Prudential completes Taiwan transfer

LONDON, UK--(Marketwire - June 19, 2009) -

For immediate release Friday 19 June 2009

PRUDENTIAL PLC COMPLETES TRANSFER OF LEGACY AGENCY BOOK AND AGENCY

FORCE IN TAIWAN TO CHINA LIFE INSURANCE OF TAIWAN

Prudential plc ("Prudential") announces that it has completed the

transfer of the assets and liabilities of its agency distribution

business and its agency force in Taiwan to China Life Insurance

Company, Ltd of Taiwan ("China Life").

As a result of the transaction, which was announced on 20

February 2009 and received regulatory approval on 16 June, there will be a net increase in Prudential's Insurance Groups Directive (IGD) capital surplus of approximately GBP800 million. The Group's IGD capital surplus as announced on 14 May 2009 was estimated at GBP2.0 billion. With the completion of this agreement, the surplus would increase to GBP2.8 billion.

Prudential retains an important presence in the Taiwanese market

through its fast growing wholly owned subsidiary PCA Life Assurance

Company Ltd, which specialises in bank distribution through two

strategic partnerships with Standard Chartered Bank and E.Sun and also through its successful asset management operation PCA Securities Investment Trust Company Ltd. In addition, Prudential, as announced on February 20, has invested GBP45 million to purchase a 9.99 per cent stake in China Life. Prudential believes that these interests provide an excellent platform to create added value for the Group from Taiwan.

Tidjane Thiam, Group Chief Financial Officer says: "As a Group, we are focused on capital preservation and on profitable and capital efficient growth in all our markets. With the completion of

this transaction in Taiwan, our IGD surplus increases to GBP2.8 billion, a strong and robust position. Asia continues to present the Group with excellent profitable growth opportunities in the long term and Taiwan is a key market. We remain committed to expanding our life insurance business in Taiwan through bank distribution partnerships and the development of our asset management business in that market."