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Adding more to life

Prudential plc
2017 Half Year Financial Report

Group overview

Delivering value to our customers and shareholders

‘Our successful strategy, innovative products and strong execution have driven growth across all of our main performance measures.’

Mike Wells
Group Chief Executive

Business performance

Strong progress against our performance metrics

Read the Group Chief Financial Officer's report

Chief Financial Officer,
Mark FitzPatrick

‘The consistency of our performance is driven by the alignment of our business to the most attractive opportunities, the quality of our franchises in those markets and our ability to adapt with speed and agility to changes in economic and regulatory conditions.’

Mark FitzPatrick
Chief Financial Officer

Our performance

To create sustainable economic value for our shareholders we focus on delivering growth and cash while maintaining appropriate capital.

First interim dividend £14.5p +12% on half year 2016

IFRS operating profit¹ £2,358m +15% on half year 2016 (AER)

Life new business profit^1,2 £1,689m +34% on half year 2016 (AER)

IFRS profit after tax⁶ £1,505m +119% on half year 2016 (AER)

EEV shareholders' funds £40.5bn +4% on half year 2016 (AER)

Underlying free surplus generated^1,3 £1,845m +14% on half year 2016 (AER)

Net cash remittances £1,230m +10% on half year 2016 (AER)

Solvency II surplus^4,5 £12.9bn +3% on half year 2016 (AER)

Following its sale in May 2017, the operating results exclude the contribution of the Korea life business. All comparative results have been similarly adjusted.
New business profit on business sold in the period, calculated in accordance with EEV principles.
Underlying free surplus generated based on operating movements from long-term business (net of investment in new business) and that generated from asset management operations. Further information is set out in note 10 of the EEV basis results.
The Group shareholder capital position excludes the contribution to own funds and the solvency capital requirement from ring-fenced with-profits funds and staff pension schemes in surplus. The solvency positions include management’s estimate of transitional measures reflecting operating and market conditions at the valuation date. The estimated Group shareholder surplus would increase from £12.9 billion to £13.6 billion at 30 June 2017 if the approved regulatory transitional amount was applied instead.
Before allowing for first interim dividend (31 December 2016: second interim dividend).
IFRS profit after tax reflects the combined effects of operating results, negative short-term fluctuations in investment variances, results attaching to the sold Korea life business and the total tax charge for the period.