Financial highlights

Balancing capital consumption and value optimisation

Half year 2011 £1,824m - Half year 2012 £2,030m +11%

Half year 2011 £1,069m - Half year 2012 £1,141m +7%

Half year 2011 £(297)m - Half year 2012 £(364)m -23%

  • Asia
  • US
  • UK
Asia US UK Group
Half year Half year Half year Half year
2012 2011 2012 2011 2012 2011 2012 2011
New business profit margin 61% 63% 61% 68% 37% 36% 56% 59%
Payback period 4 years 4 years 2 years 2 years 3 years 5 years 3 years 3 years
Internal rate of return >20% >20% >20% >20% >20% >20% >20% >20%

Half year 2011 £259m - Half year 2012 £250m -3%

Half year 2011 £115, 216m - Half year 2012 £114, 259m -1%

Half year 2011 £3, 293m - Half year 2012 £5, 264m +60%

Half year 2011 £2, 922m - Half year 2012 £4, 941m +69%

  • M&G2
  • Other asset management business
  • Total asset management3

Half year 2011 £1, 028m - Half year 2012 £1, 162m +13%

'Half year 2011 £2, 147m - Half year 2012 £2, 109m -2%

Half year 2011 7.95p - Half year 2012 8.40p +6%

EEV Half year 2011 61.5p - Half Year 2012 60.7p -1%. IFRS Half year 2011 31.4p - Half year 2012 34.5p +10%

  • EEV
  • IFRS

Half year 2011 £1,093m - Half year 2012 £1,039m -5%

Half year 2011 £4.1bn - Half year 2012 £4.2bn +2%

Half year 2011 £690m - Half year 2012 £726m +5%

Half year 2011 £1,476m - Half year 2012 £1,222m -17%

Notes

  1. Defined as movements in shareholder-backed policyholder liabilities arising from premiums (net of charges), surrenders, maturities and deaths.
  2. 2012 includes M&G's 47 per cent proportionate share in the metrics above of PPM South Africa after the divestment transaction. 100 per cent of these metrics were included in 2011.
  3. Excludes Asia Money Market Fund (MMF) net outflows of £103 million (2011: net inflows £383 million).
  4. The Group has adopted altered US GAAP requirements for deferred acquisition costs as an improvement to its accounting policy under IFRS 4 for those operations of the Group which measure insurance assets and liabilities substantially by reference to US GAAP principles. Accordingly, the 2011 comparative results have been adjusted from those previously published for the retrospective application of the improvement as if the new accounting policy had always applied, as described in note B to the IFRS financial statements.
  5. Including Solvency II implementation costs, restructuring costs, Asia development costs, Asia regional head office costs and in 2011 the impact of the Retail Price Index (RPI) to Commercial Price Index (CPI) inflation measure change for defined benefit pension schemes.
  6. Underlying free surplus generated comprises underlying free surplus generated from the Group's long-term business (net of investment in new business) and that generated from asset management operations.
  7. Estimated.
  8. Including short-term investments.
  9. Annualised IFRS operating profit after tax and non-controlling interests as percentage of opening IFRS shareholders' funds. Half year profits are annualised by multiplying by two. The Group has adopted altered US GAAP requirements for deferred acquisition costs as an improvement to its accounting policy under IFRS 4 for those operations of the Group which measure insurance assets and liabilities substantially by reference to US GAAP principles. Accordingly, the 2011 comparative results have been adjusted from those previously published for the retrospective application of the improvement as if the new accounting policy had always applied, as described in note B to the IFRS financial statements.
  10. Annualised EEV operating profit after tax and non-controlling interests as percentage of opening EEV shareholders' funds. Half year profits are annualised by multiplying by two.
 
 

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