Finance and Capital Management

1 Pro forma M&G plc Group Solvency II¹ • PAC represents the majority of the Group's consolidated solvency capital position of 169% at 30 June 2019 Shortly prior to demerger, M&G plc will assume £3.2bn of substitutable debt² from Prudential plc, offset by a pre-demerger dividend of £(3.2)bn³ and other closing adjustments of £0.1bn. Pro forma solvency ratio is 170%. • Actual solvency ratio at demerger will depend on ongoing capital generation from the business, market movements and other developments up until the demerger date H1 2019, £bn PAC M&G + other subs M&G plc Consolidated Own Funds 8.9 0.5 9.5 SCR 5.2 0.4 5.6 Solvency Ratio 173% 169% PRUDENTIAL Assumption of debt Pre-merger dividend/closing adjustments3,4 Pro forma Solvency II 3.2 (3.1) 9.6 5.6 170% 1. The Group has requested approval from the PRA to amend the Prudential Group internal model to apply at the level of the Group, rather than at the level of the Prudential Group. The decision is pending and is expected to be provided shortly before the Demerger, such that the Prudential Group internal model remains in place until the Demerger with the Group's model commencing from that point; 2. At nominal value; 3. Includes £0.2bn paid on 20 of September 2019; 4. Not induding £100m demerger related dividend expected to be paid in May 2020 52

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