07/20/2023 | Press release | Distributed by Public on 07/19/2023 22:17
20 Jul 2023
IFRS17 Briefing
Audited 2022 IFRS17 results in line with previous guidance
Prudential plc ("Prudential") is today holding an IFRS17 briefing for investors and analysts. A pre-recorded presentation and supporting materials are available on the Group's website. The Group's Chief Financial Officer, Ben Bulmer, will lead a Q&A session today at 4pm (Hong Kong time) / 9am (UK time).
The presentation explains how IFRS17 is applied to Prudential and reviews the Group's 2022 financial performance on an IFRS17 basis. It also introduces the IFRS17 accounting framework, which is effective from the 1st of January this year and will be the accounting basis for our first half 2023 results. The 2022 IFRS17 results, which have been audited, show that the Group's shareholders' equity on 1 January 2022, the date of transition, increased by $1.8 billion to $18.9 billion and 2022 adjusted operating profit fell by $653 million to $2,722 million. This is consistent with the preliminary guidance provided with the Group's 2022 results on 15 March 2023. At 31 December 2022, the Contractual Service Margin ('CSM') balance, part of insurance contract liabilities under IFRS17, was $20.0 billion1, representing a significant stock of future profit. New business written in 2022 added $2.1 billion to the CSM.
While IFRS17 is an important accounting change, resulting in changes to the timing of profit recognition compared with the previous IFRS4 approach, it does not change the total level of profit generated. As a result, it does not change the economics of our business. Our embedded value framework, which is linked to the Group's regulatory position and consequently future capital generation, is in our view more representative of shareholder value.
Under IFRS17, the release of the CSM is the main driver of adjusted operating profit and the new business added to the CSM will be an important factor in building CSM. Looking forward, we expect the compounding effect of the new business added to the CSM to support growth in IFRS17 adjusted operating profit, which remains a key performance measure for the Group.
As previously announced, we expect to announce the half year 2023 results on 30 August 2023.
Notes
1 Net of reinsurance, including joint ventures and associates.
Contact:
Media | Investors/analysts | ||
Simon Kutner | +44 (0)7581 023260 | Patrick Bowes | +852 9611 2981 |
Sonia Tsang | +852 5580 7525 | William Elderkin | +44 (0)20 3977 9215 |
Darwin Lam | +852 2918 6348 |
About Prudential plc
Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa. The business helps people get the most out of life, by making healthcare affordable and accessible and by promoting financial inclusion. Prudential protects people's wealth, helps them grow their assets, and empowers them to save for their goals. The business has dual primary listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU). It also has a secondary listing on the Singapore Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the form of American Depositary Receipts. It is a constituent of the Hang Seng Composite Index and is also included for trading in the Shenzhen-Hong Kong Stock Connect programme and Shanghai-Hong Kong Stock Connect programme.
Prudential is not affiliated in any manner with Prudential Financial, Inc. a company whose principal place of business is in the United States of America, nor with The Prudential Assurance Company Limited, a subsidiary of M&G plc, a company incorporated in the United Kingdom. https://www.prudentialplc.com/
We expect to release an update on the impact of IFRS17 on Prudential's 2022 results to the Hong Kong Stock Exchange and to the UK financial Media at 12.00pm HKT - 5.00am UKT - 12.00am ET on Thursday, 20 July 2023.
The announcement will be released on the London Stock Exchange at 2.00pm HKT - 7.00am UKT - 2.00am ET on Thursday, 20 July 2023.
A pre-recorded presentation for analysts and investors will be available on-demand from 12.00pm HKT - 5.00am UKT - 12.00am ET on Thursday, 20 July 2023 using the following link: https://www.investis-live.com/prudential/646b97c74170900d006eb195/ewfm. A copy of the script used in the recorded video and accompanying materials will also be available from 12.00pm HKT - 5.00am UKT - 12.00am ET on Thursday, 20 July 2023 on Prudential plc's website.
A Q&A call for analysts and investors will be held at 4.00pm HKT - 9.00am UKT - 4.00am ET on Thursday, 20 July.
Registration to join the Q&A event online
To register to join the event and submit questions online, please do so via the following link: https://www.investis-live.com/prudential/64a2ee019b8a600d0047bdff/opplk. The webcast will be available to watch afterwards using the same link.
Dial-in details
A dial-in facility will be available to listen to the event and ask questions: please allow 15 minutes ahead of the start time to join the call (lines open half an hour before the call is due to start, i.e. from 3.30pm HKT - 8.30am UKT - 3.30am ET).
Dial-in: +44 (0) 20 3936 2999 (UK and international) / 0800 358 1035 (Freephone UK), Participant access code: 390841. Once participants have entered this code their name and company details will be taken.
Transcript
Following the call a transcript will be published on the results centre page of Prudential's website on Wednesday, 26 July.
Playback facility
Please use the following for a playback facility: +44 (0) 20 3936 3001 (UK and international), replay code 450391. This will be available from approximately 7.00pm HKT - 12.00pm UKT - 7.00am ET on Thursday, 20 July until 6.59am HKT on Friday, 28 July - 11.59pm UKT - 6.59pm ET on Thursday, 27 July.
Forward-looking statements
This document contains 'forward-looking statements' with respect to certain of Prudential's (and its wholly and jointly owned businesses') plans and its 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 ESG, and statements containing the words 'may', 'will', 'should', 'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates', and words of similar meaning, are forward-looking statements. These statements are based on plans, 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 condition 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:
Any forward-looking statements contained in this document speak only as of the date on which they are made. 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 Prospectus Rules, 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.
Prudential may also make or disclose written and/or oral forward-looking statements in reports filed with or furnished to the US Securities and Exchange Commission, the UK Financial Conduct Authority, the Hong Kong Stock Exchange and other regulatory authorities, as well as in its annual report and accounts to shareholders, periodic financial reports to shareholders, proxy statements, offering circulars, registration statements, prospectuses, prospectus supplements, press releases and other written materials and in oral statements made by directors, officers or employees of Prudential to third parties, including financial analysts. All such forward-looking statements are qualified in their entirety by reference to the factors discussed under the 'Risk Factors' heading of Prudential's 2022 Annual Report and any subsequent filing Prudential makes with the US Securities and Exchange Commission, including any subsequent Annual Report on Form 20-F.
Cautionary statements
This document does not constitute or form part of any offer or invitation to purchase, acquire, subscribe for, sell, dispose of or issue, or any solicitation of any offer to purchase, acquire, subscribe for, sell or dispose of, any securities in any jurisdiction nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor.
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