SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
LAURENCE POUNTNEY HILL,
LONDON, EC4R 0HH, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-
Enclosures: China city licences
Embargo: 07.00 Wednesday 13 July 2005
CITIC Prudential becomes the leading foreign insurance company in China in terms
of city licences
Prudential's life insurance joint venture in China, CITIC Prudential Life, has
been awarded a further two city licences, taking its total to ten and making it
the largest foreign life insurer in the country in terms of licences.
These new licences will enable CITIC Prudential Life to sell its portfolio of
products, which include traditional life/term assurance and unit-linked life
policies as well as accident and health products in Nanjing and Shenzhen, with a
combined population of 12 million.
Mark Norbom, Chief Executive, Prudential Corporation Asia, said today:
"China is an extremely attractive market with compelling demographics. The two
new licences we have announced today give CITIC Prudential a significant
geographic lead over other foreign insurers in this growth market.
"Our strategy is to continue to expand geographically by acquiring further city
licences and to focus on building scale businesses through product innovation
and multi-channel distribution backed up by top-quality, cost-efficient
servicing."
The Chinese life insurance industry has experienced dramatic rates of growth in
recent years with life premiums growing on average by more than 37 per cent
between 1980 and 1997. Several factors suggest that the growth will continue:
- Life insurance penetration in China as a percentage of GDP is still only
2.3 per cent.
- Of the GBP21 billion market for Life Gross premiums that was recorded in
2004, foreign insurers accounted for approximately GBP544 million - around
3 per cent of the total.
CITIC Prudential was awarded its first city licence in October 2000. In
addition to the ten city licences, CITIC Prudential also has a licence to sell
group life insurance in China. In 2004 APE sales for CITIC-Prudential in China
increased by 70 per cent on the previous year and the company now employs more
than 8,000 staff and agents.
- ENDS -
Enquiries:
Media Investors / analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
Joanne Davidson 020 7548 3708 Marina Lee-Steere 020 7548 3511
Notes for Editors
1. Nanjing has a population of over 5.8 million and is situated 300 kilometres
west of Shanghai on the middle and lower reaches of the Yangtze River in the
economically significant Jiangsu province. In 2004 the city's GDP was GBP12.7
billion, an increase of around 17 per cent over the previous year.
2. Shenzhen has a population of approximately 6 million and is located in
Guangdong province, less than an hour by train from Hong Kong. Shenzhen is
China's first Special Economic Zone and has developed into the country's fastest
growing commercial centre. The city attracts more than one third of China's
total foreign direct investment. In 2004 the GDP of Shenzhen was GBP24 billion,
a 17.3 per cent increase from 2003.
About CITIC Prudential Life
CITIC Prudential Life combines Prudential's 150 years of industry experience
with CITIC's nationwide distribution network, excellent financial credentials
and in depth knowledge of the local market.
To expand its market share, CITIC Prudential has focused on understanding the
needs of Chinese consumers and developing a range of savings, protection and
investment products to meet these needs. The company offers both traditional
life/term assurance and unit-linked life products as well as a portfolio of
accident and health products, sold on their own or as supplements to life
policies.
CITIC Prudential has continued to build a presence in China since 2000.
City Province Date licence granted Launch Date
Guangzhou Guangdong April 2000 October 2000
Beijing Direct Administration Zone March 2003 August 2003
Suzhou Jiangsu March 2004 September 2004
Shanghai Direct Administration Zone November 2004 May 2005
Foshan Guangdong February 2005 March 2005
Dongguan Guangdong February 2005 March 2005
Wuhan Hubei March 2005 Q3 2005*
Zhongshan Guangdong April 2005 May 2005
Nanjing Jiangsu June 2005 Jul 2005
Shenzhen Guangdong June 2005 Jul 2005
* estimated launch date
About Prudential
Prudential plc is a leading international financial services group, providing
retail financial services and fund management in its chosen markets: the United
Kingdom, the United States, Asia and continental Europe.
Prudential has been writing life insurance in the United Kingdom for over 150
years and has had the largest long-term fund in the United Kingdom for over a
century. Today, Prudential has over 16 million customers worldwide and over
GBP187 billion (as of 31 December 2004) of funds under management.
In the United Kingdom Prudential is a leading life and pensions provider
offering a range of retail financial products. M&G is Prudential's UK &
European Fund Manager, with around GBP126 billion of funds under management.
Jackson National Life, acquired by Prudential in 1986, is a leading provider of
long-term savings and retirement products to retail and institutional customers
throughout the United States. Egg plc, in which Prudential has a 78 per cent
shareholding, provides banking, insurance and investment products through its
internet site www.egg.com.
Prudential is the leading European-based life insurer in Asia with operations in
12 countries.
*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has over US$340 billion
in assets under management, as at 31 December 2004. Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
About CITIC Group (China International Trust and Investment Corporation)
CITIC was established on October 4 1979 by Rong Yiren. The creation of CITIC was
initiated and approved by Deng Xiaoping, chief architect of China's reform.
CITIC is a window on the way China has opened to the outside world. Since its
inception, CITIC has always adhered to the principle of innovation. In line with
government laws, regulations and policies, CITIC has attracted and utilized
foreign capital, introduced advanced technologies, and adopted advanced and
scientific international practices in operations and management. CITIC has
established successful, strong performing businesses in many fields. As a
result, CITIC has made significant contributions to the country's reform and
opening up drive and has improved China's reputation both domestically and
abroad.
CITIC has grown into a large multinational conglomerate. It now owns 44
subsidiaries in countries including Hong Kong, the United States, Canada,
Australia and New Zealand. The company has also set up representative offices in
Tokyo, New York and Frankfurt. CITIC's core business ranges from financial
services to service industries. By the end of 2004, CITIC had total assets of
over RMB 701.6 billion (US$84 billion).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date 13 July 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Clare Staley
Head of Group Media Relations