Kailesh Mistry's questions to PRUDENTIAL (PUK) leadership • Q1 2023
Question
Asked for technical details on the accounting for the $1 billion investment, specifics of the technology investment program, and a breakdown of CSM variances.
Answer
The CFO detailed the investment timing ($150M in '23, $300M in '24/'25) and how it flows through IFRS 17 (about 1/3 to 1/2 as a variance, the rest unlocking the CSM). The technology investment will focus on creating common, reusable applications across markets, improving data linkage, and using AI to support the customer, distribution, and health pillars. The CSM variance included a negative operating variance of ~$90M (from investments and medical reimbursement claims) and a positive economic variance of $300-400M.