(a) The results for the 1998 and 1997 half years are unaudited. The results for the 1997 full year have been derived from the Company’s statutory accounts. The auditors have reported on the 1997 statutory accounts and the accounts have been delivered to the Registrar of Companies. The auditors’ report was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.

(b) The results for the 1998 half year have been prepared using the same accounting policies as were used in the 1997 statutory accounts.

(c) The long-term business profit of the UK operations has been calculated assuming the shareholder proportion of The Prudential

Assurance Company Limited remains at 10%. Provision has been made for possible reductions in bonus rates arising from the fund valuation at 31 December 1998.

(d) The results exclude figures relating to Prudential Vita which was sold in November 1997.

(e) Operating profit includes realised and unrealised investment gains of general insurance and shareholders’ funds (including shareholder financed long-term business) on a five year averaged basis.

(f) The statutory tax charge comprised £65m (1997 £69m) UK tax and £62m (1997 £111m) overseas tax.

(g) See attached table

(h) Consistent with the recommendations included within the exposure draft of the proposed Statement of Recommended Practice on Accounting for Insurance Business issued by the Association of British Insurers in January 1998, it is intended that the method for recognition of investment return be altered in the financial statements for the year ending 31 December 1998. Under the new method, investment returns credited to operating results, for investments attributable to shareholders, in most cases will be determined using the longer-term rate of return. For UK equities, which represent the most significant element of the equity content of the relevant investments, the longer-term return (net of Advance Corporation Tax credits) has been taken to be 9.2%.