equity holders of the Company | 1,701 | (1,007) | [1] | (2,042) | |
Loss from discontinued operations | 4,234 | ||||
Profit from continuing operations | 1,701 | (1,007) | 2,192 | ||
Short-term fluctuations in investment returns | 715 | 3,234 | 382 | ||
Amortisation of acquisition accounting adjustments | 5 | ||||
Loss (gain) attaching to corporate transactions | 22 | (55) | 89 | ||
Based on adjusted operating profit | $ 2,438 | $ 2,172 | $ 2,668 | ||
Basic | |||||
Profit/loss (in USD per share) | $ 0.621 | $ (0.368) | [1] | $ (0.777) | |
Loss from discontinued operations (in USD per share) | [2] | 1.611 | |||
Profit from continuing operations (in USD per share) | 0.621 | (0.368) | 0.834 | ||
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.261 | 1.182 | 0.145 | ||
Amortisation of acquisition accounting adjustments (in USD per share) | 0.002 | ||||
Loss (gain) attaching to corporate transactions | 0.008 | (0.020) | 0.034 | ||
Adjusted operating profit (in USD per share) | 0.890 | 0.794 | 1.015 | ||
Diluted | |||||
Profit/loss (in USD per share) | 0.619 | (0.368) | [1] | (0.777) | |
Loss from discontinued operations (in USD per share) | [2] | 1.611 | |||
Profit from continuing operations (in USD per share) | 0.619 | (0.368) | 0.834 | ||
Short-term fluctuations in investment returns on shareholder-backed business (in USD per share) | 0.260 | 1.182 | 0.145 | ||
Amortisation of acquisition accounting adjustments (in USD per share) | 0.002 | ||||
Loss (gain) attaching to corporate transactions | 0.008 | (0.020) | 0.034 | ||
Adjusted operating profit (in USD per share) | $ 0.887 | $ 0.794 | $ 1.015 | ||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. Discontinued operations for 2021 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 shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average number of shares for calculating earnings per share | |||
Weighted average number of shares for calculation of basic earnings per share | 2,741 | 2,736 | 2,628 |
Dilutive effect of share options and awards | 6 | ||
Weighted average number of shares for calculation of diluted earnings per share | 2,747 | 2,736 | 2,628 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 13, 2021 | |
Dividends relating to reporting period: | ||||
First interim dividend (in USD per share) | $ 0.0626 | $ 0.0574 | $ 0.0537 | |
Second interim dividend (in USD per share) | 0.1421 | 0.1304 | 0.1186 | |
Total (in USD per share) | $ 0.2047 | $ 0.1878 | $ 0.1723 | |
First interim dividend | $ 172 | $ 154 | $ 140 | |
Second interim dividend | 392 | 359 | 326 | |
Total | $ 564 | $ 513 | $ 466 | |
Dividends paid in reporting period: | ||||
First interim dividend (in USD per share) | $ 0.0626 | $ 0.0574 | $ 0.0537 | |
Second interim dividend for prior year (in USD per share) | 0.1304 | 0.1186 | 0.1073 | |
Total (in USD per share) | $ 0.1930 | $ 0.1760 | $ 0.1610 | |
Current year first interim dividend | $ 172 | $ 154 | $ 138 | |
Second interim dividend for prior year | 361 | 320 | 283 | |
Total | $ 533 | $ 474 | $ 421 | |
Discontinued US operations | ||||
Dividends paid in reporting period: | ||||
Dividend in specie | $ 1,735 |
Group assets and liabilities (D
Group assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Group assets and liabilities | |||||||
Sovereign debt | $ 44,258 | $ 38,051 | |||||
Other government bonds | 3,897 | 4,038 | |||||
Corporate bonds | 34,624 | 34,538 | |||||
Asset-backed securities | 285 | 389 | |||||
Total debt securities | [1] | 83,064 | 77,016 | [2] | $ 99,154 | [2] | |
Loans | 578 | 590 | [2] | 771 | [2] | ||
Equity securities and holdings in collective investment schemes | [1] | 64,753 | 57,679 | [2] | 61,601 | [2] | |
Other financial investments | 7,725 | 6,844 | |||||
Total financial investments | 156,120 | 142,129 | 166,748 | ||||
Investment properties | 39 | 37 | [2] | 38 | [2] | ||
Cash and cash equivalents | 4,751 | 5,514 | [2],[3] | $ 7,170 | [2],[3] | $ 8,018 | |
Total investments | 160,910 | 147,680 | |||||
Within one year | |||||||
Group assets and liabilities | |||||||
Total financial investments | 80,022 | 68,949 | |||||
Indonesia | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,529 | 1,557 | |||||
Singapore | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 4,542 | 4,731 | |||||
Thailand | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,963 | 1,456 | |||||
United Kingdom | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 92 | 4 | |||||
United States | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 25,987 | 21,891 | |||||
Vietnam | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 3,346 | 2,410 | |||||
Other (predominantly Asia) | |||||||
Group assets and liabilities | |||||||
Sovereign debt | $ 6,799 | 6,002 | |||||
Hong Kong | |||||||
Group assets and liabilities | |||||||
Share of estate within with-profits fund | 10% | ||||||
AAA | |||||||
Group assets and liabilities | |||||||
Other government bonds | $ 1,746 | 1,673 | |||||
Corporate bonds | 1,604 | 1,543 | |||||
Asset-backed securities | 230 | 318 | |||||
AA+ to AA- | |||||||
Group assets and liabilities | |||||||
Other government bonds | 166 | 153 | |||||
Corporate bonds | 4,090 | 3,892 | |||||
Asset-backed securities | 8 | 10 | |||||
A+ to A- | |||||||
Group assets and liabilities | |||||||
Other government bonds | 1,023 | 1,137 | |||||
Corporate bonds | 13,558 | 12,102 | |||||
Asset-backed securities | 37 | 34 | |||||
BBB+ to BBB- | |||||||
Group assets and liabilities | |||||||
Other government bonds | 384 | 503 | |||||
Corporate bonds | 12,236 | 13,185 | |||||
Asset-backed securities | 9 | 23 | |||||
Below BBB- and unrated | |||||||
Group assets and liabilities | |||||||
Other government bonds | 578 | 572 | |||||
Corporate bonds | 3,136 | 3,816 | |||||
Asset-backed securities | 1 | 4 | |||||
Unrated | |||||||
Group assets and liabilities | |||||||
Securities excluding sovereign debt | 1,181 | 1,152 | |||||
Mortgage loans | |||||||
Group assets and liabilities | |||||||
Loans | 148 | 140 | |||||
Other loans | |||||||
Group assets and liabilities | |||||||
Loans | 430 | 450 | |||||
Direct equities | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 31,096 | 26,908 | |||||
Collective investment schemes | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 33,657 | 30,771 | |||||
Operating segments | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 44,258 | 38,051 | |||||
Other government bonds | 3,897 | 4,038 | |||||
Corporate bonds | 34,622 | 34,538 | |||||
Asset-backed securities | 285 | 389 | |||||
Total debt securities | 83,062 | 77,016 | |||||
Loans | 578 | 590 | |||||
Equity securities and holdings in collective investment schemes | 64,753 | 57,411 | |||||
Other financial investments | 5,097 | 5,095 | |||||
Total financial investments | 153,490 | 140,112 | |||||
Investment properties | 39 | 37 | |||||
Cash and cash equivalents | 3,161 | 3,705 | |||||
Total investments | 156,690 | 143,854 | |||||
Operating segments | Indonesia | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,529 | 1,557 | |||||
Operating segments | Singapore | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 4,542 | 4,731 | |||||
Operating segments | Thailand | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,963 | 1,456 | |||||
Operating segments | United Kingdom | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 92 | 4 | |||||
Operating segments | United States | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 25,987 | 21,891 | |||||
Operating segments | Vietnam | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 3,346 | 2,410 | |||||
Operating segments | Other (predominantly Asia) | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 6,799 | 6,002 | |||||
Operating segments | AAA | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 1,746 | 1,673 | |||||
Corporate bonds | 1,604 | 1,543 | |||||
Asset-backed securities | 230 | 318 | |||||
Operating segments | AA+ to AA- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 166 | 153 | |||||
Corporate bonds | 4,090 | 3,892 | |||||
Asset-backed securities | 8 | 10 | |||||
Operating segments | A+ to A- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 1,023 | 1,137 | |||||
Corporate bonds | 13,557 | 12,102 | |||||
Asset-backed securities | 37 | 34 | |||||
Operating segments | BBB+ to BBB- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 384 | 503 | |||||
Corporate bonds | 12,235 | 13,185 | |||||
Asset-backed securities | 9 | 23 | |||||
Operating segments | Below BBB- and unrated | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 578 | 572 | |||||
Corporate bonds | 3,136 | 3,816 | |||||
Asset-backed securities | 1 | 4 | |||||
Operating segments | Mortgage loans | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Loans | 148 | 140 | |||||
Operating segments | Other loans | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Loans | 430 | 450 | |||||
Operating segments | Direct equities | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 31,096 | 26,642 | |||||
Operating segments | Collective investment schemes | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 33,657 | 30,769 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 34,471 | 31,311 | |||||
Other government bonds | 3,115 | 3,167 | |||||
Corporate bonds | 26,594 | 25,116 | |||||
Asset-backed securities | 217 | 279 | |||||
Total debt securities | 64,397 | 59,873 | |||||
Loans | 495 | 542 | |||||
Equity securities and holdings in collective investment schemes | 43,240 | 37,015 | |||||
Other financial investments | 2,893 | 3,010 | |||||
Total financial investments | 111,025 | 100,440 | |||||
Cash and cash equivalents | 1,054 | 1,563 | |||||
Total investments | 112,079 | 102,003 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Indonesia | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 393 | 565 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Singapore | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 3,006 | 3,240 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Thailand | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 2 | ||||||
Operating segments | Insurance operations | Funds with policyholder participation | United States | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 23,552 | 21,580 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Vietnam | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 3,143 | 2,263 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Other (predominantly Asia) | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 4,375 | 3,663 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | AAA | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 1,533 | 1,480 | |||||
Corporate bonds | 1,214 | 1,094 | |||||
Asset-backed securities | 174 | 228 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | AA+ to AA- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 120 | 112 | |||||
Corporate bonds | 2,716 | 2,356 | |||||
Asset-backed securities | 6 | 7 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | A+ to A- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 689 | 765 | |||||
Corporate bonds | 10,918 | 9,233 | |||||
Asset-backed securities | 30 | 25 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | BBB+ to BBB- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 271 | 327 | |||||
Corporate bonds | 9,466 | 9,515 | |||||
Asset-backed securities | 7 | 17 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Below BBB- and unrated | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 502 | 483 | |||||
Corporate bonds | 2,280 | 2,918 | |||||
Asset-backed securities | 2 | ||||||
Operating segments | Insurance operations | Funds with policyholder participation | Mortgage loans | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Loans | 65 | 92 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Other loans | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Loans | 430 | 450 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Direct equities | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 18,711 | 15,000 | |||||
Operating segments | Insurance operations | Funds with policyholder participation | Collective investment schemes | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 24,529 | 22,015 | |||||
Operating segments | Insurance operations | Unit-linked | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 2,005 | 1,812 | |||||
Other government bonds | 274 | 344 | |||||
Corporate bonds | 2,261 | 2,859 | |||||
Asset-backed securities | 3 | 7 | |||||
Total debt securities | 4,543 | 5,022 | |||||
Equity securities and holdings in collective investment schemes | 19,621 | 18,139 | |||||
Other financial investments | 396 | 379 | |||||
Total financial investments | 24,560 | 23,540 | |||||
Cash and cash equivalents | 647 | 749 | |||||
Total investments | 25,207 | 24,289 | |||||
Operating segments | Insurance operations | Unit-linked | Indonesia | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 611 | 589 | |||||
Operating segments | Insurance operations | Unit-linked | Singapore | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 607 | 507 | |||||
Operating segments | Insurance operations | Unit-linked | Thailand | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 4 | ||||||
Operating segments | Insurance operations | Unit-linked | United Kingdom | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 5 | 4 | |||||
Operating segments | Insurance operations | Unit-linked | United States | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 84 | 54 | |||||
Operating segments | Insurance operations | Unit-linked | Vietnam | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 30 | 12 | |||||
Operating segments | Insurance operations | Unit-linked | Other (predominantly Asia) | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 664 | 646 | |||||
Operating segments | Insurance operations | Unit-linked | AAA | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 94 | 85 | |||||
Corporate bonds | 147 | 181 | |||||
Asset-backed securities | 2 | 5 | |||||
Operating segments | Insurance operations | Unit-linked | AA+ to AA- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 17 | 21 | |||||
Corporate bonds | 440 | 385 | |||||
Asset-backed securities | 1 | ||||||
Operating segments | Insurance operations | Unit-linked | A+ to A- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 95 | 139 | |||||
Corporate bonds | 460 | 524 | |||||
Operating segments | Insurance operations | Unit-linked | BBB+ to BBB- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 57 | 77 | |||||
Corporate bonds | 714 | 1,325 | |||||
Operating segments | Insurance operations | Unit-linked | Below BBB- and unrated | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 11 | 22 | |||||
Corporate bonds | 500 | 444 | |||||
Asset-backed securities | 1 | 1 | |||||
Operating segments | Insurance operations | Unit-linked | Direct equities | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 12,075 | 11,379 | |||||
Operating segments | Insurance operations | Unit-linked | Collective investment schemes | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 7,546 | 6,760 | |||||
Operating segments | Insurance operations | Other business | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 7,754 | 4,831 | |||||
Other government bonds | 506 | 527 | |||||
Corporate bonds | 5,767 | 6,562 | |||||
Asset-backed securities | 65 | 103 | |||||
Total debt securities | 14,092 | 12,023 | |||||
Loans | 83 | 48 | |||||
Equity securities and holdings in collective investment schemes | 1,762 | 2,194 | |||||
Other financial investments | 1,707 | 1,599 | |||||
Total financial investments | 17,644 | 15,864 | |||||
Investment properties | 39 | 37 | |||||
Cash and cash equivalents | 1,287 | 1,266 | |||||
Total investments | 18,970 | 17,167 | |||||
Operating segments | Insurance operations | Other business | Indonesia | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 525 | 400 | |||||
Operating segments | Insurance operations | Other business | Singapore | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 929 | 917 | |||||
Operating segments | Insurance operations | Other business | Thailand | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,957 | 1,456 | |||||
Operating segments | Insurance operations | Other business | United Kingdom | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 87 | ||||||
Operating segments | Insurance operations | Other business | United States | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 2,351 | 257 | |||||
Operating segments | Insurance operations | Other business | Vietnam | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 173 | 135 | |||||
Operating segments | Insurance operations | Other business | Other (predominantly Asia) | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 1,732 | 1,666 | |||||
Operating segments | Insurance operations | Other business | AAA | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 119 | 108 | |||||
Corporate bonds | 243 | 268 | |||||
Asset-backed securities | 54 | 85 | |||||
Operating segments | Insurance operations | Other business | AA+ to AA- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 29 | 20 | |||||
Corporate bonds | 934 | 1,151 | |||||
Asset-backed securities | 2 | 2 | |||||
Operating segments | Insurance operations | Other business | A+ to A- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 239 | 233 | |||||
Corporate bonds | 2,179 | 2,345 | |||||
Asset-backed securities | 7 | 9 | |||||
Operating segments | Insurance operations | Other business | BBB+ to BBB- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 56 | 99 | |||||
Corporate bonds | 2,055 | 2,344 | |||||
Asset-backed securities | 2 | 6 | |||||
Operating segments | Insurance operations | Other business | Below BBB- and unrated | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 63 | 67 | |||||
Corporate bonds | 356 | 454 | |||||
Asset-backed securities | 1 | ||||||
Operating segments | Insurance operations | Other business | Mortgage loans | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Loans | 83 | 48 | |||||
Operating segments | Insurance operations | Other business | Direct equities | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 182 | 202 | |||||
Operating segments | Insurance operations | Other business | Collective investment schemes | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 1,580 | 1,992 | |||||
Operating segments | Eastspring | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 28 | 97 | |||||
Other government bonds | 2 | ||||||
Corporate bonds | 1 | ||||||
Total debt securities | 30 | 98 | |||||
Equity securities and holdings in collective investment schemes | 130 | 63 | |||||
Other financial investments | 101 | 107 | |||||
Total financial investments | 261 | 268 | |||||
Cash and cash equivalents | 173 | 127 | |||||
Total investments | 434 | 395 | |||||
Operating segments | Eastspring | Indonesia | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 3 | ||||||
Operating segments | Eastspring | Singapore | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 67 | ||||||
Operating segments | Eastspring | Other (predominantly Asia) | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Sovereign debt | 28 | 27 | |||||
Operating segments | Eastspring | BBB+ to BBB- | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Corporate bonds | 1 | ||||||
Operating segments | Eastspring | Below BBB- and unrated | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Other government bonds | 2 | ||||||
Operating segments | Eastspring | Direct equities | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 128 | 61 | |||||
Operating segments | Eastspring | Collective investment schemes | Asia and Africa | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 2 | 2 | |||||
Unallocated to a segment | |||||||
Group assets and liabilities | |||||||
Corporate bonds | 2 | ||||||
Total debt securities | 2 | ||||||
Equity securities and holdings in collective investment schemes | 268 | ||||||
Other financial investments | 2,628 | 1,749 | |||||
Total financial investments | 2,630 | 2,017 | |||||
Cash and cash equivalents | 1,590 | 1,809 | |||||
Total investments | 4,220 | 3,826 | |||||
Unallocated to a segment | A+ to A- | |||||||
Group assets and liabilities | |||||||
Corporate bonds | 1 | ||||||
Unallocated to a segment | BBB+ to BBB- | |||||||
Group assets and liabilities | |||||||
Corporate bonds | $ 1 | ||||||
Unallocated to a segment | Direct equities | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | 266 | ||||||
Unallocated to a segment | Collective investment schemes | |||||||
Group assets and liabilities | |||||||
Equity securities and holdings in collective investment schemes | $ 2 | ||||||
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2023 are $ 2,001 million of lent securities and assets subject to repurchase agreements (31 December 2022: $ 1,571 million) The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Group assets and liabilities by
Group assets and liabilities by business types - debt securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [2] | ||
Financial investments | ||||||
Debt securities | [1] | $ 83,064 | $ 77,016 | [2] | $ 99,154 | |
Consolidated investment funds | Operating segments | ||||||
Financial investments | ||||||
Debt securities | $ 11,116 | $ 11,899 | ||||
[1] Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2023 are $ 2,001 million of lent securities and assets subject to repurchase agreements (31 December 2022: $ 1,571 million) The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Group assets and liabilities -
Group assets and liabilities - Accrued investment income and other debtors (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Group assets and liabilities | |||||
Interest receivable | $ 871 | $ 806 | |||
Other accrued income | 132 | 177 | |||
Total accrued investment income | 1,003 | 983 | [1] | $ 1,017 | |
Other debtors comprises: | |||||
Other debtors | 1,161 | 968 | [1] | $ 955 | |
Total accrued investment income and other debtors | 2,164 | 1,951 | |||
Analysed as: | |||||
Expected to be settled within one year | 2,048 | 1,882 | |||
Expected to be settled beyond one year | $ 116 | $ 69 | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Group assets and liabilities _2
Group assets and liabilities - Accruals, deferred income and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Group assets and liabilities | |||||
Accruals and deferred income | $ 244 | $ 200 | |||
Interest payable | 35 | 59 | |||
Other creditors | 3,756 | 2,607 | |||
Total accruals, deferred income and other creditors | $ 4,035 | $ 2,866 | [1] | $ 2,624 | |
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Group assets and liabilities _3
Group assets and liabilities - Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1],[2] | Dec. 31, 2020 | |
Cash and cash equivalents | ||||||
Cash | $ 1,964 | $ 1,878 | ||||
Cash equivalents | 2,787 | 3,636 | ||||
Cash and cash equivalents | 4,751 | 5,514 | [1],[2] | $ 7,170 | $ 8,018 | |
Held by the Group's holding and non-regulated entities and available for general use | 1,590 | 1,809 | ||||
Other funds not available for general use by the Group, including funds held for the benefit of policyholders | $ 3,161 | $ 3,705 | ||||
USD | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 42% | 45% | ||||
GBP | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 5% | 11% | ||||
HKD | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 6% | 5% | ||||
SGD | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 8% | 5% | ||||
MYR | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 14% | 14% | ||||
Other currencies | ||||||
Cash and cash equivalents | ||||||
Percentage of cash and cash equivalents held in respective currencies | 25% | 20% | ||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Group assets and liabilities _4
Group assets and liabilities - Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Group assets and liabilities | ||||
Balance at the beginning of the year | [1] | $ 206 | $ 234 | |
Additional provisions | 198 | 153 | ||
Unused amounts released | (10) | (19) | ||
Utilisation during the year | (172) | (154) | ||
Exchange differences | 2 | (8) | ||
Balance at the end of the year | 224 | 206 | [1] | |
Provisions for staff benefits | $ 215 | $ 199 | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Measurement of financial asse_3
Measurement of financial assets and liabilities - Carried at fair value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Jackson | |||
Financial instruments | |||
Financial assets available-for-sale | $ 266 | $ 683 | |
At fair value | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | $ 149,864 | 134,646 | |
Total financial instruments at fair value | $ 146,384 | $ 129,790 | |
Percentage of total (%) | 100% | 100% | |
At fair value | Loans | |||
Financial instruments | |||
Financial assets | $ 430 | $ 450 | |
At fair value | Equity securities and portfolio holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 64,753 | 57,679 | |
At fair value | Debt securities | |||
Financial instruments | |||
Financial assets | 83,064 | 76,949 | |
At fair value | Derivative assets | |||
Financial instruments | |||
Financial assets | 1,855 | 569 | |
At fair value | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (238) | (1,001) | |
At fair value | Investment contract liabilities without DPF | |||
Financial instruments | |||
Financial liabilities | (769) | (663) | |
At fair value | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (2,711) | (4,193) | |
At fair value | Level 1 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 121,733 | 106,177 | |
Total financial instruments at fair value | $ 119,022 | $ 101,984 | |
Percentage of total (%) | 81% | 78% | |
At fair value | Level 1 | Equity securities and portfolio holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | $ 56,327 | $ 49,725 | |
At fair value | Level 1 | Debt securities | |||
Financial instruments | |||
Financial assets | 64,004 | 57,148 | |
At fair value | Level 1 | Derivative assets | |||
Financial instruments | |||
Financial assets | 1,460 | 82 | |
At fair value | Level 1 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (58) | (778) | |
At fair value | Level 1 | Net asset value attributable to unit holders of consolidated investment funds | |||
Financial instruments | |||
Financial liabilities | (2,711) | (4,193) | |
At fair value | Level 2 | |||
Financial instruments | |||
Total financial investments, net of derivative liabilities | 25,227 | 27,604 | |
Total financial instruments at fair value | $ 24,458 | $ 26,941 | |
Percentage of total (%) | 17% | 21% | |
At fair value | Level 2 | Loans | |||
Financial instruments | |||
Financial assets | $ 430 | $ 447 | |
At fair value | Level 2 | Equity securities and portfolio holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | 5,562 | 7,130 | |
At fair value | Level 2 | Debt securities | |||
Financial instruments | |||
Financial assets | 19,020 | 19,763 | |
At fair value | Level 2 | Debt securities | Internal valuation | |||
Financial instruments | |||
Financial assets | 10 | 37 | |
At fair value | Level 2 | Derivative assets | |||
Financial instruments | |||
Financial assets | 395 | 487 | |
At fair value | Level 2 | Derivative liabilities | |||
Financial instruments | |||
Financial liabilities | (180) | (223) | |
At fair value | Level 2 | Investment contract liabilities without DPF | |||
Financial instruments | |||
Financial liabilities | (769) | (663) | |
At fair value | Level 3 | |||
Financial instruments | |||
Financial assets | 2,904 | 865 | 640 |
Total financial investments, net of derivative liabilities | 2,904 | 865 | |
Total financial instruments at fair value | $ 2,904 | $ 865 | |
Percentage of total (%) | 2% | 1% | |
At fair value | Level 3 | Loans | |||
Financial instruments | |||
Financial assets | $ 3 | 5 | |
At fair value | Level 3 | Equity securities and portfolio holdings in collective investment schemes | |||
Financial instruments | |||
Financial assets | $ 2,864 | 824 | 577 |
Total financial instruments at fair value | 2,863 | 823 | |
At fair value | Level 3 | Debt securities | |||
Financial instruments | |||
Financial assets | $ 40 | $ 38 | $ 58 |
Measurement of financial asse_4
Measurement of financial assets and liabilities - Valuation approach for level 3 (Details) - At fair value - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments | ||
Net financial instruments at fair value | $ 146,384 | $ 129,790 |
Level 3 | ||
Financial instruments | ||
Net financial instruments at fair value | $ 2,904 | $ 865 |
Percentage using valuation method | 2% | 1% |
Level 3 | With-profits and unit-linked funds | ||
Financial instruments | ||
Net financial instruments at fair value | $ 2,866 | $ 830 |
Level 3 | Other investments | ||
Financial instruments | ||
Net financial instruments at fair value | $ 38 | $ 35 |
Reasonably possible decrease in valuation (as a percent) | 10% | 10% |
Amount of reasonably possible decrease in valuation | $ (4) | $ (4) |
Level 3 | Equity-type securities | Internal valuation | ||
Financial instruments | ||
Net financial instruments at fair value | 1 | 1 |
Level 3 | Equity securities and portfolio holdings in collective investment schemes | ||
Financial instruments | ||
Net financial instruments at fair value | 2,863 | 823 |
Level 3 | Other sundry individual financial investments | ||
Financial instruments | ||
Net financial instruments at fair value | $ 40 | $ 41 |
Measurement of financial asse_5
Measurement of financial assets and liabilities - Transfers between levels (Details) - At fair value - Equity and debt securities $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financial instruments | |
Transfers from level 1 to level 2 | $ 505 |
Transfers from level 2 to level 1 | 1,708 |
Level 2 | |
Financial instruments | |
Transfers into level 3 | $ 1,489 |
Measurement of financial asse_6
Measurement of financial assets and liabilities - Level 3 financial instruments (Details) - At fair value - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | $ 450 | |
Assets at end of year | 430 | $ 450 |
Equity securities and portfolio holdings in collective investment schemes | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 57,679 | |
Assets at end of year | 64,753 | 57,679 |
Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 76,949 | |
Assets at end of year | 83,064 | 76,949 |
Level 3 | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 865 | 640 |
Total (losses) gains in income statement | 27 | (35) |
Total (losses) gains recorded in other comprehensive income | 6 | (9) |
Purchases and other additions | 524 | 305 |
Sales | (7) | (21) |
Transfers into level 3 | 1,489 | |
Transfers (out of) level 3 | (15) | |
Assets at end of year | 2,904 | 865 |
Net unrealised (losses) gains on financial instruments held at the end of the year | 29 | (12) |
Level 3 | Loans | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 3 | 5 |
Total (losses) gains in income statement | (2) | |
Sales | (3) | |
Assets at end of year | 3 | |
Net unrealised (losses) gains on financial instruments held at the end of the year | (2) | |
Level 3 | Equity securities and portfolio holdings in collective investment schemes | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 824 | 577 |
Total (losses) gains in income statement | 25 | (31) |
Total (losses) gains recorded in other comprehensive income | 6 | (6) |
Purchases and other additions | 524 | 305 |
Sales | (4) | (21) |
Transfers into level 3 | 1,489 | |
Assets at end of year | 2,864 | 824 |
Net unrealised (losses) gains on financial instruments held at the end of the year | 27 | (8) |
Level 3 | Debt securities | ||
Reconciliation of movements in level 3 assets measured at fair value | ||
Assets at beginning of year | 38 | 58 |
Total (losses) gains in income statement | 2 | (2) |
Total (losses) gains recorded in other comprehensive income | (3) | |
Transfers (out of) level 3 | (15) | |
Assets at end of year | 40 | 38 |
Net unrealised (losses) gains on financial instruments held at the end of the year | $ 2 | $ (2) |
Measurement of financial asse_7
Measurement of financial assets and liabilities - Assets and liabilities at amortized cost and their fair value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments | ||
Financial assets at amortised cost | $ 12,933 | $ 13,947 |
Total net financial assets (liabilities) at amortised cost | (5,208) | (5,152) |
Debt securities | ||
Financial instruments | ||
Financial assets at amortised cost | 67 | |
Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 148 | 140 |
Core structural borrowings of shareholder-financed businesses | ||
Financial instruments | ||
Financial liabilities at amortised cost | (3,933) | (4,261) |
Operational borrowings (excluding lease liabilities) | ||
Financial instruments | ||
Financial liabilities at amortised cost | (707) | (516) |
Obligations under funding, securities lending and sale and repurchase agreements | ||
Financial instruments | ||
Financial liabilities at amortised cost | (716) | (582) |
Assets and liabilities at amortised cost for which fair value is disclosed | ||
Financial instruments | ||
Total net financial assets (liabilities) at amortised cost | (4,903) | (4,659) |
Assets and liabilities at amortised cost for which fair value is disclosed | Debt securities | ||
Financial instruments | ||
Financial assets at amortised cost | 67 | |
Assets and liabilities at amortised cost for which fair value is disclosed | Loans | ||
Financial instruments | ||
Financial assets at amortised cost | 179 | 206 |
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 | (3,659) | (3,834) |
Assets and liabilities at amortised cost for which fair value is disclosed | Operational borrowings (excluding lease liabilities) | ||
Financial instruments | ||
Financial liabilities at amortised cost | (707) | (516) |
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 | $ (716) | $ (582) |
Measurement of financial asse_8
Measurement of financial assets and liabilities - Maturity of financial liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | $ 13,105 | $ 13,380 |
Contractual maturities | 14,208 | 14,628 |
Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 769 | 663 |
Contractual maturities | 852 | 755 |
Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 3,933 | 4,261 |
Contractual maturities | 4,936 | 5,375 |
Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 234 | 299 |
Contractual maturities | 251 | 341 |
Operational borrowings (excluding lease liabilities) | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 707 | 516 |
Contractual maturities | 707 | 516 |
Obligations under funding, securities lending and sale and repurchase agreements | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 716 | 582 |
Contractual maturities | 716 | 582 |
Accruals, deferred income and other liabilities | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 4,035 | 2,866 |
Contractual maturities | 4,035 | 2,866 |
Net asset value attributable to unit holders of consolidated investment funds | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Carrying value | 2,711 | 4,193 |
Contractual maturities | 2,711 | 4,193 |
Within one year | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 8,336 | 8,598 |
Within one year | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 155 | 11 |
Within one year | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 126 | 509 |
Within one year | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 76 | 101 |
Within one year | Operational borrowings (excluding lease liabilities) | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 707 | 516 |
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 | 716 | 582 |
Within one year | Accruals, deferred income and other liabilities | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 3,845 | 2,686 |
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 | 2,711 | 4,193 |
1 to 2 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 357 | 363 |
1 to 2 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 169 | 163 |
1 to 2 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 126 | 124 |
1 to 2 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 62 | 76 |
2 to 5 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 533 | 703 |
2 to 5 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 68 | 206 |
2 to 5 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 379 | 370 |
2 to 5 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 86 | 127 |
5 to 10 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 3,729 | 2,724 |
5 to 10 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 149 | 98 |
5 to 10 years | Core structural borrowings of shareholder-financed businesses | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 3,555 | 2,598 |
5 to 10 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 25 | 28 |
10 to 15 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 26 | 1,055 |
10 to 15 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 24 | 22 |
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 | |
10 to 15 years | Lease liabilities under IFRS 16 | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 2 | 9 |
15 to 20 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 9 | 8 |
15 to 20 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 9 | 8 |
Over 20 years | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 5 | 4 |
Over 20 years | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 5 | 4 |
No stated maturity | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 1,213 | 1,173 |
No stated maturity | Investment contract liabilities without DPF | ||
Contractual maturities of financial liabilities on an undiscounted cash flow basis | ||
Contractual maturities | 273 | 243 |
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 | $ 190 | $ 180 |
Measurement of financial asse_9
Measurement of financial assets and liabilities - Maturity analysis of derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Maturity analysis of derivatives | |||||
Derivative assets | $ 1,855 | $ 569 | [1] | $ 481 | |
Derivative liabilities | (238) | (1,001) | [1] | $ (262) | |
Net derivative position | $ 1,617 | $ (432) | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Measurement of financial ass_10
Measurement of financial assets and liabilities - Credit risk (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Financial assets at amortised cost | $ 12,933 | $ 13,947 |
All past due | ||
Financial assets | ||
Financial assets at amortised cost | 9 | 7 |
Accumulated impairment | ||
Financial assets | ||
Financial assets at amortised cost | $ 0 | $ 0 |
Measurement of financial ass_11
Measurement of financial assets and liabilities - Foreign exchange risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Measurement of financial assets and liabilities | ||
Amount of exchange gain (loss) recognised | $ (38) | $ 234 |
Measurement of financial ass_12
Measurement of financial assets and liabilities - Derecognition and collateral (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Securities lending and reverse repurchase agreements | ||
Collateral held in respect of reverse repurchase agreements | $ 3,623 | $ 3,244 |
Lent securities and assets subject to repurchase | 2,001 | 1,571 |
Cash and securities collateral held or pledged under repurchase and securities lending agreements | 2,042 | 1,679 |
Credit risk, over-the-counter derivative transactions | ||
Collateral and pledges | ||
Amount of assets pledged as collateral for liabilities | 457 | 62 |
Amount of collateral held | $ 1,586 | $ 234 |
Measurement of financial ass_13
Measurement of financial assets and liabilities - Offsetting assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | $ 5,436 | $ 3,631 |
Financial assets, financial instruments not offset in the consolidated statement of financial position | (150) | (179) |
Financial assets, cash collateral not offset in the consolidated statement of financial position | (1,529) | (217) |
Financial assets, securities collateral not offset in the consolidated statement of financial position | (3,615) | (3,174) |
Net amount of financial assets | 142 | 61 |
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (938) | (866) |
Financial liabilities, financial instruments not offset in the consolidated statement of financial position | 138 | 179 |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | 39 | 40 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 730 | 572 |
Net amount of financial liabilities | (31) | (75) |
Derivative liabilities | ||
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (225) | (284) |
Financial liabilities, financial instruments not offset in the consolidated statement of financial position | 138 | 179 |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | 57 | 27 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 6 | |
Net amount of financial liabilities | (30) | (72) |
Securities lending and repurchase agreements | ||
Financial liabilities: | ||
Financial liabilities, gross amount included in the consolidated statement of financial position | (713) | (582) |
Financial liabilities, cash collateral not offset in the consolidated statement of financial position | (18) | 13 |
Financial liabilities, securities collateral not offset in the consolidated statement of financial position | 730 | 566 |
Net amount of financial liabilities | (1) | (3) |
Derivative assets | ||
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | 1,820 | 457 |
Financial assets, financial instruments not offset in the consolidated statement of financial position | (138) | (179) |
Financial assets, cash collateral not offset in the consolidated statement of financial position | (1,529) | (217) |
Financial assets, securities collateral not offset in the consolidated statement of financial position | (11) | |
Net amount of financial assets | 142 | 61 |
Reverse repurchase agreements | ||
Financial assets: | ||
Financial assets, gross amount included in the consolidated statement of financial position | 3,616 | 3,174 |
Financial assets, financial instruments not offset in the consolidated statement of financial position | (12) | |
Financial assets, securities collateral not offset in the consolidated statement of financial position | $ (3,604) | $ (3,174) |
Insurance and reinsurance con_3
Insurance and reinsurance contracts - Analysis of portfolio of insurance and reinsurance (RI) contract assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Analysis of insurance portfolios | |||||
Insurance contract assets | $ 1,180 | $ 1,134 | [1] | $ 1,250 | [1] |
Reinsurance contracts assets | 2,426 | 1,856 | [1] | 2,787 | [1] |
Insurance contract liabilities | 139,840 | 126,242 | [1] | 149,798 | [1] |
Reinsurance contract liabilities | 1,151 | 1,175 | [1] | 1,254 | [1] |
Insurance | |||||
Analysis of insurance portfolios | |||||
Assets | 1,148 | 1,106 | 1,221 | ||
Liabilities | 139,839 | 126,239 | 149,798 | ||
Net liabilities (assets) | 138,691 | 125,133 | 148,577 | ||
Assets for insurance acquisition cash flows | 32 | 28 | 29 | ||
Liabilities for insurance acquisition cash flows | 1 | 3 | |||
Liability (asset) for insurance acquisition cash flows | (31) | (25) | (29) | ||
Insurance contract assets | 1,180 | 1,134 | 1,250 | ||
Insurance contract liabilities | 139,840 | 126,242 | 149,798 | ||
Insurance contract liabilities (assets) | 138,660 | 125,108 | 148,548 | ||
Insurance | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | 1,192 | 1,139 | 1,257 | ||
Liabilities | 161,818 | 145,342 | 167,801 | ||
Net liabilities (assets) | 160,626 | 144,203 | 166,544 | ||
Assets for insurance acquisition cash flows | 32 | 28 | 29 | ||
Liabilities for insurance acquisition cash flows | 1 | 3 | |||
Liability (asset) for insurance acquisition cash flows | (31) | (25) | (29) | ||
Insurance contract assets | 1,224 | 1,167 | 1,286 | ||
Insurance contract liabilities | 161,819 | 145,345 | 167,801 | ||
Insurance contract liabilities (assets) | 160,595 | 144,178 | 166,515 | ||
Insurance | Best estimate liabilities (BEL) | |||||
Analysis of insurance portfolios | |||||
Assets | 3,952 | 3,540 | 3,818 | ||
Liabilities | 120,115 | 107,582 | 126,438 | ||
Net liabilities (assets) | 116,163 | 104,042 | 122,620 | ||
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | 3,998 | 3,562 | 3,993 | ||
Liabilities | 139,673 | 124,297 | 142,146 | ||
Net liabilities (assets) | 135,675 | 120,735 | 138,153 | ||
Insurance | Risk adjustment for non-financial risk (RA) | |||||
Analysis of insurance portfolios | |||||
Assets | (631) | (505) | (547) | ||
Liabilities | 1,713 | 1,418 | 1,661 | ||
Net liabilities (assets) | 2,344 | 1,923 | 2,208 | ||
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | (630) | (502) | (575) | ||
Liabilities | 1,969 | 1,662 | 1,868 | ||
Net liabilities (assets) | 2,599 | 2,164 | 2,443 | ||
Insurance | Contractual service margin (CSM) | |||||
Analysis of insurance portfolios | |||||
Assets | (2,173) | (1,929) | (2,050) | ||
Liabilities | 18,011 | 17,239 | 21,699 | ||
Net liabilities (assets) | 20,184 | 19,168 | 23,749 | ||
Insurance | Contractual service margin (CSM) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | (2,176) | (1,921) | (2,161) | ||
Liabilities | 20,176 | 19,383 | 23,787 | ||
Net liabilities (assets) | 22,352 | 21,304 | 25,948 | ||
RI | |||||
Analysis of insurance portfolios | |||||
Assets | 2,426 | 1,856 | 2,787 | ||
Liabilities | 1,151 | 1,175 | 1,254 | ||
Net liabilities (assets) | (1,275) | (681) | (1,533) | ||
Reinsurance contracts assets | 2,426 | 1,856 | 2,787 | ||
Reinsurance contract liabilities | 1,151 | 1,175 | 1,254 | ||
Reinsurance contract liabilities (assets) | (1,275) | (681) | (1,533) | ||
RI | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | 2,569 | 2,000 | 2,940 | ||
Liabilities | 1,179 | 1,200 | 1,276 | ||
Net liabilities (assets) | (1,390) | (800) | (1,664) | ||
Reinsurance contracts assets | 2,569 | 2,000 | 2,940 | ||
Reinsurance contract liabilities | 1,179 | 1,200 | 1,276 | ||
Reinsurance contract liabilities (assets) | (1,390) | (800) | (1,664) | ||
RI | Best estimate liabilities (BEL) | |||||
Analysis of insurance portfolios | |||||
Assets | 1,175 | 508 | 1,752 | ||
Liabilities | 1,182 | 1,162 | 1,474 | ||
Net liabilities (assets) | 7 | 654 | (278) | ||
RI | Best estimate liabilities (BEL) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | 1,315 | 652 | 1,916 | ||
Liabilities | 1,222 | 1,193 | 1,501 | ||
Net liabilities (assets) | (93) | 541 | (415) | ||
RI | Risk adjustment for non-financial risk (RA) | |||||
Analysis of insurance portfolios | |||||
Assets | (84) | (39) | (15) | ||
Liabilities | (21) | (44) | (46) | ||
Net liabilities (assets) | 63 | (5) | (31) | ||
RI | Risk adjustment for non-financial risk (RA) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | (67) | (21) | 1 | ||
Liabilities | (24) | (47) | (49) | ||
Net liabilities (assets) | 43 | (26) | (50) | ||
RI | Contractual service margin (CSM) | |||||
Analysis of insurance portfolios | |||||
Assets | 1,335 | 1,387 | 1,050 | ||
Liabilities | (10) | 57 | (174) | ||
Net liabilities (assets) | (1,345) | (1,330) | (1,224) | ||
RI | Contractual service margin (CSM) | Including JVs and associates | |||||
Analysis of insurance portfolios | |||||
Assets | 1,321 | 1,369 | 1,023 | ||
Liabilities | (19) | 54 | (176) | ||
Net liabilities (assets) | $ (1,340) | $ (1,315) | $ (1,199) | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Insurance and reinsurance con_4
Insurance and reinsurance contracts - Adjusted shareholders' equity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||||
Shareholders' equity | $ 17,823 | $ 16,731 | [1] | $ 18,936 | [1] |
CSM, net of reinsurance | 21,012 | 19,989 | 24,749 | ||
Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders | 1,367 | 1,295 | 1,144 | ||
Less: Related tax adjustments | (2,856) | (2,804) | (3,058) | ||
Adjusted shareholders' equity | 37,346 | 35,211 | 41,771 | ||
Excluding JVs and associates | |||||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||||
Shareholders' equity | 15,883 | 14,472 | 16,238 | ||
CSM, net of reinsurance | 18,839 | 17,838 | 22,525 | ||
Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders | 1,367 | 1,295 | 1,144 | ||
Less: Related tax adjustments | (2,347) | (2,295) | (2,531) | ||
Adjusted shareholders' equity | 33,742 | 31,310 | 37,376 | ||
Group's share relating to JVs and associates | |||||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||||
Shareholders' equity | 1,940 | 2,259 | 2,698 | ||
CSM, net of reinsurance | 2,173 | 2,151 | 2,224 | ||
Less: Related tax adjustments | (509) | (509) | (527) | ||
Adjusted shareholders' equity | $ 3,604 | $ 3,901 | $ 4,395 | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Insurance and reinsurance con_5
Insurance and reinsurance contracts - Analysis of movements in insurance and reinsurance contract balances by measurement component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | $ (1,106) | $ (1,221) |
Opening liabilities | 126,239 | 149,798 |
Net opening balance at 1 Jan | 125,133 | 148,577 |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | 190 | 27 |
New contracts in the year | 7 | 3 |
Total changes that relate to future service | 197 | 30 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Release of risk adjustment to profit or loss | (228) | (169) |
Experience adjustments | (176) | (108) |
Total changes that relate to current service | (2,597) | (2,458) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 142 | 146 |
Insurance service result | (2,258) | (2,282) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 233 | 240 |
Other net finance (income) expense | 8,606 | (28,863) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,839 | (28,623) |
Total amount recognised in income statement | 6,581 | (30,905) |
Effect of movements in exchange rates | 210 | (2,150) |
Total amount recognised in comprehensive income | 6,791 | (33,055) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Closing assets | (1,148) | (1,106) |
Closing liabilities | 139,839 | 126,239 |
Net closing balance at 31 Dec | 138,691 | 125,133 |
Insurance | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (3,540) | (3,818) |
Opening liabilities | 107,582 | 126,438 |
Net opening balance at 1 Jan | 104,042 | 122,620 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (1,181) | 4,043 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | 196 | 79 |
New contracts in the year | (2,461) | (1,811) |
Total changes that relate to future service | (3,446) | 2,311 |
Changes that relate to current service | ||
Experience adjustments | (176) | (108) |
Total changes that relate to current service | (176) | (108) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 144 | 144 |
Insurance service result | (3,478) | 2,347 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (43) | 13 |
Other net finance (income) expense | 8,650 | (28,954) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,607 | (28,941) |
Total amount recognised in income statement | 5,129 | (26,594) |
Effect of movements in exchange rates | 225 | (1,595) |
Total amount recognised in comprehensive income | 5,354 | (28,189) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Closing assets | (3,952) | (3,540) |
Closing liabilities | 120,115 | 107,582 |
Net closing balance at 31 Dec | 116,163 | 104,042 |
Insurance | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 505 | 547 |
Opening liabilities | 1,418 | 1,661 |
Net opening balance at 1 Jan | 1,923 | 2,208 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 343 | (222) |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (6) | (52) |
New contracts in the year | 295 | 232 |
Total changes that relate to future service | 632 | (42) |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | (228) | (169) |
Total changes that relate to current service | (228) | (169) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (2) | 2 |
Insurance service result | 402 | (209) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 47 | 9 |
Other net finance (income) expense | (32) | (26) |
Total net finance (income) expense from insurance and reinsurance contracts | 15 | (17) |
Total amount recognised in income statement | 417 | (226) |
Effect of movements in exchange rates | 4 | (59) |
Total amount recognised in comprehensive income | 421 | (285) |
Cash flows | ||
Closing assets | 631 | 505 |
Closing liabilities | 1,713 | 1,418 |
Net closing balance at 31 Dec | 2,344 | 1,923 |
Insurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 1,929 | 2,050 |
Opening liabilities | 17,239 | 21,699 |
Net opening balance at 1 Jan | 19,168 | 23,749 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 838 | (3,821) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 3,011 | (2,239) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Total changes that relate to current service | (2,193) | (2,181) |
Changes that relate to past service | ||
Insurance service result | 818 | (4,420) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 229 | 218 |
Other net finance (income) expense | (12) | 117 |
Total net finance (income) expense from insurance and reinsurance contracts | 217 | 335 |
Total amount recognised in income statement | 1,035 | (4,085) |
Effect of movements in exchange rates | (19) | (496) |
Total amount recognised in comprehensive income | 1,016 | (4,581) |
Cash flows | ||
Closing assets | 2,173 | 1,929 |
Closing liabilities | 18,011 | 17,239 |
Net closing balance at 31 Dec | 20,184 | 19,168 |
RI | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,856) | (2,787) |
Opening liabilities | 1,175 | 1,254 |
Net opening balance at 1 Jan | (681) | (1,533) |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | (98) | (3) |
Total changes that relate to future service | (98) | (3) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Release of risk adjustment to profit or loss | 24 | 2 |
Experience adjustments | 45 | (87) |
Total changes that relate to current service | 272 | 83 |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (3) | 25 |
Insurance service result | 171 | 105 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (45) | (45) |
Other net finance (income) expense | (146) | 1,238 |
Total net finance (income) expense from insurance and reinsurance contracts | (191) | 1,193 |
Total amount recognised in income statement | (20) | 1,298 |
Effect of movements in exchange rates | (6) | |
Total amount recognised in comprehensive income | (20) | 1,292 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | (574) | (451) |
Other changes | 11 | |
Closing assets | (2,426) | (1,856) |
Closing liabilities | 1,151 | 1,175 |
Net closing balance at 31 Dec | (1,275) | (681) |
RI | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (508) | (1,752) |
Opening liabilities | 1,162 | 1,474 |
Net opening balance at 1 Jan | 654 | (278) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 57 | 280 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (98) | (3) |
New contracts in the year | 75 | (45) |
Total changes that relate to future service | 34 | 232 |
Changes that relate to current service | ||
Experience adjustments | 45 | (87) |
Total changes that relate to current service | 45 | (87) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (3) | 25 |
Insurance service result | 76 | 170 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 6 | (3) |
Other net finance (income) expense | (156) | 1,224 |
Total net finance (income) expense from insurance and reinsurance contracts | (150) | 1,221 |
Total amount recognised in income statement | (74) | 1,391 |
Effect of movements in exchange rates | 1 | (19) |
Total amount recognised in comprehensive income | (73) | 1,372 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | (574) | (451) |
Other changes | 11 | |
Closing assets | (1,175) | (508) |
Closing liabilities | 1,182 | 1,162 |
Net closing balance at 31 Dec | 7 | 654 |
RI | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 39 | 15 |
Opening liabilities | (44) | (46) |
Net opening balance at 1 Jan | (5) | (31) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 43 | 10 |
New contracts in the year | (5) | 1 |
Total changes that relate to future service | 38 | 11 |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | 24 | 2 |
Total changes that relate to current service | 24 | 2 |
Changes that relate to past service | ||
Insurance service result | 62 | 13 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (2) | (1) |
Other net finance (income) expense | 10 | 10 |
Total net finance (income) expense from insurance and reinsurance contracts | 8 | 9 |
Total amount recognised in income statement | 70 | 22 |
Effect of movements in exchange rates | (2) | 4 |
Total amount recognised in comprehensive income | 68 | 26 |
Cash flows | ||
Closing assets | 84 | 39 |
Closing liabilities | (21) | (44) |
Net closing balance at 31 Dec | 63 | (5) |
RI | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,387) | (1,050) |
Opening liabilities | 57 | (174) |
Net opening balance at 1 Jan | (1,330) | (1,224) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (100) | (290) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (170) | (246) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Total changes that relate to current service | 203 | 168 |
Changes that relate to past service | ||
Insurance service result | 33 | (78) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (49) | (41) |
Other net finance (income) expense | 4 | |
Total net finance (income) expense from insurance and reinsurance contracts | (49) | (37) |
Total amount recognised in income statement | (16) | (115) |
Effect of movements in exchange rates | 1 | 9 |
Total amount recognised in comprehensive income | (15) | (106) |
Cash flows | ||
Closing assets | (1,335) | (1,387) |
Closing liabilities | (10) | 57 |
Net closing balance at 31 Dec | $ (1,345) | $ (1,330) |
Insurance and reinsurance con_6
Insurance and reinsurance contracts - CSM transition approach (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | $ 125,133 | $ 148,577 |
Changes that relate to future service | ||
New contracts in the year | 7 | 3 |
Total changes that relate to future service | 197 | 30 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Insurance service result | (2,258) | (2,282) |
Net finance (income) expenses from insurance and reinsurance contracts | 8,839 | (28,623) |
Effect of movements in exchange rates | 210 | (2,150) |
Net closing balance at 31 Dec | 138,691 | 125,133 |
Insurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 19,168 | 23,749 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 838 | (3,821) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 3,011 | (2,239) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Insurance service result | 818 | (4,420) |
Net finance (income) expenses from insurance and reinsurance contracts | 217 | 335 |
Effect of movements in exchange rates | (19) | (496) |
Net closing balance at 31 Dec | 20,184 | 19,168 |
Insurance | Contracts under MRA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 822 | 944 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 143 | 18 |
Total changes that relate to future service | 143 | 18 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (135) | (122) |
Insurance service result | 8 | (104) |
Net finance (income) expenses from insurance and reinsurance contracts | 24 | 35 |
Effect of movements in exchange rates | (25) | (53) |
Net closing balance at 31 Dec | 829 | 822 |
Insurance | Contracts under FVA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 3,635 | 4,798 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 462 | (686) |
Total changes that relate to future service | 462 | (686) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (434) | (466) |
Insurance service result | 28 | (1,152) |
Net finance (income) expenses from insurance and reinsurance contracts | 3 | 40 |
Effect of movements in exchange rates | 8 | (51) |
Net closing balance at 31 Dec | 3,674 | 3,635 |
Insurance | Other contracts | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 14,711 | 18,007 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 233 | (3,153) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 2,406 | (1,571) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (1,624) | (1,593) |
Insurance service result | 782 | (3,164) |
Net finance (income) expenses from insurance and reinsurance contracts | 190 | 260 |
Effect of movements in exchange rates | (2) | (392) |
Net closing balance at 31 Dec | 15,681 | 14,711 |
RI | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (681) | (1,533) |
Changes that relate to future service | ||
Total changes that relate to future service | (98) | (3) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Insurance service result | 171 | 105 |
Net finance (income) expenses from insurance and reinsurance contracts | (191) | 1,193 |
Effect of movements in exchange rates | (6) | |
Net closing balance at 31 Dec | (1,275) | (681) |
RI | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,330) | (1,224) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (100) | (290) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (170) | (246) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Insurance service result | 33 | (78) |
Net finance (income) expenses from insurance and reinsurance contracts | (49) | (37) |
Effect of movements in exchange rates | 1 | 9 |
Net closing balance at 31 Dec | (1,345) | (1,330) |
RI | Contracts under FVA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (34) | (26) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (19) | (18) |
Total changes that relate to future service | (19) | (18) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 8 | 8 |
Insurance service result | (11) | (10) |
Net finance (income) expenses from insurance and reinsurance contracts | (1) | |
Effect of movements in exchange rates | 1 | 2 |
Net closing balance at 31 Dec | (45) | (34) |
RI | Other contracts | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,296) | (1,198) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (81) | (272) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (151) | (228) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 195 | 160 |
Insurance service result | 44 | (68) |
Net finance (income) expenses from insurance and reinsurance contracts | (48) | (37) |
Effect of movements in exchange rates | 7 | |
Net closing balance at 31 Dec | $ (1,300) | $ (1,296) |
Insurance and reinsurance con_7
Insurance and reinsurance contracts - Analysis of movements in insurance and reinsurance contract balances by remaining coverage and incurred claims (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | $ (1,106) | $ (1,221) |
Opening liabilities | 126,239 | 149,798 |
Net opening balance at 1 Jan | 125,133 | 148,577 |
Insurance revenue | ||
Contracts measured under the modified retrospective approach | (247) | (367) |
Contracts measured under the fair value approach | (733) | (1,083) |
Other contracts | (8,391) | (7,099) |
Total Insurance revenue | (9,371) | (8,549) |
Insurance service expense: | ||
Incurred claims and other directly attributable expenses | 4,029 | 3,638 |
Amortisation of insurance acquisition cash flows | 2,745 | 2,453 |
Losses or reversal of losses on onerous contracts | 197 | 30 |
Adjustments to liability for incurred claims | 142 | 146 |
Insurance service expense | 7,113 | 6,267 |
Insurance service result | (2,258) | (2,282) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,839 | (28,623) |
Total amount recognised in income statement | 6,581 | (30,905) |
Effect of movements in exchange rates | 210 | (2,150) |
Total amount recognised in comprehensive income | 6,791 | (33,055) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Closing assets | (1,148) | (1,106) |
Closing liabilities | 139,839 | 126,239 |
Net closing balance at 31 Dec | 138,691 | 125,133 |
RI | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | (1,856) | (2,787) |
Opening liabilities | 1,175 | 1,254 |
Net opening balance at 1 Jan | (681) | (1,533) |
Insurance service expense: | ||
Losses or reversal of losses on onerous contracts | (98) | (3) |
Adjustments to liability for incurred claims | (3) | 25 |
Insurance service expense | 171 | 105 |
Insurance service result | 171 | 105 |
Total net finance (income) expense from insurance and reinsurance contracts | (191) | 1,193 |
Total amount recognised in income statement | (20) | 1,298 |
Effect of movements in exchange rates | (6) | |
Total amount recognised in comprehensive income | (20) | 1,292 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | (574) | (451) |
Other changes | 11 | |
Closing assets | (2,426) | (1,856) |
Closing liabilities | 1,151 | 1,175 |
Net closing balance at 31 Dec | (1,275) | (681) |
Liabilities for remaining coverage Excluding loss component | Insurance | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | (1,200) | (1,308) |
Opening liabilities | 123,855 | 147,209 |
Net opening balance at 1 Jan | 122,655 | 145,901 |
Insurance revenue | ||
Contracts measured under the modified retrospective approach | (247) | (367) |
Contracts measured under the fair value approach | (733) | (1,083) |
Other contracts | (8,391) | (7,099) |
Total Insurance revenue | (9,371) | (8,549) |
Insurance service expense: | ||
Amortisation of insurance acquisition cash flows | 2,745 | 2,453 |
Insurance service expense | 2,745 | 2,453 |
Insurance service result | (6,626) | (6,096) |
Investment components and premium refunds | (7,095) | (6,895) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,792 | (28,605) |
Total amount recognised in income statement | (4,929) | (41,596) |
Effect of movements in exchange rates | 220 | (2,044) |
Total amount recognised in comprehensive income | (4,709) | (43,640) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Total cash flows | 18,024 | 20,326 |
Other changes | (236) | 68 |
Closing assets | (1,285) | (1,200) |
Closing liabilities | 137,019 | 123,855 |
Net closing balance at 31 Dec | 135,734 | 122,655 |
Liabilities for remaining coverage Excluding loss component | RI | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | (1,460) | (2,431) |
Opening liabilities | 1,220 | 1,314 |
Net opening balance at 1 Jan | (240) | (1,117) |
Insurance service expense: | ||
Insurance service expense | 640 | 487 |
Insurance service result | 640 | 487 |
Investment components and premium refunds | (1) | 179 |
Total net finance (income) expense from insurance and reinsurance contracts | (191) | 1,182 |
Total amount recognised in income statement | 448 | 1,848 |
Effect of movements in exchange rates | (1) | (10) |
Total amount recognised in comprehensive income | 447 | 1,838 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Total cash flows | (1,032) | (970) |
Other changes | 2 | 9 |
Closing assets | (2,023) | (1,460) |
Closing liabilities | 1,200 | 1,220 |
Net closing balance at 31 Dec | (823) | (240) |
Liabilities for remaining coverage loss component | Insurance | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | 14 | 17 |
Opening liabilities | 622 | 651 |
Net opening balance at 1 Jan | 636 | 668 |
Insurance service expense: | ||
Incurred claims and other directly attributable expenses | (42) | (41) |
Losses or reversal of losses on onerous contracts | 197 | 30 |
Insurance service expense | 155 | (11) |
Insurance service result | 155 | (11) |
Total net finance (income) expense from insurance and reinsurance contracts | 15 | (21) |
Total amount recognised in income statement | 170 | (32) |
Effect of movements in exchange rates | (4) | (15) |
Total amount recognised in comprehensive income | 166 | (47) |
Cash flows | ||
Other changes | 23 | 15 |
Closing assets | 20 | 14 |
Closing liabilities | 805 | 622 |
Net closing balance at 31 Dec | 825 | 636 |
Liabilities for remaining coverage loss component | RI | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | (29) | (32) |
Opening liabilities | (6) | (1) |
Net opening balance at 1 Jan | (35) | (33) |
Insurance service expense: | ||
Insurance service expense | (98) | (2) |
Insurance service result | (98) | (2) |
Total amount recognised in income statement | (98) | (2) |
Effect of movements in exchange rates | 2 | |
Total amount recognised in comprehensive income | (98) | |
Cash flows | ||
Other changes | (1) | (2) |
Closing assets | (119) | (29) |
Closing liabilities | (15) | (6) |
Net closing balance at 31 Dec | (134) | (35) |
Liabilities for incurred claims | Insurance | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | 80 | 70 |
Opening liabilities | 1,762 | 1,938 |
Net opening balance at 1 Jan | 1,842 | 2,008 |
Insurance service expense: | ||
Incurred claims and other directly attributable expenses | 4,071 | 3,679 |
Adjustments to liability for incurred claims | 142 | 146 |
Insurance service expense | 4,213 | 3,825 |
Insurance service result | 4,213 | 3,825 |
Investment components and premium refunds | 7,095 | 6,895 |
Total net finance (income) expense from insurance and reinsurance contracts | 32 | 3 |
Total amount recognised in income statement | 11,340 | 10,723 |
Effect of movements in exchange rates | (6) | (91) |
Total amount recognised in comprehensive income | 11,334 | 10,632 |
Cash flows | ||
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | (11,082) | (10,650) |
Other changes | 38 | (148) |
Closing assets | 117 | 80 |
Closing liabilities | 2,015 | 1,762 |
Net closing balance at 31 Dec | 2,132 | 1,842 |
Liabilities for incurred claims | RI | ||
Movements in insurance and reinsurance contract balances by remaining coverage and incurred claims | ||
Opening assets | (367) | (324) |
Opening liabilities | (39) | (59) |
Net opening balance at 1 Jan | (406) | (383) |
Insurance service expense: | ||
Insurance service expense | (371) | (380) |
Insurance service result | (371) | (380) |
Investment components and premium refunds | 1 | (179) |
Total net finance (income) expense from insurance and reinsurance contracts | 11 | |
Total amount recognised in income statement | (370) | (548) |
Effect of movements in exchange rates | 1 | 2 |
Total amount recognised in comprehensive income | (369) | (546) |
Cash flows | ||
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | 458 | 519 |
Other changes | (1) | 4 |
Closing assets | (284) | (367) |
Closing liabilities | (34) | (39) |
Net closing balance at 31 Dec | $ (318) | $ (406) |
Insurance and reinsurance con_8
Insurance and reinsurance contracts - Effect of insurance contracts initially recognised (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance | ||
Effect of insurance contracts initially recognised | ||
Onerous contracts initially recognised | $ 7 | $ 3 |
New contracts in the year | 7 | 3 |
Insurance | Insurance acquisition cash flows | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 4,365 | 2,416 |
Onerous contracts initially recognised | 101 | 49 |
New contracts in the year | 4,466 | 2,465 |
Insurance | Claims and other directly attributable expenses | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 17,125 | 12,153 |
Onerous contracts initially recognised | 348 | 420 |
New contracts in the year | 17,473 | 12,573 |
Insurance | Estimate of present value of expected future cash outflows | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 21,490 | 14,569 |
Onerous contracts initially recognised | 449 | 469 |
New contracts in the year | 21,939 | 15,038 |
Insurance | Estimate of present value of expected future cash inflows | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | (23,916) | (16,379) |
Onerous contracts initially recognised | (484) | (470) |
New contracts in the year | (24,400) | (16,849) |
Insurance | Risk adjustment for non-financial risk (RA) | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 253 | 228 |
Onerous contracts initially recognised | 42 | 4 |
New contracts in the year | 295 | 232 |
Insurance | Contractual service margin (CSM) | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 2,173 | 1,582 |
New contracts in the year | 2,173 | 1,582 |
RI | Estimate of present value of expected future cash outflows | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | 1,022 | 762 |
Onerous contracts initially recognised | (1) | |
New contracts in the year | 1,021 | 762 |
RI | Estimate of present value of expected future cash inflows | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | (946) | (813) |
Onerous contracts initially recognised | 6 | |
New contracts in the year | (946) | (807) |
RI | Risk adjustment for non-financial risk (RA) | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | (5) | 1 |
New contracts in the year | (5) | 1 |
RI | Contractual service margin (CSM) | ||
Effect of insurance contracts initially recognised | ||
Non-onerous contracts initially recognised | (71) | 50 |
Onerous contracts initially recognised | 1 | (6) |
New contracts in the year | $ (70) | $ 44 |
Insurance and reinsurance con_9
Insurance and reinsurance contracts - Analysis of movements in insurance and reinsurance contract balances including JVs and associates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contractual service margin (CSM) | Including JVs and associates | ||
Changes that relate to current service | ||
Release of CSM to profit or loss | $ (2,208) | |
Insurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,106) | $ (1,221) |
Opening liabilities | 126,239 | 149,798 |
Net opening balance at 1 Jan | 125,133 | 148,577 |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | 190 | 27 |
New contracts in the year | 7 | 3 |
Total changes that relate to future service | 197 | 30 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Release of risk adjustment to profit or loss | (228) | (169) |
Experience adjustments | (176) | (108) |
Total changes that relate to current service | (2,597) | (2,458) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 142 | 146 |
Insurance service result | (2,258) | (2,282) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 233 | 240 |
Other net finance (income) expense | 8,606 | (28,863) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,839 | (28,623) |
Total amount recognised in income statement | 6,581 | (30,905) |
Effect of movements in exchange rates | 210 | (2,150) |
Total amount recognised in comprehensive income | 6,791 | (33,055) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Closing assets | (1,148) | (1,106) |
Closing liabilities | 139,839 | 126,239 |
Net closing balance at 31 Dec | 138,691 | 125,133 |
Insurance | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,139) | (1,257) |
Opening liabilities | 145,342 | 167,801 |
Net opening balance at 1 Jan | 144,203 | 166,544 |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | 216 | 110 |
New contracts in the year | 59 | 76 |
Total changes that relate to future service | 275 | 186 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,414) | (2,413) |
Release of risk adjustment to profit or loss | (242) | (184) |
Experience adjustments | (170) | (119) |
Total changes that relate to current service | (2,826) | (2,716) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 127 | 134 |
Insurance service result | (2,424) | (2,396) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 517 | 489 |
Other net finance (income) expense | 10,347 | (28,507) |
Total net finance (income) expense from insurance and reinsurance contracts | 10,864 | (28,018) |
Total amount recognised in income statement | 8,440 | (30,414) |
Effect of movements in exchange rates | (114) | (3,829) |
Total amount recognised in comprehensive income | 8,326 | (34,243) |
Cash flows | ||
Premiums received net of ceding commissions paid | 26,224 | 27,916 |
Insurance acquisition cash flows | (4,802) | (3,690) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (13,144) | (12,241) |
Total cash flows | 8,278 | 11,985 |
Other changes | (181) | (83) |
Closing assets | (1,192) | (1,139) |
Closing liabilities | 161,818 | 145,342 |
Net closing balance at 31 Dec | 160,626 | 144,203 |
Insurance | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (3,540) | (3,818) |
Opening liabilities | 107,582 | 126,438 |
Net opening balance at 1 Jan | 104,042 | 122,620 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (1,181) | 4,043 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | 196 | 79 |
New contracts in the year | (2,461) | (1,811) |
Total changes that relate to future service | (3,446) | 2,311 |
Changes that relate to current service | ||
Experience adjustments | (176) | (108) |
Total changes that relate to current service | (176) | (108) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 144 | 144 |
Insurance service result | (3,478) | 2,347 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (43) | 13 |
Other net finance (income) expense | 8,650 | (28,954) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,607 | (28,941) |
Total amount recognised in income statement | 5,129 | (26,594) |
Effect of movements in exchange rates | 225 | (1,595) |
Total amount recognised in comprehensive income | 5,354 | (28,189) |
Cash flows | ||
Premiums received net of ceding commissions paid | 22,294 | 23,464 |
Insurance acquisition cash flows | (4,270) | (3,138) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (11,082) | (10,650) |
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Closing assets | (3,952) | (3,540) |
Closing liabilities | 120,115 | 107,582 |
Net closing balance at 31 Dec | 116,163 | 104,042 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (3,562) | (3,993) |
Opening liabilities | 124,297 | 142,146 |
Net opening balance at 1 Jan | 120,735 | 138,153 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (1,142) | 4,214 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | 224 | 162 |
New contracts in the year | (2,687) | (2,210) |
Total changes that relate to future service | (3,605) | 2,166 |
Changes that relate to current service | ||
Experience adjustments | (170) | (119) |
Total changes that relate to current service | (170) | (119) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 130 | 133 |
Insurance service result | (3,645) | 2,180 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 158 | 182 |
Other net finance (income) expense | 10,379 | (28,612) |
Total net finance (income) expense from insurance and reinsurance contracts | 10,537 | (28,430) |
Total amount recognised in income statement | 6,892 | (26,250) |
Effect of movements in exchange rates | (49) | (3,070) |
Total amount recognised in comprehensive income | 6,843 | (29,320) |
Cash flows | ||
Premiums received net of ceding commissions paid | 26,224 | 27,916 |
Insurance acquisition cash flows | (4,802) | (3,690) |
Claims and other insurance service expenses net of recoveries from reinsurance received | (13,144) | (12,241) |
Total cash flows | 8,278 | 11,985 |
Other changes | (181) | (83) |
Closing assets | (3,998) | (3,562) |
Closing liabilities | 139,673 | 124,297 |
Net closing balance at 31 Dec | 135,675 | 120,735 |
Insurance | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 505 | 547 |
Opening liabilities | 1,418 | 1,661 |
Net opening balance at 1 Jan | 1,923 | 2,208 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 343 | (222) |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (6) | (52) |
New contracts in the year | 295 | 232 |
Total changes that relate to future service | 632 | (42) |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | (228) | (169) |
Total changes that relate to current service | (228) | (169) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (2) | 2 |
Insurance service result | 402 | (209) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 47 | 9 |
Other net finance (income) expense | (32) | (26) |
Total net finance (income) expense from insurance and reinsurance contracts | 15 | (17) |
Total amount recognised in income statement | 417 | (226) |
Effect of movements in exchange rates | 4 | (59) |
Total amount recognised in comprehensive income | 421 | (285) |
Cash flows | ||
Closing assets | 631 | 505 |
Closing liabilities | 1,713 | 1,418 |
Net closing balance at 31 Dec | 2,344 | 1,923 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 502 | 575 |
Opening liabilities | 1,662 | 1,868 |
Net opening balance at 1 Jan | 2,164 | 2,443 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 341 | (226) |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (8) | (52) |
New contracts in the year | 317 | 259 |
Total changes that relate to future service | 650 | (19) |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | (242) | (184) |
Total changes that relate to current service | (242) | (184) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (3) | 1 |
Insurance service result | 405 | (202) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 52 | 13 |
Other net finance (income) expense | (20) | (12) |
Total net finance (income) expense from insurance and reinsurance contracts | 32 | 1 |
Total amount recognised in income statement | 437 | (201) |
Effect of movements in exchange rates | (2) | (78) |
Total amount recognised in comprehensive income | 435 | (279) |
Cash flows | ||
Closing assets | 630 | 502 |
Closing liabilities | 1,969 | 1,662 |
Net closing balance at 31 Dec | 2,599 | 2,164 |
Insurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 1,929 | 2,050 |
Opening liabilities | 17,239 | 21,699 |
Net opening balance at 1 Jan | 19,168 | 23,749 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 838 | (3,821) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 3,011 | (2,239) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Total changes that relate to current service | (2,193) | (2,181) |
Changes that relate to past service | ||
Insurance service result | 818 | (4,420) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 229 | 218 |
Other net finance (income) expense | (12) | 117 |
Total net finance (income) expense from insurance and reinsurance contracts | 217 | 335 |
Total amount recognised in income statement | 1,035 | (4,085) |
Effect of movements in exchange rates | (19) | (496) |
Total amount recognised in comprehensive income | 1,016 | (4,581) |
Cash flows | ||
Closing assets | 2,173 | 1,929 |
Closing liabilities | 18,011 | 17,239 |
Net closing balance at 31 Dec | 20,184 | 19,168 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 1,921 | 2,161 |
Opening liabilities | 19,383 | 23,787 |
Net opening balance at 1 Jan | 21,304 | 25,948 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 801 | (3,988) |
New contracts in the year | 2,429 | 2,027 |
Total changes that relate to future service | 3,230 | (1,961) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,414) | (2,413) |
Total changes that relate to current service | (2,414) | (2,413) |
Changes that relate to past service | ||
Insurance service result | 816 | (4,374) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 307 | 294 |
Other net finance (income) expense | (12) | 117 |
Total net finance (income) expense from insurance and reinsurance contracts | 295 | 411 |
Total amount recognised in income statement | 1,111 | (3,963) |
Effect of movements in exchange rates | (63) | (681) |
Total amount recognised in comprehensive income | 1,048 | (4,644) |
Cash flows | ||
Closing assets | 2,176 | 1,921 |
Closing liabilities | 20,176 | 19,383 |
Net closing balance at 31 Dec | 22,352 | 21,304 |
RI | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,856) | (2,787) |
Opening liabilities | 1,175 | 1,254 |
Net opening balance at 1 Jan | (681) | (1,533) |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | (98) | (3) |
Total changes that relate to future service | (98) | (3) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Release of risk adjustment to profit or loss | 24 | 2 |
Experience adjustments | 45 | (87) |
Total changes that relate to current service | 272 | 83 |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (3) | 25 |
Insurance service result | 171 | 105 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (45) | (45) |
Other net finance (income) expense | (146) | 1,238 |
Total net finance (income) expense from insurance and reinsurance contracts | (191) | 1,193 |
Total amount recognised in income statement | (20) | 1,298 |
Effect of movements in exchange rates | (6) | |
Total amount recognised in comprehensive income | (20) | 1,292 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | (574) | (451) |
Other changes | 11 | |
Closing assets | (2,426) | (1,856) |
Closing liabilities | 1,151 | 1,175 |
Net closing balance at 31 Dec | (1,275) | (681) |
RI | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (2,000) | (2,940) |
Opening liabilities | 1,200 | 1,276 |
Net opening balance at 1 Jan | (800) | (1,664) |
Changes that relate to future service | ||
Changes in estimates that result in losses or reversal of losses on onerous contracts | (93) | (17) |
New contracts in the year | (1) | |
Total changes that relate to future service | (94) | (17) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 206 | 171 |
Release of risk adjustment to profit or loss | 27 | 5 |
Experience adjustments | 50 | (80) |
Total changes that relate to current service | 283 | 96 |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 28 | |
Insurance service result | 189 | 107 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (53) | (53) |
Other net finance (income) expense | (146) | 1,229 |
Total net finance (income) expense from insurance and reinsurance contracts | (199) | 1,176 |
Total amount recognised in income statement | (10) | 1,283 |
Effect of movements in exchange rates | 3 | 13 |
Total amount recognised in comprehensive income | (7) | 1,296 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,137) | (1,013) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 554 | 567 |
Total cash flows | (583) | (446) |
Other changes | 14 | |
Closing assets | (2,569) | (2,000) |
Closing liabilities | 1,179 | 1,200 |
Net closing balance at 31 Dec | (1,390) | (800) |
RI | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (508) | (1,752) |
Opening liabilities | 1,162 | 1,474 |
Net opening balance at 1 Jan | 654 | (278) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 57 | 280 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (98) | (3) |
New contracts in the year | 75 | (45) |
Total changes that relate to future service | 34 | 232 |
Changes that relate to current service | ||
Experience adjustments | 45 | (87) |
Total changes that relate to current service | 45 | (87) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | (3) | 25 |
Insurance service result | 76 | 170 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 6 | (3) |
Other net finance (income) expense | (156) | 1,224 |
Total net finance (income) expense from insurance and reinsurance contracts | (150) | 1,221 |
Total amount recognised in income statement | (74) | 1,391 |
Effect of movements in exchange rates | 1 | (19) |
Total amount recognised in comprehensive income | (73) | 1,372 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,032) | (970) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 458 | 519 |
Total cash flows | (574) | (451) |
Other changes | 11 | |
Closing assets | (1,175) | (508) |
Closing liabilities | 1,182 | 1,162 |
Net closing balance at 31 Dec | 7 | 654 |
RI | Best estimate liabilities (BEL) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (652) | (1,916) |
Opening liabilities | 1,193 | 1,501 |
Net opening balance at 1 Jan | 541 | (415) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 62 | 284 |
Changes in estimates that result in losses or reversal of losses on onerous contracts | (93) | (17) |
New contracts in the year | 86 | (37) |
Total changes that relate to future service | 55 | 230 |
Changes that relate to current service | ||
Experience adjustments | 50 | (80) |
Total changes that relate to current service | 50 | (80) |
Changes that relate to past service | ||
Adjustments to assets/liabilities for incurred claims | 28 | |
Insurance service result | 105 | 178 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (3) | (8) |
Other net finance (income) expense | (155) | 1,215 |
Total net finance (income) expense from insurance and reinsurance contracts | (158) | 1,207 |
Total amount recognised in income statement | (53) | 1,385 |
Effect of movements in exchange rates | 2 | 3 |
Total amount recognised in comprehensive income | (51) | 1,388 |
Cash flows | ||
Premiums received net of ceding commissions paid | (1,137) | (1,013) |
Claims and other insurance service expenses net of recoveries from reinsurance received | 554 | 567 |
Total cash flows | (583) | (446) |
Other changes | 14 | |
Closing assets | (1,315) | (652) |
Closing liabilities | 1,222 | 1,193 |
Net closing balance at 31 Dec | (93) | 541 |
RI | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 39 | 15 |
Opening liabilities | (44) | (46) |
Net opening balance at 1 Jan | (5) | (31) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 43 | 10 |
New contracts in the year | (5) | 1 |
Total changes that relate to future service | 38 | 11 |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | 24 | 2 |
Total changes that relate to current service | 24 | 2 |
Changes that relate to past service | ||
Insurance service result | 62 | 13 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (2) | (1) |
Other net finance (income) expense | 10 | 10 |
Total net finance (income) expense from insurance and reinsurance contracts | 8 | 9 |
Total amount recognised in income statement | 70 | 22 |
Effect of movements in exchange rates | (2) | 4 |
Total amount recognised in comprehensive income | 68 | 26 |
Cash flows | ||
Closing assets | 84 | 39 |
Closing liabilities | (21) | (44) |
Net closing balance at 31 Dec | 63 | (5) |
RI | Risk adjustment for non-financial risk (RA) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | 21 | (1) |
Opening liabilities | (47) | (49) |
Net opening balance at 1 Jan | (26) | (50) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 43 | 10 |
New contracts in the year | (6) | |
Total changes that relate to future service | 37 | 10 |
Changes that relate to current service | ||
Release of risk adjustment to profit or loss | 27 | 5 |
Total changes that relate to current service | 27 | 5 |
Changes that relate to past service | ||
Insurance service result | 64 | 15 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (3) | (6) |
Other net finance (income) expense | 9 | 10 |
Total net finance (income) expense from insurance and reinsurance contracts | 6 | 4 |
Total amount recognised in income statement | 70 | 19 |
Effect of movements in exchange rates | (1) | 5 |
Total amount recognised in comprehensive income | 69 | 24 |
Cash flows | ||
Closing assets | 67 | 21 |
Closing liabilities | (24) | (47) |
Net closing balance at 31 Dec | 43 | (26) |
RI | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,387) | (1,050) |
Opening liabilities | 57 | (174) |
Net opening balance at 1 Jan | (1,330) | (1,224) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (100) | (290) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (170) | (246) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Total changes that relate to current service | 203 | 168 |
Changes that relate to past service | ||
Insurance service result | 33 | (78) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (49) | (41) |
Other net finance (income) expense | 4 | |
Total net finance (income) expense from insurance and reinsurance contracts | (49) | (37) |
Total amount recognised in income statement | (16) | (115) |
Effect of movements in exchange rates | 1 | 9 |
Total amount recognised in comprehensive income | (15) | (106) |
Cash flows | ||
Closing assets | (1,335) | (1,387) |
Closing liabilities | (10) | 57 |
Net closing balance at 31 Dec | (1,345) | (1,330) |
RI | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Opening assets | (1,369) | (1,023) |
Opening liabilities | 54 | (176) |
Net opening balance at 1 Jan | (1,315) | (1,199) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (105) | (294) |
New contracts in the year | (81) | 37 |
Total changes that relate to future service | (186) | (257) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 206 | 171 |
Total changes that relate to current service | 206 | 171 |
Changes that relate to past service | ||
Insurance service result | 20 | (86) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (47) | (39) |
Other net finance (income) expense | 4 | |
Total net finance (income) expense from insurance and reinsurance contracts | (47) | (35) |
Total amount recognised in income statement | (27) | (121) |
Effect of movements in exchange rates | 2 | 5 |
Total amount recognised in comprehensive income | (25) | (116) |
Cash flows | ||
Closing assets | (1,321) | (1,369) |
Closing liabilities | (19) | 54 |
Net closing balance at 31 Dec | $ (1,340) | $ (1,315) |
Insurance and reinsurance co_10
Insurance and reinsurance contracts - CSM transition approach (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contractual service margin (CSM) | Including JVs and associates | ||
Changes that relate to current service | ||
Release of CSM to profit or loss | $ (2,208) | |
Insurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 125,133 | $ 148,577 |
Changes that relate to future service | ||
New contracts in the year | 7 | 3 |
Total changes that relate to future service | 197 | 30 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Insurance service result | (2,258) | (2,282) |
Net finance (income) expenses from insurance and reinsurance contracts | 8,839 | (28,623) |
Effect of movements in exchange rates | 210 | (2,150) |
Net closing balance at 31 Dec | 138,691 | 125,133 |
Insurance | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 144,203 | 166,544 |
Changes that relate to future service | ||
New contracts in the year | 59 | 76 |
Total changes that relate to future service | 275 | 186 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,414) | (2,413) |
Insurance service result | (2,424) | (2,396) |
Net finance (income) expenses from insurance and reinsurance contracts | 10,864 | (28,018) |
Effect of movements in exchange rates | (114) | (3,829) |
Net closing balance at 31 Dec | 160,626 | 144,203 |
Insurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 19,168 | 23,749 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 838 | (3,821) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 3,011 | (2,239) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,193) | (2,181) |
Insurance service result | 818 | (4,420) |
Net finance (income) expenses from insurance and reinsurance contracts | 217 | 335 |
Effect of movements in exchange rates | (19) | (496) |
Net closing balance at 31 Dec | 20,184 | 19,168 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 21,304 | 25,948 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 801 | (3,988) |
New contracts in the year | 2,429 | 2,027 |
Total changes that relate to future service | 3,230 | (1,961) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (2,414) | (2,413) |
Insurance service result | 816 | (4,374) |
Net finance (income) expenses from insurance and reinsurance contracts | 295 | 411 |
Effect of movements in exchange rates | (63) | (681) |
Net closing balance at 31 Dec | 22,352 | 21,304 |
Insurance | Contracts under MRA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 822 | 944 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 143 | 18 |
Total changes that relate to future service | 143 | 18 |
Changes that relate to current service | ||
Release of CSM to profit or loss | (135) | (122) |
Insurance service result | 8 | (104) |
Net finance (income) expenses from insurance and reinsurance contracts | 24 | 35 |
Effect of movements in exchange rates | (25) | (53) |
Net closing balance at 31 Dec | 829 | 822 |
Insurance | Contracts under MRA | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 2,033 | 2,467 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 117 | (92) |
Total changes that relate to future service | 117 | (92) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (247) | (250) |
Insurance service result | (130) | (342) |
Net finance (income) expenses from insurance and reinsurance contracts | 66 | 83 |
Effect of movements in exchange rates | (47) | (175) |
Net closing balance at 31 Dec | 1,922 | 2,033 |
Insurance | Contracts under FVA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 3,635 | 4,798 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 462 | (686) |
Total changes that relate to future service | 462 | (686) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (434) | (466) |
Insurance service result | 28 | (1,152) |
Net finance (income) expenses from insurance and reinsurance contracts | 3 | 40 |
Effect of movements in exchange rates | 8 | (51) |
Net closing balance at 31 Dec | 3,674 | 3,635 |
Insurance | Contracts under FVA | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 4,102 | 5,355 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 496 | (707) |
Total changes that relate to future service | 496 | (707) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (458) | (511) |
Insurance service result | 38 | (1,218) |
Net finance (income) expenses from insurance and reinsurance contracts | 9 | 54 |
Effect of movements in exchange rates | (6) | (89) |
Net closing balance at 31 Dec | 4,143 | 4,102 |
Insurance | Other contracts | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 14,711 | 18,007 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 233 | (3,153) |
New contracts in the year | 2,173 | 1,582 |
Total changes that relate to future service | 2,406 | (1,571) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (1,624) | (1,593) |
Insurance service result | 782 | (3,164) |
Net finance (income) expenses from insurance and reinsurance contracts | 190 | 260 |
Effect of movements in exchange rates | (2) | (392) |
Net closing balance at 31 Dec | 15,681 | 14,711 |
Insurance | Other contracts | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 15,169 | 18,126 |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | 188 | (3,189) |
New contracts in the year | 2,429 | 2,027 |
Total changes that relate to future service | 2,617 | (1,162) |
Changes that relate to current service | ||
Release of CSM to profit or loss | (1,709) | (1,652) |
Insurance service result | 908 | (2,814) |
Net finance (income) expenses from insurance and reinsurance contracts | 220 | 274 |
Effect of movements in exchange rates | (10) | (417) |
Net closing balance at 31 Dec | 16,287 | 15,169 |
RI | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (681) | (1,533) |
Changes that relate to future service | ||
Total changes that relate to future service | (98) | (3) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Insurance service result | 171 | 105 |
Net finance (income) expenses from insurance and reinsurance contracts | (191) | 1,193 |
Effect of movements in exchange rates | (6) | |
Net closing balance at 31 Dec | (1,275) | (681) |
RI | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (800) | (1,664) |
Changes that relate to future service | ||
New contracts in the year | (1) | |
Total changes that relate to future service | (94) | (17) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 206 | 171 |
Insurance service result | 189 | 107 |
Net finance (income) expenses from insurance and reinsurance contracts | (199) | 1,176 |
Effect of movements in exchange rates | 3 | 13 |
Net closing balance at 31 Dec | (1,390) | (800) |
RI | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,330) | (1,224) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (100) | (290) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (170) | (246) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 203 | 168 |
Insurance service result | 33 | (78) |
Net finance (income) expenses from insurance and reinsurance contracts | (49) | (37) |
Effect of movements in exchange rates | 1 | 9 |
Net closing balance at 31 Dec | (1,345) | (1,330) |
RI | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,315) | (1,199) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (105) | (294) |
New contracts in the year | (81) | 37 |
Total changes that relate to future service | (186) | (257) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 206 | 171 |
Insurance service result | 20 | (86) |
Net finance (income) expenses from insurance and reinsurance contracts | (47) | (35) |
Effect of movements in exchange rates | 2 | 5 |
Net closing balance at 31 Dec | (1,340) | (1,315) |
RI | Contracts under FVA | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (34) | (26) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (19) | (18) |
Total changes that relate to future service | (19) | (18) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 8 | 8 |
Insurance service result | (11) | (10) |
Net finance (income) expenses from insurance and reinsurance contracts | (1) | |
Effect of movements in exchange rates | 1 | 2 |
Net closing balance at 31 Dec | (45) | (34) |
RI | Contracts under FVA | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (55) | (46) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (17) | (22) |
Total changes that relate to future service | (17) | (22) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 10 | 10 |
Insurance service result | (7) | (12) |
Net finance (income) expenses from insurance and reinsurance contracts | (2) | (1) |
Effect of movements in exchange rates | 1 | 4 |
Net closing balance at 31 Dec | (63) | (55) |
RI | Other contracts | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,296) | (1,198) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (81) | (272) |
New contracts in the year | (70) | 44 |
Total changes that relate to future service | (151) | (228) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 195 | 160 |
Insurance service result | 44 | (68) |
Net finance (income) expenses from insurance and reinsurance contracts | (48) | (37) |
Effect of movements in exchange rates | 7 | |
Net closing balance at 31 Dec | (1,300) | (1,296) |
RI | Other contracts | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,260) | (1,153) |
Changes that relate to future service | ||
Changes in estimates that adjust the CSM | (88) | (272) |
New contracts in the year | (81) | 37 |
Total changes that relate to future service | (169) | (235) |
Changes that relate to current service | ||
Release of CSM to profit or loss | 196 | 161 |
Insurance service result | 27 | (74) |
Net finance (income) expenses from insurance and reinsurance contracts | (45) | (34) |
Effect of movements in exchange rates | 1 | 1 |
Net closing balance at 31 Dec | $ (1,277) | $ (1,260) |
Insurance and reinsurance co_11
Insurance and reinsurance contracts - Additional analysis of insurance and reinsurance contract balances by segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | $ 125,133 | $ 148,577 |
Insurance service result | (2,258) | (2,282) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 233 | 240 |
Other net finance (income) expense | 8,606 | (28,863) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,839 | (28,623) |
Total amount recognised in income statement | 6,581 | (30,905) |
Effect of movements in exchange rates | 210 | (2,150) |
Total amount recognised in comprehensive income | 6,791 | (33,055) |
Cash flows | ||
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Net closing balance at 31 Dec | 138,691 | 125,133 |
Insurance | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 144,203 | 166,544 |
Insurance service result | (2,424) | (2,396) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 517 | 489 |
Other net finance (income) expense | 10,347 | (28,507) |
Total net finance (income) expense from insurance and reinsurance contracts | 10,864 | (28,018) |
Total amount recognised in income statement | 8,440 | (30,414) |
Effect of movements in exchange rates | (114) | (3,829) |
Total amount recognised in comprehensive income | 8,326 | (34,243) |
Cash flows | ||
Total cash flows | 8,278 | 11,985 |
Other changes | (181) | (83) |
Net closing balance at 31 Dec | 160,626 | 144,203 |
Insurance | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 12,837 | 11,273 |
Insurance service result | (98) | (73) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 227 | 206 |
Other net finance (income) expense | 692 | 87 |
Total net finance (income) expense from insurance and reinsurance contracts | 919 | 293 |
Total amount recognised in income statement | 821 | 220 |
Effect of movements in exchange rates | (259) | (1,019) |
Total amount recognised in comprehensive income | 562 | (799) |
Cash flows | ||
Total cash flows | 1,434 | 2,363 |
Net closing balance at 31 Dec | 14,833 | 12,837 |
Insurance | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 62,686 | 80,186 |
Insurance service result | (755) | (696) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (1) | 37 |
Other net finance (income) expense | 3,646 | (21,912) |
Total net finance (income) expense from insurance and reinsurance contracts | 3,645 | (21,875) |
Total amount recognised in income statement | 2,890 | (22,571) |
Effect of movements in exchange rates | (11) | (153) |
Total amount recognised in comprehensive income | 2,879 | (22,724) |
Cash flows | ||
Total cash flows | 4,509 | 5,216 |
Other changes | (1) | 8 |
Net closing balance at 31 Dec | 70,073 | 62,686 |
Insurance | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 3,277 | 3,720 |
Insurance service result | (146) | (117) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 43 | 37 |
Other net finance (income) expense | 145 | 26 |
Total net finance (income) expense from insurance and reinsurance contracts | 188 | 63 |
Total amount recognised in income statement | 42 | (54) |
Effect of movements in exchange rates | 46 | (307) |
Total amount recognised in comprehensive income | 88 | (361) |
Cash flows | ||
Total cash flows | (186) | (69) |
Other changes | (37) | (13) |
Net closing balance at 31 Dec | 3,142 | 3,277 |
Insurance | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 8,027 | 8,342 |
Insurance service result | (254) | (242) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 100 | 95 |
Other net finance (income) expense | 498 | (77) |
Total net finance (income) expense from insurance and reinsurance contracts | 598 | 18 |
Total amount recognised in income statement | 344 | (224) |
Effect of movements in exchange rates | (336) | (454) |
Total amount recognised in comprehensive income | 8 | (678) |
Cash flows | ||
Total cash flows | 364 | 366 |
Other changes | (5) | (3) |
Net closing balance at 31 Dec | 8,394 | 8,027 |
Insurance | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 33,903 | 36,643 |
Insurance service result | (598) | (546) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 6 | 31 |
Other net finance (income) expense | 2,657 | (4,956) |
Total net finance (income) expense from insurance and reinsurance contracts | 2,663 | (4,925) |
Total amount recognised in income statement | 2,065 | (5,471) |
Effect of movements in exchange rates | 621 | 117 |
Total amount recognised in comprehensive income | 2,686 | (5,354) |
Cash flows | ||
Total cash flows | 884 | 2,684 |
Other changes | (54) | (70) |
Net closing balance at 31 Dec | 37,419 | 33,903 |
Insurance | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 23,473 | 26,380 |
Insurance service result | (573) | (722) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 142 | 83 |
Other net finance (income) expense | 2,709 | (1,675) |
Total net finance (income) expense from insurance and reinsurance contracts | 2,851 | (1,592) |
Total amount recognised in income statement | 2,278 | (2,314) |
Effect of movements in exchange rates | (175) | (2,013) |
Total amount recognised in comprehensive income | 2,103 | (4,327) |
Cash flows | ||
Total cash flows | 1,273 | 1,425 |
Other changes | (84) | (5) |
Net closing balance at 31 Dec | 26,765 | 23,473 |
Insurance | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 104,042 | 122,620 |
Insurance service result | (3,478) | 2,347 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (43) | 13 |
Other net finance (income) expense | 8,650 | (28,954) |
Total net finance (income) expense from insurance and reinsurance contracts | 8,607 | (28,941) |
Total amount recognised in income statement | 5,129 | (26,594) |
Effect of movements in exchange rates | 225 | (1,595) |
Total amount recognised in comprehensive income | 5,354 | (28,189) |
Cash flows | ||
Total cash flows | 6,942 | 9,676 |
Other changes | (175) | (65) |
Net closing balance at 31 Dec | 116,163 | 104,042 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 120,735 | 138,153 |
Insurance service result | (3,645) | 2,180 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 158 | 182 |
Other net finance (income) expense | 10,379 | (28,612) |
Total net finance (income) expense from insurance and reinsurance contracts | 10,537 | (28,430) |
Total amount recognised in income statement | 6,892 | (26,250) |
Effect of movements in exchange rates | (49) | (3,070) |
Total amount recognised in comprehensive income | 6,843 | (29,320) |
Cash flows | ||
Total cash flows | 8,278 | 11,985 |
Other changes | (181) | (83) |
Net closing balance at 31 Dec | 135,675 | 120,735 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 10,989 | |
Cash flows | ||
Net closing balance at 31 Dec | 13,029 | 10,989 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 54,347 | |
Cash flows | ||
Net closing balance at 31 Dec | 60,761 | 54,347 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 2,032 | |
Cash flows | ||
Net closing balance at 31 Dec | 2,197 | 2,032 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 5,452 | |
Cash flows | ||
Net closing balance at 31 Dec | 5,910 | 5,452 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 28,752 | |
Cash flows | ||
Net closing balance at 31 Dec | 31,770 | 28,752 |
Insurance | Best estimate liabilities (BEL) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 19,163 | |
Cash flows | ||
Net closing balance at 31 Dec | 22,008 | 19,163 |
Insurance | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 1,923 | 2,208 |
Insurance service result | 402 | (209) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 47 | 9 |
Other net finance (income) expense | (32) | (26) |
Total net finance (income) expense from insurance and reinsurance contracts | 15 | (17) |
Total amount recognised in income statement | 417 | (226) |
Effect of movements in exchange rates | 4 | (59) |
Total amount recognised in comprehensive income | 421 | (285) |
Cash flows | ||
Net closing balance at 31 Dec | 2,344 | 1,923 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 2,164 | 2,443 |
Insurance service result | 405 | (202) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 52 | 13 |
Other net finance (income) expense | (20) | (12) |
Total net finance (income) expense from insurance and reinsurance contracts | 32 | 1 |
Total amount recognised in income statement | 437 | (201) |
Effect of movements in exchange rates | (2) | (78) |
Total amount recognised in comprehensive income | 435 | (279) |
Cash flows | ||
Net closing balance at 31 Dec | 2,599 | 2,164 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 149 | |
Cash flows | ||
Net closing balance at 31 Dec | 152 | 149 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 482 | |
Cash flows | ||
Net closing balance at 31 Dec | 776 | 482 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 199 | |
Cash flows | ||
Net closing balance at 31 Dec | 206 | 199 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 334 | |
Cash flows | ||
Net closing balance at 31 Dec | 357 | 334 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 629 | |
Cash flows | ||
Net closing balance at 31 Dec | 687 | 629 |
Insurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 371 | |
Cash flows | ||
Net closing balance at 31 Dec | 421 | 371 |
Insurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 19,168 | 23,749 |
Insurance service result | 818 | (4,420) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 229 | 218 |
Other net finance (income) expense | (12) | 117 |
Total net finance (income) expense from insurance and reinsurance contracts | 217 | 335 |
Total amount recognised in income statement | 1,035 | (4,085) |
Effect of movements in exchange rates | (19) | (496) |
Total amount recognised in comprehensive income | 1,016 | (4,581) |
Cash flows | ||
Net closing balance at 31 Dec | 20,184 | 19,168 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 21,304 | 25,948 |
Insurance service result | 816 | (4,374) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 307 | 294 |
Other net finance (income) expense | (12) | 117 |
Total net finance (income) expense from insurance and reinsurance contracts | 295 | 411 |
Total amount recognised in income statement | 1,111 | (3,963) |
Effect of movements in exchange rates | (63) | (681) |
Total amount recognised in comprehensive income | 1,048 | (4,644) |
Cash flows | ||
Net closing balance at 31 Dec | 22,352 | 21,304 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 1,699 | |
Cash flows | ||
Net closing balance at 31 Dec | 1,652 | 1,699 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 7,857 | |
Cash flows | ||
Net closing balance at 31 Dec | 8,536 | 7,857 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 1,046 | |
Cash flows | ||
Net closing balance at 31 Dec | 739 | 1,046 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 2,241 | |
Cash flows | ||
Net closing balance at 31 Dec | 2,127 | 2,241 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 4,522 | |
Cash flows | ||
Net closing balance at 31 Dec | 4,962 | 4,522 |
Insurance | Contractual service margin (CSM) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 3,939 | |
Cash flows | ||
Net closing balance at 31 Dec | 4,336 | 3,939 |
Reinsurance | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (681) | (1,533) |
Insurance service result | 171 | 105 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (45) | (45) |
Other net finance (income) expense | (146) | 1,238 |
Total net finance (income) expense from insurance and reinsurance contracts | (191) | 1,193 |
Total amount recognised in income statement | (20) | 1,298 |
Effect of movements in exchange rates | (6) | |
Total amount recognised in comprehensive income | (20) | 1,292 |
Cash flows | ||
Total cash flows | (574) | (451) |
Other changes | 11 | |
Net closing balance at 31 Dec | (1,275) | (681) |
Reinsurance | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (800) | (1,664) |
Insurance service result | 189 | 107 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (53) | (53) |
Other net finance (income) expense | (146) | 1,229 |
Total net finance (income) expense from insurance and reinsurance contracts | (199) | 1,176 |
Total amount recognised in income statement | (10) | 1,283 |
Effect of movements in exchange rates | 3 | 13 |
Total amount recognised in comprehensive income | (7) | 1,296 |
Cash flows | ||
Total cash flows | (583) | (446) |
Other changes | 14 | |
Net closing balance at 31 Dec | (1,390) | (800) |
Reinsurance | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (22) | (25) |
Insurance service result | 8 | 6 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (1) | (1) |
Total net finance (income) expense from insurance and reinsurance contracts | (1) | (1) |
Total amount recognised in income statement | 7 | 5 |
Effect of movements in exchange rates | 3 | 1 |
Total amount recognised in comprehensive income | 10 | 6 |
Cash flows | ||
Total cash flows | (9) | (3) |
Net closing balance at 31 Dec | (21) | (22) |
Reinsurance | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (923) | (1,663) |
Insurance service result | 135 | 63 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (38) | (45) |
Other net finance (income) expense | (154) | 1,246 |
Total net finance (income) expense from insurance and reinsurance contracts | (192) | 1,201 |
Total amount recognised in income statement | (57) | 1,264 |
Effect of movements in exchange rates | (2) | 4 |
Total amount recognised in comprehensive income | (59) | 1,268 |
Cash flows | ||
Total cash flows | (407) | (535) |
Other changes | 7 | |
Net closing balance at 31 Dec | (1,389) | (923) |
Reinsurance | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 5 | 8 |
Insurance service result | 2 | |
Net finance (income) expense from insurance and reinsurance contracts | ||
Other net finance (income) expense | (6) | (1) |
Total net finance (income) expense from insurance and reinsurance contracts | (6) | (1) |
Total amount recognised in income statement | (4) | (1) |
Effect of movements in exchange rates | (1) | (1) |
Total amount recognised in comprehensive income | (5) | (2) |
Cash flows | ||
Total cash flows | 9 | (1) |
Net closing balance at 31 Dec | 9 | 5 |
Reinsurance | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 22 | 15 |
Insurance service result | 9 | 10 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 1 | 1 |
Other net finance (income) expense | 1 | |
Total net finance (income) expense from insurance and reinsurance contracts | 1 | 2 |
Total amount recognised in income statement | 10 | 12 |
Effect of movements in exchange rates | (1) | |
Total amount recognised in comprehensive income | 9 | 12 |
Cash flows | ||
Total cash flows | (6) | (5) |
Net closing balance at 31 Dec | 25 | 22 |
Reinsurance | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 178 | 59 |
Insurance service result | 17 | 4 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (8) | (1) |
Other net finance (income) expense | 1 | (6) |
Total net finance (income) expense from insurance and reinsurance contracts | (7) | (7) |
Total amount recognised in income statement | 10 | (3) |
Effect of movements in exchange rates | (1) | 4 |
Total amount recognised in comprehensive income | 9 | 1 |
Cash flows | ||
Total cash flows | (181) | 118 |
Net closing balance at 31 Dec | 6 | 178 |
Reinsurance | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (60) | (58) |
Insurance service result | 18 | 24 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (7) | (7) |
Other net finance (income) expense | 13 | (11) |
Total net finance (income) expense from insurance and reinsurance contracts | 6 | (18) |
Total amount recognised in income statement | 24 | 6 |
Effect of movements in exchange rates | 5 | 5 |
Total amount recognised in comprehensive income | 29 | 11 |
Cash flows | ||
Total cash flows | 11 | (20) |
Other changes | 7 | |
Net closing balance at 31 Dec | (20) | (60) |
Reinsurance | Best estimate liabilities (BEL) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 654 | (278) |
Insurance service result | 76 | 170 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | 6 | (3) |
Other net finance (income) expense | (156) | 1,224 |
Total net finance (income) expense from insurance and reinsurance contracts | (150) | 1,221 |
Total amount recognised in income statement | (74) | 1,391 |
Effect of movements in exchange rates | 1 | (19) |
Total amount recognised in comprehensive income | (73) | 1,372 |
Cash flows | ||
Total cash flows | (574) | (451) |
Other changes | 11 | |
Net closing balance at 31 Dec | 7 | 654 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 541 | (415) |
Insurance service result | 105 | 178 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (3) | (8) |
Other net finance (income) expense | (155) | 1,215 |
Total net finance (income) expense from insurance and reinsurance contracts | (158) | 1,207 |
Total amount recognised in income statement | (53) | 1,385 |
Effect of movements in exchange rates | 2 | 3 |
Total amount recognised in comprehensive income | (51) | 1,388 |
Cash flows | ||
Total cash flows | (583) | (446) |
Other changes | 14 | |
Net closing balance at 31 Dec | (93) | 541 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 2 | |
Cash flows | ||
Net closing balance at 31 Dec | 4 | 2 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 465 | |
Cash flows | ||
Net closing balance at 31 Dec | (44) | 465 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 8 | |
Cash flows | ||
Net closing balance at 31 Dec | 22 | 8 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 31 | |
Cash flows | ||
Net closing balance at 31 Dec | 26 | 31 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 40 | |
Cash flows | ||
Net closing balance at 31 Dec | (146) | 40 |
Reinsurance | Best estimate liabilities (BEL) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (5) | |
Cash flows | ||
Net closing balance at 31 Dec | 45 | (5) |
Reinsurance | Risk adjustment for non-financial risk (RA) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (5) | (31) |
Insurance service result | 62 | 13 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (2) | (1) |
Other net finance (income) expense | 10 | 10 |
Total net finance (income) expense from insurance and reinsurance contracts | 8 | 9 |
Total amount recognised in income statement | 70 | 22 |
Effect of movements in exchange rates | (2) | 4 |
Total amount recognised in comprehensive income | 68 | 26 |
Cash flows | ||
Net closing balance at 31 Dec | 63 | (5) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (26) | (50) |
Insurance service result | 64 | 15 |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (3) | (6) |
Other net finance (income) expense | 9 | 10 |
Total net finance (income) expense from insurance and reinsurance contracts | 6 | 4 |
Total amount recognised in income statement | 70 | 19 |
Effect of movements in exchange rates | (1) | 5 |
Total amount recognised in comprehensive income | 69 | 24 |
Cash flows | ||
Net closing balance at 31 Dec | 43 | (26) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (3) | |
Cash flows | ||
Net closing balance at 31 Dec | (3) | (3) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 17 | |
Cash flows | ||
Net closing balance at 31 Dec | 84 | 17 |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Indonesia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (3) | |
Cash flows | ||
Net closing balance at 31 Dec | (7) | (3) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (7) | |
Cash flows | ||
Net closing balance at 31 Dec | (7) | (7) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (3) | |
Cash flows | ||
Net closing balance at 31 Dec | 3 | (3) |
Reinsurance | Risk adjustment for non-financial risk (RA) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (27) | |
Cash flows | ||
Net closing balance at 31 Dec | (27) | (27) |
Reinsurance | Contractual service margin (CSM) | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,330) | (1,224) |
Insurance service result | 33 | (78) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (49) | (41) |
Other net finance (income) expense | 4 | |
Total net finance (income) expense from insurance and reinsurance contracts | (49) | (37) |
Total amount recognised in income statement | (16) | (115) |
Effect of movements in exchange rates | 1 | 9 |
Total amount recognised in comprehensive income | (15) | (106) |
Cash flows | ||
Net closing balance at 31 Dec | (1,345) | (1,330) |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,315) | (1,199) |
Insurance service result | 20 | (86) |
Net finance (income) expense from insurance and reinsurance contracts | ||
Accretion of interest on GMM contracts | (47) | (39) |
Other net finance (income) expense | 4 | |
Total net finance (income) expense from insurance and reinsurance contracts | (47) | (35) |
Total amount recognised in income statement | (27) | (121) |
Effect of movements in exchange rates | 2 | 5 |
Total amount recognised in comprehensive income | (25) | (116) |
Cash flows | ||
Net closing balance at 31 Dec | (1,340) | (1,315) |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | CPL | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (21) | |
Cash flows | ||
Net closing balance at 31 Dec | (22) | (21) |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | Hong Kong | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (1,405) | |
Cash flows | ||
Net closing balance at 31 Dec | (1,429) | (1,405) |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | Indonesia | ||
Cash flows | ||
Net closing balance at 31 Dec | (6) | |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | Malaysia | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (2) | |
Cash flows | ||
Net closing balance at 31 Dec | 6 | (2) |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | Singapore | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | 141 | |
Cash flows | ||
Net closing balance at 31 Dec | 149 | 141 |
Reinsurance | Contractual service margin (CSM) | Including JVs and associates | Growth markets and other | ||
Analysis of movements in insurance and reinsurance contract balances by measurement component | ||
Net opening balance at 1 Jan | (28) | |
Cash flows | ||
Net closing balance at 31 Dec | $ (38) | $ (28) |
Insurance and reinsurance co_12
Insurance and reinsurance contracts - Insurance contracts - expected recognition of the CSM (Details) - Insurance - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | $ 138,691 | $ 125,133 | $ 148,577 |
Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 160,626 | 144,203 | 166,544 |
Contractual service margin (CSM) | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 20,184 | 19,168 | 23,749 |
Contractual service margin (CSM) | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2,041 | 1,981 | |
Contractual service margin (CSM) | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,780 | 1,751 | |
Contractual service margin (CSM) | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,586 | 1,555 | |
Contractual service margin (CSM) | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,412 | 1,385 | |
Contractual service margin (CSM) | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,283 | 1,217 | |
Contractual service margin (CSM) | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 4,604 | 4,306 | |
Contractual service margin (CSM) | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2,924 | 2,705 | |
Contractual service margin (CSM) | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,781 | 1,666 | |
Contractual service margin (CSM) | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2,773 | 2,602 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2,168 | 2,136 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 226 | 219 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 190 | 175 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 165 | 155 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 146 | 138 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 127 | 122 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 474 | 454 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 293 | 292 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 195 | 201 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 352 | 380 | |
Contractual service margin (CSM) | Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 22,352 | 21,304 | $ 25,948 |
Contractual service margin (CSM) | Including JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2,267 | 2,200 | |
Contractual service margin (CSM) | Including JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,970 | 1,926 | |
Contractual service margin (CSM) | Including JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,751 | 1,710 | |
Contractual service margin (CSM) | Including JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,558 | 1,523 | |
Contractual service margin (CSM) | Including JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,410 | 1,339 | |
Contractual service margin (CSM) | Including JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 5,078 | 4,760 | |
Contractual service margin (CSM) | Including JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 3,217 | 2,997 | |
Contractual service margin (CSM) | Including JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1,976 | 1,867 | |
Contractual service margin (CSM) | Including JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | $ 3,125 | $ 2,982 |
Insurance and reinsurance co_13
Insurance and reinsurance contracts - Reinsurance contracts - expected recognition of the CSM (Details) - RI - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | $ (1,275) | $ (681) | $ (1,533) |
Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (1,390) | (800) | (1,664) |
Contractual service margin (CSM) | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (1,345) | (1,330) | (1,224) |
Contractual service margin (CSM) | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (177) | (122) | |
Contractual service margin (CSM) | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (132) | (111) | |
Contractual service margin (CSM) | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (103) | (100) | |
Contractual service margin (CSM) | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (85) | (89) | |
Contractual service margin (CSM) | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (74) | (80) | |
Contractual service margin (CSM) | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (268) | (301) | |
Contractual service margin (CSM) | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (173) | (188) | |
Contractual service margin (CSM) | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (113) | (119) | |
Contractual service margin (CSM) | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (220) | (220) | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 5 | 15 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (2) | (2) | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2 | ||
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1 | 2 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1 | 2 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1 | 2 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 3 | 5 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 2 | 3 | |
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | 1 | ||
Contractual service margin (CSM) | Group's share relating to JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (1) | ||
Contractual service margin (CSM) | Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (1,340) | (1,315) | $ (1,199) |
Contractual service margin (CSM) | Including JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (179) | (124) | |
Contractual service margin (CSM) | Including JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (132) | (109) | |
Contractual service margin (CSM) | Including JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (102) | (98) | |
Contractual service margin (CSM) | Including JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (84) | (87) | |
Contractual service margin (CSM) | Including JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (73) | (78) | |
Contractual service margin (CSM) | Including JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (265) | (296) | |
Contractual service margin (CSM) | Including JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (171) | (185) | |
Contractual service margin (CSM) | Including JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | (113) | (118) | |
Contractual service margin (CSM) | Including JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Net liabilities (assets) | $ (221) | $ (220) |
Insurance and reinsurance co_14
Insurance and reinsurance contracts - Insurance contract liabilities - expected cash flows (discounted) (Details) - Insurance - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | $ 139,839 | $ 126,239 | $ 149,798 |
Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 161,818 | 145,342 | 167,801 |
Best estimate liabilities (BEL) | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 120,115 | 107,582 | 126,438 |
Best estimate liabilities (BEL) | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2,256 | (622) | |
Best estimate liabilities (BEL) | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2,262 | 1,040 | |
Best estimate liabilities (BEL) | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4,269 | 3,021 | |
Best estimate liabilities (BEL) | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 5,272 | 4,441 | |
Best estimate liabilities (BEL) | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4,436 | 4,652 | |
Best estimate liabilities (BEL) | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 18,726 | 20,131 | |
Best estimate liabilities (BEL) | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 16,374 | 16,507 | |
Best estimate liabilities (BEL) | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 14,560 | 12,873 | |
Best estimate liabilities (BEL) | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 35,210 | 30,891 | |
Best estimate liabilities (BEL) | No stated maturity | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 16,750 | 14,648 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 19,558 | 16,715 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | (477) | (847) | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 94 | 81 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 516 | 477 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 973 | 732 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 828 | 1,146 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 3,076 | 2,832 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2,703 | 2,309 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2,016 | 1,674 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 6,287 | 5,064 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | No stated maturity | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 3,542 | 3,247 | |
Best estimate liabilities (BEL) | Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 139,673 | 124,297 | $ 142,146 |
Best estimate liabilities (BEL) | Including JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1,779 | (1,469) | |
Best estimate liabilities (BEL) | Including JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2,356 | 1,121 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4,785 | 3,498 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 6,245 | 5,173 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 5,264 | 5,798 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 21,802 | 22,963 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 19,077 | 18,816 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 16,576 | 14,547 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 41,497 | 35,955 | |
Best estimate liabilities (BEL) | Including JVs and associates | No stated maturity | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | $ 20,292 | $ 17,895 |
Insurance and reinsurance co_15
Insurance and reinsurance contracts - Reinsurance contract liabilities - expected cash flows (discounted) (Details) - RI - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | $ 1,151 | $ 1,175 | $ 1,254 |
Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1,179 | 1,200 | 1,276 |
Best estimate liabilities (BEL) | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1,182 | 1,162 | 1,474 |
Best estimate liabilities (BEL) | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 820 | 136 | |
Best estimate liabilities (BEL) | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 58 | 693 | |
Best estimate liabilities (BEL) | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 54 | ||
Best estimate liabilities (BEL) | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 26 | 4 | |
Best estimate liabilities (BEL) | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4 | (15) | |
Best estimate liabilities (BEL) | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | (3) | (67) | |
Best estimate liabilities (BEL) | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4 | 1 | |
Best estimate liabilities (BEL) | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 5 | 24 | |
Best estimate liabilities (BEL) | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 214 | 386 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 40 | 30 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 15 | 23 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1 | 2 | |
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 2 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 3 | ||
Best estimate liabilities (BEL) | Group's share relating to JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 19 | (1) | |
Best estimate liabilities (BEL) | Including JVs and associates | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 1,222 | 1,193 | $ 1,501 |
Best estimate liabilities (BEL) | Including JVs and associates | 1 year or less | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 835 | 159 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 1 year to 2 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 58 | 695 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 2 years to 3 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 54 | 2 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 3 years to 4 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 26 | 5 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 4 years to 5 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 4 | (14) | |
Best estimate liabilities (BEL) | Including JVs and associates | After 5 years to 10 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | (2) | (65) | |
Best estimate liabilities (BEL) | Including JVs and associates | After 10 years to 15 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 6 | 1 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 15 years to 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | 8 | 25 | |
Best estimate liabilities (BEL) | Including JVs and associates | After 20 years | |||
Insurance/Reinsurance contracts - expected recognition | |||
Liabilities | $ 233 | $ 385 |
Insurance and reinsurance co_16
Insurance and reinsurance contracts - Products and determining contract liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | ||
Fair value of underlying items for contracts with direct participation features | $ 127,570 | $ 115,489 |
RI | A- and above by Standard & Poor's | ||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | ||
Maximum exposure to credit risk percentage | 98% | 95% |
Intangible assets - Goodwill re
Intangible assets - Goodwill reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Changes in goodwill: | ||||
Carrying value at beginning of period | [1] | $ 890 | $ 907 | |
Exchange differences | 6 | (17) | ||
Carrying value at end of period | 896 | 890 | [1] | |
Accumulated impairment | ||||
Changes in goodwill: | ||||
Carrying value at beginning of period | 0 | |||
Carrying value at end of period | $ 0 | $ 0 | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Intangible assets - Impairment
Intangible assets - Impairment testing (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | ||
Cash-generating units | |||||
Goodwill | $ 896 | $ 890 | [1] | $ 907 | |
Percentage of reasonably possible decrease in cash flow projections | 10% | ||||
Percentage of reasonably possible decrease in growth rate | 1% | ||||
Percentage of reasonably possible increase in discount rate | 1% | ||||
Impairment loss resulting from reasonably possible changes in assumptions, goodwill | $ 0 | ||||
Thailand Asset Management | |||||
Cash-generating units | |||||
Goodwill | $ 449 | $ 445 | |||
Period of discounted cash flow valuation | 5 years | ||||
Constant growth rate | 3.50% | 3.50% | |||
Pre-tax discount rate | 9% | 9% | |||
UOB Life | |||||
Cash-generating units | |||||
Goodwill | $ 238 | $ 234 | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Intangible Assets - Other intan
Intangible Assets - Other intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | [1] | $ 3,884 | $ 4,015 | |
Additions | 498 | 289 | ||
Amortisation charge | (379) | (349) | ||
Disposals and transfers | (6) | (6) | ||
Exchange differences and other movements | (11) | (65) | ||
Intangible assets balance at the end of the period | 3,986 | 3,884 | [1] | |
Cost/Gross amount | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | 5,665 | 5,462 | ||
Intangible assets balance at the end of the period | 6,122 | 5,665 | ||
Accumulated amortisation | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | (1,781) | (1,447) | ||
Intangible assets balance at the end of the period | (2,136) | (1,781) | ||
Distribution rights | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | 3,630 | 3,782 | ||
Additions | 415 | 206 | ||
Amortisation charge | (330) | (301) | ||
Exchange differences and other movements | (6) | (57) | ||
Intangible assets balance at the end of the period | 3,709 | 3,630 | ||
Distribution rights | Cost/Gross amount | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | 5,176 | 5,037 | ||
Intangible assets balance at the end of the period | 5,585 | 5,176 | ||
Distribution rights | Accumulated amortisation | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | (1,546) | (1,255) | ||
Intangible assets balance at the end of the period | (1,876) | (1,546) | ||
Other intangibles | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | 254 | 233 | ||
Additions | 83 | 83 | ||
Amortisation charge | (49) | (48) | ||
Disposals and transfers | (6) | (6) | ||
Exchange differences and other movements | (5) | (8) | ||
Intangible assets balance at the end of the period | 277 | 254 | ||
Other intangibles | Cost/Gross amount | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | 489 | 425 | ||
Intangible assets balance at the end of the period | 537 | 489 | ||
Other intangibles | Accumulated amortisation | ||||
Present value of acquired other intangible assets | ||||
Intangible assets balance at the beginning of the period | (235) | (192) | ||
Intangible assets balance at the end of the period | $ (260) | $ (235) | ||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Borrowings - Core Structural Bo
Borrowings - Core Structural Borrowings (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Jul. 10, 2023 EUR (€) | Jan. 20, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Core structural borrowings of shareholder-financed businesses | |||||||||
Borrowings | |||||||||
Borrowings | $ 3,933 | $ 4,261 | $ 6,127 | $ 6,633 | |||||
US$750m 4.875% Notes | |||||||||
Borrowings | |||||||||
Borrowings | 750 | 750 | |||||||
Notional amount | $ 750 | $ 750 | |||||||
Borrowings, interest rate | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | ||||
EUR20m Medium Term Notes 2023 | |||||||||
Borrowings | |||||||||
Borrowings | $ 21 | ||||||||
Notional amount | € | € 20 | € 20 | |||||||
GBP435m 6.125% Notes 2031 | |||||||||
Borrowings | |||||||||
Borrowings | $ 551 | $ 520 | |||||||
Notional amount | £ | £ 435 | £ 435 | |||||||
Borrowings, interest rate | 6.125% | 6.125% | 6.125% | 6.125% | 6.125% | ||||
US$1,000m 2.95% Notes 2033 | |||||||||
Borrowings | |||||||||
Borrowings | $ 996 | $ 995 | |||||||
Notional amount | $ 1,000 | $ 1,000 | |||||||
Borrowings, interest rate | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% | ||||
Senior debt: GBP300m 6.875% Bonds 2023 | |||||||||
Borrowings | |||||||||
Borrowings | $ 361 | ||||||||
Notional amount | £ | £ 300 | £ 300 | |||||||
Borrowings, interest rate | 6.875% | 6.875% | 6.875% | ||||||
Senior debt: GBP250m 5.875% Bonds 2029 | |||||||||
Borrowings | |||||||||
Borrowings | $ 301 | $ 281 | |||||||
Notional amount | £ | £ 250 | £ 250 | |||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | ||||
Senior debt: US$1,000m 3.125% Notes 2030 | |||||||||
Borrowings | |||||||||
Borrowings | $ 988 | $ 987 | |||||||
Notional amount | $ 1,000 | $ 1,000 | |||||||
Borrowings, interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||
Senior debt; US$350m 3.625% Notes 2032 | |||||||||
Borrowings | |||||||||
Borrowings | $ 347 | $ 346 | |||||||
Notional amount | $ 350 | $ 350 | |||||||
Borrowings, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% |
Borrowings - Operational borrow
Borrowings - Operational borrowings (Details) - Operational borrowings - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Borrowings | $ 941 | $ 815 |
Borrowings in respect of short-term fixed income securities programmes (commercial paper) | ||
Borrowings | ||
Borrowings | 699 | 501 |
Lease liabilities under IFRS 16 | ||
Borrowings | ||
Borrowings | 234 | 299 |
Other borrowings | ||
Borrowings | ||
Borrowings | $ 8 | $ 15 |
Risk and sensitivity analysis -
Risk and sensitivity analysis - Sensitivity to key market risks (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Risk and sensitivity analysis | |||||
Exchange movements arising during the year | $ (135) | $ (613) | [1] | $ (180) | [1] |
Profit (loss) for the year after tax | 1,712 | (997) | [2] | (2,813) | |
Shareholders' equity | 17,823 | 16,731 | [3] | $ 18,936 | [3] |
Including JVs and associates | |||||
Risk and sensitivity analysis | |||||
Contractual service margin | 21,012 | ||||
Insurance segments | |||||
Risk and sensitivity analysis | |||||
Profit (loss) for the year after tax | 2,099 | (494) | |||
Insurance segments | Including JVs and associates | |||||
Risk and sensitivity analysis | |||||
Contractual service margin | 21,012 | 19,989 | |||
Foreign exchange risk | |||||
Risk and sensitivity analysis | |||||
Exchange movements arising during the year | $ (124) | $ (603) | |||
Changes of foreign exchange rates recorded as part of other comprehensive income, percentage of opening equity | 1% | 3% | |||
Reasonably possible increase in assumption (as a percent) | 10% | 10% | |||
Reasonably possible decrease in assumption (as a percent) | 10% | 10% | |||
Net effect on shareholders' equity from decrease in assumption | $ 1,256 | $ 1,182 | |||
Net effect on shareholders' equity from increase in assumption | (1,028) | (967) | |||
Net effect on profit after tax from decrease in assumption | 152 | 49 | |||
Net effect on profit after tax from increase in assumption | $ (124) | $ (40) | |||
Interest rate risk | Insurance segments | |||||
Risk and sensitivity analysis | |||||
Reasonably possible increase in assumption (as a percent) | 1% | 1% | |||
Reasonably possible decrease in assumption (as a percent) | 0.50% | 0.50% | |||
Floor for movements in interest rates in sensitivity analysis | 0% | 0% | |||
Net effect on financial assets from decrease in assumption | $ 6,815 | $ 5,873 | |||
Net effect on financial assets from increase in assumption | (12,004) | (10,362) | |||
Net effect on net insurance contract liabilities (including CSM) from decrease in assumption | (7,332) | (6,120) | |||
Net effect on net insurance contract liabilities (including CSM) from increase in assumption | 12,191 | 10,295 | |||
Net effect on shareholders' equity from decrease in assumption | (328) | (127) | |||
Net effect on shareholders' equity from increase in assumption | 24 | (165) | |||
Net effect on profit after tax from decrease in assumption | (328) | (127) | |||
Net effect on profit after tax from increase in assumption | 24 | (165) | |||
Net effect on CSM from decrease in assumption | 358 | 220 | |||
Net effect on CSM from increase in assumption | (880) | (850) | |||
Net effect on pre-tax adjusted operating profit from decrease in assumption | (30) | (47) | |||
Net effect on pre-tax adjusted operating profit from increase in assumption | $ 33 | $ 54 | |||
Equity/property market | Insurance segments | |||||
Risk and sensitivity analysis | |||||
Reasonably possible increase in assumption (as a percent) | 10% | 10% | |||
Reasonably possible decrease in assumption (as a percent) | 20% | 20% | |||
Net effect on financial assets from decrease in assumption | $ (13,359) | $ (11,884) | |||
Net effect on financial assets from increase in assumption | 6,681 | 5,939 | |||
Net effect on net insurance contract liabilities (including CSM) from decrease in assumption | 12,288 | 10,927 | |||
Net effect on net insurance contract liabilities (including CSM) from increase in assumption | (6,254) | (5,571) | |||
Net effect on shareholders' equity from decrease in assumption | (822) | (735) | |||
Net effect on shareholders' equity from increase in assumption | 327 | 283 | |||
Net effect on profit after tax from decrease in assumption | (822) | (735) | |||
Net effect on profit after tax from increase in assumption | 327 | 283 | |||
Net effect on CSM from decrease in assumption | (1,392) | (1,303) | |||
Net effect on CSM from increase in assumption | 618 | 550 | |||
Net effect on pre-tax adjusted operating profit from decrease in assumption | (186) | (157) | |||
Net effect on pre-tax adjusted operating profit from increase in assumption | $ 83 | $ 66 | |||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Risk and sensitivity analysis_2
Risk and sensitivity analysis - Sensitivity to insurance risk (Details) - Insurance risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Maintenance expenses | ||
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 10% | 10% |
Net effect on shareholders' equity, Gross of reinsurance from increase in assumption | $ (77) | $ (58) |
Net effect on shareholders' equity, Net of reinsurance from increase in assumption | (71) | (57) |
Net effect on profit after tax, Gross of reinsurance from increase in assumption | (77) | (58) |
Net effect on profit after tax, net of reinsurance from increase in assumption | (71) | (57) |
Net effect on CSM, Gross of reinsurance from increase in assumption | (420) | (365) |
Net effect on CSM, Net of reinsurance from increase in assumption | (427) | (365) |
Net effect on pre-tax adjusted operating profit from increase in assumption | $ (61) | $ (53) |
Lapse rates | ||
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 10% | 10% |
Net effect on shareholders' equity, Gross of reinsurance from increase in assumption | $ (88) | $ (78) |
Net effect on shareholders' equity, Net of reinsurance from increase in assumption | (76) | (70) |
Net effect on profit after tax, Gross of reinsurance from increase in assumption | (88) | (78) |
Net effect on profit after tax, net of reinsurance from increase in assumption | (76) | (70) |
Net effect on CSM, Gross of reinsurance from increase in assumption | (1,363) | (1,179) |
Net effect on CSM, Net of reinsurance from increase in assumption | (1,496) | (1,274) |
Net effect on pre-tax adjusted operating profit from increase in assumption | $ (95) | $ (69) |
Mortality and morbidity | ||
Risk and sensitivity analysis | ||
Reasonably possible increase in assumption (as a percent) | 5% | 5% |
Net effect on shareholders' equity, Gross of reinsurance from increase in assumption | $ (131) | $ (88) |
Net effect on shareholders' equity, Net of reinsurance from increase in assumption | (96) | (79) |
Net effect on profit after tax, Gross of reinsurance from increase in assumption | (131) | (88) |
Net effect on profit after tax, net of reinsurance from increase in assumption | (96) | (79) |
Net effect on CSM, Gross of reinsurance from increase in assumption | (638) | (548) |
Net effect on CSM, Net of reinsurance from increase in assumption | (261) | (217) |
Net effect on pre-tax adjusted operating profit from increase in assumption | $ (85) | $ (67) |
Tax assets and liabilities - Cu
Tax assets and liabilities - Current tax (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Tax assets and liabilities | |||||
Current tax recoverable | $ 34 | $ 18 | [1] | $ 20 | |
Current tax liabilities | 275 | 208 | [1] | 185 | |
Provision for uncertain tax matters | 93 | 79 | |||
Deferred tax assets | 156 | 140 | [1] | 132 | |
Deferred tax liabilities | $ 1,250 | $ 1,139 | [1] | $ 1,167 | |
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Tax assets and liabilities - De
Tax assets and liabilities - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | $ 999 | $ 1,035 | |
Deferred tax expense (income) recognised in profit or loss | 104 | (3) | $ 405 |
Other movements including foreign exchange movements | (9) | (33) | |
Net deferred tax (assets) liabilities at end of period | 1,094 | 999 | 1,035 |
As previously reported | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | 2,596 | ||
Net deferred tax (assets) liabilities at end of period | 2,596 | ||
Effect of initial application of IFRS 17 and classification overlay of IFRS 9, net of tax | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (1,561) | ||
Net deferred tax (assets) liabilities at end of period | (1,561) | ||
Unrealised gains and losses on investments | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (129) | 239 | |
Deferred tax expense (income) recognised in profit or loss | 268 | (361) | |
Other movements including foreign exchange movements | (10) | (7) | |
Net deferred tax (assets) liabilities at end of period | 129 | (129) | 239 |
Unrealised gains and losses on investments | As previously reported | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | 239 | ||
Net deferred tax (assets) liabilities at end of period | 239 | ||
Balances relating to investment and insurance contracts | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | 1,255 | 999 | |
Deferred tax expense (income) recognised in profit or loss | (87) | 297 | |
Other movements including foreign exchange movements | 2 | (41) | |
Net deferred tax (assets) liabilities at end of period | 1,170 | 1,255 | 999 |
Balances relating to investment and insurance contracts | As previously reported | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | 2,091 | ||
Net deferred tax (assets) liabilities at end of period | 2,091 | ||
Balances relating to investment and insurance contracts | Effect of initial application of IFRS 17 and classification overlay of IFRS 9, net of tax | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (1,092) | ||
Net deferred tax (assets) liabilities at end of period | (1,092) | ||
Short-term temporary differences | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (96) | (136) | |
Deferred tax expense (income) recognised in profit or loss | 2 | 29 | |
Other movements including foreign exchange movements | 11 | ||
Net deferred tax (assets) liabilities at end of period | (94) | (96) | (136) |
Short-term temporary differences | As previously reported | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | 333 | ||
Net deferred tax (assets) liabilities at end of period | 333 | ||
Short-term temporary differences | Effect of initial application of IFRS 17 and classification overlay of IFRS 9, net of tax | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (469) | ||
Net deferred tax (assets) liabilities at end of period | (469) | ||
Unused tax losses | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | (31) | (67) | |
Deferred tax expense (income) recognised in profit or loss | (79) | 32 | |
Other movements including foreign exchange movements | (1) | 4 | |
Net deferred tax (assets) liabilities at end of period | $ (111) | (31) | (67) |
Unused tax losses | As previously reported | |||
Disclosure of deferred tax in statement of financial position and by Group's operations | |||
Net deferred tax (assets) liabilities at beginning of period | $ (67) | ||
Net deferred tax (assets) liabilities at end of period | $ (67) |
Tax assets and liabilities - Ta
Tax assets and liabilities - Tax benefits not recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of deferred tax in statement of financial position and by Group's operations | ||
Deferred tax assets recognised due to increase in forecast taxable profit | $ 54 | |
Unused tax losses and temporary deductible differences for which no deferred tax asset recognised | 1,319 | $ 2,235 |
Deferred tax liabilities not recognized in jurisdictions where a withholding charge is incurred upon distribution of earnings | 225 | 210 |
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 | 108 | 103 |
Tax benefit not recognized | 24 | |
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 | 1,211 | $ 1,295 |
Tax benefit not recognized | $ 240 |
Share capital, share premium _3
Share capital, share premium and own shares - Share capital and premium (Details) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) Options shares | Dec. 31, 2023 Options £ / shares | Dec. 31, 2022 Options £ / shares | Dec. 31, 2020 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 | 2,749,669,380 | 2,746,412,265 | |||||||
Number of issued shares at end of period | shares | 2,753,520,756 | 2,749,669,380 | 2,746,412,265 | ||||||
Balance at beginning of year | $ 16,898 | [1],[2] | $ 19,111 | [1],[2] | $ 22,119 | [3] | |||
Shares issued | 4 | (4) | [2] | 2,382 | [3] | ||||
Balance at end of year | 17,983 | 16,898 | [1],[2] | 19,111 | [1],[2] | ||||
Share capital | |||||||||
Disclosure of classes of share capital | |||||||||
Balance at beginning of year | 182 | [2] | 182 | [2] | 173 | [3] | |||
Shares issued | 1 | 9 | [3] | ||||||
Balance at end of year | 183 | 182 | [2] | 182 | [2] | ||||
Share premium | |||||||||
Disclosure of classes of share capital | |||||||||
Balance at beginning of year | 5,006 | [2] | 5,010 | [2] | 2,637 | [3] | |||
Shares issued | 3 | (4) | [2] | 2,373 | [3] | ||||
Balance at end of year | $ 5,009 | 5,006 | [2] | $ 5,010 | [2] | ||||
Share premium | Share offer | |||||||||
Disclosure of classes of share capital | |||||||||
Shares issued | $ (6) | ||||||||
Share-based schemes | |||||||||
Disclosure of classes of share capital | |||||||||
Number of shares issued | shares | 3,851,376 | 3,257,115 | |||||||
Share-based schemes | Share capital | |||||||||
Disclosure of classes of share capital | |||||||||
Shares issued | $ 1 | ||||||||
Share-based schemes | Share premium | |||||||||
Disclosure of classes of share capital | |||||||||
Shares issued | $ 3 | $ 2 | |||||||
SAYE options | |||||||||
Options outstanding under save as you earn schemes | |||||||||
Number of shares under option | Options | 2,000,000 | 1,671,215 | 1,858,292 | 2,300,000 | |||||
SAYE options | Minimum | |||||||||
Options outstanding under save as you earn schemes | |||||||||
Share price | £ / shares | £ 7.37 | £ 7.37 | |||||||
SAYE options | Maximum | |||||||||
Options outstanding under save as you earn schemes | |||||||||
Share price | £ / shares | £ 14.55 | £ 14.55 | |||||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Share capital, share premium _4
Share capital, share premium and own shares - Transactions in Prudential plc shares (Details) £ in Millions, $ in Millions | 12 Months Ended | ||
Jan. 16, 2024 GBP (£) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | |
Share repurchase programme | |||
Transactions in Prudential plc shares | |||
Number of shares purchased | 3,851,376 | ||
Cost of shares purchased | £ | £ 32 | ||
Shares held in trust for employee incentive plans | |||
Transactions in Prudential plc shares | |||
Number of shares purchased | 3,888,138 | 5,498,486 | |
Cost of shares purchased | $ | $ 54 | $ 77 | |
Number of shares held | 10,000,000 | 12,600,000 |
Capital - Capital Measure (Deta
Capital - Capital Measure (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Capital | ||
Group shareholder GWS capital resources | $ 24.3 | $ 23.2 |
Capital - Local capital regulat
Capital - Local capital regulations (Details) | Dec. 31, 2023 | 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, 2023 | Dec. 31, 2022 | |
Regulatory and other surplus | ||
Balance at 1 January | $ 466 | $ 522 |
Gains during the year | 254 | 187 |
Movement in capital requirement | (20) | 15 |
Capital injection | 3 | 3 |
Distributions made to the parent company | (205) | (214) |
Exchange and other movements | (1) | (47) |
Balance at 31 December | $ 497 | $ 466 |
Property, plant and equipment -
Property, plant and equipment - Breakdown (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of detailed information about property, plant and equipment | |||||
Property, plant and equipment | $ 374 | $ 437 | [1] | $ 495 | [1] |
Property, plant and equipment held at cost | |||||
Disclosure of detailed information about property, plant and equipment | |||||
Property, plant and equipment | 347 | 410 | $ 469 | ||
Owner occupied properties held at fair value | |||||
Disclosure of detailed information about property, plant and equipment | |||||
Property, plant and equipment | $ 27 | $ 27 | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | [1] | $ 437 | $ 495 | |||
Property, plant and equipment at end of year | 374 | 437 | [1] | $ 495 | [1] | |
Right-of-use assets, property assets | 202 | 267 | ||||
Right-of-use assets, non-property assets | 14 | 4 | ||||
Undiscounted value of lease payments not recognised in the lease liabilities | 231 | 189 | ||||
Sublease rental income | 7 | 6 | ||||
Capital expenditures, excluding right-of-use assets | 44 | 34 | [2] | 36 | ||
Operating segments | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 44 | 34 | ||||
Operating segments | Hong Kong | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 22 | 11 | ||||
Operating segments | Indonesia | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 1 | |||||
Operating segments | Malaysia | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 1 | 1 | ||||
Operating segments | Singapore | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 2 | 3 | ||||
Operating segments | Growth markets and other | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 15 | 16 | ||||
Operating segments | Eastspring | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Capital expenditures, excluding right-of-use assets | 4 | 2 | ||||
Property, plant and equipment held at cost | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 410 | 469 | ||||
Additions | 101 | 83 | ||||
Depreciation and impairment charge | (145) | (145) | ||||
Disposals, transfers and lease modifications | (19) | 24 | ||||
Effect of movements in exchange rates | (21) | |||||
Property, plant and equipment at end of year | 347 | 410 | 469 | |||
Property, plant and equipment held at cost | Cost/Gross amount | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 1,183 | 1,189 | ||||
Property, plant and equipment at end of year | 1,202 | 1,183 | 1,189 | |||
Property, plant and equipment held at cost | Accumulated depreciation | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | (773) | (720) | ||||
Property, plant and equipment at end of year | (855) | (773) | (720) | |||
Property, plant and equipment held at cost | Group occupied property | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 13 | 14 | ||||
Disposals, transfers and lease modifications | 3 | |||||
Effect of movements in exchange rates | (1) | |||||
Property, plant and equipment at end of year | 16 | 13 | 14 | |||
Property, plant and equipment held at cost | Group occupied property | Cost/Gross amount | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 21 | 22 | ||||
Property, plant and equipment at end of year | 24 | 21 | 22 | |||
Property, plant and equipment held at cost | Group occupied property | Accumulated depreciation | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | (8) | (8) | ||||
Property, plant and equipment at end of year | (8) | (8) | (8) | |||
Property, plant and equipment held at cost | Tangible assets | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 126 | 140 | ||||
Additions | 44 | 34 | ||||
Depreciation and impairment charge | (50) | (39) | ||||
Disposals, transfers and lease modifications | (4) | (2) | ||||
Effect of movements in exchange rates | (1) | (7) | ||||
Property, plant and equipment at end of year | 115 | 126 | 140 | |||
Property, plant and equipment held at cost | Tangible assets | Cost/Gross amount | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 486 | 489 | ||||
Property, plant and equipment at end of year | 495 | 486 | 489 | |||
Property, plant and equipment held at cost | Tangible assets | Accumulated depreciation | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | (360) | (349) | ||||
Property, plant and equipment at end of year | (380) | (360) | (349) | |||
Property, plant and equipment held at cost | Right-of-use assets | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | 271 | 315 | ||||
Additions | 57 | 49 | ||||
Depreciation and impairment charge | (95) | (106) | ||||
Disposals, transfers and lease modifications | (18) | 26 | ||||
Effect of movements in exchange rates | 1 | (13) | ||||
Property, plant and equipment at end of year | 216 | 271 | 315 | |||
Property, plant and equipment held at cost | 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 | 676 | 678 | ||||
Property, plant and equipment at end of year | 683 | 676 | 678 | |||
Property, plant and equipment held at cost | Right-of-use assets | Accumulated depreciation | ||||||
Reconciliation of the carrying amount of property, plant and equipment | ||||||
Property, plant and equipment at beginning of year | (405) | (363) | ||||
Property, plant and equipment at end of year | $ (467) | $ (405) | $ (363) | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Contingencies and related obl_2
Contingencies and related obligations (Details) - Prudential Assurance Malaysia Berhad | Dec. 31, 2023 |
Contingencies and related obligations | |
Legal and beneficial ownership percentage under litigation | 49% |
Proportion of ownership interest in subsidiary | 51% |
Percentage of consolidation of entity | 100% |
Post balance sheet events (Deta
Post balance sheet events (Details) - Share repurchase programme - GBP (£) £ / shares in Units, £ in Millions | Jan. 16, 2024 | Jan. 05, 2024 |
Post balance sheet events | ||
Number of shares covered by shares repurchase programme | 3,851,376 | |
Number of shares purchased | 3,851,376 | |
Shares repurchased as percentage of total number of ordinary shares in issue | 0.14% | |
Volume weighted average price of shares repurchased | £ 8.2676 | |
Consideration paid for repurchase of shares | £ 32 |
Related party transactions (Det
Related party transactions (Details) - 1 months ended Dec. 31, 2023 - CPL ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Related parties | ||
Additional growth capital to be provided | $ 176 | ¥ 1,250 |
Cash advance made | $ 176 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments in infrastructure funds and alternative investment funds | ||
Contractual obligations and unfunded commitments | ||
Amount committed | $ 2,456 | $ 2,626 |
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, 2023 | Dec. 31, 2022 |
Investment funds | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | $ 33,657 | $ 30,771 |
Investment funds | Equity securities and portfolio holdings in collective investment schemes | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | 33,657 | 30,771 |
Other structured entities | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | 285 | 389 |
Other structured entities | Debt securities | ||
Unconsolidated structured entities reported in the statement of financial position | ||
Aggregate carrying amount of investments in unconsolidated structured entities | $ 285 | $ 389 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Investments in subsidiary undertakings, joint ventures and associates | ||||
Fair value of associates accounted for at fair value through profit or loss where there are published price quotations | $ 500 | $ 300 | ||
Share of profit from joint ventures and associates, net of related tax | (91) | (85) | [1] | $ 352 |
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 | (91) | (85) | 352 | |
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 | (577) | (345) | 278 | |
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 | |||
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 | 18 | 16 | 28 | |
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 | 310 | 100 | (110) | |
Taxes included in share of profit from joint ventures and associates | 191 | 72 | ||
Other items included in share of profit from joint ventures and associates | (38) | |||
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 | (249) | (229) | 205 | |
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 | $ 158 | $ 144 | $ 147 | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Investments in subsidiary und_5
Investments in subsidiary undertakings, joint ventures and associates - Financial position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2020 | |
Statement of financial position: | ||||||
Total assets | $ 174,066 | $ 160,249 | [1] | $ 188,232 | ||
Shareholders' equity | 17,823 | 16,731 | [1] | 18,936 | ||
The above amounts of assets and liabilities include the following: | ||||||
Cash and cash equivalents | 4,751 | 5,514 | [1],[2] | $ 7,170 | [2] | $ 8,018 |
Financial liabilities (excluding trade and other payables and provisions) | 13,105 | 13,380 | ||||
CPL | ||||||
Statement of financial position: | ||||||
Total assets | 33,271 | 29,914 | ||||
Liabilities (including non-controlling interest) | 32,005 | 27,734 | ||||
Shareholders' equity | 1,266 | 2,180 | ||||
The above amounts of assets and liabilities include the following: | ||||||
Cash and cash equivalents | 868 | 561 | ||||
Financial liabilities (excluding trade and other payables and provisions) | $ 1,198 | $ 985 | ||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Investments in subsidiary und_6
Investments in subsidiary undertakings, joint ventures and associates - Income statement (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income statement: | ||||
Revenue | $ 9,740 | $ 8,985 | $ 23,014 | |
(Loss) profit for the year after tax | 1,712 | (997) | [1] | (2,813) |
The above (loss) profit for the year includes the following | ||||
Depreciation and amortisation | (524) | (494) | (830) | |
Interest income | 2,947 | 2,597 | 2,570 | |
Income tax credit | (560) | (478) | [1] | (804) |
CPL | ||||
Income statement: | ||||
Revenue | 1,676 | 1,023 | 7,347 | |
(Loss) profit for the year after tax | (733) | (550) | 453 | |
The above (loss) profit for the year includes the following | ||||
Depreciation and amortisation | (39) | (43) | (86) | |
Interest income | 543 | 569 | 465 | |
Interest expense | (2) | (3) | (2) | |
Income tax credit | $ 422 | $ 140 | $ (84) | |
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Investments in subsidiary und_7
Investments in subsidiary undertakings, joint ventures and associates - Reconciliation of carrying amounts (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |||
Reconciliation of carrying amount | |||||||||
Carrying amount of the Group's interest in the joint venture | $ 1,940 | $ 2,259 | [1] | $ 1,940 | $ 1,940 | $ 2,259 | [1] | $ 2,698 | |
CPL | |||||||||
Reconciliation of carrying amount | |||||||||
Total net assets | 1,266 | 2,180 | 1,266 | 1,266 | 2,180 | ||||
Proportion owned by the joint venture partner | $ 633 | $ 1,090 | 633 | 633 | 1,090 | ||||
Interest in joint ventures held by partner (as a percent) | 50% | 50% | |||||||
Carrying amount of the Group's interest in the joint venture | $ 633 | $ 1,090 | 633 | 633 | 1,090 | ||||
Interest in joint ventures (as a percent) | 50% | 50% | |||||||
Dividends received | 88 | 0 | |||||||
Planned capital injection | 176 | ||||||||
Other individually immaterial joint ventures and associates | |||||||||
Reconciliation of carrying amount | |||||||||
Carrying amount of the Group's interest in the joint venture | $ 1,307 | $ 1,169 | $ 1,307 | $ 1,307 | $ 1,169 | ||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
Investments in subsidiary und_8
Investments in subsidiary undertakings, joint ventures and associates - Ownership percentage (Details) | Dec. 31, 2023 | Dec. 31, 2017 | Dec. 31, 2016 |
Aberdeen Cash Creation Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 26.87% | ||
Aberdeen Standard Global Opportunities Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 35.13% | ||
Aberdeen Standard Singapore Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 61.88% | ||
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) | 46.52% | ||
BOCHK Balanced Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 40.43% | ||
BOCHK China Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 52.42% | ||
BOCHK Conservative Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.17% | ||
BOCHK US Dollar Money Market Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 37.11% | ||
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% | ||
BSP Debt Fund V Unlevered (Non-US) L.P. | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 53% | ||
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) | 46.49% | ||
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) | 39.60% | ||
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 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 ESG Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 94.82% | ||
Eastspring Investments - Asia Opportunities Equity Fund | |||
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) | 95.55% | ||
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) | 35.06% | ||
Eastspring Investments - Asian Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 89.85% | ||
Eastspring Investments - Asian Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 95.21% | ||
Eastspring Investments - Asian Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.94% | ||
Eastspring Investments - Asian Equity Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 88.46% | ||
Eastspring Investments - Asian High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 67.15% | ||
Eastspring Investments - Asian Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 88.64% | ||
EastSpring Investments - Asian Local Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 83.45% | ||
Eastspring Investments - Asian Low Volatility Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 91.60% | ||
Eastspring Investments - Asian Multi Factor Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 95.20% | ||
Eastspring Investments - China A Shares Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 79.87% | ||
Eastspring Investments - Dragon Peacock Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.09% | ||
Eastspring Investments - European Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.88% | ||
Eastspring Investments - Global Emerging Markets Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.06% | ||
Eastspring Investments - Global Emerging Markets Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 38.21% | ||
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) | 100% | ||
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) | 100% | ||
Eastspring Investments - Global Equity Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.86% | ||
Eastspring Investments - Global Growth Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 42.30% | ||
Eastspring Investments - Global Low Volatility Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 98.48% | ||
Eastspring Investments - Global Market Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.60% | ||
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 - Global Technology Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 84.16% | ||
Eastspring Investments - Greater China Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 89.88% | ||
Eastspring Investments - India Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 58.85% | ||
Eastspring Investments - Japan Sustainable Value Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 86.85% | ||
Eastspring Investments - Pan European Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 66.59% | ||
Eastspring Investments - US Corporate Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 68.69% | ||
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) | 85.91% | ||
Eastspring Investments - US High Yield Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 54.03% | ||
Eastspring Investments - US Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 58.61% | ||
Eastspring Investments - World Value Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 93.68% | ||
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 ex-Japan Target Return Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 78.56% | ||
Eastspring Investments Berhad | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Equity Income Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 43.13% | ||
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 Oncology Securities Baby Investment Trust (H) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 72.72% | ||
Eastspring Investments Global Oncology Securities Baby Investment Trust (UH) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 92.43% | ||
Eastspring Investments Global Oncology Securities Baby Investment Trust (USD) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 96% | ||
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 Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 40.96% | ||
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 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) | 31.20% | ||
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) | 66.94% | ||
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 Investment Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Eastspring Investments Unit Trusts - Dragon Peacock Fund ID | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 97.79% | ||
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) | 98.85% | ||
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) | 64.89% | ||
Eastspring Investments Vietnam Navigator Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 77.52% | ||
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) | 100% | ||
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 Equity Islamic Asia Pacific USD Kelas B | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 86.25% | ||
Eastspring Syariah Fixed Income USD Kelas A | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 63.13% | ||
First Sentier Global Property Securities Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 74.35% | ||
FSITC GLOBAL TRENDS FUND | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 24.31% | ||
FSSA China Focus Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 65.21% | ||
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) | 42.48% | ||
Fubon Global Investment Grade Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 57.59% | ||
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) | 44.38% | ||
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) | 25.22% | ||
GS Twenty Two Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
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) | 22.05% | ||
ICICI Prudential Pension Funds Management Company Limited | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 22.05% | ||
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) | 98.42% | ||
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) | 98.69% | ||
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) | 55.25% | ||
iShares MSCI Asia ex Japan Climate Action ETF | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 73.52% | ||
JPMorgan Investment Funds - Japan Sustainable Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 62.01% | ||
KKP ACTIVE EQUITY FUND | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 31.54% | ||
Krungsri Greater China Equity Hedged Dividend Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 28.12% | ||
Lasalle Property Securities SICAV-FIS | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
M&G Asia Property TS 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) | 82.22% | ||
Manulife AUD Income Bond Fund-A(CNY-H) | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 30.73% | ||
Manulife China Offshore Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 32.48% | ||
Manulife Taiwan Dynamic Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 26.11% | ||
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) | 98.98% | ||
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) | 40.50% | ||
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) | 98.40% | ||
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) | 27.97% | ||
PLUK Agents Savings Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
Principal Global Silver Age Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 31.05% | ||
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 Funding (Asia) PLC | |||
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 Investment Management Private 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 PH Equity Index Tracker Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.61% | ||
PruInvest PHP Balanced Allocation Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 72.30% | ||
PruInvest PHP Dynamic Equity Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 52.45% | ||
PruInvest PHP Intermediate Term Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 82.73% | ||
PRUInvest PHP Liquid Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 100% | ||
PruInvest USD Global Market Balanced Fund of Funds | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 20.43% | ||
PruInvest USD High Yield Asian Bond Feeder Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 65.19% | ||
PruInvest USD Intermediate Term Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 93.17% | ||
PruInvest USD Liquid Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 56.46% | ||
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) | 97.72% | ||
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) | 70.16% | ||
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) | 98.57% | ||
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) | 99.93% | ||
Rhodium Passive Long Dated Bond Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 99.92% | ||
Robeco QI European Active Index Equities | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 92.86% | ||
Schroder Asian Investment Grade Credit | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 31.68% | ||
Schroder Emerging Markets Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 77.62% | ||
Schroder Multi-Asset Revolution | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 51.13% | ||
Schroder US Dollar Money Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 27.98% | ||
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% | ||
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) | 32.88% | ||
Threadneedle (Lux) - Global Emerging Market Equities | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 65.59% | ||
United Global Innovation Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 24.24% | ||
United Global Quality Equity Fund - MYR hedged Class | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 27.57% | ||
UOB Smart Global Healthcare Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 45.27% | ||
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) | 35.67% | ||
UOB Smart Millennium Growth Fund | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 38.84% | ||
USD Investment Grade Infrastructure Debt Fund SCSp | |||
Investments in subsidiaries, joint ventures, associates and significant holdings | |||
Proportion held indirectly - related undertakings (as a percent) | 21.90% | ||
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, 2023 £ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 Rp / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 RM / shares shares | Dec. 31, 2022 £ / 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 | 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 | |
Par value per share | $ / shares | $ 1 | |||||
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 | 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 | |
Par value per share | $ / shares | $ 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 | |
Par value per share | RM / shares | RM 1 |
Discontinued US operations (Det
Discontinued US operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Income statement | ||||||
Total revenue, net of reinsurance | $ 26,500 | |||||
Total charges net of reinsurance | (23,834) | |||||
Profit (loss) before tax | [1] | $ 2,272 | $ (519) | [2],[3] | 3,018 | |
Loss for the year | [4] | (5,027) | ||||
Attributable to: | ||||||
Equity holders of the Company | (4,234) | |||||
Non-controlling interests | (793) | |||||
Loss for the year | [4] | (5,027) | ||||
Other comprehensive income (loss) | ||||||
Total comprehensive (loss) income for the year | [3],[5] | (7,068) | ||||
Attributable to: | ||||||
Equity holders of the Company | [3] | (6,283) | ||||
Non-controlling interests | [3] | (785) | ||||
Total comprehensive (loss) income for the year | [3],[5] | (7,068) | ||||
Cash flows | ||||||
Net cash flows from discontinued operations | (1,621) | |||||
Discontinued US operations | ||||||
Income statement | ||||||
Total revenue, net of reinsurance | 45,972 | |||||
Total charges net of reinsurance | (43,655) | |||||
Profit (loss) before tax | 2,317 | |||||
Tax (charge) credit | (363) | |||||
Profit (loss) after tax | 1,954 | |||||
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) | |||||
Attributable to: | ||||||
Equity holders of the Company | (4,234) | |||||
Non-controlling interests | (793) | |||||
Loss for the year | (5,027) | |||||
Other comprehensive income (loss) | ||||||
Valuation movements on available-for-sale debt securities, net of related tax and change in DAC | (763) | |||||
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) | |||||
Total comprehensive (loss) income for the year | (7,068) | |||||
Attributable to: | ||||||
Equity holders of the Company | (6,283) | |||||
Non-controlling interests | (785) | |||||
Total comprehensive (loss) income for the year | (7,068) | |||||
Cash flows | ||||||
Net cash flows from operating activities | (423) | |||||
Net cash flows from financing activities | 2,329 | |||||
Cash divested upon demerger | (3,527) | |||||
Net cash flows from discontinued operations | (1,621) | |||||
Cash and cash equivalents at beginning of year | 1,621 | |||||
Issuance of debt | 2,350 | |||||
Pre-demerger dividend | 0 | |||||
Jackson | ||||||
Discontinued US operations | ||||||
Economic interest | 18.40% | |||||
Voting interest | 18.50% | |||||
Financial assets available-for-sale | $ 683 | $ 266 | $ 683 | |||
[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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. Discontinued operations for 2021 related to the US operations (Jackson) that were demerged from the Group in September 2021. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Condensed Financial Informati_2
Condensed Financial Information of Registrant Prudential plc - Profit and Loss Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Profit and Loss Accounts | ||||||
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | [1] | $ 2,272 | $ (519) | [2],[3] | $ 3,018 | |
Tax credit on profit on ordinary activities | (560) | (478) | [2] | (804) | ||
Profit (loss) attributable to equity holders of the Company | 1,701 | (1,007) | [2] | (2,042) | ||
Items that may be reclassified subsequently to profit or loss | ||||||
Total comprehensive (loss) income, attributable to equity holders of the Company | 1,585 | (1,797) | [3] | (4,006) | [3] | |
Prudential plc | ||||||
Profit and Loss Accounts | ||||||
Investment income, including dividends received from subsidiary undertakings | 1,430 | 800 | 3,642 | |||
Investment expenses and charges | (203) | (207) | (328) | |||
Gain on transfer of debt to Prudential Funding (Asia) PLC | 370 | |||||
Loss on revaluation of Jackson upon demerger | (439) | |||||
Corporate expenditure | (47) | (158) | (244) | |||
Foreign currency exchange (losses) gains | (27) | 25 | 11 | |||
Profit (loss) before tax (being tax attributable to shareholders' and policyholders' returns) | 1,523 | 460 | 2,642 | |||
Tax credit on profit on ordinary activities | 2 | 5 | 6 | |||
Profit (loss) attributable to equity holders of the Company | 1,525 | 455 | 2,648 | |||
Items that may be reclassified subsequently to profit or loss | ||||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | 8 | (125) | 273 | |||
Total comprehensive (loss) income, attributable to equity holders of the Company | $ 1,533 | $ 330 | $ 2,921 | |||
[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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Condensed Financial Informati_3
Condensed Financial Information of Registrant Prudential plc - Statements of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Current assets | |||||
Other debtors | $ 1,161 | $ 968 | [1] | $ 955 | |
Cash at bank and in hand | 1,964 | 1,878 | |||
Liabilities: amounts falling due within one year | |||||
Accruals and deferred income | (244) | (200) | |||
Capital and reserves | |||||
Shareholders' funds | 17,823 | 16,731 | [1] | $ 18,936 | |
Prudential plc | |||||
Fixed assets | |||||
Investments in subsidiary undertakings | 13,786 | 13,178 | |||
Current assets | |||||
Amounts owed by subsidiary undertakings | 7,267 | 7,501 | |||
Other investments: equity securities - fair value through other comprehensive income | 266 | ||||
Cash at bank and in hand | 21 | 45 | |||
Total current assets | 7,288 | 7,812 | |||
Liabilities: amounts falling due within one year | |||||
Subordinated liabilities | (21) | ||||
Debenture loans | (361) | ||||
Commercial paper | (501) | ||||
Amounts owed to subsidiary undertakings | (866) | (614) | |||
Tax payable | (7) | (9) | |||
Accruals and deferred income | (7) | (63) | |||
Total current liabilities | (880) | (1,569) | |||
Net current assets | 6,408 | 6,243 | |||
Total assets less current liabilities | 20,194 | 19,421 | |||
Liabilities: amounts falling due after more than one year | |||||
Subordinated liabilities | (2,265) | ||||
Debenture loans | (1,614) | ||||
Amounts owed to subsidiary undertakings | (3,610) | ||||
Total non-current liabilities | (3,610) | (3,879) | |||
Total net assets | 16,584 | 15,542 | |||
Capital and reserves | |||||
Share capital | 183 | 182 | |||
Share premium | 5,009 | 5,006 | |||
Profit and loss account | 11,392 | 10,354 | |||
Shareholders' funds | $ 16,584 | $ 15,542 | |||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Balance at beginning of year | $ 16,898 | [1],[2] | $ 19,111 | [1],[2] | $ 22,119 | [3] | |
Total comprehensive income for the year | |||||||
Profit for the year | 1,701 | (1,007) | [4] | (2,042) | |||
Total comprehensive (loss) income, attributable to equity holders of the Company | 1,585 | (1,797) | [5] | (4,006) | [5] | ||
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 4 | (4) | [2] | 2,382 | [3] | ||
Demerger dividend in specie of Jackson | [3] | (1,735) | |||||
Share-based payment transactions | (5) | 24 | [2] | 46 | [3] | ||
Dividends | (540) | (482) | [2] | (430) | [3] | ||
Balance at end of year | 17,983 | 16,898 | [1],[2] | 19,111 | [1],[2] | ||
Share capital | |||||||
Balance at beginning of year | 182 | [2] | 182 | [2] | 173 | [3] | |
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 1 | 9 | [3] | ||||
Balance at end of year | 183 | 182 | [2] | 182 | [2] | ||
Share premium | |||||||
Balance at beginning of year | 5,006 | [2] | 5,010 | [2] | 2,637 | [3] | |
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 3 | (4) | [2] | 2,373 | [3] | ||
Balance at end of year | 5,009 | 5,006 | [2] | 5,010 | [2] | ||
Retained earnings | |||||||
Balance at beginning of year | 10,653 | [2] | 12,064 | [2] | 14,424 | [3] | |
Transactions with owners, recorded directly in equity | |||||||
Demerger dividend in specie of Jackson | [3] | (1,735) | |||||
Share-based payment transactions | (5) | 24 | [2] | 46 | [3] | ||
Dividends | (533) | (474) | [2] | (421) | [3] | ||
Balance at end of year | 11,928 | 10,653 | [2] | 12,064 | [2] | ||
Prudential plc | |||||||
Balance at beginning of year | 15,542 | 15,650 | 12,286 | ||||
Total comprehensive income for the year | |||||||
Profit for the year | 1,525 | 455 | 2,648 | ||||
Valuation movements on Jackson equity securities measured at fair value through other comprehensive income | 8 | (125) | 273 | ||||
Total comprehensive (loss) income, attributable to equity holders of the Company | 1,533 | 330 | 2,921 | ||||
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 4 | (4) | 2,382 | ||||
Demerger dividend in specie of Jackson | (1,735) | ||||||
Share-based payment transactions | 38 | 40 | 217 | ||||
Dividends | (533) | (474) | (421) | ||||
Total contributions by and distributions to owners | (491) | (438) | 443 | ||||
Balance at end of year | 16,584 | 15,542 | 15,650 | ||||
Prudential plc | Share capital | |||||||
Balance at beginning of year | 182 | 182 | 173 | ||||
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 1 | 9 | |||||
Total contributions by and distributions to owners | 1 | 9 | |||||
Balance at end of year | 183 | 182 | 182 | ||||
Prudential plc | Share premium | |||||||
Balance at beginning of year | 5,006 | 5,010 | 2,637 | ||||
Transactions with owners, recorded directly in equity | |||||||
New share capital subscribed | 3 | (4) | 2,373 | ||||
Total contributions by and distributions to owners | 3 | (4) | 2,373 | ||||
Balance at end of year | 5,009 | 5,006 | 5,010 | ||||
Prudential plc | Retained earnings | |||||||
Balance at beginning of year | 10,354 | 10,458 | 9,476 | ||||
Total comprehensive income for the year | |||||||
Profit for the year | 1,525 | 455 | 2,648 | ||||
Valuation movements on Jackson equity securities measured at fair value through other comprehensive income | 8 | (125) | 273 | ||||
Total comprehensive (loss) income, attributable to equity holders of the Company | 1,533 | 330 | 2,921 | ||||
Transactions with owners, recorded directly in equity | |||||||
Demerger dividend in specie of Jackson | (1,735) | ||||||
Share-based payment transactions | 38 | 40 | 217 | ||||
Dividends | (533) | (474) | (421) | ||||
Total contributions by and distributions to owners | (495) | (434) | (1,939) | ||||
Balance at end of year | $ 11,392 | $ 10,354 | $ 10,458 | ||||
[1] The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 have not been re-presented and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. |
Condensed Financial Informati_5
Condensed Financial Information of Registrant Prudential plc - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Operating activities | |||||
Interest paid | $ (75) | $ (16) | [1] | $ (11) | |
Taxes received | (406) | (449) | [1] | (453) | |
Financing activities | |||||
Issues of ordinary share capital | 4 | (4) | [1] | 2,382 | |
Issuance of core structural borrowings | [2] | 346 | [1] | 995 | |
Redemption of core structural borrowings | [2] | (393) | (2,075) | [1] | (1,250) |
Investing activities | |||||
Disposal of Jackson shares | 273 | 293 | [1] | 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] | 2,272 | (519) | [1],[4] | 3,018 |
Prudential plc | |||||
Operating activities | |||||
Net cash inflow from operating activities before interest and tax | 1,527 | 664 | 417 | ||
Interest paid | (35) | (204) | (328) | ||
Taxes received | (4) | (13) | |||
Equity dividends paid | (533) | (474) | (421) | ||
Net cash (outflow) inflow before operating activities | 959 | (18) | (345) | ||
Financing activities | |||||
Issues of ordinary share capital | 4 | (4) | 2,383 | ||
Issuance of core structural borrowings | 346 | 995 | |||
Redemption of core structural borrowings | (393) | (2,075) | (1,250) | ||
Movement in commercial paper and other borrowings to support a short-term fixed income securities program | (501) | 1 | (1) | ||
Dividend income from investment in subsidiary undertakings | 215 | ||||
Movement in share based payment receivable | (4) | (111) | |||
Capitalisation of amount owed by subsidiary | (62) | ||||
Non-cash transfer of debt to PFAP | (3,552) | ||||
Movement in net amount owed by subsidiary undertakings | 3,610 | (36) | (374) | ||
Net cash inflow (outflow) from financing activities | (836) | (1,941) | 1,968 | ||
Investing activities | |||||
Disposal of Jackson shares | 273 | 293 | 83 | ||
Investment in subsidiaries | (609) | ||||
Capitalisation of intercompany loans | 189 | ||||
Net cash inflow from investing activities | (147) | 293 | 83 | ||
Net cash inflow (outflow) for the year | (24) | (1,666) | 1,706 | ||
Reconciliation of profit on ordinary activities before tax to net cash inflow from operating activities before interest and tax | |||||
Profit (loss) before tax | 1,523 | 460 | 2,642 | ||
Add back: interest charged to profit or loss | 203 | 207 | 328 | ||
Adjustments for non-cash items: | |||||
Gain on transfer of subordinated liabilities and debenture loans | (370) | ||||
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 | 27 | 8 | (6) | ||
Decrease (increase) in debtors | 9 | (4) | |||
(Increase) decrease in creditors | 144 | (20) | 9 | ||
Net cash inflow from operating activities before interest and tax | $ 1,527 | $ 664 | $ 417 | ||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results have been re-presented from those previously published. Results for the year ended 31 December 2021 and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis and are not comparable to the 2023 and 2022 results. Structural borrowings of shareholder-financed businesses exclude borrowings to support short-term fixed income securities programmes, lease liabilities and other borrowings of shareholder-financed businesses. Cash flows in respect of these borrowings are included within cash flows from 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. The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. |
Condensed Financial Informati_6
Condensed Financial Information of Registrant Prudential plc - Notes (Details) £ / shares in Units, £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 16, 2024 GBP (£) £ / shares shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 05, 2024 shares | |||
Additional information | ||||||||
Profit (loss) for the year | $ 1,701 | $ (1,007) | [1] | $ (2,042) | ||||
Shareholders' equity | 17,823 | 16,731 | [2] | 18,936 | [2] | |||
Share repurchase programme | ||||||||
Additional information | ||||||||
Number of shares covered by shares repurchase programme | shares | 3,851,376 | |||||||
Number of shares purchased | shares | 3,851,376 | |||||||
Shares repurchased as percentage of total number of ordinary shares in issue | 0.14% | |||||||
Volume weighted average price of shares repurchased | £ / shares | £ 8.2676 | |||||||
Consideration paid for repurchase of shares | £ | £ 32 | |||||||
Accounting difference | ||||||||
Additional information | ||||||||
Profit (loss) for the year | (65) | 108 | 28 | |||||
Shareholders' equity | 66 | |||||||
Share in IFRS amount of the Group | ||||||||
Additional information | ||||||||
Profit (loss) for the year | 241 | (1,570) | (4,718) | |||||
Shareholders' equity | 1,239 | 1,123 | ||||||
Prudential plc | ||||||||
Additional information | ||||||||
Increase in the fair value of liability on initial recognition | $ 17 | |||||||
Dividends received by parent company from consolidated subsidiary undertakings | 1,277 | 708 | 3,597 | |||||
Profit (loss) for the year | 1,525 | 455 | 2,648 | |||||
Shareholders' equity | 16,584 | 15,542 | ||||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | 8 | (125) | $ 273 | |||||
Prudential plc | Share repurchase programme | ||||||||
Additional information | ||||||||
Number of shares covered by shares repurchase programme | shares | 3,851,376 | |||||||
Number of shares purchased | shares | 3,851,376 | |||||||
Shares repurchased as percentage of total number of ordinary shares in issue | 0.14% | |||||||
Volume weighted average price of shares repurchased | £ / shares | £ 8.2676 | |||||||
Consideration paid for repurchase of shares | £ | £ 32 | |||||||
Prudential plc | Jackson Financial Inc | ||||||||
Additional information | ||||||||
Valuation movements on retained interest in Jackson measured at fair value through other comprehensive income | $ 8 | $ (125) | ||||||
[1] The Group has adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 2022 comparative results and the related notes have been re-presented from those previously published . The 2021 comparative results and related notes have not been re-presented to the IFRS 9 or IFRS 17 basis and have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are not comparable to the 2023 and 2022 results. Refer to note A3.1 for accounting policies that form the basis for the 2021 IFRS 4 disclosures. The Group has adopted IFRS 9 'Financial instruments' and IFRS 17 ‘Insurance Contracts’ from 1 January 2023 as described in note A2.1. Accordingly, the 31 December 2022 and 1 January 2022 comparative statements of financial position and related notes have been re-presented from those previously published |