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			Prudential Corporation Asia 1999 was a year of significant progress for our Asian business, Prudential Corporation Asia (PCA). We added operations in three countries, and now operate in eleven. Our existing Asian operations had a very good year with total insurance and investment product sales of £871 million being four times higher than last year. New business achieved profit, which reflects the value added to the group from new insurance business, increased 61 per cent on 1998 to £90 million. Statutory operating profit before development costs for 1999 was up 17 per cent to £27 million; operating profit after development costs totalled £15 million. In 1999 we were granted a life licence in China and in December, signed a memorandum of understanding to undertake a life insurance partnership with China International Trust and Investment Corporation (CITIC) in Guangzhou. This will be the first Sino-British life insurance operation. With a population of seven million people in Guangzhou alone, this clearly represents a significant opportunity for us. During November we acquired a majority stake in a top ten life insurance company in Taiwan, giving us access to one of the region's major retail financial services markets. The company has been launched already as Prudential Taiwan and significant expansion plans are being put into place. Within Hong Kong we have entered into a joint venture agreement with Bank of China to provide pension products to Hong Kong residents through the Mandatory Provident Fund - a compulsory pension scheme to be introduced later this year. In India, our joint venture unit trust company Prudential ICICI grew by 550 per cent, reaching £453 million funds under management as at 31 December 1999. It has rapidly become a market leader with a reputation for sound investment management, innovative products and excellent customer service. Prudential Vietnam was launched in November 1999. We are the first EU company to be operating in the new Vietnamese life market. Agency teams are already in place in Hanoi and Ho Chi Minh and the early signs are very encouraging. We continue to pioneer the introduction of unit linked products around the region and this year became the first company to launch regular premium unit linked products in Malaysia. We have also been at the forefront of new developments in distribution through our bancassurance partnership with Standard Chartered Bank in Hong Kong and Singapore. On the technology side, Prudential ICICI has been pioneering internet applications for its customers, including non resident Indians, who are now able to transact over the web. Prudential Singapore's website has been ranked best in the market as policyholders are able to check unit prices and access their policy details. We have also begun rolling out laptop software which enables customers to complete and sign proposal forms electronically. This is one of the world's first applications of digital signature technology. The management of our fund management operations, PPM Singapore and PPM Hong Kong, together with our new operation in Japan, are now more closely aligned to our Asian operations, reporting directly to Mark Tucker, Chief Executive of Prudential Corporation Asia.