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Our business model

Creating shared value

Our trusted brands and strong distribution channels enable us to understand the growing needs of our customers for long-term savings and financial security, and to design innovative products that meet those needs. By helping to build better lives and stronger communities and to fuel the growth cycle, we create long-term value for both our customers and our shareholders.

Understanding our markets


  • Low life insurance and mutual fund penetration
  • Significant health and protection gap
  • Growing working age population
  • Increasing consumer affluence

Our businesses and their performance

United States

  • Retiring ‘baby boomer’ generation
  • Large and growing retirement asset pools
  • Growing demand for guaranteed income

Our businesses and their performance

United Kingdom

  • Ageing population
  • Large and growing retirement asset pools
  • Growing demand for savings and income

Our businesses and their performance

Driving our business


Customers are at the heart of our strategy. We proactively listen to both new and existing customers to understand and respond to their changing needs. This allows us to propose financial solutions customised for different groups, whether that is young and middle-aged people or those in retirement.


We offer solutions for customers as they face the biggest financial challenges of their lives. We consistently develop our product portfolio, designing it around our customers’ needs and providing them with peace of mind, whether that be in relation to saving for retirement or insuring against risks of illness, death or critical life events.


Distribution plays a key role in our ability to reach, attract and retain customers in different parts of the world. Building out and diversifying our distribution capabilities helps ensure that we fully capitalise on the opportunities available to us in each of our markets.

Investment for growth

We focus on strategic investment in long-term opportunities and capabilities to drive future growth and value for our stakeholders. We invest to improve relationships with our customers and distributors, to create innovative products, to improve our operating platforms, and to capture new opportunities and build new relationships.

Risk management

We generate value by selectively taking exposures to risks that are adequately rewarded and that can be appropriately quantified and managed. Balance sheet strength and proactive risk management enable us to make good our promises to our customers and create long-term value for our stakeholders.

Group Chief Risk Officer’s report

Creating value…


  • New business profit £3,088m +11%1 on 2015 (CER)
    +24% on 2015 (AER)

  • IFRS operating profit £4,256m –2%1 on 2015 (CER)
    +7% on 2015 (AER)

  • EEV value per share2 £1,510p +22% on 2015


  • Fee surplus generation £3,588m +10%3 on 2015 (CER)
    +18% on 2015 (AER)

  • Remittances £1,718m +6% on 2015


Solvency II surplus3,4 £12.5bn +29% on 2015

The Group has a number of key performance indicators internally to measure financial performance.

...for our stakeholders

We create financial benefits for our investors and deliver economic and social benefits for our customers, our employees and the societies in which we operate.


Providing financial security and wealth creation.

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Growing dividends and share price performance enhance shareholder value.

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Providing an environment with equal opportunities, career potential and rewards enables us to attract and retain high-quality individuals to deliver our strategy.

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Supporting societies where we operate, through investment in business and infrastructure, tax revenues and community support activities.

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  1. Excluding UK bulk annuities as Prudential has withdrawn from this market.
  2. Includes adjustment for opening EEV shareholders’ funds of negative £0.5 billion for the impact of Solvency II as at 1 January 2016.
  3. Estimated. Before allowing for second interim ordinary dividend.
  4. The Group Solvency II surplus represents the shareholder capital position excluding the contribution to Own Funds and the Solvency Capital Requirement from ring-fenced with-profits funds and staff pension schemes in surplus. The estimated solvency position includes the impact of recalculated transitionals at the valuation date, which has reduced the Group shareholder surplus from £12.9 billion to £12.5 billion. The formal Quantitative Reporting Templates (Solvency II regulatory templates) will include transitional measures without this recalculation.

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