Prudential Bonus Declaration 2010

Prudential's With-Profits Fund has yet again delivered what we said it would - good annualised returns for our customers over the long-term. Our consistent approach to smoothing and bonus setting has served our policyholders well, protecting them from the full impact of volatile investment conditions while giving them the confidence of knowing that their savings are invested in a financially strong and well-managed Fund.

Over 2009 the investment return of the Fund for the year to 31 December 2009 has been strong at 15.7% net and 18.7% gross (before charges & the effects of smoothing), leading the way against our competitors.

We are pleased that for the year to 31 December 2009, the strength of the With-Profits Fund and the expertise of our Portfolio Management Group (PMG) has allowed it to produce strong growth in 2009 and that we have been able to share some of these returns with our policyholders. We continue to use the smoothing process to help reduce the impact of volatility of investment markets on policyholder returns. The last two years have demonstrated how this works. In 2009, some of the money held back from the better years softened the blow of the fall in stock markets in 2008. This was evidenced by smaller falls in policy values than the With-Profits Fund suffered for 2008. In 2010, policyholders will therefore not see their policy values increase by the full extent of the 2009 fund return.

Annual bonus rates have been set at 3% for most With-Profits Bonds and Personal Pension policies and 1.5% for PAC With-Profits Annuities.

Full information on our 2010 Bonus Declaration is available, including:

• 2010 Annual Bonus Rates
• Performance Figures
• Frequently Asked Questions
• Supporting Literature
• Historic Bonus Rates for 2008 & 2009