Prudential Funding (Asia) PLC

Registered No. 14645212

Prudential Funding (Asia) plc

Annual Report and Accounts

For the year to

31 December 2025

Annual report and accounts for the year to 31 December 2025

Contents

Section

Page

Company information

Directors

K J Devlin

S D Rich

R L Wyatt

Secretary

Prudential Group Secretarial Services Limited

Auditor

Ernst & Young LLP, London

Incorporated and registered in England and Wales. Registered no. 14645212

Registered office: 5th Floor, 10 Old Bailey, London, EC4M 7NG.

Strategic report

The directors of Prudential Funding (Asia) plc (‘the Company’) present their strategic report for the year to 31 December 2025.

Principal activities

Prudential Funding (Asia) plc is a public limited company incorporated and registered in England and Wales with registered number 14645212.

The ultimate controlling party of the Company is Prudential plc. The principal activity of the Company throughout the year was to operate as a

finance company.

The objective of the company is to provide funding to Prudential plc and its subsidiaries (the ‘Prudential Group’).

Developments in the year

On 22 May 2025 the Company issued a Singapore Dollar (‘SGD’) 600 million debt instrument (details are set out in note 7 to the accounts). On

the same date, the United States Dollars (‘USD’) equivalent of the proceeds of this loan were lent to the Company’s ultimate parent, Prudential

plc. Other operations of the Company continued unchanged from the Company’s 2024 annual report.

Key Performance Indicators

The key performance indicators used by the directors to monitor the performance of the business are profit before tax and net assets.

The profit before tax for the year of $18.9 million (31 December 2024: $23.2 million) reflects finance income from other group companies less

the finance cost of borrowing due to external bondholders. The net assets of the company at 31 December 2025 were $460.3 million (31

December 2024: $445.4 million).

Principal risks and uncertainties

–

Market Risk

The Company holds financial assets and liabilities denominated in currencies other than US Dollars, its functional currency. The Company is

exposed to foreign exchange translation risk on the SGD 600 million debt instrument issued in May 2025 (as set out in note 7 to the accounts).

This instrument was translated to USD on initial recognition at the market rate on the date it was issued. Subsequently, the instrument is

retranslated at period end market rates, with movements in value arising from this retranslation recognised in the income statement. The

proceeds from this debt issuance were lent to Prudential plc under a USD denominated intra-group loan.

All other assets and liabilities denominated in foreign currencies are closely matched in terms of value, timing and duration, with other net

exposures only arising from the additional margin applied to the interest rate on debt receivables from Prudential plc.

The interest rates on the Company’s listed debt liabilities, and backing receivables from Prudential plc are fixed. The interest rate on the

Company’s loan receivable from Prudential International Treasury Limited reflects current market interest rates.

–

Credit and Liquidity Risk

The Company’s assets consist of amounts due from Prudential plc and other Prudential Group Companies. The Company’s financial position,

and ability to meet its obligations as they fall due is therefore dependent on the ability of these companies to meet their obligations on a timely

basis. At 31 December 2025 Prudential plc had consolidated IFRS shareholders’ equity of $20.1 billion (2024: $17.5 billion).

–

Global economic and geopolitical conditions

The Company and the Prudential Group continue to face a highly complex and rapidly evolving macroeconomic and geopolitical landscape

marked by persistent uncertainties and potential challenges. The current global uncertainties, challenges and conflicts could have implications for

the wider economic and market environment in which the Company and Prudential Group will operate, and consequently the Prudential Group's

financial performance. The Prudential Group has a strong balance sheet and capital position which continues to be actively monitored.

–

Sustainability risks

The sustainability risks of the Prudential Group are set out in the Prudential plc 2025 Annual Report. The activities of the Company, being to

provide funding to Prudential plc and other Group companies, are such that its exposure to sustainability risks, including climate change risks, are

limited to scenarios in which the sustainability risks of the Prudential Group impact the Company’s operations, and hence it is currently not

material.

Section 172 and Stakeholder engagement statement

Section 172 of the UK Companies Act requires each Director to act in a way that he or she considers, in good faith, would be most likely to

promote the success of the Company for the benefit of its members as a whole. In doing this, Section 172 requires a Director to have regard

(among other matters) to the needs of employees, suppliers, customers and other wider stakeholder interests.

The Directors are regularly reminded of their statutory duties under Section 172.

Due to the nature of the Company’s principal activity as a finance company within the Prudential Group, the stakeholders and strategic business

activities of the Company are aligned with the Prudential Group and engagement occurs at the Group level. Details of how the Group engaged

with stakeholders and the outcome of that engagement is detailed in the Prudential plc 2025 Annual Report and Accounts.

During the year the Directors have continued the operations of the Company unchanged from the prior period.

The Company’s key stakeholders are set out below, with a summary of engagement in the period:

–

Customers and Employees: As the Company’s principal activity is to act as a financing company for the Prudential Group it has no external

customers or employees and therefore the Directors consider it appropriate that customer and employee engagement is undertaken at a

Group level. The Company supports the Group’s engagement with these stakeholders through provision of finance for Group entities.

–

Investors: The operations of the Company were undertaken considering the interest of the Company’s investors, in meeting the Group’s

overall financial objectives, and the holders of the Company’s listed borrowings by ensuring that the Company has the necessary financial

resources to meet its payment obligations as they fall due.

–

Communities: Direct engagement with wider communities is undertaken at a Group level. However, ensuring compliance with the laws and

regulations of the applicable jurisdictions in which the Group and Company operate is a key priority in the Directors’ decision making process.

Signed on behalf of the Board of Directors

K J Devlin

Director

23 March 2026

Directors’ report

The directors of Prudential Funding (Asia) plc (‘the Company’) present their report for the year to 31 December 2025.

Accounts and dividend

The state of affairs of the Company at 31 December 2025 is shown in the statement of financial position on page 13. The statement of

comprehensive income is shown on page 11. No dividend was paid in 2025 (2024: nil) and the directors do not recommend the payment of a

dividend.

Going concern

The Directors’ assessment of Going concern is set out on page 14.

Directors

The directors who held office during the period to 31 December 2025 are set out on page 2.

Directors' and officers' protection

Prudential plc has arranged appropriate insurance cover in respect of legal action against directors and senior managers of companies within the

Prudential Group. In addition, the Articles of Association of the Company permit the directors, officers and employees of the Company to be

indemnified in respect of liabilities incurred as a result of their office.

Risk Management and internal control

The Directors have overall responsibility for the Company’s system of risk management and internal controls. The Company operates within the

risk management framework under the policies, procedures and internal controls maintained by the Prudential Group.

The Prudential Group’s risk governance comprises the Group board, organisational structures, reporting relationships, delegation of authority,

roles and responsibilities, and risk and compliance policies that have been established to enable sound business decision making in relation to

control activities and risk-related matters. Fostering and overseeing the embedding of culture, including risk culture, is a responsibility of the

Group board, which recognises its importance in the way the Group conducts business. Prudential’s Group Risk Framework and underlying policies

support sound risk management practices by requiring a focus on customers, longer-term goals and sustainability, the avoidance of excessive

risk-taking, and highlighting acceptable and unacceptable behaviours. This is supported by the inclusion of risk and sustainability considerations

in performance management and remuneration for key executives; the building of appropriate skills and capabilities in risk management; and

ensuring that employees understand and care about their role in managing risk through open discussions, collaboration and engagement.

Disclosure of information to the auditor

The Directors who held office at the date of approval of this Directors’ report confirm that, so far as they are aware, there is no relevant audit

information of which the Company’s auditor is unaware; and that each Director has taken all reasonable steps that he or she ought to have

taken as a Director to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of

that information. This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act

2006.

Political and charitable donations

The Company did not make any political or charitable donations or incur any political or charitable expenditure during the year.

Auditor

The auditor, Ernst & Young LLP (‘EY’) has expressed their willingness to continue in office until the next annual general meeting (‘AGM’).

Pursuant to section 489 of the Companies Act 2006, a resolution for the reappointment of EY will be proposed at the forthcoming AGM of the

Company.

Signed on behalf of the Board of Directors.

S Edwards

On behalf of

Prudential Group Secretarial Services Limited

Secretary

23 March 2026

Statement of Director’s responsibilities

The Directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable

law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the

financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards

including FRS 101 ‘Reduced Disclosure Framework’, and applicable law). Under company law the Directors must not approve the financial

statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the

Company for that period. In preparing these financial statements, the Directors are required to:

–

select suitable accounting policies and then apply them consistently;

–

make judgements and estimates that are reasonable and prudent;

–

state whether applicable UK accounting standards, including FRS 101, have been followed, subject to any material departures disclosed and

explained in the financial statements;

–

assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

–

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and

disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements

comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such

steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Responsibility statement of the directors in respect of the annual financial report

The directors of Prudential Funding (Asia) plc, whose names are set out on page 2, confirm that to the best of their knowledge:

–

The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets,

liabilities, financial position and profit or loss of the company taken as a whole; and

–

The strategic report includes a fair review of the development and performance of the business and the position of the company taken as a

whole, together with a description of the principal risks and uncertainties that it faces.

Independent Auditor’s report to the members of Prudential Funding (Asia)

plc

Opinion

We have audited the financial statements of Prudential Funding (Asia) Plc (“the company”) for the year ended 31 December 2025 which

comprise the statement of comprehensive income, the statement of changes in equity, the statement of financial position and the related notes

1 to 12 including material accounting policy information. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally

Accepted Accounting Practice).

In our opinion, the financial statements:

–

give a true and fair view of the company’s affairs as at 31 December 2025 and of its profit for the year then ended;

–

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

–

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under

those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are

independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,

including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in

accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of

the financial statements is appropriate. Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going

concern basis of accounting included assessing the going concern status and forecast liquidity position of the ultimate parent company

Prudential plc as the payment of interest and repayment of principal on the company’s external loan obligations is dependent upon the receipt

of corresponding amounts on the related loan to Prudential plc. This assessment included:

–

Confirming our understanding of management’s going concern assessment process and obtaining management’s going concern assessment

for both the company and Prudential plc which covers the period to 31 March 2027;

–

Making inquiries of management and those charged with governance to identify risks or events that may impact the company’s ability to

continue as a going concern;

–

Determining the availability of liquid resources in Prudential plc to enable it to meet its loan interest and principal payments to the company

under base and stressed positions during the going concern period, and hence ascertaining whether the company will be able to service its

external loan obligations;

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or

collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period to 31 March 2027.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue

as a going concern.

Overview of our audit approach

Key audit matters

–

Recoverability of loan balances due from Prudential plc

Materiality

–

Overall materiality of $24m which represents 0.5% of the Company’s total assets.

An overview of the scope of our audit

Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for the

company. This enables us to form an opinion on the financial statements. We take into account size, risk profile, the organisation of the company

and effectiveness of controls, the potential impact of climate change and changes in the business environment when assessing the level of work

to be performed. All audit work was performed directly by the audit engagement team.

Climate change

The company has determined that there is no material impact from climate change on its operations.

Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s assessment

of the impact of climate risk disclosed in the Basis of Presentation on page 14.

We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and associated disclosures. Where

considerations of climate change were relevant to our assessment of going concern, these are described above.

Based on our work we have not identified the impact of climate change on the financial statements to be a key audit matter or to impact a key

audit matter.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the

current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on the overall audit strategy, the allocation of resources in the audit; and directing the

efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our

opinion thereon, and we do not provide a separate opinion on these matters.

Risk

Our response to the risk

Recoverability of loan balances due from Prudential plc

Our procedures included:

The intercompany loan balances of $4.2bn (2024: $3.6bn)

represent a significant proportion of the entity's assets. While their

valuation is not subject to significant judgment or complexity, their

magnitude and materiality are substantial, and the receipts of

interest and principal repayments in respect of the loans are used

by the company to meet its obligations on its external borrowings.

The primary risk is that of expected credit loss on the intercompany

loan balances.

•

Assessing the recoverability of the loans to

Prudential plc by examining relevant financial

information including the most recent financial

statements, and cash flow projections

for

Prudential plc and evaluating the availability of

resources within Prudential plc to repay amounts

owed to the company

•

We considered credit risk by examining Prudential

Plc’s credit ratings and any external factors

impacting the borrower's financial stability

•

Determining whether the valuation of the loans

should include a provision for expected credit

losses.

Key observations communicated to those charged with governance

We have determined that it is appropriate not to record an expected credit loss charge, as there has been no deterioration in credit

quality and Prudential plc is projected to have sufficient resources to pay interest and principal amounts in respect of the loans as

they fall due.

Our application of materiality

We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and

in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic

decisions of the users of the financial statements. Materiality provides a basis for determini

ng the nature and extent of our audit procedures.

We determined materiality for the company to be $24 million (2024: $21 million), which is 0.5% (2024: 0.5%) of Total Assets. We believe that

Total Assets provides us with an appropriate materiality basis as the users of the financial statements, including the Parent company, directors,

external bondholders and regulators are interested in the assets of the company being the intercompany loans due from Prudential plc and other

Prudential Group Companies as the financial position of the entity and its ability to service the external loans are dependent on these companies

meeting their obligations on a timely basis.

Performance materiality

The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the

probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the company’s overall control environment, our judgement was that

performance materiality was 75% (2024: 75%) of our planning materiality, namely $18m (2024: $15.7m). We have set performance

materiality at this percentage due to our assessment of the risk of misstatement and our expectation of the quantum and magnitude of

uncorrected misstatements.

Reporting threshold

An amount below which identified misstatements are considered as being clearly trivial.

We agreed with those charged with governance that we would report to them all uncorrected audit differences in excess of $1.2m (2024: $1m),

which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative

grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant

qualitative considerations in forming our opinion.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report

thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report,

we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in

the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other

information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

–

the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is

consistent with the financial statements; and

–

the strategic report and directors’ reports have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified

material misstatements in the strategic report or directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our

opinion:

–

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

–

the financial statements are not in agreement with the accounting records and returns; or

–

certain disclosures of directors’ remuneration specified by law are not made; or

–

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 6, the directors are responsible for the preparation of the

financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the

company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements

can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,

outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of

not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or

through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company

and management.

–

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most

significant are the financial reporting framework, tax legislation, and permissions and supervisory requirements of the listing authorities in the

UK (London Stock Exchange) and US (New York Stock Exchange) where the Company’s debt is listed. We understood how the Company is

complying with those frameworks by making inquiries of management and those responsible for legal and compliance matters.

–

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by

considering the controls that the company has established to address the risks identified by the entity, or that otherwise seek to prevent, deter

or detect fraud.

–

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures

involved considering the fraud risk within the valuation of the intercompany loan balances.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters we are required to address

We were appointed by the company on 25 May 2023 to audit the financial statements for the year ending 31 December 2023 and subsequent

financial periods.

The period of total uninterrupted engagement including previous renewals and reappointments is 3 years, covering the years ending 31

December 2023 to 31 December 2025.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the company and we remain independent of the company

in conducting the audit.

The audit opinion is consistent with the additional report to those charged with governance.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit

work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

John Headley (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

23 March 2026

Statement of comprehensive income for the year to 31 December 2025

Year to 31

December

Year to 31

December

2025

2024

Note

$000

Finance income from loans to ultimate parent company

222,071

207,569

Finance income from loans to other group companies

19,409

22,415

Finance Costs

(221,190)

(206,734)

Loss on foreign exchange translation

(1,368)

(42)

Administrative costs

(25)

Profit before tax

18,897

23,183

Income tax expense

(3,965)

(7,324)

Profit for the period and total comprehensive profit

14,932

15,859

All of the above items relate to continuing operations.

The notes on pages 14 to 18 form part of these financial statements.

Statement of changes in equity for the year to 31 December 2025

Share capital

Share premium

Profit and loss account

Total

Note

$000

Balance at 1 January 2024

400,000

29,446

429,506

Total comprehensive income for the period

–

15,859

Balance at 31 December 2024

400,000

45,305

445,365

Total comprehensive income for the period

–

14,932

Balance at 31 December 2025

400,000

60,237

460,297

The notes on pages 14 to 18 form part of these financial statements.

Statement of financial position at 31 December 2025

2025 $000

2024 $000

Note

31 Dec

Fixed assets

Financial investments – Loans to ultimate parent company

4,209,974

3,637,338

4,209,974

3,637,338

Current assets

Amounts owed by fellow group undertakings

447,620

393,985

Accrued interest on intercompany loans

38,221

73,231

Current tax recoverable

361

–

486,202

467,216

Liabilities: amounts falling due within one year

Payables due to fellow group undertakings

397

1,388

Interest payable

37,462

34,706

Other creditors

–

37,884

36,094

Net current assets

448,318

431,122

Liabilities: amounts falling due after more than one year

Subordinated liabilities

2,620,467

2,087,898

Debenture loans

1,577,528

1,535,197

4,197,995

3,623,095

Total net assets

460,297

445,365

Capital and reserves

Called up share capital

Share premium

400,000

Profit and loss account

60,237

45,305

Total shareholders’ funds

460,297

445,365

The financial statements on pages 11 to 18 were approved by the Board of Directors on 23 March 2026 and signed on its behalf by

K J Devlin

Director

The notes on pages 14 to 18 form part of these financial statements.

Notes to the accounts

Accounting policies

Basis of presentation

Prudential Funding (Asia) plc (the “Company”) is a public company incorporated, domiciled and registered in England and Wales.

The Company has no subsidiaries. These financial statements therefore present information about the Company as an individual undertaking.

These financial statements are prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”), Part

15 of the Companies Act 2006 and Schedule 1 of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations

2008.

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, and has set out below where advantages of the FRS 101 disclosure exemptions have been taken.

The Company’s ultimate parent undertaking, Prudential plc, includes the Company in its consolidated financial statements. Those consolidated

financial statements are prepared in accordance with International Financial Reporting Standards and UK-adopted international accounting

standards, and are available to the public. Copies of the accounts can be obtained from the Company Secretary, 5th Floor, 10 Old Bailey, London,

EC4M 7NG.

In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:

–

A cash flow statement and related notes

–

Disclosures in respect of transactions between wholly owned subsidiaries within the Prudential Group

–

Disclosure in respect of capital management

–

The effects of new but not yet effective IFRSs

–

Disclosures in respect of the compensation of key management personnel

As the consolidated financial statements of Prudential plc include the equivalent disclosures, the Company has also taken the exemptions under

FRS 101 available in respect of the following disclosures:

–

Certain disclosures required by IFRS 13 “Fair Value Measurement” and the disclosures required by IFRS 7 “Financial Instrument Disclosures”

As noted in the strategic report, there is currently no material climate risk exposure for the Company.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial

statements.

The Company’s functional and presentational currency is United States Dollars. Figures are presented to the nearest $1,000.

Going Concern

The directors have made an assessment of the Company’s going concern, considering both its current performance and its outlook using the

information available up to the date of issue of the 2025 annual report. This included consideration of the ability of Prudential plc to meet its

obligations to the Company, together with the stress and scenario testing conducted by the Prudential Group. As a result of such assessment and

after making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational

existence for the foreseeable future, being a period of at least 12 months from 23 March 2026 approval date of the annual report until 31 March

2027.

Amounts owed by Group undertakings

Amounts owed by Group undertakings are initially stated at fair value and subsequently measured at amortised cost using the effective interest

rate method. Any difference between the value initially recognised and the redemption value is recognised as part of finance income in the

Statement of Comprehensive Income over the term of the loan as part of the effective interest rate method.

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 fellow Group companies, have been assessed by taking into account

the probability of defaults on those loans. In all cases, the Group companies 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. No expected

credit losses have been recognised in the year (2024: nil).

Lifetime expected credit losses would be recognised on term loans due from Prudential plc if the credit risk on that financial instrument had

increased significantly since initial recognition. Available published credit ratings on Prudential plc Group debt are used as a measure of the credit

risk on loans due from Prudential plc. No significant increase in the year has been noted.

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs, and subsequently accounted for on an amortised cost basis using the

effective interest rate method. Under the effective interest rate method, the difference between the redemption value of the borrowing and the

amount initially recognised is amortised as finance costs in the Statement of Comprehensive Income over the term of the loan or, for

subordinated debt, over the expected life of the instrument.

Interest receivable and payable

Interest receivable and payable are recognised on an accruals basis, in accordance with the effective interest rate method.

Administration expenses

Administrative expenses represent amounts directly incurred by the Company as the issuer of listed debt instruments. Other administration

expenses are borne by other Prudential Group companies.

Foreign currency translation

Transactions not denominated in the Company’s functional currency, US dollars, are initially recorded in the functional currency at the exchange

rate 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 income

statement.

Taxation

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. 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 taxes are provided under the liability method for all relevant temporary differences. 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. At 31 December 2025, the Company has applied the

mandatory exemption from

recognising and disclosing information on deferred tax assets and liabilities in respect of Pillar Two income taxes as required by IAS 12 ‘Income

Taxes’.

Adoption of new accounting pronouncements

The following standards, interpretations and amendments have been issued by the IASB and have been adopted by the Company, with no

material impact on the Company’s financial position. This is not intended to be a complete list as only those standards, interpretations and

amendments that are most relevant to the Company are presented.

–

Amendments to IAS 1 'Classification of liabilities as current or non-current' issued in January 2020 and October 2022 and ‘Non-current

liabilities with covenants’ issued in October 2022;

–

Amendments to IAS 7 and IFRS 7 ‘Supplier finance arrangements’ issued in May 2023.

Significant accounting judgement

Valuation of debt transfer

The fair value of the external debt transferred from Prudential plc in March 2023 was determined by reference to the externally observable prices

of these quoted instruments.

The intercompany debt assets received 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 assets is the fair value of the external debt liabilities with an adjustment for the fair value of the additional

interest margin, which increased the fair value of the assets by $17 million on initial recognition.

Following initial recognition these financial instruments are subsequently measured at amortised cost, with interest income and expense

recognised according to the instrument’s effective interest rate.

Cash and cash equivalents

The company holds a Sterling and US dollar denominated bank account with nil balances at the period end.

Segmental Disclosure

The Company has not made any segmental disclosure as its income is wholly attributable to its principal activity and is generated in the UK.

Tax

(a)

Analysis of tax charge for the year

2025 $000

2024 $000

Current tax

UK corporation tax charge on profit for the year

(4,146)

(7,436)

Adjustments in respect of prior years

181

112

UK domestic minimum top-up tax

note

–

Total current tax charge

(3,965)

(7,324)

Deferred tax

Origination and deferral of temporary differences

–

Total tax charge

(3,965)

(7,324)

Note

On 30 June 2023 legislation was substantively enacted in the UK to introduce the OECD’s Pillar Two qualified domestic minimum top-up tax, with effect from 1 January 2024.

No charge arises in the period.

(b)

Factors affecting tax charge for the year

The tax charge assessed in the year is different from the application of the standard rate of corporation tax in the UK and the differences are

explained below. The standard rate of tax has been determined by using the UK rate of corporation tax enacted for the year for which the profit

of the Company will be taxed.

Year to

31 December

2025 $000

Year to

31 December

2024 $000

Profit before tax

18,897

23,183

Profit multiplied by standard rate of corporation tax in the UK of 25% (2024: 25%)

(4,724)

(5,796)

Amortisation of debt instruments not tax effective

(9,904)

(9,305)

Deductions not allowable for tax purposes

(14)

–

Group losses claimed for no consideration

10,496

7,665

Adjustments in respect of prior years

181

112

Total tax charge

(3,965)

(7,324)

(c)

Factors that may affect future tax charges

The only factors that are expected to materially affect the future tax charges of the Company are those detailed in (b) above.

Loans to ultimate parent company

Carrying Value

Maturity

Interest rate

31 Dec 2025

31 Dec 2024

Year

$000

US$750m notes

Perpetual

4.925

664,412

£435m notes

2031

6.175

588,229

548,165

US$1,000m notes

2033

3.000

913,682

885,657

£250m notes

2029

5.925

341,616

319,676

US$1,000m notes

2030

3.175

919,532

903,695

US$350m notes

2032

3.675

319,691

315,733

US$462m notes

2035

3.850

462,812

–

Total fixed assets – Loans to ultimate parent company

4,209,974

3,637,338

Accrued interest

38,221

39,004

Total fixed asset loans including accrued interest

4,248,195

3,676,342

On 22 May 2025 the Company lent the USD equivalent of the proceeds from the issuance of a SGD600 million debt instrument (as described in

note 7) to Prudential plc. The terms of the loan to Prudential plc (the US$462m notes in the table above) matched the terms of the external debt

instrument, with the exception of an additional margin on the interest rate and the currency of denomination being USD.

The remaining loan assets listed above originated on 2 March 2023 when the remaining debt liabilities listed in note 7 were transferred by

Prudential plc, the Company’s ultimate parent company. These intercompany receivable instruments were measured at fair value on initial

recognition, which totalled $3,605 million, including accrued interest.

These debt receivable assets are subsequently measured at amortised cost, applying the effective interest rate method, to amortise the

difference between the value initial recognised and redemption value of the assets.

Receivables from other Group Companies

31 Dec 2025

31 Dec 2024

$000

Loan to Prudential International Treasury Limited

447,560

393,925

Loan to Prudential Corporation Asia Limited

447,620

393,985

Loans to Prudential International Treasury Limited are recallable on demand. Interest receivable on these loans reflects current market interest

rates.

Payables to fellow group undertakings

31 Dec 2025

31 Dec 2024

$000

Amounts due to Prudential Services Limited

138

1,388

Amounts due to Eastspring Luxembourg S.A.

121

Amounts due to Prudential plc

138

–

397

1,388

Borrowings

Carrying Value

Maturity

Interest rate

31 Dec 2025

31 Dec 2024

Year

$000

Subordinated liabilities

US$750m 4.875%

Perpetual

4.875

657,157

£435m 6.125% notes 2031

2031

6.125

586,801

546,655

US$1,000m 2.95% notes 2033

2033

2.950

912,513

884,086

SGD600m 3.8% notes 2035

2035

3.800

463,996

–

Total subordinated liabilities

2,620,467

2,087,898

Senior debt

£250m 5.875% notes 2029

2029

5.875

341,114

319,084

US$1,000m 3.125% notes 2030

2030

3.125

917,640

901,418

US$350m 3.625% notes 2032

2032

3.625

318,774

314,695

Total senior debt

1,577,528

1,535,197

Total borrowings

4,197,995

3,623,095

Accrued interest

37,462

34,706

Total borrowings and accrued interest

4,235,457

3,657,801

On 22 May 2025 the Company issued SGD600 million 3.8 per cent subordinated debt maturing on 22 May 2035 with proceeds, net of costs, of

$462 million. On the same day, the equivalent value in USD of the funds raised were lent to ultimate parent company Prudential plc with an

interest rate of 3.85 per cent.

The remaining debt instrument liabilities listed above were transferred to the Company. on 2 March 2023 by Prudential plc, the Company’s

ultimate parent company. These instruments were measured at a fair value on initial recognition of $3,588 million, including accrued interest.

These instruments are subsequently measured at amortised cost, applying the effective interest rate method, to amortise the difference between

the value initially recognised and their redemption value.

Called up share capital

31 Dec 2025

31 Dec 2024

$000

Issued and fully paid: 50,001 ordinary shares of £1 each

At incorporation on 7 February 2023, the Company issued 50,000 shares with nominal value of Pounds Sterling 50,000 to Prudential Corporation

Asia Limited.

On 15 June 2023 the Company issued one ordinary share to Prudential Corporation Asia Limited in consideration for cash of $400,000,000. $1

was credited to share capital and $399,999,999 was credited to the share premium account.

Auditor’s remuneration

Auditor’s remuneration of $47,000 (2024: $44,000) was borne by the Company’s ultimate parent company, Prudential plc. Amounts receivable

by the Company’s auditor in respect of services rendered to the Prudential Group, other than the audit of the Company’s financial statements,

have not been disclosed, as the information is required instead to be disclosed on a Group basis in the consolidated financial statements of

Prudential plc.

10 Directors’ emoluments

The aggregate emoluments, including pension contributions, of the Directors of the Company for the year in respect of services rendered to the

Company were $nil.

11 Immediate and ultimate parent company

The Company’s immediate parent company is Prudential Corporation Asia Limited, and the largest group in which the results of the Company

are consolidated is that headed by Prudential plc, its ultimate parent company. No other group financial statements include the results of the

Company. The consolidated financial statements of the Group are available from the Company Secretary at 5th Floor, 10 Old Bailey, London,

EC4M 7NG.

12 Post balance sheet events

There have been no significant events affecting the Company since the balance sheet date.