Prudential Announces Boost for Income Choice Annuity Awards

LONDON, October 29, 2010 - Prudential has announced that, at a time when rates on conventional
annuities have been falling, Prudential's innovative Income Choice Annuity is
bucking the trend with starting incomes being increased by 1.5 per cent.

Prudential has passed on a fall in guarantee costs for the product which
offers a secure minimum income for life as well as giving customers the
opportunity to benefit from potential growth.

The new pricing applies to quotes issued from 11th October and to all new
business where funds have been received from 11th October.

Prudential was able to increase starting costs after a calming of market
volatility and a review of risk-free rates meant the cost of providing
guarantees behind the Income Choice Annuity had fallen.

More than 12,000 customers have bought Prudential's Income Choice Annuity
since it was launched in March 2009. This innovative annuity gives customers
the flexibility to select the level of income they wish to receive, and
customers starting their annuity between 6 April 2009 and 5 April 2010 will
have seen their income grow by up to 6 per cent at their policy anniversary.

Vince Smith-Hughes, head of pensions development at Prudential, said:
"The cost of providing the guarantees underpinning our Income Choice Annuity
has fallen so we are able to pass that on to customers.

"The Income Choice Annuity has proven to be very popular with clients and
advisers since launch and we are committed to ensuring it remains as
competitive as possible in the current market."

Income Choice annuities (
www.pru.co.uk/pensions_annuities/our_annuities/) are available to
customers with GBP10,000 after tax-free cash has been taken and is backed by
Prudential's with-profits funds, one of the strongest funds in the UK, with
around GBP70 billion invested.

Initial commission can be either a fixed amount or a percentage of the
fund value after tax-free cash, up to a maximum of 3.5 per cent of funds
invested or, if higher, up to GBP500.

The annual commission, up to a maximum of 0.5 per cent of the original
fund after tax-free cash has been taken, is a level amount payable annually
starting in the first year until the death of the last survivor on the
policy.

The initial charge is GBP475, plus 0.6 per cent, plus charges to cover
the cost of commission, and the annual charge is expected to be 1.33 per cent
a year assuming investment returns in the with-profits fund are 7 per cent a
year.

Notes to Editors:

The information contained in Prudential UK's press releases is intended
solely for journalists and should not be used by consumers to make financial
decisions. Full consumer product information can be found at
www.pru.co.uk. Media enquiries

About Prudential:

"Prudential" is a trading name of The Prudential Assurance Company
Limited, which is registered in England and Wales. This name is also used by
other companies within the Prudential Group, which between them provide a
range of financial products including annuities, life assurance, bonds,
pension funds (www.pru.co.uk/pensions_annuities/prudential_pensions/),
investments (www.pru.co.uk/), a tax calculator and retirement plans
(www.pru.co.uk/pensions_annuities/). Registered Office at Laurence
Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and
regulated by the Financial Services Authority.

    PR Contact:

    Jonathan Akerman
    PR Manager
    Prudential
    3 Sheldon Square
    London
    W2 6PR
    +44(0)20-7150-3177
    www.pru.co.uk

PR Contact: Jonathan Akerman, PR Manager, Prudential, 3 Sheldon Square, London, W2 6PR, +44(0)20-7150-3177