Investor Presentaiton
Impact of regulatory changes measured as at 1 January 2022
Increase in capital resources as prudence removed from liabilities and
capital requirements increase as a result of risk-based approach leading
to net positive impact on surplus and coverage ratio.
An increase in the EEV net worth (sum of free surplus and required
capital) by $4.2 billion, reflecting the release of prudent regulatory
margins previously included in liabilities. And a reduction in VIF.
1 January 2022, $bn
GWS²
GWS shareholder capital surplus over GMCR
GWS shareholder coverage ratio over GMCR
Impact of Hong Kong
RBC and C-ROSS II¹
+9.3
+137%p
EEV Shareholder's Equity
0.2
Value in force
(4.0)
Free surplus
1.4
Required capital
2.8
IFRS Shareholder's Equity
0.9
Operating (non-recurring)
0.2
Non-Operating (non-recurring)
0.7
☑
74
More limited impact compared to EEV Net Worth because of the
application of minimum floors when determining IFRS liabilities.
1. No impact of C-ROSS Phase II on EEV and IFRS. Figures have been adjusted for casting purposes.
2. Prudential applies the Insurance (Group Capital) Rules set out in the GWS Framework to determine group regulatory capital requirements (both minimum and prescribed levels).View entire presentation