Prudential Plc – Everything you need to know
Prudential plc, 1 Angel Court, London EC2R 7AG, UK
$45,064 million (according to 2019 annual report)
| Size (employees)
| Global Locations
UK, China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam, Cambodia, USA, Ghana, Kenya, Uganda, Zambia, Nigeria
Life insurance, investment, consumer finance
| Key People
Group CEO: Michael Wells
About Prudential Plc
Prudential is an international life insurance and financial services firm that provides long-term savings and protection products to its customers, including life insurance, accident and health insurance, property and casualty insurance, and fixed and variable annuities. Its services include equity plans, personal and group pensions, mortgages, and deposit accounts.
Prudential is divided into four business units: Prudential Corporation Asia, Jackson National Life Insurance Company, Prudential Africa, and Eastspring Investments.
Prudential Corporation Asia has life insurance operations in Cambodia, China, Hong Kong, India, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. It provides a wide range of savings, protection, and investment products.
Jackson National Life Insurance Company provides retirement products, tools, and support for Americans. Meanwhile, Prudential Africa provides value-added insurance solutions to customers in eight countries in Africa.
Eastspring Investments manages assets on behalf of institutional and retail investors, operating in 11 Asian markets and distribution offices in Europe and the USA. It also provides investment solutions across a wide range of asset classes.
History of Prudential
Prudential was founded in May 1848 in London under the name “The Prudential Mutual Assurance Investment and Loan Association.” It was established to offer life insurance and loans to the middle class in the UK.
In 1854, Prudential launched an industrial department to sell industrial insurance to the working class. It also developed a system for providing insurance to the industrial sector based on door-to-door agents supported by actuarial tables, efficient administration, and sound investment. Over the years, the company has extended its products and services to various markets worldwide.
In 2009, Prudential launched Prudential Al-Wara’ Asset Management Berhad, its first dedicated Islamic asset-management business. In 2010, it partnered with United Overseas Bank Limited (UOB) to distribute its life insurance products through the bank’s branches across Indonesia, Singapore, and Thailand.
In 2012, Prudential launched Eastspring Investments, an asset management business. It entered the African life insurance industry by acquiring companies in Ghana and Kenya in 2014 and completed its demerger of M&G plc in 2019.
In 2020, Prudential acquired a bancassurance partnership in Thailand from FWD Group Ltd. in a US$753 million deal and established a joint venture asset management firm in Beijing.
Leadership at Prudential
Michael Wells – Group CEO
Wells joined Prudential in 1995 and became the chief operating officer and vice-chairman of Jackson in 2003. In 2011, he joined Prudential’s board of directors and became the president and chief executive officer of Jackson.
As the president and chief executive officer, Wells was responsible for the development of Jackson’s wide range of retirement solutions and was part of the teams that acquired and integrated a savings institute and two life companies.
Wells became the group chief executive officer in June 2015. In the role, he develops the company’s operational management on behalf of the board of directors. He also leads executive directors and senior executives in the management of the company’s day-to-day business.
Culture at Prudential
Chairman’s Challenge is Prudential’s international volunteering programme in which Prudential employees donate their time and skills to support global charity partners, including Junior Achievement, Plan International, and Help Age International.
In 2020, Chairman’s Challenge partnered with the Prudence Foundation to create a $2.5 million group-wide COVID-19 relief fund, which would be distributed worldwide to help charities and community projects in addressing the impacts of the pandemic.
Aside from the volunteering programme, Prudential has a community investment policy that requires its business units to develop and adopt a community investment strategy using the following standards:
- The strategy must focus on social and welfare, education, and cultural activities.
- The business unit must take into account the economic, cultural, and social needs and sensitivities of local communities.
- The business unit is allowed to use cash contributions, cash-in-kind contributions, or voluntary time commitment.
- The business unit must encourage its employees to become involved in community investment programmes.
- The business unit must ensure that its partnering charities and organisations comply with their legal duties.
- It is necessary to establish adequate safeguarding policies, measures, and procedures to protect employees, beneficiaries, and partners.
- Appropriate skills should be transferred to partnering charities and organisations to help expand their capabilities.
- The strategy should take into account its impact on Prudential’s reputation.
Prudential is also committed to addressing climate-related risks to develop long-term value for its customers, shareholders, and local communities.
In 2018, its greenhouse gas emissions from its occupied estate and company-owned vehicles decreased by 7% to 61,317 t CO2e (2017: 65,979 t CO2e), thanks to the group’s cleaner electricity generation and outsourcing of its UK data centres.