5493001Z3ZE83NGK8Y12-2025-12-31-T01

Open-architecture
technology platform

Engaged people &
high-performance culture

Wealth and investment
capabilities


	4 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Key financial metrics

Delivering the next

chapter of growth

Earnings


	2025 $m	2024 $m	Change on AER basis	Change on CER basis
Adjusted operating profit	3,306	3,129	6%	5%
Adjusted operating profit after tax	2,772	2,582	7%	7%
Basic earnings per share based on adjusted operating profit (cents)	101.4¢	89.7¢	13%	12%
IFRS profit after tax	4,119	2,415	71%	69%
Basic earnings per share based on IFRS profit after tax (cents)	154.2¢	84.1¢	83%	82%

Value


	2025 $m	2024 $m	Change on AER basis	Change on CER basis
APE sales	6,661	6,202	7%	6%
Present value new business premiums (PVNBP)	31,925	29,034	10%	9%
New business profit (TEV)	2,782	2,464	13%	12%
New business margin (% APE)	42	40	2ppts	2ppts
Life weighted premium income	28,106	25,542	10%	9%
TEV operating profit	4,752	4,095	16%	15%
Operating return on embedded value (%)	15	14	1ppts	n/a


	2025	2024	Change on AER basis	Change on CER basis
Group TEV equity ($m)	37,803	34,267	10%	8%
Group TEV equity per share (US$)	14.83	12.89	15%	13%
Group TEV per share ($)	14.53	12.62	15%	13%
Eastspring funds under management / advice ($bn)	277.7	258.0	8%	n/a

Capital


	2025	2024	Change on AER basis	Change on CER basis
Operating free surplus generated from in-force insurance and asset management business ($m)	3,059	2,666	15%	15%
Operating return on IFRS shareholders' equity (%)	14	14	–ppts	n/a
Dividend per share (cents)	26.60	23.13	15%	n/a


	2025 $m	2024 $m	Change on AER basis
IFRS shareholders' equity	20,117	17,492	15%
IFRS shareholders' equity per share (US$)	7.90	6.58	20%
Adjusted total comprehensive equity*	42,068	36,660	15%
Free surplus excluding distribution rights and other intangibles	9,408	8,604	9%
Free surplus ratio (%)	221	234	(13)ppts
Group leverage ratio (Moody's basis) (%)	13	13	—%
Shareholders GWS coverage ratio over GPCR (%)	262	280	(18)ppts
Total GWS coverage ratio over GPCR (%)	197	203	(6)ppts

* Includes IFRS shareholders’ equity and contractual service margin net of tax and other adjustments. See “Definitions of Performance Metrics” for further information.


	5 Prudential plc Annual Report 2025

“2025 was a strong year of

consistent delivery for

Prudential, with double-digit

growth in our key metrics¹

reflecting sustained

momentum throughout the

year.”

— Anil Wadhwani, CEO

(1) Our key metrics are: new business profit, basic earnings per share based on adjusted operating profit and operating free surplus generated

from in-force insurance and asset management business


	6 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Our business at a glance

A trusted partner

for millions

Our life and health insurance and asset management solutions serve over 17 million customers

across 20 markets in Asia and Africa. We are headquartered in Hong Kong and have dual primary

listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU).



n	Our markets
n	Life insurance – offering a range of products including health and protection
n	Asset management


	7 Prudential plc Annual Report 2025


Our markets	Life business market ranking¹	APE sales	Top 10 asset manager ²	Eastspring funds under management or advice ³

Hong Kong and Macau	Top 5	$2,221m		$7.7bn

Indonesia	Top 3	$258m		$4.0bn

Mainland China	Top 5	$621m		$14.0bn

Malaysia	Top 3	$436m		$16.8bn

Singapore	Top 3	$938m		$148.0bn
Other Markets:
Africa	Top 5 in 3 markets	$148m

Cambodia	Top 3	$14m

India	Top 5	$259m		$43.9bn

Japan				$6.8bn

Laos	Top 3	<$1m

Myanmar	Top 5	$12m

Philippines	Top 3	$151m

Taiwan	Top 3	$1,184m		$11.2bn

Thailand	Top 5	$360m		$14.1bn

Vietnam	Top 10	$57m		$7.0bn

(1) As reported at full year 2025 unless otherwise specified. Sources include formal (eg competitors' results releases, local regulators and insurance association) and informal (industry

exchange) market share. Ranking based on new business (APE sales, weighted new business premium, retailed weighted received premium, full year premium or weighted first year

premium) or gross written premium depending on availability of data. Hong Kong ranking based on APE sales. Rankings in the case of Mainland China, Taiwan and Myanmar are

among foreign insurers, while for India they are among private companies. Markets based on nine months ended September 2025: Mainland China, Hong Kong, three months ended

March 2025: PPMZ (Africa), full year 2024: Laos, Nigeria (Africa), Uganda (Africa), Zambia (Africa) and full year 2023: Ghana (Africa) and Kenya (Africa).

(2) As reported at full year 2025. Sources include local regulators, asset management association, investment data providers and research companies (eg Morningstar, Lipper).

Rankings are based on total funds under management (including discretionary funds, where available) of onshore domiciled funds or public mutual funds of the respective

markets.

(3) Full year 2025 Group's share of funds under management or advice based on the market where the funds are contractually managed. Excludes funds managed in

Luxembourg and US.


	8 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Investment case



	Delivering for our investors
	“Our focus remains firmly on high‑quality, sustainable growth, disciplined capital allocation and delivering long‑term shareholder value.” — Anil Wadhwani, Chief Executive Officer

We carry the momentum of 2025 into 2026 and are confident in our

double-digit growth trajectory across our key metrics¹, putting us firmly

on track to achieve our 2027 financial objectives.

Our 2027 Financial Objectives

New business profit

Gross OFSG²

Dividend per share


	Illustrative trajectory 2022-2027 2027 objective: 15-20%³ CAGR		Illustrative trajectory 2022-2027 2027 objective: >$4.4bn³ in 2027		Growth 2022-2025 Dividend growth of 15% in 2025

Guidance:

we expect

to grow the

total

ordinary

dividend

per share

by >10% in

both 2026

and 2027⁵


	9 Prudential plc Annual Report 2025

Scale franchise in Asia and Africa:

Well positioned to access growth opportunities in our markets

Leading positions

across high growth

markets in Asia

and Africa

Trusted household

brand with nearly

180-year heritage

Balanced and

scaled distribution

channels

Integration of

life insurance and

asset management

capabilities

Top three positions in

nine life markets

Second largest number

of MDRT agents globally

The #1 independent life

insurer in Asia

bancassurance

Total $277.7bn funds

under management by

Eastspring

Driving Value creation through focus on execution:


Agency	Bancassurance	Health	Customer

Deepening

penetration

and increasing

mix of health

and protection

Focus on

activation and

productivity

Focus on

quality health

and protection

business

Focus on

driving

acquisition

and loyalty


	Improving technology capabilities and operational effectiveness


Delivering high quality, consistent growth and driving shareholder returns:

	Growth	Capital	Consistency	Confidence

	Delivered >10% growth across our key metrics¹	Implementing additional $1.2bn buyback in 2026. Expected $1.3bn capital return in 2027⁴. >$7bn Capital returns to shareholders in 2024–27⁵	2026 guidance of double- digit growth across our key metrics¹	On track to deliver 2027 objectives

(1) Our key metrics are: new business profit, basic earnings per share based on adjusted operating profit and operating free surplus generated from in-force insurance and asset

management business.

(2) Operating free surplus generated from in-force insurance and asset management business.

(3) The objectives assume exchange rates at December 2022 and are based on regulatory and solvency regimes applicable across the Group at the time the objectives were

set. The objectives assume that the same TEV and free surplus methodology will be applicable over the period and no material change to the economic assumptions will

occur.

(4) Subject to Hong Kong Insurance Authority approval.

(5) Capital returns will be set taking into account the Group's financial condition and prospects, applicable capital and solvency requirements, investment opportunities, market

conditions and the general economic environment.


	10 Prudential plc Annual Report 2025


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Chair's statement


	Delivering on our strategy

As this will be my last letter as Chair, I would like to provide an update

on the progress we have made over the last year, before giving some

wider reflections.

Asia’s growth in 2025 normalised as inflation pressures abated in

several markets, even as geopolitics and trade policy uncertainty

continued to contribute to periods of financial market volatility. While

these factors can affect growth, interest rates and confidence across

Asia and Africa, we remained focused on what we can control, staying

disciplined on execution, writing high‑quality business and

maintaining a strong balance sheet with a resilient solvency and

liquidity position. The Group delivered double‑digit growth in 2025 in

each of new business profit, earnings per share based on adjusted

operating profit and operating free surplus generated from in‑force

insurance and asset management business. We delivered on our 2025

guidance, reinforcing our confidence in the achievement of our 2027

financial objectives for growth in new business profits and operating

free surplus generation.

In line with our dividend policy, the Board has approved a 2025

second interim cash dividend of 18.89 cents per share (2024: 16.29

cents per share). Combined with the first interim cash dividend of

7.71 cents per share (2024: 6.84 cents per share), the Group’s total

2025 cash dividend is 26.60 cents per share (2024: 23.13 cents per

share), an increase of 15 per cent.

In 2025, the Group improved both margin and cash generation,

supported by our multi‑market and multi‑channel business model,

even as performance varied across individual segments. Importantly,

our strong balance sheet and improving operating capital generation

meant we continued to invest in the capabilities that underpin long-

term, sustainable growth and returns to shareholders.

Operationally, the business continued to execute with discipline

against the pillars set out in our strategy, professionalising agency,

deepening bancassurance partnerships and advancing our health

proposition, and we recognise there is more to do, particularly in

improving agency performance. We continue to strengthen the

foundations of our technology and operations to better deliver for our

customers. We are working to develop and embed near-term

commercial applications of AI, exploring its longer-term

transformation potential, and scaling responsibly within robust

cybersecurity, data protection and ethical governance frameworks.

Given the needs and priorities of the markets and communities in

which we operate, we continue to ensure our sustainability strategy is

fully integrated within our overall strategy. In 2025, we continued to

make disciplined, market‑appropriate investments to support a just

and inclusive energy transition in emerging economies in line with our

market-leading 2024 Financing the Transition (FTT) framework¹. Our

targets and progress are detailed in our Sustainability Report (pages

101 - 102), including cumulative FTT commitments and integration

of climate, adaptation and nature‑related solutions within our

investments and business.

Through the Prudence Foundation, we continued to champion

financial inclusion and community resilience, as part of our $16.1

million in community investment spending in 2025. Our award-

winning Cha‑Ching financial literacy programme has now reached

almost four million students across sixteen markets in Asia and Africa,

delivered in thirteen languages, and is supported by over 123,500

trained educators. We are building on this with new initiatives focused

on underserved communities, including Levela, our adult financial

literacy platform, and our Climate & Health Resilience Fund, which

supports projects across sixteen markets and has positively impacted

over half a million lives. Full details can be found in our Sustainability

Report.


	11 Prudential plc Annual Report 2025

During my tenure as Chair, we have evolved the Board to provide the

blend of strategic, capital allocation, insurance, operational and

geographic experience to reflect the Asia-focused operating company

we are today. In 2025, Guido Fürer joined the Board, bringing

extensive international experience of asset management and asset

liability management for insurance. Amy Yip retired from the Board at

the end of October 2025 and, on behalf of the Board and

management, I would like to thank her for her contribution and

support on the board throughout my time as Chair and as a member

of the Audit Committee. Further details are set out in the Governance

Report.

Delivering on our strategy

My last statement as Chair is an opportunity to reflect over a period

longer than the past year. When I joined the Board in 2020, it was

clear Prudential needed to accelerate its transformation from a global

financial holding company into an operating company able to make

the most of the long-term opportunities of Asia and Africa, delivering

sustained, high–quality growth. The transformation has, and

continues, to take place against an eventful backdrop, navigating a

global pandemic and significant geopolitical and geoeconomic

uncertainties, challenges and conflicts. Throughout, the Board and

management have focused on building the operating platform and

capabilities to deliver for shareholders and customers, to leverage our

brand and to deliver consistently to convert growth into sustainable

value.

In 2021, we completed the strategic repositioning of the Group with

the demerger of our US business and by strengthening our balance

sheet. We moved our leadership and decision-making to be based in

our markets in Asia and started to transform the Board to reflect the

experience and expertise needed for our business. With the arrival of

Anil Wadhwani as CEO in early 2023, we refreshed our purpose and,

critically, set out a five‑year strategy to improve performance and

capabilities which we are now more than halfway through, executing

at pace across our core distribution, health and customer pillars.

We created a rigorous capital allocation framework, resolved legacy

litigation and delivered a significant increase in cash returns to

shareholders. We completed the move to IFRS17 and to a Traditional

Embedded Value (TEV) basis for external reporting to improve

transparency and comparability. We increased the amount invested

in profitable new business and in building the Group’s capabilities for

the future and, at the same time, our Return on Embedded Value

increased. Overall, our actions have repositioned the business to drive

quality growth with a focus on cash generation that we believe will

assist us to deliver attractive total shareholder returns.

During 2024–2025, we completed a $2 billion share buyback

programme. In August 2025, we provided an update to our capital

management programme setting out a total‑return approach for

2026–27 that combines ordinary dividend growth with additional

recurring returns of capital. In December 2025, we listed part of the

Group’s stake in ICICI Prudential Asset Management Company, and

of the net proceeds of $1.4 billion, $700 million will be returned to

shareholders in 2026, and the balance in 2027. This will take place

alongside our guidance to grow ordinary dividends at over ten per

cent across 2025–27.

I am pleased shareholder confidence as reflected in our share price

began to improve during 2025, recognising the emergence of a more

consistent quality of performance and benefiting also from a shift in

market sentiment towards China and emerging markets.

Looking ahead

Looking to 2026 and 2027, our priorities are clear. Improving our

agency performance remains a core strategic imperative, with our

primary focus on quality recruitment, activation and productivity. In

health, we will continue to apply pricing and claims cost discipline to

ensure value for customers as well as sustainable growth. We will

prioritise efficient growth, strengthening delivery across markets and

channels and consistently converting growth into cash. In technology

and AI, we will complete building our strong foundations and move to

a more scaled, domain-led deployment embedded in our core

customer and distribution pathways. We will remain disciplined on

capital allocation, operating with resilient capital buffers and

delivering our total‑return framework.

We still have a way to go to complete our current strategy and our

focus must remain on the consistency of delivery and improvements

in our performance, business and capabilities. Nevertheless, we also

need to start to look beyond 2027 to the next phase of Prudential’s

development and growth. The strength of the platform and

capabilities we are working to create - rooted in our focus on Asia and

Africa, our brand recognition, our balanced distribution, asset

management business and the talent of our people - should provide

exciting opportunities to find a unique path to further growth,

enhanced shareholder returns and valued protection to larger parts of

the population in our markets.

As we start to think of this future and this next strategy, it is the right

time for a new Chair to help guide this process. I am therefore

delighted to be handing over to Sir Douglas Flint at the AGM in May

and am working closely with him to ensure a smooth transition.

Douglas has extensive experience leading global financial institutions

and deep experience across the geographic regions in which we

operate and is therefore ideally positioned to lead the next stage of

Prudential’s development. I would like to thank Jeremy Anderson, our

Senior Independent Director, for leading the Board in the Chair

succession process.

It has been a privilege to serve as Chair during a period of significant

transformation, and I have valued the constructive engagement with

our shareholders, regulators and stakeholders throughout my tenure. I

am grateful to my Board colleagues, to Anil and the leadership team

and to all our colleagues for their commitment, hard work and

support, and for embracing a performance‑oriented, meritocratic and

inclusive culture. It has been an honour to work alongside them.

We have kept true to our purpose while seeking to transform

Prudential to realise its growth potential, creating long‑term value for

shareholders and delivering meaningful benefits to the customers

and communities we serve. Completing our current strategy to 2027

will further enhance our strengthened platform and build on our

trusted brand. With vision and ambition, I am confident Prudential

will be well positioned to generate high‑quality, compounding growth

and create a truly unique proposition for our shareholders, customers

and people. So I leave with optimism about the future, confident that

Anil and his team, supported by Douglas and the rest of the Board will

deliver on the Group’s potential in the years ahead.

Thank you all for your continued support.

Shriti Vadera

Chair

(1) Available on our website: prudentialplc.com


	12 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Our mission is to be the most

trusted partner and protector for

this generation and generations

to come by providing simple and

accessible financial and health

solutions.

“For Every Life” speaks to our ambition to meet the huge

underserved needs of potentially four billion people across our

markets in Asia and Africa. With the collective wisdom of our

talented people, we will partner with customers to improve their

health and financial understanding so that they can build the life

they want.

“For Every Future” speaks to our ambition to add value to the

wider community, for a more sustainable and inclusive future. We

are here to protect this generation, just as we have previous

generations, and those we are yet to meet.


	13 Prudential plc Annual Report 2025

Our clear and simple strategy

Organisational model replicating successes at pace and scale

Multi-market growth engines

> Read more about our markets on p. 14 to 17 and p. 47 to 55


	Greater China		ASEAN		India		Africa



Technology- powered distribution	Transforming health business model	Enhancing customer experiences

Group-wide enablers

Value creation for all stakeholders

Read more about our stakeholders on p.89 to 97


	Customers		Employees		Shareholders		Communities

Managing our risks

Thoughtful risk management through advocating the interests of our people, customers, regulators and shareholders

> Read more about risk management from p.56

Underpinned by the three pillars of our sustainability strategy

Simple and accessible health and financial protection • Responsible investment • Sustainable business

> Read more on p.99 of our Sustainability Report


	14 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Market review

Multi-market growth engines

We have extensive access to some of the world's fastest growing

markets. Our strategic plan leverages this advantage to deliver growth

across our target markets.

Socioeconomic trends




Low life insurance penetration	Large health protection gap	High growth markets
Penetration of GDP¹ (%)	Asia Health Protection Gap²	Prudential's life markets forecast³
	c. $300 billion premium equivalent

3.8x

2.2x

2.1x

1.4x


g	Asia
g	World

Gross written premium

rebased 2015 to 100


	How Prudential is responding:
	Focused on being a trusted partner to our customers. Targeted investment in structural growth markets in Asia and Africa. Operational execution across our strategic pillars. Financial delivery for shareholders through our revised capital allocation framework.

(1) Swiss Re Institute; sigma No. 2/2025 - Insurance penetration (premiums as a percentage of GDP).

(2) Swiss Re Institute: Asia Life & Health consumer survey 2025. $300 billion protection gap covers Prudential markets only in premium equivalent terms. Combines mortality

protection gap (dependent support shortfall after primary income earner death) and health protection gap, defined as uncovered out-of-pocket health care costs that cause

financial strain to households.

(3) Source: Swiss Re sigma - Gross Written Premium growth 2015 to 2035. Asia excluding Australia, Japan, and Korea.


	15 Prudential plc Annual Report 2025

Greater China

Strong structural

demand across

Mainland China, Hong Kong,

Macau and Taiwan

Hong Kong and Macau

Demand drivers

Demand from Mainland Chinese visitors continues to be

a structural growth engine, while the domestic market is

bolstered by the net migration of skilled professionals.

Our platform to execute

– Scaled, tech enabled agency model. Long standing

exclusive bancassurance partnerships.

Taiwan

Demand drivers

Solid GDP growth and sustained long term

savings demand across a c.24m population.

Our platform to execute

– Competitive participating savings propositions

delivered through a multi-channel distribution

platform.

Mainland China

Demand drivers

Supportive regulatory environment, rising household

wealth and a health protection gap exceeding $140bn¹.

Our platform to execute

– Expanding bancassurance presence and ongoing

agency transformation.

– Nationwide coverage: 23 branches across

102 cities - which represent 80 per cent of GDP.

(1) Source: Swiss Re Institute. Asia Life & Health consumer survey 2025. Health

protection gap in premium equivalent terms.


	16 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Market review continued

ASEAN

Demand drivers

Access to a geographically diverse population

exceeding 700 million¹, low insurance penetration,

and presence across nine markets, anchored by

Indonesia, Malaysia and Singapore.

Our platform to execute

– Region’s leading multi-channel distribution franchise.

– Market leader in bancassurance – partnerships with established

bank partners.

– Indonesia: Balanced growth across agency and bancassurance,

with consistent leadership in the Syariah market.

– Malaysia: Multi-channel model underpins resilient performance

during agency transformation, with leadership in the Takaful

market.

– Singapore: High quality franchise, with a focus on strong adviser

productivity and product innovation to drive increased penetration

in the high-net-worth segment.

(1) Source: UN Department of Economic and Social Affairs World Population Prospects.

Building on our

market-leading

positions

Eastspring

Structural growth in Asia’s investment management market, supported by rising

wealth and increasing demand for long-term savings and investment solutions

Demand drivers

– New wealth creation of roughly $10 trillion annually¹.

– Ongoing global capital reallocation towards Asia – 38 per cent of expected global net new investment flows by 2027².

Our platform to execute

– Broad Asian footprint with around 400 investment professionals across 10 key markets.

– Partnership with Prudential’s life businesses.

– Strong investment capability; local insight and regional scale.

(1) Source: BCG Global Wealth Report 2025.

(2) Source: Broadridge APAC Quarterly Trends Report Q2 2025.


	17 Prudential plc Annual Report 2025

Africa

Population expected to

increase by ~50% by

2050¹, supporting long

term growth

Africa

Demand drivers

– Five market footprint; access to over 400 million

people and an aggregate GDP base of over $600

billion¹.

– Low insurance penetration.

– High out of pocket healthcare spending.

Our platform to execute

– Continued investment in agency capability.

– Expansion of bancassurance distribution (over 950

bank branches from more than 25 partnerships).

– Market leading positions in Uganda and Zambia.

(1) Source: United Nations Population Prospects and IMF World Economic Outlook.

Africa markets include Ghana, Kenya, Nigeria, Uganda and Zambia.

India

Long term growth

opportunity with under

penetrated market of

over 1.4 billion¹ people

India

Demand drivers

Life insurance penetration roughly 3 per cent².

Our platform to execute

– Long-standing partnership with ICICI bank across life

insurance and asset management.

– Well diversified distribution mix supporting scale and

resilience.

– Top five market position in life insurance.

– Progressing on regulatory approvals and operational

readiness for the future launch of our standalone

health insurance business.

(1) Source: UN Department of Economic and Social Affairs World Population Prospects.

(2) Source: Swiss Re Institute; sigma No. 2/2025 - Insurance penetration (premiums as a

percentage of GDP)


	18 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Advice and

protection matter

most when

life accelerates

Across our markets, trusted advice remains

central to how customers make decisions. Our

multi-channel model brings together professional

agents and strong bancassurance partnerships,

supported by local insight and deep customer

understanding.



New business profit per active agent increased 15% during 2025		27% growth in bancassurance new business profit in 2025, with 13 markets delivering double- digit growth


2^nd largest Million Dollar Round Table agency force globally		5 percentage point growth in bancassurance new business margin in 2025


	> Visit: www.prudentialplc.com to see our purpose in action


	19 Prudential plc Annual Report 2025


	20 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Health and

protection are

central to long-

term wellbeing

We are strengthening our health and protection

business to meet rising demand across Asia and

Africa. Through product innovation, better

provider management and disciplined pricing, we

are improving outcomes for customers while

supporting sustainable growth.

Over

540,000

new health customers¹ added in 2025

Health new business profit $m

+12%

+3%

YoY

CAGR

(1) All individuals covered by new health policies.


	> Visit: www.prudentialplc.com to see our purpose in action


	21 Prudential plc Annual Report 2025


	22 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Helping our

customers

understand their

future needs and

how we can help

As customers’ expectations evolve, we are

modernising how people engage with financial

and health solutions. By investing in technology

and data, we are making our products simpler to

access and easier to understand, supporting

confidence at the start of life’s journey.

Customer retention rate

88%

Customer rNPS


	> Visit: www.prudentialplc.com to see our purpose in action


	23 Prudential plc Annual Report 2025


	24 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Delivering for all

our stakeholders

over the long-term

Our long-term approach is delivering predictable

cash generation and resilient performance. By

writing high quality business and managing our

in force with care, we are creating confidence

for customers, employees and communities

today and dependable returns for shareholders

over time.



2025 Free surplus ratio¹ 221% (2024: 234%)		2025 GWS shareholder cover ratio 262% (2024: 280%)
Total 2025 dividend per share 26.60¢ (2024: 23.13¢)		Total 2025 capital returns to shareholders: $1.8 billion (2024: $1.4 billion)
IFRS shareholders' equity 790¢ per share (2024: 658¢ per share)		Group TEV equity 1,483¢ per share (2024: 1,289¢ per share)


	> Visit: www.prudentialplc.com to see our purpose in action

(1) Free surplus ratio at 31 December 2025 includes the net proceeds received from the IPO of IPAMC.


	25 Prudential plc Annual Report 2025


	26 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Strategic and operating review

Delivering high quality, consistent growth and

driving shareholder returns

In 2023, we launched our new strategy and with it we defined our

purpose – For Every Life, For Every Future. The strategy sets out our

priorities in transforming the business to one that would deliver high

quality consistent growth and drive compelling shareholder returns.

We are now over halfway through this transformation journey and

remain confident in meeting our two 2027 financial objectives¹ which

are:

– Growing new business profit over the period 2022 to 2027 at a

compound annual growth rate of 15–20 per cent; and

– Delivering in 2027 at least $4.4 billion of operating free surplus

generation from in-force insurance and asset management

business.

We are well positioned to deliver on our strategy and objectives.

Prudential is a trusted household brand across Asia, with a nearly 180-

year heritage. We operate a multi-market and multi-channel model

entirely focused on the growing markets across Greater China, the

countries within ASEAN, India and Africa. We are the only Asian

regional company offering both life insurance and stand-alone asset

management services. Our insurance businesses have top three

positions in seven Asian and two African markets² and offer life and

health insurance together with savings and investment products

across balanced and scaled distribution channels. Eastspring, our Asia-

based asset management business serves both in-house and third-

party clients, has over US$277 billion in funds under management

and is ranked in the top 10 in six of its markets.³

We delivered on our guidance for 2025 with each of new business

profit, basic earnings per share based on adjusted operating profit

and operating free surplus generated from in-force insurance and

asset management business growing by more than 10 per cent in

2025. The 2025 dividend per share increased by 15 per cent

compared with 2024. We continue to build our business by taking

action across our strategic pillars:

– In agency, we continue to professionalise our agency force,

through a focus on quality recruitment, improving agent

productivity and operational efficiency through digital solutions;

– In bancassurance, where growth remains high, we have focused

on quality, leading to improved product profitability. We continue

to deepen our strategic relationships, for example with Standard

Chartered Bank and CITIC, and selectively broadening our

partnerships, with successful activation of our new strategic

partnership with Bank Syariah Indonesia (BSI) in Indonesia;

– In health we are building the customer propositions to improve

experience and ensuring the internal discipline to profitably capture

the growing need for health and other protection cover in our

markets; and

– In customer we are continuing the roll out of our digital tools to

enhance customer servicing and engagement and focussing on

creating differentiated propositions that cater to different life

stages.

All of our strategic pillars are supported by our technology and

operations function. We are modernising, simplifying and

modularising our technology platform, so that it is scalable, more

resilient and operationally efficient. We are also using data and AI to

drive innovation and enhance growth and efficiency.

Alongside these operational deliveries we also completed a number of

strategic portfolio management actions. The initial public offering

(together with an earlier private placement, the IPO) of ICICI

Prudential Asset Management Company (IPAMC) in India

successfully completed in December. This generated proceeds (after

tax and costs) of $1.4 billion from the disposal of a proportion of our

interest. We also resolved the outstanding litigation in relation to our

Malaysia conventional life business, and in January 2026 we

increased our holding in this business to 70 per cent. In addition, we

have completed the divestment of our three Francophone Africa

businesses and Eastspring Korea.

We also completed the $2 billion share buyback programme that was

announced in 2024 and refined our capital allocation framework with

a desire to drive further shareholder returns. We now expect to return

more than $7 billion to shareholders over the period 2024-2027.

Further details are set out in the Capital management section below.

Outlook

The Group has a strong balance sheet and capital position. The

current global uncertainties, challenges and conflicts could have

implications for the wider economic and market environment in which

we will operate. However, we continue to see significant growth

opportunities in the markets in which we operate, with Asia life

insurance premiums growing twice as fast as other regions⁴ alongside

low insurance penetration and a large health protection gap. Our

performance in 2025 demonstrates we are well positioned to capture

this opportunity, given our leading positions across these high growth

markets, our balanced and scaled distribution channels, and our life

insurance and asset management capabilities.

In 2026 we expect Prudential to continue to deliver double-digit

growth across our three key metrics - new business profit, basic

earnings per share based on adjusted operating profit and operating

free surplus generated from in-force insurance and asset

management business.

Looking ahead, our focus remains firmly on high‑quality, sustainable

growth, disciplined capital allocation and delivering long‑term

shareholder value. We carry the momentum of 2025 into 2026 and

are firmly on track to achieve our 2027 financial objectives.

Key 2025 performance highlights⁵

All growth rates in the Strategic and Operating Review are reported

on a constant exchange rate (CER) basis unless otherwise stated.

Prudential delivered new business profit growth of 12 per cent,

delivering our guidance for growth of greater than 10 per cent. This

growth in new business profit is supported by a 6 per cent increase in

APE sales and margin expansion. Growth was broad based with 13 of

19 life insurance markets increasing new business profit in the year.

The trajectory of our operating free surplus generation from in-force

insurance and asset management business continued from the

inflection point noted in our 2025 half year report. Overall it grew by

15 per cent in 2025 to $3,059 million, reflecting the quality of new

business written in recent years, together with our ongoing actions to

improve cash generation and reduce operating variances.

The strength of our business is underpinned by the quality of our

multi-channel agency and bancassurance distribution platform. We

have the second largest number of Million Dollar Round Table

(MDRT) qualifying agents globally, and we remain the number one

independent insurer in Asia bancassurance⁶ with over 180 bank

partners across our markets, including 11 strategic partners.


	27 Prudential plc Annual Report 2025

Our agency channel delivered new business profit of $1,560 million,

up 4 per cent from the prior year (excluding the three businesses we

exited in Africa). Over the year we delivered an increase in agent

productivity, measured by new business profit per active agent, which

was up 15 per cent. The effect on new business profit was muted by a

fall in average monthly active agents, especially in our emerging

ASEAN markets. We remain focused on delivering our transformation

of this channel. Our priorities for building a professionalised agency

force are:

– quality recruitment supported by the roll-out of our PRUVenture

programme to further markets;

– increasing productivity through driving upward mobility to MDRT

qualification; and

– supporting the agency channel through new and enhanced

digital tools.

These digital tools include rolling out our digital agency platform

PRUForce, which empowers agents with lead management

capabilities through PRULeads.

Bancassurance new business profit increased 27 per cent to $1,033

million in 2025, with double-digit new business profit growth in 13 of

our markets. This growth was underpinned by an increase in margin

of 5 percentage points, supported by new product introductions,

repricing actions and favourable mix effects. APE sales growth in

bancassurance was led by our strategic partnerships with Standard

Chartered Bank (SCB) and CITIC bank, while our new partnership with

BSI has delivered over 7,500 new customers and is making a growing

contribution to Indonesia’s bancassurance business.

Hong Kong new business profit grew by 12 per cent, driven by sales

growth and margin enhancement across both domestic customers

and Mainland China visitors and both the agency and bancassurance

channels. We are confident in the continuation of the underlying

drivers of demand from both the domestic and Mainland China

visitors segments and for sustained quality growth for the Hong

Kong segment.

Indonesia delivered new business profit growth of 11 per cent, driven

by improvements in margin, supported by a shift towards higher

margin products.

Our Mainland China joint venture grew new business profit by 27 per

cent, driven by strong APE sales growth in the second half of the year.

It has continued its transformation journey with a double-digit

increase in new agency recruits and a deepening relationship with our

strategic partner, CITIC, where we accelerated sales momentum by

focusing on their top 50 outlets, driving stronger execution and

productivity. The business remains focused on delivering sustainable

high-quality growth, supported by disciplined risk management.

New business profit in Malaysia increased by 5 per cent, with a

decline in the first half of the year reversing in the second half as the

agency channel recovered strongly from market-wide disruption. Our

bancassurance channel continued to show strong growth with new

business profit up 21 per cent for the year.

Singapore saw APE sales growing strongly in the second half of 2025,

following the fall in volumes seen in the first half of the year. We have

seen a shift in demand towards savings and wealth products. Overall

new business profit increased 2 per cent in 2025. Our Singapore

business operates multi‑channel distribution through agency,

financial advisers and bancassurance, with strategic partnerships with

UOB and Standard Chartered providing broad access to target

customer segments. The business now has a comprehensive suite of

products to serve the high-net-worth segment and is focused on

building momentum for the future.

Our growth markets and other segment collectively delivered growth

of 12 per cent in new business profit driven by Taiwan and Thailand,

partially offset by continuing headwinds in Vietnam.

Eastspring's funds under management and advice, which includes

contributions from its wholly-owned, joint venture and associate

businesses increased by 8 per cent (on an actual exchange rate basis)

from $258.0 billion at 31 December 2024 to $277.7 billion at 31

December 2025. The growth reflected large positive inflows from

external retail clients and our life businesses as well as positive market

movements. These increases were partly offset by reductions from

the partial disposal of our investment in IPAMC, following its IPO, and

the sale of Eastspring Investments Korea.

Earnings per share based on adjusted operating profit was 101.4

cents, representing an increase of 12 per cent, in part reflecting a 5

per cent reduction in the average number of shares in issue over the

year. Adjusted operating profit before tax increased 5 per cent to

$3,306 million compared with 2024. IFRS profit after tax for 2025

was $4,119 million (2024: $2,439 million on a constant exchange

rate basis, $2,415 million on an actual exchange rate basis), reflecting

the growth in adjusted operating profit and the gain on partial

divestment of our shares in IPAMC, together with improved short-

term market fluctuations in 2025 as compared with the prior year.

Capital management

The Group's regulatory capital position remains strong, with an

estimated shareholder surplus above the Group's Prescribed Capital

Requirement (GPCR) of $17.1 billion at 31 December 2025 (31

December 2024: $15.9 billion on an actual exchange rate basis) and

a cover ratio of 262 per cent (31 December 2024: 280 per cent). Our

free surplus ratio at 31 December 2025 was 221 per cent⁹ (31

December 2024: 234 per cent).

A total dividend of 26.60 cents per share was approved for 2025, up

15 per cent, with a 2025 second interim dividend of 18.89

cents per share.

In August 2025, the Group provided a capital management update.

In this update we explained that, given the Group's capital strength

and the inflection point reached in our operating free surplus

generation, we have shifted our capital allocation framework towards

a total return orientation. Our dividend policy, which remains

unchanged, is to grow dividends broadly in line with the Group’s net

operating free surplus generation after allowing for new business

investment, central costs and investment in capabilities. In addition to

the ordinary dividend, the Board will now consider making additional

recurring returns of capital out of the annual flow of capital

generation. Capital returns will be set taking into account the Group's

financial condition and prospects, applicable capital and solvency

requirements, investment opportunities, market conditions and the

general economic environment.

In the near term, this results in the following expectations:

– An increase of more than 10 per cent in the total ordinary dividend

per share for each of 2026 and 2027; and

– Additional returns of capital to shareholders: $500 million of share

buybacks in 2026 and $600 million in 2027¹⁰.

In addition, we will make additional returns of $700 million in 2026

and plan $700 million in 2027¹⁰ from the net proceeds from the

recently completed IPO of IPAMC.

Overall we expect that more than $7 billion will have been returned to

shareholders over the period 2024–2027.

Further details on the Group's revised capital allocation framework

and dividend policy are included in the Financial review.


	28 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Strategic and operating review continued

Progress within our three strategic pillars


	Technology-powered distribution
	Prudential’s diversified distribution platform is focused on growth and innovation. It is centred around agency and bancassurance; in agency we are focused on improving productivity and quality recruitment; in bancassurance we are supported by partnerships with quality banks in Asia and Africa.

– Agency


	2025 $m	2024 $m	AER change %	CER change %	CER change excluding disposed entities ⁸ %
Agency new business profit	1,560	1,507	4%	3%	4%

Our agency channel remains central to the Group’s growth strategy

and is a significant competitive advantage, representing over half of

Group new business profit in 2025. We continue to make progress

with our ambition to more than double new business profit per active

agent and deliver a two-and-a-half to three times increase in agency

new business profit from 2022 levels by 2027. Strengthened agent

quality and enhanced productivity were features of the channel's

transformation in 2025. Over the period 2022 to 2025, the

compound average growth rate of new business profit generated by

the agency channel is 19 per cent in total.

We remain focused on the key drivers of growth: driving upward

mobility of agents to the Million Dollar Round Table (MDRT) level,

recruiting high quality agents and using technology, including AI, to

support increased productivity and agent activation. To support this,

we are carrying out a substantial investment programme which made

good progress in 2025. This included enhancing our recruitment

proposition and selection processes, with an increasing focus on

quality. During 2025 we increased the contribution to APE sales from

our MDRT qualifiers, supported by AI-enabled bespoke digital

learning & development programmes, and solidified our position as

the second-largest MDRT agency force globally.

Agency new business profit grew 3 per cent year‑on‑year to $1,560

million (an increase of 4 per cent excluding the three businesses we

exited in Africa), supported by higher sales volumes, with APE sales up

1 per cent to $2,778 million and continued margin improvement. This

performance reflects an uplift in agent productivity and quality across

multiple markets.

Growth in agency new business profit was driven by our developed

markets of Hong Kong and Singapore, supported by our emphasis on

quality recruitment, targeted upskilling programmes and expansion of

our health and protection proposition. Hong Kong continued the

successful execution of quality recruitment initiatives such as

PRUVenture, coupled with continued upskilling and a focus on upward

mobility. 2025 also saw the launch of a first-in-market whole life

limited pay hospital cash protection plan in Hong Kong. In Singapore

agency momentum built in the second half of the year, reflecting

improvement in agent productivity.

In our emerging ASEAN markets, our focus is on quality agent

recruitment and while overall active agent numbers declined in the

year, new business profit per active agent rose. Following the success

of PRUVenture in Hong Kong, we are expanding this recruitment

initiative to these markets. In 2025 we launched PRUVenture in

Malaysia and saw promising growth in active agents in the second

half of 2025 compared with the first half. This helped deliver double-

digit growth in agency new business profit in the second half

compared with the same period in the prior year.

Market innovation continued with the launch of a generative AI‑led

performance management platform (PruAction) in Singapore,

providing real‑time insights to support agent productivity

improvements and goal achievement. Rollout to additional markets is

planned for 2026.

Driving agent productivity

We delivered a 15 per cent increase in monthly new business profit

per active agent in 2025, with productivity gains in the second half of

the year double those in the first. These improvements were led by

strong upward mobility in the affluent plus segment and high‑value

MDRT cohorts across Singapore, Malaysia, Indonesia and Africa.

Our long‑term global partnership with MDRT.org continued to support

uplift in agent capabilities through bespoke learning and

development. Our MDRT agents grew their APE sales by 4 per cent in

the year and contributed 59 per cent of agency new business profit in

2025.

While productivity improved, overall monthly average active agents

numbered 57,000, lower year‑on‑year, with declines in emerging

ASEAN markets, particularly the Philippines and Vietnam. This, in part,

reflects management actions to accelerate quality‑driven

transformation in these historically mass‑recruitment markets. In

contrast, Hong Kong, Singapore and Malaysia recorded strong

momentum in the second half of the year with monthly average

active agent numbers higher than in the first half, supported by

quality recruitment and enhanced upskilling initiatives.

Quality Recruitment

Our focus is on attracting and enabling agents who can deliver

sustained performance and, in particular, drive increased health and

protection as a proportion of our sales mix.

Our PRUVenture quality‑focused recruitment programme continued

to scale across markets, driving higher activation and sustained

productivity, led by Malaysia where PRUVenture recruits in 2025

delivered six times higher APE sales per agent compared with

non‑PRUVenture recruits. Following strong results in Hong Kong and

Malaysia we will continue to roll out best practices to other ASEAN

emerging markets.

These outcomes demonstrate the success of our strategy toward

building high‑quality, professional agency teams with strong

long‑term potential.

Upskilling our agency force

In 2025 we moved into the next phase of our company‑wide

transformation programme to build a full‑time, professional and

advisory‑led agency channel. Key initiatives included:

– Enhancing recruitment propositions, selection processes and leader

capability development;

– Scaling learning and development curricula, including AI‑enabled

and digital learning;

– Deploying real‑time performance insights through GenAI tools

such as PruAction; and

– Strengthening our propositions for relevant segments of customers

across Hong Kong, Singapore, Malaysia and Indonesia to improve

client service and deepen long‑term relationships.


	29 Prudential plc Annual Report 2025

These investments are creating a future‑fit, tech‑enabled agency

force equipped to meet evolving customer needs.

Bancassurance


	2025 $m	2024 $m	AER change %	CER change %
Bancassurance new business profit	1,033	793	30%	27%

Prudential’s bancassurance business continues to strengthen as a

core component of our technology‑enabled distribution strategy. By

combining deep partnerships with leading banks and increasingly

sophisticated digital capabilities, we are improving the reach, quality

and consistency of customer engagement across our Asian and

African markets. Our long‑term focus remains on scaling high‑quality

growth, broadening customer access and enhancing partner

productivity in a disciplined and sustainable way.

In 2025, our bancassurance channel delivered another year of strong

progress towards our 2027 ambition to increase new business profit

to one‑and‑a‑half to two times the 2022 level. Full year

bancassurance new business profit reached $1,033 million,

representing a 27 per cent increase compared with the prior year. This

performance reflects sustained execution across markets, with 13

markets delivering double-digit growth, and the continued

effectiveness of our product and distribution strategies.

This growth was underpinned by disciplined volume expansion, with

APE sales increasing 11 per cent to $2,873 million, and margin

enhancement supported by new product introductions, repricing

actions and favourable mix effects.

Deepening regional and local partnerships

Our bancassurance success continues to be driven by longstanding

regional partnerships—for example with Standard Chartered Bank

(SCB) and CITIC—and complemented by strong contributions from

local partner networks. Through co‑developed distribution models and

targeted capability building, we generated over 200,000 new-to-

bancassurance customers from strategic partners in 2025.

We continue to broaden our reach with new partners such as BSI in

Indonesia and CIMB in Singapore. The activation of our strategic

partnership with BSI in Indonesia has expanded our access to the

high‑potential Syariah segment. A broad suite of protection and

savings products has been introduced, enabling BSI to contribute

meaningfully to Indonesia’s bancassurance business with over 7,500

new customers since inception.

Beyond exclusive partnerships, non‑exclusive relationships delivered 7

per cent APE sales growth, reinforcing the resilience and diversity of

our bancassurance distribution platform.

Expanding Solutions for all customer segments

We continue to enhance our product suite, ensuring that customers

benefit from solutions that reflect their evolving financial, health and

protection needs. Key developments during the year include:

– Launch of a first‑in‑market whole life limited pay hospital cash

protection plan in Hong Kong;

– Introduction of a combined critical illness and savings solution for

SCB Malaysia customers;

– A new high‑end medical plan for bank partners in Taiwan;

– Wealth and legacy planning solutions for high‑net‑worth

customers, including a new legacy protection plan in Hong Kong

and Whole Life Legacy offerings in Malaysia, Taiwan, Indonesia

and Thailand; and

– Mass‑market propositions through the BSI partnership, including

PruSafar, designed for customers undertaking the Hajj.

These developments further strengthen the breadth and relevance of

our customer propositions.

Partner Capability and Digital Enablement

Digital and analytics‑driven enhancements remain central to

improving customer journeys and advisor productivity. We continue

to embed data‑led tools that support more personalised engagement

and improve sales effectiveness across partner networks.

Supporting bank partner capability remains a priority. In 2025, in

partnership with SCB, we delivered holistic training to over 150 SCB

employees across key roles in the bancassurance partnership. In

2026, we will extend this effort, scaling reach to sales leaders and

integrating AI‑enabled coaching to further enhance partner

effectiveness.

Transforming the health business model

We continue to make strong progress in

transforming our health business, an

important component of our wider health

and protection offerings. Our dedicated

health operating model has now been in

place for two years, and we are building

momentum across product innovation,

advanced claims and provider management

and empowering more sales teams to

become champions of health.

In 2025, our health and protection business contributed 36 per cent

of total new business profit. Of this, health new business represented

one quarter at $265 million, an increase of 3 per cent from the prior

year. New business profit from the health business has increased at

an average rate of 12 per cent from 2022 to 2025, reflecting our

disciplined product repricing, improved new business margin and a

continued focus on portfolio sustainability.

We took decisive actions to keep healthcare affordable for customers.

Against a backdrop of double‑digit medical inflation across many of

our markets, we contained our medical cost growth to single digit by

renegotiating provider contracts, strengthening claims management,

increasing our focus on Group fraud, waste and abuse management,

which lead to savings of over $100 million in 2025, and embedding

more sustainable product design.

Following our announcement to establish a standalone health

insurance business in India, we are progressing on regulatory

approvals and operational readiness, positioning us for a launch in the

near future.

This year, we refreshed our health value proposition, anchored by a

long-term vision: To give peace of mind to every patient in Asia and

Africa, and a customer promise: Help when you need it most. A

Prudential health policy provides customers with peace of mind,

ensuring that when care is needed, they are protected. Throughout

the journey, we help customers understand what is happening, and

what to expect next.

We introduced the Peace of Mind Plan as a clearer articulation of our

health strategy, focused on five actions: tailored propositions;

operational excellence; end worry and hassle; guide patients at every

step; and make sales teams champions of health.

Tailored propositions

We continue to develop innovative, segment-specific, integrated

propositions that address diverse customers' needs across our

markets. In Hong Kong, we launched Encash, combining health,

protection and savings to meet evolving customer needs for financial

security and peace of mind. This innovation reflects our strategy to


	30 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Strategic and operating review continued

differentiate through customer-centric design and long-term value

creation.

In 2025, we provided cover to over 540,000 new health insurance

customers¹¹ across Asia, reflecting strong demand for our

differentiated health proposition and the effectiveness of our

segmented product strategy.

Operational excellence

We continue to strengthen our claims, underwriting and fraud, waste

and abuse management, to better manage medical costs and keep

healthcare affordable. In 2025, we deployed a GenAI solution in close

partnership with Google to support medical claim adjudication in

Malaysia. We also introduced Data Insights from Claims Experience

(‘DICE’) in Indonesia and Malaysia, alongside our Group fraud, waste

and abuse framework with market-specific operating models.

We also continue to enhance our health underwriting capabilities

through data-driven, inclusive guidelines and AI-powered solutions

designed to increase underwriting automation and efficiency. In

Hong Kong, we launched MedScreen+, an innovative AI underwriting

tool to provide a faster, simpler and more transparent underwriting

process for underwriters, while supporting our financial consultants

with instant and indicative underwriting results for customers.

End worry and hassle

We continue to enhance our health customer journey by expanding

self-service capabilities in PRUServices. In 2025, we launched core

health functionalities that allowed customers to track the status of

their claims and submit claims efficiently in Singapore, Malaysia and

Indonesia, enhancing the overall claims experience and reducing the

servicing burden on our agents.

Guide patients at every step

We continue to build Guided Care - our signature experience designed

to support our customers end-to-end, from symptom triage and

appointment booking to post-care follow-up, supported by our

PRUHealth team nurses. In 2025, we launched pilots in Hong Kong

and Indonesia to facilitate breast cancer screening appointments and

validated that patients value additional support when they need it

most.

We also accelerated the development of a tiered regional provider

network to enhance control over medical claims costs and improve

health outcomes, delivering the annualised claims savings as

previously outlined.

Make sales teams champions of health

We are empowering our sales teams to sell health products more

effectively through targeted training and enhanced performance

management. Technology also played a role: in Singapore, we

introduced a Health AI chatbot to help agents access information

more quickly, alongside recognition programmes that incentivise

health sales. Together, these actions supported over 48,000 active

health agents across our health priority markets in selling health

policies during the year.


	Enhancing customer experiences
	At Prudential, we are relentlessly focused on serving customers well. We believe that satisfied, loyal customers help us drive higher customer lifetime value. We have been making good progress to achieve our vision of enhancing customer experience.

We remain firmly committed to delivering best‑in‑class experiences

that earn the long‑term trust of our customers. Our ambition is to

achieve top‑quartile performance in the relationship net promoter

score (rNPS), a measure of how likely customers are to recommend

Prudential, and to reach customer retention rates of 90–95 per cent

by 2027. As at full year 2025, six of our business units⁷ were

performing in the top quartile based on rNPS, reflecting continued

year‑on‑year improvement in advocacy and satisfaction. Eight out of

ten business units improved their rNPS in 2025 compared with 2024.

Customer retention increased by 1 percentage point to 88 percent,

illustrating further progress toward our 2027 target.

These outcomes demonstrate the strength of our customer‑centric

approach and the impact of our strategic focus on delivering

consistently positive experiences.

Compelling and differentiated propositions for every stage

of life

We continue to design and deliver customer‑led propositions tailored

to the evolving needs of individuals and families across our markets.

Our product suite remains comprehensive and aligned to diverse life

stages, addressing health, protection and wealth needs across income

segments. Highlights in 2025 include:

– Health and Protection:

– In Malaysia, PRUWith You Plus offers a flexible plan with an

increasing sum assured, enabling customers to adapt their

coverage over time. It also strengthens family protection by

providing additional children’s coverage at no extra cost, without

required underwriting.

– In Hong Kong, we introduced Prime Vantage Prestige Protector,

a single‑premium life protection product launched in December

2025. It enhances legacy planning flexibility, provides updated

guaranteed death benefits, and extends coverage to the juvenile

segment, with streamlined onboarding for

high‑net‑worth clients.

– In Taiwan, we expanded our participating product suite by

integrating health and protection benefits, offering solutions

tailored to needs such as critical illness, severe cancer, and

all‑cancer protection.

– Savings and Investment – We continue to strengthen our wealth

offerings in key markets:

– In Hong Kong, the Entrust Multi‑Currency Plan launched in

February meets increasing demand for currency flexibility,

supporting advanced legacy planning and multi‑currency wealth

solutions.

– In Singapore, we expanded our high‑net‑worth proposition with

a multi‑pay Indexed Universal Plan, building on the success of

the earlier single‑premium version. This offering enables high-

net-worth clients to grow, protect and transfer wealth

across generations.


	31 Prudential plc Annual Report 2025

Delivering a seamless, technology-enabled customer journey

Delivering consistently excellent customer experiences requires

integrated digital capabilities embedded across the customer

lifecycle. In 2025, we accelerated this transformation through

upgrades to our digital servicing platforms and continued investment

in data and automation.

A key milestone this year was the enhancement of PRUServices, our

digital self‑service platform, which now incorporates real‑time

feedback to further elevate customer journeys. PRUServices is live in

nine business units⁷ as of March 2026. Increased adoption of the

platform demonstrates meaningful channel shift towards digital

self‑service. The proportion of new business-processing through auto-

underwriting was 70 per cent in December 2025.

We are also leveraging artificial intelligence across several customer

touchpoints. AI‑enabled claims adjudication is improving speed,

accuracy and efficiency in claims processing, enhancing overall

satisfaction while supporting operational scalability.

Building advocacy for lifetime value

We continue to strengthen how we engage customers through

personalised, timely, and data‑led interactions. Our Customer

Engagement Platform (CEP)—a key enabler of long‑term advocacy—

is now active across ten business units⁷. CEP enables us to tailor

communications by using AI to trigger engagement based on

real‑time events, using timing and content that is likely to be the most

valued by the customer.

In 2025, over $300 million of APE sales were generated from

customers who interacted with Prudential via the platform,

demonstrating the material commercial impact of enhanced

engagement. We will continue to expand the depth and intelligence

of CEP through AI‑powered personalisation and data‑driven insights

to further improve lead quality and nurture long‑term customer

relationships.

Notes

(1) The objectives assume exchange rates at December 2022 and are based on regulatory and solvency regimes applicable across the Group at the time the objectives were

set. The objectives assume that the same TEV and free surplus methodology will be applicable over the period and no material change to the economic assumptions will

occur.

(2) As reported at full year 2025 unless otherwise specified. Sources include formal (eg competitors' results releases, local regulators and insurance association) and informal

(industry exchange) market share. Ranking based on new business (APE sales, weighted new business premium, retailed weighted received premium, full year premium or

weighted first year premium) or gross written premium depending on availability of data. Hong Kong ranking based on APE sales. Rankings in the case of Mainland China,

Taiwan and Myanmar are among foreign insurers, while for India they are among private companies. Markets based on nine months ended September 2025: Mainland China,

Hong Kong, three months ended March 2025: PPMZ (Africa), full year 2024: Laos, Nigeria (Africa), Uganda (Africa), Zambia (Africa) and full year 2023: Ghana (Africa) and Kenya

(Africa).

(3) As reported at full year 2025. Sources include local regulators, asset management association, investment data providers and research companies (eg Morningstar, Lipper).

Rankings are based on total funds under management (including discretionary funds, where available) of onshore domiciled funds or public mutual funds of the respective

markets.

(4) Source: Swiss Re Institute - gross written premium growth 2015 to 2035 in Asia excluding Australia, Japan, and Korea.

(5) As in previous years, we discuss our performance in this report on a constant currency basis, unless stated otherwise. We discuss our financial position on an actual exchange

rates basis, unless otherwise noted. See note A1 to the IFRS financial statements for more detail on our exchange rate presentation. The definitions of the key metrics we

use to discuss our performance are set out in the "Definitions of performance metrics" section later in this document.

(6) Based on full year 2024 data from local regulators, industry associations and Prudential internal data. Estimates are based on market intelligence, if data is not publicly

available.

(7) Business units equate to legal entities in this instance.

(8) Growth rate excluding disposed of Beneficial Africa businesses (Cameroon, Togo, Cote de Ivorie) from 2025 and 2024 comparatives.

(9) Free surplus ratio at 31 December 2025 includes the net proceeds received from the IPO of IPAMC

(10) Subject to Hong Kong Insurance Authority approval.

(11) All individuals covered by new health policies.


	32 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Our business model

We are Prudential.

For every life, we are partners.

For every future, we are protectors.

Key resources, relationships

and differentiators

Customers and Brand

Prudential focuses on delivering high‑quality customer experiences

that build long‑term trust and value. We are a trusted household

brand with a nearly 180–year legacy.

We are investing in digital capabilities to strengthen service

efficiency and personalise engagement.

Markets

Few businesses have the breadth of our access to the world’s

fastest-growing insurance markets across Asia and Africa, which

have low insurance penetration and a large health protection gap.

We hold top-three positions in seven out of the 14 Asian life markets

and two out of the five African life markets in which we have a

presence¹.

Eastspring, our in-house asset manager, spans 10 markets, manages

$277.7 billion of assets and occupies top-10 positions in 6 of its

markets².

Products

The Group offers customer‑led health, protection, savings and

investment solutions tailored to changing needs across life stages,

including high‑net‑worth and multi‑currency propositions.

We seek to develop new and enhanced propositions in each of our

markets to ensure we continue to meet the evolving needs of

our customers.

Distribution

Prudential has a multi-channel distribution platform of scale. We

have one of the largest agency forces in Asia, and we are the

number one independent insurer in Asia bancassurance.

We have scale in both agency and bancassurance channels with

around 57,000 average monthly active agents across 2025 and

more than 180 bank partners, 11 of which are strategic.


	>	See more on our strategic pillars of technology powered distribution, transforming the health business model and enhancing customer experiences on pages 28 to 31

How we create value

We exist to help people achieve financial security and peace of

mind by providing life insurance, health protection, and asset

management solutions across Asia and Africa. Our goal is to

deliver sustainable long-term value for customers, shareholders,

and communities.

Underpinned by our commitment to

sustainability

> p.98

Focusing on our rigorous risk management

> p.56

(1) See note (2) to the strategic and operating review for basis.

(2) See note (3) to the strategic and operating review for basis.


	33 Prudential plc Annual Report 2025

Writing new business

We sell products designed to meet the

needs of customers and support our agents

in the sales process. We aim to write new

business that provides attractive returns to

our shareholders.


l	Key metric: New business profit

Managing the monies and policies

of our existing customers

By putting the customer at the heart of

what we do, we seek to retain them

alongside managing the investments that

back their policies and the costs of running

our business.


l	Key metric: Embedded value and funds under management

Allocating capital

We reinvest the cash flow generated by

existing policies into new business and

extending our customer, digitally-

enabled distribution and health

capabilities, compounding the growth

of the business. These cash flows are

also used to meet our central costs and

pay recurring returns to shareholders.


l	Key metric: Operating free surplus generation from in-force insurance and asset management business


	Value we create for stakeholders
	Customers
	We aim to deliver superior customer experiences. Our mission is ‘to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions’. How we are delivering for our customers will be assessed against our ambition to achieve top quartile relationship NPS by 2027 and our customer retention rate.

	Employees
	We provide an inclusive working environment where we develop talent, reward performance, protect our people and value our differences. We measure success for our employees through engagement scores from annual surveys.

	Shareholders
	We can accelerate value creation for our shareholders and other stakeholders by exercising operational and financial discipline as we execute our strategy. Our ambition is to grow new business profit at a CAGR of 15 to 20 per cent between 2022 and 2027 and to deliver at least $4.4 billion of operating free surplus generation from in-force insurance and asset management business in 2027.

	Communities
	Our purpose reflects our commitment to the wider communities in which we operate, through meeting the underserved needs of our markets and supporting a more sustainable future. Our commitment to sustainability is underpinned by our ambition to achieve net zero by 2050 and a 55% reduction in weighted average carbon intensity (WACI) by 2030 against our 2019 baseline.

6 business

units

with top quartile rNPS in 2025

Retention rate of 88% in 2025

Our ambition is

top quartile

employee engagement when compared

to our peers.

$2.8bn 2025 new business

profit (2024: $2.5bn)

$3.1bn 2025 OFSG from in-

force insurance and asset management

business (2024: $2.7bn)

$1.8bn capital returns to

shareholders in 2025 (2024: $1.4bn)

53%

2025 reduction in WACI from 2019

baseline


	34 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review

Delivering quality growth, maintaining a

strong balance sheet and enhancing

capital returns

Our financial performance in 2025 demonstrated the strength of our

business model and our balance sheet as we both delivered high

quality growth and enhanced capital returns to our shareholders.

In line with our guidance, we delivered double-digit growth across all

of our key financial performance metrics¹. This performance

reinforces our confidence both in delivering double-digit growth in

2026 and in achieving our 2027 new business profit and gross

operating free surplus generation objectives².

As we progressed along the path we set for ourselves to deliver our

2027 objectives, we reached an inflection point in our organic capital

generation. This, alongside the Group’s capital strength, underpinned

the update of our capital allocation framework in August 2025, where

we shifted towards a total return orientation.

In addition, we also completed a number of important actions

demonstrating our disciplined approach to capital allocation. These

included the initial public offering (together with an earlier private

placement, the IPO) of IPAMC in India, where we disposed of a

portion of our interest, reducing our holding from 49 per cent to 35

per cent, resulting in proceeds after deducting costs and tax of $1.4

billion. Other actions completed include the $2 billion share buyback

launched in 2024, and the sales of Eastspring Korea and our three

Francophone Africa businesses. We also issued our inaugural

Singapore dollar-denominated bond on attractive terms. Following

the conclusion of the litigation regarding the ownership of our

Malaysia conventional life business in 2025, we increased our holding

in this business to 70 per cent at an attractive price in January 2026.

2025 saw generally lower government bond yields, both in the US

and across many of our Asia markets. The US 10-year yield reduced to

4.3 per cent from 4.7 per cent at the end of 2024, with larger

reductions notable in Singapore and Indonesia.

Equity market performance was relatively volatile, but with many

indices recording double-digit growth over the year. The S&P 500

Index increased by 16 per cent, the MSCI Asia ex Japan Index

increased by 27 per cent and the Hang Seng Index increased by 28

per cent.

The period was also characterised by considerable foreign exchange

volatility, with the US dollar weakening compared with most global

currencies.

As in previous periods, we comment on our performance below in

local currency terms (expressed on a constant exchange rate basis) to

show the underlying business trends in periods of currency movement.

We discuss our financial position on an actual exchange rate basis,

unless otherwise noted. All metrics used by management to assess

performance (along with IFRS profit after tax) are before deducting

the amount attributable to non-controlling interests, unless otherwise

stated in the definition. Balance sheet metrics are presented net of

non-controlling interests. As previously indicated, from the start of

2025, the Group adopted the ‘Traditional Embedded Value’

framework for embedded value reporting, and all related disclosures

are presented on this basis. The definitions of the key metrics we use

to discuss our performance in this report are set out in the 'Definitions

of performance metrics' section later in this document.

We continued to build our record of high-quality, double-digit growth,

with new business profit up 12 per cent. This reflects the benefit of

our diversified platform across Asia and Africa, and across distribution

channels, driving consistent double-digit growth in every quarter of

the year. We continue to prioritise profitable new business with

attractive capital generation profiles and, accordingly, new business

margins increased by two percentage points. Over one third of our

new business profit is from health and protection products, and a

further half from participating and linked savings products, limiting

our market risk exposure.

Operating free surplus generated from in-force insurance and asset

management grew by 15 per cent, marking an inflection point in the

trajectory of one of our key financial performance metrics,

consistent with the path we set out to deliver our 2027 objective as

we grow our business and take strategic actions to improve our in-

force performance.

These actions, particularly in health claims management and in

containing costs, have resulted in a material reduction in the level of

adverse operating variances impacting operating free surplus

generated. The total of changes in operating assumptions, experience

variances and other items was $(275) million in 2025 and included

$(230) million of investment in enhancing our customer, distribution,

health and technology capabilities, in line with our strategy. The

residual amount of $(45) million was down from $(107) million

in 2024.


	35 Prudential plc Annual Report 2025

Our embedded value operating profit was up 15 per cent, driven by

growth in new business and in-force profit, supported by broadly

stable central expenditure. This resulted in an increase in Group

embedded value. Group TEV equity at 31 December 2025 was

$37,803 million (31 December 2024: $34,267 million), equivalent to

$14.83 per share (31 December 2024: $12.89 per share on an actual

exchange rate basis), an increase of 15 per cent. Our operating return

on embedded value improved one percentage point to 15 per cent.

IFRS adjusted operating profit after tax was up 7 per cent and,

combined with a 5 per cent reduction in the weighted average

number of shares driven by the share buyback, resulted in basic

earnings per share based on adjusted operating profit growing by 12

per cent. Our CSM rose 14 per cent (on an actual exchange rate basis)

to $25.0 billion in the year, primarily reflecting strong new business

CSM growth of 9 per cent and favourable economic and foreign

exchange impacts.

After the net positive impact of short-term market fluctuations

(including interest rates) and the overall benefit of corporate

transactions, driven by the gain on disposal of a portion of our

interest in IPAMC, IFRS profit after tax was $4,119 million (2024:

$2,415 million on an actual exchange rate basis, $2,439 million on a

constant exchange rate basis). This profit, along with $443 million of

positive foreign exchange rate movements but partially offset by

$(1,828) million of returns to shareholders, led to an increase in IFRS

shareholders' funds, which were up 15 per cent to $20,117 million at

31 December 2025 (31 December 2024: $17,492 million).

Our IFRS net asset value per share and adjusted total comprehensive

equity per share rose to $7.90 and $16.51 per share respectively (31

December 2024: $6.58 and $13.79).

Our operating return on IFRS shareholders' equity was 14 per cent

(2024: 14 per cent).

Our capital allocation framework continues to target holding a

resilient regulatory capital position. Our period-end GWS shareholder

cover ratio was 262 per cent.

As part of our regular financing plans, we issued SGD 600 million

(USD 462 million, net of costs) of subordinated debt at an attractive

coupon of 3.8 per cent – an inaugural raising of debt in an Asian

currency further demonstrating our credit standing and access to

capital. At 31 December 2025, our Group leverage ratio (Moody's

basis) was 13 per cent, unchanged from the end of 2024. During the

year, S&P Global Ratings upgraded the Financial Strength rating of

Prudential's core entities to ‘AA’ from ‘AA-’, consistent with our

ambition to remain an ‘AA’ company and reflecting our balance

sheet strength.

This balance sheet strength, together with the progress of the

business and the trajectory of our operating free surplus generation,

enabled us to shift our capital allocation framework towards a total

return orientation.

Our priorities in allocating capital under our capital management

framework and our dividend policy, which is unchanged, is set out

later in this section. We announced in August 2025 a revision to this

framework which set out our expectations for the following in the

near term:

– An increase of more than 10 per cent in the total ordinary dividend

per share for each of 2026 and 2027; and

– Additional returns of capital to shareholders: $500 million of share

buybacks in 2026 and $600 million in 2027⁷ in addition to the

return of the net proceeds from the IPO of IPAMC.

We will continue to assess the deployment of free surplus in the

context of the Group's growth aspirations, leverage capacity and

liquidity and capital needs, based on the free surplus ratio. We seek to

operate with a free surplus ratio of between 175 per cent and 200 per

cent. At 31 December 2025 the free surplus ratio was 221 per cent

lower than last year as we executed our plans to return capital to

shareholders, returning $1.2 billion in 2025 as we completed our $2

billion share buyback programme launched in 2024. Excluding the net

proceeds received from the IPO of IPAMC, the free surplus ratio was

204 per cent. If the free surplus ratio is above the operating range

over the medium term, and taking into account opportunities to

reinvest at appropriate returns and allowing for market conditions,

capital will be returned to shareholders.

In line with the dividend policy, the Board has approved a second

interim dividend of 18.89 cents per share (2024 16.29 cents per

share). When combined with the first interim dividend, the Group’s

total 2025 dividend is 26.60 cents per share, an increase of 15 per

cent over 2024. We launched a $1.2 billion buyback in January 2026

comprising $500 million of recurring capital returns and $700 million

of net proceeds from the IPAMC IPO. The balance of the net

proceeds from the IPAMC IPO will be returned to shareholders

during 2027⁷.


	36 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued


IFRS profit
	Actual exchange rate			Constant exchange rate
	2025 $m	2024 $m	Change %	2024 $m	Change %
Hong Kong	1,219	1,069	14	1,070	14
Indonesia	250	268	(7)	258	(3)
Mainland China	411	363	13	363	13
Malaysia	410	338	21	361	14
Singapore	706	693	2	709	–
Growth markets and other	614	688	(11)	689	(11)
Insurance business	3,610	3,419	6	3,450	5
Asset management	329	304	8	301	9
Total segment profit	3,939	3,723	6	3,751	5
Other income and expenditure
Net investment return and other items	(41)	21	n/a	21	n/a
Interest payable on core structural borrowings	(184)	(171)	(8)	(171)	(8)
Corporate expenditure	(237)	(237)	–	(237)	–
Other income and expenditure	(462)	(387)	(19)	(387)	(19)
Restructuring costs	(171)	(207)	17	(207)	17
Adjusted operating profit before tax	3,306	3,129	6	3,157	5
Non-operating items:
Short-term interest rate and other market fluctuations	120	(105)	n/a	(97)	n/a
Gain (loss) attaching to corporate transactions	1,515	(71)	n/a	(74)	n/a
Profit for the year before tax	4,941	2,953	67	2,986	65

Adjusted operating profit before tax	3,306	3,129	6	3,157	5
Tax on operating items	(534)	(547)	2	(555)	4
Adjusted operating profit after tax	2,772	2,582	7	2,602	7
Short-term interest rate and other market fluctuations	120	(105)	n/a	(97)	n/a
Gain (loss) attaching to corporate transactions	1,515	(71)	n/a	(74)	n/a
Tax (charge) credit attributable to items above	(288)	9	n/a	8	n/a
Profit for the year after tax	4,119	2,415	71	2,439	69


IFRS earnings per share
	Actual exchange rate			Constant exchange rate
	2025	2024	Change %	2024	Change %
Basic earnings per share based on adjusted operating profit after tax	101.4¢	89.7¢	13	90.2¢	12
Basic earnings per share based on IFRS profit after tax	154.2¢	84.1¢	83	84.8¢	82

Adjusted operating profit reflects the fact that the assets and

liabilities of our insurance businesses are held for the longer term.

Consequently, the Group believes that the 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.

Group IFRS adjusted operating profit was $3,306 million, an increase

of 5 per cent, reflecting a 5 per cent increase in profits from our long-

term insurance business and a 9 per cent increase in adjusted

operating profit generated by Eastspring, our asset management

business. While corporate expenditure was stable, central costs

reflected increased interest costs from the additional debt issued in

the year and reduced interest income on central cash balances.

Earnings per share, based on adjusted operating profit, net of tax and

non-controlling interest, was 101.4 cents, an increase of 12 per cent

(2024: 90.2 cents using a constant exchange rate).

Detailed discussion of IFRS financial performance by segment,

including analysis of the asset management business, is presented in

the section 'Segment discussion'.


	37 Prudential plc Annual Report 2025

Adjusted operating profit after tax

The table below sets out the Group’s adjusted operating profit after tax by segment as described in section B of the notes to the IFRS financial

results.


	Actual exchange rate			Constant exchange rate
	2025 $m	2024 $m	Change %	2024 $m	Change %
Hong Kong	1,126	971	16	972	16
Indonesia	198	218	(9)	210	(6)
Mainland China ³	411	363	13	363	13
Malaysia³	320	264	21	281	14
Singapore	603	594	2	608	(1)
Growth markets and other³	491	531	(8)	531	(8)
Insurance business	3,149	2,941	7	2,965	6
Asset management	305	275	11	272	12
Total segment profit	3,454	3,216	7	3,237	7
Other (including central items and restructuring costs)	(682)	(634)	(8)	(635)	(7)
Adjusted operating profit after tax	2,772	2,582	7	2,602	7

Insurance business analysis of operating profit drivers

The table below sets out the key drivers of the Group’s adjusted operating profit for the insurance business as described in note B1.3 of the IFRS

financial results.


	Actual exchange rate			Constant exchange rate
	2025 $m	2024 $m	Change %	2024 $m	Change %
Adjusted release of CSM⁴	2,550	2,333	9	2,358	8
Release of risk adjustment	285	268	6	271	5
Experience variances	(51)	(81)	37	(85)	40
Other insurance service result	(135)	(68)	(99)	(69)	(96)
Adjusted insurance service result	2,649	2,452	8	2,475	7
Net investment result on longer-term basis	1,163	1,146	1	1,154	1
Other insurance income and expenditure	(103)	(89)	(16)	(90)	(14)
Share of related tax charges from joint ventures and associates	(99)	(90)	(10)	(90)	(10)
Insurance business	3,610	3,419	6	3,449	5

The release of CSM is the principal source of our IFRS 17 insurance

business adjusted operating profit. The adjusted CSM release³ in

2025 of $2,550 million (2024: $2,358 million) equates to an

annualised release rate of 9.5 per cent (2024: 9.5 per cent).

The release of the risk adjustment of $285 million (2024: $271

million) represents the run-off of non-market risk in the year as

policies move closer to maturity. As expected, this release is a

relatively stable proportion of the opening balance as compared with

the corresponding rate in the prior year.

Experience variances of $(51) million (2024: $(85) million) largely

comprise expense variances reflecting the investment in our strategic

pillars consistent with our strategy. The variance has reduced from the

prior year reflecting improved claims experience, following ongoing

actions taken in our health business.

The other insurance service result of $(135) million (2024: $(69)

million) primarily reflects the small losses on contracts that are

described under IFRS 17 as ‘onerous’, either at inception or because

changes in the period result in the CSM being exhausted. The amount

shown in adjusted operating profit represents all losses on contracts

classified as onerous; for example, it reflects both economic and non-

economic movements. The trends seen at half year 2025 have

continued, with improvements in Mainland China more than offset by

the effect of falling interest rates on our Singapore business and

ongoing challenges in the Vietnam market. While classified as

'onerous' under IFRS 17, it does not mean these contracts are not

profitable overall as the CSM does not allow for real-world returns,

which are earned over time. or for profits earned in prior periods.

The net investment result of $1,163 million (2024: $1,154 million)

largely reflects the long-term return on assets backing shareholders'

equity within the life businesses and long-term spreads on business

not accounted for under the variable fee approach. The marginal

increase in the year reflects the rise in opening shareholders' assets

following the growth of the business, offset by remittances from

insurance businesses to the Group centre, with moderate growth in

spread income given the effect of derisking actions in our Mainland

China business.

Other income and expenditure of $(103) million (2024: $(90) million)

mainly relates to expenses that are not directly related to an

insurance contract as defined under IFRS 17.

Movement in contractual service margin

The CSM balance represents a discounted stock of unearned profit,

which will be released over time as services are provided. This balance

increases due to additions from profitable new business contracts sold

in the period and the unwind of the discounting applied to the in-

force book. It is also updated for any changes in expected future

profitability, where applicable, including the effect of short-term

market fluctuations for business measured using the variable fee

approach. The release of the CSM, which is the main driver of

adjusted operating profit, is then calculated after allowing for these

movements.


	38 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued

In a normalised market environment, if the contribution from new business and the unwind of the CSM balance is greater than the rate at which

services are provided, then the CSM balance will increase. The new business added to the CSM will, therefore, be an important factor in building

the CSM, and we expect the compounding effect from the new business added to the CSM over time to support growth in IFRS 17 adjusted

operating profit in the future.

The table below sets out the movement of CSM over the period.

Contractual service margin net of reinsurance


	Actual exchange rate
	2025 $m	2024 $m
CSM at 1 January (net of reinsurance)	21,960	21,012
New contracts in the year	2,835	2,596
Unwind*	1,784	1,731
Balance before variances, effect of foreign exchange and CSM release	26,579	25,339
Economic and other variances	332	(671)
Balance before release	26,911	24,668
Release of CSM to income statement	(2,554)	(2,352)
Effect of movements in exchange rates	648	(356)
CSM at 31 December (net of reinsurance)	25,005	21,960
CSM relating to reinsurance attributable to policyholders	871	789
Related deferred tax adjustments^†	(2,853)	(2,604)
Less non-controlling interests	(1,072)	(977)
Adjusted shareholders' CSM at 31 December (net of reinsurance)	21,951	19,168

* The unwind of CSM presented in this table reflects the accretion of interest on general measurement model contracts, as presented in note C3.3 to the IFRS financial results,

together with the unwind of the CSM related to variable fee approach contracts on a long-term normalised basis. This differs from the presentation in note C3.3 to the IFRS

financial results by reallocating $1,479 million from economic and other variances to unwind.

† CSM is presented gross of tax, this is to allow for tax on the future profits contained in the CSM.

Profitable new business in 2025 grew the CSM by $2,835 million

which, combined with the unwind of the CSM balance shown in the

table above of $1,784 million, increased the CSM by $4,619 million.

This increase exceeded the release of the CSM to the income

statement in the period of $(2,554) million, demonstrating the

strength of our franchise and its ability to deliver future growth in

CSM and ultimately adjusted operating profit.

Other movements in the CSM reflect economic and other variances to

update the CSM for changes in expected future profitability including

the impact of short-term market effects of business accounted for

under the variable fee approach. Movements in exchange rates had a

positive impact of $648 million on the closing CSM. Overall the CSM

grew by 14 per cent, or 9 per cent excluding the effect of economic and

other variances and exchange rates.

Other income and expenditure

Corporate expenditure of $(237) million is unchanged from the prior

year, reflecting continued control of head office costs. Interest

payable on core structural borrowings of $(184) million (2024: $(171)

million) reflects the additional interest on the additional SGD 600

million debt instrument issued in May 2025. Net investment return

and other items totalled $(41) million (2024: $21 million) reflecting

lower interest rates and lower average central cash balances. As

anticipated, restructuring costs were lower at $(171) million (2024:

$(207) million).

IFRS basis non-operating items

Non-operating items in the year consist of positive short-term interest

rate and other market fluctuations of $120 million (2024: negative

$(97) million) and $1,515 million of net gains from corporate

transactions (2024: net costs of $(74) million).

Short‑term fluctuations in interest rates and other market variables

had a net positive impact, reflecting falling interest rates across many

Asia markets during the year which contributed to valuation gains on

bond assets backing IFRS shareholder's equity. In addition, for the

Group's health and protection business under the general

measurement model (GMM), lower discount rates applied to net

positive future cash flows contributed to valuation gains on net future

profits recognised as assets on the balance sheet under the GMM

methodology. These effects were partially offset by developments in

Mainland China, where narrower credit spreads reduced the illiquidity

premium used in determining discount rates on GMM liabilities.

Gains from corporate transactions primarily represent the profit on

disposal, before tax, of a proportion of our interest in IPAMC on the

IPO of this entity.

IFRS effective tax rates

In 2025, the effective tax rate on adjusted operating profit was 16

per cent, similar to the effective tax rate in 2024 of 17 per cent. The

effective tax rate on total IFRS profit in 2025 was 17 per cent, broadly

in line with the effective tax rate in 2024 of 18 per cent.

In 2025 the new OECD global minimum tax rules were implemented

in Hong Kong, effective from 1 January 2025. This brings the whole

Prudential group into scope of the new tax rules. The IFRS tax charge

for 2025 includes $(23) million (2024: $nil) in respect of global

minimum tax.

Total tax contributions

The Group continues to make significant tax contributions in the

jurisdictions in which it operates, with $(1,353) million remitted to tax

authorities in 2025. This was higher than the equivalent amount of

$(1,086) million remitted in 2024 (on an actual exchange rate basis),

principally due to taxes paid on corporate transactions, mainly the

partial disposal of our investment in IPAMC.


	39 Prudential plc Annual Report 2025

Tax strategy

The Group publishes its tax strategy annually which, in addition to complying with the mandatory UK (Finance Act 2016) requirements, also

includes a number of additional disclosures that provide insight into the Group’s tax contributions. An updated version of the tax strategy,

including 2025 data, is expected to be available on the Group’s website before 29 May 2026.

Value

New business profit was up 12 per cent to $2,782 million, driven by increased APE sales and positive pricing and product mix effects. Growth was

broad based, with growth in 13 of our 19 life insurance markets, and consistent, with double-digit growth in each quarter of 2025.

Segment APE, NBP and margin


	2025 $m		2024 $m		AER change %		CER change %		New business margin
	APE sales	New business profit	APE sales	New business profit	APE sales	New business profit	APE sales	New business profit	2025	2024
Hong Kong	2,221	1,221	2,063	1,091	8%	12%	8%	12%	55%	53%
Indonesia	258	118	262	110	(2)%	7%	2%	11%	46%	42%
Mainland China (Prudential's share)	621	282	464	221	34%	28%	34%	27%	45%	48%
Malaysia	436	118	406	105	7%	12%	–%	5%	27%	26%
Singapore	938	436	870	419	8%	4%	5%	2%	46%	48%
Growth markets and other	2,187	667	2,137	580	2%	15%	–%	12%	30%	27%
Total insurance business	6,661	2,842	6,202	2,526	7%	13%	6%	11%	43%	41%
Less central costs allocated to new business		(60)		(62)
Total Group insurance business	6,661	2,782	6,202	2,464	7%	13%	6%	12%	42%	40%

Analysis of new business profit margin by quarter

New business profit ('NBP'), annual premium equivalent ('APE') sales and new business margin can be analysed by quarter as follows:


	2025			2024 AER			2024 CER
	NBP post central costs	APE	New business margin on APE	NBP post central costs	APE	New business margin on APE	NBP post central costs	APE	New business margin on APE
	$m	$m	%	$m	$m	%	$m	$m	%
Q1	608	1,677	36%	545	1,625	34%	543	1,609	34%
Q2	652	1,610	40%	576	1,488	39%	588	1,526	39%
Q3	705	1,716	41%	616	1,527	40%	626	1,564	40%
Q4	818	1,659	49%	730	1,566	47%	740	1,590	47%
Foreign exchange adjustment	(1)	(1)	n/a	(3)	(4)	n/a	(2)	–	n/a
Total	2,782	6,661	42%	2,464	6,202	40%	2,495	6,289	40%

Our new business mix continues to reflect our focus on quality and higher-margin products, with 36 per cent of new business profit arising from

health and protection business.

A detailed discussion of new business performance by segment, including analysis of asset management business, is presented in the section

'Segment discussion'.


	40 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued

TEV basis results


TEV financial results
	Actual exchange rate			Constant exchange rate
	2025 $m	2024 $m	Change %	2024 $m	Change %
New business profit	2,782	2,464	13	2,495	12
Profit from in-force business	2,284	1,967	16	1,985	15
Insurance business	5,066	4,431	14	4,480	13
Asset management business	305	275	11	272	12
Operating profit from insurance and asset management businesses	5,371	4,706	14	4,752	13
Change in allowance for corporate expenditure and other central costs incurred in the year	(454)	(414)	(10)	(414)	(10)
Operating profit for the year before restructuring costs	4,917	4,292	15	4,338	13
Restructuring costs	(165)	(197)	16	(196)	16
Operating profit for the year	4,752	4,095	16	4,142	15
Non-operating results	(81)	(566)	86	(575)	86
Profit for the year	4,671	3,529	32	3,567	31
Non-controlling interests' share of profit	(120)	(85)	(41)
Profit for the year attributable to equity holders of the Company	4,551	3,444
Foreign exchange movements	781	(526)
Dividends, net of scrip dividends	(594)	(552)
Adjustment to non-controlling interest for Malaysia conventional life business on 1 Jan 2024	–	(1,375)
Share repurchases/buybacks	(1,234)	(878)
Other equity movements	32	(17)
Net increase in Group TEV equity	3,536	96
Group TEV equity at beginning of year	34,267	34,171
Group TEV equity at end of year	37,803	34,267
% Operating profit/Group TEV excluding intangibles at beginning of year	15	14


Group TEV equity	31 Dec 2025 $m	31 Dec 2024 $m
Represented by:
Hong Kong	14,460	13,876
Indonesia	1,350	1,256
Mainland China	3,238	2,860
Malaysia	3,861	3,254
Singapore	7,102	6,264
Growth markets and other	7,842	7,336
Non-controlling interests' share of embedded value	(1,667)	(1,585)
Embedded value from insurance business excluding goodwill	36,186	33,261
Asset management and other excluding goodwill	2,924	2,348
Provision for future central corporate expenditure	(2,086)	(2,078)
Group TEV	37,024	33,531
Goodwill attributable to equity holders	779	736
Group TEV equity at end of year	37,803	34,267
Group TEV equity per share	1,483¢	1,289¢

Group TEV operating profit increased by 15 per cent to $4,752

million, reflecting a 13 per cent increase in the operating profit for the

insurance business, a 12 per cent increase in the operating profit for

the asset management business and broadly stable central costs,

including restructuring costs. Operating profit as a percentage of

Group TEV excluding intangibles at the beginning of the year was 15

per cent (2024: 14 per cent).

Operating profit from insurance business increased to $5,066 million,

reflecting growth in new business and a 15 per cent increase in in-

force business profit to $2,284 million. The profit from in-force

business is driven by the expected return and the effects of operating

assumption changes and experience variances. The expected return

was 7 per cent higher at $2,547 million, reflecting a higher opening

balance to which the expected return is applied, given the growth in

the business in 2024. Operating assumption changes and experience


	41 Prudential plc Annual Report 2025

variances were negative $(263) million on a net basis compared with

$(397) million in 2024 on a constant exchange rate basis.

The non-operating loss of $(81) million (2024: loss of $(575) million

on a constant exchange rate basis) reflects the impact of a reduction

in interest rates across many of our Asian markets with a

consequential reduction in the investment return assumptions (which

trend from current to long-term assumptions over time) with no

change in the long-term discount rate to offset. It also reflects, as

reported at the half-year, the effect on our Mainland China business

from the application of a more prudent valuation interest rate used to

discount local statutory reserves and from further actions to de-risk

our asset portfolio. This negative impact is offset by the profit on

disposal of a proportion of our interest in IPAMC on the IPO of this

entity.

Overall, TEV equity increased to 37.8 billion as at 31 December 2025

(31 December 2024: $34.3 billion). Of this $36.2 billion (31

December 2024 $33.3 billion) relates to the insurance business

operations, excluding goodwill attributable to equity shareholders and

before the provision for future corporate expenditure. This amount

includes our share of our India life business associate valued using

embedded value principles. The market capitalisation of 100 per cent

of this life business associate at 31 December 2025 was circa $10.5

billion, which compares with a publicly reported embedded value of

circa $5.6 billion at 30 September 2025.

TEV shareholders' equity on a per share basis at 31 December 2025

was 1,483 cents (31 December 2024: 1,289 cents).

Shareholders’ equity


Group IFRS shareholders' equity
	2025 $m	2024 $m
Profit for the year	4,119	2,415
Less non-controlling interest	(141)	(130)
Profit after tax for the year attributable to shareholders	3,978	2,285
Exchange movements, net of related tax	443	(309)
External cash dividends	(594)	(552)
Share repurchases/buybacks	(1,234)	(878)
Adjustment to non-controlling interest	–	(857)
Other movements	32	(20)
Net increase (decrease) in shareholders’ equity	2,625	(331)
IFRS shareholders’ equity at beginning of the year	17,492	17,823
IFRS shareholders’ equity at end of the year	20,117	17,492
Adjusted contractual service margin (CSM) (net of reinsurance)	21,951	19,168
Adjusted total comprehensive equity ⁵	42,068	36,660

IFRS shareholders' equity per share ⁵	790¢	658¢
Adjusted total comprehensive equity per share⁵	1,651¢	1,379¢

Group IFRS shareholders’ equity increased from $17.5 billion at the start of 2025 to $20.1 billion at 31 December 2025. This increase reflects

$4.0 billion of profit earned in the period, including the profit from the disposal of the Group’s partial interest in IPAMC that we plan to return to

shareholders, and positive exchange movements of $0.4 billion, partly offset by dividend payments and share buybacks of $(1.8) billion.

Adjusted total comprehensive equity represents the sum of Group IFRS shareholders’ equity and adjusted shareholders' CSM, net of tax and

reinsurance. Adjusted total comprehensive equity was $42.1 billion at 31 December 2025 (31 December 2024: $36.7 billion), reflecting the

increase in IFRS shareholders' equity and the CSM as the business grows. A full reconciliation to shareholders’ equity is included in note C3.1 of

the IFRS financial results.


	42 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued

Capital management

In the first half of 2025, we refined our capital allocation framework

with a desire to drive better shareholder returns. This led to a shift in

focus towards a total return orientation out of the annual flow of

capital generation. Following this refinement our capital allocation

priorities are as follows:

– We continue to target resilient capital buffers such that the Group

shareholder coverage ratio is above 150 per cent of the

shareholder Group Prescribed Capital Requirement to ensure the

Group can withstand volatility in markets and operational

experience. We seek to operate with a free surplus ratio of between

175 per cent and 200 per cent;

– Following sufficient capital being held, our priority for allocating

capital will be re-investing in writing high-quality new business;

– Our next priority is investing in enhancing our core capabilities,

primarily in the areas of customer, distribution and health as well as

technology and operations (including data);

– Our dividend policy remains to grow broadly in line with net

operating free surplus generation, which is calculated after

investment in new business, central costs and capability

investment. Given the strength of our capital generation, we expect

to grow the ordinary dividend by more than 10 per cent in both

2026 and 2027. In addition to the ordinary dividend, the Board will

consider making additional recurring returns of capital out of the

annual flow of capital generation. Capital returns will be set taking

into account the Group’s financial condition and prospects,

applicable capital and solvency requirements, investment

opportunities, market conditions and the general economic

environment. This change reflects our long-term confidence in our

business model and, as previously highlighted, means we are

planning additional capital returns, with $500 million of share

buybacks in 2026 already announced and a further $600 million

expected in 2027⁷;

– We will invest in value accretive inorganic opportunities where

there is good strategic fit, with investment decisions, as always,

being carefully judged against the alternative of returning surplus

capital to shareholders; and

– We assess the deployment of free surplus in the context of the

Group's growth aspirations, leverage capacity and liquidity and

capital needs, based on the free surplus ratio. We seek to operate

with a free surplus ratio of between 175 per cent and 200 per cent.

If the free surplus ratio is above the operating range over the

medium term, and taking into account opportunities to reinvest at

appropriate returns and allowing for market conditions, capital will

be returned to shareholders.

To generate capital to allocate to these priorities, we will also prioritise

managing our in-force embedded value to ensure maximum

conversion into free surplus over time. We will drive improved

emergence of free surplus by managing claims, expenses and

persistency in each market. This additional free surplus will enable our

continued investment in profitable new business at attractive returns,

as well as in our strategic capabilities, and support payments of

returns to shareholders, including dividends.

Group free surplus generation

Operating free surplus generation is the financial metric we use to

measure the internal cash generation of our business operations and,

for our life operations, is generally based on the capital regimes that

apply locally in the various jurisdictions in which the Group operates.

It represents amounts emerging from the in-force business during the

year, net of amounts reinvested in writing new business. For asset

management businesses, it equates to post-tax adjusted operating

profit for the year. For insurance business, free surplus is generally

based on (with adjustments including recognition of certain

intangibles and other assets that may be inadmissible on a regulatory

basis) the excess of the regulatory basis net assets (TEV total net

worth) over the TEV capital required to support the covered business.

Adjustments are also made to enable free surplus to be a better

measure of shareholders' resources available for distribution. For

shareholder-backed businesses, the level of TEV required capital has

generally been based on the Group Prescribed Capital Requirements

(GPCR) used in our GWS (Group-wide Supervision).

For asset management and other non-insurance business operations

(including the Group's central operations), free surplus is taken to be

IFRS shareholders' equity, net of goodwill attributable to

shareholders, with central Group debt recorded as free surplus to the

extent that it is classified as capital resources under the Group's

capital regime.


	43 Prudential plc Annual Report 2025

Analysis of movement in Group free surplus


	Actual exchange rate			Constant exchange rate
	2025 $m	2024 $m	Change %	2024 $m	Change %
Expected transfer from in-force business and return on existing free surplus	3,029	2,679	13	2,682	13
Changes in operating assumptions and experience variances	(275)	(288)	5	(283)	3
Operating free surplus generated from in-force insurance business	2,754	2,391	15	2,399	15
Asset management business	305	275	11	272	12
Operating free surplus generated from in-force insurance and asset management business	3,059	2,666	15	2,671	15
Investment in new business	(773)	(744)	(4)	(737)	(5)
	2,286	1,922	19	1,934	18
Other expenditure	(446)	(361)	(24)	(362)	(23)
Restructuring costs	(165)	(197)	16	(196)	16
Operating free surplus generated	1,675	1,364	23	1,376	22
Non-operating and other movements, including foreign exchange	633	(31)
Share repurchases/buybacks	(1,234)	(878)
External cash dividends	(594)	(552)
Subordinated debt issuance	462	–
Free surplus at beginning of year	12,358	12,455
Free surplus at end of year	13,300	12,358
Free surplus at end of year excluding distribution rights and other intangibles	9,408	8,604
Required capital	7,761	6,410
Free surplus ratio (%)	221%	234%	(13)ppts

Operating free surplus generated from in-force insurance and asset

management business increased 15 per cent to $3,059 million in

2025, in line with the shape of the cash flows we expected to

generate in advance of 2027.

Our ongoing actions to improve capital generation saw a reduction in

the level of adverse operating assumption changes and variance

effects in the year. The total of changes in operating assumptions,

experience variances and other items was $(275) million in 2025 and

included $(230) million of investment in enhancing our customer,

distribution, health and technology capabilities, in line with our

strategy. The residual amount of $(45) million was down from $(107)

million in 2024.

The cost of investment in new business was $(773) million (2024:

$(737) million) reflecting the growth in APE sales, partly offset by

favourable country mix effects. After this and central expenditure the

Group generated operating free surplus (after restructuring costs) of

$1,675 million, up 22 per cent compared with 2024.

Total returns to shareholders in 2025 included dividends paid in the

period of $(594) million and share buyback of $(1,234) million. After

allowing for these returns as well as short-term market fluctuations

and currency movements, free surplus at 31 December 2024 was

$13.3 billion (31 December 2024: $12.4 billion). Excluding

distribution rights and other intangibles, free surplus was $9.4 billion

(31 December 2024: $8.6 billion). The free surplus ratio, defined as

Group free surplus (excluding intangibles) plus TEV required capital

divided by the TEV required capital, was 221 per cent at the end of

2025, lower than the 234 per cent at the end of 2024 as the Group's

share buyback progresses. Excluding the net proceeds received from

the IPO of IPAMC, the free surplus ratio was 204 per cent.


	44 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued

Dividend

Reflecting the Group’s capital allocation priorities, a portion of capital

generation will be retained for reinvestment in organic growth

opportunities and for investment in capabilities, and dividends will be

determined primarily based on the Group’s operating capital

generation after allowing for the capital strain of writing new business

and recurring central costs. Dividends are expected to grow broadly in

line with the growth in the Group’s operating free surplus generation,

and will be set taking into account financial prospects, investment

opportunities and market conditions.

In line with the guidance for 2025 and our dividend policy, the Board

has approved a 2025 second interim cash dividend of 18.89 cents per

share (2024: 16.29 cents per share). Combined with the first interim

cash dividend of 7.71 cents per share (2024: 6.84 cents per share),

the Group’s total 2025 cash dividend is 26.60 cents per share (2024:

23.13 cents per share), an increase of 15 per cent.

A dividend reinvestment plan (DRIP) will continue to be offered to

shareholders on the UK register. A scrip dividend alternative, with the

issuance of new ordinary shares on the Hong Kong line only and the

dilutive effect neutralised by a share repurchase on the London line,

will be offered in respect of the 2025 second interim dividend.

Guidance on the application of the dividend policy alongside changes

to our capital allocation framework are set out at the start of the

Financial review.

Group capital position

The Prudential Group applies the Insurance (Group Capital) Rules set

out in the GWS Framework issued by the Hong Kong Insurance

Authority (HKIA) to determine Group regulatory capital requirements

(both minimum and prescribed levels). Prudential Corporation Asia

Limited (PCAL) is classified as a Domestic Systemically Important

Insurer (D-SII) by the HKIA. PCAL is a direct subsidiary of Prudential

plc and is incorporated in Hong Kong. The GWS Group capital

adequacy requirements require that total eligible Group capital

resources are not less than the GPCR and that GWS Tier 1 group

capital resources are not less than the GMCR. More information is set

out in note I(i) of the Additional unaudited financial information.

The Group holds material participating business in Hong Kong,

Singapore and Malaysia. Alongside the regulatory GWS capital basis,

a shareholder GWS capital basis is also presented which excludes the

contribution to the Group GWS eligible Group capital resources, the

GMCR and the GPCR from these participating funds.


	31 Dec 2025			31 Dec 2024
	Shareholder	Policyholder*	Total^†	Shareholder	Policyholder*	Total ^†
Group capital resources ($bn)	27.6	19.3	46.9	24.8	16.3	41.1
of which: Tier 1 capital resources ($bn)	19.9	1.5	21.4	17.6	1.3	18.9

Group Minimum Capital Requirement ($bn)	6.0	0.8	6.8	5.1	0.7	5.8
Group Prescribed Capital Requirement ($bn)	10.5	13.3	23.8	8.9	11.3	20.2

GWS capital surplus over GPCR ($bn)	17.1	6.0	23.1	15.9	5.0	20.9
GWS coverage ratio over GPCR (%)	262%		197%	280%		203%

GWS Tier 1 surplus over GMCR ($bn)			14.6			13.1
GWS Tier 1 coverage ratio over GMCR (%)			316%			325%

* This allows for any associated diversification impacts between the shareholder and policyholder positions reflected in total company results where relevant.

† The total company GWS coverage ratio over GPCR presented above represents the eligible group capital resources coverage ratio as set out in the GWS framework, while

the total company GWS Tier 1 coverage ratio over GMCR represents the Tier 1 capital coverage ratio.

As at 31 December 2025, the estimated shareholder GWS capital

surplus over the GPCR is $17.1 billion (31 December 2024: $15.9

billion), representing a coverage ratio of 262 per cent (31 December

2024: 280 per cent), comfortably above the Group's risk appetite of

150 per cent as discussed in the capital management section above.

The estimated total GWS capital surplus over the GPCR is $23.1 billion

(31 December 2024: $20.9 billion) representing a coverage ratio of

197 per cent (31 December 2024: 203 per cent).

Operating capital generation in 2025 was $1.7 billion after allowing

for central costs and the investment in new business. Other

movements covering non-operating, foreign exchange and other

items were $0.8 billion and included the beneficial impact of the

partial sale of our interest in IPAMC. The shareholder GWS surplus

also reflects the issuance of $0.5 billion in subordinated debt in the

year, which contributed positively to the Group's available capital.

These increases were offset by the payment of external dividends and

share buybacks which together totalled $(1.8) billion. Overall, the

increase in shareholder GWS capital surplus in 2025 was $1.2 billion.

The Group’s GWS position is resilient to external macroeconomic

movements as demonstrated by the sensitivity disclosure contained

in note I(i) of the Additional financial information, alongside further

information about the GWS measure.

The GWS capital surplus set out in the table above includes amounts

held within operating entities as well as at the centre. The businesses

may remit this surplus as dividends provided the local regulatory

requirements are met and there are sufficient unrestricted accounting

profits.


	45 Prudential plc Annual Report 2025

Financing and liquidity

Prudential seeks to maintain its financial strength rating with

applicable credit rating agencies, which derives, in part, from its high

level of financial flexibility to issue debt and equity instruments, which

is intended to be maintained in the future. Prudential has substantial

headroom to issue debt while remaining within the guidelines set by

the credit rating agencies for its current financial strength rating of

AA from S&P (upgraded from AA-), Aa3 from Moody's and AA- from

Fitch.

Net core structural borrowings of shareholder-financed businesses


	31 Dec 2025 $m			31 Dec 2024 $m
	IFRS basis	Mark-to- market value	TEV basis	IFRS basis	Mark-to- market value	TEV basis
Core borrowings of shareholder-financed businesses	4,459	(57)	4,402	3,925	(231)	3,694
Less: holding company cash and short-term investments	(4,282)	–	(4,282)	(2,916)	–	(2,916)
Net core structural borrowings of shareholder-financed businesses	177	(57)	120	1,009	(231)	778
Group leverage ratio (Moody's total leverage basis)	13%			13%

The total core borrowings of the shareholder-financed businesses

were $4.5 billion at 31 December 2025 (31 December 2024: $3.9

billion). In May 2025, the Group issued SGD 600 million 3.80 per cent

subordinated debt maturing on 22 May 2035, with proceeds, net of

costs, of $462 million. The Group had central cash resources of $4.3

billion at 31 December 2025 (31 December 2024: $2.9 billion),

resulting in net core structural borrowings of the shareholder-financed

businesses of $0.2 billion at end of 31 December 2025 (31 December

2024: $1.0 billion) on an IFRS basis. We have not breached any of the

requirements of our core structural borrowings nor modified any of

their terms during 2025.

With the exception of a $750 million perpetual note that the Group

retains the right to call at par on a quarterly basis, the Group’s debt

securities have contractual maturities that fall between 2029 and

2035. Further analysis of the maturity profile of the borrowings is

presented in note C5.1 to the IFRS financial results.

In addition to its net core structural borrowings of shareholder-

financed businesses set out above, the Group has structures in place

to enable access to funding via the medium-term note programme,

the US shelf programme (the platform for issuance of SEC-registered

bonds in the US market), a commercial paper programme and

committed revolving credit facilities. All of these are available for

general corporate purposes. Proceeds from the Group’s commercial

paper programme are not included in the holding company cash and

short-term investment balance.

Prudential plc has maintained a consistent presence as an issuer in

the commercial paper market for the past decade and had $520

million in issue at 31 December 2025 (31 December 2024: $527

million).

As at 31 December 2025, the Group had a total of $1.5 billion of

undrawn committed facilities which expire in 2031 and a further

$100 million that expire in 2029. Apart from small drawdowns to test

the process, these facilities have never been drawn, and there were no

amounts outstanding at 31 December 2025.


	46 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial review continued

Cash remittances

Holding company cash flow⁶


	Actual exchange rate
	2025 $m	2024 $m	Change %
Net cash remitted by business units	2,137	1,383	55
Net interest (paid) received	(55)	17	n/a
Corporate expenditure	(308)	(253)	(22)
Centrally funded recurring bancassurance fees	(223)	(198)	(13)
Total central outflows	(586)	(434)	(35)
Holding company cash flow before dividends and other movements	1,551	949	63
Dividends paid, net of scrip dividends	(594)	(552)	(8)
Operating holding company cash flow after dividends but before other movements	957	397	141
Other movements
Issuance of debt, net of costs	462	–	n/a
Share repurchases/buybacks (including costs)	(1,252)	(860)	n/a
Other corporate activities	1,117	(109)	n/a
Total other movements	327	(969)	n/a
Net movement in holding company cash	1,284	(572)	n/a
Cash and short-term investments at the beginning of the year	2,916	3,516
Foreign exchange movements	82	(28)
Cash and short-term investments at the end of the year	4,282	2,916

Remittances from our businesses were $2,137 million (2024: $1,383

million), reflecting both our growing operating free surplus generation

and timing of when dividends are paid up to the centre. The

remittances in 2024 are also net of cash advanced to CPL, our joint

venture business in Mainland China, of $(174) million in anticipation

of the capital injection in early 2025, with no such payments

occurring in 2025. Remittances were used to meet central outflows of

$(586) million (2024: $(434) million) and to pay cash dividends of

$(594) million (2024: $(552) million).

Central outflows include net interest paid of $(55) million (2024: net

interest received of $17 million), which reflects lower interest receipts

on central cash balances, given current interest rates and lower

average cash balances following the share buyback programme.

Interest payments made on core structural borrowing, which are

largely fixed, marginally increased following the debt raised in May

2025.

Cash outflows for corporate expenditure of $(308) million (2024:

$(253) million) include cash outflows for restructuring costs. The

increase represents timing differences on recharges to operating

subsidiaries and differences between expense accrual and cash

payment.

We had a $462 million increase in cash resources from new debt

issued in May 2025 and used $(1,252) million of cash to settle

repurchases of shares in 2025, largely to complete our $2 billion share

buyback programme.

Other corporate activities of $1,117 million in 2025 largely comprises

the $1.4 billion net proceeds received upon the IPO of IPAMC in

December, offset by the settlement on the case with Detik Ria in

Malaysia in July 2025 and other miscellaneous Group investment.

The Group will continue to seek to manage its financial condition such

that it has sufficient resources available to provide a buffer to support

the retained businesses in stress scenarios and to provide liquidity to

service central outflows.

Notes

(1) Our key metrics are: new business profit, basic earnings per share based on adjusted operating profit and operating free surplus generated from in-force insurance and asset

management business.

(2) These objectives assume exchange rates at December 2022 and are based on regulatory and solvency regimes applicable across the Group at the time the objectives were

set. The objectives assume that the same TEV and free surplus methodology will be applicable over the period and no material change to the economic assumptions.

(3) In our segmental disclosure, the tax on our life joint ventures in Mainland China and Malaysia (the Takaful business) and on our associate in India is included within the

'Growth markets and other' segment.

(4) Adjusted release of CSM reflects an adjustment to the release of CSM figure as shown in note C3.2 of the IFRS financial results of $(4) million (2024: $(19) million) for the

treatment adopted for adjusted operating purposes of combining losses on onerous contracts and gains on profitable contracts that can be shared across more than one

annual cohort. See note B1.3 to the IFRS financial results for more information.

(5) See note II of the Additional financial information for definition and reconciliation to IFRS balances.

(6) Holding company cash and short term investments in Group head office companies.

(7) Subject to Hong Kong Insurance Authority approval.


	47 Prudential plc Annual Report 2025

Segment discussion

Delivering through our

multi-market growth engines

The following commentary provides an overview of each of the Group’s segments, together with a discussion of their 2025 financial

performance.

Unless otherwise stated, we discuss our performance on a constant currency basis. The definitions of the key metrics we use to discuss our

performance in this report are set out in the 'Definitions of performance metrics' section later in this document, including, where relevant,

references to where these metrics are reconciled to the most directly comparable IFRS measure.

Hong Kong


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	2,221	2,063	8%	8%
New business profit ($m)	1,221	1,091	12%	12%
New business margin (%)	55	53	2ppts	2ppts
Adjusted operating profit ($m)	1,219	1,069	14%	14%
Adjusted operating profit after tax ($m)	1,126	971	16%	16%
IFRS profit after tax ($m)	1,333	851	57%	57%

In Hong Kong, Prudential is supported by a strong brand, a

well‑established agency force and a product suite designed to meet

customers’ evolving health, protection and long‑term financial needs

across life stages. Hong Kong is a high-income market and exhibits

sustained demand for comprehensive solutions spanning medical

protection, wealth accumulation, retirement and legacy planning.

Our multi-channel distribution model is anchored by a

high‑performing agency force and a longstanding bancassurance

partnership with Standard Chartered Bank, complemented by a

selective presence in the broker channel. This positions us well to

capture growth across the domestic and Mainland China visitor

segments, including an expanding local customer base driven by net

migration of skilled professionals. We remain focused on high‑quality,

capital‑efficient new business, underpinned by disciplined sales

practices and an emphasis on health and protection‑led propositions.

Hong Kong plays a pivotal role in serving Mainland China visitors

seeking currency and asset diversification, professional financial

advice and access to high‑quality healthcare and complex protection

products. Demand for Hong Kong‑based long‑term savings and

protection solutions remains resilient. Supported by our presence

across all cities in the Greater Bay Area, including Macau, we are well

placed to serve customers across one of the region’s most significant

economic hubs.

We continued to innovate during 2025, with several market‑first

solutions. Key launches included Entrust, a pioneering trust-like multi-

currency savings proposition, and Encash, a first-in-market whole-life

hospital cash and long-term savings solution. We also launched Prime

Vantage Prestige Protector, a tailored protection solution for

high‑net‑worth customers, strengthening our presence in a

strategically important segment.

Our commitment to building an inclusive, high-performance culture

was validated through Prudential Hong Kong being recognised as one

of the ‘Best Companies to Work for in Asia’ for the fourth consecutive

year.

Financial performance

Hong Kong delivered another year of strong and broad‑based growth in

2025. New business profit increased by 12 per cent to $1,221 million,

supported by 8 per cent growth in APE sales and a 2‑percentage‑point

expansion in margin. This reflected our continued focus on quality, as well

as the continuing benefits of repricing actions. New business profit grew

from both domestic and Mainland China visitor segments.

The agency channel delivered a 9 per cent increase in new business

profit. Quality recruitment of new agents helped lift average monthly

active agents by 12 per cent. We also saw growth in the productivity

of MDRT-qualified agents, underscoring the strength and quality of

our agency force.

The bancassurance channel generated an increase in new business profit

of 25 per cent year‑on‑year, underscoring the strength of our

long‑standing partnerships. This strong performance was supported by

record sales through SCB, where a favourable improvement in product mix

contributed to an increase in margin for new business from the

bancassurance channel.

Prudential is a market leader in health and protection. Our innovative

health solutions launched in 2024 and 2025 fuelled a 44 per cent increase

in health APE sales, demonstrating our strong capability to meet rising

customer demand for comprehensive protection and wellness offerings.

In Hong Kong, adjusted operating profit was $1,219 million, up 14 per cent,

as we continued to benefit from the ongoing growth in new business. This

growth, together with favourable economics, led to a higher release from

the CSM compared with 2024. The net investment result, a large

component of which is net investment earnings on shareholder assets, was

marginally lower, reflecting (as was the case at half year) significant

remittances to the centre from strong levels of local capital surplus.

The IFRS profit after tax for our Hong Kong business was $1,333 million,

up 57 per cent compared with 2024. As well as the double-digit growth in

adjusted operating profit, Hong Kong benefitted from bond gains on

shareholder assets exceeding long-term expectations as interest rates fell.

This compared with interest rises in 2024 that led to asset returns being

below long-term expectations.


	48 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Segment discussion continued

Indonesia


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	258	262	(2)%	2%
New business profit ($m)	118	110	7%	11%
New business margin (%)	46	42	4ppts	4ppts
Adjusted operating profit ($m)	250	268	(7)%	(3)%
Adjusted operating profit after tax ($m)	198	218	(9)%	(6)%
IFRS profit after tax ($m)	224	181	24%	29%

In Indonesia, we are among the top three life insurers¹ across the

combined conventional and Syariah markets.

2025 saw a challenging period for the Indonesian life insurance

industry, including civil unrest in the third quarter. Despite these

headwinds, Prudential recorded 2 per cent growth in APE sales and 11

per cent growth in new business profit, demonstrating our strong

operational resilience and ability to successfully navigate a

challenging environment.

We continue to diversify our distribution, with our agency channel

maintaining its market-leading position, and our bancassurance

channel achieving record APE sales.

We remain proactive in managing the significant challenges in the

health market due to rising medical inflation. We continue to

strengthen the resilience of our health portfolio through disciplined

repricing and through the expansion of our Priority Hospital Network

to improve cost efficiency and elevate care standards. We are also

improving our agency capability to deliver higher‑quality health

solutions.

The focus on customers alongside enhanced purchasing and service

experiences, including new digital servicing features, helped improve

customer satisfaction in the year with an improved rNPS.

Our dedicated Syariah entity, Prudential Syariah Indonesia, delivered

a strong performance in 2025 and is now the number one Syariah life

insurer in Indonesia by volume of APE sales. Our partnership with BSI,

the largest Syariah bank in the country with 20 million customers,

delivered a strong performance in its first year of operations. We

continue to successfully develop the BSI partnership, with activation

of the in-branch referral model across all of BSI’s priority branches

and top-tier retail branches. We anticipate that our partnership with

BSI will be a meaningful driver of future growth, with sales activity

expected to build progressively through 2026.

Financial performance

Overall new business profit grew 11 per cent in 2025 compared with

the prior year. Margins expanded by 4 percentage points compared

with the prior period. This was driven by management actions

including prudent medical repricing and a shift towards higher margin

traditional products, as we continue to diversify our product mix.

Our agency business successfully navigated the challenging

environment in the third quarter and ended the year on a positive

note. New business profit per active agent increased by 18 per cent

compared with 2024, supported by the strategic shift to high margin

traditional and health and protection products. There has been

continued focus on optimising the number of active agents and

enhancing recruitment quality. Overall new business profit was up 6

per cent compared with the prior year.

Strong sales via the bancassurance channel led to a 53 per cent

growth in new business profit, driven by strong momentum in

investment-linked products through both SCB and UOB, as well as a

promising contribution from our new partnership with BSI.

The adjusted operating profit for Indonesia for 2025 was $250

million (2024: $258 million on a constant exchange rate basis). This

was marginally lower than the prior year, reflecting the investment in

capabilities within our Syariah business, as we operationalise our new

bancassurance partnership with BSI and the shift in product mix

towards longer-duration products. The profit from these products is

higher overall but spread over a longer period, dampening the release

from the IFRS CSM in the short term.

The IFRS profit after tax in 2025 was up 24 per cent (on an actual

exchange rate basis) to $224 million, with the small decline in

adjusted operating profit more than offset by the benefit of falling

interest rates on shareholder assets increasing net investment return

in the year. This is compared to a loss in the prior year when interest

rates rose.


	49 Prudential plc Annual Report 2025

Mainland China – CITIC Prudential Life (CPL)


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	621	464	34%	34%
New business profit ($m)	282	221	28%	27%
New business margin (%)	45	48	(3)ppts	(3)ppts
Adjusted operating profit ($m)	411	363	13%	13%
IFRS (loss) profit ($m)	(24)	159	n/a	n/a

Amounts included in the table above represent the Group's 50 per cent share.

Prudential’s life business in Mainland China, CITIC Prudential Life

(CPL), is a 50/50 joint venture with CITIC, a leading Chinese state-

owned conglomerate. CPL operates with an extensive footprint across

23 branches, covering 102 cities in Mainland China. In 2025, CPL

celebrated its 25^th year of operation.

CPL benefits from the strong brands of both shareholders with a

multi-distribution platform that offers a diverse set of products to

meet customers' needs. The business focuses on the affluent

segments of the market where individuals typically have more

resilient personal income levels, and are still significantly

underpenetrated.

We have a high-quality agency force as well as an extensive network

of 59 bancassurance partners with 850 active physical bank branches

across Mainland China. The broad reach of our banking partners and

the strong capabilities of our agency business in the affluent

segments enable CPL to access customer groups with high potential

to generate sustainable, high-quality new business growth. We

continued to prioritise quality agent recruitment and deepen

penetration within our bank partners’ customer bases.

We expect this growth to be driven primarily by health and protection,

long-term policyholder participating savings products and pensions.

The business remains focused on delivering sustainable, high‑quality

growth, supported by disciplined risk management in a prolonged low

interest rate environment in Mainland China.

In 2025, our business in Mainland China has continued to evolve in

response to supportive regulatory developments and interest rate

volatility. CPL maintained its disciplined focus on delivering high-

quality new business as we actively rebalance our product mix from

non-participating to participating solutions. At the end of 2025, CPL’s

local comprehensive solvency ratio stood at 209 per cent, well in

excess of regulatory requirements. In January 2026 CPL issued RMB5

billion of perpetual debt.

Exposure arising from the Group’s net investment position is actively

managed, including the use of derivative instruments to reduce

sensitivity to further downward movements in interest rates. With

initiatives underway to enhance the quality and resilience of the

franchise, the Group is well positioned to capture opportunities from

the supportive demographics with rising wealth and an ageing

population expected to increase demand for savings and protection

over time.

Financial performance

CPL grew new business profit by 27 per cent in 2025 compared with

the prior year, with an increasing proportion of participating business

in our sales mix. Overall, APE sales grew by 34 per cent, with very

strong momentum in the second half and including sales to around

87,000 new-to-Prudential customers.

CPL's agency channel delivered a 9 per cent reduction in new business

profit for 2025 overall. However, CPL continued its transformation

journey with quality recruitment and development generating

momentum in the second half of 2025. Encouragingly, agency new

business profit increased by 11 per cent in the second half of 2025

compared with the same period in 2024. We continue to develop our

high-quality agency force, with a 14 per cent increase in new agency

recruits and a 7 per cent increase in the number of active agents

compared with the prior year.

In the bancassurance channel, CPL delivered an increase in new

business profit of 59 per cent, supported by a strong focus on

productivity. Our partnership with CITIC Bank continued to

strengthen, and we accelerated sales momentum by focusing on their

top 50 outlets, driving stronger execution and productivity. Our

deeper collaboration with the private banking segments of our bank

partners supported greater engagement with high-net-worth

customers and we achieved a 7 per cent increase in active branches.

Overall, all our top ten partners delivered double to triple-digit APE

sales growth in the period.

The adjusted operating profit before tax for CPL was $411 million, 13

per cent higher than the prior year. Our focus on quality new business

helped reduce the level of losses on contracts that IFRS defines as

onerous as compared with 2024. Higher asset levels as the business

grew helped increase net investment returns, albeit this was partially

offset by actions to derisk the investment portfolio. A higher adjusted

operating profit was more than offset by an increase in losses arising

from short-term market movements. While interest rates marginally

increased in 2025, the small benefit arising from a higher discount

rate was more than offset by the impact on the discount rate of credit

spreads narrowing. After allowing for these market-related losses, CPL

generated a small IFRS loss for the year of $(24) million. This amount

is recorded before any related tax, which under the Group’s segment

definition is recorded under the ’Growth markets and other’ segment.


	50 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Segment discussion continued

Malaysia


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	436	406	7%	–
New business profit ($m)	118	105	12%	5%
New business margin (%)	27	26	1ppts	1ppts
Adjusted operating profit ($m)	410	338	21%	14%
Adjusted operating profit after tax ($m)	320	264	21%	14%
IFRS profit after tax ($m)	325	296	10%	3%

Prudential is a leading life insurer in the Malaysia conventional market

and the largest Takaful operator¹, making Prudential the largest life

insurance provider in the country¹. It has built its success on a multi-

channel distribution platform.

Our bancassurance business maintained its number one position in

the market with a 21 per cent share. Meanwhile, our agency business

demonstrated strong growth in recruits and active agents in the latter

part of the year, with the number of agents qualifying for MDRT

status increasing by 7 per cent from the prior year.

Recognising society’s evolving needs, we introduced innovative

legacy planning and investment products in 2025, which have

experienced rapid growth and adoption within our target customer

segment.

The health insurance market in Malaysia continues to experience

persistent increases in medical inflation, driven by rising treatment

costs and higher rates of hospital admission. Against this backdrop,

we have taken a leading role in addressing these pressures to ensure

the long‑term sustainability of our health portfolio. We continue to

take action to ease the impact on customers by both operating a

structured and consistently applied approach to repricing and tackling

the underlying drivers of cost escalation. As part of these efforts, we

have advanced our use of technology to strengthen claims

management and operational effectiveness.

Our strategic focus on disciplined health management has also

enabled us to respond quickly to the industry guidance issued by Bank

Negara Malaysia, which places caps on premium increases. The

capabilities we have built—particularly in cost analytics, portfolio

quality, and digital enablement—position us well to navigate these

regulatory changes while preserving our competitiveness. This is

reflected in the continued strengthening of our health margins,

underpinned by an improving profile mix despite the challenging

operating conditions.

As at 31 December 2025, Prudential owned 51 per cent of the

ordinary shares of the holding company of PAMB (with 100 per cent

share included in the operating statistics shown above consistent with

the Group’s policy for subsidiaries) and a 49 per cent share in the

Takaful joint venture. In January 2026 Prudential increased its

holding in the shares of the holding company of PAMB to 70 per cent.

Financial performance

In 2025, the business delivered 5 per cent growth in new business

profit. Following a decline in the first half of the year, the business

demonstrated strong performance in the second half with new

business profit increasing by 21 per cent compared with the same six

month period in 2024. Margins expanded in the year by 1 per cent

primarily due to improved product mix supported by the introduction

of new targeted high margin products.

Overall, agency new business profit reduced by (2) per cent, reflecting

a fall in overall volume due to lower number of active agents,

especially in the first half of the year. Agency distribution faced

material disruption throughout the first half of the year due to overall

market sentiment arising from medical repricing. By adopting a

rigorous, recurring repricing regime, we have been able to limit pricing

increases. Our agency channel rebounded strongly in the second half

of 2025, with the new business profit up 45 per cent on the first half

of the year, and 10 per cent greater than the second half of 2024.

The growth was driven by targeted product launches, strong

recruitment growth and robust on-the-ground activation of agents.

The business is positioned well to carry this strong momentum of

increased recruitment, activation and growing MDRT qualification in

2026.

New business profit in the bancassurance channel increased by 21 per

cent in 2025, with the second half of 2025 growing by 26 per cent

compared with the same period in 2024. Our performance was driven

by effective collaboration with our bank partners including SCB UOB

and Bank Simpanan Nasional (BSN). The SCB partnership delivered

record growth, driven by a successful revamp of our insurance

specialist model to accelerate protection sales. The launch of two new

innovative individual life plans, focused on legacy and savings, helped

the UOB partnership record strong growth. BSN also delivered growth

in new business profit for our Takaful joint venture, driven primarily by

the sale of attractively priced life products. New business margin in

the bancassurance channel improved year-on-year, reflecting our

ongoing efforts to optimise our product portfolio to drive value.

The adjusted operating profit for our business in Malaysia increased

by 14 per cent to $410 million, as the business grew and our actions

to improve our claims management and operational effectiveness led

to reduced operating variances.

The IFRS profit after tax for our business in Malaysia increased from

$296 million to $325 million (on an actual exchange rate basis),

driven by the increase in adjusted operating profit. Overall short-term

market movements were a small positive, albeit smaller than the prior

year.


	51 Prudential plc Annual Report 2025

Singapore


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	938	870	8%	5%
New business profit ($m)	436	419	4%	2%
New business margin (%)	46	48	(2)ppts	(2)ppts
Adjusted operating profit ($m)	706	693	2%	0%
Adjusted operating profit after tax ($m)	603	594	2%	(1)%
IFRS profit after tax ($m)	966	566	71%	67%

We remain among Singapore’s leading providers of health and

protection, savings and investment‑linked solutions¹. We have a top

three market share and more than 90 years of local presence. Our

business operates multi‑channel distribution across agency, financial

advisers and bancassurance. Strategic partnerships with UOB and

Standard Chartered Bank broaden our access to retail and

commercial banking customers and high‑net‑worth individuals.

We continue to meet evolving customer needs across life stages:

expanding comprehensive health and retirement offerings for

affluent customers; maintaining a strong position in the integrated

Shield market alongside partnerships with healthcare and technology

providers; and enhancing investment‑linked propositions, including a

greater choice of ESG‑themed funds for younger customers.

Our agency force retained its leading position in the market while

Prudential Financial Adviser (PFA), established in 2023, grew its

advisory force by over 18 per cent in 2025. PFA offers holistic wealth

and general insurance alongside our core solutions.

Our Singapore business again earned external recognition, ranking

No.1 Insurer in The Straits Times Singapore’s Best Customer Service

survey for the third consecutive year.

Financial performance

Our Singapore business delivered 2 per cent growth in new business

profit in 2025. The second half of 2025 saw strong APE sales

momentum, with APE sales up 19 per cent, reversing the 7 per cent

reduction seen in the first half. Overall APE sales were up 5 per cent

year-on-year as we continue to innovate to meet customer needs

across channels. In particular, we expanded our wealth offerings in

Singapore to cater for different needs. Our drive for innovation was

demonstrated by the launch of a first-in-market index-linked whole

life and endowment participating plan, which provides potential

upside from index growth while safeguarding customers’ savings

from market downturns. This sales mix shift towards the savings and

wealth segment and more moderate repricing compared to 2024

contributed to a 2 percentage point reduction in new business profit

margin to 46 per cent.

The second half momentum was driven by agency, with APE sales

growing 27 per cent compared with the same period in the prior year.

Agency productivity, as measured by new business profit per active

agent increased by 4 per cent in the year, and average case sizes

increased by 17 per cent. Within our agency business, we continue to

grow and develop PFA in order to expand our wealth offerings. We

are also continuing to build on our high-performing agency channel

with a focus on driving active agent numbers and productivity. The

strength of our advisors was demonstrated by the over 1,350 agents

that qualified for MDRT status in the year. Overall agency new

business profit was up 3 per cent in 2025.

New business profit in our bancassurance business was broadly flat

compared to 2024, due to volume challenges offset by positive

product mix effects. A multi-pay Indexed Universal Life Plan was

launched, building on the success of the single-premium version

introduced in 2024. This product continues our focus on serving the

high-net-worth segment by helping clients accumulate and protect

their wealth while creating a lasting legacy for future generations. We

also embarked on a new strategic partnership with CIMB bank in the

fourth quarter to further expand our customer base.

Looking ahead, we remain very well positioned in Singapore with a

market-leading, multi-channel franchise. We continue to lead the

market in terms of health new business, and we now have a

comprehensive range of products for the high-net-worth segment

across our channels.

Adjusted operating profit for our business in Singapore was broadly

flat when compared to 2024. Increased operating earnings from

growth in the underlying business was offset by headwinds from

economic movements impacting the level of losses that IFRS defines

as onerous.

The IFRS profit after tax for our Singapore business was $966 million,

71 per cent higher than 2024 on an actual exchange rate basis. As

well as the benefit from a strengthening of the local currency

compared to the US dollar, falling interest rates have led to gains on

bonds backing shareholders’ equity and increases to the future profit

expected from our health and protection contracts, which are

classified as general measurement model contracts under IFRS. 2024

saw unfavourable short-term market movements following increases

in interest rates.


	52 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Segment discussion continued

Growth markets and other


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
APE sales ($m)	2,187	2,137	2%	0%
New business profit ($m)	667	580	15%	12%
New business margin (%)	30	27	3ppts	3ppts
Adjusted operating profit ($m)	614	688	(11)%	(11)%
Adjusted operating profit after tax ($m)	491	531	(8)%	(8)%
IFRS profit after tax ($m)	535	503	6%	6%

Our growth markets and other segment incorporates our life

businesses in Taiwan, a number of markets in the ASEAN region:

Thailand, Vietnam, the Philippines, Cambodia, Laos and Myanmar, as

well as those in India and Africa.

Our growth markets and other segment delivered new business profit

of $667 million, representing growth of 12 per cent over the prior

year.

The increase in new business profit was driven by an improvement in

margins, with favourable product mix effects, on overall stable APE

sales. New business profit growth was led by Taiwan and Thailand

and was partially offset by falls in Vietnam, given the challenges in

that market.

The adjusted operating profit for the segment was $614 million

compared with $689 million in 2024 on a constant exchange rate

basis. While we saw growth in many of our markets this was offset by

a decline in adjusted operating profit in Vietnam. In addition we

incurred start-up costs in our new India health entity and saw reduced

interest income being earned by the insurance holding companies in

this segment.

The adjusted operating profit measure (and IFRS profit after tax) for

the 'Growth markets and other' segment includes the tax charge on

the profits/losses for the three life joint ventures and associates in

Mainland China, India and Malaysia (Takaful business), respectively.

The level of tax charge from joint ventures and associates included in

adjusted operating profit is $(9) million higher than that incurred in

2024.

Overall short-term market movements generated a small benefit in

2025, as compared with a small negative in 2024, and after allowing

for this total IFRS profit after tax increased 6 per cent on an actual

exchange rate basis to $535 million.

A detailed discussion of new business performance by key businesses

is presented below.

Africa

Prudential Africa operates in 5 key markets with access to a

population of around 400 million. We exited the businesses in

Cameroon, Cote d'Ivoire and Togo during the year. APE sales for the

5 remaining markets grew by 24 per cent in 2025, with all five of our

markets growing as did both our agency and bancassurance channels.

Our agency business saw an increase in both monthly average active

agents and in agents qualifying for MDRT status. Our bancassurance

channel benefits from over 25 bank partnerships with access to over

950 branches. The franchise ranks in the top 5 in 3 of its markets with

number-one rankings in Uganda and Zambia. Nigeria and Kenya,

though we are currently not in the top 5, offer tremendous growth

opportunities. Strong growth in agency in both of these markets and

operationalisation of the SCB distribution deal in Kenya in 2025,

position these markets well for future growth. In addition we

successfully completed the integration of the Zenith life business in

Nigeria.

India

ICICI Prudential Life, in which we maintain a 22 per cent

shareholding, remains one of India’s leading private-sector life

insurers, with a top 5 position amongst private life insurers. It is listed

on both the National Stock Exchange and the Bombay Stock

Exchange and as at 31 December 2025 had a market capitalisation

of $10.5 billion. Its broad and well‑established distribution

capabilities provide access to a wide customer base across key

segments, supporting the business’s long‑term growth trajectory. APE

sales in India declined (2) per cent for the full year, following strong

growth in 2024. The year ended well with year-on-year APE sales

growth in the last quarter of 2025, including strong growth of

protection products. The increase in protection sales, particularly in

the retail channel, combined with other beneficial product mix effects,

helped margins improve compared to the prior year. The

bancassurance channel grew in the period, reflecting an increase in

both the number of partners and productivity.

The Philippines

Our business in the Philippines continues to lead the industry by

market share. Challenges in recruitment and activation of new and

mid-tier agents led to a lower number of overall active agents in

2025. As a consequence, APE sales were lower than the prior year.

We have seen positive traction with product offerings for affluent

customers with new product launches proving popular with customers

in this segment and the agents who serve them. Favourable product

mix effects supported margins and agent productivity. We continue

our efforts to focus on quality agency recruitment and developing our

existing agency force and saw an increase in the number of our

agents qualifying for MDRT status.

Taiwan

Taiwan is an attractive insurance market, supported by high GDP

growth and a population of circa 23 million. Prudential grew APE sales

by 5 per cent in the year, building on the strong prior‑year

performance and helping us to retain our position as the number one

foreign insurer in the market. New business profit increased,

supported by positive product mix effects.

Our participating savings product suite remains a core competitive

advantage in meeting customers’ long‑term savings needs. We

continue to build on our record of product innovation by tailoring our

participating product to the savings and protection needs of different

customer segments and distribution partners. In 2025 we introduced

a new medical solution that combines health and mortality

protection.

Our multi‑channel strategy remains central to our distribution

strength. Both the bancassurance and brokerage channels delivered

APE sales growth during the year. We successfully onboarded new

partners and deepened collaboration with existing partners through

customised campaigns and targeted offerings. This was supported by

the awarding of a twAAA rating in the year by Taiwan Ratings.


	53 Prudential plc Annual Report 2025

Thailand

In Thailand, we continue to focus on our bancassurance channel,

complemented by other distribution channels including digital,

agency, direct marketing and brokerage. Overall APE sales increased

by 9 per cent. During 2025 we introduced several new products

including a market-leading whole-of-life participating product that

supports high-net-worth and affluent clients with their wealth

succession and wealth transfer goals. The increase in APE sales,

together with positive channel mix effects, led to increased new

business profit in the period.

Our bancassurance channel grew APE sales compared with the prior

year, and we retained our top three position¹ in bancassurance sales

in the market. We responded to lower interest rates by increasing our

focus on participating and health and protection products, as part of

a strategic initiative to broaden our customer propositions and

protect the portfolio from interest rate risks.

Vietnam

APE sales in Vietnam materially declined in 2025, in both the agency

and bancassurance channels. The local industry continues to face

disruption, including recent and ongoing regulatory change.

Reflecting this reduction in volume, overall new business profit

declined. However, our focus on quality led to an improvement in new

business profit margins. In our agency business, we have acted early

to ensure compliance with regulatory changes ahead of the deadline,

and we continue to invest in our agency force to support our long-

term quality growth ambitions. In the bancassurance channel, we

continue to work closely with our partners to drive quality sales, rather

than market share. For example, through our partnership with

Vietnam International Bank, we have implemented key initiatives

that not only align with, but in some areas go beyond, the

requirements of Vietnam’s new insurance law.

We believe that the market will regain growth momentum as

customer confidence is restored. We continue to believe that, in the

medium and longer term, there is significant opportunity to meet the

structural demand for savings and protection solutions due to the low

market penetration rate and a significant protection gap.


	54 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Segment discussion continued

Eastspring


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
Total funds under management ($bn)	277.7	258.0	8%	4%
Adjusted operating profit ($m)	329	304	8%	9%
Fee margin based on operating income (bps)	30	30	–bps	–bps
Cost/income ratio (%)	52	52	–ppts	–ppts
IFRS profit after tax excluding corporate transactions ($m)	305	275	11%	12%
IFRS profit after tax ($m)	1,633	264	519%	528%

Eastspring is the Group's asset management business. It is well

positioned with one of the widest footprints in Asia through our

operations in 10 key markets, of which we have top 10 positions in six.

With around 400 investment professionals, Eastspring provides

tailored advice and bespoke solutions to its client base which

comprises third-party clients, both retail and institutional accounts,

and the Group's insurance entities.

Eastspring currently manages and advises on funds of $277.7 billion

(referred to as funds under management or FUM), including $174.5

billion of funds on behalf of Prudential plc. Adjusted operating profit

before tax grew by 9 per cent, while our cost/income ratio stayed flat

against prior year. Total net inflows (including money market funds)

were $16.0 billion (2024: $12.8 billion).

Strengthening our momentum

2025 was characterized by continued volatility in global markets and

equity markets were generally higher at the end of the year than at

the beginning. During a period which saw global trade tariff policy

changes, persistent inflation and geopolitical tensions, Eastspring

proactively advised its clients, increased engagement, and guided

investors through fast‑moving market and policy shifts.

The ability to navigate uncertainty is underpinned by deep

investment expertise, synergies with Prudential Life companies, and

continued investment in capabilities. Together, these strengths

enable us to deliver excellence for clients across market cycles.

Investments: At year end, 74 per cent of FUM outperformed their

benchmark over one year (31 December 2024: 60 per cent) and 65

per cent of FUM outperformed their benchmark over three years (31

December 2024: 61 per cent). While performance in the first half was

marginally impacted by market reactions to ‘Liberation Day’, our

disciplined risk management and agility in capturing positive market

momentum have positioned us ahead of benchmarks across key

strategies:

– Fixed Income strategies continue to outperform, supported by an

enhanced focus on risk management and portfolio construction.

This consistency underscores our ability to navigate volatility while

delivering value for clients.

– Equities delivered solid performance. In recent years, we have

broadened our Asian strategies to include Value, Growth, Income

and Quant approaches. This diversification helps reduce cyclical

volatility in performance.

– Multi-asset strategies continue to make gains. We’ve developed

diversified income-focused solutions that offer clients a balanced

approach to investment markets. We have also enhanced risk

mitigation overlays to guard against sudden market downturns and

focused on strengthening governance and performance oversight

frameworks.

Our expertise was further recognised with 54 industry accolades

during the year, including Best Asia Pacific (ex-Japan) Local Currency

Fixed Income Manager at the Citywire Asia Asset Management

Awards 2025, and Best Fund Provider for Asia Pacific Equity at the

Asian Private Banker Asset Management Awards.

Distribution: A cornerstone of maintaining long-term relationships

with our clients is understanding clearly what they value from an

institutional investment firm and investment advisor. This includes co-

creating solutions and specialist products that meet their specific

needs and taking into account market conditions. In 2025, this led to

us revising our suite of high conviction strategies.

We also made significant progress in expanding our book of clients

across both institutional and retail sectors:

– Institutional: Demand from global institutions continued to grow in

2025, particularly for our Japan and Global Emerging Market

(GEM) strategies. We also achieved a significant milestone in

Singapore with our selection for the MAS’ Equity Market

Development Programme (EQDP) mandate.

– Retail: We deepened partnerships with leading regional and local

banks across Singapore, Indonesia, Thailand, and Taiwan,

broadening access to our investment capabilities.

Complementing these efforts, our 2025 flagship ‘Think Asia. Think

Active.’ campaign further elevated Eastspring’s visibility and

positioned us strongly as the partner of choice for active investing in

Asia.

Joint ventures: As at 31 December 2025, Eastspring FUM includes

$43.9 billion from our remaining 35 per cent share in IPAMC and

$13.8 billion from our 49 per cent share in funds managed by CITIC–

Prudential Fund Management Company Limited (CPFMC) in China.

In China, CPFMC’s fixed income and active equity strategies

outperformed, with the CITIC Prudential Wenyue Bond fund ranking

in the top 1 per cent of the industry and the CITIC Prudential Xinxuan

fund ranking in the top 4 per cent of the industry. Distribution

momentum continued, generating over $1.2 billion in flows during

the year.

Focused execution

In 2025, we focused on three strategic priorities:

– Scaling third-party business to serve a broader base of institutional

and retail clients;

– Strengthening the partnership with Prudential Life companies to

serve evolving insurance needs underpinned by competitive and

consistent investment performance; and

– Transforming our operating model to develop an efficient and

integrated enterprise model that increases operating leverage and

supports the long-term growth of the company.

As part of our focus on markets where we can deliver the greatest

value, we completed the sale of Eastspring Investments Korea in the

first half of 2025. This allows us to concentrate on the 10 markets

where our pan-Asian investment capabilities and distribution network

are strongest.


	55 Prudential plc Annual Report 2025

In December 2025 we also completed the IPO of IPAMC, crystallising

value for the Group's shareholders, and reduced our stake from 49 per

cent to 35 per cent, which will be reflected in a reduced share of

profits from 2026.

Investing in capabilities

Asia remains one of the most compelling long-term opportunities

globally, supported by a large, growing and increasingly affluent

population. Investors are rotating capital to Asia, seeking

diversification amid macroeconomic divergence and policy

uncertainty in other parts of the world. Asia-Pacific (APAC) alone is

expected to drive up to 38 per cent of global net new flows by 2027²,

underscoring the scale of the opportunity ahead.

Eastspring is well positioned to capture this opportunity. With a wide

Asian footprint, deep local insights, and one of the largest Asia-based

investment teams, we combine scale with expertise.

As we step into 2026, Eastspring is focused on areas where we have

proven strengths and growth opportunities. We are enhancing our

investment capabilities and innovating solutions to meet evolving

client needs. By investing in our people and expertise, expanding

client access, and strengthening our operating platform, we will create

long-term value for clients and stakeholders.

Financial performance


	Actual exchange rate			Constant exchange rate
	2025	2024	Change	Change
	$m*	$m*	%	%
External funds under management ($bn)	103.2	109.4	(6)	(6)

Internal funds under management ($bn)	127.5	115.4	10	3
Internal funds under advice ($bn)	47.0	33.2	42	42
Total internal funds under management or advice ($bn)	174.5	148.6	17	11

Total funds under management or advice ($bn)	277.7	258.0	8	4

Total external net flows	5,573	5,824	(4)	(1)

Analysis of adjusted operating profit
Retail operating income	470	414	14	14
Institutional operating income	339	333	2	1
Operating income before performance-related fees	809	747	8	8
Performance-related fees	5	–	n/a	n/a
Operating income (net of commission)	814	747	9	9
Operating expense	(418)	(385)	(9)	(7)
Group's share of tax on joint ventures' adjusted operating profit	(67)	(58)	(16)	(20)
Adjusted operating profit	329	304	8	9
Adjusted operating profit after tax	305	275	11	12

Average funds managed by Eastspring ($bn)	271.7	249.3	9	8
Fee margin based on operating income	30bps	30bps	–bps	–bps
Cost/income ratio	52%	52%	–ppts	–ppts

* Unless otherwise stated.

Eastspring's total FUM grew to $277.7 billion at 31 December 2025 (31

December 2024: $258.0 billion on an actual exchange rate basis), with

average FUM across the year increasing 8 per cent compared with the

prior year. This largely reflected net inflows from third parties and the

Group's life business and positive market movements (including foreign

exchange), partly offset by Eastspring FUM reductions from the listing

of IPAMC’s equity shares and the sale of Eastspring Investments Korea.

Overall, managed assets remain well diversified across both clients and

asset classes, with asset mix shifting marginally during 2025 from equity

and fixed income to multi-asset.

Eastspring’s adjusted operating profit grew 9 per cent in the year to

$329 million, which includes a $27 million (2024: $22 million) net

investment gain, reported within operating income before

performance-related fees, on shareholders’ investments including

seed capital. Excluding the gains on shareholders’ investments from

both periods, adjusted operating profit was 8 per cent higher, in line

with average FUM growth. Both cost/income ratio and fee margin

stayed broadly constant with those recorded in 2024.

Notes

(1) As reported at full year 2025 unless otherwise specified. Sources include formal (eg competitors' results releases, local regulators and insurance association) and informal

(industry exchange) market share. Ranking based on new business (APE sales, weighted new business premium, retailed weighted received premium, full year premium or

weighted first year premium) or gross written premium depending on availability of data. Hong Kong ranking based on APE sales. Rankings in the case of Mainland China,

Taiwan and Myanmar are among foreign insurers, while for India they are among private companies. Markets based on nine months ended September 2025: Mainland China,

Hong Kong, three months ended March 2025: PPMZ (Africa), full year 2024: Laos, Nigeria (Africa), Uganda (Africa), Zambia (Africa) and full year 2023: Ghana (Africa) and Kenya

(Africa).

(2) Source: Broadridge APAC Quarterly Trends Report Q2 2025.


	56 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Risk review

Agile and responsible risk management

through advocating the interests of our people,

customers, regulators and shareholders

1 Introduction

Prudential’s Group Risk Framework, risk appetite and robust

governance have enabled the business to manage and control its risk

exposure throughout market volatility and uncertainty in 2025 to

support the Group’s strategy of delivering sustainable value for all our

stakeholders. As Prudential focuses on executing its strategy across

Asia and Africa, the Group-wide Risk and Compliance function has

continued to provide advice, recommendations and assurance on risk

and compliance matters. It also engages with Prudential’s Group-

wide supervisor, the Hong Kong Insurance Authority (Hong Kong IA),

on critical activities, while overseeing the risks and implications to the

ongoing business with the goal of ensuring that the Group remains

within its approved risk appetite. Our risk strategy outlines four

essential strategic pillars covering stewardship, agile and robust risk

management, effective systems of governance and compliance, and

a value-add mindset. This is also supported by three enablers,

including standardisation and simplification of controls and

processes, timely access to data and increased use of technology and

analytics, and building capabilities at scale. The Group effectively

leverages its risk management and compliance experience in more

mature markets, applying it appropriately to its growth markets. The

manner and extent of their application in specific businesses takes

into account the specific risks and the extent of challenges under

complex operating environments, and is reflective of opportunities,

customer issues and needs, and local customs. Prudential will continue

to take a holistic, coordinated and disciplined approach in managing

the increasingly dynamic, multifaceted and often interconnected risks

facing its businesses.

Below we explain how we manage risk, including through our risk

governance framework and processes. We then describe the principal

risks the Group faces, including how each principal risk is managed,

followed by a detailed description of the specific risk factors that may

affect our business, the Group and our stakeholders.

2 Risk governance

a. System of governance

Prudential has in place a system of governance that seeks to embed

clear ownership of risk, together with risk policies and standards to

enable risks to be identified, measured and assessed, managed and

controlled, and monitored and reported. The Group Risk Framework,

owned by the Board, details Prudential’s risk governance, risk

management processes and risk appetite. The Group’s risk

governance arrangements are based on the ‘three lines’ model. The

‘first line’ is responsible for taking and managing risk within the risk

appetite, while the ‘second line’ provides additional challenge,

expertise and oversight to support risk and compliance management,

and the ‘third line’ provides independent assurance on the design,

effectiveness and implementation of the overall system of internal

control. The Risk and Compliance function reviews, assesses, oversees

and reports on the Group’s aggregate risk exposure and solvency

position from an economic, regulatory compliance and credit ratings

perspective.

The Group Governance Framework is reviewed regularly with the goal

of ensuring that the framework remains fit for purpose and continues

to support sound and prudent management and oversight of the

Group’s business. The Group also regularly reviews the Group Risk

Framework and supporting policies, including sustainability policies, to

ensure that sustainability considerations, which are integral to the

wider Group governance, are appropriately reflected in processes and

embedded within all business functions.

b. Group Risk Framework

The Group Risk Framework sets out the approach to managing risk

within the Group and its subsidiaries and supports the

implementation of the Group’s Risk Strategy.

i. Risk governance and culture

Prudential’s risk governance comprises the Board, organisational

structures, reporting relationships, delegations 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. The Risk Committee leads

the risk governance structure, supported by independent Non-

executive Directors on the risk committees of the Group’s material

subsidiaries. The Risk Committee is responsible for approving changes

to the Group Risk Framework and the core risk and compliance

policies that support it, and has direct lines of communication to, and

reporting and oversight of, the risk committees of the Group’s

material subsidiaries, as well as maintaining regular dialogue with the

Chairs of major next‑tier operating subsidiary risk committees. The

chief risk officers of the Group’s material subsidiaries and major

next‑tier operating subsidiaries also attend the Risk Committee

meetings on a rotational basis.

The 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 and addressing 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 risks through open discussions, collaboration and

engagement. The Risk Committee has a key role in providing advice to

the Remuneration Committee on risk management considerations to be

applied in respect of executive remuneration.

Fostering and overseeing the embedding of culture, including risk

culture, is a responsibility of the Board, which recognises its

importance in the way the Group conducts business. The Group has a

set of fundamental values, referred to as ‘The PruWay’, that serve as

the Group’s guiding principles to ethical and authentic conduct, and

apply equally to all members of Prudential.

Prudential’s Code of Conduct and Group Governance Manual,

supported by the Group’s risk-related policies, are reviewed regularly.

The Code of Conduct lays down the principles and guidelines that

outline the ethical standards and responsibilities of the organisation

and our people. Supporting policies include those related to

regulatory compliance, anti-money laundering, sanctions, anti-bribery

and corruption, counter fraud, conduct, conflicts of interest, confidential

and proprietary information and securities dealing. The Group’s Third-

Party Supply and Outsourcing Policy requires that human rights and

modern slavery considerations be taken into account for material

supplier arrangements. Procedures to allow individuals to speak out

safely and anonymously against unethical behaviours and conduct


	57 Prudential plc Annual Report 2025

violations are also in place. These together with our values encourage

a culture of risk vigilance.

Sustainability is integral to the Group’s risk culture. The Risk

Committee supports the sustainability strategy by ensuring

sustainability-related risks, including climate-related risks and

opportunities, people, and culture are effectively managed. Further

details on the Group’s sustainability governance arrangements and

strategic framework are included in the Group’s 2025 Sustainability

Report.

ii. The risk management cycle

The Group's risk management cycle refers to the ongoing process of

identifying, measuring and assessing, managing and controlling,

monitoring and reporting the risks to which the business is exposed. It

includes an assessment of capital adequacy to ensure that the

Group’s solvency needs are met at all times, as well as stress and

scenario testing that also includes climate scenario analysis.

Risk identification

The Group identifies and manages principal and emerging risks in

accordance with the Group-wide Supervision (GWS) regulatory

framework issued by the Hong Kong IA and provision 28 of the UK

Corporate Governance Code. The Group performs a robust

assessment and analysis of principal and emerging risk themes

through the risk identification process, the Group Own Risk and

Solvency Assessment report, and the risk assessments undertaken as

part of the business planning review, including how they are

managed and mitigated, which in turn supports decision-making.

Top-down and bottom-up processes are in place to support Group-

wide identification of principal risks. The Group’s principal risks, which

are reported and managed by the Group with enhanced focus, are

reviewed and updated on a regular basis.

An emerging risk identification framework also exists to support the

Group’s preparations in managing financial and non-financial risks

expected to materialise beyond the business-planning horizon. The

Group’s emerging risk identification process recognises the dynamic

materiality of emerging risk themes, whereby the topics and the

associated risks that are important to the Group and its respective key

stakeholders can change over time, often very quickly. This is often

seen in connection with sustainability-related and technology-related

risks, which can potentially impact the Group both financially and

reputationally given evolving stakeholder expectations.

Risk measurement and assessment

All identified risks are assessed based on an appropriate methodology

for that risk. Quantifiable risks which are material and mitigated by

holding capital are modelled in the Group’s internal model, which is

used to determine the Group Internal Economic Capital Assessment

(GIECA) with robust processes and controls on model changes. The

GIECA model and results are subject to independent validation.

Risk management and control

The Group’s control procedures and systems focus on aligning the levels

of risk taking with the Group’s strategy and can only provide reasonable,

not absolute, assurance against material misstatement or loss. The

Group’s risk policies define the Group’s appetite for material risks and set

out the risk management and control requirements to limit exposure.

These policies also set out the processes to enable the measurement and

management of these risks in a consistent and coherent way, including

the flows of management information required. Stress and scenario

testing is also in place to assess the robustness of capital adequacy and

liquidity, as well as to support recovery planning. This includes reverse

stress testing, which requires the Group to ascertain the point of

business model failure and is another tool that helps to identify the key

risks and scenarios that may have a material impact on the Group.

The methods and risk management tools employed to mitigate each

of the Group’s principal risks are detailed in section 3 below.

Risk monitoring and reporting

The Group’s principal risks are highlighted in the management

information received by the Risk Committee and the Board, which

also includes key exposures against risk appetite and developments in

the Group’s principal and emerging risks.

iii. Risk appetite, limits and triggers

The Group aims to balance the interests of the broad spectrum of its

stakeholders (including customers, investors, employees, regulators,

communities and key business partners) and understands that a well-

managed acceptance of risk lies at the heart of its business. The

Group generates stakeholder value by selectively taking exposure to risks,

mitigated to the extent it is cost effective to do so, and where these are an

outcome of its chosen business activities and strategy. Those risks for

which the Group has no tolerance are actively avoided. The Group’s

systems, procedures and controls are designed to manage risk

appropriately, and its approach to resilience and recovery aims to

maintain the Group’s ability and flexibility to respond in times of

stress.

Qualitative and quantitative expressions of risk appetite are defined

and operationalised through risk limits, triggers and indicators. The

Risk and Compliance function reviews the appropriateness of these

measures at least annually. The Board approves changes to the

Group’s aggregate risk appetite and the Risk Committee has

delegated authority to approve changes to the system of limits,

triggers and indicators.

Group risk appetite is defined and monitored in aggregate by the

setting of objectives for its capital requirements, liquidity and non-

financial risk exposure, covering risks to stakeholders, including those

from participating and third-party businesses:

1. Capital requirements: Limits on capital requirements aim to

ensure that, in both business-as-usual and stressed conditions, the

Group maintains adequate capital in excess of internal economic

capital requirements and regulatory capital requirements,

achieves its desired target credit rating to meet its business

objectives, and avoids the need for supervisory intervention. The

two measures in use at the Group level are the GWS and GIECA

capital requirements.

2. Liquidity: The objective of the Group’s liquidity risk appetite is to

help ensure that appropriate cash resources are available to meet

financial obligations as they fall due in both business-as-usual

and stressed scenarios. This is measured using a liquidity

coverage ratio, which considers the sources of liquidity against

liquidity requirements under stress scenarios.

3. Non-financial risks: The Non-Financial Risk Appetite Framework

is in place to identify, measure and assess, manage and control,

monitor and report effectively on material non-financial risks

across the business. The non-financial risk appetite is framed

around the perspectives of its varied stakeholders, accounts for

current and expected changes in the external environment, and

provides limit and trigger appetite thresholds for non-financial risk

categories across the Group’s locations. The Group accepts a

degree of non-financial risk exposure as an outcome of its chosen

business activities and strategy, and aims to manage these risks

effectively to maintain its operational resilience, and

commitments to customers and all other stakeholders, and to

avoid material adverse financial loss or impact to its reputation.

Group limits operate within these expressions of risk appetite to

constrain material risks, while triggers and indicators provide

additional defined points for escalation. The Risk Committee,

supported by the Risk and Compliance function, is responsible for

reviewing the risks inherent in the Group’s business plan and for

providing the Board with a view on the risk/reward trade-offs and the

resulting impact to the Group’s aggregated position relative to Group

risk appetite and limits, including non-financial risk considerations.


	58 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Risk review continued


Identify					Measure and assess
Risk identification covers Group-wide: (a) Top-down risk identification (b) Bottom-up risk identification (c) Emerging risk identification					Risks are assessed in terms of materiality. Material risks which are modelled are included and appropriately validated capital models.
	Risk governance and culture			Business strategy
	Risk governance comprises the Board, organisational structures, reporting relationships, delegations of authority, roles and responsibilities, and risk and compliance policies. A set of fundamental values (The PruWay) and Prudential's Code of Conduct serve as the Group’s guiding principles for ethical and authentic conduct.			Our business strategy and business plan provide direction on future growth and inform the level of limits on solvency, liquidity and our key risks. The Risk and Compliance function provides input and opinion on key aspects of business strategy.
	Risk Management

		Capital management		Stress and scenario testing
	Capital adequacy is monitored to help ensure that internal and regulatory capital requirements are met, and that solvency buffers are appropriate over the business planning horizon and under stress.			Stress and scenario testing is performed to assess the robustness of capital adequacy and liquidity, as well as to support recovery planning.
Monitor and report			Manage and control
Escalation requirements in the event of a breach are clearly defined. Risk reporting provides regular updates to the Board and the Risk Committee on exposures against Board-approved appetite statements and limits. Reporting also covers the Group's principal risks.			Risk appetite and limits allow for the controlled growth of the Group’s business, in line with business strategy and plan. Processes that support the oversight and control of risks include: 1. The Risk and Control Self-Assessment process 2. The Own Risk and Solvency Assessment 3. Group-approved limits and early warning triggers 4. Large risk approval process 5. Global Counterparty Limit Framework 6. Crisis management/internal incidents management procedures 7. Stress and scenario testing, including reverse stress testing


	59 Prudential plc Annual Report 2025

3 The Group’s principal risks

The delivery of the Group’s strategy in building long-term value for all our stakeholders inevitably requires the acceptance of certain risks. The

materialisation of any of these risks within the Group or in its joint ventures, associates or key third-party partners may have a financial impact

and may affect the performance of products or services or the fulfilment of commitments to customers and other stakeholders, or could

otherwise have an adverse impact on Prudential’s brand and reputation.

This section provides a high-level overview of the principal risks faced by the Group, including the key tools used to manage each risk. A detailed

description of these and other risks is presented under the heading ‘Risk factors’ below.

The Group’s 2025 Sustainability Report includes further detail on the sustainability-related (including environmental, social and governance

(ESG) and climate-related) risks which contribute to the materiality of the Group’s principal risks detailed below.

Summary of principal risks


Risks to the Group’s financial position

The global economic and geopolitical environment may impact the Group directly by affecting trends in financial markets and asset values, as well as driving short-term volatility.	Risk type
	– Global economic and geopolitical conditions – Market risks to our investments: – Interest rate risk, including asset liability management (ALM) – Equity and other non-fixed interest asset risk – Currency risk – Liquidity risk – Credit risk


Risks from the nature of our business and our industry

These include the Group’s non-financial risks such as operational and change delivery risks from significant transformation activities, risks related to regulatory compliance and legal, technology risks, risks associated with the Group’s joint ventures and associates, and insurance risks, business concentration risks and customer conduct risks assumed by the Group in providing its products.	Risk type
	– Non-financial risks: – Operational processes risk – Change delivery risk – Third-party management risk – Technology, data, and cyber security risk – Customer conduct risk – Regulatory compliance and legal risk – Model risk – Financial crime risk – Business continuity risk	– Insurance risks: – Medical claims inflation risk – Morbidity risk – Persistency risk – Business concentration risk – Risk associated with the oversight of the Group's joint ventures and associates


The Group’s sustainability-related (including ESG and climate-related) risks

Sustainability-related risks refer to (a) environmental, social or governance issues, trends or events that could have a financial or non- financial impact on the Group, and/or (b) the Group's sustainability-focused activities, strategy and commitments that could have an external impact on the environment and wider society in which the Group operates.


	60 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Risk review continued


	Risks to the Group’s financial position

	The global economic and geopolitical environment may impact the Group directly by affecting trends in financial markets and asset values, as well as driving short-term volatility. Risks in this category include the market risks to our investments and the credit quality of our investment portfolio, as well as liquidity risk.


Global economic and geopolitical conditions
In 2025, Prudential continued to navigate a highly complex and rapidly evolving macroeconomic and geopolitical landscape marked by persistent uncertainties and potential challenges. Expectations entering the year for easing inflation and a potential rate-cutting cycle by the US Federal Reserve were disrupted by the escalation of protectionist trade policies, including in the US as well as by major trading partners. These, among other measures, have heightened macroeconomic uncertainty, geopolitical tension, and market volatility, while driving up import costs and fuelling inflationary pressures across markets, particularly in the US, where Treasury yields rose in Q2 2025 amid growing concerns over inflation and policy direction, before easing later in the year as the US Federal Reserve resumed monetary easing. Although US employment, household consumption and income growth were resilient, supported at least in part by an AI infrastructure-related investment cycle, trade policy uncertainty and higher trade barriers weighed on business sentiment and parts of the manufacturing and investment cycle. The broader implications for global growth remain uncertain, especially for countries materially impacted by these trade measures. The trajectory of interest rates remains volatile, shaped by the evolving stance of US economic policy and decisions from the US Federal Reserve, which reduced its policy rate by 75 basis points in total during 2025. This, coupled with evolving US protectionist policies, may exert pressure on borrower creditworthiness and business growth prospects. Moody’s downgrade of the US sovereign rating in May 2025, resulting in the US losing its AAA credit rating from all three major credit rating agencies for the first time in a century, further underscores the fragility of the fiscal and policy landscape. Mainland China continued to face its own set of economic headwinds in 2025, including slower economic growth, ongoing concerns in its property sector, subdued domestic private sector activity, and weakening customer demand, which continue to place downward pressure on its interest rates. These challenges, compounded by US protectionist measures and broader trade and technology frictions, increased uncertainty for Mainland China and other significant economic blocs. Although a temporary US-China tariff truce was agreed in May and high-level engagement resumed in October, elevated tariff levels and export controls continued to weigh on supply chains and regional trade, potentially constraining the growth outlook for both the broader Asian region and the global economy. These dynamics could further depress China government bond yields and increase the challenges of investment management in Mainland China. Geopolitical tensions, notably US-China relations, and various conflicts, while varying in intensity and impact, may lead to further realignment and fragmentation risks within and between blocs and regions. Wars in Ukraine and the Middle East, alongside broader concerns about shipping security and sanctions risk, contributed to episodic disruptions to trade, supply chains, and commodities markets; any escalation or sustained tensions in these regions may lead to heightened market volatility, and materially higher energy costs and inflation, particularly for net oil-importing economies. In parallel, the US also pursued negotiations and preliminary framework agreements with a range of trading partners, including consultations with ASEAN economies on tariff and non-tariff measures, adding to fragmentation risk and broader geopolitical uncertainty. Elevated market volatility and uneven global growth continue to pose risks to investment performance, especially if recessionary pressures materialise in key markets where Prudential operates. These macroeconomic and geopolitical developments are considered material to the Group and may increase operational and business disruption, regulatory (including sanctions) risks and financial market risks, thereby potentially impacting Prudential’s sales and distribution networks. The potential impacts to the Group are included in sections 1.1 and 1.2 of the Risk factors.
Risk description		Risk management
Market risks to our investments
(Audited) The value of Prudential’s direct investments may be impacted by fluctuations in interest rates, equity and property prices, credit spreads, and foreign exchange rates. These risks are highly correlated to macroeconomic and geopolitical movements, together with government and central bank actions. Certain exposures, including alternative investments, may also be subject to higher valuation uncertainty and lower liquidity compared with public market assets. There is also potentially indirect impact through the value of the net equity of its joint ventures and associates. The Group’s direct exposure to inflation remains modest. Exposure mainly arises through an increase in medical claims obligations, driven by rising medical prices as well as potential impact on customers from an affordability perspective. Medical inflation risk as well as challenges for insurers linked to affordability and existing challenges in persistency are detailed in the Insurance risks section below.		The Group has appetite for market risk where it arises from profit- generating insurance activities to the extent that the risk remains part of a balanced portfolio of sources of income for shareholders and is compatible with a robust solvency position. The Group’s market risks are managed and mitigated by the following: – The Group Financial Risk Policy; – The Group Capital and ALM Committee and Group ALM Policy; – Changes in asset allocation, bonus revisions, repricing and the use of reinsurance where appropriate; – The Group Investment Committee and Group Investment Policy; – The Group Chief Investment Office, which is responsible for the formulation and execution of the company’s investment strategies; – Hedging using derivatives, including currency forwards and swaps, bond forwards/futures, interest rate futures and swaps, and equity futures; – The monitoring and oversight of market risks through the regular reporting of management information; – Regular deep-dive assessments; and – The Group Crisis Management Procedure, which defines specific governance to be invoked in the event of a crisis such as a significant market, liquidity or credit-related event, cyber incident or staff safety issue.


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Risk description		Risk management
Market risks to our investments continued
Interest rate risk, including ALM Interest rate risk is driven by the impact of the valuation of Prudential’s assets (particularly government and corporate bonds) and liabilities, which are dependent on market interest rates. The Group’s risk exposure to rising interest rates arises from the potential impact to the present value of future fees for unit- linked businesses, such as in Singapore, Indonesia and Malaysia, as well as the impact to the present value of the future profits for accident and health products, such as in Hong Kong and Singapore. Exposure to higher interest rates also arises from the potential impact to the value of fixed income assets not attributed to policyholder liabilities, such as the assets in the shareholder funds. The Group’s risk exposure to lower/decreased interest rates arises from the guarantees of some non-unit-linked products with a savings component, including the Hong Kong, Singapore, Taiwan and Mainland China's participating and non-participating businesses. This exposure results from the potential for an asset and liability mismatch, where long-dated liabilities and guarantees are backed by short-dated assets.		The Group Capital and ALM Committee is a management committee supporting the identification, assessment and management of key financial risks to the achievement of the Group’s business objectives. It oversees ALM, solvency and liquidity risks of the local businesses as well as the declaration and management of non-guaranteed benefits for participating and universal life businesses. Local business units are responsible for the management of their own asset and liability positions, with appropriate governance in place. The objective of the local business unit ALM process is to meet policyholder liabilities with the returns generated from the investment assets held, while maintaining the financial strength of capital and solvency positions. The ALM strategy adopted by the local business units considers the liability profile and related assumptions of in-force business and new products to appropriately manage investment risk within ALM risk appetite, under different scenarios in accordance with policyholders’ reasonable expectations, and economic and local regulatory requirements. Assessments are carried out on an economic basis which is consistent with the Group’s internal economic capital methodology. Factors such as local regulations, the availability of assets, currency, duration, and diversifications are considered as appropriate. The Group’s appetite for interest rate risk requires that assets and liabilities should be tightly matched for exposures where assets or derivatives exist that can cover these exposures. Interest rate risk is accepted where this cannot be hedged, provided that this arises from profitable products and to the extent that such interest rate risk exposure remains part of a balanced exposure to risks and is compatible with a robust solvency position. When asset and liability duration mismatch cannot be eliminated, it is monitored and managed through local risk and asset liability management committees and Group risk limits consistent with the Group’s appetite for interest rate risk.
Equity and property investment risk The shareholder exposure to equity price movements arises from various sources, including from unit-linked products where fee income is linked to the market value of funds under management. Exposure also arises from participating businesses through potential fluctuations in the value of future shareholders’ profits and where bonuses declared are based broadly on historical and current rates of return from the businesses' investment portfolios, which include equities. The material exposures to equity risk in the Group’s businesses include Mainland China’s exposure to equity risk through investments in equity assets for most of its products, including participating and non-participating savings products and protection and unit-linked products. The Hong Kong and Singapore businesses, and to a lesser extent, the Taiwan and Malaysia businesses, contribute to the Group’s equity risk exposure due to the equity assets backing participating products. The Singapore, Indonesia and Malaysia businesses are also exposed to equity risk through their unit-linked products.		The Group has limited acceptance for exposures to equity risk from non-participating products if it is not rewarded for taking the equity risk. The Group accepts equity exposure that arises from future fees (including shareholder transfers from the participating businesses) but limits its exposure to policyholder guarantees by hedging against equity movements and guarantees where it is considered economically optimal to do so. Where equity risk is accepted, it is explicitly defined by the strategic asset allocation, as well as monitored and managed through local risk and ALM committees. Overall exposure to equity risk from the participating businesses is also managed through Group risk limits consistent with the Group’s appetite for equity risk.


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Risk review continued


Risk description		Risk management
Market risks to our investments continued
Currency risk The geographical diversity of Prudential’s businesses means that it is exposed to the risk of foreign exchange rate fluctuations. Prudential’s operations generally write policies and invest in assets denominated in local currencies, but some entities within the Group write policies, invest in assets or enter into other transactions in the US dollar or other non-local currencies. This can lead to fluctuations in the Group’s consolidated financial statements upon the translation of local operating results into the Group’s presentation currency in the US dollar. Additionally, the Group is affected by exchange rate movements through changes in the value of remittances received from the local business units. This risk is further detailed in section 1.6 of the Risk factors.		The Group accepts the currency risk that emerges from profits retained locally to support the growth of the Group’s business and the translation risks from capital being held in the local currency of the business to meet local regulatory and market requirements. However, in cases where a surplus arising in an overseas operation supports Group capital or shareholders’ interest (i.e. remittances), this exposure is hedged if it is economically optimal to do so. The Group does not accept significant shareholder exposures to foreign exchange risks in currencies outside the local territory. Currency risk is managed by the Group Capital and ALM Committee through the implementation of asset allocation on funds which captures the exposure to non-locally-denominated assets.
Liquidity risk
(Audited) Prudential’s liquidity risk arises from the need to have sufficient liquid assets to meet policyholder and third-party payments as they fall due, considered under both business-as-usual and stressed conditions. It includes the risk arising from funds composed of illiquid assets and results from a mismatch between the liquidity profile of assets and liabilities. Liquidity risk may impact market conditions and valuation of assets in a more uncertain way than other risks like interest rate or credit risk. It may arise, for example, where external capital is unavailable at sustainable cost, where derivatives transactions require a sudden significant need of liquid assets or cash to post as collateral to meet derivatives margin requirements, or where redemption requests are made against funds managed for external clients (both retail and institutional). Liquidity risk is considered material at the level of the Group.		The Group has no appetite for any business to have insufficient resources to cover its outgoing cash flows, or for the Group as a whole to not meet cash flow requirements from its debt obligations under any plausible scenario. The Group has significant internal sources of liquidity sufficient to meet its expected cash requirements for at least 12 months from the date the financial statements are approved, without having to resort to external sources of funding. As at 31 December 2025, the Group had a total of $1.5 billion of undrawn committed facilities which expire in 2031 and a further $100 million that expire in 2029. Access to further liquidity is available through the debt capital markets and the Group’s extensive commercial paper programme. Prudential has maintained a consistent presence as an issuer in the market for the past decade. A number of risk management tools are used to manage and mitigate liquidity risk, including the following: – The Group’s Financial Risk Policy; – Regular assessment and reporting by the Group and business units of liquidity coverage ratios, which are calculated under both base case and stressed scenarios; – The Group’s Liquidity Risk Management Plan; – The Group’s Collateral Management Standard; – The Group’s contingency plans and identified sources of liquidity; – The Group’s ability to access the money and debt capital markets; – The Group’s access to external committed credit facilities; and – The Group Crisis Management Procedure.


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Risk description		Risk management
Credit risk
(Audited) Invested credit risk is the potential for loss resulting from a borrower’s failure to meet its contractual debt obligation(s) and arises from investments in debt instruments. Volatility in credit spreads can signal deteriorations in credit quality even though credit selection remains conservative and selective with the intention to hold to maturity. Counterparty risk, a type of credit risk, is the potential loss resulting from a counterparty that defaults on its contractual obligation(s) through financial transactions such as reinsurance arrangements, derivative contracts with third parties, and its cash deposits with banks. Invested credit and counterparty risks are considered material risks for the Group’s business units. The total debt securities at 31 December 2025 held by the Group’s operations were $92 billion (31 December 2024: $73.8 billion). The majority (85 per cent, 31 December 2024: 84 per cent) of the portfolio are investments either held in unit-linked funds or that support insurance products where policyholders participate in the returns of a specified pool of investments ¹. The gains or losses on these investments will largely be offset by movements in policyholder liabilities². The remaining 15 per cent (31 December 2024: 16 per cent) of the debt portfolio (the ‘shareholder debt portfolio’) are investments where gains and losses broadly impact the income statement, albeit short-term market fluctuations are recorded outside of adjusted operating profit. – Group sovereign debt: Prudential invests in bonds issued by national governments. This sovereign debt holding within the shareholder debt portfolio represented 59 per cent or $8.2 billion³ of the total shareholder debt portfolio as at 31 December 2025 (31 December 2024: 54 per cent or $6.3 billion). The particular risks associated with holding sovereign debt are detailed further in the disclosures in the Risk factors. The total exposures held by the Group in sovereign debt securities at 31 December 2025 are given in note C1 of the Group’s IFRS financial statements. – Corporate debt portfolio⁶: In the shareholder debt portfolio, corporate debt exposures totalled $4.9 billion of which $4.6 billion or 95 per cent were investment grade rated (31 December 2024: $4.9 billion of which $4.5 billion or 93 per cent were investment grade rated). – Financial sector debt exposure and counterparty credit risk: The financial sector, especially banks, represents a material concentration in the Group’s corporate debt portfolio which largely reflects the composition of the fixed income markets across the regions in which Prudential is invested. As such, exposure to the financial sector, particularly banks, is a key part of its core investments, considered to be a material risk for the Group, as well as being important for the hedging and other activities undertaken to manage its various financial risks. At 31 December 2025: – 94 per cent of the Group’s shareholder portfolio (excluding all government and government-related debt) is investment grade rated⁴. In particular, 63 per cent of the portfolio is rated⁴ A- and above (or equivalent); and – The Group’s shareholder portfolio is well diversified: no individual sector⁵ makes up more than 15 per cent of the total portfolio (excluding the financial and sovereign sectors).		The Group’s holdings across its life portfolios are high-quality investments in the domestic markets in which we operate or USD- denominated investments. These portfolios therefore include a mix of sovereign debt investments and a diverse set of high-quality names, including those with either government or considerable parent company balance sheet support. Any impacts to global rates are therefore key areas of monitoring focus for the Group. The impacts of macroeconomic risks surrounding the tariffs imposed by the US are being closely monitored, including the potential for deterioration in the credit quality of the Group’s invested credit exposures, particularly due to rising funding costs and overall credit risks, and the extent of downward pressure on the fair value of the Group’s portfolios during adverse market conditions. The Group’s portfolio is generally well diversified in relation to individual issuers and companies particularly in local markets where depth (and therefore the liquidity of such investments) may be low. Acknowledging that downgrade or default risks can never be eliminated, the Group has appetite to accept credit risk to the extent that it remains part of a balanced portfolio of sources of income for shareholders and is compatible with a robust solvency position. This risk is further detailed in sections 1.4 and 1.5 of the Risk factors. The Group actively reviews its investment portfolio to maintain the robustness and resilience of the solvency position. A number of risk management tools are used to manage and mitigate credit and counterparty credit risk, including the following: – The Group’s Financial Risk Policy; – The Global Counterparty Limit Framework, concentration limits on large names and limits on portfolio-level credit quality; – Collateral arrangements for derivative, secured lending reverse repurchase and reinsurance transactions which aim to provide a high level of credit protection; and – The Risk Committee and Group Investment Committee’s oversight of credit and counterparty credit risk and sector and/or name- specific reviews. Counterparty risk exposures, arising from cash, derivatives and reinsurance activities, are managed using an array of risk management tools, including a comprehensive system of rating-based limits, a focus on prioritising investment grade banks and implementing collateral arrangements as much as possible. Regarding reinsurance, the Group uses reinsurers, rated A- or above where feasible, with collateral taken to support the reinsurance exposure where appropriate. Where necessary, Prudential mitigates the level of its counterparty credit risk by reducing its exposure, or seeking alternative instruments.


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Risk review continued


	Risks from the nature of our business and our industry

	These include the Group’s non-financial risks such as operational processes, change delivery, third-party and outsourcing, customer conduct, regulatory compliance and legal, model, financial crime, and business continuity risks. With our increasing reliance on technology, data and cyber security risks remain areas of focus. Insurance risks and business concentration risks are also assumed by the Group in providing its products. Furthermore, there are risks associated with the oversight of the Group’s joint ventures and associates stemming from our operation in certain markets.


Risk description		Risk management
Non-financial risks
The complexity of Prudential, its activities and the extent of its transformation efforts from time to time creates a challenging operating environment and exposure to a variety of non-financial risks which are considered to be material at a Group level. The Group does not actively seek to take non-financial risks. Instead, it operates a control environment and framework for good governance intended to prevent material losses or other negative impacts. The Group’s non-financial risks, which are not exhaustive and discussed further in section 2 of the Risk factors, are outlined below.		Alongside the Non-Financial Risk Appetite Framework, associated risk policies and standards are in place that individually engage with specific non-financial risks which include subject matter expert-led processes that are designed to help identify, assess, manage and control these risks, including: – Reviews of key non-financial risks and challenges within Group and business units' business plans during the annual planning cycle, to support business decisions; – Corporate insurance programmes to limit the financial impact of operational risks; – Risk management across the change delivery lifecycle of major initiatives, such as prioritisation, execution planning, and the management of risks, issues, and interdependencies during the delivery of the Group’s change portfolio and activities; – Screening and transaction monitoring systems for financial crime and a programme of compliance control monitoring reviews and regular risk assessments; – Internal and external reviews of cyber security capability and defences; – Regular updating and risk-based testing of crisis management, business continuity and disaster recovery plans; – Established processes to deliver the highest quality of service to fulfil customers’ needs and expectations; and – Active engagement in managing compliance obligations and monitoring regulatory developments and supervisory focus areas.
Operational processes risk Operational processes risk is the risk of failure to adequately or accurately process different types of operational transactions, including customer/policy servicing , asset and investment management operations, finance operations and the operational provision of compensation to our distribution channels. Due to human error, among other reasons, operational incidents do occur from time to time and no system or process can entirely prevent their occurrence. Apart from the financial impacts of inaccurate processing, other impacts may include regulatory penalties, reputational damage and resources spent to amend the errors.		The Group Operational Resilience Policy outlines the Group’s requirements for managing operational resilience including business continuity, disaster recovery, and crisis management risks that the Group is exposed to. See details in the ‘Business Continuity Risk’ section below. The Group aims to manage the risk effectively by maintaining operational resilience and honouring commitments to customers and other stakeholders. The aim of the Group Approval Committee Request Policy is to establish a robust governance process and a delegated authority framework for the approval of all significant expenditures, projects and initiatives undertaken within the Group that are funded by shareholders’ resources. Further detail on the risks to the Group arising from system issues or control gaps is included in sections 2.1 and 2.3 in the Risk factors.
Change delivery risk Change delivery risk is driven by the concurrent implementation of multiple complex initiatives across the organisation. Failure to deliver these initiatives and benefits within defined timelines, scope, and cost, with an engaged and appropriately skilled workforce, may negatively impact the Group, ranging from its operational capability, control environment, reputation, delivery of business strategies, shareholder value, and market competitiveness. The transformation and change programmes may also introduce new or increase existing business risks and dependencies, which add management complexity. Further detail on the risks to the Group associated with large-scale transformation and complex strategic initiatives is included in section 2.1 of the Risk factors.		The Group aims to ensure that strong programme governance is in place with embedded risk practices to achieve ongoing and nimble risk oversight, with regular risk monitoring and reporting to risk committees. The Group’s Transformation Standards are in place to ensure appropriate governance and controls to mitigate risks. Governance forums are established to oversee the implementation and risk management of the key change delivery/transformation initiatives from various dimensions such as customer-centricity, strategic, financial, operational (including digital platforms) and risk management. In addition, Prudential is continuously enhancing strategic capabilities through internal talent development and talent acquisition. Developing a workforce that remains engaged through change and provides adequate resources for our people to manage change, connect, grow and succeed is one of the priorities for the company.


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Risk description		Risk management
Non-financial risks continued
Third-party management risk Third party management risk refers to the risk that third-party supply and outsourcing arrangements, including intra-group arrangements, fail, or provide inadequate service or act in a manner that is not aligned with Prudential’s values, policies, standards or in the interests of existing and potential customers, which could result in significant business interruptions, liability for losses and costs, reputational damage and regulatory breaches for Prudential. The Group is increasingly leveraging third parties to access core markets, achieve growth and drive process efficiency. The Group has a number of important third-party relationships, with market counterparties and outsourcing partners, including distribution, technology and ecosystem providers. In addition to intra-group arrangements, the Group also maintains material strategic partnerships and bancassurance arrangements, which create reliance on the operational resilience and performance of outsourcing and business partners. This risk is explored in more depth in section 2.3 of the Risk factors.		The Group Third-Party Supply and Outsourcing Policy outlines the Group’s requirements for managing third-party risk, which includes material outsourcing arrangements, that is aligned to the Hong Kong IA’s GWS Framework. In addition, the Group Third-Party Risk Oversight Policy is embedded within business units who are responsible for overseeing its implementation, with compliance achieved through a comprehensive programme that includes risk assessment, risk-based assurance, internal audit and monitoring activities. These measures collectively ensure that appropriate contract performance and risk management measures are in place to manage the risk of third-party failures that breach risk appetite and satisfy regulatory expectations.
Technology, data and cyber security risks Risks related to malicious attacks on Prudential systems or third-parties, service disruption, distributed denial of services (DDoS) attacks, exfiltration of data, loss of data integrity and the impact on the privacy of our data remain prevalent, owing to the accessibility of malicious tools available to potential adversaries, and increasing advancement of technology such as generative AI and other artificial intelligence methods. Regulatory expectations of cyber security and data protection controls are becoming increasingly complex as the Group continues to develop and expand digital services and products. Reliance on third-party service providers and business partners is also increasing. Further details on the risks to the Group associated with operating in high-risk markets is included in sections 2.4 and 2.5 of the Risk factors.		Consistent with the system of governance set out in section 2 above, Prudential follows a ‘three lines’ model for managing technology- related risks, with a resiliency enhancement programme in progress to further strengthen our capabilities in managing disruptions or failures on system platforms serving our customers. Group Technology, the first line, is primarily responsible for risk identification, assessment, mitigation, monitoring and reporting. Group Technology Risk Management, the second line, provides advisory, assurance and oversight of the risk domains. A number of risk management tools are in place including: key risk indicators covering key technology risk areas; annual risk assessment to identify specific risks, priorities and focus areas; and deep-dive reviews on different technology domains to provide assurance of controls. In addition, the Group Technology Risk Committee, as a first-line committee, is responsible for overseeing the effectiveness of technology risk management across the Group, including information security and privacy. Any material risks identified are reported to the Risk Committee. The Group’s internal audit, the third line, provides independent assessment of control effectiveness and management awareness for both the first and second lines, with a comprehensive audit plan across all risk domains, including cyber security. Cyber and privacy risks are reported regularly to the Risk Committee by the Chief Technology Risk Officer. In addition, the Risk Committee and Audit Committee receive regular updates on technology and cyber security from senior leaders across the first and second lines, including the Head of Infrastructure and Security, the Head of Technology Risk Management, and the Chief Technology Risk Officer. Collectively, these leaders bring extensive experience in overseeing technology risk, resilience, and security across the Group. Further, the Group Executive Committee (GEC) participates in annual cyber tabletop exercises and risk workshops to ensure members are well equipped to respond to a cyber or information security incident and fully understand the latest threats and regulatory expectations. In addition, a strong cybersecurity culture is also promoted across the Group through mandatory annual information security and privacy training for all employees, complemented by regular phishing simulation exercises and periodic cyber incident response drills to reinforce cyber risk awareness. The Group’s Global Integrated Command Centre has also been set up to provide Group-wide monitoring, detection and incident management capabilities.


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Risk review continued


Risk description		Risk management
Non-financial risks continued
Technology, data and cyber security risks continued		The Group has developed data minimisation and ‘privacy-by-design’ principles, where data should only be collected and used for its intended purpose and is not retained longer than necessary. The handling of sensitive data is governed by policies such as the Group Information Security Policy, the Group Privacy Policy, and the Group Data Governance Policy, each aligned to applicable laws and regulations. These policies, together with our third-party risk management practices, aim to ensure privacy and system availability are maintained for Prudential and its third-party service providers. AI advancements are shaping the present and future of the insurance industry. Our goal is to remain at the forefront by providing services that are technologically advanced, secure, ethically sound, and socially responsible. With our customers at the core of our operations, we apply our AI Ethics Principles in everything we do. These principles apply to both our own and third-party solutions, ensuring that every AI system and innovation is thoroughly evaluated via appropriate governance channels for ethical considerations and that associated risks are well managed. An oversight forum for the use of AI is also in place to ensure compliance with the AI Ethics Principles adopted by the Group with the aim to ensure the safe use of AI. Employees are also regularly reminded of the paramount importance of these AI ethics across all markets, while we engage in ongoing dialogues and cooperative initiatives with our regulators. Prudential’s AI governance and ethics principles are available at https://www.prudentialplc.com/en/site-services/ai- statement We continue to observe a rise in malware and ransomware threats and the Group continues to maintain and, where appropriate, enhance defences to protect its systems from cyber security attacks. Prudential has adopted a holistic risk management approach, designed to prevent and disrupt attacks against the Group and to aid recovery, should an attack occur. Other defences include but are not limited to: distributed denial of services (DDoS) protection for Group websites, AI-based endpoint security software, continuous security monitoring, network- based intrusion detection, and employee training and awareness campaigns. In addition, the Group recognises the evolving threat of AI-generated deepfakes and other sophisticated social engineering tactics targeting corporate activities. As part of our broader cyber resilience strategy, we continue to enhance awareness efforts, strengthen detective controls, and bolster incident response capabilities. While deepfake detection technologies are still maturing, the Group actively monitors advancements and collaborate with industry partners to assess and integrate emerging solutions as they become enterprise-ready. The Group tests the effectiveness of cyber security and privacy controls via a dedicated ‘red team’ to identify potential vulnerabilities, and engages and rotates external expert vendors to perform adversarial testing on our systems. In addition, we engage external consultants to assess and benchmark the maturity of Prudential’s cyber, information security and privacy controls. A private ‘Bug Bounty’ programme invites external security practitioners to identify and report security issues and vulnerabilities, supported by a Vulnerability Disclosure Programme that allows independent security researchers to report security issues and vulnerabilities via the Prudential websites. The Group has subscribed to services from independent security consultants to monitor our external security posture on an ongoing basis. Whilst the cyber threat landscape has continued to elevate due to ransomware and supply chain compromise events, the Group did not experience any cyber security and data breaches with a material impact on its business strategy, operations or financial condition in 2025.


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Risk description		Risk management
Non-financial risks continued
Customer conduct risk Prudential’s conduct of business, especially in the design and distribution of its products and the servicing of customers, is crucial in ensuring that the Group’s commitment to meeting its customers’ needs and expectations is fulfilled. The Group’s Customer Conduct Risk Framework reflects management’s focus on customer outcomes. Factors that may increase conduct risk can be found throughout the product life cycle, from the complexity of the Group’s products and services to its diverse distribution channels, which include its agency workforce, partnership distribution, virtual face-to-face sales, and sales via online digital platforms.		The Group has developed a Group Customer Conduct Risk Policy, which sets out five customer conduct standards that the business is expected to meet: – Treat customers fairly, honestly and with integrity; – Provide and promote products and services that meet customer needs, are clearly explained, and that deliver real value; – Manage customer information appropriately, and maintain the confidentiality of customer information; – Provide and promote high standards of customer service; and – Act fairly and promptly to address customer complaints and any errors found. Conduct risk is managed via a range of controls that are assessed through the Group-wide risk and control assessment programme and overseen within reporting to its boards and committees. Management of the Group’s conduct risk is key to the Group’s strategy. Prudential’s conduct risks are managed and mitigated using the following tools, among others: – The Group’s Code of Conduct and conduct standards, product risk and other related risk policies, and supporting controls including the Group’s financial crime risk control programme; – A culture that supports the fair treatment of the customer, incentivises the right behaviour through proper remuneration structures, and provides a safe environment to report conduct risk-related issues via the Group’s internal processes and the Speak Out programme; – Product controls, such as a product conduct risk assessment, which is a component of the product development process and helps identify and manage product-related conduct risks; – Distribution controls, including monitoring programmes relevant to the type of business (insurance or asset management), distribution channel (agency, bancassurance or digital) and ecosystem, to help ensure sales are conducted in a manner that considers the fair treatment of customers; – Quality of sales processes, services and training, and use of other initiatives such as special requirements for vulnerable customers, to improve customer outcomes; – Appropriate claims management and complaint-handling practices; – The monitoring and oversight of key conduct risk areas through the regular reporting of management information; and – Regular assurance review and periodic conduct risk assessments.


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Risk description		Risk management
Non-financial risks continued
Regulatory compliance and legal risk Prudential operates in highly regulated markets and under the ever-evolving requirements and expectations of diverse and dynamic regulatory, legal and tax regimes which may impact its business or the way the business is conducted. The complexity of legal and regulatory compliance continues to evolve and increase, representing a challenge for international businesses. Compliance with the Group’s legal or regulatory obligations (including in respect of international sanctions) in one jurisdiction may conflict with the law or policy objectives of another jurisdiction or may be seen as supporting the law or policy objectives of one jurisdiction over another, creating additional legal, regulatory compliance and reputational risks. These risks may be increased where the scope of regulatory requirements and obligations is uncertain, including where the interpretation and application of laws and regulations within the jurisdictions in which Prudential operates may be subject to change, and where specific cases applicable to the Group are complex. In certain jurisdictions in which Prudential operates, there are several ongoing policy initiatives and regulatory developments which will impact the way Prudential is supervised. Further information on specific areas of regulatory and supervisory focus and changes are included in section 4 of the Risk factors.		The Group monitors regulatory and legal developments at a market and global level and these considerations form part of the Group’s ongoing engagement with regulators or supervisors, government policy teams, and industry groups. Risk management and mitigation of regulatory and legal risk at Prudential includes a comprehensive set of compliance operating arrangements, such as policies, procedures, reporting protocols, risk management measures, disclosures, and training, to ensure ongoing compliance with regulatory and legal obligations. Appropriate controls or tools have been systematically integrated into the daily operations of Prudential: – Close monitoring and assessment of our business controls and regulatory landscape, with explicit compliance consideration of risk themes in strategic decisions, risk governance, customer protection, conduct and culture, technology, data, operations, financial crime, and cross-border activities; – Ongoing engagement with relevant regulators, government policy teams and international standard setters; and – Compliance oversight to ensure adherence to new regulatory developments, including those associated with emerging risk topics.
Model risk Model risk is the risk of adverse financial, regulatory, operational, or reputational impact, or misinformed business and strategic decision-making, arising from reliance on a model or user-developed application (UDA) that is inaccurate, incorrect or misused. The Group utilises various tools that form an integral part of operational activities, including the calculation of regulatory or internal capital requirements, the valuation of assets and liabilities, the determination of hedging requirements, and the assessment projects and strategic transactions. Technological developments, in particular in the field of AI and the increased use of generative AI, pose new considerations for model risk oversight provided under the Group Risk Framework.		The Group has no appetite for model or UDA-related incidents leading to regulatory breaches. There is limited appetite for failures to develop, implement and monitor appropriate risk mitigation measures to manage model and UDA risk. The Group’s model and UDA risk is managed and mitigated via the Model and UDA Risk Framework, which applies a risk-based approach to tools (including those under development) with the aim to ensure a proportionate level of risk management. The framework requirements include: – A set of risk oversight, management and governance requirements; – Regular risk assessment requirements of all tools taking into account potential impact on various stakeholders, including policyholders; and – Regular independent validation (including limitations, known errors and approximations) of all Group critical tools.
Financial crime risk As with all financial services firms, Prudential is exposed to risks relating to: money laundering (the risk that the products or services of the Group are used by customers or other third parties to transfer or conceal the proceeds of crime); sanctions compliance breaches (the risk that the Group undertakes business with individuals and entities on the lists of the main sanctions regimes); bribery and corruption (the risk that employees or associated persons seek to influence the behaviour of others to obtain an unfair advantage or receive improper benefits); and fraud (including the risk of fraudulent insurance claims or billing). The consequences of the Group’s criminal liability for failure to prevent financial crime and bribery include reputational damage (including market and financing issues, loss of confidence by business partners, and increased vulnerability to bribe solicitation and demands), financial costs and fines. Further detail on the risks to the Group associated with operating in high-risk markets is included in section 2.6 of the Risk factors.		The Group’s response to financial crime is aligned with applicable laws and regulations in the jurisdictions in which it operates. Group-wide policies covering anti-money laundering, sanctions, anti-bribery and corruption, and counter fraud are in place which reflect these requirements and are applicable to all staff. Local business units are responsible for overseeing implementation of policies and procedures and organising risk-based training and communications. Compliance is achieved through a programme of risk assessment, risk-based assurance, internal audit activity and monitoring. The Group continues to enhance its financial crime risk management capability through investment in advanced analytics and AI tools. These actions aim to strengthen prevention, increase detection and deliver enhanced oversight of financial crime risk. The Group has a formal and mature confidential reporting system in place for reporting and escalation of elevated risk, through which employees and other stakeholders can report concerns relating to potential misconduct. The process and results of this system are overseen by the Audit Committee.


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Risk description		Risk management
Non-financial risks continued
Business continuity risk Prudential is exposed to business continuity risk including potential environmental, technological, geopolitical and third- party-related threats or disruptions that could disrupt the company’s critical business services and operations.		The Group continually seeks to increase business resilience and anticipate emerging disruptive threats through forecasting, adaptation, planning, preparation and testing of contingency plans and the Group's ability to respond effectively to and operate through disruptive events. Operational resilience is at the core of the Group’s embedded Business Continuity Management (BCM) programme and framework that help to protect the Group’s systems, service delivery to customers, and its key stakeholders. Taking a proactive approach to anticipating disruption risk, the BCM programme covers risk assessments, business impact analyses, maintenance and testing of business continuity, crisis management and disaster recovery plans. The Group Crisis Management Procedure serves as a cross-functional response tool to limit the impact of any disruptive event and is regularly reviewed and tested. The consideration of impacts on customers is at the core of our resilience efforts, focusing on the delivery of critical business services.
Insurance risks
(Audited) Insurance risks make up a significant proportion of Prudential’s overall risk exposure. The profitability of the Group’s businesses depends on a mix of factors including levels of, and trends in, mortality (policyholders dying), morbidity (policyholders becoming ill or suffering an accident) and policyholder behaviour (variability in how customers interact with their policies, including utilisation of withdrawals, take-up of options and guarantees and persistency, ie lapsing/surrendering of policies), increases in the costs of claims over time (claim inflation), and changes in the regulatory environment. The risks associated with adverse experience relative to assumptions associated with product performance and customer behaviour are detailed in section 2.7 of the Risk factors. The Group has appetite for retaining insurance risks in the areas where it believes it has expertise and operational controls to manage the risk and where it judges it to be more value-creating to do so than to transfer the risk, but only to the extent that these risks remain part of a balanced portfolio of sources of income for shareholders and are compatible with a robust solvency position. Inflationary and other economic pressures also impact morbidity experience in several markets (see below). Elevated interest rates may lead customers to lapse in preference for alternate saving options that offer higher levels of guarantees. A high-inflation environment, and the broader uncertainty, may also increase lapses, surrenders and fraud, as well as heighten premium affordability challenges. The principal drivers of the Group’s insurance risk vary across its business units. In Hong Kong, Singapore, Indonesia and Malaysia, a significant volume of health and protection business is written, and the most significant insurance risks are medical claims inflation risk, morbidity risk and persistency risk.		The Group manages and mitigates insurance risks using the following, among other methods: – The Group’s Insurance Risk Policy, which sets out the required governance, standards, processes and controls for effective insurance risk management, notably through underwriting and claims practices; – The Group’s Product Risk Policy, which sets out the required governance, standards, processes and controls for effective product risk management and approvals for new, or changes to existing, products (including the role of the Group). The policy also describes how the Group’s Customer Conduct Risk Policy is met in relation to new product approvals and current and legacy products; – The Group’s Financial Crime Policy (see the 'Financial crime risk' section above); – Using persistency, mortality, morbidity and longevity assumptions that reflect recent experience and expectation of future trends, and the use of industry data and expert judgement where appropriate; – Using reinsurance to mitigate, manage and diversify mortality and morbidity risks, and as inputs into assumption setting; – Ensuring appropriate underwriting to determine which policies are issued, and appropriate claims management practices (including the Fraud, Waste and Abuse Framework) to adjudicate claims fairly and accurately whilst mitigating mortality and morbidity risks; – Using product repricing and other claims management initiatives in order to mitigate morbidity and medical claims inflation risk; – Maintaining the quality of sales processes and training, and using initiatives to increase customer retention in order to mitigate persistency risk; and – Monitoring, oversight and escalation of experience as it emerges.


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Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Risk review continued


Risk description		Risk management
Insurance risks continued
Medical claims inflation risk A key assumption when setting and reviewing health insurance premiums is the rate of medical claims inflation, which is often in excess of general price inflation. The cost of medical treatment could increase more than expected, resulting in higher than anticipated medical claims cost passed on to Prudential. There may also be constraints on our ability to pass the medical claims inflation impact onto customers via increased health insurance premiums due to market, regulatory, societal or other constraints.		The Group’s primary management of this risk is by retaining the right to reprice products and appropriate overall claims limits within policies, either per type of medical treatment or in total across a policy, annually and/or over the policy lifetime. Regular repricing is one of the measures we adopt to maintain clear customer expectations of the nature of these products and the associated medical claims inflation. This risk is further managed through a range of activities and mitigants, including end-to-end analytics identifying fraud, waste or abuse, tariff and discount negotiations with hospital and other medical providers, robust claim adjudication rules and processes, product innovation, and proactive collaboration with regulators to balance health insurance profit sustainability and premium affordability considerations.
Morbidity risk Morbidity risk is the risk of deviations in the future frequency and magnitude of non-fatal accident and sickness claims relative to initial assumptions that are adverse to shareholder value. It can be influenced by a range of factors including: inflationary, economic and other pressures on the cost of medical treatment; medical advances which can reduce the incidence and improve recovery rates of serious health conditions but can also increase diagnosis rates and/ or increase or prolong treatment costs of certain conditions; government and regulatory policies; opportunistic activities (including fraud); and natural events (including pandemics). Morbidity risk can also result from: product design features that incentivise adverse policyholder behaviour; inappropriate or insufficiently informed initial assumptions; claims volatility due to random fluctuation or a large-scale systemic event; insufficient recognition of an individual’s medical, financial and/or and other relevant circumstances during the policy application assessment process; and/or ineffective claims assessments leading to payment of claims that are inconsistent with the insurance product’s contract and/or best practice.		The Group manages morbidity risk through prudent product design, use of reinsurance, underwriting and claims management, oversight and escalation of experience as it emerges and, for certain products, the right to reprice where appropriate. Prudential’s morbidity assumptions reflect its recent experience, inputs from reinsurers who have industry-level experience, and expectation of future trends for each relevant line of business.
Persistency risk Persistency risk results from adverse changes in policy surrenders, paid- ups and non-forfeiture, and other policy discontinuances and policy alterations (including a medical reimbursement downgrade where the policyholder reduces the level of the coverage/protection in order to reduce premium payments). In general, adverse persistency experience results in deterioration of profits and shareholder value and can be an indicator of inadequate sales quality controls, and can elevate conduct, reputational and regulatory risks. Persistency risk generally stems from misalignment between customer needs and purchased product as a result of product collaterals and/or sales process gaps, operational barriers to premium renewal payment, insufficient post-sale communication and engagement with the customer leading to a deterioration of appreciation of the value of their policy, and/or changes in policyholder circumstances resulting from external drivers.		The Group manages persistency risk by appropriate controls across the product life cycle. These include: review of and revisions to product design and incentive structures where required; ensuring appropriate salesforce training and sales processes, including those ensuring active customer engagement and high service quality; appropriate customer disclosures and product collaterals; use of customer retention initiatives; and post-sale management through regular experience monitoring. Strong risk management and mitigation of conduct risk and the identification of common characteristics of business with high lapse rates is also crucial. Where appropriate, allowance is made for the relationship (either assumed or observed historically) between persistency and investment returns. Modelling this dynamic policyholder behaviour is particularly important when assessing the likely take-up rate of options embedded within certain products. Lapse experience following any repricing, including a medical reimbursement downgrade, is also monitored.


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Risk description		Risk management
Business concentration risk
Prudential operates in markets in both Asia and Africa via various channels and product mix; although largely diversified at the Group level, several of these markets are exposed to certain levels of concentration risk. From a channel concentration perspective, some of the Group’s key markets rely more on agency and some markets rely more on bancassurance. From a product concentration perspective, some of the Group’s markets focus heavily on specific product types, depending on the target customer segments. Geographically, the Greater China (Hong Kong, Mainland China and Taiwan) region contributes materially to the Group’s top and bottom lines. Uncertainties in macroeconomic and geopolitical conditions as well as regulatory changes may impact the levels of business concentration, including any changes in business from Mainland China visitors to Hong Kong as well as the domestic business in Mainland China, and adversely impact the Group’s business performance and financial condition.		To improve business resilience, the Group continues to look for opportunities to enhance business diversification in products, distribution channels and geographical markets, by building multi- market growth engines as part of its strategy.
Risks associated with the oversight of the Group’s joint ventures and associates
Prudential operates, and in certain markets is required by local regulation to operate, through joint ventures and other joint ownership or associates. For such operations, the level of control exercisable by the Group depends on the terms of the contractual agreements between participants. Whilst the joint ventures and associates are run as separate entities, the Group’s interests are best safeguarded by our ability to effectively oversee and influence these joint ventures and associates in a way that is proportionate to our ownership level and control. Further information on the risks to the Group associated with its joint ventures and other shareholders and third parties are included in section 2.6 of the Risk factors.		The Group exercises primary oversight and control over joint ventures and associates through our nominated directors and other representatives on the Board and Board Committees, whose appointments are subject to regular review. The Group has effective access to management information on these businesses via the Board and Board Committees, the businesses’ public disclosures, and established regular touchpoints with key business functions of these organisations (eg audit). Key updates on joint ventures and associates are provided to the Group’s governance such as the Risk Committee and the Audit Committee. The Group has a Joint Venture Oversight Framework in place outlining the Group’s oversight of the joint ventures over which it does not exercise management control. The Group also regularly reviews its governance frameworks and policies to ensure optimal oversight over joint ventures and associates.


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Risk review continued


	The Group’s sustainability-related (including ESG and climate-related) risks

	Sustainability-related risks refer to (a) environmental, social or governance issues, trends or events that could have a financial or non-financial impact on the Group, and/or (b) the Group’s sustainability-focused activities, strategy and commitments that could have an external impact on the environment and wider society in which the Group operates.


Risk description		Risk management
Sustainability-related (including ESG and climate-related) risks
Sustainability-related risk refers to material and emerging risks associated with key sustainability themes that may undermine the long-term success of the Group business by adversely impacting: (i) its financial performance, operational resilience and sustainability credentials; (ii) its reputation and brand; and (iii) its ability to attract and retain customers, investors, employees and distribution and other business partners. These may therefore impact the results of its operations and delivery of its business strategy and long-term financial success. Sustainability-related risks arise from the activities that support implementation of the Group’s sustainability strategy, which is centred on three key pillars (providing simple and accessible health and financial protection, responsible investment and creating a sustainable business) and may increase the expectations of the Group’s stakeholders with regard to the Group’s potential external environmental and social impact within the markets in which the Group operates. Whilst some material sustainability themes are reflected in the risk taxonomy as standalone risks, the risks associated with most sustainability topics are generally treated as thematic cross-cutting risks (eg climate-related physical and transition risks, greenwashing risk). These are risk themes that can have significant interdependencies with and influence on, and can potentially amplify, the established risks.		As custodians of stakeholder value for the long term, the Group seeks to manage sustainability-related risks and their potential impact on its business and stakeholders through transparent and consistent implementation of its strategy in its markets and across operational, underwriting and investment activities. It is enabled by strong internal governance, sound business practices and a responsible investment approach, with sustainability-related considerations integrated into investment processes and decisions, and the performance of fiduciary and stewardship duties, including via voting and active engagement decisions with respect to investee companies, as both an asset owner and an asset manager. Priorities for the Group in 2025 remained the same, including the enhancement of governance and controls around sustainability- related topics and external disclosures, incorporating sustainability goals for all people managers, internal knowledge sharing and capacity-building, the implementation of frameworks and governance for transition finance investments, the preparation for adoption of the Hong Kong Stock Exchange and Singapore Exchange’s climate disclosure requirements, and continued progress towards the Group’s external climate-related commitments. Further information on the Group’s sustainability governance, business practices and strategy, as well as the management of material sustainability themes, is included in the Group’s 2025 Sustainability Report. The Group participates in networks, industry forums and working groups, such as the Principles for Responsible Investment (PRI), to further develop, understanding and support action in relation to managing sustainability risks and promoting a just and inclusive transition, which the Group considers are consistent with its fiduciary responsibilities. The Group also actively engages with, responds and contributes to, discussions, consultations and information-gathering exercises with local regulators, international supervisory bodies and global industry standard setters. Collectively, these activities enable the Group to better identify material sustainability-related risks, and potential opportunities toward addressing them.


	73 Prudential plc Annual Report 2025


Risk description		Risk management
Sustainability-related (including ESG and climate-related) risks continued
Potential regulatory compliance and litigation risks remained significant globally and across Asia in 2025, as sustainability- related topics remained high on the agenda of both local regulators, major exchanges and international supervisory bodies. These include the Hong Kong Stock Exchange and Singapore Exchange, both of which began implementing mandatory climate disclosure requirements in 2025; the UK Financial Conduct Authority, which is consulting on the implementation of similar disclosure requirements; the International Association of Insurance Supervisors (IAIS); as well as the European Commission, the European Securities and Market Authority, the Monetary Authority of Singapore which have strengthened rules on the use of sustainability and ESG nomenclature in the labelling of investment products. Delivery of the Group’s Sustainability Strategy, including the decarbonisation commitments and the development of sustainable and inclusive offerings, heightens the risk of accusations of misleading or unsubstantiated representations to the extent of the environmental or societal impact of the Group’s activities and the sustainability features of new products (eg greenwashing), which subsequently increases the risk of potential litigation, regulatory action or reputational damage. Evolving and diverging approaches to sustainability efforts in various jurisdictions also create challenges in addressing conflicting requirements and expectations. Further details of the Group’s sustainability-related risks and legal and regulatory compliance risks are included in sections 3.1 and 4.1 of the Risk factors.		The Group Risk Framework continues to be critically evaluated and updated where required to ensure both sustainability-related considerations and risks to the Group, including those arising from stakeholder expectations of the external impact of the Group’s activities, are appropriately identified, assessed, monitored and managed. Consideration is given to a number of risk characteristics which sustainability-related risks may exhibit, but which are not generally recognised in more traditional risk management practices. These characteristics are reflected in the materiality assessment of sustainability-related risk themes, the decision on how to treat the risks associated with the themes, and the assessment and enhancement of existing controls or development of new controls where necessary. Risk management and mitigation of sustainability risks continues to be embedded across the Group and risk processes, including: – Recognition within the emerging risk identification and evaluation processes that emerging sustainability themes and the associated risks can potentially quickly change from immaterial to material (dynamic materiality); – Advancement in assessment of both physical and transition risks across the Group’s operations and investments, including evaluation of a new tool to assess climate risks on investments, conducting updated assessments of climate-related impacts on operations, and completing an internal assessment of climate‑related impacts on insurance risks; – Workshops and ongoing function-wide training on specific risk themes, including sustainability risk principles, greenwashing risk and the risks associated with delivery of the Group’s external responsible investment commitments; – The definition of appropriate (and longer) time horizons, including with respect to climate risk management, and adding the requirement to consider appropriate time horizons in risk-based decision-making; – Proactive identification, monitoring and assessment of emerging sustainability regulations and policy developments at both global and local levels through horizon scanning; – Continued enhancement of existing frameworks, policies, processes and standards as necessary to mitigate amplified risks and meet regulatory requirements, particularly those associated with product labelling and disclosures; and – Deep dives into emerging and increasingly material sustainability themes, including climate-related risks, and development of Board- level and broader Group-wide training.


	74 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Viability statement

Viability statement prepared in accordance

with provision 31 of the UK Corporate

Governance Code

The Group’s longer-term prospects

Prudential’s mission is to be the most trusted partner and protector

for this generation and generations to come by providing simple and

accessible financial and health solutions. As such, Prudential considers

that its purpose aligns closely with important societal needs, including

increasing access to health and financial protection. Prudential is

focused on driving value creation for all stakeholders in the markets

we operate in, and long-term value for our shareholders.

The drivers for this structural growth in the markets in which we

operate, including favourable demographics, low levels of insurance

cover, a large health protection gap and forecast growth in insurance

premiums ahead of the rest of the world, are discussed on pages 14

to 17, alongside the consistent progress we have made in the

execution of our strategy. In undertaking these activities, we aim both

to meet the evolving needs of our customers and provide ongoing

growth for our shareholders, which will support the viability of our

business over the longer term.

During 2025, we have continued to execute our strategy and deliver

consistent growth. This growth has been broad based, demonstrating

the resilience of our position across diversified distribution channels

and markets that have attractive demographic and growth profiles.

Over the longer term, we believe that our market position, trusted

household brand, balanced and scaled distribution channels and

integration of life and asset management capabilities will support

continued growth in demand for our products in line with the

structural growth in our chosen markets.

All of the Group’s activities are underpinned by ongoing risk

management, implemented via the Group Risk Framework and risk

appetite limits described in the Group risk review on pages 56 to 58.

The Group as a whole and each of its life assurance operations are

subject to extensive regulation and supervision, which are designed

primarily to reinforce the Group’s management of its long-term

solvency, liquidity and viability to ensure that it can continue to meet

obligations to policyholders. Further details on the current capital

strength of the Group are provided on pages 377 to 380.

The Group’s management of wider risks to its sustainability objectives

that could pose a threat to the Group in the future, including the

impact of climate change, is set out in the Sustainability section on

pages 98 to 151.

This risk and regulatory focus supports the sustainability of our

business over the longer term.

Period of viability assessment

The Directors have assessed the viability of the Group for a period

longer than the 12 months required by the going concern statement.

The Directors performed the assessment by reference to the three-

year plan period to 31 December 2028. Three years is considered an

appropriate period as this is the period over which the Group

undertakes stress testing for the key economic and insurance risk

factors which most directly affect the viability of the Group. A period

of three years is selected as these forecasts are inherently volatile over

a longer estimation period. This period also represents the period

covered by the detailed business plan that is prepared annually on a

rolling three-year basis. In approving the business plan, the Directors

reviewed the Group’s projected performance with regard to

profitability, cash generation and capital position, together with the

parent company’s liquidity over this three-year period. Assumptions

applied in the plan include foreign exchange rates, interest rates,

credit spreads, equity growth rates and economic growth rates. The

Directors are satisfied that this period is sufficient to enable a

reasonable assessment of viability to be made.

Assessment of principal risks over the period

The Group’s business plan implements the Group’s strategic

objectives through the pillars and business model discussed on pages

28 to 31. Assessment of the risks to achieving the projected

performance remains an integral part of the planning process. The

Group’s approach to risk management and a summary of the key

risks facing the Group are set out on pages 56 to 73.

For the purposes of assessing the Group’s viability, the Directors

considered those risks where the impact of possible adverse external

developments could be of such speed and severity as to present a

shock to the Group’s financial position. While all the risks set out in

the Risk review have the potential to impact the Group’s

performance, the key risks impacting the Group’s viability are: market

risk, credit risk, liquidity risk and regulatory risk. The Directors also

considered geopolitical and technology risk and the potential impact

of the macroeconomic environment in the markets in which the

Group operates. Mitigation in place for these key risks to viability is set

out on pages 60 to 63 and 66 to 68.


	75 Prudential plc Annual Report 2025

Stress and scenario testing

As noted above, underpinning the projections in the business plan are a number of economic and other assumptions. To evaluate the Group’s

resilience to significant deteriorations in market and credit conditions and other shock events, these risks are grouped together into scenarios

which are then applied to the assumptions underlying the business plans. Stresses have been applied to the economic and non-economic

assumptions underlying the base case business plan, reflecting the Group’s management of its position within its risk appetite. The stresses

applied to our economic plan and other assumptions in two adverse economic scenarios were as below:


	Interest rate stress ⁶	Equity stress⁶	Property stress	Corporate credit spread increase	Credit default/ downgrade	Adverse currency movement⁶	Adverse expense (unit cost)	Other stress
Global economic slowdown	(100)bps to +300bps	(20)% to (25)%	(15)%	+75bps	3 times base assumption	n/a	+10%	Adverse policyholder behaviour
Geopolitical risk scenario	+100bps to +500bps	(20)% to (25)%	(15)%	+75bps⁶	3 times base assumption	(10)%	+10%	Adverse policyholder behaviour

The sensitivity of the Group’s regulatory solvency at 31 December

2025 to changes in key assumptions is set out on pages 378 to 379

of this Annual Report. In addition, the adequacy of liquid resources of

the Group’s parent company across the plan period has been

assessed by considering a stress scenario assuming the closure of

short-term debt markets, as well as additional calls on central liquidity

by the local businesses. In this liquidity stress scenario, the Group

would have access to sufficient resources to meet the funding

requirements of the business, after taking into account the Group’s

undrawn committed liquidity facilities of $1.6 billion on top of central

cash and short-term investment balances, which as at 31 December

2025 were $4.3 billion.

The scenarios tested showed that the Group would be able to

maintain viability over the three-year period under assessment, after

taking account of the actions available to management to mitigate

the impacts on capital and liquidity in such scenarios. These actions

include, but are not limited to, expense management, increased use

of reinsurance and repricing of in-force benefits. In addition, the

Group conducts an annual reverse stress test, which gives the

Directors an understanding of the maximum resilience of the Group

to extremely severe adverse scenarios. The analysis assists in

identifying management actions that could be implemented to

restore the Group’s capital and liquidity resources from extreme

positions. This analysis also informs the Group’s recovery plan and

liquidity risk management plan.

The impact on the business of known areas of regulatory change

whose financial implications can be reasonably quantified is also

considered as part of the plan. As well as known areas of regulatory

change, the Group is exposed to the risk of sudden and unexpected

changes in regulatory requirements at the Group and local levels.

While unexpected changes cannot be fully anticipated and hence

modelled, the risk of regulatory change is mitigated by capital held by

the Group and its subsidiaries in excess of Group and local regulatory

requirements, the Group and its subsidiaries’ ability to generate

significant capital annually through operational delivery and the

availability of compensating actions designed to restore key capital

metrics.

Conclusion on viability

Based on this assessment, the Directors have a reasonable

expectation that the Group will be able to continue in operation and

meet its liabilities as they fall due over the three-year plan period to

December 2028.

Notes

(1) Reflecting products that are classified as variable fee approach only.

(2) With the exception of investments backing the shareholders' 10 per cent share of the estate within the Hong Kong participating fund.

(3) Excluding assets held to cover linked liabilities.

(4) Based on middle ranking from Standard & Poor's, Moody's and Fitch ratings, where available. Where ratings are not available from these rating agencies, local external

ratings agencies' ratings and, lastly, internal ratings have been used.

(5) Source of segmentation: Bloomberg Sector, Bloomberg Group and Merrill, a Bank of America company. Anything that cannot be identified from the three sources noted is

classified as other.

(6) Corporate debt comprises corporate bonds and asset-backed securities.


	76 Prudential plc Annual Report 2025


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Risk factors

A number of risk factors may affect the financial condition, results of operations and/or prospects of Prudential and its wholly- and jointly-owned

businesses, as a whole, and, accordingly, the trading price of Prudential’s shares. The risk factors mentioned below should not be regarded as a

complete, exhaustive and comprehensive statement of all potential risks and uncertainties. The information given is as of the date of this

document, and any forward-looking statements are made subject to the factors specified under ‘Forward-looking statements’.

1. Risks relating to Prudential’s financial condition

1.1

Prudential’s businesses are inherently subject to

market fluctuations and general economic conditions,

each of which may adversely affect the Group’s

business, financial condition, results of operations and

prospects.

Uncertainty, fluctuations or negative trends in global and national

macroeconomic conditions and investment climates could have a

material adverse effect on the Group’s business, financial condition,

results of operations and prospects, including as a result of increased

strategic, business, insurance, product and customer conduct risks, as

well as heightened volatility in financial markets, asset prices and

funding conditions.

The financial markets in which Prudential operates are subject to

uncertainty and volatility created by a variety of factors such as

actual or expected changes in both monetary and regulatory policies

in Mainland China, the US and other jurisdictions together with their

impact on base interest rates and the valuation of asset classes and

inflation expectations; slowdowns or reversals in world or regional

economic growth arising from geopolitical conflicts and/or global

issues such as pandemics, natural catastrophes, and sector-specific

(eg in banking, insurance, or real estate) slowdowns or deteriorations

which have the potential to result in widespread contagion impacts.

Other factors include fluctuations in global commodity and energy

prices, unemployment rates, aging demographics, social unrest,

concerns over the serviceability of sovereign debt in certain

economies, increased levels of geopolitical and political risk and

policy-related uncertainty, protectionism, trade policies, and

sociopolitical and climate-driven events.

The adverse effects of such factors could be felt principally through

the following items:

– Changes to interest rates could reduce Prudential’s capital strength

and impair its ability to write significant volumes of new business.

Increases in interest rates could adversely impact the financial

condition of the Group through changes in the present value of

future fees for unit-linked businesses and/or the present value of

future profits for accident and health products; and/or reduce the

value of the Group’s assets and/or have a negative impact on its

assets under management and profit. Decreases in interest rates

could: increase the potential adverse impact of product guarantees

included in non-unit-linked products with a savings component;

reduce investment returns on the Group’s portfolios; impact the

valuation of debt securities; and/or increase reinvestment risk for

some of the Group’s investments from accelerated prepayments

and increased redemptions. Rapid or volatile changes in interest

rates, rather than sustained directional movements alone, could

further increase hedging costs, basis risk and model risk.

– A reduction in the financial strength and flexibility of corporate

entities may result in a deterioration of the credit rating profile and

valuation of the Group’s invested credit portfolio (which may lead

to an increase in regulatory capital requirements for the Group or

its businesses), increased credit defaults and debt restructurings

and wider credit and liquidity spreads, leading to realised and

unrealised credit losses by the Group. Similarly, securitised assets in

the Group’s investment portfolio are subject to default risk and

may be adversely impacted by delays or failures of the underlying

borrowers to make payments of principal and interest when due.

– Failure of Prudential’s counterparties (such as banks, reinsurers and

counterparties to cash management and risk transfer or hedging

transactions) to meet commitments, or legal, regulatory or

reputational restrictions on the Group’s ability to deal with these

counterparties, could give rise to a negative impact on Prudential’s

financial position and on the accessibility or recoverability of

amounts due or the adequacy of collateral. Geographic or sector

concentrations of counterparty credit risk could exacerbate the

impact of these events where they materialise.

– Estimates of the value of financial instruments may become more

difficult in certain illiquid, volatile or closed markets, and

determining the value at which financial instruments can be

realised is highly subjective. Processes to ascertain such values

require substantial elements of judgement, assumptions and

estimates (which may change over time). Where the Group is

required to sell its investments within a defined time frame, such

market conditions may result in the sale of these investments at

below expected or recorded prices.

– The Group holds certain investments that may, by their nature, lack

liquidity or have the potential to lose liquidity rapidly, such as

investment funds (including money market funds), privately placed

fixed maturity securities, mortgage loans, complex structured

securities and alternative investments. If these investments were

required to be liquidated at short notice, the Group could

experience difficulty in doing so and could be forced to sell them at

a lower price than it otherwise would have been able to realise.

– Increased illiquidity driven by the uncertainty over the accessibility

of financial resources could adversely affect the Group’s ability to

meet policyholder benefit and expense obligations. This could

occur if capital resources are reduced as valuations decline under

extreme market conditions, external capital is unavailable at

sustainable cost, increased liquid assets are required to be held as

collateral under derivative transactions, or redemption restrictions

are placed on Prudential’s investments in illiquid funds. In addition,

significant redemption requests could also be made on Prudential’s

issued funds, and while this may not have a direct impact on the

Group’s liquidity, it could result in reputational damage to

Prudential. The potential impact of increased illiquidity is more

uncertain than for other risks such as interest rate or credit risk and

may be exacerbated during periods of market stress.

– A reduction in revenue from the Group’s products could occur

where fee income is linked to account values or the market value of

the funds under management. Sustained inflationary pressures


	77 Prudential plc Annual Report 2025

which may drive higher interest rates may also impact the

valuation of fixed income investments and reduce fee income.

– The transition, including where disorderly or fragmented, to a lower

carbon economy, the timing and speed of which is uncertain and

will vary by country, may also result in greater uncertainty,

fluctuations or negative trends in asset valuations and reduced

liquidity, particularly for carbon-intensive sectors, and may have a

bearing on inflation levels. The extent of the financial market and

1.2

Geopolitical and political risks and uncertainty may

adversely impact economic conditions, increase

market volatility and regulatory risks, cause

operational disruption to the Group and its businesses

and impact the implementation of its strategic plans,

which could have adverse effects on Prudential’s

business, financial condition, results of operations,

and prospects.

economic impact of these factors may be highly uncertain and

unpredictable and influenced by the actions, including the duration

and effectiveness of mitigating measures, taken by governments,

policymakers, institutions and the public. See risk factors 3.1 below.

For some non-unit-linked products with a savings component, it may

not be possible to hold assets which will provide cash flows to match

those relating to policyholder liabilities. This may particularly be the

case in jurisdictions where bond markets are less developed or where

the duration of policyholder liabilities is longer than the duration of

bonds issued and available, and in certain markets where regulated

premium and claim values are set with reference to the interest rate

environment prevailing at the time of policy issue. This results in a

mismatch due to the duration and uncertainty of the liability cash

flows and the lack of sufficient assets of a suitable duration. While

this residual asset/liability mismatch risk can be managed, it cannot

be eliminated. If interest rates in these markets are lower than those

used to calculate premium and claim values over a sustained period,

this could have a material adverse effect on Prudential’s reported

profit and the solvency of its business units. In addition, part of the

profit from the Group’s operations is related to bonuses for

policyholders declared on participating products, which are impacted

by the difference between actual investment returns of the

participating fund (which are broadly based on historical and current

rates of return on equity, real estate and fixed income securities) and

minimum guarantee rates offered to policyholders. This profit could

be lower, particularly in a sustained low interest rate environment.

Bonuses are shaped not only by the aforementioned conditions, but

also by local regulations in certain markets, which require the

management of participating funds to ensure a fair and equitable

allocation of distributable surplus or profits and alignment with

policyholders’ reasonable expectations. This interplay adds further

complexity to the effective management of these products and could

have a material adverse effect on Prudential’s results of operations

and prospects.

In general, upheavals in the financial markets may affect general

levels of economic activity, employment and customer behaviour. As

a result, insurers may experience an elevated incidence of claims,

fraud, lapses, partial withdrawals or surrenders of policies, and some

policyholders may choose to defer or stop paying insurance premiums

or reduce deposits into retirement plans. Uncertainty over livelihoods,

elevated cost of living and challenges in affordability may adversely

impact the demand for insurance products and increase regulatory

risk in meeting regulatory requirements and expectations with respect

to vulnerable customers (see risk factor 2.7). In addition, there may be

a higher incidence of counterparty failures. If sustained, this

environment is likely to have a negative impact on the insurance

sector over time and may consequently have a negative impact on

Prudential’s business, balance sheet and profitability. For example,

this could occur if the recoverable value of intangible assets for

bancassurance agreements is reduced. New challenges related to

market fluctuations and general economic conditions may continue

to emerge. For example, sustained inflationary pressures driving

interest rates to higher levels may lead to increased lapses for some

guaranteed savings products where higher levels of guarantees are

offered by products of the Group’s competitors, reflecting consumer

demand for returns at the level of, or exceeding, inflation. High

inflation, combined with an economic downturn or recession, may

also result in affordability challenges, adversely impacting the ability

of consumers to purchase insurance products. Rising inflation, via

medical claims inflation (with rising medical import prices a factor

under current market conditions), may adversely impact the

profitability of the Group’s businesses.

Any of the foregoing factors and events, individually or together,

could have a material adverse effect on Prudential’s business,

financial condition, results of operations and prospects.

The Group is exposed to geopolitical and political risks and uncertainty in

the diverse markets in which it operates. Such risks may include:

– The application of government regulations, executive powers,

sanctions, protectionist or restrictive economic and/or trade policies

(including tariffs and embargoes) and related measures such as

export controls, investment restrictions/screening and restrictions

on the provision of services, restrictions on product design and

repricing, or other measures adopted by governments, businesses

or industries which increase trade barriers or restrict trade, sales,

financial transactions, or the transfer of capital, investment, data

(including data localisation requirements) or other intellectual

property, with respect to specific territories, markets, companies or

individuals;

– An increase in the volume and pace of domestic regulatory

changes, including those applying to specific sectors or business

activities;

– The increased adoption or implementation of laws and regulations

which may purport to have extra-territorial application (including

the extraterritorial or secondary effects of sanction regimes or

other trade restrictions);

– An increase in military tensions, regional hostilities or new conflicts

which may disrupt business operations, investments, market

confidence and expectations and growth;

– Withdrawals or expulsions from existing trading blocs or

agreements or financial transaction systems, or fragmentation of

systems, including those which facilitate cross-border payments;

– The implementation of measures favouring local enterprises

including changes to the maximum level of non-domestic

ownership by foreign companies, differing treatment of foreign-

owned businesses under regulations and tax rules, or international

trade disputes affecting foreign companies;

– Increased costs due to government mandates or regulations

imposing a financial contribution to the government as a condition

for doing business;

– Uncertainty in the enforceability of legal obligations where their

interpretation may change or be subject to inconsistent or

conflicting interpretation and application across jurisdictions or

over time; and

– Measures which require businesses of overseas companies to

operate through locally incorporated entities or with local partners,

or with requirements for minimum local representation on

executive or management committees.

The above risks may have an adverse impact on Prudential through

their effects on the macroeconomic outlook and the environment for

global, regional and national financial markets. Prudential may also

face risks arising from economic sanctions imposed as a result of


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Risk factors continued

geopolitical conflicts and national security and economic decisions.

The above risks may adversely impact the economic, business, legal

and regulatory environment in specific markets or territories in which

the Group, its joint ventures or jointly owned businesses, sales and

1.4

Prudential’s investment portfolio is subject to the risk

of potential sovereign debt credit deterioration, which

could have a material adverse effect on Prudential’s

business, financial condition, results of operations and

prospects.

distribution networks, or third-party service providers have operations.

For internationally active groups such as Prudential, operating across

multiple jurisdictions, such measures may add to the complexity of

legal and regulatory compliance and increase the risk of conflicts

between the requirements of one jurisdiction and another and the

potential for increased compliance costs or restrictions on business

activities. See risk factors 4.1 and 4.3 below.

Geopolitical and political risks and uncertainty may adversely impact

the Group’s operations and its operational resilience. Increasing

geopolitical and political tensions may lead to conflict, civil unrest

and/or civil disobedience as well as increases in domestic and cross-

border cyber intrusion activity or other forms of hostile or malicious

activity. Such events could impact operational resilience by disrupting

Prudential’s IT systems, both software and hardware (including any

network, storage, applications, models and platform technologies),

operations, new business sales and renewals, distribution channels

and services to customers, which may result in a reduction in

contributions from business units to the central cash balances and

profit of the Group, decreased profitability, financial loss, adverse

customer impacts and reputational damage and could require the

diversion of management attention and resources.

Legislative or regulatory changes and geopolitical or political risks

which adversely impact the international trading and economic

relationships of Hong Kong, which is both a key market and the

location of Group head office functions, may result in adverse sales,

operational and product distribution impacts to the Group and could

impair the Group’s ability to coordinate regional or global operations

efficiently.

1.3

As a holding company, Prudential is dependent upon

its subsidiaries to cover operating expenses, dividend

payments and share buybacks. Any changes in the

financial condition of Prudential’s subsidiaries could

have an adverse effect on the Group's business,

financial condition, results of operations and

prospects.

The Group’s insurance and asset management operations are

generally conducted through direct and indirect subsidiaries, which

are subject to the risks discussed elsewhere in this ‘Risk factors’

section.

As a holding company, Prudential’s principal sources of funds are

remittances from subsidiaries, shareholder-backed funds, the

shareholder transfer from long-term funds and any amounts that

may be raised through the issuance of equity, debt and commercial

paper.

Prudential’s subsidiaries are generally subject to insurance, asset

management, foreign exchange and tax laws, rules and regulations

(including in relation to distributable profits that can limit their ability

to make remittances). In some circumstances, including where there

are changes to general market conditions, this could limit Prudential’s

ability to pay dividends to shareholders, to make available funds held

in certain subsidiaries to cover the operating expenses of other

members of the Group, or to execute business strategies such as share

buybacks.

A material change in the financial condition of any of Prudential’s

subsidiaries may have a material effect on the Group's business,

financial condition, results of operations and prospects.

Investing in sovereign debt creates exposure to the direct or indirect

consequences of geopolitical, political, social or economic changes

(including changes in governments, heads of state or monarchs),

military conflicts, regime change, pandemics and associated

disruption, and other events affecting the markets in which the issuers

of such debt are located and the creditworthiness of the sovereign.

Investment in sovereign debt obligations involves risks that are

different from investment in the debt obligations of corporate issuers.

In addition, the issuer of the debt or the governmental authorities

that control the repayment of the debt may be unable or unwilling to

repay principal or pay interest when due (or in the agreed currency) in

accordance with the terms of such debt, and Prudential may have

limited recourse to compel payment in the event of a default or

restructuring. A sovereign debtor’s willingness or ability to repay

principal and to pay interest in a timely manner may be affected by,

among other factors, its financial position, the extent and availability

of its foreign currency reserves, the availability of sufficient foreign

exchange on the date a payment is due, the relative size of the debt

service burden to the economy as a whole, the sovereign debtor’s

policy toward local and international lenders, geopolitical tensions

and conflicts and the political constraints to which the sovereign

debtor may be subject. Fiscal risks faced by sovereigns could increase

due to elevated levels of indebtedness and increasing demands on

government budgets stemming from rising social welfare costs,

defence expenditures and climate transition efforts.

Moreover, governments may use a variety of techniques, such as

intervention by their central banks or imposition of regulatory controls

or taxes, to devalue their currencies’ exchange rates, or may adopt

monetary, fiscal and other policies (including to manage their debt

burdens) that have a similar effect, all of which could adversely

impact the value of an investment in sovereign debt even in the

absence of a technical default. Periods of economic uncertainty may

affect the volatility of market prices of sovereign debt to a greater

extent than the volatility inherent in debt obligations of other types of

issuers and may reduce market liquidity of these debts.

In addition, if a sovereign default or other such events described

above were to occur, as has happened on certain occasions in the

past, other financial institutions may also suffer losses or experience

solvency or other concerns, which may result in Prudential facing

additional risks relating to investments in such financial institutions

that are held in the Group’s investment portfolio. There is also risk

that public perceptions about the stability and creditworthiness of

financial institutions and the financial sector generally might be

adversely affected, as might counterparty relationships between

financial institutions.

If a sovereign were to default on or restructure its obligations, or

adopt policies that devalued or otherwise altered the currencies in

which its obligations were denominated, this could have a material

adverse effect on Prudential’s business, financial condition, results of

operations and prospects.


	79 Prudential plc Annual Report 2025

1.5

Downgrades in Prudential’s financial strength and

credit ratings could significantly impact its competitive

position and damage its relationships with creditors or

trading counterparties.

Prudential’s financial strength and credit ratings, which are used by

the market to measure its ability to meet policyholder obligations, are

important factors affecting public confidence in Prudential’s

products, and, as a result, its competitiveness. Downgrades in

Prudential’s ratings as a result of, for example, decreased profitability,

a deteriorating solvency position, increased costs, increased

indebtedness or other concerns could have an adverse effect on its

ability to market products, retain current policyholders and attract

new policyholders, as well as the Group’s ability to compete for

acquisition and strategic opportunities. Downgrades could have an

adverse effect on the Group’s financial flexibility, including its ability

to issue commercial paper in a timely manner at acceptable levels

and pricing, if at all, the potential imposition of higher funding costs,

requirements to post collateral under or in connection with

transactions, and constraints on its ability to manage market risk

exposures. The interest rates at which Prudential is able to borrow

funds are affected by its credit ratings, which are in place to measure

the Group’s ability to meet its contractual obligations.

In addition, changes in methodologies and criteria used by rating

agencies could result in downgrades that do not reflect changes in the

general economic conditions or Prudential’s financial condition or

operating performance.

Any such downgrades could have a material adverse effect on

Prudential’s business, financial condition, results of operations and

prospects. Prudential cannot predict what actions rating agencies may

take, or what actions Prudential may take in response to any such

actions, which could also adversely affect its business and prospects.

1.6

Prudential is subject to the risk of exchange rate

fluctuations owing to the geographical diversity of its

businesses.

Prudential’s operations generally write policies and invest in assets

denominated in local currencies, but in some markets Prudential also

writes policies and invests in assets denominated in non-local

currencies, primarily in the US dollar. Although this practice limits the

effect of exchange rate fluctuations on local operating results, it can

lead to fluctuations in Prudential’s consolidated financial statements

upon the translation of results into the Group’s presentation currency.

This exposure is not separately managed at the Group level. The

Group presents its consolidated financial statements in the US dollar.

The results of some entities within the Group are not denominated in

or linked to the US dollar and some enter into transactions which are

conducted in non-US-dollar currencies. Prudential is subject to the risk

of exchange rate fluctuations from the translation of the results of

these entities and non-US-dollar transactions, including the risks from

the maintenance of the HK dollar peg to the US dollar. In cases where

a non-US-dollar-denominated surplus arises in an operation which is

to be used to support Group capital or shareholders’ interest (ie

remittances), this currency exposure may be hedged where

considered economically favourable. Prudential is also subject to

residual risks arising from currency swaps and other derivatives that

are used to manage such currency exposure. In addition, there may

be second-order effects arising from changes in policyholder behavior

if policies denominated in a foreign currency (eg US dollar) are

deemed unattractive, which could lead to higher surrender outgo and

unfavourable shifts in new business sales.

2 Risks relating to Prudential’s business activities and industry

2.1

The implementation of large-scale transformation,

including complex strategic initiatives, gives rise to

significant design and execution risks and may affect

Prudential’s operational capability and capacity.

Failure of these initiatives to meet their objectives

may adversely impact the Group and the delivery of

its strategy.

Prudential undertakes operating model changes, corporate

restructurings, transformation programmes and acquisitions or

disposals to support its business strategy, enhance customer

experience, strengthen operational resilience, meet regulatory and

industry requirements, and maintain competitiveness. These

initiatives are often large‑scale, complex and interconnected, aiming

to drive efficiency, enhance digital capabilities, and expand strategic

partnerships across multiple business functions and markets. While

there can be no assurance of the successful completion or realisation

of the intended benefits, if at all, of these initiatives, unplanned costs,

implementation delays or failure to deliver intended outcomes could

adversely affect Prudential’s business, employees, customers,

financial condition, results of operations or prospects and could result

in the diversion of management attention and resources. Leadership

changes and shifts in business or operating models may also create

uncertainty for employees and place additional strain on operational

capacity and change‑management practices and could adversely

affect employee engagement, retention and productivity. Initiatives

undertaken to execute the Group’s strategy, enhance the control

environment, adopt significant accounting standard changes and/or

respond to regulatory developments may further amplify these risks.

Risks relating to these regulatory changes are described in risk factor

4.1 below.

The rapid pace of technological advancement presents both

opportunities and risks for the Group’s transformation journey.

Prudential’s exploration and implementation of innovative

technologies, particularly artificial intelligence (AI), to enhance

operational efficiency, decision-making, and strategic agility, exposes

Prudential to challenges or failures in adopting innovative

technologies, such as failure to systematically, prudently and/or

effectively implement AI, and may put Prudential at risk of losing

competitive advantage, as well as exposure to additional regulatory,

information security, privacy, operational, ethical and conduct risks.

High-quality training data is essential for building accurate and robust

AI models. Without sufficient, well-structured and relevant data, AI

systems may produce unreliable or biased results or outputs that are

not explainable or auditable. Real-world data collected during

deployment and ongoing monitoring and updates may improve the

reliability, efficiency and performance of AI models, but may also

introduce new risks if such data is incomplete, inaccurate, improperly


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Risk factors continued

governed or biased. Prudential seeks to consider potential risks and

negative outcomes, and proactively build risk mitigation governance

practices, when implementing AI technologies to mitigate these

unintended effects,

2.2

Prudential’s businesses are conducted in highly

competitive environments with rapidly developing

demographic trends. The profitability of the Group’s

businesses depends on management’s ability to

respond to these pressures and trends.

The markets for financial services are highly competitive, with a

number of factors affecting Prudential’s ability to sell its products and

its profitability, including price and yields offered, financial strength

and ratings, range of product lines and product quality, range of

distribution channels (including the emergence of new distribution

models) and distribution quality, illustrative point-of-sale customer

investment returns, ability to implement and comply with regulatory

changes, the imposition of regulatory sanctions, brand strength and

name recognition, investment management performance and fund

management trends, historical bonus levels, delivery of non-

guaranteed benefits (notably non-guaranteed investment returns)

according to reasonable customer expectations set at and after the

point-of-sale, the ability to respond to developing demographic

trends, societal expectations, political influences, customer appetite

for different types of insurance products, technological advances, and

the interplay of these factors. In some of its markets, Prudential faces

competitors that are larger, have greater financial resources or a

greater market share, have different financial and/or risk appetites,

offer a broader range of products or have higher bonus rates. Further,

heightened competition for talented and skilled employees, agents

and independent financial advisers may limit Prudential’s potential to

grow its business as quickly as planned or otherwise implement its

strategy. Technological advances, including those enabling increased

capability for gathering large volumes of customer health data and

developments in capabilities and tools for analysing and interpreting

such data (such as AI, machine learning and predictive models as well

as other digital technologies), may result in increased competition to

the Group, and may reshape customer expectations and potentially

give rise to new distribution models that may impact traditional

distribution channels. This may also increase the competition risks

resulting from a failure by the Group to retain existing talent, as well

as hiring for newly emerging roles. Additionally, evolving regulatory

requirements and the development of new technologies, including AI,

may vary across the markets the Group operates in. This could limit

the Group's ability to implement these technologies uniformly,

resulting in disparities in innovation and cost efficiency, and adversely

impacting the Group's competitive position.

The Group’s principal competitors include global life insurers, regional

insurers and multinational asset managers. In most markets, there are

also local companies that have a material market presence.

Prudential believes that competition will intensify across all regions in

response to consumer demand, digital and other technological

advances (including the use of AI to improve operational efficiency and

enhance customer experiences), new entrants with business models

that have the potential to disrupt the existing value chain, the need

for economies of scale and the consequential impact of consolidation,

regulatory actions and other factors. Prudential’s ability to generate an

appropriate return depends significantly upon its capacity to anticipate

and respond appropriately to these competitive pressures.

Failure to do so may adversely impact Prudential’s ability to attract and

retain customers and, importantly, may limit Prudential’s ability to take

advantage of new business opportunities in the markets in which it

operates, which may have an adverse impact on the Group’s business,

financial condition, results of operations, growth and prospects.

2.3

Adverse experience in the operational risks inherent in

Prudential’s business, and those of its material

outsourcing partners, could disrupt its business

functions and have a negative impact on its business,

financial condition, results of operations and

prospects.

Operational risks are present in all of Prudential’s businesses,

including the risk of loss arising from inadequate or failed internal

processes, systems or human error, misconduct, fraud, the effects of

natural or man-made catastrophic events (such as natural disasters,

pandemics, cyber attacks, acts of terrorism, military conflict, civil

unrest and other catastrophes) or other external events. These risks

may also adversely impact Prudential through its partners. Prudential

relies on the performance and operations of a number of agency,

bancassurance, outsourcing (including but not limited to external

technology, data hosting and payments) and service partners. These

include back-office support functions, such as those relating to

technology infrastructure, development and support, and customer-

facing operations and services, such as product distribution and services

(including through digital channels), and investment operations. This

creates reliance upon the operational resilience of these partners and

exposes Prudential to the risk that the operations and services provided by

these partners are disrupted, or fail to meet required service levels. Further,

Prudential operates in extensive and evolving legal and regulatory

environments which adds to the complexity of the governance and

operation of its business processes and controls.

Exposure to such risks could impact Prudential’s operational resilience

and ability to perform necessary business functions if there are

disruptions to its systems, operations, new business sales and

renewals, distribution channels and services to customers, or could

result in the loss of confidential or proprietary data. Such risks, as well

as any weaknesses in administration systems (such as those relating

to policyholder records) or actuarial reserving processes, may also

result in increased expenses, as well as legal and regulatory penalties

or sanctions, decreased profitability, financial loss and customer

conduct risk impacts. This could damage Prudential’s reputation and

relationships with its customers and business partners. A failure to

adequately oversee service partners (or their technology and

operational systems and processes including their security) could

result in significant service degradation or disruption to Prudential’s

business operations and services to its customers, which may have

reputational or conduct risk implications and could have a material

adverse effect on the Group’s business, financial condition, results of

operations and prospects.

Prudential’s business requires the processing of a large number of

transactions for a diverse range of products. It also employs complex

and interconnected technology and finance systems, models and

user-centric applications in its processes to perform a range of

operational functions. These functions include the calculation of

regulatory or internal capital requirements, the valuation of assets

and liabilities, and the acquisition of new business using AI and digital

applications. Many of these tools form an integral part of Prudential’s

information and decision-making frameworks, and errors, limitations

or misinterpretation of such tools may give rise to adverse

consequences in core business activities, decision-making and

reporting. Errors or limitations in these tools, or their inappropriate

usage, may lead to regulatory breaches, inappropriate decision-


	81 Prudential plc Annual Report 2025

making, financial loss, customer detriment, inaccurate external

reporting or reputational damage. The long-term nature of much of

the Group’s business also means that accurate records must be

maintained securely for significant time periods.

The performance of the Group’s core business activities and the

uninterrupted availability of services to customers rely significantly on

and require significant investment in resilient IT applications, data

hosting, infrastructure and security architectural design, data

governance and management and other operational systems,

personnel, controls and mature processes. During large-scale

disruptive events or times of significant change, or due to other

factors impacting operational performance including adequacy of

skilled/experienced personnel, the operational effectiveness of these

systems and processes at Prudential and/or its third-party service

providers may be adversely impacted. In particular, Prudential and its

business partners are making increasing use of emerging

technological tools and digital services, or forming strategic

partnerships with third parties to provide these capabilities.

Automated distribution channels and services to customers increase

the criticality of providing uninterrupted services. A failure to

implement appropriate governance and management of the

incremental operational risks from emerging technologies may

adversely impact Prudential’s reputation and brand, the results of its

operations, its ability to attract and retain customers and its ability to

deliver on its long-term strategy and therefore its competitiveness

and long-term financial success.

Although Prudential’s technology, compliance and other operational

systems, models and processes incorporate strong governance and

controls designed to manage and mitigate the operational and model

risks associated with its activities, there can be no complete assurance

as to the resilience of these systems and processes or that governance

and controls will always be effective, if at all. Due to human error,

among other reasons, operational and model risk incidents may occur

from time to time, and no system or process can entirely prevent

them. Prudential’s legacy and other technology systems, data and

processes, as with operational systems and processes generally, may

also be susceptible to failure or security/data breaches.

2.4

Cyber security risks, including attempts to access or

disrupt Prudential’s technology systems, and loss or

misuse of personal data, could have potential adverse

financial impacts on the Group and could result in

loss of trust from Prudential’s customers and

employees and reputational damage, which in turn

could have material adverse effects on the Group’s

business, financial condition, results of operations

and prospects.

Prudential and its business partners operate in an escalating cyber security

risk landscape. Individuals (including employees, contractors and agents),

groups or AI-enabled cyber tools may pose intentional or unintentional

threats to the availability, confidentiality, and integrity of Prudential’s

technology systems. These risks extend to the security of both corporate

and customer data. The evolution of ransomware (a form of malicious

software (malware) designed to restrict data access until a ransom is paid)

could pose a threat to Prudential by impeding operations or resulting in

the public exposures of sensitive information if the ransom is not promptly

paid. Where these risks materialise, they could result in disruption to key

operations, make it difficult to recover critical data or services, or result in

damage to assets, any of which could result in loss of trust from

Prudential’s customers and employees, reputational damage and direct or

indirect financial loss.

The vast amount of personal and financial data held by financial

services companies makes them attractive targets for cyber crime

groups. Recent trends indicate that ransomware attacks are on the

rise due to the proliferation of ransomware exploit toolkits and

Ransomware-as-a-Service (RaaS) offerings, which provide threat

actors with easy access to powerful attack tools. Simultaneously,

global cyber security threats are becoming more sophisticated and

impactful. As financial institutions increasingly rely on third-party

vendors and interconnected systems, vulnerabilities in these supply

chains can also be exploited by cyber criminals. A compromised

vendor or service provider could inadvertently introduce malicious

code or backdoors into the financial institution’s infrastructure,

leading to potential data breaches or ransomware incidents or

operational disruption.

Prudential’s increasing profile in its current markets and those in

which it is entering, growing customer interest in interacting with their

insurance providers and asset managers through the internet and

social media, improved brand awareness, and increasing adoption of

the Group’s digital platforms could also increase the likelihood of

Prudential being considered a target by cyber criminals.

There is an increasing requirement and expectation on Prudential and

its business partners not only to hold the data of customers,

shareholders and employees securely, but also to ensure its ongoing

accuracy and that it is being used in a transparent, appropriate and

ethical way, including in decision-making where automated processes

or AI are employed. As Prudential and its business partners increasingly

adopt digital technology (including AI) in business operations, the data

the Group generates creates an opportunity to enhance customer

engagement while maintaining a responsibility to keep customers’

personal data safe. Various policies and frameworks are in place to

govern the handling of customers' data. Failure to adhere to these

policies may result in regulatory scrutiny and sanctions and detriment

to customers and third-party partners, and may adversely impact the

reputation and brand of the Group, its ability to attract and retain

customers, and deliver on its long-term strategy.

The risk to the Group of not meeting these requirements and

expectations may be increased by the expansion of cloud-based

infrastructure and the usage of digital distribution and service

channels, which can collect a broader range of personal and health-

related data from individuals at increased scale and speed, as well as

the use of complex tools, machine learning and AI technologies to

process, analyse and interpret this data.

New and currently unforeseeable regulatory, reputational and

operational issues may also arise from the increased use of emerging

technology such as generative AI which requires careful consideration

and guardrails established to enable its safe use. Regulatory

developments in cyber security and data protection continue to

progress worldwide. The focus on data privacy has continued to

increase, with regulators in Asia and globally introducing new data

privacy laws or enhancing existing ones. Such developments may

increase the complexity of requirements and obligations in this area,

in particular where they involve AI or data localisation restrictions, or

where they require system-level modifications to digital applications

or platforms or impose differing and/or conflicting requirements

compared with those of other jurisdictions.

Prudential faces increased financial and reputational risks due to both

dynamic changes in the regulatory landscape and the risk of a

significant breach of IT systems or data. These risks extend to joint

ventures and third-party suppliers in light of a dynamic cyber threat

landscape including supply chain compromise, computer viruses,

unauthorised access and cyber security attacks such as ‘denial of

service’ attacks, phishing and disruptive software campaigns. Despite

multi-layered security defences, there is no guarantee that such

events will not occur, and they could have significant adverse effects


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Risk factors continued

2.6

Prudential operates in certain markets with joint

venture partners and other shareholders and third

parties. These businesses face the same risks as the

rest of the Group and also give rise to certain risks to

Prudential that the Group does not face with respect

to its wholly-owned subsidiaries, which could

adversely affect Prudential’s reputation and its

business, financial condition, results of operations

and prospects.

on Prudential’s business, financial condition, results of operations and

prospects.

2.5

Prudential’s digital platforms may heighten existing

business risks to the Group or introduce new risks as

the markets in which it operat es, and its partnerships

and product offerings evolve.

Prudential’s digital platforms are subject to a number of risks,

including those related to legal and regulatory compliance and the

conduct of business; the execution of complex change initiatives;

information security and data privacy; the use of models and the

handling of personal data (including those using or used by AI); the

resilience and integrity of IT infrastructure and operations; and the

management of third parties. These existing risks for the Group may

be increased due to several factors:

– The number of current and planned markets in which Prudential’s

digital platforms operate, each with their own laws and regulations,

regulatory and supervisory authorities, the scope of application of

which may be uncertain, conflicting or change at pace, may

increase regulatory compliance risks;

– The implementation of planned digital platforms and services,

which may require the delivery of complex, interconnected change

initiatives across current and planned markets. This may give rise to

design and execution risks, which could be amplified where these

change initiatives are delivered concurrently;

– The increased volume, breadth and sensitivity of data on which the

digital platforms are dependent and to which the Group has access,

holds, analyses and processes through its models, increases

information security, data privacy and usage risks. Furthermore, the

use of complex models, including where AI is used for critical

decision-making, in an application’s features and offerings may

give rise to ethical, operational, security, conduct, litigation and

reputational risks if they do not function as intended, if at all;

– Reliance on and/or collaboration with a number of third-party

partners and providers, which may vary according to the market.

This may increase operational disruption risks to the uninterrupted

provision of services to customers, regulatory compliance and

conduct risks, and the potential for reputational risks; and

– Support for, and development of, the platforms being provided

outside some of the individual markets in which the platforms

operate, which may increase the complexity of local legal and

regulatory compliance.

New product offerings and functionality (including those supported

by AI) may be developed and provided through digital platforms,

which may introduce new regulatory, operational, conduct and

strategic risks for the Group. Regulations may be introduced, which

limit the permitted scope of online or digitally distributed insurance

and asset management services, or deployment of new technological

services, and may restrict current or planned offerings provided by the

platform.

A failure to implement appropriate governance and management of

the incremental and new risks detailed above may adversely impact

Prudential’s reputation and brand, its ability to attract and retain

customers, its competitiveness, its ability to deliver on its long-term

strategy and the financial position of the Group.

Prudential operates, and in certain markets is required by local

regulation to operate, through joint ventures and other joint

ownership or third-party arrangements (including associates). The

financial condition, operations and reputation of the Group may be

adversely impacted, or the Group may face regulatory censure, in the

event that any of its partners fails or is unable to meet its obligations

under the arrangements, encounters financial difficulty, or fails to

comply with local or international regulation and standards such as

those pertaining to the prevention of financial crime and

sustainability (including climate-related) risks (see risk factor 3.1

below), or fails to resolve disputes that may arise from existing

agreements or during the course of implementing business strategy.

Reputational risks to the Group are amplified where any joint ventures

or jointly owned businesses carry the Prudential name.

A portion of the Group’s business comes from its joint venture and

associate businesses in Mainland China and India, respectively. For

such operations, the level of control exercisable by the Group depends

on the terms of the contractual agreements as well as local regulatory

constraints applicable to the joint venture and associate businesses,

such as listing requirements; and, in particular, those terms providing

for the allocation of control among, and continued cooperation

between, the participants. As a result, the level of oversight, control

and access to management information the Group is able to exercise

at these operations may be lower compared to the Group’s wholly-

owned businesses. This may increase the uncertainty for the Group

over the financial condition of these operations, including the

valuation of their investment portfolios and the extent of their

invested credit and counterparty credit risk exposure, resulting in

heightened risks to the Group as a whole. This may particularly be the

case where the geographies in which these operations are located

experience market or sector-specific slowdowns, disruption, volatility

or deterioration. In addition, the level of control exercisable by the

Group could be affected by changes in the maximum level of foreign

ownership imposed on foreign companies in certain jurisdictions. The

exposure of the Group to the risks detailed in risk factor 2.1 above

may also evolve in line with the Group’s strategic initiatives, such as

the expansion of the Group’s operations through joint ventures or

jointly-owned businesses.

In addition, a significant proportion of the Group’s product

distribution is carried out through agency arrangements and

contractual arrangements with third-party service providers not

controlled by Prudential, such as bancassurance arrangements, and

the Group is therefore dependent upon the continuation of these

relationships. The effectiveness of these arrangements, or temporary

or permanent disruption to them, such as through significant

deterioration in the reputation, financial position or other

circumstances of the third-party service providers, material failure in

controls (such as those pertaining to third-party service providers’

systems failure or the prevention of financial crime), regulatory

changes affecting their governance or operation, or their failure to

meet any regulatory requirements could adversely affect Prudential’s

reputation and its business, financial condition, results of operations

and prospects.


	83 Prudential plc Annual Report 2025

2.7

Adverse experience relative to the assumptions used in

pricing products and reporting business results could

have a material adverse effect on Prudential’s

business, financial condition, results of operations and

prospects.

In common with other life insurers, the profitability of the Group’s

businesses depends on a mix of factors including mortality and

morbidity levels and trends, policy surrenders and other policy

discontinuances or alterations, customer take-up rates on product

options, economic conditions, investment performance and

impairments, unit costs of administration and new business

acquisition expenses. The potential adverse impacts to the profitability

of the Group’s businesses from the upheavals in financial markets and

levels of economic activity on customer behaviours are described in risk

factor 1.1 above.

Prudential, like other insurers, needs to make assumptions about a

number of factors in determining the pricing of its products, for

setting reserves, and for reporting its capital levels and the results of

its long-term business operations. A further factor is the assumptions

that Prudential makes about future expected levels of the rates of

early termination of products by its customers (known as persistency).

This is relevant to a number of lines of business in the Group.

Prudential’s persistency assumptions reflect a combination of recent

past experience for each relevant line of business and expert

judgement, especially where a lack of relevant and credible

experience data exists. Any expected change in future persistency is

also reflected in the assumptions. If actual levels of persistency are

significantly different than assumed, the Group’s results of operations

could be adversely affected.

The Group’s businesses are subject to inflation risk. In particular, the

Group’s medical insurance businesses are also exposed to medical

inflation risk, which is often in excess of general price inflation. While

the Group has the ability to reprice some of its products, such

repricing is dependent on the availability of operational and resource

capacity to do so, as well as the Group’s ability to implement such

repricing in light of the increased regulatory restrictions, political

influences, and customer and societal expectations reflecting the

affordability of insurance products and the protection of vulnerable

customers, as well as the commercial considerations of the markets

the Group operates in. Increasing regulatory requirements relating to

the design and repricing of medical reimbursement products may also

impact the profitability of these products. Further, the profitability of

the Group’s businesses may be adversely impacted by downgrade

and/or policy termination experience following any repricing of

medical reimbursement products.

In addition, Prudential’s business may be adversely affected by

epidemics, pandemics and other effects that give rise to a large

number of deaths or additional sickness claims, as well as increases in

the cost of medical claims. Pandemics, significant influenza and other

epidemics have occurred a number of times historically, but the

likelihood, timing or severity of future events cannot be predicted. The

effectiveness of external parties, including governmental and non-

governmental organisations, in combatting the spread and severity of

any epidemics, as well as pharmaceutical treatments and vaccines

(and their rollouts) and non-pharmaceutical interventions, could have

a material impact on the Group’s claims experience.

Prudential uses reinsurance to selectively transfer mortality, morbidity

and other risks. This exposes the Group to: the counterparty risk of a

reinsurer being unable to pay reinsurance claims or otherwise meet

their commitments; the risk that a reinsurer changes reinsurance

terms and conditions of coverage, or increases the price of

reinsurance which Prudential is unable to pass on to its customers; the

risk of ambiguity in the reinsurance terms and conditions leading to

uncertainty whether an event is covered under a reinsurance contract;

and the risk of being unable to replace an existing reinsurer, or find a

new reinsurer, for the risk transfer being sought.

Any of the foregoing, individually or together, could have a material

adverse effect on Prudential’s business, financial condition, results of

operations and prospects.

3 Risks relating to sustainability (including environmental, social and governance (ESG) and climate-related) matters

3.1

The failure to understand and respond effectively to

the risks associated with sustainability factors could

adversely affect Prudential’s achievement of its

long‑term strategy.

Sustainability-related risks refer to (i) environmental, social or

governance issues, trends or events that could have a financial or non-

financial impact on the Group, and/or (ii) the Group’s sustainability-

focused activities, strategy and commitments that could have an

external impact on the environment and wider society. A failure to

manage the risks associated with key sustainability themes may

undermine Prudential’s financial performance, operational resilience

and sustainability credentials, adversely impact its reputation and

brand, and its ability to attract and retain customers, investors,

employees and distribution and other business partners, and

therefore the results of its operations and the delivery of its business

strategy and long-term financial success. As investors are increasingly

being seen as partly responsible for the actions of the companies they

invest in, Prudential, as an asset owner and asset manager, may also

incur sustainability-related risks from investee companies.

a Environmental risks

Environmental concerns, notably those associated with climate

change, biodiversity loss and nature degradation, present potential

long-term risks to the sustainability ambitions of Prudential and may

impact its customers and other stakeholders. Prudential is therefore

exposed to the long-term impact of climate change and nature

degradation risks, which include the financial and non-financial

impacts of transition, physical, reputational and shareholder,

regulatory, customer or third-party litigation risks.

Recognising the long-term nature of the Group’s investment time

horizon, the global transition, including where disorderly or

fragmented, to a lower carbon economy and nature preservation may

have an adverse impact on investment valuations and liquidity as the

financial assets of carbon-intensive companies in some asset sectors

re-price as a result of increased operating costs and a reduction in

demand for their products and services. The speed of this transition,

and the extent to which it is orderly and managed versus disorderly

and reactive, will be influenced by factors such as changes in

geopolitics, public policy, technology and customer or investor

sentiment. Prudential’s stakeholders increasingly expect and/or rely

on the Group to support an orderly, inclusive and sustainable

transition based on an understanding of the relevant market and

investee-company-level transition plans with consideration given to

the impact on the economies, businesses, communities and


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Risk factors continued

customers in these markets. The potential economic impacts of

transition risks may also have a broader economic impact that may

adversely affect customers and their demand for the Group’s

products.

The Group’s ability to sufficiently understand, measure and

appropriately respond to transition risk may be limited by insufficient

or unreliable data on the carbon exposure, nature impacts and

dependencies, and transition plans of investee companies. This may

impact the Group’s ability to deliver on its external decarbonisation

commitments and the implementation of sustainability

considerations in existing or new sustainability-orientated investment

strategies and products. Additionally, current limitations in financial

climate and nature modelling tools make it challenging to assess the

financial impact of climate-related risks on the Group and its

investment portfolio, particularly for longer-term time horizons.

The direct physical impacts of climate change and nature

degradation, including shorter-term event-driven (acute) physical risks

such as increasingly frequent and severe typhoons, floods, heatwaves,

and wildfires, and those associated with longer-term shifts in climate

patterns such as elevated temperatures, extremely high rainfall, and

prolonged drought (chronic physical risks), may become increasingly

significant factors in the mortality and morbidity risk assessments for

the Group’s insurance product underwriting and offerings and their

associated claims profiles. These physical climate risks have the

potential to disproportionately impact economies in the Asia and

Africa markets in which Prudential operates and invests. Similarly,

nature-related physical risks can impact life and health liabilities

where, for example, pollution, poor water quality, waste

contamination and overexploitation of the natural environment can

all contribute to biodiversity degradation, which in turn can

potentially pose threats to human health.

A failure to understand, manage and provide greater transparency of

its exposure to these environment-related risks may have increasingly

adverse implications for Prudential and its stakeholders. At the same

time, evolving and diverging approaches to sustainability in different

jurisdictions, in some cases with extraterritorial reach, create

challenges for global businesses such as Prudential in meeting

differing requirements and expectations.

b Social risks

Social risks that could impact Prudential may arise from a failure to

consider diversity, wellbeing, changing needs, human rights and

interests of its customers and employees and the communities in

which the Group or its third parties operate. Perceived or actual

inequity and income disparities have the potential to further erode

social cohesion across the markets in which the Group operates, which

may increase operational and disruption risks for Prudential and

impact the delivery of the Group’s strategy across these markets.

Direct physical impacts of climate change and deterioration of the

natural environment, together with the societal impact from actions

that support the global transition to a lower carbon economy, may

disproportionately impact the stability of livelihoods and health of

lower socioeconomic groups within the markets in which the Group

operates. These risks are heightened as Prudential operates in

multiple jurisdictions that are particularly vulnerable to climate

change and biodiversity degradation, with distinct local cultures and

considerations.

Evolving social norms and emerging population risks associated with

public health trends (such as an increase in obesity, metabolic

syndrome and mental health deterioration) and demographic

changes (such as population urbanisation and ageing), as well as

potential migration or displacement due to factors including climate-

and nature-related developments, may affect customer lifestyles and

therefore may impact the level of claims and persistency under the

Group’s insurance product offerings.

As a provider of insurance and investment services, the Group is

increasingly focused on making its products more accessible through

the use of digital services, technologies and distribution methods to

customers. As a result, Prudential has access to extensive amounts of

customer personal data, including data related to personal health,

and an increasing ability to analyse and interpret this data through

the use of complex tools, machine learning and AI technologies. The

Group is therefore exposed to an increase in technology risk, including

potential unintended consequences from algorithmic biases, as well

as regulatory, ethical and reputational risks associated with customer

data misuse or security breaches. These risks are explained in risk

factors 2.4 and 2.5 above. The increasing digitalisation of products,

services and processes may also result in new and unforeseen

regulatory requirements and stakeholder expectations, including

those relating to how the Group supports its customers through this

transformation.

Failure to foster an inclusive, diverse and open environment for the

Group’s employees in accordance with the Group Code of Conduct

could impact the ability to attract and/or retain employees and

increase potential reputational risk. The business practices within the

Group’s third-party supply chain and investee companies with regards

to topics including labour standards, respect for human rights and

modern slavery also expose the Group to potential reputational risk.

Insurers use the claims and risk profiles of different homogeneous

customer cohorts such as age, gender and health status to determine

the insurance premiums and/or charges. In some societal settings,

insurers' ability to set differential premiums and/or charges may be

viewed as an equitable and risk-based practice. In other societal

settings, this may be viewed as discriminatory. Failure to understand

and manage these divergent views across the markets in which

Prudential operates may adversely impact the financial condition and

reputation of the Group.

c Governance

A failure to maintain high standards of corporate governance may

adversely impact the Group, its customers and its employees,

increasing the risk of poor decision-making and inadequate oversight

and management of key risks. Poor governance may arise where key

governance committees lack independence, diversity, skills or

experience among their members, or where oversight responsibilities

and mandates are unclear or insufficient. Inadequate oversight over

remuneration also increases the risk of poor senior management

behaviour.

Prudential operates across multiple jurisdictions and has a group and

subsidiary governance structure which may add further complexity to

these considerations. Participation in joint ventures or partnerships

where Prudential does not have direct overall control, along with the

use of third-party service providers, increases the potential for

reputational risks arising from inadequate governance.

The pace and volume of global standards and sustainability,

environmental and climate-related regulations emerging across the

markets in which the Group operates, the Group's goals of delivering

on existing and new exclusions or restrictions on investments in

certain sectors, engagements and reporting commitments, such as

the International Sustainability Standards Board (ISSB) standards for

climate-related disclosures, and the demand for externally assured

reporting may give rise to regulatory compliance, operational,

disclosure and litigation risks, which may be increased by the multi-

jurisdictional coordination required in adopting a consistent risk

management approach. The launch of sustainability-focused funds or

products, or the (method of) incorporation of sustainability

considerations within the investment process for existing products,

may increase the risks related to the perceived fulfilment of fiduciary

duties to customers and investors by the Group’s appointed asset

managers, and may subsequently increase regulatory compliance,


	85 Prudential plc Annual Report 2025

customer conduct, product disclosure, litigation and reputational risks.

Prudential’s voluntary memberships of, or participation within,

industry organisations and groups or their initiatives may also

increase stakeholder expectations of the Group’s acquiescence or

compliance with their publicised positions or aims.

The reputational and litigation risks of the Group may subsequently

increase where the stated positions or aims of such industry

organisations or their initiatives continue to evolve, or where

jurisdictions interpret their objectives as adversely impacting on

markets or consumers, including, for example, perceived conflicts with

anti-trust laws. See risk factor 4.1 for details of sustainability including

ESG and climate-related regulatory and supervisory developments

with potential impacts for the Group.

Sustainability risks may directly or indirectly impact Prudential’s

business and the achievement of its strategic focus on providing

greater and more accessible health and financial protection, and

responsible stewardship and investment within the markets in which

the Group operates to support a just and inclusive transition and

nature restoration. Such risks may also adversely impact Prudential

from meeting its objective of building a sustainable business that

delivers a positive impact on its broad range of stakeholders, ranging

from customers, institutional investors, employees and suppliers to

policymakers, regulators, industry organisations and local

communities. A failure to transparently implement the Group’s

Sustainability Strategy across its local businesses and its operational,

underwriting and investment activities, as well as a failure to

implement and uphold responsible business conduct, may adversely

impact the financial condition and reputation of the Group. This may

also negatively impact the Group’s stakeholders, who all have

expectations, concerns and aims related to sustainability matters,

which may differ, both within and across stakeholder groups and the

markets in which the Group operates. In its investment activities,

Prudential’s stakeholders increasingly have expectations of, and place

reliance on, an approach to responsible investment that

demonstrates how sustainability considerations are effectively

integrated into investment decisions and the performance of

fiduciary and stewardship duties. These duties include effective

implementation of exclusions, voting and active engagement

decisions with respect to investee companies, as both an asset owner

and an asset manager, in line with internally defined procedures and

external commitments. The increased demands and expectations of

stakeholders for transparency and disclosure of the activities that

support these duties further heighten disclosure risks for the Group,

including those associated with potentially overstating or misstating

the positive environmental or societal impacts of the Group’s

activities, products and services (eg greenwashing).

4. Risks relating to legal and regulatory requirements

4.1

Prudential conducts its businesses subject to

regulation and associated regulatory risks, including

changes to the basis of regulatory supervision or

intervention of the Group, the level of regulatory

scrutiny arising from the Group’s reported events, the

effects and pace of changes in the laws, regulations,

policies, their interpretations and application, and

any industry/ or accounting standards in the markets

in which it operates.

Any non-compliance with laws, regulations, government policies, or

common industry practices and standards or rules in the financial

services and insurance sector (including those applicable to relevant

companies, individuals or distributors) can adversely affect

Prudential’s operations, licences or business continuity. In the markets

in which Prudential operates, it is subject to regulatory requirements

for ongoing business operations as well as obligations with respect to

financial crime, including anti-money laundering (AML), sanctions

compliance, and anti-corruption and fraud, which may either impose

obligations on the Group to act in a certain manner or restrict the way

that the Group can act in respect of specified individuals,

organisations, businesses, territories and/or governments. A failure to

comply with such requirements may adversely impact the reputation

of Prudential and/or result in the imposition of legal or regulatory

penalties, heightened regulatory scrutiny or enforcement actions, or

restrictions on the Group, including limitations on its ability to conduct

business.

The impact from regulatory developments may also be material to

Prudential; for instance, changes may be required to its product

range, distribution channels, sales and servicing practices, data

handling, operational processes, competitiveness, profitability, capital

requirements, risk appetite and risk management approaches,

corporate or governance structure, financial and non-financial

disclosures and reported results, and financing requirements.

Regulatory changes and political influences may also impact the

Group’s ability to reprice its products, particularly medical

reimbursement products as observed in some markets that the Group

operates in. Changes in capital-related regulations may affect the

sensitivity of capital to market factors and the allocation of capital

and liquidity within the Group. Regulators may also change solvency

requirements or methodologies for determining components of the

regulatory or statutory balance sheet, including the reserves and the

level of capital required to be held by individual businesses (with

implications for the Group capital position). Other government

interventions due to financial and global economic conditions may

also lead to a tightened business operating environment and

heightened regulatory scrutiny.

For internationally active groups such as Prudential, operating across

multiple jurisdictions (including cross-border activities) may increase

the complexity and volume of legal and regulatory compliance

challenges. The multitude of laws and regulations in the jurisdictions

in which Prudential operates is dynamic and may be subject to

ongoing changes. Legal and regulatory obligations may also be

unclear in their application to particular circumstances, which may

affect Prudential’s ability to enforce the Group’s rights in the manner

intended and reduce predictability for Prudential’s business

operations. Compliance with Prudential’s legal or regulatory

obligations, including those in respect of international sanctions,

sustainability efforts and human resources practices, in one

jurisdiction may conflict with the law or policy objectives of another

jurisdiction, or may be seen as supporting the law or policy objectives

of that jurisdiction over another, creating additional legal, regulatory

compliance and reputational risks for the Group. Geopolitical and

global tensions may also lead to realignment among blocs, or

challenging supply chains, which may lead to an increase in the

volume and complexity of international sanctions or controls. These

risks may be increased where uncertainty exists as to the scope of

regulatory requirements and obligations, and where the complexity of

specific cases applicable to the Group is high.

Further information on specific areas of regulatory and supervisory

requirements or changes is included below.


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Risk factors continued

a Group-wide Supervision (GWS) regulatory framework

The Hong Kong Insurance Authority (Hong Kong IA) is the Group-

wide supervisor for Prudential. The Group is subject to the Hong Kong

IA's GWS Framework, which is principles-based and outcome-focused,

allowing the Hong Kong IA to exercise direct regulatory powers over

the designated holding companies of multinational insurance groups.

Prudential has in place various monitoring mechanisms and controls

to ensure ongoing compliance and to promote constructive

engagement with the Hong Kong IA as its Group-wide supervisor.

b The Group's regulatory landscape

In 2025, the Hong Kong IA and regulators in the markets in which

Prudential operates continued to focus on customer protection and

the resilience of the insurance industry. New mandates and guidelines

were issued in several markets whereby industry participants are

required to assess, monitor and manage non-financial, financial and

sustainability risks. Business conduct and consumer protection remain

the priority for regulators, with emphases on products, sales, servicing

and data protection expectations, as well as operational resilience,

investment management, third-party management and technology

risk management.

Major regulatory changes and reforms are in progress in some of the

Group’s key markets, with some uncertainty regarding the full impact

on Prudential:

– In Hong Kong, the Hong Kong IA continued to strengthen customer

protection in the management of participating businesses

throughout 2025, including the implementation of an illustration

rate cap for participating policies, updated remuneration structures

for intermediaries, and supervision of product fulfilment ratios.

Mitigating unlicensed activities and sales conduct remain key

priorities.

– In Mainland China, the National Financial Regulatory

Administration continues to enhance its supervision of the market

through comprehensive inspections and enforcement actions. In

2025, regulatory developments in the financial sector continued to

evolve, including updated regulations or initiatives related to

market conduct, product governance, compliance management,

and enforcement methodologies, potentially increasing the risk

exposure of industry players.

– In Singapore, the Monetary Authority of Singapore (MAS)

introduced new requirements for financial institutions aimed at

strengthening the management of third parties, technology, and

cybersecurity. These enhanced regulations require robust risk

management, strengthened controls, and effective recovery

procedures, supported by the implementation of appropriate

mechanisms. The regulators also introduced mandatory product

design changes to Shield medical insurance riders with the publicly

stated expectation that premiums will be reduced by

approximately 30% as a result.

– In Malaysia, Bank Negara Malaysia (BNM) initiated revised capital

adequacy requirements aimed at improving risk-based capital

measurements and reporting, scheduled to take effect in 2027. In

addition, BNM introduced new regulatory changes for health

products, including those relating to customer journey and

affordability. Heightened BNM supervision is expected to continue

in the medical insurance sector.

– In Indonesia, regulatory oversight of the insurance industry

remains a key priority, guided by the Otoritas Jasa Keuangan (OJK)

five-year regulatory roadmap in place since 2023, aimed at

enhancing customer protection and covering other aspects such as

agent licensing, data, capital, products, actuarial matters, reporting,

risk management and operational controls.

– In Vietnam, following significant insurance regulatory changes and

industry reform since 2023, the insurance sector has been

stabilising, with enhanced expectations regarding customer

protection, intermediary management, and data privacy controls.

– In Thailand, the regulatory environment continues to evolve with

proposed legislative reforms to strengthen corporate governance,

risk-based capital requirements, and financial stability in the

insurance sector.

– In Taiwan, the regulator has introduced a new Insurance Capital

Standard, effective from 1 January 2026, with more risk‑sensitive

and internationally aligned solvency requirements.

– In the Philippines, regulatory developments under Philippine

Financial Reporting Standard 17, introduced in 2024 to enhance

transparency and comparability in financial reporting, are set for

full implementation in January 2027. These changes will include a

new Quantitative Impact Assessment (QIA) and quarterly status

updates in local regulatory filing from 2025 onwards, as well as

implications for capital management.

– In India, the Insurance Regulatory and Development Authority of

India (IRDAI) continues to promote the governance and use of

technology to transform the insurance landscape in the country. In

addition, the IRDAI is planning to introduce risk-based capital

requirements.

Furthermore, the growing adoption of technology, digital services and

AI across the industry has introduced new and unforeseen regulatory

requirements and issues, including heightened expectations regarding

the use of AI, as well as other resilience-related concerns such as data

security, privacy and cyber resilience. These regulatory developments

are being actively monitored and addressed as necessary.

The pace and volume of sustainability-related regulatory changes,

including ESG and climate-related changes, are also increasing.

Regulators in Hong Kong, Singapore, Malaysia, Taiwan, Indonesia,

Philippines, Thailand, Mainland China and the UK are either in the

process of initiating or have developed supervisory and disclosure

requirements or guidelines related to environmental and climate

change risk management. With international standard setters, such as

the ISSB, progressing with global sustainability and climate-related

disclosure requirements, local jurisdictions are considering adopting

and, in some cases, mandating implementation. In 2025, the Stock

Exchange of Hong Kong, the Singapore Exchange, the Securities

Commission of Malaysia and Taiwan’s Financial Supervisory

Commission incorporated IFRS climate-related disclosure standards

into their reporting rules, while others announced roadmaps or began

consultations to adopt these standards in the coming years. As local

regulatory expectations continue to increase, we expect many

frameworks to include relief mechanisms that allow local entities to

rely on the parent company’s ISSB-aligned group disclosures, rather

than preparing separate local disclosures, which should ease the

regulatory burden on our operating companies. However, this

interoperability may not always be seamless owing to regional

variations in how the standards have been adapted, so the potential

for overlapping reporting burdens across jurisdiction remains. Across

Asia, sustainable finance taxonomies have been introduced in Hong

Kong, Singapore, Malaysia, Indonesia, and Taiwan with efforts to

support green investment. Recent high-profile examples of

government and regulatory enforcement and civil actions against

companies for misleading investors on sustainability and ESG-related

information demonstrate that disclosure, reputational and litigation

risks remain high and may increase, particularly as companies

increase their disclosures or product offerings in this area. Regulators

and industry bodies, such as the UK Financial Conduct Authority, the

European Commission (working with the European Securities and

Markets Authority, and the MAS have further established more

prescriptive requirements and guidelines regarding the use of

sustainability and ESG nomenclature in the labelling of investment

products. These changes and developments may give rise to

regulatory compliance, customer conduct, operational, reputational,

and disclosure risks, requiring Prudential to coordinate across multiple


	87 Prudential plc Annual Report 2025

jurisdictions to apply a consistent risk management approach, which

may prove difficult against the backdrop of contrary trends in the US.

A rapid pace and high volume of regulatory changes and

interventions, and the swiftness of their application, including those

driven by the financial services industry, have been observed in recent

years across many of the markets in which the Group operates. The

transformation and regulatory changes have the potential to

introduce new, or increase existing, regulatory risks and supervisory

interest, while increasing the complexity of ensuring concurrent

regulatory compliance across markets driven by the potential for

increased intra-group connectivity and dependencies. In jurisdictions

with ongoing policy initiatives and regulatory developments that will

impact the way Prudential is supervised, these developments are

monitored at both market and Group level and inform the Group’s

risk framework and engagement with regulators or supervisors,

policymakers and industry groups.

c International insurance standards developments

The International Association of Insurance Supervisors (IAIS) sets

global standards for the insurance sector, through the Insurance Core

Principles and the Common Framework (ComFrame). The Insurance

Core Principles provide a broad framework for insurance supervision

globally, while ComFrame offers additional, enhanced standards for

the supervision of Internationally Active Insurance Groups (IAIGs).

These standards significantly influence group-wide regulatory

frameworks such as the Hong Kong IA’s GWS requirements,

consequently impacting Prudential, which has been designated as an

IAIG by the Hong Kong IA according to the criteria set out in IAIS’s

ComFrame. The IAIS's standards and guidelines also play a crucial

role in shaping regional regulations in many jurisdictions in which

Prudential operates.

There are a number of ongoing global industry developments by the

IAIS that could lead to new macroprudential, operational and

conduct standards, resulting in additional burdens or adverse impacts

on the Group and its business units. These developments cover the

monitoring of key insurance risks and trends (including protection

gaps), standards setting, and the assessment of standards

implementation in the areas of systemic risk, the Insurance Capital

Standard (ICS), insights for sustainability risk (including climate risk),

customer treatment and AI-related aspects specifically for the global

4.2

The Group and its intermediaries may conduct

business in a way that adversely impacts the fair

treatment of customers, which could negatively affect

Prudential’s business, financial condition, result of

operations and prospects, as well as its relations with

current and potential customers and its reputation.

insurance sector.

In November 2025, the Financial Stability Board (FSB), a global body

that ensures international financial stability, reaffirmed its decision to

use the IAIS’s Holistic Framework for the assessment and mitigation

of systemic risk in the insurance sector. The FSB continues to publish

an annual list of insurers that will be subject to resolution

requirements, in order to provide transparency to market participants

that the reported insurers and their regulators and supervisors are

working to be better equipped to address stress or failure, and shows

that the relevant authorities are working together across borders. The

Holistic Framework also includes the Global Monitoring Exercise,

which is a process for the identification of any build-up of systemic

risk and the IAIS conducted a consultation with a revised document

published on the Global Monitoring Exercise in 2025. Prudential

continues to participate in the exercise. The IAIS also initiated a

public consultation on draft revised application papers on recovery

and resolution in November 2025. The MAS introduced a Domestic

Systemically Important Insurers (D-SII) framework in Singapore

effective from 1 January 2024 and has designated Prudential

Assurance Company Singapore as a D-SII. In 2025, the Hong Kong IA

introduced a new framework for the classification of D-SIIs (entities

whose failure will cause significant disruption to the local financial

system in Hong Kong) and classified Prudential Corporation Asia

Limited, which is the senior regulated entity within the Group, as a D-

SII. The MAS and the Hong Kong IA are expected to continue to align

with the latest FSB and IAIS standards and guidelines relating to

systemic risk.

The ICS was adopted by the IAIS in December 2024, and is a global,

risk-based measure of capital adequacy for IAIGs as the quantitative

element of IAIS’s ComFrame. The ICS will serve as a group-wide

prescribed capital requirement, which is a solvency control level below

which supervisors will intervene on group capital adequacy grounds.

Prudential, as an IAIG, continues to work with the Hong Kong IA on

the implementation of the ICS.

As a result, there remains a degree of uncertainty over the potential

impact of ongoing global industry and regulatory developments

across the Group.

d Changes in accounting standards and other principles to

determine financial metrics

The Group’s financial statements are prepared in accordance with

IFRS. In addition, the Group provides supplementary financial metrics

prepared on alternative bases to discuss the performance and

position of its business. Any changes or modification to IFRS

accounting policies or the principles applied to determine the

supplementary metrics may require a change in the way in which

future results will be determined and/or a retrospective adjustment of

reported results to ensure consistency. Furthermore, investors, rating

agencies and other stakeholders may take time to gain familiarity

with the revised results and to interpret the Group’s business

performance and dynamics. Such changes may also require systems,

processes and controls to be updated and developed that, if not

managed effectively, may increase the operational risk of the Group

in the short term.

e Policyholder protection schemes

Various jurisdictions in which Prudential operates have created

policyholder protection schemes that require mandatory

contributions from market participants in some instances in the event

of a failure of a market participant. As a major participant in the

majority of its chosen markets, circumstances could arise in which

Prudential, along with other companies, may be required to make

such contributions.

At any stage of the customer and product life cycle, the Group or its

intermediaries may conduct business in a way that adversely impacts

customer outcomes and the fair treatment of customers (‘conduct

risk’). This may arise through a failure to design, provide and promote

suitable products and services to customers that meet their needs, are

clearly explained or deliver real value, provide and promote a high

standard of customer service, appropriately and responsibly manage

customer information, or appropriately handle and assess complaints.

A failure to identify or implement appropriate governance and

management of conduct risk may result in harm to customers and

regulatory sanctions and restrictions, and may adversely impact

Prudential’s reputation and brand, its ability to attract and retain

customers, its competitiveness, and its ability to deliver on its long-

term strategy. There is an increased focus by regulators and

supervisors on customer protection, suitability and inclusion across the


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Risk factors continued

4.4

Changes in tax legislation may result in adverse tax

consequences for the Group’s business, financial

condition, results of operations and prospects.

markets in which the Group operates, thereby increasing regulatory

compliance and reputational risks to the Group in the event the Group

is unable to effectively implement the regulatory changes and

reforms.

Prudential is, and in the future may continue to be, subject to legal

and regulatory actions in the ordinary course of its business on

matters relevant to product sales (including sales distribution

practices and product suitability) and the delivery of customer

outcomes. Such actions relate, and could in the future relate, to the

application of current regulations or the failure to implement new

regulations, regulatory reviews of broader industry practices and

products sold in the past under acceptable industry or market

practices at the time (including in relation to lines of business that are

no longer active) and changes to the tax regime affecting products.

Regulators may also focus on the approach that product providers use

to select third-party distributors and to monitor the appropriateness

of sales made by them and the responsibility of product providers for

the deficiencies of third-party distributors.

4.3

Litigation, disputes and regulatory investigations may

adversely affect Prudential’s business, financial

condition, cash flows, results of operations and

prospects.

Prudential is, and may in the future be, subject to legal actions,

disputes and regulatory investigations in various contexts, including in

the ordinary course of its insurance, asset management and other

business operations. These legal actions, disputes and investigations

may relate to aspects of Prudential’s businesses and operations that

are specific to Prudential, or that are common to companies that

operate in Prudential’s markets. Legal actions and disputes may arise

under contracts, regulations or from a course of conduct taken by

Prudential, including individual claims, class action litigation,

arbitration, enforcement proceedings and other regulatory or

governmental actions including government investigations. Although

Prudential believes that it has adequately provided in all material

respects for the costs of known litigation and regulatory matters, no

assurance can be provided that such provisions will be sufficient or

that material new matters will not arise. Given the large or

indeterminate amounts of damages sometimes sought, the

possibility of fines, penalties, remediation costs or other sanctions and

the inherent unpredictability of litigation and disputes, it is possible

that an adverse outcome could have a negative effect on Prudential’s

business, financial condition, cash flows, results of operations and

prospects.

In addition, Prudential operates in some jurisdictions in which the

legal framework for the enforcement of contracts can be

unpredictable. As a consequence, the enforceability of legal

obligations and their interpretation may change or be subject to

inconsistent application, which could adversely affect Prudential’s

legal rights.

Tax rules, including those relating to the insurance industry, and their

interpretation may change, possibly with retrospective effect, in any

of the jurisdictions in which Prudential operates. Significant tax

disputes with tax authorities, and any change in the tax status of any

member of the Group or in taxation legislation or its scope or

interpretation could affect Prudential’s business, financial condition,

results of operations, and prospects.

The Organisation for Economic Co-operation and Development (OECD) is

currently undertaking a project intended to modernise the global

international tax system, commonly referred to as Base Erosion and Profit-

Shifting 2.0. The project has two pillars. The first pillar is focused on the

allocation of taxing rights between jurisdictions for in-scope multinational

enterprises that sell cross-border goods and services into countries with

little or no local physical presence. The second pillar is focused on

developing a global minimum tax rate of 15 per cent applicable to in-

scope multinational enterprises.

Based on the OECD statement issued on 8 October 2021, Prudential

does not expect to be affected by proposals under the first pillar given

they include an exemption for regulated financial services companies.

Under the second pillar, the OECD published detailed model rules in

December 2021 for developing a global minimum tax rate of 15 per

cent applicable to in-scope multinational enterprises, followed by

detailed guidance in March 2022 and further sets of guidance each

year, most recently in January 2026. Further guidance is expected.

Several jurisdictions in which the Group has operations 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 either 2024 onwards or 2025 onwards. In June 2025, Hong Kong,

where the Group’s ultimate parent entity is a tax resident,

implemented both the global minimum tax and domestic minimum

tax, effective from 1 January 2025. This brings the Group into scope

of the rules from 2025 onwards.

In compliance with the relevant IFRS accounting standard, the Group

will separately disclose any amount of global minimum tax included

in the Group’s IFRS tax charge for the relevant accounting period. The

rules are complex and require calculations to be undertaken at

jurisdiction level aggregating all in-scope entities in that jurisdiction

into a single calculation. The design of the rules when applied to

Prudential means that a global minimum tax is most likely to arise,

and could have an adverse impact on the Group’s business, financial

condition, results of operations and prospects, in periods where there

is positive investment performance in jurisdictions whose domestic

corporate income tax regimes have features favouring certain types

of investment.


	89 Prudential plc Annual Report 2025

Section 172 and stakeholder engagement

Engaging with all stakeholders

UK Companies Act, Section 172 Statement

The Board recognises the importance of taking the interests of its

stakeholders into consideration when making decisions, and each of

the Directors acts in a way that they consider, in good faith, is most

likely to promote the success of the Company for the benefit of its

members, in accordance with Section 172(1) of the Companies Act

2006. This requires each of the Directors to have regard, among other

matters, to the interests of the Company’s employees, the

Company’s relationship with customers, suppliers and others, and the

impact of the Company’s operations on the wider community and

the environment, while ensuring that the Company maintains a

reputation for high standards of business conduct and treats each of

its shareholders fairly. When making decisions on long-term proposals,

the Board considers how those proposals support our strategy or

otherwise impact the business and its various stakeholder groups in

the longer term.

This statement sets out how the Directors have had regard to the

matters set out in Section 172(1)(a)-(f) of the UK Companies Act

2006 and details how the Board builds and maintains strong

relationships with its stakeholders, how it gains an understanding of

their interests, needs and concerns, and how the strength of these

relationships contributes to the Company’s success. Underlying the

relationships with stakeholders are our purpose and values, which are

reflected in our culture.

How Directors are supported in their duties

Upon joining the Board, each Director is provided with an induction,

which includes a briefing on Directors’ duties, including those arising

under Section 172, and an overview of the Group’s stakeholders.

At each Board meeting, a briefing note reminding Directors of their

Section 172 duties is made available. In addition, members of the

management team who submit proposals to the Board for approval

highlight Section 172 criteria in their papers where relevant, pointing

out the potential impact their proposals may have on stakeholders or

how stakeholder views have been considered. Management and the

Chair regularly report to the Board on their interactions with investors,

governments and regulators. Non-executive Directors, primarily

members of the Sustainability Committee, engage directly with

employees and report back to the Sustainability Committee or Board

as relevant. This ensures that Directors are sufficiently briefed and

that any materials provided support a robust discussion on the impact

a proposal may have on the Group’s stakeholders.

A summary of the Board’s stakeholder engagement activities in 2025

is set out in the following pages.


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Section 172 and stakeholder engagement continued

Our stakeholders

To deliver sustainable value in the long term, we seek to align our business practices and operational impact with the expectations of our

shareholders and other stakeholders. Engaging with our stakeholders helps the Board to understand their priorities and how Board decisions

impact them. Listening to stakeholder perspectives can help prepare the Board to respond in the face of market risks and opportunities, while

allowing the Directors to foster mutually beneficial relationships with stakeholders.

In addition to shareholders, the Board has determined that the Group's key stakeholders are our customers, employees and communities.


	Investors		Customers

The Board recognises that regular engagement secures investors' trust and promotes their ongoing investment and support. The Board is committed to the long-term delivery of shareholder returns through a combination of value appreciation and dividends, and to the delivery of credit investors' contractual rights to servicing and principal.		Our customers are at the heart of what we do. Our purpose  is to be partners for every life and protectors for every future. At Prudential, it is our mission to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions.

	Employees		Regulators and governments

Our people are our most important asset and their engagement is fundamental to our ability to attract the talent we want, retain our current people and motivate them to achieve success for themselves and Prudential. To support our strategic goals, the Board’s focus is on creating an environment where talent thrives and drives sustainable success and which supports a diverse workforce with an inclusive mindset, fostering mutual respect and collective success.		We operate in highly regulated markets. Regulators supervise the insurance and asset management industries, promote general stability and protect policyholders. We are committed to maintaining a constructive and open relationship with all of our regulators to ensure mutual trust, respect and understanding. Governments and policymakers in the markets in which we operate are important stakeholders, setting and shaping the business and policy environment for the products and services we deliver.


	91 Prudential plc Annual Report 2025


	Investors

What matters to them

Our capital providers are looking for us to provide them with

operational and financial performance consistent with their

expectations on income and longer-term value creation.

Engagement metrics

– Ahead of the 2026 AGM, the Chair attended 17 shareholder

meetings.

– The Remuneration Committee Chair attended 16 shareholder

meetings and four meetings with investor bodies.

– The Senior Independent Director attended three shareholder meetings

and joined two of the Chair's shareholder meetings.

– Management (predominantly the CEO and/or CFO) held over 160

meetings with more than 180 institutions in Asia, North America,

UK and Europe, and the Middle East.

– Additionally, the Investor Relations team conducted over 280

meetings with investors during the year.

– All Directors attended the 2025 AGM in Hong Kong.

How the Group engages and communicates

– The Group seeks to maintain an open and active dialogue with

investors and other market participants to ensure that our strategy

is well understood and that investors’ perspectives and concerns

are communicated to the Board.

– Meetings in 2025 took a variety of forms including one-on-one and

group sessions and participation in investor conferences and

roadshows, organised in some cases by brokers. Engagement took

place in Hong Kong, Singapore, Mainland China, the US, Canada,

the UK and several other locations in Europe. In Hong Kong, the

Group continued its extensive face-to-face and online interactions

with stock commentators and retail brokers.

– Key areas of focus for investor engagement in 2025 included updating

investors on the Group’s progress in implementing strategy, operational

performance, the listing of ICICI Prudential Asset Management

Company, and the capital management update provided with our half-

year 2025 results. Investor relations activity in 2026 will continue to

focus on communicating the Group’s investment story and progress in

the execution of our strategy.

– We continue to take active steps to support an increase in liquidity

on the Hong Kong line of our stock (ticker 2378 HK), including

offering a scrip dividend alternative. We also continue to engage

with the London and Hong Kong stock exchanges, relevant

regulatory bodies and market participants to achieve faster and

lower-cost transfers of shareholdings from the London line.

– A significant proportion of our coverage research analysts are

located in Asia and actively cover our Asian regional peers. We will

continue working with Asia-based research franchises to support

and build coverage of the stock by those located close to our

operating markets. At the same time we will continue to provide

support to the European research teams and access to

management and local Investor Relations teams.

How the Board engages and communicates

The Board is made aware of major shareholder matters and concerns

through a variety of sources including regular reporting by the CEO,

the CFO and the Chief of Investor Relations.

The Chair holds an annual programme of engagement with

major shareholders. In June 2025, the Chair participated in an event

organised by the Investor Forum and attended by 17 institutional

investors which helped facilitate engagement with smaller

institutional shareholders beyond the major shareholders who are

offered meetings as part of the annual engagement programme. The

Chair updates the Board on key themes emerging from her meetings

which, during 2025 to 2026, included Chair and senior leadership

succession planning; strategy planning for the longer term; how the

Board considers capital allocation and the creation of shareholder

value; the use of technology and AI; and the Board’s strategy on non-

core assets. Shareholders also asked about strategy in key markets

and questions on operational and governance topics.

In addition, the Board invited a fund manager from one of our major

shareholders to share their perspectives and insights on the Group.

This direct dialogue, building on the external investor audit conducted

in late 2024, provided the Board with valuable, first-hand

understanding of shareholder views.

The Remuneration Committee Chair conducts a separate annual

engagement programme with key shareholders and proxy agencies

on the Directors’ Remuneration Policy (Policy) and its

implementation. During 2025, the Remuneration Committee Chair

undertook an extensive shareholder consultation process preparing

for shareholder approval of the Policy update at our 2026 AGM. The

Remuneration Committee Chair wrote to 51 shareholders including all

major institutional investors and the four shareholder representative

bodies with most influence over our investors, setting out the

proposals and inviting dialogue. Substantive feedback was received,


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Section 172 and stakeholder engagement continued

both in writing and through meetings. The consultation was

constructive and the Committee took shareholder views into account

when finalising the Policy ahead of the AGM.

The Senior Independent Director (SID) and Committee Chairs offer

separate meetings to major investors, as required. In particular, the

SID offered to meet with major shareholders to discuss the Chair

succession process and met with three shareholders (in addition to

joining two of the Chair's meetings with shareholders).

The Group’s 2025 AGM adopted a hybrid approach, which allowed

shareholders to attend either in person or online. All Board members

attended the AGM in person. We will continue to offer this hybrid

approach, which allows the greatest flexibility for all shareholders

worldwide, and our 2026 Annual General Meeting will be held in Hong

Kong as a hybrid meeting.

Impact of engagement on Board decision-making and

outcomes

The Board regularly discusses investor views as part of its decision-

making and seeks to deliver long-term sustainable value for investors,

while also taking into account the interests of other stakeholders.

Regular engagement with investors by the Chair and management,

with time allocated in each scheduled Board meeting for the

reporting of feedback, ensured that investor views were heard in the

boardroom and that the Board’s strategy and approach to key

decisions were understood by investors. By way of example, as part of

its consideration of capital allocation, the Board took into account

investor feedback when reviewing the Group’s capital allocation

framework (see case study for further details).

More broadly, management and the Board take into account

feedback from investor perception surveys in the way that they report

on, and communicate with, the investor community.

The Remuneration Committee Chair provided detailed briefings to

the Remuneration Committee and, where appropriate, the full Board

on matters raised by investors. The Remuneration Committee’s

advisers also provide updates on major investor and proxy agency

views, which the Committee takes into account in its decision-making.

Feedback from investors forms a key part in the Committee’s

formulation of the Directors’ Remuneration Policy and its

implementation.



	Capital allocation framework
Coming into 2025, the Board recognised that the Group was reaching an inflection point in its free surplus generation trajectory, reflecting the quality of new business written in recent years, together with ongoing actions to improve cash generation and reduce operating variances. Over the course of several discussions, the Board and Management reviewed the Group’s capital allocation framework, leading to the announcement of a refined framework in August 2025 alongside our Half-Year results. The Board’s consideration took into account the interests of investors, customers, employees and regulators. The Group’s refined capital allocation framework ensures that the Group maintains resilient capital buffers to ensure that it can withstand volatility in markets and operational experience, giving comfort to our regulators, customers and employees about the Group’s long- term sustainability. The refined framework balances the interests of investors, ensuring continued investment by the Group in business growth and the building of capabilities, whilst marking a shift towards a total return orientation, including a commitment to sustained dividend growth together with additional recurring capital returns.		The announcement also confirmed the Board’s intention to return to shareholders the proceeds from the IPO of part of the Group’s stake in its joint venture asset management business in India – ICICI Prudential Asset Management Company Limited (IPAMC). Having identified this as part of its annual strategy planning in late 2024 as an opportunity to crystallise value for shareholders, the Board evaluated this possibility in 2025 and oversaw a project to publicly list part of the Group’s stake. The listing of IPAMC on BSE Limited and National Stock Exchange of India Limited was successfully completed on 19 December 2025. Over the course of 2025, USD 1.2 billion was returned to shareholders through our ongoing share buyback programme. We are planning additional capital returns of $500 million of share buybacks in 2026 and $600 million in 2027. In addition, we will return $700 million in 2026 and $700 million in 2027 from the net proceeds from the completed IPO of IPAMC.


	Customers

What matters to them

Our customers want a seamless experience from a trusted provider

offering comprehensive solutions and affordable products tailored to

their needs and the stage in their lives.

Engagement metrics

– We are aiming for a top-quartile relationship net promoter score

(rNPS) by 2027. In 2025, six business units achieved top quartile

rankings. Eight out of ten business units improved their rNPS score

in 2025 compared with 2024,

– Our customer retention rate increased to 88 per cent at the end of

2025, an improvement from 87 per cent in 2024. To support this

ambition, regular NPS surveys are carried out and considered in

detail by the GEC, with the key outputs reported to the Board.

How the Group engages and communicates

We are committed to continue to evolve from a Group that is

organised around products and channels to becoming the most

trusted partner to our customers. Our extensive distribution channels

enable us to better understand and service our customers’ financial

needs. At the core of our work is helping customers achieve their

healthcare and financial goals.


	93 Prudential plc Annual Report 2025

We engage directly with our customers through contact centres,

dedicated account managers, face-to-face advice (where possible),

mobile phone apps and telephone technical support teams.

We launched the 'Customer Promise' in 2024. This includes five

simple commitments with every interaction:

1. We care for you

2. We are clear with you

3. We make it easy for you

4. We take quick action for you

5. We treat you fairly

The Customer Promise was rolled out to all of our customer service

and operations colleagues as well as agency staff. In 2025, we

launched a Group-wide programme to reinforce our commitment to

embedding Empathy, Customer-centricity, and the voice of the

customer into our culture and The PruWay.

How the Board engages and communicates

The Board receives regular reports from the Group CEO, the Regional

CEOs of the Strategic Business Groups and the CEOs of Local Business

Units on issues affecting customers, including the ongoing impact of

the macroeconomic environment and how the business is responding

to customer needs in individual markets.

The Board held one of its meetings in Indonesia and, as part of its

programme there, met with management teams from the

Conventional Life, Syariah and Eastspring businesses, and with agents

from the Conventional Life and Syariah businesses who shared their

first-hand experiences of how various customer initiatives are working

in practice and how management listen to the voice of customers.

The Board received insights on the challenges faced by customers,

including affordability, flexibility, and the impact of medical inflation.

The Board explored how our product development and service

delivery could be enhanced to address customer needs, including the

expansion of digital servicing capabilities, the launch of new health

and protection products, the strengthening of agency and banca

distribution channels, and specific incentives to ensure agents remain

equipped to deliver high-quality advice and support to customers.

Throughout the year, the Board continued to monitor and discuss our

customer NPS and received regular updates on NPS performance and

tracking customer metrics by way of a dashboard.

Impact of engagement on Board decision-making and

outcomes

The outcome of our operational teams’ engagement with customers

is communicated through the business and used to shape the design

of our products and our distribution, and ultimately informs strategic

decisions made at Board level. Decisions about which markets to

access, what kind of products to offer and how to develop our agency

force, our bank partnerships and our digital capabilities, are all driven

by an understanding of what customers want, based on engagement

with those customers. The Board engages with agents across our

businesses to gain deeper insights into customer requirements,

challenges and solutions.

Mindful of the impact of macroeconomic trends on the cost of living

for our customers, the Board monitors persistency and medical

inflation trends and discusses with management how customer

affordability is being considered, particularly for more vulnerable

groups of customers.

Affordability and access to quality healthcare remain central to our

customer promise and health strategy. The Board recognises that

high and rising medical costs are a significant challenge for customers

and a threat to the sustainability of health insurance. In response, we

have adopted a “Fight for Fair Prices” initiative. The Board receives

regular updates on the execution of the health strategy, progress

against affordability goals, and the impact of medical inflation on

customers. It continues to challenge management to innovate,

advocate, and manage costs as effectively as possible, ensuring that

our health offering remains accessible, relevant, and trusted by

customers.

Beyond internal cost management, we are actively engaging with

regulators, lawmakers, and industry bodies to advocate for healthcare

pricing reform and greater transparency. This advocacy is a key

differentiator for us and reinforces our role as a responsible insurer

and strategic partner to governments across the region.

Our “Guided Care” initiative further strengthens our customer promise

by providing end-to-end support throughout the patient journey, from

symptom triage and appointment booking to post-care follow-up.

Care is designed to address the fragmentation and confusion

customers often face, making the promise of help when you need it

most a tangible reality.


	Employees

What matters to them

Our employees are vital to our ongoing success. They want to be part

of a socially responsible organisation that operates with a strong

sense of purpose, where they can build fulfilling careers and feel a

sense of belonging.

Engagement metrics

– Our employee engagement survey generated over 30,000

comments, reflecting strong participation and engagement that

remains above the industry average.

– We ranked as a Tier 1 employer in the CCLA Corporate Mental

Health Benchmark (an improvement from Tier 2 in 2024).

How the Group engages and communicates

We are committed to building a workplace where every employee

feels respected and valued, has opportunities to grow and takes pride

in being part of Prudential. We prohibit any form of discrimination,

harassment, bullying and other types of misconduct or behaviour

which is contrary to our values and standards. This further reinforces

our commitment towards creating a safe and inclusive work

environment, which fosters and supports our people’s mental health

and wellbeing. We regularly refresh our people and culture agenda to

ensure alignment with business priorities, building a more equitable

working environment, where diversity of thought is celebrated.

The Group has put in place a consistent performance management

approach to drive individual and team performance where our employees

are assessed on what they achieve and contribute to the business strategy

and how they demonstrate our values every day, through our

performance management and pay framework. In addition, the Group

supports continuous learning and skill enhancement through the

PruAcademy, offering technical, behavioural, and leadership training,

aligned with business needs and individual growth.

The Group engages with the workforce throughout the year through

townhalls and employee surveys.


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Section 172 and stakeholder engagement continued

How the Board engages and communicates

The Board and management use a range of formal and informal

methods to engage, communicate with, and understand the views of,

the workforce. The Board has chosen to adopt a collective approach

to employee engagement, led by the Sustainability Committee. This

approach is considered appropriate given the geographical reach of

our Group and enables all Directors to interact directly with the

workforce, hear their views and questions, and it helps embed the

organisational culture. The Board is satisfied that the current

arrangements are effective and will continue to monitor them on a

periodic basis.

Key engagement activities included:

– In July, the Board held its meetings in Indonesia and as part of its

programme spent time with local leadership teams and top talent

from the various Indonesia businesses;

– When Board meetings were held in Hong Kong, Board members

spent informal time with head office and local leadership teams

and top talent;

– As part of his induction, Guido Fürer, joined by Jeremy Anderson,

visited Singapore and met with the leadership teams and top talent

from the Singapore Life business and Eastspring;

– George Sartorel participated in the International Women’s Day

2025 panel session and addressed questions from employees on

our DEI&B strategy; and

– Claudia Suessmuth Dyckerhoff attended graduation ceremonies of

our flagship leadership development programme, Transformative

Journey.

In addition to its direct engagement with the workforce, the Board

receives regular updates on employee matters from the CEO, the

Chief Human Resources Officer and local business leaders. The Board,

supported by the Sustainability Committee, oversees our people

strategy and receives updates on talent development and people

metrics and monitors these. The Sustainability Committee reviews in

detail the output from employee engagement surveys and actions

taken by management. This is also discussed at Board meetings.

The Sustainability Committee receives reports on Diversity, Equity,

Inclusion and Belonging (DEI&B), ensuring local insights contribute to

Group-wide decisions and that our people’s voices are heard at every

level.

An additional update on people and culture was provided to the

Board in December which highlighted the progress made in

embedding our culture and values. This was supported by the

Sustainability Committee’s review of workforce policies and practices

and their alignment with the Group’s purpose, values and strategy.

Impact of engagement on Board decision-making and

outcomes

The Board and Sustainability Committee discussed with management

the output of the employee engagement survey and how feedback

was being addressed through people initiatives. They also received

regular updates on people issues and discussed with management

the ongoing initiatives to support the workforce, including support for

staff wellbeing, embedding the Group’s values throughout the

organisation, and developing talent and a diverse and inclusive

workplace.

For more information, please refer to page 10 of the Sustainability

Report.

Members of the Sustainability Committee and other Non-executive

Directors spent time with employees to hear from them directly, and

shared feedback with the Board.

Through their engagements, the Board has gained deeper insight into

the Group’s operations across different markets; the strengths of the

local businesses and the challenges they face; how well the Group’s

culture and values are embedded within the leadership and across the

business; and other issues affecting employees.

Conversely, employees have had an opportunity to gain a better

understanding of the Board’s perspective and areas of interest, and

to provide direct feedback on matters of importance to them or their

area of the business.

The Board also considered how the organisation supports employees

in their development and monitored the impact made by our suite of

development programmes, assessing the need for leadership

development across the Group to support the workforce and grow the

talent pipeline. Taking into account employee survey results and the

strategic direction of the Group, the Board identified people and

culture priorities for 2026.


	Regulators and governments

Regulators

What matters to them

Our regulators protect customers’ interests and set the framework

within which we operate as a financial services group. They regulate

and supervise the insurance and asset management industries,

promote their overall stability and protect policyholders and other

customers.

Engagement metrics

– The Chair of the Board, the Chairs of the Risk and Audit

Committees and senior management met with the Hong Kong

Insurance Authority (HKIA) and other key regulators of the Group

during the Supervisory College meeting in 2025. The Supervisory

College serves as a forum for the Group’s key regulators to

coordinate their supervision of the Group and its subsidiaries.

How the Group engages and communicates

We operate in highly regulated markets and are committed to

maintaining constructive and open relationships with all our


	95 Prudential plc Annual Report 2025

regulators, with the aim of fostering mutual trust, respect and

understanding.

Prudential Corporation Asia Limited is a designated insurance holding

company under the Hong Kong Insurance Ordinance and is subject to

the HKIA’s Group-wide Supervision (GWS) Framework.

The Group's senior management, including key persons in control

functions, meet with the HKIA and other regulators as appropriate.

Additionally, senior management, together with the Chair of the

Board and the Chairs of the Audit and Risk Committees as required,

meet at least annually with the Supervisory College, which comprises

regulators responsible for supervising Prudential's key markets.

Discussions cover areas such as capital, risk management and

updates on key projects impacting Prudential and the wider industry.

An agreed set of management information is shared with the HKIA

on a regular basis.

Prudential also participated in the HKIA’s AI Cohort Programme,

contributing to the development of AI guidelines for the insurance

sector.

In addition, our local businesses communicate and engage with their

respective local regulators to maintain constructive and open

relationships.

Throughout 2025, Prudential engaged extensively with the

International Association of Insurance Supervisors and key

international bodies including the Institute of International Finance,

Geneva Association and the American Council of Life Insurers,

contributing to policy discussions on systemic risk, climate related

supervision, protection gaps, AI governance and the Insurance

Capital Standard.

How the Board engages and communicates

During 2025, the Risk Committee oversaw the progress of the

management actions to address the observations set out in the 2024

Management Letter issued by the Supervisory College.

The Chair of the Board, together with the Chairs of the Audit and Risk

Committees and members of the Group's senior management,

attended an in-person Supervisory College meeting in December

2025. Following the meeting, a Management Letter setting out key

observations arising from the College discussions, as well as the

actions expected of the Group, was shared with the Board in March

2026. In response, the Group will prepare a letter, outlining its

committed actions to address the observations and will track the

implementation of those actions, overseen by the Risk Committee.

The Chair and the GEC led engagement with regulators in our

markets during 2025, focusing on key international fora, engaging in

connection with regulatory approvals, expanding market access and

championing sustainable finance and healthcare reform.

Particular highlights were:

– Engagements with the People's Bank of China and the National

Financial Regulatory Administration in China where CICTIC-

Prudential Life received approval to issue perpetual securities in

January 2026, strengthening solvency and supporting compliance

with C-ROSS II.

– Engagement with Bank Negara in Malaysia, where Prudential

increased its stake in Prudential Assurance Malaysia Berhad, its life

insurance joint venture.

– Proactive engagement with the government in India supported the

setting up of a standalone health insurer and ICICI Prudential

Asset Management Company's successful listing on 19 December

2025 on the BSE Limited and National Stock Exchange of India

Limited.

– In Singapore, the CEO met with the Monetary Authority of

Singapore to discuss the need for system-wide reform. The Chair

also engaged the Ministry of Health to reinforce Prudential’s

commitment to sustainable private healthcare.

– The CEO met with the Deputy Prime Minister, Ministry of Finance

and State Securities Commission of Vietnam to support the

government’s ambition to increase insurance penetration and

develop an International Financial Centre (IFC) in Ho Chi Minh

City.

– In Taiwan, the CEO met with the Financial Supervisory Commission to

support the market’s development as an asset management hub.

The Board received regular updates throughout the year on

significant engagement with the HKIA and other key regulators.

Impact of engagement on Board decision-making and

outcomes

Feedback from regulatory engagement, including the Supervisory

College Management Letter, helps shape the Risk team’s focus areas

and informs the agendas of the Board and its principal committees,

particularly the Risk and Audit committees.

During 2025, the Board discussed and approved various matters and

documents required under the GWS Framework, including the Group’s

Own Risk and Solvency Assessment.

Engagements across Prudential's key markets facilitated a number of

initiatives including the issue of perpetual securities in China, the

launch of a standalone health insurer and the IPO of ICICI Prudential

Asset Management Company in India, as well as the increase in

ownership of Prudential Assurance Malaysia Berhad in Malaysia.

Governments

What matters to them

Governments influence the business environment, policies and

regulations, impacting how companies operate within the local

economy and contribute to society. The way governments interact at

the international level shapes the broader operating environment for

our organisation as a global business.

Engagement metrics

– CEO visits to 11 markets;

– Chair visits to three markets and participation in two major

international climate finance and development global meetings;

– The CEO serves on the Monetary Authority of Singapore’s

international advisory body and met with Deputy Prime Minister

Gan Kim Yong;

– The Chair serves on the Shanghai government’s international

business advisory body and met with Chinese Vice Premier He

Lifeng; and

– In July, the Board visited Jakarta, and the Chair and CEO met with

Indonesian President Prabowo.

How the Group engages and communicates

We engage with governments and policymakers in a number of ways:

directly and through industry and membership organisations. This

engagement helps us to better understand government priorities and

to contribute to developments; it also informs our approach to

international and local-level policy and regulations, and our approach

to supporting and contributing to sector and economic developments

across the markets in which we operate.

Through 2025, we engaged with governments and policymakers from

across Asia and Africa to discuss policy priorities and share best practices,

including for insurance and asset management, financial inclusion,

climate change and sustainable finance, healthcare and technology.

Climate-related health risks have been a consistent feature of government

and industry dialogue across our markets throughout the year. We


	96 Prudential plc Annual Report 2025


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Section 172 and stakeholder engagement continued

supported policy inputs to the Malaysian ASEAN Chairmanship, including

on data, inclusive insurance, and climate and health.

How the Board engages and communicates

The Board regularly receives and discusses government, (geo)political,

policy, macro-economic and regulatory developments from the Chief

Government Relations & Policy Officer, CRCO and CEO.

On behalf of the Board, the Chair engages with key government

stakeholders in a number of ways throughout the year, including

bilateral meetings and at public events. Examples in 2025 include

meetings and engagements with government officials and regulators,

including in and from Hong Kong, the UK, Singapore, China, Malaysia,

India, Vietnam and Zambia.

During the Board’s visit to Indonesia in July, the Chair and CEO met

with the President Prabowo Subianto and Minister for Health Budi

Gunadi Sadikin. They witnessed the official signing of a

Memorandum of Understanding between the Indonesian Ministry of

Health and Prudential, which established a strategic framework for

capacity-building, digital-health innovation, and other support to

advance Indonesia’s national Health Transformation agenda.

Engagement also took place in international fora and with

international regulatory bodies, standard setters, and multilateral

development banks, including at and during the World Bank/IMF

Spring and Annual Meetings, London Climate Week, and through the

Chair’s Board membership of the IIF.

Areas of discussion during 2025 included:

– Insurance and savings sector development;

– Capital market development;

– Healthcare, health insurance, access and affordability, including the

impacts of medical price inflation;

– Financial inclusion;

– Climate change and sustainable finance; and

– Technology and innovation.

These were also the focus of engagement with the IAIS, where Prudential

contributed to various consultations during the year; a joint IAIS-World

Bank paper to the G20 on insurance protection gaps; and in the agenda

of the IAIS Annual Conference, including a panel with the Chair on the

role of insurance in capital market development, transition finance, and

wider public-private finance for climate and development.

The Board also engages through the CEO. In 2025, the CEO

undertook a range of market visits and met with senior government

officials and regulators to gain insights and exchange perspectives to

support effective implementation and execution of our strategy. In

November, he participated for the third consecutive year as a

member of the MAS International Advisory Panel.

Impact of engagement on Board decision-making and

outcomes

Engagement with governments contributes to better understanding

and analysis at Board deliberations of the role we can play in our

chosen markets and the impact of public policy and regulation on our

strategy, the design and delivery of our products and services, and our

investments. It helps to inform the Board’s opportunity and risk

analysis and improves understanding of where we can contribute to

public policy goals. The Board also factors regulatory policy trends

into scenario analysis which underpins the Board’s strategic decisions.

In the area of climate change, engagement with governments has

informed our approach to our Sustainability strategy and specifically

the pathways for each of our markets, the challenges and

opportunities, and the realities of securing a just energy transition

alongside wider development goals. Focus on healthcare policy and

regulation, including the impact of medical price inflation, has

informed our health strategy, including as part of our deep-dive

during the July 2025 Board meeting. Prudential engaged

collaboratively with regulators, health ministries, and relevant

government stakeholders, both directly and through local industry

associations, to exchange information on product development,

claims, and emerging trends. These efforts aimed to inform and

influence regulations and policies targeting healthcare inflation

across key ASEAN markets and Hong Kong.


	Communities

What matters to them

The communities in which we operate are affected by Prudential,

including at a societal and environmental level. Communities want

sustainable businesses that benefit the local community.

Engagement metrics

– Prudential invested $16.1 million in community programmes

during 2025;

How the Group engages and communicates

Our philanthropic arm, Prudence Foundation, remains central to our

commitment to building resilient communities. In 2025, the Foundation

implemented its refreshed strategy, focusing on two key areas:

1 Empowering individuals through financial literacy and inclusion; and

2 Enhancing climate and health resilience among vulnerable

communities.

Recognising the growing intersection of climate change and health,

we pivoted our community investment strategy in early 2025 to

strengthen resilience against climate-related health risks and

launched initiatives to complement our Climate and Health Resilience

Fund (CHRF), established in 2024.

We are also shaping the global dialogue on climate-health resilience

through our collaboration with the Asian Venture Philanthropy

Network (AVPN). Through these efforts, we aim to deliver impact

today while building system-level partnerships for lasting change

tomorrow - aligning with our broader sustainability strategy to create

real-world impact and long-term value for every life, for every future.

For a more detailed discussion of sustainability initiatives and climate

action and the impact on wider society, please read our Sustainability

Report.


	97 Prudential plc Annual Report 2025

Impact of engagement on Board decision-making and

outcomes

The Sustainability Committee oversees our community engagement

and investment activities on behalf of the Board. In 2025, the

Sustainability Committee received updates on the Prudence

Foundation’s core strategic focus on financial literacy and climate &

health resilience and discussed the alignment of the Foundation's

activities to the Group Sustainability strategy and how to assess the

impact of its activities.

For more information, please refer to page 10 of the Sustainability

Report.


	Suppliers

What matters to them

Our suppliers look for mutually beneficial business relationships and

reliable business partners.

Engagement metrics

– Around 7,500 suppliers supporting our businesses globally;

– Around 250 staff attended modern slavery risk awareness training

across our markets, with representation from procurement

managers, risk assessors, legal teams and sustainability

representatives;

– Average time to pay invoices was 33 days in the UK; and

– In the UK, over 225 small suppliers have been paid within 10 days

since the launch of our Small Supplier Accelerated Payment

Scheme, with payments of over £508,000 in 2025 to bring the

total since launch to £35 million.

How the Group engages and communicates

We use third-party suppliers and outsourcing providers to allow us to

focus on our core business strengths and reduce costs.

We use a Group Third-Party Supply and Outsourcing Policy

consistently throughout the Group to ensure we articulate clearly how

we work with suppliers and our expectations of them. The policy is a

core part of our system of governance. It sets out our position on

supply chain management, outlining our approach to due diligence,

selection criteria, contractual requirements and ongoing monitoring

of our supplier relationships. The policy also supports compliance with

the Hong Kong IA’s Group-wide Supervision Outsourcing guidelines.

Modern slavery

Prudential is committed to ensuring that slavery, human trafficking,

child labour or any other abuse of human rights has no place in our

organisation or supply chain. Our processes include responsible

supplier risk assessments and Responsible Supplier Guidelines to

further promote the development of a sustainable and ethical supply

chain. Our Modern Slavery statement can be found at

www.prudentialplc.com/en/investors/governance-and-policies/

policies-and-statements

Payment terms

In order to demonstrate our ongoing commitment to supporting our

supply chain, we continued to provide payment assistance in 2025 to

our small suppliers.

Our standard contractual payment terms in the UK provide for

payment to suppliers within 30 days after the invoice date. For

smaller suppliers with under 100 employees, our Small Supplier

Accelerated Payment Scheme aims to pay suppliers in as little as 10

days after the invoice date.

How the Board engages and communicates

The Board approves the annual register of Group material outsourcing

suppliers, as required by the Hong Kong IA and receives updates on key

supplier relationships as part of operational and business reviews, focusing

on various parts of the Group.

Key Group material outsourcing supplier relationships are also

considered as part of the strategy and operational plan discussed and

approved by the Board annually.

The Board, supported by the Sustainability Committee, reviews and

approves the Group’s Modern Slavery statement annually. The Risk

Committee has oversight of our Third Party Supply and Outsourcing Policy.

Impact of engagement on Board decision-making and

outcomes

The Risk Committee continues to focus on third-party and

outsourcing management as one of the top risks for the Group and a

third-party risk management framework has been established to

strengthen first- and second-line oversight. Through the introduction

of Responsible Supplier guidelines in 2022, we have sought to

progressively introduce the same measures deployed in the UK to our

Asia and Africa supply chain. For more information, please refer to our

most recent Modern Slavery statement on our website. We also

introduced measures to understand a supplier’s position on ethical

labour standards, health and safety and equal opportunities for our

material suppliers and those that provide services in areas deemed to

pose higher modern slavery risks.

We remain committed to learning how to improve our own due diligence

and monitoring, and we engaged an external party to benchmark our

processes against industry best practice and identify improvements.

The Board reviewed our Code of Conduct in 2025 and expects that

external stakeholders, including suppliers, abide by principles

consistent with those of Prudential. We choose to partner only with

those who can meet our rigorous ethical standards.


	98 Prudential plc Annual Report 2025


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Sustainability

Building inclusive futures in Asia and Africa

Prudential provides life and health insurance and asset

management in Greater China, ASEAN, India and

Africa. Our mission is to be the most trusted partner

and protector for this generation and generations to

come, by providing simple and accessible financial and

health solutions.

Read on to discover these stories and other milestones as we work to build

resilient, inclusive futures for the communities and markets we operate in.

For full details, please see our FY2025 Group Sustainability Report.


	99 Prudential plc Annual Report 2025

We are Prudential.

For every life, we are Partners.

For every future, we are Protectors.


	Strategic pillars

Enhancing customer experiences	Technology-powered distribution	Transforming health business model

	Group-wide enablers

Open-architecture technology platform	Engaged people and high-performance culture	Wealth and investment capabilities


Sustainability
Delivering real-world impact and long-term resilience
Simple and accessible health and financial protection	Responsible investment	Sustainable business

– Developing sustainable and inclusive offerings – Delivering partnerships and digital innovation for health outcomes – Building resilient communities through community investments	– Financing a just and inclusive transition – Decarbonising our portfolio – Mainstreaming responsible investments in emerging markets	– Establishing sustainable operations and value chain – Empowering our people – Harnessing thought leadership to shape the agenda



		A foundation of good governance and responsible business practices Corporate governance, conduct and ethics, risk management, external reporting and benchmarking



Key targets For more on how we are progressing our targets, see p. 101	Deliver a 55% reduction in the carbon emissions intensity of our investment portfolio by 2030 against our 2019 baseline	Commit $6 bn of Financing the Transition (FTT) portfolio investments by 2030 to support a lower-carbon future (measured from 2024)	Engage with the companies responsible for 65% of absolute emissions in our investment portfolio	Deliver a 25% reduction in our operational emissions intensity from a 2016 baseline, and abate the remaining emissions via offsetting initiatives to become carbon neutral across our Scope 1 and Scope 2 emissions (market based) by 2030	Ensure 42% of the Group Leadership Team (GLT) are women by the end of 2027	All people managers to have a sustainability -linked goal by 2026


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Sustainability continued

Sustainability governance organisation chart



	Prudential plc Board Responsible for strategy, which includes all aspects of sustainability. The Board delegates oversight of sustainability matters to the Sustainability Committee, including climate, people, culture, and communities, and is advised by the Committee on the sustainability strategy.


	Risk Committee Oversees overall risks including sustainability-related risks, Group Risk Framework and related policies Supports the sustainability strategy by ensuring sustainability risks, including climate-related risks and opportunities, people and culture are effectively managed		Sustainability Committee Assists the Board in providing leadership, direction, and oversight of the Group’s sustainability strategy, including climate matters. Identifies sustainability-related risks, in collaboration with the Risk Committee Oversees environmental (including climate) responsibilities and reviews all sustainability reporting Oversees implementation of external sustainability-focused commitments		Audit Committee Oversees the Group’s Annual Report and Accounts, of which the sustainability section is an integral part Oversees whistleblowing programme Oversees non-financial reporting controls and assurance		Remuneration Committee Supports the sustainability strategy through alignment of the Group’s incentive plans to external sustainability targets



	Chief Executive and Management Team The Chief Executive has responsibility for implementation of the Group’s sustainability strategy, including people, culture and climate change risks and opportunities, with support from the executive management team


	Group Executive Sustainability Committee (GESC) Chaired by the CFO, the committee oversees climate-related activities aligning with TCFD and ISSB S2 requirements, and reviews results of climate scenario analysis with the Group Technical Actuarial Committee while also focused on the holistic implementation of sustainability matters that are material to the Group.		Group Investment Committee (GIC) Chaired by the CIO, the committee oversees Group-wide investment performance, responsible investment activities and commitments, and risk exposures, including those impacting policyholders

	Group Sustainable Finance Council Sub-committee of GIC, ensures transparency in sustainable finance definitions and qualifies investments based on these definitions Chaired by Chief Sustainability Officer

	Local business units Supports the implementation of the Group’s sustainability strategy, including climate change risks and opportunities. Local Sustainability Leads, Task Forces, and Committees support local risk management, regulatory compliance, and implementation


	101 Prudential plc Annual Report 2025

Targets and progress

As a responsible insurer, asset owner, and asset manager, Prudential

sets robust sustainability targets spanning short- and long-term

horizons. These highlight our ongoing commitment to create value

while managing the risks of climate change across our businesses.

We have remained committed since 2021 to our ambition of

becoming a Net Zero^† Asset Owner by 2050. We have also set interim

targets that reference the Paris Agreement to demonstrate annual

progress (see table). In 2025, we continued to decarbonise our

investment portfolio by reducing its weighted average carbon

intensity (WACI). We also made notable progress towards Financing

the Transition (FTT) investments, based on the criteria established by

our FTT framework introduced last year. For more information on our

progress against our investment target, please refer to our

Responsible investment section on page 110.

Further information on how the carbon footprint of our investment

portfolio is calculated in line with industry practice and standards is

provided in the Basis of Reporting.

This year we updated our Climate Transition Plan. This clearly shows

alignment between our climate and business actions, focusing on risk

management and opportunities, and fulfilling our fiduciary duties to

our policyholders and shareholders. We have considered the

Transition Plan Taskforce (TPT) Disclosure Framework and other

external guidance on transition plans when drafting this disclosure,

taking into account these recommendations while ensuring our

Climate Transition Plan remains relevant for our strategy and

stakeholders. Central to our updated plan is a robust governance

structure, which strengthens board and management oversight and

introduces clear incentives and remuneration policies. These

measures are designed to drive accountability and ensure meaningful

progress toward our climate-related objectives. Our updated Plan

adopts a three-pronged approach, driving the transition across our

investments, operations, and insurance products. For more details,

please refer to Climate Transition Plan, and our Managing climate

risks and opportunities section on page 113.

We are committed to fostering a culture of belonging, talent vitality,

capability building and meritocracy. We do this by supporting

professional development and implementing targeted programmes

that promote talent and foster an equitable and meritocratic

workplace. This is evidenced by our stated goal of ensuring that 42

per cent of our Group Leadership Team (GLT) are women by 2027. To

continue embedding sustainability into our business strategy, more

than 7,100 employees in our Group offices and life businesses set a

sustainability-linked goal in 2025.

†In the context of Prudential, net zero and carbon neutral have the following

meanings: ‘net zero’, in regard to greenhouse gas emissions, refers to a state by

which the greenhouse gases going into the atmosphere are reduced as close to

zero as possible and any residual emissions are balanced by removals from the

atmosphere. When translating these emissions to the activities in the value chain

of an organisation, net zero is a state in which the activities of the value chain for

an organisation result in net zero greenhouse gas emissions, in a time frame

consistent with the Paris Agreement. ‘Carbon neutral’ for an organisation refers to

relying on carbon offsets to balance its value chain's greenhouse gas emissions,

whereas net zero refers to prioritising reductions in an organisation’s value chain

greenhouse gas emissions to as close to zero as possible. Only then are any residual

emissions balanced by removals from the atmosphere.


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Sustainability continued



	Responsible investment			Sustainable business

Deliver a 55% reduction in the carbon emissions ^# intensity of our investment portfolio by 2030 against our 2019 baseline. During 2025, we reduced the weighted average carbon intensity (WACI) of our portfolio by 53% against our 2019 baseline.		On track	Deliver a 25% reduction in our operational emissions intensity from a 2016 baseline, and abate the remaining emissions via offsetting initiatives to become carbon neutral across our Scope 1 and Scope 2 emissions (market based) by 2030 We have reduced our emissions intensity by 83% from our 2016 baseline, achieving a ratio of 0.38 tCO2e/FTE in 2025. This puts on us on track to meet our 2030 target of 1.65 tCO2e/FTE.		On track
		More detail on p. 110			More detail on p. 111


Commit $6 bn of Financing the Transition (FTT) portfolio investments by 2030 to support a lower-carbon future. As of 31 December 2025, we have committed $1.5 bn to FTT in vestments since 2024 through our FTT framework.		On track	Ensure 42% of the Group Leadership Team (GLT)‡ are women by the end of 2027. At 31 December 2025, the representation was 38%, compared to 37% in 2024.		On track
		More detail on p. 110			More detail on p. 111


Engage with the companies responsible for 65% of absolute emissions in our investment portfolio. This is an ongoing annual target, which we have fully met in 2025 for the identified cohort of companies.		On track	All people managers to have a sustainability-linked goal by 2026^^ In 2025, more than 7,100 employees in our Group head offices and life businesses (including all people managers) set at least one sustainability- linked goal, while Eastspring Investments adopted sustainability goals for specific people managers linked to the nature of their role and business priorities.		On track
		More detail on p. 110			More detail on p. 111


# Carbon emissions refers to carbon dioxide equivalent emissions (CO2e) per the Greenhouse Gas (GHG) Protocol, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).			# For more details on our approach to carbon offsets, please see the relevant discussion within our 'Managing climate-related risks and opportunities' section. ‡ GLT is defined as the direct reports of all Group Executive Committee members, all CEOs of our Life businesses and their direct reports, all CEOs of our Eastspring Investments businesses, and select roles that are essential in delivering our strategy. ^^ While the target is phrased differently from prior years, its substance remains identical.


	103 Prudential plc Annual Report 2025

Our 2025 Materiality Assessment

Our detailed four-step approach is outlined here:

2025 Materiality assessment process

Our 2022 materiality topics were based on impact materiality. By referencing the MSCI ESG

Materiality Map and SASB Materiality Finder in 2025, we further identified topics most relevant

to our business as a predominantly emerging market life and health insurer and asset owner.

Together with topics central to our sustainability strategy, including Digital health innovation,

Financial literacy, and Health risks from a changing climate, we refined the list to establish our

nine strategically important topics on a double materiality basis.^2,3

Identify and

define

material topics

We engaged different internal and external stakeholder groups using a mixed mode of

online surveys and structured interviews. Stakeholders were asked to rank our material

topics by applying a double materiality lens, covering financial and impact dimensions.

This process enabled us to prioritise amongst our nine topics. Overall, more than 15,000

unique stakeholder responses were collected across all stakeholder groups.⁴

Prioritise topics

based

on stakeholder

views

We analysed initial results from each stakeholder group, based on their financial and

impact materiality rankings. We also applied varying ‘salience’ weightings to different

stakeholder groups when determining the overall rankings of our nine topics.⁵

Analyse and

evaluate

An internal workshop was held with various leaders across core business functions to

validate the results of the materiality assessment, ensuring relevance in addressing our

evolving business strategy and stakeholder needs. Finally, as the Chair of the Group

Executive Sustainability Committee (GESC), our Group Chief Financial Officer approved

and endorsed the materiality assessment, followed by the rest of the GESC members.

Validation and

approval by senior

management

Our sustainability strategy is not designed in isolation, but informed

by the expectations of those we serve and work with. We engage our

stakeholders regularly across multiple channels to understand their

evolving expectations and priorities. These interactions enable us to

capture timely feedback on how our business impacts them, and

informs our strategy and targeted action plans.

Using the materiality assessment, a tool that prioritises key issues

impacting our business and society, we evaluated a diverse set of

stakeholder views related to sustainability. In 2025, we conducted our

most comprehensive exercise to date. Over 15,000 stakeholders

provided inputs, enabling Prudential to assess the impacts, risks and

opportunities of nine material topics of strategic importance to our

business and stakeholders.

We also expanded the scope of our engagement to include 'Civil

society' as a new stakeholder group. These include the global NGOs

that we collaborate with via Prudence Foundation, as well as local

organisations in Hong Kong and Taiwan. Finally, we applied a double

materiality lens, capturing both the financial risks and opportunities

these topics present for our business and the impacts our operations

have on the economy, environment, and society, to reflect global best

practices.

We remain committed to addressing stakeholder concerns through

the execution of our sustainability strategy pillars. This, in turn,

enables us to drive our efforts towards long-term, sustainable value

creation for all.

(1) For the definitions of the nine material topics, see page 106.

(2) The MSCI ESG Industry Materiality Map reflects latest research and insights and is refreshed every year. We utilised the Life and Health Insurance sector-specific topics. For

more information, please refer here.

(3) The Sustainability Accounting Standards Board (SASB) Standards are a source of guidance for applying ISSB IFRS S1. The SASB Materiality Finder helps companies identify

and disclose material information about sustainability-related risks and opportunities. For more information, please refer here.

(4) Civil Society and Customer stakeholder groups were not asked to assess the financial materiality of our sustainability topics.

(5) Salience weightings were applied based on different stakeholder groups’ claims of power, urgency and legitimacy. Power refers to the level of influence of each stakeholder

group, urgency refers to the degree to which the stakeholder group calls for immediate action and legitimacy refers to the extent to which the involvement of a stakeholder

group is appropriate.


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Sustainability continued

Our material priorities

Understanding our impact

Our sustainability strategy is not designed in

isolation, but calibrated by the expectations

of those we serve and work with, and by the

impacts and risks that matter most. The

double materiality assessment acts as the

primary integration mechanism between

these stakeholder views and business

consideration, helping to identify and

prioritise key issues in terms of the impact on

society and the environment, as well as the

issues’ implications on our long-term value.

Stakeholder engagement

We engage our stakeholders regularly across

multiple channels to understand their evolving

expectations and priorities. These interactions

enable us to capture timely feedback on how

our business impacts them and informs our

strategy and targeted action plans.

This year, we engaged over 15,000

stakeholders, marking the Group's most

extensive stakeholder engagement exercise to

date. We also expanded the scope of our

stakeholder engagement to include Civil society

as a new stakeholder group – comprising NGOs

that we collaborate with via Prudence

Foundation, as well as local NGOs in Hong Kong

and Taiwan. Their inputs help us consider

community perspectives in our materiality

assessment and in some of our sustainability

initiatives, such as building resilient communities

through community investments.

We remain committed to addressing

stakeholder concerns through the execution

of our sustainability strategy pillars. This, in

turn, enables us to drive our efforts towards

long-term, sustainable value creation for all.



	Agents		Civil Society		Customers

Mode of engagement – Agency distributor survey		Mode of engagement – Civil Society engagement survey		Mode of engagement – Contact centres – Customer survey – Focus groups
Topics of interest as indicated by stakeholder group in 2025 – Attracting and developing talent – Health risks from a changing climate – Inclusive insurance – Investing responsibly – Protecting customer and data privacy		Topics of interest as indicated by stakeholder group in 2025 – Ethical business – Financial literacy – Health risks from a changing climate – Inclusive insurance – Investing responsibly		Topics of interest as indicated by stakeholder group in 2025 – Digital health innovation – Ethical business – Financial literacy – Investing responsibly – Protecting customer data and privacy


		Employees			Government and Regulators

Mode of engagement			Mode of engagement
– Employee engagement surveys – Employee sustainability engagements			– Consultations – Public events – Regulatory colleges			– Regulatory meetings (direct and indirect, eg with sector-wide/ industry bodies) – Roundtables
	Topics of interest as indicated by stakeholder group in 2025 – Health risks from a changing climate – Inclusive insurance – Investing responsibly – Protecting customer and data privacy – Reducing environmental impacts			Topics of interest as indicated by stakeholder group in 2025 – Ethical business – Financial literacy – Inclusive insurance – Investing responsibly – Protecting customer data and privacy



	Industry Bodies/ Associations		Investors		Rating Agencies

Mode of engagement – Desktop research – Regular engagement		Mode of engagement – Investor conferences – Regular meetings		Mode of engagement – Annual engagement and questionnaire completion
Topics of interest as indicated by stakeholder group in 2025 – Reducing environmental impacts – Investing responsibly		Topics of interest as indicated by stakeholder group in 2025 – Ethical business – Health risks from a changing climate – Inclusive insurance – Investing responsibly – Reducing environmental impacts		Topics of interest as indicated by stakeholder group in 2025 – Attracting and developing talent – Ethical business – Investing responsibly – Protecting customer data and privacy – Reducing environmental impacts


	105 Prudential plc Annual Report 2025

Our material priorities

Highest

Impact materiality

Financial

literacy

Health risks from a

warming climate

Reducing

environmental

impacts

Digital health

innovation

Financial materiality

Investing responsibly

Pursuing long-term financial returns while supporting the clean

energy transition, considering local energy security and social impact,

and integrating biodiversity and nature-related factors (where

financially material) to our investment and engagement processes.

Ethical business

Responsible governance practices that instil accountability at every

level of the Company and ensure clarity on expected high standards

of behaviour for fundamental issues.

Inclusive insurance

Distributing more affordable and accessible insurance products for

underserved customers, potentially unlocking new business

opportunities.

Protecting customer data and privacy

Safeguarding customers’ personal and financial information from

cyber threats, while collecting and using data responsibly.

Health risks from a changing climate

Developing products to help protect customers from heat waves, air

pollution, and the spread of diseases (eg malaria).

Investing

responsibly

Inclusive

insurance

Protecting customer

data and privacy

Ethical business

Attracting and

developing talent

Highest

Reducing environmental impacts

Actively lowering our operational footprint (ie Scope 1 and Scope 2

emissions), such as purchasing renewable power and energy

efficiency programmes, to address climate change.

Financial literacy

Helping individuals and communities learn about financial concepts

and planning to make informed financial decisions.

Attracting and developing talent

Supporting professional development and implementing targeted

programmes that promote talent and foster a culture of belonging,

talent vitality, capability building and meritocracy for employees.

Digital health innovation

Harnessing technological innovation (eg Artificial Intelligence/AI,

wearable devices, telemedicine) to improve the consumer experience.


	106 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Sustainability continued

Key Takeaways

Simple and accessible health

and financial protection

Page 109

To fulfil our purpose 'For every life, for every future', we seek to

close the protection gap. This includes designing products for

those historically priced out or excluded by cultural barriers, so

as to develop commercially viable, culturally-relevant solutions

to deepen resilience.

Sustainable business

Page 111

To deliver on our purpose, we need a workforce that connects

their daily roles to our broader impact. We also seek to

manage our own environmental footprint, to support the

resilience of our businesses in the markets they operate in.

Responsible investment

Page 110

Our responsible investment strategy recognises that excluding

high emitters does not always drive real-world decarbonisation.

This is reflected in our 'Financing the Transition' (FTT)

strategy, which broadens the investible universe to identify and

capture value in transition leaders.

Good governance and responsible business

practices

Page 113

A robust ethical culture requires governance that adapts to

emerging risks, ensuring our standards evolve alongside

changing technological advances, customer preferences, and

regulatory expectations.

Materiality assessment results

Our 2025 materiality assessment provided insights into which topics

are deemed to be important from both a financial materiality as well

as an impact materiality perspective.

The assessment concluded that our sustainability strategy is

addressing the most impactful topics, not only from the perspective

of where we could drive more impact but also confirming that those

are the ones with the highest financial impact to the business.

The material topics remained consistent with previous years, which

include Investing responsibly, Inclusive insurance and Protecting

customer data and privacy. This confirms that our Sustainability

strategy is still robust, as we are addressing the topics that are most

material for Prudential through our key initiatives (ie our Financing

the Transition Framework, and Inclusive Insurance Framework).

Stakeholders also ranked Health risks from a changing climate in the

mid-tier amongst material topics assessed, confirming the topic's

relevance to our insurance and Prudence Foundation initiatives.

To address the dynamic nature of the evolving sustainability

landscape, we asked some of our senior internal stakeholders to rank

the material topics over a forward-looking three to five-year horizon.

The results confirmed that Investing responsibly and Inclusive

insurance will continue to remain core priorities, while topics such as

Digital health innovation and Health risks from a changing climate

might also become more material. These insights shed light on the

possible future changes to our materiality assessment and enable us

to be prepared to adapt our sustainability strategy, pillars and key

initiatives accordingly.

The results of our materiality assessment feed directly into decision-

making at Group and business levels. They inform how we refine our

sustainability pillars and focus areas, the targets we set, and the

design of frameworks like our Financing the Transition (FTT) and

Inclusive Insurance frameworks. In the coming years, we will continue

to monitor our material topics and refine our materiality assessment

approach to stay aligned with market best practices and to address

stakeholder needs.


	107 Prudential plc Annual Report 2025

Our approach to sustainability reporting

We have observed our obligations under: (i) sections 414CA and

414CB of the UK Companies Act 2006; (ii) the UK’s Financial Conduct

Authority’s Listing Rules in respect of climate-related disclosures; and

(iii) the ESG Reporting Code contained in Appendix C2 Environmental,

Social and Governance Reporting Code to the Rules Governing the

Listing of Securities on the Stock Exchange of Hong Kong Limited

("HKEX").

In addition, our reporting this year complies with the new climate

disclosure requirements contained in the ESG Reporting Code (under

Part D of Appendix C2) of the HKEX Listing Rules. This aligns to the

ISSB S2 Climate-related Disclosures published by the International

Sustainability Standards Board (ISSB Standards).

The HKEX sets out five reporting principles, which we have addressed

as follows:


Materiality	The process of materiality assessment and stakeholder engagement is outlined in the Our material priorities section above.
Quantitative	Consistent with previous years, metrics have been provided in compliance with the HKEX requirements and voluntary adoption of the SASB Insurance Standard. An index to this report covers HKEX and SASB insurance requirements. Where appropriate, quantitative information is supplemented with relevant narratives and historical data.
Consistency	The FY2025 report is consistent with the FY2024 report to support compatibility.
Balance	We have endeavoured to provide an unbiased account of our performance and to use objective presentation formats.
Reporting boundary	Consistent with previous years, the scope of the sustainability section in the Strategic report and data therein (pages 99-152) is available in the Basis of Reporting, and excludes joint venture partnerships (notably our joint ventures in India and China and the Takaful business in Malaysia), unless otherwise stated.

We have made disclosures consistent with the TCFD

recommendations and recommended disclosures (see 'Managing

climate-related risks and opportunities' index on page 113). In line

with our ‘comply or explain’ obligation under the UK’s Financial

Conduct Authority’s Listing Rules, we can confirm that we have

made disclosures consistent with the TCFD recommendations and

recommended disclosures in our Annual Report. Our TCFD

disclosures also meet the climate-related financial disclosure

requirements contained in section 414CB of the Companies Act

2006.

We recognise that the UK is transitioning from TCFD towards the

IFRS Sustainability Disclosure Standards issued by the ISSB. As such,

we are actively working towards disclosing information in line with

these requirements once they are in force.

In line with HKEX guidance, the Group has sought limited assurance

on select indicators covering Scope 1, Scope 2 and Scope 3 financed

emissions, employee diversity, and the carbon footprint of our

Investment Portfolio. We appointed EY LLP (EY) to provide limited

independent assurance over these metrics. EY is also the Group’s

external auditor in FY2025.

The 'Managing climate-related risks and opportunities' index within

our Reference tables section contains further information on relevant

climate disclosures. Consistent with our previous disclosures, we also

report against the TCFD's supplemental guidance for asset owners,

on the basis of topic relevance, data availability, and suitability of

methodologies.


	108 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Sustainability continued

Simple and accessible health

and financial protection

Losing a loved one, getting a hospital bill you cannot shoulder, or

becoming a patient overnight: these moments change a life’s

trajectory. Our business exists for those turning points. As an insurer,

we work to give our customers peace of mind, while recognising that

some people may face challenges in accessing or maintaining

traditional insurance coverage.

Inclusive insurance is one way in which we consider these challenges.

Introduced in 2024, our Group-wide Inclusive Insurance Framework

guides the design of products and offerings where markets may fail

to offer coverage that people can access, afford, or need. In line with

guidance from the International Association of Insurance Supervisors

(IAIS), it applies to people who are excluded from traditional

insurance offerings, including those with special health needs,

individuals outside standard eligibility definitions, and groups that

may be underserved due to socio-economic or demographic factors.

As we seek to broaden access through more inclusive products in line

with our sustainability strategy, we are also connecting every step of

the customer journey, to keep prices fair and support better health

outcomes. This means working closely with the wider healthcare

system across our markets and adopting trusted technologies that

make it easier for patients to share critical information with their

healthcare providers. Guided by the wide range of budgets and

coverage requirements from a diverse range of customer profiles, we

aim to broaden our slate of just-right products built around real-life

needs and backgrounds.

Our community investment is aligned with our expertise and priorities

as protectors and partners. The Prudence Foundation focuses on

financial inclusion and climate-health resilience, whose work that

aligns with our core proposition and strengthens the communities we

serve. The result is to create a virtuous circle alongside like-minded

partners: stronger resilience for more people, and supporting long-

term, sustainable growth for Prudential.



	First to launch Syariah-compliant Takaful family product in the Philippines


	22 inclusive insurance products launched in markets to date


	$16.1m in community investment spend

	3.9+ million total students trained by Cha-Ching since 2016

Together, these efforts help us work towards our promise: to make

protection simple so it’s understood, affordable to fit household

budgets, available so it reaches more people in more places, and fair

so outcomes are ethical and trusted. This is how our core business

should build resilience for all, and how the inclusion lens turns that

resilience into shared value for customers, communities and our own

growth.


	109 Prudential plc Annual Report 2025

Responsible

investment

Prudential is a long-term investor across Asia and Africa. We invest the

premiums our customers entrust to us for the long term, and the

resilience of our investments allows us to pay claims and benefits for

many generations to come. As an asset owner, we face systemic

climate risks: physical risks from heat, floods and storms; transition

risks from policy, technology and market shifts; and nature-related

risks from ecosystem loss. Through an inclusion lens, we channel

capital toward a just and inclusive transition, instead of divesting

immediately from hard-to-abate sectors, to support the societies we

invest in while growing assets under management over time as

emerging markets prosper.

Our Financing the Transition (FTT) framework is an integral part of

our responsible investment approach, and clarifies definitions of

transition and green investments. This gives flexibility that emerging

markets need under the common but differentiated responsibilities

principle of the Paris Agreement, helping our asset managers uncover

overlooked opportunities and build real-economy resilience.

This year, we augmented the FTT framework to make climate

adaptation and nature-related opportunities explicitly investable.

Climate adaptation boosts resilience to physical impacts as we invest

in the resilience of infrastructure, improving water use, optimising

agriculture, and more. Nature-related opportunities protect and

restore natural capital, and developing solutions enables other

companies to reduce their pressure on nature. These two solution

classes will come alongside climate mitigation investments in our

portfolio, while broadening the investable universe to capture more

opportunities in line with our fiduciary duty to our policyholders and

shareholders.

A broader investable FTT universe also depends on the wider system

around us: policymakers, other institutional investors and asset

managers, as well as local issuers. As stewards of our customers' and

shareholders' assets, we advocate for a just and inclusive transition by

leveraging our influence as an asset owner. It begins with policy

engagements with ministries, central banks, and regulators, extends

to market advocacy, and shapes the investment mandates and voting

guidelines used by our asset managers.



	Committed additional $400m of FTT portfolio investments in 2025, bringing the cumulative committed total to $1.5 billion since 2024. We continue to progress against our target to commit $6 billion of FTT portfolio investments by 2030.

	Reduced Weighted Average Carbon Intensity (WACI) in our in-scope investment portfolio by 53% in 2025, against our 2019 baseline. Our target is to reduce WACI by 55% in 2030, against our 2019 baseline.

With less than half a decade to 2030, we remain on track to cut our

portfolio’s weighted average carbon intensity by 55 per cent against

a 2019 baseline, a core commitment in our Climate Transition Plan.

Beyond the numbers, our commitment to an inclusive transition

shapes how we manage systemic climate and nature risks in line with

our fiduciary duty to our policyholders and shareholders, finance

climate solutions across mitigation, adaptation and nature, and build

a resilient portfolio that lets us weather shocks, honour claims and

compound long-term value for clients, communities and our business.

See more details on page 24 in our Group Sustainability Report.


	110 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Sustainability continued

Sustainable business

Prudential is a responsible company, striving to reduce its

environmental footprint, strengthen its standards, and

empower people to build sustainability and inclusion into

day-to-day decisions.

We are reducing our carbon footprint and strengthening our supply

chain by embedding clear environmental and social expectations into

how we do business. This includes ongoing progress in driving energy

efficiency, and continuing to conduct supplier due diligence and

engagement, so that risks linked to human rights, climate and nature

are managed across our value chain.

We continue to invest in our employees, by providing them with the

tools needed to support business outcomes and deliver real-world

impact in line with our sustainability strategy. This includes rounding

out our sustainability curriculum, such as e-learning modules tailored

for investment teams. Sustainability goals are being set by all people

managers at Prudential, aligning incentives with outcomes such as

footprint reduction, inclusive products and services, stronger supplier

standards, and responsible use of data and Artificial Intelligence (AI).

We also convene and contribute, bringing emerging-market

perspectives to global conversations. Through partnerships and

thought leadership, we advocate for proportionate, implementable

standards and share what works on the ground, helping shape

solutions that reflect Asia and Africa’s realities.

Together, these actions make our business more resilient: lowering

costs and mitigating risks, improving operational reliability, and

earning the trust of customers, partners and regulators.

See more details on page 30 in our Group Sustainability Report.



	21% decrease in global absolute Scope 1 and Scope 2 (market-based) greenhouse gas (GHG) emissions compared to 2024

	66% of our global annual electricity use is covered by renewable energy contracts. In 2024, Prudential reached 58%

	38% of our Group Leadership Team are women (against our target of 42% by end of 2027). In 2024, Prudential reached 37%. Women make up 30% of our Group Executive Committee (GEC), the same as 2024

	7,100+ employees at our Group offices and life businesses (including all people managers) set at least one sustainability-linked goal in 2025.


	111 Prudential plc Annual Report 2025

Empowering our people

Prudential serves millions of customers across 20 markets in Asia and

Africa, each shaped by distinct cultural, economic, and regulatory

contexts. Our success depends on the expertise of local teams who

design, distribute, and adapt products to meet changing customer

needs. This diversity is our strategic advantage, as it deepens our

understanding of the markets we serve in and strengthens our ability

to deliver sustainable performance.

We believe that inclusion and belonging are essential to unlocking the

full potential of our people and business. Hence, our near-term

strategy is to put these principles into practice by more intentionally

embedding inclusion into our people priorities. This includes

advancing gender representation in leadership, promoting fairness,

and fostering a culture of inclusion throughout the employee

experience.

To deliver long-term value to customers and stakeholders, we are

investing in a workforce that is deeply connected to local markets

while being empowered to innovate. Additionally, we are

strengthening Group-level capabilities to replicate best practices

globally and enable talent mobility across markets. This approach

ensures competitiveness, fosters knowledge sharing, and builds a

resilient organisation prepared for future growth.

We aim to attract top talent and create an environment where all

employees can thrive. Expanding the talent pool is central to this

approach, enabling us to select the best candidates from a broader

range of backgrounds. This diversity strengthens retention, drives

continuous innovation, and enhances risk management. We are

refreshing our Diversity & Inclusion (D&I) strategy to ensure

alignment with evolving business priorities and to advance a more

equitable and inclusive workplace.


	Workforce composition^
	2025*	2024	% change
Female	8,731.9	8,863.8	(1)%
Male	6,417.9	6,574.7	(2)%
Other^#	1.0	17.0	(94)%
Total	15,150.8	15,455.5	(2)%


		Leadership composition^
		2025*	2024	% change
Group Leadership Team (GLT)^{^^}	Female	76	69	10%
Group Leadership Team (GLT)^{^^}	Male	125	119	5%
Group Executive Committee (GEC)	Female	3	3	0%
Group Executive Committee (GEC)	Male	7	7	0%
Executive Directors	Female	0	0	0%
Executive Directors	Male	1	1	0%
Chair & Independent Non-executive Directors	Female	4	5	(20)%
Chair & Independent Non-executive Directors	Male	6	5	20.0%

* Within the scope of EY assurance – for further information, see the Basis of

Reporting

# Includes workforce who prefer non-disclosure or gender neutral

^ Workforce composition is reported as full-time equivalent (FTE), while Leadership

Composition is reported as headcount to align with internal data definition.

^^ GLT members hired by joint ventures are excluded.



Ambition

Create an environment where talent thrives and powers growth
Strategic goals

Culture	Capability	Talent vitality
A winning spirit that is customer- led and performance-driven	Unparalleled capabilities in distribution, customer and health	A robust succession pipeline and dynamic talent marketplace

	Priorities

Values-driven leadership	Strategic capability acquisition	Succession
Belonging	Talent and leadership acceleration	Mobility
Employee experience	Learning academies	Diversity


Performance and rewards		People insights and processes


	112 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Sustainability continued

Good governance and responsible

business practices

Corporate governance

Ensuring proper accountability of the management of all our stakeholders

relies on maintaining effective governance. Our business operations are

overseen through robust governance structures, starting with our Board of

Directors and extending through the Group to local management teams.

The Board, led by the Chair, sets the overall direction for the Group, aiming

to achieve long-term sustainable value for shareholders while contributing

positively to society. At every level of the organisation, we emphasise

responsible management and ensure that all employees are aware of the

behavioural standards expected of them and how these guide their

actions. We maintain clear policies and systems to uphold high standards

in critical areas such as anti-bribery and corruption, prevention of financial

crime, responsible tax practices, supplier conduct, human rights protection,

and the support of employee rights and wellbeing.

Our Group Governance Manual (GGM) outlines the framework for

ethical business conduct, governance, risk management, and internal

controls across the organisation. We also maintain a comprehensive,

mandatory training programme for employees and contingent

workers across the Group, covering the key policies referenced in the

Group Code of Conduct. All staff are required to complete an annual

declaration confirming they have read and complied with the Code.

Prudential is dedicated to preventing slavery, human trafficking, child

labour, and all forms of human rights abuses within our organisation

and throughout our global supply chain, which includes nearly 6,589

direct suppliers. In our most recent Modern Slavery Transparency

statement, we elaborated the steps we are taking to identify, monitor,

report and proactively mitigate any modern slavery risks in our supply

chain in support of the UK activities of Prudential Plc and its

subsidiaries in scope of the UK Modern Slavery Act 2015. In 2025, our

focus remained on increasing awareness and training for modern

slavery and broader human rights issues within our supply chain across

our procurement and risk teams in the Group.

It is our policy to refrain from making political or religious donations,

and we do not contribute to political parties or incur political

expenditure, as defined by the United Kingdom Political Parties,

Elections and Referendums Act 2000. We follow the Corporate Social

Responsibility and Sponsorship Anti-bribery and Corruption guidelines

to ensure that its programmes and activities are not exploited for

sales opportunities. The Group did not make any such donations or

incur any such expenditure in 2025.

Meeting the changing needs of our customers

Understanding that customer needs change over time and differ across

markets, backgrounds, and life stages, we strive to develop customised

solutions that better address these diverse requirements. To support

ongoing improvement, we regularly track our Net Promoter Score (NPS),

which captures customer feedback at various key interaction points. This

approach enables us to gain valuable insights into customer experiences

and identify areas for enhancement. As of full year 2025, six of our

business units were performing in the top quartile based on relationship

Net Promotor Score (rNPS), reflecting continued year-on-year

improvement in advocacy and satisfaction. Eight out of ten business units

improved their rNPS score in 2025 compared with 2024. Customer

retention rates increased to 88 per cent at year-end 2025, an

improvement from 87 per cent in 2024, illustrating further progress

towards our 2027 target.

Customer conduct principles: We treat customers fairly, honestly and

with integrity; We provide and promote products and services that

meet customer needs, are clearly explained and deliver real value; We

maintain the confidentiality of our customer information; We provide

and promote high standards of customer service; and We act fairly

and promptly to address customer complaints and any errors we find.

>Find out more in the Good governance and responsible business

practices section of our Sustainability report.


	113 Prudential plc Annual Report 2025

Managing climate-related risks and opportunities

Managing climate-related risks and

opportunities

In 2025, Prudential plc embarks on its first year of reporting under the

International Sustainability Standards Board (ISSB) Climate-related

Disclosure Standard (ISSB S2), in alignment with the Hong Kong Stock

Exchange’s ESG Reporting Code. This marks a significant milestone in

our sustainability journey, reinforcing our commitment to transparent,

decision-useful climate disclosures that support investor confidence

and long-term value creation.

Our approach to ISSB S2 adoption is guided by the principles of

proportionality and materiality. Recognising the complexity and

evolving nature of climate-related financial disclosures, we have

adopted a phased implementation strategy of ISSB S2 that balances

ambition with pragmatism. This includes leveraging transition reliefs

where applicable, while ensuring that disclosures remain robust,

comparable, and aligned with investor expectations.

This disclosure also integrates existing reporting based on the

Taskforce for Climate-related Financial Disclosures (TCFD) as per the

UK requirements. Consistent with previous practice, we continue to

provide an index to show how this report aligns with the

recommendations of the TCFD, and we have also refreshed our

Climate Transition Plan which sets out how we seek to further fulfil

our commitments.

> See here for our refreshed Climate Transition Plan.

Scope, compliance and basis of preparation

In this inaugural year, we focus on the most material climate-related

risks and opportunities across our investment portfolio, operational

footprint and life and health insurance liabilities. We comply with the

core S2 and TCFD requirements relating to governance, identification

and assessment of climate‑related risks and opportunities, climate

integration into our Risk Management and Strategy, and disclosure of

Metrics and Targets, primarily around Scope 1, Scope 2, and material

Scope 3 (Category 15) emissions. We also comply with the

requirement to conduct and disclose climate-related scenario analysis

for our in-scope Investment Portfolio and Operations, using NGFS and

IPCC pathways. Where full quantitative disclosures are not yet

possible, we provide explanations and planned enhancements.

We have assessed the potential effects of climate-related risks on our

financial performance, position and cashflows but certain effects

from climate-related health risks cannot be identified with reasonable

certainty due to data limitations and emerging methodologies,

Similarly, while we disclose the overall impact from climate scenario

analysis for investments and operations, current limitations in the

underlying modelling approach indicate that further analysis is

needed before additional quantification can be provided. For these,

we have provided qualitative disclosures and outlined our roadmap

for future enhancements. These include system upgrades, expanded

data governance, and deeper engagement with our local businesses

and regulators.

In line with Listing Rule Appendix C2 reliefs, certain climate-related

opportunities are commercially sensitive and hence we disclose the

use of this exemption and will reassess eligibility at each reporting

date.

Looking ahead

We acknowledge that ISSB S2 adoption is a journey and we are committed to continuous improvement, peer benchmarking, and transparent

communication of our progress. In future reporting cycles, we aim to deliver on our roadmap in expanding the scope of disclosures, enhancing

data granularity, and continuously reporting our ongoing efforts in integrating climate considerations more deeply into our strategic and

financial planning.


Section	Disclosure Focus	Where To Find It
Governance	Sustainability (including climate) governance	p. 115
Risk management	Understanding climate-related risks	p. 116
	Identifying climate-related risks	p. 116
	Assessing climate-related risks	p. 116
	Transition risks (short- and medium-term transition risks)	p. 116
	Physical risks	p. 117
	Managing, monitoring and responding to climate-related risks	p. 117
	Climate-related scenario analysis	p. 118
Strategy	Impact of climate-related risks on our business	p. 119
	Current financial effects	p. 119
	Impact on assets	p. 120
	Physical risk mitigation and adaptation	p. 122
	Identifying and responding to climate-related opportunities	p. 123
	Impact of climate-related opportunities	p. 125
Climate-related metrics and targets	Carbon offsetting for our Scope 1 and 2 emissions	p. 126
	Progress against our climate-related targets	p. 127
	Climate-related metrics	p. 128


	114 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Managing climate-related risks and opportunities continued

Governance

Sustainability (including climate) Governance

Board oversight

With the goal to build inclusive and resilient futures across Asia and

Africa, our business practices are rooted in a steadfast commitment

to sustainability. This drives us to innovate, collaborate, and lead with

purpose, with the intention that our efforts create lasting positive

impacts for generations to come. The Board recognises the

importance of integrating sustainability into Prudential's core

business strategy in driving value for our shareholders. It plays a

pivotal role in overseeing sustainability matters that are material to

Prudential's business, including climate change and environmental

impacts, and responsible investment.

The Board provides leadership, direction and oversight of Prudential

Group’s sustainability strategy through several Board-level committees.

The Sustainability Committee is responsible for overseeing the

development of the Group’s sustainability and climate-related

strategy, goals, targets and key metrics around risks and

opportunities. It collaborates with other principal committees of the

Board, such as the Risk Committee in reviewing results of climate

scenario analysis; the Audit Committee over controls of emissions

reporting as part of its remit over non-financial metrics; and the

Remuneration Committee in incentives related to climate targets.

For 2025, the Sustainability Committee met three times (in addition

to three joint meetings with other Committees, including the Audit

Committee). It has reviewed proposals and updates relating to

inclusive insurance, geopolitical risks and its impact on sustainability,

the Climate Transition Plan, sustainability-linked remuneration, and

progress against our goals (including climate targets).

Our people translate our strategy into

action, and aligning rewards at all

levels of leadership with measurable

sustainability outcomes helps us

accelerate change while remaining

accountable to our shareholders.

To ensure that our Board is equipped to effectively oversee the

development and implementation of strategies related to

climate-related risks and opportunities, we have prioritised a

diverse range of skills and competencies across the Board. Our

Board includes members with expertise in sustainability, risk

management, finance and regulatory compliance. In 2025, all

Sustainability Committee Board members participated in

dedicated climate risk and sustainability training, covering various

topics including nature and biodiversity, responsible investment,

ISSB S2, TCFD, and HKEX ESG Reporting Code requirements.

Ongoing education is provided annually.

Sustainability-related metrics continued to account for 10 per

cent of the total Executive Director's Prudential Long Term

Incentive Plan (PLTIP) award in 2025. The allocation in 2025 was

equally split between two metrics – five per cent allocated to

maintaining diversity within the Group Leadership Team (GLT),

and another five per cent allocated to reducing the weighted

average carbon intensity (WACI) of our in-scope investment

portfolio. Both the Financing the Transition (FTT) and WACI

targets are important when assessing our decarbonisation

activities. FTT and WACI are intrinsically linked, with FTT

expected to drive medium- to long-term reductions in financed

emissions, while portfolio decarbonisation continues to be tracked

through WACI. However, as a metric that is influenced by market,

data and portfolio composition effects, WACI is complemented

by a stronger emphasis on FTT as the primary forward-looking

target.

When reviewing measures for 2026, both the Sustainability

Committee and Remuneration Committee recognised the

significant progress made on diversity since 2017 and that the

existing diversity targets in the PLTIP run through to the end of

2027. It is intended to remove diversity measures from the PLTIP

from 2026, and to use the succession and talent goals included in

the strategic scorecards for the Executive Director and the Group

Executive Committee, which determine part of their annual bonus

opportunities, for the inclusion of specific diversity targets as

necessary. This provides the flexibility to ensure that priorities

could be adjusted annually as required.

It is also intended that FTT will replace WACI as the primary

climate measure. WACI will be retained as an underpin because

FTT and WACI are intrinsically linked, with FTT being a key

activity to support our medium- to long-term portfolio

decarbonisation goals (for which WACI is the selected metric).

This will align with our goal of committing a total of $6 billion in

FTT portfolio investments by 2030.

These changes in respect of the Executive Director were discussed

with shareholders in late 2025 and early 2026. For further details,

refer to the Directors' remuneration report within Prudential's

Annual Reports and Accounts.


	> Further information regarding both measures can be found in the Directors’ remuneration report.

The Board recognises the importance

of integrating sustainability into

Prudential's core business strategy in

driving value for our shareholders.

Management oversight

At the management level, the Group Executive Sustainability

Committee (GESC) oversees sustainability- and climate-related

activities. The Chief Financial Officer chairs the Committee, which met

four times in 2025. Membership of the Committee includes the Chief Risk

and Compliance Officer, Chief Investment Officer, Chief Corporate Affairs

Officer, Chief Human Resources Officer, Regional businesses CEO, and

management executives from Eastspring Investments.

One key responsibility of the GESC is to oversee the Group’s progress

towards all sustainability reporting. This includes climate, the

environment and disclosing against the recommendations of the

TCFD and the ISSB S2. Prudential manages key sustainability issues

across functions through a multi-disciplinary approach and relies on

the Group Governance Manual’s underlying policies and standards to

support consistent operation on certain sustainability topics.

TCFD and ISSB S2 disclosures

We are committed to playing our part in the transition to a global

low-carbon economy and the collective efforts to limit the rise in

global warming. In addition to responsible investment approaches

designed to address climate-related challenges, our Climate

Transition Plan sets out how we seek to fulfil our climate-related

commitments, and we have included updates against the plan

throughout this report. We have also included an index to show how

this report aligns with the recommendations of the Taskforce on

Climate-related Financial Disclosures, as well as the HKEX ESG

Reporting Code which is aligned to the ISSB S2 recommendations.


	115 Prudential plc Annual Report 2025


	> For more information on the governance of climate- related risk, please refer to the 'Sustainability governance' section in our Sustainability report, which details our sustainability and climate-related governance.

Risk Management

Understanding climate-related risks

The Group is exposed to climate-related risk through its day-to-day

operations, investment portfolio and life and health insurance activities.

These risks can manifest through a combination of risk drivers that can be

categorised as either physical risks or transition risks.

Physical climate risks arise from either increased frequency and

severity of extreme climatic events (acute risks) such as droughts,

hurricanes or floods, or long-term changes in climatic patterns

(chronic risks) such as rising temperatures or increasing sea levels.

Transition climate risks arise from the adjustment to a lower-carbon

global economy and the relative uncertainty it creates. Sources of

transition risk include changes in public sector policy and legislation,

technology advancements, changes in market supply and demand for

goods and services, and shifts in consumer preference, regulator and

investor sentiment. Additionally, climate-related litigation can arise from

the failure to mitigate impacts or adapt to climate change or the

insufficiency or inaccuracy of disclosure around material climate-related

risks.

Sustainability-related risks, including climate risks, are managed as cross-

cutting risks rather than stand-alone categories. These themes often

have significant interdependencies with existing business risks and can

influence or amplify them. The management of such cross-cutting risks

is embedded within our existing established risk framework and the

Group’s risk universe. The Group Risk Framework (GRF) outlines the

process for identifying, assessing, managing and monitoring all types of

risks that the Group faces across its business and operations.

Identifying climate-related risks

When evaluating sustainability-related risks, we recognise that they

may exhibit a number of different or additional risk characteristics

that are not explicitly recognised in more traditional risk management

practices. Risks associated with particular sustainability themes,

including climate change, may develop over a much longer time

horizon than traditional risks. They also have the potential to rapidly

change from being considered immaterial to being viewed as

material (referred to as dynamic materiality) by the Group’s

stakeholders. Additionally, a wider range of stakeholders is interested

in both how the Group is impacted by, and the external impact it has

on, sustainability topics such as climate change (two perspectives

commonly referred to as ‘double materiality’). Climate change has

been identified as a material sustainability topic for the Group’s

stakeholders (see Materiality assessment section on page 103). Out

of the nine material topics researched with stakeholder groups,

'investing responsibly' ranks as a top material issue across stakeholder

groups including employees, agents, civil society, and customers. This

assessment highlighted that climate change encompasses both

financial materiality (impact on business performance) and impact

materiality (societal relevance) for stakeholders of Prudential. The

Group performs robust assessment and analysis of principal and

emerging risk themes through its risk identification process. These

processes may also consider characteristics, time horizons, likelihood

and potential impact of risks crystallising (see Risk Review section on

page 56). For example, one factor in assessing the likelihood of

climate risks is the profound impact physical risks could have over the

long term.

Assessing climate-related risks:

Within the GRF, an emerging risk identification framework exists to

support the Group’s preparations in managing financial and non-

financial risks expected to crystallise beyond the short-term horizon.

While some aspects of climate-related risks may materialise in the

near term, others may develop over a much longer time period than

either traditional or emerging risks.

Recognising this, Prudential defines its climate-related time horizons

in a manner that aligns with both regulatory expectations and the

practical realities of its business operations across Asia and Africa.

These definitions are embedded within its climate risk analysis and

strategic decision-making processes to reflect the periods over which

climate-related transition and physical risks and opportunities could

reasonably emerge.

– Short term: zero to three years;

– Medium term: three to five years; and

– Long term: five to 30 years.

The short-term time horizons are directly linked to Prudential’s

strategic planning processes and the medium- and long-term horizons

that extend beyond. Climate risk assessments are integrated into

enterprise risk management, investment strategy, and operational

resilience planning. Through scenario analysis, the Company seeks to

understand climate-related risks and opportunities across all planning

horizons, ensuring that short-term actions support medium-term goals

and long-term sustainability.

Life and health insurers face rising climate transition risks as

economies pursue net zero emissions. Regulatory changes, shifting

markets, and new societal expectations – combined with limited data

– affect their operations, investments, and underwriting. On the other

hand, climate physical risks arising from acute and chronic climate-

related events pose growing challenges to life and health insurers.

These risks can directly affect mortality and morbidity rates, disrupt

healthcare systems, and strain operational resilience.

Transition risks

– Strategy implementation: As the Group continues to develop and

execute its sustainability strategy and climate-related

commitments, there is an ongoing need to manage scrutiny and

balance potentially different interests, expectations and objectives,

both across and within stakeholder groups. Reputational risks linked

to the Group's sustainability strategy can be hard to manage as

criticism can arise from misinterpretation, misunderstanding, or

differing opinions – even if the Company acts in good faith.

– Regulatory, legislative and disclosure developments: The

continued pace and volume of new climate-related regulations and

consultations across the Group’s markets could pose compliance

and operational challenges that may require multi-jurisdictional

coordination. Across our markets, governments and financial

regulators are introducing mandatory emissions reporting,

standardised climate disclosures, and enforceable decarbonisation

pathways. Failure to comply may result in financial penalties,

reputational damage, and restricted market access.

– Greenwashing risks: Increasing climate disclosure requirements

heighten the potential for accusations of misleading

communications (‘greenwashing’) and the operational burden of

coordinating inputs across multiple standards that are not

interoperable. This is also intensifying as stakeholders demand

verifiable, science-based climate disclosures. Financial institutions

face growing scrutiny to substantiate sustainability claims, with

reputational and regulatory consequences for non-compliance.

– Strategic risk: Emerging as a structural force in capital allocation,

stakeholders increasingly require demonstrable progress toward net

zero targets, adoption of renewable energy, and integration of

climate risk into investment decision-making. These expectations

are influencing asset valuations, financing terms, and portfolio

attractiveness. In addition, our strategy of engagement over

divestment on thematic topics also may potentially increase


	116 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Managing climate-related risks and opportunities continued

litigation risks and anti-trust concerns associated with collaborative

engagements in some parts of the world.

Investments (short-, medium-, and long-term

transition risks)

– Some of the Group’s assets under management are in high-

emission, carbon-intensive and carbon-reliant sectors where

transition risks will threaten the financial resilience of these

companies invested. These assets are exposed to transition risk in

the short and medium term, potentially resulting in increased costs,

higher levels of taxation, regulation and/or reduced demand, which

could lead to increased price volatility, reduced liquidity,

impairments, downgrades and/or stranding if they fail to adapt,

innovate or transition to a lower-carbon business model.

– Long-term risks include sustained high carbon prices, stranded

assets, and structural demand shifts that permanently reshape

industries and capital flows. Companies that delay adaptation face

escalating compliance costs, technology lock-in, and systemic

financial risks through to the middle of the century.

Operations (medium- and long-term transition risks)

– With enhanced carbon regulations and building performance

standards, retrofit requirements and operational expenditures for

building renovations to meet tightening requirements are expected

to rise. In addition, owned assets require timely response and

adaptation to mandated climate stress testing and updated

building codes. Additionally, potentially higher operating expenses

due to regulatory non-compliance penalties may increase in the

long term.

– Increased expectation on energy-efficient technologies and

renewable energy transition under tighter regulatory pressure and

investor expectations is leading to increased upfront capital

expenditure required to deploy energy-efficient measures and

renewable energy infrastructure through procurement of verifiable

clean power via renewable energy certificates (RECs).

Physical risks

Investments (short-, medium-, and long-term physical risks)

– Physical climate risks may also pose risks to the operational

footprint and supply chains of the Group’s investee companies in

the short and medium term, with the most profound impacts likely

to unfold over the long term. Increased frequencies of extreme

weather events can disrupt operations of investee companies

through the damage of facilities and equipment, and lead to

delays in production and logistics or intermittent interruptions to

worksites. In labour-intensive sectors, the health and safety impacts

of physical climate impacts could further exacerbate the reduction

of productivity through an increase in health issues from heat

stress, air quality deterioration or diseases. The increasing physical

impacts could lead to reduced investment returns and increased

volatility of the pricing of securities if investee companies do not

have adequate resiliency or adaptation measures in place.

Operations (medium- and long-term physical risks)

– Operational resilience: Extreme physical climatic events can

challenge the Group’s operational resilience. Long-term changes in

climatic weather patterns could potentially increase the frequency

and severity of extreme weather events, and these risks could

become more material over the medium to longer term (ie beyond

the business plan time horizon). Similarly, chronic physical risks can

manifest through persistent rising temperatures impacting labour

productivity and increased cooling costs. The potential business

impact, including the impact on corporate properties, supply

chains, third-party providers and the servicing of our customers, is

explored through resilience planning and operational risk

management processes.

Life and health insurance (long-term physical risks)

– Our strategy focuses on life, health, savings and investments

products, which excludes us from underwriting emissions-intensive

activities. Climate change could impact customers’ health and

livelihoods, which could result in changes in mortality, morbidity

and/or persistency for the Group’s underwriting portfolio. While

climate factors like greater heat stress, poorer air quality (possibly

resulting in greater incidence of respiratory illnesses such as

asthma), increased vector-borne illnesses such as dengue fever and

malaria (outside of their normal geographical distribution),

together with increased direct casualties from extreme weather

events, could increase the burden on life and health insurers, these

risks could potentially become more material over the longer term.

Hence, these risks need to be managed and monitored in case they

become more significant, but through our internal assessment, our

current assumption-setting processes for our insured liabilities,

which are based on current experience, indicate that these risks are

being captured.


	> Further information on the Group’s exposure to environmental and social risks related to climate change can also be found under the 'Risk factors' heading of this Report and any subsequent filing Prudential makes with the US Securities and Exchange Commission, including any subsequent Annual Report on Form 20-F.

Managing, monitoring and responding to climate-

related risks

We have embedded the management of climate-related risks into our

risk management framework since 2022. Consistent with the previous

reporting period, we manage these risks through the Group Risk

Framework (GRF), which defines the process of identifying, assessing,

managing and monitoring risks across the Group's business and

operations via the Risk Universe. Prudential’s Risk Universe covers a

wide range of emerging and established financial and non-financial

risks that could potentially impact Prudential’s operating results,

financial condition and reputation. These risks are classified and

prioritised based on their likelihood, potential impact, and their time

horizon.

In 2025, the topic of social and environmental responsibility

continues to be classified as a material risk for the Group. We identify

and monitor emerging risks, and identified two themes relating to

'nature resource shortages' and 'other emerging environmental and

social themes' not yet well covered under existing sustainability risks

monitoring. These classifications are reviewed on a regular basis and

form part of the annual Group Own Risk and Solvency Assessment

(ORSA) report, as we will continue to embed climate considerations

into our Group strategy and strengthen integration efforts.

We monitor control effectiveness through the three lines model,

horizon scanning and scenario analysis. Risks are managed within the

Group’s risk appetite and are regularly reported to our relevant

committees. For details on climate-related risk governance, see the

Sustainability Governance section.

We recognise the importance of not only identifying and managing

climate-related risks and opportunities, but also considering the

potential impacts on our business, and the resilience of our strategy

to climate-related changes, developments and uncertainties across a

range of climate scenarios.


	117 Prudential plc Annual Report 2025

Climate-related scenario analysis

Scenario testing is a valuable tool for enhancing understanding of

climate-related risks and improving decision-making. It is particularly

beneficial in raising awareness of climate change risks due to the

broad range and uncertain timing of potential mitigation and

adaptation measures. We closely monitor and evaluate advancements in

climate scenario testing, including reviewing publications from

regulators, global organisations like the International Association of

Insurance Supervisors (IAIS) and the Network for Greening the

Financial System (NGFS), as well as reports from the UN Principles for

Responsible Investment (PRI), the Transition Pathway Initiative (TPI), the

United Nations Intergovernmental Panel on Climate Change (IPCC),

and the International Energy Agency (IEA).

Overview of our climate scenarios

We carefully considered the scenario methodologies appropriate to

the size, nature and complexity of our organisation. Since we first

began using scenario testing, we have become more sophisticated in

applying different scenarios to assess the relevant physical and

transition risks based on specific business needs:

– PRI scenarios (2023), including the forecast policy scenario, are

used to assess the appropriateness of our capital market

assumptions for economic impacts from likely transition policy

developments;

– NGFS scenarios (fourth vintage) – as summarised in the table

[below] – are used for stress testing the resilience of our balance

sheet and in-scope Investment Portfolio for potential physical and

transition climate change impacts;

– IPCC (AR6), IEA (WEO 2024), and TPI (v5.0) provide science-based

decarbonisation pathways aligned with Paris Agreement goals,

which can support investee engagement to drive real-world

change; and

– IPCC SSP1-2.6, SSP2-4.5 and SSP5-8.5 are used for stress testing

the resilience of our leased and owned properties to physical

impacts from climate change.

Use of scenario analysis

We use scenario analysis to identify the potential vulnerabilities

of our in-scope Investment Portfolio globally (as defined in the

section 'Climate Scenario Analysis' in the Basis of Reporting) and

Operations (including significant leased and all owned property

across Asia and Africa, representing more than 83 per cent of our

floor area).

Prudential is currently undergoing ISSB S2 transition where we

are in the process of updating our scenario analysis approach to

give us a more granular understanding of key risk drivers based on

our in-scope Investment Portfolio composition, thereby enabling

us to manage the climate-related risks of our assets more

effectively. Meanwhile, amidst the transition and in line with

TCFD expectations, we conduct stress testing on our balance

sheet, with risks assessed over the short-, medium- and long-term

time horizons based on four NGFS scenarios. Both physical risks

(including chronic hazards such as temperature rise, precipitation

changes, sea level rise, and acute hazards such as coastal flooding

and wildfires) and transition risks (including carbon pricing,

product demand and commodity price changes) are being

captured in these scenarios.

For our in-scope Investment Portfolio, climate scenarios provide a

set of parameters modelling different decarbonisation pathways,

which result from a varying speed of climate policy response. In

combination with different physical risk impacts arising from the

resultant emission trajectories, these are intended to estimate the

potential financial implications arising from these scenarios,

although as discussed below there are significant limitations in

capturing the risks and costs in some scenarios.

For our operations, we conducted a forward-looking assessment

of physical climate risks across our property portfolio. This

assessment used high-resolution geospatial modelling and asset-

level exposure data to evaluate acute and chronic physical

climate risks under three Intergovernmental Panel on Climate

Change (IPCC) Sixth Assessment Report (AR6) scenarios

(SSP1-2.6, SSP2-4.5, SSP5-8.5) across three time horizons: 2030,

2040, and 2050. The acute hazards assessed included acute

events such as typhoons, floods, and wildfires, and the chronic

hazards included rising temperatures, shifting precipitation

patterns, and prolonged drought. The methodology involved

scenario-based stress testing of properties’ exposure and

vulnerability, integration of hazard intensity, frequency, and

compounding effects, and portfolio-level aggregation of risk

scores and financial impact estimates.

For transition risks on our operational real estate portfolio, Prudential

utilised a Carbon Risk Real Estate Monitor (CRREM) pathway analysis

to ascertain the financial, regulatory, and valuation risks associated

with real estate assets that fail to align with climate performance

benchmarks. This is to address increasing market expectations and

shifting regulations where alignment with science-based

decarbonisation pathways is becoming a baseline requirement for

real estate asset competitiveness and investor confidence. Using a

2024 emissions baseline, Prudential’s real estate portfolio

demonstrates a credible pathway to 1.5°C alignment through a

combination of RECs, targeted energy retrofits, and broader

decarbonisation initiatives. Although near-term financial impacts

remain modest, we anticipate that rising regulatory pressure and

evolving stakeholder expectations will increase the materiality of

transition risks for real estate over time. As such, we have identified a

need for ongoing monitoring and iterative updates to our assessment

framework to ensure continued alignment with emerging market

standards.


NGFS:			IPCC:
	^oC 2050 warming	^oC 2100 warming		^oC 2050 warming	^oC 2100 warming
Orderly transition: Net zero 2050	1.6	1.4	SSP1-2.6	1.7	1.8
Disorderly transition: Delayed transition	1.8	1.7	SSP1-2.6	1.7	1.8
Too little, too late: Fragmented world	1.9	2.4	SSP2-4.5	2.0	2.7
Hot house world: Current policies	2.1	>3.0	SSP5-8.5	2.4	4.4


	118 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Managing climate-related risks and opportunities continued

The Network for Greening the Financial System

(NGFS) scenarios

Orderly transition—Net zero 2050: Scenario assumes orderly

transition with immediate and strong climate action. Climate policies

are introduced early and become gradually more stringent— physical

risk is relatively subdued while transition risk is moderate. This

scenario is the benchmark for ambitious policy alignment globally.

Disorderly transition—Delayed transition: Scenario explores a world

where climate action is postponed until 2030, leading to higher peak

temperatures being reached. Policies inertia and delay intervention

mean that carbon prices have steeper increases post 2030. Physical

risk is moderate while transition risks are high.

Too little too late—Fragmented world: Scenario explores uneven

global transition where some regions and countries act while others

lag, resulting in both high transition and high physical risks due to

fragmentation. This scenario outlines geopolitical and coordination

challenges.

Hothouse world—Current policies: Scenario assumes that only

currently implemented policies are preserved, leading to high physical

risks with highest temperature outcomes in 2100. This is the worst-

case baseline with highest physical risks losses and large GDP losses

compared to baseline by 2100.

While we see benefits in the use of forward-looking analyses,

particularly in supporting the assessment of how well companies are

prepared for the climate transition, it is important to acknowledge the

limitations. These limitations include but are not limited to data

quality, data availability, data consistency, model limitations, greater

uncertainties over longer time horizons, and extensive judgements

and assumptions. In addition, it is important to note that current

climate models are widely acknowledged to underestimate physical

climate risk and costs, because they do not capture climate tipping

points (eg ice sheet melt, Amazon dieback) or socioeconomic knock-

on effects (eg migration, war, political and social instability) that

could have significant impacts on global economies. As a result, we

treat forward-looking climate data with additional caution than we

would for other metrics like historical financial statements.

Data governance—mitigating data and model

limitations

Prudential is committed to robust data governance over all

environmental metrics disclosed. Our approach is anchored in clear

accountability, rigorous controls, and continuous improvement.

Environmental data including Scope 1, 2, and material Scope 3

emissions are collected through standardised processes across our

business units. Data is subject to defined validation and review

protocols with business units’ data owners as well as business units’

Chief Financial Officer sign-off. Group senior members such as

functional heads and the Group Executive Sustainability Committee

(GESC) also provide review and challenge of the data governance

process and metrics. Lastly, the Sustainability Committee at the Board

level reviews all relevant year-end annual disclosures before

publication. We leverage both internal and external data sources and

work closely with third-party providers to enhance data quality and

coverage. Recognising the evolving nature of climate data, we

regularly review our methodologies, invest in system upgrades, and

provide training to relevant teams.

Nonetheless, we recognise that data and models have their

limitations. Climate transition pathways utilised in scenario

analysis are inherently uncertain, whilst climate health data are

sparse and interconnected to multiple socioeconomic and

behavioural factors. The absence of clear climate-related

definitions and reliable data can amplify the risk of

misinterpretation and misrepresentation. Furthermore, current

limitations in financial climate modelling tools make it

challenging to accurately assess the potential financial impact to

the Group, particularly for longer-term time horizons. The Group

presently relies on external data, models, and benchmarks that

differ in terms of transparency and underlying assumptions. As a

result, we recognise the inherent limitations present in all climate

reporting. Where data limitations exist, we transparently disclose

these and outline our roadmap for future enhancements. Our

data governance framework is designed to ensure that

environmental metrics are reliable, decision-useful, and aligned

with investor and regulatory expectations.

Carbon prices used in scenario analysis

Carbon prices are considered as a proxy for the impact of potential

government climate policies within our climate scenario analysis.

These prices are set to reflect differences across the regions where we

operate and consider local market dynamics. In the long term, we

expect the introduction of carbon prices and carbon taxes to increase,

as governments look for tools to combat emissions. We do not

currently impose an internal carbon price (ICP) across our

organisation. However, the NGFS scenarios we use for our stress

testing account for carbon prices, and our scenario analysis results

reflect how shifts in carbon prices under different scenarios impact

our business

Strategy

Impact of climate-related risks on our business

Climate-related risks are material to our business operations,

financial stability, and long-term sustainability. As extreme weather

events, shifting climate patterns, and environmental degradation

intensify, they can and will directly impact our investment portfolio,

insurance liabilities, and the health and livelihoods of our customers

across Asia and Africa. These risks are not only physical – such as

increased frequency of floods, droughts, and air pollution – but also

transitional, stemming from evolving regulatory landscapes, market

expectations, and stakeholder demands for climate resilience and

responsible governance. Understanding and integrating these risks

into our strategic planning is essential to safeguarding our business

and fulfilling our commitment to sustainable growth.

Current financial effects

Climate change is already exerting measurable financial effects

on investment assets held by asset owners worldwide. As

institutional investors managing trillions in assets globally,

insurers are increasingly recognising that both physical climate

risks and transition risks can materially impact asset valuations

and long-term returns. As an insurer, our financial performance is

driven by the performance of our investments, the ability to

manage the risks of our life and health portfolio to what we

expected when we priced the policies and operationally manage

our cost base.

Our financial position is largely driven by the market value of our

investments offset by the IFRS 17 valuation of our insurance

liabilities. In assessing the impact of climate change, we have

therefore focused on the impact on our in-scope Investment

Portfolio and the impact on our operational costs of impacts on our

building portfolio. We have considered the impact on our insurance

liabilities to be less material. As an insurer, cash (as included in our

IFRS 17 balance sheet) is a less relevant measure when assessing

the position and performance of the Group and so is not currently

part of our internal assessment. Prudential is actively monitoring

the current and anticipated financial effects of climate change on

our assets, operations and insurance business, and has found no

items for which there is a high chance of a material adjustment

within the next annual reporting period.


	119 Prudential plc Annual Report 2025

Current financial impacts on assets

There are many drivers of market value changes in our investment

portfolio, and it is currently difficult to systematically isolate the

market movements related to climate physical and transition events.

We will continue to search for tools with the capability to help us

identify and isolate the forward-looking impact of climate on

financial performance. Meanwhile, as of 2025, we have committed a

cumulative total of $1.5 billion^#, $400 million of which was

committed in 2025, as part of Prudential’s FTT strategy that started

in 2024. For more details, please refer to the Responsible Investments

section in this report.

Current financial impacts on operations

In terms of costs relating to energy transition, we have completed energy

audits and assessments at 30 sites across our Asia Pacific portfolio and

used this information to provide informed guidance to our local businesses

on implementing appropriate energy conservation measures across the

property portfolio. While these energy-saving measures will deliver some

operational cost savings through energy efficiency, these are anticipated

to be relatively immaterial compared to our overall operational costs. On

the other hand, for physical risks there were no material financial impacts

on our operations portfolio from climate-driven natural disasters. We will

reassess this in the next reporting year and report any financial effects if

material.

Impact on assets

As an asset owner and manager, we rely on investment returns to

meet long-term liabilities. We recognise that our primary exposure to

climate-related risks is within our investment portfolio where it could

disrupt or diminish investment returns. To better understand these

risks, as well as identify opportunities, we conduct scenario analysis

using selected NGFS scenarios. These scenarios are not predictions as

the actual transition could differ, but they do provide insight into the

risks we could face and opportunities available to us.

Our analysis explores how physical and transition risks associated with

climate change could evolve over the short, medium, and long term.

Using the four NGFS climate scenarios, we examine different

pathways that reflect varying assumptions about carbon pricing,

global policy responses, natural catastrophes, energy transitions, and

macroeconomic conditions. These scenarios are translated into

sensitivities across key financial and economic factors, enabling us to

assess potential impacts on our investment assets. This analysis is

conducted using data sourced from our data analytics providers.

Current limitations in the tools and methodologies make it challenging to

actively manage our in-scope Investment Portfolio against specific risk

thresholds. While physical risks and costs are included in climate scenario

modelling, they are widely considered to be underestimated – as

recognised by the Financial Stability Board (FSB) and NGFS – and do not

account for tipping points or socioeconomic impacts. As a result, we have

chosen not to disclose our current assessment of the quantitative impact

of physical risk separately at this stage, because we consider that the

quantitative assessments are likely to underestimate the potential

financial impacts on our assets in some scenarios. Instead, we provide an

aggregated qualitative view of transition and physical impact on our in-

scope Investment Portfolio, complemented by impacts on our in-scope

Investment Portfolio equities as a proxy for the impact of assets

vulnerable to these climate-related risks. We expect the results of our

assessment to continue to evolve with changes in methodologies, data

quality and sector categorisation of our data analytics providers, and will

update our disclosures as we develop and strengthen our tools and

capabilities.

Based on the four NGFS scenarios assessed, the range of potential

climate-related impacts on our in-scope Investment Portfolio remains

within observed market volatility, suggesting no immediate need for

explicit climate considerations in current valuations. We recognise the

limitations within these scenarios and the modelling of them, which

leads to understatements of certain exposures and vulnerabilities, as

recognised by the FSB and NGFS. As we have explained above, these

limitations apply in particular to the potential impact of the physical risks

which may lead to an understatement of markets incorporating physical

risks and costs into asset valuations compared to transition risk; therefore,

we believe actual long-term impacts are likely to be higher than indicated

by these results. This is consistent with the current consensus^{^} amongst

climate scientists, who are confident that transitioning the economy

is less costly than the physical impacts of climate change, and though

more rapid transitioning with emissions peaking earlier requires up-

front investment, it increases co-benefits and costs in the long term.

We therefore continue to integrate climate-related risks and

opportunities into our investment strategy. Our current modelling

tools indicate that our in-scope Investment Portfolio is generally less

vulnerable to direct physical risks than to transition risk across the

short to long term, given its diversification, while individual companies

within the in-scope Investment Portfolio could be materially

negatively or positively impacted during the transition. As a result, we

observe the following underlying transition-related drivers of the

potential short- and medium-term impacts on our in-scope

Investment Portfolio:

– The orderly, net zero 2050 scenario exhibits the highest overall

impact in the short and medium terms. The transition impacts are

more extreme than under the other scenarios due to the

compressed time to achieve net zero by 2050.

– In the disorderly, delayed transition scenario, the delayed transition

impact results in a lower impact on current valuations of our assets,

with more physical risk in the medium and long term, compared to

the orderly transition.

– In the too-little-too-late, fragmented world scenario, the impact on

our in-scope Investment Portfolio follows a similar trend to the

delayed transition scenario, but to a lesser severity due to lower

impacts of transition risk from partial achievement of net zero

policies. Over the long term, climate physical risks impacts on our in-

scope Investment Portfolio are comparable to those of the current

policies scenario.

– In the hothouse world, current policies scenario, there is minimal

impact from transition risk as companies continue to operate

within the status quo. Our current modelling shows that the impact

from physical risks on our in-scope Investment Portfolio appears

relatively lower across all scenarios over the short, medium and long

term horizons we have defined. However, we are mindful of the

limitations we have discussed above, which are likely to lead to an

underestimation of certain exposures and vulnerabilities. Currently,

the true long-term cost of physical risk increases is captured by our

current modelling only within timeframes which stretch beyond

2050. Additionally, we believe the impacts of the hothouse

scenario for 2050 are likely to be muted and possibly

underestimated, and our time horizon has a lot of model

uncertainty, and therefore we have included more limited

disclosure in relation to the conclusions of this modelling.

We provide below an illustrative analysis of the equity impacts by sector,

which provide insights on the sectors vulnerable to climate-related

transition risks under two climate transition scenarios: a Net Zero 2050

scenario and a representative delayed transition scenario. Scenarios

premised on insufficient or no transition, which are not aligned with

Prudential’s strategy of financing the transition, are therefore not

presented in heatmaps and are instead only discussed qualitatively. The

manufacturing, construction, and transportation sectors are identified

as those most vulnerable in scenarios with high transition risk.

# The invested amount as of 31 December 2025 has been recognised within

Equity securities and holdings in collective investment schemes in our

Consolidated statement of financial position. The unfunded commitment is

disclosed in note D5 to the Group IFRS consolidated financial statements as part

of the Group's total unfunded commitments.

^ Intergovernmental Panel on Climate Change (IPCC) 2023 Synthesis Report


	120 Prudential plc Annual Report 2025


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Managing climate-related risks and opportunities continued



Heatmap sectoral classification (as defined by our current data analytics providers) of climate scenario impacts¹ over time.
¹Please see narratives for scenario modelling limitations.
	Orderly, Net Zero 2050			Disorderly, Delayed Transition
Sectors	2030	2040	2050	2030	2040	2050
Agriculture
Mining
Manufacturing
Electricity & gas
Water
Utilities
Construction
Retail
Transportation
Accommodation & food
Information
Finance
Real Estate
Professional & scientific
Administrative
Public administration
Education
Health
Arts

Source: Prudential internal scenario analysis work. It is important to note that NGFS scenarios are exploratory and not predictive forecasts and results are subject to

significant uncertainty and model risk which we recognise as an ongoing challenge that the industry faces.

The results of our scenario analysis are presented to facilitate

understanding and comparison. Currently, our climate scenario analysis

does not incorporate potential management actions that could mitigate

adverse impacts of climate change, but we are exploring opportunities to

consider them in the future. At this stage, given these models have

evolved considerably and continue to change, we do not consider the

climate scenario tests suitable for setting capital requirements.

Looking ahead, we will continue to assess the implications of

transition and physical risks on our investees, conduct investment-led

engagement, and continuously refine our responsible investment

approach. Our strategy emphasises financing a just and inclusive

transition, decarbonising our portfolio, and mainstreaming

responsible investments in emerging markets, which support our long-

term net zero targets and enhance our resilience to the impacts of

climate risks in different climate scenarios.

Our responsible investment approach to finance the transition to a

lower-carbon economy is key in managing climate risks whilst

generating long-term value for our shareholders (see Responsible

Investment section on page 24 of our Sustainability Report). To

mitigate these risks and pursue opportunities, we allocate capital to

financing the transition, with regular reviews alongside the

manifestation of transition risks.

Impact on strategic asset allocation

We integrate climate change into the strategic asset allocation (SAA)

and asset-liability management process which relies on our capital

market assumptions (CMAs). We use CMAs that are focused on the

countries where we operate and invest. Our CMAs are set using our

rigorous process that incorporates comprehensive research, economic

models, and projections of key drivers of economic variables. To

ensure our CMAs remain robust with regards to climate change, we

assessed climate scenarios’ potential impacts on them. We found in

2025 that there is no need to adjust our CMAs for climate change.

We will perform this assessment at least annually.

Impact on financial and strategic planning

We review our strategy and financial planning process annually and

stress-test the proposed strategy to assess its resilience. These stress

tests, which are conducted as part of our usual business activities and

consider stresses independent of climate change, are more stringent


	121 Prudential plc Annual Report 2025

than the scenarios outlined in the ‘Climate-related scenario testing’

section. The results of these business stress tests, combined with the

insights gained from the climate-scenario testing, provide us with

additional confidence in the strategy’s viability for the year ahead.

We also ask our local businesses to consider our sustainability strategy

and Responsible Investment Policy in their product development

processes and ongoing product evaluations.

Impact on access to capital

Occasionally, we seek to raise capital from bond or equity markets to

fund strategic opportunities like mergers, acquisitions, or new market

entry. Institutional investors are our primary source of capital, and we

expect them to continue to provide access to sufficient capital despite

potential impacts of climate change.

Our credit ratings remain high, based on credit rating agencies’

assessment of our business profile and financial flexibility, including

capital market access. ESG factors are regularly discussed in our

annual meetings with ratings agencies. To date, they have not

impacted our creditworthiness.

Impact on insurance liabilities

Given uncertainties around attributing the impact of climate risks on

incremental health risks, such as excess mortality and morbidity, we

have adopted a measured approach towards scenario analysis on our

insurance liabilities. This involved conducting an internal assessment

to evaluate the potential impact of various climate-related physical

risks (flood, extreme heat, air quality) and climate-related health risks

(eg vector-borne diseases, respiratory illnesses), based on current

available health studies and data. Through our assessment, we found

that air quality has the greatest potential impact, while the other

factors do not materially affect our insured markets and products.

Deterioration in mortality and morbidity due to air quality may impact our

liabilities and result in higher claims incidence in the future. However, data

gathered to date suggest that the total exposure of the population to

climate-related health and life risks is relatively small. Given the current lack

of developed experience analysis methodologies and tools to isolate

climate-related illnesses and deaths, we are currently unable to robustly

quantify the effects of climate on morbidity and mortality risks within our

Life & Health book. We continue to monitor external data, research and

industry practice relevant to experience analysis, and will over time refine

our approach, and build the tools and capabilities required to enhance the

quantitative analysis as data quality and methodologies improve,

enabling us to quantify the impact of climate risks on our Life & Health

book with greater accuracy.

Moreover, these internal assessments and external developments are

considered in our risk management process for our underwriting

activities where relevant, and we will update our Life & Health

strategy and products as we have clarity on these implications.

Impact on our operations

As extreme weather increases in frequency, our people and our

operations are potentially exposed to physical risks associated with

climate change. Strengthening our organisational resilience to these

risks is a key priority for us. The assessment determined that the

expected financial impact in a typical year is not material.

Our findings highlight that transition risks have an insignificant

impact on our operations. The greatest physical risks arise from severe

typhoons (under scenario SSP-8.5, 2050), especially for our buildings

within Hong Kong, and the second highest climate peril is flooding,

and mainly involves our buildings in the Philippines and Malaysia.

Typhoons emerge as the most significant acute peril, affecting 36 per

cent of the modelled property portfolio by floor area that houses 13

per cent of our employees. Floods affect 18 per cent of the modelled

portfolio by floor area, which houses 38 per cent of our employees.

Geographically, the Nigeria property portfolio exhibits the highest

portfolio risk due to multiple compounding hazards including extreme

precipitation, severe heat, drought, and recurrent flooding, while being

rated as medium-level exposure. Medium-level exposure is also observed

in the Philippines, Thailand, Japan, Vietnam, and China property portfolios.

These could result in one-off building repair costs, minor impairments

to PPE, or loss of business productivity during extreme events and

recovery periods. Notwithstanding adaptation measures, these risks

have a low impact on our financial position.

Physical risk mitigation and adaptation

Our strategic planning and asset-level resilience actions are informed

by the insights obtained from the climate scenario analysis of our real

estate portfolio and through embedding of climate risk considerations

into multi-horizon investment planning, asset management, and

operational continuity strategies. In response to the principal physical

risks identified across our real estate portfolio, Prudential is proactively

managing both acute (such as typhoons and floods) and chronic

(including extreme heat) stressors, through a combination of

operational planning, strategic capital investment, and robust risk

transfer mechanisms. Specific adaptation measures and strategic

responses are also detailed in the 'Evolving Our Climate Actions'

section of our Sustainability Report.


Portfolio Climate Risk Exposure Map^

ò	Negligible (0≤&<20)
ò	Low (20≤&<50)
ò	Medium (50 ≤ & <80)
ò	High ≥80

Exposure Rating
^ The exposure rating is categorised based on aggregated climate score across all climate perils, corresponding to their risk severity level. A 'Negligible' rating indicates minimal physical risk (climate score <20), while a 'High' exposure reflects significant risk (score >80).


	122 Prudential plc Annual Report 2025


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Managing climate-related risks and opportunities continued

Operational resilience improvement

We are strengthening our resilience frameworks to ensure business

continuity during and after climate-related events, with a focus on

critical service delivery to customers. Business Continuity Plans (BCPs)

have been developed across all operating locations and are being

continuously reviewed and enhanced to integrate region-specific

climate risks, while risk-driven crisis management plans are tested to

ensure response for climate hazards. These business continuity plans

include remote working arrangements for our employees to ensure

minimised business disruption and the safety of our workforce.

Asset-level climate resilience enhancement

We have completed climate resilience assessments for our five highest-

priority owned properties in Malaysia and Singapore. These assessments

evaluated system robustness including flood prevention systems and

façade conditions, system redundancy including chiller capacity and

water supply reliability, and historical susceptibility to extreme weather

events. Based on these findings, we will create capital plans over time to

implement physical upgrades to strengthen portfolio-wide resilience,

encompassing preventive maintenance programmes for building

structures, critical protective measures, and strategic infrastructure

investments where necessary.

Strategic leasing reposition

Given that the majority of our portfolio comprises leased assets, we are

embedding climate resilience into our leasing framework through

several key initiatives. We have undertaken site assessments to

understand climate risks associated with individual sites, and are looking

at ways to better collaborate with landlords to ensure protective

infrastructure and maintenance protocols are in place, and embedding

environmental sustainability impacts as part of the governance approval

process. These criteria will help us define minimum standards for site

selection and landlord responsibilities, helping safeguard operational

continuity across our leased portfolio.

Insurance partnership and collaboration

We have been working with our insurance providers to identify

opportunities to lower insurance premiums, and through this initiative

we have identified limited direct impact on our predominantly leased

portfolio. We will maintain active collaboration with insurers to

understand evolving climate risk assessments and market conditions.

These engagements inform our broader resilience strategy and support

constructive dialogue with landlords regarding property-level coverage

and risk management measures.

Identifying and responding to climate-related

opportunities

We are strengthening the climate resilience of our portfolios and

adopting a considered approach to assessing carbon intensity within

our investments. We are also continuing to incorporate climate

change considerations into our products and services

Low-carbon investment opportunities in the short and

medium term

As a substantial investor and asset owner with long-term investment

horizons and obligations, we actively pursue opportunities to invest in

financing mechanisms associated with climate mitigation and

resilience. Prudential proactively identifies and supports climate-

related opportunities to drive a just and inclusive transition in

emerging markets, aligning with our net zero commitment by 2050.

We have set a transition finance investment target and have

developed investment guidelines to fund companies shifting from

brown to green, which helps us to categorise our investments as from

those that are 'climate solutions', 'aligned' with a 1.5°C or below-2°C

pathway, committed to 'aligning' with these pathways, 'transitioning

amidst growth', and 'managed phase-out' (see diagram below).

When assessing new investment funds and strategies, we prioritise

'green' and 'brown-to-green' assets, as per these categories. Our

approach to financing the transition is documented in Prudential's

Financing the Transition (FTT) framework, published in September

2024. As of 31 December 2025, we have committed a cumulative

total of $1.5 billion in FTT portfolio investments since 2024. We are

tracking through our Investment Committee all additional

commitments to reach a cumulative total of $6 billion of FTT

portfolio investments by 2030. During 2025, we invested $400 million

across numerous leading funds, including the Eastspring Transition

Portfolio. Launched in October 2025, this vehicle actively invests in

climate transition opportunities across Asia-Pacific through a focused,

high-conviction portfolio. Companies in the fund are expected to

integrate climate mitigation or adaptation into their offerings, show

early signs of climate-related revenue growth, and uphold social

considerations for a just transition. One key holding (a diversified

mining company) is advancing steel decarbonisation technologies,

expanding into transition minerals, and targeting net zero emissions

by 2050 through measures like internal carbon pricing and

operational electrification.

Opportunities to upgrade and adjust our Life & Health

insurance propositions with high vulnerability to physical

climate risks in the long term

As an insurer focused on life, health and wealth products, we also

consider the opportunities presented to better serve our customers

who may experience climate-related impacts. We are starting to see

gradual improvements in public health studies establishing and

quantifying the causal effects of climate change on health risks. Our

partnership with the Earth Observatory Institute of Singapore also

helps explore the intersection of climate change and health across 10

selected markets in Asia and Africa.

As we recognise the potential impact of climate-related risks on

health, we see the opportunity for us to lead the way in responding to

these risks through the products and services we provide to our

customers. This is in line with our commitment to become the most

trusted Health partner across Asia and Africa. We ensure that

individuals from low- and middle-income backgrounds can access

protection against dengue fever, malaria, and measles while only

paying affordable premiums, with a product designed to address the

spread of tropical diseases in a changing climate. For example,

climate change impacts health and livelihoods through a mix of

factors, ranging from respiratory issues exacerbated by air pollution to

potential shifts in infectious disease patterns. Studies suggest a link

between rising temperatures, increased precipitation, and the spread

of vector-borne illnesses (such as malaria and dengue fever), although

the projected increase in their incidence remains uncertain and

sensitive to the local community context. In Vietnam, PRU-Tropical is

a product developed to help mitigate the financial burden and

consequences of climate-sensitive infections in one of our key

emerging markets. We are protecting over 19,000 policyholders and

limiting the financial suffering they experience on top of health-

related anxieties.

We will continue to monitor climate risks to identify and prioritise

opportunities to enhance our products and establish new services

where we see the most impact.


	123 Prudential plc Annual Report 2025



Group Sustainability Strategy

Simple and accessible health and financial protection	Responsible investment	Sustainable business

3 Responsible investment priorities


Financing a just and inclusive portfolio	Decarbonising our portfolio	Mainstreaming responsible investments in EMs


Financing the transition as an asset owner
L1: Group Responsible Investment Policy alignment	L2: FTT Category alignment	L3: Intentionality and measurability


3 climate solution classes
Climate mitigation	Climate adaptation	Nature-related solutions

Climate, air quality and health

Prudential plc entered a two-year research collaboration with

the Earth Observatory of Singapore (EOS) at Nanyang

Technological University to explore the relationship between

climate change and health across 10 key markets in Asia and

Africa. The initiative is known as the Prudential-EOS Climate

Impacts Initiative and is structured in two phases:

Phase 1: Historical analysis of air pollution and health impacts

(2000–2020).

Phase 2: Future projections under climate scenarios (up to

2050).

1. Climate variability and air quality

Climate events intensify wildfires and reduce pollutant

dispersion, worsening air quality. These phenomena elevate

PM2.5 levels, increasing risks of stroke, respiratory, and

cardiovascular diseases, especially in Southeast Asia. Events

like the El Niño and the Indian Ocean Dipole (IOD)

exacerbate the impacts significantly.

2. Regional health impacts

Results indicate varying impacts to air quality from climate

events under different socioeconomic pathways. Depending

on the scenario, some markets may see an increase in

PM2.5 by 2050, leading to more premature deaths while

others may experience a decline in PM2.5, potentially

reducing mortality from air pollution-related diseases.

3. Compound climate effects

The study highlighted that variabilities in geographies and

climate patterns contribute to the accumulation of air

pollutants. These effects, combined with socioeconomic

factors like industrial activity and energy choices, amplify

risks and impact health outcomes on asymmetric basis.

Potential for operational efficiency savings across

operations in the short and medium term

Prudential is committed to strengthening its operational resilience

and adopts a considered approach towards achieving carbon

neutrality across our Scope 1 and 2 emissions by 2030. To that end,

we developed our Environmental Management Framework (EMF) to

identify and assess targeted energy retrofits, RECs, and broader

decarbonisation opportunities. These opportunities both support cost

savings in terms of fuel and value creation for our property portfolio

and protect our property portfolio against policy changes while

driving long-term energy cost stability and savings. Over time, we

are reducing operating costs through lower utility consumption and

decreasing maintenance expenses through proactive operations.

Our refreshed Climate Transition Plan

This year we updated our Climate Transition Plan to transparently

show the alignment between our climate and business actions,

focusing on risk management and opportunities while placing our

fiduciary duties to our policyholders and shareholders at the centre.

Our evolved plan demonstrates our holistic approach to the climate

transition: focused not only on managing our climate risks by

decarbonising our in-scope Investment Portfolio and operations, but

also on strengthening the climate, health, and financial resilience of

our customers and communities through financing the transition and

community investment. Our strategy spans three key areas:

– Investments: Reducing our in-scope Investment Portfolio’s carbon

intensity while identifying opportunities in climate adaptation,

health resilience, and nature-related solutions;

– Operations: Reducing our operational emissions through our

targeted Environmental Framework, and embedding sustainability

into our people and culture through sustainability performance

goals, training and engagement; and

– Insurance: Developing inclusive products, partnerships, and

community initiatives, such as our foundation’s Climate Health and


	> For more details, please visit our website.

Resilience Fund, to help customers and communities build resilience

to climate impacts.


	124 Prudential plc Annual Report 2025


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Managing climate-related risks and opportunities continued

This integrated approach is to be delivered across local business units

and cross-functionally supported by a Sustainability Centre of

Excellence resources to help track, manage and report on progress.

This positions Prudential to deliver a just and inclusive transition,

protect vulnerable communities, and create sustainable value for

shareholders. For more details, refer to our Climate Transition Plan

report.

Impact of climate-related opportunities

The transition to a climate-resilient economy presents significant

strategic growth opportunities alongside its risks. Prudential is actively

leveraging these opportunities not only to mitigate climate-related

risks but also to position Prudential for competitive advantage. Our

approach integrates climate considerations into investment decision-

making to protect and enhance enterprise value over the short,

medium, and long term and we pursue opportunities arising from the

transition to a low-carbon economy. This includes financing

renewable energy, energy efficiency, and climate adaptation

initiatives, particularly in emerging markets where we can deliver

inclusive growth. By aligning our investment strategy with global

climate goals, we aim to capture superior risk-adjusted returns,

maintain strong ESG ratings, and secure continued access to capital

markets.

Renewable energy transition offers a pathway to reduce operational

costs, enhance energy security, and meet rising stakeholder

expectations. We are investing in clean energy solutions across our

operating locations to support decarbonisation and improve portfolio

performance. Building resiliency in the communities where we operate

is being done by strengthening our operational business continuity

planning, product innovation for our insurance offering, and adopting

and advocating for climate adaptation measures. This ensures our

assets, economies and the communities we operate in are better

equipped to withstand disruptions, minimise downtime, and maintain

long-term operational stability.

Operational efficiency enhancement is being pursued through targeted

energy retrofits, deployment of smart building technologies, and

optimisation of building operations. These initiatives reduce energy

intensity, lower emissions, and improve asset value.

Looking ahead, we are advancing our assessment methodologies to

better quantify both transition risks and opportunities. This will

enable the development of comprehensive measurement

frameworks that support climate-informed decision-making and

enhance resilience across our operations. Our assessment has

identified several key market opportunities that are shaping our

investment and operational strategies.

Impact on assets

Through our Financing the Transition approach, we identify attractively

valued opportunities into enablers, industry leaders, or high-impact

sectors with the explicit goal of enabling and accelerating the net zero

transition, and expect these opportunities to come in the short -medium

term. We currently have $1.5 billion of our portfolio as Financing the

Transition investments. We actively look for new investments that are

aligned with our framework across locations and sectors as this is

dependent on evolving market conditions. These commercially sensitive

opportunities can be disclosed as part of future public announcements of

each committed investment capital.

Nevertheless, we expect more of our assets to move towards low-

carbon sectors in the short term to meet our WACI reduction targets

and will update our disclosures as market certainty improves for us to

meaningfully quantify the anticipated financial effects of our

transition-aligned investments.

Impact on insurance products and services

Through our assessment, we found that increases in mortality and

morbidity due to air quality may impact our liabilities and therefore

result in higher claims incidence, particularly for morbidity and in

the long term. We see opportunities to make an impact in the

countries where we currently insure customers through the

identification of high vulnerability to morbidity risk due to poor air

quality. However, we are unable to quantify the effects of climate

on morbidity and mortality risks on our Life & Health book, or the

financial impact of climate risks on our Life & Health liabilities, due

to evolving methodologies and high levels of data measurement

uncertainties today. Hence, we have not quantified the share of our

portfolio aligned with opportunities (ie, those vulnerable to climate

health risks), but are continuing to monitor external data and

research. We will build tools and capabilities required to do a more

quantitative analysis when data quality and methodologies

improve and develop to enable us to quantify the impact of climate

risks on our Life & Health book with greater accuracy.

Where we identify the opportunity to develop products and services

that can address climate risks in relevant markets, we aim to support

the evolving protection needs of our policyholders and the insurance

solutions they need. We will not disclose the exact markets where we

plan to roll out these initiatives, or the anticipated financial effects we

expect from climate opportunities in our Life & Health portfolio, as

these are commercially sensitive.

Impact on our operations

To translate our Group-wide climate ambition into actionable

outcomes, we have partnered with business units to develop

tailored decarbonisation plans. These plans balance immediate

energy-saving measures with long-term carbon neutrality strategies.

Each business unit has established performance baselines and

specific targets, with progress tracked through a centralised

monitoring system. Annual reviews against verified year-end

emissions data ensure alignment with targets and allow for

adaptive refinement of initiatives.

Energy-efficiency optimisation

Through our EMF assessment, we have identified opportunities for

implementing continued operational efficiency improvements and

emissions reductions across our operations. Examples include

electrification of company vehicles; relocating our offices to new and

energy-efficient buildings; upgrading lighting systems with LEDs and

automated controls; and switching to renewable energy options for

markets where it is available and appropriately priced. We are actively

collaborating with our business unit to develop tailored environmental

roadmaps that capture identified opportunities to reduce emissions.

These roadmaps outline the anticipated implementation costs,

potential savings, and associated timelines. They will be periodically

reviewed with each business unit to assess progress, ensure

continuous updates, and maintain engagement with local

stakeholders – supporting ongoing alignment with the Group’s

commitment to realising climate-related opportunities. In 2025, we

continued on various projects across the Group to capture these

opportunities. These include on-site renewable energy installations in

Vietnam and Zambia and expansion of renewable energy

procurement in Vietnam and Taiwan. We expect to develop a more

comprehensive view of the share of our business activities aligned

with opportunities, as well as anticipated financial effects from the

opportunities in due course.

Renewable energy transition

While energy efficiency remains foundational, procuring and

generating renewable electricity is essential to achieving deep

decarbonisation. We continuously scan markets for viable schemes

and encourage local business units to participate in collaboration

with landlords and utility providers in programmes such as green


	125 Prudential plc Annual Report 2025

tariffs, Power Purchase Agreements (PPAs), International renewable

energy certificates (I-RECs), and on-site solar photovoltaic (PV)

installations where feasible.

We have been actively identifying opportunities to integrate

renewable energy solutions across our operations. By the end of

2025, 66 per cent of our renewable energy consumption was

covered by renewable energy agreements or certificates. In

Zambia the local BU has experienced significant disruption due to

the unreliability of the utility power grid. To address this

challenge, the team collaborated with the landlord to obtain

approval for the installation of solar panels. This initiative has

successfully reduced dependence on the unstable grid and

minimised the need for generator usage.

Our dual focus on energy efficiency and renewable energy

procurement is not only an emissions reduction strategy, but also a

core component of operational resilience. By reducing exposure to

volatile fossil fuel markets and strengthening energy independence,

we aim to safeguard business continuity against climate-driven

disruptions and regulatory shifts. We remain committed to evolving

our transition strategy in step with technological innovation, policy

development, and market opportunity, ensuring our actions contribute

to a just and inclusive decarbonisation transition across our

operational footprint in Asia, Africa, and Europe. Whilst Prudential’s

direct operational footprint is the primary focus, climate-related risks

and opportunities extend across the value chain. Landlord practices

significantly influence resilience outcomes for leased assets. We have

been working on identifying an opportunity to improve our

engagement with landlords to assess where infrastructure

improvements may be required, and review maintenance, and

emergency protocols on an ongoing basis. Similarly, we see the

importance of establishing partnerships and recognise that

collaboration with energy providers and third-party vendors is

critical to scaling renewable energy procurement and smart building

technologies. We continue to actively engage with utility providers

and to scan our markets for opportunities to implement renewable

energy solutions where feasible and financially viable.

Advocating for emerging market sustainability and

climate-related issues:

We are actively involved in advocating for emerging market

sustainability and climate-related concerns on a global level.

Our advocacy efforts extend beyond exploring the role of

investors in a just and inclusive transition in Asia and Africa. We

also engage with policy and regulatory stakeholders to promote

awareness of sustainability issues. Our outreach focuses on key

themes, including regulatory reform, blended finance,

harmonisation of standards and taxonomies, and nature. We

also continue to explore the impacts of climate change and

health through research partnerships. It is critical that

policymakers and communities have the knowledge and tools

to support them with climate change adaptation and

mitigation efforts.


	> For more information, please refer to the 'Harnessing thought leadership to shape the agenda' section within our Sustainability Report.

Evolving our climate actions

Climate change is a fast-moving issue, with new challenges and

solutions emerging all the time. We are continually looking to improve

our understanding of the challenges we face and the effectiveness of

our efforts to mitigate them.

At Prudential, our mission is to transform how we invest and insure

and create a lasting impact. As we continue to finance the transition

in emerging markets and beyond, we continue to embed climate

action into our business strategy and operations.

To safeguard our customers from the impacts of climate change

and build resilience for the future, we will continue to update our

climate transition actions and progress, aiming to make more

proactive contributions to a just and inclusive net zero transition

across our broad footprint in Asia and Africa. Our approach

addresses climate-related risks and opportunities across multiple

time horizons, from near-term actions within the next three years to

strategic positioning for the decade ahead and beyond.

Broadly, we will also seek to:

– Work with data providers and our asset managers to improve the

availability and quality of our Scope 3 investment book data,

including potential monitoring of other asset classes as

methodologies continue to develop;

– Undertake an exercise to map our material dependencies and

impacts on nature and biodiversity;

– Continue to explore climate-related opportunities, such as those

relating to our customers and digital services, climate-related

health products and services, and employee initiatives;

– Continue to develop localised, market-specific responsible

investment approaches;

– Explore additional opportunities to collaborate and partner with

relevant private and public entities on climate change and

transition financing; and

– Continue to engage with other financial market participants, local

regulators and stakeholders to advance the development of

frameworks that support our climate work in emerging markets.

targets and metrics.

Climate-related targets and metrics

– Our long-term pledge is to become net zero by 2050, and we have

established interim targets to measure our progress on the path to

net zero. These targets are designed to support the achievement of

the Paris Agreement goals to limit the increase in global average

temperatures to 1.5˚C above pre-industrial levels. Our intensity-

based targets are in line with industry recommendations, which

calculate appropriate Paris-aligned goals and include intensity-

based measures of progress.

– Since our carbon reduction journey began in 2018, we have

continually reviewed our approach and our commitments to assess

our progress towards our net zero pledge.

Carbon offsetting for our Scope 1 and 2 emissions

Prudential's strategy is to decarbonise where possible before

purchasing offsets; offsets do not form a core part of the

Group's core decarbonisation strategy, and hence Prudential

has not purchased any carbon credits for Scope 1 and 2

emissions in 2025. However, Prudential recognises the need to

use credible carbon credits to offset residual Scope 1 and 2

emissions that may remain beyond 2030, to meet our carbon

neutrality targets. We are currently assessing market integrity

frameworks and verification schemes to ensure any future use

of credits aligns with international best practice. As this work is

ongoing, we are unable to provide details on verification

schemes, credit types, or permanence assumptions at this stage

and will outline our work plan for developing these capabilities

in subsequent reporting periods.


	126 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Managing climate-related risks and opportunities continued

Progress against our climate-related targets:


Target		2025 progress
– Deliver a 55 per cent reduction in the weighted average carbon intensity (WACI) of our in- scope Investment Portfolio by 2030 against our 2019 baseline (gross target) – Target scope: All non-ILP Listed Equities and Corporate Bonds – This is an ambitious, but realistic target that will accelerate our progress towards becoming a net zero asset owner (net target)		– Achieved a 53 per cent reduction by the end of 2025 – The WACI of our portfolio is influenced by movements in the carbon intensity of the companies we invest in, movements in markets, availability of public carbon data for these companies, and changes to portfolio weights. Factors like inflation, increased emissions data, and changes in our assets may also cause WACI fluctuations. Therefore, we do not expect our decarbonisation progress to be linear, and do not rely solely on WACI as an indicator of our progress.
– Deliver a 25 per cent reduction in our operational emissions intensity from a 2016 baseline (gross target), and abate the remaining emissions via carbon offsetting initiatives to become carbon neutral across our Scope 1 and 2 (market-based) emissions by 2030 (net target)		– We have reduced our emissions intensity by 83 per cent from our 2016 baseline, achieving a ratio of 0.38 tCO2e/FTE in 2025. This puts on us on track to meet our 2030 target of 1.65 tCO2e/FTE. Our global absolute Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions decreased by 21 per cent since 2024. Despite ongoing progress in operational decarbonisation, our Scope 1 emissions increased by 11 per cent since 2024, due to grid reliability challenges in various markets contributing to higher emissions in 2025.
– Commit $6 billion of Financing the Transition (FTT) portfolio investments by 2030 to support a lower-carbon future		– As of 31 December 2025, Prudential had committed a cumulative total of $1.5 billion in FTT portfolio investments since 2024, through the FTT Framework.
– Engage with the companies responsible for 65 per cent of the absolute emissions in our in- scope Investment Portfolio		– Engagement completed for all identified companies during 2025. From 2026, we have shifted our annual corporate engagement target to focus on the top 40 companies that contribute the most to the absolute emissions within our in-scope Investment Portfolio and are assessed to be falling behind on transition requirements, spanning both listed equity and corporate bonds.

Carbon footprint by sector and asset class, as at 31 December 2025


	WACI (tCO2e/$m revenue)			Absolute Emissions (tCO2e)
	Total WACI	Listed Equity	Corporate Bonds	Total Abs. emissions	Listed Equity	Corporate Bonds
Communication Services	38	39	37	65,327	29,923	35,404
Consumer Discretionary	47	37	61	119,798	58,163	61,635
Consumer Staples	95	83	107	164,539	71,245	93,294
Energy	574	567	576	1,210,712	263,913	946,799
Financials	13	6	16	52,256	10,245	42,012
Health Care	19	25	15	35,794	13,925	21,869
Industrials	190	102	268	529,863	179,372	350,491
Information Technology	63	67	42	152,366	139,277	13,089
Materials	994	1,436	645	1,464,761	827,741	637,020
Real Estate	67	72	65	18,461	6,781	11,680
Utilities	1,409	1,166	1,453	2,068,285	242,752	1,825,533
Missing GICS Sector	9	–	14	49,717	–	49,717
Total	181	129	236	5,931,879	1,843,336	4,088,543

Utilities, materials and energy are the most carbon-intensive

sectors in our portfolio, which is aligned to real-world emissions.

The carbon footprint of our corporate bonds portfolio is higher

than for listed equity. This is mainly driven by the higher

allocation towards carbon-intensive sectors in our corporate bond

portfolio compared to listed equity, which is in line with

investment return benchmarks. Companies in carbon-intensive

industries often rely more on debt financing (bonds) than equity

financing which explains the higher carbon footprint of corporate

bonds.

Data availability

As a data user, we rely on information disclosed by investee

companies. To enhance data availability, we are working with both

data providers and our asset managers to improve disclosures. In

time, we expect the situation to improve as companies across regions

are increasingly required to make climate-related disclosures and face

increased scrutiny from stakeholders.

We are aware that expanding data coverage could impact

the WACI of our portfolio, either positively or negatively, as

newly disclosed data is included in our calculations.


	> For more detail on our direct environmental footprint, please refer to the Sustainable business section within our Sustainability Report.


	127 Prudential plc Annual Report 2025

Forward-looking metrics

We worked with our asset management and asset owner businesses

to develop forward-looking metrics that are suitable for our

operations. These metrics enable us to effectively manage and

report on climate-related risks, while integrating seamlessly into our

investment processes to help us uphold our responsible investment

framework. The impact on assets is presented in the Strategy

section on page 119.

Monitoring and shaping industry developments

We also have ongoing reviews of the Science Based Targets

initiative (SBTi) as part of our ongoing evaluation of our climate

targets. The global decarbonisation targets and pathways that

SBTi uses for verification only differentiate between the

requirements of emerging markets and developed markets in a

limited way. In line with our commitment to a just and inclusive net

zero transition, we believe it is crucial to recognise the transition

challenges faced by different countries and companies. This also

aligns with the Paris Agreement principle of ‘common but

differentiated responsibilities’, which our Responsible Investment

approach seeks to incorporate. We will continue to engage with the

SBTi and monitor whether their methodology can be applied

appropriately in our markets.


	> For more information on our participation in regional and global advocacy, please refer to the Harnessing thought leadership to shape the agenda section within our Sustainability Report.

Climate-related metrics

We continually review the climate metrics we use to assess their

suitability for our markets, considering factors like practicality of

implementation, data availability and coverage.

To measure our exposure to climate-related risks, we use a

combination of absolute emissions data and emissions intensity data.

Absolute emissions allow us to quantify the overall carbon footprint of

investments within our portfolio, while WACI data allows us to

compare carbon footprints relative to the revenue generated by

investments.

Measuring WACI enables us to compare emissions of investee

companies on an equal basis as it corrects for size. It also allows us to

assess improvements over time. WACI is useful as a proxy for

transition risk within our in-scope Investment Portfolio, with a higher

WACI within a sector usually indicating a gap in alignment with the

goals of the Paris Agreement. We, however, do not set or derive

sectoral decarbonisation targets and our overall targets were not set

based on the sectors we invest in.

To assess our operational emissions, we measure the reduction in

emissions intensity per full-time equivalent.

For our Scope 3 metrics, our disclosure is anchored in a materiality

assessment where Category 15: Financed Emissions contribute more

than 97 per cent of our total carbon emissions. We continue to

disclose several operational metrics that have been complementary

to Scope 1 and 2 monitoring (Category 3: Fuel and energy-related

activities, Category 5: Waste Generated in Operations) and Category

6: Business Travel and are committed to expanding coverage in line

with our sustainability strategy, striking a balance between the

growing effort required to strengthen data quality and coverage of

the carbon emissions within our value chain and the value of the

information for our stakeholders. We will update the progress and our

roadmap annually.


	> Further information on how the carbon footprint of our in-scope Investment Portfolio is calculated in line with industry best practice and standards is provided in the Carbon footprint section in the Basis of Reporting.

Carbon emissions profile as at 31 December 2025


n	Scope 1 and 2
n	Scope 3 – only including emissions associated with fuel- and energy-related activities, waste generated in operations and business travel, excluding category 15
n	Scope 3 category 15 – only including emissions associated with investments

Carbon emissions profile as at 31 December 2025


Scope 1 and 2	5,773*
Scope 3 – only including emissions associated with fuel- and energy-related activities, waste generated in operations and business travel, excluding category 15	15,531
Scope 3 category 15 – only including emissions associated with investments*	5,931,879*


	128 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Managing climate-related risks and opportunities continued


Movement in metrics	2025	2024
Target-related metrics
WACI (weighted average of tCO2e/$mil revenue)	181	179
Coverage for the WACI of the in-scope Investment portfolio	81%	80%
Engagement with the companies responsible for 65% of the absolute emissions in our in-scope Investment Portfolio	Reviewed 100%	Reviewed 100%
	Engaged 100%	Engaged 100%
Operational emissions intensity (tCO2e/FTE)	0.38	0.48
Our own operations
Scope 1 (tCO2e)	1,731*	1,562
Scope 2 – market-based (tCO2e)	4,042*	5,773
Scope 2 – location-based (tCO2e)	15,490*	16,967
Scope 3 (upstream activities)† (tCO2e)	15,531	17,295
Category 1: Purchased Goods and Services^	31	34
Category 3: Energy	4,614	4,147
Category 5: Waste	157	154
Category 6: Business travel	10,729	12,959
Our financed emissions
Scope 3: Downstream activities (financed emissions) (tCO2e) ^‡	5,931,879*	5,431,950

* Within the scope of EY assurance – for further information, see the Basis of Reporting.

† Includes Scope 3 categories: 3 (fuel- and energy-related activities, 5 (waste generated in operations) and 6 (business travel).

^ Category 1 data currently only contains water consumption data from our local businesses.

‡ Reflecting the absolute emissions of the assets in the WACI calculation where the underlying data is available as detailed in the Basis of Reporting.


	129 Prudential plc Annual Report 2025

Reference tables

Hong Kong Stock Exchange requirements


HKEX KPI requirement	Indicator	Disclosure
Environmental
Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and non-hazardous waste	A1	Our Sustainability Policy applies to our operational properties worldwide, guiding our approach to managing the direct impacts of our businesses. The policy details our approach to understanding and managing the Group’s direct environmental impact, including measurement, monitoring, review, and reporting of our environmental performance. In 2025, there were no confirmed instances of non-compliance in relation to such laws and regulations that would have a significant impact on the Group.
The types of emissions and respective emissions data Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions (in tonnes) and, where appropriate, intensity	A1.1 & A1.2	Prudential provides full reporting for Scope 1 and 2 emissions and selected Scope 3 reporting. More information is provided in Climate-related metrics section on pages 126-128.
			2025	2024	2023
		Direct Scope 1 emissions (tCO2e)	1,731	1,562	2,108
		Direct Scope 1 emissions (tCO2e/FTE)	0.11	0.1	0.14
		Direct Scope 1 emissions (kgCO2e/m2)	5.56	4.67	6.33
		Direct Scope 2 (market-based) emissions (tCO2e)	4,042	5,773	12,318
		Direct Scope 2 (market-based) emissions (tCO2e/FTE)	0.26	0.38	0.81
		Direct Scope 2 (market-based) emissions (kgCO2e / m2)	12.98	17.27	36.97

Total hazardous waste produced (in tonnes) and, where appropriate, intensity	A1.3	As a life insurer, the production of hazardous waste is not applicable to our operations.


Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity	A1.4		2025	2024	2023
		Total non-hazardous waste produced (tonnes)	449	385	379
		Total non-hazardous waste produced (tonnes/FTE)	0.03	0.03	0.02

		Waste associated with our operations includes office waste and limited food waste from canteens. As we occupy leased assets and smaller offices, waste is commonly controlled by the landlord or the municipal government via direct roadside collection. It is therefore not always possible to obtain waste data. We continue to work with our landlords in all the areas in which we operate to enhance the coverage of our reporting. During 2025, the scope of reporting of waste data cover 83% of our occupied floor area. Our produced waste went up during the year due to relocating the offices of our major Singapore entity.
Description of emissions target(s) set and steps taken to achieve them	A1.5	We have set a target to become carbon neutral across our Scope 1 and 2 (market-based) emissions by the end of 2030. We aim to deliver a 25% reduction per full-time equivalent (FTE) in our operational emissions from a 2016 baseline, then abate the remaining emissions via carbon-offsetting initiatives. To date, the steps we have taken are: – Carrying out site assessments for the highest-consuming assets in our portfolio to identify measures to reduce our carbon intensity. – Issuing our local businesses with tailored environmental roadmaps, which are updated on an annual basis and detail existing Scope 1 and 2 emissions, 2030 targets, and actions required to meet these goals. – Actively examining how we can procure renewable power for our office operations for certain markets.


	130 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
Description of how hazardous and non- hazardous wastes are handled, and a description of reduction target(s) set and steps taken to achieve them	A1.6	Non-hazardous waste is sorted in our offices and where possible recycled. The waste generated by our operations is managed by the landlord of the premises we occupy and therefore we are restricted in materials we can recycle by their operations. The waste we produce is not material to the overall environmental impact of our operations and as such, we do not currently have any targets in place to reduce the waste associated with our operations. We continue to encourage waste reduction across our operations, and we have implemented initiatives such as providing staff with reusable cups and lunchboxes to reduce consumption of single-use plastic. As a life insurer the production of hazardous waste is not applicable to our operations.
Policies on the efficient use of resources, including energy, water and other raw materials	A2	Our Sustainability Policy applies to our operational properties worldwide, guiding our approach to managing the direct impacts of our businesses. The policy details our approach to understanding and managing the Group’s direct environmental impact, including measurement, monitoring, review, and reporting of our environmental performance.
Direct and/or indirect energy consumption by type in total (kWh in ’000s) and intensity	A2.1
			2025	2024	2023
		Total Energy Consumption (kWh)	34,283,713	36,229,279	41,985,325
		Total Energy Consumption (kWh/FTE)	2,243.60	2,362.37	2,750.73
		More information is available in the SECR report on page 150.
Water consumption in total and intensity	A2.2	We are not currently able to report the water consumption of all our assets as some sites do not have water submetering or water is charged as part of the service charge. During 2025, the scope of reporting water data cover 63% of our occupied floor area.
			2025	2024	2023
		Total water withdrawal (m3)	86,551	97,902	138,960
		Total water withdrawal (m3/m2)	0.28	0.29	0.42

Description of energy use efficiency target(s) set and steps taken to achieve them	A2.3	We do not have explicit energy efficiency targets in place. However, 70 per cent of our Scope 1 and 2 carbon emissions are from the use of electricity. Thus, to achieve our carbon reduction targets, the implementation of energy efficiency measures is key. We have carried out site assessments across our asset portfolio and identified measures to reduce our impact. We have in turn developed roadmaps for our businesses with measures to implement to generate energy savings. We will continue to carry out these assessments and identify savings opportunities to reduce our energy consumption.
Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency target(s) set and steps taken to achieve them	A2.4	As a life insurer with office-based operations, water consumption and water efficiency are not material to our business. Currently, we do not have any targets in place to reduce the water used in our operations.
Total packaging materials used for finished products (in tonnes) and, if applicable, with reference to per unit produced	A2.5	As a life insurer, the use of packaging materials is not applicable to our business.
Policies on minimising the issuer’s significant impact on the environment and natural resources	A3	Our Sustainability Policy applies to our operational properties worldwide, guiding our approach to managing the direct impacts of our businesses. The policy details our approach to understanding and managing the Group’s direct environmental impact, including measurement, monitoring, review, and reporting of our environmental performance.
Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them	A3.1	The most significant impact of our activities on the environment is through our investment portfolio. More information about how we are reducing the weighted average carbon intensity footprint of our investment portfolio is available in the Decarbonising our portfolio section on page 109.


	131 Prudential plc Annual Report 2025

Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
Policies on identification and mitigation of significant climate-related issues which have impacted, and those which may impact, the issuer	A4	More information is available in the Identifying climate-related risks section on page 116, and the Managing, monitoring and responding to climate-related risks section on page 117.
Description of the significant climate-related issues which have impacted, and those which may impact, the issuer, and the actions taken to manage them.	A4.1	Different climate scenarios have different potential impacts on our businesses, strategy, and financial planning, as described in the Climate-related scenario analysis section on page 118. We have identified short-, medium- and long-term climate-related issues as described in the climate-related scenario analysis section on page 118. We have taken actions, including integrating our processes for identifying, assessing, and managing climate-related risks into our overall risk management, as described in the Assessing climate-related risks section on page 116 and Managing, monitoring, and responding to climate-related risks section on page 117. We also identified climate-related opportunities, as described in the Identifying climate-related risks section on page 125.
Social
Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti- discrimination, and other benefits and welfare	B1	Prudential's policies protect our employees by formalising its responsibilities and those of everyone in the organisation. More information on our Human Resources Policy can be found on page 148.
Total workforce by gender, employment type, age group and geographical region	B1.1
		Total workforce by gender	2025	2024	2023
		Other^	1.0	17.0	3.0
		Male	6,417.9	6,574.7	6,571.3
		Female	8,731.9	8,863.8	8.713.2

		Total workforce by employment type	2025	2024	2023
		Full-time	15,141.0	15,445.0	15,250.1
		Part-time	9.8	10.5	7.4

		Total workforce by age group	2025	2024	2023
		Other^	4.0	0.0	0.0
		Below 30	2,195.0	2,492.5	2,698.0
		30 – 50	11,582.6	11,691.3	11,428.8
		Above 50	1,369.2	1,271.7	1,130.7

		Total workforce by region	2025	2024	2023
		Asia	14,069.6	14,043.4	13,933.7
		Africa	928.0	1,241.0	1,202.0
		Europe & USA	153.2	171.1	121.8
		^includes workforce who prefer non-disclosure or gender neutral


	132 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
Employee turnover rate by gender, age group and geographical region Note: These numbers are representative of the overall turnover, including sales population and involuntary exits. We also have a second category for total turnover excluding involuntary turnover. This can be found in the section in our Empowering our people section.	B1.2
		Employee turnover rate by gender	2025	2024	2023
		Male	22%	20%	18%
		Female	21%	19%	16%

		Employee turnover rate by age group	2025	2024	2023
		Below 30	30%	29%	27%
		30–50	19%	17%	14%
		Above 50	22%	19%	20%

		Employee turnover rate by region	2025	2024	2023
		Asia	19%	20%	17%
		Europe and USA	24%	25%	18%
		Africa	43%	14%	11%
		Overall	21%	19%	17%

Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to providing a safe working environment and protecting employees from occupational hazards	B2	The Group Resilience Policy sets the governance framework for our local businesses to establish, implement and maintain comprehensive health and safety measures that are focused on the physical and mental health and wellbeing of our employees, contractors, visitors, and others who may be affected by our operations, to reduce risk levels to as low as is reasonably practicable. Our policy and operational standards are aligned with the global ISO 45001:2018 standards and include prescriptive minimum requirements for health and safety governance, legal requirements and programme framework.
Number and rate of work- related fatalities occurred in each of the past three years including the reporting year.	B2.1	There were no work-related fatalities in the reporting year (2024: nil; 2023: nil).
Lost days due to work injury.	B2.2	41 incidents resulting in 230 days lost to work-related injury.
Description of occupational health and safety measures adopted, and how they are implemented and monitored	B2.3	Occupational health and safety measures employ a framework and methodology based on ISO 45001 using predictive and reactive management tools that are centrally coordinated and locally executed. The measures are implemented and monitored using: – Defined policies, roles, responsibilities, and governance frameworks; – Legal registers to ensure compliance with relevant laws, regulations, rules, guidelines and codes issued by relevant regulators; and standards and codes issued by industry bodies where appropriate; – A comprehensive and sound risk management and internal control system to identify, quantify, prevent and reduce risk faced by our people and the business; – Incident reporting and investigation protocols; – Programmes for managing third-party risks in the procurement of equipment and provision of services; – Provision of appropriate information, instruction, and training; – Employee communication and consultation mechanisms; – Workplace welfare and wellbeing facilities and programmes; and – Mechanisms for monitoring, reviewing, reporting and improving performance.
Policies on improving employees’ knowledge and skills for discharging duties at work. Description of training activities	B3	The Human Resources Policy outlines how we invest in the upskilling and development of our people in order to ensure the continued success of the organisation. For more information, see page 148. More information is available in the Empowering our people section on page 112.


	133 Prudential plc Annual Report 2025

Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
The percentage of employees trained by gender and employee category	B3.1
		Percentage of employees trained by gender		2025	2024	2023
		Other^		100%	88%	0%
		Male		100%	92%	99%
		Female		100%	94%	99%

		Percentage of employees trained by employee category		2025	2024	2023
		Rank & file		99%	96%	98%
		Middle level		99%	88%	99%
		Top level		99%	77%	99%
		^ Includes workforce who prefer non-disclosure or gender neutral
The average training hours completed per employee by gender and employee category Note: The total training hours per employee is likely to far exceed this as the number of hours that employees take to complete their non- mandatory training courses are not wholly captured in our system.	B3.2
		Average training hours completed per employee by gender		2025	2024	2023
		Male		14.6%	14.5%	14.8%
		Female		14.8%	16.5%	14.1%
		Other^		3.7%	3.7%	N/A

		Average training hours completed per employee by employee category		2025	2024	2023
		Top level		11.0	13.9	16.7
		Middle level		17.9	15.8	15.3
		Rank & file		13.4	15.6	13.9
		^ Includes workforce who prefer non-disclosure or gender neutral
Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to preventing child and forced labour	B4	We are committed to ensuring that slavery, human trafficking, child labour or any other abuse of human rights has no place in our organisation or supply chain. The nature of our business means that main risk would be in our supply chain. More information is available in the Good governance and responsible business practices section on page 113, and in the Responsible procurement practices and Combating modern slavery sections of the Sustainability Report on pages 32 and 50.
Description of measures to review employment practices to avoid child and forced labour Description of steps taken to eliminate such practices when discovered	B4.1, B4.2	We believe in supporting human rights and acting responsibly and with integrity in everything we do. These are also reflected within our Group Code of Conduct, which sets out the Group’s values and expected standards of behaviour for all employees, and in our Group Third-Party Supply and Outsourcing Policy, which describes how we work with suppliers. The nature of our business means that main risk would be in our supply chain. More information is available in the Good governance and responsible business practices section on page 112, and in Responsible procurement practices and Combating modern slavery sections of the Sustainability Report on pages 32 and 50.
Policies on managing environmental and social risks of the supply chain	B5	Our Group Code of Conduct outlines the values and standards that are required by each of our suppliers. Our Group Third-Party Supply and Outsourcing Policy is core to our supply chain governance and our responsible supplier guidelines cover a range of ESG topics. More information is available in the Responsible procurement practices section of the Sustainability Report on page 32.
Number of suppliers by geographical region	B5.1
					2025^#	2024
		Asia			5,558	6,537
		Africa			821	1,177
		Europe & US			218	141
		Group			6,589†	7,569

		# 12 months of data as of 1 January 2025 and 31 December 2025.
		†	Group amount represents the number of unique suppliers across the Group, it does not equate to the sum of suppliers from Asia, Africa, and Europe/US in 2025, as they represent the number of unique suppliers per region.


	134 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
Description of practices relating to engaging suppliers, number of suppliers where the practices are being implemented, and how they are implemented and monitored	B5.2	In 2025, the Group's third-party risk assessment platform, Coupa Risk Assess, continued to strengthen our visibility of third-party risks such as information and technology security concerns, data privacy, anti-bribery and corruption and business continuity and resiliency risks. Through this system, we also issue due diligence questionnaires aligned to the principles of the responsible supplier guidelines. More information is available in the Responsible procurement practices section of the Sustainability Report on page 32.
Description of practices used to identify environmental and social risks along the supply chain, and how they are implemented and monitored	B5.3	More information is available in the Responsible procurement practices and Combating modern slavery sections of the Sustainability Report on pages 32 and 50.
Description of practices used to promote environmentally preferable products and services when selecting suppliers, and how they are implemented and monitored	B5.4	In line with the Group Third-Party Supply and Outsourcing Policy, we have introduced responsible supplier guidelines. Our responsible supplier guidelines cover a range of ESG topics. More information is available in the Responsible procurement practices section of the Sustainability Report on page 32.
Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of redress	B6	Our Group Customer Conduct Risk Policy includes our Customer Conduct principles and sets out the core values and standards that the Group expects all employees and persons acting on behalf of it to observe. More information is available in the Meeting the changing needs of our customers section on page 112. Our Group Data Policy defines how we should manage data throughout its life cycle and employ the technology best suited for the business use cases. More information is available on page 149. Our Group Information Security and Privacy Policy governs the protection of data and complies with the General Data Protection Regulation. More information is available on page 149.
Percentage of total products sold or shipped subject to recalls for safety and health reasons	B6.1	As a life insurer, this is not applicable to our business.
Number of products and service-related complaints received and how they are dealt with	B6.2	17,994 (2024: 19,492) In 2025, complaints per 1,000 policies maintained at 1 (2024: 1 complaint per 1,000 policies in force). More information on how we deal with customer complaints is available on page 49 of the Sustainability Report.
Description of practices relating to observing and protecting intellectual property rights	B6.3	Prudential’s brands, being the Prudential and Eastspring names and the Face of Prudence, are considered as our intellectual property. These are protected by a comprehensive process to maintain registered trademarks in the brand across all of the markets in which we operate. This is supported by a brand Co-existence Agreement with Prudential Financial and M&G plc. Where we see infringements of our brand, we take active steps to enforce our rights against third parties.
Description of quality assurance process and recall procedures	B6.4	A description of our quality assurance procedures, including our approach to responsible product development, is available in the Meeting the changing needs of our customers section of the Sustainability Report on page 48. As a life insurer, product recall procedures are not relevant to our business.
Description of consumer data protection and privacy policies, and how they are implemented and monitored	B6.5	Our Group Data Policy defines how we should manage data throughout its life cycle and employ the technology best suited for the business use cases. More information is available on page 149. Our Group Information Security and Privacy Policy supports our resilient information security programme across the organisation and our commitment to protecting the data entrusted to us by customers. It also governs the protection of data and complies with the General Data Protection Regulation. More information is available on page 149.


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Hong Kong Stock Exchange requirements continued


HKEX KPI requirement	Indicator	Disclosure
Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundering	B7	More information on the following policies is available on page 149: – Group Financial Crime Risk Policy – Anti-Money Laundering and Sanctions Policy – Group Speak Out and Investigations Policy In 2025, there were no confirmed instances of non-compliance in relation to such laws and regulations that would have a significant impact on the Group.
Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases	B7.1	Nil (2024: nil)
Description of preventive measures and whistleblowing procedures, and how they are implemented and monitored	B7.2	More information is available in the Whistleblowing section of the Sustainability Report on page 51.
Description of anti- corruption training provided to directors and staff	B7.3	We provide training to our staff to ensure that they are familiar with international standards and best practice, as well as to equip them to implement our policies in their respective markets. Training completion levels are monitored throughout the year.
Policies on community engagement to understand the needs of the communities where the issuer operates and to ensure its activities take into consideration the communities’ interests	B8	Prudence Foundation ensures that its investments and activities align with the Group's values by adhering to the Sustainability Policy. This policy covers how we are committed to working with the communities in which we operate as active and supportive members. It also outlines our strategy for investing in the community and how we make investments and report against them. It is our policy to refrain from making political or religious donations, and we do not contribute to political parties or incur political expenditure, as defined by the United Kingdom Political Parties, Elections and Referendums Act 2000. We follow the Corporate Social Responsibility and Sponsorship Anti-bribery and Corruption guidelines to ensure that its programmes and activities are not exploited for sales opportunities.
Focus areas of contribution	B8.1
		Total Cash contribution by area of focus %	2025	2024	2023
		Education	42%	48%	57%
		Social and welfare	36%	36%	30%
		Environment	1%	2%	2%
		Cultural	0%	0%	0%
		Other	3%	5%	4%
		Emergency relief	17%	4%	3%
		Health	1%	5%	4%
		Economic development	0%	1%	0%
		Payroll giving	0%	0%^#	0%^#

		# While each rounds to 0% on an individual line basis, the sum of environment, cultural, and payroll giving contributes to 1% in total.

		Total Cash contribution by region %	2025	2024	2023
		Asia	99%	95%	95%
		United Kingdom	0%	0%	0%
		Africa	1%	5%	5%
Resources contributed to the focus area	B8.2	Over the course of 2025, Prudential invested a total of $16.1 million (2024: $12.5 million) in community programmes through the Prudence Foundation – our community investment arm – and other community programmes led by our local markets. It showed our continued commitment to bringing our sustainability goals to life with action and investment in the communities we operate in. More information is available in the Building resilient communities section in the Sustainability Report on page 21.


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Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

SASB Insurance Standard


SASB topic	Accounting metric	Code	Disclosure
Transparent Information and Fair Advice for Customers	Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of insurance product- related information to new and returning customers	FN-IN-270a.1	$0m (2024: $0m)
	Complaints-to-claims ratio	FN-IN-270a.2	Total number of complaints received/total claims raised x 1,000 =6 (2024: 7) Prudential believes that this metric is less applicable to the life insurance sector, and that a more appropriate metric is the number of complaints per 1,000 policies in force, which has improved to 1 (2024: 1 complaints per 1,000 policies in force).
	Customer retention rate	FN-IN-270a.3	88% (2024: 87%)
	Description of approach to informing customers about products	FN-IN-270a.4	More information on the way we communicate with customers and our approach to responsible marketing is available in the Meeting the changing needs of our customers section of the Sustainability Report on page 48.
Policies Designed to Incentivise Responsible Behaviour	Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment management processes and strategies	FN-IN-410a.2	We integrate ESG factors into all our investment decisions. This complements the traditional financial analysis we conduct, in order to better manage risk and generate sustainable long-term returns for our customers. ESG integration applies to the entire investment process, and all relevant Group investment teams are expected to demonstrate how ESG considerations are embedded into investment decisions. This includes our asset manager Eastspring Investments, whose Responsible Investment Policy contains more detail on how it aligns with that of Prudential Group, while also allowing flexibility for the investment strategies of third-party clients (ie non-Prudential clients).
	Net premiums written related to energy efficiency and low-carbon technology	FN-IN-410b.1	As a life insurer, this metric is not applicable to our business.
	Discussion of products and/or product features that incentivise health, safety, and/ or environmentally responsible actions and/or behaviours	FN-IN-410b.2	Our Health business focuses on medical treatment cover and reimbursement and other protection products such as life and critical illness policies. Our priorities include offering integrated health propositions to address customers’ evolving healthcare needs. We continue working to strengthen our healthcare capabilities across underwriting, claims, provider management and health analytics.


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SASB Insurance Standard continued


SASB Topic	Accounting metric	Code	Disclosure
Environmental Risk Exposure	Probable maximum loss (PML) of insured products from weather-related natural catastrophes	FN-IN-450a.1	As a life insurer, this metric is not applicable to our business.
	Total amount of monetary losses attributable to insurance payouts from (1) modelled natural catastrophes and (2) non-modelled natural catastrophes, by type of event and geographic segment (net and gross of reinsurance)	FN-IN-450a.2	As a life insurer, this metric is not applicable to our business.
	Description of approach to incorporation of environmental risks into (1) the underwriting process for individual contracts and (2) the management of firm-level risks and capital adequacy	FN-IN-450a.3	Our annual review process monitors potential climate-change impacts that may affect morbidity, mortality, and persistency levels across different regions. We then consider how these factors may impact our products. We also analyse the distribution of our customers across these various locations to assess their vulnerability to extreme climate events in order to improve our understanding of both our exposure, and that of our customers, to climate risks. As a life and health insurer, we recognise the potential for climate change and government policies to impact the assumptions underlying our underwriting liabilities. Currently, we believe there is insufficiency of and uncertainty in data that would allow us to reliably use these assumptions for the valuation of our underwriting liabilities. Thus, the Group’s assumptions for our life and health insurance business currently do not include additional assumptions related to the impacts of climate change. We will continue to engage with our regular experience analysis, to engage with reinsurers and monitor relevant academic studies. If material changes occur, we will consider the financial impacts of climate-related risks on our insurance liabilities.
Systemic Risk Management	Exposure to derivative instruments by category: (1) total potential exposure to non-centrally cleared derivatives, (2) total fair value of acceptable collateral posted with the Central Clearinghouse, and (3) total potential exposure to centrally cleared derivatives	FN-IN-550a.1	(1) Total potential exposure to non-centrally cleared derivatives $50.917m (2) Total fair value of acceptable collateral posted with the Central Clearinghouse Nil (3) Total potential exposure to centrally cleared derivatives Nil
Activity Metric	Total fair value of securities lending collateral assets	FN-IN-550a.2	$28.9m
	Description of approach to managing capital and liquidity- related risks associated with systemic non-insurance activities	FN-IN-550a.3	A description of our approach is covered in the Risk section, under the discussion of the Group’s principal risks on page 59.
	Number of policies in force, by segment: (1) property and casualty, (2) life, (3) assumed reinsurance	FN-IN-000.A	Total policies in force, all in life segment: 16,582,530 (2024: 17,318,800)


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Managing climate-related risks and opportunities index


Item	Prudential Group response	Location
Governance
HKEX Listing Rules Appendix C2, paragraph 19; TCFD 1(a-b), 3(a-b), 4(a)
a. Describe the Board’s oversight of climate-related risks and opportunities
The processes and frequency by which the Board and committees are informed about climate-related issues	In line with both TCFD and S2, we outlined in located sections that the Board-level Sustainability Committee oversees sustainability strategy, including on environment and climate-related risks and opportunities, in collaboration with other Board-level committees and supported by management-level committees. Prudential treats climate risk as a thematic cross-cutting risk type, with the potential to impact or amplify multiple existing risks that we manage. For S2, we additionally clarified that Prudential plc’s Board includes members with diverse expertise including sustainability, risk management, finance and regulatory compliance and the training Board members received in 2025; as well as the multi- disciplinary approach applied in our Group governance manual and committee structures.	Sustainability governance on page 115 Identifying climate-related risks on page 116 Risk governance on page 56
How the Board and committees incorporate climate-related issues into decision-making	In line with both TCFD and S2, we explained in located section that sustainability matters, including climate-related risks and opportunities, are overseen by the Board, which is responsible for determining overall strategy and prioritisation of key focus areas.	Sustainability governance on page 115
How the Board monitors and oversees progress against climate-related goals and targets	In line with both TCFD and S2, we outlined the frequency of meetings at the Board- level Sustainability Committee, and the topics discussed in the meeting agenda, which include Prudential’s Climate Transition Plan, geopolitical-risks and impact on Sustainability and sustainability-linked remuneration, and progress against our climate targets.	Sustainability governance on page 115
b. Describe management’s role in assessing and managing climate-related risks and opportunities
Climate-related responsibilities and accountability	In line with both TCFD and S2, we outlined in the located sections the composition and responsibility of the Group Executive Sustainability Committee (GESC), which met 4 times in 2025 to discuss climate-related strategy. Furthermore, we explained the governance of the metrics related to sustainability and how they are integrated with the long-term incentive programme of Prudential.	Sustainability governance on page 115
Organisational structure	In line with both TCFD and S2, we outlined in the located section the climate-related organisational structure.	Management oversight on page 115 Sustainability governance organisation chart on page 103
How management is informed about and monitors climate-related issues	In line with both TCFD and S2, we outlined in located section the management and monitoring of sustainability via a multi-disciplinary approach with reliance on the Group Governance Manual. Our enterprise risk management process, which is how management is informed on climate related matters, is described in the Risk governance section of the Annual Report.	Management oversight on page 115 Identifying climate-related risks on page 116 Risk governance on page 56


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Managing climate-related risks and opportunities continued


Item	Prudential Group response	Location
Strategy
HKEX Listing Rules Appendix C2, paragraphs 20-26; TCFD 2(a-c), 4(a)
a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term
Definition of short-, medium-, and long-term time horizons	In line with both TCFD and S2, we have defined the relevant short-, medium-, and long-term time horizons in the located section.	Assessing climate-related risks on page 116
Climate-related issues potentially arising in each time horizon	In line with TCFD and S2, we have identified the specific climate-related issues that could impact cash flow and access to finance or cost of capital potentially arising in short-, medium- and long-term time horizons, and whether this risk could be a physical or transition risk.	Assessing climate-related risks on page 116
Processes used to determine which risks and opportunities could have a material financial impact on the organisation	In line with TCFD and S2, we outlined the climate-related risks and opportunities that could have a material financial impact on our organisation, as described in the located sections.	Identifying climate-related risks on page 116 Assessing climate-related risks on page 116 Impact on assets on page 120 Impact on financial and strategic planning on page 121 Identifying and responding to climate-related opportunities on page 123
Description of risks and opportunities by sector and/or geography	In line with TCFD and S2, we have identified specific risks and opportunities to our investments, our operations (through the real-estate portfolio) and our insurance products in the located sections. We also detail any impacts this could have on our value chain, and the mitigation and adaptation actions we take to improve operational resilience.	Impacts on assets on page 120 Impact on operations on page 122 Impact on Insurance on page 122 Impact on financial and strategic planning on page 121 Impact on our operations on page 122


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Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Strategy
b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning
How identified climate- related issues have affected our business, strategy, and financial planning	In line with TCFD and S2, we considered the impact on the following in the located report sections: – Adaptation and mitigation activities; – Investment in research and development; – Operations; and – Access to capital. We did not have major strategic acquisitions or divestments during the year, nor did we find any items for which there is a high chance of a material adjustment within the next annual reporting period.	Impact of climate-related risks on our business on page 119 Impact of climate-related opportunities on page 125 Progress against our climate-related targets on page 127 Impact on access to capital on page 122
How climate-related issues serve as an input to our financial planning process	In line with TCFD and S2, climate-related issues serve as an input to our financial and strategic planning, as described in the Impact on financial and strategic planning section, while risks are prioritised using the processes described in The Group’s principal risks and the Risk governance sections. For S2, we outline how our financial position is expected to change, as driven by changes in the value of assets, operations and insurance products, in the located sections. For assets, we describe our use of modelling tools to observe underlying drivers of potential short- and medium-term impacts to the investment portfolio, as related to transition and physical risks. For liabilities, the reasonable information relief is being utilised as there is shortage of reasonable and supportable information that is available at the reporting date without undue cost or effort.	Impact on financial and strategic planning on page 121 Current financial impacts on assets on page 120 The Group’s principal risks on page 59 Risk governance on page 56 Impact of climate-related opportunities on page 125 Impact on assets on page 120 Impact on our operations on page 125 Impact on insurance liabilities on page 122
The impact of climate- related issues on financial performance	In line with TCFD and S2, we assess the potential impact of climate-related issues on our financial performance, as described in Impact of climate-related risks on our business across investments, operations and insurance. We also outline our annual review of strategy and financial planning process. These are part of usual business activities and consider stresses independent of climate change. Such results, combined with insights gained from climate-scenario testing, provide additional visibility on the potential impact of climate-related issues on financial performance. These are outlined in the Impact on financial and strategic planning section. For S2, the impact of climate change on Prudential’s current financial position, financial performance and cash flows for the reporting period, is outlined for assets, operations and in the Current financial effects section.	Impact of climate-related risks on our business on page 119 Impact on financial and strategic planning on page 121 Current financial effects on page 119
Our plans for transitioning to a low- carbon economy	In line with TCFD and S2, we have made GHG emissions reduction commitments and have outlined our potential ways of achieving these goals, as described in the located section and in our Climate Transition Plan.	Progress against our climate-related targets on page 127 Climate Transition Plan
How climate-related risks and opportunities are factored into relevant investment strategies	In line with TCFD and S2, we outline the usage of strategic asset allocation process to factor in climate-related risks and opportunities, as described in the Impact on strategic asset allocation section. We pursue these opportunities through our responsible investment approach, as described in our Group Responsible Investment Policy.	Impact on strategic asset allocation on page 65 Group Responsible Investment Policy


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Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Strategy
c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario
Guidance for all sectors
How our strategy is resilient to climate- related risks and opportunities	In line with TCFD and S2, we outline our assessment of the resilience of our strategy and financial plan against four different climate scenarios and have confidence that they remain viable, as described in the Impact on our businesses, strategy and financial planning section. The assessment considered scenarios both 2°C or lower and with increased physical climate-related risks, as described in the Climate-related scenario analysis section.	Impact on financial and strategic planning on page 121 Climate-related scenario analysis on page 118
How our strategy will be affected by climate- related risks and opportunities	In line with TCFD and S2, we recognise that our business purpose and strategy allows us to generate climate-related opportunities (including our investments and products and services) for the Group, as described in the sections located. We also identify climate-related risks that affect our strategy, as described in the sections identified.	Impact of climate-related opportunities on page 125 Identifying climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117 Impacts on assets on page 120 Impact on operations on page 122 Impact on Insurance on page 122
How our strategy might change to address potential risks and opportunities	We recognise that our business purpose and strategy allows us to generate climate- related opportunities (including our investments and products and services) for the Group, as described in the Identifying and responding to climate-related opportunities section. Our strategy may also be impacted by climate-related risks, as described in Identifying and assessing climate-related risks section, and we assess and manage these risks, as described in the Managing, monitoring and responding to climate- related risks section.	Identifying and responding to climate-related opportunities on page 123 Identifying climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117
A description of the climate-related scenarios used	We use climate-related scenarios, including below 2°C scenarios, as described in the Climate-related scenario analysis section. We identified the related time horizons, as set out in the Assessing climate-related risks section.	Climate-related scenario analysis on page 118 Assessing climate-related risks on page 116
A description of how climate-related scenarios are used, such as to inform investments in specific assets	In line with TCFD and S2, we outline our strategic asset allocation process to inform investments in specific assets, as described in the Impact on strategic asset allocation section. The climate-related scenarios we use in the strategic asset allocation process are described in the Climate-related scenario analysis section. We pursue these opportunities through our responsible investment approach, as described in our Group Responsible Investment Policy.	Impact on strategic asset allocation on page 121 Climate-related scenario analysis on page 118 Group Responsible Investment Policy


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Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Risk management
HKEX Listing Rules Appendix C2, paragraphs 27; TCFD 3(a-c)
a. Describe the organisation’s processes for identifying and assessing climate-related risks
Risk management processes for identifying and assessing climate- related risks	In line with TCFD and S2, we outlined in located section that we have established enterprise risk management processes in place for determining the relative significance of climate-related risks in relation to other risks, as described in the ‘The Group’s principal risks and Risk governance sections. For S2, we additionally clarified in section ‘Climate-related scenario analysis’ the various tools and data assumptions utilised in forward-looking assessment of climate risks on different parts of the Company’s portfolio and how they are based on decarbonisation pathways.	Assessing climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117 The Group’s principal risks on page 59 Risk governance on page 56 Climate-related scenario analysis on page 118
Whether and how the issuer uses climate- related scenario analysis to inform its identification of climate- related risks and opportunities (S2)	For S2, we have provided additional details of the selected scenario methodologies appropriate to the size, nature and complexity of our organisation and how the tools applied to both the Investment and Operational portfolios utilise aligned scenarios from both the Network for Greening the Financial System (NGFS), as well as United Nations Intergovernmental Panel on Climate Change (IPCC).	Climate-related scenario analysis on page 118 Managing, monitoring and responding to climate- related risks on page 117
Existing and emerging regulatory requirements related to climate change	In line with both TCFD and S2, we consider existing and emerging regulatory requirements related to climate change, as described in located sections.	Assessing climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117
Processes for assessing the likelihood, magnitude and scope of identified climate- related risks and opportunities and whether the company has changed the processes used compared to prior reporting period	For both TCFD and S2, we have outlined processes for assessing the size and scope of climate-related risks, as described in the located sections. For S2, additional disclosures around opportunities (related to Financing the Transition, and our insurance products) are outlined in our Impact on assets, and Identifying and responding to climate-related opportunities sections. See Risk governance section in the Annual Report and Accounts for general discussion of risk review processes and systems at Group level.	Managing, monitoring and responding to climate- related risks on page 117 Impact on assets on page 125 Identifying and responding to climate-related opportunities on page 123 Risk governance on page 56
Engagement activity with investee companies	We have adopted an active and impactful approach to asset ownership, which emphasises direct and constructive dialogue with investee companies on sustainability and governance issues, as described in the Responsible investment section.	Responsible investment on page 110
b. Describe the organisation’s processes for managing climate-related risks
Managing climate- related risks	We have processes for managing and prioritising climate-related risks, as described in the Assessing climate-related risks section, and the Managing and responding to climate-related risks section. These are also described in the The Group’s principal risks and Risk governance sections in the Annual Report and Accounts.	Assessing climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117 The Group’s principal risks on page 59 Risk governance on page 56
Positioning of our total portfolio with respect to the transition to a low- carbon energy supply, production, and use	We have implemented decarbonisation targets to prepare the portfolio for the transition to a low-carbon economy, as described in the Progress against our climate- related targets section. We have developed our responsible investment policy, including our six implementation strategies, to actively manage our portfolio’s positioning, as described in the Group Responsible Investment Policy.	Progress against our climate-related targets' on page 127 Group Responsible Investment Policy


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Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Risk management
c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management
Integrating climate- related risks into our overall risk management	We identify, assess and manage climate-related risks, as described in the ‘Assessing climate-related risks’ section, and the Managing and responding to climate-related risks section. These risks are integrated into our risk management framework, as described in the System of governance and Risk governance sections.	Assessing climate-related risks on page 116 Managing and responding to climate-related risks on page 63 System of governance on page 56 The risk management cycle on page 58
Metrics and targets
HKEX Listing Rules Appendix C2, paragraphs 28-41; TCFD 2(a-c), 4(a-c)
a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process
Key metrics used to measure and manage climate-related risks and opportunities	We use a suite of key metrics to measure and manage climate-related risks and opportunities, as described in the Climate-related metrics section, including absolute and intensity metrics. The following metrics are provided: – Absolute Scope 1, Scope 2, Scope 3 in the Climate-related metrics section; – Proportion of executive management remuneration linked to climate considerations in the Directors’ remuneration report. We describe the following qualitatively: – Amount and extent of assets or business activities vulnerable to transition and physical risks in the Impact on assets section and Impact on our operations sections – Proportion of revenue, assets, or other business activities aligned with climate- related opportunities in the Identifying climate-related opportunities section; and – Amount of capital expenditure, financing, or investment deployed toward climate- related risks and opportunities in the Impact of climate-related opportunities section	Progress against our climate-related targets on page 127 Climate-related metrics on pages 128-129 Directors’ remuneration report on page 208 Impacts on assets on page 120 Impact on our operations on page 122 Identifying climate-related opportunities on page 125 Impact of climate-related opportunities on page 125
Metrics on climate- related risks associated with water, energy, and waste management	We provide, where relevant and applicable, metrics on climate-related risks associated with water, energy, and waste management in the Hong Kong Stock Exchange requirements section.	Hong Kong Stock Exchange requirements on page 134
How performance metrics are incorporated into remuneration policies	We incorporate climate-related performance metrics, as described in the Directors’ remuneration report section.	Directors’ remuneration report on page 208
The internal carbon prices we use as well as climate-related opportunity metrics	We use carbon prices in our scenario testing, as described in the Carbon prices used in scenario testing section.	Carbon prices used in scenario testing on page 119


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Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

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Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Metrics used to assess climate-related risks and opportunities	We provide the metrics used to assess climate-related risks in the Climate-related metrics section. We discuss qualitatively the climate-related risk management process in the Assessing climate-related risks section, and the Managing, monitoring and responding to climate-related risks section, as well as opportunities from products and services designed for a lower-carbon economy in the Identifying and responding to climate-related opportunities section.	Progress against our climate-related targets on page 127 Climate-related metrics on pages 128-129 Assessing climate-related risks on page 116 Managing, monitoring and responding to climate- related risks on page 117 Identifying and responding to climate-related opportunities on page 123
Metrics for historical periods	We provide historical metrics in the Progress against our climate-related targets section and the Climate-related metrics section, so as to allow for trend analysis.	Progress against our climate-related targets on page 127 Climate-related metrics on pages 128-129
Forward-looking metrics	We qualitatively discuss forward-looking metrics in the Forward-looking metrics section.	Forward-looking metrics on page 128
Methodologies used to calculate or estimate climate-related metrics	We describe the methodologies used to calculate our climate-related metrics in our Basis of Reporting, so as to provide a single consistent description of the methodologies.	Basis of Reporting
Our Scope 1 and Scope 2 GHG emissions and appropriate Scope 3 GHG emissions	We provide our Scope 1, Scope 2 and relevant Scope 3 GHG emissions in the Climate-related metrics section.	Climate-related metrics on pages 128-129
Metrics used to assess climate-related risks and opportunities in each fund or investment strategy	Weighted average carbon intensity (WACI) is useful as a proxy for transition risk within our investment portfolio, as a higher WACI usually indicates a gap in alignment with the goals of the Paris Agreement. Measuring WACI enables us to compare the intensity of emissions for different portfolios and assess improvements over time. More information can be found in the Climate-related metrics section.	Climate-related metrics on pages 128-129
Metrics considered in investment decisions and monitoring	We use a suite of key metrics to assess climate-related risks and opportunities as well as for investment decisions and monitoring, as described in the Climate-related metrics section, where we also provide information on how these metrics have changed over time.	Climate-related metrics on pages 128-129
Description of the extent to which assets we own and our funds and investment strategies, where relevant, are aligned with a well below 2°C scenario	We qualitatively describe implied temperature rise, which can be used to describe the extent to which assets, funds and investment strategies are aligned with a well below 2°C scenario, in the ‘Climate-related metrics’ section.	Forward-looking metrics on page 128
Indication of which asset classes are included	The asset classes included are detailed in our Basis of Reporting.	Basis of Reporting


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Item	Prudential Group response	Location
Metrics and targets
b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
How we calculate our Scope 1, Scope 2 and Scope 3 GHG emissions	We calculate our GHG emissions in line with the GHG Protocol methodology, as described in our Basis of Reporting, so as to provide a single consistent description of the methodologies. We provide our full breakdown of Scope 1, Scope 2 and relevant Scope 3 GHG emissions, including industry-specific efficiency ratios, in the Climate- related metrics section.	Climate-related metrics on pages 128-129 Basis of Reporting
Our historical GHG emissions and associated metrics, a description of the methodologies	We provide metrics for historical periods to allow for trend analysis in the Climate- related metrics section. We describe the methodologies used to calculate the metrics in our Basis of Reporting, so as to provide a single consistent referable description of the methodologies. We describe the trends associated with our performance as relevant for the reporting period.	Climate-related metrics on pages 128-129 Basis of Reporting
Disclosure of GHG emissions for assets we own and the weighted average carbon intensity (WACI)	We disclose the GHG emissions and WACI for our investment portfolio, as defined in our Basis of Reporting, in the Climate-related metrics section. The emissions are calculated in line with the PCAF Standard, as described in our Basis of Reporting, so as to provide a single consistent referable description of the methodologies.	Climate-related metrics on pages 128-129 Basis of Reporting
Other carbon footprinting metrics we believe are useful for decision-making	We qualitatively discuss other carbon footprinting metrics which we believe can be useful for decision-making, including forward-looking metrics, in the ‘Climate-related metrics‘ section. See our separate Basis of Reporting document for how our greenhouse gas emissions and key environmental performance calculation methodologies account for relevant industry-based factors We do not set or derive sectoral decarbonisation targets, and our targets were not set based on the sectors we invest in. We are currently assessing market integrity frameworks and verification schemes to ensure any future use of credits aligns with international best practice. As this work is ongoing, we are unable to provide details on verification schemes, credit types, or permanence assumptions at this stage and will outline our work plan for developing these capabilities in subsequent reporting periods.	Climate-related metrics on pages 128-129
c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets
Key climate-related targets	We have set key climate-related targets to assess our progress made. These goals are informed by the latest international commitment and agreement on climate change. See our separate Basis of Reporting document for more details on our greenhouse gas emissions reduction targets and key environmental performance calculation methodologies, including objectives, baseline year and timeframe, reporting scope, absolute or intensity-based, etc.	Targets and progress on pages 101-102 Progress against our climate-related targets on page 127 Climate-related targets on pages 128-129
Interim targets	We disclose our interim targets in aggregate in the Targets and progress section, Progress against our climate-related targets section, and climate-related metrics section. These also include the associated medium-term and long-term targets.	Targets and progress on pages 101-102 Progress against our climate-related targets on page 127 Climate-related targets on pages 128-129
Description of the methodologies used to calculate targets and measures	We describe the methodologies used to calculate targets and measures in our Basis of Reporting, so as to provide a single consistent referable description of the methodologies. We also disclose information on our approach in setting, reviewing, and monitoring progress against each target. The WACI emissions reduction target we have set is aligned with industry standards and best practice, through the Net Zero Asset Owners Alliance (NZAOA). We do not have any revisions against our greenhouse gas emissions reduction targets to report.	Climate-related metrics on pages 128-129 Basis of Reporting


	146 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

Managing climate-related risks and opportunities index continued


Item	Prudential Group response	Location
Climate-related transition risks - HKEX Listing Rules Appendix C2, paragraph 30
Description of the amount and percentage of assets or business activities vulnerable to climate-related transition risks	In line with S2, we disclose that our financial position is largely driven by the market value of our investments offset by the IFRS 17 valuation of our insurance liabilities. In assessing the impact of climate change, we have therefore focused on the impact to assets in our in-scope Investment Portfolio. We also have assessed the potential effects of climate-related risks on our financial performance, position and cashflows but certain effects from climate-related health risks cannot be identified with reasonable certainty due to data limitations and emerging methodologies, Similarly, while we disclose the overall impact from climate scenario analysis for investments and operations, current limitations in the underlying modelling approach indicate that further analysis is needed before additional quantification can be provided. For these, we have provided qualitative disclosures and outlined our roadmap for future enhancements. These include system upgrades, expanded data governance, and deeper engagement with our local businesses and regulators.	Impact to our assets on page 120 Scope, compliance and basis of preparation on page 114
Climate-related physical risks - HKEX Listing Rules Appendix C2, paragraph 31
Description of the amount and percentage of assets or business activities vulnerable to climate-related physical risks	In line with S2, we disclose our completion of energy audits and assessments at 30 sites across our Asia Pacific portfolio and used this information to provide informed guidance to our local businesses on implementing appropriate energy conservation measures across the property portfolio. Whilst these energy saving measures will deliver some operational cost savings through energy efficiency, these are anticipated to be relatively immaterial compared to our overall operational costs. We will reassess this in the next reporting year and report any financial effects if material.	Current financial impacts on operations on page 120
Climate-related opportunities - HKEX Listing Rules Appendix C2, paragraph 32
Description of the amount and percentage of assets or business activities aligned with climate-related opportunities	In line with S2, we disclose that we currently have $1.5 billion of our portfolio as Financing the Transition investments. We actively look for new investments that are aligned with our framework across locations and sectors as this is dependent on evolving market conditions. Through our assessment of business activities, we also found that increases in mortality and morbidity due to air quality may impact our liabilities and therefore result in higher claims incidence, particularly for morbidity and in the long term. We see opportunities to make an impact in the countries we currently insure which we have identified with high vulnerability to morbidity risk due to poor air quality. However, we are unable to quantify the effects of climate on morbidity and mortality risks on our Life & Health book, due to evolving methodologies and high levels of data measurement uncertainties today. We expect to develop a more comprehensive view of our select business activities aligned with climate-related opportunities – and any relevant anticipated financial effects – in due course.	Current financial impact on assets on page 120 Impact on insurance liabilities on page 122
Capital deployment - HKEX Listing Rules Appendix C2, paragraph 33
Description of capital expenditure, financing or investment deployed towards climate-related risks and opportunities	In line with S2, we disclose that we currently have $1.5 billion of our portfolio as Financing the Transition investments. We actively look for new investments that are aligned with our framework across locations and sectors as this is dependent on evolving market conditions. Through our assessment of business activities, we also found that increases in mortality and morbidity due to air quality may impact our liabilities and therefore result in higher claims incidence, particularly for morbidity and in the long-term. We see opportunities to make an impact in the countries we currently insure which we have identified with high vulnerability to morbidity risk due to poor air quality. However, we are unable to quantify the effects of climate on morbidity and mortality risks on our Life & Health book, or the financial impact of climate risks on our Life & Health liabilities, due to evolving methodologies and high levels of data measurement uncertainties today.We expect to develop a more comprehensive view of our select business activities aligned with climate-related opportunities – and any relevant anticipated financial effects – in due course. Regarding our operations, we have partnered with relevant Prudential local life businesses to develop tailored decarbonisation plans, which balance immediate energy-saving measures with long-term carbon neutrality strategies.	Current financial impact on assets on page 120 Impact on insurance liabilities on page 122 Impact on our operations on page 122


	147 Prudential plc Annual Report 2025

Group-wide policies relating to our sustainability strategy


Sustainability pillars and priorities	Group Governance Manual	Policy Owner
Simple and accessible health and financial protection	To ensure we treat our customers fairly, management of conduct risks is key. Prudential mitigates conduct risk with robust controls, which are identified and assessed through the Group’s conduct risk assessment, and regularly tested within its monitoring programmes. The Group Customer Conduct Risk Policy includes our Customer Conduct Principles, which set out the core values and standards that the Group expects all employees and persons acting on behalf of it to observe, and which further support our ESG strategy. These values and standards include specific requirements regarding customers. In particular, the Group has committed to the following principles: 1. Treat customers fairly, honestly and with integrity; 2. Provide and promote products and services that meet customer needs, are clearly explained and that deliver the right value; 3. Maintain the confidentiality of our customer information; 4. Provide and promote high standards of customer service; and 5. Act fairly and promptly to address customer complaints and any errors we find.	Chief Executive Officer
Simple and accessible health and financial protection	Our Sustainability Policy encompasses community investment and environmental aspects. We are committed to being active and supportive members of the communities in which we operate, outlining our strategy for community investment and reporting.	Chief Sustainability Officer
Responsible investment	The Group Investment Policy and its underlying standards articulate how environmental, social and governance (ESG) considerations are integrated into investment activities and processes in a consistent and coherent way. They describe our approach to ensure voluntary external commitments and internal targets on responsible investment are met and to ensuring the different objectives of responsible investment are taken into consideration when making investment decisions in line with our fiduciary duties to our policyholders and shareholders.	Chief Investment Officer
Sustainable business	The Group Remuneration Policy outlines our effective approach to appropriately rewarding employees. It aligns incentives with business objectives and supports the recruitment, retention, and motivation of high-calibre employees, in accordance with our risk appetite and Group Reward Principles.	Chief Human Resources Officer


	148 Prudential plc Annual Report 2025


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Reference tables continued


Group-wide policies relating to our sustainability strategy continued
Sustainability pillars and priorities	Group Governance Manual	Policy Owner
Sustainable business	The Group Human Resources Policy outlines several key topics including, diversity and inclusion, employee relations, learning, performance, recruitment, discrimination and harassment, and talent. As a responsible organisation, we are committed to fostering an inclusive workforce, ensuring fair treatment, and valuing diversity in gender, age, ethnicity, disability, sexual orientation, and background. We uphold a zero-tolerance stance on discrimination and harassment, encouraging reporting through various channels. Our recruitment processes are designed to be fair and unbiased, with clear principles for consistency and oversight. We aim to attract and select top talent for immediate and future success, ensuring a robust succession and talent pipeline supported by a mature performance management crucial for consistent development and strategic success. From an employee relations perspective, we focus on engaging and motivating our workforce, promoting positive relationships, and maintaining a good reputation. We also ensure continuous, high-quality learning opportunities for skill development to support the learning experience of staff.	Chief Human Resources Officer
	The Director’s Remuneration Policy sets out the principles and requirements for determining the pay and benefits of the Executive Directors of the company. The policy aims to align the remuneration of the Executive Directors with the interests of shareholders, customers, and employees, as well as the strategic objectives and values of the company. The policy covers various aspects of fixed and variable pay, such as base salary, benefits, pension, annual bonus, and long-term incentives. The policy also defines the roles and responsibilities of the Remuneration Committee, the Board, and the shareholders in relation to remuneration governance and approval. The policy is reviewed periodically and submitted to shareholders for a binding vote at least every three years.	Chief Human Resources Officer
	The Group Sustainability Policy details our approach to understanding and managing the Group’s direct environmental impact, including measurement, monitoring, review, and reporting of our environmental performance.	Chief Sustainability Officer
Good governance and responsible business practices	The Group Code of Conduct reflects the broad ethical principles to assist our team members on their decision-making. We recognise the importance of managing our business responsibly at all levels of the Company. The Code of Conduct and our policies and systems lay the foundation on which we set high standards across fundamental issues, including setting expectations for suppliers, upholding human rights, and supporting employee rights and wellbeing.	Chief Executive Officer
	The Group Risk Framework describes the Group’s approach to risk management, and the key arrangements and standards for risk management and internal control that support the Group’s compliance with Group-wide statutory and regulatory requirements.	Chief Risk and Compliance Officer
	The Group Fraud, Waste and Abuse Policy and the Group Anti-Bribery and Corruption Policy outline key topics including anti-bribery and corruption, counter fraud, and political donations. We are committed to upholding our values of reputation, ethical behaviour, and reliability by prohibiting corruption and bribery in our working practices. The policies support business units in developing effective fraud risk management frameworks that meet regulatory requirements and protect the interests of customers, shareholders, and employees. They aim to enhance fraud detection, prevention, and investigation activities, providing a consistent approach to tackling fraud and safeguarding the Group’s reputation and resources. Additionally, the policies outline that we do not donate to political parties and provide direction on reporting requirements to ensure compliance.	Chief Risk and Compliance Officer
	The Group Third-Party Supply and Outsourcing Policy covers how we manage and oversee our third-party arrangements, through due diligence/selection criteria, contractual requirements, the ongoing monitoring of such relationships and reporting and escalation. Additionally, our policy considers the requirements of the UK Modern Slavery Act and the principles of the UN’s Universal Declaration of Human Rights.	Chief Financial Officer


	149 Prudential plc Annual Report 2025


Group-wide policies relating to our sustainability strategy continued
Sustainability pillars and priorities	GGM policies	Policy owner
	The Group Anti-Money Laundering and Sanctions Policy outlines how we prohibit money laundering or terrorism financing in our working practices, setting out how we establish parameters to prevent this taking place across the organisation and the commitment we have to comply with sanctions, laws and regulations by screening, prohibiting or restricting business activity, and following up through investigation.	Chief Risk and Compliance Officer
Good governance and responsible business practices	The Group Speak Out and Investigations Policy establishes the system and controls for whistleblowing within the Group. It provides a confidential reporting channel for employees and stakeholders to raise concerns about unethical or illegal activities. The policy aims to foster a culture of openness, honesty, and accountability, ensuring compliance with local regulatory and statutory whistleblowing requirements. It also protects individuals from retaliation when they report genuine concerns through the Speak Out programme. Additionally, the policy sets out the process for conducting investigations in line with regulatory and legal obligations, while balancing the needs of a competitive commercial organisation. The principles outlined are designed to enhance commercial opportunities while minimising corporate risk.	Group General Counsel
	The Group Operational Resilience Policy outlines the principles and requirements for ensuring the security and resilience of the Group’s people, assets, and operations. The policy covers various aspects of physical and travel security, health and safety, and business continuity management. The policy also defines the roles and responsibilities of different levels of governance and oversight within the Group, as well as the processes for reporting, investigating, and responding to incidents and crises. The policy aims to comply with relevant legal and regulatory obligations, as well as to meet the demands of a competitive commercial organisation.	Chief Technology and Operations Officer
	The Group Information Security and Privacy Policy support the business in delivering customer outcomes, business strategy, and meeting legal and regulatory requirements by maintaining a secure and adaptable environment. These policies ensure the confidentiality, integrity, and availability of information systems and IT assets, governing data protection in compliance with the General Data Protection Regulation. Our information security standards underpin a resilient information security programme across the organisation, reflecting our commitment to protecting the data entrusted to us by customers.	Chief Technology and Operations Officer
	The Group Data Policy is centred on the principle that data must be well governed and effectively managed through its life cycle. The policy provides a data, business, people and technology framework, which defines how we should manage data throughout its life cycle and employ the technology best suited for the business use cases.	Chief Technology and Operations Officer
	The Group Tax Policy includes our processes to manage tax-related risk, by identifying, measuring, controlling and reporting on issues considered an operational, reputational or regulatory risk.	Chief Financial Officer


	150 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Reference tables continued

Streamlined Energy and Carbon Reporting (SECR) report

Our 2025 energy consumption and GHG emissions are disclosed below in accordance with the SECR framework of the Companies Act 2006

(Strategic and Directors’ reports). No energy reduction projects were undertaken in the UK portfolio during 2025. Information on energy-

reduction initiatives across our Asian and African portfolio are included in the section on Managing our direct operational environmental

impacts. More information on the methodologies used is available in the Basis of Reporting.


	2025		2024		2023
	UK and offshore	Global (excluding UK and offshore)	UK and offshore	Global (excluding UK and offshore)	UK and offshore	Global (excluding UK and offshore)
Emissions from activities for which the company owns and controls, including combustion of fuel and operation facilities (Scope 1) tCO2e	28	1,703	29	1,533	80	2,027
Emissions from purchase of electricity, heat, steam and cooling purchased for own use (Scope 2, location based) tCO 2e	53	15,437	67	16,901	119	18,215
Emissions from purchase of electricity, heat, steam and cooling purchased for own use (Scope 2, market-based) tCO 2e	7	4,035	7	5,766	26	12,292
Total gross Scope 1 and Scope 2 emissions (location-based) tCO 2e	81	17,140	95	18,434	199	20,242
Intensity ratio Scope 1 and Scope 2 (location- based): tCO2e /m2	0.0118	0.0563	0.0126	0.0564	0.0263	0.0622
Intensity ratio Scope 1 and Scope 2 (location- based): tCO2e /fte	1.0339	1.1275	0.6484	1.2136	1.888	1.3364
Energy consumption used to calculate above emissions: kWh (Scope 1)	150,914	7,224,247	155,927	6,674,692	438,640	9,701,578
Energy consumption used to calculate above emissions: kWh (Scope 2)	288,908	26,619,644	322,609	29,076,051	573,330	31,271,772


	151 Prudential plc Annual Report 2025

Non-financial and sustainability information statement

We recognise that to help our customers get the most out of life, we need to take a long-term view on a wide range of issues that affect our

business and the communities in which we operate. To do this, we maintain a proactive dialogue with our stakeholders to ensure that we are

managing these issues sustainably and delivering long-term value. Further information on our engagement with our stakeholders can be found in

our Section 172 Statement above.

The Group’s Strategic report, including the Sustainability report and the Section 172 Statement, includes information required by the non-

financial reporting provisions contained in sections 414CA and 414CB of the Companies Act 2006. These reporting requirements are met in a

number of sections of our Annual Report. The Group's consideration of materiality for non-financial and sustainability matters is set out on page

103. The table below illustrates where the relevant material is presented.


Reporting area	Addressed in section	Page reference
Environment
Sustainability section	Responsible investment	Page 109
Sustainability section	Sustainable business	Page 111
Sustainability section	Managing climate-related risks and opportunities	Pages 113 to 128
Employees
Sustainability section	Sustainable business	Pages 110 to 111
Human rights
Sustainability section	Good governance and responsible business practices	Page 112
Anti-bribery and corruption
Sustainability section	Good governance and responsible business practices	Page 112
Social matters
Sustainability section	Simple and accessible health and financial protection	Page 108
Sustainability section	Sustainable business	Page 110
Non-financial KPIs
Sustainability section	Targets and progress	Pages 102 to 103
Management of principal risks and uncertainties
Risk review	Risk management	Pages 56 to 58
Risk review	The Group's principal risks	Pages 59 to 73
Business model
Strategic and operating review	Business model	Pages 32 to 33

Strategic report approval by the Board of Directors

The Strategic report set out on pages 2 to 151 is approved by the Board of Directors

Signed on behalf of the Board of Directors

Anil Wadhwani

Chief Executive Officer

17 March 2026


	152 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Governance



154	Governance at a glance
156	Our leadership
165	Corporate governance
167	How we operate
179	Risk management and internal control
181	Committee reports
200	Statutory and regulatory disclosures
202	Index to principal Directors’ report disclosures


	153 Prudential plc Annual Report 2025


	154 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Governance

Governance at a glance

Governance highlights

Capital management

– Reviewed and refined capital allocation framework including

commitment to recurring capital returns of $1.1 billion over

2026-2027; and

– Considered and approved the IPO of ICICI Prudential Asset

Management Company including the distribution of proceeds

to shareholders.

Succession planning

– Process to identify potential Chair successors, led by the Senior

Independent Director (SID) and supported by the Nomination

& Governance Committee, leading to announcement of

appointment of Chair-Designate in January 2026.

Board and Committee

composition changes

Strategy

– Oversight of the delivery of the Group’s strategy announced in August 2023

and progress against the Group’s 2027 objectives; and

– Considering the framework for the development of the Group’s long-term

strategy beyond 2027.

March 2026:

– Sir Douglas Flint appointed as

Non-executive Director and

Chair-Designate. He also joined

the Nomination & Governance

Committee and the

Remuneration Committee.

Business operations

– Overseeing ongoing delivery of double-digit growth; and

– Spent time with local leadership and top talent from the Indonesia teams as part of

the Board’s ongoing commitment to understanding the local business environment

and operational context.

October 2025

– Amy Yip retired from the

Board.

July 2025

– Guido Fürer appointed as Non-

executive Director and member

of the Audit and Risk

Committees.

Stakeholders

Extensive shareholder engagement by:

– the Chair and the SID in connection

with Chair succession; and

– the Remuneration Committee Chair

ahead of presenting

the proposed Directors’

Remuneration Policy to shareholders

at the 2026 AGM.

Board performance review

– Internal review confirmed effective

performance of the Board and

principal committees and identified

areas of focus for 2026.


	155 Prudential plc Annual Report 2025

Diversity¹

Gender diversity as at 17 March 2026

Board

GEC


¢	Male	8
¢	Female	4


¢	Male	7
¢	Female	3

Gender diversity as at 19 March 2025

Board

GEC


¢	Male	6
¢	Female	5


¢	Male	7
¢	Female	3

Ethnic diversity

Board

GEC


¢	White British or other White (including minority-white groups)	6
¢	Mixed/Multiple ethnic groups	0
¢	Asian/Asian British	6


¢	White British or other White (including minority-white groups)	3
¢	Mixed/Multiple ethnic groups	0
¢	Asian/Asian British	7

Board composition at a glance ¹

Composition


¢	Executive Director
¢	Non-executive Directors

Non-executive Director tenure


¢	0–2 years	¢	2–4 years
¢	4–6 years	¢	6–9 years

Directors' skills matrix ¹

(1) Data is shown as at the date of the report unless otherwise indicated


	156 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Our leadership continued

Board of Directors

The Board establishes the purpose, values and strategy of the Group and promotes its long-term

success for the benefit of our shareholders and other stakeholders. Our Board members bring a

diverse range of skills and experience to support our strategy in our chosen markets.

Committee membership


	Audit		Nomination & Governance		Remuneration		Risk		Sustainability		Committee Chair



	Shriti was Chair of Santander UK Group Holdings, Senior Independent Director at BHP and a Non- executive Director of Astra Zeneca. Between 2009 and 2014, she undertook a wide range of assignments, such as advising the South Korean Chair of the G20, two European countries on the Eurozone and banking crisis, the African Development Bank on infrastructure financing and a number of global investors and sovereign wealth funds on strategy and economic and market developments. From 2007 to 2009, Shriti was a minister in the UK Government, serving in the Cabinet Office, Business Department and International Development Department. She led on the UK Government’s response to the global financial crisis and its Presidency of the G20. From 1999 to 2007 she was a member of HM Treasury’s Council of Economic Advisers. Shriti’s career began with 15 years in investment banking with SG Warburg/UBS, where she had a strong focus on emerging markets.	Shriti holds a Bachelor’s degree in Philosophy, Politics and Economics from Oxford University. Relevant skills and experience for Prudential – Senior boardroom experience and leadership skills at complex organisations, including extensive experience in the financial services sector, with international operations and at the highest levels of international negotiations between governments and in multinational organisations. – Wide-ranging and global experience in economics, public policy and strategy, as well as deep understanding and insight into global and emerging markets and the macro-political and economic environment. Key appointments – The Royal Shakespeare Company (Chair) – Institute of International Finance (Board Member). – World Bank Private Sector Investment Lab (Chair).


Shriti Vadera (Age: 63) Chair of the Board
Appointed to the Board: May 2020 (Chair since January 2021)


	Sir Douglas retired as Group Chair of HSBC Holdings plc in September 2017, having been appointed to that role in 2010. For 15 years prior to that, he was HSBC's Group Finance Director, having joined from KPMG where he was a partner. Sir Douglas has been Chair of Aberdeen Group Plc since January 2019 and will be stepping down on 28 April 2026, and Chair of IP Group plc since November 2018 and will be stepping down from this role in June 2026. He was also previously a non-executive director at BP plc from 2005-2011, Chairman of the Institute of International Finance from June 2012 to December 2016, and a member of both the Mayor of Beijing's and the Mayor of Shanghai's International Business Leaders' Advisory Boards.	Sir Douglas received his CBE in 2006 and knighthood in 2018 recognising his services to the finance industry. Sir Douglas is a member of the Institute of Chartered Accountants of Scotland. Relevant skills and experience for Prudential – Senior boardroom experience including extensive experience leading global financial institutions. – Deep knowledge of Asia, including Prudential’s key markets, and understanding of global finance. Listed company directorships – Aberdeen Group plc (Chair). – IP Group plc (Chair). Other key appointments – The Royal Marsden NHS Foundation Trust and Charity (Chair). – Monetary Authority of Singapore, Advisory Council (Member). – Institute of International Finance (Board Member).

Sir Douglas Flint (Age: 70) Chair Designate
Appointed to the Board: March 2026
Appointed to the Board: March 2026


	157 Prudential plc Annual Report 2025



	Prior to joining Prudential, Anil served as President and CEO of Manulife Asia where he successfully grew and transformed its diversified and multi- channel business with significant market share gains in many key markets and made it the company’s largest source of core earnings. Prior to this, he spent 25 years with Citi in Asia Pacific, EMEA and the US, in a number of consumer financial services roles. Anil holds a Master’s degree in Management Studies from the Somaiya Institute of Management Studies and a Bachelor’s degree in Commerce from the Narsee Monjee College of Commerce and Economics.	Relevant skills and experience for Prudential – With more than 30 years of experience in markets around the world, Anil is a global financial leader with significant expertise, particularly in Asia. – Anil has a proven track record of successful digital transformation, having led the modernisation of technology platforms across 13 markets in Asia in his role at Manulife. Key appointments – Monetary Authority of Singapore, Advisory Council (Member).

Anil Wadhwani (Age: 57) Chief Executive Officer
Appointed to the Board: February 2023



	Jeremy was formerly the Chair of Global Financial Services at KPMG International, having previously been in charge of its UK financial services practice and held roles including Head of Financial Services at KPMG Europe, Head of Clients and Markets KPMG Europe and CEO of KPMG’s UK consulting business. Jeremy served as a member of the Group Management Board of Atos Origin and as Head of its UK operations. Jeremy also served on the board of the UK Commission for Employment and Skills. Jeremy was awarded a CBE in 2005 for his services to employment. He holds a Bachelor’s degree in Science (Economics) from University College London.	Relevant skills and experience for Prudential – Substantial leadership experience in financial services in the UK, Asia and the US. – More than 30 years of experience advising international companies on audit and risk management. Listed company directorships – UBS Group AG, including its subsidiary, UBS AG (Senior Independent Director and audit committee Chair). Other key appointments – Credit Suisse International (Non- executive Director). – The Kingham Hill Trust (Trustee). – The Productivity Group (Non-executive Director).

Jeremy Anderson (Age: 67) Senior Independent Director
Appointed to the Board: January 2020 (Senior Independent Director since May 2023)



	Arijit retired as the Managing Director of State Bank of India (SBI) in September 2020 concluding a 40-year career, having joined in 1983. During his career, he held a number of senior positions at the bank across retail, corporate and international banking, business process re-engineering, IT and risk management. He was Managing Director and Chief Executive Officer of SBI Life Insurance Company (a subsidiary of SBI), one of India’s leading life insurers, from 2014 until 2018, and took it public in 2017. Since his retirement from SBI, Arijit has worked as a consultant, including advising the Life Insurance Corporation of India on its 2022 IPO. Arijit is a certified associate of the Indian Institute of Bankers. He holds a Master’s degree in History and a Bachelor’s degree in Economics from the University of Delhi.	Relevant skills and experience for Prudential – Extensive experience in India's banking and insurance industries spanning nearly 40 years. – Held high-profile leadership roles and gained broad operational experience from various senior positions within SBI. Listed company directorships – IndusInd Bank Limited (Non-executive Director and Chair). Other key appointments – Academic Council of the College of Supervisors, RBI (Chair). – Peerless Hospitex Hospital and Research Center Ltd (Non-executive Director).

Arijit Basu (Age: 65) Independent Non-executive Director
Appointed to the Board: September 2022


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Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Our leadership continued



	From 2007 to 2020, Sock Koong was Chief Executive Officer of Singapore Telecommunications Limited (Singtel), Asia’s leading communications technology group, having previously held a number of senior roles at the firm, including Treasurer, Chief Executive Officer International and Group Chief Financial Officer. From April 2018 until March 2024, Sock Koong was a Non-executive Director of Cap Vista Pte Ltd and, from March 2018 until March 2024, she was a Non-executive Director of the Defence Science and Technology Agency. Sock Koong is a Fellow Member of the Institute of Singapore Chartered Accountants and a Chartered Financial Analyst. She holds a Bachelor’s degree in Accountancy from the University of Singapore.	Relevant skills and experience for Prudential – More than 30 years’ experience working in business leadership and operations with significant experience in the Asia market. – Significant boardroom experience, having served in several C-suite roles throughout her career. Listed company directorships – Bharti Airtel Limited (Non-executive Director). – Royal Philips NV (Non-executive Director). – Ayala Corporation (Non-executive Director). Other key appointments – Dubai Financial Services Authority (Director). – Singapore Securities Industry Council (Member). – The Singapore Public Service Commission (Deputy Chair). – The Singapore Council of Presidential Advisers (Member).

Chua Sock Koong (Age: 68) Independent Non-executive Director
Appointed to the Board: May 2021


	From 2012 to 2023 Guido was Group Chief Investment Officer and a member of the Group Executive Committee of Swiss Re Group, heading up the Global Asset Management division. During his 25-year career with the firm he also served as Country President, Swiss Re Switzerland from 2019 to 2023, chaired Swiss Re’s Global Strategic Council, and its Zurich Pension Fund, and served as a Trustee of the Swiss Re Foundation. Prior to joining Swiss Re, Dr Fürer held leading positions at Swiss Bank Corp/O’Connor and Associates in options trading and capital markets. Between 2018 and 2022, Guido was a non-executive director, and chaired the Group Risk Committee, of pan-Asian insurer FWD Group, gaining insight into various key markets. Guido has been a non-executive director of Swiss-headquartered insurance and banking group Baloise Holding Ltd since April 2024 and chair of its Risk & Investment Committee since April 2025. Since the merger of Baloise and Helvetia in December 2025, Guido has been a non- executive director of Helvetia Baloise Holding Ltd and chair of its Investment & Risk Committee.	Guido has a master’s degree in Economics and a doctorate in Financial Risk Management from the University of Zurich, where he is now Chair of the Advisory Board of the Department of Finance. Relevant skills and experience for Prudential – Over three decades of international experience across financial services, including key Asia markets. – Extensive knowledge and expertise in asset management, insurance and asset-liability management. Listed company directorships – Helvetia Baloise Holding Ltd (Non- executive Director and Investment and Risk Committee chair). Other key appointments – Department of Finance, University of Zurich (Chair of the Advisory Board).

Guido Fürer (Age: 62) Independent Non-executive Director
Appointed to the Board: July 2025


	159 Prudential plc Annual Report 2025



	Ming is a Senior Advisory Partner at KKR, having previously been Executive Chairman, Asia Pacific at KKR Asia Limited and a partner of Kohlberg Kravis Roberts & Co. L.P. He also serves as a member of the KKR Asian Private Equity Investment Committee and the KKR Asian Portfolio Management Committee. Ming has played a significant role in private equity investments across Asia Pacific and, since 2018, has played a leadership role in KKR’s Asia growth and expansion, including serving as a member of the Asia Infrastructure Investment Committee and Asia Real Estate Investment Committee. Ming previously worked for CITIC, China’s largest direct investment firm, before moving to Kraft Foods International Inc. He was President of Asia Pacific at Lucas Varity, and a partner at CCMP Capital Asia (formerly J.P. Morgan Partners Asia), where he was responsible for investment in the automotive, consumer and industrial sectors across several countries throughout Asia. Ming has also held directorships at Ma San Consumer Corporation, Unisteel Technology International Limited, Weststar Aviation Service Sdn Bhd and MMI Technologies Pte Ltd. He was a Non-executive Director of Jones Lang LaSalle Inc from 2009 to 2021.	Ming holds a Master’s degree in Business Administration from the University of Leuven and a Bachelor’s degree in Arts (Economics) from the Wuhan University of Hydroelectrical Engineering. Relevant skills and experience for Prudential – More than 30 years of experience investing in and developing businesses throughout the Asia Pacific region. – Brings deep knowledge and up-to-date insights on China and other key markets. Listed company directorships – Jardine Matheson Holdings Limited (Non- executive Director). Other key appointments – KKR Asia Ltd (Senior Advisory Partner).

Ming Lu (Age: 67) Independent Non-executive Director
Appointed to the Board: May 2021


	From 2014 to 2019 George was the regional Chief Executive Officer of Allianz’s Asia Pacific business, having previously held a range of senior roles within the company, including Chief Executive of both Allianz Italy and Allianz Turkey, Global Head of Change Programmes for Allianz Group, and General Manager of Allianz Malaysia and Allianz Australia and New Zealand. George also sat on the Financial Advisory Panel of the Monetary Authority of Singapore from 2015 to 2019. George’s career began at Manufacturers Mutual Insurance in Australia in 1973, before its acquisition by Allianz in 1998. George holds a Master’s degree in International Business Studies from Heriot-Watt University.	Relevant skills and experience for Prudential – Considerable operational expertise in the insurance industry gained over a 40-year career, including experience of digital transformation. – A range of senior leadership roles, including as regional Chief Executive Officer of Allianz AG’s Asia Pacific business and several country-head positions prior to that. Listed company directorships – Insurance Australia Group Limited (Non- executive Director).

George Sartorel (Age: 68) Independent Non-executive Director
Appointed to the Board: January 2022


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Our leadership continued



	Prior to retirement, Mark was the Group Chief Strategy and Corporate Development Officer and a member of the executive committee of AIA Group Ltd. Following retirement he was honoured with the Lifetime Achievement Award in 2022 at the 26th Asia Insurance Industry Awards. Mark started his actuarial career in 1988 at UK-headquartered insurance business Clerical Medical Investment Group, relocating to Hong Kong in 1994, becoming CEO/Controller of the business and living there since. He joined Tillinghast (now Willis Towers Watson) in 1997 and during his 16-year tenure he led the Asia Pacific insurance practice, establishing a leadership position in insurance consulting with particular expertise in actuarial appraisal value assessments and enhancements of insurers across 20 markets in Asia Pacific, providing expert opinions, and leading Towers Watson’s Hong Kong business as Managing Principal. Mark is a Fellow of the Institute of Actuaries of the UK, a Chartered Actuary, and a Fellow and the President of the Actuarial Society of Hong Kong. He holds an honours degree in Mathematics from the University of Manchester.	Relevant skills and experience for Prudential – Extensive knowledge of, and leadership positions within, the insurance industry and Asia markets, having been employed in the industry for 35 years. – Extensive commercial insight gained as a senior executive of AIA and significant actuarial and industry experience. Key appointments – Blackstone Inc (Senior Adviser). – Actuarial Society of Hong Kong (President).

Mark Saunders (Age: 62) Independent Non-executive Director
Appointed to the Board: April 2024

	Claudia joined the global consultancy firm McKinsey & Partners in 1995 and worked in several senior roles. She was responsible for helping to build the firm’s healthcare services and systems sector in Asia Pacific, including working with the Chinese Ministry of Health to help develop their views on China’s national healthcare systems. From March 2021 until October 2023, Claudia was also a Non-executive Director of Huma Therapeutics Ltd, a global health technology company. Claudia holds a PhD in Business Administration from the University of St. Gallen in Switzerland and a Master’s degree in Business Administration from CEMS/ESADE in Barcelona.	Relevant skills and experience for Prudential – Considerable experience in the healthcare services and technology sectors across China and the broader Asia-Pacific region. Her board experience has helped her develop valuable insights around the implementation of transformation through technology, digital and data. – Knowledge of Asian markets, particularly China, having been based in Shanghai for nearly 15 years and Hong Kong for a further two years. Listed company directorships – Ramsay Health Care Ltd (Non-executive Director). – Clariant AG (Non-executive Director). – Lonza Group (Independent Non-executive Director) (from May 2026). Other key appointments – QuEST Global Services Private Ltd (Non- executive Director). – Evidentli (Chair).


Claudia Suessmuth Dyckerhoff (Age: 59) Independent Non-executive Director
Appointed to the Board: January 2023


	161 Prudential plc Annual Report 2025



	From 2008 to 2019, Jeanette led DBS Group’s institutional banking business, where she was responsible for corporate banking, global transaction services, strategic advisory, and mergers and acquisitions. Prior to this, she was the DBS Group’s Chief Financial Officer from 2003 to 2008, having previously been Chief Administrative Officer. As part of her role at DBS Group, Jeanette held Non- executive Director positions with ASEAN Finance Corporation, TMB Bank and the Bank of the Philippine Islands. Jeanette began her career in Singapore at Banque Paribas before moving to Citibank and then J.P. Morgan in Singapore, where she held senior pan-Asian roles. She has previously served as a Non-executive Director of EssilorLuxottica, Fullerton Fund Management Ltd and Neptune Orient Lines Limited. Jeanette is a member of the UBS Board, where she has served as a member of the audit committee since 2019. Jeanette also serves as a member of the audit committee on the Singapore Airlines board, and chair of the audit committee at PSA International. Jeanette holds a Master’s degree in Business Administration from the University of Chicago and a Bachelor’s degree in Business Administration from the National University of Singapore.	Relevant skills and experience for Prudential – Over 35 years of operational experience in financial services. – Extensive knowledge and experience of ASEAN markets as well as significant boardroom experience gained from a number of non-executive roles. Listed company directorships – UBS Group AG, including its subsidiary, UBS AG (Non-executive Director and audit committee member). – Singapore Airlines Limited (Non-executive Director). Other key appointments – Council of CareShield Life (Chair). – GIC Pte Ltd (Non-executive Director). – PSA International Pte Ltd (Non-executive Director). – National University of Singapore (Board of Trustees).

Jeanette Wong (Age: 66) Independent Non-executive Director
Appointed to the Board: May 2021


	Relevant skills and experience As the Company Secretary, Tom is a trusted adviser to the Board and plays an important role in the governance and administration of Prudential. Before his appointment as Company Secretary, Tom held a number of senior roles at Prudential, including Head of Compliance, Business Partners and prior to that, Group Litigation & Regulatory Counsel.	Tom is a qualified solicitor and is admitted to practise in England and Wales. Before joining Prudential, he practised law at Herbert Smith LLP, between 2002 and 2012, which included secondments to Lloyds Banking Group and Royal Bank of Scotland.

Tom Clarkson (Age: 50) Company Secretary
Appointed as Company Secretary: August 2019

Financial Expertise

The Board is satisfied that:

– Jeanette Wong, the Chair of the Audit Committee, has recent and relevant financial experience as required by the UK and Hong

Corporate Governance Codes and that she is competent in accounting in accordance with the FCA’s Disclosure Guidance and

Transparency Rules, and qualifies as an 'audit committee financial expert' as defined under the Sarbanes-Oxley Act; and

– The Committee has an appropriate and experienced blend of commercial and financial expertise to assess issues it is required to address

as well as competence in the insurance sector .


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Our leadership continued

Group Executive Committee

The Group Executive Committee (GEC) supports the CEO in the day-to-day management of the business and

implementation of strategy. It is constituted and chaired by the CEO. For the purposes of the Hong Kong Listing Rules,

senior management is defined as the members of the GEC.



	Relevant skills and experience In her role as the Chief Technology and Operations Officer, Anette plays a pivotal role in steering Prudential’s technology initiatives and maintaining operational discipline. On the technology front, she is responsible for aligning technology strategies with overall business objectives, ensuring Prudential remains at the forefront of technological advancements. For operations, she evaluates all operational aspects across the organisation to shape and define Prudential’s target operating model, ensuring to maximise economies of skill and scale, ultimately enhancing the customer experience.	Before taking on this role, Anette was a Partner at KPMG in Switzerland, where she contributed to digital transformation programmes within the insurance sector. Prior to that, Anette served as Group Chief Operating Officer at Swiss Re and held senior positions across the technology and telecommunications sectors. Anette holds a Master of Economics and Social Sciences from the University of Stuttgart, Germany.

Anette Bronder (Age: 58) Chief Technology and Operations Officer



	Relevant skills and experience Ben was appointed Chief Financial Officer of Prudential in May 2023. As CFO, he is responsible for managing the Finance function, including all aspects of financial reporting and planning such as performance management including planning and forecasting, financial reporting, capital management and investment management as well as the Group Actuarial function, strategy, investor relations and sustainability.	Ben joined Prudential in 1997 and has held various leadership roles including CFO, Insurance and Asset Management, regional CFO of Prudential Asia, CFO of Eastspring Investments, the Group’s asset management business, CFO of Prudential Hong Kong’s Life and General Insurance businesses and Chief Accountant of Prudential Asia. Ben is a Chartered Accountant (The Chartered Institute of Management Accountants) and holds a Bachelor's degree from The London School of Economics.

Ben Bulmer (Age: 51) Chief Financial Officer



	Relevant skills and experience In her role as Chief Human Resources Officer, Catherine leads Prudential’s Group-wide people and culture agenda, working to build a high performance organisation where great talent is engaged, inspired and developed. Catherine joined from StarHub, Singapore, where she had been Chief HR Officer since 2018, driving workforce optimisation, culture transformation, talent development and employee engagement. She also chaired the company’s Covid-19 task force. Before leading the HR function at StarHub, Catherine held global and regional senior HR leadership roles in LEGO, United Overseas Bank, and Dell Inc. in Singapore and Shanghai.	Catherine holds a Bachelor’s Degree with Honours in Social Sciences from the National University of Singapore. She served as a Nominations Committee member of Daughters of Tomorrow (Singapore) and was a board member of the Singapore Breast Cancer Foundation.

Catherine Chia (Age: 58) Chief Human Resources Officer


	163 Prudential plc Annual Report 2025



	Relevant skills and experience In his role as Chief Risk and Compliance Officer, Avnish is responsible for managing Risk, Compliance, Legal, Audit, Company Secretariat and Government Relations functions across all of the Group’s insurance and asset management businesses. He joined Prudential in 2014.	Avnish is a Chartered Accountant with over 30 years of experience in Financial Services in Asia. Prior to joining Prudential, he was the Asia Chief Risk Officer for Aviva for six years and also worked at Bank of America for 14 years in various capital markets, trading and risk roles. In previous roles, he also worked for EY in Dubai and for PwC in India.

Avnish Kalra (Age: 58) Chief Risk and Compliance Officer



	Relevant skills and experience As CEO of Eastspring, Rajeev chairs the Eastspring Executive Management Committee and is responsible for the management and strategic development of the firm. Rajeev has over 30 years’ asset management experience in Asia and Europe. Most recently, he served as Managing Director and Head of Asia at Fidelity International, spearheading growth in the Asia Pacific (excluding Japan) and Middle East markets. Prior to this, he spent 26 years at AIG and PineBridge Investments, initially as an investor, before being appointed CEO of PineBridge Europe in 2009, then CEO of PineBridge Asia Pacific from 2011 to 2018.	Rajeev holds a Bachelor of Science degree in Mathematics and Statistics from the University of Bradford.

Rajeev Mittal (Age: 55) Chief Executive Officer, Eastspring Investments



	Relevant skills and experience In her role as Regional CEO, Greater China; Group Customer, Wealth and Product, Angel plays an integral role in driving Prudential’s business in Hong Kong, the Chinese Mainland, and Taiwan, in addition to leading the development of the Group-wide Customer pillar, Wealth proposition and Products, across our markets in Asia and Africa. With 25 years of expertise in financial services, Angel has extensive experience in the Asia Pacific region and beyond. Before joining Prudential, she was the Head of Asia North & Australia, Cluster and Banking at Citi, overseeing geographical management, client coverage, product delivery, and banking segments across six major markets.	Her tenure at Citi included senior roles such as Head of Asia for Citi Global Wealth, where she managed the Asia Private Bank and Consumer Bank, and CEO for Citi Hong Kong and Macau. Prior to her time at Citi, Angel held senior positions at Procter & Gamble, and China Light and Power Hong Kong. Angel is actively involved in the Hong Kong community, serving on various boards and committees. Her roles include membership on the New Business Committee of the Financial Services Development Council, the Room to Read Asia Pacific Board, and the Board of Trustees of Chung Chi College at The Chinese University of Hong Kong, among others. Angel holds a Bachelor of Business Administration degree from the Chinese University of Hong Kong.

Angel Ng (Age: 58) Regional CEO, Greater China; Group Customer, Wealth and Product


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Our leadership continued



	Relevant skills and experience Prior to joining Prudential, Kenneth was Manulife Asia’s Chief Financial Officer for five years, responsible for Finance, Strategy and Business Development across 10 Asian markets. Prior to this, he was Aviva Asia's Regional Chief Financial Officer based in Singapore and held senior finance roles for seven years with AIA in Hong Kong, Thailand and Korea.	Kenneth holds a Master’s Degree in Accounting from the University of Texas at Austin and a Master’s Degree in Applied Economics from Johns Hopkins University. Kenneth is a Chartered Financial Analyst (CFA®) charterholder, a licensed US Certified Professional Accountant (CPA), a certified Financial Risk Manager (FRM) and is a Fellow, Life Management Institute (FLMI). Additionally, Ken is a certified professional coach with the International Coaching Federation.

Kenneth Rappold (Age: 55) Chief Strategy and Transformation Officer



	Relevant skills and experience In his role as Regional CEO, Naveen is responsible for our businesses in Indonesia, Malaysia, the Philippines, India and Africa, and leads the Group’s Agency and Health businesses across all markets. Most recently Managing Director and Chief Executive of Tata Digital and a non-executive director of TATA AIA Life Insurance, Naveen’s insurance career has included more than seven years across two terms as Managing Director and CEO of Tata AIA, between which he led AIA’s Group Partnership Distribution business across Asia.	Prior to his career in insurance as an executive, Naveen spent more than seventeen years at McKinsey, advising banks and insurance companies across Asia. Naveen holds a Postgraduate Diploma in Business Management from the Indian Institute of Management, Ahmedabad and a B Tech in Electronics and Communication from the Indian Institute of Technology, Madras.

Naveen Tahilyani (Age: 52) Regional CEO, Indonesia, Malaysia, the Philippines, India, Africa; Group Agency and Health



	Relevant skills and experience Prior to his appointment to the Group Chief Executive Committee, Dennis was CEO of Prudential Assurance Company Singapore for two years. Dennis holds the positions of Non-Executive Director and Chairman of the Board of Directors of Prudential Financial Advisers Singapore Pte. Ltd., Prudential Life Assurance (Thailand) Public Company Limited, Director of Prudential Singapore Holdings Pte. Limited, and Chairperson and Member of the Members’ Council at Prudential Vietnam Assurance Private Limited.	Outside of Prudential, he serves as Council Member at The Institute of Banking and Finance Singapore. Before joining Prudential, he spent 10 years at OCBC Bank, where he led a 3,100-strong consumer banking division as Head of Consumer Financial Services for seven years. Dennis is Singaporean and holds a Bachelor of Science degree in Business (Honours with Distinction) from Indiana University and has completed the Stanford Executive Programme at Stanford University’s Graduate School of Business. He is also a Certified Financial Planner.

Dennis Tan (Age: 57) Regional CEO, Singapore, Thailand, Vietnam, Cambodia, Laos, Myanmar; Group Partnership Distribution


	165 Prudential plc Annual Report 2025

Corporate governance

Corporate governance codes – statement of compliance

The Company has dual primary listings in Hong Kong (main board listing)

and London (equity shares (commercial companies)) and, as required, has

adopted a governance structure based on the Hong Kong and UK

Corporate Governance Codes (the HK and UK Codes). This report explains

how the principles set out in both Codes have been applied.

The Board confirms that, for the year under review, the Company

has applied the principles and complied with the provisions of the

UK Code. The Company has also complied with the provisions of the

HK Code, other than provision E.1.2(d), which requires companies, on

a comply or explain basis, to have a remuneration committee that

makes recommendations to a main board on the remuneration of

non-executive directors. This provision is not compatible with

provision 34 of the UK Code, which recommends that the

remuneration of non-executive directors be determined in accordance

with the Articles of Association or, alternatively, by the board.

Prudential has chosen to adopt a practice in line with the

recommendations of the UK Code.

Provision B.3.1(d) of the HK Code requires that the Nomination

Committee should make recommendations to the board on the

appointment or reappointment of directors and succession planning

for directors, in particular the Chair and the Chief Executive. Provision

17 of the UK Code requires that the Nomination Committee should

lead the process for appointments, ensure plans are in place for

orderly succession to both the board and senior management

positions, and oversee the development of a diverse pipeline for

succession. Prudential’s Nomination & Governance Committee is

responsible for the oversight of Board and executive succession

(unless considered by the Board) and recommends directors for

appointment or reappointment, including the Chair and CEO.

However, given the importance of executive succession planning to

the successful delivery of the Group’s strategy, the full Board

discusses succession planning for the CEO and other GEC roles.

The HK Code is available from www.hkex.com.hk

The UK Code is available from www.frc.org.uk

Corporate governance principles

The table below contains references to disclosures in this Annual Report and Accounts that will enable shareholders to evaluate how Prudential

has applied the principles of the UK Code (as set out below) and complied with the more detailed provisions.


1. Board leadership and company purpose
A	Board promotes long-term value and sustainability The application of principle A and a description of how opportunities and risks to the future success of the business have been considered and addressed (provision 1) is provided.	Strategic report: Page 2
B	Purpose, values and strategy aligned with culture The Board established Prudential’s purpose, values and strategy and satisfies itself that these are all aligned, including to our culture.	Governance report: Page 172 Sustainability section: Page 111 Section 172 Statement: Page 89
C	Board decisions and outcomes Prudential has applied principle C, ensuring that our governance disclosures provide transparent and meaningful insight into how board decisions have supported the delivery of our strategic priorities and objectives.	Governance report: Page 174
D	Engagement with stakeholders Prudential and the Board actively engage with shareholders and stakeholders throughout the year and consider their interests. Prudential’s stakeholders in this context are its customers, investors, employees, regulators, communities, governments and suppliers.	Section 172 Statement: Page 89 Sustainability section: Page 104
E	Workforce policies and practices Prudential has applied principle E and ensures that standards of business conduct and workforce policies that support the long-term and sustainable success of Prudential are maintained. Employees are able to raise concerns under the Company’s Speak Out process.	Section 172 Statement (for provision five): Page 89 Sustainability section: Pages 98 Whistleblowing (Speak Out) (for provision six): Page 185
2. Division of responsibilities
F	Role of the Chair Shriti Vadera was independent on appointment when assessed against the criteria in UK Code provision 10 (she was also independent under HK Code criteria). There is no requirement for independence to be determined post appointment.	Governance report: Page 169
G	Division of responsibilities The Board consists of a majority of independent Non-executive Directors. There is a clear division of responsibility between the Board and the executive management team.	Governance report: Page 167 Nomination & Governance Committee report: Page 190 Schedule of matters reserved to the Board and terms of reference for the principal committees: www.prudentialplc.com/en/investors/ governance-and-policies/board-and-committees-governance


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Corporate governance continued


2. Division of responsibilities continued
	H	Non-executive Directors After reviewing the performance of the Non-executive Directors, the Board was satisfied that each Non-executive Director has sufficient time to meet their Board responsibilities and has fulfilled their role. The Non-executive Directors, led by the Senior Independent Director, met without the Chair to appraise the Chair’s performance.	Nomination & Governance Committee report: Page 190
	I	Effective and efficient processes The 2025 Board evaluation tested and confirmed that the Board has the necessary support and information to function effectively and efficiently.	Governance report: Page 177
3. Composition, succession and evaluation
	J	Appointments and succession planning The Board applied Principle J and provisions 20 and 23 to appointments and succession planning. Succession planning for the CEO and the GEC is considered by the whole Board.	Nomination & Governance Committee report: Page 190
	K	Skills, experience and knowledge The Board and its committees have a diverse combination of skills, experience and knowledge.	Directors’ biographies: Page 156
	L	Board evaluation, composition and diversity The Board evaluation confirmed the effectiveness of the Board and its individual members. The Nomination & Governance Committee assesses Board (and committee) composition and diversity.	Governance report: Page 177 Nomination & Governance Committee report (including provision 23): Page 190
4. Audit, risk and internal control
	M	Integrity of financial and narrative statements Prudential has formal and transparent policies and procedures that ensure the independence and effectiveness of its internal and external audit functions. In accordance with DTR 7.1.3(5) the Board is satisfied with the integrity of Prudential’s financial and narrative statements. The Audit Committee is made up of independent Non-executive Directors (provision 24) and its terms of reference follow the Audit Committee Minimum Standard (provision 25).	Audit Committee report: Page 181
	N	Fair, balanced and understandable The Board has presented a fair, balanced and understandable assessment of Prudential’s position and prospects in this Annual Report and Accounts.	Governance report (including provisions 27, 30 and 31): Page 200 Audit Committee report (including provision 26): Page 181
	O	Internal control and risk management The Board has established an effective internal control and risk management framework, which is kept under regular review.	Risk management and internal control: Page 179 Risk review: Pages 56
5. Remuneration
	P	Remuneration policies and practices Prudential’s remuneration policies and practices support the achievement of the Group’s strategy, promote long-term sustainable success and are aligned to its purpose and values. Performance-related remuneration is subject to malus and clawback provisions, which are detailed in the Directors' Remuneration Policy.	Directors’ remuneration report: Page 204
	Q	Procedure for developing policy A formal and transparent procedure for the development of the Remuneration Policy is in place and no Director is involved in deciding their own remuneration outcome.	Directors’ remuneration report: Page 204
	R	Independent judgement and discretion Directors exercise independent judgement and discretion when authorising remuneration outcomes.	The shareholder-approved Directors’ Remuneration Policy sets out the limited circumstances in which the Remuneration Committee may exercise discretion. This policy is available to view on the Company’s website at www.prudentialplc.com/ investors/governance-and-policies/policies-and-statements An updated policy will be presented to shareholders for approval at the AGM.


	167 Prudential plc Annual Report 2025

How we operate

Board governance structure


Shareholders

Board of Directors
The Board establishes the purpose, values and strategy of the Group and promotes its long-term success for the benefit of our shareholders and other stakeholders. The Board delegates to the following principal committees:



Audit Committee	Risk Committee	Remuneration Committee	Nomination & Governance Committee	Sustainability Committee
Responsible for oversight and review of financial reporting. It oversees the effectiveness of the internal control and risk management framework, including the effectiveness of financial and non- financial reporting controls, and for making the relevant disclosures in the Annual Report. It also considers the effectiveness and objectivity of the internal and external auditors.	Responsible for oversight and review of the Group’s risk appetite, tolerance and strategy. It monitors current and potential future risk exposures, the effectiveness of the Group’s risk management framework and adherence to applicable risk policies and regulatory obligations.	Responsible for recommending remuneration policy and overseeing the implementation and operation of that policy, including approving remuneration for the Chair, the CEO and other members of the Group Executive Committee.	Responsible for oversight of Board and executive succession plans (unless considered by the Board), nominating candidates for appointment to the Board, oversight of Board performance and corporate governance matters.	Responsible for providing leadership, direction and oversight of the Group’s sustainability strategy, including environmental matters, responsible investment, social sustainability, and people. The Committee leads on workforce engagement.
See page 181	See page 187	See page 204	See page 190	See page 197

Chief Executive Officer (CEO)
Responsible for the day-to-day management of the business.

Group Executive Committee
The Group Executive Committee (GEC) is responsible for executing the strategy approved by the Board and supporting the CEO.



Chief Financial Officer The Chief Financial Officer (CFO) is responsible for managing the Finance function, including all aspects of financial reporting and planning, and investor engagement.	Chief Risk and Compliance Officer The Chief Risk and Compliance Officer (CRCO) is responsible for leadership of risk management and compliance activities of the Group, including setting the Group Risk Framework and related policies, supporting strategic planning to ensure risks are managed within appetite, and leading engagement with regulators and policymakers across markets.	Company Secretary The Company Secretary advises the Board and management on governance-related matters and supports the Chair in ensuring the effective functioning of the Board and its committees. The Company Secretary is available to all Directors to provide advice and support and facilitates Directors’ induction and ongoing professional development.
The CFO and the CRCO are standing attendees at, and receive all papers for, meetings of the Board (except private meetings of Non-executive Directors). They also attend meetings of the Audit and Risk committees and the CFO attends meetings of the Sustainability Committee.
The CFO and CRCO are members of the GEC, but the Board approves their appointment and removal. Their performance reviews consider feedback from the Chairs of the Audit and Risk committees respectively, and their remuneration is determined by the Remuneration Committee.


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How we operate continued

Board, Director and committee responsibilities

Led by the Chair, the Board is responsible for the overall leadership of the Group, which includes:

Delivering long-term sustainable success

for shareholders and contributing to

wider society

Ensuring effective engagement with

stakeholders

Monitoring performance and

implementation of strategy and strategic

objectives, capital allocation, and business

plans

Fostering and overseeing the embedding

of culture

Establishing the Group’s purpose, values

and strategy and ensuring that these and

the Group’s culture are aligned

Ensuring that an effective system of

internal control and risk management

is in place and approving the Group’s

overall risk appetite and tolerance

Approving the appointment of

Directors, including the CEO and, on

recommendation of the CEO, the

appointment of the CFO and the

CRCO, ensuring an effective system of

talent development and succession

planning for senior leadership roles

Approving the Group’s long-term

strategic objectives, business plan and

budgets

Approving Prudential’s periodic financial

reporting disclosures

In order to carry out its functions effectively, the Board delegates

some of its responsibilities to its principal committees, which consist

of Non-executive Directors only.

The Board receives regular updates on the activities of its committees.

The Board’s responsibilities are outlined in the schedule of matters

reserved to the Board, which is available on our website at

www.prudentialplc.com/en/investors/governance-and-policies/board-

and-committees-governance.

The Board’s responsibilities are also subject to relevant laws and

regulations, and to Prudential’s Articles of Association, which can be

found at www.prudentialplc.com/en/investors/governance-and-

policies/memorandum-and-articles-of-association.

The roles of Chair and CEO are separate, with a clear division of

responsibilities between the Chair’s leadership of the Board and the

CEO's responsibilities for the day-to-day management of the Group.

All other Board members are independent Non-executive Directors

who offer strategic guidance and constructive challenge to

management. At the date of this report, the Board consists of 11

Non-executive Directors and one Executive Director, who is the CEO.

The Board’s size allows for effective decision-making and reflects a

broad range of views and perspectives. More information on the skills

and experience of individual Directors can be found in their

biographies on pages 156 to 161. More information on their

independence can be found on page 195.

The Chair, CEO and SID all have written terms of reference, which are

approved by the Board and kept under regular review.

Board meetings

Typically, five meetings each year are held in person, and two shorter

meetings are held virtually. In addition, the Board (or a committee

established by the Board for that purpose) meets virtually to discuss

the full-year and half-year results. Scheduled meetings typically take

place at our head office in Hong Kong or at one of our businesses,

providing opportunities for Board members to engage directly with

management and the wider workforce. Additional meetings are

arranged as required and are often held virtually, particularly if called

at short notice.

Board and committee papers are typically provided one week ahead

of a meeting and when a Director is unable to attend, their views are

canvassed in advance by the Chair.


	169 Prudential plc Annual Report 2025

Roles, responsibilities and meeting attendance


Role and responsibilities	Board member	Board meetings¹	AGM attendance 2025
Chair The Chair is responsible for the leadership of the Board in its role to promote the long-term sustainable success of the Company and in holding management to account. She shapes the culture in the boardroom, is responsible for ensuring the Board’s effectiveness and leads on Director-level succession. Working with the CEO, the Chair sets the Board’s agenda, with a focus on strategy, performance and value creation, and ensures effective communication with shareholders and other stakeholders. Together with the CEO, she also represents the Group externally.	Shriti Vadera	7/7	Y
CEO The CEO is accountable to, and reports to, the Board. He is responsible for the day-to-day management of the Group, including developing and recommending the Group’s long-term strategic objectives and business plans to the Board. He is also responsible for executing the approved strategy and business plans, and embedding the Group’s values and culture. The CEO plays a key role in communicating with shareholders and other stakeholders, and in establishing the Group’s internal control framework. Read more in the Strategic report, page 2	Anil Wadhwani	7/7	Y
Senior Independent Director The SID acts as a sounding board for the Chair and supports her in the delivery of her objectives. The SID is also an intermediary for other Directors and shareholders as needed and leads the annual performance evaluation of the Chair.	Jeremy Anderson	7/7	Y
Non-executive Directors Non-executive Directors offer constructive challenge to management and hold them to account against agreed performance objectives. They also provide strategic guidance, offer specialist advice and serve on at least one of the Board’s principal committees.
	Arijit Basu	7/7	Y
	Chua Sock Koong	7/7	Y
	Guido Fürer (from July 2025)	3/3	n/a
	Ming Lu	7/7	Y
	George Sartorel	7/7	Y
	Mark Saunders	7/7	Y
	Claudia Suessmuth Dyckerhoff	7/7	Y
	Jeanette Wong	7/7	Y
	Amy Yip (until 31 October 2025)	5/6	Y
Committee chairs Committee chairs are responsible for the leadership and governance of their respective Committees. They set the agenda for committee meetings and report to the Board on committee activities. Audit Committee report – Page 181 Risk Committee report – Page 187 Directors' remuneration report – Page 204 Nomination & Governance Committee report – Page 190 Sustainability Committee report – Page 197
	Jeanette Wong (Audit Committee)
	Jeremy Anderson (Risk Committee)
	Chua Sock Koong (Remuneration Committee)
	Shriti Vadera (Nomination & Governance Committee)
	George Sartorel (Sustainability Committee)

(1) The Board held six scheduled meetings, plus one additional short meeting to consider full-year results.

(2) Amy Yip was unable to attend one Board meeting due to conflicting commitments.


	170 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

How we operate continued

Standing Committee

In addition to the principal committees, the Board operates a

Standing Committee that meets to discuss any ad hoc urgent issues

that cannot be delayed until the next scheduled Board meeting. All

Directors are members of the Standing Committee. Before making

decisions, the Standing Committee must agree that the topics for

discussion do not require consideration by the whole Board.

The Standing Committee allows for agile decision-making when

required, while ensuring that all Board members receive notice of

items that need to be addressed urgently and have an opportunity to

contribute. In 2025, the Standing Committee met once.

Delegation to management

While responsibility for the day-to-day management of the business

and implementation of strategy has been delegated to the CEO, the

CEO delegates certain responsibilities to senior executives (principally

to other members of the GEC). In addition, the Board has delegated

certain approvals to the GEC, within financial limits set by the Board.

The members of the GEC, and short biographies of each individual,

can be found on pages 162 to 164.

The GEC typically meets weekly and supports the CEO in the day-to-

day management of the business and the implementation of

strategy.

The GEC has delegated approval authority up to certain financial

limits to individual Committee members and sub-committees, each of

which is responsible for supporting, advising and making

management decisions on significant activities across the Group. The

sub-committees are respectively responsible for:

– Customer, Wealth & Operations

– Agency Distribution

– Technology

– Partnership Distribution

– Health

The management of the Group is organised into Strategic Business

Groups which bring together the mature and growth businesses

within different markets to drive performance, operational excellence

and the sharing of best practice. Each Strategic Business Group is

headed up by a Regional CEO who is responsible for driving

performance, operational excellence and sharing of best practice for

the mature and growth businesses within their business group. The

Regional CEOs of these groups are responsible for the operational

results of the businesses within their group and for the Group-wide

delivery of enabling functions. The Eastspring CEO is responsible for

the growth of Eastspring’s business and the delivery of its investment

performance.

The CEO conducts quarterly reviews with each Regional CEO and the

Eastspring CEO, focusing on performance across each CEO’s

respective markets, Group-wide strategic pillars and enablers over the

previous quarter, and the outlook and plans for the upcoming quarter.

The meeting agenda changes throughout the year, emphasising

results preparation in the first quarter and business planning in the

fourth quarter. Additionally, every six months, the CEO reviews

business performance with the four Material Subsidiaries (Hong Kong,

Singapore, Indonesia and Malaysia). These meetings are typically

attended by members of the GEC and other members of

management such as Pillar and Enabler leads and stakeholders from

Head Office and the respective Strategic Business Group.

Subsidiary governance

Prudential is committed to high standards of governance across the

whole Group. The Group Governance Manual (GGM), which includes

the Group Code of Conduct (Code), outlines the Group-wide approach

to governance, risk management and internal control, and helps

embed it into the day-to-day operations of the business.

The GGM also outlines the Group’s governance framework, Group-

wide policies and standards, including the Group Risk Framework,

delegated authorities and lines of responsibility, and is supported by a

programme of regular training across the Group.

The Nomination & Governance Committee monitors significant

aspects of the Group’s governance framework and governance

policies, including those of the Group’s Material Subsidiaries (as

described below), and makes recommendations to the Board when

needed. The Risk Committee approves the GGM’s Group Risk

Framework, an integral part of the GGM, while the Audit Committee

monitors Group-wide compliance with the GGM throughout the year.

Businesses manage and report compliance with the Group-wide

mandatory requirements set out in the GGM through an ongoing

GGM policy exemption and breach reporting process. This includes

compliance with the Group Risk Framework, which is summarised on

pages 179 to 180 of this report.

Reflecting the developing nature of the Group and the markets in

which we operate, the GGM is reviewed regularly with any significant

changes to key policies reported to the relevant Board Committee.

The GGM helps the Board embed the Group’s system of risk

management and internal control into the day-to-day operations of

the business.

Material subsidiaries

The Group defines its Material Subsidiaries as its insurance entities in

Hong Kong, Indonesia, Malaysia and Singapore, together with the

Eastspring holding company.


Material Subsidiary		GEC member responsible
Prudential Hong Kong Limited		Angel Ng, Regional CEO, Greater China; Group Customer, Wealth and Product
PT Prudential Life Assurance (Indonesia)		Naveen Tahilyani, Regional CEO, Indonesia, Malaysia, the Philippines, India, Africa; Group Agency and Health
Prudential Assurance Malaysia Berhad		Naveen Tahilyani
Prudential Assurance Company Singapore (Pte) Limited		Dennis Tan, Regional CEO, Singapore, Thailand, Vietnam, Cambodia, Laos, Myanmar; Group Partnership Distribution
Eastspring Investments Group Pte. Ltd		Rajeev Mittal, CEO, Eastspring Investments

Prudential’s Material Subsidiaries, together with several other

subsidiaries, have adopted a governance structure which includes

independent non-executive directors on their boards and audit

and risk committees with standard terms of reference. These audit

and risk committees are chaired by an independent board member.

To ensure consistent communications, the Chairs of the Group Audit

and Risk committees maintain regular dialogue with their

counterparts in each of the Material Subsidiaries and, in 2025, they

expanded this to include the next largest major operating

subsidiaries, namely those in the Philippines, Taiwan, Thailand and

Vietnam. In addition, Material Subsidiaries and other life insurance

businesses that operate local audit and risk committees provide

written updates to Group-level committees and can refer issues to the

Group committee chairs or Management if needed.


	171 Prudential plc Annual Report 2025

In 2025, the chairs of the Group Audit and Risk committees hosted

two online subsidiary governance forums, in May and in October,

where they met with Non-executive Directors from each of the

Material Subsidiaries to discuss areas of mutual importance.

The first event in May focused on risk and compliance topics including

the Group’s risk strategy and regulatory focus, risk management,

emerging risks and the Group’s government relations strategy. The

session was chaired by the Chair of the Risk Committee and included

contributions from senior members of Group Risk. The second event,

in October, which was also attended by Non-executive Directors from

the Philippines, Taiwan, Thailand and Vietnam, was focussed on

oversight of the Group’s internal controls and risk management

framework, with updates also on sustainability reporting and the

Finance function. Chaired by the Audit Committee Chair, the sessions

were led by senior members from Risk and Compliance, Finance, and

Sustainability, as well as the Chief Internal Auditor and the external

auditor, EY.

In addition, the CEO holds briefing sessions for all subsidiary Non-

executive Directors on the half-year and full-year results.

Regulators

Prudential Corporation Asia Limited is a designated insurance holding

company under the Hong Kong Insurance Ordinance and falls within

the scope of the Hong Kong IA’s Group-wide Supervision (GWS)

Framework. The GWS Framework includes requirements for Hong

Kong insurance groups to have appropriate corporate governance

arrangements in place and to maintain appropriate internal controls

for the oversight of their business. The Group was recently classified

as a Domestic Systemically Important Insurer by the Hong Kong IA.

The composition of the Prudential Corporation Asia Limited board of

directors mirrors the Prudential plc Board.

Individual regulated entities within the Group are also subject to

entity-level regulations in the jurisdictions in which they carry out

business.

Stakeholder engagement

Information on the Board’s engagement with, and discussion of,

stakeholder views as part of the Board decision-making process can

be found on pages 89 to 97.

Employee voice

Prudential’s programme for workforce engagement is led by the

Sustainability Committee and all Board members take part in

engagement activities. An overview of the workforce engagement

activities during 2025 can be found in the Section 172 Statement on

page 93.

Shareholder Communications Policy and engagement

We have dual primary listings on the Hong Kong Stock Exchange and

the London Stock Exchange, as well as a secondary listing on the

Singapore Stock Exchange and a listing of American Depositary

Shares on the New York Stock Exchange. These listings are each

subject to laws or rules that inform our Shareholder Communications

Policy.

The policy ensures that shareholders and the broader investment

community receive timely, balanced and understandable information

about the Company and its financial performance, strategic goals,

plans and material developments. This enables existing and

prospective shareholders to exercise their rights and make decisions

on an informed basis.

Information released by the Company to the various stock exchanges

is also posted on the Company’s website (www.prudentialplc.com).

Prudential’s corporate communications are available in English and

Chinese.

The Group maintains an active and wide‑ranging investor

engagement programme led by the Chief of Investor Relations, with

participation from the CEO, CFO and other members of the GEC

where appropriate. Throughout 2025, Management engaged with

institutional investors across Asia, North America, Europe, the UK and

the Middle East through a combination of one‑to‑one and group

meetings, investor conferences and organised roadshows, in some

cases organised by brokers. Insights gathered from these interactions

are regularly reported to the Board and are considered as part of its

strategic decision‑making.

The Chair holds an annual engagement programme with major

shareholders. The Remuneration Committee Chair also engages with

major shareholders each year to gather feedback on the

implementation of the Directors’ Remuneration Policy, and in 2025

sought views on the proposed new policy which is subject to

shareholder approval at the AGM in 2026. Other Non-executive

Directors, in particular the SID and committee chairs, are available to

meet with shareholders on request.

Shareholders are able to share their views on matters affecting the

Company through a range of engagement channels available

throughout the year, including investor events. The Group offers

hybrid AGMs to enable participation from shareholders wherever they

are based. Retail shareholders in the UK are also able to meet

periodically with the Chair and management in person.

Throughout the year, retail shareholders are able to access dedicated

services through the Company’s registrar, Computershare. More

information is available in the Shareholder information section on

page 406 and on the Company’s website, including contact details

for the Group’s Secretariat.

The Group undertakes a broad programme of investor engagement,

hosting presentations and maintaining active dialogue with

shareholders and the research community through both live and

online channels. The Group benefits from active research coverage in

Hong Kong, Singapore and the UK and provides research analysts

with appropriate access to the management team.

A summary of the Board’s and the Group’s stakeholder engagement

activities in 2025 is set out in the Section 172 Statement on pages 89

to 97.

The Board conducts an annual review of its Shareholder

Communications Policy. For the year ended 31 December 2025, the

Board concluded that the Shareholder Communications Policy

continues to be effective.


	172 Prudential plc Annual Report 2025


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How we operate continued

Living our values – embedding and monitoring our culture

The Board established the Group’s purpose, values and strategy and

satisfies itself that these and our culture are aligned, which is critical

to our long-term value creation and sustainability. We aim to operate

a high-performance culture where employees are motivated,

engaged, and collectively committed to achieving exceptional results

that support our business strategy. We work towards achieving this

through both actions and behaviours, guided by our values, known as

The PruWay (the values are described in our Sustainability Report on

page 37). Our Code of Conduct provides a valuable tool to help all

employees to uphold The PruWay, act with integrity and operate

ethically. The Board recognises that Prudential’s culture starts at the

top and is a key enabler to delivering our strategic objectives and

purpose.

Throughout the year, the Board monitored the extent the Group's

culture was embedded throughout the organisation in a number of

ways:

Board engagement

Board and Committee meetings and workshops are attended by

senior representatives from Head Office and various business units,

providing a valuable engagement opportunity for Board members. In

addition, the Board usually holds at least one meeting a year at one

of our local businesses and spends time interacting directly with local

management and employees. New Directors spend time with

management both at Head Office level and in business units as part

of their induction process. This is supplemented by targeted

engagement sessions including regular town hall meetings led by

members of the GEC, both at Group and local business level, with

observations reported to the Board.

The Sustainability Committee leads on employee engagement on

behalf of the Board and monitors the annual programme of activities,

which range from Director participation in internal engagement

events to participation in town hall events and smaller sessions with

local leadership teams and talent. The Sustainability Committee also

considered insights gained from the employee survey conducted in

2025.

The Board gains additional insight into the culture across the

organisation through the activities of the Audit and Risk Committees.

The Audit Committee receives feedback from the internal auditors on

their observations on culture and its alignment to purpose and values

as observed from their review activities and engagement with

management, including on certain key indicators such as

management’s risk awareness and responsiveness to addressing

audit findings. Where there have been significant audit findings, the

Audit Committee asks the accountable executives to attend to report

to the Committee on the root causes of the issues and how they are

addressing them. The Audit Committee also oversees the Group’s

Speak Out procedures and seeks assurance that management are

taking appropriate steps to address any issues identified. The Audit

Committee meets regularly in private with the Chief of Internal Audit,

the Group General Counsel (who has overall responsibility for the

Speak Out programme), and the external auditor, providing additional

opportunities for any potential culture issues that they have observed

to be raised. The Risk Committee monitors risk culture and reports to

the Board on how well this is embedded across the Group. During the

course of 2025, it discussed initiatives to enhance the monitoring of,

and reporting on, risk culture including a set of key culture metrics.

This work will be continued in 2026.

The Chairs of the Audit and Risk Committees regularly engage with

the local business unit Non-executive Directors, providing an

additional lens for monitoring local culture across the Group.

The combination of interactions in formal and informal settings

provides the Board with a range of touchpoints for effective

monitoring of culture.


	> More information is available in our Section 172 statement on page 93 and in the Sustainability section on page 98

Development and Succession planning

The Board conducted an annual review of development and

succession planning for the GEC, including the CEO. The CEO led the

discussion on his direct reports, enabling a robust conversation and

opportunity for all Non-executive Directors to ask constructive and

appropriately challenging questions on the strength of the succession

pipeline and how senior leaders are being developed in line with the

desired culture. This provided the Board with further insight into how

well senior management set the tone from the top. The Sustainability

Committee looks at the development of talent and succession

pipelines across the organisation (below GEC level).

Strengthening and elevating our leadership capability is one of our

key priorities for 2026. Our aim is to further strengthen our teams’

alignment on outcomes that matter most, and focus efforts on where

it creates the greatest impact. Complementing ‘what’, we continue to

emphasise the ‘how’ of performance – how leaders show up, lead,

communicate and live our values (The PruWay). This includes

reinforcing inclusive leadership behaviours and practices and creating

an environment where diversity of thought is encouraged and valued.


	> More information on Board succession planning is available in the Nomination & Governance Committee report on page 192.

Remuneration

To embed the organisation's values and reflect our performance

culture, we have enhanced our performance and reward

management approach to drive equal emphasis on WHAT (business

KPIs) and HOW (value and behaviours), including our PruWay 360

Feedback process on the HOW factors. The Sustainability Committee

is updated on performance management below GEC level and the

Remuneration Committee is updated on the remuneration

architecture for staff within its purview, which includes alignment of

pay to our performance culture. The Risk Committee advises the

Remuneration Committee on risk management and conduct

considerations to ensure that risk management, culture and conduct

are appropriately reflected in the design and operation of executive

remuneration. The Remuneration Committee also considers

workforce remuneration, including alignment of the Group’s incentive

arrangements with culture. Our target is that all people managers

have at least one sustainability-linked goal by 2026, which fosters a

culture where every employee understands their role in creating a

more inclusive, resilient and sustainable future.


	> More information on Board remuneration is available in the Directors’ Remuneration report on page 204.


	173 Prudential plc Annual Report 2025

Code of Conduct

Our Code of Conduct is reviewed annually by the Sustainability

Committee and any changes recommended are approved by the

Board. The Code sets out the principles that guide our values and the

personal conduct expected of our workforce and provides a clear

foundation for our corporate culture. All employees provide

confirmation annually that they have adhered to the Code.


	> Our Code of Conduct can be viewed at www.prudentialplc.com/en/about-us/corporate- governance-and-corporate-actions/policies-and- statements/

Whistle blowing

Prudential operates a robust whistleblowing programme ('Speak

Out'), which is overseen by the Audit Committee. The arrangements

promote a culture of openness, honesty and accountability and are

assessed annually by an independent whistleblowing charity in the

UK.


	> More information on the programme is available on page 185.

Employee surveys

A high performance culture is key for our success, embedding The

PruWay which defines our ways of working with one another and how

we deliver value for all our stakeholders. We conduct all-employee

surveys at least annually and the outcomes are reviewed in detail by

the Sustainability Committee and reported to the Board. This provides

valuable insights into how our desired culture is embedded across the

breadth of the organisation and allows the Board to address any

areas requiring more focus.

Outcomes of culture monitoring

Through the activities set out above and the regular updates from the

CEO, the Chair of the Sustainability Committee and the Chief of

Human Resources, the Board received assurance that Prudential’s

culture is aligned to its purpose and values, while recognising further

areas of embedding and alignment required. Meetings with

accountable executives in response to operational incidents or

internal audit findings help the Board in understanding the root

causes of incidents and whether they are reflective of wider cultural

issues: where there is any sense of cultural issues, the Board will follow

up with ongoing scrutiny. Overall, the Board gained broad

understanding of practices and behaviours across the Group and how

these align with the purpose, values and strategy of the Group,

including an understanding of the approach to the culture of risk

ownership in the business and was able to assess how effectively the

tone from the top is reflected throughout the organisation. This

assessment informs the Board and its committees in their approach

to challenging management and informs decision-making in relation

to Executive remuneration. The assessment also contributes to the

programme of focused work by the Risk Committee on first line risk

ownership and accountability.


	174 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

How we operate continued

Board activities

Key areas of focus – how the Board spent its time in 2025



	Q1			Q2
	February			May
	– Discussed macro-economic context and key areas of focus for the year. These included the three key strategic priorities of agency, health and operations, and particular markets; – Considered potential IPO of ICICI Prudential Asset Management Company; – Discussed action plan to address key findings from the investor perception survey carried out in 2024; and – Received feedback from the Group-wide Supervisor on key observations and actions expected of the Group following the Regulatory College in November 2024 and approved the Group’s response.			– Considered updates to the Group’s capital allocation framework; – Approved in principle the IPO of ICICI Prudential Asset Management Company; – Discussed aspects of Group strategy, in particular regarding agency, the Hong Kong business, and the framework for developing the Group’s longer-term strategy; – Approved the establishment of an entity in Bermuda as part of an initiative to enhance capital optimisation and internal reinsurance capabilities; – Approved updates to the Group risk appetite and the 2025 Group Own Risk and Solvency Assessment Report for submission to the Hong Kong Insurance Authority; and – Attended the AGM.
	March			June
	– Discussed macroeconomic and geopolitical trends affecting the Group’s key markets, supported by the Group Chief Economist; – Considered the Group’s capital allocation framework; – Approved the 2024 second interim dividend; – Reviewed the Group’s Operations strategy, a key component for enabling delivery of strategic goals and enhancing customer experience; – Reviewed options for enhancing the Group’s asset management capabilities in particular asset classes; – Discussed priority areas of focus in the agency channel; – Approved the final 2025-2027 Group Business Plan (on TEV basis and with re-based economics); – Discussed the investor communications strategy to address key findings from the 2024 independent investor survey, building on the action plan discussed in February; – Reviewed and approved documents and statements related to year-end reporting, following review and recommendation by the Audit Committee; – Reviewed and confirmed effectiveness of risk management and internal control system; – Discussed findings of the 2024 internal Board performance review and agreed action plan; – Received feedback from the Chair and Remuneration Committee Chair on their annual shareholder engagement programmes; and – Approved key items for the AGM.			– On the recommendation of the Nomination & Governance Committee, approved the appointment of Guido Fürer to the Board.


Scheduled meeting: Virtual	Scheduled meeting: In-person	Virtual meeting to consider financial reporting
AGM	Site Visit	Strategy Workshop	Board committee meeting - virtual


	175 Prudential plc Annual Report 2025


	Q3			Q4
	July			October
	– Reviewed progress of delivery of strategic objectives, focusing particularly on agency, health, technology and operations; – Considered the framework for the development of the Group’s long-term strategy beyond 2027; – Progress review of the execution of the Group’s Health strategy; – Further discussion of the Group’s capital allocation framework and approval of updates announced as part of the Half Year Results; – Considered initiatives to enhance the Group’s asset management capabilities in particular asset classes; – As part of the Board visit to Indonesia, received update on the Indonesia business (see page 176 for further details); – Approved funding for the newly established Bermuda entity; and – Approved the settlement of litigation in Malaysia (announced on 31 July 2025).			– Annual offsite strategy sessions, which included deep dives into key pillars of the Group’s strategy, including AI, Wealth and the Group's strategic approach in China, as well as scenario analysis to underpin the Group’s long-term strategic planning; – Discussed the approach to the Group’s 2026-2028 business plan; – CITIC Pru Life Business and Strategy update, joined by Chair of CITIC Pru Life; – Update on initiative to enhance the Group’s asset management capabilities in certain asset classes; – Discussed development and succession planning for the CEO and other GEC roles; and – Received an update on the IPO of ICICI Prudential Asset Management Company and approved pre-IPO placements.
	August			December
	– Reviewed and approved documents and statements related to half-year reporting, following review and recommendation by the Audit Committee; and – Approved the first interim dividend for 2025.			– Approved the 2026-2028 business and capital plan and 2026 strategic priorities; – Considered the framework for the development of the Group’s long-term strategy beyond 2027; – Discussed the performance, challenges and strategic transformation of the agency channel; – Deep dive into the Eastspring asset management business; – Considered the Group’s strategic approach in India; – Final approval for IPO of ICICI Prudential Asset Management Company; – Received an update on Government Relations strategy; – Received updates on progress made in the Group’s people and culture initiatives and focus areas for 2026; – Approved the establishment of a Bermuda business unit to support Wealth strategy; and – Reflected on lessons learnt and insights gained over the year.


Scheduled meeting: Virtual	Scheduled meeting: In-person	Virtual meeting to consider financial reporting
AGM	Site Visit	Strategy Workshop	Board committee meeting - virtual

In addition, the Board received regular performance updates from the CEO, CFO, the Chief of Investor Relations and regional business heads,

alongside reviews of operational performance in key markets and across distributions channels, ensuring comprehensive oversight of financial

and operational matters and progress in executing the Group’s strategic priorities. The Board also considered reporting on the Group’s other

principal stakeholder groups including employees, regulators and policy‑makers, and, at an aggregated level, customers, to ensure that

stakeholder considerations continued to inform decision‑making.

The Board considered the evolving landscape of macro-economic and geopolitical trends, supported by regular analysis and briefings from the

Group Chief Economist and the Chief Government Relations and Policy Officer, as well as regulatory and political developments in the markets in

which the Group operates. Additional insights were provided through regular reports from the CEO and CRCO on the Group’s engagement with

its key regulators.

Governance and risk management considerations remained integral to the Board’s decision-making, supported by regular reports from the CRCO

and the Board’s approval of all strategic and material operational matters in line with the Group’s internal risk management and governance

policies.

The Board’s approach was further informed by updates from the Chairs of the Audit, Risk, Remuneration, Nomination & Governance, and

Sustainability Committees, each of which provided advice and assurance over their respective areas of responsibility.

Director development programme

Throughout the year, the Board and its committees received regular business updates and participated in deep-dive sessions that helped to

develop their knowledge of individual businesses, current and emerging issues relevant to the Group and particular products and business

opportunities. The development programme for the Board included the following in 2025:


	176 Prudential plc Annual Report 2025


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How we operate continued


January	Global sustainability trends impacting the insurance industry (externally-facilitated) (Sustainability Committee)
February	Impact of global sustainability trends on Prudential (Sustainability Committee)
March	Geopolitical and macro-economic update Deep dive into key drivers of Group valuation Deep dive into management of participating products (Risk Committee)
April	Update on US tariffs Deep dive into Hong Kong products and associated investment risk UK Corporate Governance Code – Provision 29 (Audit Committee)
May	Deep dive into product portfolio (Risk Committee) Overview of global remuneration trends and practices (Remuneration Committee) Hong Kong business update and market overview Board workshop on asset and liability management, led by the Group Chief Investment Officer Update on US tariffs Externally-led Board workshop on AI adoption in practice
July	Indonesia business update and market overview Externally-led session on Indonesia’s macro-economic and political landscape Deep dive into foreign ownership rules across markets (Risk Committee) Update on GIECA internal model review (Risk Committee)
October	Global macro-economic and geopolitical trends, led by the Group Chief Economist External view of Prudential from a top 20 investor CITIC Pru Life business update and market overview Update on evolving regulatory capital standards (Risk Committee) Deep dive into investment strategy and governance, led by the Group Chief Investment Officer Asset management business update and market overview
December	Deep dive into alternatives investment process (Risk Committee)

The Risk Committee received regular updates on geopolitical, macroeconomic and regulatory developments, updates on regulatory

developments and external trends in respect of financial crime, cyber security, data privacy, and AI, and on a rotating basis was briefed by the

CROs of the Material Subsidiaries on the regulatory developments, industry trends and key risks in their markets. The Sustainability Committee

received regular updates on the ESG geopolitical landscape.

Board visit to Indonesia

In July, the Board visited Indonesia and spent time with our Conventional Life, Syariah and Eastspring businesses. This was an opportunity

for the Board to speak with colleagues and agents to deepen its understanding of the Indonesian market, the opportunities for growth and

the strategies being pursued by the businesses.

As well as presentations on the businesses, the visit involved interactions with employees, agents and strategic partners including:

– Spending time with the local management teams as well as hosting a meet and greet event with top talent in order for the Board to hear

directly from potential future leaders.

– Seeing examples of the innovative ways in which Prudential and its strategic partners are developing and using technology to better

serve customers and support agents.

– Meeting with agency leaders to celebrate successes and share views on market opportunities and how Prudential enables them to succeed.

– Hearing about sustainability initiatives and the work of the Prudence Foundation in Indonesia.

The Board hosted a dinner with local stakeholders and strategic partners, as well as a dinner with agency leaders. During the visit, the Chair

and CEO met with the President of Indonesia, Prabowo Subianto and Minister for Health, Budi Gunadi Sadikin. They witnessed the official

signing of a Memorandum of Understanding between the Indonesian Ministry of Health and Prudential which established a strategic

framework for capacity-building, digital-health innovation, and other support to advance Indonesia’s national Health Transformation

agenda. This collaboration further strengthens Prudential’s commitment to Indonesia, one of our key markets.


	177 Prudential plc Annual Report 2025

Board performance

The Board carries out formal and rigorous reviews of its own

performance, as well as that of its committees and each individual

Director, on an annual basis. These reviews are overseen by the

Nomination & Governance Committee. In line with governance

guidelines, the review is carried out by an external reviewer every

three years.

In addition to the annual review, the Chair meets regularly with the

Non-executive Directors to exchange feedback on the Board’s

performance.



Year 1
External Review
External Review		interview-based review, facilitated externally
Year 2
Internal Review
Internal Review		interview and/or questionnaire- based review, led by the Chair and the Company Secretary
Year 3
Internal Review
Internal Review		interview and/or questionnaire- based review, led by the Chair and the Company Secretary


	Internal board performance review process for 2025
	Scoping
	– Company Secretary discussed proposed approach with Chair. – Chair and Company Secretary updated Nomination & Governance Committee.
	Questionnaire
	– Company Secretary facilitated the performance review of the Board through a questionnaire for the Board and each principal Committee which covered: Board composition and dynamics; meeting management and support; the Board’s oversight of different areas; risk management and internal control; succession planning; the work of the Committees; and priorities for change.
	Feedback
	– Company Secretary analysed responses to the questionnaire and discussed themes with Chair. – Chair assessed individual performance of each Director and fed back observations. – SID consulted with Board members on performance of Chair and fed back observations.
	Outcomes
	– Outcomes of individual Director reviews were discussed by the Nomination & Governance Committee. – Outcomes of Board performance review were discussed by the Nomination & Governance Committee/Board to exchange ideas, agree priorities and actions. – Each principal Committee discussed the relevant Committee themes.

The review concluded that substantial progress had been made in

addressing the recommendations from the 2024 review. It further

confirmed that the Board and its principal Committees continued to

operate effectively throughout the year. While no significant

improvements were deemed necessary, a number of potential

enhancement opportunities were identified and discussed.


	178 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

How we operate continued

Through the review and subsequent discussion, the Board identified areas of particular focus and related actions:


Theme	Outcome of 2025 review
Board training	– Board and Committee training programme to focus on fast-evolving areas such as technology and AI, alongside refresher sessions on key products.
Operation of the Board	– Noting progress in 2025 in increasing time focused on strategic topics, continue to streamline Board agendas to ensure maximum time is allocated to the development of the Group’s future strategy. – Continue to streamline papers to help support the Board’s focus on key strategic matters. – Deepening Board oversight of senior management development and succession planning.
Operation of the Committees	– Deepening oversight of talent development and succession planning across the Group (including to ensure a diverse talent pipeline) (Sustainability and Nomination & Governance Committees). – Continue to focus on AI, technology, data and cyber risks and controls (Audit and Risk Committees). – Further refining agendas in order to allocate more time to the most significant topics (Audit, Risk and Sustainability Committees).

Actions during 2025 arising from the 2024 review


Theme	Outcomes of 2024 review	Progress in 2025
Operation of the Board	– Review Board forward agenda to increase time on strategic matters during meetings in person relative to operating and financial performance. – Noting progress in 2024, continue to streamline Board papers and hone key messages. – Refine the suite of metrics to support the Board’s monitoring of performance and progress against execution of strategic and financial objectives.	– Good progress was made in this regard, with significant time spent on strategic matters during 2025. – Board papers continued to evolve, with further focus in this area in 2026 to ensure continuous improvement. – Metrics were updated to keep pace with the development of strategic and financial objectives. Further enhancements are expected in 2026 to capture any new reporting metrics.
Induction and education	– Identify opportunities for Board education sessions in anticipation of key topics coming to the Board or Committees for discussion. – Bring more external perspectives into the Boardroom.	– Board and Committee education sessions were held on various topics. Further sessions are being arranged in 2026. – External perspectives on a range of topics were shared with the Board, which included speakers on AI, macro- economic and geopolitical trends, and other key external trends impacting the industry, as well as from a long-standing investor.

Director evaluation

Individual performance evaluation of Non-executive Directors was

undertaken by the Chair who gathered feedback from each Board

member and from relevant GEC members on each Director’s

performance. The Nomination & Governance Committee discussed

the performance of Directors at its meeting in March 2026 as part of

the overall Board review. The Chair relayed feedback on individual

Directors’ performance in one-to-one conversations.

Feedback on the performance of the Chair was gathered at a

meeting of the independent directors chaired by the SID, without the

Chair present. The SID then discussed the feedback with the Chair.

The outcome of these evaluations informed the Nomination &

Governance Committee’s recommendation for Directors to be put

forward for re-election by shareholders.

The performance of the CEO, in his executive capacity, is subject to

regular review. As part of the annual performance evaluation of all

employees, the Chair assessed the performance of the CEO in

consultation with the non-executive Board, while the CEO appraised

the performance of all other GEC members. The Chair of the Risk

Committee provided feedback to the CEO on the performance of the

CRCO, and the Chair of the Audit Committee provided feedback to

the CEO on the performance of the CFO. GEC members’

performance, including that of the CEO, is also reviewed by the

Remuneration Committee as part of its decision-making.


	179 Prudential plc Annual Report 2025

Risk management and internal control

The Board is responsible for making sure that an appropriate and

effective system of risk management and internal control is in place

across the Group.

The framework of risk management and internal control centres on

clearly delegated authorities that provide Board oversight and control

of important decisions. The framework sets clear expectations around

the management of risk across the Group. It has been designed to

monitor and manage, rather than eliminate, the risk of not meeting

objectives, while taking into account the interests of our different

stakeholders.

As a provider of financial services, the Group recognises the interests

of a broad spectrum of stakeholders and acknowledges that the

managed acceptance of risk is fundamental to our business. Effective

risk management is therefore a key source of competitive advantage

for the Group. Through selective exposure to risk, we seek to generate

customer and shareholder value, where these are an outcome of

chosen business activities and strategy. These risks will be reduced

when it is cost effective to do so. The Group’s systems, procedures

and controls are designed to manage risk appropriately, supported by

resilience and recovery plans that maintain flexibility and

responsiveness during periods of stress. There are some financial and

non-financial risks for which the Group has no tolerance, and these

are actively avoided.

Internal control

The Group Governance Manual (GGM) sets out the general principles

by which we conduct our business and defines our Group-wide

approach to governance, risk management and internal control. More

information on the GGM can be found on page 170.

Group-wide policies, internal controls and processes, based on the

GGM, are in place across the Group and include controls around the

preparation of financial reporting. The operation of these controls

and processes supports the preparation of reliable financial reporting

and of local and consolidated financial statements that adhere to

applicable accounting standards, and the requirements of the

Sarbanes-Oxley Act. These controls include certifications by the CEO

and CFO of each business on the accuracy of information provided

for use in the Group’s consolidated financial reporting, and the

assurance work carried out as required by US reporting requirements.

The Board has delegated authority to the Audit Committee to review

the framework and the effectiveness of the Group’s system of

internal control. The Audit Committee is supported by the assurance

work carried out by Group-wide Internal Audit (GwIA) and the

Group’s subsidiary audit committees, which oversee the effectiveness

of controls in each respective business. Details of how the Audit

Committee oversees the framework of controls and their effectiveness

on an ongoing basis can be found on pages 181 to 186.

Risk management

A key part of the GGM is the Group Risk Framework, which requires all

businesses to have established processes for: i) identifying; ii)

measuring and assessing; iii) managing and controlling; and iv)

monitoring and reporting the risks facing the business.

The Board determines the nature and extent of the principal risks it

is willing to take in pursuit of its strategic objectives, taking into

account the interests of our stakeholders. The Board has delegated

authority to the Risk Committee to assist it in providing leadership,

direction and oversight of the Group’s overall risk appetite, risk

tolerance and strategy. The Risk Committee also oversees and advises

on the current and potential future risk exposures of the Group;

reviews and approves the Group’s risk management framework,

including changes to risk limits within the Board-approved risk

appetite; and monitors the effectiveness of the framework

and adherence to the various risk policies. Its regular activities can be

found on pages 187 to 189.

The Group’s risk governance arrangements, which support the Board,

the Risk Committee and the Audit Committee, are based on the

principles of the ‘three lines model’: risk-taking and management,

risk control and oversight, and independent assurance.

Formal review of controls

A formal evaluation of the risk management and internal control

system is carried out at least once a year. Before the Board reaches

a conclusion on the effectiveness of the system in place, the report

is considered by the Disclosure Committee and the Audit Committee,

with risk-specific disclosures in the report also reviewed by the

Risk Committee. This evaluation takes place before the publication

of the Annual Report.

As part of the assessment, businesses carrying out the annual risk and

control evaluation must produce a business controls report. These

reports capture the results of businesses’ risk and control assessments,

including any relevant issues identified and reported by other Group

oversight functions, findings from reviews undertaken by Group-wide

Internal Audit (GwIA), which carries out risk-based audits across the

Group, and any material issues arising from any external regulatory

engagements. Any breaches or exemptions raised under Group

policies and their implications for the functioning of internal controls

are also considered. The Group Governance function, under the

direction of the CRCO, supports the carrying out of this evaluation

process.

The Group’s effectiveness assessment follows the UK and Hong Kong

Corporate Governance Codes’ guidance on risk management, internal

control and related financial and business reporting. In line with this

guidance, the evaluation does not apply to material joint ventures

and associates where the Group does not exercise full management

control. In these cases, the Group ensures that suitable governance

and risk management arrangements are in place to protect the

Group’s interests. Moreover, the relevant Group company which is

part of the joint venture or associate must also comply with

the requirements of the Group’s internal governance framework.

Progress has been made in identifying the Group’s material controls

ahead of the Board’s declaration of their effectiveness from the 2026

annual report onwards. These future declarations will address updates

to Provision 29 of the UK Code, which came into effect for financial

years beginning on or after 1 January 2026. The Group already

maintains an established risk management and internal control

framework, and the revised Code introduces enhanced disclosure

expectations in relation to material controls.

In line with these forthcoming requirements, additional focus is being

applied to the assessment of any weaknesses relating to material

controls. The Audit Committee has been kept informed of the work

undertaken to identify material controls with reference to the Group’s

material risks and the methodology being developed to evaluate their

effectiveness.

Three lines model

First line (risk-taking and management)

– Takes and manages risk exposures in accordance with the risk

appetite, mandate and limits set by the Board;

– Identifies and reports the risks that the Group is exposed to,

and those that are emerging;

– Promptly escalates any limit breaches or violations of risk

management policies, mandates or instructions;

– Identifies and promptly escalates significant emerging risk issues;


	180 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

How we operate continued

– Establishes and maintains appropriate and effective structures,

processes and controls for the management and mitigation of risks

and issues/incidents on a day-to-day basis;

– Manages the business to ensure full compliance with the Group risk

management framework as set out in the GGM; and

– Ensures adherence to all relevant regulations.

Second line (risk control and oversight)

– Assists the Board to formulate the risk appetite and limit

framework, risk management plans, risk policies, risk identification,

measurement, assessment and risk reporting processes; and

– Reviews and assesses the risk-taking activities of the first line,

and where appropriate challenges the actions being taken to

manage and control risks and approves changes to controls.

Third line (independent assurance)

– Provides independent assurance on the design, effectiveness

and implementation of the overall system of internal controls,

including governance structures and processes, risk management

and compliance.

Each business must implement a governance structure based on the

three lines model proportionate to its size, nature and complexity, and

to the risks that it manages.

Effectiveness of controls

As outlined by provision 29 of the 2018 UK Code and provisions D.2.1,

D.2.2 and D.2.3 of the HK Code, the Board reviewed the effectiveness

and performance of the system of risk management and internal

control during 2025. This review covered all material controls,

including financial, operational and compliance controls, risk

management systems, budgets and the adequacy of the resources,

and the qualifications and experience of staff of the Group’s

accounting, internal audit, financial reporting and sustainability

functions. The review identified areas for improvement and the

necessary actions that have been or are being taken. The audit

committees at Group and Material Subsidiary levels collectively

monitor outstanding actions regularly, ensuring that adequate

resources and attention are directed towards resolving them within a

reasonable time frame.

The Board confirms that there is an ongoing process for identifying,

measuring and assessing, managing and controlling, and monitoring

and reporting the significant risks faced by the Group and confirms

that the system remains effective.


	181 Prudential plc Annual Report 2025

Audit Committee report



	'Our priorities were the transition to TEV reporting and overseeing the multi-year transformation of our Finance function as the business grows and develops in line with our strategy.'

	Committee’s purpose The Committee is responsible for oversight and review of financial reporting. The Committee also oversees the effectiveness of the internal control and risk management framework, including the effectiveness of financial and non-financial reporting controls, and is responsible for making the relevant disclosures in the Annual Report. In addition, it considers the effectiveness and objectivity of the internal and external auditors. More information about the Audit Committee can be found in its terms of reference, which are available at www.prudentialplc.com/en/investors/governance-and- policies/board-and-committees-governance Committee performance The operation of the Committee was reviewed as part of the annual Board performance review. No material issues were identified. The Committee discussed the output of the evaluation and agreed areas of focus. These are included in the consolidated outcomes of the 2025 Board performance review on page 177.

Membership and 2025 meeting attendance


Committee members	Member since	2025 meetings¹
Jeanette Wong, Chair	May 2021 (Chair since March 2024)	15/15
Jeremy Anderson	January 2020	15/15
Arijit Basu	September 2022	15/15
Guido Fürer	July 2025	8/8
Mark Saunders	April 2024	15/15
Amy Yip ²	March 2021	11/13

(1) The Committee held five scheduled meetings, plus six additional shorter

meetings to consider periodic financial reporting. In addition, the Committee

held two joint meetings with the Risk Committee and two joint meetings with

the Sustainability Committee.

(2) Amy Yip was unable to attend one scheduled meeting and one of the joint

meetings due to conflicting commitments. She retired from the Board with

effect from 31 October 2025.

Regular attendees


– Chair of the Board – Chief Executive Officer – Chief Financial Officer – Chief Risk and Compliance Officer	– Company Secretary – Chief of Financial & Capital Reporting – Chief Internal Auditor – External Audit Partners

Committee diversity


¢	Male	4
¢	Female	1


	182 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Audit Committee report continued

Dear shareholder

I am pleased to present our Report outlining the key activities and

themes that the Committee focused on during the year.

Our 2025 agenda focused on financial reporting and controls. 2025

was our first year of reporting on a Traditional Embedded Value (TEV)

basis. The 2024 Annual Report and Accounts included TEV

information to provide comparatives for the 2025 TEV financial

statements and reporting since then has been solely on a TEV basis. A

key focus of the Committee has been overseeing the transition to

TEV, including reviewing the assumptions underpinning the

framework, such as the calibration of risk discount rates. We hope

that shareholders find the increased comparability of our reporting to

key peers useful.

A further priority was overseeing the multi-year programme to

transform the Group’s Finance function. The project is assessing the

capabilities and tools required across financial, actuarial and

management reporting to ensure that the Finance function continues

to operate in an effective and efficient way as the business grows and

develops in line with our Group strategy. The Committee has

remained focused on the safe delivery of the programme and

supporting the realisation of its intended benefits, receiving detailed

updates from the project team in May and October.

Ahead of changes to the declarations required under the UK

Corporate Governance Code regarding the effectiveness of material

controls, which came into effect for financial years beginning on or

after 1 January 2026, the Committee spent time understanding the

new requirements and evolving best practice for such declarations

and oversaw the preparations for the new requirements. We will

report on this new basis within the 2026 Annual Report and Accounts.

We continued to work closely with other Board committees. We held

two joint meetings with the Risk Committee in May and October,

which focused in particular on technology risks. Holding these

meetings jointly enabled us to combine our expertise and discuss the

topics and challenges in more depth.

The Committees together received a status update on our two-year

programme to enhance the Group’s control environment as a key

enabler for achieving our growth strategy, in which controls are

efficiently managed to accelerate value through operational and

financial discipline. The programme has progressed well in delivering

the expected enhancements and our focus will now move on to

monitoring the successful embedding across the organisation.

We also met jointly with the Sustainability Committee in March and

December to discuss non-financial reporting controls and receive an

update on Sustainability reporting requirements across our markets.

Jeremy Anderson (Chair of the Risk Committee) and I continued to

work closely with our counterparts in our subsidiaries. I maintained my

regular engagement with the Chairs of our Material Subsidiaries and

extended this to include the Chairs of the largest next-tier operating

subsidiaries. We held two governance forums for the members of

audit and risk committees in those subsidiaries to discuss common

issues and share best practice, in particular focusing on the role of

audit committees in overseeing the Group’s risk management and

internal control framework.

More detail on our activities is provided in the report overleaf.

Jeanette Wong

Chair of the Audit Committee



	Key committee activities in 2025

		March – Full-year reporting; – Annual review of risk management and internal controls; – Internal audit effectiveness; – Consideration of auditor re-appointment; and – Oversight of non-financial reporting (jointly with the Sustainability Committee). April – Q1 Business performance update; and – Externally-facilitated education session: Provision 29 of the UK Corporate Governance Code. May – Projects: transformation of the Finance function and preparation for Provision 29; – Bi-annual actuarial update; – External auditor: effectiveness review and audit engagement terms; – Annual report on Speak-Out programme; and – Technology risk management (jointly with the Risk Committee). July – Half-year reporting; and – Preparation for material controls reporting under Provision 29. August – Half-year reporting. October – Transformation of the Finance function; – Auditor independence policy annual review; – Technology risk management (jointly with the Risk Committee); and – Control environment enhancement project (jointly with the Risk Committee). November – Q3 Business performance update. December – Full-year reporting; – Bi-annual actuarial update; – 2026 Internal audit plan; – Review of risk management and internal controls; and – Non-financial reporting controls for full-year 2025 reporting (jointly with the Sustainability Committee).

2026 priorities

– Oversight of AI, data and cyber controls (in collaboration with the

Risk Committee);

– Oversight of risk management and internal control framework

effectiveness and monitoring under new requirements (Provision

29, UK Code); and

– Monitoring the ongoing transformation of the Finance function.


	183 Prudential plc Annual Report 2025

The Company complied with the Audit Committees and the External

Audit: Minimum Standard (the Minimum Standard) in 2025. The

Committee has undertaken the activities as discussed in this report to

meet the requirements of the Minimum Standard.

Accounting judgements and estimates supporting the

Group’s results

One of the Committee’s key responsibilities is to monitor the integrity

of periodic financial reports. This includes the Half Year Financial

Report, the Annual Report and Accounts (including compliance with

the GWS public reporting requirements), associated results

announcements and Form 20-F disclosures. The Committee also

reviews the quarterly business performance updates provided for the

first and third quarters.

In reviewing these and other items, the Committee receives reports

from management and, as appropriate, reports from internal and

external assurance providers. When considering financial reporting

matters, the Committee assesses compliance with relevant

accounting standards, regulations and governance codes focusing on

key areas of judgement and complexity.

No material changes were made to the Group’s IFRS accounting

policies during 2025, as set out in note A3.

Assumptions setting

The Committee reviewed the key assumptions and judgements

supporting the Group’s IFRS results, including those made in valuing

the Group's insurance contract balances, investments and intangible

assets. The Committee also reviewed the assumptions underpinning

the Group's TEV results.

Insurance contract balances

The measurement of insurance contract balances is based on the best

estimate of future cash flows, including those to and from policyholders,

over a long period of time. These estimates can, depending on the type of

business, be highly judgemental. Critical IFRS accounting policies,

estimates and judgements on the measurement of contract liabilities are

set out in note A3, with further details on products and the measurement

of contractual service margin (CSM) provided in note C3. The sensitivity of

the Group’s metrics to key economic and non-economic assumption

changes is set out in note C6 for IFRS and note 3 for TEV. The Committee

considered proposed changes to assumptions and other estimates in

advance of 2025 reporting. Key assumptions considered were:

– The persistency, mortality, morbidity (including expectations of

future medical costs inflation and related premium rises) and

expense assumptions (including consideration of future expense

levels anticipated in the business plan) within insurance businesses.

When assessing these assumptions, the Committee considered

recent experiences and whether adverse variances were expected

to be short term in nature; and

– Economic assumptions, including investment returns, associated

risk discount rates for TEV and related illiquidity premiums for IFRS.

Note A3 sets out the Group’s approach to setting risk discount

rates, incorporating illiquidity premiums, for IFRS.

The Committee was satisfied that the assumptions adopted by

management were appropriate.

Valuation of investments

The Committee received information on the carrying value of

investments in the Group’s balance sheet which acknowledged that

most of the Group’s investments continued to be based on quoted

prices in an active market (circa 82 per cent being included in level 1

as at 31 December 2025). Further information on the valuation of

assets is contained in note C2 of the IFRS financial statements. On

level 3 investments, the Committee noted that management had

focused in the year on enhancing control around valuation,

particularly how reviews of supporting information were performed

and documented. Climate change does not directly impact fair values,

particularly where these are built on observable inputs (i.e. level 1 and

level 2); however, the impact of environmental risks on the Group’s

assets and liabilities is discussed in more detail in note C6 of the IFRS

financial statements, the Risk review and the Sustainability report.

The Committee agreed that, overall, investments were valued

appropriately.

Intangible assets

The Committee received information to enable it to review the

carrying value of certain intangible asset balances, principally the

Group’s distribution rights asset and goodwill. After reviewing the

information provided and considering the results of the work

performed by management, the Committee was satisfied that the

carrying value of the intangibles reviewed was appropriate. More

information on the Group’s intangibles is contained in note C4 of the

IFRS financial statements.

2025 corporate transactions

The Committee received information from management on

accounting for specific corporate transactions that took place in

2025. This included the settlement of a dividend claim made by Detik

Ria, the 49 per cent shareholder in Sri Han Suria Sdn Bhd, the holding

company of Prudential Assurance Malaysia Berhad, which resulted in

a small increment to the Group's IFRS shareholders’ equity, and the

gain through the sale of shares arising upon the initial public offering

of ICICI Prudential Asset Management Company Limited.

Other financial reporting matters

Going concern and viability statements

The Committee considered various analyses from management on

the capital and liquidity positions at both Group and parent company

level, taking into account the Group’s principal risks. This included an

assessment of the impact that different stress scenarios may have on

the Group’s business plan and its resilience to those threats. Following

this review, the Committee recommended to the Board that it

remains appropriate to adopt the going concern basis of accounting

in preparing the financial statements and that the disclosures in the

2025 Annual Report and Accounts on the Group’s longer-term

viability are both reasonable and appropriate.


	184 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Audit Committee report continued

Fair, balanced and understandable

The Committee carried out a formal review of whether the 2025

Annual Report and Accounts are ‘fair, balanced and understandable’

as required by the UK Corporate Governance Code. In particular, it

considered whether the report gives a full picture of the Group’s

business model, strategy, financial position and performance in the

year, with important messages appropriately highlighted. The

consideration included key developments arising in the year, how

progress against the Group’s key strategic objectives is presented in

the Annual Report, and the balance of discussion of performance

across the Group’s operations and segments. Other aspects

considered included the level of consistency between financial

statements and management narrative sections and the prominence

of alternative performance measures, and risk disclosures.

After completion of its detailed review, the Committee agreed that,

taken as a whole, the Group’s 2025 Annual Report and Accounts are

fair, balanced and understandable.

Taxation

The Committee regularly received updates on the Group’s tax

matters and provisions for certain open tax items, including tax

matters in litigation. The Committee agreed that the level of

provisioning adopted by management is appropriate. In 2025, the

Committee reviewed the effects on the Group’s reported results of

the introduction of a global minimum tax rate of 15 per cent, which

became fully effective for the Group in 2025. It also reviewed the

associated disclosures of the change – see notes B3 and C7 of the

IFRS financial statements for further information. The Committee

reviewed and approved the annual update of the Group’s Tax

Strategy information ahead of publication on the website.

Parent company financial statements

The Committee reviewed the parent company profit and loss account

and balance sheet, which includes the recoverability of the parent

company’s investment in subsidiaries by assessing and confirming

that the net assets of the relevant subsidiaries (approximating their

minimum recoverable amount) were in excess of their carrying value

at the balance sheet date.

External audit

External audit effectiveness

The Group’s external auditor is Ernst & Young LLP (EY) and oversight

of this relationship is one of the Committee's key responsibilities.

Matters considered by the Committee in the year included:

– EY’s detailed audit strategy for the year, approach to risk

assessment and coverage of the audit response to highlighted

significant risks;

– EY's approach to Group materiality setting and their proposal on

how that is applied to individual business units;

– EY's knowledge around the key assumptions, and their insight and

constructive challenge to management by highlighting where

those assumptions are positioned on a range;

– EY’s insight around the key accounting judgements and estimates

and demonstration of professional scepticism in dealing with

management;

– The outcome of management’s internal evaluation of the auditor

and audit quality, as discussed below; and

– Other external evaluations of EY, with a focus on the FRC’s Annual

Quality Review.

The Committee maintains an open dialogue on emerging risks and

issues with the EY Group Lead Partners via a regular schedule of

meetings aligned to key reporting milestones. In 2025, the

Committee met with EY's Group Lead Partners without management

present on two separate occasions.

Management’s internal evaluation of EY

This was conducted in May 2025 using a questionnaire seeking input

from Committee members, members of Material Subsidiary audit

committees, the CFO and the Group’s senior financial leadership. The

survey asked questions covering EY’s knowledge and expertise

(including industry insight), professional scepticism and challenge,

audit process, and quality of both written and oral communications.

Comments as well as a numerical score were collected and analysed.

The feedback supported the conclusion that the audit performed by

EY was carried out to a high standard and demonstrates an

appropriate degree of challenge to management. While some areas

of improvement were identified, no material concerns were raised. EY

was given the opportunity to respond to the findings and EY

discussed proposed improvements to address specific points raised in

the evaluation.

FRC audit quality inspection of EY

When assessing the audit quality of EY, the Committee reviewed the

inspection results published by relevant regulators in respect of the

firm. In July 2025, the FRC published its 2024-2025 Audit Quality

Inspection findings in respect of EY and other large UK audit firms,

carried out by its Audit Quality Review (AQR) team. In July 2025, the

Hong Kong AFRC also published its 2024-2025 Annual Inspection

Report for Hong Kong audit firms. Both reports showed improvements

in overall grades for EY from the prior year. Overall, the Committee

was satisfied that no specific actions were needed for the Prudential

plc 2025 audit as a result of the FRC AQR inspection findings.


	185 Prudential plc Annual Report 2025

Auditor independence and objectivity

The Committee monitors auditor independence and objectivity,

which is supported by the Group’s Auditor Independence Policy (the

Policy). The Committee reviews and approves any changes to the

Policy annually. The Policy sets out the circumstances in which the

external auditor may undertake non-audit services and is based on

four key principles, which specify that the auditor should not:

– have a mutual or conflicting interest with the Group;

– audit its own firm’s work;

– act as management or employees of the Group; or

– be placed in a position of advocacy for the Group.

The Policy has two permissible service types: those that require

specific approval by the Committee on an engagement basis, and

those that are pre-approved by the Committee with an annual

monetary limit capped at no more than five per cent of the Group

audit fee in the proposed year and capped at $65,000 individually.

Non-audit services undertaken by EY were agreed prior to the

commencement of work and were confirmed as permissible for the

external auditor to undertake in accordance with the Policy, which

complies with the rules and regulations of the FRC’s Revised Ethical

Standard (2024), the US Securities and Exchange Commission (SEC)

and the standards of the Public Company Accounting Oversight

Board (PCAOB).

The Committee monitored the nature and extent of non-audit services on

a regular basis to ensure the provision of such services complied with the

Policy and did not impair the auditor’s objectivity or independence. The

Committee noted that EY typically only performed non-audit services

where they complemented its role as external auditor, for example, the

review of half-year and TEV basis results or additional assurance to

support capital market announcements.

In keeping with professional ethical standards, EY provided regular

updates and confirmed on a bi-annual basis its independence to the

Committee, setting out the supporting evidence such as details of

non-audit services and the potential threats and related safeguards in

providing those services. The confirmation was included in a report

that was considered by the Committee prior to publication of the

financial results.

The Committee will continue to monitor developments to ensure the

Group’s policies and processes around audit effectiveness and

independence evolve in line with market practice.

Fees paid to the external auditor

The fees paid to EY for the year ended 31 December 2025 amounted

to $16.3 million, of which $4.2 million were total amounts payable in

respect of non-audit services, except those required by law and

regulation as defined by the FRC’s Revised Ethical Standard (2024). A

breakdown of the fees payable to EY can be found in note B2.4 of the

IFRS financial statements. The FRC cap on the ratio of non-audit fees

over average audit fees for the past three years is only applicable for

the year ending 31 December 2026, being the fourth year of EY

being the Group’s external auditor.

The $4.2 million of non-audit services referenced above included the

review of the Group’s half-year financial statements, TEV disclosures

and other limited assurance work. In all cases, EY was considered the

most appropriate firm to carry out the work, given their knowledge of

the Group and the accumulated expertise gained from running these

engagements alongside the main audit. All non-audit services were

pre-approved by the Committee and were in line with the Policy

discussed above.

Reappointment of the external auditor

EY completed its third audit of the Group since appointment at the

Company’s AGM in May 2023 following the competitive tender

process in 2020. Based on the outcome of the effectiveness

evaluation, discussed above, and all other considerations, the

Committee concluded that there was nothing in the performance of

the auditor that would require a change at the next AGM. The

Committee, therefore, recommends that EY be reappointed as the

auditor, with John Headley remaining as the Group Lead Partner. A

resolution to this effect will be proposed to shareholders at the 2026

AGM. Under the relevant audit tender rules, the Company is required

to conduct its next audit tender before the audit of the financial year

2033.

Throughout the 2025 financial year, the Company complied with the

provisions of the Statutory Audit Services for Large Companies Market

Investigation (Mandatory Use of Competitive Tender Processes and

Audit Committee Responsibilities) Order 2014 issued by the UK

Competition and Markets Authority.

Whistleblowing

Speak Out

The Group continues to operate a Group-wide whistleblowing

programme (‘Speak Out’), hosted by an independent third party

(Navex). The Speak Out programme received ad hoc reports through

a wide variety of channels, including a web portal, QR code, free-to-

call hotlines, emails and letters. Reports are captured, confidentially

recorded by Navex and triaged by Group Investigations before being

investigated by the appropriate in-house teams.

The Committee is responsible for overseeing the effectiveness of the

Group’s whistleblowing arrangements. The Committee received

regular reports of the most serious cases and other significant matters

raised through the programme, together with the actions taken to

address them. The Committee was also briefed on emerging Speak

Out trends and themes, causal factors and post-investigation

remediation. The Committee may request, and has requested, further

reviews of particular areas of interest where it considered additional

scrutiny appropriate.

Through an annual Speak Out report and quarterly updates, the

Committee reviews the Group’s Speak Out programme, satisfying

itself that it continues to comply with legal, regulatory and

governance requirements. The Committee also considered the

consistency of approach adopted across subsidiary audit committees,

where locally recorded Speak Out events, themes and trends are

reported and considered. Where relevant, the Committee requested

information on the sharing of lessons learned.

The Committee regularly spent time privately with the Group General

Counsel (who has ultimate responsibility for the operation of the

Speak Out programme) to understand outcomes of investigations,

ensure that investigations were adequately resourced and

appropriately managed, that there had been no retaliation against

anyone making a report and that investigations were not improperly

influenced.

An annual assessment of Speak Out arrangements is undertaken by

an independent UK-based whistleblowing charity, ‘Protect’ and

benchmarked against peers. The assessment confirmed that the

Group’s programme continued to perform well and in accordance

with best practice.


	186 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Audit Committee report continued

Internal audit

Regular reporting

The Committee received regular updates from Group-wide Internal

Audit (GwIA) on audits conducted and management’s progress in

addressing audit findings within agreed timelines. Any delays in

implementing remediation actions were escalated to the Committee

and subject to enhanced scrutiny.

The independent assurance provided by GwIA formed a key part of

the Committee’s deliberations on the Group’s overall control

environment. During 2025, the areas reviewed included: strategic

change initiatives, customer outcomes, technology security, financial

risk and financial controls, operations, outsourcing; and regulatory

compliance.

The Chief Internal Auditor reports functionally to the Committee

Chair and has direct access to the Chair of the Board and to the CEO.

For administrative purposes (excluding strictly all audit-related

matters), the Chief Internal Auditor has a reporting line to the CRCO.

In addition to formal Committee meetings, the Committee meets

with the Chief Internal Auditor in private to discuss matters relating

to, for example, the effectiveness of the internal audit function,

significant audit findings and the risk and control culture of the

organisation. Where internal audit has identified high priority audit

findings, the Committee typically asks the accountable executive to

attend the following Committee meeting in order to provide an

update on the remedial actions being taken.

The Committee Chair also meets with the independent quality

assurance provider engaged by GwIA to discuss the outcome of the

quality reviews of GwIA’s work and actions arising.

Annual internal audit plan and focus for 2026

GwIA operates a 12-month audit planning approach, which provides

the Committee with a view of the planned audit coverage and

resources needed for the next 12 months, with a formal reassessment

being conducted at the half-year point to reflect topical control issues,

changes in risk profile and/or regulatory focus and business initiatives.

In December 2025, the annual internal audit plan and audit resources

for 2026 were approved.

The 2026 internal audit plan was based on a bottom-up risk

assessment of audit needs. These were mapped against various

metrics and based on a top-down approach to compliance. The plan

was then assessed against a series of risk and control parameters,

including the top risks identified by the Risk Committee, to verify that

it was appropriately balanced between financial matters, business

change, and regulatory and operational risk drivers, and provides

appropriate coverage of key risk areas and audit themes. Key areas of

focus for this plan are: transformation and change management;

customer outcomes; technology; financial risk and financial controls;

operations; investment management; outsourcing; and risk

management and regulatory compliance.

Effectiveness of internal audit

The Committee is responsible for the approval of the GwIA charter,

audit plan and resources, and monitors the effectiveness of the

function.

The Committee assesses the effectiveness of GwIA through a

combination of External Quality Assessment (EQA) reviews, required

every five years, and an annual quality assurance (QA) internal

effectiveness review.

The last EQA review was conducted in Q4 2021, with GwIA being

assessed as a mature function and receiving the highest rating

(Generally Conforms) under the Institute of Internal Audit’s

framework. Based on the 2025 internal effectiveness review, a self-

assessment performed by the internal audit function (supported by

the third-party quality assurance team engaged by GwIA), the

Committee concluded that GwIA had continued to operate

independently of management and in compliance with the

requirements of the Global Internal Audit standards in all material

aspects and had remained aligned to mandated objectives during

2025.

Internal control and risk management

Internal control and risk management framework

The Committee is responsible for reporting and making

recommendations to the Board on the effectiveness of the Group’s

system of risk management and internal control.

The Committee received particular information on the operation and

effectiveness of the financial reporting controls throughout the year.

Together with the Sustainability Committee, it also received an

overview of the non-financial metrics reported in the Annual Report

and the controls that support this non-financial reporting. These

controls focus on the metric being clearly defined and on ownership

and review of the data reported within the Group. The Committee

also discussed the scope of external assurance obtained on certain

climate-related reporting metrics.

The Committee considers the outcome of the annual review of the

system of risk management and internal control, noting areas for

improvement and the actions that have been implemented or are in

progress.

Changes to internal control and risk management

requirements

The Committee undertakes an annual effectiveness review of the

internal control and risk management framework on behalf of the

Board, with regular focus on specific emerging risk themes, which

supports the external reporting process. In preparation for changes to

the requirements under the UK Code, which we will report against

starting from the 2026 Annual Report, the Committee held an

externally-facilitated workshop to better understand the new

requirements of Provision 29 and the amendment to Principle O and

evolving best practice in implementing them. The Committee

considered guidance on defining and identifying material controls,

Board responsibilities, the scope of risk and control coverage, and

features of effective risk management and internal control

frameworks.

In subsequent meetings, the Committee considered the definition of

material control in the Group’s context, the approach to identifying

material controls, and the proposed assurance approach that will

support the Committee and Board when making future declarations

on the effectiveness of material controls. More details on Prudential’s

internal control and risk management framework are available on

page 179.

Group Governance Manual

The Group Governance Manual (GGM), which includes the Group

Code of Conduct, Group Governance Framework and the Joint

Venture Oversight Framework, sets out the general principles by which

Prudential conducts its business and the standards expected, and

defines the Group-wide approach to governance, risk management

and internal control.

Exemptions and breaches of mandatory requirements outlined in the

Group-wide policies, standards, and delegated authorities are

monitored, with remedial actions taken as necessary. All staff and

applicable contingent workers are expected to submit an annual

declaration confirming compliance with the Group Code of Conduct.


	187 Prudential plc Annual Report 2025

Risk Committee report



	‘We continued to focus on the volatile geopolitical and macroeconomic landscape throughout the year, assessing and responding to the risks to our operations and capital requirements.’

	Committee’s purpose The Committee is responsible for oversight and review of the Group’s risk appetite, tolerance and strategy. It monitors current and potential future risk exposures, the effectiveness of the Group’s risk management framework and adherence to the various risk policies and regulatory obligations. More information on the Risk Committee can be found in its terms of reference, which are available at www.prudentialplc.com/en/investors/governance-and- policies/board-and-committees-governance. Committee performance The operation of the Committee was reviewed as part of the annual Board performance review. No material issues were identified. The Committee discussed the output of the evaluation and agreed areas of focus. These are included in the consolidated outcomes of the 2025 Board performance review on page 177.

Membership and 2025 meeting attendance


Committee members	Member since	2025 meetings¹
Jeremy Anderson, Chair	January 2020 (Chair since May 2020)	8/8
Guido Fürer	July 2025	5/5
George Sartorel	May 2022	8/8
Mark Saunders	April 2024	8/8
Claudia Suessmuth Dyckerhoff²	January 2023	6/8
Jeanette Wong	May 2021	8/8

(1) The Committee held five scheduled meetings, plus two joint meetings with the

Audit Committee. One short meeting was held to discuss the risk aspects of the

Group Business Plan.

(2) Claudia Suessmuth Dyckerhoff was unable to attend one scheduled meeting and

one joint meeting with the Audit Committee due to conflicting commitments.

Regular attendees


– Chair of the Board – Chief Executive Officer – Chief Risk and Compliance Officer – Chief Financial Officer – Company Secretary – Chief Internal Auditor	Members of the Risk, Compliance and Security leadership team are invited to attend each meeting as appropriate.

Committee diversity


¢	Male	4
¢	Female	2


	188 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Risk Committee report continued

Dear shareholder

I am pleased to report on the Committee’s activities and areas of

focus in 2025.

We continued to focus on the volatile geopolitical and

macroeconomic landscape throughout the year, assessing and

responding to the risks to our operations and capital requirements. Of

note were our discussions on managing the impact of the US tariff

announcements in April on the Group’s operations, and the

management of market and liquidity risks against that backdrop,

which was closely monitored by the Committee.

We continued to monitor significant regulatory changes impacting

the Group and evolving expectations of governments and regulators

in our markets, especially as many of our markets continue to

experience high levels of medical cost inflation.

In our annual assessment of top risks, we tightened our focus on the

most significant risks to the Group. Key risk themes monitored by the

Committee included risks to the delivery of our strategic objectives,

and risks arising from strategic initiatives including transformation

and distribution models, as well as risks associated with technology. In

addition, we discussed the management of risks arising from

persistency, morbidity, investment performance, third parties and

outsourcing, and material joint ventures affecting the Group’s risk

profile.

We regularly invite Chief Risk Officers from our local business units to

attend our meetings and brief the Committee on the specific risks

and challenges they face in their markets. This provides useful

additional context to help the Committee identify and monitor top

risks and other material risks. In 2025, we heard from the CROs from

Hong Kong, Eastspring, Indonesia and Vietnam.

I also speak regularly with the Risk Committee Chairs in our Material

Subsidiaries, and expanded this during the course of the year to also

include the Risk Committee Chairs of the next tier of operating

subsidiaries.

We continued to collaborate with other Board committees, holding

two joint meetings with the Audit Committee. These focused on

technology risk and our two-year programme to enhance the Group’s

control environment, as a key enabler for achieving the Group’s

growth strategy. Following the successful delivery of the desired

enhancements, the focus will now be on monitoring effective

embedding within the frontline. The Committee will continue to

receive updates in 2026.

Following an assessment of the risk culture in the organisation, we

reviewed the outcomes and identified targeted actions to further

strengthen risk culture and improve consistency across the Group.

As for all financial services groups, cyber security is a key area of

focus. As well as looking at the Group’s arrangements for defending

against, identifying and responding to attacks, we also considered the

arrangements of our key third-party suppliers, seeking to learn lessons

from high profile cyber attacks on other companies. We have

strengthened our technology governance, with particular focus on

foundational technology controls, data and AI.

Key activities and other regular activities are described overleaf.

Jeremy Anderson

Chair of the Risk Committee



	Key committee activities in 2025

		March – Approval of top risks; – Business focus – Hong Kong, China and Eastspring; – Emerging risks – medical claims cost, investment risk/ ALM, competitive market dynamics; – Management of participating products; and – Annual update on Anti-Bribery & Corruption and on Anti-Money Laundering, Counter Terrorist Financing & Sanctions. May – Annual approval of documents for submission to the Hong Kong IA; – Business focus – Hong Kong and Vietnam; – Annual product portfolio review; – Material Group outsourcing arrangements; and – Technology risk management (jointly with the Audit Committee). July – GIECA methodology – risk implications connected with the transition from EEV to TEV; – Business focus – Indonesia; – Foreign ownership rules; and – Risk considerations regarding the incentive design for the CEO and other members of the GEC. October – Business focus – Hong Kong and Vietnam; – Annual Group risk framework review; – Model risk management; – Evolving regulatory capital standards; – Technology risk management, including cyber security (jointly with the Audit Committee); and – Control environment (jointly with the Audit Committee). December – Business focus – Hong Kong; – Risk modelling assumptions – annual review; – Risk appetite and limits – annual review; – Annual review of the Risk and Compliance function effectiveness and approval of the 2026 Risk and Compliance plan; – Joint venture oversight; and – Alternative assets investment process.

2026 priorities

– Further refine agendas in order to allocate more Committee time

to the most significant topics;

– Increase our focus on technology, cyber and AI risks;

– Deep dive into the new methodology for our Group Internal

Economic Capital Assessment model; and

– Deep dive into Reinsurance following the establishment of our

Bermuda-based reinsurance entity.


	189 Prudential plc Annual Report 2025

Other activities during 2025

In addition to the key activities highlighted above, the Committee

considered the following matters within its remit during the year:

Risk Management

The Committee stayed abreast of evolving internal and external

incidents and risk events throughout the year. It evaluated the

Group’s top risks and considered recommendations for the inclusion

of additional risks in this category and changes to the scope of

existing top risks. These top risks shape the Committee’s oversight

and the reporting to the Committee, and drive the focus of activities

by the Risk and Internal Audit functions.

A significant part of each meeting is dedicated to reporting by the

Group CRCO and his team. The regular CRCO report typically

highlights the Group’s exposure to and management of its principal

risks, emerging risk themes, material joint ventures impacting the

Group’s risk profile, external developments (including regulatory

changes) and material transformation initiatives. The Committee

Chair provided regular updates on Material Subsidiary risk

committees and their focus on key risks, operating landscape and

business challenges, supplemented by updates from the CRCO on

management actions.

The Risk Committee agreed the planned second line risk reviews, deep

dives, assurance reviews and read-across reviews. These were reported

to the Committee over the course of the year, in particular focusing

on participating fund management, technology risk, model risk, third-

party and outsourcing management, financial crime, sustainability

risk and product-related key risks. The Committee also commissioned

other reviews and read-across exercises as incidents and/or issues

arose throughout the year.

The strength of the Group’s capital and liquidity positions was closely

monitored by the Committee to ensure the Group remained resilient,

to safeguard the interests of stakeholders. The Committee reviewed

the results of stress and scenario testing, a key tool for identifying and

measuring risks, to ensure the Group remained in a robust financial

and operational condition when under severe stress, and that

established governance frameworks and procedures were in place for

senior management to respond to actual and potential severe stress

scenarios. Testing concluded that extreme stresses would be required

to breach the Group’s recovery activation measures.

Risk and Compliance Framework, including appetite and

tolerance, and Risk Governance

The Committee approved updates to the Group Risk Framework and

its associated policies and recommended them to the Board for

approval where necessary, as part of the annual review, to ensure

they remain fit for purpose and align with the Group Governance

Manual. The Committee also reviewed the Group Risk Appetite and

recommended risk appetite and tolerance changes to the Board for

approval. Regular reports of any breaches of the Group’s risk appetite

and mitigating actions were provided to the Committee throughout

the year.

Subsidiary and joint-venture risk governance reviews, and progress

updates on the enhancement of joint-venture oversight, were

presented to the Committee to ensure appropriate governance

arrangements are adopted.

Jointly with the Audit Committee, the Risk Committee is overseeing a

Group-wide control enhancement programme aimed at

strengthening the Group control environment and uplifting resilience

through a number of targeted workstreams, with key areas of focus

including: business controls, assurance, risk and control framework,

governance and reporting, and risk culture. Updates were provided to

a joint meeting of the Risk and Audit Committees.

The Committee remained agile and considered risk and compliance-

related findings, as well as other cultural indicators related to risk

management and tolerance identified by Internal Audit or other

functions.

Strategies and Business Plans

As part of its role in overseeing and advising the Board on future risk

exposures and strategic risks, the Committee reviewed the risk

assessment of the 2025-2028 Group Business Plan, which highlighted

key financial and non-financial risks in respect of the plan and the

achievement of the Group’s strategic objectives.

External and Regulatory Reporting

Key reports reviewed and, where necessary, recommended to the

Board for approval by the Committee before submission to the Hong

Kong Insurance Authority (IA) included:

– The Group’s Own Risk and Solvency Assessment;

– The Group’s Recovery Plan, supported by the Group Crisis

Procedure and Liquidity Risk Management Plan;

– The Group Internal Economic Capital Assessment (GIECA)

assumptions and methodology changes following transition from

EEV to TEV, and bi-annual GIECA results; and

– The FY24 Insurance Capital Standard (ICS) results and updates on

the future of ICS implementation, including potential impact on

the Group.

The Committee also received regular reports on key regulatory

compliance risks and mitigation activities across the Group’s

businesses. Updates covered material regulatory compliance risk

issues or concerns, significant regulatory developments and landscape

changes, major review findings and interventions, and key

Compliance functional activities. These matters encompassed day-to-

day business practices, conduct and customer outcomes, anti-fraud,

anti-bribery and corruption, anti-money laundering, counter-terrorist

financing, and sanctions risks. The Committee was also updated on

the key matters arising from the annual Supervisory College and other

notable regulatory interactions with the Hong Kong IA and other

relevant regulators of the Group, and tracked the Group’s progress in

delivering agreed actions.

The Committee reviewed the Group’s financial viability and

operational resilience under a range of stress scenarios.

Risk and Compliance function

The Committee evaluated the effectiveness of the Risk and

Compliance function, including its oversight of the Group's principal

risks.

Remuneration

Throughout the year, the Committee advised the Remuneration

Committee on risk management considerations associated with

executive remuneration arrangements, including the assessment of

proposed executive remuneration structures and outcomes, and the

draft Directors’ Remuneration Policy, which will be put to shareholders

for approval at the 2026 AGM.


	190 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Nomination & Governance Committee report



	‘This year, the Committee, led by the Senior Independent Director, spent significant time on a robust process for the search for a new Chair. I was delighted when the Board decided to appoint Sir Douglas Flint to succeed me after I step down at the AGM in May 2026.’

	Committee’s purpose The Committee is responsible for the oversight of Board and executive succession (unless considered by the Board), nominating candidates for appointment to the Board, oversight of Board performance and corporate governance matters. It assists the Board in retaining an appropriate balance of skills to support the strategic objectives of the Group, ensuring a formal, rigorous and transparent approach to the appointment of Directors, and maintaining an effective framework for succession planning. It also supports and advises the Board on governance arrangements.
	More information on the role and responsibilities of the Nomination & Governance Committee can be found in its terms of reference, which are available at www.prudentialplc.com/en/about-us/corporate- governance-and-corporate-actions/governance-structure/ Committee performance The operation of the Committee was reviewed as part of the annual Board performance review. No material issues were identified. The Committee discussed the output of the evaluation and agreed areas of focus. These are included in the consolidated outcomes of the 2025 Board performance review on page 177.

Membership and 2025 meeting attendance


Committee members	Member since	2025 meetings
Shriti Vadera	May 2020 (Chair since January 2021)	3/3
Jeremy Anderson	November 2022	3/3
Chua Sock Koong	May 2022	3/3
Sir Douglas Flint	March 2026	n/a
Ming Lu	May 2021	3/3
George Sartorel	May 2022	3/3

Regular attendees


– Chief Executive Officer – Chief Human Resources Officer – Company Secretary

Committee diversity


¢	Male	4
¢	Female	2


	191 Prudential plc Annual Report 2025

Dear shareholder

I am pleased to report on the key activities of the Nomination &

Governance Committee during 2025.

The Committee’s primary focus during the year has been the search

for my successor. This process was led by Jeremy Anderson, our Senior

Independent Director, and involved all Board members. I am

extremely pleased that the Board has decided to appoint Sir Douglas

Flint. I have known Sir Douglas for over 20 years and am confident

that he is ideally positioned to lead the Group through its next stage

of development and growth. He joined the Board on 4 March, and

subject to his election by shareholders, he will take over the role of

Board Chair and Chair of the Nomination & Governance Committee

at the end of the Annual General Meeting and I will step down at that

point. We are already working together closely on his induction and

transition to the role to ensure a smooth succession. More details on

the appointment process are set out below.

As I highlighted last year, a particular area of focus for the

Committee was enhancing the Board’s asset management

experience. We welcomed Guido Fürer to the Board in July, and he

also joined our Audit and Risk Committees. Guido brings a wealth of

knowledge and expertise in respect of asset-liability management,

insurance and asset management. He has completed his

comprehensive induction programme and settled extremely well into

the role.

In October, Amy Yip retired from the Board at the end of her six-year

term. On behalf of the Committee and the Board, I would like to

thank Amy for her valuable contribution to the Board during a time of

significant change.

During my time as Chair, the Board has changed significantly in order

to reflect the transformation of Prudential from a global financial

holding company to an operating company focused on the long-term

opportunities of Asia and Africa. Our Board succession plan has

focused on the skills and experience required to reflect that transition

and the continued delivery of our strategy. I am pleased with the mix

of skills and experience now represented on our Board, in particular

the deep operating experience in our key markets in Asia, and the

balance of sectoral experience across insurance, asset management,

and health. The Committee, under Sir Douglas’s leadership, will

continue to focus on ensuring that the Board has the skills and

experience appropriate for the Group’s long-term strategic goals.

While all Directors have a strong digital understanding, the

Committee will look to deepen the Board’s expertise in respect of

technology and AI.

The Committee and the Board are committed to diversity and we

achieved 45% of women on our Board in 2024, increased from

27%when I joined in 2020. While we are pleased with the diversity of

thinking of our Board members, brought about by their different

experiences, we are very aware that gender diversity has fallen below

the minimum standards required by the UK Listing Rules following the

appointment of Dr Fürer and Sir Douglas, and the retirement of Amy

Yip. The ratio will deteriorate further following my retirement in May.

I am confident that under Sir Douglas’s leadership, the Committee

and the Board will continue to prioritise diversity in Board succession

planning and that they are committed to restoring compliance with

the target of 40 per cent.

The Committee also performed its usual role in overseeing the Board

performance review, assessing Board members for election by

shareholders and overseeing governance arrangements of the Group.

The performance review concluded that good progress had been

made addressing last year’s recommendations and that the Board

and its committees continued to operate effectively, whilst

identifying areas for further enhancement

I would like to thank the Committee members for their diligence and

contribution throughout the year.

Shriti Vadera

Chair of the Nomination & Governance Committee



	Key Committee activities in 2025

		March
		– Non-executive Director succession planning and Committee membership review; – Year-end consideration of matters relating to Board composition and directors’ performance, underpinning the Committee’s recommendation for the re-election of Directors at the 2025 AGM; – Governance Report for the 2024 Annual Report; – Board and Committee performance review – discussion of output; and – Corporate Governance developments.
		November
		– Chair succession planning.
		December
		– Chair succession planning; – Board evaluation – approach; – Director induction; and – Corporate Governance developments.

2026 priorities

– Continue Board succession planning, with particular focus on

expertise in technology and AI;

– Continued focus on increasing diversity in Board composition; and

– Supporting a smooth transition of the Chair.


	192 Prudential plc Annual Report 2025


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Nomination & Governance Committee report continued



	Appointment of Chair Designate of Prudential Plc – Following a previous search for a Deputy Chair based in Hong Kong (which did not lead to an appointment), the search for potential candidates for the Chair role commenced after the 2025 AGM. – Spencer Stuart were engaged to support the search in Asia and the UK. – Following evaluation of a long-list of candidates, the SID and Chair held initial discussions with a number of potential candidates. – A selection of candidates was interviewed, first by members of the Nomination & Governance Committee, the CEO and the Chair of the Audit Committee, and then by the remaining members of the Board. – In addition to initial conversations conducted virtually, the CEO met with the short-listed candidates in person. – The Nomination & Governance Committee and the CEO discussed feedback from the interviews and agreed a final short-list. – The short-listed candidates met with the Board and presented their thoughts on the Group and its strategic opportunities and challenges, and answered questions. – A thorough reference process was conducted to support the process. – The Group’s regulator was engaged before a final decision was reached by the Board. Ensuring an effective succession process – The appointment process was led by the SID. – The SID chaired discussions in meetings of the Nomination & Governance Committee and the Board, and the Chair recused herself including from any decision-making. – Between formal meetings, the SID kept Directors informed of progress with regular updates and discussions at each stage of the search process. – He engaged the Group’s regulator during the latter stages, and after the announcement offered to meet with top investors to answer questions they had on the process.		Sir Douglas is ideally positioned to lead the next stage of Prudential’s development – Sir Douglas has extensive experience leading global financial institutions and brings deep experience across the geographic regions in which we operate, together with his decades of leadership experience in banking, insurance and asset management. – He has a wealth of established relationships in Asia and the UK and his deep knowledge of Asia and understanding of global finance is particularly important for Prudential and represented the best match to the role specification. – He also has extensive experience in international trade and investments and in innovation and development in capital markets, which are important areas for Prudential as we enter the next phase of our growth. – Sir Douglas is an experienced Chair with a long track record of leading boards, shaping strategy and forging effective relationships with CEOs. Supporting a smooth transition – Sir Douglas will receive a tailored induction programme in line with our usual approach to Non-executive Director induction, incorporating visits to key markets. – As part of his induction, as well as meeting with Management at Group and Local Business Unit level, Sir Douglas will meet with various of the Group’s advisers to get their external perspectives on the Group and will hold introductory meetings with the Company’s top investors. – As Chair-Designate, Sir Douglas will attend Board and Committee meetings in March and May and join the Board’s visit to Beijing in April. The Chair will work closely with him during this period in order to hand over the role and key stakeholder relationships.

Board composition, skills and succession

The Committee continually reviews the leadership needs of the

Group, including both Executive and Non-executive Directors. Board

succession plans are supported and informed by the results of the

annual Board performance review, individual Director evaluations and

any skills gaps identified. Ongoing succession planning helps the

Board maintain a balance in the mix of skills and experience of its

members.

The Committee reviews the size, structure and composition of the

Board and its principal committees and considers the balance of Non-

executive to Executive Directors on the Board, the overall number of

Directors and their respective skills and experience. The Chair also

considers the needs of the Board and its committees as part of the

annual Board performance review and the Committee discusses

desired skills as part of succession planning throughout the year.

Non-executive Directors bring a range of industry experience, sector

expertise and personal strengths to the Board. To support its

assessment of skills and succession planning, the Committee

maintains a skills matrix that helps map the Board's existing skills and

identify any gaps relevant to the Group’s strategic goals. The regular

and ongoing review of potential new directors by the Committee

allows for a controlled approach to the succession of new Non-

executive Directors, and for a transition period in respect of Directors

reaching the end of their tenure.

While the Committee does not consider there to be any immediate

skills gaps on the Board to address, a key area of focus for the

Committee is ensuring that the Board has the skills and experience to

continue to oversee the Group’s technology and AI strategy over the

longer-term.

During 2025, the Committee also reviewed the membership of the

Board’s principal Committees and concluded that membership was

appropriate.

Executive roles

Given the importance of executive succession planning to the

successful delivery of the Group’s strategy, the full Board discussed

succession planning for the CEO and the other GEC roles. The

approach to and methodology for CEO and GEC development and

succession planning was refreshed by the CEO and CHRO in 2024 and

is discussed with the Board on an annual basis. In 2025, the Board

discussed the development and succession plans for individual GEC

members, including the CEO, and succession and the actions being

taken to renew and strengthen the succession pipeline.

Process for appointing new Directors

The Committee assists the Board to put in place a formal, rigorous

and transparent approach to the appointment of new Directors. The

process begins with the identification of a vacancy or desired skills. A

candidate profile is prepared, reflecting the desired skills and

experience, as well as the Board’s diversity objectives, and specialist

search consultants are engaged on behalf of the Committee. The


	193 Prudential plc Annual Report 2025

Committee selects candidates for the shortlist and interviews the

Induction of Guido Fürer

Guido joined the Board on 1 July as an independent Non-

executive Director and member of the Audit and Risk

Committees. He received an extensive induction programme,

overseen by the Company Secretary and the Chair, which was

tailored to his role and background, and provided him with an

understanding of the Group’s business, strategy, performance,

operations and culture, as well as the interests of the Group’s

key stakeholders.

Guido participated in Board deep-dive sessions and had one-to-

one meetings with GEC members in order to gain a deeper

understanding of the Group’s business, the growth opportunities

in key markets, the particular challenges faced, and the

strategies being pursued. He visited the Indonesia businesses as

part of the Board’s meetings in Indonesia in July, and Singapore

(together with Jeremy Anderson) for meetings with local

management teams and top talent. He also participated in the

Board meeting in May 2025 as an observer.

Guido met with the CFO in order to better understand the drivers

of the Group’s key financial metrics as well as the Group’s

capital management framework. He also met with the Group’s

brokers for an external perspective on the shareholder base and

key issues for investors.

Given his background in investment and asset-liability management,

Guido spent time with the Eastspring management team as well as

with the Group Chief Investment Officer.

As a member of the Risk Committee, Guido met with the CRCO

who provided an overview of the Group’s risk profile, risk

management and internal control framework and key risks. He

had more detailed sessions with senior members of the Risk

team covering areas such as risk appetite limits and triggers,

capital regimes, conduct, and prevention of financial crime.

As a member of the Audit Committee, Guido met with the Chief

of Financial & Capital Reporting to learn about the Group’s

financial reporting, including key assumptions and areas of

judgment, and also with the Group’s external auditor. In

addition, he met with the Chief of Internal Audit to get further

insights on the Group’s system of internal controls, and with the

Group Director, Global Investigations who provided a briefing on

the Group’s speak out programme.

Guido received briefings on his duties as a Director under

relevant UK and Hong Kong corporate governance frameworks

and the Group’s regulatory environment. As part of this, Guido

received training on 26 June 2025 on his obligations as a

director of a Hong Kong listed company as required by Rule

3.09D of the Hong Kong Listing Rules and confirmed his

understanding of those obligations.

The majority of the induction programme was undertaken prior

to Guido joining the Board, and he participated in the Board

meeting in May as an observer. The rest of the induction was

completed within three months of his appointment. Following

the conclusion of his formal induction programme, Guido

provided the Company Secretary with feedback and the

progress of the induction was reported to the Committee.

chosen candidates, assessing them against the required skills and fit

with the Company’s culture. Other Board members also participate in

the interview process depending on the particular appointment. The

SID leads the Committee in the process of appointing a new Chair

and the Chair leads the process for the appointment of a new CEO,

involving all Non-executive Directors in the process.

Due diligence checks run alongside, which commence at an early

stage to ensure there are no undue delays to the search and

appointment process, and Prudential liaises with the relevant

regulatory authorities. The Committee is kept up to date as needed.

During the year, the Committee engaged Spencer Stuart and Egon

Zehnder to support searches for Non-executive Directors. Both firms

are also engaged by the Group for management recruitment. There

are no other connections to Prudential or to any of the Directors.

Directors’ induction, training and development

Working with the Chair, the Committee oversees the process by which

each new non-executive appointee is provided with a tailored

induction programme. The induction programme for new Non-

executive Directors covers a series of core topics, including an

overview of the Group, its key businesses and the control

environment, as well as content tailored to reflect the new Board

member’s role, their prior industry experience and any particular

needs identified during the recruitment process. For those who have

not previously held a non-executive role, the programme also includes

sessions to help the new Director transition successfully from an

executive career to a non-executive role. New Board members are also

typically assigned a longer-tenured Non-executive Director to support

them in their new role and provide advice and feedback. New

Directors usually join the Audit or Risk Committee to develop their

knowledge of the business. During 2025, the Committee oversaw the

induction for Guido Fürer.

All Directors have the opportunity to discuss their individual

development needs as part of their Director evaluations and are

encouraged to ask for specific updates during the year. At the end

of the year, suggested topics are shared with the Board for feedback.

Directors are asked to provide information on any external training or

development on a yearly basis. All Directors have the right to obtain

professional advice at Prudential’s expense.


	> A schedule of training for Board and Committee members during the year is available on page 175.

Board, Committee and Director performance reviews

The Committee oversees the performance review of the Board, its

committees and individual Directors, and considered the approach to

the internal reviews carried out in respect of performance during

2025. No material issues were identified in respect of the operation of

the Board or the principal Committees, which were included in the

Board evaluation. The findings were presented to the Board and the

Committee in March 2025 and are described on page 177.

Following evaluation, the Committee decided that each of the Directors

continued to perform effectively and was able to devote appropriate

time to their responsibilities, and that the Board and its Committees

had an appropriate combination of skills, experience and knowledge.

In support of this decision, the Committee found that the Non-executive

Directors continued to demonstrate the desired attributes and contribute

effectively to decision-making, and that they exercised sound judgement

in holding Management to account. As a result, the Committee

recommended these Directors for re-election at the 2026 AGM (excluding

the Chair, who will not stand for re-election).

NomCo report - Guido Induction photo_EDIT.jpg


	194 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Nomination & Governance Committee report continued

Board Diversity Policy

To ensure the Board benefits from a broad mix of skills and expertise,

the Committee looks for candidates whose backgrounds, experience

and skills enhance the Board’s overall effectiveness, especially in the

markets where we operate. When initiating a search, the Committee

briefs search consultants on the Board’s requirements, and

candidates are assessed against a range of criteria including sector

expertise, operational and commercial experience, knowledge of our

key markets, diversity (including diversity of thought), inclusion and

equal opportunities.

The UK Listing Rules require boards to meet and report on diversity

and gender targets. The Board’s target for female representation on

the Board is 40 per cent. Whilst we exceeded this target with 45 per

cent at the end of 2024, following the appointment of Guido Fürer in

July 2025 and the retirement of Amy Yip in October 2025, the overall

representation of women on our Board fell to 36 per cent as at 31

December 2025. The Board continues to prioritise diversity and

inclusion in Board succession planning and is committed to restoring

compliance with the target of 40 per cent set out in the UK Listing

Rules. However, given the specific markets in which the Group

operates, the pool of female candidates with the requisite experience

and expertise is more limited and the Board expects that it will take

some time to be able to restore gender diversity to the target level.

The Board also has a target (as required by the UK Listing Rules) that

at least one of its senior board positions of Chair, CEO or Senior

Independent Director should be held by a woman. As of 31 December

2025, the role of Chair was held by a woman and, in addition, three of

our five principal committees were chaired by a woman.

The UK Listing Rules require that we appoint at least one Director

from what is regarded in the UK as an ethnic minority background.

Whilst we comply with this target, we do not consider this to be the

most pertinent measure for an Asia-based group. We aim to reflect

the diversity of our markets in our Board composition and we have

comfortably exceeded this recommendation, with 6 of our 11

Directors meeting the ethnicity criteria as at 31 December 2025 (55

per cent).

The Group’s Diversity and Inclusion Policy applies at all levels of the

business and the Committee is responsible for overseeing a diverse

pipeline of talent for the Board and other senior roles, driving a

Group-wide culture where our people feel valued, are treated fairly

and are respected. In recent years, the Board as a whole has reviewed

executive succession planning.

The Board considers that the pipeline for diverse talent to serve on

the GEC is reasonable, but with continued effort needed. We met our

target of employing 35 per cent women in Group Leadership Team

roles by the end of 2023. As at 31 December 2025, the

representation of women was 38 per cent, compared to 37 per cent in

2024. Our target is to increase the representation of women on our

Group Leadership Team to 42 per cent by the end of 2027. Our Group

Leadership Team comprises the direct reports of all GEC members, all

CEOs of our life businesses and their direct reports, all CEOs of our

Eastspring businesses, and select roles that are essential in delivering

our strategy.

During 2025, we continued to shape an inclusive workplace where

every individual can thrive and reach their full potential. The

Sustainability Committee discussed key focus areas, which are to

increase the representation and visibility of women within leadership

pipelines; to create equal opportunities for growth and advancement

for all employees; to foster everyday experiences of inclusion,

belonging and wellbeing; and to empower employee networks

(PruCommunities) to amplify diverse voices and perspectives across

Prudential. A number of potential initiatives to address these priorities

and metrics were discussed for implementation in 2026, among them

strengthening gender diversity in leadership positions.

A full description of the Group’s activities on D&I throughout the

workforce, including at senior management level, can be found in the

Sustainability section on pages 98 to 150.


	195 Prudential plc Annual Report 2025

The following table sets out the information Prudential is required to disclose under UK LR 6.6.6R(10) and the information is provided as at 31

December 2025.


	Number of Board members	Percentage of the Board	Number of senior positions on the Board (CEO, SID and Chair) ²	Number in executive management ³	Percentage of executive management
Gender identity or sex¹
Men	7	64%	2	7	70%
Women	4	36%	1	3	30%
Not specified/prefer not to say	–	–	–	–
Ethnic background ¹
White British or other White (including minority-white groups)	5	45%	1	3	30%
Mixed/Multiple ethnic groups	–	–	–	–	–
Asian/Asian British	6	55%	2	7	70%
Black/African/Caribbean/Black British	–	–	–	–	–
Other ethnic group	–	–	–	–	–
Not specified/prefer not to say	–	–	–	–	–

Notes

(1) The information in this table was sourced directly from individuals concerned. Members of the Board and Executive Management were provided with the prescribed

disclosure categories and asked to complete them based on their self-identification.

(2) The CFO is not a Board position but serves as a member of the GEC.

(3) For the purposes of this disclosure, ‘executive management’ means the GEC, comprising the CEO and his direct reports.


	> More details on how the Group creates an equitable and meritocratic workplace where talent thrives can be found in the Sustainability section on page 111.

Terms of appointment

Non-executive Directors are appointed for an initial term of three

years and, subject to review by the Committee and re-election by

shareholders, it is expected that Non-executive Directors serve a

second term of three years. After six years, Non-executive Directors

may be appointed for a further year, up to a maximum of three

additional years, or more in certain limited circumstances.

Reappointment is subject to rigorous review as well as re-election by

shareholders.

In line with the UK Code, the notice of the AGM includes details on

the skills and experience of each Director seeking re-election and

specific reasons why their contribution is, and continues to be,

important to the Company’s long-term sustainable success.

The Directors’ remuneration report sets out the terms of Non-

executive Directors’ letters of appointment and the terms applicable

to the Executive Director’s contract.

Independence

All Directors have a statutory duty to exercise independent

judgement. For Non-executive Directors, the application of

independent judgement is critical to their role in providing

constructive challenge and holding management to account, while

providing strategic guidance and offering specialist advice. The

independence of Non-executive Directors is assessed as part of the

appointment process and is reviewed annually. To support the

assessment, each Non-executive Director (except the Chair) provides

an annual independence confirmation. Members of the Audit

Committee are also assessed against the independence criteria

outlined in the Sarbanes-Oxley Act.

When considering the independence of the Non-executive Directors,

the Committee and the Board took into account that both Jeremy

Anderson and Jeanette Wong serve as non-executive directors of UBS

Group AG. The Committee and the Board have determined that this

relationship does not affect the independence of those Non-executive

Directors. Based on their contributions to Board discussions to date,

the Board is confident that they can be expected to continue to

demonstrate objectivity and independence of judgement.

The Committee also took into account that Sir Douglas and Anil

Wadhwani are both members of the Monetary Authority of

Singapore Advisory Council and that Sir Douglas and Shriti Vadera

both serve as directors on the Institute of International Finance. The

Committee and the Board have determined that these relationships

do not affect the independence of Sir Douglas which was assessed on

his appointment as Chair Designate.

There are no other cross-directorships of material companies which

would affect independence.

Time commitment

Non-executive Directors are expected to devote sufficient time to

carry out their duties. The expected time commitment for Non-

executive Directors is agreed and set out in writing in their letters of

appointment. The appointment process also evaluates the

individual’s external time commitments and their impact on each

Director’s suitability for the role. The assessment takes into account

the time required to prepare for and attend Board and committee

meetings, the AGM, general projects, Board training, dinners and

other activities. Any future external appointments that could impact a

Director’s ability to meet their expected time commitment must first

be discussed with the Chair, or, in the case of the Chair, with the SID.

Should the Executive Director wish to take on any external

appointments, this would also be subject to Board consent. In line

with UK Code recommendations, the Executive Director is not

permitted to hold more than one non-executive directorship with a

FTSE 100 company or other significant appointment.

The time commitment required of the Non-executive Directors is kept

under periodic review by the Committee to align with any changes to

the meeting cycle of the Board and the principal committees.

The Committee was satisfied that all Non-executive Directors had

committed sufficient time to meet their responsibilities and

contribute effectively.

The current time expectations for Board and Committee members

are given below. The time expectations for Directors performing Chair

roles are considerably more.


	196 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Nomination & Governance Committee report continued

Number of regular scheduled meetings


Approximate time commitment
Board
7 meetings				30 days
Audit Committee
5 meetings			15 days
Risk Committee
5 meetings			8.5 days
Remuneration Committee
4 meetings		6 days
Sustainability Committee
3 meetings	5.5 days
Nomination & Governance Committee
3 meetings	5 days

The Board typically holds five meetings in person and two shorter

meetings virtually, plus two additional short virtual meetings to

consider full-year/half-year results.

In addition to five full-length meetings, the Audit Committee holds a

number of shorter virtual meetings to discuss corporate reporting and

meets jointly with the Risk Committee, usually twice annually, and

with the Sustainability Committee, at least once annually.

In addition to five full-length meetings, the Risk Committee meets

jointly with the Audit Committee, usually twice annually.

In addition to four full-length meetings, the Remuneration

Committee holds an additional virtual meeting to consider year-end

matters.

The Sustainability Committee typically holds three full-length

meetings and two shorter virtual meetings, jointly with the Audit

Committee, to consider the Sustainability Report and reporting

processes.

The Nomination & Governance Committee typically holds three

meetings but will meet as required in order to consider ongoing

appointment processes.

Conflicts of interest

Directors have a statutory duty to avoid conflicts of interest, and

Prudential has procedures in place to identify and mitigate conflicts

of interest. These processes help to ensure decisions are made in the

best interests of the Company. The Board has delegated authority to

the Committee to identify and authorise any actual or potential

conflicts of interest, referring any especially material conflicts to the

Board.

When recommending a candidate for appointment or re-election, the

Committee considers the external appointments of the individual

and, where appropriate, recommends authorisation of any conflicts to

the Board, attaching conditions to the authorisation where necessary.

Should a Director wish to take on a new external position during the

year, the Chair (or the SID in the case of the Chair) will evaluate the

proposed appointment and will refer it to the Committee (or the

Board) for authorisation if a conflict or potential conflict is identified.

The Board considers that the procedures for dealing with conflicts

of interest operate effectively.

Governance

The Committee is updated on corporate governance developments,

which in 2025 included updates on corporate reporting and changes

to the Hong Kong Corporate Governance Code and Listing Rules. The

Committee also keeps under review significant aspects of the Group’s

governance framework and governance policies, including those of

the Group’s Material Subsidiaries, and makes recommendations to

the Board when needed.

The Audit and Risk committees oversee the effectiveness of

subsidiary audit and risk governance arrangements and regularly

consider the effectiveness of the audit and risk committees of the

Material Subsidiaries, including the composition of those bodies and

the effectiveness of individual members.


	197 Prudential plc Annual Report 2025

Sustainability Committee report



	‘In our first full year, the Committee focused on staying abreast of evolving trends and developments in the environmental, social and governance landscape, implementation and expansion of our Financing the Transition framework, inclusive insurance, and our people and culture.’

	Committee’s purpose The Committee is responsible for providing leadership, direction and oversight of the Group’s sustainability strategy including environmental matters, responsible investment, social sustainability and people. The Committee also leads on workforce engagement. More information on the role and responsibilities of the Sustainability Committee can be found in its terms of reference, which are available at www.prudentialplc.com/ en/investors/governance-and-policies/board-and- committees-governance Committee performance The operation of the Committee was reviewed as part of the annual Board performance review. No material issues were identified. The Committee discussed the output of the evaluation and agreed areas of focus. These are included in the consolidated outcomes of the 2025 Board performance review on page 177.

Membership and 2025 meeting attendance


Committee members	Member since	2025 meetings¹
George Sartorel, Chair	September 2024	6/6
Arijit Basu	September 2024	6/6
Claudia Suessmuth Dyckerhoff	September 2024	6/6
Jeanette Wong	September 2024	6/6

(1) The Committee held three scheduled meetings. In addition, the Committee held

two joint meetings with the Audit Committee and one joint meeting with the

Remuneration Committee.

Regular attendees


– Chair of the Board – Chief Executive Officer – Chief Financial Officer – Chief Human Resources Officer	– Chief Sustainability Officer – Company Secretary

Committee diversity


¢	Male	2
¢	Female	2


	198 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Sustainability Committee report continued

Dear Shareholder

I am pleased to report on the first full year of the Committee’s

activities and areas of focus.

Prudential's mission is to be the most trusted partner and protector

for this generation and generations to come, by providing simple and

accessible financial and health solutions. Our strategy is to deliver

high-quality growth and strong shareholder value. Sustainability is a

key component of this strategy: it enhances our ability to foster long-

term business resilience, better support and empower our diverse

customers and employees, address emerging risks, and capitalise on

new growth opportunities in a constantly changing environment.

Our sustainability strategy is focused on three key pillars of:

developing simple and accessible health and financial protection;

financing a just and inclusive transition; and running a sustainable

and responsible business. Through our strategy, we are fostering

financial literacy and inclusion in our markets and a culture of

innovation and high performance.

The Committee provides leadership and direction on the Group’s

sustainability strategy and its implementation, monitoring progress

against the Group’s sustainability-related goals, reviewing

sustainability reporting, and overseeing the organisational culture,

employee wellbeing and engagement, as well as the Group’s

community investment programmes.

External complexity and uncertainties in the environmental, social

and governance landscape continued in 2025, characterised by

global headwinds, conflicting regional dynamics and geopolitical

instability. To help us stay abreast of significant trends and

developments, we held two workshops at the beginning of the year.

In the first, we heard external views on the global trends shaping

sustainability. In the second, we considered how those trends and

emerging risks impact on Prudential’s sustainability strategy and

reporting and we agreed the Committee’s areas of focus for the year.

In addition to monitoring the embedding of our sustainability

strategy across the Group, the key themes of our work in 2025 were

the implementation and expansion of our Financing the Transition

(FTT) framework, inclusive insurance, and our people and culture.

Following the introduction of our FTT framework in 2024, the

Committee continued to assess progress against the Group’s target

to commit $6bn of FTT portfolio investments by 2030, as well as

progress in decarbonising the portfolio. We discussed and approved

the expansion of our FTT framework to make climate adaptation and

nature-related opportunities investible alongside climate mitigation.

We also considered, with the Remuneration Committee, how best to

embed the FTT target, and other sustainability metrics, into our

Executive remuneration architecture.

2025 was also the year when we discussed and shaped our updated

Climate Transition Plan to keep pace with evolving market practices

and emerging regulatory expectations. Our Plan now includes our FTT

framework, enhanced stewardship priorities, and nature-related

considerations. We have also introduced a comprehensive

Environmental Framework, setting out our decarbonisation targets to

2030 alongside a holistic climate strategy, including the development

of inclusive insurance products.

Following on from the publication of our Inclusive Insurance

Framework in 2024, the Committee monitored progress on the

development of innovative prospective products and services that

could enable us to distribute more affordable and accessible

insurance products for underserved customers, potentially unlocking

new business opportunities. This included considering the lessons

learnt from case studies being run in a couple of our markets to test

the viability of propositions.

Another important part of our work focused on our people: we

reviewed employee engagement activities along with workforce

policies and practices, and monitored the embedding of our

organisational values. We considered the output of our annual

employee survey which monitors our culture and values, tracking

changes over time and enabling the Group to focus on areas requiring

attention.

We worked closely with other committees, holding two joint meetings

with the Audit Committee on non-financial reporting controls and

working with the Remuneration Committee on the inclusion of

Sustainability measures in long-term performance-related awards.

Additional details on our activities are provided overleaf.

George Sartorel

Chair of the Sustainability Committee


	199 Prudential plc Annual Report 2025

Regular reporting

In addition, the Committee receives regular updates from the Chief

Sustainability Officer on progress against the implementation of the

sustainability strategy and KPIs. It receives regular updates from the

Chief HR Officer on people-related initiatives and on a dashboard of

people-related metrics, covering trends in wellbeing, gender diversity

and attrition. Committee (and Board) members participate in

employee engagement activities and the Committee regularly

reflects on the feedback obtained from such engagements.

2026 priorities

– Oversee progress towards our inclusive insurance ambitions;

– Deepen our oversight of talent development and succession

planning across the Group (including to ensure a diverse talent

pipeline); and

– Continue to support the Board on monitoring culture across the

organisation.

Remuneration Committee

The report on the Remuneration Committee's activities can be found on pages 204 to 243.


	200 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Statutory and regulatory disclosures

Financial reporting

The Directors have a duty to report to shareholders on the

performance and financial position of the Group and are responsible

for preparing the financial statements which can be found on pages

244 to 340. They also prepare the supplementary information, which

is on pages 350 to 371.

Based on the audit of the financial statements and TEV basis

supplementary information, the auditor must form an independent

opinion on the performance of the Group and report this opinion to

the Company and its shareholders. You can find the auditor’s opinion

on pages 341 to 348 and pages 372 to 373.

Directors have a legal obligation to prepare financial statements that

give a true and fair view of the financial affairs of the Company and

the Group. The criteria used for the preparation of the financial

statements can be found in the Statement of Directors’

responsibilities on page 340. The Directors’ statement must also

confirm that they consider that the Annual Report and Accounts,

taken as a whole, is fair, balanced and understandable, and provides

the information necessary for shareholders to assess the Company’s

position, performance, business model and strategy.

Company law also requires the Board to approve the Strategic report

on page 151. The Strategic report provides a description of the

Group’s capital position, financing and liquidity. The risks facing the

Group’s business are discussed in the Risk review on pages 56 to 73.

Directors must also confirm that the Strategic report includes a fair

review of the development and performance of the business,

including a description of the principal risks and uncertainties. This

confirmation is in the Statement of Directors’ responsibilities on page

340.

The Directors who held office at the date of approval of this

Directors’ report confirm that, so far as they are each aware, there is

no relevant audit information of which the Company’s auditor is

unaware; and that each Director has taken all the 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.

Going concern

In line with guidance issued by the FRC in September 2014 on risk

management, internal control and related financial and business

reporting, and after making sufficient enquiries, 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 2027, being at least 12 months from the date that the

financial statements are approved. Further information is provided in

the Viability statement on page 74 and the basis of preparation

disclosure in the financial statements.

Powers of the Board

The Board may exercise all powers conferred on it by the Company’s

Articles (the Articles) and the Companies Act 2006. This includes the

power to borrow money and to mortgage or charge any of its assets

(subject to the limitations set out in the Companies Act 2006 and the

Articles) and to give a guarantee, security or indemnity in respect of a

debt or other obligation of the Company.

Rules governing the appointment of Directors

The appointment and removal of Directors is governed by the provisions

in the Articles, the UK Code, the Hong Kong Code (as appended to the

Hong Kong Listing Rules) and the Companies Act 2006.

Director indemnities

Subject to the provisions of the Companies Act 2006, the Articles

allow Directors and officers of the Company to be indemnified in

respect of liabilities incurred as a result of their office. Suitable

insurance cover is in place in case of legal action against Directors

and senior managers of companies within the Group.

Qualifying third-party indemnity provisions are also available for the

benefit of the Directors of the Company and other relevant

individuals within the Group. These indemnities were in force for 2025

and remain so.

Contracts of significance

At no time during the year did any Director hold a material interest in

any contract of significance with the Company or any subsidiary

undertaking.

Securities dealing and inside information

Prudential has adopted securities dealing rules relating to transactions

by Directors on terms no less exacting than required by Appendix C3

to the HK Listing Rules and by relevant UK regulations. Having made

specific enquiry of all Directors, Prudential confirms that the Directors

have complied with these rules throughout the period.

The Group has also adopted an Information Sharing and Securities

Dealing Policy, which includes guidance and procedures for the

identification, dissemination and escalation of inside information as

well as appropriate controls on the disclosure of such information in

line with regulatory requirements.

All staff are made aware of the policy and receive communications

reminding them of their obligations when they work on any

confidential matters. Relevant staff are notified when the Company

enters or exits a closed period.

Requirements of Listing Rule 6.6.1

Information to be included in the Annual Report and Accounts under

UK Listing Rule 6.6.1 may be found as follows:


Listing Rule	Description	Page
6.6.1 (3)	Details of long-term incentive schemes required by Listing Rule 9.3.3	218
6.6.1 (6)	Details of allotments of equity securities for cash	316
6.6.1 (9)	Contracts of significance involving a Director	200
6.6.1 (11)	Details of shareholder waiver of dividends	408
6.6.1 (12)	Details of shareholder waiver of future dividends	408

Connected transactions

There were no connected transactions during 2025 requiring

disclosure.

US regulation and legislation

As a result of its listing on the New York Stock Exchange, the

Company complies with the relevant provisions of the Sarbanes-Oxley

Act 2002 as they apply to foreign private issuers and has adopted

procedures to ensure compliance. In particular, adherence to Section

302 of the Sarbanes-Oxley Act 2002, which covers disclosure controls

and procedures, is overseen by the Disclosure Committee, which

reports to the CEO, is chaired by the CFO and comprises members of

head office management. The Disclosure Committee supports the

CEO and CFO in making certifications about the effectiveness of the

Group’s disclosure procedures.


	201 Prudential plc Annual Report 2025

Hong Kong IA GWS public disclosures

Under the GWS framework, the Group must make public disclosures

around certain risks and capital. These GWS public disclosure

requirements, as set out in the Guideline on Group Supervision (GL32)

and Insurance (Group Capital) Rules issued by the Hong Kong IA, are

met by disclosures within this Annual Report and Accounts.

Change of control

Under the agreements governing Prudential Corporation Holdings

Limited’s life insurance and fund management joint ventures with

China International Trust & Investment Corporation (CITIC), if there

is a change of control of the Company, CITIC may terminate the

agreements and either, (i) purchase the Company’s entire interest in

the joint venture or require the Company to sell its interest to a third

party designated by CITIC, or (ii) require the Company to purchase all

of CITIC’s interest in the joint venture. The price of the purchase or

sale will be the fair value of the shares to be transferred, as

determined by the auditor of the joint venture.

Customers

The five largest customers of the Group constitute in aggregate less

than 30 per cent of the total revenue from sales for each of the years

presented in this Annual Report and financial statements.


	202 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Index to principal Directors’ report disclosures

Information required to be disclosed in the Directors’ report may be found in the following sections:


Information	Section in Annual Report	Page number(s)
Disclosure of information to auditor	Statutory and regulatory disclosures	200
Directors in office during the year	Board of Directors	154 and 156-161
Board diversity	Governance report	155 and 194-195
ESG matters	Sustainability section	98
Group-wide policies, including those relating to employment practices	Sustainability section	148
Greenhouse gas emissions	Sustainability section	113-128
Charitable donations	Sustainability section	108
Political donations and expenditure	Sustainability section	112
Remuneration Committee report	Directors’ remuneration report	204-243
Directors’ interests in shares	Directors’ remuneration report	225
Agreements for compensation for loss of office or employment on takeover	Directors’ remuneration report	237
Details of qualifying third-party indemnity provisions	Governance report	200
Internal control and risk management	Strategic report and Governance report	56-73 and 179-180
Powers of Directors	Governance report	200
Rules governing appointment of Directors	Governance report	200
Significant agreements impacted by a change of control	Governance report	201
Future developments of the business of the Company	Strategic report	26-33
Post-balance sheet events	Note D3 of the notes on the Group financial statements	321
Rules governing changes to the Articles of Association	Shareholder information	406
Structure of share capital, including changes during the year and restrictions on the transfer of securities, voting rights, power to purchase own shares and significant shareholders	Shareholder information, Governance report and note C8 of the notes on the Group financial statements	316
Business review	Group overview and Strategic report	10-151
Changes in borrowings	Financial review and note C5 of the notes on the Group financial statements	310
Dividend details	Group overview and Strategic report	44
Financial instruments	Additional information	284-287
Corporate governance statement including compliance with the Code	Governance report	165-166
Fostering the Company’s business relationships	Strategic report Section 172 Statement Sustainability section	26 89-97 98
Details of how directors have regard to stakeholders	Strategic report Section 172 Statement Sustainability section	26-31 89-97 98
Monitoring culture	Governance report Section 172 Statement Sustainability section	172 89 98
Details of the Company’s approach to investing in and rewarding its workforce	Section 172 Statement Sustainability section	93 98

In addition, the risk factors set out on pages 76 to 88 and the additional unaudited financial information set out on pages 374 to 398,

are incorporated by reference into the Directors’ report.

The Directors’ report is signed on behalf of the Board of Directors by

Tom Clarkson

Company Secretary

17 March 2026


	203 Prudential plc Annual Report 2025


	204 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Directors'

remuneration report


206	Annual statement from the Chair of the Remuneration Committee
211	Remuneration at a glance
212	Summary of the Directors’ remuneration policy
214	Annual report on remuneration
229	New Directors' remuneration policy
242	Additional remuneration disclosures


	205 Prudential plc Annual Report 2025


	206 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Directors' remuneration report



	Annual statement from the Chair of the Remuneration Committee



	Committee's purpose The Committee is responsible for recommending and overseeing the implementation and operation of the remuneration policy, including approving the remuneration for the Chair, the Chief Executive Officer and other members of the Group Executive Committee.

Committee diversity


¢	Male	2
¢	Female	2

Dear shareholder

On behalf of the Board and its Remuneration Committee

(Committee), I am pleased to present the Directors’ remuneration

report for the year ended 31 December 2025. The Committee

confirms that remuneration outcomes for the year were determined in

accordance with the shareholder-approved 2023 Directors'

remuneration policy, and that no discretion was exercised to override

formulaic outcomes.

In determining remuneration outcomes for 2025, the Committee

carefully assessed Company performance against pre-determined

financial and strategic objectives and considered the experience of

shareholders and other stakeholders, including returns delivered,

workforce pay and conditions, and the sustainability of performance.


Membership and 2025 meeting attendance
Committee members	Member since	2025 meetings¹
Chua Sock Koong (Chair)	May 2021 (Chair since May 2022)	7/7
Ming Lu	May 2022	7/7
George Sartorel	May 2023	7/7
Shriti Vadera²	May 2024	6/7

Regular attendees – Chief Executive Officer – Company Secretary – Chief Human Resources Officer (CHRO) – Director, Group Reward and CHRO, UK – Remuneration Committee Adviser
(1) The Committee held four scheduled meetings. In addition, the Committee held one additional short meeting to consider year-end matters and two short meetings to consider ad hoc business. The Committee also held a working session in May to discuss an early outline of potential changes to the Directors' Remuneration Policy. (2) Shriti Vadera was unable to attend one additional meeting due to travel commitments.
This report has been prepared to comply with Schedule 8 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended), as well as the Companies Act 2006, the Listing Rules and other related regulations.

2025 Company performance in summary

As described in the Strategic report earlier in this Annual Report, our

financial performance in 2025 continued to be strong, with the delivery of

double-digit growth across our two key financial performance metrics:

– New business profit grew by 12 per cent on a constant exchange

rate (CER) basis.

– Operating free surplus generated from in-force insurance and asset

management business grew by 15 per cent to $3,059 million

reflecting the quality of new business written in recent years and

ongoing actions to improve cash generation.

We continue to be confident about achieving our 2027 ambitions.


	207 Prudential plc Annual Report 2025

Group adjusted operating profit before tax was 5 per cent higher, on

a CER basis, than in 2024.

Shareholders benefited from $678m in dividends relating to the

reporting year and the share buy-back of $1.2bn. At the same time,

the Group continued to invest in the pillars underpinning the delivery

of our strategy for the period to 2027.

The charts below illustrate the achievement of our key financial

annual objectives. The Group delivered these results while

maintaining appropriate levels of capital and operating within the

Group’s risk framework and appetite, consistent with the

Committee's approach to ensuring remuneration outcomes

appropriately reflect both performance and risk management.


Performance measures (% weighting of financial bonus targets)
Group new business profit (45%) A measure of the future profitability of the new business sold during the year and an indicator of the profitable growth of the Group.		Group net operating free surplus generated¹ (20%) A measure of the internal surplus generation of our businesses.
Group performance ($m)		Group performance ($m)


Performance measures (% weighting of financial bonus targets)
Group adjusted operating profit² (20%) Prudential’s primary measure of profitability and a key driver of shareholder value.		Group cash flow (AER)³ (15%) Cash flows across the Group reflect our aim of achieving a balance between ensuring sufficient net remittances from business units to cover the dividend and responsibly managing corporate costs to allow for reinvestment in profitable opportunities.
Group performance ($m)		Group performance ($m)

Notes

(1) For insurance operations, operating free surplus generated represents amounts maturing from the in-force business during the period less investment in new business and

excludes non-operating items. For asset management businesses, it equates to post-tax operating profit for the year.

(2) In this report, ’adjusted operating profit’ refers to adjusted IFRS operating profit based on longer-term investment returns.

(3) Group cash flow includes business unit remittances and corporate costs.

Stakeholders’ experience

In reaching its decisions for 2025, the Committee considered the experience of the Group’s stakeholders during the year, as set out below. More

details about how we have listened to our stakeholders and about what the Group delivered in 2025 can be found in the Sustainability report

section of the Strategic report.


	208 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Directors' remuneration report continued



	Customers		Suppliers

– The roll out of a consistent Customer Engagement Platform to automate and personalise customer engagement continues and is now active across ten business units. This, together with our Customer Promise, helps in always putting our customers at the heart of everything we do. – Our commitment to improve customer experience was reflected in a strong customer retention rate of 88 per cent. – We have seen continuous improvement in our rNPS results. In 2025, six business units ranked at the top quartile and one business unit moved up one quartile.		– Prudential is reducing the Group’s carbon footprint and strengthening our supply chain by embedding clear environmental and social expectations into how we do business. – Our Group Third Party Supplier and Outsourcing (GTPSO) Policy sets out the standards for procurement due diligence and third-party risk management, and ensures a consistent approach to supply chain management, covering due diligence, supplier selection, contractual obligations, and ongoing monitoring. – Our Responsible Supplier Guidelines, embedded within the GTPSO, reinforce our commitment to eradicating slavery, human trafficking, child labour, and any form of human rights abuse from our operations and supply chain.
	Regulators & Government		Society

– Prudential maintained close, day-to-day engagement with its Group supervisor, the Hong Kong Insurance Authority. The Group’s Board and senior management members also participated in the annual Supervisory College, which was also attended by Prudential’s principal regulators from key markets. – Prudential supported policy inputs to the Malaysian ASEAN Chairmanship, including on data, inclusive insurance, and climate and health. – Prudential continued its active engagement with the International Association of Insurance Supervisors (IAIS) and key global industry bodies, contributing to policy discussions on macroprudential supervision, systemic risk, climate-related aspects, protection gaps, artificial intelligence (AI) governance and Insurance Capital Standard. Through participation in IAIS-led events, Prudential helped shape emerging international standard setting developments.		– Prudence Foundation continued to invest in our communities during 2025. Highlights included: – Through community investment efforts, we have now helped to educate over 3.9 million students on financial literacy through our flagship programme, Cha-Ching. Levela, a digital financial literacy programme for young adults, was developed and will be piloted in six markets. – The Climate and Health Resilience Fund supported climate and health projects led by business units across 16 of our markets in Asia and Africa. One project is the installation of institutional water purification systems and domestic filters in Uganda, providing reliable access to safe drinking water, preventing thousands of children being unable to attend school due to disease.


	Climate change initiatives

Highlights included:
– The Prudence Foundation's continued partnership with Climate Resilience for All (CRA) in support of the Women’s Climate Shock Insurance and Livelihoods Initiative tackles climate impacts on health in India with early warnings, risk awareness communications and financial inclusion. It expanded its reach in 2025 from 50,000 to 225,000 women, protecting them against extreme heat.		– Healthy Harvest is a two‑year initiative launched by Prudence Foundation with support from the SG Eco Fund to address the health impacts of extreme heat in Singapore by promoting sustainable food‑growing and healthier lifestyles. Established in 2025, the community edible gardens bring together seniors, youth and persons with disabilities to grow fresh produce, build social connections and adopt sustainable habits.


	209 Prudential plc Annual Report 2025

Remuneration decisions and outcomes for 2025

The Committee determined the remuneration outcomes after

considering performance against pre-determined financial and non-

financial measures, shareholder returns, wider stakeholder experience,

and the individual performance of Mr Wadhwani.

As disclosed in the Committee's previous report, the Company agreed

to replace remuneration forfeited by Mr Wadhwani as a consequence

of him leaving his former employer. A number of these replacement

awards vested during 2025 and were exercised by Mr Wadhwani, with

a portion of the proceeds retained to purchase Prudential plc shares.

Further details are disclosed in the Recruitment arrangements section.

2025 Annual Incentive Plan (AIP)

Our performance against the adjusted stretch financial targets led to

a formulaic outcome of 78.6 per cent of maximum on the financial

scorecard. The Committee received confirmation from the Risk

Committee that the capital underpin had been met and that there

were no risk considerations which would suggest a departure from the

formulaic outcome. The Committee considered whether the formulaic

outcome reflected overall Company and individual performance and

concluded that it was appropriate. Accordingly, no upward or

downward discretion was applied. Taking into account the personal

performance of Mr Wadhwani, this led to a bonus outcome of 82 per

cent of his maximum opportunity.

Further details can be found in the Annual bonus outcomes for 2025

section.

2023 PLTIP

With respect to the 2023 Prudential Long Term Incentive Plan

(‘PLTIP’), the Group has shown strong performance against its return

on embedded value (RoEV) targets and against the business integrity

scorecard targets. The RoEV target for the final year of assessment

was adjusted to account for the move to Traditional Embedded Value

(TEV) reporting effective 1 January 2025. Further details are outlined

on page 218. However, the portion of the awards related to

Prudential’s total shareholder return (TSR) lapsed as TSR performance

was ranked below the median of the peer group. On this basis, the

Committee determined that 55.09 per cent of the PLTIP awards

made to Executive Directors in 2023 would vest. These awards are

subject to a two-year holding period.

Having reviewed the share price at which awards were made

(HKD 112.13) and the average share price for the final quarter of

2025 (HKD 110.34), the Committee concluded that no windfall gains

had occurred, as the share price at vesting was broadly consistent

with the share price at grant.

Further details can be found in the Prudential Long Term Incentive

Plan section.

The Committee carefully considered the formulaic outcomes for both

the AIP and PLTIP in the context of the Group's financial

performance and stakeholder experience as set out earlier in this

statement, as well as share price movement, and determined that

these were appropriate. As such, no discretion was applied. The

Committee also reviewed whether any malus or clawback triggers had

arisen and confirmed none were identified during 2025. Overall, the

Committee is satisfied that remuneration outcomes for 2025

appropriately reflect Company performance, shareholder experience,

and the operation of the Company's remuneration framework.

Remuneration for 2026

Directors' remuneration policy renewal

The Committee reviewed the Director's remuneration policy (Policy)

during 2025, ahead of its planned renewal at the 2026 AGM. It

established that the Policy must equip the Company:

– To reinforce the alignment of the Chief Executive Officer's (CEO's)

remuneration with investors' performance and governance

expectations while ensuring consistency with the Company's risk

framework and appetite;

– To establish a structure capable of attracting, motivating and

retaining a best-in-class CEO, recruited either internally or externally

from leading competitors in Asia; and

– To deliver remuneration over an appropriate timeframe in order to

be competitive with regional peers.

With these principles in mind, the Committee reviewed the current

Policy against the pay practices of our executive pay peer group,

comprising Asia-focused insurers and financial services firms with

significant operations in Asia, which showed a greater emphasis on

cash. The Committee considered whether a fundamental shift in the

Policy would be appropriate. After careful evaluation, the Committee

proposes to retain the core structure of the existing Policy with the

following key changes:

– Base salary - the Committee proposes to widen the circumstances in

which it might increase the annual salary for Executive Directors above

the general workforce increase. The change would allow the Committee

to use its judgement, in light of all relevant circumstances, to ensure the

overall remuneration package remains competitive.

– PLTIP - for 2026, the CEO’s PLTIP award would be reduced to 375

per cent of salary (from 425 per cent of salary in 2025).

– AIP - The proposed maximum AIP opportunity for Executive

Directors would increase from 200 per cent of salary to 250 per

cent of salary from 2026. The proposed increase reflects the

Committee's assessment of market practice among relevant

regional peers and is balanced by a reduction in the CEO's

maximum LTIP opportunity. The AIP would continue to operate

with robust performance conditions. Additionally, up to 40 per cent

of AIP would continue to be deferred into shares until the share

ownership guideline has been met, otherwise paid immediately in

cash. The Committee considers that it has sufficient powers under

the current and proposed Policy, and existing plan rules, to effect

the recovery of cash bonus payments if required.

– Benefits - it is proposed that Executive Directors be eligible for

modest gifts or awards on customary occasions, consistent with

those offered to the wider workforce in the same location (eg long

service awards).

– NED fees - In light of the Financial Reporting Council's updated

guidance, in late 2025, on the application of the UK Corporate

Governance Code 2024, the Committee has included a facilitating

provision in the Policy to permit a portion of fees to be delivered in

shares without performance conditions. While there is currently no

intention to deliver fees in shares, this provision would provide the

Board/Committee with appropriate flexibility should it be

considered necessary in light of future developments, including

changes in market practice.

During late 2025 and early 2026, I engaged with many of our major

shareholders as well as the organisations that represent and advise

them. I was pleased to meet and hear directly from so many of the

Group’s investors, and that there was broad support for the proposed

changes in the Policy for 2026. Many shareholders considered the

Policy proposals to be a proportionate step towards alignment with

market practice among our Asian peers. Shareholders were also

supportive of the Committee’s intention to retain a number of the

features of the 2023 Policy to reflect the emphasis on pay-for-

performance and to maintain strong alignment between

management and shareholders. In particular, shareholders supported

the continued delivery of PLTIP awards entirely in performance

shares, post-vesting holding periods on PLTIP awards, and the

operation of share ownership guidelines, both during and after service

as an Executive Director.


	210 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Directors' remuneration report continued

The Committee believes that the proposed remuneration Policy for

2026 maintains strong alignment between executive remuneration

and Company performance, while ensuring the Company remains

appropriately positioned to attract, motivate and retain high-calibre

leadership in a competitive regional market. The Committee will

continue to use careful judgement in implementing the Policy.

On behalf of the Committee, I would like to thank shareholders and

advisory bodies for their engagement.

2026 performance measures

We continue to make strong progress against the strategic priorities

communicated in August 2023. We remain confident we can achieve

our 2027 targets, namely a compounded annual growth rate for new

business profit (NBP) of 15 to 20 per cent and operating free surplus

generation (OFSG) from in-force insurance and asset management

businesses of $4.4 billion, both measured from a 2022 base.

Given the Group is mid-way through its strategic cycle, the Committee

determined that maintaining consistent AIP financial performance

measures and weights provides continuity and ensures management

remains focused on delivering the strategic objectives.

As the 2026 PLTIP performance period extends beyond our 2027

strategic horizon, the Committee adopted several adjustments to

align the measures for 2026 PLTIP awards with the Company’s long-

term priorities:

– RoEV will be reintroduced with a 15 per cent weight,

complementing other growth targets, focusing management on

the need for efficient allocation of capital. This change also

responds to feedback from a number of investors.

– To accommodate this change, the weight of TSR will be reduced

from 45 per cent to 40 per cent and the Diversity and Conduct

measures (each with a 5 per cent weight) will be removed from the

business integrity scorecard.

– In reaching this decision, the Committee was mindful that TSR

remains the largest element of the PLTIP; consideration would be

given each year to the extent to which diversity targets should be

among the goals established as part of the personal element of the

CEO's bonus; and that the Risk Committee will continue to assess

conduct and risk matters and provide formal input to the

Committee, including recommending adjustments to incentive

outcomes where appropriate.

– Financing the Transition (FTT) will replace Weighted Average

Carbon Intensity (WACI) as the primary climate measure, with

WACI retained as an underpin. FTT and WACI are intrinsically

linked, with FTT being a key activity to support our medium- to

long-term portfolio decarbonisation goals (for which WACI is the

selected metric). The FTT target will be aligned with our long term

2030 commitment.

– The Gross OFSG, NBP, and Group-Wide Supervision (GWS) and

Group Internal Economic Capital Assessment (GIECA) capital

generation measures remain unchanged, reflecting their continued

importance as core indicators of financial performance and value

creation.

TSR Peer Group - The Committee intended that the TSR peer group

for 2026 PLTIP awards would remain unchanged from that used for

2025 grants. However, Hang Seng Bank was privatised and was de-

listed in January 2026. The Committee decided to not replace Hang

Seng with another constituent for 2026 PLTIP awards.

Remuneration arrangements for the CEO

The Committee regularly reviews the remuneration packages of the

CEO and other senior executives to ensure they are adequate to

attract, motivate and retain the high-calibre talent required to deliver

our purpose and strategy. The Committee concluded that a 3 per cent

increase in Mr Wadhwani’s base salary was appropriate, recognising

the time elapsed since his current base salary was last set in 2022,

and his strong leadership and performance since joining Prudential on

25 February 2023. This compares to the 2026 workforce salary

increase budget of 4.0 per cent, reflecting the Committee's

commitment to maintaining appropriate alignment between

executive and workforce remuneration. Mr Wadhwani’s incentive

opportunities for 2026 are as described above.

Mr Wadhwani’s role has a share ownership guideline of 400 per cent

of salary to be achieved by 25 February 2028. His beneficial interest

in Prudential plc shares as at 31 December 2025 was 403 per cent of

salary, exceeding the guideline more than two years ahead of

schedule, demonstrating strong alignment with shareholder interests.

Committee performance

The operation of the Committee was reviewed as part of the annual

Board performance review. No material issues were identified. The

Committee discussed the output of the evaluation and agreed areas

of focus. These are included in the consolidated outcomes of the

2025 Board performance review on page 177.

Committee changes

I would like to thank Shriti Vadera for her contribution and input to

the Committee's deliberations over the past six years, most recently

as a Committee member and previously as a meeting attendee.

I would also like to thank the other Committee members for their

work over the past year in ensuring that the Company's remuneration

framework supports its strategy and remains aligned with shareholder

interests.

The Committee believes this report provides a transparent account of

how the Directors' remuneration policy has been implemented during

2025 and how the proposed policy and remuneration arrangements

for 2026 continue to support the Company's long-term strategy.

Chua Sock Koong

Chair of the Remuneration Committee

17 March 2026


	211 Prudential plc Annual Report 2025

Remuneration at a glance

Elements of Executive Director remuneration

The charts below show the breakdown of the Chief Executive Officer’s remuneration¹ under the current Policy (a maximum AIP of 200 per cent

of salary and full vesting of a PLTIP award of 425 per cent of salary) and the proposed 2026 Policy (a maximum AIP of 250 per cent and full

vesting of PLTIP at 375 per cent. A significant portion of remuneration remains performance-based, long-term and at risk. Performance-related

remuneration is subject to malus (forfeiture or reduction before delivery) and clawback (recovery provisions for a period after delivery). The malus

and clawback provisions are detailed in the Directors' remuneration policy.

(1) Excluding the value of any benefits provided during the year


Current structure		Proposed structure

Principles underlying the Policy


	Proportionality – No incentives are paid for performance below threshold. Financial targets are set against the Board-approved plan. – Under the PLTIP, 20 per cent of each portion of the award will vest for achieving threshold performance. – The Committee approves termination arrangements of Executive Directors to ensure that there is no reward for failure. Simplicity – The structure comprises fixed remuneration, annual and long- term incentives only. – There is a demonstrable link between performance and reward outcomes. Alignment to culture – Chief Executive Officer's pension benefit of 13 per cent of salary is aligned with that of the wider workforce. – Advice from the Risk Committee is taken to ensure that risk management, culture and conduct are appropriately reflected in the operation of Executive Directors’ remuneration. – The vesting period attached to the PLTIP reflects the time horizon of the business plan. – The additional post-vesting holding period and share ownership guidelines align Executive Director interests with those of other stakeholders.		Predictability – This report details the connection between the performance of the business and the remuneration outcomes for the Chief Executive Officer under the applicable incentive schemes. Clarity – The Committee consults regularly with the Company’s largest shareholders on executive pay proposals before they are implemented. – Details of Executive Director pay proposals are clearly set out in the Annual report on remuneration. Risk – The Risk Committee advises the Committee on risk management considerations to inform remuneration decisions. – The Committee has flexibility to adjust incentive outcomes and to apply malus and clawback to awards and incentive payments. – The holding period on PLTIP awards extends the award time horizon to five years. – In-employment share ownership guidelines provide a strong connection to the sustained success of the Company. Post- employment requirements continue the alignment with Company success and stakeholder interests.


	212 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Remuneration at a glance continued

How the current Directors’ remuneration Policy operates

The remuneration policy was approved by shareholders at our AGM on 25 May 2023. The policy is summarised below for convenience. The full

and definitive policy can be found on our website at https://www.prudentialplc.com/content/dam/prudential-plc/investor/governance-and-

policies/policies-and-statements/directors-remuneration-policy-2022.pdf.


Key elements of remuneration			2026	2027	2028	2029	2030	Key features of operation of the policy

	Fixed pay	Salary and benefits						– Salaries reviewed annually with increases generally no greater than those of the workforce unless there is a change in role or responsibility. Benefits reflect individual circumstances and are competitive in the local market. – Pension contributions and/or a cash supplement up to 13% of salary. – Executive Directors based in Hong Kong receive this in addition to contributions into the Hong Kong Mandatory Provident Fund.
		Pension
	Short-term variable pay	Cash bonus						– The maximum opportunity is up to 200 per cent of salary. – 40 per cent of bonus is deferred for three years. Deferral will be in cash where share ownership guidelines have been met, or otherwise in shares. – Awards are subject to the achievement of financial and personal objectives, with a Pillar I capital underpin aligned with the Hong Kong Insurance Authority capital framework. – Award is subject to malus and clawback provisions.
	Short-term variable pay	Deferred bonus
	Long-term variable pay Three-year performance assessment	Prudential Long Term Incentive Plan (PLTIP)		Performance period		Holding period		– Maximum award under the PLTIP is 550 per cent of salary although regular awards are below this level. – Awards are subject to a three-year vesting period from date of grant and a further two-year holding period from the end of the vesting period. – Awards are subject to relative TSR and financial performance measures, as well as a business integrity scorecard. – Awards are subject to malus and clawback provisions.
	Share ownership guidelines							– Chief Executive Officer guidelines are 400 per cent of salary. – Executives generally have five years to build this level of ownership. – Executives leaving the Board are required to hold the lower of their actual shareholding at the date they leave the Board or their in-employment share ownership guideline for a period of two years.

Summary of proposed major Policy changes for Executive Directors¹


Remuneration element		Proposed changes	Rationale

	Fixed pay	– Scope to increase the annual salary for Executive Directors above the increases for other employees if the Committee believes it appropriate, based on factors considered during the salary review.	– This allows the Committee to apply its judgement to ensure the overall package remains competitive. Should the Committee consider using this power, this would usually be discussed with major investors before a decision was made.


	Short-term variable pay	– The maximum opportunity is 250 per cent of salary for Executive Directors. Annual awards are disclosed in the relevant Annual report on remuneration.	– This change is part of rebalancing the usual total maximum incentive opportunity between long-term incentive and annual bonus.
	Short-term variable pay	– AIP awards are to be paid in cash if an Executive Director meets their share ownership guideline at the end of the financial year for which the bonus is paid. If not, they will normally be required to defer in shares the lower of 40 per cent of their bonus, or the portion of bonus sufficient to meet the share ownership guideline.	– This change, together with the other recommended changes, is designed to ensure the overall remuneration package is competitive. Our peers generally deliver a greater proportion of total remuneration in cash and over a much shorter timeframe.


	Long-term variable pay	– The statement that 'Annual awards are usually significantly below the maximum 550 per cent of salary' has been removed from the proposed Policy. The Committee would seek to consult with major shareholders before making any increase to current award levels.	– The PLTIP maximum is unchanged, with the proposed 2026 award reduced by 50 per cent of salary to 375 per cent. – The annual PLTIP award level will continue to be disclosed in the Annual report on remuneration.

Notes

(1) Further details on all proposed Policy changes are provided in the 'New Directors' remuneration policy' section.


	213 Prudential plc Annual Report 2025

What performance means for Executive Director remuneration in 2025

At Prudential, remuneration packages are designed to ensure strong alignment between pay and performance. In 2025, the Group’s

performance was appropriately reflected in the incentive outcomes as set out below, and as described in greater detail in the Annual report on

remuneration.

Mr Wadhwani's 2025 AIP outcome


Measure	Weighting	Outturn	% achieved


Group new business profit	36%	21.3%
Group adjusted operating profit	16%	16.0%
Group net operating free surplus generated	16%	16.0%
Group cash flow	12%	9.6%
Total Group financial measures	80%	62.9%
Personal objectives	20%	19.0%
Total bonus	100%	81.9%

2023 PLTIP outcome


Measure	Weighting	Outturn	% achieved


Three-year relative TSR	35%	–%
Return on embedded value	40%	33.0%
Business integrity scorecard	25%	22.1%
Total PLTIP	100%	55.1%


	214 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration

Role and responsibilities

The role and responsibilities of the Committee are set out in its terms of reference, which are reviewed by the Committee and approved by the

Board on a periodic basis, and can be found on the Company’s website at https://www.prudentialplc.com/content/dam/prudential-plc/investor/

governance-and-policies/board-and-committees-governance/egroup-remuneration-committee-tors-2-jan-2025.pdf.coredownload.inline.pdf. The

Committee’s role is to assist the Board in meeting its responsibilities regarding the determination, implementation and operation of the overall

remuneration policy for the Group, including the remuneration of the Chair of the Board, Chief Executive Officer, Group Executive Committee

members, the Company Secretary and the Chief Internal Auditor, as well as overseeing the remuneration arrangements of other staff within its

purview. In 2025, the Committee met seven times and also dealt with a number of matters by email circulation.

The principal responsibilities of the Committee set out in its terms of reference and discharged during 2025 were:

– Approving the operation of performance-related pay schemes operated for the Chief Executive Officer, other members of the Group Executive

Committee, the Company Secretary and Chief Internal Auditor, and determining the targets and individual payouts under such schemes;

– Consulting with shareholders and the principal advisory bodies on the proposed Directors' Remuneration Policy and decisions taken in respect

of the Chief Executive Officer’s remuneration arrangements for 2026 (as discussed in the Annual statement from the Chair of the

Remuneration Committee);

– Reviewing the operation and awards made under all share plans requiring approval by the Board and/or the Company’s shareholders;

– Monitoring the compliance of the Chair, Chief Executive Officer, other members of the Group Executive Committee, and non-executive

Directors with share ownership guidelines;

– Reviewing and approving individual packages for the Chief Executive Officer and other members of the Group Executive Committee including

for any new hires and departures and the fees of the Chair. Reviewing workforce remuneration practices and related policies across the Group

when setting the remuneration policy for the Executive Director, as well as the alignment of incentives and awards with culture;

– Monitoring the remuneration and risk management implications of remuneration of senior executives across the Group and other selected

roles; and

– Overseeing the implementation of the Group remuneration policy for those roles within scope of the specific arrangements referred to in the

Hong Kong Insurance Authority's (HKIA) Group-Wide Supervision (GWS) Framework.

The Chief Executive Officer attends meetings by invitation. The Committee also had the benefit of advice from the:

– Chief Risk and Compliance Officer;

– Chief Financial Officer;

– Chief Human Resources Officer; and

– Director, Group Reward and CHRO, UK.

Individuals are not present when their own remuneration is discussed and the Committee is always careful to manage potential conflicts of

interest when receiving views from the Chief Executive Officer or senior management about executive remuneration proposals.

During 2025 WTW was the independent remuneration adviser to the Committee, having been appointed by the Committee following a

competitive tender process in 2024. WTW is a member of the Remuneration Consultants’ Group and voluntarily operates under its code of

conduct when providing advice on executive remuneration in the UK. In addition to the guidance provided at the formal meetings of the

Committee, the engagement partners regularly advise the Chair of the Committee directly between meetings. The Committee is comfortable

that the WTW engagement partners and team providing remuneration advice to the Committee do not have connections with Prudential that

may impair their independence and objectivity.

The total fees paid to WTW for the provision of independent advice to the Committee in 2025 were £186,010, charged on a fixed fee as well as

a time and materials basis. WTW provided Prudential management with remuneration market data in respect of the wider workforce as well as

actuarial consulting and technology services, which were rendered by entirely separate teams within WTW.

Management also received external advice and data from a number of other providers, including legal counsel. This advice, and these services,

are not considered to be material.

The operation of the Committee was reviewed as part of the annual Board performance review. No material issues were identified. The

Committee discussed the output of the evaluation and agreed areas of focus. These are included in the consolidated outcomes of the 2025

Board performance review on page 177.


	215 Prudential plc Annual Report 2025

Table of Executive Director total remuneration (the ‘single figure’) – audited information


$000s	salary	taxable benefits*	total bonus†	PLTIP releases‡	pension benefits§	other remuneration¹	Total fixed remuneration^~	Total variable remuneration^~	Total remuneration the ‘single figure’^
Anil Wadhwani (2025)	1,575	635	2,580	3,581	207	–	2,417	6,161	8,578
Anil Wadhwani (2024)	1,574	503	2,801	–	207	1,439	2,284	4,240	6,524

*Benefits include the cost of providing the use of a car and driver, medical insurance, and expatriate benefits. Benefits of significant value include housing costs ($405,000),

which is in line with Asia practice.

†The total value of the bonus, comprising both the 60 per cent delivered in cash and 40 per cent bonus deferred for three years. Given that Mr Wadhwani has met his share

ownership guideline, the 2025 bonus will be deferred in cash. The deferred part of the bonus is subject to malus and clawback provisions in accordance with the malus and

clawback policies, but no further performance conditions.

‡ The estimated value of the 2025 PLTIP awards vesting for Mr Wadhwani has been calculated based on the average share price over the last three months of 2025

(HKD110.34) and includes the accumulated dividends delivered in the form of shares. The Committee’s approach to determining the level of vesting for this award is set

out in the ‘Remuneration in respect of performance periods ending in 2025’ section. The actual value of vesting PLTIP awards, based on the share price on the date awards

vest, will be shown in the 2026 report. The estimated value per share of the 2023 LTIP awards is 1.6 per cent lower than the value per share at grant. No adjustment to

vesting levels has been proposed as a result of the share price depreciation.

§Pension benefits include contributions into defined contribution schemes as outlined in the Pension benefit entitlement section.

~Total fixed remuneration includes salary, taxable benefits and pension benefits. Total variable remuneration includes total bonus, PLTIP releases (where applicable), and

variable remuneration elements of Mr Wadhwani's buyout.

^Each remuneration element is rounded to the nearest $1,000 and totals are the sum of these rounded figures. Total 2025 remuneration has been converted to US dollars

using the exchange rate of 7.7960 for HKD and 0.7581 for GBP. Exchange rate fluctuations will, therefore, impact the reported value. Exchange rates used for 2024

reporting were 7.8030 for HKD and 0.7824 for GBP. The 31 per cent year-on-year increase in Mr Wadhwani’s remuneration reflects the vesting in 2025 of his first PLTIP

award and that an element of his replacement award that vested in 2024 was included in the 2023 single figure in line with the regulations. Had that element been

included in the restated 2024 single figure the increase would have been 19 per cent.

Note

(1) 'Other remuneration’ for 2024 consists of the value of a replacement award made in relation to remuneration forfeited by Mr Wadhwani as a consequence of leaving his

former employer, Manulife, and joining Prudential. In line with the regulations, this has been recalculated using the actual share price at vesting (HKD84.00) and actual

performance outcomes (141%) and includes the accumulated dividends. Further details can be found in the Recruitment arrangements section later in this report.

Remuneration in respect of performance in 2025 - audited information

Base salary

After due deliberation and following consultation with shareholders, the Committee considered that there should be no increase to the Chief

Executive Officer’s salary for 2025. Mr Wadhwani’s salary, therefore, remains as it was at his appointment. The average increase for the wider

workforce was 5.2 per cent.


Executive Director	2025 salary (local currency) from 1 January 2025	2025 salary (USD) from 1 January 2025¹
Anil Wadhwani	HKD 12,281,000	$1,575,000

Note

(1) 2025 salary converted to US dollars using an exchange rate of 7.7960 for HKD and rounded to the nearest $1,000.

Pension benefit entitlements

Pension benefit arrangements for 2025 are set out in the table below. The employer pension contribution available to the wider workforce is 13

per cent of salary.


Executive Director	2025 pension benefit	Life assurance provision
Anil Wadhwani	Pension supplement in lieu of pension of 13 per cent of salary and a HKD18,000 employer payment to the Hong Kong Mandatory Provident Fund.	Eight times salary.

Annual bonus outcomes for 2025

Target setting

For 2025, financial AIP metrics comprised 80 per cent of the bonus opportunity for the Chief Executive Officer. The financial element of the

Chief Executive Officer’s 2025 bonus was determined by the achievement of four Group measures, namely TEV new business profit, adjusted

operating profit, net operating free surplus generation, and cash flow, which are aligned to the Group’s growth and cash generation focus. The

performance ranges were based on the annual business plans approved by the Board and set in line with the trajectory for the Group's 2027

strategic goals, in the context of anticipated market conditions.

Personal objectives comprised 20 per cent of the bonus opportunity for the Chief Executive Officer. These objectives were established at the start

of the year and reflect the Group’s strategic priorities as set by the Board for 2025.

AIP payments are subject to meeting minimum capital thresholds which are aligned to the Group Risk Framework and appetite (as adjusted for

any Risk Committee approved counter-cyclical buffers) ensuring that incentive outcomes reflect both financial performance and appropriate risk

management, as described in the Chief Risk and Compliance Officer’s report.

The Committee seeks advice from the Risk Committee on risk management considerations to inform decisions about remuneration architecture

and performance measures to ensure that risk management, culture and conduct are appropriately reflected in the design and operation of the

Executive Director's remuneration.


	216 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

Performance assessment

The Committee determines the bonus outcome based on pre-determined measures and considers whether the formulaic outcome reflects

overall Company and individual performance.

The Committee considered a report from the Chief Risk and Compliance Officer, which was approved by the Risk Committee. This report

confirmed that the 2025 results were achieved within the Group’s and businesses’ risk framework and appetite. The Chief Risk and Compliance

Officer also considered the effectiveness of risk management and internal controls, and specific actions taken to mitigate risks, particularly where

these may be at the expense of profits or sales. The report also confirmed that the Group met minimum capital thresholds, which were aligned to

the Group Risk Framework and appetites. The Committee took into account this advice when determining the AIP outcome for the Chief

Executive Officer.

The table below illustrates the weighting of performance measures for 2025 and the level of achievement under the AIP:


Executive Director	Weighting of measures (% of total bonus opportunity)		Performance against measures (% of max for each component)
Executive Director	Group financial measures	Personal objectives	Group financial measures	Personal objectives	2025 AIP outcome (% of max opportunity)	Maximum 2025 AIP (% of salary)	Actual 2025 AIP (% of salary)	2025 salary	2025 AIP award²
Anil Wadhwani¹	80%	20%	78.6%	95%	81.88%	200%	163.77%	1,575,295	2,579,793

Notes

(1) Values converted to US dollars using an exchange rate of 7.7960 for HKD.

(2) Bonus awards are subject to 40 per cent deferral for three years. As the share ownership guideline has been met, the deferral will be made in cash.

The Committee determined the 2025 AIP award on the basis of the performance of the Group and of the Chief Executive Officer. In making

these decisions, it reflected on factors including:

– The overall contribution of the executive;

– Behavioural, conduct and risk management considerations; and

– Wider experience of stakeholders and overall corporate performance.

The AIP outcome was considered appropriate in the context of the above, and as such, no discretion was exercised.

Financial performance

The level of performance required for threshold, target and maximum payment against the Group’s 2025 AIP financial measures and the results

achieved are set out below:


2025 AIP measure	Weighting	Threshold ($m)	Target ($m)	Stretch target ($m)	Achievement ($m)
Group TEV new business profit	45%	2,571	2,856	2,999	2,782
Group adjusted operating profit	20%	2,836	3,151	3,309	3,306
Group net operating free surplus generated	20%	1,358	1,509	1,585	1,675
Group cash flow	15%	1,600	1,829	2,058	1,829

Following the adoption of TEV reporting with effect from 1 January 2025, the Committee reviewed its long-established practice of adjusting

financial targets to reflect prevailing interest rate and foreign exchange rate assumptions applicable for the full year reporting. Under TEV

reporting, interest rate volatility in both NBP and OFSG is reduced as a result of the use of long-term economic assumptions. As such, after careful

consideration, the Committee felt it was appropriate to: discontinue adjustments for interest rate volatility on performance measures directly

affected by the adoption of TEV reporting, specifically, the NBP and OFSG metrics; continue adjusting the IFRS metric for economic movements

(recognising that underlying market volatility will persist and cannot practically be removed); and continue adjusting for exchange rate

movements across all metrics, as it was broadly in line with market practice. Adjustments to targets in any given year may be upwards or

downwards and are designed to ensure that outcomes reflect management’s performance in the year by neutralising the effect of interest rates

and foreign exchange movements during that year.

Personal performance

20 per cent of the Chief Executive Officer's annual bonus is based on the achievement of personal objectives, which may include:

– meeting individual conduct and customer measures;

– contribution to Group strategy as a member of the Board; and

– specific goals for which he is responsible and progress on major projects.

The below summarises the Chief Executive Officer’s performance against his 2025 personal objectives and strategic priorities. The assessment

was undertaken by the Chair of the Board.


	217 Prudential plc Annual Report 2025


2025 personal objectives	Key achievements	Weighting	Performance outcome
People and Culture	– Strengthened the Group Executive Committee through senior appointments, effective onboarding and clear portfolio accountability. – Advanced succession planning and leadership pipeline development for key Group Leadership Team roles. – Further embedded a performance led, values driven culture, strengthening alignment between delivery, behaviours and reward outcomes.	20%	19%
Transformation	– Delivered the Group’s financial and operational commitments under the current strategy with double digit growth in our key metrics¹, including consistent double digit growth across all quarters in new business profit, reflecting disciplined execution and sustained operational focus – Continued execution of the Transformation Agenda across Agency, Health and Operations, supported by sustained investment in capabilities, systems and technology. – Improved operational efficiency and performance, including reductions in operating variances and enhancement of PruServices (our digital servicing portal now live for customers in nine business units). – Worked with joint venture partners, for example CITIC in China saw new business profit growth of 27 per cent.	35%	32%
Strategy	– Maintained a clear focus on capital allocation and capital management, demonstrating the Group’s ability to fund growth and deliver shareholder returns. – Reached an inflection point in the Group’s operating free surplus generation. Completed the $2bn share buyback and launched a further $1.2bn buyback programme in early 2026. – Delivered key strategic initiatives and transactions (eg the IPO of IPAMC in India), generating cash returns and supporting the Group’s capital position.	25%	24%
Stakeholder relations	– Strengthened shareholder engagement through clear, consistent communication. – Improved rNPs in eight out of ten business units, contributing to an increase in customer retention to 88 per cent. – Engaged with regulators across key markets, securing regulatory approvals and expanding market access.	20%	20%
Recognising Mr Wadhwani’s performance against his personal objectives, the Committee judged that an assessment of 95% of the portion of the bonus attributable to personal objectives (20% weighting) was appropriate.

Note

(1) Our key metrics are: new business profit, basic earnings per share based on adjusted operating profit and operating free surplus generated from in-force insurance and asset

management business.


	218 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

Long-term incentives vesting in respect of performance to 31 December 2025 – audited information

Prudential Long Term Incentive Plan (PLTIP)

Target setting

Our long-term incentive plans have stretching performance conditions that are aligned to the strategic priorities of the Group. In determining the

financial targets attached to the awards made in 2023, the Committee had regard to the stretching nature of the three-year business plan for

return on embedded value and capital positions as set by the Board. Furthermore, in setting the conduct and diversity targets under the business

integrity scorecard, the Committee considered input presented by the Chief Risk and Compliance Officer, on behalf of the Risk Committee, in

assessing conduct risk and had regard to the Company’s commitment under the Women in Finance Charter for the diversity measure.

Performance assessment

In deciding the proportion of the awards to be released, the Committee considered actual results against performance targets. The Committee

also reviewed information about underlying Company performance to ensure vesting levels were appropriate, including an assessment of

whether results were achieved within the Group’s risk framework and appetite. Finally, overall vesting levels were reviewed to ensure that levels of

reward provided remain reflective of the Company’s performance.


	Weighting	Threshold (20 per cent of award vests)	Stretch (100 per cent of award vests)	Performance achieved	Vesting outcome
Relative TSR¹	35%	Median	Upper quartile	Below median	–%
Return on embedded value (RoEV)²	40%	9.35%	12.65%	11.3%	82.5%
Reduction in WACI³	5%	25.0%	35.0%	53.0%	100.0%
GWS operating capital generation⁴	5%	$3,698 million	$5,004 million	Above target but below the cumulative stretch target	81.2%
GIECA ⁵	5%	$7,853 million	$10,625 million	Above target but below the cumulative stretch target	82.6%
Diversity⁶	5%	35.0%	40.0%	38%	78.0%
Conduct⁷	5%	Partial achievement	Stretch achievement	No conduct, culture or governance issues that resulted in significant capital add-ons or material fines	100.0%
Total	100%				55.09%

Notes

(1) Relative TSR is measured on a ranked basis over three years relative to peers. The peer group for the 2023 awards consists of AIA, China Life, China Pacific Insurance, China

Taiping Insurance, DBS Group, Great Eastern, Hang Seng Bank, Manulife Financial, MetLife, New China Life, Ping An Insurance and Standard Chartered. As Great Eastern

shares recommenced trading on 21 August 2025, the Committee decided that Great Eastern’s actual TSR performance over the full performance period would be used.

(2) The average three-year Group RoEV relative to the 2023–2025 Board-approved business plan; these targets were adjusted for the change in reporting on a TEV basis.

(3) Reduction in weighted average carbon intensity (WACI) as at 31 December 2025 compared with the baseline as at 31 December 2019. The baseline and targets have been

externally validated. Please see our Sustainability report for details of our ambitions and progress to date.

(4) Cumulative three-year GWS operating capital generation.

(5) Cumulative three-year GIECA operating capital generation.

(6) Diversity is measured as the percentage of Group Leadership Team (GLT) that is female at the end of 2025. For these purposes, GLT members who are employed by our

operating joint venture Prudential BSN Takaful Berhad are included.

(7) Conduct is assessed through appropriate management action, ensuring there are no significant conduct/culture/governance issues that could result in significant capital

add-ons or material fines.

As disclosed in last year's report, the Group started reporting on a TEV basis in January 2025. As RoEV was set on a European Embedded Value

basis the targets required adjustment. In revising the targets, the Committee adopted the following principles:

– Participants should not be advantaged or disadvantaged by the transition to the TEV reporting methodology;

– The value of outstanding awards and their key terms (vesting dates, holding periods, malus and clawback provisions) are unaffected;

– If performance conditions are revised, the revised conditions should be no more or less stretching than those originally attached to the awards;

and

– Details of the revised targets will be disclosed.

These principles, similar to those adopted in respect of the demergers of the Jackson and M&G businesses, were discussed with and supported by

our largest shareholders in late 2024 and early 2025 and before the revisions were made.

Details of cumulative achievement under the capital measures have not been disclosed, as the Committee considers that these are commercially

sensitive and disclosure would put the Company at a disadvantage compared to its competitors. The Committee will keep this disclosure policy

under review based on whether, in its view, disclosure would compromise the Company’s competitive position.

PLTIP vesting

The Committee considered a report from the Chief Risk and Compliance Officer, which was approved by the Risk Committee. This report

confirmed that the financial results were achieved within the Group’s risk framework and appetite. On the basis of this report and the

performance of the Group described above, the Committee decided that it was not appropriate to apply any adjustment to the formulaic vesting

outcome of the 2023 PLTIP awards.


	219 Prudential plc Annual Report 2025

Long-term incentives awarded in 2025

2025 share-based long-term incentive awards

The table below shows the conditional award of shares made to the Chief Executive Officer under the PLTIP in 2025 and the performance

conditions attached to this award.


Executive Director	Role	Number of shares subject to award	Face value of award		Percentage of awards released for achieving threshold targets	End of performance period
Executive Director	Role	Number of shares subject to award	% of salary	(USD)*		End of performance period
Anil Wadhwani	Chief Executive Officer	635,353	425%	6,695,004	20%	31 December 2027

* Award calculated based on the average share price over the three dealing days prior to the grant date in March, being HKD 82.15. The value has been converted to US

dollars at the exchange rate of 7.7960.

The measures, weightings and targets for the 2025 PLTIP award for the Chief Executive Officer are summarised below:


		Threshold¹	Maximum
Measure	Weighting	20% vesting	100% vesting
Relative TSR ²	45%	Median	Upper quartile
NBP ^3,5	15%	$8,575m	$11,601m
Gross OFSG ^4,5	15%	$9,288m	$12,567m
Business integrity scorecard	25%	see below

Notes

(1) Performance below threshold results in 0% vesting.

(2) Relative TSR is measured on a local currency basis since this has the benefit of simplicity and directness of comparison. The TSR peer group comprises: AIA Group, China Life

Insurance, China Pacific Insurance Company, China Taiping Insurance, DBS Group, Hang Seng Bank, Manulife Financial, MetLife, New China Life, Oversea-Chinese Banking

Corporation Limited, Ping An Insurance, and Standard Chartered.

(3) NBP measures the value creation of writing new business and is a key metric to indicate growth.

(4) Gross OFSG will be calculated as the operating free surplus generated within local businesses before investment in new business and any central costs.

(5) The threshold and maximum values for NBP and gross OFSG shown above were set on a TEV basis following the change in reporting, effective 1 January 2025.

Under the business integrity scorecard, performance will be assessed for each of the five measures at the end of the three-year performance

period:


Measure	Weighting	Threshold performance¹ (20% vesting)	Stretch performance ¹ (100% vesting)
Reduction in WACI ²	5%	50% reduction	55% reduction
GWS capital measure ^3,5	5%	Threshold	Stretch
GIECA measure^4,5	5%	Threshold	Stretch
Diversity⁶	5%	38% female	42% female
Conduct⁷	5%	Partial achievement of Group expectations	Achieving Group expectations

Notes

(1) Performance below threshold results in nil vesting.

(2) Reduction as at 31 December 2027 compared with the baseline as at 31 December 2019. The baseline and targets have been externally validated. Please see our

Sustainability report for details of our ambitions and progress to date. This element is subject to a transition finance underpin which must be met before any part of the

WACI element vests.

(3) Cumulative three-year GWS operating capital generation.

(4) Group Internal Economic Capital Assessment (GIECA) surplus generation is a Pillar 2 economic capital metric.

(5) The targets for the GWS capital measure and the GIECA measure are deemed to be commercially sensitive and, if disclosed, would put the Company at a disadvantage

compared to its competitors. They will be published in the Annual Report for the final year of the performance period.

(6) Diversity is measured as the percentage of GLT that is female. For these purposes, GLT members who are employed by our joint venture Prudential BSN Takaful Berhad are

included.

(7) Through strong risk management action, ensure there are no significant conduct/culture/governance issues that result in significant capital add-ons or material fines.

The Committee will review awards on vesting to assess whether outcomes appropriately reflect underlying Company performance and to ensure

that participants do not benefit from windfall gains. In making this determination, the Committee will consider Prudential’s stretching

performance targets, the share performance of Prudential and its peers, the performance of the indices on which Prudential is listed, and any

other factors it deems relevant.


	220 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

Recruitment arrangements – audited information

As detailed in the 2023 Directors’ remuneration report, in order to facilitate Mr Wadhwani’s appointment, the Company agreed to replace

remuneration forfeited by him and reimburse costs he incurred as a consequence of him leaving his former employer, Manulife, and joining

Prudential. Full details of these arrangements were provided in the 2023 Directors’ remuneration report.

Replacement award

As part of these recruitment arrangements, a replacement award was made under a one-off award agreement entered into on 8 March 2023 in

accordance with Rule 9.4.2 of the UK Listing Rules. The replacement award was made on a like-for-like basis with the award subject to release in

accordance with the original vesting time frames and, where applicable, satisfaction of the Manulife performance conditions attached to the

original awards.

Three types of forfeited awards were replaced:

– performance shares were replaced with Prudential plc shares with the performance conditions tied to the original award (to be determined by

the Committee based on performance outcomes published in the relevant Manulife Management Information Circulars);

– restricted shares were replaced at face value; and

– market-value stock options were only replaced to the extent that they were 'in the money'.

The award comprised (i) a cash-settled nominal-cost option over Prudential plc shares, and (ii) replacement cash payments (which were paid in

2023 and reported in the 2023 single figure table). The nominal-cost option was granted to Mr Wadhwani on 21 March 2023 to replace the

other forfeited Manulife awards in tranches. Part of the award vested in 2024 and was reported in the 2024 single figure table; further details of

the vesting and exercise of the balance of the replacement award are provided below:


Replacement award ¹	No. of notional shares under option outstanding at 1 January 2025	Exercise price (HKD)	No. of notional shares exercised in 2025	No. of notional shares lapsed in 2025	No. of notional shares under option outstanding at 31 December 2025	End of performance period (if applicable)	Exercise period	Market price at date of vesting (HKD)
Performance shares
2022^{2, 3}	163,004	0.48	127,686	35,318	–	31 Dec 2024	1 May–8 May 2025	84.00
Restricted shares
2022	60,738	0.48	60,738	–	–	n/a	1–30 March 2025	79.40
Stock options
2020	11,552	0.48	11,552	–	–	n/a	5 March–3 April 2025	79.40
	235,294		199,976	35,318	–

Notes

(1) All awards were made in the form of options over notional shares.

(2) Elements of the replacement award that are reportable within the restated 'Table of 2024 Executive Director total remuneration'. These values have been restated to

reflect the share price at the time of vesting and actual performance outcomes where applicable.

(3) Performance shares were replaced at their maximum value (180% of target) and remained subject to the satisfaction of the original Manulife performance conditions. The

number of notional shares that vested was determined by dividing the total number of notional shares under option by 180% and multiplying this by the vesting outcome

of 141% of target as published in the 2024 Manulife Management Information Circular.

Malus and Clawback

The Committee may apply clawback and/or a malus adjustment to variable pay (annual bonus, long-term incentives and replacement awards).

The circumstances and the period during which malus and clawback provisions may be applied, are set out in the Malus and clawback Policy

section of the New Directors' remuneration policy. The clawback period is considered appropriate by the Committee as, given the nature of the

company’s business, it allows sufficient time for any relevant circumstances to come to light. Malus and clawback were not exercised during the

year under review.


	221 Prudential plc Annual Report 2025

Pay comparisons

Performance graph and table

The chart below illustrates the TSR performance of Prudential, the FTSE 100 (as the Company has a listing on the London Stock Exchange and is

a constituent of the FTSE 100 index), and the peer group of international insurers, which comprise the Company’s TSR peer group for the 2025

PLTIP awards. The chart illustrates the performance of a hypothetical investment of $100 in ordinary shares of Prudential plc over the 10-year

period from 1 January 2016 to 31 December 2025 compared to a similar investment in the FTSE 100 or an index of the Company’s peers. Total

shareholder return is based on returns index data calculated on a daily share price growth plus reinvested dividends (as measured at the ex-

dividend dates).

Prudential TSR vs FTSE 100 and TSR peer group average – total shareholder return over 10-year period to December 2025


n	Prudential	n	FTSE 100	n	Peer group

The information in the table below shows the total remuneration for the Chief Executive Officer over the same period:


$000¹	2016	2017	2018	2019	2020	2021	2022	2022	2023	2023	2024	2025
Chief Executive Officer ^2,3	MW	MW	MW	MW	MW	MW	MW	MFP	MFP	AW	AW	AW

Salary, pension and benefits	3,029	2,415	2,423	2,122	2,126	2,249	663	1,476	447	1,986	2,284	2,417
Annual bonus payment	2,904	2,673	2,848	2,804	1,355	3,057	693	2,161	441	2,638	2,801	2,580
(As % of maximum)	(99.5)%	(94.0)%	(95.0)%	(96.0)%	(46.0)%	(96.7)%	(96.0)%	(98.0)%	(97.4)%	(99.0)%	(89.0)%	(81.9)%
LTIP vesting	4,016	5,955	4,837	2,746	4,286	1,052	2,108	1,255	307	–	–	3,581
(As % of maximum)	(70.8)%	(95.8)%	(62.5)%	(62.5)%	(68.8)%	(17.8)%	(45.5)%	(45.5)%	(27.6)%	–	–	(55.1)%
Other payment⁴	–	–	–	–	–	–	–	–	–	7,081	1,439	–
Chief Executive Officer ‘single figure’ of total remuneration ⁵	9,950	11,042	10,109	7,671	7,768	6,358	3,464	4,892	1,195	11,705	6,524	8,578

Notes

(1) All remuneration has been converted to USD using the average exchange rate for each respective financial year.

(2) In years where there has been a change in Chief Executive Officer, the figures shown for each individual’s remuneration in that year relate only to their service as Chief

Executive Officer.

(3) The Chief Executive Officers are: MW: Mike Wells MFP: Mark FitzPatrick AW: Anil Wadhwani

(4) Other payment refers to the value of remuneration forfeited by Mr Wadhwani as a consequence of his leaving his former employer and replaced by the Company.

(5) Further details on the ‘single figure’ are provided in the ‘single figure’ table for the relevant year. The figures provided reflect the value of vesting LTIP awards on the date

of their release. For Mark FitzPatrick, the LTIP vesting for 2022 and 2023 also include performance periods in which he served in the role of Group Chief Financial Officer

and Chief Operating Officer.

Relative importance of spend on pay

The table below sets out the amounts payable in respect of 2024 and 2025 on all employee pay, dividends and the share buyback programme:


	2024	2025	Percentage change
All employee pay ($m)¹	1,210	1,323	9%
Dividends and share buyback programme ($m)²	1,360	1,834	35%

Notes

(1) All employee pay as taken from note B2.1 of the financial statements.

(2) Dividends paid in the year as taken from note B5 and the share buyback programme value from note C8 of the financial statements.


	222 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

Percentage change in remuneration

The table below illustrates the year-on-year change in remuneration for each Director compared to a wider employee comparator group:

Salary (% change)

Benefits¹⁰ (% change)

Bonus⁹ (% change)

2024-25

2023-24

2022-23

2021-22

2020-21

2024-25

2023-24

2022-23

2021-22

2020-21

2024-25

2023-24

2022-23

2021-22

2020-21

Executive Director

Anil Wadhwani¹

19%

–

26%

–

(8)%

–

Chair and Non-

executive Directors³

Shriti Vadera²

(1)%

907%

10%

(18)%

10%

35%

–

Jeremy Anderson

12%

13%

25%

300%

–

Arijit Basu⁴

198%

–

33%

200%

–

Guido Fürer⁵

–%

–

Ming Lu⁶

58%

–

George Sartorel⁴

34%

–

(40)%

400%

–

Mark Saunders⁷

36%

–

Claudia Suessmuth

Dyckerhoff ⁸

–

50%

100%

–

Chua Sock Koong ⁶

(1)%

70%

–

100%

–

Jeanette Wong⁶

19%

74%

–

(33)%

–

Amy Yip⁸

(15)%

–

UK-based employees

4.0%

4.6%

6.0%

6.7%

3.1%

46.1%

(14.5)%

45.1%

(7.3)%

0.7%

(9.9%)

(13.6)%

143%

7.9%

5.8%

Notes

(1) Anil Wadhwani was appointed as Chief Executive Officer on 25 February 2023. The change in salary and benefits in 2023–24 reflects his pro-rated pay for 2023. In

addition, his 2023 bonus was determined using his pro-rated salary. The percentage change in remuneration is calculated in USD.

(2) Shriti Vadera joined the Board and the Nomination & Governance Committee on 1 May 2020 and became Chair on 1 January 2021. The change in pay in 2020–21 reflects

her pro-rated pay for 2020 as well as her change in role. Fluctuations in benefits are also in part due to exchange rate movements where not dollar-denominated.

(3) Fluctuations in Non-executive Directors’ pay are due to changes in Committee memberships and changes in the basic fee or additional fees for being a Committee Chair or

member. Fluctuations in benefits are also in part due to exchange rate movements where not dollar-denominated.

(4) Arijit Basu and George Sartorel joined the Board in 2022. The changes in pay in 2022–23 reflect their pro-rated pay for 2022.

(5) Guido Fürer joined the Board on 1 July 2025.

(6) Ming Lu, Chua Sock Koong and Jeanette Wong joined the Board in 2021. The changes in pay in 2021–22 reflect their pro-rated pay for 2021.

(7) Mark Saunders joined the Board on 1 April 2024. The change in pay in 2024–25 reflects his pro-rated pay for 2024.

(8) Amy Yip retired from the Board on 31 October 2025.

(9) The year-on-year change in bonus for UK-based employees between 2022 and 2023 reflects changes in the structure of their bonus plan and business performance. The

increase in the level of taxable benefits from 2022 to 2023 for employees reflects the extension of private medical cover offered to employees and the introduction of

critical illness cover.

(10) The year-on-year change in benefits from 2024 to 2025 for Mr Wadhwani reflects the increased cost in the provision of a car and driver, medical insurance and expatriate

benefits and for UK-based employees the change reflects a new health cash plan introduced to align with Group-wide minimum standards and a higher private medical

insurance cost in 2025 compared to 2024.

The regulations prescribe that this comparison should include all employees of the parent company. The number of individuals employed by the

parent company is insufficient to be the basis of a representative comparison. Therefore, the Committee has decided to use all UK-based

employees as the basis for this calculation. The average pay for all employees has been calculated on a full-time equivalent basis by reference to

the total pay awarded to UK employees in each year from 2025 back to 2019. The salary increase includes uplifts made through the annual

salary review, as well as any additional changes in the year; for example, to reflect promotions or role changes.

Chief Executive Officer pay compared with employee pay and gender pay gap

As reported in prior years, the UK headcount of Prudential Services Limited is below the 250-person threshold, which triggers mandatory

publication of the gender pay gap and the CEO pay ratio. After due consideration, we have decided that the UK gender pay gap and CEO pay

ratio are not meaningful, given our relatively small employee headcount in the UK.

Consideration of workforce pay and approach to engagement

The Committee believes that its approach to executive remuneration is consistent with the pay, reward and progression policies for other

employees within the Group. The base salary and total remuneration levels for the Chief Executive Officer and other employees are competitively

positioned within the relevant markets and reflect the operation of our remuneration structures, which are effective in appropriately incentivising

staff, having regard to our risk framework and risk appetites, and to rewarding the ‘how’ as well as the ‘what’ of performance. During 2025, the

Committee considered workforce remuneration and related policies in the businesses across the Group. Information presented to the Committee,

by way of a dashboard, included how the Company’s incentive arrangements are aligned with the culture and informed the Committee’s

decision-making on executive pay and policy. By way of example, employee salary increase budgets are considered as part of the review of the

Chief Executive Officer’s compensation and salary increases.


	223 Prudential plc Annual Report 2025

The Committee considered the Chief Executive's remuneration in the context of workforce pay and is satisfied that it remains appropriate. In

2025, salary increases for other employees across the Group’s businesses were 5.2 per cent while the Chief Executive Officer received no salary

increase in January 2025. Employee engagement is led by the Sustainability Committee. The Strategic report describes how it discharged this

responsibility during 2025.

The Group operates PRUshareplus, an all-employee share purchase plan available to employees in 25 countries – 15 in Asia, eight in Africa and

two in Europe – allowing our people to invest in the Company’s shares. Similar Syariah-compliant plans are available in our Syariah business. The

Group also operates a UK Save As You Earn (SAYE) scheme and Share Incentive Plan (SIP). UK-based employees are eligible to participate in both

plans. Further details are provided in note B2.2 of the Financial statements.

As part of our continuing efforts to safeguard our employees’ wellbeing, we held our fifth Prudential Recharge Day on 19 September 2025. All

employees Group-wide were encouraged to take the day as an extra day off to rest and recharge, and to spend time with family and friends.

Chair and Non-executive Director remuneration in 2025 – audited information

Chair fee

Shriti Vadera’s fee was reviewed by the Committee during 2025. Having considered the fee against external benchmarks and that it was last

increased in July 2022, the Committee felt that it was appropriate to increase her fee to $1,005,000, effective from 1 July 2025.

Non-executive Directors’ fees

The Non-executive Directors’ fees are denominated in US dollars. The fees were reviewed by the Board during 2025 with a 3.2% increase made

to the basic fee, which had been last increased in July 2022; this fee change was effective from 1 July 2025.


Annual fees²	From 1 July 2024 ($)	From 1 July 2025 ($)
Basic fee	125,000	129,000
Additional fees:
Audit Committee Chair	92,000	92,000
Audit Committee member	39,000	39,000
Remuneration Committee Chair	80,000	80,000
Remuneration Committee member	39,000	39,000
Risk Committee Chair	92,000	92,000
Risk Committee member	39,000	39,000
Nomination & Governance Committee Chair¹	–	–
Nomination & Governance Committee member	19,000	19,000
Sustainability Committee Chair	60,000	60,000
Sustainability Committee member	30,000	30,000
Senior Independent Director	61,000	61,000

Notes

(1) There is no fee paid for the role of Nomination & Governance Committee Chair.

(2) As detailed in the Directors’ remuneration policy, should a new committee or working group be formed, the remit of an existing committee be materially expanded, or a new

Non-executive Director role established, new or additional fees may be paid. Any fees will be commensurate with the new or additional responsibilities and time

commitment involved.


	224 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

If, in a particular year, the number of meetings and/or time commitment is materially greater than usual, the Company may determine that the

provision of additional fees is fair and reasonable. No additional fees were paid in 2025.

The resulting fees paid to the Chair and Non-executive Directors are:


	2025 fees ($000)	2024 fees ($000)	2025 taxable benefits* ($000)	2024 taxable benefits* ($000)	Total 2025 remuneration: the ‘single figure’ ($000)†‡	Total 2024 remuneration: the ‘single figure’ ($000)†‡
Chair
Shriti Vadera	986	966	123	112	1,109	1,078
Non-executive Directors
Jeremy Anderson	338	335	5	4	343	339
Arijit Basu	196	192	4	3	200	195
Guido Fürer¹	104	–	–	–	104	–
Ming Lu ²	185	182	–	–	185	182
George Sartorel	284	277	3	5	287	282
Mark Saunders	205	151	–	–	205	151
Claudia Suessmuth Dyckerhoff	196	192	3	2	199	194
Chua Sock Koong	226	223	2	2	228	225
Jeanette Wong	288	271	2	3	290	274
Amy Yip³	138	163	–	–	138	163
Total	3,146	2,952	142	131	3,288	3,083

* Benefits include the cost of providing the use of a car and driver and medical insurance where applicable.

† Each remuneration element is rounded to the nearest $1,000 and totals are the sum of these rounded figures. The Chair and Non-executive Directors are not entitled to

participate in annual bonus plans or long-term incentive plans.

‡ Remuneration components denominated in GBP have been converted to US dollars using an exchange rate of 0.7824 for the 2024 single figure calculation and 0.7581 for

the 2025 single figure calculations. As Non-executive Directors and the Chair do not receive variable remuneration components, the table above does not include a sum of

total fixed and total variable remuneration.

Notes

(1) Guido Fürer joined the Board on 1 July 2025.

(2) During 2024, Ming Lu donated his fee to InspringHK Sports, an independent non-profit organisation based in Hong Kong.

(3) Amy Yip retired from the Board on 31 October 2025.


	225 Prudential plc Annual Report 2025

Statement of Directors’ shareholdings – audited information

The interests of Directors in ordinary shares of the Company are set out below. ‘Beneficial interest’ includes shares owned outright and deferred

annual incentive awards, detailed in the Additional remuneration disclosures section. It is only these shares that count towards the share

ownership guidelines.


	1 January 2025 (or on date of appointment)			31 December 2025 (or on date of stepping down)			Share ownership guidelines
	Total beneficial interest (number of shares)	Number of shares acquired during the year	Number of shares disposed of during the year	Total beneficial interest* (number of shares)	Number of shares subject to performance conditions†	Total interest in shares	Share ownership guidelines^‡ (% of salary/ fee)	Beneficial interest as a percentage of basic salary/ basic fees^§
Chair
Shriti Vadera	117,500	–	–	117,500	–	117,500	100%	159%
Executive Director
Anil Wadhwani¹	329,573	137,035	–	466,608	1,770,768	2,237,376	400%	403%
Non-executive Directors
Jeremy Anderson	19,157	–	–	19,157	–	19,157	100%	202%
Arijit Basu	9,691	4,000	–	13,691	–	13,691	100%	144%
Guido Fürer	–	13,000	–	13,000	–	13,000	100%	137%
Ming Lu	12,600	5,000	–	17,600	–	17,600	100%	186%
George Sartorel	13,000	1,000	–	14,000	–	14,000	100%	148%
Mark Saunders	13,750	–	–	13,750	–	13,750	100%	145%
Claudia Suessmuth Dyckerhoff	4,800	–	–	4,800	–	4,800	100%	51%
Chua Sock Koong	15,000	–	–	15,000	–	15,000	100%	158%
Jeanette Wong	14,600	–	–	14,600	–	14,600	100%	154%
Amy Yip	14,013	–	–	14,013	–	14,013	100%	148%

* Beneficial interests include shares held directly or indirectly by connected persons. The only changes in the Directors’ interests in ordinary shares between 31 December

2025 and 17 March 2026 were the acquisition of 109 shares through the Prudential All Employee Share Purchase Plan by Anil Wadhwani.

† Further information on share awards subject to performance conditions are detailed in the ‘share-based long-term incentive awards’ part of the Additional remuneration

disclosures section.

‡ The holding requirement under the Articles of Association (2,500 ordinary shares) must be obtained within one year of appointment to the Board. Executive Directors and

the Chair have five years to reach their guideline. Non-executive Directors have three years from their date of joining to reach the guideline.

§ Based on the average closing price for the six months to 31 December 2025 (HKD106.05) and the exchange rate of 7.7960 for HKD.

The Company and its Directors, Chief Executives and shareholders have been granted a partial exemption from the disclosure requirements under Part XV of the Securities and

Futures Ordinance (SFO). As a result of this exemption, Directors, Chief Executives and shareholders do not have an obligation under the SFO to notify the Company of

shareholding interests, and the Company is not required to maintain a register of Directors’ and Chief Executives’ interests under section 352 of the SFO, nor a register of

interests of substantial shareholders under section 336 of the SFO. The Company is, however, required to file with the Stock Exchange of Hong Kong Limited any disclosure of

interests notified to it in the United Kingdom.

Note

(1) Anil Wadhwani was appointed on 25 February 2023 and had met his share ownership guidelines by the end of 2025. Total beneficial interest includes deferred bonus

awards without performance conditions.

Directors’ terms of employment

Details of the service contract of the Chief Executive Officer are outlined in the table below. The Directors’ remuneration policy contains further

details of the terms included in Executive Director service contracts. As required by the Hong Kong Listing Rules, all Executive Director service

contracts can be terminated by the Company by giving no more than 12 months’ notice (or payment in lieu of such notice) and without

compensation payments other than any termination payments required by law.


	Date of contract	Notice period to the Company	Notice period from the Company
Executive Director
Anil Wadhwani	25 February 2023	12 months	12 months


	226 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

Letters of appointment of the Chair and Non-executive Directors

Details of Non-executive Directors’ individual appointments are outlined below. The Directors’ remuneration policy contains further details on

their letters of appointment. The Chair and Non-executive Directors are not entitled to receive any payments for loss of office. As required by the

Hong Kong Listing Rules, the appointment of the Chair and the Non-Executive Directors can be terminated by the Company by giving no more

than six months’ notice (12 months’ notice for the Chair), or payment in lieu of such notice and without compensation payments other than any

termination payments required by law.


Chair/Non-executive Director	Appointment by the Board	Notice period	Time on the Board at 2026 AGM
Chair
Shriti Vadera (Chair from 1 January 2021)	1 May 2020	12 months	6 years
Non-executive Directors
Amy Yip¹	2 September 2019	6 months	n/a
Jeremy Anderson	1 January 2020	6 months	6 years 4 months
Ming Lu	12 May 2021	6 months	5 years
Chua Sock Koong	12 May 2021	6 months	5 years
Jeanette Wong	12 May 2021	6 months	5 years
George Sartorel	14 January 2022	6 months	4 years 4 months
Arijit Basu	1 September 2022	6 months	3 years 8 months
Claudia Suessmuth Dyckerhoff	1 January 2023	6 months	3 years 4 months
Mark Saunders	1 April 2024	6 months	2 years 1 month
Guido Fürer	1 July 2025	6 months	10 months

Note

(1) Amy Yip retired from the Board on 31 October 2025.

Payments to past Directors and payments for loss of office – audited information

Payments to past Directors, as they relate to their Directorships, are described below. A de minimis threshold of £10,000 has been set by the

Committee; any payments or benefits provided to a past Director above this amount will be reported. There were no payments to past Directors

in 2025, nor any additional payments to Directors for loss of office in the year.

Statement of voting at general meeting

The Directors’ remuneration policy was approved by shareholders at the 2023 Annual General Meeting. At the 2025 Annual General Meeting,

shareholders were asked to vote on the 2024 Directors’ remuneration report. Each of these resolutions received a significant vote in favour and

the Committee is grateful for this support and endorsement by our shareholders. The votes received were:


Resolution	Votes for	% of votes cast	Votes against	% of votes cast	Total votes cast	Votes withheld
To approve the Directors’ remuneration policy (2023 AGM)	2,176,820,906	95.71	97,529,901	4.29	2,274,350,807	12,342,304
To approve the Directors’ remuneration report (2025 AGM)	1,967,863,835	92.40	161,804,212	7.60	2,129,668,047	1,720,482


	227 Prudential plc Annual Report 2025

Statement of implementation of remuneration policy in 2026

The proposed implementation of remuneration policy set out below is subject to shareholder approval of the Directors' remuneration policy at

the AGM to be held on 28 May 2026. Information about the 2026 Directors’ remuneration policy is set out in the New Directors' remuneration

policy and in the Annual statement from the Chair of the Remuneration Committee.

Base salary

The Chief Executive Officer’s remuneration package was reviewed in 2025, with the Committee considering the expected salary increases

budgeted for other employees in 2026, alongside external benchmarks. These benchmarks, based on the 2025 TSR peer group, Asia-focused

insurers and financial services firms, were selected to reflect that we compete for talent globally, particularly within financial services

organisations with significant operations in Asia.

After due deliberation and consultation with the Company’s shareholders, the Committee considered that Mr Wadhwani’s salary for 2026

should be increased by 3 per cent. This recognises the time elapsed since his current base salary was last set in 2022 and his strong leadership

and performance since joining the Company. Since the wider Prudential workforce received an average 5.1 per cent salary increase, 2026 will be

the 14th consecutive year in which the increases generally offered to executives have been below or close to the bottom of the range of salary

increases budgeted for the broader workforce.

Mr Wadhwani’s annual salary, effective 1 January 2026, will be HKD12,650,000.

2026 pension entitlements

Mr Wadhwani’s pension benefits will remain aligned to the workforce rate, currently considered to be 13 per cent of salary. In addition, statutory

contributions will continue to be made into mandatory pension arrangements in Hong Kong, in line with local requirements.

Annual bonus

Mr Wadhwani will be eligible for a maximum bonus opportunity of 250 per cent of salary, subject to deferral in line with the 2026 Directors'

remuneration policy.

For 2026, the AIP for the Chief Executive Officer's bonus will continue to be based on financial measures (80 per cent) and on personal and

strategic objectives (20 per cent). Given the strong connection between remuneration and our longer-term strategic objectives, and that we are

mid-way through our strategic cycle, we intend to keep the measures and weightings for the 2026 AIP unchanged from 2025, as set out below:

– Group new business profit – 45 per cent;

– Group adjusted operating profit – 20 per cent;

– Group net operating free surplus generation – 20 per cent; and

– Group holding Company cash flow – 15 per cent.

In 2025, we transitioned our external reporting from IFRS operating profit pre-tax to IFRS operating profit post-tax, to better align with investor

expectations and peer disclosures. Accordingly, the IFRS measure for AIP from 2026 will be based on a post-tax basis.

The Committee considers the forward-looking targets to be commercially sensitive. The performance targets and outcomes will be set out in next

year’s Directors’ remuneration report.


	228 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Annual report on remuneration continued

2026 share-based long-term incentive awards

Award levels

Mr Wadhwani will be eligible to receive a 2026 PLTIP award of 375 per cent of salary.

The Committee will review awards on vesting to ensure that participants do not benefit from windfall gains. The Committee will consider

Prudential’s stretching performance targets, the share performance of Prudential and its peers, the performance of the indices on which

Prudential is listed, and any other factors it deems relevant when determining vesting.

Performance conditions

The measures, weightings and targets for the 2026 PLTIP award for the Chief Executive Officer are summarised below:


Measure	Weighting	Threshold performance¹ (20% vesting)	Stretch performance (100% vesting)
Relative TSR ²	40%	Median	Upper quartile
NBP ³	15%	$9,630m	$13,029m
Gross OFSG ⁴	15%	$10,841m	$14,668m
RoEV⁵	15%	14.3%	19.3%
Business integrity scorecard	15%	see below

Notes

(1) Performance below threshold results in 0% vesting.

(2) Relative TSR is measured on a local currency basis since this has the benefit of simplicity and directness of comparison. For 2026 awards, the 2026 TSR peer group

comprises: AIA Group, China Life Insurance, China Pacific Insurance Company, China Taiping Insurance, DBS Group, Manulife Financial, MetLife, Oversea-Chinese Banking

Corporation Limited, New China Life, Ping An Insurance, and Standard Chartered.

(3) NBP measures the value creation of writing new business and is a key metric to indicate growth.

(4) Gross OFSG will be calculated as the operating free surplus generated within local businesses before investment in new business and any central costs.

(5) RoEV is a comprehensive performance measure for the Group, capturing both new business growth and the efficient management of in-force business.

Under the business integrity scorecard, performance will be assessed for each of the three measures at the end of the three-year performance

period:


Measure	Weighting (% of total LTIP)	Threshold performance (20% vesting)	Stretch performance (100% vesting)
Financing the Transition ¹	5%	$3.783bn	$4.017bn
GWS capital measure ^{2, 4}	5%	Threshold	Stretch
GIECA measure^{3, 4}	5%	Threshold	Stretch

Notes

(1) Cumulative committed/invested capital over the three-year performance period. The targets have been externally validated. Please see our Sustainability report for details

of our ambitions and progress to date. This element is subject to a WACI reduction underpin which must be met before any part of the FTT element vests.

(2) Cumulative three-year GWS operating capital generation relative to threshold.

(3) GIECA surplus generation is a Pillar 2 economic capital metric.

(4) The targets for these metrics are deemed to be commercially sensitive and, if disclosed, would put the Company at a disadvantage compared to its competitors. They will be

published in the Annual Report for the final year of the performance period.

Chair and Non-executive Directors

Fees for the Chair and Non-executive Directors were reviewed in 2025 with changes effective from 1 July 2025, as set out in the Chair and Non-

executive Director remuneration in 2025 section. The next regular fee level review will be conducted in 2026.

Chua Sock Koong

Chair of the Remuneration Committee

17 March 2026


	229 Prudential plc Annual Report 2025

New Directors' remuneration policy

This section sets out the revised Directors’ remuneration policy (‘Policy’) wh ich will be put forward to shareholders for a binding vote at the 2026

AGM on 28 May 2026. If approved, this Policy will apply immediately for three years following the AGM, unless prior shareholder approval is

obtained for an amendment. This Policy has evolved from the current Policy which was approved at the AGM held on 25 May 2023 and has

applied from that date. The Committee considers that the Policy maintains strong alignment between executive remuneration and Company

performance.

As discussed in the Annual statement from the Chair of the Remuneration Committee (the ‘Committee’), the current Policy has operated as

intended. Full details of the existing Policy can be found on pages 261 to 275 of the 2022 Annual Report or on our website at https://

www.prudentialplc.com/content/dam/prudential-plc/investor/governance-and-policies/policies-and-statements/directors-remuneration-

policy-2022.pdf.

During 2025, the Committee reviewed the Policy, as described in the Chair’s letter. In order to allow the Company to attract and retain best-in-

class Executive Directors from within or outside the Group in Asia, the Committee determined that it was essential to take steps to better align

the Policy with the remuneration practices of peers while also taking account of the need to reinforce the community of interest between

Executive Directors and other stakeholders, the views of our shareholders, the remuneration of the workforce, the UK Corporate Governance

Code, and the Company’s broader regulatory and competitive environment. The Committee has determined that there would be no increase to

the total usual annual maximum incentive opportunity available to Executive Directors.

In considering the remuneration arrangements, the Committee was aware that there is no one remuneration design which is typical among our

peers in Asia. Companies operate a wide variety of incentive models as illustrated by the analysis shown in the Chair’s letter.

Notwithstanding these differences in design, our peers generally deliver a greater proportion of remuneration in cash and pay over a much

shorter timeframe than the Company’s existing reward models. In formalising the revised Policy, input was sought from the management team,

while ensuring that conflicts of interest were suitably mitigated. Advice also was sought from the Risk Committee to ensure the Policy

appropriately reflects risk management considerations and supports risk-aligned remuneration outcomes. To ensure objectivity when formulating

and operating the Policy, the Committee is entirely made up of independent Non-executive Directors and no-one is present when their own

remuneration is being discussed by the Committee.

Changes from 2023 Policy

The Committee evaluated a number of alternative remuneration structures. Following careful consideration and discussion with our major

investors, the Committee has decided to retain key features of the current incentive structure and of the Policy approved by shareholders in May

2023, while introducing some changes to equip the Group to recruit and retain critical executive talent in the Asia market. The Policy and the

sections on the Annual Incentive Plan (AIP) and Prudential Long Term Incentive Plan (PLTIP) in particular have been simplified to offer greater

flexibility and clarity. The principal differences between the 2026 and 2023 Policies are set out below.


Policy element(s)	2023 Policy	Recommended 2026 Policy	Commentary
Base salary – value	– Annual salary increases for Executive Directors will normally be in line with the increases for other employees unless there is a change in role or responsibility.	– Annual salary increases for Executive Directors will normally be in line with the increases for other employees. The Committee can determine to increase the annual salary for Executive Directors above the increases for other employees if it believes that this is appropriate based on factors considered during the salary review.	– Our long-standing practice has been for annual salary increases for Executive Directors to be below the increases for other employees. Notwithstanding that it is anticipated that this will continue to be the case, this change allows the Committee to apply their judgement to ensure the overall remuneration package remains competitive. – Should the Committee consider using this power, this would usually be discussed with major investors before a decision was made and its reasons for making the decision would be disclosed in the relevant Annual report on remuneration.


	230 Prudential plc Annual Report 2025


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New Directors' remuneration policy continued


Policy element(s)	2023 Policy	Recommended 2026 Policy	Commentary
Benefits	– Executive Directors and Non- executive Directors (NEDs) can receive reimbursement for business expenses (including any tax liability) incurred when travelling overseas in performance of duties. – If as a consequence of the Company’s corporate structure, Non- executive Directors are required to prepare personal tax returns in Hong Kong and/or the UK, in addition to preparing their personal tax return for the jurisdiction which is their place of residence, the Company will reimburse the costs of personal tax return preparation for whichever locations are not their place of residence (including payment of any tax cost associated with the provision of the benefit).	– Business expense reimbursement is also applicable to Executive Directors. The description of reimbursed business expenses has been expanded to include banking fees and any other reasonable fees for professional services incurred when travelling overseas in performance of duties or due to the Company’s corporate structure. – Modest gifts or awards to Executive Directors on customary occasions of the same value as offered to the wider workforce in the same location, for example long service awards.	– Reflects the administrative obligations created for the Executive Directors and NEDs in discharging their services. – Supports alignment with the wider workforce.
Bonus – opportunity	– The maximum AIP opportunity is up to 200 per cent of salary for Executive Directors. Annual awards are disclosed in the relevant Annual report on remuneration.	– The maximum AIP opportunity is up to 250 per cent of salary for Executive Directors. Annual awards are disclosed in the relevant Annual report on remuneration.	– As set out in the Chair’s letter, this change is part of rebalancing the usual total maximum incentive opportunity between long-term incentive and bonus, i.e. reducing the 2026 PLTIP award by 50 per cent of salary and increasing the 2026 AIP award by 50 per cent of salary.
Bonus – form and timing of payment	– 40 per cent of an Executive Director’s bonus will be deferred in cash for three years provided that their share ownership guideline is met. Deferred awards will be made in shares if the Executive Director’s share ownership guideline has not yet been achieved. The Committee retains discretion to vary the proportion of the bonus to be deferred and the length of the deferral period. – The release of deferred bonus awards is not subject to any further performance conditions. Deferred bonus awards in shares carry the right to accumulate an amount to reflect the dividends payable in respect of the shares that vest during the deferral period. These dividend equivalents will normally be settled in shares, but there is the flexibility to deliver them in cash. The amount of the dividend equivalent payment may assume the re-investment of the relevant dividends in shares.	– Up to 40% of an Executive Director’s bonus will be deferred into shares, for three years, while they are building their share ownership and until their share ownership guideline has been met, otherwise a bonus is paid immediately in cash. Achievement of the share ownership guideline will be assessed as at the end of the financial year for which the bonus is paid. – For the avoidance of doubt, an Executive Director will need to continue to meet the share ownership guideline (even during the share ownership guideline build up period) for AIP awards to be paid in cash. If the share ownership guideline is not met at the end of a financial year, the necessary portion of the AIP paid in respect of that year will be delivered in shares.	– This change, together with the other recommended changes, is designed to ensure the overall remuneration package is competitive. Our peers generally deliver a greater proportion of total remuneration in cash and over a much shorter timeframe.
Fees for the Chair and Non- executive directors	– The Chair receives an annual fee for the performance of their role. – All Non-executive Directors receive a basic fee for their duties as a Board member. Additional fees are paid for added responsibilities.	– The Chair receives an annual fee for the performance of their role. – All Non-executive Directors receive a basic fee for their duties as a Board member. Additional fees are paid for added responsibilities. – A portion of fees may be delivered in the form of shares without performance conditions, based on the market value of the shares, if the Board/ Committee deems that this is appropriate.	– We intend to continue to pay fees in cash in 2026. A provision allowing a portion of fees to be delivered in shares provides the Board/ Committee flexibility in light of relevant circumstances, including changes in market practice, during the life of the Policy.


	231 Prudential plc Annual Report 2025

Fixed pay Policy for Executive Directors


Component and purpose	Operation	Opportunity
Base salary Paying salaries at a competitive level enables the Company to recruit and retain key Executive Directors.	Offer Executive Directors market competitive base salaries. The Committee usually reviews salaries annually with changes normally effective from 1 January. In determining base salary for each Executive Director, the Committee considers factors such as: – Salary increases for other employees across the Group; – The performance and experience of each Executive Director; – The size and scope of the role; – Group financial performance; – Internal relativities; and – External factors such as economic conditions and market data, taking into account the geographies and markets in which the Company operates and competes for talent.	Annual salary increases for Executive Directors will normally be in line with the increases for other employees unless the Committee determines otherwise based on the factors considered during the salary review.
Benefits Provided to Executive Directors to support their health and wellbeing, and to assist them in carrying out their duties effectively. Relocation and location-specific benefits allow Prudential to attract high calibre Executive Directors in the international talent market and to deploy them appropriately.	The Committee has the discretion to offer Executive Directors benefits which reflect their individual circumstances and are competitive within their local market, including but not limited to: – Health and wellness benefits; – Protection and security benefits; – Transport benefits; – Family and education benefits; – All employee share plans and savings plans; – Relocation and location-specific benefits; – Reimbursed business expenses (including any relevant tax liability, banking fees and any other reasonable fees for professional services such as legal, tax, property and financial advice) incurred when travelling overseas in performance of duties or due to the Company’s corporate structure; and – Modest gifts or awards on customary occasions of the same value as offered to the wider workforce in the same location, such as long service awards.	The maximum paid will be the cost to the Company of providing these benefits. The cost of these benefits may vary from year to year but the Committee is mindful of achieving the best value from providers.
Provision for an income in retirement Pension benefits provide Executive Directors with opportunities to save for an income in retirement.	Executive Directors are offered pension benefits that are competitive and appropriate in the context of pension benefits for the wider workforce. Executive Directors have the option to: – Receive payments into a defined contribution scheme or similar arrangement; and/or – Take a cash supplement in lieu of contributions. In addition, Executive Directors may receive statutory contributions to mandatory pension arrangements in the country in which they are based, in line with local requirements.	Executive Directors will be entitled to receive pension contributions or a cash supplement (or a combination of the two) in line with the workforce rate. In 2026, this is considered to be 13 per cent of base salary. In addition, statutory contributions will be made to mandatory pension arrangements in the country in which the Executive Directors are based, in line with local requirements.


	232 Prudential plc Annual Report 2025


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New Directors' remuneration policy continued


Annual bonus Policy for Executive Directors
Purpose	The purpose of the Annual Incentive Plan (AIP) is to provide a competitive package in the markets in which we compete for talent. Payments under the AIP reward the delivery of stretching financial, functional and/or personal objectives which are drawn from the annual business plan measured over a period not exceeding one financial year.
Opportunity	The maximum annual AIP opportunity is up to 250 per cent of salary for Executive Directors. Annual awards are disclosed in the relevant Annual report on remuneration.
Operation	Currently Executive Directors participate in the AIP with payments based on the achievement of financial, functional and/or personal objectives generally assessed over one financial year. Payments under the AIP will normally be made in cash following the end of the performance year unless an Executive Director is yet to meet their share ownership guideline as assessed at the end of the financial year, in which case they will normally be required to defer 40 per cent of their bonus in the form of shares for three years. If a deferral in shares of less than 40 per cent would mean that the Executive Director has met their share ownership guideline, this lower portion would be deferred in shares and the balance would be paid immediately in cash. The Committee retains discretion to vary the proportion of the bonus to be deferred and/or the length of the deferral period. The release of deferred bonus awards is not subject to any further performance conditions. Deferred bonus awards in shares carry the right to accumulate a 'dividend equivalent' amount to reflect the dividends payable on those shares. The amount of the dividend equivalent may assume the re-investment of the relevant dividends in shares.
Determining annual bonus awards	The Committee determines the AIP award for each Executive Director with reference to the performance achieved against approved performance ranges. In making this assessment, the Committee will take into account the personal performance of the Executive Director and the Group’s risk management framework and appetite, as well as other relevant factors. To assist them in their assessment, the Committee considers advice from the Risk Committee on whether results were achieved within the Group’s and businesses’ risk management framework and appetite and to relevant conduct standards. The Committee may adjust the formulaic outcome based on the performance targets to reflect the underlying performance of the Company by applying discretion within the limits of the Policy. The Committee will disclose in the relevant Annual report on remuneration where discretion is used.
Performance measures	The Committee determines the performance conditions and sets annual targets with reference to the business plans approved by the Board. No bonus is payable under the AIP for performance at or below the threshold level, increasing to 100 per cent for achieving or exceeding the maximum level. The weightings of the performance measures for 2026 for the Chief Executive Officer are 80 per cent Group financial measures and 20 per cent personal measures. The Committee retains the discretion to adjust performance conditions and/or targets if events occur (such as a material acquisition and/or divestment of a Group business or the requirements of the Company’s regulators, or a change in prevailing market conditions) which cause the Committee to determine that the measures and/or targets are no longer appropriate and that amendment is required so that they achieve their original purpose.


Long-term incentive Policy for Executive Directors
Purpose	The purpose of the Prudential Long Term Incentive Plan (PLTIP) is to provide a competitive package in the markets in which we compete for talent and to reinforce the community of interest between the Executive Directors and other stakeholders. Specifically, the PLTIP is designed to incentivise the delivery of longer-term business plans; the creation of sustainable long-term returns for shareholders; and the achievement of Group strategic priorities, such as disciplined risk and capital management.
Opportunity	The value of shares awarded under the PLTIP (in respect of any given financial year) may not exceed 550 per cent of the Executive Director’s annual basic salary. On recruitment, any buy out awards will not count towards this limit provided that they replace foregone awards on a like for like basis. Annual awards are disclosed in the relevant Annual report on remuneration. The Committee would seek to consult with major shareholders before making any increase to current award levels.


	233 Prudential plc Annual Report 2025


Long-term incentive Policy for Executive Directors
Operation	Currently, Executive Directors receive PLTIP awards with full vesting only achieved if the Company meets stretching performance targets normally measured over three years. Subject to the Committee’s discretion mentioned below, the extent that performance conditions are not achieved at the end of the three-year performance period, the unvested portion of any award lapses and performance cannot be retested. Wherever possible, the targets attached to PLTIP awards will be disclosed prospectively at the time of the award. Where PLTIP targets are commercially sensitive, they will be published in the Annual Report of the final year of the performance period. The Committee retains the discretion to adjust (including by reducing to nil) the formulaic outcome under the PLTIP if it considers that: (1) the extent to which any performance condition has been met does not reflect the underlying financial or non- financial performance of the participant or any member of the Group over the performance period; or (2) there exists any other reason why an adjustment is appropriate, taking into account such factors as the Committee considers relevant, including the context of circumstances that were unexpected or unforeseen at the date of grant. The Committee will disclose in the relevant Annual report on remuneration where discretion is used. Vested awards are normally also subject to a holding period which usually ends on the fifth anniversary of the award (unless the Committee determines otherwise, in exceptional circumstances, such as an Executive Director passing away). If the Committee so determines, the Company may sell such number of shares under a PLTIP award as is required to satisfy any income tax liability that in respect of a PLTIP award and the 'net of tax' balance of shares will be subject to the holding period. PLTIP awards carry the right to accumulate a 'dividend equivalent' amount to reflect the dividends payable on those shares. The amount of the dividend equivalent may assume the re-investment of the relevant dividends in shares.
Performance measures	The performance conditions applicable to PLTIP awards may be set by reference to financial, non-financial and strategic objectives, and the majority of a PLTIP award will be subject to quantitative targets. The Committee sets targets with reference to the business plans approved by the Board. The achievement of performance at the threshold level results in vesting of 20 per cent of the award, increasing to 100 per cent for achieving the maximum level. The Committee may decide to attach different performance conditions and/or change the conditions’ weighting for future PLTIP awards. Where relevant, the performance conditions attached to each award will be based on the business plans and priorities of the Group and disclosed in the relevant Annual report on remuneration. The Committee considers advice from the Risk Committee on whether results were achieved within the Group’s and businesses’ risk management framework and appetite and to relevant conduct standards. The Committee retains the discretion to adjust performance conditions and/or targets if events occur (such as a material acquisition and/or or the requirements of the Company’s regulators or a change in prevailing market conditions) which cause the Committee to determine that the measures and/or targets are no longer appropriate and that amendment is required so that they achieve their original purpose.

Share ownership guidelines for Executive Directors

It is imperative that the Company’s remuneration arrangements align the interests of Executive Directors and other stakeholders. Share

ownership guidelines reinforce this alignment.


In-employment guidelines	Under the Articles of Association, Executive Directors are required to hold at least 2,500 shares and have one year from their date of appointment to the Board to acquire these. The share ownership guideline for the Chief Executive Officer during their employment is 400 per cent of salary. Executive Directors normally have five years from the later of the date of their appointment or promotion, or the date of an increase in these guidelines, to build this level of ownership. Shares earned and deferred under the AIP are included in calculating the Executive Director’s shareholding for these purposes, as are shares held by members of an Executive Director’s household. Unvested share awards under long-term incentive plans are not included but vested share awards under long-term incentive plans which are subject to a post- vesting holding period are included. Should an Executive Director not meet the share ownership guidelines, the Committee retains the discretion to determine how this should be addressed, taking account of all the prevailing circumstances.
Post-Directorship guidelines	When an Executive Director leaves the Board, they will be required to hold the lower of their actual shareholding on the date of them stepping down from the Board and their in-employment share ownership guideline for a period of two years. The Committee has the discretion to disapply or reduce this requirement in extenuating circumstances, for example if the Executive Director takes up a role with a regulator or for compassionate reasons. This obligation will be implemented by requiring Executive Directors leaving the Board to obtain clearance to deal in the Company’s shares during the two years during which this post-Directorship share ownership guideline applies, in the same way as they must during the time on the Board.


	234 Prudential plc Annual Report 2025


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New Directors' remuneration policy continued

Malus and clawback Policy

The Committee may apply clawback and/or a malus adjustment to variable pay in certain circumstances as set out below and can also delay the

release of awards pending the completion of an investigation which could lead to the application of malus or clawback. Additional malus and/or

clawback provisions may be introduced by the Committee where required to do so by regulatory requirements.


	Circumstances where the Committee may exercise its discretion to apply malus or clawback to an award
Malus Allows deferred cash awards and unvested shares awarded under deferred bonus and LTIP plans to be forfeited or reduced in certain circumstances.	Malus may be applied where there are exceptional circumstances, such as: – a material misstatement in the published results of any member of the Group, for any period during or after the performance period (or if no performance periods are applicable, the vesting period); – an error in the assessment of any applicable performance conditions, the determination of the relevant bonus or the number of shares subject to an award (or where such assessment was based on inaccurate or misleading information); – gross misconduct; – a breach by the Executive Director of any restrictive covenants or other similar undertakings; – where the Executive Director has caused a material financial loss for the Group as a result of (i) reckless, negligent or wilful actions or omissions; or (ii) inappropriate values or behaviour; – where a member of the Group is censured by a regulatory body or suffers significant reputational damage; and – insolvency or corporate failure.
Clawback Allows cash and share awards, including shares subject to the holding period, to be recovered before or after release in certain circumstances.	Clawback may be applied where there are exceptional circumstances, such as the circumstances listed above: – For the PLTIP, at any time before the fifth anniversary of the award date; and – For the AIP, at any time before the fifth anniversary of the end of the bonus performance period.

Notes to the Policy table for Executive Directors

Committee’s judgement

The Committee is required to make judgements when assessing Company and individual performance under the Policy. In addition, the

Committee has discretions under the Company’s share plans, for example, to determine if a leaver should retain their unvested awards (and if so,

the basis on which they are retained) and whether to apply malus or clawback to an award. The exercise of any such discretions during the year

will be reported and explained in the next Annual report on remuneration.

The Committee may approve payments or awards in excess of, in a different form to, or calculated or delivered other than as described above,

where the Committee considers such changes necessary or appropriate in light of regulatory requirements. If these changes are considered by

the Committee to be material, the Company will seek to consult with its major shareholders.

The Committee may make amendments to the rules of the AIP and PLTIP in accordance with the relevant plan rules. The Committee retains the

ability to amend incentive performance conditions or targets if anything happens which causes the Committee to consider it appropriate that

the amended condition will not be materially more or less challenging to satisfy the original conditions.

Key differences between Directors’ remuneration and the remuneration of the wider workforce

Across the Group, remuneration is reviewed regularly with the intention that all employees are paid appropriately in the context of their relevant

market and given their individual skills, experience and performance. The Committee regularly receives information on workforce remuneration

and related policies and takes this into account when determining Executive Director remuneration (for example: it considers salary increase

budgets for the workforce when determining the salaries of Executive Directors).

Legacy payments

The Committee reserves the right to make any remuneration payments and/or payments for loss of office (including exercising any discretion

available to it in connection with such payments) notwithstanding that they are not in line with the Policy set out above where the terms of the

payment were agreed (i) before 15 May 2014 (the date the Company’s first shareholder-approved Policy came into effect); (ii) before this Policy

came into effect, provided that the terms of the payment were consistent with the shareholder-approved Policy in force at the time they were

agreed; or (iii) at a time when the relevant individual was not a Director of the Company and, in the opinion of the Committee, the payment was

not in consideration for the individual becoming or having been a Director of the Company. For these purposes ‘payments’ includes the

Committee satisfying awards of variable remuneration and, in relation to an award over shares, the terms of the payment are ’agreed’ at the

time the award is granted.

Currency and references to ‘shares’

In this Policy, references to shares may include share awards settled in shares listed on any of the stock exchanges where the Company has a

listing. Remuneration may be denominated and paid in any currency the Committee determines.


	235 Prudential plc Annual Report 2025

Scenarios of total remuneration

The chart below provides an illustration of the future total remuneration for the Executive Director in respect of his remuneration opportunity for

2026. Four scenarios of potential outcome are provided based on the assumptions shown in the notes to the chart.

The Committee is satisfied that the maximum potential remuneration of the Executive Director is appropriate. Prudential’s Policy is to offer

Executive Directors remuneration which reflects the performance and experience of the Executive Director, internal relativities and Group

financial and non-financial performance. In order for the maximum total remuneration to be payable:

> Financial performance must exceed the Group’s stretching business plan;

> Relative TSR must be at or above the upper quartile relative to the peer group;

> The business integrity scorecard, aligned to the Group’s strategic priorities, must be fully satisfied;

> Functional and personal performance objectives must be fully met; and

> Performance must be achieved within the Group’s risk framework and appetite.

The fourth scenario below illustrates the maximum potential remuneration (shown in the third scenario) on the assumption that the Company’s

share price grows by 50 per cent over three years.

Scenario Chart - Anil Wadhwani


			$15.65m
		$12.60m	58%
	$8.14m	48%
	45%
		32%	26%
$2.46m	25%
100%	30%	20%	16%


n	Fixed Pay	n	Short-term incentives	n	Long-term incentives

Notes

The scenarios in the chart above have been calculated on the following assumptions:


	Minimum	In line with expectations	Maximum	Share price growth
Fixed pay	– Base salary at 1 January 2026. – Pension allowance for the year has been calculated at 13% of salary in line with this Policy. – Estimated value of other benefits based on amounts paid in 2025.
Annual bonus	No bonus paid	50% of maximum AIP	100% of maximum AIP
Long-term incentives (excludes dividends)	No PLTIP vesting	Vesting of 60% of PLTIP award (midway between threshold and maximum)	Vesting of 100% of PLTIP award	Vesting of 100% of PLTIP award; plus, share price growth of 50 per cent over three years.


	236 Prudential plc Annual Report 2025


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New Directors' remuneration policy continued

Approach to recruitment remuneration

The table below outlines the approach that Prudential will take when recruiting a new Executive Director. This approach would also apply to

internal promotions.

The approach to recruiting a Non-executive Director or a Chair is outlined in the ‘Recruitment of a new Chair or Non-executive Director’ section.


Element	Principles	Potential variations
Base pay	The salary for a new Executive Director will be set using the approach set out in the Fixed pay Policy table.
Benefits and pension	The benefits for a new Executive Director will be consistent with those outlined in the Fixed pay Policy table.
Variable remuneration opportunity	The variable remuneration opportunities for a new Executive Director would be consistent with the limits and structures outlined in the Annual bonus and Long-term incentive plan award Policy tables.
Awards and contractual rights forfeited when leaving previous employer	On joining the Board from within the Group, the Committee may allow an Executive Director to retain any outstanding deferred bonus and/or long-term incentive awards and/or other contractual arrangements that they held on their appointment. These awards (which may have been made under plans not listed in this Policy) would usually remain subject to the original rules, performance conditions and vesting schedule applied to them when they were awarded. If an externally appointed Executive Director forfeits one or more bonuses (including outstanding deferred bonuses) on leaving a previous employer, these payments or awards may be replaced in either cash, or awards of Prudential shares of an equivalent value. Replacement awards will normally be released on the same schedule as the foregone bonuses. If an externally appointed Executive Director forfeits one or more long-term incentive awards on leaving a previous employer, these may be replaced with Prudential awards with an equivalent value. Replacement awards will generally be made under the terms of a long-term incentive plan approved by shareholders, and vest on the same schedule as the foregone awards. Where forgone awards were subject to performance conditions, performance conditions will normally be applied to awards replacing foregone long-term incentive awards; these will usually be the same as those applied to the long-term incentive awards made to Prudential Executive Directors in the year in which the forfeited award was made, the original conditions applied by the previous employer or other performance conditions which the Committee believes are appropriate in the circumstances. Where foregone awards were not subject to performance conditions, performance conditions will not normally be applied to awards replacing them. Replacement awards will normally be subject to malus and clawback. If an externally appointed Executive Director incurs costs or other losses in connection with joining Prudential (such as buying out their notice period with a previous employer at the Company’s request), the Executive Director may be reimbursed, including any tax payable in respect of the costs or losses.	The Committee may consider compensating a newly- appointed Executive Director for other relevant contractual rights forfeited when leaving their previous employer and/or for remuneration foregone as a result of leaving their previous employer. The use of Listing Rule 9.3.2 may be used to facilitate the recruitment of an Executive Director. The Committee does not anticipate using this rule on a routine basis but reserves the right to do so in an exceptional circumstance. For example, this rule may be required if, for any reason, like-for-like replacement awards on recruitment could not be made under existing plans. This provision would only be used to compensate for remuneration forfeited or foregone on leaving a previous employer.


	237 Prudential plc Annual Report 2025

Policy on payment on loss of office


Element	Principles	Potential variations
Notice periods	The Company’s policy is that Executive Directors’ service contracts will not require the Company to give an Executive Director more than 12 months’ notice without prior shareholder approval. A shorter notice period may be offered where this is in line with market practice in an Executive Director’s location. The Company is required to give to, and to receive from, the current Executive Director 12 months’ notice of termination. An Executive Director whose contract is terminated would be entitled to salary and benefits in respect of their notice period. The payment of the salary and benefits would either be phased over the notice period or, alternatively, a payment in lieu of notice may be made. In agreeing the terms of departure for any Executive Director, other than on death or disablement, the Company will have regard to the need to mitigate the costs for the Company, which would normally be reduced or cease if the departing Executive Director secures alternative paid employment during the notice period.	If an Executive Director is dismissed for cause, their contract would be terminated with immediate effect and they would not receive any payments in relation to their notice period. Should an Executive Director die, their estate would not be entitled to receive payments and benefits in respect of their notice period – provisions are made under the Company’s life assurance scheme to provide for this circumstance. Should an Executive Director step down from the Board but remain employed by the Group, they would not receive any payment in lieu of notice in respect of their service as a Director.
Outstanding deferred bonus awards	The treatment of outstanding deferred bonuses will be decided by the Committee, taking into account the circumstances of the departure including the performance of the Executive Director. Deferred bonus awards are normally retained by participants leaving the Company. Awards will usually vest on the original timetable and will not normally be released early on termination. Prior to release, awards remain subject to the malus terms originally applied to them. The clawback provisions will continue to apply.	Any Executive Director dismissed for cause would forfeit all outstanding deferred bonus awards. Should an Executive Director die, outstanding deferred bonus awards will be released as soon as possible after the date of death. In the case of ill health and in other exceptional circumstances, the Committee has the discretion to accelerate the vesting of any outstanding deferred bonus awards. Should an Executive Director step down from the Board but remain employed by the Group, they would retain any outstanding deferred bonus awards. These awards would remain subject to the original rules and vesting schedule applied to them when they were awarded.
Unvested long-term incentive awards	The treatment of unvested long-term incentive awards will be decided by the Committee, taking into account the circumstances of the departure including the performance of the Executive Director. Where an Executive Director is determined to be a good leaver, unvested long-term incentive awards will normally subsist. These awards will ordinarily be pro-rated, unless the Committee determines otherwise, to reflect the proportion of the performance period that has elapsed, and will vest on the original timescale. Awards will remain subject to the original performance conditions assessed over the entire performance period, unless the Committee decides to assess the performance conditions over a shorter period. Good leavers are defined as those who leave as a result of injury or disability, retirement with the approval of the employing company, their employing company or business ceasing to be part of the Group, or in any other circumstances at the discretion of the Committee. Individuals who die in service will also be treated as good leavers. Where an Executive Director is not determined to be a good leaver, unvested long-term incentive awards will lapse on cessation of employment. Awards remain subject to the malus and clawback terms and holding periods originally applied to them.	Any Executive Director dismissed for cause would forfeit all unvested long-term incentive awards. If the Committee has judged that the departing Executive Director should retain their unvested long-term incentive awards with the expectation that: – the Executive Director is retiring from their professional executive career; and/or – the Executive Director will not be seeking to secure alternative employment with another organisation of comparable size as the Company or that is within the financial services sector, the Committee retains the power to lapse all unvested long- term incentive awards should the Committee deem that the Executive Director has subsequently secured similar paid executive employment elsewhere. On death, disablement and in other exceptional circumstances, the Committee has discretion to release unvested long-term incentive awards earlier than the end of the vesting period. The malus and clawback provisions would continue to apply. Should an Executive Director step down from the Board but remain employed by the Group, they would retain any outstanding long-term incentive awards which they held on their change of role. These awards would remain subject to the original rules, performance conditions and vesting schedule.


	238 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

New Directors' remuneration policy continued

Policy on payment on loss of office continued


Element	Principles	Potential variations
Vested long- term incentive awards, subject to the holding period	The treatment of vested long-term incentive awards within their holding period will be decided by the Committee, taking into account the circumstances of the departure. Executive Directors will normally retain their vested long-term incentive awards that remain subject to the holding period. Normally these awards will remain subject to the holding period and be released in accordance with the original timescale. Awards remain subject to the malus and clawback terms originally applied to them.	Any Executive Director dismissed for cause would normally forfeit vested long-term incentive awards. On death, disablement and in other exceptional circumstances, the Committee has discretion to release vested long-term incentive awards earlier than the end of the holding period. The malus and clawback provisions would continue to apply. Should an Executive Director step down from the Board but remain employed by the Group, they would retain any vested long-term incentive awards that remain subject to the holding period. These awards would remain subject to the original rules and release schedule applied to them when they were awarded (ie the holding period will continue to apply).
Bonus for final year of service	The payment of any bonus for the final year of service will be decided by the Committee, giving full consideration to the circumstances of the departure including the performance of the Executive Director. The Committee may award a departing Executive Director a bonus which will usually be pro-rated to reflect the portion of the final financial year in which they served which had elapsed on the last day that they worked. Any such bonus would normally be calculated with reference to financial, functional and/or personal performance measures in the usual way. If appropriate, the Committee may, at its discretion waive any requirement for a portion of the final bonus to be deferred.	Any Executive Director dismissed for cause would not be eligible for any bonus that has not been paid. Should an Executive Director die, or in any other exceptional circumstances (such as an Executive Director’s terminal illness), whilst serving as an employee, a time pro-rated bonus may be awarded. In such circumstances, deferral will not be applied and the payment will be made wholly in cash. The Committee may decide to award an Executive Director stepping down from the Board but remaining with the Group a bonus pro-rated to reflect the portion of the financial year which had elapsed on the date of their change of role. This would be calculated with reference to financial, functional and/or personal performance measures in the usual way. The Committee may determine that a portion of such a bonus must be deferred.
Other payments	Consistent with other employees, Executive Directors may receive payments to compensate them for the loss of employment rights on termination. Payments may include: – A nominal amount for agreeing to non-solicitation and confidentiality clauses; – Directors and Officers insurance cover for a specified period following the Executive Director’s termination date; – Payment for outplacement services; – Statutory redundancy payments or gratuities (where applicable); – Reimbursement of legal fees; – Support with preparation of tax returns; and – Repatriation assistance. The Committee reserves the right to make additional exit payments where such payments are made in good faith: – In discharge of an existing legal obligation (or by way of damages for breach of such an obligation); or – By way of settlement or compromise of any claim arising in connection with the termination of a Director’s office or employment.
Post- Directorship guidelines	– When an Executive Director leaves the Board, they will be subject to post-cessation share ownership guidelines. – Further details are included in the section on ‘Share ownership guidelines for Executive Directors’.


	239 Prudential plc Annual Report 2025

Policy on corporate transactions


	Treatment
Deferred AIP Awards	In the event of a corporate transaction (eg takeover, material merger, or demerger, winding up etc.), the Committee will determine whether awards will:
	– Vest; and/or – Continue in accordance with the rules of the plan; and/or – Lapse and, in exchange, the participant will be granted an award under any other share or cash incentive plan which the Committee considers to be broadly equivalent to the award.
Long-term incentive awards	In the case of a corporate transaction (e.g. takeover, material merger, or demerger, winding up etc.), the Committee will determine whether awards will:
	– Be exchanged for replacement awards (either in cash or shares) of equal value unless the Committee and successor company agree that the original award will continue; or – Vest (to the extent determined by the Committee).
	Where awards vest, the Committee will have regard to (i) the performance of the Company, (ii) unless the Committee determines otherwise, the proportion of the performance period that has elapsed and (iii) any other matter that the Committee considers relevant or appropriate. Vested awards will normally be released from any relevant holding period.

Service contracts

Executive Directors’ service contracts provide details of the broad types of remuneration to which they are entitled, and about the kinds of plans

in which they may be invited to participate. The service contracts offer no certainty as to the value of performance-related reward and confirm

that any variable payment will be at the discretion of the Company.

A copy of the service contract between the Prudential Group and the Executive Director is available for inspection at Prudential’s registered office

during normal hours of business and will also be available at any General Meeting of the Company. Details of the duration of Executive Directors’

service contracts are set out in the ‘Directors’ terms of employment and external appointments’ section of the Annual report on remuneration.

Statement of consideration of conditions elsewhere in the Company

Across the Group, remuneration is reviewed regularly with the intention that all employees are paid appropriately in the context of their local

market and given their individual skills, experience and performance. Each business' salary increase budget is set with reference to local market

conditions. The Committee considers salary increase budgets across the workforce when determining the salaries of Executive Directors.

Prudential does not specifically consult with employees when setting the Policy: Prudential is a global organisation with employees and agents in

multiple businesses and geographies. The Board has mechanisms for engagement by Non-executive Directors to gather employees’ views on a

range of topics and for these views to be represented to the Board. As many employees are also shareholders, they are able to participate in

binding votes on the Policy and annual advisory votes on the Annual report on remuneration. The remuneration principles that apply to Executive

Directors are cascaded to employees as appropriate. We are committed to being fully transparent about our executive remuneration

arrangements and have an internal microsite dedicated to executive pay.

Statement of consideration of shareholder views

The Committee and the Company undertake regular consultation with key institutional investors on the Policy and its implementation. This

engagement is led by the Committee Chair and is an integral part of the Company’s investor relations programme. The Committee is grateful to

shareholders for the feedback that is provided and takes this into account when determining executive remuneration.


	240 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

New Directors' remuneration policy continued

Remuneration Policy for Non-executive Directors and the Chair


	Fees	Benefits	Share Ownership Guidelines
Non-executive Directors	All Non-executive Directors receive a basic fee for their duties as a Board member. Additional fees are paid for added responsibilities such as Chairship and membership of committees, acting as the Senior Independent Director or carrying out any other role determined by the Board from time to time. Fees may be denominated and paid in any currency the Board Committee determines and are paid to Non-executive Directors subject to any appropriate deductions. A portion of the fees may be delivered in shares without performance conditions, based on the market value of the shares, if the Board deems that this is appropriate. The basic and additional fees are usually reviewed annually by the Board with any changes normally effective from 1 July. In determining the level of fees, the Board considers factors including:	Non-executive Directors do not currently receive benefits or a pension allowance or participate in the Group’s employee pension schemes. Non-executive Directors receive reimbursed business expenses (including any relevant tax liability, banking fees and any other reasonable fees for professional services such as legal, tax, property and financial advice) incurred when travelling overseas in performance of duties or due to the Company’s corporate structure. If as a consequence of the Company’s corporate structure, Non-executive Directors are required to prepare personal tax returns in Hong Kong and/or the UK, in addition to preparing their personal tax return for the jurisdiction which is their place of residence, the Company will reimburse the costs of personal tax return preparation for whichever locations are not their place of residence (including payment of any tax cost associated with the provision of the benefit).	Under the Articles of Association, Non-executive Directors are required to hold at least 2,500 shares and have one year, from their date of appointment to the Board, to acquire these. It is further expected that Non-executive Directors will hold shares with a value equivalent to one times the annual basic fee (excluding additional fees for Chairship and membership of any committees). Non-executive Directors will normally be expected to attain this level of share ownership within three years of their date of appointment.
	– The time commitment and other requirements of the role; – Group financial performance; – Salary increases for all employees; and – Market data.
	If, in a particular year, the number of meetings and/or time commitment is materially greater than usual, the Company may determine that the provision of additional fees in respect of that year is fair and reasonable. Should a new committee or working group be formed, or the remit of an existing committee (for which duties were previously paid or unpaid) be materially expanded, or a new Non- executive Director role established, the new or additional fees paid for acting as the chair or a member of the committee will be commensurate with the new or additional responsibilities and time commitment involved. The fees paid to Non-executive Directors in aggregate will not exceed the limit specified by the Articles of Association. Non-executive Directors are not eligible to participate in annual bonus plans or long-term incentive plans.


	241 Prudential plc Annual Report 2025

Remuneration Policy for Non-executive Directors and the Chair continued


	Fees	Benefits	Share Ownership Guidelines
Chair	The Chair receives an annual fee for the performance of their role. This fee is agreed by the Committee. The fee may be denominated and paid in any currency the Committee determines and is paid to the Chair subject to any appropriate deductions. A portion of the fee may be delivered to the Chair in shares without performance conditions, based on the market value of the shares, if the Committee deems this to be appropriate. On appointment, the fee may be fixed for a specified period of time. Following the fixed period (if applicable) this fee will normally be reviewed annually. Any changes in the fee are usually effective from 1 July. In determining the level of the fee for the Chair, the Committee considers factors including:	The Chair may be offered benefits including:	Under the Articles of Association, the Chair is required to hold at least 2,500 shares and has one year, from their date of appointment to the Board, to acquire these. The Chair has a share ownership guideline. This is currently one times the annual fee and it is normally expected that this level of share ownership would be attained within five years of the date of appointment.
		– Health and wellness benefits; – Protection and security benefits; – Transport benefits; – Reimbursement of business expenses (including any relevant tax liability, banking fees and any other reasonable fees for professional services such as legal, tax, property and financial advice) incurred when travelling overseas in performance of duties or due to the Company’s corporate structure; and – Relocation and location-specific benefits (where appropriate).
		If as a consequence of the Company’s corporate structure, the Chair is required to prepare personal tax returns in Hong Kong and/ or the UK, in addition to preparing their personal tax return for the jurisdiction which is their place of residence, the Company may reimburse the costs of personal tax return preparation for whichever locations are not their place of residence (including payment of any tax cost associated with the provision of the benefit). The maximum paid will be the cost to the Company of providing these benefits. The Chair is not eligible to receive a pension allowance or to participate in the Group’s employee pension schemes.
	– The time commitment and other requirements of the role; – The performance and experience of the Chair; – Internal relativities; – Company financial performance; and – Market data.
	The Chair is not eligible to participate in annual bonus plans or long-term incentive plans.

Recruitment of a new Non-executive Director or Chair

The fees for a new Non-executive Director will be consistent with the current basic fee paid to other Non-executive Directors (as set out in the

Annual report on remuneration for that year) and will be reflective of their additional responsibilities as chair and/or members of Board

committees and any additional roles that they perform.

The fee for a new Chair will be set with reference to the time commitment and other requirements of the role and the experience of the

candidate, as well as internal relativities among the other Executive and Non-executive Directors. To provide context for this decision, data would

be sought for suitable market reference point(s).

Notice periods – Non-executive Directors and Chair

Non-executive Directors are appointed pursuant to letters of appointment with notice periods of six months without liability for compensation. A

contractual notice period of 12 months by either party applies for the current Non-executive Chair. The notice period for a new Chair may be set

at six months. The Chair and Non-executive Directors would not be entitled to any payments for loss of office. Details of the individual

appointments of the Chair and Non-executive Directors are set out in the ‘Letters of appointment of the Chair and Non-executive Directors’

section of the Annual report on remuneration.

For information on the terms of appointment for the Chair and Non-executive Directors, please see the Nomination & Governance Committee

report.


	242 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Additional remuneration disclosures

Directors’ outstanding long-term incentive awards and other share awards

The table below sets out the Chief Executive Officer’s PLTIP awards. The Company operates a number of share schemes and plans, which are

described in more detail in note I(v) of the Additional financial information section.

Share-based long-term incentive awards


	Plan name	Year of award	Conditional share awards outstanding at 1 Jan 2025 (Number of shares)	Conditional awards in 2025 (Number of shares)	Market price at date of award (HK dollars)	Dividend equivalents on vested shares (Number of shares released)	Rights exercised in 2025	Rights lapsed in 2025	Conditional share awards outstanding at 31 December 2025 (Number of shares)	Date of end of performance period
Anil Wadhwani
	PLTIP	2023	438,098	–	107.4	–	–	–	438,098	31 Dec 25
	PLTIP	2024	697,317		75.1	–	–	–	697,317	31 Dec 26
	PLTIP	2025	–	635,353	82.75	–	–	–	635,353	31 Dec 27
			1,135,415	635,353		–	–	–	1,770,768

Other share awards

The table below sets out the Chief Executive Officer’s deferred bonus share awards.


	Year of grant	Conditional share awards outstanding at 1 Jan 2025 (Number of shares)	Conditionally awarded in 2025 (Number of shares)	Dividends accumulated in 2025¹ (Number of shares)	Shares released in 2025 (Number of shares)	Conditional share awards outstanding at 31 December 2025 (Number of shares)	Date of end of restricted period	Date of release	Market price at date of award (HK dollars)	Market price at date of vesting or release (HK dollars)
Anil Wadhwani
Deferred 2023 annual incentive award	2023	34,232	–	675	–	34,907	31 Dec 25		114.3
Deferred 2024 annual incentive award	2024	132,790	–	2,623	–	135,413	31 Dec 26		75.1
Deferred 2025 annual incentive award	2025	–	106,435	2,102		108,537	31 Dec 27		82.8
		167,022	106,435	5,400	–	278,857

Note

(1) A dividend equivalent was accumulated on these awards.

Dilution

Releases from the Prudential Long Term Incentive Plan and the Prudential Agency Long Term Incentive Plan are satisfied using newly issued

shares rather than by purchasing shares in the open market. Shares relating to options granted under all-employee share plans are also satisfied

by newly issued shares. The combined dilution from all outstanding shares and options at 31 December 2025 was 0.13 per cent of the total

share capital at the time. Deferred bonus awards will continue to be satisfied by the purchase of shares in the open market.

Remuneration of the five highest-paid individuals and the remuneration of senior management

In line with the requirements of the Stock Exchange of Hong Kong Limited, the following table sets out, on an aggregate basis, the annual

remuneration of i) the five highest-paid employees, and ii) senior management for the year ended 31 December 2025.

Of the five individuals with the highest emoluments in 2025, one was the Chief Executive Officer, whose emoluments are disclosed in this report.

The aggregate of the emoluments of the other four individuals for 2025 are set out in the table below. Senior management comprised the Chief

Executive Officer and members of the Group Executive Committee. The table sets out the aggregate of the emoluments paid to the senior

management team:


	Five highest paid		Senior management
Components of remuneration	HKD000	$000	HKD000	$000
Base salaries, allowances and benefits in kind	28,103	3,605	87,375	11,208
Pension contribution	4,257	546	11,920	1,529
Performance-related pay	87,119	11,175	194,254	24,917
Payments made on appointment	10,380	1,331	23,834	3,057
Payments made on separation	–	–	–	–
Total ¹	129,859	16,657	317,383	40,711


	243 Prudential plc Annual Report 2025

Their emoluments for 2025 were within the following bands:


		Number of employees
Remuneration band HKD	Remuneration band USD equivalent	Five highest paid ²	Senior management
5,000,001 - 5,500,000	641,400 - 705,500		1
7,500,001 - 8,000,000	962,000 - 1,026,200		1
13,500,001 - 14,000,000	1,731,700 - 1,795,800		1
17,500,001 - 18,000,000	2,244,700 - 2,308,900		2
18,000,001 - 18,500,000	2,308,900 - 2,373,000		1
19,500,001 - 20,000,000	2,501,300 - 2,565,400		1
22,000,001 - 22,500,000	2,822,000 - 2,886,100		1
24,500,001 - 25,000,000	3,142,600 - 3,206,800		1
25,500,001 - 26,000,000	3,270,900 - 3,335,000	2	1
34,500,001 - 35,000,000	4,425,300 - 4,489,500	1	1
44,000,001 - 44,500,000	5,643,900 - 5,708,100	1	1
66,500,001 - 67,000,000	8,530,000 - 8,594,200		1

Notes

(1) Further details on the payments made to senior management can be found in note B2.3 to the IFRS financial statements.

(2) Excludes the Chief Executive Officer, whose remuneration is disclosed in this report.


	244 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Financial statements



246	Index to Group IFRS financial statements
335	Parent company financial statements
340	Statement of Directors' responsibilities
341	Independent auditor's report to Prudential plc


	245 Prudential plc Annual Report 2025


	246 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Group IFRS financial statements


Section			Page
Consolidated income statement			247
Consolidated statement of comprehensive income			248
Consolidated statement of changes in equity			249
Consolidated statement of financial position			250
Consolidated statement of cash flows			251


Section			Page
Notes to the financial statements
A		Basis of preparation and accounting policies	252
A1		Basis of preparation and exchange rates	252
A2		New accounting pronouncements not yet effective	253
A3		Critical accounting policies, estimates and judgements	253

B		Earnings performance	261
B1		Analysis of performance by segment	261
	B1.1	Segment results	261
	B1.2	Determining operating segments and performance measure of operating segments	262
	B1.3	Analysis of adjusted operating profit by driver	263
	B1.4	Revenue	265
	B1.5	Net insurance and reinsurance finance income (expense)	268
	B1.6	Additional segmental analysis of adjusted operating profit after tax and reconciliation to profit after tax	268
B2		Insurance service expenses and other expenditure	268
	B2.1	Staff and employment costs	269
	B2.2	Share-based payment	269
	B2.3	Key management remuneration	272
	B2.4	Fees payable to the auditor	272
B3		Tax charge	272
	B3.1	Total tax charge by s egment	273
	B3.2	Reconciliation of effective tax rate	274
B4		Earnings per share	275
B5		Dividends	276

C		Financial Position	277
C1		Group assets and liabilities	277
	C1.1	Group investments by business type	277
	C1.2	Other assets and liabilities	280
	C1.3	Cash and cash equivalents	280
	C1.4	Provisions	280
C2		Measurement of financial assets and liabilities	281
	C2.1	Determination of fair value	281
	C2.2	Fair value measurement hierarchy	282
	C2.3	Additional information on financial instruments	284


Section			Page
C3		Insurance and reinsurance contracts	288
	C3.1	Group overview	288
	C3.2	Analysis of movements in insurance and reinsurance contract balances (excluding JVs and associates)	290
	C3.3	Analysis of movements in insurance and reinsurance contract balances (including JVs and associates)	296
	C3.4	Products and determining contract liabilities	304
C4		Intangible assets	309
	C4.1	Goodwill	309
	C4.2	Other intangible assets	310
C5		Borrowings	310
	C5.1	Core structural borrowings of shareholder- financed businesses	310
	C5.2	Operational borrowings	311
C6		Risk and sensitivity analysis	311
	C6.1	Sensitivity to key market risks	312
	C6.2	Sensitivity to insurance risks	313
C7		Tax assets and liabilities	315
	C7.1	Current tax	315
	C7.2	Deferred tax	315
C8		Share capital, share premium and own shares	316
C9		Capital	317
	C9.1	Group objectives, policies and processes for managing capital	317
	C9.2	Local capital regulations	318
	C9.3	Transferability of capital resources	319
C10		Property, plant and equipment	319

D		Other information	321
D1		Contingencies and related obligations	321
D2		Ownership interest in Prudential Assurance Malaysia Berhad	321
D3		Post balance sheet events	321
D4		Related party transactions	322
D5		Commitments	322
D6		Investments in subsidiary undertakings, joint ventures and associates	322
	D6.1	Basis of consolidation	322
	D6.2	Dividend restrictions and minimum capital requirements	324
	D6.3	Investment in joint ventures and associates	324
	D6.4	Related undertakings	326


	247 Prudential plc Annual Report 2025

Consolidated income statement


	Note	2025 $m	2024 $m
Insurance revenue	B1.4	11,080	10,358
Insurance service expense:
Claims incurred		(3,331)	(3,147)
Directly attributable expenses incurred		(1,455)	(1,328)
Amortisation of insurance acquisition cash flows		(3,435)	(3,157)
Other insurance service expenses		(23)	(131)
		(8,244)	(7,763)
Net expense from reinsurance contracts held		(212)	(302)
Insurance service result		2,624	2,293
Investment return:
Interest revenue calculated using the effective interest method		413	477
Other investment return on financial investments		15,851	5,442
	B1.4	16,264	5,919
Fair value movements on investment contract liabilities		(72)	(95)
Net insurance and reinsurance finance income (expense):
Net finance expense from insurance contracts	B1.5	(14,612)	(4,154)
Net finance expense from reinsurance contracts held	B1.5	(159)	(338)
		(14,771)	(4,492)
Net investment result		1,421	1,332
Other revenue	B1.4	411	382
Non-insurance expenditure	B2	(1,031)	(1,003)
Finance costs: interest on core structural borrowings of shareholder-financed businesses		(183)	(171)
Gain (loss) attaching to corporate transactions	B1.1	1,515	(71)
Share of profit from joint ventures and associates, net of related tax	D6.3	364	477
Profit before tax (being tax attributable to shareholders’ and policyholders’ returns) ^note		5,121	3,239
Tax charge attributable to policyholders' returns		(180)	(286)
Profit before tax attributable to shareholders' returns		4,941	2,953
Total tax charge attributable to shareholders' and policyholders' returns	B3.1	(1,002)	(824)
Remove tax charge attributable to policyholders' returns	B3.2	180	286
Tax charge attributable to shareholders' returns	B3.2	(822)	(538)
Profit for the year	B1.6	4,119	2,415

Attributable to:
Equity holders of the Company		3,978	2,285
Non-controlling interests		141	130
Profit for the year		4,119	2,415


Earnings per share (in cents)	Note	2025	2024
Based on profit attributable to equity holders of the Company:	B4
Basic		154.2¢	84.1¢
Diluted		153.5¢	84.0¢

Note

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.


	248 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Consolidated statement of comprehensive income


	2025 $m	2024 $m
Profit for the year	4,119	2,415
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss:
Exchange translation movements and net investment hedges	524	(291)
Cumulative exchange loss of disposed businesses recycled through profit or loss	34	–
	558	(291)
Total comprehensive income for the year	4,677	2,124

Attributable to:
Equity holders of the Company	4,421	1,976
Non-controlling interests	256	148
Total comprehensive income for the year	4,677	2,124


	249 Prudential plc Annual Report 2025

Consolidated statement of changes in equity


		Year ended 31 Dec 2025 $m
	Note	Share capital	Share premium	Capital redemption reserve	Retained earnings	Translation reserve	Share- holders' equity	Non- controlling interests	Total equity
Reserves
Profit for the year		–	–	–	3,978	–	3,978	141	4,119
Other comprehensive income		–	–	–	–	443	443	115	558
Total comprehensive income for the year		–	–	–	3,978	443	4,421	256	4,677
Transactions with owners of the Company
Dividends	B5	–	–	–	(623)	–	(623)	(91)	(714)
Effect of scrip dividends	C8	–	–	–	29	–	29	–	29
Reserve movements in respect of share-based payments		–	–	–	11	–	11	–	11
Effect of transactions relating to non-controlling interests		–	–	–	28	–	28	(104)	(76)
New share capital subscribed	C8	–	2	–	–	–	2	–	2
Share repurchases/buybacks	C8	(7)	–	7	(1,234)	–	(1,234)	–	(1,234)
Movement in own shares in respect of share-based payment plans		–	–	–	(9)	–	(9)	–	(9)
Net (decrease) increase in equity		(7)	2	7	2,180	443	2,625	61	2,686
Balance at beginning of year		176	5,009	7	11,906	394	17,492	1,182	18,674
Balance at end of year		169	5,011	14	14,086	837	20,117	1,243	21,360


		Year ended 31 Dec 2024 $m
	Note	Share capital	Share premium	Capital redemption reserve	Retained earnings	Translation reserve	Share- holders' equity	Non- controlling interests	Total equity
Reserves
Profit for the year		–	–	–	2,285	–	2,285	130	2,415
Other comprehensive (loss) income		–	–	–	–	(309)	(309)	18	(291)
Total comprehensive income (loss) for the year		–	–	–	2,285	(309)	1,976	148	2,124
Transactions with owners of the Company
Dividends	B5	–	–	–	(575)	–	(575)	(8)	(583)
Effect of scrip dividends	C8	–	–	–	23	–	23	–	23
Reserve movements in respect of share-based payments		–	–	–	1	–	1	–	1
Adjustment to non-controlling interest for Malaysia conventional life business on 1 January 2024	D2	–	–	–	(857)	–	(857)	886	29
Effect of transactions relating to other non- controlling interests		–	–	–	(18)	–	(18)	(4)	(22)
Share repurchases/buybacks	C8	(7)	–	7	(878)	–	(878)	–	(878)
Movement in own shares in respect of share-based payment plans		–	–	–	(3)	–	(3)	–	(3)
Net (decrease) increase in equity		(7)	–	7	(22)	(309)	(331)	1,022	691
Balance at beginning of year		183	5,009	–	11,928	703	17,823	160	17,983
Balance at end of year		176	5,009	7	11,906	394	17,492	1,182	18,674


	250 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Consolidated statement of financial position


	Note	31 Dec 2025 $m	31 Dec 2024 $m
Assets
Goodwill	C4.1	902	848
Other intangible assets	C4.2	3,958	3,824
Property, plant and equipment	C10	530	417
Insurance contract assets	C3.1	1,816	1,345
Reinsurance contract assets	C3.1	3,406	3,390
Deferred tax assets	C7.2	119	142
Current tax recoverable	C7.1	77	31
Investments in joint ventures and associates accounted for using the equity method	D6.3	2,763	2,412
Investment properties	C1.1	3	3
Loans	C1.1	551	517
Equity securities and holdings in collective investment schemes ^note	C1.1	89,558	81,002
Debt securities ^note	C1.1	92,051	73,804
Derivative assets	C2.2	621	395
Deposits	C1.1	6,246	5,466
Accrued investment income	C1.2	1,071	902
Other debtors	C1.2	817	1,310
Assets held for sale		–	296
Cash and cash equivalents	C1.3	7,706	5,772
Total assets		212,195	181,876

Equity
Shareholders' equity		20,117	17,492
Non-controlling interests		1,243	1,182
Total equity		21,360	18,674

Liabilities
Insurance contract liabilities	C3.1	174,498	147,566
Reinsurance contract liabilities	C3.1	640	536
Investment contract liabilities without discretionary participation features	C2.2	715	748
Core structural borrowings of shareholder-financed businesses	C5.1	4,459	3,925
Operational borrowings	C5.2	831	797
Obligations under funding, securities lending and sale and repurchase agreements	C2.3	745	272
Net asset value attributable to unit holders of consolidated investment funds	C2.3	2,263	2,679
Deferred tax liabilities	C7.2	1,830	1,514
Current tax liabilities	C7.1	273	238
Accruals, deferred income and other creditors	C1.2	2,731	2,848
Provisions	C1.4	268	218
Derivative liabilities	C2.2	1,582	1,617
Liabilities held for sale		–	244
Total liabilities		190,835	163,202
Total equity and liabilities		212,195	181,876

Note

Included within equity securities and holdings in collective investment schemes and debt securities as at 31 December 2025 are $1,798 million of lent securities and assets

subject to repurchase agreements (31 December 2024: $1,565 million).

The parent company statement of financial position is presented on page 335.

The consolidated financial statements on pages 247 to 334 were approved by the Board of Directors on 17 March 2026 and signed on its behalf

by:

Shriti Vadera Anil Wadhwani

ChairChief Executive Officer


	251 Prudential plc Annual Report 2025

Consolidated statement of cash flows


	Note	2025 $m	2024 $m
Cash flows from operating activities
Profit before tax (being tax attributable to shareholders' and policyholders' returns)		5,121	3,239
Movements in operating assets and liabilities:
Investments		(23,698)	(6,403)
Other non-investment and non-cash assets		24	124
Insurance and reinsurance contract assets and liabilities		22,660	7,925
Other non-insurance liabilities		(330)	(1,440)
Other adjustments to profit before tax for non-cash movements:
Interest and dividend income and interest payments included in profit before tax		(5,482)	(5,180)
Other non-cash items included in profit before tax		(880)	603
Operating cash items:
Interest receipts		3,416	3,049
Interest payments		(61)	(75)
Dividend receipts		2,198	2,316
Tax paid		(518)	(549)
Net cash flows from operating activities ^{note (i)}		2,450	3,609
Cash flows from investing activities
Purchases of property, plant and equipment	C10	(104)	(101)
Disposal of property, plant and equipment		4	–
Acquisition of distribution rights and other intangibles		(297)	(557)
Disposal of businesses, net of associated tax ^{note (ii)}		1,485	–
Cash advanced to Mainland China life joint venture ^{note (i)}		–	(174)
Net cash flows from investing activities		1,088	(832)
Cash flows from financing activities
Structural borrowings of shareholder-financed businesses: ^{note (iii)}
Issuance of debt, net of costs	C5.1	462	–
Interest paid		(176)	(164)
Payment of principal portion of lease liabilities		(95)	(93)
Acquisition of non-controlling interests		–	(18)
Equity capital:
Issues of ordinary share capital	C8	2	–
Share repurchases/buybacks (including costs)		(1,252)	(860)
External dividends:
Dividends paid to equity holders of the Company	B5	(594)	(552)
Dividends paid to non-controlling interests		(91)	(8)
Net cash flows from financing activities		(1,744)	(1,695)
Net increase in cash and cash equivalents		1,794	1,082
Cash and cash equivalents at 1 Jan		5,772	4,751
Effect of exchange rate changes on cash and cash equivalents		140	(61)
Cash and cash equivalents at 31 Dec	C1.3	7,706	5,772

Notes

(i) Included in net cash flows from operating activities are dividends from joint ventures and associates of $180 million (2024: $148 million). Cash advanced to the Mainland

China life joint venture in 2024 of $174 million has subsequently been converted into a capital injection in 2025.

(ii) Cash flows from disposal of businesses in 2025 comprise the net proceeds from the sale of a portion of the Group’s interest in ICICI Prudential Asset Management

Company Limited during the company’s initial public offering (IPO) in December 2025, as discussed further in note D6.3, and the net proceeds from the disposal of

businesses classified as held for sale at 31 December 2024. Total tax paid of $(750) million in 2025 was included in net cash flows from operating activities and net cash

flows from investing activities.

(iii) 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 changes in the

carrying value of the structural borrowings of shareholder-financed businesses for the Group are analysed below:


	Balance at 1 Jan $m	Cash movements $m	Non-cash movements $m		Balance at 31 Dec $m
	Balance at 1 Jan $m	Issuance of debt	Foreign exchange movement	Other movements	Balance at 31 Dec $m
2025	3,925	462	65	7	4,459
2024	3,933	–	(15)	7	3,925


	252 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements

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 in Greater China, ASEAN, India 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 2025, there were no unadopted standards effective for the year ended 31 December 2025

which impacted 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 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 2024 as disclosed in the 2024 Annual

Report. The adoption of the amendments to IAS 21 ‘Lack of exchangeability’ effective from 1 January 2025 has had no impact on the Group

financial statements.

The parent company statement of financial position prepared in accordance with the UK Generally Accepted Accounting Practice (including

Financial Reporting Standard 101 ‘Reduced Disclosure Framework’) is presented on page 335.

Going concern basis of accounting

The Directors have made an assessment of going concern covering a period to 31 March 2027, being at least 12 months from the date these

consolidated financial statements and the parent company 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 (including the Viability statement).

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 2027, being at least 12 months from the date these consolidated financial statements and the parent

company 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 and the parent company financial statements for the year

ended 31 December 2025.

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 2025	31 Dec 2024	2025	2024
Chinese yuan (CNY)	6.99	7.30	7.19	7.20
Hong Kong dollar (HKD)	7.78	7.77	7.80	7.80
Indian rupee (INR)	89.88	85.61	87.17	83.67
Indonesian rupiah (IDR)	16,675.00	16,095.00	16,462.13	15,844.88
Malaysian ringgit (MYR)	4.06	4.47	4.28	4.58
Singapore dollar (SGD)	1.29	1.36	1.31	1.34
Taiwan dollar (TWD)	31.42	32.78	31.16	32.12
Thai baht (THB)	31.49	34.24	32.87	35.29
UK pound sterling (GBP)	0.74	0.80	0.76	0.78
Vietnamese dong (VND)	26,300.00	25,485.00	26,008.80	25,057.63


	253 Prudential plc Annual Report 2025

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.

Certain notes to the consolidated financial statements present comparative information at constant exchange rates (CER), in addition to the

reporting at actual exchange rates (AER) used throughout the consolidated financial statements. AER are actual historical exchange rates for the

specific accounting year, being the average rates over the year for the income statement and the closing rates at the balance sheet date for the

statement of financial position. CER results are calculated by translating prior year results using the current year foreign exchange rate, ie current

year average rates for the income statement and current year closing rates for the statement of financial position. In a period of currency

volatility, this alternative performance measure allows an assessment of underlying results and business trends.

A2 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 2025. 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 9 and IFRS 7 ‘Classification and Measurement of Financial Instruments’ issued in May 2024 and effective from 1

January 2026;

– Annual Improvements to IFRS Accounting Standards – Volume 11 issued in July 2024 and effective from 1 January 2026;

– IFRS 18 ‘Presentation and disclosure in financial statements’ issued in April 2024 and effective from 1 January 2027; and

– Amendments to IAS 21 ‘Translation to a Hyperinflationary Presentation Currency’ issued in November 2025 and effective from 1 January

2027.

The Group is assessing the impact IFRS 18 will have on the presentation and disclosure in the Group’s financial statements. The Group is not

expecting the other accounting amendments listed above to have a significant impact on the Group’s financial statements.

A3 Critical accounting policies, estimates and judgements

This note presents the critical accounting policies, estimates and judgements applied in preparing the Group’s consolidated financial statements.

Other accounting policies, where significant, are presented in the relevant individual notes. Unless stated otherwise, all accounting policies are

applied consistently for the years presented and normally are not subject to changes unless new accounting standards, interpretations or

amendments are introduced by the IASB as discussed in note A1 above.

The preparation of these consolidated financial statements requires Prudential to make accounting estimates and judgements about the

amounts of assets, liabilities, revenues and expenses, which are both recognised and unrecognised (eg contingent liabilities) in the consolidated

financial statements. Prudential evaluates its critical accounting estimates, including those related to insurance business provisioning and the fair

value of assets as required. The notes below set out those critical accounting policies, the application of which requires the Group to make critical

estimates and judgements. Also set out are further critical accounting policies affecting the presentation of the Group’s results and other items

that require the application of critical estimates and judgements.

(a) Critical accounting policies with associated critical estimates and judgements – Measurement of insurance

and reinsurance contracts under IFRS 17

IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and

investment contracts with discretionary participation features (DPF). 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 (RA) for non-financial risk and a contractual service margin (CSM). The process of determining the present value of future cash flows

involves a number of estimates and judgements, which are set out below.


	254 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Determination of fulfilment cash flows used in the measurement of insurance and reinsurance contract assets and liabilities (impacts $(144.7) billion of net best estimate 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 TEV 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 include 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 C6.2.
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 variable fee approach (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.


	255 Prudential plc Annual Report 2025


Determination of fulfilment cash flows used in the measurement of insurance and reinsurance contract assets and liabilities (impacts $(144.7) billion of net best estimate insurance and reinsurance contract balances, excluding those held by joint ventures and associates)
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.
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 that 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 that has the longest contract boundary. Future cash flows relating to riders that 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.


	256 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


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 risk of downgrades and defaults. The allowance for credit risk ranges between 6 bps and 32 bps at 31 December 2025 (31 December 2024: between 10 bps and 34 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. These discount rates include the illiquidity premium applied to the portfolios written in each currency. A range is shown to represent the fact that different products apply different proportions of the reference portfolio’s illiquidity premium (either 0% , 50% or 100%). The ranges below reflect only the actual proportions applied for each currency. For the major currencies shown below, except Hong Kong dollar and Malaysian ringgit, all three proportions apply and hence the spread is indicative of the illiquidity premium applying to the term specified.


	31 Dec 2025 %
	1 year	5 years	10 years	15 years	20 years
Chinese yuan (CNY)	1.34 – 1.62	1.64 – 1.92	1.86 – 2.14	2.19 – 2.47	2.31 – 2.59
Hong Kong dollar (HKD)	2.99 – 3.34	3.08 – 3.43	3.46 – 3.81	3.69 – 4.04	3.81 – 4.16
Indonesian rupiah (IDR)	4.93 – 5.33	5.79 – 6.19	6.42 – 6.82	6.81 – 7.21	7.02 – 7.42
Malaysian ringgit (MYR)	3.01 – 3.20	3.41 – 3.60	3.67 – 3.86	3.94 – 4.13	4.14 – 4.33
Singapore dollar (SGD)	1.42 – 1.71	1.91 – 2.34	2.18 – 2.48	2.26 – 2.63	2.23 – 2.82
United States dollar (USD)	3.51 – 3.80	3.77 – 4.22	4.29 – 4.60	4.78 – 5.16	5.09 – 5.70


	31 Dec 2024 %
	1 year	5 years	10 years	15 years	20 years
Chinese yuan (CNY)	1.08 – 1.51	1.42 – 1.85	1.70 – 2.13	1.92 – 2.35	2.03 – 2.46
Hong Kong dollar (HKD)	4.32 – 4.75	4.04 – 4.47	4.09 – 4.52	4.15 – 4.58	4.19 – 4.62
Indonesian rupiah (IDR)	7.13 – 7.51	7.13 – 7.51	7.18 – 7.56	7.27 – 7.65	7.33 – 7.71
Malaysian ringgit (MYR)	3.43 – 3.68	3.65 – 3.90	3.87 – 4.12	4.06 – 4.31	4.21 – 4.46
Singapore dollar (SGD)	2.76 – 3.37	2.79 – 3.40	2.89 – 3.50	2.93 – 3.54	2.84 – 3.45
United States dollar (USD)	4.20 – 4.84	4.44 – 5.08	4.66 – 5.30	4.89 – 5.53	5.02 – 5.66

The sensitivity of shareholder equity and CSM to changes in interest rates (which includes an associated change to

the risk discount rate) is set out in note C6.1.


	257 Prudential plc Annual Report 2025


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 that 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 not elected to disaggregate insurance finance income and expenses between profit or loss and other comprehensive income.


	258 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


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 does not utilise the risk mitigation option in its IFRS 17 VFA liability accounting except in connection with a short-term premium prepayment option available on certain participating products in Hong Kong.


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.

(b) Further critical accounting policies affecting the presentation of the Group’s results


Presentation of results before tax attributable to shareholders
Profit before tax is a significant IFRS income statement item. The Group has chosen to present a measure of profit before tax attributable to shareholders that 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 $4,941 million and compares to profit before tax of $5,121 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.


Segmental analysis of results and earnings attributable to shareholders
The Group uses adjusted operating profit as the segmental measure of its results.	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 interest rate and other market fluctuations, together with other items that are of a short-term, volatile or one-off nature.
Total segmental adjusted operating profit is $3,939 million as shown in note B1.1.


	259 Prudential plc Annual Report 2025


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 general measurement model (GMM) approach, the VFA 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 $25,005 million, including joint ventures and associates, and the CSM amortisation (net of reinsurance) recognised in the income statement is $(2,554) million as shown in note C3.3. Approximately two thirds of the CSM (including joint ventures and associates and net of reinsurance) at 31 December 2025 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 premium allocation approach (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.


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 recoverable amount, the Group estimates the discounted future expected cash flows arising from the cash generating units (CGUs) containing the distribution rights. Impacts $3,699 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.


	260 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Financial investments – Valuation
Financial investments held at fair value, net of derivative liabilities, excluding those held by joint ventures and associates is $181.0 billion as shown in note C2.2. Financial investments held at amortised cost, comprising loans and deposits, represent $6.5 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 through profit or loss. Financial investments held at amortised cost, excluding cash and cash equivalents, primarily comprise loans and deposits.
	Determination of fair value
	The fair values of the financial instruments for which fair valuation is required under IFRS Standards are determined by the use of quoted market prices for exchange-quoted investments or by using quotations from independent third parties such as brokers and pricing services or by using appropriate valuation techniques. Further details are included in note C2.1. The estimated fair value of derivative financial instruments reflects the estimated amount the Group would receive or pay in an arm’s-length transaction. This amount is determined using quoted prices if exchange listed, quotations from independent third parties or valued internally using standard market practices. Quoted market prices are used to value investments having quoted prices. Actively traded investments without quoted prices are valued using prices provided by third parties such as brokers or pricing services. Financial investments measured at fair value are classified into a three-level hierarchy as described in note C2.1. If the market for a financial investment of the Group is not active, the Group establishes fair value by using quotations from independent third parties, such as brokers or pricing services, or by using internally developed pricing models. Priority is given to publicly available prices from independent sources when available, but overall the source of pricing and/or the valuation technique is chosen with the objective of arriving at a fair value measurement, which reflects the price at which an orderly transaction would take place between market participants on the measurement date. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these financial investments. Details of the financial investments classified as ‘level 3’ to which valuation techniques are applied and the sensitivity of profit before tax to a change in the valuation of these items, are presented in note C2.2.


	261 Prudential plc Annual Report 2025

B Earnings performance

B1 Analysis of performance by segment

B1.1 Segment results


		2025 $m	2024 $m		2025 vs 2024 %
			AER	CER	AER	CER
	Note	note (i)	note (i)	note (i)	note (i)	note (i)
Hong Kong		1,219	1,069	1,070	14%	14%
Indonesia		250	268	258	(7)%	(3)%
Mainland China ^{note (ii)}		411	363	363	13%	13%
Malaysia		410	338	361	21%	14%
Singapore		706	693	709	2%	0%
Growth markets and other ^{note (iii)}		614	688	689	(11)%	(11)%
Eastspring		329	304	301	8%	9%
Total segment profit		3,939	3,723	3,751	6%	5%
Other income and expenditure unallocated to a segment:
Net investment return and other items ^{note (iv)}		(41)	21	21	n/a	n/a
Interest payable on core structural borrowings		(184)	(171)	(171)	(8)%	(8)%
Corporate expenditure		(237)	(237)	(237)	0%	0%
Total other expenditure		(462)	(387)	(387)	(19)%	(19)%
Restructuring costs ^{note (v)}		(171)	(207)	(207)	17%	17%
Adjusted operating profit	B1.3	3,306	3,129	3,157	6%	5%
Tax charge on adjusted operating profit	B3.2	(534)	(547)	(555)	2%	4%
Adjusted operating profit after tax		2,772	2,582	2,602	7%	7%
Short-term interest rate and other market fluctuations		120	(105)	(97)	n/a	n/a
Gain (loss) attaching to corporate transactions ^{note (vi)}		1,515	(71)	(74)	n/a	n/a
Tax (charge) credit on non-operating result	B3.2	(288)	9	8	n/a	n/a
Profit for the year	B1.6	4,119	2,415	2,439	n/a	n/a

Attributable to:
Equity holders of the Company		3,978	2,285	2,300	n/a	n/a
Non-controlling interests		141	130	139	n/a	n/a
Profit for the year		4,119	2,415	2,439	n/a	n/a

Basic earnings per share (in cents)		2025	2024		2025 vs 2024 %
			AER	CER	AER	CER
	Note	note (i)	note (i)	note (i)	note (i)	note (i)
Based on adjusted operating profit, net of tax and non- controlling interest	B4	101.4¢	89.7¢	90.2¢	13%	12%
Based on profit for the year, net of non-controlling interest	B4	154.2¢	84.1¢	84.8¢	83%	82%

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. For definitions of AER and CER refer to note A1.

(ii) The Mainland China segment reflects the Group’s 50 per cent ownership in CITIC-Prudential Life Insurance Company Limited, a life joint venture with CITIC, a leading

Chinese state-owned conglomerate.

(iii) 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 all the life joint ventures and associates.

(iv) Net investment return and other items include an adjustment to eliminate intercompany profits. 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 cash flows 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 within 'net investment return and other items'

unallocated to a segment to remove the benefit already recognised when valuing the insurance contract.

(v) Restructuring costs largely comprise the costs of Group-wide projects including reorganisation programmes and initial costs of establishing new business initiatives and

operations. The costs include those incurred in insurance and asset management operations of $(49) million (2024: $(59) million).

(vi) The gain (loss) attaching to corporate transactions in 2025 and 2024 mainly relates to the disposal or partial disposal of businesses. In 2025, it largely represents the gain

arising from a reduction in the Group’s interest in ICICI Prudential Asset Management Company Limited (from 49 per cent to 34.59 per cent), as discussed further in

note D6.3.


	262 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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’. Under the Group’s management and reporting structure, its chief operating decision maker is the Group Executive Committee (GEC),

chaired by the Chief Executive Officer. 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 2024. Operations and transactions that 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 interest rate and other market fluctuations and gain or loss on corporate transactions. Note B1.1

shows the reconciliation from adjusted operating profit to total profit for the year.

Determination of adjusted operating profit

(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.

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 general measurement model (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 and any non-

attributable investment management expenses.

– Some GMM best estimate liabilities (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 interest rate and other market fluctuations’ as a component of non-operating profit.

The ‘insurance service result’ is largely recognised in adjusted operating profit in full with the main exception being the gains or losses that arise

from market and other related movements on onerous contracts measured under the variable fee approach (VFA). 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 amount included in the income statement for onerous contracts is classified as part of ‘short-term interest rate and other market

fluctuations’, a component of non-operating profit. See note B1.3 for the reconciliation to the ‘insurance service result' recognised in the

consolidated income statement.

(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 8.7 per cent for 2025 (2024: 2.8 per cent to 8.8 per

cent).


	263 Prudential plc Annual Report 2025

Equity-type securities

For equity-type securities, the longer-term rates of return are estimates of the long-term trend of investment returns for income and capital.

Longer-term rates of return range from 8.6 per cent to 15.7 per cent for 2025 and 2024.

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.

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.

B1.3 Analysis of adjusted operating profit by driver

Management assesses adjusted operating profit by breaking it down into the key components that drive performance each period.

The table below analyses the Group’s adjusted operating profit into the underlying drivers using the following categories:

– Adjusted release of CSM, which is net of reinsurance, represents the release from the CSM for the insurance services provided in the period,

adjusted for the reduction in CSM release that would occur if gains on profitable contracts were combined with losses on onerous contracts for

those contracts where gains and losses can be shared across cohorts as described in note B1.2.

– Release of risk adjustment, which is net of reinsurance, represents the amount of risk adjustment recognised in the income statement

representing non-financial risk that expired in the period net of the amount that was assumed to be covered by any reinsurance contracts in

place. The only difference between the amount shown in the table below and the amount included within Insurance service result on the

consolidated income statement and note C3.2 is the amount relating to the Group’s life joint ventures and associates that use the equity

method of accounting.

– Experience variances represent the difference between the actual amounts incurred or received in the period and that assumed within the best

estimate liability for insurance and reinsurance contracts. It covers items such as claims, attributable expenses and premiums to the extent

that they relate to current or past service.

– Other insurance service result primarily relates to movements on onerous contracts that impact adjusted operating profit (ie excluding those

discussed in B1.2 that meet the criteria where gains and losses can be shared across more than one annual cohort).

– Net investment result on longer-term basis comprises the component of the ‘net investment result’ that has been attributed to adjusted

operating profit by applying the approach as described in note B1.2.

– Other insurance income and expenditure represent other sources of income and expenses that are not considered to be attributable to

insurance contracts under IFRS 17.

– Share of related tax charges from joint ventures and associates represents the related tax on the adjusted operating profit of the Group’s life

joint ventures and associates accounted for using the equity method. Under IFRS, the Group’s share of results from its investments in joint

ventures and associates accounted for using the equity method is included as a single line in the Group’s profit before tax on a net of related

tax basis. In the table below, the results of the life joint ventures and associates are analysed by adjusted operating profit drivers and on a pre-

tax basis, with related tax shown separately in order for the contribution from the life joint ventures and associates to be included in the profit

driver analysis on a consistent basis with the rest of the insurance business operations.


	2025 $m	2024 $m		2025 vs 2024 %
		AER	CER	AER	CER
Adjusted release of CSM ^{note (i)}	2,550	2,333	2,358	9%	8%
Release of risk adjustment	285	268	271	6%	5%
Experience variances	(51)	(81)	(85)	37%	40%
Other insurance service result	(135)	(68)	(69)	(99)%	(96)%
Adjusted insurance service result ^{note (ii)}	2,649	2,452	2,475	8%	7%
Net investment result on longer-term basis ^{note (iii)}	1,163	1,146	1,154	1%	1%
Other insurance income and expenditure	(103)	(89)	(90)	(16)%	(14)%
Share of related tax charges from joint ventures and associates	(99)	(90)	(90)	(10)%	(10)%
Insurance business	3,610	3,419	3,449	6%	5%
Eastspring	329	304	301	8%	9%
Other income and expenditure	(462)	(387)	(386)	(19)%	(20)%
Restructuring costs	(171)	(207)	(207)	17%	17%
Adjusted operating profit, as reconciled to profit for the year in note B1.1	3,306	3,129	3,157	6%	5%


	264 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

Notes

(i) The adjusted release of CSM is reconciled to the information in the Consolidated income statement and the Analysis of movements in insurance and reinsurance

contract balances by measurement component in note C3.2 (excluding joint ventures and associates) as follows:


	2025 $m	2024 $m
Release of CSM, net of reinsurance as included within Insurance service result on the consolidated income statement and note C3.2
Insurance	2,438	2,286
Reinsurance	(102)	(159)
	2,336	2,127
Add amounts relating to the Group’s life joint ventures and associates that are accounted for on equity method	218	225
Release of CSM, net of reinsurance as shown in note C3.3
Insurance	2,656	2,511
Reinsurance	(102)	(159)
	2,554	2,352
Adjustment to release of CSM for the treatment adopted for adjusted operating profit purposes of combining losses on onerous contracts and gains on profitable contracts that can be shared across more than one annual cohort	(4)	(19)
Adjusted release of CSM as shown above	2,550	2,333

(ii) The adjusted insurance service result is reconciled to the information in the consolidated income statement and the analysis of movements in insurance and

reinsurance contract balances by measurement component in note C3.2 (excluding joint ventures and associates) as follows:


	2025 $m	2024 $m
Insurance service result as shown in the consolidated income statement and note C3.2	2,624	2,293
Add amounts relating to the Group’s life joint ventures and associates that are accounted for on equity method	225	187
Insurance service result as shown in note C3.3
Insurance	3,078	2,786
Reinsurance	(229)	(306)
	2,849	2,480
Removal of losses or gains from reversal of losses on those onerous contracts that meet the criteria in note B1.2 where gains and losses can be shared across more than one annual cohort less the adjustment to the release of CSM shown above	(98)	46
Other items including policyholder tax*	(102)	(74)
Adjusted insurance service result as shown above	2,649	2,452

* Other items include the revenue recognised to cover the tax charge attributable to policyholders that is included in the insurance service result in the income statement.

This revenue is fully offset by the actual tax charge attributable to policyholders that is included, as required by IAS 12, in the tax line in the income statement resulting

in no net impact to adjusted operating profit that is determined after deducting policyholder tax and so has been offset in the analysis of adjusted operating profit.

(iii) Net investment result on longer-term basis is reconciled to the net investment result in the consolidated income statement as follows:


	2025 $m	2024 $m
Net investment result as shown in the consolidated income statement	1,421	1,332
Remove investment return of non-insurance entities	3	(448)
Remove short-term interest rate and other market fluctuations included in non-operating profit excluding non-insurance entities*	(279)	334
Other items*	18	(72)
Net investment result on longer-term basis as shown above	1,163	1,146

* These reconciling line items include the impact from the Group's life joint ventures and associates. Other items also reflect the impact of policyholder tax.


	265 Prudential plc Annual Report 2025

B1.4 Revenue

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 DPF for asset management, policy administration fees and Eastspring’s asset management

fee income are recognised when related services are provided.

(a) Analysis of total revenue by segment


	2025 $m
	Insurance operations ^{note (i)}
	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Eastspring	Inter- segment elimination	Total segment	Unallocated to a segment (central operations)	Total
Insurance revenue
Amounts relating to changes in the liability for remaining coverage:
Expected claims and other directly attributable expenses	1,326	632	854	1,237	682	–	–	4,731	–	4,731
Change in risk adjustment for non-financial risk	78	33	34	68	59	–	–	272	–	272
Release of CSM for services provided	1,025	148	214	529	522	–	–	2,438	–	2,438
Other adjustments ^{note (ii)}	46	46	41	2	69	–	–	204	–	204
Recovery of insurance acquisition cash flows	1,549	277	309	557	743	–	–	3,435	–	3,435
	4,024	1,136	1,452	2,393	2,075	–	–	11,080	–	11,080
Other revenue ^{note (iii)}	29	3	1	–	20	358	–	411	–	411
Total revenue from external customers^{note (iv)}	4,053	1,139	1,453	2,393	2,095	358	–	11,491	–	11,491
Intra-group revenue	–	–	–	–	–	224	(224)	–	–	–
Investment return
Interest income	1,340	105	239	886	822	5	–	3,397	137	3,534
Dividend and other investment income	1,253	65	198	549	145	4	–	2,214	–	2,214
Investment appreciation (depreciation)	6,342	212	199	3,453	459	5	–	10,670	(154)	10,516
	8,935	382	636	4,888	1,426	14	–	16,281	(17)	16,264
Total revenue	12,988	1,521	2,089	7,281	3,521	596	(224)	27,772	(17)	27,755


	266 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


	2024 $m
	Insurance operations ^{note (i)}
	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Eastspring	Inter- segment elimination	Total segment	Unallocated to a segment (central operations)	Total
Insurance revenue
Amounts relating to changes in the liability for remaining coverage:
Expected claims and other directly attributable expenses	1,195	670	740	1,121	715	–	–	4,441	–	4,441
Change in risk adjustment for non-financial risk	68	37	26	64	62	–	–	257	–	257
Release of CSM for services provided	908	146	206	521	505	–	–	2,286	–	2,286
Other adjustments ^{note (ii)}	88	31	50	32	16	–	–	217	–	217
Recovery of insurance acquisition cash flows	1,445	293	268	513	638	–	–	3,157	–	3,157
	3,704	1,177	1,290	2,251	1,936	–	–	10,358	–	10,358
Other revenue ^{note (iii)}	24	2	–	2	21	333	–	382	–	382
Total revenue from external customers ^{note (iv)}	3,728	1,179	1,290	2,253	1,957	333	–	10,740	–	10,740
Intra-group revenue	–	–	–	–	–	221	(221)	–	–	–
Investment return
Interest income	1,077	101	216	797	688	7	–	2,886	209	3,095
Dividend and other investment income	1,279	105	181	651	164	3	–	2,383	–	2,383
Investment appreciation (depreciation)	(3,317)	(86)	736	2,275	604	1	–	213	228	441
	(961)	120	1,133	3,723	1,456	11	–	5,482	437	5,919
Total revenue	2,767	1,299	2,423	5,976	3,413	565	(221)	16,222	437	16,659

Notes

(i) The Group’s share of the results from the joint ventures and associates that are equity accounted for, including the Group’s life joint venture in Mainland China, 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 the Mainland China joint venture (Prudential’s share) in 2025 is $544 million (2024: $573 million). Further financial information on the

Mainland China joint venture is provided in note D6.3.

(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 $358 million (2024:

$333 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, Indonesia, Malaysia

and Singapore as shown above, no individual markets have revenue from external customers that ex ceeds 10 per cent of the Group total for the years presented.

(b) Additional analysis of 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 fair value through profit or loss (FVTPL) and

realised gains and losses (including impairment losses) on items classified at amortised cost. 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.


	2025 $m	2024 $m
Interest income calculated using the effective interest method	413	477
Net gains on financial instruments at FVTPL ^note	15,784	5,250
Other investment returns (including foreign exchange gains and losses)	331	363
Movement in amounts attributable to external unit holders of consolidated investment funds	(264)	(171)
Investment return recognised in the income statement	16,264	5,919

Note

Net gains on financial instruments at FVTPL comprise interest income, dividend income and investment appreciation (depreciation) on such financial instruments. Net

realised gains and losses on the Group’s investments for 2025 recognised in the income statement amounted to a net gain of $2.9 billion (2024: $(0.5) billion loss).

The overall financial strength of Prudential and the results, both current and future, of the insurance business are in part dependent upon the

quality and performance of the various investment portfolios. Prudential’s insurance investments support a range of businesses operating in

many geographic areas. Each of the operations formulates a strategy based on the nature of its underlying liabilities, its level of capital and its

local regulatory requirements. Prudential’s insurance business’s investments, excluding assets to cover linked liabilities and those attributable to

external unit holders of consolidated investment funds, are largely held by Prudential’s Singapore and Hong Kong operations.

All investments are carried at fair value in the statement of financial position with fair value movements, which are volatile from year to year,

recorded in the income statement, except for loans and receivables, which are generally carried at amortised cost (unless designated at FVTPL).

Subject to the effect of the exceptions, the year-on-year changes in investment returns primarily reflect the cumulative impact from the changes

in interest rates on bond asset values and the performance of the equity markets. In addition, foreign exchange rates affect the USD value of the

translated income. Consistent with the treatment applied for other items of income and expenditure, investment return for operations not using

USD as the functional currency is translated at average exchange rates.


	267 Prudential plc Annual Report 2025

B1.5 Net insurance and reinsurance finance income (expense)

Insurance and reinsurance 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. These amounts exclude any such changes for

groups of contracts with direct participation features that are allocated to a loss component and therefore do not adjust CSM and accordingly

are included in insurance service expenses. Insurance finance income and expense 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.

The following table provides an analysis of net insurance and reinsurance finance income (expense).


	2025 $m	2024 $m
Net finance (expense) income from insurance contracts ^{notes (i)(ii)}
Accretion of interest on GMM contracts	(337)	(295)
Changes in fair value of underlying assets and other adjustments relating to VFA contracts	(13,859)	(3,258)
Effect of changes in interest rates and other financial assumptions	(208)	(491)
Effect of measuring changes in estimates at current rates and adjusting the CSM at locked-in rates	15	5
Net foreign exchange gain	107	21
Other finance (expense) from insurance contracts ^{note (iii)}	(330)	(136)
	(14,612)	(4,154)
Net finance income (expense) from reinsurance contracts held ^{notes (i)(ii)}
Accretion of interest on GMM contracts	151	109
Effect of changes in interest rates and other financial assumptions	(254)	(467)
Effect of measuring changes in estimates at current rates and adjusting the CSM at locked-in rates	15	(23)
Net foreign exchange (loss) gain	(71)	19
Other finance income from reinsurance contracts ^{note (iv)}	–	24
	(159)	(338)

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 investment return included in the income statement relates to all

investment assets of the Group, irrespective of whether the return is attributable to shareholders or policyholders or whether the assets are backing insurance

contracts classified as VFA or GMM. 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. For example, a significant portion of the Group’s investment portfolio

comprises assets that are part of the underlying items relating to VFA contracts. Market movements in these underlying assets, as included in Investment return, are

matched by a movement in insurance liabilities as included in Insurance finance income (expense). Accordingly, the principal driver for the year-on-year variations

in the 'Changes in fair value of underlying assets and other adjustments relating to VFA contracts' in the table above is the investment return element, as shown

directionally in the 'Net gains on financial instruments at FVTPL' in the table in note B1.4.

(iii) Other finance expense from insurance contracts includes the effect of changes in the policyholders’ interest in the excess net assets of relevant participating funds

of $(320) million (2024: $(110) million).

(iv) Other finance income (expense) from reinsurance contracts held includes the effect of changes in non-performance risk of reinsurers of less than $1 million (2024:

$24 million).


	268 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

B1.6 Additional segmental analysis of adjusted operating profit after tax and reconciliation to profit after tax

The reconciliation to profit after tax by segment is shown in the table below. Non-operating items after tax includes effects from short-term

interest rate and other market fluctuations and gain or loss on corporate transactions, net of tax, as discussed in note B1.2. The amounts shown

in the table are before deducting any applicable non-controlling interests.


	2025 $m			2024 $m
	Adjusted operating profit after tax	Non-operating items after tax	Profit after tax	Adjusted operating profit after tax	Non-operating items after tax	Profit after tax
Hong Kong	1,126	207	1,333	971	(120)	851
Indonesia	198	26	224	218	(37)	181
Mainland China ^note	411	(435)	(24)	363	(204)	159
Malaysia ^note	320	5	325	264	32	296
Singapore	603	363	966	594	(28)	566
Growth markets and other ^note	491	44	535	531	(28)	503
Asset management	305	1,328	1,633	275	(11)	264
Total segment profit	3,454	1,538	4,992	3,216	(396)	2,820
Unallocated to a segment (central operations)	(682)	(191)	(873)	(634)	229	(405)
Group total	2,772	1,347	4,119	2,582	(167)	2,415

Note

The Growth markets and other segment comprises all other Asia and Africa insurance businesses alongside 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

above, the amount shown for Mainland China is before tax (with its tax being included in the Growth markets and other segment). The Group's share of the Mainland China

joint venture's post-tax result was $3 million (2024: $141 million).

B2 Insurance service expenses and other expenditure

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.


	2025 $m	2024 $m
Expenses attributed to insurance acquisition cash flows ^{note (i)}	5,379	4,987
Other directly attributable expenses ^{note (ii)}	1,455	1,328
Other expenditure ^{note (iii)}	1,031	1,003
Total expenses	7,865	7,318

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. Ceding commissions received from outward reinsurance agreements are not included in the analysis above.

(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 $53 million (2024: $62 million), of which $22 million (2024: $23 million) arises in the Hong Kong segment and $23 million

(2024: $35 million) arises in central operations with the remainder spread broadly across the other markets. Included within interest expense is $11 million (2024:

$10 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.


	269 Prudential plc Annual Report 2025

Total depreciation and amortisation expenses relate primarily to amortisation of distribution rights intangibles as shown in note C4.2 and

depreciation of property, plant and equipment as shown in note C10. The segmental analysis of total depreciation and amortisation is shown

below.


	2025 $m	2024 $m
Hong Kong	157	51
Indonesia	17	12
Malaysia	51	22
Singapore	93	36
Growth markets and other	223	372
Eastspring	12	13
Total segment	553	506
Unallocated to a segment (central operations)	18	17
Total depreciation and amortisation	571	523

B2.1 Staff and employment costs

Total staff and employment costs are analysed by category below:


	2025 $m	2024 $m
Wages and salaries	1,228	1,119
Social security costs	38	37
Defined contribution pension schemes	57	54
Total Group	1,323	1,210

The average number of staff employed by the Group during the years is shown below:


	2025	2024
Asia and Africa operations ^note	14,770	14,851
Head office function	568	561
Total Group	15,338	15,412

Note

The Asia and Africa operations staff numbers above exclude 634 (2024: 702) commission-based sales staff who have an employment contract with the Group.

B2.2 Share-based payment

The Company offers discretionary share awards to certain key employees and all-employee share plans across the Group. 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 provide Prudential plc shares 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 Directors’

remuneration report. The following information is provided about plans in which the Executive Directors do not participate:


	270 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Share scheme	Description
Prudential Global Long Term Incentive Plan (PG LTIP)	The PG LTIP provides eligible employees with conditional awards. Awards are discretionary and vest after one, two or three years subject to the employee being in employment. Vesting of awards may also be subject to performance conditions. All awards are 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 PG LTIP described above, with most awards granted with a three-year vesting period.
Restricted Share Plan (RSP)	The Company operates the RSP for certain employees. Awards under this plan are discretionary, and the vesting of awards may be subject to performance conditions.
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 (ISSOSNE). The plan is similar to the HMRC-approved Save As You Earn (Sharesave) share option scheme in the UK which is open to eligible employees.
Share purchase plans	Eligible employees in the UK are invited to participate in the Company’s HMRC-approved UK Share Incentive Plan (SIP). The plan allows the purchase of Prudential plc shares each month. Staff based in Asia and Africa are eligible to participate in the Prudential All Employee Share Purchase Plan (PRUshareplus) which is run in a similar way.

The total numbers of securities available for issue under these schemes are disclosed in note I(v) 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:


	Options outstanding under Sharesave and ISSOSNE schemes				Awards outstanding under incentive plans
	2025		2024		2025	2024
	Number of options	Weighted average exercise price	Number of options	Weighted average exercise price	Number of awards
	millions	£	millions	£	millions
Balance at beginning of year	1.7	7.84	1.7	9.50	17.5	14.3
Granted	0.3	7.86	0.6	5.25	9.0	10.9
Exercised	(0.2)	8.20	(0.1)	7.37	(7.0)	(6.6)
Forfeited	–	7.10	–	7.60	(0.3)	(0.5)
Cancelled	(0.3)	10.90	(0.5)	10.16	–	–
Lapsed/expired	–	9.20	–	9.42	(0.5)	(0.6)
Balance at end of year	1.5	7.30	1.7	7.84	18.7	17.5
Options immediately exercisable at end of year	0.1	8.54	0.2	11.57

Certain options granted in 2025 and 2024 were awarded with options prices expressed in Hong Kong dollars. These amounts have been

converted to pound sterling exercise prices, shown in the tables above and below, using the daily spot rate on the grant date.

The weighted average share price of Prudential plc for 2025 was £8.68 (2024: £7.14).

The following table provides a summary of the range of exercise prices for Prudential plc options outstanding at 31 December:


	Outstanding						Exercisable
	Number outstanding millions		Weighted average remaining contractual life years		Weighted average exercise prices £		Number exercisable millions		Weighted average exercise prices £
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Between £5 and £6	0.5	0.5	3.3	4.3	5.24	5.24	–	–	–	–
Between £7 and £8	0.8	0.7	2.8	2.7	7.69	7.55	0.1	–	7.37	–
Between £9 and £10	0.1	0.1	0.4	1.4	9.64	9.64	0.1	–	9.64	–
Between £11 and £12	0.1	0.4	1.4	1.3	11.89	11.70	–	0.2	–	11.57
Between £12 and £13	–	–	1.5	0.6	12.02	12.02	–	–	–	–
Total	1.5	1.7	2.8	2.8	7.30	7.84	0.2	0.2	8.54	11.57


	271 Prudential plc Annual Report 2025

The years shown above for weighted average remaining contractual life include the time period from end of vesting period to expiration of

contract.

The fair value amounts estimated on the date of grant relating to all options and awards were determined by using the following assumptions:


	2025			2024
	Sharesave and ISSOSNE options	Prudential LTIP (TSR)	Other awards	Sharesave and ISSOSNE options	Prudential LTIP (TSR)	Other awards
Dividend yield (%)	2.20	–	–	2.08	–	–
Expected volatility (%)	22.97	29.45	–	28.17	28.45	–
Risk-free interest rate (%)	3.31	3.82	–	3.57	4.39	–
Expected option life (years)	3.73	–	–	4.03	–	–
Weighted average exercise price (£)	£7.86	–	–	£5.24	–	–
Weighted average share price at grant date (£/HKD)	£10.39	HKD 82.75	–	£7.16	HKD 75.10	–
Weighted average fair value at grant date (£/HKD)	£3.11	HKD 55.33	HKD 80.82	£2.50	HKD 29.29	HKD 72.58

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 that have Total Shareholder Return (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 Sharesave 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 2025, the average

volatility for the basket of competitors was 27 per cent (2024: 27 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 2025 in the consolidated financial statements relating to share-based compensation is $95 million (2024:

$85 million), of which $87 million (2024: $76 million) is accounted for as equity-settled.

The Group had $39 million of liabilities at 31 December 2025 (31 December 2024: $31 million) relating to share-based payment awards

accounted for as cash-settled.


	272 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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:


	2025 $m	2024 $m
Total Salaries and short term benefits	25.8	24.6
Share based payments and other long term awards	14.9	12.5
Payments made on appointment	3.1	0.8
Post-employment benefits	1.5	1.3
Total key management remuneration	45.3	39.2

The amount presented for 2025 share based payments and other long-term awards includes the performance related pay that is deferred into

shares or cash as included in the remuneration report plus the IFRS 2 charge for other share award schemes, which have performance conditions

in addition to continued service. Payments on appointment includes both cash and share awards. In total across all categories total share based

payments are $15.6 million (2024: $13.3 million). 2024 is presented on a consistent basis.

Additional details on the Directors’ emoluments, retirement benefits and other payments are given in the Directors’ remuneration report.

B2.4 Fees payable to the auditor


	2025 $m	2024 $m
Audit of the Company’s annual accounts	5.3	5.3
Audit of subsidiaries pursuant to legislation	6.0	6.0
Audit fees payable to the auditor	11.3	11.3
Audit-related assurance services ^note	4.2	5.2
Other assurance services	0.8	1.2
Non-audit fees payable to the auditor	5.0	6.4
Total fees payable to the auditor	16.3	17.7

Note

Of the audit-related assurance service fees of $4.2 million (2024: $5.2 million), $1.2 million (2024: $1.2 million) relates to services that are required by law and regulation

as defined by the FRC.

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.


	273 Prudential plc Annual Report 2025

B3.1 Total tax charge by segment

The total tax charge in the income statement is as follows :


	2025 $m	2024 $m
Hong Kong	(148)	(229)
Indonesia	(45)	(37)
Malaysia	(123)	(155)
Singapore	(249)	(176)
Growth markets and other	(110)	(158)
Eastspring ^{note (i)}	(256)	(29)
Total segment ^{note (ii)}	(931)	(784)
Unallocated to a segment (central operations)	(71)	(40)
Total tax charge ^{note (iii)}	(1,002)	(824)

Notes

(i) The Eastspring tax charge in 2025 includes tax in relation to the gain attaching to corporate transactions, as discussed further in note D6.3.

(ii) 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 assoc iates, including the Group’s life joint venture in Mainland China.

(iii) The total tax charge is analysed between current tax and deferred tax by component as follows:


	2025 $m	2024 $m
Current tax arising from:
Corporation tax	(838)	(520)
Adjustments in respect of prior years ^note	122	(1)
Pillar Two income taxes (see below)	(23)	–
Total current tax charge	(739)	(521)
Deferred tax arising from:
Origination and reversal of temporary differences	(248)	(319)
Adjustment in respect of a tax loss, tax credit or temporary difference from a prior year	(15)	16
Total deferred tax charge	(263)	(303)
Total tax charge	(1,002)	(824)

Note

The current tax charge – adjustments in respect of prior years comprises $109 million attributable to policyholders’ returns and $13 million attributable to

shareholders’ returns.

On 6 June 2025, Hong Kong enacted the OECD Pillar Two global minimum tax and domestic minimum tax rules with retrospective effect from 1

January 2025 onwards. This brings the whole Group into scope of Hong Kong’s Pillar Two rules. The 2025 current tax charge includes $(23)

million (2024: nil) in respect of Pillar Two income taxes. The amount of tax due in any period is sensitive to market movements in that period. In

periods where the actual investment return is in line with, or below, expected long-term returns, the Group does not expect the Pillar Two tax rules

to have a material impact on the IFRS tax charge. In periods where the actual investment return exceeds the expected long-term returns, the

impact from the Pillar Two tax rules will depend on how the relevant jurisdiction taxes the actual investment return under local corporate income

tax rules.


	274 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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 o n shareholder effective

tax rate (ETR) are provided below.


	2025		2024
	$m	ETR %	$m	ETR %
Profit before tax (being tax attributable to shareholders’ and policyholders’ returns)	5,121		3,239
Tax charge attributable to policyholders’ returns ^{note (i)}	(180)		(286)
Profit before tax attributable to shareholders' returns	4,941		2,953
Tax charge at the expected rate	(923)	19 %	(585)	20 %
Effects of recurring tax reconciliation items:
Income not taxable or taxable at concessionary rates ^{note (ii)}	119	(2)%	96	(3)%
Deductions and losses not allowable for tax purposes ^{note (iii)}	(189)	4%	(164)	5%
Items related to taxation of life insurance businesses ^{note (iv)}	158	(3)%	94	(3)%
Deferred tax adjustments including unrecognised tax losses	(40)	1%	4	0%
Effect of results of joint ventures and associates ^{note (v)}	75	(2)%	100	(3)%
Irrecoverable withholding taxes ^{note (vi)}	(43)	1%	(61)	2%
Pillar Two income taxes	(23)	0%	–	0%
Other	(5)	0%	1	0%
Total credit on recurring items	52	(1)%	70	(2)%
Effects of non-recurring tax reconciliation items:
Adjustments to tax charge in relation to prior years	3	0%	7	0%
Movements in provisions for open tax matters ^{note (vii)}	20	0%	(8)	0%
Adjustments in relation to business disposals and corporate transactions	26	(1)%	(22)	0%
Total credit (charge) on non-recurring items	49	(1)%	(23)	0%
Tax charge attributable to shareholders' returns	(822)		(538)
Tax charge attributable to policyholders’ returns ^{note (i)}	(180)		(286)
Tax charge attributable to shareholders' and policyholders' returns	(1,002)		(824)
Profit before tax attributable to shareholders’ returns analysed into:
Adjusted operating profit	3,306		3,129
Non-operating result ^{note (viii)}	1,635		(176)
Profit before tax attributable to shareholders' returns	4,941		2,953
Tax charge attributable to shareholders' returns analysed into:
Tax charge on adjusted operating profit	(534)		(547)
Tax (charge) credit on non-operating result ^{note (viii)}	(288)		9
Tax charge attributable to shareholders' returns	(822)		(538)
Actual tax rate on:
Adjusted operating profit:
Including non-recurring tax reconciling items ^{note (ix)}	16%		17%
Excluding non-recurring tax reconciling items	17%		17%
Profit before tax attributable to shareholders' returns ^{note (ix)}	17%		18%

Notes

(i) The tax charge attributable to policyholders of $(180) million (2024: $(286) million) 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 and gains in growth markets and other as well as in other

(central) operations.

(iii) Deductions and losses not allowable for tax purposes primarily relates to non-deductible head office costs in other (central) 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 (central)

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.


	275 Prudential plc Annual Report 2025

(vii) The statement of financial position contains the following provisions in relation to open tax matters.


	2025 $m
Balance at 1 Jan	(95)
Movements in the current year included in tax charge attributable to shareholders	20
Provisions utilised in the year	5
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)	(7)
Balance at 31 Dec	(77)

(viii) ‘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 credit 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.

(ix) The actual shareholder tax rates of the relevant business operations are shown below:


	2025 %
	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Eastspring	Other (central) operations	Total attributable to shareholders
Tax rate on adjusted operating profit	8%	21%	22%	15%	20%	7%	(8)%	16%
Tax rate on profit before tax	6%	17%	22%	15%	16%	14%	(9)%	17%


	2024 %
	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Eastspring	Other (central) operations	Total attributable to shareholders
Tax rate on adjusted operating profit	9%	19%	22%	14%	23%	10%	(7)%	17%
Tax rate on profit before tax	10%	18%	22%	14%	23%	10%	(11)%	18%

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.


	2025
	Before tax	Tax	Non-controlling interests	Net of tax and non- controlling interests	Basic earnings per share	Diluted earnings per share
	$m	$m	$m	$m	cents	cents
Based on adjusted operating profit	3,306	(534)	(155)	2,617	101.4¢	101.0¢
Short-term interest rate and other market fluctuations	120	(48)	14	86	3.3¢	3.3¢
Gain attaching to corporate transactions	1,515	(240)	–	1,275	49.5¢	49.2¢
Based on profit for the year	4,941	(822)	(141)	3,978	154.2¢	153.5¢


	2024
	Before tax	Tax	Non-controlling interests	Net of tax and non- controlling interests	Basic earnings per share	Diluted earnings per share
	$m	$m	$m	$m	cents	cents
Based on adjusted operating profit	3,129	(547)	(146)	2,436	89.7¢	89.6¢
Short-term interest rate and other market fluctuations	(105)	9	(10)	(106)	(3.9)¢	(3.9)¢
Loss attaching to corporate transactions	(71)	–	26	(45)	(1.7)¢	(1.7)¢
Based on profit for the year	2,953	(538)	(130)	2,285	84.1¢	84.0¢

For 2025, the weighted average number of shares for calculating basic earnings per share, which excludes those held in employee share trusts, is

2,580 million (2024: 2,715 million) shares. After including a dilutive effect of the Group's share options and awards of 12 million (2024:

5 million) shares, the weighted average number of shares for calculating diluted earnings per share is 2,592 million (2024: 2,720 million) shares.


	276 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

B5 Dividends

First and second interim dividends are recorded in the period in which they are paid. Cash and scrip dividends are initially recorded in the

statement of changes in equity as a deduction from retained earnings, at the value of the cash paid, or the cash equivalent to the scrip dividend.

For scrip dividends settled by a new issue of shares the deduction from retained earnings is subsequently reversed and an amount equal to the

nominal value of shares issued is transferred to share capital from share premium or the capital redemption reserve.


	2025		2024
	Cents per share	$m	Cents per share	$m
Dividends relating to reporting year:*
First interim dividend	7.71¢	197	6.84¢	185
Second interim dividend	18.89¢	481	16.29¢	433
Total relating to reporting year	26.60¢	678	23.13¢	618
Dividends paid in reporting year:
Current year first interim dividend	7.71¢	197	6.84¢	185
Second interim dividend for prior year	16.29¢	426	14.21¢	390
Total paid in reporting year	24.00¢	623	21.05¢	575

* Calculated using the outstanding number of ordinary shares as at 31 December 2025.

Dividend per share

The 2025 first interim dividend of 7.71 cents per ordinary share was paid to eligible shareholders on 16 October 2025.

On 13 May 2026, Prudential will pay a second interim dividend of 18.89 cents per ordinary share for the year ended 31 December 2025. The

second interim dividend will be paid to shareholders recorded on the UK register at 5.00pm (Greenwich Mean Time) and to shareholders

recorded on the HK branch register at 4.30pm (Hong Kong Time) on 27 March 2026 (Record Date), and also to the holders of US American

Depositary Receipts (ADRs) as at 27 March 2026. The second interim dividend will be paid on or about 20 May 2026 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 or in the form of new fully paid ordinary shares (scrip dividend alternative). A scrip

dividend alternative will again be offered which will involve the issuance of relevant new ordinary shares on the Hong Kong line only. The scrip

dividend alternative is offered in addition to the Dividend Reinvestment Plan (DRIP), which continues to be available to shareholders on the UK

Elections regarding currency, scrip dividend or DRIP must be received by the relevant UK or HK share registrar on or before 21 April 2026. The

corresponding amounts per share in GBP and HKD are expected to be announced on or about 28 April 2026. 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.

Shareholders holding an interest in Prudential shares through the CDP in Singapore will continue to receive their dividend payments in SGD based

on the prevailing market exchange rate, unless they elect to participate in the scrip dividend alternative for which elections must be made

through the CDP by 14 April 2026.

Holders of ADRs will continue to receive their dividend payments in USD.


	277 Prudential plc Annual Report 2025

C Financial position

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 2025 were $973 million (31 December 2024: $900 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 that 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.


	278 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


	31 Dec 2025 $m
	Asia and Africa					Unallocated to a segment	Group total
	Insurance
	Funds with policyholder participation	Unit-linked funds	Other	Eastspring	Total
	note (i)
Debt securities
Sovereign debt
Indonesia	536	475	826	–	1,837	–	1,837
Singapore	2,339	774	1,210	–	4,323	–	4,323
Thailand	–	3	3,725	–	3,728	–	3,728
United States	16,538	55	281	–	16,874	–	16,874
Vietnam	2,625	16	137	–	2,778	–	2,778
Other (predominantly Asia)	4,737	663	2,060	–	7,460	–	7,460
Subtotal	26,775	1,986	8,239	–	37,000	–	37,000
Other government bonds
AAA	1,508	137	112	–	1,757	–	1,757
AA+ to AA-	133	31	27	–	191	–	191
A+ to A-	830	77	367	–	1,274	–	1,274
BBB+ to BBB-	230	40	74	–	344	–	344
Below BBB- and unrated	317	44	40	–	401	–	401
Subtotal	3,018	329	620	–	3,967	–	3,967
Corporate bonds
AAA	1,538	142	376	–	2,056	–	2,056
AA+ to AA-	6,263	643	947	–	7,853	–	7,853
A+ to A-	20,892	631	1,718	–	23,241	1	23,242
BBB+ to BBB-	13,149	822	1,565	–	15,536	1	15,537
Below BBB- and unrated	1,375	232	247	–	1,854	–	1,854
Subtotal	43,217	2,470	4,853	–	50,540	2	50,542
Asset-backed securities
AAA	190	3	85	–	278	–	278
AA+ to AA-	10	–	3	–	13	–	13
A+ to A-	119	–	16	–	135	–	135
BBB+ to BBB-	22	–	2	–	24	–	24
Below BBB- and unrated	21	1	70	–	92	–	92
Subtotal	362	4	176	–	542	–	542
Total debt securities ^{notes (ii)}⁽ⁱⁱⁱ⁾	73,372	4,789	13,888	–	92,049	2	92,051
Loans
Mortgage loans	46	–	161	–	207	–	207
Other loans	344	–	–	–	344	–	344
Total loans	390	–	161	–	551	–	551
Equity securities and holdings in collective investment schemes
Direct equities ^{note (ii)}	22,874	14,734	285	91	37,984	25	38,009
Collective investment schemes	39,196	11,053	1,286	14	51,549	–	51,549
Total equity securities and holdings in collective investment schemes	62,070	25,787	1,571	105	89,533	25	89,558
Derivative assets	326	20	267	–	613	8	621
Deposits	2,464	201	2,394	79	5,138	1,108	6,246
Total financial investments	138,622	30,797	18,281	184	187,884	1,143	189,027
Investment properties	–	–	3	–	3	–	3
Cash and cash equivalents	1,707	554	1,403	191	3,855	3,851	7,706
Total investments	140,329	31,351	19,687	375	191,742	4,994	196,736


	279 Prudential plc Annual Report 2025


	31 Dec 2024 $m
	Asia and Africa					Unallocated to a segment
	Insurance
	Funds with policyholder participation	Unit-linked funds	Other	Eastspring	Total		Group total
	note (i)
Debt securities
Sovereign debt
Indonesia	453	573	642	–	1,668	–	1,668
Singapore	2,265	738	932	–	3,935	–	3,935
Thailand	3	3	2,580	–	2,586	–	2,586
United States	14,851	71	433	–	15,355	–	15,355
Vietnam	2,885	17	139	–	3,041	–	3,041
Other (predominantly Asia)	4,192	685	1,589	2	6,468	–	6,468
Subtotal	24,649	2,087	6,315	2	33,053	–	33,053
Other government bonds
AAA	1,617	119	112	–	1,848	–	1,848
AA+ to AA-	124	16	23	–	163	–	163
A+ to A-	643	82	268	–	993	–	993
BBB+ to BBB-	189	45	80	–	314	–	314
Below BBB- and unrated	354	6	48	–	408	–	408
Subtotal	2,927	268	531	–	3,726	–	3,726
Corporate bonds
AAA	1,400	158	280	–	1,838	–	1,838
AA+ to AA-	3,567	486	851	–	4,904	–	4,904
A+ to A-	13,451	491	1,629	–	15,571	1	15,572
BBB+ to BBB-	9,753	661	1,784	–	12,198	1	12,199
Below BBB- and unrated	1,477	477	342	–	2,296	–	2,296
Subtotal	29,648	2,273	4,886	–	36,807	2	36,809
Asset-backed securities
AAA	129	3	34	–	166	–	166
AA+ to AA-	4	–	1	–	5	–	5
A+ to A-	28	–	3	–	31	–	31
BBB+ to BBB-	2	–	1	–	3	–	3
Below BBB- and unrated	2	1	8	–	11	–	11
Subtotal	165	4	47	–	216	–	216
Total debt securities ^{notes (ii)}⁽ⁱⁱⁱ⁾	57,389	4,632	11,779	2	73,802	2	73,804
Loans
Mortgage loans	51	–	102	–	153	–	153
Other loans	364	–	–	–	364	–	364
Total loans	415	–	102	–	517	–	517
Equity securities and holdings in collective investment schemes
Direct equities ^{note (ii)}	19,487	13,465	254	95	33,301	–	33,301
Collective investment schemes	37,652	8,338	1,698	13	47,701	–	47,701
Total equity securities and holdings in collective investment schemes	57,139	21,803	1,952	108	81,002	–	81,002
Derivative assets	119	6	129	–	254	141	395
Deposits	2,121	254	1,989	93	4,457	1,009	5,466
Total financial investments	117,183	26,695	15,951	203	160,032	1,152	161,184
Investment properties	–	–	3	–	3	–	3
Cash and cash equivalents	1,396	564	1,225	142	3,327	2,445	5,772
Total investments	118,579	27,259	17,179	345	163,362	3,597	166,959

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 and direct equities, the following amounts were held by the consolidated investment funds:


	31 Dec 2025 $m	31 Dec 2024 $m
Debt securities held by consolidated investment funds	12,341	10,409
Direct equities held by consolidated investment funds*	6,605	5,851

* As of 31 December 2025, the $25 million of direct equities unallocated to a segment is entirely held by a consolidated investment fund.

(iii) The credit ratings, are created using a methodology developed by Prudential using ratings from various credit ratings agencies (Composite Ratings), S&P Global

Ratings (S&P), Moody’s and Fitch Solutions and their respective affiliates and suppliers. The ratings displayed are not credit opinions nor are they a rating issued by

a rating agency, including S&P. To the extent that a credit rating is calculated using an S&P rating, such rating was used under a license from S&P and S&P reserves

all rights with respect to such rating.


	280 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

C1.2 Other assets and liabilities

(a) Accrued investment income and other debtors


	31 Dec 2025 $m	31 Dec 2024 $m
Total accrued investment income, primarily interest receivable	1,071	902
Other debtors	817	1,310
Total accrued investment income and other debtors	1,888	2,212
Analysed as:
Expected to be settled within one year	1,831	2,162
Expected to be settled beyond one year	57	50
Total accrued investment income and other debtors	1,888	2,212

(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 2025 $m	31 Dec 2024 $m
Accruals and deferred income	329	238
Interest payable	37	35
Other creditors	2,365	2,575
Total accruals, deferred income and other creditors	2,731	2,848

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 2025 $m	31 Dec 2024 $m
Cash	2,164	1,923
Cash equivalents	5,542	3,849
Total cash and cash equivalents	7,706	5,772
Analysed as:
Held by the Group’s holding and non-regulated entities and available for general use	3,851	2,445
Other funds not available for general use by the Group, including funds held for the benefit of policyholders	3,855	3,327
Total cash and cash equivalents	7,706	5,772

The Group’s cash and cash equivalents are held in the following currencies as at 31 December 2025: USD 62 per cent, MYR 8 per cent, HKD 7 per

cent, SGD 5 per cent, GBP 3 per cent, and other currencies 15 per cent (31 December 2024: USD 54 per cent, MYR 11 per cent, HKD 6 per cent,

GBP 5 per cent, SGD 4 per cent and other currencies 20 per cent).

C1.4 Provisions

An analysis of movement in total provisions held is shown below:


	2025 $m	2024 $m
Balance at 1 Jan	218	224
Charge (credit) to income statement:
Additional provisions	218	136
Unused amounts released	(6)	(4)
Utilisation during the year	(170)	(133)
Exchange differences	8	(5)
Balance at 31 Dec	268	218

Of the $268 million of provisions at 31 December 2025 (31 December 2024: $218 million), which excludes any amounts attributable to

insurance contracts, the Group held $225 million (31 December 2024: $199 million) provisions for staff benefits, which are generally expected to

be paid out within the next three years.


	281 Prudential plc Annual Report 2025

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, whereby, subject to specific criteria, financial instruments are required to be accounted for under one of the following

categories 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 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 DPF. 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. An option is also available at initial recognition to irrevocably

designate a financial instrument as at FVTPL if doing so eliminates or significantly reduces accounting mismatches. The vast majority of the

financial investments of the Group are held at FVTPL.

– 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 based

on the expected credit loss approach, 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.

Valuation approach for level 2 fair valued assets and liabilities

A significant proportion of the Group’s level 2 assets are private holdings, structured securities and other national and non-national government

debt securities that are valued using observable inputs. 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. Level 3

assets of the Group consist primarily of property, infrastructure, private credit and private equity funds held by the participating funds and are

externally valued using the net asset value of the invested entities.

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.


	282 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

C2.2 Fair value measurement hierarchy

(a) Assets and liabilities at fair value

All of the Group’s financial instruments held at fair value are classified as fair value through profit or loss (FVTPL) at 31 December 2025 and

measured on a recurring basis.

The table below shows the assets and liabilities carried at fair value on a recurring basis 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.

Financial instruments at fair value


	31 Dec 2025 $m
	Level 1	Level 2	Level 3
	Quoted prices (unadjusted) in active markets	Valuation based on significant observable market inputs	Valuation based on significant unobservable market inputs	Total
			note (iii)
Loans ^{note (iv)}	–	344	–	344
Equity securities and holdings in collective investment schemes	78,744	5,537	5,277	89,558
Debt securities ^{note (i)}	70,327	21,622	102	92,051
Derivative assets	171	450	–	621
Derivative liabilities	(440)	(1,142)	–	(1,582)
Total financial investments, net of derivative liabilities	148,802	26,811	5,379	180,992
Investment contract liabilities without DPF ^{note (ii)}	–	(715)	–	(715)
Net asset value attributable to unit holders of consolidated investment funds	(2,263)	–	–	(2,263)
Total financial instruments at fair value	146,539	26,096	5,379	178,014
Percentage of total (%)	82%	15%	3%	100%


	31 Dec 2024 $m
	Level 1	Level 2	Level 3
	Quoted prices (unadjusted) in active markets	Valuation based on significant observable market inputs	Valuation based on significant unobservable market inputs	Total
			note (iii)
Loans ^{note (iv)}	–	364	–	364
Equity securities and holdings in collective investment schemes	72,574	5,311	3,117	81,002
Debt securities ^{note (i)}	56,147	17,620	37	73,804
Derivative assets	17	378	–	395
Derivative liabilities	(493)	(1,124)	–	(1,617)
Total financial investments, net of derivative liabilities	128,245	22,549	3,154	153,948
Investment contract liabilities without DPF ^{note (ii)}	–	(748)	–	(748)
Net asset value attributable to unit holders of consolidated investment funds	(2,679)	–	–	(2,679)
Total financial instruments at fair value	125,566	21,801	3,154	150,521
Percentage of total (%)	83%	15%	2%	100%

Notes

(i) Of the total level 2 debt securities of $21,622 million at 31 December 2025 (31 December 2024: $17,620 million), $7 million (31 December 2024: $12 million) are valued

internally. Internal valuations are inherently more subjective than external valuations.

(ii) Investment contract liabilities without DPF are not quoted in an active market and do not have readily available published prices. Their fair values are determined using

valuation techniques with all significant inputs used in the valuation being observable. Therefore, these investment contract liabilities are classified in level 2.

(iii) At 31 December 2025, the Group held $5,379 million (31 December 2024: $3,154 million) of net financial instruments at fair value within level 3. This represents 3 per

cent (31 December 2024: 2 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 $5,277 million (31 December 2024: $3,117 million) consisting primarily of property, infrastructure,

private credit and private equity funds, which are externally valued using the net asset value of the invested funds; and

– Debt securities of $102 million (31 December 2024: $37 million).

Of the net financial instruments of $5,379 million (31 December 2024: $3,154 million) referred to above:

– A net asset of $5,266 million (31 December 2024: $3,088 million) is held by the Group’s participating 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 $113 million (31 December 2024: $66 million), which are primarily externally valued. If the value of all

these level 3 financial instruments decreased by 10 per cent, the change in valuation would be $(11) million (31 December 2024: $(7) million), which would reduce

shareholders’ equity by this amount before tax.

(iv) Of the Group’s financial assets and financial liabilities at 31 December 2025, only loans contain more than one asset classification. The loans carried at amortised cost

and their fair value are provided in note (c) below.


	283 Prudential plc Annual Report 2025

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 that 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 2025, the transfers between levels within the portfolios were primarily transfers from level 1 to level 2 of $1,497 million (2024:

$940 million) and transfers from level 2 to level 1 of $1,416 million (2024: $2,007 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 no transfers into level 3 and a small transfer from Level 3 into level 1 as shown in the table below.

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 year to that presented at the end of the

year.

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 FVTPL 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 presentation currency of USD.


	31 Dec 2025 $m
	Equity securities and holdings in collective investment schemes	Debt securities	Group total
Balance at 1 Jan	3,117	37	3,154
Total gain in income statement ^note	118	2	120
Exchange differences recorded in other comprehensive income	47	4	51
Purchases and other additions	2,376	60	2,436
Sales, maturities and capital distribution	(367)	(1)	(368)
Transfers out of Level 3	(14)	–	(14)
Balance at 31 Dec	5,277	102	5,379


	31 Dec 2024 $m
	Equity securities and holdings in collective investment schemes	Debt securities	Group total
Balance at 1 Jan	2,864	40	2,904
Total gain in income statement ^note	219	3	222
Exchange differences recorded in other comprehensive income	(31)	(1)	(32)
Purchases and other additions	462	2	464
Sales, maturities and capital distribution	(397)	(7)	(404)
Balance at 31 Dec	3,117	37	3,154

Note

Of the total net gain in the income statement of $120 million at 2025 (2024: $222 million), $121 million (2024: $(143) million) relates to unrealised gains (losses) on

financial instruments still held at the end of the year, which can be analysed as follows:


	2025 $m	2024 $m
Equity securities and holdings in collective investment schemes	119	(146)
Debt securities	2	3
Net unrealised gains (losses) on financial instruments still held at the end of the year	121	(143)


	284 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(b) Assets and liabilities carried 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 2025 $m		31 Dec 2024 $m
	Carrying value	Fair value	Carrying value	Fair value
Financial assets
Loans ^{note (i)}	207	260	153	163
Financial liabilities
Core structural borrowings of shareholder-financed businesses^{note (ii)}	(4,459)	(4,402)	(3,925)	(3,694)
Operational borrowings (excluding lease liabilities) ^{note (i)}	(521)	(521)	(540)	(540)
Obligations under funding, securities lending and sale and repurchase agreements ^{note (i)}	(745)	(745)	(272)	(272)
Net financial liabilities at amortised cost ^{note (iii)}	(5,518)	(5,408)	(4,584)	(4,343)

Notes

(i) The fair value of loans, operational borrowings (excluding lease liabilities) and obligations under funding, securities lending and sale and repurchase agreements

has been estimated from the discounted cash flows expected to be received or paid.

(ii) The fair value of the subordinated and senior debt issued by the Group is determined using quoted prices from independent third parties.

(iii) All financial assets and liabilities in the table above have been classified within level 2 at 31 December 2025 and 2024, reflecting the observability of the inputs

used to derive their fair value.

C2.3 Additional information on financial instruments

(a) Financial assets and liabilities by IFRS 9 category

The following table presents measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as shown

on the Consolidated statement of financial position as at 31 December 2025 and 2024.


Financial instruments	Classification under IFRS 9
Financial assets
Loans	Amortised cost (31 Dec 2025: $207 million; 31 Dec 2024: $153 million)
	Mandatorily at FVTPL (31 Dec 2025: $344 million; 31 Dec 2024: $364 million)
Equity securities and portfolio holdings in collective investment schemes	Mandatorily at FVTPL
Debt securities	Mandatorily at FVTPL
Derivative assets	Mandatorily at FVTPL
Accrued investment income	Amortised cost
Deposits	Amortised cost
Cash and cash equivalents	Amortised cost
Other debtors	Amortised cost
Financial liabilities
Investment contract liabilities without DPF	Mandatorily at FVTPL
Derivative liabilities	Mandatorily at FVTPL
Core structural borrowings of shareholder-financed businesses	Amortised cost
Operational borrowings	Amortised cost
Obligations under funding, securities lending and sale and repurchase agreements	Amortised cost
Net asset value attributable to unit holders of consolidated investment funds ^note	Designated at FVTPL
Other liabilities	Amortised cost

Note

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.


	285 Prudential plc Annual Report 2025

(b) 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 on debt with a stated maturity) 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 relative to the carrying value.


	31 Dec 2025 $m
	Total carrying value	Contractual maturity profile for financial liabilities
	Total carrying value	1 year or less	1-2 years	2-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	No stated maturity	Total undiscounted cash flows
Investment contracts without DPF ^note	715	12	19	96	84	18	7	4	480	720
Core structural borrowings of shareholder-financed businesses	4,459	147	148	724	3,610	–	–	–	750	5,379
Lease liabilities under IFRS 16	310	96	73	111	97	5	–	–	–	382
Other operational borrowings	521	521	–	–	–	–	–	–	–	521
Obligations under funding, securities lending and sale and repurchase agreements	745	745	–	–	–	–	–	–	–	745
Accruals, deferred income and other liabilities	2,731	2,466	–	–	–	–	–	–	288	2,754
Net asset value attributable to unit holders of consolidated investment funds	2,263	2,263	–	–	–	–	–	–	–	2,263
Total non-derivative financial liabilities	11,744	6,250	240	931	3,791	23	7	4	1,518	12,764


	31 Dec 2024 $m
	Total carrying value	Contractual maturity profile for financial liabilities
	Total carrying value	1 year or less	1-2 years	2-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	No stated maturity	Total undiscounted cash flows
Investment contracts without DPF ^note	748	186	9	69	114	19	7	4	360	768
Core structural borrowings of shareholder-financed businesses	3,925	125	125	678	3,111	–	–	–	750	4,789
Lease liabilities under IFRS 16	257	84	71	111	18	–	–	–	–	284
Other operational borrowings	540	540	–	–	–	–	–	–	–	540
Obligations under funding, securities lending and sale and repurchase agreements	272	272	–	–	–	–	–	–	–	272
Accruals, deferred income and other liabilities	2,848	2,641	–	–	–	–	–	–	265	2,906
Net asset value attributable to unit holders of consolidated investment funds	2,679	2,679	–	–	–	–	–	–	–	2,679
Total non-derivative financial liabilities	11,269	6,527	205	858	3,243	19	7	4	1,375	12,238

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 charges, therefore, these

options are unlikely to be exercised in practice.


	286 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

Maturity analysis of derivatives

The following table shows the carrying value of the gross and net derivative positions.


	Carrying value of net derivatives $m
	Derivative assets	Derivative liabilities	Net derivative position
31 Dec 2025	621	(1,582)	(961)
31 Dec 2024	395	(1,617)	(1,222)

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 the Group’s financial instruments are carried at FVTPL. The total value of assets held at amortised cost is $16,047 million

(31 December 2024: $13,603 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 2025, there are

immaterial amounts that are past their due date totalling $5 million (31 December 2024: $4 million).

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 (c) below.

The exchange gains (losses) on financial instruments, recognised in the income statement in 2025, except for those arising on financial

instruments measured at FVTPL, is $(22) million (2024: $(28) million).

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. The Group has no fair value or cash flow

hedges under IFRS 9 at 31 December 2025 and 2024, 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. In 2025, the Group designated the SGD-denominated core

structural borrowing as net investment hedge of the currency risk related to the Group’s investment in the Singapore business and the carrying

value is shown in note C5.1. During the year ended 31 December 2025, a loss of $(1) million on the translation of this borrowing was recognised

in other comprehensive income to offset an equal movement on translation of the hedged portion of the net investments in the Singapore

business operations. This net investment hedge was 100 per cent effective. The total accumulated balance in relation to this net investment

hedge recognised in the translation reserve within equity as at 31 December 2025 was a charge of $(1) million.

Derivatives held and their purpose

The Group enters into a variety of exchange traded and over-the-counter derivative financial instruments, including futures, forwards, options,

and swaps.

All over-the-counter derivative transactions are conducted under standardised ISDA (International Swaps and Derivatives Association Inc) master

agreements. Collateral agreements are generally in place between the individual entities and relevant counterparties under 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 where applicable.

Derivatives are used for efficient portfolio management to obtain cost effective 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.

(d) 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.


	287 Prudential plc Annual Report 2025

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.

At 31 December 2025 , the fair value of the collateral held in respect of reverse repurchase agreements, represented by the purchased securities,

was $1,579 million (31 December 2024: $2,871 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 2025, the Group had $1,798 million (31 December 2024: $1,565 million) of lent securities and assets subject to repurchase

agreements. The cash and securities collateral held or pledged under such agreements were $1,928 million (31 December 2024: $1,686 million).

Collateral and pledges under derivative transactions

At 31 December 2025, the Group had pledged $1,271 million (31 December 2024: $1,527 million) for liabilities and held collateral of $316

million (31 December 2024: $280 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 2025 $m
	Gross amount included in the balance sheet	Related amounts not offset in the balance sheet			Net amount included in the balance sheet
	Gross amount included in the balance sheet	Financial instruments	Cash collateral	Securities collateral	Net amount included in the balance sheet
	note (i)	note (ii)		note (iii)	note (iv)
Derivative assets	611	(270)	(298)	–	43
Reverse repurchase agreements	1,579	–	–	(1,579)	–
Total financial assets	2,190	(270)	(298)	(1,579)	43
Derivative liabilities	(1,566)	270	559	681	(56)
Securities lending and repurchase agreements	(745)	–	40	704	(1)
Total financial liabilities	(2,311)	270	599	1,385	(57)


	31 Dec 2024 $m
	Gross amount included in the balance sheet	Related amounts not offset in the balance sheet			Net amount included in the balance sheet
	Gross amount included in the balance sheet	Financial instruments	Cash collateral	Securities collateral	Net amount included in the balance sheet
	note (i)	note (ii)		note (iii)	note (iv)
Derivative assets	376	(106)	(267)	–	3
Reverse repurchase agreements	2,868	–	–	(2,868)	–
Total financial assets	3,244	(106)	(267)	(2,868)	3
Derivative liabilities	(1,597)	106	512	927	(52)
Securities lending and repurchase agreements	(272)	–	43	228	(1)
Total financial liabilities	(1,869)	106	555	1,155	(53)

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.


	288 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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 believes 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 total comprehensive equity,

which includes the CSM net of tax and other adjustments, that 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 balances of joint ventures and associate.

– Note C3.3 includes the disclosures in C3.2 which management believes 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 amounts of joint ventures and

associate 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 the portfolio of insurance and reinsurance (RI) contract assets and liabilities held on the Group’s

statement of financial position.


	Excluding JVs and associates $m						Including JVs and associates $m ^{note (i)}
	(Assets)		Liabilities		Net liabilities (assets)		(Assets)		Liabilities		Net liabilities (assets)
	Insurance	RI	Insurance	RI	Insurance	RI	Insurance	RI	Insurance	RI	Insurance	RI
					note (ii)						note (ii)
As at 31 Dec 2025
Best estimate liabilities (BEL)	(5,326)	(2,575)	152,016	562	146,690	(2,013)	(5,610)	(2,817)	174,675	618	169,065	(2,199)
Risk adjustment for non- financial risk (RA)	894	(171)	1,906	(38)	2,800	(209)	909	(237)	2,223	(42)	3,132	(279)
Contractual service margin (CSM)	2,664	(660)	20,576	116	23,240	(544)	2,834	(510)	22,584	97	25,418	(413)
Insurance contract balances ^notes ^C3.2^C3.3	(1,768)	(3,406)	174,498	640	172,730	(2,766)	(1,867)	(3,564)	199,482	673	197,615	(2,891)
Assets for insurance acquisition cash flows	(48)	–	–	–	(48)	–	(48)	–	–	–	(48)	–
Insurance and reinsurance contract liabilities (assets)	(1,816)	(3,406)	174,498	640	172,682	(2,766)	(1,915)	(3,564)	199,482	673	197,567	(2,891)

As at 31 Dec 2024
Best estimate liabilities (BEL)	(4,566)	(2,624)	127,942	423	123,376	(2,201)	(4,799)	(2,783)	148,867	461	144,068	(2,322)
Risk adjustment for non- financial risk (RA)	791	(99)	1,655	(44)	2,446	(143)	803	(128)	1,940	(47)	2,743	(175)
Contractual service margin (CSM)	2,462	(667)	17,968	157	20,430	(510)	2,599	(645)	19,862	144	22,461	(501)
Insurance contract balances ^notes ^C3.2 ^C3.3	(1,313)	(3,390)	147,565	536	146,252	(2,854)	(1,397)	(3,556)	170,669	558	169,272	(2,998)
Assets for insurance acquisition cash flows	(32)	–	1	–	(31)	–	(32)	–	1	–	(31)	–
Insurance and reinsurance contract liabilities (assets)	(1,345)	(3,390)	147,566	536	146,221	(2,854)	(1,429)	(3,556)	170,670	558	169,241	(2,998)

Notes

(i) The Group’s investments in joint ventures and associates are accounted for using the equity method. The Group’s share of insurance and reinsurance contract liabilities

and assets as shown above relate to the life business of Mainland China, India and Takaful business in Malaysia.

(ii) At 31 December 2025 and 2024, 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.


	289 Prudential plc Annual Report 2025

Adjusted total comprehensive equity


	Excluding JVs and associates	Group’s share related to JVs and associates	Including JVs and associates
	$m	$m	$m
As at 31 Dec 2025
Shareholders’ equity	17,354	2,763	20,117
CSM, net of reinsurance	22,696	2,309	25,005
Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders	871	–	871
Remove: CSM, net of reinsurance, attributable to non-controlling interests	(1,072)	–	(1,072)
Shareholders’ CSM, net of reinsurance	22,495	2,309	24,804
Less: Related tax adjustments	(2,316)	(537)	(2,853)
Adjusted total comprehensive equity	37,533	4,535	42,068

As at 31 Dec 2024
Shareholders’ equity	15,080	2,412	17,492
CSM, net of reinsurance	19,920	2,040	21,960
Remove: CSM asset attaching to reinsurance contracts wholly attributable to policyholders	789	–	789
Remove: CSM, net of reinsurance, attributable to non-controlling interests	(977)	–	(977)
Shareholders’ CSM, net of reinsurance	19,732	2,040	21,772
Less: Related tax adjustments	(2,134)	(470)	(2,604)
Adjusted total comprehensive equity	32,678	3,982	36,660


	290 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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
	2025 $m
	Insurance				Reinsurance
	BEL	RA	CSM	Total	BEL	RA	CSM	Total
			note (b)				note (b)
Opening assets	(4,566)	791	2,462	(1,313)	(2,624)	(99)	(667)	(3,390)
Opening liabilities	127,942	1,655	17,968	147,565	423	(44)	157	536
Net liabilities (assets) at 1 Jan	123,376	2,446	20,430	146,252	(2,201)	(143)	(510)	(2,854)
Changes that relate to future service
Changes in estimates that adjust the CSM	(2,038)	83	1,955	–	89	(42)	(47)	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	7	4	–	11	(11)	–	–	(11)
New contracts in the year	(2,770)	309	2,473	12	85	(16)	(71)	(2)
	(4,801)	396	4,428	23	163	(58)	(118)	(13)
Changes that relate to current service
Release of CSM to profit or loss	–	–	(2,438)	(2,438)	–	–	102	102
Release of risk adjustment to profit or loss	–	(272)	–	(272)	–	19	–	19
Experience adjustments	(145)	–	–	(145)	140	–	–	140
	(145)	(272)	(2,438)	(2,855)	140	19	102	261
Changes that relate to past service
Adjustments to assets and liabilities for incurred claims	(4)	–	–	(4)	(35)	(1)	–	(36)
Insurance service result	(4,950)	124	1,990	(2,836)	268	(40)	(16)	212

Net finance (income) expense
Accretion of interest on GMM contracts ^{note (i)}	(4)	45	296	337	(114)	(7)	(30)	(151)
Other net finance (income) expense	14,215	99	(39)	14,275	331	(17)	(4)	310
	14,211	144	257	14,612	217	(24)	(34)	159
Total amount recognised in income statement	9,261	268	2,247	11,776	485	(64)	(50)	371
Effect of movements in exchange rates	3,287	86	563	3,936	(59)	(2)	16	(45)
Total amount recognised in comprehensive income	12,548	354	2,810	15,712	426	(66)	(34)	326

Cash flows
Premiums received net of ceding commissions paid	28,059	–	–	28,059	(1,403)	–	–	(1,403)
Insurance acquisition cash flows	(5,004)	–	–	(5,004)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (ii)}	(12,167)	–	–	(12,167)	1,165	–	–	1,165
Total cash flows	10,888	–	–	10,888	(238)	–	–	(238)

Other changes ^{note (iii)}	(122)	–	–	(122)	–	–	–	–

Closing assets	(5,326)	894	2,664	(1,768)	(2,575)	(171)	(660)	(3,406)
Closing liabilities	152,016	1,906	20,576	174,498	562	(38)	116	640
Net liabilities (assets) at 31 Dec	146,690	2,800	23,240	172,730	(2,013)	(209)	(544)	(2,766)


	291 Prudential plc Annual Report 2025


	Excluding JVs and associates
	2024 $m
	Insurance				Reinsurance
	BEL	RA	CSM	Total	BEL	RA	CSM	Total
			note (b)				note (b)
Opening assets	(3,952)	631	2,173	(1,148)	(1,175)	84	(1,335)	(2,426)
Opening liabilities	120,115	1,713	18,011	139,839	1,182	(21)	(10)	1,151
Net liabilities (assets) at 1 Jan	116,163	2,344	20,184	138,691	7	63	(1,345)	(1,275)
Changes that relate to future service
Changes in estimates that adjust the CSM	(178)	25	153	–	(475)	(216)	691	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	100	24	–	124	49	–	–	49
New contracts in the year	(2,709)	315	2,401	7	(10)	(5)	14	(1)
	(2,787)	364	2,554	131	(436)	(221)	705	48
Changes that relate to current service
Release of CSM to profit or loss	–	–	(2,286)	(2,286)	–	–	159	159
Release of risk adjustment to profit or loss	–	(257)	–	(257)	–	16	–	16
Experience adjustments	(153)	–	–	(153)	112	–	–	112
	(153)	(257)	(2,286)	(2,696)	112	16	159	287
Changes that relate to past service
Adjustments to assets and liabilities for incurred claims	(34)	4	–	(30)	(33)	–	–	(33)
Insurance service result	(2,974)	111	268	(2,595)	(357)	(205)	864	302

Net finance (income) expense
Accretion of interest on GMM contracts ^{note (i)}	(24)	49	270	295	(73)	(6)	(30)	(109)
Other net finance (income) expense	3,849	3	7	3,859	435	5	7	447
	3,825	52	277	4,154	362	(1)	(23)	338
Total amount recognised in income statement	851	163	545	1,559	5	(206)	841	640
Effect of movements in exchange rates	(1,423)	(41)	(299)	(1,763)	15	–	(6)	9
Total amount recognised in comprehensive income	(572)	122	246	(204)	20	(206)	835	649

Cash flows
Premiums received net of ceding commissions paid	24,283	–	–	24,283	(2,837)	–	–	(2,837)
Insurance acquisition cash flows	(4,798)	–	–	(4,798)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (ii)}	(11,427)	–	–	(11,427)	612	–	–	612
Total cash flows	8,058	–	–	8,058	(2,225)	–	–	(2,225)

Other changes ^{note (iii)}	(273)	(20)	–	(293)	(3)	–	–	(3)

Closing assets	(4,566)	791	2,462	(1,313)	(2,624)	(99)	(667)	(3,390)
Closing liabilities	127,942	1,655	17,968	147,565	423	(44)	157	536
Net liabilities (assets) at 31 Dec	123,376	2,446	20,430	146,252	(2,201)	(143)	(510)	(2,854)

Notes

(i) Accretion of interest includes interest on policy loans.

(ii) Including investment component.

(iii) Other changes include movements in insurance contract liabilities arising from adjustments to remove the incurred non-cash expenses (such as depreciation and

amortisation) from insurance contract asset and liability balances. In 2024, Other changes also included the net insurance and reinsurance liabilities of businesses

classified as held for sale.


	292 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(b) CSM transit ion approach

The table below provides an analysis of CSM by transition approach excluding JVs and associates:


	Insurance contracts (excluding JVs and associates)
	2025 $m				2024 $m
	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM
Balance at 1 Jan	747	3,271	16,412	20,430	829	3,674	15,681	20,184
Changes that relate to future service
Changes in estimates that adjust the CSM	19	175	1,761	1,955	(11)	162	2	153
New contracts in the year	–	–	2,473	2,473	–	–	2,401	2,401
	19	175	4,234	4,428	(11)	162	2,403	2,554
Changes that relate to current service
Release of CSM to profit or loss	(109)	(375)	(1,954)	(2,438)	(114)	(418)	(1,754)	(2,286)
	(90)	(200)	2,280	1,990	(125)	(256)	649	268
Net finance (income) expenses from insurance contracts	27	3	227	257	35	(60)	302	277
Effect of movements in exchange rates	53	98	412	563	8	(87)	(220)	(299)
Balance at 31 Dec	737	3,172	19,331	23,240	747	3,271	16,412	20,430

* 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)
	2025 $m				2024 $m
	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM
Balance at 1 Jan	–	(27)	(483)	(510)	–	(45)	(1,300)	(1,345)
Changes that relate to future service
Changes in estimates that adjust the CSM	–	–	(47)	(47)	–	13	678	691
New contracts in the year	–	–	(71)	(71)	–	–	14	14
	–	–	(118)	(118)	–	13	692	705
Changes that relate to current service
Release of CSM to profit or loss	–	2	99	102	–	5	154	159
	–	2	(19)	(16)	–	18	846	864
Net finance (income) expenses from reinsurance contracts	–	(1)	(32)	(34)	–	(1)	(22)	(23)
Effect of movements in exchange rates	–	–	16	16	–	1	(7)	(6)
Balance at 31 Dec	–	(26)	(518)	(544)	–	(27)	(483)	(510)

* 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.


	293 Prudential plc Annual Report 2025

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
	2025 $m
	Insurance				Reinsurance
	Liabilities for remaining coverage		Liabilities for incurred claims		Liabilities for remaining coverage		Liabilities for incurred claims
	Excluding loss component	Loss component	Liabilities for incurred claims	Total	Excluding loss-recovery component	Loss- recovery component	Liabilities for incurred claims	Total
		note (i)				note (i)
Opening assets	(1,480)	38	129	(1,313)	(2,783)	(66)	(541)	(3,390)
Opening liabilities	144,561	881	2,123	147,565	542	(20)	14	536
Net liabilities (assets) at 1 Jan	143,081	919	2,252	146,252	(2,241)	(86)	(527)	(2,854)

Insurance revenue
Contracts measured under the modified retrospective approach	(427)	–	–	(427)
Contracts measured under the fair value approach	(1,106)	–	–	(1,106)
Other contracts ^{note (ii)}	(9,547)	–	–	(9,547)
	(11,080)	–	–	(11,080)
Insurance service expense
Incurred claims and other directly attributable expenses	–	(65)	4,855	4,790
Amortisation of insurance acquisition cash flows	3,435	–	–	3,435
Losses or reversal of losses on onerous contracts	–	23	–	23
Adjustments to liability for incurred claims	–	–	(4)	(4)
	3,435	(42)	4,851	8,244
Net (income) expense from reinsurance contracts held					1,407	(14)	(1,181)	212
Insurance service result	(7,645)	(42)	4,851	(2,836)	1,407	(14)	(1,181)	212

Investment components and premium refunds	(7,799)	–	7,799	–	(99)	–	99	–
Net finance (income) expenses from insurance and reinsurance contracts	14,526	25	61	14,612	157	1	1	159
Total amount recognised in income statement	(918)	(17)	12,711	11,776	1,465	(13)	(1,081)	371
Effect of movement in exchange rates	3,866	12	58	3,936	(42)	–	(3)	(45)
Total amount recognised in comprehensive income	2,948	(5)	12,769	15,712	1,423	(13)	(1,084)	326

Cash flows
Premiums received net of ceding commissions paid	28,059	–	–	28,059	(1,403)	–	–	(1,403)
Insurance acquisition cash flows	(5,004)	–	–	(5,004)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (iii)}	–	–	(12,167)	(12,167)	–	–	1,165	1,165
Total cash flows	23,055	–	(12,167)	10,888	(1,403)	–	1,165	(238)

Other changes ^{note (iv)}	(73)	–	(49)	(122)	–	–	–	–

Closing assets	(2,020)	85	167	(1,768)	(2,842)	(78)	(486)	(3,406)
Closing liabilities	171,031	829	2,638	174,498	621	(21)	40	640
Net liabilities (assets) at 31 Dec	169,011	914	2,805	172,730	(2,221)	(99)	(446)	(2,766)


	294 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


	Excluding JVs and associates
	2024 $m
	Insurance				Reinsurance
	Liabilities for remaining coverage		Liabilities for incurred claims		Liabilities for remaining coverage		Liabilities for incurred claims
	Excluding loss component	Loss component	Liabilities for incurred claims	Total	Excluding loss-recovery component	Loss-recovery component	Liabilities for incurred claims	Total
		note (i)				note (i)
Opening assets	(1,285)	20	117	(1,148)	(2,023)	(119)	(284)	(2,426)
Opening liabilities	137,019	805	2,015	139,839	1,200	(15)	(34)	1,151
Net liabilities (assets) at 1 Jan	135,734	825	2,132	138,691	(823)	(134)	(318)	(1,275)

Insurance revenue
Contracts measured under the modified retrospective approach	(415)	–	–	(415)
Contracts measured under the fair value approach	(1,176)	–	–	(1,176)
Other contracts ^{note (ii)}	(8,767)	–	–	(8,767)
	(10,358)	–	–	(10,358)
Insurance service expense
Incurred claims and other directly attributable expenses	–	(46)	4,551	4,505
Amortisation of insurance acquisition cash flows	3,157	–	–	3,157
Losses or reversal of losses on onerous contracts	–	131	–	131
Adjustments to liability for incurred claims	–	–	(30)	(30)
	3,157	85	4,521	7,763
Net (income) expense from reinsurance contracts held	–	–	–	–	832	48	(578)	302
Insurance service result	(7,201)	85	4,521	(2,595)	832	48	(578)	302

Investment components and premium refunds	(7,008)	–	7,008	–	240	–	(240)	–
Net finance (income) expenses from insurance and reinsurance contracts	4,007	47	100	4,154	338	–	–	338
Total amount recognised in income statement	(10,202)	132	11,629	1,559	1,410	48	(818)	640
Effect of movement in exchange rates	(1,695)	(18)	(50)	(1,763)	12	1	(4)	9
Total amount recognised in comprehensive income	(11,897)	114	11,579	(204)	1,422	49	(822)	649

Cash flows
Premiums received net of ceding commissions paid	24,283	–	–	24,283	(2,837)	–	–	(2,837)
Insurance acquisition cash flows	(4,798)	–	–	(4,798)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (iii)}	–	–	(11,427)	(11,427)	–	–	612	612
Total cash flows	19,485	–	(11,427)	8,058	(2,837)	–	612	(2,225)

Other changes ^{note (iv)}	(241)	(20)	(32)	(293)	(4)	–	1	(3)

Closing assets	(1,480)	38	129	(1,313)	(2,783)	(66)	(541)	(3,390)
Closing liabilities	144,561	881	2,123	147,565	542	(20)	14	536
Net liabilities (assets) at 31 Dec	143,081	919	2,252	146,252	(2,241)	(86)	(527)	(2,854)

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) Including investment component.

(iv) Other changes include adjustments to remove the incurred non-cash expenses (such as depreciation and amortisation) from insurance contract asset and liability

balances. In 2024, Other changes also included the net insurance and reinsurance liabilities of businesses classified as held for sale.


	295 Prudential plc Annual Report 2025

(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
	2025 $m			2024 $m
	Profitable contracts issued	Onerous contracts issued	Total	Profitable contracts issued	Onerous contracts issued	Total
Estimate of present value of expected future cash outflows:
Insurance acquisition cash flows	5,030	95	5,125	4,493	95	4,588
Claims and other directly attributable expenses	21,314	781	22,095	19,655	592	20,247
	26,344	876	27,220	24,148	687	24,835
Estimate of present value of expected future cash inflows	(29,126)	(864)	(29,990)	(26,861)	(683)	(27,544)
Risk adjustment for non-financial risk	309	–	309	312	3	315
CSM	2,473	–	2,473	2,401	–	2,401
Loss recognised on initial recognition	–	12	12	–	7	7

(ii) Reinsurance contracts


	Excluding JVs and associates
	2025 $m			2024 $m
	Contracts initiated without loss-recovery component	Contracts initiated with loss-recovery component	Total	Contracts initiated without loss-recovery component	Contracts initiated with loss-recovery component	Total
Estimate of present value of expected future cash outflows	1,610	–	1,610	2,329	–	2,329
Estimate of present value of expected future cash inflows	(1,523)	(2)	(1,525)	(2,338)	(1)	(2,339)
Risk adjustment for non-financial risk	(16)	–	(16)	(5)	–	(5)
CSM	(71)	–	(71)	14	–	14
Profit recognised on initial recognition	–	(2)	(2)	–	(1)	(1)


	296 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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, excluding assets for insurance

acquisition cash flows, and including the Group’s share of insurance and reinsurance contract assets and liabilities related to the life JVs and

associates is set out below:


	Including JVs and associates
	2025 $m
	Insurance				Reinsurance
	BEL	RA	CSM	Total	BEL	RA	CSM	Total
			note (b)				note (b)
Opening assets	(4,799)	803	2,599	(1,397)	(2,783)	(128)	(645)	(3,556)
Opening liabilities	148,867	1,940	19,862	170,669	461	(47)	144	558
Net liabilities (assets) at 1 Jan	144,068	2,743	22,461	169,272	(2,322)	(175)	(501)	(2,998)
Changes that relate to future service
Changes in estimates that adjust the CSM	(1,960)	91	1,869	–	104	(46)	(58)	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	14	6	–	20	(14)	–	–	(14)
New contracts in the year	(3,084)	350	2,777	43	(6)	(55)	58	(3)
	(5,030)	447	4,646	63	84	(101)	–	(17)
Changes that relate to current service
Release of CSM to profit or loss	–	–	(2,656)	(2,656)	–	–	102	102
Release of risk adjustment to profit or loss	–	(307)	–	(307)	–	24	–	24
Experience adjustments	(159)	–	–	(159)	148	–	–	148
	(159)	(307)	(2,656)	(3,122)	148	24	102	274
Changes that relate to past service
Adjustments to assets and liabilities for incurred claims	(18)	(1)	–	(19)	(27)	(1)	–	(28)
Insurance service result	(5,207)	139	1,990	(3,078)	205	(78)	102	229

Net finance (income) expense
Accretion of interest on GMM contracts ^{note (i)}	212	54	376	642	(121)	(9)	(28)	(158)
Other net finance (income) expense	15,204	100	(39)	15,265	332	(17)	(4)	311
	15,416	154	337	15,907	211	(26)	(32)	153
Total amount recognised in income statement	10,209	293	2,327	12,829	416	(104)	70	382
Effect of movements in exchange rates	3,681	96	630	4,407	(56)	–	18	(38)
Total amount recognised in comprehensive income	13,890	389	2,957	17,236	360	(104)	88	344

Cash flows
Premiums received net of ceding commissions paid	32,098	–	–	32,098	(1,445)	–	–	(1,445)
Insurance acquisition cash flows	(5,524)	–	–	(5,524)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (ii)}	(15,345)	–	–	(15,345)	1,208	–	–	1,208
Total cash flows	11,229	–	–	11,229	(237)	–	–	(237)

Other changes ^{note (iii)}	(122)	–	–	(122)	–	–	–	–

Closing assets	(5,610)	909	2,834	(1,867)	(2,817)	(237)	(510)	(3,564)
Closing liabilities	174,675	2,223	22,584	199,482	618	(42)	97	673
Net liabilities (assets) at 31 Dec	169,065	3,132	25,418	197,615	(2,199)	(279)	(413)	(2,891)


	297 Prudential plc Annual Report 2025


	Including JVs and associates
	2024 $m
	Insurance				Reinsurance
	BEL	RA	CSM	Total	BEL	RA	CSM	Total
			note (b)				note (b)
Opening assets	(3,998)	630	2,176	(1,192)	(1,315)	67	(1,321)	(2,569)
Opening liabilities	139,673	1,969	20,176	161,818	1,222	(24)	(19)	1,179
Net liabilities (assets) at 1 Jan	135,675	2,599	22,352	160,626	(93)	43	(1,340)	(1,390)
Changes that relate to future service
Changes in estimates that adjust the CSM	(57)	31	26	–	(473)	(225)	698	–
Changes in estimates that result in losses or reversal of losses on onerous contracts	128	29	–	157	43	–	–	43
New contracts in the year	(2,894)	349	2,585	40	(4)	(8)	11	(1)
	(2,823)	409	2,611	197	(434)	(233)	709	42
Changes that relate to current service
Release of CSM to profit or loss	–	–	(2,511)	(2,511)	–	–	159	159
Release of risk adjustment to profit or loss	–	(287)	–	(287)	–	19	–	19
Experience adjustments	(114)	–	–	(114)	116	–	–	116
	(114)	(287)	(2,511)	(2,912)	116	19	159	294
Changes that relate to past service
Adjustments to assets and liabilities for incurred claims	(73)	2	–	(71)	(30)	–	–	(30)
Insurance service result	(3,010)	124	100	(2,786)	(348)	(214)	868	306

Net finance (income) expense
Accretion of interest on GMM contracts ^{note (i)}	243	56	350	649	(80)	(7)	(29)	(116)
Other net finance (income) expense	5,367	28	7	5,402	432	3	8	443
	5,610	84	357	6,051	352	(4)	(21)	327
Total amount recognised in income statement	2,600	208	457	3,265	4	(218)	847	633
Effect of movements in exchange rates	(2,003)	(44)	(348)	(2,395)	18	–	(8)	10
Total amount recognised in comprehensive income	597	164	109	870	22	(218)	839	643

Cash flows
Premiums received net of ceding commissions paid	27,990	–	–	27,990	(2,931)	–	–	(2,931)
Insurance acquisition cash flows	(5,226)	–	–	(5,226)	–	–	–	–
Claims and other insurance service expenses net of recoveries from reinsurance received ^{note (ii)}	(14,694)	–	–	(14,694)	683	–	–	683
Total cash flows	8,070	–	–	8,070	(2,248)	–	–	(2,248)

Other changes ^{note (iii)}	(274)	(20)	–	(294)	(3)	–	–	(3)

Closing assets	(4,799)	803	2,599	(1,397)	(2,783)	(128)	(645)	(3,556)
Closing liabilities	148,867	1,940	19,862	170,669	461	(47)	144	558
Net liabilities (assets) at 31 Dec	144,068	2,743	22,461	169,272	(2,322)	(175)	(501)	(2,998)

Notes

(i) Accretion of interest includes interest on policy loans.

(ii) Including investment component.

(iii) Other changes include movements in insurance contract liabilities arising from adjustments to remove the incurred non-cash expenses (such as depreciation and

amortisation) from insurance contract asset and liability balances. In 2024, Other changes also included the net insurance and reinsurance liabilities of businesses

classified as held for sale.


	298 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(b) Analysis of CSM by transition approach including JVs and associates


	Insurance contracts (including JVs and associates)
	2025 $m				2024 $m
	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM
Balance at 1 Jan	1,683	3,690	17,088	22,461	1,922	4,143	16,287	22,352
Changes that relate to future service
Changes in estimates that adjust the CSM	(8)	208	1,669	1,869	(81)	131	(24)	26
New contracts in the year	–	–	2,777	2,777	–	–	2,585	2,585
	(8)	208	4,446	4,646	(81)	131	2,561	2,611
Changes that relate to current service
Release of CSM to profit or loss	(196)	(400)	(2,060)	(2,656)	(209)	(442)	(1,860)	(2,511)
	(204)	(192)	2,386	1,990	(290)	(311)	701	100
Net finance (income) expenses from insurance contracts	62	10	265	337	73	(53)	337	357
Effect of movements in exchange rates	93	123	414	630	(22)	(89)	(237)	(348)
Balance at 31 Dec	1,634	3,631	20,153	25,418	1,683	3,690	17,088	22,461

* 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 the Mainland China joint venture, 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
Mainland China	n/a	2016 – 2021	Pre-2016
Hong Kong	2010 – 2021	n/a	Pre-2010
Singapore	2009 – 2021	n/a	Pre-2009
Malaysia	2010 – 2021 (Unit-linked) 2010 – 2021 (Non- participating)	2000 – 2009 (Unit-linked)	Pre-1999 (Unit-linked) Pre-2009 (Non-participating) Pre-2021 (Other)
Indonesia ^{note (i)}	2010 – 2021	2007 – 2009	Pre-2007
Growth markets and other	See note (ii)	See note (ii)	See note (ii)

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 (all

businesses), MRA for cohorts from 2008 - 2012 (Participating only) and FVA for cohorts prior to 2008 (Participating) and prior to 2013 (Non-participating). Taiwan

and the Philippines have applied the FRA for cohorts from 2010 – 2021 and FVA for all cohorts prior to 2010.


	299 Prudential plc Annual Report 2025


	Reinsurance contracts (including JVs and associates)
	2025 $m				2024 $m
	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM	Contracts under MRA	Contracts under FVA	Other contracts*	Total CSM
Balance at 1 Jan	–	(49)	(452)	(501)	–	(63)	(1,277)	(1,340)
Changes that relate to future service
Changes in estimates that adjust the CSM	–	(1)	(57)	(58)	–	8	690	698
New contracts in the year	–	–	58	58	–	–	11	11
	–	(1)	1	–	–	8	701	709
Changes that relate to current service
Release of CSM to profit or loss	–	4	98	102	–	7	152	159
	–	3	99	102	–	15	853	868
Net finance (income) expenses from reinsurance contracts	–	(2)	(30)	(32)	–	(2)	(19)	(21)
Effect of movements in exchange rates	–	(1)	19	18	–	1	(9)	(8)
Balance at 31 Dec	–	(49)	(364)	(413)	–	(49)	(452)	(501)

* 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.

The table below provides an analysis of portfolio of insurance and reinsurance contract balances, excluding assets for insurance acquisition cash

flows, by segment. The balances presented include the Group’s share of insurance contract balances relating to the life business of Mainland

China, India and Takaful business in Malaysia, which are accounted for on an equity method in the Consolidated statement of financial position.


	Insurance $m				Reinsurance $m
	Liabilities (assets)
	BEL	RA	CSM	Total	BEL	RA	CSM	Total
As at 31 Dec 2025
Mainland China	15,709	184	1,603	17,496	(85)	(39)	108	(16)
Hong Kong	73,749	836	10,657	85,242	(977)	(142)	(792)	(1,911)
Indonesia	1,805	157	691	2,653	3	(9)	1	(5)
Malaysia	8,328	515	2,330	11,173	10	(14)	19	15
Singapore	42,039	952	5,558	48,549	(1,212)	(17)	284	(945)
Growth markets and other	27,435	488	4,579	32,502	62	(58)	(33)	(29)
Total insurance segments	169,065	3,132	25,418	197,615	(2,199)	(279)	(413)	(2,891)

As at 31 Dec 2024
Mainland China	14,033	168	1,484	15,685	3	(3)	(22)	(22)
Hong Kong	63,056	698	8,840	72,594	(1,220)	(84)	(738)	(2,042)
Indonesia	1,839	189	622	2,650	11	(8)	12	15
Malaysia	7,032	418	2,135	9,585	15	(12)	14	17
Singapore	34,235	815	5,160	40,210	(1,169)	(15)	267	(917)
Growth markets and other	23,873	455	4,220	28,548	38	(53)	(34)	(49)
Total insurance segments	144,068	2,743	22,461	169,272	(2,322)	(175)	(501)	(2,998)


	300 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

Summarised movement analysis of insurance and reinsurance contract balances by segment


	Insurance $m
	Mainland China	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Total insurance segments
Net liabilities (assets) at 1 Jan 2024	14,833	70,073	3,142	8,394	37,419	26,765	160,626
Insurance service result	(104)	(971)	(213)	(290)	(683)	(525)	(2,786)
Net finance (income) expenses from insurance contracts
Accretion of interest on GMM contracts	286	2	48	94	7	212	649
Other net finance expense	811	(1,792)	54	857	3,672	1,800	5,402
	1,097	(1,790)	102	951	3,679	2,012	6,051
Total amount recognised in income statement	993	(2,761)	(111)	661	2,996	1,487	3,265

Effect of movements in exchange rates	(439)	376	(134)	252	(1,321)	(1,129)	(2,395)
Total amount recognised in comprehensive income	554	(2,385)	(245)	913	1,675	358	870
Total cash flows	298	4,907	(245)	279	1,170	1,661	8,070
Other changes	–	(1)	(2)	(1)	(54)	(236)	(294)
Net liabilities (assets) at 31 Dec 2024/1 Jan 2025	15,685	72,594	2,650	9,585	40,210	28,548	169,272
Insurance service result	(117)	(1,148)	(188)	(308)	(688)	(629)	(3,078)
Net finance (income) expenses from insurance contracts
Accretion of interest on GMM contracts	224	(24)	42	112	36	252	642
Other net finance (income) expense	508	8,207	247	375	4,277	1,651	15,265
	732	8,183	289	487	4,313	1,903	15,907
Total amount recognised in income statement	615	7,035	101	179	3,625	1,274	12,829

Effect of movements in exchange rates	730	(122)	(92)	1,011	2,536	344	4,407
Total amount recognised in comprehensive income	1,345	6,913	9	1,190	6,161	1,618	17,236
Total cash flows	466	5,736	(6)	397	2,232	2,404	11,229
Other changes	–	(1)	–	1	(54)	(68)	(122)
Net liabilities (assets) at 31 Dec 2025	17,496	85,242	2,653	11,173	48,549	32,502	197,615


	301 Prudential plc Annual Report 2025


	Reinsurance $m
	Mainland China	Hong Kong	Indonesia	Malaysia	Singapore	Growth markets and other	Total insurance segments
Net liabilities (assets) at 1 Jan 2024	(21)	(1,389)	9	25	6	(20)	(1,390)
Insurance service result	5	279	8	12	(11)	13	306
Net finance (income) expenses from reinsurance contracts
Accretion of interest on GMM contracts	(1)	(79)	–	1	(32)	(5)	(116)
Other net finance (income) expense	1	472	(1)	–	(23)	(6)	443
	–	393	(1)	1	(55)	(11)	327
Total amount recognised in income statement	5	672	7	13	(66)	2	633

Effect of movements in exchange rates	2	(11)	(1)	1	18	1	10
Total amount recognised in comprehensive income	7	661	6	14	(48)	3	643
Total cash flows	(8)	(1,314)	–	(22)	(875)	(29)	(2,248)
Other changes	–	–	–	–	–	(3)	(3)
Net liabilities (assets) at 31 Dec 2024/1 Jan 2025	(22)	(2,042)	15	17	(917)	(49)	(2,998)
Insurance service result	7	182	7	4	(2)	31	229
Net finance (income) expenses from reinsurance contracts
Accretion of interest on GMM contracts	(1)	(99)	1	2	(55)	(6)	(158)
Other net finance (income) expense	1	259	(6)	–	47	10	311
	–	160	(5)	2	(8)	4	153
Total amount recognised in income statement	7	342	2	6	(10)	35	382

Effect of movements in exchange rates	(1)	5	–	–	(53)	11	(38)
Total amount recognised in comprehensive income	6	347	2	6	(63)	46	344
Total cash flows	–	(216)	(23)	(8)	35	(25)	(237)
Other changes	–	–	1	–	–	(1)	–
Net liabilities (assets) at 31 Dec 2025	(16)	(1,911)	(5)	15	(945)	(29)	(2,891)


	302 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(d) Contractual service margin

The following tables illustrate when the Group expects to recognise the remaining CSM in profit or loss after the reporting date based on the

assumptions and economics in place at the year ends shown. Future new business is excluded.

(i) Insurance contracts – expected recognition of the CSM


	31 Dec 2025 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	2,295	213	2,508
After 1 year to 2 years	2,040	185	2,225
After 2 years to 3 years	1,835	160	1,995
After 3 years to 4 years	1,634	140	1,774
After 4 years to 5 years	1,471	124	1,595
After 5 years to 10 years	5,261	444	5,705
After 10 years to 15 years	3,424	303	3,727
After 15 years to 20 years	2,091	211	2,302
After 20 years	3,189	398	3,587
Total insurance CSM	23,240	2,178	25,418


	31 Dec 2024 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	2,092	214	2,306
After 1 year to 2 years	1,863	181	2,044
After 2 years to 3 years	1,666	156	1,822
After 3 years to 4 years	1,495	136	1,631
After 4 years to 5 years	1,323	119	1,442
After 5 years to 10 years	4,653	436	5,089
After 10 years to 15 years	2,988	278	3,266
After 15 years to 20 years	1,777	187	1,964
After 20 years	2,573	324	2,897
Total insurance CSM	20,430	2,031	22,461

(ii) Reinsurance contracts – expected recognition of the CSM


	31 Dec 2025 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	(65)	7	(58)
After 1 year to 2 years	(56)	7	(49)
After 2 years to 3 years	(50)	6	(44)
After 3 years to 4 years	(47)	6	(41)
After 4 years to 5 years	(43)	6	(37)
After 5 years to 10 years	(128)	23	(105)
After 10 years to 15 years	(58)	16	(42)
After 15 years to 20 years	(36)	20	(16)
After 20 years	(61)	40	(21)
Total reinsurance CSM	(544)	131	(413)


	303 Prudential plc Annual Report 2025


	31 Dec 2024 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	(55)	(4)	(59)
After 1 year to 2 years	(48)	2	(46)
After 2 years to 3 years	(45)	2	(43)
After 3 years to 4 years	(40)	2	(38)
After 4 years to 5 years	(37)	1	(36)
After 5 years to 10 years	(125)	5	(120)
After 10 years to 15 years	(64)	2	(62)
After 15 years to 20 years	(36)	1	(35)
After 20 years	(60)	(2)	(62)
Total reinsurance CSM	(510)	9	(501)

(e) Maturity analysis of the future cash flows of insurance and reinsurance contract liabilities

The following table shows the maturity profile of the expected future cash flows on a discounted basis (as included in the BEL) relating to

insurance and reinsurance contract liabilities, respectively. The amounts in the table below include the expected amounts payable on demand at

a timing of when they are expected to occur over the outstanding duration of the existing business. At 31 December 2025, the amounts payable

on demand from insurance contracts, excluding JVs and associates, are $136,648 million (31 December 2024: $123,724 million).

(i) Insurance contract liabilities – expected cash flows (discounted)


	31 Dec 2025 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	(1,134)	(92)	(1,226)
After 1 year to 2 years	(918)	509	(409)
After 2 years to 3 years	2,096	454	2,550
After 3 years to 4 years	4,286	495	4,781
After 4 years to 5 years	6,279	483	6,762
After 5 years to 10 years	29,121	2,746	31,867
After 10 years to 15 years	27,742	2,832	30,574
After 15 years to 20 years	21,275	2,656	23,931
After 20 years*	63,269	12,576	75,845
Total expected future cash flows from insurance contract liabilities	152,016	22,659	174,675


	31 Dec 2024 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	(2,317)	(178)	(2,495)
After 1 year to 2 years	(910)	439	(471)
After 2 years to 3 years	1,140	943	2,083
After 3 years to 4 years	3,351	683	4,034
After 4 years to 5 years	4,707	772	5,479
After 5 years to 10 years	22,466	2,734	25,200
After 10 years to 15 years	21,715	2,686	24,401
After 15 years to 20 years	18,396	2,159	20,555
After 20 years*	59,394	10,687	70,081
Total expected future cash flows from insurance contract liabilities	127,942	20,925	148,867

* Including items that have no stated maturity.


	304 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(ii) Reinsurance contract liabilities – expected cash flows (discounted)


	31 Dec 2025 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	103	18	121
After 1 year to 2 years	104	(1)	103
After 2 years to 3 years	60	(1)	59
After 3 years to 4 years	51	–	51
After 4 years to 5 years	45	–	45
After 5 years to 10 years	111	(1)	110
After 10 years to 15 years	14	1	15
After 15 years to 20 years	(8)	4	(4)
After 20 years	82	36	118
Total expected future cash flows from reinsurance contract liabilities	562	56	618


	31 Dec 2024 $m
	Total as reported on the consolidated statement of financial position	Group’s share relating to JVs and associates	Total including Group’s share relating to JVs and associates
1 year or less	136	11	147
After 1 year to 2 years	68	(1)	67
After 2 years to 3 years	30	(1)	29
After 3 years to 4 years	4	(1)	3
After 4 years to 5 years	4	(1)	3
After 5 years to 10 years	20	(1)	19
After 10 years to 15 years	8	1	9
After 15 years to 20 years	(6)	3	(3)
After 20 years	159	28	187
Total expected future cash flows from reinsurance contract liabilities	423	38	461

C3.4 Products and determining contract liabilities

(a) 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 historical 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 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.


	305 Prudential plc Annual Report 2025

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.


	306 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(b) Measurement of insurance and reinsurance contracts

Level of aggregation and initial recognition

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 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.

Separating components

A contract has an investment component if there is an amount (which could be zero) that the contract requires the entity to repay to the

policyholder in all circumstances that have commercial substance. The surrender value, net of policy loans (where these exist), is accounted as the

investment component of a contract. Participating and non-participating (such as whole-life and endowment) contracts have explicit surrender

values. There are a relatively small number of products that do not have a surrender value, and the investment components of these contracts

are determined on a case-by-case basis. The non-distinct investment components are excluded from insurance revenue and insurance service

expenses.

At initial recognition, the Group is required to separate the following components and account for them as if they were stand-alone contracts.

– Distinct investment components. An investment component is distinct if and only if (a) the insurance and investment components are not

highly interrelated and (b) a contract with equivalent terms is, or could be, sold separately in the same market or jurisdiction.

– Embedded derivatives that do not meet the definition of an insurance contract and whose economic characteristics and risks are not closely

related to those of the host contract.

– Distinct services other than insurance contract services. A service component is distinct if it is not highly interrelated with the insurance

component and the entity provides no significant service in integrating the service component with the insurance component.

There are no material instances within the Group where distinct investment components, distinct services or embedded derivatives are separated

from insurance contracts.

Asset management services for investments held under an insurance contract are not separated.

Subsequent measurement of CSM

Under IFRS 17 insurance contracts are measured under the GMM, VFA or 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.

The CSM calculated under the VFA relates to the Group’s with-profits and shareholder-backed participating products and unit-linked products

with a low proportion of protection riders. The CSM calculated under the GMM includes the Group’s non-profit protection products and unit-

linked products with a high proportion of protection riders.

The CSM of each group of contracts is calculated at each reporting date as follows.

The carrying amount of the CSM of contracts measured under the GMM at each reporting date is the carrying amount at the start of the year,

adjusted for: (a) the CSM of any new contracts that are added to the group in the year; (b) interest accreted at locked-in discount rate; (c)

changes in fulfilment cash flows arising from operating assumption changes and variances that relate to future services except for those relating

to onerous contracts; (d) the effect of currency exchange differences on the CSM; and (e) the amount of CSM recognised in profit or loss in the

year based on the coverage units.

The carrying amount of the CSM of contracts measured under the VFA at each reporting date is the carrying amount at the start of the year,

adjusted for: (a) the CSM of any new contracts that are added to the group in the year; (b) the change in the amount of the Group’s share of the

fair value of the underlying items; (c) changes in fulfilment cash flows arising from both operating and economic assumption changes and

variances that relate to future services except for those relating to onerous contracts; (d) the effect of currency exchange differences on the CSM;

and (e) the amount of CSM recognised in profit or loss in the year based on the coverage units.

The table below provides a description of the material features of each of the key products written by the Group, together with the measurement

model used to determine their contract liabilities under IFRS 17.


	307 Prudential plc Annual Report 2025


Contract type	Description and material features	Measurement model
With-profits contracts (written in Hong Kong, Singapore and Malaysia)	Provides savings and/or protection where the basic sum assured can be enhanced by a profit share (or bonus) from the underlying fund as determined at the discretion of the local business unit. With-profits products often offer a guaranteed maturity or surrender value. Declared regular bonuses are guaranteed once vested. Future bonus rates and cash dividends are not guaranteed. Market value adjustments and surrender charges are used for certain products where the law permits such adjustments. Guarantees are predominantly supported by the segregated funds and their estates. Additional health and protection benefits can be provided through riders (which are not separated from the base with-profits contracts).	All with-profits contracts of the Group written in Hong Kong, Singapore and Malaysia are measured using the VFA model. The shareholders’ share of the excess of the assets of the with-profits funds over policyholder liabilities is recognised within shareholders’ equity.
Other participating contracts	Similar to the with-profits contracts, other participating contracts include savings and/or protection elements, with policyholders and shareholders sharing in the returns of the underlying funds.	Other participating contracts of the Group are measured under the VFA model except for the contracts without distinct segregated funds written by the Group’s life joint venture in Mainland China, where the GMM approach is applied.
Unit-linked contracts	Combines savings with health and protection riders (which, under IFRS 17, are not separated from the base contract). The cash value of the policy primarily depends on the value of the underlying unitised funds.	Unit-linked contracts are measured either under the VFA or the GMM depending on the relative size of the savings and protection benefits of the contract. The larger the protection component the more likely the contract is required to be measured under the GMM.
Health and protection – Shareholder- backed participating critical illness contracts	Shareholder-backed participating critical illness contracts are written by the Group’s Hong Kong business. These products combine critical illness and death benefits with a savings element. These are whole life products and have regular premium payments with a limited payment term.	Shareholder-backed participating critical illness contracts are measured under the VFA.
Health and protection – Other	In addition to supplementary heath and protection contract products attached to with-profits and unit-linked contracts described above, the Group also offers stand- alone health and protection products. These are non-participating contracts that provide mortality and/or morbidity benefits including health, disability, critical illness and accident coverage.	Stand-alone non-par health and protection (excluding shareholder-backed participating critical illness) contracts are measured under the GMM.
Non- participating term, whole life and endowment assurance contracts	Non-participating savings and/or protection where the benefits are guaranteed, determined by a set of defined market-related parameters, or determined at the discretion of the local business unit. These products often offer a guaranteed maturity and/or surrender value. It is common in Asia for regulations or market-driven demand and competition to provide some form of capital value protection and minimum crediting interest rate guarantees. This is reflected within the guaranteed maturity and surrender values. Guarantees are supported by shareholders.	These contracts are measured under the GMM.

The fair value of underlying items of the Group’s direct participating contracts at 31 December 2025, excluding the Group’s share of the

amounts that relate to life JVs and associates, is $157,825 million (31 December 2024: $133,641 million). The Group’s direct participating

contracts are the contracts that are measured under the VFA model and as discussed in the table above comprise primarily the Group’s with-

profits, unit-linked and shareholder-backed participating critical illness contracts. Those underlying items comprise primarily investments in debt

securities, equity securities and holdings in collective investment schemes. The underlying items also include the related reinsurance assets and

the policyholders’ interest in the excess net assets of relevant participating funds.


	308 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

The Group cedes certain business to other insurance companies. Although the ceding of insurance does not relieve the Group from its liability to

its policyholders, the Group participates in such agreements largely for the purpose of managing its loss exposure. The Group evaluates the

financial condition of its reinsurers and monitors concentration of credit risk from similar geographic regions, activities or economic

characteristics of the reinsurers to minimise its exposure from reinsurer insolvencies. 98 per cent (31 December 2024: 99 per cent) of the Group’s

reinsurance contract BEL that are assets, excluding the Group’s share of the balances held by life joint ventures and associates, are held with

reinsurers with a rating of A- and above by Standard & Poor’s or other external rating agencies by reference to the reinsurance BEL.

The reinsurance contracts held primarily relate to business written in Hong Kong and Singapore. The Group cedes insurance and investment risk

to limit exposure to underwriting losses and investment performance volatility under various agreements that cover individual risks, group risks or

defined blocks of business, on a co-insurance, surplus, quota share or catastrophe excess of loss basis. The amount of each risk retained depends

on the evaluation of the specific risk, subject to certain circumstances, to internally set maximum limits based on characteristics of coverage.

As required by IFRS 17, all reinsurance contracts held by the Group are measured using the GMM.

A group of reinsurance contracts held is recognised on the following date:

– Reinsurance contracts held by the Group that provide proportionate coverage: The later of the start date of the coverage period and the date

on which any underlying insurance contract is initially recognised. This applies to the Group’s quota share reinsurance contracts.

– Other (non-proportionate) reinsurance contracts held by the Group: The earlier of beginning of the coverage period of the group of

reinsurance contracts or the recognition date of an underlying onerous group of insurance contracts issued.

– Reinsurance contracts held acquired via a business acquisition/combination: The date of the business acquisition/combination.

On initial recognition, the CSM of a group of reinsurance contracts held represents a net cost or net gain on purchasing reinsurance. It is

measured as the equal and opposite amount of the total of (a) the fulfilment cash flows, (b) any amount arising from the derecognition of any

assets or liabilities previously recognised for cash flows related to the group, (c) any cash flows arising at that date, and (d) any income

recognised in profit or loss because of onerous underlying contracts recognised at that date. However, if the net cost of purchasing reinsurance

relates to past events, the Group recognises the net cost immediately in profit or loss.

The carrying amount at the end of each reporting period of a group of reinsurance contracts held is measured in the same way as the underlying

insurance contracts under GMM. Reinsurance contracts held are subject to the same modification requirements as insurance contracts.


	309 Prudential plc Annual Report 2025

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 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 in respect of both

acquired asset management and life businesses.


	2025 $m	2024 $m
Carrying value at 1 Jan	848	896
Exchange differences	54	(7)
Reclassification as held for sale	–	(41)
Carrying value at 31 Dec	902	848

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 2025, $490 million (31 December 2024: $450 million) relates to asset

management business in Thailand and $244 million (31 December 2024: $230 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 its embedded value methodology. Any excess of IFRS

value over TEV carrying value is then compared with a projection of 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 TEV basis of

reporting are included in the TEV 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 for both years as follows:

– Cash flow projections based on the latest 5-year business plan or forecast;

– A constant growth rate of 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; and

– The continuation of asset management contracts on similar terms.

The key assumptions used in the impairment testing, including the cash flow projections, are subject to fluctuations in the external economic

conditions and how these impact investor sentiment. No material impairment, in the context of the Group's current financial position, 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 cash flow projections, a 1 per cent fall in the growth rate or a 1 per cent increase in the discount rate. A more significant change in the

key assumptions or a combination of effects could have a larger impact on the recoverable value and so there are circumstances where a more

material impairment could occur.


	310 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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.


	2025 $m			2024 $m
	Distribution rights	Other intangibles	Total	Distribution rights	Other intangibles	Total
	note (i)	note (ii)		note (i)	note (ii)
Balance at 1 Jan
Cost	5,762	570	6,332	5,585	537	6,122
Accumulated amortisation and other charges	(2,203)	(305)	(2,508)	(1,876)	(260)	(2,136)
	3,559	265	3,824	3,709	277	3,986
Additions	491	48	539	198	62	260
Amortisation and other charges	(389)	(62)	(451)	(331)	(58)	(389)
Disposals and transfers	–	(3)	(3)	(4)	(14)	(18)
Exchange differences and other movements	38	11	49	(13)	(2)	(15)
Balance at 31 Dec	3,699	259	3,958	3,559	265	3,824
Comprising:
Cost	6,302	624	6,926	5,762	570	6,332
Accumulated amortisation and other charges	(2,603)	(365)	(2,968)	(2,203)	(305)	(2,508)
Balance at 31 Dec	3,699	259	3,958	3,559	265	3,824

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.

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 2025 $m	31 Dec 2024 $m
Subordinated debt
US$750m 4.875% notes	750	750
£435m 6.125% notes 2031	583	542
US$1,000m 2.95% notes 2033	998	997
SGD 600m 3.80% notes 2035 ^{note (i)}	464	–
Senior debt ^{note (ii)}
£250m 5.875% notes 2029	325	299
US$1,000m 3.125% notes 2030	992	990
US$350m 3.625% notes 2032	347	347
Total core structural borrowings of shareholder-financed businesses	4,459	3,925

Notes

(i) On 22 May 2025, Prudential Funding (Asia) plc, a wholly owned subsidiary of the Group, issued SGD 600 million 3.80 per cent subordinated debt maturing on 22 May

2035 with proceeds, net of costs, of US$462 million. Under IFRS 9, the Group has designated this SGD-denominated borrowing as a net investment hedge of the currency

risk related to the Group’s investment in the Singapore business.

(ii) The senior debt ranks above subordinated debt in the event of liquidation.


	311 Prudential plc Annual Report 2025

C5.2 Operational borrowings


	31 Dec 2025 $m	31 Dec 2024 $m
Borrowings in respect of short-term fixed income securities programmes (commercial paper)	520	527
Lease liabilities under IFRS 16	310	257
Other borrowings	1	13
Total operational borrowings	831	797

C6 Risk and sensitivity analysis

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.

The Sustainability report included in this Annual Report discusses the Group’s scenario testing results of plausible global responses to climate

change, which assess the possible financial consequences of climate change on the Group’s business. Though the Group faces potential financial

risks and impacts 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 considerations in 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 and

evolve. Additionally, the Group’s climate scenario analysis currently does not incorporate potential management actions the Group could take to

mitigate adverse impacts of climate change. Given the current lack of developed methodologies and tools to isolate climate-related illnesses and

deaths, the Group is currently unable to robustly isolate the effects of climate on morbidity and mortality risks on the Group’s life and health

book. 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 continues to monitor

industry practice, and will over time refine its approach as data quality and methodologies improve.

The Group benefits from diversification 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 from diversification have been 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 from the US dollar, the Group’s presentation 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 2025 and 2024, 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, after reflecting the impact of the designated net investment hedge, is recorded as part of other

comprehensive income and in 2025 represented a gain of $443 million (2024: loss of $(309) million), which corresponds to 3 per cent of opening

shareholders’ equity (2024: 2 per cent). Additionally, note B1.1 ‘Segment results’ shows the Group’s segment and total profit for 2024 as if it

had been prepared using the same exchange rates as 2025 (ie on a CER basis) giving an indication of how foreign exchange rates impact the

Group’s profit or loss.

A 5 per cent decrease (weakening of the US dollar) or increase (strengthening of the US dollar) in these rates would have increased or decreased

profit for the year and shareholders’ equity of the Group respectively as follows:


	31 Dec 2025 $m		31 Dec 2024 $m
Change in local currency to $ exchange rates	Decrease of 5%	Increase of 5%	Decrease of 5%	Increase of 5%
Profit after tax for the year	123	(111)	102	(92)
Shareholders’ equity	747	(676)	624	(565)

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.


	312 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

C6.1 Sensitivity to key market risks

The table below shows the sensitivity of the Group's profit after tax, shareholders’ equity and CSM as at 31 December 2025 and 2024 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) 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 sensitivity results assume instantaneous market movements and hence reflect the current investment portfolio and all consequential impacts

as at valuation date. If the economic conditions set out in the sensitivities persisted, the financial impacts may differ to the instantaneous

impacts shown below. These sensitivity results allow for limited management actions such as changes to future policyholder bonuses and re-

pricing for medical business, where applicable. In practice, the market movements would be expected to occur over time and rebalancing of

investment portfolios would likely be carried out to mitigate the impact of the stresses as presented below. Management could also take

additional actions to help mitigate the impact of these stresses, including but not limited to, market risk hedging, increased use of reinsurance,

repricing of in-force benefits, changes to new business pricing and the mix of new business being sold.

The sensitivity of the Group’s results to market risks primarily arises from the Group’s insurance businesses.

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 A3),

movements in underlying assets are matched by a movement in insurance liabilities. Changes in BEL and RA 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 RA 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.

For the Group’s asset management business, Eastspring, the profit for the period 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. The effect on future asset management fees is not reflected in

the table below.

In addition, Eastspring holds a small amount of investments directly on its balance sheet, including investments in respect of seeding capital into

retail funds it sells to third parties (see note C1.1). Eastspring’s profit will therefore have some direct exposure to the market movements of these

investments.

At 31 December 2025 and 2024, the Group’s 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

for these investments. In addition, the central operations hold some derivatives that are used to reduce or manage investment, interest rate and

currency exposures.


Base values	2025 $m	2024 $m
Profit after tax for the year for the Group	4,119	2,415
Group shareholders’ equity as at 31 Dec	20,117	17,492
CSM as at 31 Dec including JVs and associates	25,005	21,960


	313 Prudential plc Annual Report 2025


	31 Dec 2025 $m		31 Dec 2024 $m
Interest rates and consequential effects	-0.5%	+1%	-0.5%	+1%
Increase (decrease) to shareholders’ equity:
Financial assets ^note	8,805	(15,413)	7,690	(13,462)
Net insurance contract liabilities (including CSM) ^note	(8,169)	14,000	(7,324)	12,474
Net effect on shareholders' equity	568	(1,222)	348	(878)
Increase (decrease) to profit after tax:
Net effect on profit after tax	609	(1,299)	380	(940)
Increase (decrease) to CSM liability:
CSM ^note	390	(1,069)	395	(975)


	31 Dec 2025 $m		31 Dec 2024 $m
Equity/property market values	-20%	+10%	-20%	+10%
Increase (decrease) to shareholders’ equity:
Financial assets ^note	(16,935)	8,374	(14,133)	7,075
Net insurance contract liabilities (including CSM) ^note	15,802	(7,855)	13,132	(6,628)
Net effect on shareholders' equity	(756)	341	(689)	302
Increase (decrease) to profit after tax:
Net effect on profit after tax	(817)	370	(738)	325
Increase (decrease) to CSM liability:
CSM ^note	(1,937)	917	(1,479)	651

Note

The sensitivity effects shown above reflect the pre-tax effects on the financial assets, net insurance contract liabilities and CSM as presented on the Consolidated statement of

financial position, together with the Group’s share of the relevant amounts of its joint ventures and associates. 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 sensitivity of the Group’s businesses presented as a whole at a given point in time will also be affected by a change in the relative size of the

individual businesses.

The 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 held by the Group’s insurance businesses 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

excluding those contracts that meet the criteria where gains and losses can be shared across cohorts discussed in note B1.2. 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 1.0 per cent in interest rates were $(45) million

and $25 million (2024: $(48) million and $21 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 were

$(237) million and $99 million (2024: $(201) million and $85 million), respectively.

C6.2 Sensitivity to insurance risks

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 enhanceme nts or 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.


	314 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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.


	2025 $m
	Net effect on shareholders’ equity and profit after tax attributable to equity holders		Net effect on CSM
Sensitivity to insurance risk:	Gross of reinsurance	Net of reinsurance	Gross of reinsurance	Net of reinsurance
Maintenance expenses – 10% increase	(77)	(75)	(487)	(489)
Lapse rates – 10% increase	(152)	(110)	(1,620)	(1,775)
Mortality and morbidity – 5% increase	(115)	(105)	(813)	(341)


	2024 $m
	Net effect on shareholders’ equity and profit after tax attributable to equity holders		Net effect on CSM
Sensitivity to insurance risk:	Gross of reinsurance	Net of reinsurance	Gross of reinsurance	Net of reinsurance
Maintenance expenses – 10% increase	(73)	(72)	(422)	(424)
Lapse rates – 10% increase	(97)	(72)	(1,435)	(1,593)
Mortality and morbidity – 5% increase	(110)	(108)	(689)	(269)

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 $(67) million, $(115) million and $(94) million (2024: $(67) million,

$(105) million and $(97) 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.


	315 Prudential plc Annual Report 2025

C7 Tax assets and liabilities

Accounting policies on deferred tax are included in note B3 . 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.

C7.1 Current tax

At 31 December 2025, of the $77 million ( 31 December 2024: $31 million) current tax recoverable, the majority is expected to be recovered

within 12 months of the reporting period.

At 31 December 2025, the current tax liability of $273 million (31 December 2024: $238 million) includes $77 million (31 December 2024:

$95 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 $119 million (31 December 2024: $142 million) and deferred tax liabilities of

$1,830 million (31 December 2024: $1,514 million), which are presented on a net basis in each of the categories below for the purpose of this

movement analysis only:


	2025 $m
	Net deferred tax liabilities (assets) at 1 Jan	Movement in income statement	Other movements including foreign exchange movements	Net deferred tax liabilities (assets) at 31 Dec
Unrealised losses or gains on investments	148	71	6	225
Balances relating to insurance and reinsurance contracts	1,408	190	78	1,676
Short-term temporary differences	(60)	22	–	(38)
Unused tax losses	(124)	(20)	(8)	(152)
Net deferred tax liabilities	1,372	263	76	1,711


	2024 $m
	Net deferred tax liabilities (assets) at 1 Jan	Movement in income statement	Other movements including foreign exchange movements	Net deferred tax liabilities (assets) at 31 Dec
Unrealised losses or gains on investments	129	32	(13)	148
Balances relating to insurance and reinsurance contracts	1,170	260	(22)	1,408
Short-term temporary differences	(94)	28	6	(60)
Unused tax losses	(111)	(17)	4	(124)
Net deferred tax liabilities	1,094	303	(25)	1,372

At 31 December 2025, the Group 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’.

At 31 December 2025 the Group has unused tax losses and deductible temporary differences of $1,947 million (31 December 2024:

$1,477 million) in respect of which no deferred tax asset has been recognised. Of the unrecognised amounts, $176 million (31 December 2024:

$123 million) relates to unused tax losses that will expire within the next ten years (potential tax benefit: $39 million) and the remainder of

$1,947 million (31 December 2024: $1,354 million) has no expiry date (potential tax benefit: $373 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 2025, deferred tax liabilities of $344 million (31 December 2024: $262 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.


	316 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

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 Group 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.


	2025			2024
Issued shares of 5p each fully paid	Number of ordinary shares	Share capital	Share premium	Number of ordinary shares	Share capital	Share premium
		$m	$m		$m	$m
Balance at 1 Jan	2,657,521,888	176	5,009	2,753,520,756	183	5,009
Shares issued under share-based schemes	5,162	–	2	758,708	–	–
Shares issued under scrip dividends	2,197,669	–	–	2,813,929	–	–
Shares cancelled on repurchases/buybacks	(111,510,940)	(7)	–	(99,571,505)	(7)	–
Balance at 31 Dec	2,548,213,779	169	5,011	2,657,521,888	176	5,009

Options outstanding under save as you earn schemes to subscribe for shares at each year end shown below are as follows:


		Share price range
	Number of shares to subscribe for	from (in pence)	to (in pence)	Exercisable by year
31 Dec 2025	1,529,193	520p	1,202p	2031
31 Dec 2024	1,660,096	520p	1,202p	2030

Transactions by Prudential plc and its subsidiaries in Prudential plc shares

(a) Purchases by employee share scheme trusts

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, a total of 8.4 million shares (2024: 10.0 million shares) were acquired in relation to employee share schemes by the trusts and

for members under employee share purchase plans. The cost of acquiring these shares, was $101.1 million (2024: $96.8 million). The cost in USD

shown has been calculated from the share prices in the purchase currency (pound sterling or Hong Kong dollar) using the monthly average

exchange rate for the month in which those shares were purchased. A portion of these share purchases were made on the Hong Kong Stock

Exchange with the remainder being made on the London Stock Exchange. At 31 December 2025, 16.6 million (31 December 2024: 14.9 million)

Prudential plc shares were held in the trusts.

(b) Share repurchase/buyback programmes by the Company

The Company made the following purchases during the years shown:


	2025 $m	2024 $m
Share repurchases to neutralise share scheme issuances	–	48
Share repurchases to neutralise impact of scrip dividend	33	23
Share buyback programme to return capital to shareholders (excluding costs)	1,211	785
Total cash paid on repurchases and buybacks (excluding costs)	1,244	856
Costs associated with buyback	8	4
Redemption liability/release associated with buyback	(18)	18
Total cost recognised in retained earnings on share repurchases and buybacks	1,234	878


	317 Prudential plc Annual Report 2025

The table below shows the details of the purchases on a monthly basis during 2025. The cost in USD shown has been calculated from the share

prices in pounds sterling using the daily spot rate on which those shares were purchased.


		Share price
	Number of shares	Low £	High £	Cost $
January	14,027,963	5.96	6.94	109,413,773
February	11,016,784	6.54	7.44	95,544,892
March	8,650,128	7.13	8.46	85,272,071
April	17,449,798	6.88	8.43	170,975,804
May	8,643,151	7.87	8.86	97,762,906
June	12,643,798	8.38	9.39	152,102,793
July	7,382,557	8.96	9.68	92,009,220
August	6,105,457	9.34	10.09	79,993,894
September	6,282,320	9.56	10.59	86,067,429
October	6,632,794	9.71	10.74	91,145,576
November	5,645,846	10.30	11.08	79,336,077
December	7,030,344	10.69	11.51	104,361,333
Total	111,510,940			1,243,985,768

On 23 June 2024, the Company announced a $2 billion share buyback programme to reduce the issued share capital of the Company in order to

return capital to shareholders. The first tranche of $700 million was completed on 15 November 2024, followed by the second tranche of $800

million completed on 26 June 2025. The third and final tranche of $500 million was completed on 23 December 2025. On 6 January 2026, the

Company announced the launch of a new $1.2 billion share buyback programme as described in note D3.

As at 31 December 2025, 201.4 million ordinary shares in aggregate have been repurchased under the $2 billion share buyback programme for a

total consideration of $1,996 million excluding costs. In 2025, 109.3 million ordinary shares were purchased for a total consideration of $1,211

million, excluding costs of $8 million.

In December 2025, the Company completed a share buyback programme to offset dilution from the issue of shares under its scrip dividend

alternative. The Company repurchased 2.2 million ordinary shares in aggregate for a total consideration of $33 million.

All of these share purchases were made on the London Stock Exchange, their associates, and/or other regulated exchanges in the UK and the

shares purchased were cancelled after settlement. The nominal value of the shares cancelled in 2025 was $7 million. On cancellation, the

nominal value was transferred from the share capital to the capital redemption reserve account.

Other than as disclosed above, the Company and its subsidiaries did not purchase, sell or redeem any Prudential plc listed securities during 2025.

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. A t 31 December 2025, estimated Group shareholder GWS capital

resources is $27.6 billion ( 31 December 2024: $24.8 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:


	318 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

– Maintain flexibility and absorb shock events;

– Cover central costs;

– Invest in core capabilities;

– Fund returns to shareholders, for example through dividends and share buybacks; and

– Fund new opportunities where there is a good strategic fit.

More details on holding company cash flows and balances are given in section I(iv) in the Additional unaudited financial information section.

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.

Mainland China

A risk-based capital, risk management and governance framework, known as the China Risk Oriented Solvency System (C-ROSS), applies in

Mainland China.

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 available-for-sale 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, where the discount rate used to calculate policyholder liabilities is set with reference to historic average risk-free rates

over a 3-year period.

C-ROSS Phase II regulations became effective in 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 allowed insurers to implement the rules in stages before full implementation of the new regime was required

from 2026 onwards.

Hong Kong

Prudential Hong Kong Limited applies the risk-based capital regime (HK RBC). 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.

Indonesia

Solvency capital is determined using a risk-based capital approach. The capital resources are based on assets that are marked-to-market, with

policyholder liabilities based on a gross premium valuation method using best estimate assumptions with a suitable margin for prudence.

Liabilities are zeroised at policy level (ie negative liabilities are not permitted at a policy level). For unit-linked policies, an unearned premium

reserve is established.

Malaysia

A risk-based capital (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 (ie negative liabilities are not

permitted at fund level). The BNM initiated a review of its RBC framework for insurers and Takaful operators in 2021. A review of the capital

adequacy requirements initiated in 2024 is ongoing, with the aim to improve the consistency of risk-based capital measurements and align to

global capital standards. The BNM is expected to release the final policy document on the updated RBC framework in the second half of 2026,

where quantitative impact studies and parallel results are expected to be produced prior to implementation.

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.


	319 Prudential plc Annual Report 2025

Growth markets

Details on the more significant changes expected to the local solvency regimes in individual growth markets are summarised below.

Taiwan

A risk-based capital (RBC) framework has applied in Taiwan since 2003. The local regulator, the Financial Supervisory Commission (FSC) has

introduced a new capital framework namely the Taiwan-localised Insurance Capital Standard (T-ICS), effective from 1 January 2026. Subject to

a number of localised adjustments, this framework broadly aligns to the global Insurance Capital Standard (ICS) adopted by the International

Association of Insurance Supervisions (IAIS).

The T-ICS framework requires liabilities to be based on a gross premium valuation method using best estimate assumptions and capital

requirements to be risk-based, which results in the release of prudent regulatory margins included in the current liabilities (which are based on a

net premium valuation) and an increase in required capital. The change is expected to be beneficial to the local solvency position.

(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:


	2025 $m	2024 $m
Balance at 1 Jan	500	497
Gains (losses) during the year	299	204
Movement in capital requirement	(14)	8
Net distributions made to the parent company	(213)	(191)
Exchange and other movements	(85)	(18)
Balance at 31 Dec	487	500

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 unrestricted 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 of an appropriate level of operating capital, based on

local regulatory solvency and accounting requirements, where relevant.

C10 Property, plant and equipment

Property, plant and equipment comprise Grou p occupied properties and tangible assets. Property, plant and equipment also include 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 under IFRS 17 are measured at fair value.


	31 Dec 2025 $m	31 Dec 2024 $m
Property, plant and equipment held at cost ^{note (a)}	502	391
Owner occupied properties held at fair value ^{note (b)}	28	26
Total property, plant and equipment	530	417


	320 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

(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:


	2025 $m				2024 $m
	Group occupied property	Tangible assets	Right-of- use assets	Total	Group occupied property	Tangible assets	Right-of- use assets	Total
Balance at 1 Jan
Cost	35	497	782	1,314	24	495	683	1,202
Accumulated depreciation	(7)	(371)	(545)	(923)	(8)	(380)	(467)	(855)
Opening net book amount	28	126	237	391	16	115	216	347
Additions	–	104	137	241	20	81	51	152
Depreciation charge	(1)	(51)	(98)	(150)	–	(40)	(94)	(134)
Disposals, impairment and lease modifications	–	(8)	10	2	(8)	(29)	67	30
Effect of movements in exchange rates	2	4	12	18	–	(1)	(3)	(4)
Balance at 31 Dec	29	175	298	502	28	126	237	391
Representing:
Cost	38	578	775	1,391	35	497	782	1,314
Accumulated depreciation	(9)	(403)	(477)	(889)	(7)	(371)	(545)	(923)
Closing net book amount	29	175	298	502	28	126	237	391

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 2025, total right-of-use assets

comprised $284 million (31 December 2024: $222 million) of property and $14 million ( 31 December 2024: $15 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 2025, the undiscounted value

of lease payments beyond the break period not recognised in the lease liabilities is $205 million (31 December 2024: $152 million).

The Group has non-cancellable property subleases, which have been classified as operating leases under IFRS 16. The sublease rental income

received in 2025 for the leases is $5 million (2024: $2 million).

(b) Owner occupied properties held at fair value

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. 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 and classified as level 3 under the fair value measurement hierarchy, similar to investment properties.

The capital expenditure on property, plant and equipment excluding right-of-use assets in 2025 of $104 million (2024: $101 million) arose by segment as

follows:


	2025 $m	2024 $m
Hong Kong	39	41
Indonesia	7	4
Malaysia	2	2
Singapore	25	24
Growth markets and other	29	21
Eastspring	1	7
Total segment	103	99
Unallocated to a segment (central operations)	1	2
Total capital expenditure on property, plant and equipment	104	101


	321 Prudential plc Annual Report 2025

D Other information

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 the ultimate outcome of any current or pending matters will not have a

material adverse effect on the Group’s financial condition, results of operations or cash flows.

Guarantees

The Group has provided guarantees and commitments to third parties entered into in the normal course of business and the Company has

guaranteed public debt securities issued by one of its wholly-owned subsidiaries, Prudential Funding (Asia) PLC. 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 D4 below.

D2 Ownership interest in Prudential Assurance Malaysia Berhad

Settlement reached in Malaysian dividend dispute

On 31 July 2025, Prudential announced that it has reached a full and final settlement regarding a dividend claim made by Detik Ria Sdn Bhd

('Detik Ria'), the 49 per cent shareholder in Sri Han Suria Sdn Bhd ('SHS'), the holding company of Prudential Assurance Malaysia Berhad

('PAMB').

Detik Ria had initiated legal proceedings against Prudential in April 2025 regarding dividends for the equivalent of approximately $830 million

plus interest at a rate of 5 per cent. As a result of the settlement, the equivalent of $83 million was paid to Detik Ria by way of a dividend from

SHS, which was paid out of existing resources. In addition, Prudential has waived the equivalent of $33 million which was owed by Detik Ria to

one of Prudential’s subsidiaries as a result of the Federal Court decision disclosed in the Group’s consolidated financial statements for the year

ended 31 December 2024.

All proceedings in respect of the dispute have been withdrawn. The settlement also provides for a mutual release of all liability from all ongoing

claims and parties have agreed not to raise new claims for historic matters. It is governed by the laws of England and Wales and subject to

Singapore arbitration.

In aggregate, the effect of the settlement was a small increment to the Group’s shareholder equity, which has been reflected in these

consolidated financial statements.

Increase in ownership interest in January 2026

On 22 January 2026, the Company announced that Prudential Corporation Holdings Limited, a wholly-owned subsidiary of the Group, had

signed an agreement to acquire a further 19 per cent of Sri Han Suria Sdn. Bhd. (SHS), the holding company that owns Prudential Assurance

Malaysia Berhad (PAMB) from Detik Ria Sdn. Bhd. (Detik Ria) for RM1.52 billion (approximately $375 million using the exchange rate on 21

January 2026 midday (Hong Kong time). The transaction was completed on 30 January 2026. PAMB is the Group’s conventional life insurance

business in Malaysia. This transaction, which has been approved by Bank Negara Malaysia, increases the Group’s stake in SHS from 51 per cent

to 70 per cent.

The Group will continue to consolidate the business of PAMB as a subsidiary controlled by the Group. Further, the Group’s operating performance

metrics continue to be presented before the effect of non-controlling interests in line with the Group’s policy. The proportion of profit after tax

and equity of the conventional life insurance business in Malaysia attributed to non-controlling interests in the 2026 consolidated financial

statements will reflect a reduction in Detik Ria’s non-controlling interest in SHS from 49 per cent to 30 per cent.

D3 Post balance sheet events

Dividends

The 2025 second interim dividend approved by the Board of Directors after 31 December 2025 is described in note B5 .

$1.2 billion share buyback programme

On 6 January 2026, the Company announced the commencement of a new share buyback programme up to a maximum aggregate amount of

$1.2 billion to reduce the issued share capital of the Company in order to return capital to shareholders comprising $500 million of recurring

capital returns and $700 million of net proceeds from the IPO of ICICI Prudential Asset Management Company Limited. The balance of the net

proceeds from the IPO will be returned to shareholders during 2027. It is intended that the announced buyback programme will be completed by

no later than 18 December 2026.

Increase in ownership interest in Prudential Assurance Malaysia Berhad

The Group signed an agreement on 22 January 2026 to acquire a further 19 per cent interest in the conventional life insurance business in

Malaysia, as described in note D2.


	322 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

D4 Related party transactions

Transactions between the Company and its subsidiaries or intra-group transactions are eliminated on consolidation. Intra-group transactions of

the Group mainly related to a limited number of loans, guarantees or services provided by the Company to or from other 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 not e B1.4. 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 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, distributions received and amounts paid in respect of the periodic charge and administration fee.

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 the $174 million cash advanced in 2024 to the Group's life joint venture in Mainland China that has

subsequently been converted into a capital injection in 2025. There were no other transactions with related parties during the year ended 31

December 2025 that have had a material effect on the results or financial position of the Group.

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 2025 and 2024, 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. Key management remuneration is disclosed in note B2.3.

Additional details on the Directors’ interests in Prudential plc shares, transactions or arrangements are given in the Directors’ remuneration

report.

D5 Commitments

The Group has provided, from time to time, certain commitments to third parties.

At 31 December 2025, the Group had $6,691 million unfunded commitments (31 December 2024 $3,293 million) primarily related to

alternative investment funds in Asia.

D6 Investments in subsidiary undertakings, joint ventures and associates

D6.1 Basis of consolidation

The Group consolidates those investees it is deemed to control. The Group has control over an investee if all three of the 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 reassessment 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.

(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.

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


	323 Prudential plc Annual Report 2025

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 2025 $m		31 Dec 2024 $m
Consolidated statement of financial position line items	Investment funds	Other structured entities	Investment funds	Other structured entities
Equity securities and holdings in collective investment schemes	51,549	–	47,701	–
Debt securities	–	542	–	216
Total investments in unconsolidated structured entities	51,549	542	47,701	216

The Group's maximum exposure to loss related to the interest in unconsolidated structured entities is limited to the carrying value in the

Consolidated statement of financial position and the unfunded investment commitments provided by the Group (see note D5).

During the year, the Group receives dividend and interest income from its investments in these unconsolidated structured entities. Where the

Group’s asset manager manages these entities, such as the collective investment schemes, the Group also receives asset management fees from

these entities.

As at 31 December 2025 and 2024, the Group did 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.


	324 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

D6.2 Dividend restrictions and minimum capital requirements

Certain Group entities are subject to restrictions on the amounts of funds they may transfer in the form of cash dividends or otherwise to the

parent company.

Under UK company law, UK companies can only declare dividends if they have sufficient distributable reserves.

The Group’s subsidiaries, joint ventures and associates may remit dividends to the Group, in general, provided the statutory insurance fund meets

the capital adequacy standard required under local statutory regulations and has sufficient distributable reserves. Further details on local capital

regulations in certain Asia operations are provided in note C9.2.

D6.3 Investments in joint ventures and associates

Joint ventures represent arrangements where the controlling parties through contractual or other agreement have the rights to the net assets of

the arrangements. The Group has insurance joint ventures in Mainland China with CITIC Group, and the Takaful insurance joint venture in

Malaysia. In addition, there is an asset management joint venture in Hong Kong with Bank of China International Holdings Limited (BOCI) and

until December 2025 an asset management joint venture in India with ICICI Bank (see below). 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 insurance entity in India and from December 2025

following the IPO (see below), the asset management company in India. ICICI Bank is the majority shareholder of both of these associates in

India.

On 19 December 2025, the asset management entity in India, ICICI Prudential Asset Management Company Limited (IPAMC), completed its

IPO and was listed on BSE Limited and the National Stock Exchange of India Limited. The IPO was priced at INR2,165 per equity share indicating

a market capitalisation for IPAMC of INR1,070 billion (approximately $11.8 billion based on the exchange rate at the time of listing).

In connection with this IPO, the Group sold 48,972,994 IPAMC shares at a price per share of INR2,165. The Group retains a 34.59 per cent stake

in IPAMC post-listing, reduced from a pre-listing stake of 49 per cent. The Group has announced its intention to return the net proceeds in

connection with this IPO including the pre-IPO private placement of approximately $1.4 billion (net of applicable fees and other costs, including

any tax chargeable) to Prudential shareholders, subject to regulatory and shareholder approvals where required.

Following its listing and consequent amendments to the shareholder agreement, the Group ceased to exercise joint control over the asset

management business in India but retained significant influence. Therefore the retained investment has been re-classified as an associate from

December 2025, and continues to be accounted for using the equity method.

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 an FVTPL basis. The aggregate fair value of

associates accounted for at FVTPL, for which published price quotations were available, is approximately $0.7 billion at 31 December 2025

(31 December 2024: $0.6 billion).

For joint ventures and associates accounted for using the equity method, the 12-month financial information of these investments for the years

ended 31 December 2025 and 2024 (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 interest rate and other market fluctuations), 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 with the related tax of the life joint ventures and associates included in the Growth markets and other segment:


	2025 $m	2024 $m
Mainland China	(24)	159
Malaysia	35	21
Growth markets and other ^note	129	104
Insurance operations	140	284
Eastspring	224	193
Total segment and Group total	364	477

Note

For growth markets and other, as well as the segment results for associates and joint ventures within the segment, the amount shown includes taxes for all life joint

ventures and associates, which is less than $1 million in 2025 (2024: charge of $(44) million).

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 presentation currency. There has been no unrecognised share of losses of a joint

venture or associate that the Group has stopped recognising in total comprehensive income.

The Group’s interest in joint ventures and associates gives rise to no contingent liabilities or capital commitments that are material to the Group.

CITIC-Prudential Life Insurance Company (Mainland China)

CITIC-Prudential Life Insurance Company, the Group’s Mainland China segment, is a 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 this entity, 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:


	325 Prudential plc Annual Report 2025


Statement of financial position	31 Dec 2025 $m	31 Dec 2024 $m
Total assets	40,647	36,344
Total liabilities (including non-controlling interest) ^note	38,259	34,452
Shareholders’ equity	2,388	1,892

The above amounts of assets and liabilities include the following:
Cash and cash equivalents	1,934	1,374
Financial liabilities (excluding trade and other payables and provisions)	2,166	1,835

Note

The Group’s 50 per cent share of the Mainland China joint venture’s insurance and reinsurance contract balances are shown in the analysis of insurance and reinsurance

contract balances by segment in note C3.3(c).


Income statement	2025 $m	2024 $m
Revenue	2,358	3,491
Profit for the year after tax	6	282
The above profit for the year includes the following:
Depreciation and amortisation	(43)	(38)
Interest income	615	582
Interest expense	(34)	(2)
Income tax credit (charge)	54	(36)

The summarised financial information above is reconciled to the carrying amount of the Group’s interest in the joint venture recognised in the

consolidated financial statements as follows:


	31 Dec 2025 $m	31 Dec 2024 $m
Net assets of the Mainland China joint venture as shown above (100)%	2,388	1,892
Proportion owned by the joint venture partner (50)%	1,194	946
Carrying amount of the Group’s interest in the joint venture (50)%	1,194	946

The Group has received no dividends from the Mainland China joint venture in 2025 (2024: nil) and made capital injections into the Mainland

China joint venture as discussed in note D4.

At 31 December 2025, the Group’s investments in joint ventures and associates accounted for using the equity method are $2,763 million (31

December 2024: $2,412 million), of which $1,194 million (31 December 2024: $946 million) relates to the Group's interest in Mainland China, 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 $1,569 million (31 December 2024: $1,466 million).


	326 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued

D6.4 Related undertakings

In accordance with Section 409 of the Companies Act 2006, a list of Prudential Group’s subsidiaries, joint ventures, associates and significant

holdings (being holdings of more than 20 per cent) is disclosed below, along with the classes of shares held, the registered office address and the

effective percentage of equity owned at 31 December 2025. The Group also operates through branches, none of which are significant.

The definitions of a subsidiary undertaking, joint venture and associate in accordance with the Companies Act 2006 are different from the

definition under IFRS Standards. As a result, the related undertakings included within the list below may not be the same as the undertakings

consolidated in the Group consolidated financial statements. The Group’s consolidation policy is described in note D6.1.

Simplified corporate structure as at 31 December 2025

Prudential plc

Prudential Corporation Asia Limited

Prudential Group Holdings

Limited and subsidiaries

CITIC-

Prudential

Life

Insurance

Company

Limited

(Mainland

China life

joint

venture)

Prudential

Hong Kong

Limited

Prudential

General

Insurance

Hong Kong

Limited

PT Prudential

Life

Assurance

PT Prudential

Sharia Life

Assurance

(Indonesia)

Prudential

Assurance

Malaysia

Berhad

Prudential

BSN

Takaful

Berhad

Prudential

Assurance

Company

Singapore

(Pte)

Limited

Eastspring

Investments

Group Pte.

Ltdand

subsidiaries

Growth

markets

and other

entities

(including

Africa,

Cambodia,

India, Laos,

Myanmar,

the

Philippines,

Taiwan,

Thailand,

Vietnam)

Prudential

International

Treasury

Limited

Prudential

Funding

(Asia) plc

Other than Prudential Hong Kong businesses, Prudential International Treasury Limited and Prudential Funding (Asia) plc, other entities shown

above are indirectly held by 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 Mainland China
MI – JV	Membership Interest of a Sino-Foreign Equity Joint Venture in Mainland China
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%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom


	327 Prudential plc Annual Report 2025

Other subsidiaries, joint ventures, associates and significant holdings of the Group – no shares held directly by

the parent company (Prudential plc) or its nominees


Name of entity	Classes of shares held	Proportion held	Registered office address
Aberdeen Cash Creation Fund	U	47.05%	28th Floor Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand
Aberdeen Standard Global Opportunities Fund	U	28.84%	7 Straits View, #23-04, Marina One East Tower, Singapore 018936
Aberdeen Standard Singapore Equity Fund	U	62.05%
ABRDN India Opportunities Fund	U	30.79%
Alternatives North America, Ltd.	U	100.00%	PO Box 1093, Queensgate House, Grand Cayman, KY1-1102, Cayman Islands
ARDIAN Prudential Infrastructure Sub-Fund	U	99.99%	1 Temasek Avenue, #36-01 Millenia Tower, Singapore 039192
ARDIAN Prudential PE Sub-Fund	U	99.99%
ARDIAN Prudential RE Sub-Fund	U	99.99%
ATRAM - PRUINVEST PHP Liquid Fund	U	90.51%	8th Floor 8 Rockwell Building, Metro Manila Manila, Philippines
ATRAM Global Technology Feeder Fund	U	21.18%
ATRAM Philippine Equity Index Tracker Fund - Class V	U	96.88%
Barings International Umbrella Fund-Barings Global Balanced Fund	U	40.28%	21st Floor, No. 333, Sec. 1, Keelong Rd, Taipei
Blackrock Global Funds Systematic Global Equity High Income Fund	U	35.10%	Twenty Anson, #18-01, 20 Anson Road, Singapore 079912
BOCHK Aggressive Growth Fund	U	43.66%	27th Floor, Bank of China Tower, 1 Garden Road, Hong Kong
BOCHK Balanced Growth Fund	U	37.26%
BOCHK China Equity Fund	U	53.67%
BOCHK Conservative Growth Fund	U	43.51%
BOCHK US Dollar Money Market Fund	U	25.81%
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) LP	U	52.79%	c/o Benefit Street Partners LLC, New York, New York 10019
Capital East Millennium Equity Fund	U	21.23%	105, Taipei City, Songshan District, Dongxing Rd, No.8 8F
Cathay High Yield EX China Cash Pay 1-5 Year 2% Issuer Capped ETF	U	77.09%	6th Floor, No.39, Sec.2, Dunhua South. Rd., Taipei, Taiwan
CITIC-Prudential Fund Management Company Limited	MI - JV	49.00%	19th Floor, No. 16, Yincheng Road, China (Shanghai) Pudong New Area, 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	55.61%	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 Global Private Credit Fund	U	99.99%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Global Real Assets & Private Equity Fund	U	99.99%
Eastspring Global Real Estate Fund	U	99.99%
Eastspring Global Technology Fund	U	23.69%	944 Mitrtown Office Tower, 9th floor, Rama 4 road, Wangmai Pathumwan, Bangkok 10330, Thailand


	328 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Name of entity	Classes of shares held	Proportion held	Registered office address
Eastspring Investment Management (Shanghai) Company Limited	MI - WFOE	100.00%	Unit 2901, 29th Floor Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, 200120, China
Eastspring Investments - Asia Select Bond Fund	U	97.15%	26, Boulevard Royal, L-2449, Luxembourg
Eastspring Investments - Asia Opportunities Equity Fund	U	99.99%
Eastspring Investments - Asia Pacific Equity Fund	U	99.98%
Eastspring Investments - Asian Bond Fund	U	97.03%
Eastspring Investments - Asian Dynamic Fund	U	97.55%
Eastspring Investments - Asian Equity Fund	U	99.21%
Eastspring Investments - Asian Equity Income Fund	U	92.16%
Eastspring Investments - Asian High Yield Bond Fund	U	68.12%
Eastspring Investments - Asian Local Bond Fund	U	91.61%
Eastspring Investments - Asian Low Volatility Equity Fund	U	78.18%
Eastspring Investments - Asian Multi Factor Equity Fund	U	97.94%
Eastspring Investments - China A Shares Growth Fund	U	97.54%
Eastspring Investments - China Bond Fund	U	100.00%
Eastspring Investments - China Equity Fund	U	21.15%
Eastspring Investments - Dragon Peacock Fund	U	97.70%
Eastspring Investments - European Investment Grade Bond Fund	U	100.00%
Eastspring Investments - Global Emerging Markets Bond Fund	U	92.33%
Eastspring Investments - Global Emerging Markets Dynamic Fund	U	40.76%
Eastspring Investments - Global Emerging Markets ex-China Dynamic Fund	U	92.41%
Eastspring Investments - Global Equity Navigator Fund	U	85.88%
Eastspring Investments - Global Growth Equity Fund	U	39.72%
Eastspring Investments - Global Low Volatility Equity Fund	U	96.33%
Eastspring Investments - Global Market Navigator Fund	U	99.60%
Eastspring Investments - Global Multi Asset Balanced Fund	U	100.00%
Eastspring Investments - Global Multi Asset Conservative Fund	U	100.00%
Eastspring Investments - Global Multi Asset Dynamic Fund	U	100.00%
Eastspring Investments - Global Multi Asset Income Plus Growth Fund	U	100.00%
Eastspring Investments - Global Technology Fund	U	75.78%
Eastspring Investments - Greater China Equity Fund	U	89.73%


	329 Prudential plc Annual Report 2025


Name of entity	Classes of shares held	Proportion held	Registered office address
Eastspring Investments - India Equity Fund	U	28.38%
Eastspring Investments - Pan European Fund	U	50.02%
Eastspring Investments - US Corporate Bond Fund	U	88.69%
Eastspring Investments - US High Investment Grade Bond Fund	U	89.08%
Eastspring Investments - US High Yield Bond Fund	U	25.87%
Eastspring Investments - US Investment Grade Bond Fund	U	28.99%
Eastspring Investments - World Value Equity Fund	U	86.43%
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
Eastspring Investments (Singapore) Limited	OS	100.00%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Investments Asia Pacific ex-Japan Target Return Fund	U	86.27%	Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Eastspring Investments Asian High Yield Bond MY Fund	U	83.58%
Eastspring Investments Berhad	OS	100.00%	Level 25, Menara Hong Leong, No. 6 Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia
Eastspring Investments Dana Dinamik	U	27.11%	Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Eastspring Investments Dinasti Equity Fund	U	46.90%
Eastspring Investments Fund Management Limited Liability Company	MI	100.00%	23rd Floor Saigon Trade Center, 37 Ton Duc Thang Street, Sai Gon Ward, Ho Chi Minh City, Vietnam
Eastspring Investments Global Equity Fund	U	95.27%	Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Eastspring Investments Group Pte. Ltd.	OS	100.00%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Investments Growth Fund	U	26.45%	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, Dover, Kent, Delaware 19904, United States of America
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 Government Bond Fund (Semi-Annual Distribution)	U	29.44%	Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905
Eastspring Investments India Infrastructure Equity Open Limited	OS	100.00%	3rd Floor, 355 NEX, Rue du Savoir, Cybercity Ebene 72201, Mauritius
Eastspring Investments India Innovation High Growth Equity Fund QII	U	100.00%	Eastspring Investments Limited, Marunouchi Park Bldg., 2-6-1 Marunochi, Chiyoda-ku, Tokyo, Japan 100-6905
Eastspring Investments Islamic Equity Income Fund	U	54.69%	Level 22, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Eastspring Investments Limited	OS	100.00%	Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-Ku, Tokyo, Japan
Eastspring Investments Services Pte. Ltd.	OS	100.00%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Investments SICAV-FIS - Alternative Investment Fund	U	100.00%	26, Boulevard Royal, L-2449, Luxembourg
Eastspring Investments Unit Trusts - Asian Balanced Fund	U	96.11%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Investments Unit Trusts - Dragon Peacock Fund ID	U	97.79%


	330 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Name of entity	Classes of shares held	Proportion held	Registered office address
Eastspring Investments Unit Trusts - Global Technology Fund	U	90.44%
Eastspring Investments Unit Trusts - Pan European Fund	U	51.87%
Eastspring Investments Unit Trusts - Singapore ASEAN Equity Fund	U	99.23%
Eastspring Investments Unit Trusts - Singapore Select Bond Fund	U	59.12%
Eastspring Investments Vietnam ESG Equity Fund	U	98.55%	26, Boulevard Royal, L-2449, Luxembourg
Eastspring Investments Vietnam Navigator Fund	U	74.68%	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 2901, 29th Floor Azia Center, 1233 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, 200120, China
Eastspring Private Equity Fund 2	U	99.99%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Eastspring Securities Investment Trust Co., Ltd.	OS	99.54%	4th Floor, No.1 Songzhi Road, Taipei 110, Taiwan
Eastspring SGD Cash Fund	U	87.91%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
First Sentier Global Property Securities Fund	U	66.69%	38 Beach Road, #06-11 South Beach Tower, Singapore 189767
FSITC Global Trends Fund	U	33.32%	1st Floor, No.6, Sec. 3, Minquan West Rd, Taipei, Taiwan
FSSA China Focus Fund	U	64.88%	70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland
Fubon 1-5 Years US High Yield Bond Ex China ETF	U	31.75%	8th Floor, No.108, Sec.1, Dunhua South. Rd., Taipei, Taiwan
Fuh Hwa 1-5 Yr High Yield ETF	U	66.33%	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
GS Twenty Two Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, 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	34.59%	12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India
ICICI Prudential Life Insurance Company Limited	OS	21.93%	ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025, India
ICICI Prudential Pension Funds Management Company Limited	OS	21.93%	Unit No. A, 2nd Floor, Cnergy Building, Appasaheb Marathe Marg, Prabhadevi, Mumbai, Maharashtra - 400025, India
ICICI Prudential Trust Limited	OS	49.00%	12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India
iShares Core MSCI Asia	U	44.86%	16th Floor, Champion Tower, 3 Garden Road, Central, Hong Kong
iShares MSCI Asia ex Japan Climate Action ETF	U	48.85%	20 Anson Road, #18-01 Twenty Anson, Singapore 079912
iShares MSCI Europe ESG Enhanced UCITS ETF	U	47.56%	12 Throgmorton Avenue, London, EC2N 2DL, United Kingdom
iShares MSCI USA ESG Enhanced UCITS ETF	U	41.49%	78 Sir John Rogerson's Quay, Dublin, D02 HD32, Ireland
KKP Active Equity Fund	U	29.91%	209 KKP Tower A, 17 Fl., Sukhumvit 21 (Asoke), Khlong Toey Nua, Wattana, Bangkok 10110, Thailand
Krungsri Greater China Equity Hedged Dividend Fund	U	22.00%	12th, 18th Zone B Floor, Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok 10330, Thailand
Lasalle Property Securities SICAV-FIS	U	99.95%	11-13 Bouldevard de la Foire, L-1528 Luxembourg
M&G Asia Property TS Trust	U	100.00%	8 Marina Boulevard, #05-02 Marina Bay, Financial Centre, Singapore, 018981
M&G Real Estate Asia Holding Company Pte. Ltd.	OS	33.00%	138 Market Street, #35-01 CapitaGreen, Singapore 048946
Manulife Asia Pacific Bond Fund	U	60.89%	9th Floor, No 89 Son Ren Road, Taipei, Taiwan


	331 Prudential plc Annual Report 2025


Name of entity	Classes of shares held	Proportion held	Registered office address
Manulife China Offshore Bond Fund	U	68.24%	9th Floor, No 89 Son Ren Road, Taipei, Taiwan
Manulife Global Equity Fund	U	25.71%
Manulife Superior Selection China Fund	U	27.98%
Manulife Taiwan Dynamic Fund	U	20.48%
MEAG FlexConcept	U	74.98%	R.C.S. Luxembourg NR. 28878, 1c, rue Gabriel Lippmann, L-5365 Munsbach
Nomura Global Shariah Sustainable Equity Fund	U	28.39%	Suite No 12.2, Level 12, Menara IMC,No.8 Jalan Sultan Ismail,Kuala Lumpur,50250,WP Kuala Lumpur, Malaysia
North Sathorn Holdings Company Limited	OS	100.00%	No. 63, Athenee Tower, 34th Floor, Wireless Road, Lumpini Subdistrict Pathumwan District, Bangkok Metropolis, Thailand
	PS	99.99%
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
Pinebridge ESG Emerging Market Corporate Strategy Bond Fund	U	24.59%	10th Floor, No. 144, Sec. 2, Minquan East Rd, Taipei, Taiwan
Pinebridge US Dual Core Income Fund	U	23.54%
Principal Core Fixed Income Fund	U	24.43%	44, 16th Floor, CIMB Thai Bank, Lungsuan Road, Lumpini, Bangkok 10330, Thailand
Principal Global Silver Age Fund	U	35.07%
Principal Islamic Malaysia Government Sukuk Fund	U	50.87%	Level 32, Exchange 106, Lingkaran TRX, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Principal Malaysia Titans Fund	U	63.07%	Level 31, Exchange 106, Lingkaran TRX, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
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
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%	Chip Mong Tower Building, Units L19, L20, and L21, 19th, 20th, 21st Floor, Russian Federation Blvd (110), Phum 10, Sangkat Phsar Depou 3, Khan Tuol Kork, Phnom Penh, Cambodia
Prudential (US Holdco 1) Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
Prudential Africa Holdings Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
Prudential Africa Services Limited	OS	100.00%	3rd Floor, One Africa Place, LR No. 1870/X/45, P.O. Box 1393-00606, 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 Bermuda ISAC Ltd.	OS	100.00%	Clarendon House, 2 Church Street, Hamilton HM11, Bermuda
Prudential Bermuda Re ISA, Ltd.	OS	100.00%	Clarendon House, 2 Church Street, Hamilton HM11, Bermuda
Prudential BSN Takaful Berhad	OS	49.00%	Level 13, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur, Malaysia
Prudential Corporation Asia Limited	OS	100.00%	13th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong
Prudential Corporation Holdings Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
Prudential Enterprise Management (Beijing) Co., Ltd.	MI-WFOE	100.00%	Unit 1817, Level 18, Building 1, No.1 Jianguomenwai Avenue, Chaoyang District, Beijing, China
Prudential Financial Advisers Singapore Pte. Ltd.	OS	100.00%	30 Cecil Street, #30-01 Prudential Tower, Singapore 049712


	332 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


Name of entity	Classes of shares held	Proportion held	Registered office address
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%	5th Floor, 10 Old Bailey, London, EC4M 7NG, 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 Holdings Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
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%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
Prudential HCL Health Insurance Limited	OS	70.00%	Suite 6, 48th Floor, Commerz III, International Business Park, Oberoi Garden City, Off Western Express Highway, Goregaon (East), Mumbai, 400063, India
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 Fund - Post Retirement Care Investment Fund	U	38.98%	F377/9/H/3, Kabulonga Road, Kabulonga, Lusaka, Zambia
Prudential Investment Fund - Pru Offshore Fund	U	28.64%	F377/9/H/3, Kabulonga Road, Kabulonga, Lusaka, Zambia
Prudential Investment Management Private Limited	OS	100.00%	1 Pasir Panjang Road, #12-02, Singapore 118479
Prudential IP Services Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, United Kingdom
Prudential Life Assurance (Lao) Company Limited	OS	100.00%	5th Floor, Lao International Business and Tourist Center Project (Vientiane Center), Khouvieng Road, Nongchan Village, Sisattanak District, Vientiane Capital, Lao PDR
Prudential Life Assurance (Thailand) Public Company Limited	OS	99.93%	944 Mitrtown Office Tower, 10th, 29th-31st Floor, Rama 4 Road, Wangmai, Pathumwan, Bangkok, 10330, Thailand
Prudential Life Assurance Kenya Limited	OS	100.00%	Vienna Court, Ground Floor, State House Crescent, Off State House Avenue, P.O. Box 25093-00603, Nairobi, Kenya
Prudential Life Assurance Zambia Limited	OS	100.00%	Prudential House, Plot No. 32256, Thabo Mbeki Road, P.O. Box 31357, Lusaka, Zambia
Prudential Life Insurance Ghana Limited	OS	100.00%	12th Floor, 335 Place, N1, North Dzorwulu, 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 Life Vault Limited	PS	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, Zambia
Prudential Services Asia Sdn. Bhd.	OS	100.00%	Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1 Leboh Ampang, 50100 Kuala Lumpur, Malaysia
Prudential Services Asia Sdn. Bhd.	PS	51.00%
Prudential Services Limited	OS	100.00%	5th Floor, 10 Old Bailey, London, EC4M 7NG, 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%	1 Pasir Panjang Road, #12-02, Singapore 118479
Prudential Singapore Holdings Pte. Limited	OS	100.00%	30 Cecil Street, #30-01 Prudential Tower, Singapore 049712
Prudential Singapore Holdings Pte. Limited	PS	100.00%	30 Cecil Street, #30-01 Prudential Tower, Singapore 049712


	333 Prudential plc Annual Report 2025


Name of entity	Classes of shares held	Proportion held	Registered office address
Prudential Technology and Services India Private Limited	OS	100.00%	Unit 401, 4th Floor, CIGNUS, Tower-1, Whitefield Bangalore, Hoodi Village, K.R. Puram Hobli, Whitefield, Bangalore, Bangalore South, Karnataka, India, 560066
Prudential Vietnam Assurance Private Limited	OS	100.00%	25th Floor Saigon Trade Center, 37 Ton Duc Thang Street, Sai Gon Ward, Ho Chi Minh City, Vietnam
Prudential Zenith Life Insurance Limited	OS	100.00%	6th Floor, Civic Towers, Plots Ga & G1 Ozumba Mbadiwe Avenue, Victoria Island, Lagos, Nigeria
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%	23rd Floor, Prudential Tower, 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%	1 Pasir Panjang Road, #12-02, Singapore 118479
Reksa Dana Eastspring IDR Fixed Income Fund (NDEIFF)	U	95.42%	Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia
Reksa Dana Syariah Eastspring Syariah Fixed Income Amanah	U	76.89%
Reksa Dana Syariah Eastspring Syariah Mixed Asset Fund	U	34.11%	Prudential Tower Lantai 23, JL, Jend. Sudirman Kav. 79, Kakarta 12910 - Indonesia
Reksa Dana Syariah Eastspring Syariah Money Market Khazanah	U	67.70%	Prudential Tower, 23rd Floor, Jl. Jend. Sudirman Kav.79, Jakarta 12910, Indonesia
Rhodium Investment Funds - Singapore Bond Fund	U	99.99%	7 Straits View, #09-01 Marina One East Tower, Singapore 018936
Rhodium Passive Long Dated Bond Fund	U	99.93%
Robeco QI European Active Index Equities	U	43.61%	6, route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg
Schroder Asian Investment Grade Credit	U	26.05%	138 Market Street, #23-01 CapitaGreen, Singapore 048946
Schroder Emerging Markets Fund	U	72.14%
Schroder Multi-Asset Revolution	U	49.69%
Schroder US Dollar Money Fund	U	29.48%	9th Floor, No. 108, Section 5, Xinyi Road, Taipei, Taiwan
Scotts Spazio Pte. Ltd.	OS	45.00%	316 Tanglin Road, #01-01,Singapore, 247978
Shanghai CPE Asset Management Co., Ltd.	MI - JV	26.95%	Room 101-2, No.128 North Zhangjiabang Road, Pudong District, Shanghai, China
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
StepStone Prudential Private Credit Fund	U	100.00%	103 South Church Street, Harbour Place, 5th Floor, KY1-1202 Cayman Islands
Tisco US Equity Fund	U	20.46%	48/16-17, Tisco Tower Building, 9 Floor. North Sathorn, Silom, Bangrak, Bangkok 10500
United Global Innovation Fund	U	20.43%	23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand
United Global Quality Equity Fund	U	59.66%	Jln Raja Laut, City Centre, 50100 Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia
United Global Quality Growth Fund	U	27.94%	23A, 25th Floor, Asia Centre Building, 173/27-30, 32-33 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand
United-I Malaysia Discovery Fund	U	32.95%	Level 20, UOB Plaza 1, 7, Jalan Raja Laut, 50350, Kuala Lumpur, Malaysia
United-I Malaysia Equity Fund	U	67.05%	Level 20, UOB Plaza 1, 7, Jalan Raja Laut, 50350, Kuala Lumpur, Malaysia


	334 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the consolidated financial statements continued


UOB Smart Global Healthcare Fund	U	33.50%	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	42.24%
UOB Smart Millennium Growth Fund	U	31.06%
USD Investment Grade Infrastructure Debt Fund SCSp	U	21.23%	35a, Avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

* Prudential Assurance Malaysia Berhad is consolidated in the Group's consolidated financial statements reflecting the controlling interest of the Group. In January

2026, the Group acquired an additional 19 per cent stake in Sri Han Suria Sdn. Bhd., the holding company that owns Prudential Assurance Malaysia Berhad,

increasing the Group’s aggregate stake to 70 per cent going forward (see note D2 for further details).

† 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.

The below table lists the issued share capital of the subsidiaries of the Group which, in the opinion of the Directors, principally affect the results or

assets of the Group:


Name of entity	Issued and fully paid up share / registered capital
Prudential Assurance Company Singapore (Pte) Limited	526,557,000 ordinary shares of SGD 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	3,691,854,873 ordinary shares of HKD 1 each
Prudential Assurance Malaysia Berhad	100,000,000 ordinary shares of RM 1 each


	335 Prudential plc Annual Report 2025

Statement of financial position of the parent company


	Note	31 Dec 2025 $m	31 Dec 2024 $m
Fixed assets
Investments in subsidiary undertakings	5	13,308	13,789
Current assets
Amounts owed by subsidiary undertakings		8,067	6,577
Cash at bank and in hand		42	107
Prepayments and other debtors		2	3
		8,111	6,687
Liabilities: amounts falling due within one year
Amounts owed to subsidiary undertakings		(1,754)	(852)
Tax payable		(9)	(8)
Other liabilities		(1)	(19)
		(1,764)	(879)
Net current assets		6,347	5,808
Total assets less current liabilities		19,655	19,597
Liabilities: amounts falling due after more than one year
Amounts owed to subsidiary undertakings		(4,210)	(3,637)
Total net assets		15,445	15,960

Capital and reserves	6
Share capital		169	176
Capital redemption reserve		14	7
Share premium		5,011	5,009
Profit and loss account		10,251	10,768
Shareholders’ funds		15,445	15,960

		2025 $m	2024 $m
Profit for the year		1,318	786

The financial statements of the parent company on pages 335 to 339 were approved by the Board of Directors on 17 March 2026 and signed

on its behalf by:

Shriti Vadera Anil Wadhwani

ChairChief Executive Officer


	336 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Statement of changes in equity of the parent company


	Share capital $m	Share premium $m	Capital redemption reserve $m	Profit and loss account $m	Shareholders’ funds $m
Balance at 1 Jan 2024	183	5,009	–	11,392	16,584

Profit and total comprehensive income for the year	–	–	–	786	786
Transactions with owners, recorded directly in equity
Share repurchase/buyback programmes	(7)	–	7	(878)	(878)
Share-based payment transactions	–	–	–	20	20
Dividends	–	–	–	(575)	(575)
Effect of scrip dividends	–	–	–	23	23
Total transactions with owners	(7)	–	7	(1,410)	(1,410)

Balance at 31 Dec 2024 / 1 Jan 2025	176	5,009	7	10,768	15,960

Profit and total comprehensive income for the year	–	–	–	1,318	1,318
Transactions with owners, recorded directly in equity
New share capital subscribed	–	2	–	–	2
Share repurchase/buyback programmes	(7)	–	7	(1,234)	(1,234)
Share-based payment transactions	–	–	–	(7)	(7)
Dividends	–	–	–	(623)	(623)
Effect of scrip dividends	–	–	–	29	29
Total transactions with owners	(7)	2	7	(1,835)	(1,833)

Balance at 31 Dec 2025	169	5,011	14	10,251	15,445


	337 Prudential plc Annual Report 2025

Notes to the parent company financial statements

1 Nature of operations

Prudential plc (‘the Company’) together with its subsidiaries (collectively, the ‘Group’ or ‘Prudential’) provides life and health insurance and asset

management in Greater China, ASEAN, India and Africa. The Group is headquartered in Hong Kong.

2 Basis of preparation

The financial statements of the Company, which comprise the statement of financial position, statement of changes in equity 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, and has set out below where advantages of the FRS 101 disclosure exemptions have been taken. The Company has also taken the

advantage of the exemption under Section 408 of the Companies Act 2006 from presenting its own profit and loss account.

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

– IAS 1 disclosure in respect of capital management and certain comparative information;

– IAS 7 cash flow statement and related notes;

– IAS 8 list of issued (and their likely effects of) new or revised but not yet effective IFRS standards;

– IAS 24 disclosures in respect of transactions with wholly-owned subsidiaries within the Group; and

– IFRS 15 ‘Revenue from Contracts with Customers’ in respect of revenue recognition.

As the consolidated financial statements of the Group include the equivalent disclosures, the Company has also applied the exemptions available

under FRS 101 in respect of the following disclosures:

– IFRS 2 ‘Share-based Payment’ in respect of Group-settled share-based payments;

– IFRS 7 ‘Financial Instruments: Disclosures’ and the consequential amendments to IFRS 7 related to IFRS 9; and

– IFRS 13 ‘Fair Value Measurement’.

The accounting policies set out in note 3 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 USD. Accordingly, the functional and presentational

currency of the Company is USD.

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 2025.

3 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, when held, the expected credit loss has been determined with reference to the historical experience of loans with equivalent credit

characteristics.

Dividends

Interim dividends are recorded in the year in which they are paid.

Cash and scrip dividends are initially recorded in the statement of changes in equity as a deduction from retained earnings, at the value of the

cash paid, or the cash equivalent to the scrip dividend. For scrip dividends settled by a new issue of shares the deduction from retained earnings is

subsequently reversed and an amount equal to the nominal value of shares issued is transferred to share capital from share premium or the

capital redemption reserve.


	338 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes to the parent company financial statements continued

Foreign currency translation

Transactions not denominated in the Company’s functional currency, USD, 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 recoverable (payable) recognised in the balance sheet is measured at the amount expected to be recovered from (paid to) relevant

tax authorities in accordance with the provisions of IAS 12 'Income Taxes'.

Deferred tax assets and liabilities are recognised in accordance with the provisions of IAS 12.

The Company has applied the IAS 12 paragraph 4A mandatory exemption from recognising and disclosing information on the associated

deferred tax assets and liabilities related to Pillar Two income taxes at 31 December 2025. For further details of the impact of Pillar Two income

taxes, refer to note B3 to the Group IFRS consolidated financial statements.

Share-based payments

The Group offers share awards 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.

4 Reconciliation from the FRS 101 parent company results to the Group IFRS 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.


Profit after tax	2025 $m	2024 $m
Profit for the year of the Company in accordance with FRS 101 ^{note (i)}	1,318	786
Accounting policy difference ^{note (i)}	(1)	11
Share in the IFRS result of the Group, net of distributions to the Company ^{note (ii)}	2,661	1,488
Profit after tax of the Group attributable to equity holders in accordance with IFRS	3,978	2,285

Shareholders’ equity	31 Dec 2025 $m	31 Dec 2024 $m
Shareholders’ funds of the Company in accordance with FRS 101	15,445	15,960
Accounting policy difference ^{note (i)}	(1)	11
Share in the IFRS net equity of the Group ^note(ii)	4,673	1,521
Shareholders' equity of the Group in accordance with IFRS	20,117	17,492

Notes

(i) Accounting policy difference represents the difference in accounting for expected credit losses on loan assets.

(ii) The share in the IFRS result of the Group represents the Company’s interest in the earnings of its subsidiaries, JVs and associates. The share in the IFRS net equity of the

Group represents the Company's interest in the net assets of its subsidiaries, JVs and associates. The movement compared with the prior year reflects movements in the

results of the Group relative to the result of the Company.

5 Investments in subsidiary undertakings


	2025 $m	2024 $m
At 1 Jan	13,789	13,786
Write-down of investment in Prudential Group Holdings Limited	(482)	–
Other ^note	1	3
At 31 Dec	13,308	13,789

Note

Other includes net amounts in respect of share-based payments settled by the Company for employees of its subsidiary undertakings.

Following the distribution of retained earnings by the Company’s direct subsidiary Prudential Group Holdings Limited (PGHL) the Company

determined that the remaining value of its investment in PGHL was less than its carrying value. The value of the Company’s investment in PGHL

was therefore reduced to the recoverable amount of this investment, measured as the value of PGHL’s net assets. A write-down of $482 million

was recognised in the income statement for the year.


	339 Prudential plc Annual Report 2025

The remaining investments in subsidiary undertakings held at 31 December 2025 have been assessed for indicators of impairment and none

were identified.

Subsidiary undertakings of the Company at 31 December 2025 are listed in note D6.4 to the Group IFRS consolidated financial statements.

6 Capital and reserves

Share capital and share premium

A summary of the ordinary shares in issue and the options outstanding to subscribe for the Company’s shares at 31 December 2025 is set out in

note C8 to the Group IFRS consolidated financial statements.

Share repurchase/buyback programmes

On 23 December 2025 the Company completed its $2 billion share buyback programme to reduce the issued share capital of the Company in

order to return capital to shareholders, announced in 2024. As at 31 December 2025, 201.4 million (2024: 92.1 million) ordinary shares in

aggregate have been repurchased for a total consideration excluding costs of approximately $1,996 million (2024: $785 million).

Further details of the share repurchase/buyback programmes by the Company are provided in note C8 to the Group IFRS consolidated financial

statements.

Retained profit of the Company

Retained profit at 31 December 2025 amounted to $10,251 million (31 December 2024: $10,768 million). The retained profit includes

distributable reserves of $4,486 million (31 December 2024: $4,996 million) and non-distributable reserves of $5,765 million (31 December

2024: $5,772 million). The non-distributable reserves of the Company relate to gains on intra-group transactions, in which qualifying

consideration was not received, and share-based payment reserves.

Under UK company law, Prudential may pay dividends only if sufficient distributable reserves of the Company are available for the purpose, and

if the amount of its net assets is greater than the aggregate of its called-up share capital and non-distributable reserves (such as the share

premium account) and the payment of the dividend does not reduce the amount of its net assets to less than that aggregate.

The retained profit of the Company is substantially generated from dividend income received from subsidiaries. The Group's segmental analysis

illustrates the generation of profit across the Group (see note B1.1 to the Group IFRS consolidated financial statements). The Group and its

subsidiaries are subject to local regulatory minimum capital requirements, as set out in note C9 of the Group IFRS consolidated financial

statements. A number of the principal risks set out in the Risk review report could impact the generation of profit in the Group’s subsidiaries in the

future and hence impact their ability to pay dividends in the future.

In determining the dividend payment in any year, the Directors follow the Group dividend policy described in the Financial review section of this

Annual Report. The Directors consider the Company’s ability to pay current and future dividends twice a year by reference to the Company’s

business plan and certain stressed scenarios.

7 Other information

(a) Information on key management remuneration is given in note B2.3 to the Group IFRS consolidated financial statements. Additional

information on directors’ remuneration is given in the Directors’ remuneration report section of this Annual Report.

(b) Information on transactions of the Directors with the Group is given in note D5 to the Group IFRS consolidated financial statements.

(d) Fees payable to the Company’s auditor for the audit of the Company’s annual accounts were $0.1 million (2024: $0.1 million) and for other

services were nil (2024: nil).

(e) In certain instances, the Company has guaranteed that its subsidiaries will meet their obligations when they fall due for payment.

8 Post balance sheet events

Dividends

The second interim dividend for the year ended 31 December 2025, which was approved by the Board of Directors after 31 December 2025, is

described in note B5 to the IFRS consolidated Group financial statements.

Share Buyback

On 6 January 2026 the Company announced that it will commence a buyback programme of its ordinary shares up to a maximum aggregate

amount of $1.2 billion. It is intended that this buyback will be completed by no later than 18 December 2026.


	340 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Statement of Directors’ responsibilities in respect of the Annual Report and

the financial statements

The directors are responsible for preparing the Annual Report and the Group and parent company financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare Group and parent company financial statements for each financial year. Under that law they are

required to prepare the Group financial statements in accordance with UK-adopted international accounting standards and applicable law and

have elected to prepare the parent company financial statements in accordance with UK accounting standards and applicable law, including FRS

101 Reduced Disclosure Framework.

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 Group and parent company and of their profit or loss for that period. In preparing each of the Group and parent company

financial statements, the directors are required to:

– select suitable accounting policies and then apply them consistently;

– make judgements and estimates that are reasonable, relevant, reliable and prudent;

– for the Group financial statements, state whether they have been prepared in accordance withUK-adopted international accounting

standards;

– for the parent company financial statements, state whether applicable UK accounting standards have been followed, subject to any material

departures disclosed and explained in the parent company financial statements;

– assess the Group and parent 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 Group or the parent 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 parent company’s transactions

and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial

statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to

safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for preparing a Strategic report, Directors’ report, Directors’ remuneration

report and Corporate governance statement that comply with that law and those regulations.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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

The directors of Prudential plc, whose names and positions are set out in the Governance section of this report, 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 and the undertakings included in the consolidation taken as a whole;

– the strategic report includes a fair review of the development and performance of the business and the position of the Group, together with a

description of the principal risks and uncertainties that they face; and

– the annual report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for

shareholders to assess the Group’s position and performance, business model and strategy.


	341 Prudential plc Annual Report 2025

Independent auditor's report to the members of Prudential plc

Opinion

In our opinion:

– Prudential plc’s Group financial statements and parent company financial statements (the “financial statements”) give a true and fair view of

the state of the Group’s and of the parent company’s affairs as at 31 December 2025 and of the Group’s profit for the year then ended;

– the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;

– the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

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

We have audited the financial statements of Prudential plc (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year ended 31

December 2025 which comprise:


Group		Parent company
Consolidated statement of financial position as at 31 December 2025		Statement of financial position as at 31 December 2025
Consolidated income statement for the year then ended		Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for the year then ended		Related notes 1 to 8 to the Financial statements, including material accounting policy information
Consolidated statement of changes in equity for the year then ended
Consolidated statement of cash flows for the year then ended
Related notes A1 to D6 to the financial statements, including material accounting policy information and the information marked ‘audited’ in the Risk Review section of the Annual Report

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted

international accounting standards and as regards the parent company financial statements, as applied in accordance with applicable law and

United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting

Practice).

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 believe

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

Independence

We are independent of the Group and parent 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.

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

independent of the Group and the parent company in conducting the audit.


	342 Prudential plc Annual Report 2025


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Independent Auditor's Report to the members of Prudential plc continued

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 Group and parent company’s ability to continue to

adopt the going concern basis of accounting included:

– confirming our understanding of management's going concern assessment process and obtaining management's assessment which covers

the period to 31 March 2027;

– assessing management's evaluation of the liquidity and solvency position of the Group by reviewing base case and stressed liquidity and

solvency projections through the going concern period;

– evaluating management's forecast analysis to understand the severity of the downside scenarios that would be required to occur to result in

the elimination of solvency and / or liquidity headroom and considering the actions available to management in such scenarios;

– performing enquiries of management and those charged with governance to identify risks or events that may impact the Group's ability to

continue as a going concern; and

– assessing the appropriateness of the going concern disclosures by comparing the disclosures with management's assessment and considering

their compliance with the relevant reporting requirements.

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 Group and parent company’s ability to continue as a going concern for a period to 31 March

2027.

In relation to the Group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing

material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

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 Group’s ability to continue as a

going concern.

Overview of our audit approach


Audit scope		– We performed an audit of the complete financial information of 6 components and audit procedures on specific balances for a further 4 components. – We performed central procedures for certain audit areas and balances as outlined in the Tailoring the scope section of our report.
Key audit matters		– Valuation of best estimate insurance contract liabilities. – Revenue recognition in respect of the release of contractual service margin (CSM).
Materiality		– Overall Group materiality of $215m which represents 1% of total equity.

An overview of the scope of the parent company and group audits

Tailoring the scope

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

company within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements.

When identifying components at which audit work needed to be performed to respond to the identified risks of material misstatement of the

Group financial statements, we considered our understanding of the Group and its environment, including its organisation structure and business

model; the applicable financial reporting framework; and the Group’s system of internal control, including the extent of centralised activities

relevant to financial reporting.

The Primary audit team took a centralised approach to auditing certain processes and controls, as well as the substantive testing of specific

account balances related to those processes. This included audit procedures over the Group’s shared IT infrastructure and elements of the

Group’s IFRS 17 infrastructure that are managed and maintained centrally.

We determined that centralised audit procedures could be performed across elements of the best estimate liability and contractual service

margin significant accounts described later in this report, and for other audit areas, including: impairment of goodwill and distribution rights;

going concern and long-term viability; Group-wide controls; elements of taxation; and share based payments.

In addition to the above areas, for 7 selected components, we performed certain procedures over the cash balances as at 31 December 2025.

These components are separate to those described below.

We identified 8 components as individually relevant to the Group due to significant risks or areas of higher assessed risk of material

misstatement of the Group financial statements being associated with the component, or due to the financial size of the component relative to

the Group.

We identified the significant accounts where audit work needed to be performed at these individually relevant components by applying

professional judgement, including considering the reasons for identifying the component as individually relevant and the size of the

component’s account balance relative to the Group significant account balance.


	343 Prudential plc Annual Report 2025

We then considered whether the remaining Group significant account balances not yet subject to audit procedures, in aggregate, could give rise

to a risk of material misstatement of the Group financial statements. We selected a further 2 components of the Group to include in our audit

scope to address these risks.

Having identified the components for which work would be performed, we determined the scope to assign to each component.

Of the 10 components selected, we designed and performed audit procedures on the entire financial information of the principal life insurance

companies in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam and the Mainland China life insurance joint venture (“full scope

components”), which were selected based on their size or risk characteristics. For 3 components, representing the life insurance companies in

Taiwan and Thailand and certain holding and service entities in the UK and Hong Kong, we designed and performed audit procedures on specific

significant account balances or disclosures of the financial information of the component (“specific scope components”). For the remaining

component, Eastspring asset management, we performed specified audit procedures to obtain evidence for one or more relevant significant

accounts (“specified procedure component”).

The table below shows the contribution of the full scope, specific scope and specified procedure components to Total equity, Profit before tax,

Total assets, and Best estimate insurance contract liabilities and Release of CSM that are considered Key Audit Matters and described later in this

report.


	2025
	Total equity	Profit before tax	Total assets	Best estimate insurance contract liabilities (Note 3)	Release of CSM (Note 3)
Full scope	65%	69%	83%	88%	84%
Specific scope (Note 1)	24%	24% (Note 2)	14%	10%	10%
Specified procedures	4%	7%	1%	–	–
Full scope, specific scope and specified procedures coverage	93%	100%	98%	98%	94%
Remaining components (Note 4)	7%	0%	2%	2%	6%
Total reporting components	100%	100%	100%	100%	100%

(1) The audit scope of the specific scope components may not have included testing of all significant accounts of the component but will have contributed to the

coverage of significant accounts tested for the Group.

(2) The profit before tax coverage of 24% includes gain attaching to corporate transactions, central costs and interest on core structural borrowings which are audited by

the primary team and have a contribution of 17% and the life insurance specific scope components that have a contribution of 7%.

(3) The Group audit risks in respect of the valuation of the best estimate insurance contract liabilities and revenue recognition in respect of release of the contractual

service margin were subject to full audit procedures at each of the full scope components and the specific scope life insurance components.

(4) Of the remaining components, none are individually greater than 4% of the Group’s total equity. For these components, we performed other procedures at the Group

level to respond to any potential risks of material misstatement to the Group financial statements which included: performing analytical reviews at the Group

financial statement line item level, testing Group-wide controls and testing consolidation journals and intercompany eliminations.

Involvement with component teams

In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the

components by us, as the primary audit engagement team, or by component auditors from other EY global network firms operating under our

instruction. For the UK and Hong Kong holding and service companies and for the centralised processes and controls, audit procedures were

performed directly by the primary audit team. For the full scope and remaining specific scope components, audit procedures were performed by

component audit teams. Where the work was performed by component auditors, we determined the appropriate level of involvement to enable

us to determine that sufficient audit evidence had been obtained as a basis for our opinion on the Group as a whole.

The Primary audit team was responsible for the scoping and direction of the audit process and interacted regularly with the component teams

throughout the audit, including regular video conference meetings to provide updates on the Group, the audit approach and matters arising

from the component audits.

The Primary audit team continued to follow a programme of planned visits that has been designed to ensure that the Senior Statutory Auditor

and/or other senior members of the primary team visit each in scope component location during the period to review and oversee the procedures

performed by local teams. During the current year’s audit cycle, visits were undertaken by the primary audit team to the component teams in

each location listed above. These visits involved discussing the audit approach with the component team and any issues arising from their work,

meeting with local management, reviewing relevant audit working papers related to controls and substantive testing on risk areas and attending

local Audit Committees for the largest four components.

The combination of these oversight procedures and the additional procedures performed at Group level gave us appropriate evidence for our

opinion on the Group financial statements.

Climate change

The Group has determined that the most significant future impacts from climate change on its operations will be from strategy implementation,

financial resilience, insurance and product risks, operational resilience, data and model limitations and regulatory, legislative and disclosure

expectations. These are explained, together with the Group’s climate commitments, in the required Task Force On Climate Related Financial

Disclosures in the Sustainability section, and in the Risk Review section, of the Strategic Report. All of these disclosures form part of the “Other

information,” rather than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of

considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or

otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.


	344 Prudential plc Annual Report 2025


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Independent Auditor's Report to the members of Prudential plc continued

In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any consequential

material impact on its financial statements.

The Group has explained in note C6 Risk and sensitivity analysis how climate change has been reflected in the financial statements. Significant

judgements and estimates relating to climate change are included in note C6, detailing in particular that the Group’s scenario testing results of

plausible global responses to climate change do not indicate the need for explicit allowance for climate change within the current valuation of

assets and liabilities.

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

that there is no need for explicit allowance for climate change within the valuation of assets and liabilities following the requirements of UK-

adopted International Accounting Standards. As part of this evaluation, we performed our own risk assessment, supported by EY climate change

specialists, to determine the risks of material misstatement in the financial statements from climate change which needed to be considered in

our audit.

We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability 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 area		Our response to the risk
Valuation of best estimate insurance contract liabilities (Net best estimate insurance contract liabilities $146.7bn; 2024: $123.4bn) Refer to the Audit Committee Report ; and Notes A3 and C3 of the Consolidated Financial Statements The IFRS 17 best estimate liabilities (BEL) are calculated using complex fulfilment cashflow models and are sensitive to economic and operating assumptions set by management. Judgment is involved in setting economic assumptions, particularly discount rates (including the illiquidity premium adjustment) and investment return assumptions; and in determining operating assumptions in respect of mortality, morbidity (including medical claims costs), persistency and expenses (including IFRS 17 attribution). There is a risk that assumptions do not reflect the economic environment and the Group’s demographic and operating experience. In addition, economic assumptions are sensitive to current macro-economic factors and geopolitical risks. Due to the element of judgment in setting operating assumptions and the sensitivity of the insurance contract balances to small changes in assumptions, there is an inherent risk of management override in this area. We consider the integrity and appropriateness of fulfilment cashflow models used to determine the IFRS 17 BEL to be critical to the valuation of insurance contract balances. We consider the key risk to relate to changes to fulfilment cashflow models.		Using EY actuaries as part of our audit team, we performed the following procedures: For assumptions: – obtained an understanding and tested the design and operating effectiveness of key controls over management’s process for setting economic and operating assumptions; – for economic assumptions: – tested discount rates and investment return assumptions for a sample of currencies by reference to yield curves and the Group’s economic scenario generators; and – compared the information used to determine the illiquidity premium to the characteristics of the liabilities, asset allocations, and yields-to- maturity and allowance for credit risk on the reference portfolio of assets; – for operating assumptions: – compared the key assumptions other than expense assumptions set by management with the results of management’s experience investigations, market trends and regulatory developments around product features and pricing; and – compared the expense assumptions to the Group’s historical, current and projected expense levels and policy relating to the attribution of expenses to insurance contracts; and – performed procedures to test that the assumptions used in the models were consistent with the approved basis. For IFRS 17 fulfilment cashflows modelling: – obtained an understanding of management’s processes and tested the design and operating effectiveness of key controls over model changes; and – for a sample of new models and changes to existing models, we compared management’s model validation results with the terms and conditions of the related insurance contracts and the Group’s IFRS 17 valuation policies. For a selection of these models, we performed an independent recalculation of the BEL for a sample of Insurance Contract Groups (ICGs) and compared the results to the output of the fulfilment cashflow models used by management.


	345 Prudential plc Annual Report 2025


Risk area	Our response to the risk
Key observations communicated to the Audit Committee We determined that the actuarial assumptions used by management fall within a reasonable range. We determined that the fulfilment cashflow models used are appropriate, that changes to the models were implemented as intended and that controls over management’s processes for modelling IFRS 17 BEL using the fulfilment cashflow models were operating effectively.
Revenue recognition in respect of the release of contractual service margin (CSM) (Release of CSM $2.4bn; 2024: $2.3bn) Refer to the Audit Committee Report; and Notes A3 and C3 of the Consolidated Financial Statements Release of CSM is a key component of insurance revenue under IFRS 17 and its calculation involves significant management judgment. The release of CSM is measured based on the level of service provided, as measured by coverage units, and is based on the opening CSM adjusted for movements in the period, including: – Additions to the CSM during the period in respect of new business – Interest accretion for contracts measured using the General Measurement Model (GMM) – The change in fair value of underlying items for contracts measured using the variable fee approach (VFA) – Changes in fulfilment cashflows arising from changes in operating assumptions, that relate to future service Given the importance of the release of CSM to reported insurance revenue, and the complexity of calculations and subjectivity of assumptions involved in determining coverage units and movements in the CSM, we consider release of CSM to give rise to an inherent risk of fraud in revenue recognition.	Using EY actuaries as part of our audit team, we performed the following procedures: – obtained an understanding of management’s processes and tested the design and operating effectiveness of controls over: (1) the determination of coverage units; (2) the change management and governance process over the CSM calculation model; (3) management review controls over CSM movements during the period, including release of CSM; – for a sample of contracts issued during the year, tested the calculation of the initial CSM including, where relevant, the identification of onerous contracts; – tested the accuracy of the CSM calculation, including the determination of coverage units, interest accretion for contracts measured using GMM and release of CSM, through reperformance of the calculation for a sample of ICGs; – compared the release pattern to our expectations, based on the prior year release pattern and changes in the business and economic environment during the period; – compared the impact of operating and economic assumption changes in the CSM movement, including changes in the fair value of underlying items for contracts measured using VFA, to related changes in the BEL calculation, including considering whether they related to past or future service; and – validated the CSM movement disclosures in the financial statements to the output of the CSM calculation model.
Key observations communicated to the Audit Committee We determined that the CSM calculation model is appropriate, that changes to the model were implemented as intended and that controls over management’s processes over the CSM calculation model, coverage units determination and CSM movements operated effectively. We also determined that CSM movements including release of CSM are reasonable and that CSM related disclosures in the consolidated financial statements are appropriate.

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 determining the nature and extent of our audit procedures.


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Independent Auditor's Report to the members of Prudential plc continued

We determined materiality for the Group to be $215m (2024: $180m), which is 1% (2024: c1%) of total equity. During the course of our audit,

we reassessed our initial planning materiality of $180m and updated it to $215m to reflect the total equity at 31 December 2025. We believe

that total equity is an appropriate measure to set materiality as we believe that investors are mainly focused on the financial strength of the

Group, for which the most appropriate IFRS metric is equity, and growth and profitability metrics based on non-IFRS Traditional Embedded Value

reporting.

We determined materiality for the Parent Company to be $154m (2024: $160m), which is 1% (2024: 1%) of total equity.

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 Group’s overall control environment, our judgement was that

performance materiality was 75% (2024: 50%) of our planning materiality, namely $160m (2024: $90m). We have set performance materiality

at this percentage due to the lower level of corrected and uncorrected misstatements identified during our previous year audit.

Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is undertaken

based on a percentage of total performance materiality. The performance materiality set for each component is based on the relative scale and

risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the current year, the range

of performance materiality allocated to components was $35m to $70m (2024: $20m to $41m).

Reporting threshold

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

We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of $11m (2024: $9m), 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 comprising the Strategic Report, the Governance Report, the

Directors’ Remuneration Report, the TEV Basis Results and the Additional Information, 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, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with 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 the directors’ report 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 Group and the parent company and its environment obtained in the course of the audit,

we have not identified material misstatements in the strategic report or the 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 by the parent company, or returns adequate for our audit have not been received from

branches not visited by us; or

– the parent company financial statements and the part of the Directors’ Remuneration Report to be audited 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.


	347 Prudential plc Annual Report 2025

Corporate Governance Statement

We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance

Statement relating to the Group and company’s compliance with the provisions of the UK Corporate Governance Code specified for our review

by the UK Listing Rules.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance

Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

– Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties

identified;

– Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is appropriate;

– Director’s statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its liabilities;

– Directors’ statement on fair, balanced and understandable;

– Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks;

– The section of the annual report that describes the review of effectiveness of risk management and internal control systems; and

– The section describing the work of the audit committee.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, 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 Group and parent 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 Group or the parent 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 Group and determined that the most

significant are the relevant laws and regulations related to elements of company law, insurance regulation and tax legislation, and the

financial reporting framework. Our considerations of other laws and regulations that may have a material effect on the financial statements

included permissions and supervisory requirements of the listing authorities in the countries where the Company’s shares and debt are listed.

We also obtained an understanding of the laws and regulations in the territories in which the Group operates to consider if these would have a

material effect on the financial statements.

– We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal

and compliance matters. We also reviewed correspondence between the Company and regulatory bodies; reviewed minutes of the Board and

its Committees; and gained an understanding of the Company’s governance framework.

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

events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk

assessment procedures included:

– Enquiring of Directors, the Audit Committee and Internal Audit

– Inspecting papers provided to those charged with governance as to the policies and procedures to prevent and detect fraud, including the

Group's "whistleblowing" policies and procedures along with engagement with local management to identify fraud risks specific to their

business units, as well as whether they have knowledge of any actual, suspected or alleged fraud.

– Reading Board and Audit Committee minutes.

– Considering remuneration incentive schemes and performance targets for management.

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

involved inquiries of the Group’s internal legal counsel, internal audit, certain senior management executives and focused testing on a sample

basis, including journal entry testing.


	348 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Independent Auditor's Report to the members of Prudential plc continued

– The risk of fraud was considered to be higher within revenue recognition in respect of the release of CSM due to the fact that the release of

CSM represents a significant portion of the Company's insurance revenue. We also considered there to be a higher fraud risk specifically

related to operating assumptions, which affect the valuation of the insurance contract liabilities. We considered management override risk to

be higher in this area due to significant judgements and estimates involved. Our procedures over Key Audit Matters and other significant

accounting estimates included challenging management on the assumptions and judgements made in determining these estimates, including

assessing significant accounting estimates for bias.

To address the pervasive risk as it relates to management override, we also performed procedures including:

– Identifying journal entries based on risk criteria and comparing the identified entries to supporting documentation.

– The Group operates in the insurance industry which is a highly regulated environment. As such, the Senior Statutory Auditor considered the

experience and expertise of the primary audit team and the component teams to ensure that the team had the appropriate competence

and capabilities, which included the use of specialists where appropriate.

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

Following the recommendation from the Audit Committee, 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 audit opinion is consistent with the additional report to the Audit committee.

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, United Kingdom

17 March 2026


	349 Prudential plc Annual Report 2025


	350 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

TEV basis results



352	Index to TEV basis results


	351 Prudential plc Annual Report 2025


	352 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Traditional Embedded Value (TEV) basis results


	353 Prudential plc Annual Report 2025

Basis of preparation

In addition to IFRS reporting, Prudential has, from the first quarter of 2025, chosen to prepare a set of supplementary results on a Traditional

Embedded Value (TEV) basis. The results have been determined in accordance with the methodology and assumptions set out in notes 6 and 7.

All results are stated net of tax and converted using actual exchange rates (AER) unless otherwise stated. AER are actual historical exchange rates

for the relevant accounting period. Constant exchange rates (CER) results are calculated by translating prior year results using current year

foreign currency exchange rates, ie current year average rates for the income statement and current year closing rates for the balance sheet.

TEV results are prepared on a supplementary basis to the Group’s IFRS results. TEV is a way of measuring the current value to shareholders of the

future profits from the life businesses (considering only policies that are in-force at the balance sheet date) using a set of actuarial assumptions

and after making an allowance for the aggregate risks of that business, plus total net worth. It also includes a provision for future unallocated

central corporate expenditure. The value of future new business is excluded from the embedded value. This compares with IFRS profit for

insurance contracts which largely reflects the level of services provided for a given period. Under IFRS, unearned future profits expected on those

same insurance contracts are contained in a separate liability called the CSM. These future IFRS profits have been derived on a risk neutral basis

(including an illiquidity premium), without allowing for the real-world investment returns that will be earned on the assets held. In contrast, TEV

reflects all future profits, with no equivalent liability to the CSM, but values those profits on a risk-adjusted real-world basis, allowing for the future

investment returns that are expected to be earned by the assets held. TEV also uses a higher discount rate that allows for the uncertainties in

these cash flows. IFRS is updated annually for current interest rates and other economic assumptions whereas TEV makes use of longer-term

investment returns as described in note 6. For the purposes of preparing TEV results, insurance joint ventures and associates are included at the

Group’s proportionate share of their embedded value and not at their market value. Asset management and other non-insurance subsidiaries,

joint ventures and associates are included in the TEV results at the Group’s proportionate share of IFRS shareholders’ equity, with central Group

debt shown on a market value basis. Further information is contained in note 4 and note 5.

The Directors are responsible for the preparation of the supplementary information in accordance with the stated methodology and assumptions

above (as detailed in notes 6 and 7). In preparing the supplementary TEV basis results, the Directors have satisfied themselves that the Group

remains a going concern. Further information is provided in note A to the IFRS consolidated financial statements.


	354 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

TEV results highlights


	2025	2024
		AER		CER
	$m	$m	% change	$m	% change
New business profit (NBP) ^{note (i)}	2,782	2,464	13%	2,495	12%
Annual premium equivalent (APE) sales ^{note (i)}	6,661	6,202	7%	6,289	6%
New business margin on APE (%)	42%	40%	2ppts	40%	2ppts
Present value of new business premiums (PVNBP) ^{note (i)}	31,925	29,034	10%	29,400	9%

Operating free surplus generated from in-force insurance and asset management businesses ^{notes (i)(ii)}	3,059	2,666	15%	2,671	15%
Free surplus excluding distribution rights and other intangibles	9,408	8,604	9%	8,802	7%
Free surplus ratio (%)^{note (iii)}	221%	234%	(13)ppts	234%	(13)ppts

TEV operating profit ^{notes (i)(iv)}	4,752	4,095	16%	4,142	15%
Operating return on Group TEV (%) ^{note (v)}	15%	14%	1ppts

Closing Group TEV equity ^{note (vi)}	37,803	34,267	10%	34,933	8%
Closing Group TEV equity per share (in cents) ^{note (vi)}	1,483¢	1,289¢	15%	1,314¢	13%
Closing Group TEV (ie excluding goodwill attributable to equity holders) per share (in cents) ^{note (vi)}	1,453¢	1,262¢	15%	1,285¢	13%

Notes

(i) New business and operating results are presented before deducting the amounts attributable to non-controlling interests. This presentation is applied consistently

throughout this document, unless stated otherwise.

(ii) Stated before restructuring costs, centrally incurred costs and eliminations.

(iii) Free surplus ratio is calculated as the total of Group free surplus excluding distribution rights and other intangibles and TEV required capital, divided by TEV required

capital.

(iv) TEV operating profit is stated after restructuring costs, centrally incurred costs and eliminations.

(v) Operating return on Group TEV is calculated as TEV operating profit for the year, after non-controlling interests, as a percentage of opening Group TEV, excluding

distribution rights and other intangibles. Operating profit and Group TEV are net of non-controlling interests. By definition Group TEV excludes goodwill.

(vi) Stated net of non-controlling interests.

The TEV basis supplementary information on pages 354 to 373 was approved by the Board of Directors on 17 March 2026 and signed on its

behalf by:

Shriti Vadera Anil Wadhwani

ChairChief Executive Officer


	355 Prudential plc Annual Report 2025

Movement in Group TEV equity


		2025 $m			2024 $m
	Note	Insurance and asset management operations	Other (central) operations	Group total	Group total
New business profit	1	2,842	(60)	2,782	2,464
Profit from in-force business	2	2,284	–	2,284	1,967
Insurance business		5,126	(60)	5,066	4,431
Asset management business		305	–	305	275
Operating profit (loss) from insurance and asset management businesses		5,431	(60)	5,371	4,706
Change in allowance for corporate expenditure and other central costs incurred in the year	4	–	(454)	(454)	(414)
Operating profit (loss) before restructuring costs		5,431	(514)	4,917	4,292
Restructuring costs		(43)	(122)	(165)	(197)
Operating profit (loss) for the year		5,388	(636)	4,752	4,095
Non-operating results ^{note (i)}		283	(364)	(81)	(566)
Profit (loss) for the year		5,671	(1,000)	4,671	3,529
Non-controlling interests' share of profit		(120)	–	(120)	(85)
Profit (loss) for the year attributable to equity holders of the Company		5,551	(1,000)	4,551	3,444
Intra-group dividends and investment in operations ^{note (ii)}		(2,236)	2,236	–	–
Dividends, net of scrip dividends		–	(594)	(594)	(552)
Adjustment to non-controlling interest for Malaysia conventional life business on 1 Jan 2024		–	–	–	(1,375)
Share repurchases/buybacks ^{note (iii)}		–	(1,234)	(1,234)	(878)
Foreign exchange movements		787	(6)	781	(526)
Other equity movements ^{note (iv)}		(1,172)	1,204	32	(17)
Net increase in Group TEV equity		2,930	606	3,536	96
Group TEV equity at beginning of year		34,688	(421)	34,267	34,171
Group TEV equity at end of year		37,618	185	37,803	34,267

Contribution to Group TEV equity at end of year:
Insurance business	2	36,186	–	36,186	33,261
Asset management and other	4	653	2,271	2,924	2,348
Provision for future central corporate expenditure		–	(2,086)	(2,086)	(2,078)
Group TEV		36,839	185	37,024	33,531
Goodwill attributable to equity holders		779	–	779	736
Group TEV equity at end of year		37,618	185	37,803	34,267


	356 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Movement in Group TEV equity continued


	2025
Group TEV equity per share (in cents) ^{note (v)}	Insurance and asset management operations	Other (central) operations	Group total
At end of year
Based on Group TEV (ie excluding goodwill attributable to equity holders)	1,446¢	7¢	1,453¢
Based on Group TEV equity at end of year	1,476¢	7¢	1,483¢
At beginning of year
Based on Group TEV (ie excluding goodwill attributable to equity holders)	1,278¢	(16)¢	1,262¢
Based on Group TEV equity at beginning of year	1,305¢	(16)¢	1,289¢


	2025	2024
TEV basis basic earnings per share (in cents) ^{note (vi)}	Basic earnings per share	Basic earnings per share
Based on operating profit	178.5¢	146.2¢
Based on profit for the year	176.4¢	126.9¢

Notes

(i) The classification of the TEV profit or loss between operating and non-operating results is described in note 6.2. In 2025, the non-operating results of the Group include

the gain arising from the sale of a portion of the Group's interest in ICICI Prudential Asset Management Company Limited during the company's IPO. The non-operating

results for the insurance business operations is discussed further in note 2(d).

(ii) Intra-group dividends represent dividends that have been paid in the year. Investment in operations reflects movements in share capital.

(iii) Further details on the share buyback/repurchase by the Company are provided in note C8 of IFRS consolidated financial statements.

(iv) Other movements include reserve movements in respect of intra-group transfers between operations that have no overall effect on the Group’s shareholders’ equity,

transactions relating to non-controlling interests, share-based payments, treasury shares, and new share capital subscribed.

(v) Based on the number of issued shares at 31 December 2025 of 2,548 million shares (31 December 2024: 2,658 million shares).

(vi) Based on weighted average number of issued shares in 2025 of 2,580 million shares (31 December 2024: 2,715 million shares), excluding those held in employee share

trusts.


	357 Prudential plc Annual Report 2025

Movement in Group free surplus

Operating free surplus generation is the financial metric we use to measure the internal cash generation of our business operations and for our

life operations is generally based on (with adjustments as discussed below) the capital regimes that apply locally in the various jurisdictions in

which the Group operates. It represents amounts emerging from the in-force business during the year, net of amounts reinvested in writing new

business. For asset management businesses, it equates to post-tax adjusted operating profit for the year. For insurance business, free surplus is

generally based on (with adjustments including recognition of certain intangibles and other assets that may be inadmissible on a regulatory

basis) the excess of the regulatory basis net assets (TEV total net worth) over the TEV capital required to support the covered business.

Adjustments are also made to enable free surplus to be a better measure of shareholders' resources available for distribution. For shareholder-

backed businesses, the level of TEV required capital has generally been based on the Group Prescribed Capital Requirements (GPCR) used in our

GWS (Group-wide Supervision) as explained in note 6.1(e).

For asset management and other non-insurance business operations (including the Group's central operations), free surplus is taken to be IFRS

shareholders' equity, net of goodwill attributable to shareholders, with central Group debt recorded as free surplus to the extent that it is

classified as capital resources under the Group's capital regime.


		2025 $m			2024 $m
	Note	Insurance and asset management operations	Other (central) operations	Group total	Group total
Expected transfer from in-force business		2,731	–	2,731	2,391
Expected return on existing free surplus		298	–	298	288
Changes in operating assumptions and experience variances		(275)	–	(275)	(288)
Operating free surplus generated from in-force insurance business	2	2,754	–	2,754	2,391
Asset management business		305	–	305	275
Operating free surplus generated from in-force insurance and asset management businesses		3,059	–	3,059	2,666
Investment in new business ^{note (i)}	2	(713)	(60)	(773)	(744)
		2,346	(60)	2,286	1,922
Other expenditure		–	(446)	(446)	(361)
Restructuring costs		(43)	(122)	(165)	(197)
Operating free surplus generated		2,303	(628)	1,675	1,364
Non-operating free surplus generated ^{note (ii)}		657	(204)	453	323
Free surplus generated for the year		2,960	(832)	2,128	1,687
Non-controlling interests' share of free surplus generated		(23)	–	(23)	(33)
Free surplus generated for the year attributable to equity holders of the Company		2,937	(832)	2,105	1,654
Net cash flows paid to parent company ^{note (iii)}		(2,137)	2,137	–	–
Dividends, net of scrip dividends		–	(594)	(594)	(552)
Share repurchases/buybacks		–	(1,234)	(1,234)	(878)
Issuance of subordinated debt, net of costs		–	462	462	–
Foreign exchange movements		174	(3)	171	(141)
Other equity movements		(1,271)	1,303	32	(19)
Net (decrease) increase in free surplus		(297)	1,239	942	64
Balance at beginning of year		7,302	5,056	12,358	12,455
Adjustment to non-controlling interest for Malaysia conventional life business on 1 Jan 2024		–	–	–	(161)
Balance at end of year		7,005	6,295	13,300	12,358

Representing:
Free surplus excluding distribution rights and other intangibles		5,909	3,499	9,408	8,604
Distribution rights and other intangibles		1,096	2,796	3,892	3,754
Balance at end of year		7,005	6,295	13,300	12,358


	358 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Movement in Group free surplus continued


		2025 $m			2024 $m
Contribution to Group free surplus at end of year:	Note	Insurance and asset management operations	Other (central) operations	Group total	Group total
Insurance business	2	6,352	–	6,352	6,611
Asset management and other businesses		653	6,295	6,948	5,747
Total at end of year		7,005	6,295	13,300	12,358

Notes

(i) Free surplus invested in new business primarily represents acquisition costs and amounts set aside for required capital.

(ii) Non-operating free surplus generated for other (central) operations represents the post-tax IFRS basis short-term fluctuations in investment returns, the movement in the

mark-to-market value adjustment on core structural borrowings that did not meet the qualifying conditions as set out in the Insurance (Group Capital) Rules and the gain

or loss on corporate transactions, if any, undertaken in the period.

(iii) Net cash flows to parent company reflect the cash remittances as included in the holding company cash flow at transaction rates. The difference to the intra-group

dividends and investment in operations in the movement in Group TEV equity primarily relates to intra-group loans, foreign exchange movements, timing differences and

other non-cash items.


	359 Prudential plc Annual Report 2025

Notes on the TEV basis results

1 Analysis of new business profit and TEV for insurance business operations

Throughout this section we would note the following:

(i) New business in Mainland China is included at Prudential's 50 per cent interest in the life joint venture;

(ii) Within Growth markets and other, new business in India is included at Prudential's 22 per cent interest in the associate; and

(iii) The Malaysia segment contains 100 per cent of the Conventional business and the Group’s share of the Takaful joint venture.

APE sales are an indicative volume measure of transactions undertaken in the reporting period that have the potential to generate profit for

shareholders. The amounts shown are not, and are not intended to be, reflective of revenue recorded in the Group IFRS condensed consolidated

income statement.


	2025
	New business profit (NBP)	Annual premium equivalent (APE)	Present value of new business premiums (PVNBP)	New business margin on APE	New business margin on PVNBP	Closing TEV
	$m	$m	$m	%	%	$m
Hong Kong	1,221	2,221	11,738	55%	10%	14,460
Indonesia	118	258	1,055	46%	11%	1,350
Mainland China (Prudential’s share)	282	621	2,122	45%	13%	3,238
Malaysia	118	436	1,863	27%	6%	3,861
Singapore	436	938	6,145	46%	7%	7,102
Growth markets and other	667	2,187	9,002	30%	7%	7,842
Non-controlling interests' share of embedded value						(1,667)
Total insurance business	2,842	6,661	31,925	43%	9%	36,186
Less central costs allocated to new business	(60)
Total Group insurance business	2,782	6,661	31,925	42%	9%


	2024 AER
	New business profit (NBP)	Annual premium equivalent (APE)	Present value of new business premiums (PVNBP)	New business margin on APE	New business margin on PVNBP	Closing TEV
	$m	$m	$m	%	%	$m
Hong Kong	1,091	2,063	10,865	53%	10%	13,876
Indonesia	110	262	1,068	42%	10%	1,256
Mainland China (Prudential’s share)	221	464	1,530	48%	14%	2,860
Malaysia	105	406	1,731	26%	6%	3,254
Singapore	419	870	5,442	48%	8%	6,264
Growth markets and other	580	2,137	8,398	27%	7%	7,336
Non-controlling interests' share of embedded value						(1,585)
Total insurance business	2,526	6,202	29,034	41%	9%	33,261
Less central costs allocated to new business	(62)
Total Group insurance business	2,464	6,202	29,034	40%	8%


	360 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued


	2024 CER
	New business profit (NBP)	Annual premium equivalent (APE)	Present value of new business premiums (PVNBP)	New business margin on APE	New business margin on PVNBP	Closing TEV
	$m	$m	$m	%	%	$m
Hong Kong	1,092	2,065	10,875	53%	10%	13,848
Indonesia	106	252	1,028	42%	10%	1,212
Mainland China (Prudential’s share)	222	464	1,532	48%	14%	2,987
Malaysia	112	434	1,850	26%	6%	3,586
Singapore	429	890	5,566	48%	8%	6,645
Growth markets and other	596	2,184	8,549	27%	7%	7,466
Non-controlling interests' share of embedded value						(1,746)
Total insurance business	2,557	6,289	29,400	41%	9%	33,998
Less central costs allocated to new business	(62)
Total Group insurance business	2,495	6,289	29,400	40%	8%

(a) Analysis of new business profit margin by quarter

New business profit (NBP), annual premium equivalent sales (APE) and new business margin can be analysed by quarter as follows:


	2025			2024 AER			2024 CER
	NBP post central costs	APE	New business margin on APE	NBP post central costs	APE	New business margin on APE	NBP post central costs	APE	New business margin on APE
	$m	$m	%	$m	$m	%	$m	$m	%
Q1	608	1,677	36%	545	1,625	34%	543	1,609	34%
Q2	652	1,610	40%	576	1,488	39%	588	1,526	39%
Q3	705	1,716	41%	616	1,527	40%	626	1,564	40%
Q4	818	1,659	49%	730	1,566	47%	740	1,590	47%
Foreign exchange adjustment	(1)	(1)	n/a	(3)	(4)	n/a	(2)	–	n/a
Total	2,782	6,661	42%	2,464	6,202	40%	2,495	6,289	40%

The above table shows NBP, APE sales and new business margin for each discrete quarter of 2025 and 2024. Each quarter is prepared based on

economic assumptions at the start of each year (including the long-term economic assumptions as set out in note 7.1) and operating

assumptions at the start of each quarter. Each quarter is shown on the basis of average exchange rates for the period concerned. The adjustment

at the end of the year (where applicable) is to move new business profit to be based on the average exchange rates for the year in line with how

the full year TEV basis results have been prepared.

(b) Movement in new business profit

The movement in new business profit from insurance business operations is analysed as follows:


	$m
2024 new business profit (AER)	2,464
Foreign exchange movements	31
2024 new business profit (CER)	2,495
Sales volume	147
Business mix, product mix and other items	140
2025 new business profit	2,782

NBP reflects the value of expected future profits from the new business sold in the year and is a measure used by Prudential to assess profitability

of the new business written. Explanations of changes in NBP are contained in the Group Strategic and operating review. Information on the

Group’s operating experience variances on the in-force business is shown in note 2.


	Single premiums		Regular premiums		APE
	2025 $m	2024 $m	2025 $m	2024 $m	2025 $m	2024 $m
Hong Kong	803	398	2,141	2,024	2,221	2,063
Indonesia	273	266	231	235	258	262
Mainland China	537	162	568	447	621	464
Malaysia	109	95	425	397	436	406
Singapore	2,494	1,404	689	730	938	870
Growth markets and other	597	628	2,126	2,074	2,187	2,137
Total	4,813	2,953	6,180	5,907	6,661	6,202


	361 Prudential plc Annual Report 2025

2 Analysis of movement in net worth and value of in-force insurance

business operations


	2025 $m					2024 $m
	Free surplus	Required capital	Net worth	Value of in- force business	Embedded value	Embedded value
				note (b)	note (a)	note (a)
Balance at beginning of year	6,611	6,410	13,021	20,240	33,261	32,474
New business contribution ^{note (b)}	(713)	886	173	2,669	2,842	2,526
Existing business – transfer to net worth	2,731	(286)	2,445	(2,445)	–	–
Expected return on existing business	298	291	589	1,958	2,547	2,366
Changes in operating assumptions, experience variances and other items ^{note (c)}	(275)	97	(178)	(85)	(263)	(399)
In-force business	2,754	102	2,856	(572)	2,284	1,967
Operating profit before restructuring costs	2,041	988	3,029	2,097	5,126	4,493
Restructuring costs	(20)	–	(20)	–	(20)	(21)
Operating profit	2,021	988	3,009	2,097	5,106	4,472
Non-operating result ^{note (d)}	(699)	429	(270)	(805)	(1,075)	(708)
Profit for the year	1,322	1,417	2,739	1,292	4,031	3,764
Non-controlling interests' share of profit	(15)	(14)	(29)	(83)	(112)	(94)
Profit for the year attributable to equity holders of the Company	1,307	1,403	2,710	1,209	3,919	3,670
Foreign exchange movements	160	63	223	509	732	(468)
Intra-group dividends and investment in operations	(2,023)	(115)	(2,138)	115	(2,023)	(1,177)
Adjustment to non-controlling interest for Malaysia conventional life business on 1 Jan 2024	–	–	–	–	–	(1,404)
Other equity movements ^{note (e)}	297	–	297	–	297	166
Balance at end of year	6,352	7,761	14,113	22,073	36,186	33,261

(a) Total embedded value

The total embedded value for insurance business operations at the end of each year, excluding goodwill attributable to equity holders, can be

analysed further as follows:


	31 Dec 2025 $m	31 Dec 2024 $m
Free surplus	6,352	6,611
Required capital	7,761	6,410
Net worth	14,113	13,021
Value of in-force business before deduction of cost of capital	23,094	21,308
Cost of capital	(1,021)	(1,068)
Net value of in-force business	22,073	20,240
Embedded value	36,186	33,261

(b) Value of in-force business and new business profit split by product type

The value of in-force business (VIF) and new business profit (NBP) are analysed by product type as follows:


	2025 %		2024 %
Product	VIF	NBP	VIF	NBP
Health & protection	46	36	46	40
Participating (Shareholder-backed)	7	28	5	29
Participating	28	15	29	11
Non-participating	5	14	5	15
Linked	14	7	15	5
Total	100	100	100	100

Overall, the total impact of operating assumption changes, experience variances and other items in 2025 is $(263) million (2024: $(399) million),

comprising changes in operating assumptions of $8 million (2024: $(45) million) and experience variances and other items of $(271) million

(2024: $(354) million). Included in the $(271) million is $(230) million (2024: $(175) million) that was invested in building capabilities in the

period.


	362 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued

(d) Non-operating results

The non-operating result each period comprises short-term fluctuations caused by changes in interest rates and other market movements, the

effect of changes in economic assumptions and the impact of corporate transactions undertaken, if any, in the period.

The 2025 non-operating result largely reflects the impact of a reduction in interest rates across many of our Asian markets with a consequential

reduction in the investment return assumptions (which trend from current to long-term assumptions over time) with no change in the long-term

discount rate to offset. It also reflects derisking activity in Mainland China. The 2024 non-operating result reflected interest rate rises in many

Asian markets offset by the effects of a reduction in the long-term risk-free rate for Mainland China by 50 bps (which impacted fund earned

rates and the risk discount rate).

(e) Other equity movements

Other equity movements include reserve movements in respect of intra-group transfers between operations that have no overall effect on the

Group’s TEV equity and transactions relating to non-controlling interests.

3 Sensitivity of results for insurance business operations to alternative

assumptions

(a) Sensitivity analysis – economic assumptions

The tables below show the sensitivity of the new business profit and the embedded value for insurance business operations to:

– 1 per cent and 2 per cent increases in interest rates and 0.5 per cent decrease in interest rates impacting both long-term and current interest

rates used in determining TEV values. This allows for consequential changes in the assumed investment returns for all asset classes, market

values of fixed interest assets, local statutory reserves, capital requirements and risk discount rates;

– 1 per cent fall in equity and property yields and risk discount rates;

– 1 per cent and 2 per cent increases in the risk discount rates via a change to the risk premium;

– For embedded value only, 20 per cent fall in the market value of equity and property assets (with no impact on assumed investment returns);

and

– 5 per cent increase and decrease in foreign exchange rates.

The sensitivities shown below are for the impact of instantaneous changes on the embedded value of insurance business operations and include

the combined effect on the value of in-force business and net assets (including derivatives within the insurance operations) held at the valuation

dates indicated. The results only allow for limited management actions, such as repricing and changes to future policyholder bonuses, where

applicable. If such economic conditions persisted, the financial impacts may differ to the instantaneous impacts shown below. In this case,

management could also take additional actions to help mitigate the impact of these stresses. No change in the mix of the asset portfolio held at

the valuation date is assumed when calculating sensitivities, while changes in the market value of those assets are recognised. The sensitivity

impacts are expected to be non-linear. To aid understanding of this non-linearity, impacts of both a 1 per cent and 2 per cent increase to interest

rates and risk discount rates are shown.

The sensitivities shown below are for illustrative purposes and, in reality, the impacts may be different. In the event that the illustrated changes in

market conditions occur, the effect would be captured in non-operating results. For in-force business, the impact of the market sensitivities below

is calculated by reference to end of year economic assumptions, whereas new business impacts are with reference to beginning of year economic

assumptions.


New business profit from insurance business	2025 $m	2024 $m
Base value (before central costs)	2,842	2,526
Impact from alternative economic assumptions:
Interest rates – 2% increase	(78)	(59)
Interest rates – 1% increase	(49)	(28)
Interest rates – 0.5% decrease	31	17
Equity and property returns and risk discount rates – 1% decrease	355	283
Risk discount rates – 2% increase	(634)	(565)
Risk discount rates – 1% increase	(352)	(311)
Foreign exchange rates – 5% increase	(77)	(68)
Foreign exchange rates – 5% decrease	85	75

New business profit sensitivities vary with changes in business mix and APE sales volumes.


	363 Prudential plc Annual Report 2025


Embedded value of insurance business	31 Dec 2025 $m	31 Dec 2024 $m
Base value*	36,186	33,261
Impact from alternative economic assumptions:
Interest rates – 2% increase	(4,225)	(3,294)
Interest rates – 1% increase	(2,234)	(1,682)
Interest rates – 0.5% decrease	1,303	971
Equity/property market values – 20% fall	(1,852)	(1,684)
Equity and property returns and risk discount rates – 1% decrease	2,136	1,914
Risk discount rates – 2% increase	(4,989)	(4,778)
Risk discount rates – 1% increase	(2,757)	(2,637)
Foreign exchange rates – 5% increase	(1,050)	(921)
Foreign exchange rates – 5% decrease	1,160	1,018

* Embedded value sensitivities include Africa operations at base value. In the context of the Group, Africa’s results are not materially impacted by the above sensitivities.

In order to illustrate the impact of varying specific economic assumptions, all other assumptions are held constant in the sensitivities above and,

therefore, the actual changes in embedded value were these economic effects to materialise may differ from the sensitivities shown.

(b) Sensitivity analysis – non-economic assumptions

The tables below show the sensitivity of the new business profit and the embedded value for insurance business operations to the following

changes to the relevant operating assumptions:

– 10 per cent proportionate decrease in maintenance expenses (for example, a 10 per cent sensitivity on a base assumption of $10 per annum

would represent an expense assumption of $9 per annum);

– 10 per cent proportionate decrease in lapse rates (for example, a 10 per cent sensitivity on a base assumption of 5.0 per cent would represent

a lapse rate of 4.5 per cent per annum); and

– 10 per cent proportionate decrease in base mortality (ie increased longevity) and morbidity rates.

Changes in operating assumptions are reported in operating profit.

New business profit from insurance business


	2025 $m	2024 $m
New business profit (before central costs)	2,842	2,526
Maintenance expenses – 10% decrease	47	51
Lapse rates – 10% decrease	143	131
Mortality and morbidity – 10% decrease	230	229


Embedded value of insurance business
	31 Dec 2025 $m	31 Dec 2024 $m
Embedded value	36,186	33,261
Maintenance expenses – 10% decrease	357	313
Lapse rates – 10% decrease	1,067	942
Mortality and morbidity – 10% decrease	2,432	2,100

4 TEV results for other (central) operations

TEV results for the change in allowance for corporate expenditure and other central costs incurred in the year comprises the movement in the

provision for recurring central head office expenditure that is not related to the acquisition of new business together with the post-tax IFRS

results for other central items such as interest costs on core structural borrowings and other central net investment income and other items. It

also includes the actual head office expenditure (before restructuring costs) in the year on an IFRS net-of-tax basis, which is either allocated to

new business (if it relates to acquisition costs) or in-force otherwise. In-force costs are covered by the provision.

Certain costs incurred within the head office functions are recharged to the insurance business operations and recorded within the results for

those operations. The assumed future expenses within the value of in-force business for insurance business operations generally allow for

amounts expected to be recharged by the head office functions on a recurring basis. The provision for future central corporate expenditure and

the actual expenditure in the year excludes such costs.


	364 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued

The allowance for the future costs of internal asset management services within the TEV results for insurance business operations excludes the

projected future profits generated by any non-insurance entities within the Group in providing those services (ie the TEV for insurance business

operations includes the projected future profit or loss from asset management and service companies that support the Group’s covered

insurance businesses). The results of the Group’s asset management operations include the current period profit from the management of both

internal and external funds, consistent with their presentation within the Group’s IFRS basis reporting. An adjustment is accordingly made to

Group TEV operating profit, within the results for other (central) operations, to deduct the expected profit anticipated to arise in the current

period in the opening value of in-force business from internal asset management services, such that Group TEV operating profit includes the

actual profit earned in respect of the management of these assets. Under IFRS 17, a similar adjustment is made to eliminate the intra-group

profit within the results of central operations.

The Group TEV equity for other operations is taken to be IFRS shareholders’ equity, with central Group debt shown on a market value basis,

offset by the provision for future central corporate expenditure. Free surplus for other operations is taken to be IFRS shareholders’ equity, net of

any goodwill attributable to equity holders, with central Group debt recorded as free surplus to the extent that it is classified as capital resources

under the Group’s capital regime. Under the GWS Framework, debt instruments issued at the date of designation which met the transitional

conditions set by the Hong Kong IA are included as GWS eligible group capital resources. In addition, debt issued since the date of designation

which met the qualifying conditions as set out in the Insurance (Group Capital) Rules are also included as GWS eligible group capital resources.

Shareholders’ equity for other (central) operations can be compared across metrics as shown in the table below.


	31 Dec 2025 $m	31 Dec 2024 $m
IFRS shareholders’ equity	2,214	1,426
Mark-to-market value adjustment on central borrowings ^{note 5}	57	231
Provision for future central corporate expenditure	(2,086)	(2,078)
Group TEV equity	185	(421)

IFRS shareholders’ equity	2,214	1,426
Mark-to-market value adjustment on central borrowings	57	231
Debt instruments treated as capital resources	4,024	3,399
Free surplus at end of year	6,295	5,056

5 Net core structural borrowings of shareholder-financed businesses


	31 Dec 2025 $m			31 Dec 2024 $m
	IFRS basis	Mark-to- market value adjustment	TEV basis at market value	IFRS basis	Mark-to- market value adjustment	TEV basis at market value
	note (ii)	note (iii)		note (ii)	note (iii)
Core structural borrowings:
Subordinated debt	2,795	(35)	2,760	2,289	(141)	2,148
Senior debt	1,664	(22)	1,642	1,636	(90)	1,546
	4,459	(57)	4,402	3,925	(231)	3,694
Holding company cash and short-term investments ^{note (i)}	(4,282)	–	(4,282)	(2,916)	–	(2,916)
Net core structural borrowings of shareholder-financed businesses	177	(57)	120	1,009	(231)	778

Notes

(i) Holding company includes centrally managed Group holding companies and service companies.

(ii) As recorded in note C5.1 to the IFRS consolidated financial statements. The movement in the value of core structural borrowings includes issuance in the year and foreign

exchange effects for non-USD denominated debts.

(iii) The movement in the mark-to-market value adjustment can be analysed as follows:


	2025 $m	2024 $m
Mark-to-market value adjustment at beginning of year	(231)	(274)
Charge to the income statement (including foreign exchange effects)	173	43
Effect of foreign exchange movements included in reserves	1	–
Mark-to-market value adjustment at end of year	(57)	(231)


	365 Prudential plc Annual Report 2025

6 Methodology and accounting presentation

6.1 Methodology

The following sets out the Group’s methodology for preparing the TEV basis results. Key features of the Group's methodology include:

– The use of long-term risk-free rates when setting investment return assumptions. For in-force business investment returns generally trend from

current to long-term assumptions;

– Using the same long-term risk-free rates to set the risk discount rates which also includes a risk margin to cover non-diversifiable non-market

risk as well as market risk, including an implicit allowance for the time value of options and guarantees; and

– To reduce TEV for a projection of recurring central head office expenditure and to reduce TEV new business profit for that proportion of

recurring actual central head office expenditure considered to be acquisition in nature.

In addition, to facilitate discrete quarterly reporting new business profit is determined based on economic assumptions at the start of the year

and on operating assumptions at the start of the quarter being reported. More information on the new business results by quarter are set out in

note 1(a). The 2025 TEV basis results have been prepared using the long-term assumptions set out in note 7.1.

(a) In-scope business

An embedded value (EV) is calculated for each of the Group’s in-scope insurance business (including the Group’s investments in joint venture

and associate insurance business operations). It represents the net worth and the present value of future profits attributable to shareholders

from insurance contracts in-force at the end of the reporting year.

The TEV results for the Group’s in-scope insurance business are then combined with the post-tax IFRS results of the Group’s asset management

and other business operations. A provision for future central corporate expenditure that is not recharged or allocated to the insurance business

operations is determined and reduces Group TEV equity accordingly. An adjustment is also made to carry the Group’s core structural borrowings

at market value. The TEV for the life insurance business incorporates the projected margins of attaching internal asset management, as

described in note (g) below.

The TEV principles below are applicable to all of the Group’s businesses with the exception of its associate ICICI Prudential, which uses the

Indian Embedded Value methodology as issued by the Institute of Actuaries of India, consistent with local practice in India. Certain smaller

immaterial subsidiaries have also continued to apply ‘simplified’ EEV principles issued by the European Insurance CFO Forum in 2016.

(b) Valuation of in-force and new business

The TEV basis results are prepared incorporating best estimate assumptions, about all relevant factors including, persistency, mortality, morbidity

and expenses, as described in note 7.2. These assumptions, as well as a long-term view of future investment returns, are used to project future

cash flows. The present value of the projected future cash flows is then calculated using a discount rate, which reflects risks associated with the

cash flows that are not otherwise allowed for, such as implicit allowance for the time value of options and guarantees. Further information on

how the risk discount rate has been set is included in item (h) below.

The total profit that emerges over the lifetime of an individual contract as calculated under the TEV basis is the same as that calculated under

the IFRS basis. As IFRS defers all day one profit into a contractual service margin which it releases in line with service provision, under the TEV

methodology profit emergence is more advanced, more closely aligning the timing of the recognition of profit with the efforts and risks of

current management actions, particularly with regard to business sold during the year.

New business

New business premiums reflect those premiums attaching to the in-scope insurance business, including premiums for contracts classified as

investment contracts under IFRS 17. New business premiums for regular premium products are shown on an annualised basis in the Group’s new

business sales reporting.

New business profitability is a key metric for the Group’s management of the development of the business. NBP represents the value created by

new business sold in the period determined by applying operating and economic assumptions that apply at the beginning of the quarter in which

new business is reported and at the beginning of the year respectively. In addition, new business margins are shown by reference to APE and

PVNBP. These margins are calculated as the percentage of the value of NBP to APE and PVNBP. APE is calculated as the aggregate of annualised

regular premiums on new business written in the period and one-tenth of single premiums. PVNBP is calculated as the aggregate of single

premiums and the present value of expected future premiums from regular premium new business, allowing for lapses and the other

assumptions made in determining the NBP.

New business profit is determined using long-term investment return assumptions, with the exception of certain business (principally single

premium business) which trends from current investment returns to long-term investment returns over time. The risk discount rates applied to

new business reflect the risks attaching to business sold in the period and may differ to those of the opening in-force business.

A charge is deducted from the embedded value for the cost of locked-in required capital supporting the Group’s insurance business. The cost is

the difference between the nominal value of the capital held and the discounted value of the projected releases of this capital, allowing for post-

tax investment earnings on the capital.

The TEV results are affected by the movement in this cost from period to period, which comprises a charge against new business profit and

generally a release in respect of the reduction in capital requirements for business in force as this runs off.


	366 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued

Where required capital is held within a with-profits long-term fund, the value placed on surplus assets within the fund is already adjusted to

reflect its expected release over time and so no further adjustment to the shareholder position is necessary.

(d) Investment return assumptions

Risk-free rates (RFRs) and fund earned rates (FERs) are set with reference to a long-term ‘passive’ view of the investment outlook (ie on a long-

term basis) rather than being updated at each valuation date to directly reflect changes in interest rates over the period. Equity and property

return assumptions are set in relation to the long-term return on 10-year government bonds, with allowance for the internal view of risk premium

for each currency. The Group also uses its assumed long-term, risk-free rates in calibrating risk discount rates (see (h) below). To derive investment

returns for in-force business, the Group trends from current observable rates over time to these assumed long-term, risk-free rates (passive basis),

for VIF. Whereas for NBP the Group applies long-term rates throughout, with some exceptions, for example single premium business.

(e) Level of required capital and net worth

In general, net worth and required capital are set with reference to the applicable local statutory regime, with the level of required capital set

based on the GWS capital at the Group Prescribed Capital Requirement (GPCR) level. In certain circumstances where updates to the local

statutory regime are imminent (ie due to be effective within 12 months) and specific conditions are met, the net worth and required capital may

be set with reference to these prospective local statutory rules for TEV reporting. At 31 December 2025 all net worth amounts were based on

regulatory reporting effective at that date.

For shareholder-backed businesses, the level of required capital has been based on the relevant GPCR.

– For Hong Kong business, the HK RBC framework requires liabilities to be valued on a best estimate basis and capital requirements to be risk

based. Adjustments are made to TEV free surplus to better reflect how the business is managed. For example, TEV free surplus excludes

regulatory surplus that arises where HK RBC technical provisions are lower than policyholder asset shares. In addition, for participating

business, the HK RBC regime recognises the value of future shareholder transfers on an economic basis as available capital with an associated

required capital. Within TEV, the shareholder value of participating business continues to be recognised as VIF with no recognition within free

surplus and no associated required capital.

– For Mainland China, the level of required capital follows the approach for embedded value reporting issued by the China Association of

Actuaries (CAA) introduced when the C-ROSS regime became effective. The CAA started a project to assess whether any changes are required

to the embedded value guidance in Mainland China given changes in rules, regulations and the external market environment since the

standard was first issued. To date, no outcomes have been proposed by the CAA and accordingly no changes have been made by Prudential to

its approach to embedded value reporting for Mainland China.

– For Singapore life operations, the level of net worth and required capital is based on the Tier 1 capital position under the risk-based capital

framework (RBC2), which removes certain negative reserves permitted to be recognised in the full RBC2 regulatory position applicable to the

Group’s GWS capital position, in order to better reflect free surplus and its generation.

(f) With-profits business and the treatment of the estate

For the Group’s relevant operations, the proportion of surplus allocated to shareholders from the with-profits funds has been based on the

applicable profit distribution between shareholders and policyholders. The TEV methodology includes the value attributed to the shareholders’

interest in the residual estate of the in-force with-profits business. In any scenarios where the total assets of the life fund are insufficient to meet

policyholder claims in full, the excess cost is fully attributed to shareholders. Adjustments are also made to reflect any capital requirements for

with-profits business in excess of the capital resources of the with-profits funds.

(g) Internal asset management

The insurance business TEV includes the projected future profit from asset management and service companies that support the Group’s in-

scope insurance businesses. The results of the Group’s asset management business operations include the current period profit from the

management of both internal and external funds. The TEV results for other (central) operations is adjusted to deduct the expected profit

anticipated to arise in the current period in the opening VIF from internal asset management and other services. This deduction is on a basis

consistent with that used for projecting the results for in-scope insurance business. Accordingly, Group operating profit includes the actual profit

earned in respect of the management of these assets.

(h) Allowance for risk and risk discount rates

Under TEV, discount rates used to determine the present value of expected future cash flows are set by reference to risk-free rates plus a risk

premium.

The risk-free rates are largely based on a long-term passive view of local government bond yields.

The risk premium reflects any non-diversifiable risk associated with the emergence of distributable earnings that is not allowed for elsewhere in

the valuation as well as market risk, including an implicit allowance for the time value of options and guarantees. The risk premium is set to be at

least equal to the equity risk premium relevant to each currency within each business unit and for smaller entities takes into consideration the

stage of development of the business. The equity risk premium is used irrespective of the strategic asset allocation of the business, which, as well

as equities, will include government and corporate bonds, with the higher allowance implicitly covering credit risk.

The risk discount rates applied to the in-force business at 31 December 2025 are set out in note 7.1.


	367 Prudential plc Annual Report 2025

(i) Allowance for corporate expenditure

A deduction has been made from Group TEV equity for the present value of future unallocated central corporate expenditure, representing the

recurring expenses incurred by the central head office which are not recharged to the business units. These recurring expenses exclude interest

costs on core borrowings, net investment return and similar items.

This provision is determined by allocating recurring central corporate expenditure between acquisition and maintenance expenses based on the

underlying activity of the functions giving rise to the expenditure. Acquisition costs are deducted from new business profit.

Maintenance costs are projected forward for the next 20 years, taking account of the Group’s three year business plan with the present value

being deducted from Group TEV. The present value of the corporate expenditure is derived with reference to the Hong Kong risk discount rate.

(j) Foreign currency translation

Foreign currency profits and losses have been translated at average exchange rates for the period. Foreign currency transactions are translated

at the spot rate prevailing at the date of the transactions. Foreign currency assets and liabilities have been translated at closing exchange rates.

The principal exchange rates are shown in note A1 of the Group IFRS consolidated financial statements.

(k) Taxation

In determining the post-tax profit for the period for covered business, the overall tax rate includes the impact of tax effects determined on a local

regulatory basis. Tax payments and receipts included in the projected future cash flows to determine the value of in-force business are calculated

referencing tax rates that have been announced and substantively enacted by the end of the reporting period.

The OECD Pillar Two tax rules, which include a global minimum tax and domestic minimum tax rate of 15 per cent, became effective for the

whole Group in 2025, following enactment in Hong Kong. These tax rules are not expected to have a material impact on the Group TEV in

periods where actual investment returns are in line with or below the expected long-term rates of return.

6.2 Accounting presentation

(a) Analysis of post-tax profit

To the extent applicable, the presentation of the TEV profit or loss for the period is consistent with the classification between operating and non-

operating results that the Group applies for the analysis of IFRS results. Operating results are determined using investment returns as described in

note (b) below and incorporate new business profit (6.1(b)), expected return on existing business (6.2(c)), routine review of operating

assumptions (6.2(d)) and actual experience variation from operating assumptions in the period (6.2(e)).

In addition, operating results include the effect of changes in tax legislation, unless these changes are one-off and structural in nature, or

primarily affect the level of projected investment returns, in which case they are reflected as a non-operating result, which comprises fluctuations

caused by changes in interest rates and other market movements in the period, the effect of changes in long-term economic assumptions, mark-

to-market movements on corporate debt and the impact of corporate transactions, if any, undertaken in the period.

The Group believes that operating profit, as adjusted for these non-operating items, better reflects underlying performance.

(b) Investment returns included in operating profit

The investment returns included in operating profit are based on assumptions applying at the beginning of the year with any changes in these

investment return assumptions captured in non-operating profit. These expected returns are generally calculated by reference to the asset mix of

the opening portfolio.

Expected return on existing business comprises the expected unwind of discounting effects on the opening value of in-force business and

required capital and the expected return on existing free surplus. The unwind of discount and the expected return on existing free surplus are

determined based on economic assumptions at the start of the year but allow for changes in operating assumptions in the period (ie opening

value is adjusted for the effect of changes in operating assumptions during the period). The expected return on net worth is based on long-term

investment returns.

(d) Effect of changes in operating assumptions

Operating profit includes the effect of changes to operating assumptions on the value of in-force business at the beginning of the reporting

period. For presentational purposes the effect of changes is delineated to show the effect on the opening value of in-force business as operating

assumption changes, with the experience variances subsequently being determined by reference to the assumptions at the end of the reporting

period, as discussed below.

New business reflects operating assumptions in place at the start of the quarter in which the new business is recorded. Operating profit includes

the effect of changes to these operating assumptions on the reported new business profit for the period.

(e) Operating experience variances

Operating profit includes the effect of experience variances relative to operating assumptions, such as persistency, mortality, morbidity, expenses

and other factors, which are calculated with reference to the assumptions at the end of the reporting period.

(f) Effect of changes in economic assumptions

Movements in the value of in-force business caused by changes in economic assumptions are recorded in non-operating results.


	368 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued

7 Assumptions

7.1 Principal in-force economic assumptions

The TEV results for the Group’s in-force business are determined using economic assumptions where both the risk discount rates and long-term

expected rates of return on investments are set with reference to the Group’s view of long-term risk-free rates of return by currency. These long-

term risk-free rates are the same as those used in our determination of adjusted operating profit in IFRS. The framework used to derive these

assesses historical data, forward looking economic views around real rates, inflation and outlooks from central banks. Risk discount rates are

determined by adding a count ry and currency spe cific risk premium to the risk-free rate to make allowance for the risk profile of the business. The

risk premium is at least as large as the equity risk premium for the relevant currency. Long-term expected returns on equity and property assets

and corporate bonds are derived by adding a risk premium to the risk-free rate based on the Group’s long-term view. Additionally, when

determining TEV, current risk-free rates, tre nd to the long-term risk-free rates over time when projecting investment returns.


	31 Dec 2025 %

In-force assumptions ^{note (iii)}	Current market 10- year government bond yield	Long-term 10-year government bond yield	Risk premium	In-force risk discount rate	Equity risk premium (geometric)
Hong Kong ^{note (i)}	4.3	3.2	4.5	7.7	3.5
Indonesia	6.4	6.3	6.3	12.6	4.3
Mainland China	1.9	2.9	6.0	8.9	4.0
Malaysia	3.7	3.9	4.0	7.9	3.5
Philippines	6.3	5.8	6.3	12.1	4.3
Singapore	2.2	2.7	4.0	6.7	3.5
Taiwan ^{note (i)}	4.3	3.2	3.5	6.7	3.5
Thailand	1.7	4.6	4.3	8.9	4.3
Vietnam	3.8	5.8	5.3	11.1	4.3
Total weighted average ^{note (ii)}	3.7	3.6	4.4	8.0	3.6


	31 Dec 2024 %

In-force assumptions ^{note (iii)}	Current market 10-year government bond yield	Long-term 10-year government bond yield	Risk premium	In-force risk discount rate	Equity risk premium (geometric)
Hong Kong ^{note (i)}	4.7	3.2	4.5	7.7	3.5
Indonesia	7.2	6.3	6.3	12.6	4.3
Mainland China	1.7	2.9	6.0	8.9	4.0
Malaysia	3.9	3.9	4.0	7.9	3.5
Philippines	6.2	5.8	6.3	12.1	4.3
Singapore	2.9	2.7	4.0	6.7	3.5
Taiwan ^{note (i)}	4.7	3.2	3.5	6.7	3.5
Thailand	2.3	4.6	4.3	8.9	4.3
Vietnam	2.8	5.8	5.3	11.1	4.3
Total weighted average ^{note (ii)}	4.1	3.7	4.4	8.1	3.6

Notes

(i) For Hong Kong and Taiwan, the assumptions shown are for US dollar denominated business. For other businesses, the assumptions shown are for local currency

denominated business.

(ii) Total weighted average assumptions have been determined by weighting each business’s assumptions by reference to the closing net value of all in-force in-scope

businesses.

(iii) Expected long-term inflation assumptions at 31 December 2025 and 2024 range from 1.5 per cent to 4.3 per cent.

7.2 Operating assumptions

Best estimate assumptions are used for projecting future cash flows, where best estimate is defined as the mean of the distribution of future

possible outcomes. The assumptions are reviewed actively and changes are made when evidence exists that material changes in future

experience are reasonably certain. Where experience is expected to be adverse over the short term, a provision may be established.

(a) Demographic assumptions

Persistency, mortality and morbidity assumptions are based on an analysis of recent experience and reflect expected future experience. When

projecting future cash flows for medical reimbursement business that is repriced annually, explicit allowance is made for expected future

premium inflation and separately for future medical claims inflation.


	369 Prudential plc Annual Report 2025

(b) Expense assumptions

Expense levels, including those of the service companies that support the Group’s insurance business, are based on internal expense analysis and

are appropriately allocated to acquisition of new business and renewal of in-force business. For mature business, it is Prudential’s policy not to

take credit for future cost reduction programmes until the actions to achieve the savings have been delivered. Expense overruns are reported

where these are expected to be short-lived, including businesses that are growing rapidly or are sub-scale.

Expenses comprise costs borne directly and costs recharged or allocated from the Group head office functions that are attributable to the

insurance business. The assumed future expenses for the insurance business allow for amounts expected to be recharged or allocated by the

head office functions.

Corporate expenditure included within the TEV results of other (central) operations, comprises expenditure of the Group head office functions

that is not recharged or allocated to the insurance or asset management business operations, primarily for corporate-related activities together

with restructuring costs incurred across the Group. Further explanation of how central costs are allowed for within TEV are discussed in note 4 and

6.1 (i).

The assumed long-term effective tax rates for operations reflect the expected incidence of taxable profit or loss in the projected future cash

flows as explained in note 6.1(k). The local standard corporate tax rates applicable are as follows:


	%
Hong Kong	16.5% on 5% of premium income
Indonesia	22.0
Mainland China	25.0
Malaysia	24.0
Philippines	25.0
Singapore	17.0
Taiwan	20.0
Thailand	20.0
Vietnam	20.0

8 Reconciliation of expected transfer of value of in-force business and

required capital to free surplus

The table below shows how the value of in-force business (VIF) and the associated required capital for insurance business operations are

projected as emerging into free surplus over the next 20 years as estimated at the end of 31 December 2025. The modelled cash flows use the

same methodology underpinning the Group’s TEV reporting and so are subject to the same assumptions and sensitivities used to prepare our

2025 TEV results. These include 100 per cent of the Group's Malaysia Conventional Life business.


	2025	2026	2027	2028	2029	2030	2031 - 2045	Total (2025 - 2045)
	$m	$m	$m	$m	$m	$m	$m	$m
2024 expected free surplus generation for years 2025 to 2044	2,708	2,628	2,622	2,437	2,406	2,344	28,277	43,422
Less: Amounts expected to be realised in the current year	(2,708)	–	–	–	–	–	–	(2,708)
Add: Expected free surplus to be generated in year 2045 (excluding 2025 new business)	–	–	–	–	–	–	1,845	1,845
Foreign exchange differences	–	44	52	55	58	60	727	996
New business	–	450	321	312	292	284	3,510	5,169
Operating, non-operating and other movements	–	9	(15)	55	6	(12)	83	126
2025 expected free surplus generation for years 2026 to 2045	–	3,131	2,980	2,859	2,762	2,676	34,442	48,850


	370 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Notes on the TEV basis results continued

9 Other information

Ownership interest in Prudential Assurance Malaysia Berhad

The settlement reached in the Malaysian dividend dispute in July 2025 is as described in note D2 of the IFRS consolidated financial statements.

On 22 January 2026, the Group signed an agreement to acquire a further 19 per cent interest in the conventional life insurance business in

Malaysia increasing the Group’s stake from 51 per cent to 70 per cent. See note D2 of the IFRS consolidated financial statements for further

details.

Post balance sheet events

The second interim dividend for the year ended 31 December 2025 was approved by the Board of Directors after 31 December 2025, which is

described in note B5 of the IFRS consolidated financial statements.

On 6 January 2026 the Company announced the commencement of a new share buyback programme up to a maximum aggregate amount of

$1.2 billion as discussed in note D3 of the IFRS consolidated financial statements.

The increase in the ownership interest in Prudential Assurance Malaysia Berhad in January 2026 is described above.

Contingencies and related obligations

The Group is involved in various litigation and regulatory proceedings from time to time as described in note D1 of the IFRS consolidated

financial statements.


	371 Prudential plc Annual Report 2025

Statement of Directors’ responsibilities in respect of the Traditional

Embedded Value (TEV) basis supplementary information

The Directors have chosen to prepare supplementary information on a Traditional Embedded Value (TEV) basis using the methodology and

assumptions set out in the Notes on the TEV basis results (Group TEV Methodology).

In preparing the TEV supplementary information, the Directors have:

– Prepared the supplementary information in accordance with the Group TEV Methodology;

– Identified and described the business covered by the Group TEV Methodology;

– Applied the Group TEV Methodology consistently to the covered business;

– Determined assumptions on a realistic basis, having regard to past, current and expected future experience and to any relevant external data,

and then applied them consistently;

– Made estimates that are reasonable and consistent; and

– Described the basis on which business that is not covered business has been included in the supplementary information, including any material

departures from the accounting framework applicable to the Group’s financial statements.


	372 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Independent auditor’s report to Prudential plc on the Traditional

Embedded Value (TEV) basis results

Opinion

We have audited the Traditional Embedded Value (‘TEV’) Basis Results of Prudential plc (‘the Company’ and, together with its subsidiaries, ‘the

Group’) for the year ended 31 December 2025, which comprise the basis of preparation, the TEV results highlights, the movement in Group TEV

equity, the movement in Group free surplus and the related notes 1 to 9. The TEV Basis Results should be read in conjunction with the Group

financial statements.

In our opinion, the TEV Basis Results of the Group for the year ended 31 December 2025 are prepared, in all material respects, in accordance

with the basis of preparation and the methodology and assumptions as set out in notes 6 and 7 respectively.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) including ‘ISA (UK) 800 (Revised) Special

Considerations – Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks’. Our responsibilities under those

standards are further described in the Auditor’s Responsibilities for the Audit of the TEV Basis Results section of our report. We are independent

of the Company in accordance with the ethical requirements that are relevant to our audit of the TEV Basis Results in the UK, including the FRC’s

Ethical Standard, 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.

Emphasis of matter – basis of preparation and restriction on use

We draw attention to the special purpose basis of preparation together with the information in notes 6 and 7. The TEV Basis Results are prepared

to provide additional information to users of the Group financial statements. As a result, the TEV Basis Results may not be suitable for another

purpose. Our opinion is not modified in respect of this matter.

Our report is intended solely for the Company, in accordance with the terms of our engagement letter dated 21 May 2025. Our audit work has

been undertaken so that we might state to the Company those matters we have been engaged to state to it in this 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 for our audit work,

for this report, or for the opinions we have formed.

Conclusions relating to going concern

In auditing the TEV Basis Results, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the

financial statements is appropriate.

In evaluating the Directors’ assessment of the Group’s ability to continue to adopt the going concern basis of accounting we:

– confirmed our understanding of management’s going concern assessment process and obtained management’s assessment which covers the

period to 31 March 2027;

– assessed management’s evaluation of the liquidity and solvency position of the Group by reviewing base case and stressed liquidity and

solvency projections through the going concern period;

– evaluated management’s forecast analysis to understand the severity of the downside scenarios that would be required to occur to result in

the elimination of solvency and / or liquidity headroom and considered the actions available to management in such scenarios ;

– performed enquiries of management and those charged with governance to identify risks or events that may impact the Group’s ability to

continue as a going concern.

– assessed the appropriateness of the going concern disclosures by comparing the disclosures with management’s assessment and considering

their compliance with the relevant reporting requirements.

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 Group’s ability to continue as a going concern for a period to 31 March 2027, being at least one

year from when the TEV Basis Results are authorised for issue.

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 Group’s ability to continue as a

going concern.

Other information

The other information comprises the information included in the Annual Report, other than the TEV Basis Results and our auditor’s report

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

Our opinion on the TEV Basis Results 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 TEV

Basis Results 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 there is a material misstatement in the TEV Basis

Results 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.


	373 Prudential plc Annual Report 2025

Responsibilities of directors

Management is responsible for the preparation of the TEV Basis Results in accordance with the special purpose basis of preparation, and for such

internal control as management determines is necessary to enable the preparation of the TEV Basis Results that are free from material

misstatement, whether due to fraud or error.

In preparing the TEV Basis Results, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as

applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the

Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the TEV Basis Results

Our objectives are to obtain reasonable assurance about whether the TEV Basis Results 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 TEV Basis Results.

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 entity and management.

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

significant are the relevant laws and regulations related to elements of company law, insurance regulation and tax legislation and the financial

reporting framework. Our considerations of other laws and regulations that may have a material effect on the TEV Basis Results included

permissions and supervisory requirements of the listing authorities in the countries where the Company’s shares and debt are listed.

– We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal

and compliance matters. We also reviewed correspondence between the Company and regulatory bodies; reviewed minutes of the Board and

its Committees; and gained an understanding of the Company’s approach to governance, demonstrated by the Board’s approval of the

Company’s governance framework.

– We assessed the susceptibility of the Company’s TEV Basis Results to material misstatement, including how fraud might occur by assessing

events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk

assessment procedures included:

– Enquiring of Directors, the Audit Committee, Internal Audit and inspecting papers provided to those charged with governance as to the

policies and procedures to prevent and detect fraud, including the Group’s “whistleblowing” policies and procedures along with the

engagement with local management to identify fraud risks specific to their business units, as well as whether they have knowledge of any

actual, suspected or alleged fraud.

– Reading Board and Audit Committee minutes.

– Considering remuneration incentive schemes and performance targets for management.

We identified a fraud risk related to the selection of TEV operating assumptions given their direct impact on the Group’s embedded value, the

opportunity for management to manipulate assumptions due to the subjectivity involved and given the long-term nature of these assumptions

which are more difficult to corroborate.

– In determining the audit procedures to address the identified fraud risks, we took into account the results of our evaluation and testing of the

operating effectiveness of the group-wide fraud prevention controls. In order to address the risk of fraud specifically as it relates to the TEV

operating assumptions, we involved actuarial specialists to assist in our challenge of management. We challenged management in relation to

the selection of assumptions and the appropriateness of the rationale for any changes, the consistency of the selected assumptions across

different aspects of the financial reporting process and comparison to our understanding of the product portfolio, trends in experience,

policyholder behaviour and economic conditions and also by reference to market practice.

– To address the pervasive risk as it relates to management override, we also performed procedures including:

– Identifying journal entries based on risk criteria and comparing the identified entries to supporting documentation.

– Assessing significant accounting estimates for bias.

A further description of our responsibilities for the audit of the TEV Basis Results 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.

John Headley

for and on behalf of Ernst & Young LLP

London

17 March 2026


	374 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Additional information



376	Index to the additional unaudited financial information
399	Glossary
406	Shareholder information
410	How to contact us
411	Forward-looking statements


	375 Prudential plc Annual Report 2025


	376 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Index to the additional unaudited financial information


	377 Prudential plc Annual Report 2025

I Additional financial information

I(i) Group capital position

Prudential applies the Insurance (Group Capital) Rules set out in the Group-wide Supervision (GWS) Framework issued by the Hong Kong IA to

determine group regulatory capital requirements (both minimum and prescribed levels). 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 Group holds material participating business in Hong Kong, Singapore and Malaysia. Alongside the total

regulatory GWS capital basis, a shareholder GWS capital basis is also presented which excludes the contribution to the Group GWS eligible group

capital resources, the Group Minimum Capital Requirements (GMCR) and the Group Prescribed Capital Requirements (GPCR) from these

participating funds.

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. While the GWS shareholder capital position is a key metric for assessing regulatory

solvency, and for risk management, there are some elements of the shareholder GWS capital surplus that will only become available as cash flow

for distribution over time. The Group's free surplus metric is a better measure of the shareholder capital available for distribution and is used as

the primary metric for assessing the Group's sources and uses of capital in the Group's capital management framework, and underpinning the

Group's dividend policy. Further details are included in the Capital management section of the Financial review.

Separate from the capital management framework applied for shareholder-owned capital, the capital held in ring-fenced with-profits funds

supports policyholder investment freedom, which increases expected returns for our with-profits funds' customers. GWS policyholder capital

surplus is not available for distribution out of the ring-fenced funds other than as a defined proportion distributable to shareholders when

policyholder bonuses are declared.

Estimated GWS capital position

As at 31 December 2025, the estimated shareholder GWS capital surplus over the GPCR is $17.1 billion (31 December 2024: $15.9 billion),

representing a coverage ratio of 262 per cent (31 December 2024: 280 per cent) and the estimated total GWS capital surplus over the GPCR is

$23.1 billion (31 December 2024: $20.9 billion), representing a coverage ratio of 197 per cent (31 December 2024: 203 per cent). The estimated

Group Tier 1 capital resources are $21.4 billion with headroom over the GMCR of $14.6 billion (31 December 2024: $18.9 billion with headroom

of $13.1 billion), representing a coverage ratio of 316 per cent (31 December 2024: 325 per cent).


	31 Dec 2025			31 Dec 2024
	Shareholder	Add policyholder	Total	Shareholder	Add policyholder	Total	Change in total
		note (1)	note (2)		note (1)	note (2)	note (3)
Group capital resources ($bn)	27.6	19.3	46.9	24.8	16.3	41.1	5.8
of which: Tier 1 capital resources ($bn) ^{note (4)}	19.9	1.5	21.4	17.6	1.3	18.9	2.5

Group Minimum Capital Requirement ($bn)	6.0	0.8	6.8	5.1	0.7	5.8	1.0
Group Prescribed Capital Requirement ($bn)	10.5	13.3	23.8	8.9	11.3	20.2	3.6

GWS capital surplus over GPCR ($bn)	17.1	6.0	23.1	15.9	5.0	20.9	2.2
GWS coverage ratio over GPCR (%)	262%		197%	280%		203%	(6)%

GWS Tier 1 surplus over GMCR ($bn)			14.6			13.1	1.5
GWS Tier 1 coverage ratio over GMCR (%)			316%			325%	(9)%

Notes

(1) This allows for any associated diversification impacts between the shareholder and policyholder positions reflected in the total company results where relevant.

(2) The total company GWS coverage ratio over GPCR presented above represents the eligible group capital resources coverage ratio as set out in the GWS framework while the

total company GWS tier 1 coverage ratio over GMCR represents the tier 1 group capital coverage ratio.

(3) Refer to section on Material changes in GMCR, GPCR, tier 1 group capital and eligible group capital resources below.

(4) The classification of tiering of capital under the GWS framework reflects the different local regulatory regimes along with guidance issued by the Hong Kong IA. At

31 December 2025, total Tier 1 capital resources of $21.4 billion comprises: $27.6 billion of total shareholder capital resources; less $(4.1) billion of Prudential plc issued

subordinated and senior Tier 2 debt capital; less $(3.6) billion of local regulatory tiering classifications, which are classified as GWS Tier 2 capital resources primarily in

Singapore and Mainland China; plus $1.5 billion of Tier 1 capital resources in policyholder funds.

GWS sensitivity analysis

The estimated sensitivity of the GWS capital position (based on the GPCR) to changes in market conditions as at 31 December 2025 and

31 December 2024 are shown below, for both the shareholder and the total capital position.


	378 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued


	Shareholder
	31 Dec 2025		31 Dec 2024
Impact of market sensitivities	Surplus $bn	Coverage ratio %	Surplus $bn	Coverage ratio %
Base position	17.1	262%	15.9	280%
Impact of:
10% increase in equity markets	0.4	0%	0.2	(3)%
20% fall in equity markets	(0.7)	9%	(0.8)	5%
50 basis points reduction in interest rates	1.3	9%	1.1	10%
100 basis points increase in interest rates	(3.3)	(27)%	(2.6)	(25)%
100 basis points increase in credit spreads	(0.6)	(4)%	(0.5)	(4)%


	Total
	31 Dec 2025		31 Dec 2024
Impact of market sensitivities	Surplus $bn	Coverage ratio %	Surplus $bn	Coverage ratio %
Base position	23.1	197%	20.9	203%
Impact of:
10% increase in equity markets	1.4	1%	1.1	1%
20% fall in equity markets	(2.9)	(2)%	(2.8)	(4)%
50 basis points reduction in interest rates	1.1	4%	0.8	4%
100 basis points increase in interest rates	(3.2)	(13)%	(2.6)	(13)%
100 basis points increase in credit spreads	(1.3)	(5)%	(1.3)	(7)%

The sensitivity results assume instantaneous market movements and, hence, reflect the current investment portfolio and all consequential

impacts as at the valuation date. If the economic conditions set out in the sensitivities persisted, the financial impacts may differ to the

instantaneous impacts shown above. These sensitivity results allow for limited management actions such as changes to future policyholder

bonuses where applicable. In practice, the market movements would be expected to occur over time and rebalancing of investment portfolios

would likely be carried out to mitigate the impact of the stresses as presented above. Management could also take additional actions to help

mitigate the impact of these stresses including, but not limited to, market risk hedging, increased use of reinsurance, repricing of in-force benefits,

changes to new business pricing and the mix of new business being sold.

Analysis of movement in total regulatory GWS capital surplus (over GPCR)

A summary of the movement in the 31 December 2024 regulatory GWS capital surplus (over GPCR) of $20.9 billion to $23.1 billion at

31 December 2025 is set out in the table below.


	2025 $bn
Total GWS surplus at 1 Jan (over GPCR)	20.9
Movement in free surplus	0.9
Other movements in GWS shareholder surplus not included in free surplus	0.3
Movement in contribution from GWS policyholder surplus (over GPCR)	1.0
Total GWS surplus at 31 Dec (over GPCR)	23.1

Further detail on the movement in free surplus of $0.9 billion is included in the Movement in Group free surplus section of the Group’s TEV basis

results.

Other movements in GWS shareholder surplus not included in free surplus are driven by the differences described in the reconciliation shown later

in this section. This includes movements in distribution rights and other intangibles (which are expensed on day one under the GWS

requirements) and movements in the restriction applied to free surplus to better reflect shareholder resources that are available for distribution.

Material changes in GMCR, GPCR, tier 1 group capital and eligible group capital resources

Detail on the material changes in GPCR, GMCR, eligible group capital resources and tier 1 group capital are provided below.

– Total eligible capital resources increased by $5.8 billion to $46.9 billion at 31 December 2025 (31 December 2024: $41.1 billion). This includes

a $2.5 billion increase in tier 1 group capital to $21.4 billion (31 December 2024: $18.9 billion) and a $3.3 billion increase in tier 2 group

capital to $25.5 billion (31 December 2024: $22.2 billion). The increase in total eligible capital resources is primarily driven by positive

operating capital generation, issuance of subordinated debt, proceeds from the IPO of ICICI Prudential Asset Management Company Limited

(IPAMC) as detailed in note D6.3, and positive market (including foreign exchange) movements over the year, partially offset by payments of

external dividends and share repurchases/buybacks over the year.

– Total regulatory GPCR increased by $3.6 billion to $23.8 billion at 31 December 2025 (31 December 2024: $20.2 billion), while the total

regulatory GMCR increased by $1.0 billion to $6.8 billion at 31 December 2025 (31 December 2024: $5.8 billion). Movements in the GPCR and

GMCR are primarily driven by increases from new business sold and market (including foreign exchange) movements over the year, offset by

the release of capital as the policies matured or were surrendered over the year.


	379 Prudential plc Annual Report 2025

Reconciliation of free surplus to total regulatory GWS capital surplus (over GPCR)


	31 Dec 2025 $bn
	Capital resources	Required capital	Surplus
Free surplus excluding distribution rights and other intangibles ^{note (1)}	17.2	7.8	9.4
Restrictions applied in free surplus for China C-ROSS II ^{note (2)}	1.1	1.4	(0.3)
Restrictions applied in free surplus for HK RBC ^{note (3)}	6.9	1.1	5.8
Restrictions applied in free surplus for Singapore RBC ^{note (4)}	2.3	0.1	2.2
Other	0.1	0.1	0.0
Add GWS policyholder surplus contribution	19.3	13.3	6.0
Total regulatory GWS capital surplus (over GPCR)	46.9	23.8	23.1

Notes

(1) As per the 'Free surplus excluding distribution rights and other intangibles' shown in the statement of Movement in Group free surplus of the Group’s TEV basis results.

(2) Free surplus applies the embedded value reporting approach issued by the China Association of Actuaries (CAA) in Mainland China and includes a requirement to establish

a deferred profit liability within TEV net worth which can be used to reduce the TEV required capital. This approach is used to assist in setting free surplus so that it reflects

resources potentially available for distribution.

(3) TEV free surplus for Hong Kong under the HK RBC regime excludes regulatory surplus to better reflect how the business is managed. This includes HK RBC technical

provisions that are lower than policyholder asset shares as well as the value of future shareholder transfers from participating business (net of associated required capital),

which are included in the shareholder GWS capital position.

(4) TEV free surplus for Singapore is based on the Tier 1 requirements under the RBC2 framework, which excludes certain negative reserves permitted to be recognised in the

full RBC 2 regulatory position used when calculating the GWS capital surplus (over GPCR).

Reconciliation of Group IFRS shareholders’ equity to Group total GWS capital resource


	31 Dec 2025 $bn
Group IFRS shareholders’ equity	20.1
Remove goodwill and intangibles recognised on the IFRS consolidated statement of financial position	(4.7)
Add debt treated as capital under GWS ^{note (1)}	4.1
Asset valuation differences ^{note (2)}	(0.5)
Remove IFRS 17 CSM (including joint ventures and associates) ^{note (3)}	23.9
Liability valuation (including insurance contracts) differences excluding IFRS 17 CSM ^{note (4)}	2.9
Differences in associated net deferred tax liabilities ^{note (5)}	1.1
Group total GWS capital resources	46.9

Notes

(1) As per the GWS Framework, debt in issuance at the date of designation that satisfies the criteria for transitional arrangements, and qualifying debt issued since the date of

designation, are included as Group capital resources but are treated as liabilities under IFRS.

(2) Asset valuation differences reflect differences in the basis of valuing assets between IFRS and local statutory valuation rules, including deductions for inadmissible assets.

Differences include for some markets where government and corporate bonds are valued at book value under local regulations but are valued at market value under IFRS.

(3) The IFRS 17 CSM represents a discounted stock of unearned profit that is released over time as services are provided. On a GWS basis the level of future profits will be

recognised within the capital resources to the extent permitted by the local solvency reserving basis. Any restrictions applied by the local solvency bases (such as zeroisation

of future profits) is captured in the liability valuation differences line.

(4) Liability valuation differences (excluding the CSM) reflect differences in the basis of valuing liabilities between IFRS and local statutory valuation rules. This includes the

negative impact of moving from the IFRS 17 best estimate reserving basis to a more prudent local solvency reserving basis (including any restrictions in the recognition of

future profits) offset by the fact that certain local solvency regimes capture some reserves within the required capital instead of the capital resources.

(5) Differences in associated net deferred tax liabilities mainly results from the tax impact of changes in the valuation of assets and liabilities.

Basis of preparation for the Group GWS capital position

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

described below) for non-regulated entities.

In determining the GWS eligible group capital resources and required capital, the following principles have been applied:

– For regulated insurance entities, capital resources and required capital are based on the local solvency regime applicable in each jurisdiction,

with minimum required capital set at the solo legal entity statutory minimum capital requirements and prescribed capital requirement set at

the level at which the local regulator of a given entity can impose penalties, sanctions or intervention measures;

– The classification of tiering of eligible capital resources under the GWS framework reflects the different local regulatory regimes along with

guidance issued by the Hong Kong IA. In general, if a local regulatory regime applies a tiering approach, then this should be used to determine

tiering of capital on a GWS capital basis, where a local regulatory regime does not apply a tiering approach then all capital resources should be

included as Group Tier 1 capital. For non-regulated entities tiering of capital is determined in line with the Insurance (Group Capital) Rules.

– For asset management operations and other regulated entities, the capital position is derived based on the sectoral basis applicable in each

jurisdiction, with minimum required capital based on the solo legal entity statutory minimum capital requirement;

– For non-regulated entities, the capital resources are based on IFRS shareholder equity after deducting intangible assets. No required capital is

held in respect of unregulated entities;


	380 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

– For entities where the Group’s interest is less than 100 per cent, the contribution of the entity to the GWS eligible group capital resources and

required capital represents the Group’s share of these amounts and excludes any amounts attributable to non-controlling interests. This does

not apply to investment holdings that are not part of the Group;

– Investments in subsidiaries, joint ventures and associates (including, if any, loans that are recognised as capital on the receiving entity’s

balance sheet) are eliminated from the relevant holding company to prevent the double counting of capital resources;

– At 31 December 2025, all debt instruments with the exception of the senior debt maturing in 2032 are included as Group capital resources.

The eligible amount permitted to be included as Group capital resources for transitional debt is based on the net proceeds amount translated

using 31 December 2020 exchange rates for debt not denominated in US dollars. The eligible amount permitted to be included as Group

capital resources for qualifying debt is based on the IFRS carrying value. Under the GWS Framework, debt instruments in issuance at the date

of designation that satisfy the criteria for transitional arrangements and qualifying debt issued since the date of designation are included in

eligible group capital resources as tier 2 group capital;

– The total company GWS capital basis is the capital measure for Hong Kong IA Group regulatory purposes as set out in the GWS framework.

This framework defines the eligible group capital resources coverage ratio (or total company GWS coverage ratio over GPCR as presented

above) as the ratio of total company eligible group capital resources to the total company GPCR and defines the tier 1 group capital coverage

ratio (or total company GWS tier 1 coverage ratio over GMCR as presented above) as the ratio of total company tier 1 group capital to the

total company GMCR; and

– Prudential also presents a shareholder GWS capital basis, which excludes the contribution to the Group GWS eligible group capital resources,

the GMCR and GPCR from participating business in Hong Kong, Singapore and Malaysia. In Hong Kong, the present value of future

shareholder transfers from the participating business are included in the shareholder GWS eligible capital resources along with an associated

required capital, this is in line with the local solvency presentation. The shareholder GWS coverage ratio over GPCR presented above reflects

the ratio of shareholder eligible group capital resources to the shareholder GPCR.


	381 Prudential plc Annual Report 2025

I(ii) Eastspring adjusted operating profit and funds under management or advice

(a) Eastspring adjusted operating profit


	2025 $m	2024 AER $m
Operating income before performance-related fees ^{note (1)}	809	747
Performance-related fees	5	–
Operating income (net of commission) ^{note (2)}	814	747
Operating expense ^{note (2)}	(418)	(385)
Group's share of tax on joint ventures' operating profit	(67)	(58)
Adjusted operating profit	329	304

Average funds managed or advised by Eastspring	$271.7bn	$249.3bn
Margin based on operating income ^{note (3)}	30bps	30bps
Cost/income ratio ^{note II(v)}	52%	52%

Notes

(1) Operating income before performance-related fees for Eastspring can be further analysed as follows (institutional below includes internal funds under management or

under advice). Amounts are classified between retail or institutional depending on whether the owner of the holding, where known, is a retail or institutional investor.


	Retail	Margin	Institutional	Margin	Total	Margin
	$m	bps	$m	bps	$m	bps
2025	470	59	339	18	809	30
2024	414	62	333	18	747	30

(2) Operating income and expense include the Group’s share of contribution from joint ventures. In the consolidated income statement of the Group IFRS financial results, the

net income after tax of the joint ventures and associates is shown as a single line item. A reconciliation is provided in note II(v) of this additional information.

(3) Margin represents operating income before performance-related fees as a proportion of the related funds under management or advice. Monthly closing internal and

external funds managed or advised by Eastspring have been used to derive the average. Any funds held by the Group's insurance operations that are not managed or

advised by Eastspring are excluded from these amounts.

(b) Eastspring total funds under management or advice

Eastspring manages funds from external parties and funds for the Group’s insurance operations. In addition, Eastspring advises on certain funds

for the Group’s insurance operations where the investment management is delegated to third-party investment managers. The table below

analyses the total funds managed or advised on by Eastspring. All amounts are presented on an AER basis unless otherwise stated.


	31 Dec 2025 $bn	31 Dec 2024 $bn
External funds under management ^{note (1)}
Retail	63.7	64.5
Institutional	23.9	31.0
Money market funds (MMF)	15.6	13.9
	103.2	109.4

Internal funds under management or advice:
Internal funds under management	127.5	115.4
Internal funds under advice	47.0	33.2
	174.5	148.6
Total funds under management or advice ^{note (2)}	277.7	258.0

Notes

(1) Movements in external funds under management, are analysed below:


	31 Dec 2025 $m					31 Dec 2024 $m

	Retail	Institu- tional	Total excl. MMF	MMF	Total	Retail	Institu- tional	Total excl. MMF	MMF	Total
At beginning of year	64,481	31,059	95,540	13,914	109,454	50,779	33,493	84,272	11,775	96,047
Market gross inflows	29,942	9,340	39,282	82,636	121,918	27,994	12,144	40,138	70,640	110,778
Redemptions	(24,595)	(9,114)	(33,709)	(79,514)	(113,223)	(19,153)	(15,161)	(34,314)	(68,822)	(103,136)
Market and other movements*	(6,113)	(7,404)	(13,517)	(1,464)	(14,981)	4,861	583	5,444	321	5,765
At end of year	63,715	23,881	87,596	15,572	103,168	64,481	31,059	95,540	13,914	109,454

* Other movements include the effect of divestments in the year.


	382 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

(2) Total funds under management or advice are analysed by asset class below (multi-asset funds include a mix of debt, equity and other investments):


	31 Dec 2025						31 Dec 2024
	Funds under management		Funds under advice		Total		Total
	$bn	% of total	$bn	% of total	$bn	% of total	$bn	% of total
Equity	57.9	25%	2.1	5%	60.0	21%	61.8	24%
Fixed income	40.9	18%	3.0	6%	43.9	16%	45.2	17%
Multi-asset	113.0	49%	41.9	89%	154.9	56%	134.0	52%
Alternatives	2.2	1%	–	0%	2.2	1%	2.0	1%
MMF	16.7	7%	–	0%	16.7	6%	15.0	6%
Total funds	230.7	100%	47.0	100%	277.7	100%	258.0	100%

I(iii) Group funds under management

For Prudential’s asset management businesses, funds managed on behalf of third parties are not recorded on the balance sheet. They are,

however, a driver of profitability. Prudential therefore analyses the movement in the funds under management each year, focusing on those that

are external to the Group and those primarily held by the Group’s insurance businesses. The table below analyses the funds of the Group held in

the balance sheet and the external funds that are managed by Prudential’s asset management businesses. The 2024 comparatives excluded the

assets classified as held for sale. All amounts are presented on an AER basis unless otherwise stated.


	31 Dec 2025 $bn	31 Dec 2024 $bn
Internal funds	223.9	191.3
Eastspring external funds ^{note I(ii)}	103.2	109.4
Total Group funds under management ^note	327.1	300.7

Note

Total Group funds under management comprise:


	31 Dec 2025 $bn	31 Dec 2024 $bn
Total investments held on the balance sheet (including Investment in joint ventures and associates accounted for using the equity method)	199.5	169.4
External funds of Eastspring	103.2	109.4
Internally managed funds held in joint ventures and associates, excluding assets attributable to external unit holders of the consolidated collective investment schemes and other adjustments	24.4	21.9
Total Group funds under management	327.1	300.7


	383 Prudential plc Annual Report 2025

I(iv) Holding company cash flow

The holding company cash flow describes the movement in the cash and short-term investments of the centrally managed group holding

companies and differs from the IFRS cash flow statement, which includes all cash flows in the year including those relating to both policyholder

and shareholder funds. The holding company cash flow is therefore a more meaningful indication of the Group’s central liquidity. All amounts

are presented on an AER basis unless otherwise stated.


	2025 $m	2024 $m
Net cash remitted by business units ^{note (1)}	2,137	1,383
Central outflows
Net interest (paid) received	(55)	17
Corporate expenditure ^{note (2)}	(308)	(253)
Centrally funded recurring bancassurance fees	(223)	(198)
	(586)	(434)
Holding company cash flow before dividends and other movements	1,551	949
Dividends paid, net of scrip dividends	(594)	(552)
Operating holding company cash flow after dividends but before other movements	957	397
Other movements
Issuance of debt, net of costs	462	–
Share repurchases/buybacks (including costs)	(1,252)	(860)
Other corporate activities ^{note (3)}	1,117	(109)
	327	(969)
Net movement in holding company cash flow	1,284	(572)
Cash and short-term investments at 1 Jan	2,916	3,516
Foreign exchange movements	82	(28)
Cash and short-term investments at 31 Dec	4,282	2,916

Notes

(1) Net cash remitted by business units comprises dividends and other transfers, net of capital injections, that are reflective of earnings and capital generation. The remittances

in 2024 were net of cash advanced to the Group’s life joint venture in Mainland China of $174 million that has subsequently been converted into a capital injection in

2025.

(2) Including restructuring costs paid in the year.

(3) In 2025, the amount largely represents the $1.4 billion proceeds (net of costs and tax) from the sale of a portion of the Group’s interest in ICICI Prudential Asset

Management Company Limited.

Proceeds from the Group's commercial paper programmes are not included in the holding company cash and short-term investments balance.

The table below shows the reconciliation of the Cash and cash equivalents unallocated to a segment (Central operations) held on the IFRS

balance sheet (as shown in note C1.1) and Cash and short-term investments held by holding companies at the end of each period:


	31 Dec 2025 $m	31 Dec 2024 $m
Cash and cash equivalents of Central operations held on balance sheet	3,851	2,445
Less: Amounts from commercial paper	(520)	(527)
Add: Deposits with credit institutions of Central operations held on balance sheet and other items	951	998
Cash and short-term investments	4,282	2,916


	384 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

I(v) Share schemes

The Company operates a number of share schemes and plans which are described below. The purpose of these arrangements is to incentivise

and retain eligible employees of the Group or, in the case of the Agency LTIP and the ISSOSNE, eligible agents based in certain business units of

the Group through the grant of options over, and awards of, shares in Prudential plc.

The number of Prudential plc shares which may be issued to satisfy awards or options granted in any ten-year rolling period under (i) these plans

and any other share scheme adopted by Prudential plc and its subsidiaries may not exceed 10 per cent of the issued ordinary share capital of

Prudential plc from time to time, and (ii) the Agency LTIP and the ISSOSNE to participants who qualify as 'service providers' (as defined under

the Hong Kong Listing Rules) may not exceed 2 per cent of the issued ordinary share capital of Prudential plc from time to time. In addition, the

number of Prudential plc shares which may be issued to satisfy awards or options granted in any ten-year rolling period under any scheme or

plan in which Executive Directors participate or any other discretionary employee share scheme adopted by Prudential plc and its subsidiaries

may not exceed 5 per cent of the issued ordinary share capital of Prudential plc and its subsidiaries from time to time. Prudential plc shares

transferred out of treasury will count towards these limits for so long as this is required under institutional shareholder guidelines.

As at 1 January 2025 and 31 December 2025, the shareholder dilution under (i) all share schemes adopted by Prudential plc and its subsidiaries

represented 0.68 per cent and 0.78 per cent of the issued ordinary share capital of Prudential plc respectively (the 'Scheme Mandate'), and (ii)

the Agency LTIP and the ISSOSNE represented less than 0.01 per cent and 0.06 per cent of the issued ordinary share capital of Prudential plc

respectively (the 'Service Provider Sublimit'). Accordingly, the number of Prudential plc shares available for grant in respect of all options and

awards under (i) the Scheme Mandate at the beginning and the end of the year ended 31 December 2025 are 204,954,937 and 200,022,223

respectively and (ii) the Service Provider Sublimit at the beginning and the end of the year ended 31 December 2025 are 38,281,039 and

36,941,659 respectively.

The number of Prudential plc shares that may be issued or released from the employee benefit trust in respect of share options and awards

granted under all share option schemes and share award schemes during the year ended 31 December 2025 divided by the weighted average

number of Prudential plc shares in issue for the year ended 31 December 2025 is 0.77 per cent.

The weighted average share price of Prudential plc for the year ended 31 December 2025 was £8.68 (2024: £7.14).

Prudential calculates the fair value of options and awards in accordance with the applicable accounting standards and policies adopted for

preparing the consolidated financial statements. More detail on the methodology and assumptions used is given in note B2.2 to the IFRS

consolidated financial statements.

No payment is payable on application for, or acceptance of, any award made under any of the share schemes or plans operated by the

Company.


	385 Prudential plc Annual Report 2025

Waivers from strict compliance with the Hong Kong Listing Rules

In relation to the PLTIP 2023, a waiver from strict compliance with Rule 17.03B(1) of the Hong Kong Listing Rules was granted by the Hong Kong

Stock Exchange on 11 April 2023 such that the total number of shares of Prudential plc that may be issued under the share plans of Prudential

plc in any 10-year rolling period will not exceed 10 per cent of shares in issue from time to time. The PLTIP 2023 must also continue to be in

compliance with the UK Listing Rules and other applicable UK laws.

In relation to the Agency LTIP, a waiver from strict compliance with Rule 17.03B(1) and Rule 17.03F of the Hong Kong Listing Rules was granted

by the Hong Kong Stock Exchange on 11 April 2023 such that (i) the total number of shares of Prudential plc may be issued under the share

plans of Prudential plc in any 10-year rolling period will not exceed 10 per cent of shares in issue from time to time; and (ii) the vesting period for

awards may be less than 12 months in the following circumstances: (a) where a participant ceases to be an insurance agent for the reasons set

out under the Agency LTIP (ie redundancy, injury or disability, retirement or the participant’s employing entity or business ceasing to be part of

the Prudential group), the Remuneration Committee may allow an award to vest in part or in full before the original vesting date, taking into

consideration the performance conditions which have been satisfied, the number of months between date of grant and the cessation date and

other factors including personal conduct of the participant; (b) if a participant ceases to be an insurance agent before the original vesting date

and the Remuneration Committee decides that the award will not lapse, the award must vest in part or in full on the date of cessation if the

participant is a US taxpayer; (c) if a participant ceases to be an insurance agent before the vesting date for any other reason, including where an

agent resigns due to personal circumstances such as family relocation or a career change (other than death or summary termination of

employment), the Remuneration Committee may allow an award to vest in part or in full; (d) the Remuneration Committee may allow an award

to vest in part or in full if there is a change of control of Prudential plc or if a compromise or arrangement has been sanctioned by the Court

under the Companies Act 2006; (e) the Remuneration Committee may allow an award to vest in part or in full if Prudential plc is or is expected to

be affected by any demerger, dividend in specie, super dividend or other transaction (such as entry into a joint venture with a third party and

such transaction negatively impacts share price of Prudential plc, or a secondary capital raising, other than the transactions prescribed under the

Rule 10.1 of the Agency LTIP); and (f) for a participant who is a US taxpayer, if a delay due to vesting conditions, dealing restrictions or an

investigation into malus circumstances would postpone the issue of transfer of shares of Prudential plc or cash equivalent beyond a prescribed

period within the meaning of the US Tax Code, the Remuneration Committee may cause a share award to vest in part or in full. The Agency LTIP

must also be in compliance with the UK Listing Rules and other applicable UK laws.

In relation to the Sharesave, a waiver from strict compliance with Rule 17.03B(1) and Rule 17.03E of the Hong Kong Listing Rules was granted by

the Hong Kong Stock Exchange on 11 April 2023 such that (i) the total number of shares of Prudential plc that may be issued under the share

plans of Prudential plc in any 10-year rolling period will not exceed 10 per cent of shares in issue from time to time; (ii) the option exercise price

will not be less than 80 per cent of the closing middle-market quotation of a share of Prudential plc as derived from the Daily Official List of the

London Stock Exchange (or, if the Board so determines, the closing price as derived from the daily quotations sheet of the Hong Kong Stock

Exchange) for the business day before the date of invitation or, if the Board so determines, the arithmetic average of the middle-market

quotations or closing prices of a share of Prudential plc on the London Stock Exchange or the Hong Kong Stock Exchange for the three business

days before the date of invitation; and (iii) the Sharesave rules do not provide for the cancellation of options granted, in line with UK tax

legislation and HMRC guidance. The Sharesave must also continue to be in compliance with the UK Listing Rules and other applicable UK laws.

In relation to the ISSOSNE, a waiver from strict compliance with Rule 17.03B(1), Rule 17.03E and Rule 17.03F of the Hong Kong Listing Rules was

granted by the Hong Kong Stock Exchange on 11 April 2023 such that (i) the total number of shares of Prudential plc that may be issued under

the share plans of Prudential plc in any 10-year rolling period will not exceed 10 per cent of shares in issue from time to time; (ii) the option

exercise price will not be less than 80 per cent of the arithmetic average of the middle-market quotation of a share of Prudential plc as derived

from the Daily Official List of the London Stock Exchange (or, if the Board so determines, the daily quotations sheet of the Hong Kong Stock

Exchange) for three consecutive dealing days determined by the Board which fall within the period of 30 days immediately preceding the day on

which the relevant option is granted; and (iii) the vesting period for options may be less than 12 months in the following circumstances: (a) where

the Board has discretion to decide, in accordance with the Board’s internal guidelines (which set out the eligibility criteria for the nomination of

agents to participate in the ISSOSNE, such as exclusivity of services, average number of hours working for Prudential plc and profits generated) as

applicable from time to time, whether an option shall be exercisable if the option holder ceases to be an eligible participant. The Board may

consider exercising the aforementioned discretion in compassionate circumstances, such as where a participant has left the group due to a

terminal illness diagnosis; (b) options can be exercisable within six months after a change in control of Prudential plc; (c) options can be

exercisable at any time during the period from when a compromise or arrangement is sanctioned by the Court under the Companies Act 2006

until when such compromise or arrangement becomes effective; and (d) options can be exercisable within two months after a resolution has

been passed for the voluntary winding up of Prudential plc. The ISSOSNE must also continue to be in compliance with the UK Listing Rules and

other applicable UK laws.

Share schemes funded by new shares of Prudential

The arrangements in operation which may be funded by new issue shares of Prudential plc are the Prudential Long Term Incentive Plan

2023 (PLTIP 2023), the Prudential Agency Long-Term Incentive Plan (Agency LTIP), the Prudential Sharesave Plan 2023 (Sharesave 2023)

and the Prudential International Savings-Related Share Option Scheme for Non-Employees (ISSOSNE).

The Prudential Long Term Incentive Plan (PLTIP 2013) and the Prudential 2013 Savings-Related Share Option Scheme (Sharesave 2013) have

been discontinued for use since their expiry on 16 May 2023, but any awards and options that remain outstanding under them may be funded

by new issue shares of Prudential plc.


	386 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued


Share scheme and participants	Total number of shares available for issue under the scheme	Maximum entitlement of each participant	Vesting period	Exercise period and basis of determining exercise price	Remaining life of the scheme
PLTIP 2023 Any employee of a Group Company may be selected to be granted an award.	The total number of securities available for issue under the scheme is 1,770,768 which represents 0.069 per cent of the issued share capital at 31 December 2025.	Awards will not be granted over Prudential plc shares with a market value in excess of 550% of salary, in respect of any financial year of the Company (save in the case of any recruitment awards that compensate for entitlements forfeited on leaving a former employer). In addition, no awards will be granted if it will cause the Prudential plc shares over which all awards or options granted to a participant in any 12- month period to exceed one per cent of Prudential plc’s ordinary share capital.	Normally three years from grant. Awards may vest earlier (i) if they are recruitment awards, (ii) upon a takeover of Prudential plc or similar corporate event, or (iii) if a participant leaves with good-leaver status or passes away.	Awards structured as nil or nominal-cost options will normally be exercisable from vesting (or, where an award is subject to a holding period, release) until the tenth anniversary of the grant date.	The plan is due to expire on 25 May 2033.
Agency LTIP Any agent, who is a person who provides sales services to any Group Company under a contract for services, excluding any connected person, may be selected to be granted an award.	The total number of securities available for issue under the scheme is 66,449 which represents 0.003 per cent of the issued share capital at 31 December 2025.	No awards will be granted if it would cause the Prudential plc shares over which all awards or options are granted to a participant in any 12- month period to exceed one per cent of Prudential plc’s ordinary share capital.	Normally three years from grant. Awards may vest earlier (i) if a participant passes away, or (ii) in the circumstances described in the ‘Waivers from strict compliance with the Hong Kong Listing Rules’ section above.	One month from vesting (or two months if an extension is agreed with Prudential). The exercise price is the nominal value of a Prudential plc share.	The plan is due to expire on 25 May 2033.
Sharesave 2023 Any employee can participate who meets the definition of eligible employee, as defined by the relevant UK tax legislation.	The total number of securities available for issue under the scheme is 85,978 which represents 0.003 per cent of the issued share capital at 31 December 2025.	Options will not be granted if it would result in the participant’s monthly contributions to the Sharesave 2023 exceeding £500. In addition, no options will be granted if it would cause the Prudential plc shares over which all awards or options are granted to a participant in any 12- month period to exceed one per cent of Prudential plc’s ordinary share capital.	Normally three or five years (depending on the length of the relevant savings contract selected by the participant). Options may be exercised early: (i) upon a takeover of Prudential plc, or (ii) if a participant leaves with good leaver status or passes away.	Six months from the conclusion of the savings contract the participant enters into in connection with the Sharesave. Options may be exercisable for a period of 12 months if a participant passes away. The option exercise price is described in the ‘Waivers from strict compliance with the Hong Kong Listing Rules’ section above.	The plan is due to expire on 25 May 2033.


	387 Prudential plc Annual Report 2025


Share scheme and participants	Total number of shares available for issue under the scheme	Maximum entitlement of each participant	Vesting period	Exercise period and basis of determining exercise price	Remaining life of the scheme
ISSOSNE Any agent can participate who has been continuously engaged under a contract for service by a Participating Company for at least six months.	The total number of securities available for issue under the scheme is 1,443,215 which represents 0.057 per cent of the issued share capital at 31 December 2025.	Options will not be granted if it would result in the participant’s monthly contributions to the ISSOSNE exceeding the local currency equivalent of £500 or if it would cause the Prudential plc shares over which all awards or options are granted to a participant in any 12- month period to exceed one per cent of Prudential plc’s ordinary share capital.	Normally three years from grant, though the Board may determine an alternative period depending on the length of the relevant savings contract the participant enters into in connection with the ISSOSNE. Options may vest early: (i) if a participant passes away, or (ii) in the circumstances described in the ‘Waivers from strict compliance with the Hong Kong Listing Rules’ section above.	Six months from vesting, though options may be exercisable for a period of 12 months if a participant passes away. The option exercise price is described in the ‘Waivers from strict compliance with the Hong Kong Listing Rules’ section above.	The plan is due to expire on 25 May 2033.
PLTIP 2013 Any employee of a Group company may be selected to be granted an award.	n/a	No awards have been granted under the plan since its expiry on 16 May 2023. Before the expiry of the plan, awards were not granted over Prudential plc shares with a market value in excess of 550% of salary.	Normally three years from grant. Awards may vest earlier: (i) upon a takeover or winding up of Prudential plc, or (ii) if a participant leaves with good- leaver status or passes away.	n/a	The plan expired on 16 May 2023.
Sharesave 2013 Any employee can participate who meets the definition of eligible employee, as defined by the relevant UK tax legislation.	n/a	No options have been granted under the plan since its expiry on 16 May 2023. Before the expiry of the plan, no options were granted if it would have resulted in the participant’s monthly contributions to the Sharesave 2013 exceeding the statutory maximum at the relevant time.	Normally three or five years (depending on the length of the relevant savings contract selected by the participant). Options may be exercised vest early: (i) upon a takeover or voluntary winding up of Prudential plc, or (ii) if a participant leaves with good leaver status or passes away.	Six months from vesting, though options may be exercisable for a period of 12 months if a participant passes away. The price per share payable on the exercise of an option will have been determined by the Board and will have been no less than 80 per cent of the share price of Prudential plc for the average share price of Prudential plc for the three dealing days before the issue of invitations to employees to participate in the Sharesave 2013.	The plan expired on 16 May 2023.


	388 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

The following analysis shows the movement in each share plan for the year ended 31 December 2025:

(a) PLTIP

Vesting period

Fair value at grant

date

Number of shares under awards

Closing

price ³

Weighted

average

price⁴

Date of

grant

Vesting

date

PLTIP

TSR

PLTIP

IFRS

Beginning

of year

Transferred

Granted

Vested

Cancelled

Lapsed/

forfeited

End of

year

HKD

05 Apr 22

05 Apr 25

23.42

116.47

230,239

–

(91,436)

–

(138,803)

–

n/a

81.55

27 May 22

27 May 25

18.86

101.99

121,782

–

(51,392)

–

(70,390)

–

n/a

87.90

30 May 23

30 May 26

47.17

109.38

438,098

–

438,098

n/a

26 Mar 24

26 Mar 27

24.45

75.20

697,317

–

697,317

n/a

27 Mar 25

27 Mar 28

50.66

82.75

–

635,353

–

635,353

83.05

n/a

Total PLTIP

1,487,436

–

635,353

(142,828)

–

(209,193)

1,770,768

Representing:

Directors ^{1, 2}

1,135,415

–

635,353

–

1,770,768

Other employees

352,021

–

(142,828)

–

(209,193)

–

Total PLTIP

1,487,436

–

635,353

(142,828)

–

(209,193)

1,770,768

Notes

(1) Additional details on the Directors’ share awards are set out in the Directors' remuneration report.

(2) PLTIP awards have performance conditions attached, and these are set out in the Directors' remuneration report.

(3) Closing share price is quoted before grant date on the awards granted in the current period.

(4) Weighted average share price is calculated based on closing share price before vesting date on the awards vested in the current period.

(b) Agency LTIP

Vesting period

Fair value at

grant date

Number of shares under awards

Closing

share price²

Weighted

average

share price³

Date of

grant

Vesting

date

Beginning

of year

Granted

Vested

Lapsed/

forfeited

End of

year

HKD

27 May 22

05 Apr 25

99.32

41,725

–

(40,601)

(1,124)

–

n/a

81.55

30 May 23

12 Apr 26

105.32

66,449

–

66,449

n/a

Total Agency LTIP¹

108,174

–

(40,601)

(1,124)

66,449

Notes

(1) All of the participants of this scheme are service providers.

(2) Closing share price is quoted before grant date on the awards granted in the current period.

(3) Weighted average share price is calculated based on closing share price before vesting date on the awards vested in the current period.

Exercise

price

Exercise period

Fair

value

at grant

date

Number of shares under options

Closing

price ²

Weighted

average

price ³

Date of grant

Beginning

End

Beginning

of year

Granted

Exercised

Cancelled

Lapsed/

forfeited

End of

year

29 Nov 19

11.18

01 Jan 25

30 Jun 25

3.69

2,683

–

(2,683)

–

n/a

22 Sep 20

9.64

01 Dec 25

31 May 26

2.04

3,174

–

(62)

–

3,112

n/a

9.64

08 Dec 21

12.02

01 Jan 25

30 Jun 25

3.03

1,497

–

(1,497)

–

n/a

08 Dec 21

12.02

01 Jan 27

30 Jun 27

3.65

–

n/a

23 Sep 22

7.37

01 Dec 25

31 May 26

3.08

21,462

–

(5,100)

(2,442)

(7,718)

6,202

n/a

7.37

23 Sep 22

7.37

01 Dec 27

31 May 28

3.63

162

–

162

n/a

01 Oct 23

7.75

01 Dec 26

31 May 27

2.62

9,140

–

(1,675)

7,465

n/a

01 Oct 23

7.75

01 Dec 28

31 May 29

3.21

5,136

–

(815)

4,321

n/a

04 Oct 24

5.20

01 Dec 27

31 May 28

2.36

21,396

–

(1,426)

19,970

n/a

04 Oct 24

5.20

01 Dec 29

31 May 30

2.60

30,285

–

30,285

n/a

02 Oct 25

7.89

01 Dec 28

31 May 29

2.85

–

14,335

–

14,335

10.42

n/a

02 Oct 25

7.89

01 Dec 30

31 May 31

3.17

–

10.42

n/a

Total Sharesave¹

94,984

14,412

(5,162)

(2,442)

(15,814)

85,978

Notes

(1) All of the participants of this scheme are employees.

(2) Closing share price is quoted before grant date on the awards granted in the current period.

(3) Weighted average share price is calculated based on closing share price before vesting date on the awards vested in the current period.


	389 Prudential plc Annual Report 2025

(d) ISSOSNE

Exercise

price

Exercise period

Fair

value

at grant

date

Number of shares under options

Closing

price²

Weighted

average

price³

Date of grant

Beginning

End

Beginning

of year

Granted

Exercised

Cancelled

Lapsed/

forfeited

End of

year

£/HKD

02 Oct 19

£9.62

01 Dec 24

31 May 25

£2.98

83,728

–

(83,728)

–

n/a

22 Sep 20

£9.64

01 Dec 25

31 May 26

£2.04

125,162

–

(65,758)

(2,894)

–

56,510

n/a

9.33

02 Nov 21

£11.89

01 Dec 24

31 May 25

£3.91

115,604

–

(115,604)

–

n/a

02 Nov 21

£11.89

01 Dec 26

31 May 27

£4.46

145,963

–

(7,565)

–

138,398

n/a

21 Sep 22

£7.37

01 Dec 25

31 May 26

£3.13

171,672

–

(111,079)

(10,643)

–

49,950

n/a

7.37

21 Sep 22

£7.37

01 Dec 27

31 May 28

£3.59

152,514

–

(7,391)

–

145,123

n/a

01 Oct 23

£7.75

01 Dec 26

31 May 27

£2.62

175,583

–

(5,609)

–

169,974

n/a

01 Oct 23

£7.75

01 Dec 28

31 May 29

£3.21

109,617

–

(1,935)

–

107,682

n/a

04 Oct 24

HKD 53.40

01 Dec 27

31 May 28

HKD 24.41

279,488

–

(6,045)

–

273,443

n/a

04 Oct 24

HKD 53.40

01 Dec 29

31 May 30

HKD 26.90

205,781

–

205,781

n/a

02 Oct 25

HKD 82.08

01 Dec 28

31 May 29

HKD 31.63

–

210,010

–

(1,586)

208,424

108.00

n/a

02 Oct 25

HKD 82.08

01 Dec 30

31 May 31

HKD 34.87

–

88,296

–

(366)

–

87,930

108.00

n/a

Total ISSOSNE¹

1,565,112

298,306

(176,837)

(241,780)

(1,586)

1,443,215

Notes

(1) All of the participants of this scheme are service providers.

(2) Closing share price is quoted before grant date on the awards granted in the current period.

(3) Weighted average share price is calculated based on closing share price before vesting date on the awards vested in the current period.

Share schemes funded by existing shares of Prudential

The arrangements in operation that are funded by existing shares of Prudential plc include the Prudential Global Long Term Incentive Plan (PG

LTIP) (formerly known as the Prudential Asia and Africa Long Term Incentive Plan (PAA LTIP)), the Restricted Share Plan (RSP), the UK Share

Incentive Plan (UK SIP), the Prudential Corporation Asia All Employee Share Purchase Plan (PruSharePlus) and a number of deferred bonus plans,

namely the Prudential Deferred Annual Incentive Plan 2023 (Deferred AIP), the Prudential Group Deferred Bonus Plan (GDBP) and the Prudential

Deferred Bonus Plan (PDBP) (formerly known as the Prudential Corporation Asia Deferred Bonus Plan (PCA DBP)). The Prudential Deferred

Annual Incentive Plan (DAIP) has been discontinued for use since its expiry on 30 September 2023, but any awards that remain outstanding

under it may be funded by existing shares of Prudential plc.


Share scheme and participants	Total number of shares available for issue under the scheme	Maximum entitlement of each participant	Vesting period	Exercise period and basis of determining exercise price	Remaining life of the scheme
Prudential Global Long Term Incentive Plan (PG LTIP) Any employee of a Group company who has not given or been given notice of termination of employment, and is not a director, may be selected to be granted an award that is not a deferral model award. Any current or former non-director employee of a Group company may be selected to be granted a deferral model award.	The total number of securities available for issue under the scheme is 13,970,695 which represents 0.548 per cent of the issued share capital at 31 December 2025.	The size of PG LTIP awards is determined on a case-by-case basis.	Normally three years from grant. Where a deferral model is used, awards may vest on the first, second and third anniversary of the grant date in tranches of a third of the award. Awards may vest earlier upon a takeover of Prudential plc or if a participant leaves with good- leaver status or passes away.	In the case of any nil- cost options granted under the PG LTIP, a period of six months from vesting.	The PGLTIP does not have a fixed expiry date.


	390 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued


Share scheme and participants	Total number of shares available for issue under the scheme	Maximum entitlement of each participant	Vesting period	Exercise period and basis of determining exercise price	Remaining life of the scheme
Restricted Share Plan (RSP) Any employee of a Group company who has not given or been given notice of termination of employment, and is not a director, may be selected to be granted an award.	The total number of securities available for issue under the scheme is 1,364,734 which represents 0.054 per cent of the issued share capital at 31 December 2025.	Awards will not be granted over Prudential plc shares with a market value in excess of 600% of salary, in respect of any financial year of the Company.	Normally three years from grant. Awards may vest earlier upon a takeover of Prudential plc or if a participant passes away or leaves with good-leaver status.	In the case of any nil- cost awards granted under the RSP, normally a period of 12 months from vesting.	The RSP is due to expire on 30 June 2025.
Group Share Incentive Plan (UK SIP) Any employee can participate who meets the definition of eligible employee, as defined by the relevant UK tax legislation.	n/a	In the case of free shares, up to £3,600 worth of Prudential plc shares in respect of any UK tax year. In the case of partnership shares (bought with the participant’s own funds), Prudential plc shares worth up to the lower of £1,800 or 10% of salary, in respect of any UK tax year. In the case of matching shares, a ratio of matching shares to partnership shares not greater than two free (matching) Prudential plc shares for every one partnership share bought.	Partnership shares (bought with the participant’s own funds) may be withdrawn at any time. For free, matching and dividend shares, awards must be held in the UK SIP for three years. Free, matching and dividend shares may be withdrawn earlier upon a takeover of Prudential plc or if a participant passes away or leaves with good-leaver status.	Partnership and dividend shares are acquired at the market value of a Prudential plc share. There is no acquisition cost in the case of free shares and matching shares.	The UK SIP rules are due to expire in 2080 on the expiry of the UK SIP trust.
Prudential Corporation Asia All Employee Share Purchase Plan (PRUshareplus) Any employee of a Group company who has not given or been given notice of termination of employment, and is not an executive director, can participate.	n/a	The maximum amount a participant may contribute to PRUshareplus is the lower of 10% of salary or £5,000.	Matching awards normally vest one year from the end of the period in respect of which the related shares purchased with the participant’s contributions were acquired. Awards may vest earlier upon a takeover of Prudential plc or if a participant leaves with good- leaver status.	Purchased shares are acquired at the market value of a Prudential plc share. There is no acquisition cost for matching awards.	PRUshareplus does not have a fixed expiry date.


	391 Prudential plc Annual Report 2025


Share scheme and participants	Total number of shares available for issue under the scheme	Maximum entitlement of each participant	Vesting period	Exercise period and basis of determining exercise price	Remaining life of the scheme
Prudential Deferred Annual Incentive Plan 2023 (Deferred AIP) Any employee of a Group company who has received a bonus may be selected to be granted an award.	The total number of securities available for issue under the scheme is 537,576 which represents 0.021 per cent of the issued share capital at 31 December 2025.	Awards will not be granted over Prudential plc shares with a market value in excess of the deferred proportion of the bonus received (save in the case of any recruitment awards that compensate for entitlements forfeited on leaving a former employer).	The normal vesting date for each award under the Deferred AIP is set at the time the award is granted on a case by case basis. Awards may vest earlier upon a takeover of Prudential plc or if a participant leaves for any reason other than cause or passes away.	In the case of any nil or nominal-cost options granted to (i) a current employee, normally a period of ten years from vesting, and (ii) a former employee, normally a period of 12 months from vesting.	The Deferred AIP is due to expire on 29 November 2032.
Group Deferred Bonus Plan (GDBP) Any employee of a Group company, who is not a director, may be selected to be granted an award.	n/a	The size of GDBP awards is determined on a case-by-case basis.	The normal vesting date for each award under the GDBP is set at the time the award is granted on a case- by-case basis. Awards may vest earlier upon a takeover of Prudential plc or if a participant leaves for any reason other than cause or passes away.	In the case of any nil- cost options granted under the GDBP, a period of six months from vesting.	The GDBP does not have a fixed expiry date.
Prudential Deferred Bonus Plan (PDBP) Any employee of a Group company who has not given or been given notice of termination of employment (unless otherwise decided in any particular case), and is not a director, may be selected to be granted an award.	n/a	The size of PDBP awards is determined on a case-by-case basis.	The normal vesting date for each award under the PDBP is set at the time the award is granted on a case- by-case basis. Awards may vest earlier upon a takeover of Prudential plc, if a participant leaves with good leaver status or passes away.	In the case of any nil- cost options granted under the PDBP, a period of six months from vesting.	The PDBP does not have a fixed expiry date.
Deferred Annual Incentive Plan (DAIP) Any employee of a Group company who has not given or been given notice of termination of employment (unless otherwise decided in any particular case), and is not a director, may be selected to be granted an award.	n/a	No awards have been granted under the DAIP since its expiry on 30 September 2023. Before the expiry of the DAIP, the size of awards was determined on a case-by-case basis.	The normal vesting date for each award under the DAIP is set at the time the award is granted on a case- by-case basis. Awards may vest earlier upon a takeover of Prudential plc or if a participant leaves for any reason other than cause or passes away.	In the case of any nil- cost options granted under the DAIP, a period of six months from vesting.	The DAIP expired on 30 September 2023.


	392 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

The following analysis shows the movement in each share plan for the year ended 31 December 2025:


Vesting period		Fair value at grant date	Number of shares under awards¹						Closing share price³	Weighted average share price⁴
Date of grant	Vesting date	Fair value at grant date	Beginning of year	Granted	Vested/ Released	Cancelled	Lapsed/ Forfeited	End of year	Closing share price³	Weighted average share price⁴
		HKD							HKD	HKD
Restricted Share Plan (RSP)
07 Apr 21	20 Jan 22 - 01 Apr 25	152.85 - 165.09	1,572	–	(1,522)	–	(50)	–	n/a	82.37
08 Dec 21	01 Feb 22 - 01 Feb 25	133.45 - 136.75	185	–	(185)	–	–	–	n/a	82.40
29 Jun 22	31 Aug 22 - 01 Mar 26	94.25 - 97.49	2,785	–	(1,817)	–	–	968	n/a	82.40
21 Sep 22	17 Oct 22 - 31 Dec 25	82.20 - 85.14	8,425	–	(905)	–	(4,501)	3,019	n/a	82.40
15 Dec 22	10 Feb 23 - 01 Apr 26	97.11 - 101.01	7,106	–	(4,699)	–	–	2,407	n/a	82.35
10 May 23	01 Jun 23 - 01 Apr 27	48.90 - 116.27	88,509	–	(52,429)	–	(3,795)	32,285	n/a	82.10
07 Sep 23	01 Oct 23 - 01 Mar 26	85.49 - 88.32	23,270	–	(18,071)	–	(1,012)	4,187	n/a	82.65
13 Dec 23	01 Jan 24 - 01 Mar 27	80.84 - 84.56	24,712	–	(10,485)	–	–	14,227	n/a	93.04
26 Mar 24	01 May 24 - 01 Apr 26	72.69 - 74.98	68,374	–	(49,874)	–	13,424	31,924	n/a	83.56
21 May 24	01 Jun 24 - 01 Mar 28	73.22 - 78.16	206,661	–	(62,976)	–	(13,424)	130,261	n/a	82.38
04 Oct 24	01 Nov 24 - 31 Mar 28	67.95 - 73.00	607,842	–	(186,320)	–	(24,116)	397,406	n/a	82.34
12 Dec 24	01 Feb 25 - 21 May 29	60.46 - 66.65	179,350	–	(68,162)	–	(33,007)	78,181	n/a	83.37
27 Mar 25	01 Apr 25 - 31 Mar 28	77.08 - 82.75	–	104,729	(17,537)	–	–	87,192	83.05	91.32
14 May 25	01 Jun 25 - 31 Aug 29	82.00 - 90.64	–	41,335	(9,768)	–	(1,717)	29,850	89.40	101.08
02 Oct 25	03 Oct 25 - 09 Mar 29	0.00 - 108.60	–	488,333	(5,111)	–	(8,666)	474,556	108.00	110.87
15 Dec 25	06 Mar 26 - 01 Apr 30	1.65 - 112.50	–	78,271	–	–	–	78,271	114.40	n/a
Prudential Global Long Term Incentive Plan (PG LTIP)²
18 Jun 21	07 Apr 22 - 07 Apr 24	146.85 - 152.53	70	–	–	–	(70)	–	n/a	n/a
05 Apr 22	05 Apr 23 - 05 Apr 25	9.35 - 115.49	1,304,304	–	(1,199,815)	–	(104,489)	–	n/a	82.24
29 Jun 22	05 Apr 23 - 05 Apr 25	95.11 - 96.92	187	–	(187)	–	–	–	n/a	82.40
21 Sep 22	05 Apr 23 - 05 Apr 25	82.83 - 84.69	1,041	–	(1,041)	–	–	–	n/a	82.40
10 May 23	12 Apr 24 - 12 Apr 26	47.02 - 114.99	875,672	–	(424,641)	–	(31,723)	419,308	n/a	82.46
22 May 23	12 Apr 24 - 12 Apr 26	49.40 - 113.69	1,690,857	–	(703,191)	–	(49,553)	938,113	n/a	82.40
13 Dec 23	12 Apr 26	18.59 - 81.82	7,511	–	–	–	–	7,511	n/a	n/a
26 Mar 24	26 Mar 25 - 26 Mar 27	32.40 - 73.99	7,917,467	–	(2,445,159)	–	(140,818)	5,331,490	n/a	82.45
21 May 24	26 Mar 25 - 26 Mar 27	75.37 - 78.05	375,303	–	(121,217)	–	(11,617)	242,469	n/a	82.40
04 Oct 24	05 Apr 25	0.00 -72.25	1,169	–	(1,169)	–	–	–	n/a	82.40
27 Mar 25	27 Mar 26 - 27 Mar 28	61.89 - 80.82	–	7,085,902	(12,232)	–	(130,949)	6,942,721	83.05	102.80
14 May 25	27 Mar 26 - 27 Mar 28	84.81 - 88.91	–	15,972	–	–	–	15,972	89.40	n/a
02 Oct 25	27 Mar 26 - 27 Mar 28	102.90 - 107.47	–	73,111	–	–	–	73,111	108.00	n/a
Prudential Deferred Bonus Plan (PDBP)
10 May 23	12 Apr 25	116.37	21,298	–	(21,298)	–	–	–	n/a	81.55
22 May 23	12 Apr 25	115.05	223,364	–	(223,252)	–	(112)	–	n/a	82.40
Deferred Annual Incentive Plan (DAIP)
17 May 21	17 May 24	164.03	25,735	–	–	–	(846)	24,889	n/a	n/a
5 Apr 22	5 Apr 25	116.52	250,451	–	(206,829)	–	–	43,622	n/a	82.40
10 May 23	12 Apr 26	116.37	40,885	–	–	–	–	40,885	n/a	n/a
22 May 23	12 Apr 26	115.05	173,103	–	–	–	–	173,103	n/a	n/a
26 Mar 24	26 Mar 27	75.20	148,642	–	–	–	–	148,642	n/a	n/a
27 Mar 25	27 Mar 28	82.75	–	106,435	–	–	–	106,435	83.05	n/a
Group Share Incentive Plan (UK SIP)
2009 – 2022	n/a	n/a	6,216	737	(1,148)	–	(276)	5,529	n/a	n/a
Purchase Plan (PRUshareplus)
2020 – 2022	n/a	n/a	563,536	347,601	(383,990)	–	–	527,147	n/a	n/a
Total share schemes funded by existing shares of Prudential			14,845,602	8,342,426	(6,235,030)	–	(547,317)	16,405,681
Representing:
Five highest paid individuals			997,938	612,724	(288,483)	–	(21,117)	1,301,062
All other grantees			13,847,664	7,729,702	(5,946,547)	–	(526,200)	15,104,619
Total share schemes funded by existing shares of Prudential			14,845,602	8,342,426	(6,235,030)	–	(547,317)	16,405,681

Notes

(1) The table above includes share plans held by directors of the Group. Details of share plans held by the individual directors have been set out separately in the

Directors' remuneration report. The five highest paid individuals during the financial year may also include directors, if applicable.

(2) For some PGLTIP awards a portion of the award has performance conditions attached. There are usually three elements to these performance conditions; Total

Shareholder Return (50% weighting), Return on Embedded Value (30% weighting) and sustainability scorecard capturing both financial and non-financial measures

aligned to the Group’s strategic objectives (20% weighting).

(3) Closing share price is quoted before grant date.

(4) Weighted average share price is calculated based on closing share price before vesting date.


	393 Prudential plc Annual Report 2025

I(vi) Selected historical financial information of Prudential

The following table sets forth Prudential’s selected consolidated financial data for the years indicated, which is derived from Prudential’s audited

consolidated financial statements. This table is only a summary and should be read in conjunction with Prudential’s consolidated financial

statements and the related notes included elsewhere in this document.

(a) IFRS financial results


Income statement	2025 $m	2024 $m	2023 $m	2022 $m
Insurance revenue	11,080	10,358	9,371	8,549
Insurance service expense	(8,244)	(7,763)	(7,113)	(6,267)
Net expense from reinsurance contracts held	(212)	(302)	(171)	(105)
Insurance service result	2,624	2,293	2,087	2,177
Investment return	16,264	5,919	9,763	(29,380)
Fair value movements on investment contract liabilities	(72)	(95)	(24)	67
Net insurance finance (expense) income	(14,771)	(4,492)	(8,648)	27,430
Net investment result	1,421	1,332	1,091	(1,883)
Other revenue	411	382	369	436
Non-insurance expenditure	(1,031)	(1,003)	(990)	(1,019)
Finance costs: interest on core structural borrowings of shareholder-financed businesses	(183)	(171)	(172)	(200)
Gain (loss) attaching to corporate transactions	1,515	(71)	(22)	55
Share of profit (loss) from joint ventures and associates, net of related tax	364	477	(91)	(85)
Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) ^{note (1)}	5,121	3,239	2,272	(519)
Tax charge attributable to policyholders’ returns	(180)	(286)	(175)	(124)
Profit (loss) before tax attributable to shareholders' returns	4,941	2,953	2,097	(643)
Total tax charge attributable to shareholders' and policyholders' returns	(1,002)	(824)	(560)	(478)
Remove tax charge attributable to policyholders' returns	180	286	175	124
Tax charge attributable to shareholders' returns	(822)	(538)	(385)	(354)
Profit (loss) for the year	4,119	2,415	1,712	(997)


Basic earnings per share (in cents)	2025	2024	2023	2022
Based on profit (loss) for the year attributable to the equity holders of the Company	154.2¢	84.1¢	62.1¢	(36.8)¢


Dividend per share (in cents)	2025	2024	2023	2022
Dividends paid in reporting period	24.00¢	21.05¢	19.30¢	17.60¢


Statement of financial position at 31 Dec	2025 $m	2024 $m	2023 $m	2022 $m
Total assets excluding insurance and reinsurance contracts assets	206,973	177,141	170,460	157,259
Insurance and reinsurance contract assets	5,222	4,735	3,606	2,990
Total assets	212,195	181,876	174,066	160,249
Insurance and reinsurance contract liabilities	175,138	148,102	140,991	127,417
Investment contract liabilities without discretionary participation features	715	748	769	663
Core structural borrowings of shareholder-financed businesses	4,459	3,925	3,933	4,261
Total liabilities	190,835	163,202	156,083	143,351
Total equity	21,360	18,674	17,983	16,898


	394 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

I Additional financial information continued

Supplementary IFRS financial results


	2025 $m	2024 $m	2023 $m	2022 $m
Adjusted operating profit ^{note (2)}	3,306	3,129	2,893	2,722
Non-operating items	1,635	(176)	(796)	(3,365)
Profit (loss) before tax attributable to shareholders	4,941	2,953	2,097	(643)
Adjusted operating profit after tax and non-controlling interests	2,617	2,436	2,438	2,172
Operating earnings per share after tax and non-controlling interests (in cents)	101.4¢	89.7¢	89.0¢	79.4¢

Notes

(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.

(2) Adjusted operating profit is determined on the basis of including longer-term investment returns and is stated after excluding the effect of short-term interest rate

and other market fluctuations and gain or loss attaching to corporate transactions.

2021 comparative results as previously published under IFRS 4

The Group adopted IFRS 9, ‘Financial Instruments’ and IFRS 17, ‘Insurance Contracts’ from 1 January 2023. The Group determined its date of

transition to IFRS 17 to be 1 January 2022. Consequently, the 2021 comparative results below had not been restated on an IFRS 17 basis and

have been shown on an IFRS 4 basis as previously published. Therefore, the 2021 comparative results are presented on a very different basis and

are not comparable to the results set out above. The key differences between IFRS 17 and IFRS 4 were set out in note A2.1 to the IFRS

consolidated financial statements in the 2023 Annual Report.

In the tables below, continuing operations reflect the Group’s insurance and asset management businesses in Asia and Africa and central

operations. Discontinued operations represent the Group’s US business (Jackson) demerged in September 2021.


Income statement	2021 $m
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 and movement in unallocated surplus of with-profits funds, 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 profits from joint ventures and associates net of related tax	352
Profit before tax (being tax attributable to shareholders’ and policyholders’ returns) ^{note (1)}	3,018
Tax charges attributable to policyholders’ returns	(342)
Profit before tax attributable to shareholders' returns	2,676
Tax charges attributable to shareholders’ returns	(462)
Profit from continuing operations	2,214
Loss from discontinued US operations	(5,027)
Loss for the year	(2,813)


Basic earnings per share (in cents)	2021
Based on loss for the year attributable to the equity holders of the Company:
Continuing operations	83.4¢
Discontinued US operations	(161.1)¢
Total	(77.7)¢


Dividend per share (in cents) excluding demerger dividend	2021
Dividends paid in reporting period	16.10¢


	395 Prudential plc Annual Report 2025


Statement of financial position at 31 Dec	2021 $m
Total assets	199,102
Total policyholder liabilities and unallocated surplus of with-profits funds	157,299
Core structural borrowings of shareholder-financed businesses	6,127
Total liabilities	181,838
Total equity	17,264

Supplementary IFRS financial results


Continuing operations	2021 $m
Adjusted operating profit ^{note (2)}	3,233
Non-operating items	(557)
Profit before tax attributable to shareholders	2,676
Operating earnings per share after tax and non-controlling interest (in cents)	101.5¢

Note

(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.

(2) Adjusted operating profit is determined on the basis of including longer-term investment returns, which are stated after excluding the effect of short-term interest

rate and other market fluctuations on shareholder-backed business and gain or loss attaching to corporate transactions. Adjusted operating profit also excludes

amortisation of acquisition accounting adjustments arising on the purchase of business.

(b) Supplementary embedded value basis results

To increase the comparability of Prudential’s external reporting to its key peers and to reduce the economic volatility seen in its embedded value

reporting, with a view to improving the transparency of underlying growth in new business profit and embedded value, Prudential converted to

TEV basis in 2025, with 2024 comparatives restated. No prior periods were restated and so only two years are shown in the tables below.


	2025 $m	2024 $m
Operating profit	4,752	4,095
Non-operating items	(81)	(566)
Profit attributable to shareholders	4,671	3,529
Operating earnings per share after non-controlling interests (in cents)	178.5¢	146.2¢


New business contribution	2025 $m	2024 $m
APE sales	6,661	6,202
NBP (post-tax)	2,782	2,464


Embedded value at 31 Dec	2025 $bn	2024 $bn
Group EV equity, net of non-controlling interests	37.8	34.3


	2025 $m	2024 $m
Gross operating free surplus generated from in-force insurance and asset management businesses	3,059	2,666
Net Group operating free surplus generated ^note	1,675	1,364
Free surplus ratio (%)	221%	234%

Note

Net Group operating free surplus generated represents operating free surplus generated less central costs, eliminations, restructuring costs and IFRS 17 costs, net of tax.


At 31 Dec	2025 $bn	2024 $bn	2023 $bn	2022 $bn	2021 $bn
Eastspring funds under management or advice ^{note 1}	277.7	258.0	237.1	221.4	258.5
Group shareholder GWS capital surplus (over GPCR)^{note 2}	17.1	15.9	16.1	15.6	17.5

Notes

(1) Eastspring total funds under management or advice comprise funds from external parties, including funds managed on behalf of M&G plc, as well as funds managed

or advised for the Group’s insurance operations.

(2) The Group shareholder GWS capital surplus (over GPCR) reflects the Insurance (Group Capital) Rules as set out in the GWS Framework, which became effective for

Prudential in May 2021.


	396 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

II Calculation of alternative performance measures

Prudential uses alternative performance measures (APMs) to provide more relevant explanations of the Group’s financial position and

performance. This section sets out explanations for each APM and reconciliations to relevant IFRS balances. All amounts are presented on an AER

basis unless otherwise stated.

II(i) Adjusted operating profit

The measurement of adjusted operating profit reflects that, for the insurance business, assets and liabilities are held for the longer term.

Management 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 measurement basis distinguishes adjusted operating profit from other

constituents of total profit or loss for the year, including short-term interest rate and other market fluctuations and loss on corporate transactions.

More details on how adjusted operating profit is determined are included in note B1.2 to the IFRS consolidated financial statements. A full

reconciliation to profit after tax is given in note B1.1 to the IFRS consolidated financial statements. Adjusted operating profit after tax is

calculated by applying the effective tax rates of the relevant business operations, shown in note B3.2 to the IFRS consolidated financial

statements, to adjusted operating profit.

II(ii) Adjusted total comprehensive equity

Adjusted total comprehensive equity is calculated by adding the IFRS 17 expected future profit, excluding the amount attributable to non-

controlling interests and related tax (shareholder CSM), to IFRS shareholders' equity for all entities in the Group, including life joint ventures and

associates. Management believes this is a helpful measure that provides a reconciliation to the Embedded Value framework, which is often used

for valuations. The main difference between the Group’s TEV measure and adjusted total comprehensive equity is economics as explained in

note II(viii).

See note C3.1 to the IFRS consolidated financial statements for the split of the balances excluding joint ventures and associates and the Group’s

share relating to joint ventures and associates and a reconciliation from IFRS shareholders' equity to adjusted total comprehensive equity.

II(iii) Return on IFRS shareholders' equity

This measure is calculated as adjusted operating profit, after tax and non-controlling interests, divided by average IFRS shareholders’ equity.

Detailed reconciliation of adjusted operating profit to IFRS profit before tax for the Group is shown in note B1.1 to the Group IFRS financial

results.


	2025 $m	2024* $m
Adjusted operating profit	3,306	3,129
Tax on adjusted operating profit	(534)	(547)
Non-controlling interests' share of adjusted operating profit	(155)	(146)
Adjusted operating profit, net of tax and non-controlling interests	2,617	2,436

IFRS shareholders’ equity at beginning of year	17,492	16,966
IFRS shareholders’ equity at end of year	20,117	17,492
Average IFRS shareholders’ equity	18,805	17,229
Operating return on IFRS shareholders’ equity (%)	14%	14%

* Operating profit and IFRS shareholders’ equity are net of the non-controlling interest arising in Malaysia at 1 January 2024 of 49 per cent.

II(iv) IFRS shareholders' equity per share

IFRS shareholders’ equity per share is calculated as closing IFRS shareholders’ equity divided by the number of issued shares at the end of the

year.


	31 Dec 2025	31 Dec 2024
Number of issued shares at the end of the year (million shares)	2,548	2,658
Closing IFRS shareholders’ equity ($ million)	20,117	17,492
Group IFRS shareholders’ equity per share (cents)	790¢	658¢

Closing adjusted total comprehensive equity ($ million)	42,068	36,660
Group adjusted total comprehensive equity per share (cents)	1,651¢	1,379¢


	397 Prudential plc Annual Report 2025

II(v) Eastspring cost/income ratio

The cost/income ratio is calculated as operating expenses, adjusted for commissions and share of contribution from joint ventures and

associates, divided by operating income, adjusted for commission, share of contribution from joint ventures and associates and performance-

related fees. It is based on profit recorded during the year, using the ownership for that period.


	2025 $m	2024 $m
IFRS revenue	596	565
Share of revenue from joint ventures and associates	437	385
Commissions and other	(219)	(203)
Performance-related fees	(5)	–
Operating income before performance-related fees ^note	809	747

IFRS charges	491	454
Share of expenses from joint ventures and associates	146	134
Commissions and other	(219)	(203)
Operating expense	418	385
Cost/income ratio (operating expense/operating income before performance-related fees)	52%	52%

Note

IFRS revenue and charges for Eastspring are included within the IFRS Income statement in ‘other revenue’ and ‘non-insurance expenditure’, respectively. Operating income and

expense include the Group’s share of contribution from joint ventures and associates. In the IFRS condensed consolidated income statement, the net income after tax from the

joint ventures and associates is shown as a single line item.

II(vi) Insurance premiums

New business sales are provided as an indicative volume measure of transactions undertaken in the reporting period that have the potential to

generate profits for shareholders. The Group reports annual premium equivalent (APE) new business sales as a measure of the new policies sold

in the year, which is calculated as the aggregate of annualised regular premiums and one-tenth of single premiums on new business written

during the year for all insurance products, including premiums for contracts designated as investment contracts and excluded from the scope of

IFRS 17. The use of one-tenth of single premiums is to normalise policy premiums into the equivalent of regular annual payments. This measure

is commonly used in the insurance industry to allow comparisons of the amount of new business written in a period by life insurance companies,

particularly when the sales contain both single premium and regular premium business.

Renewal or recurring premiums are the subsequent premiums that are paid on regular premium products, including premiums for investment

contracts with discretionary participation features and the deposit component of insurance contracts. In the table below, premiums for the

deposit component of insurance contracts from the Group’s Mainland China life joint venture are now included in renewal premiums in both

2025 and 2024. Gross premiums earned is the measure of premiums as defined under the previous IFRS 4 basis and reflects the aggregate of

single and regular premiums of new business sold in the year and renewal premiums on business sold in previous years but excludes premiums for

policies classified as investment contracts without discretionary participation features under IFRS, which are recorded as deposits. Gross

premiums earned is no longer a metric presented under IFRS 17 and is not directly reconcilable to primary statements. The Group believes that

renewal premiums and gross premiums earned are useful measures of the Group’s business volumes and growth during the year.


	2025 $m	2024 $m
Gross premiums earned	28,317	24,262
Gross premiums earned from joint ventures and associates	4,316	4,003
Total Group, including joint ventures and associates	32,633	28,265


	2025 $m	2024 $m AER	Change % AER	2024 $m CER	Change % CER
Renewal insurance premiums	21,445	19,340	11%	19,575	10%
Annual premium equivalent (APE)	6,661	6,202	7%	6,289	6%
Life weighted premium income	28,106	25,542	10%	25,864	9%

II(vii) Reconciliation between TEV new business profit and IFRS new business CSM


	2025 $m	2024 $m
TEV new business profit (before central costs)	2,842	2,526
New rider sales ^{note (1)}	(67)	(59)
Economics and other ^{note (2)}	(332)	(217)
Related tax on IFRS new business CSM ^{note (3)}	392	346
IFRS new business CSM	2,835	2,596


	398 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

II Calculation of alternative performance measures continued

Notes

(1) Under TEV, new business profit (NBP) arising from additional or new riders attaching to existing contracts, product upgrades and top-ups are reported as current period NBP.

Under IFRS 17 reporting, NBP from such rider sales and upgrades are required to be treated as experience variances of the existing contracts.

(2) TEV is calculated using ‘real-world’ long-term economic assumptions that are based on the expected returns on the actual assets held with an allowance for risk in the risk

discount rate. Under IFRS 17, ‘risk neutral’ economic assumptions are applied with assets assumed to earn, and the cash flows are discounted at, risk free rate plus illiquidity

premium (where applicable).

(3) IFRS 17 new business CSM is gross of tax, while TEV NBP is net of tax. Accordingly, the related tax on the IFRS 17 new business CSM is added back. All of the other

reconciling items in the table have been presented net of related taxes.

II(viii) Reconciliation between TEV equity and IFRS shareholders' equity

TEV equity and IFRS 17 adjusted equity both represent measures of shareholders’ net assets and future profits from the in-force book but use

different economic bases. Both measures use consistent best-estimate operating assumptions and exclude any future new business. TEV uses a

passive economic basis that reflects real-world return expectations within the investment returns and an appropriate allowance for market risk

embedded within the discount rate. In contrast, IFRS uses an active market-consistent basis with the same economic assumptions used for

projecting and discounting cash flows.

The table below shows the reconciliation of TEV equity and IFRS shareholders’ equity at the end of the years:


	31 Dec 2025 $m	31 Dec 2024 $m
Group TEV equity	37,803	34,267
Mark-to-market value adjustment of the Group's core structural borrowings ^{note (1)}	(57)	(231)
Provision for future central corporate expenditure	2,086	2,078
Economics and other valuation differences ^{note (2)}	2,236	546
Adjusted total comprehensive equity	42,068	36,660
Remove: Shareholders’ CSM, net of reinsurance (see note C3.1 to the IFRS condensed consolidated financial statements)	(24,804)	(21,772)
Add: Related deferred tax adjustments for the above	2,853	2,604
IFRS shareholders’ equity	20,117	17,492

Notes

(1) The Group’s core structural borrowings are fair valued under TEV but are held at amortised cost under IFRS.

(2) TEV is calculated using ‘real-world’ long-term economic assumptions that are based on the expected returns on the actual assets held with an allowance for risk in the risk

discount rate. Under IFRS 17, ‘risk neutral’ economic assumptions are applied with the cash flows discounted using risk free plus liquidity premium (where applicable). Other

valuation differences include contract boundaries and non-attributable expenses, which are small.

II(ix) Return on embedded value

The calculation of operating return on embedded value is calculated as TEV operating profit for the year as a percentage of opening Group TEV

equity, excluding goodwill, distribution rights and other intangibles. Operating profit and Group TEV equity are net of non-controlling interests.


	2025 $m	2024 $m
TEV operating profit for the year	4,752	4,095
Non-controlling interests' share of TEV operating profit	(146)	(125)
TEV operating profit, net of non-controlling interests	4,606	3,970

Group TEV (ie excluding goodwill) excluding intangibles, at beginning of year	29,777	28,120
Operating return on opening Group TEV excluding intangibles (%)	15%	14%

New business profit over embedded value is calculated as the TEV new business profit for the period as a percentage of opening TEV for

insurance business operations (ie excluding goodwill) less distribution rights and other intangibles attributable to equity holders. New business

profit is before deducting the amount attributable to non-controlling interests.


	2025 $m	2024 $m
New business profit (NBP)	2,782	2,464
TEV (ie excluding goodwill) for insurance business excluding intangibles, at beginning of year	32,194	31,336
NBP over opening TEV for insurance business excluding intangibles (%)	9%	8%

II(x) Calculation of free surplus ratio

Free surplus ratio is calculated as the total of Group free surplus excluding distribution rights and other intangibles and TEV required capital,

divided by TEV required capital.


	31 Dec 2025 $m	31 Dec 2024 $m
Group free surplus excluding distribution rights and other intangibles	9,408	8,604
TEV required capital	7,761	6,410
Total	17,169	15,014
Free surplus ratio (%)	221%	234%


	399 Prudential plc Annual Report 2025

Glossary

Definitions of performance metrics

Adjusted CSM release

Adjusted release of CSM reflects an adjustment to the release of CSM

in respect of losses on onerous contracts and gains on profitable

contracts that can be shared across more than one annual cohort,

and hence which are combined for the purposes of determining the

adjusted release amount.

Adjusted release of CSM is reconciled to IFRS release of CSM for the

year as discussed in note B1.3 of the IFRS financial results.

Adjusted CSM release rate

Adjusted CSM release rate is defined as the adjusted release of CSM

to the income statement in the period divided by the total of the

closing CSM balance after adding back the adjusted release in the

period and the effect of movements in exchange rates.

Adjusted operating profit

Adjusted IFRS operating profit based on longer-term investment

returns.

This alternative performance measure is reconciled to IFRS profit for

the year in note B1.1 of the IFRS financial results and a fuller

definition given in note B1.2.

Adjusted operating profit after tax

Adjusted operating profit less tax attributable to items within

adjusted operating profit.

Adjusted total comprehensive equity

Adjusted total comprehensive equity represents the sum of Group

IFRS shareholders’ equity and CSM, net of reinsurance (unless

attaching wholly to policyholders), non-controlling interests and tax.

See note C3.1(b) and II(ii) of the Additional unaudited financial

information for reconciliation to IFRS shareholders' equity.

Agency new business profit

New business profit generated from the agency channel.

Annual premium equivalent (APE) sales

A measure of new business activity that comprises the aggregate of

annualised regular premiums and one-tenth of single premiums on

new business written during the year for all insurance products.

See note II(vi) of the Additional unaudited financial information for

further explanation.

Average monthly active agents

An active agent is defined as an agent who sells at least one case with

a Prudential life insurance entity in the month. Average monthly

active agents is expressed for each reporting period as the sum of

active agents in each month divided by the number of months in the

period.

Bancassurance new business profit

New business profit generated from the bancassurance channel.

Basic earnings per share (EPS) based on adjusted operating

profit

Calculated as adjusted operating profit after tax, less 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.

See note B4 to the IFRS financial statements for more detail and

calculation, including the diluted version of this metric and

reconciliation to basic earnings per share based on IFRS profit after

tax.

Customer numbers

A customer is defined as a unique individual or entity who holds one

or more policies, that has had premiums paid, with a Prudential life

insurance entity, including 100 per cent of customers of the Group's

joint ventures and associates. Group business is a single customer for

the purpose of this definition.

Customer relationship net promoter score (rNPS)

Net promoter score on overall strength of customer relationship,

based on customers’ survey responses to how likely they would be to

recommend Prudential. It measures the response on a scale of 0–10

where 9 or 10 are Promoters, 7 or 8 are Passives and 0–6 are

Detractors. The score equates to the percentage of promoters less the

percentage of detractors. Our customer rNPS target relates to each

market’s NPS performance versus their respective peers.

Customer retention rate

Calculated as the number of customers at the beginning of the period

minus exits during the year (net of reinstatement) over the number of

customers at the beginning of the period.

Eastspring cost/income ratio

The cost/income ratio is calculated as operating expenses, adjusted

for commissions and share of contribution from joint ventures and

associates, divided by operating income, adjusted for commission,

share of contribution from joint ventures and associates and

performance-related fees.

See note II(v) of the Additional unaudited financial information for

calculation.

Eastspring investment performance – percentage of funds

under management outperforming benchmarks

This measure represents the percentage of active funds under

management at the balance sheet date that outperformed their

performance benchmark over the time period stated (one or three

years). Funds with no performance objective, which includes passive

funds and non-discretionary portfolio, are excluded from this

measure.

Eastspring total funds under management or advice

Total funds under management or advice including external funds

under management, money market funds, funds managed on behalf

of M&G plc and internal funds under management or advice.

Free surplus

For insurance business, free surplus is generally based on (with

adjustments including recognition of certain intangibles and other

assets that may be inadmissible on a regulatory basis) the excess of

the regulatory basis net assets (TEV total net worth) over the TEV

capital required to support the covered business. Adjustments are also

made to enable free surplus to be a better measure of shareholders'

resources available for distribution. For asset management and other

non-insurance operations (including the Group’s central operations),

free surplus is taken to be IFRS shareholders’ equity, net of goodwill

attributable to shareholders, with central Group debt recorded as free

surplus to the extent that it is classified as capital resources under the

Group’s capital regime.

Free surplus excluding distribution rights and other

intangibles

This measure of free surplus (see above) excludes intangible assets

representing rights under distribution contracts and other intangibles.


	400 Prudential plc Annual Report 2025


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Glossary continued

Free surplus ratio

Free surplus ratio is defined as the sum of Group free surplus,

excluding distribution rights and other intangibles, and the TEV

required capital of the life business, divided by the TEV required

capital of the life business. Group free surplus, excluding distribution

rights and other intangibles, consists of the free surplus of the

insurance business combined with the free surplus of asset

management and other non-insurance operations, as defined above

and shown in the Movement in free surplus table within the TEV basis

results. Group total free surplus forms part of the TEV shareholders'

equity as set out in the TEV basis results.

TEV shareholders' equity is reconciled to IFRS shareholders' equity in

note II(viii) of the Additional financial information. Given the

differing basis of preparation for the IFRS and TEV results, individual

TEV and IFRS line items are not directly comparable.

Group net operating free surplus generated

‘Group operating free surplus generated from insurance and asset

management business’ net of investment in new business, less central

costs, eliminations and restructuring costs, net of tax.

Group TEV

Group TEV equity, excluding goodwill attributable to equity holders.

Group TEV equity

Shareholders' equity prepared in accordance with the TEV

methodology.

See note II(viii) of the Additional unaudited financial information for

reconciliation to IFRS shareholders' equity.

Group TEV equity per share

Group TEV equity per share is calculated as Group TEV equity divided

by the number of issued shares at the end of the period. See TEV

basis results for calculation.

Group TEV per share

Group TEV per share is calculated as Group TEV divided by the

number of issued shares at the end of the period. See TEV basis

results for calculation.

Group funds under management

Represents all assets managed or administered by or on behalf of the

Group, including those assets managed by third parties. Assets under

management include managed assets that are included within the

Group’s statement of financial position and those assets belonging to

external clients outside the Prudential Group, which are therefore not

included in the Group’s statement of financial position. A

reconciliation to this measure from investments shown in the Group

balance sheet is given in note I(iii) of the Additional unaudited

financial information.

Group leverage ratio (Moody's basis)

Leverage measure calculated as the Group gross debt, including

commercial paper, as a proportion of the sum of IFRS shareholders’

equity, 50 per cent of the surplus in the Group’s with-profit funds, 50

per cent of the CSM and the Group's gross debt including commercial

paper.

Group operating free surplus generated from in-force

insurance and asset management business (or Gross OFSG)

Operating free surplus is the financial metric the Group uses to

measure the internal cash generation of our business operations and

is generally based on (with adjustments) the capital regimes that

apply locally in the various jurisdictions in which the Group operates.

Operating free surplus generated from in-force insurance business

represents amounts emerging from the in-force business during the

year before deducting amounts reinvested in writing new business

and excludes restructuring costs and non-operating items. For asset

management businesses, it equates to post-tax IFRS adjusted

operating profit for the period. Central costs are excluded from this

amount.

Group operating free surplus generated from insurance and

asset management business

Equates to 'Group operating free surplus generated from in-force

insurance and asset management business' net of investment in new

business for the life business.

GWS capital surplus over GPCR

Estimated GWS capital resources in excess of the GPCR before

allowing for the 2025 second interim dividend. GWS capital surplus is

determined on a shareholder basis and a total Group basis as

described in note I(i) of the additional information.

Health new business profit

New business profit from health products (see definition below).

Health products

Health products comprise health and personal accident insurance

products, which provide morbidity or sickness benefits and include

health, disability, critical illness and accident coverage. These typically

are annually renewable and would involve diagnosis and treatment

from licensed physicians/medical facilities. Critical illness products

paying lump sum benefits are not in scope.

IFRS shareholders' equity per share

IFRS shareholders’ equity per share is calculated as closing IFRS

shareholders’ equity divided by the number of issued shares at the

end of the period.

See note II(iv) of the Additional unaudited financial information for

calculation.

Life-weighted premium income

Represents the sum of APE sales plus renewal insurance premiums,

which represents premiums paid on regular premium products,

subsequent to the first-year premium.

See note II (vi) of the Additional unaudited financial information for

further details.

Net cash remitted by business units

Net cash amounts remitted by businesses are included in the holding

company cash flow. This comprises dividends and other transfers

from businesses, net of capital injections, that are reflective of

earnings and capital generation.

Net zero

A state in which greenhouse gas emissions from activities in the value

chain of an organisation are reduced as close to zero as possible, with

any residual emissions balanced by removals from the atmosphere, in

a time frame consistent with the Paris Agreement. Our ambition is

that the assets we hold on behalf of our insurance companies will be

net zero by 2050.

New business profit (NBP)

Presented on a post-tax basis, on business sold in the year, calculated

in accordance with Group TEV methodology.

New business profit is reconciled to IFRS new business CSM in note

II(vii) of the Additional unaudited financial information.

New business margin on APE (%)

New business profit divided by APE sales over the same period.

New business margin on PVNBP (%)

New business profit divided by PVNBP sales over the same period.


	401 Prudential plc Annual Report 2025

New business profit per active agent

Average monthly 'agency new business profit' divided by the

'average monthly active agents' for the relevant period. Includes 100

per cent of new business profit and active agents in joint ventures and

associates.

New to bancassurance customers from strategic partners

The number of customers who hold at least one insurance policy of

any type (including either Individual or Group policies as Life Assured)

sold by our strategic bank partners (excluding partners of joint

ventures and associates and our strategic partner in Cambodia and

Laos) at the end of the measurement period, but do not hold any

insurance policies sold by our relevant strategic bank partners at the

beginning of the measurement period. The measurement period is

the current period of the report.

Operating return on embedded value

Calculated as TEV operating profit net of non-controlling interests

divided by the opening Group TEV excluding intangibles.

See note II(ix) of the Additional unaudited financial information for

the calculation.

Operating return on IFRS shareholders’ equity

Calculated as adjusted operating profit, net of tax and non-

controlling interests, divided by the average IFRS shareholders’ equity.

See note II(iii) of the Additional unaudited financial information for

the calculation.

Present value new business premiums (PVNBP)

Calculated as the aggregate of single premiums and the present

value of expected future premiums from regular premium new

business, allowing for lapses and the other assumptions made in

determining the TEV new business profit.

Proportion of new business-processing through auto-

underwriting

The number of new business application submissions subject to

automatic and real-time assessment of underwriting decisions based

upon set rules, providing policy underwriting decision without manual

intervention, divided by the total number of new business application

submissions for the reporting period.

Shareholder GWS coverage ratio over GPCR (%)

Estimated ratio of capital resources (as measured under the GWS

framework) over GPCR attributable to the shareholder business,

before allowing for the 2025 second interim dividend.

TEV operating profit

TEV operating profit is profit after tax calculated under the Group's

TEV methodology, as described in notes 6 and 7 of the TEV basis

results, excluding short-term fluctuations caused by changes in

interest rates and other market movements, the effect of changes in

economic assumptions and the impact of corporate transactions, if

any, undertaken in the period. It also excludes the mark-to-market

value movements on core structural borrowings for shareholder-

financed operations.

Tier 1 capital resources

Tier 1 capital in accordance with the classification of tiering capital

under the GWS Framework, which reflects the different local

regulatory regimes along with guidance issued by the Hong Kong IA.

This is considered to be the highest quality capital.

Tier 2 Capital resources

Tier 2 capital in accordance with the classification of tiering capital

under the GWS Framework, which reflects the different local

regulatory regimes along with guidance issued by the Hong Kong IA.

This tends to be additional capital, such as subordinated debt, that

can absorb losses but is less secure than Tier 1.

Total GWS coverage ratio over GPCR (%)

Estimated ratio of capital resources (as measured under the GWS

framework) over GPCR attributable to both the shareholder and

policyholder business, before allowing for the 2024 second interim

dividend.

Traditional embedded value (TEV)

Financial results that are prepared on a supplementary basis to the

Group’s IFRS results and are a way of measuring the current value to

shareholders of the future profits from life business written based on

a set of assumptions.

Weighted average carbon intensity (WACI)

Reflects a portfolio’s exposure to carbon-intensive companies,

expressed in tCO2e/$m revenue. The WACI is currently the market

standard for measuring the carbon footprint of an investment

portfolio, as described by global disclosure frameworks.

Basis for strategic objectives

New business profit growth objective

Our new business growth objective assumes average exchange rates

of 2022, and is based on regulatory and solvency regimes applicable

across the Group at the time the objective was set. It has been

updated from the previous EEV methodology to the existing TEV and

free surplus methodology applied to both 2024 and 2025 TEV results

and assumes this will be applicable over the period, with no material

changes to the economic assumptions.

Operating free surplus generated from in-force insurance

and asset management business growth objective

Our operating free surplus generated from in-force insurance and

asset management business growth objective assumes average

exchange rates of 2022 and is based on regulatory and solvency

regimes applicable across the Group at the time the objectives was

set. It has been updated from the previous free surplus methodology

to the existing TEV and free surplus methodology applied to both

2024 and 2025 TEV results and assumes this will be applicable over

the period, with no material changes to the economic assumptions.


	402 Prudential plc Annual Report 2025


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Glossary continued

Other definitions

Actual exchange rates (AER)

Actual historical exchange rates for the specific accounting period,

being the average rates over the year for the income statement and

the closing rates at the balance sheet date for the statement of

financial position.

Alternative performance measures (APMs)

APMs are non-GAAP measures used by the Prudential Group within its

annual reports to supplement disclosures prepared in accordance with

widely accepted guideline and principles established by accounting

standard setters, such as International Financial Reporting Standards.

These measures provide useful information to enhance the

understanding of the Group’s financial performance.

A reconciliation of these APMs to IFRS metrics is provided in note II of

the Additional unaudited financial information section of the annual

report.

American Depositary Receipts (ADRs)

The stocks of most foreign companies that trade in the US markets

are traded as American Depositary Receipts (ADRs). US depositary

banks issue these stocks. Each ADR represents one or more shares of

foreign stock or a fraction of a share. The price of an ADR corresponds

to the price of the foreign stock in its home market, adjusted to the

ratio of the ADRs to foreign company shares. Prudential’s ADRs are

backed by existing ordinary shares, which are held in custody, and

therefore do not constitute additional share capital. Each Prudential's

ADR represents two Prudential's ordinary shares.

Association of Southeast Asian Nations (ASEAN) markets

ASEAN markets include Prudential’s businesses in Indonesia,

Malaysia, Singapore, Thailand, Vietnam, the Philippines, Cambodia,

Laos and Myanmar.

Asset share

The accumulated value of premiums paid by a policyholder, adjusted

for investment returns, expenses, charges, and any bonuses or

benefits allocated over time. Asset share represents the notional

amount attributed to a policy within a participating or with-profits

fund and is often used to determine payouts such as surrender values

or maturity benefits.

Assets under management

Assets under management represent all assets managed or

administered by or on behalf of the Group, including those assets

managed by third parties. Assets under management include

managed assets that are included within the Group’s statement of

financial position and those assets belonging to external clients

outside the Prudential Group, which are therefore not included in the

Group’s statement of financial position.

These are also referred to as ‘funds under management’.

Bancassurance

An agreement with a bank to offer insurance and investment

products to the bank’s customers.

Best estimate assumptions

Best estimate assumptions are assumptions that represent the

expected mean outcome across a range of future possible outcomes.

Such assumptions may be used for mortality, morbidity, persistency,

expenses, and other relevant non-economic factors to project future

cash flows.

Best estimate liabilities (BEL)

The expected present value of future cash flows for a company’s

current insurance obligations, calculated using best estimate

assumptions, projected over the contract’s run-off period, taking into

account all up-to-date financial market and actuarial information.

Bonuses

Bonuses refer to the additional amounts added to participating life

insurance policies, over and above guaranteed benefits, and are the

way in which policyholders receive their share of the investment

returns and profits associated with the policies. These include regular

bonus and final bonus, and the rates may vary from period to period.

China Risk-Oriented Solvency System (C-ROSS)

A regulatory framework that governs the insurance industry in China

effective from 1 March 2021. The second phase of the C-ROSS (or C-

ROSS II) became effective in the first quarter of 2022.

Collective investment schemes (CIS)

A CIS is an investment fund where money from many investors is

pooled together and managed by a professional fund manager. The

fund invests in a range of assets, such as stocks, bonds, or property,

and each investor owns a share of the overall fund. This allows

individual investors to diversify their investments.

Constant exchange rates (CER)

Prudential plc reports its results at both AER to reflect actual results

and also CER to eliminate the impact from exchange translation. CER

results are calculated by translating prior year results using current

year foreign currency exchange rates, ie current period average rates

for the income statements and current period closing rate for the

statement of financial position.

Contract boundary

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.

Contractual service margin (CSM)

A liability for insurance contracts under IFRS 17 representing the

deferral of any day-one gains arising on initial recognition. Over time,

the CSM balance is released into profit in the income statement as

services are delivered by the Group under the insurance contracts.

Core structural borrowings

Borrowings which Prudential considers forming part of its core capital

structure and excludes operational borrowings.

Coverage unit

The proportion of CSM recognised in profit or loss under IFRS 17 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 is the quantity of service provided determined by

considering the quantity of benefits for each contract and its

expected coverage period.

Credit risk

The risk of loss if another party fails to meet its obligations or fails to

do so in a timely fashion.


	403 Prudential plc Annual Report 2025

Currency risk

The risk that asset or liability values, cash flows, income or expenses

will be affected by changes in exchange rates. Also referred to as

foreign exchange risk.

Discretionary participation features (DPF)

These represent a contractual right to receive, as a supplement to

guaranteed benefits, additional benefits that are likely to be a

significant portion of the total contractual benefits. The amount or

timing of the benefits is contractually at the discretion of the issuer

and the benefits are contractually based on asset, fund, company or

other entity performance.

Endowment product

A type of individual life insurance policy that combines protection and

savings. It provides a lump-sum benefit payable either on the

policyholder’s death during the term or at the end of a specified

period (maturity), whichever occurs first.

Fulfilment cash flows

Fulfilment cash flows under IFRS 17 comprise the best estimate of

the present value of the expected future cash flows within the

contract boundary that are expected to arise, together with an explicit

risk adjustment for non-financial risk. These cash flows represent the

amounts an entity expects to pay or receive to fulfil its obligations to

policyholders under IFRS 17.

Funds under management

See ‘assets under management’ above.

Group-wide Supervision (GWS) Framework

Regulatory framework developed by the Hong Kong Insurance

Authority (see below) for multinational insurance groups under its

supervision. The GWS Framework is based on a principle-based and

outcome-focused approach and allows the Hong Kong Insurance

Authority to exercise direct regulatory powers over the designated

holding companies of multinational insurance groups. The GWS

framework sets out a measure of capital for the Group as a whole, by

aggregating the capital measures of individual insurance businesses

and other regulated businesses, as well as the capital resources held

by Group holding companies.

Group Prescribed Capital Requirement (GPCR) / Group

Minimum Capital Requirement (GMCR)

The minimum amounts of capital (money or assets) that Prudential

must hold, as set by regulators, to ensure it can meet its obligations to

policyholders and remain financially healthy. GPCR is the higher, more

conservative requirement. GMCR is the absolute minimum.

Hong Kong Insurance Authority (IA)

The Hong Kong IA is an insurance regulatory body responsible for the

regulation and supervision of the Hong Kong insurance industry and is

the lead regulator of the Prudential plc Group.

Illiquidity premium

The illiquidity premium is the additional yield added to risk‑free rates

to reflect the fact that long-term insurance contract liabilities are

relatively illiquid, and therefore insurers can invest in less liquid,

higher‑yielding assets (typically corporate bonds) to back them. This

is calculated as the yield-to-maturity on a reference portfolio of assets

less the risk-free curve and an allowance for credit risk.

In-force

An insurance policy or contract reflected on records that has not

expired, matured or otherwise been surrendered or terminated.

International Association of Insurance Supervisors (IAIS)

The IAIS is a voluntary membership organisation of insurance

supervisors and regulators. It is the international standard-setting

body responsible for developing and assisting in the implementation

of principles, standards and other supporting material for the

supervision of the insurance sector.

International Financial Reporting Standards (IFRS

Standards)

Accounting standards and practices that are developed and issued by

the IFRS Foundation and the International Accounting Standards

Board (IASB).

Investment grade

Investments rated BBB- or above for S&P and Baa3 or above for

Moody’s. Generally, they are bonds that are judged by the rating

agency as having a strong capacity to meet financial commitments.

Investment-linked products or contracts

Insurance products where the surrender value of the policy is linked to

the value of underlying investments (such as collective investment

schemes, internal investment pools or other property) or fluctuations

in the value of underlying investment or indices. Investment risk

associated with the product is usually borne by the policyholder.

Insurance coverage, investment and administration services are

provided for which the charges are deducted from the investment

fund assets. Benefits payable will depend on the price of the units

prevailing at the time of surrender, death or the maturity of the

product, subject to surrender charges. These are also referred to as

unit-linked products or unit-linked contracts.

Key performance indicators (KPIs)

These are financial and non-financial metrics by which the

development, performance or position of the business can be

measured effectively. The Group regularly reviews its KPIs and

updates them where appropriate.

Lapse rate

A lapse rate measures the percentage of policies that stop being

active, usually due to the failure of the policyholder to pay the

required premium after the grace period.


	404 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Glossary continued

Liquidity coverage ratio (LCR)

Prudential calculates this as assets and resources available to us that

are readily convertible to cash to cover corporate obligations in a

prescribed stress scenario. We calculate this ratio over a range of time

horizons extending to 12 months.

Million Dollar Round Table (MDRT)

MDRT is a global, independent association of life insurance and

financial services professionals that recognises professional

knowledge, strict ethical conduct and outstanding client service.

MDRT membership is recognised internationally as the standard of

excellence in the life insurance and financial services business.

Money Market Fund (MMF)

An MMF is a type of ‘collective investment scheme’ that has relatively

low risks compared to other such funds and most other investments

and historically has had lower returns. MMF invests in high-quality,

short-term debt securities and pay dividends that generally reflect

short-term interest rates. The purpose of an MMF is to provide

investors with a safe place to store cash or as an alternative to

investing in the stock market.

Morbidity rate

The proportion of individuals in a given population who experience

sickness or disability during a specified period, often varying by such

parameters as age, gender and health. It is used in pricing and

computing liabilities for obligations to policyholders of health

products, which contain morbidity risks.

Mortality rate

The proportion of individuals in a given population who die during a

specified period, often varying by such parameters as age, gender

and health. It is used in pricing and computing liabilities for

obligations to policyholders of life and annuity products, which

contain mortality risks.

Negative reserves

When the calculated value of future insurance obligations is less than

zero (ie future premiums receipts are expected to exceed future claim

payments). Regulators may not allow these to be counted as assets in

full for local solvency reporting.

Net worth

Net assets for TEV reporting purposes that reflect the regulatory basis

position, with adjustments where necessary to achieve consistency

with the IFRS treatment of certain items or to better reflect the assets

that are available to be transferred to the shareholder.

Non-participating business

A life insurance policy where the policyholder is not entitled to a share

of the company’s profits and surplus, but receives certain guaranteed

benefits. Examples include pure risk policies (eg fixed annuities, term

insurance, critical illness) and unit-linked insurance contracts.

Onerous contracts

Under IFRS 17, an insurance contract is onerous at the date of initial

recognition if the fulfilment cash flows allocated to the contract,

including any previously recognised acquisition or other day one cash

flows, in total are a net outflow. Classification as onerous does not

necessarily mean the contract is not profitable overall as it does not

allow for all real-world investment returns that will be earned over

time.

A contract can also become onerous later if, after initial recognition,

its CSM is reduced to zero and updated assumptions or experience

cause the future fulfilment cash flows to become a net outflow.

Operational borrowings

Borrowings that arise in the normal course of the business, including

all lease liabilities under IFRS 16.

Own Risk and Solvency Assessment (ORSA)

A regular, company-wide self-assessment where Prudential reviews all

its risks and checks if it has enough capital to stay solvent (able to pay

its debts and policyholders), even in tough times. It is a regulatory

requirement which assists insurers in evaluating all reasonably

foreseeable risks that could affect their ability to meet obligations to

policyholders.

Participating funds

Distinct portfolios where the policyholders have a contractual right to

receive, at the discretion of the insurer, additional benefits based on

factors such as the performance of a pool of assets held within the

fund, as a supplement to any guaranteed benefits. The insurer may

either have discretion as to the timing of the allocation of those

benefits to participating policyholders or may have discretion as to

the timing and the amount of the additional benefits.

Participating policies, contracts or business

Contracts of insurance where the policyholders have a contractual

right to receive, at the discretion of the insurer, additional benefits

based on factors such as investment performance, as a supplement to

any guaranteed benefits.

Passive basis (or passive economic basis)

Passive economic assumptions are used for TEV. The underlying risk-

free rates and fund earned rates are set with reference to a long-term

view of the investment outlook.

Persistency

A measure of the policies remaining in force from period to period.

Regular premium product

A life insurance product with regular periodic premium payments.

Renewal or recurring premiums

Renewal or recurring premiums are the subsequent premiums that are

paid on regular premium products.

Rider

A supplemental plan that can be attached to a basic insurance policy,

typically with payment of additional premiums.

Risk adjustment

The risk adjustment for non-financial risk under IFRS 17 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. The risk adjustment is a

component of the insurance contract liability, and it is released as

profit if experience plays out as expected.


	405 Prudential plc Annual Report 2025

Risk-based capital (RBC) framework

A capital adequacy approach used by insurers and regulators that

determines the minimum amount of capital an insurer must hold

based on the size and nature of its risks. The framework assesses

exposure across key risk categories – such as underwriting, market,

credit, and operational risk – and applies risk-sensitive factors to

calculate required capital. Its purpose is to ensure that insurers

maintain sufficient financial resources to absorb potential losses and

protect policyholders, while promoting sound risk management and

solvency oversight.

Scrip Dividend

A dividend paid to shareholders in the form of new shares, rather than

cash. Shareholders can, if the option is available, choose to receive

extra shares instead of a cash payout.

Single premiums

Single premium policies of insurance are those that require only a

single lump sum payment from the policyholder.

Stochastic modelling techniques

Methods that use repeated simulations with random variations in key

inputs to estimate a range of possible future outcomes. These

techniques help assess uncertainty and risk by showing how financial

results might change under different scenarios, rather than relying on

a single forecast.

Subordinated debt

A fixed interest issue or debt that ranks below other debt in order of

priority for repayment if the issuer is liquidated. Holders are

compensated for the added risk through higher rates of interest.

Surrender

The termination of a life insurance policy or annuity contract at the

request of the policyholder.

Surrender charge

The fee charged to a policyholder when a life insurance policy or

annuity contract is surrendered for its surrender value prior to the end

of the surrender charge period.

Surrender value

The cash received, if any, by the policyholder upon termination of a

life insurance policy or annuity contract at the request of the

policyholder.

Total shareholder return (TSR)

TSR is the total return to shareholders over a period, expressed as a

percentage and provides a measure of overall value creation.

It comprises the growth in the value of a share plus the value of

dividends paid, assuming that the dividends are reinvested in the

Company’s shares on the ex‑dividend date.

Unit-linked products or unit-linked contracts

See ‘investment-linked products or contracts’ above.

Universal life

An insurance product where the customer pays flexible premiums,

subject to specified limits, which are accumulated in an account and

are credited with interest (at a rate either set by the insurer or

reflecting returns on a pool of matching assets). The customer may

vary the death benefit and the contract may permit the customer to

withdraw the account balance, typically subject to a surrender charge.

Value of in-force business (VIF)

The present value of future net shareholder cash flows projected to

arise from the assets and liabilities of in-force life insurance contracts.

Whole life contracts

A type of life insurance policy 'that provides lifetime protection'

commonly used for estate planning purposes. Premiums must usually

be paid for life and the sum assured is paid out whenever death

occurs.

With-profits contracts or with-profits funds

For Prudential, the most significant with-profits contracts are written

in separate funds within Hong Kong, Malaysia and Singapore.

See also ‘participating policies, contracts or business’ and

‘participating funds’ above.

Yield curve

A line graph that shows the relative yields on debt over a range of

maturities typically from three months to 30 years. Investors, analysts

and economists use yield curves to evaluate bond markets and

interest rate expectations.


	406 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Shareholder information

Communication with shareholders

The Group maintains a corporate website containing a wide range of

information relevant for private and institutional investors, including

the Group’s financial calendar: www.prudentialplc.com

Shareholder meetings

The 2026 Annual General Meeting (AGM) will be held as a hybrid

meeting in Hong Kong on Thursday 28 May 2026 at 16:00 Hong

Kong/Singapore time (09:00 BST). We would encourage all

shareholders to participate in the AGM (an option to link digitally to

the meeting will be provided, which will enable full participation by all

shareholders). The 2026 AGM notice will provide more details on

meeting arrangements and how to participate.

Prudential will continue its practice of calling a poll on all resolutions

and the voting results, including all proxies lodged prior to the

meeting, are published on the Company’s website after the meeting.

Shareholders were able to attend the 2025 AGM in person or digitally,

where they were able to view a live video feed, submit voting

instructions and ask direct questions of the Board. Details of the 2025

AGM, including the voting results, can be found on the Company’s

website at www.prudentialplc.com/en/investors/shareholder-centre/

annual-general-meetings/#2026-tab. In accordance with relevant

legislation, shareholders holding 5 per cent or more of the fully paid

up issued share capital are able to require the Directors to hold a

general meeting. Written shareholder requests should be addressed to

the Company Secretary at the registered office.

Company constitution

Prudential is governed by the Companies Act 2006, other applicable

legislation and regulations, and provisions in its Articles of Association

(Articles). Any change to the Articles must be approved by special

resolution of the shareholders. There were no changes to the

constitutional documents in 2025. The current Memorandum

and Articles are available on the Company’s website.

Issued share capital

The issued share capital as at 31 December 2025 consisted of

2,548,213,779 (2024: 2,657,521,888) ordinary shares of 5 pence

each, all fully paid up and listed on the London Stock Exchange and

the Hong Kong Stock Exchange. As at 31 December 2025, there were

32,368 (2024: 33,570) accounts on the register. Further information

can be found in note C8 on page 316.

Prudential also maintains secondary listings on the New York Stock

Exchange (in the form of American Depositary Receipts, which

evidence ordinary shares) and the Singapore Stock Exchange.

Prudential has maintained a sufficiency of public float throughout the

reporting period as required by the Hong Kong Listing Rules.

Major shareholders

The table below shows the voting rights held by major shareholders in

the Company’s issued ordinary share capital, as at 31 December

2025, as notified and disclosed to the Company in accordance with

the Disclosure Guidance and Transparency Rules.


As at 31 December 2025	% of total voting rights
BlackRock, Inc	6.86%
Norges Bank	3.97%

In March 2026, Norges Bank notified Prudential that its voting rights

had increased to 4.02% of the Company's issued share capital.

Rights and obligations

The rights and obligations attaching to the Company’s shares are set

out in full in the Articles. There are currently no voting restrictions on

the ordinary shares, all of which are fully paid, and each share carries

one vote on a poll. If votes are cast on a show of hands, each

shareholder present in person or by proxy, or in the case of a

corporation, each of its duly authorised corporate representatives, has

one vote except that if a proxy is appointed by more than one

member, the proxy has one vote for and one vote against if instructed

by one or more members to vote for the resolution and by one or

more members to vote against the resolution. Where, under an

employee share plan, participants are the beneficial owners of the

shares but not the registered owners, the voting rights are normally

exercisable by the trustee on behalf of the beneficial owners in

accordance with the relevant plan rules. The trustees would not

usually vote on any unallocated shares held in trust but they may do

so at their discretion provided it would be in the best interests of the

beneficiaries of the trust and permitted under the relevant trust deed.

As at 17 March 2026, the trustees held 0.62 per cent of the issued

share capital under various share plans in operation. Rights to

dividends under Prudential’s share plans are set out on pages 204 to

243.

Analysis of shareholder accounts as at 31 December 2025


Balance ranges	Total number of holdings	Percentage of holders	Total number of shares	Percentage of issued capital
1–1,000	22,964	70.94	5,361,888	0.21
1,001–5,000	6,524	20.16	14,401,250	0.57
5,001–10,000	1,063	3.28	7,359,247	0.29
10,001–100,000	1,041	3.22	32,393,104	1.27
100,001–500,000	402	1.24	95,165,945	3.73
500,001–1,000,000	114	0.35	78,947,845	3.1
1,000,001 upwards	261	0.81	2,314,584,500	90.83
Totals	32,369		2,548,213,779

The analysis includes the shares held on the HK branch register and the shares representing American Depository Receipts (ADRs).


	407 Prudential plc Annual Report 2025

Restrictions on transfer

In accordance with English company law, shares may be transferred

by an instrument of transfer or through an electronic system

(currently CREST) and any transfer is not restricted except that the

Directors may, in certain circumstances, refuse to register transfers of

shares but only if such refusal does not prevent dealings in the shares

from taking place on an open and proper basis. If the Directors make

use of that power, they must send the transferee notice of the refusal

within two months. Certain restrictions may be imposed from time to

time by applicable laws and regulations (for example, insider trading

laws) and pursuant to the UK Listing Rules and the Hong Kong Listing

Rules, as well as under the rules of some of the Group’s employee

share plans.

All Directors are required to hold a minimum number of shares under

guidelines approved by the Board, which they are expected to retain

as described on page 225 of the Directors’ remuneration report.

Authority to issue shares

The Directors require authority from shareholders in relation to the

issue of shares. Whenever shares are issued, these must be offered to

existing shareholders pro rata to their holdings unless the Directors

have been given authority by shareholders to issue shares without

offering them first to existing shareholders. Prudential seeks authority

from its shareholders on an annual basis to issue shares up to a

maximum amount, of which a defined number may be issued without

pre-emption.

Disapplication of statutory pre-emption procedures is also sought

for rights issues. The existing authorities to issue shares, and to do

so without observing pre-emption rights, are due to expire at the end

of this year’s AGM. Relevant resolutions to authorise share capital

issuances will be put to shareholders at the AGM on 28 May 2025.

Details of shares issued during 2025 and 2024 are given in note C8

on page 316.

Authority to purchase own shares

The Directors also require authority from shareholders in relation to

the purchase of the Company’s own shares. Prudential seeks

authority by special resolution on an annual basis for the buyback of

its own shares in accordance with the relevant provisions of the

Companies Act 2006 and related guidance.

The authority is due to expire at the end of this year’s AGM and a

special resolution to renew the authority will be put to shareholders at

the AGM on 28 May 2026.

Share buyback programme

On 23 June 2024, Prudential announced a US$2 billion share buyback

programme to return capital to shareholders, to be completed by no

later than mid-2026. The first tranche completed in 2024.

On 5 December 2024, Prudential announced the second tranche of its

US$2 billion share buyback programme for US$800 million. This

programme commenced on 5 December 2024 and completed on 26

June 2025. A total of 83,175,466 ordinary shares were repurchased

on London trading venues. All shares were cancelled.

On 1 July 2025, Prudential announced the third tranche of its US$2

billion share buyback programme for US$500 million. This

programme commenced on 1 July 2025 and completed on 23

December 2025. A total of 36,881,649 ordinary shares were

repurchased on London trading venues. All shares were cancelled.

On 15 December 2025, Prudential announced a share purchase

programme to reduce the issued share capital of the Company to

offset dilution from shares issued under the scrip dividend alternative

in respect of the 2024 second interim dividend and the 2025 first

interim dividend. This programme commenced on 15 December and

completed on 22 December 2025. A total of 2,197,669 ordinary

shares were repurchased on London trading venues. All shares were

cancelled.

As at 31 December 2025, the total number of ordinary shares

repurchased during the year was 111,510,940, representing a

nominal value of £557,555. The shares repurchased represent

approximately 4% of the shares in issue.

A more detailed summary of these share purchase programmes is set

out in note C8 to the Group IFRS consolidated financial statements.


	408 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

Shareholder information continued

Dividend information


2025 second interim dividend	Shareholders registered on the UK register and Hong Kong branch register	Holders of American Depositary Receipts	Shareholders with ordinary shares standing to the credit of their CDP securities accounts
Ex-dividend date	26 March 2026	—	26 March 2026
Record date	27 March 2026	27 March 2026	27 March 2026
Payment date	13 May 2026	13 May 2026	On or around 20 May 2026

A number of dividend waivers are in place in respect of shares issued

but not allocated under the Group’s employee share plans. These

shares are held by the trustees and will, in due course, be used to

satisfy requirements under the Group’s employee share plans. The

dividends waived represent less than 1 per cent of the value of

dividends paid during the year.

Dividend mandates

UK Register

Shareholders holding shares on the main UK register should provide

their bank or building society details via www.investorcentre.co.uk (by

registering or logging into their Computershare account) in order to

receive cash dividends. The cash dividend will be paid directly into

shareholders’ bank or building society accounts.

Hong Kong Register

Shareholders holding shares on the Hong Kong branch register may

provide their bank account details for receiving dividend payments.

Any shareholders who have not provided valid bank details will be

issued with a cheque payment posted to the shareholder’s registered

address.

Shareholders on the UK and Hong Kong registers have the option to

elect to receive their dividend in US dollars instead of pounds sterling

or Hong Kong dollars, respectively.

More information may be found at www.prudentialplc.com/en/

investors/shareholder-centre/cash-dividend-and-currency-election/

Cash dividend alternative

Dividend Re-Investment Plan

Prudential offers a Dividend Reinvestment Plan (DRIP) to

shareholders on the UK register. Under the DRIP, shares are

purchased in the market using the cash dividends that would

otherwise have been paid to shareholders. The purchased shares are

then distributed to each electing shareholder in proportion to the

amount of their cash dividend receivable. The price paid for the

shares will only be known after all the shares have been purchased.

Further details of the DRIP and the terms and conditions of the

service are available at www.computershare.com/uk/individuals/im-a-

shareholder/dividend-reinvestment-plan

Scrip dividend

Prudential offers a scrip dividend alternative, which involves the

issuance of new ordinary shares on the Hong Kong line only.

Prudential will make available a share dealing facility to enable

shareholders who are not able to hold their shares on the Hong Kong

line to participate in the scrip dividend alternative. Further

information, including mandate forms, is available at

www.prudentialplc.com/en/investors/shareholder-centre/scrip-

dividend

Electronic communications

Shareholders are encouraged to elect to receive corporate

communications electronically. Using electronic communication will

save on printing and distribution costs and create environmental

benefits.

Shareholders on the UK register can elect to receive corporate

communications electronically by registering with Computershare UK

at www-uk.computershare.com/Investor. Shareholders who have

registered will be sent an email notification when corporate

communications are available on the Company’s website, and a link

will be provided to access that information. When registering,

shareholders will need their shareholder reference number, which can

be found on their share certificate. Please contact Computershare UK

if you require any assistance or further information.

Shareholders on the Hong Kong register can elect to receive corporate

communications electronically by registering with Computershare

Hong Kong. Shareholders who have registered will receive an email

notification when corporate communications are available on the

Company’s website. Please contact Computershare Hong Kong if you

require any assistance or further information.

The option to receive shareholder documents electronically is not

available to shareholders holding shares through The Central

Depository (Pte) Limited (CDP) in Singapore.

Managing your shareholding

Information on how to manage shareholdings on the UK register can

be found at www-uk.computershare.com/Investor

The pages at this web address provide the following:

– Answers to commonly asked questions regarding shareholder

registration;

– Links to downloadable forms and guidance notes; and

– A choice of contact methods – via email, telephone or post.

Share dealing services

Prudential’s UK registrar, Computershare, offers a dealing facility for

buying and selling Prudential plc ordinary shares. Details can be found

at www.computershare.com/dealing/uk

Should you have any questions regarding Computershare’s UK

dealing facility, please contact them on +44 (0)370 707 1507

between 8:30am and 5:30pm, Monday to Friday (excluding UK bank

holidays). You can also register or log into your Investor Centre

account at www-uk.computershare.com/Investor

ShareGift

Shareholders who have only a small number of shares, the value

of which makes them uneconomic to sell, may wish to consider

donating them to ShareGift (Registered Charity 1052686).

The relevant share transfer form may be downloaded from our

website at www.prudentialplc.com/en/investors/shareholder-

information/forms

Further information about ShareGift may be obtained on +44 (0)20

7930 3737 or from www.ShareGift.org


	409 Prudential plc Annual Report 2025

How to contact us

Shareholder enquiries

For enquiries about shareholdings, including dividends and lost share certificates, please contact the Company’s registrars:


Register	By post	By telephone
UK register	Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS13 8AE To access and manage your account online, please visit www- uk.computershare.com/Investor	Tel +44 (0)370 707 1507 Lines are open from 8.30am to 5.30pm (local time), Monday to Friday excluding bank holidays.
Hong Kong register	Computershare Hong Kong Investor Services Limited, 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong	Tel +852 2862 8555 Lines are open from 9.00am to 6.00pm (local time), Monday to Friday.
Singapore register	Shareholders who have shares standing to the credit of their securities accounts with the Central Depository (Pte) Limited (CDP) in Singapore may refer queries to the CDP. Enquiries regarding shares held in depository agent sub-accounts should be directed to your depository agent or broker.	Operating hours Monday to Friday: 8.30am to 5.00pm (local time) Email: asksgx@sgx.com Contact centre: +65 6535 7511
US American Depositary Receipts (ADRs)	Citibank Shareholder Services P.O. Box 43077, Providence RI 02940-3077, USA	Tel +1-877-248-4237 (toll free within the United States) or +1-781-575-4555 (for international callers) Email: citibank@shareholders- online.com


	410 Prudential plc Annual Report 2025


Strategic report	Governance	Directors' remuneration report	Financial statements	TEV basis results	Additional information

How to contact us continued continued

Prudential plc

Registered office

5th Floor

10 Old Bailey

London

EC4M 7NG

Tel +44 (0)20 7220 7588

www.prudentialplc.com

Principal place of business

13th Floor

One International Finance Centre

1 Harbour View Street

Central

Hong Kong

Tel +852 2918 6300

Media enquiries

Simon Kutner

Tel +44 (0)7581 023260

Email: Simon.Kutner@prudentialplc.com

Sonia Tsang

Tel +852 5580 7525

Email: Sonia.ok.tsang@prudential.com.hk


Board	Group Executive Committee
Shriti Vadera Chair Sir Douglas Flint Chair Designate Executive Director Anil Wadhwani Chief Executive Officer Independent Non-executive Directors Jeremy Anderson Senior Independent Director Arijit Basu Chua Sock Koong Guido Fürer Ming Lu George Sartorel Mark Saunders Claudia Suessmuth Dyckerhoff Jeanette Wong	Anil Wadhwani Chief Executive Officer Anette Bronder Chief Technology and Operations Officer Ben Bulmer Chief Financial Officer Catherine Chia Chief Human Resources Officer Avnish Kalra Chief Risk and Compliance Officer Rajeev Mittal Chief Executive Officer, Eastspring Investments Angel Ng Regional CEO, Great China, Group Customer, Wealth and Product Kenneth Rappold Chief Strategy and Transformation Officer Naveen Tahilyani Regional CEO, Indonesia, Malaysia, the Philippines, India, Africa; Group Agency and Health Dennis Tan Regional CEO, Singapore, Thailand, Vietnam, Cambodia, Laos, Myanmar; Group Partnership Distribution


Shareholder contacts
Institutional analyst and investor enquiries Tel +44 (0)20 3977 9720 (UK) Tel +852 2918 6348 (HK) Email: investor.relations@prudentialplc.com UK Register private shareholder enquiries Tel +44 (0)370 707 1507 Hong Kong Branch Register private shareholder enquiries Tel +852 2862 8555	US American Depositary Receipts holder enquiries Tel +1 877 248 4237 From outside the US: Tel +1 781 575 4555 Singapore: The Central Depository (Pte) Limited shareholder enquiries Tel +65 6535 7511


	411 Prudential plc Annual Report 2025

Forward-looking statements

This document contains 'forward-looking statements' with respect to certain of Prudential's (and its wholly and jointly owned businesses’)

current plans, goals and expectations relating to future financial condition, performance, results, strategy and objectives. Statements that are not

historical facts, including statements about Prudential's (and its wholly and jointly owned businesses’) beliefs and expectations and including,

without limitation, commitments, ambitions and targets, including those related to sustainability (including ESG and climate-related) matters,

and statements containing words such as 'may', 'will', 'prospects', 'goal', 'should', ‘could’, 'continue', 'aims', 'estimates', 'projects', 'believes',

'intends', 'expects', 'plans', ‘targets’, ‘commits’, 'seeks' and 'anticipates', and words of similar meaning and the negatives of such words, are

forward-looking statements. These statements are based on plans, assumptions, estimates and projections as at the time they are made, and

therefore undue reliance should not be placed on them. By their nature, all forward-looking statements involve risk and uncertainty.

A number of important factors could cause actual future financial conditions or performance or other indicated results to differ materially from

those indicated in any forward-looking statement. Such factors include, but are not limited to:

– current and future market conditions, including fluctuations in interest rates and exchange rates, sustained inflationary pressure (including

resulting interest rate increases), volatile or sustained high or low interest rate environments, the performance of financial and credit markets

generally and the impact of economic uncertainty, slowdown or contraction;

– the impact of global political uncertainties, geopolitical instability, armed conflicts and heightened geopolitical tension among major global

powers, including increased friction in cross-border trade and the exercise of laws, regulations and executive powers to restrict or control trade,

financial transactions, capital movements and/or investment, as well as related sanctions, trade restrictions, and other governmental or

regulatory measures, which may also impact policyholder behaviour and reduce product affordability;

– asset valuation impacts arising from the transition to a lower carbon economy;

– derivative instruments not effectively mitigating any exposures;

– the policies and actions of regulatory authorities, including, in particular, the policies and actions of the Hong Kong Insurance Authority, as

Prudential's Group-wide supervisor, as well as the degree and pace of regulatory changes and new government initiatives generally;

– the impact on Prudential of systemic risk and other group supervision policy standards adopted by the International Association of Insurance

Supervisors, given Prudential’s designation as an Internationally Active Insurance Group;

– the physical, social, morbidity/health and financial impacts of climate change and global health crises (including pandemics), as well as other

catastrophic events, both natural and human-made, which may impact Prudential's business, investments, operations and its duties owed to

customers;

– legal, policy and regulatory developments in response to climate change and broader sustainability-related issues, including the development

and interpretation of regulations, laws and standards relating to sustainability reporting, disclosures and product labelling (which may be

inconsistent across jurisdictions and give rise to conflicts of interpretation between national approaches, misrepresentation or compliance

risks) on the one hand, and those which may seek to limit the influence of sustainability considerations on the other;

– the collective ability of governments, policymakers, the Group, industry and other stakeholders to implement and adhere to commitments on

mitigation of climate change and broader sustainability-related issues effectively (including not appropriately considering the interests of all

Prudential’s stakeholders or failing to maintain high standards of corporate governance and responsible business practices);

– the impact of competition and rapid technological change, including the pace of innovation, adoption, and changing customer demands;

– the effect on Prudential's business and results from mortality and morbidity trends, lapse rates and policy renewal rates;

– the timing, impact and realisation of intended benefits, if any, and other uncertainties of future acquisitions or combinations within relevant

industries;

– the impact of internal transformation projects and other strategic actions failing to meet their objectives in a timely manner, or at all, or

adversely impacting the Group’s operations or employees;

– the availability and effectiveness of reinsurance for Prudential’s businesses;

– the risk that Prudential's operational resilience (or that of its suppliers and partners) may prove to be inadequate, including to prevent, respond

or recover from operational disruption arising from external events;

– disruption to the availability, confidentiality or integrity of Prudential's information technology, digital systems and data, including hardware

and software (or those of its affiliates, suppliers and service providers, and partners) including the risk of cyberattacks, other data, information

or security breaches and challenges in integrating AI tools and their related security and privacy considerations, which may result in financial

loss, business disruption and/or loss of customer services and data and harm to Prudential's reputation;

– the increased non-financial and financial risks and uncertainties associated with operating joint ventures with independent partners;

– the impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and other legislation

and regulations in the jurisdictions in which Prudential and its affiliates operate; and

– the impact of legal and regulatory actions, investigations and disputes.

These factors are not exhaustive. Prudential operates in a continually changing business environment with new risks emerging from time to time

that it may be unable to predict or that it currently does not expect to have a material adverse effect on its business. In addition, these and other

important factors may, for example, result in changes to assumptions used for determining results of operations or re-estimations of reserves for

future policy benefits. Further discussion of these and other important factors that could cause actual future financial conditions or performance

to differ, possibly materially, from those anticipated in Prudential's forward-looking statements can be found under the 'Risk Factors' heading of

this document.

Any forward-looking statements contained in this document speak only as of the date on which they are made or in the case of any document

incorporated by reference, the date of that document. Prudential expressly disclaims any obligation to update any of the forward-looking

statements contained in this document or any other forward-looking statements it may make, whether as a result of future events, new

information or otherwise, except as required pursuant to the UK's Public Offer and Admissions to Trading Regulations (2024), the UK Prospectus

Regulation Rules: Admission to Trading on a Regulated Market, the UK Listing Rules, the UK Disclosure Guidance and Transparency Rules, the

Hong Kong Listing Rules, the SGX-ST Listing Rules or other applicable laws and regulations. Unless expressly stated otherwise, no statement

contained or referred to in this document is intended to be a profit forecast or profit estimate.


204	Directors’ remuneration report
206	Annual statement from the Chair of Remuneration Committee
211	Remuneration at a glance
214	Annual report on remuneration
242	Additional remuneration disclosures

244	Financial statements
350	Traditional Embedded Value (TEV) basis results
374	Additional information
376	Index to the additional unaudited financial information
399	Glossary
406	Shareholder information
410	How to contact us
411	Forward-looking statements


Section		Page
I	Additional financial information	376
(i)	Group capital position	377
(ii)	Eastspring adjusted operating profit and funds under management or advice	381
(iii)	Group funds under management	382
(iv)	Holding company cash flow	383
(v)	Share schemes	384
(vi)	Selected historical financial information of Prudential	393

II	Calculation of alternative performance measures	396
(i)	Adjusted operating profit	396
(ii)	Adjusted total comprehensive equity	396
(iii)	Return on IFRS shareholders’ equity	396
(iv)	IFRS shareholders’ equity per share	396
(v)	Eastspring cost/income ratio	397
(vi)	Insurance premiums	397
(vii)	Reconciliation between TEV new business profit and IFRS new business CSM	397
(viii)	Reconciliation between TEV equity and IFRS shareholders’ equity	398
(ix)	Return on embedded value	398
(x)	Calculation of free surplus ratio	398