Prudential UK Enters Into Buy-in Agreement With GlaxoSmithKline

By Prudential, PRNE
Monday, November 22, 2010

LONDON, November 23, 2010 - Prudential UK has entered into two bulk annuity buy-in contracts with the
Trustees of the GlaxoSmithKline ("GSK") Pension Scheme and the GSK Pension
Fund for a tranche of pensioner members within their defined benefit pension
schemes. The transactions cover around 15 per cent of GSK's UK defined
benefit pensioner liabilities and have an aggregate value of approximately
GBP900 million.

Under the terms of the agreement, GSK has purchased bulk annuity policies
from Prudential which will take on responsibility for a portion of the
pensioner benefits payable by the Trustees of the GSK Pension Scheme and
Pension Fund. GSK will continue to administer the Scheme and Fund and the
terms of the pension payments made to its scheme members will remain

Andrew Crossley, deputy chief executive, Prudential UK & Europe, said:
"Prudential has a unique set of capabilities in the annuities market
including extensive longevity experience, a superior investment track record
and operational scale. Our strategy for bulk annuities is to participate
selectively in the market and only enter into transactions which meet our
strict requirements for return on capital. This agreement demonstrates our
ability to complete complex and innovative transactions within the bulk
annuity marketplace.

"Our financial strength and strong track record continue to be
significant factors for pension scheme trustees looking for a safe and secure
home for their pensions. We believe that the GSK Pension Scheme and Pension
Fund will benefit from our expertise and experience in the pensions and
annuities markets."

This contract will be recorded for accounting purposes within
Prudential's fourth quarter results for 2010.

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, a tax calculator and retirement plans.

Prudential offers customers pensions and annuities, pensions retirement
income (, insurance
and investment opportunities.

Note to Editors:

The Prudential / GSK agreement is a 'buy-in' of annuities (
rather than a 'buy-out' of pension liabilities. A 'buy-in' is where a group
annuity contract is bought as fund investments ( and held by the Trustees. It belongs to
the pension fund, not individual members. The Trustees hold the policy as a
fund asset to meet its liabilities, and receives income from it to pay

In effect, the GSK Pension Scheme / Fund have chosen to invest in an
annuity policy to hold alongside their other assets. Individual scheme
members will not become Prudential policyholders as they would in a
'buy-out'. Instead, the Pensions ( Scheme / Fund
will receive payments from Prudential which match the money the Trustees pay
out to pensioners.

    PR Contact:
    Steve Colton
    PR Manager
    3 Sheldon Square
    W2 6PR

PR Contact: Steve Colton, PR Manager, Prudential, 3 Sheldon Square, London, W2 6PR, +44(0)20-7150-3136

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