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 June 2003
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: Prudential Europe News
Embargo: 0900 hours Friday 13 June 2003
Friday 13 June 2003
PRUDENTIAL EUROPE TO CEASE WRITING NEW INSURANCE BUSINESS IN FRANCE
Prudential Europe is to cease writing new insurance business in France. This
follows the conclusions of a review of Prudential-branded businesses in
Continental Europe and the sale of Prudential's German life business to Canada
Life in November 2002.
As a result, from 1 January 2004, Prudential will no longer sell Prudential
Europe Vie; a single premium savings product sold through local distribution
partners in France. Prudential will continue to administer existing policies and
provide customer support to policyholders in France.
Sales of Prudential Vie in France totalled GBP3.6 million on an APE basis in
2002 and APE sales in the first quarter of 2003 totalled GBP0.3 million.
Commenting on the announcement, Mark Wood, Chief Executive of Prudential UK &
Europe, said: "Last year we completed a review of our insurance business in
Continental Europe. At the time, we concluded that the returns achievable were
too low to justify any significant investment of capital. It was decided,
therefore, to run Prudential's existing operations in Continental Europe for
value but not push for growth.
We will continue to monitor European markets with focus particularly on the
investment environment and the returns available.
A subsequent review has shown that while Prudential Europe Vie was well received
in France, the difficult investment environment has led to reduced customer
demand for equity-based products, and as a result we have seen a marked
reduction in sales. We do not foresee any change in this environment in the near
future and therefore intend to cease selling new insurance business in France".
This announcement does not affect either Egg's operation in France or M&G's
operations in Continental Europe. Egg plc, the world's largest pure online bank,
launched its French business in November 2002 and recently announced its
intention to strengthen its investment in France. M&G, Prudential plc's European
fund management arm, has operations in Germany, Austria, Luxembourg, Italy and
the Netherlands, and is confident of the potential for further growth in these
markets.
-ENDS-
NOTES TO EDITORS:
1. Prudential Europe was formed in 1999, comprising both the manufacture and
distribution of Prudential branded products in France and Germany. Sales in
France began through Centre Francais du Patrimoine in 2001.
2. The Prudential Europe Vie unit-linked investment product is based on
Prudential UK's Prudence Bond and was designed at the time to take advantage
of the growing medium and long-term savings market in France. It is sold
through local distribution partners.
3. Prudential Europe's French operation employs 21 staff in France. We are
currently in consultation regarding the restructure of the French branch and
expect to have finalised plans by the end of June. 290 Dublin based
Prudential employees will continue to service Prudential International's
offshore business and existing Prudential Europe Vie policies as well as
providing a third-party administration service to St James' Place
International.
4. Egg plc is the world's largest pure online bank according to the May 2003
Nielsen/NetRatings Audience Measurement Data. It has achieved highly
encouraging levels of brand awareness and consideration in a remarkably
short time, and as at the end of March 2003 Egg France had a total of
108,000 customers. France remains an attractive market for Egg, with
approximately 9 million consumers within its target customer base.
5. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
Enquires to:
Media Investors/Analysts
Prudential UK & Europe Rebecca Burrows 020 7548 3537
James Murray 020 7150 2203 Laura Presland 020 7548 3511
Prudential Group
Clare Staley 020 7548 3719
Ben Forsyth 020 7548 3500
Website address:
www.prudential.co.uk
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 June 2003
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Steve Colton
Group Head of Media Relations