Expanding into Northwest China to serve rising demand for protection and savings products

HONG KONG,CHINA - Media OutReach - 14January 2019 - CITIC-Prudential Life Insurance Company Limited ("CITIC-Prudential") hasreceived approval from the China Banking and Insurance Regulatory Commission("CBIRC") to begin preparatory work for the establishment of a new branch inShaanxi province -- the company's 20th branch in China. The expansion is part ofCITIC-Prudential's commitment to extend its footprint in China and serve theprotection and savings needs of millions of consumers in one of the country'smost prominent regions.

Nic Nicandrou, Chief Executive ofPrudential Corporation Asia and Chairman of CITIC-Prudential, said: "China iscentral to Prudential's growth strategy and represents our third-largest growthmarket in Asia. The rising middle class, ageing population and soaringhousehold wealth present tremendous opportunities for us to support the healthand protection needs of the population in China where many families are still un-insuredor under-insured." In the first nine months of 2018, health and protection solutionsaccounted for around 42% of the company's sales mix in China and grew 15% overthis period.

"Since entering Chinain 2000, CITIC-Prudential has seen strong annual double-digit, high qualitygrowth," Nicandrou continued. "The addition of the Shaanxi branch is amilestone because it allows us to better serve customers in Northwest China. Withour vast and growing network, we are well-placed to meet the evolving needs ofChinese consumers, leveraging not just our geographic reach but also innovationand digital technology with a human touch."

The province of Shaanxi is home to the ancient capital ofXi'an. Once an entry point to the Silk Road, the city has seen rapid social andeconomic development in recent years. With a population of 38 million, Shaanxiregistered GDP of RMB2.2 trillion[1] in 2017, an increase of 8% from the previous year. Theinsurance industry also enjoyed steady growth, recording RMB70 billion in totallife insurance premiums as of November 2018, a 12% increase from 2017, placingit 14^th among all provinces[2]. 

Sinceestablishing the first Sino-British insurance joint venture in China in 2000,CITIC-Prudential has built a comprehensive network[3] of 224 sales offices in 87cities in China with access to 78% of the country's gross domestic product(GDP). The company has 19 branches[3], closeto 40 bank partners[3] and an agency force of 48,0003 across the country.

LastNovember, Prudential plc's Asian asset management business, EastspringInvestments (Eastspring), announced the official opening of a full-serviceinvestment and distribution office in Shanghai, with the aim of serving theinvestment needs of high net worth individuals and institutional investors inChina. The new office complements Eastspring's existing joint-venture partnershipwith CITIC Group, CITIC-Prudential Fund Management Company, which focuses onthe retail market and was established in 2005.

Prudential'sgrowing footprint in China is well positioned to meet the fast growing andevolving health, protection and savings needs of consumers.

ABOUTPRUDENTIAL CORPORATION ASIA ("PCA")

PCA is a business unit ofPrudential plc* (United Kingdom), comprising its life insurance operations inAsia and its asset management business, Eastspring Investments. It isheadquartered in Hong Kong.

PCA is a leading life insurer thatspans 12 markets in Asia, covering Cambodia, China, Hong Kong, India,Indonesia, Laos, Malaysia, the Philippines, Singapore, Taiwan, Thailand andVietnam. Prudential has a robust multi-channel distribution platform providinga comprehensive range of protection, savings and investment products to meetthe diverse needs of Asian people.

Eastspring Investments managesassets on behalf of retail and institutional investors. It is one of theregion's largest asset managers, with a presence in 10 major Asian markets aswell as distribution offices in the US and Europe. It has £138 billion inassets under management (as at 30 June 2018) and provides investment solutionsacross a broad range of asset classes.

*Prudential plc is incorporated inEngland and Wales, and its affiliated companies constitute one of the world'sleading financial services groups. It provides insurance and financial servicesthrough its subsidiaries and affiliates throughout the world. It has been inexistence for 170 years and has £664 billion in assets under management (as at30 June 2018). Prudential plc is not affiliated in any manner with PrudentialFinancial, Inc, a company whose principal place of business is in the UnitedStates of America.

Prudential plc is listed on thestock exchanges of London (PRU.L), Hong Kong (2378.HK), Singapore (K6S.SG) andNew York (PUK.N).

ABOUT CITIC-PRUDENTIAL

Established in 2000, CITIC-Prudentialis the first Sino-British insurance joint venture in China and has maintained aleading position among foreign joint venture companies in the country. With thestrong support of its joint venture partners, Prudential and CITIC, CITIC-Prudentialhas grown rapidly over the years and currently has branches inGuangdong, Beijing, Jiangsu, Shanghai, Hubei, Shandong, Zhejiang, Tianjin,Guangxi, Shenzhen, Fujian, Hebei, Liaoning, Shanxi, Henan, Anhui, Sichuan,Suzhou and Hunan. While the company has identified the Pearl River Delta,Yangtze River Delta and the Bohai Economic Region as its pivotal developmentareas, it plans to continue its expansion into central and western Chinato achieve country-wide coverage. CITIC-Prudential has 48,000 agents, 5,300employees and over 1.3 million policyholders (as at 31 December 2018). Thecompany has won numerous awards and recognitions over the years, including the'2018 Top 10 Chinese Life Insurers' from the '2018 Asia InsuranceCompetitiveness Research Report' commissioned by 21st Century Business Herald.CITIC-Prudential was also ranked number one in the Solvency Aligned RiskManagement Requirements and Assessment (SARMRA) for 2017, conducted by theChina Insurance Regulatory Commission (CIRC).