Our businesses and
their performance


Serving the savings, health and protection needs of the growing and increasingly affluent Asian middle class

Colleagues walking through the city

“Asian families have very clear financial
protection gaps and savings needs but these are
significantly underserved by the industry.

We have a responsibility to do a much better
job of reaching these people and providing
them with appropriate products and advice.”

Tony Wilkey
Chief Executive,
Prudential Corporation Asia

Tony Wilkey

Our strategy

Our strategy and operating principles: Asia

Prudential has built a well diversified Asian platform that matches our distribution and product strengths to each market’s long-term opportunities in the life sector, and maximises our asset-gathering capabilities in the region’s investment management industry.

Read more about our strategy

Performance highlights

  • Performance is on track to deliver the 2017 financial objectives
  • Continued delivery across key value creation metrics. On a constant exchange rate basis, new business profit up 28 per cent, total IFRS operating profits up 17 per cent and free surplus generation up 16 per cent
  • Agency headcount up 13 per cent; APE per active agent up 25 per cent
  • Strong growth from major bancassurance partners
  • More than 25 per cent of APE sales comes from products launched in past 24 months
  • Record third party net in-flows in Eastspring Investments

Visit the Prudential Corporation Asia website

New business profit1 £m

2011 2012 2013 2014 2015
811 982 1139 1162 1490

Total IFRS operating profit £m

  2011 2012 2013 2014 2015
774 924 1075 1140

*Gain on sale of China Life Insurance Company in Taiwan

Net cash remittances £m

2011 2012 2013 2014 2015
206 341 400 400 467

Eastspring Investments funds under management £bn

2011 2012 2013 2014 2015
50 58 60 77 89

Market overview

Asia’s economic transformation continues to generate material increases in personal wealth and drives significant demand for solutions to individuals’ financial planning needs. During 2015, macroeconomic and geopolitical turbulence continued to create some challenges but the long-term potential remains compelling.

The degree of state-sponsored financial provision for healthcare and other social services varies by market, but is typically very basic, and it is widely appreciated that the private sector has a very important complementary role. Protection gaps remain high and the regulators have tasked the industry with improving levels of financial literacy and addressing this issue. Consequently, the regulations governing the industry continue to evolve in largely positive ways with good outcomes for customers and shareholders.

There is a healthy competitive environment with a good mix of domestic, regional and international companies operating in the markets. However, barriers to entry remain high in terms of the availability of new licences, the need for significant capital investment and the challenges in building distribution scale and quality.

Given the low penetration rates of insurance and investment products we see considerable growth opportunities over the long term.

Open all

Favourable demographic and economic trends

Asia (excluding Japan) is leading the world in terms of GDP growth. In the period 2014 to 2020, it is expected to generate around US$7.0 trillion2 of new GDP, more than the US and the other advanced economies combined.

GDP growth in Prudential Corporation Asia’s markets US$trn


Growing middle class bn


Source: Based on IMF and includes China, Cambodia, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

More mortality cover US$trn


US$50trn Mortality protection gap

More health cover US$bn


US$161bn Gap in healthcare protection by 2020

Better use of savings


2x proportion of savings in cash higher than the US

Source: Based on Swiss Re report and includes Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam; BCG wealth 2015.

Strong demand for savings and protection products

As people move into the middle class, their increased wealth and higher income give them the opportunity to make financial plans for the first time. Typically the priority is to provide protection for their families and establish a regular savings plan through a life insurance policy.

Social welfare provisions vary by market in Asia but generally fall well below the levels people need to sustain their families’ lifestyle in the event of a personal tragedy such as the diagnosis of a critical illness. Also, while basic medical services may be provided by the state, there can be a high level of out-of-pocket expenses, creating demand for financial solutions to significantly improve an individual’s experience through access to private medical services. Therefore, critical illness and medical riders are popular additions to life insurance policies.

Traditionally, Asians would have relied on their children to provide for them in their retirement but with family sizes decreasing people are increasingly making their own financial provisions and life insurance policies are a popular part of a retirement plan.

Once the savings and protection solutions are in place there is the opportunity to invest. Single premium insurance policies are also important in more developed markets and it is likely that customers will increasingly seek access to different asset classes through mutual funds as their wealth grows and their financial needs become more sophisticated.

Evolving regulatory environment

Each Asian market has evolved its own regulatory regime depending on the heritage of the industry, experiences and developmental priorities.

Regulators across the region are generally keen to promote the growth of the life insurance industry as they appreciate the social utility of providing financial security to individuals, and the way insurers can channel unproductive cash savings into long-term investments in the economy. However, they are imposing higher standards on the industry and monitoring compliance more actively, with increasing focus on the quality of advice distributors provide and the suitability of the products offered. Although assessments of solvency can vary considerably market by market, there is increasing convergence on risk-based calculations.

What we do and how we do it

Although Prudential has been operating in Asia for over 90 years, we began building our regional business in earnest in 1994 with the establishment of Prudential Corporation Asia. Since then, Prudential Corporation Asia has entered new markets, added considerable agency scale and launched bank distribution, developed product capabilities – particularly unit-linked with protection – and built a customer-centric brand anchored on the tag line ‘Always Listening, Always Understanding’.

Today, Prudential Corporation Asia is focused on leveraging this platform to grow in a disciplined way for the benefit of our customers, shareholders and communities. Success is defined by metrics that ensure we deliver volume, value and good service.

Market participation

Each market is unique and our overarching regional strategy is very specifically tailored to the opportunities that reflect the many differences in each country, including its stage of economic development, cultural preferences, regulation, the competitive landscape and our own risk appetite.

Life insurance distribution

Prudential Corporation Asia is well positioned in terms of its scale and diversity of distribution. Over 500,000 agents produce around 60 per cent of sales, with the remainder mainly coming from bancassurance that includes exclusive agreements with Standard Chartered Bank, UOB and Thanachart. At the core of our distribution model is face-to-face interaction with customers that delivers high-quality, needs-based advice.


Our product portfolio is tailored to suit the savings and protection needs of customers in each market.

For example, in markets such as Indonesia and Malaysia there is a high demand for regular premium unit-linked policies that provide coverage for hospital and surgical and critical illnesses, combined with savings for items such as children’s education. In Hong Kong, there is high demand for participating products where the smoothed investment returns are particularly appealing as part of a broader financial plan.


Prudential Corporation Asia has over 14 million life insurance customers and over 22 million in-force policies. We actively monitor customer satisfaction levels across multiple indicators, but key statistics are the numbers of customers who keep their policies (our retention rate is over 90 per cent), and the number of customers who buy more policies from us (in 2015 more than 38 per cent of APE sales were from existing customers), reflecting the success of our advice-driven approach and that customers appreciate the value of the products we provide.

Innovations in service are also important to customer satisfaction. Some are technology based, such as e-submissions (up 35 per cent in 2015) and automated underwriting, but a key component is also innovation with the ‘human touch’ such as Singapore’s PRUhealthcare assist.

Asset management

Eastspring Investments, Prudential’s asset management business in Asia, manages investments for Prudential’s Asia, UK and US life companies and also has a broad base of third-party retail and institutional clients.

The asset mix is well balanced with 50 per cent equities, 43 per cent fixed income and 7 per cent money market. Around 54 per cent of funds have outperformed their benchmarks over a three-year period. Eastspring Investments has been building expertise in infrastructure, negotiated credit and quantitative investment capabilities.

Eastspring Investments funds under management £bn


Corporate social responsibility activities

Prudential is a committed member of the communities where we operate, and through the Prudence Foundation we drive social responsibility activities, with a focus on providing disaster relief, promoting financial literacy and children’s education.

During 2015, Prudential extended its highly successful children’s financial literacy programme, ‘Cha-Ching’ and launched the second stage of the SafeSteps programme, focusing on road safety with ambassador Michele Yeoh.

Read our Corporate responsibility review to find out more about these and other initiatives

Our customers in focus

A couple with a young boy

Shane from the Philippines has been a Prudential customer for five years, and holds a PRULink Exact Protector policy, with the additional optional riders Life Care Benefit, Personal Accident, Hospitalisation Income and Waiver of Total and Permanent Disability.

‘Last year, my father got hospitalised. We were devastated, not only emotionally but also financially, that my siblings and I had to chip in to make ends meet. To make things worse, I also needed money for my son’s tuition fee as the start of classes was fast approaching. We would have been in deep financial trouble if not for PRULink Exact Protector (PEP) 10, my life insurance with Pru Life. I was hesitant to get one at first, but these kinds of unforeseen events prove life insurance to be a vital investment for everyone – through the withdrawals PEP 10 allowed me to make, my father’s hospitalisation and my son’s tuition fee were both covered. Now, my dad is happily recovering, my son is enjoying learning at school, and I’m incredibly grateful to have gotten claims when I needed them the most.’

Launched in 2011, PRULink Exact Protector is an investment-linked life insurance plan that offers both insurance protection and savings, providing customers with peace of mind. An investment-linked plan, it allows customers to align their premium payments with their investment strategy and provides a choice of funds.9

A platform for growth

Asia population 3,302m

Prudential customers 14m

Prudential agents 500,000+

Prudential bancassurance branches 10,000

A trusted brand and market leader in Asia


Customers: Other, 11%; Banca, 30%; Agency, 59%
  • Proven multichannel model
  • Over 500,000 agents
  • Selling through over 10,000 bank branches


Customers: Linked, 23%; Protection, 26%; Savings, 51%
  • All season product solutions
  • >25% APE from new products3
  • Pioneering service proposition


  • We’ve been working in Asia since 1923
  • Top 3 position in nine out of
    the 12 life markets
  • Top decile brand awareness4

Asset management

  • Strong presence in Asia
  • Circa £90 billion funds under management
  • Operating in 10 major Asian markets5

Prudential Corporation Asia is a powerful franchise with a wide footprint in the right markets, established go-to market capabilities and superior brand strength.

Sweet spots map

‘Sweet spot’ middle-class population5 number of peoples

Prudential customer % of middle class6

2010: 291 million, 2020: 403m (increase of 112 million)

Indonesia (1)

Unmatched platform with scale and geographic reach

  • 371 agency offices in 152 cities
  • Largest agency force
  • Hi-tech agency training and licensing
  • ‘All-in-one’ product solution combines protection, investment and savings
  • Conventional and Takaful options
  • Value-add services such as 'PRUHospital Friends'


Singapore (1)

Professional agency complemented by a distinctive range of bank partners

  • Market-leading PruShield product drives customer acquisition
  • Number one for regular premium new business
  • Expanding high net worth segment


Hong Kong (3)

Resilient distribution platform

  • Leading insurer with scale in agency and bank distribution
  • 2014 saw 24 per cent increase in active manpower and a 24 per cent increase in productivity
  • Successful partnership with Standard Chartered Bank now in 17th year
  • Product innovations drive new customer acquisition and repeat sales


Malaysia (1)

Well positioned to capture emerging
opportunity in Bumi segment

  • Most productive agency7 in the industry
  • Pioneer in linked policies with riders for flexible savings and protection
  • Over 31 per cent7 market share of Takaful (Sharia compliant) life business


Philippines (2)

Rapidly scaling up distribution

  • More than doubled agency size in less than two years
  • Expanding across country
  • Improving efficiency – 80 per cent of policies now processed 'straight through'
  • Market leader in linked-with-protection policies


Vietnam (1)

Long-term industry leader

  • List


Thailand (9)

Excellent bancassurance platform

  • APE has grown 2.7 times since acquisition of Thanachart Life in 2013
  • Access to 800 branches nationwide with partners – Standard Chartered Bank, United Overseas Bank and Thanachart Bank



Prudential Corporation Asia is a powerful franchise with a wide footprint in the right markets, established go-to market capabilities and superior brand strength.



  1. Agency excluding India.
  2. Prudential estimates based on IMF data – October 2013.
  3. Based on products launched over the past 24 months.
  4. Top decile in five of seven countries in South-east Asia and Hong Kong.
  5. Prudential’s rank in insurance market by new business APE. Based on formal (competitors’ results releases, local regulators, insurance associations) and informal (industry exchange) market share data.
  6. Market penetration sourced from Swiss Re – based on insurance premiums as a percentage of GDP in 2014 (estimated).
  7. Source: based on Insurance Services Malaysia Berhad data as at 31 December 2015.
  8. Asset management operations.
  9. Any investors should note that the value of investments, and the income from them, will fluctuate, which will cause fund prices to fall as well as rise and they may not get back the original amount they invested. The customers’ circumstances and views are specific to them and should not be taken as a recommendation, advice or forecast.

Next page:

United States


Reporting tools

Save pages of the report
to download, print or email

View your pages


Your comments and ideas
help us to shape future reports
to suit your needs

Tell us your views