1 Segmental Analysis
 2 Jackson National Life
 3 Investment Return
 4 Investment Income
 5 Policyholder Bonuses
 6 Net Operating Expenses
 7 Investment Expenses and Charges
 8 Tax
 9 Acquisitions and Disposals
 10 Information on Staff
 11 Directors’ Remuneration
 12 Fees Payable to Audit Firms
 13 Land and Buildings
 14 Investments in Participating Interests
 15 Other Financial Investments
 16 Assets Held to Cover Linked Liabilities
 17 Share Capital and Share Premium
 18 Group Profit and Loss Account Reserve
 19 Long-term Business Provision
 20 Borrowings
 21 Reclassification of Certain Liabilities
 22 Investments of the Company
 23 Profit of the Company
 24 Subsidiary Undertakings
 25 Contingent Liabilities
26 Cash Flow
 27 Post Balance Sheet Event

 

 

 

 

26 Cash Flow

to the members of Prudential Corporation plc

We have audited the supplementary information, which has been prepared on the basis set out in note 1 and is limited to a restatement of the Group profit and the shareholders’ interest in the Group’s long-term business on an achieved profits basis.

Respective Responsibilities of Directors and Auditors
The Company’s directors are responsible for the preparation of the Annual Report including as described the financial statements and supplementary information. Our responsibilities are outlined in the Report of the Auditors on the Financial Statements.

Basis of Opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the supplementary information. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the supplementary information and of whether the accounting policies are appropriate to the circumstances of the Group, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the supplementary information stated on the achieved profits basis is free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of the supplementary information.

Opinion
In our opinion, the achieved profits basis Group profit for the year ended 31 December 1998 and shareholders’ interest in the long-term business at that date have been properly prepared in accordance with the methodology and disclosure requirements contained in the draft ‘Guidance on accounting in Group Accounts for proprietary companies’ long-term insurance business’ issued by the Association of British Insurers in July 1995.



PricewaterhouseCoopers
Chartered Accountants
London
18 March 1999

 

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