Additional unaudited financial information

I: Selected historical financial information of Prudential

The following table sets forth Prudential’s selected consolidated financial data for the periods indicated. Certain data is derived from Prudential’s audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU) and European Embedded Value (EEV).

This table is only a summary and should be read in conjunction with Prudential’s consolidated financial statements and the related notes included elsewhere in this document.

Income statement data

Download as excel file

  Year ended 31 December*
  2012 £m 2011 £m 2010 £m 2009 £m 2008 £m

*The Group has adopted updated 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 2008 to 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.

IFRS basis results          
Gross premium earned 29,910 25,706 24,568 20,299 18,993
Outward reinsurance premiums (506) (429) (357) (323) (204)
Earned premiums, net of reinsurance 29,404 25,277 24,211 19,976 18,789
Investment return 24,051 9,360 21,769 26,889 (30,202)
Other income 2,021 1,869 1,666 1,234 1,146
Total revenue, net of reinsurance 55,476 36,506 47,646 48,099 (10,267)
Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance (45,953) (29,289) (40,518) (41,195) 10,824
Acquisition costs and other expenditure (6,055) (5,120) (4,989) (4,756) (2,457)
Finance costs: interest on core structural borrowings of shareholder-financed operations (280) (286) (257) (209) (172)
Loss on sale of Taiwan agency business (559)
Total charges, net of reinsurance (52,288) (34,695) (45,764) (46,719) 8,195
Profit (loss) before tax (being tax attributable to shareholders’ and policyholders’ returns) note(1) 3,188 1,811 1,882 1,380 (2,072)
Tax (charge) credit attributable to policyholders’ returns (378) 17 (611) (818) 1,624
Profit (loss) before tax attributable to shareholders 2,810 1,828 1,271 562 (448)
Tax (charge) credit attributable to shareholders’ returns (613) (409) 40 10 58
Profit (loss) from continuing operations after tax 2,197 1,419 1,311 572 (390)
Discontinued operations (net of tax) (14)
Profit (loss) for the year 2,197 1,419 1,311 558 (390)
           
Based on profit (loss) for the year attributable to the equity holders of the Company:          
Basic earnings per share (in pence) 86.5p 55.8p 51.8p 22.3p (16.0)p
Diluted earnings per share (in pence) 86.4p 55.7p 51.7p 22.2p (16.0)p
Dividend per share declared and paid in reporting period (in pence)note(6) 25.64p 25.19p 20.17p 19.20p 18.29p

Supplementary IFRS income statement data

Download as excel file

  Year ended 31 December*
  2012 £m 2011 £m 2010 £m 2009 £m 2008 £m

*The Group has adopted updated 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 2008 to 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.

Operating profit based on longer-term investment returnsnote(2) 2,533 2,027 1,826 1,428 1,248
Short-term fluctuations in investment returns on shareholder-backed business 204 (220) (198) (171) (1,684)
Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes 50 21 (10) (74) (13)
Costs of terminated AIA transaction (377)
Gain on dilution of Group's holdings 42 30
Amortisation of acquisition accounting adjustments arising on the purchase of REALIC (19)
Loss on sale and results of Taiwan agency business (621) 1
Profit (loss) from continuing operations before tax attributable to shareholdersnote(2) 2,810 1,828 1,271 562 (448)
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and excluding 2010 exceptional tax credit) (in pence) 76.8p 62.8p 59.0p 44.0p 39.0p
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and including 2010 exceptional tax credit) (in pence) 76.8p 62.8p 65.3p 44.0p 39.0p

Supplementary EEV income statement data

Download as excel file

  Year ended 31 December
  2012 £m 2011 £m 2010 £m 2009 £m 2008 £m
Operating profit based on longer-term investment returnsnote(2) 4,321 3,978 3,696 3,090 2,865
Short-term fluctuations in investment returns on shareholder-backed business 538 (907) (30) 351 (4,967)
Mark to market value movements on core borrowings (380) (14) (164) (795) 656
Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes 62 23 (11) (84) (14)
Effect of changes in economic assumptions (16) (158) (10) (910) (398)
Costs of terminated AIA transaction (377)
Gain on dilution of Group's holdings 42 3
Gain on acquisition of REALIC 453
Profit on sale and results of Taiwan agency business 91 (248)
Profit (loss) from continuing operations before tax attributable to shareholders 5,020 2,922 3,107 1,743 (2,106)
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and excluding 2010 exceptional tax credit) (in pence) 125.0p 115.7p 106.9p 88.8p 85.1p
Operating earnings per share (reflecting operating profit based on longer-term investment returns after related tax and non-controlling interests and including 2010 exceptional tax credit) (in pence) 125.0p 115.7p 113.2p 88.8p 85.1p

New business data

New business excluding Japannote(3)

Download as excel file

  Year ended 31 December
  2012 £m 2011 £m 2010 £m 2009 £m 2008 £m
Annual premium equivalent (APE) sales:          
Asianote(3) 1,897 1,660 1,501 1,209 1,174
US 1,462 1,275 1,164 912 716
UK 836 746 820 723 947
Total APE sales 4,195 3,681 3,485 2,844 2,837
EEV new business profit (NBP) 2,452 2,151 2,028 1,619 1,205
NBP margin (% APE) 58% 58% 58% 57% 42%

Statement of financial position data

Download as excel file

As of and for the year ended 31 December* 2012 £m 2011 £m 2010 £m 2009 £m 2008 £m

*The Group has adopted updated 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 2008 to 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.

Total assets 310,253 272,745 260,040 227,103 214,858
Total policyholder liabilities and unallocated surplus of with-profits funds 271,363 236,290 224,980 196,417 182,391
Core structural borrowings of shareholder-financed operations 3,554 3,611 3,676 3,394 2,958
Total liabilities 299,889 264,138 252,475 221,230 210,193
Total equity 10,364 8,607 7,565 5,873 4,665

Other data

Download as excel file

As of and for the year ended 31 December 2012 £bn 2011 £bn 2010 £bn 2009 £bn 2008 £bn

Notes

  1. This measure is the formal profit (loss) before tax measure under IFRS but is not the result attributable to shareholders.
  2. Operating profits are determined on the basis of including longer-term investment returns. EEV and IFRS operating profits are stated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions, the shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes, gain on dilution of the Group’s holdings and in 2010 costs associated with the terminated AIA transaction. In addition, for EEV basis results, operating profit excludes the effect of changes in economic assumptions, the market value movement on core borrowings and in 2012, the gain arising on the acquisition of REALIC. Separately, on the IFRS basis, operating profit also excludes amortisation of accounting adjustments on the acquisition of REALIC.
  3. Asia comparative APE new business sales prior to 2011 exclude the Japanese insurance operations, which ceased writing new business from 15 February 2010.
  4. Funds under management comprise funds of the Group held in the statement of financial position and external funds that are managed by Prudential asset management operations.
  5. The surpluses shown are before allowing for the final dividends for each year, which are paid in the following year. The 2012 surplus is estimated.
Funds under managementnote(4) 405 351 340 290 249
EEV shareholders’ equity, excluding non-controlling interests 22.4 19.6 18.2 15.3 15.0
Insurance Groups Directive capital surplus (as adjusted)note(5) 5.1 4.0 4.3 3.4 1.5

II(a): Analysis of long-term insurance business pre-tax IFRS operating profit based on longer-term investment returns by driver

This classifies the Group’s pre-tax operating earnings from long-term insurance operations into the underlying drivers of those profits, using the following categories:

  1. Spread income represents the difference between net investment income (or premium income in the case of the UK annuities new business) and amounts credited to policyholder accounts. It excludes the operating investment return on shareholder net assets, which has been separately disclosed as expected return on shareholder assets;
  2. Fee income represents profits driven by net investment performance, being asset management fees that vary with the size of the underlying policyholder funds net of investment management expenses;
  3. With-profits results represents the shareholders’ transfer from the with-profits fund in the period;
  4. Insurance margin primarily represents profits derived from the insurance risks of mortality, morbidity and persistency;
  5. Margin on revenues primarily represents amounts deducted from premiums to cover acquisition costs and administration expenses;
  6. Acquisition costs and administration expenses represent expenses incurred in the period attributable to shareholders. It excludes items such as restructuring costs and Solvency II costs which are not included in the segment profit for insurance as well as items that are more appropriately included in other source of earnings lines (eg investment expenses are netted against investment income as part of spread income or fee income as appropriate); and
  7. DAC adjustments comprises DAC amortisation for the period, excluding amounts related to short-term fluctuations, net of costs deferred in respect of new business.

Analysis of pre-tax IFRS operating profit by source

Download as excel file

  2012 £m
  Asia US UK Unallocated Total

*Including restructuring and Solvency II implementation costs.

Spread income 106 702 266 1,074
Fee income 141 875 61 1,077
With-profits result 39 272 311
Insurance margin 594 399 39 1,032
Margin on revenues 1,453 216 1,669
Expenses:          
Acquisition costs (903) (972) (122) (1,997)
Administration expenses (583) (537) (128) (1,248)
DAC adjustments (28) 442 (8) 406
Expected return on shareholder assets 43 55 107 205
Gain on China Life (Taiwan) shares 51 51
Long-term business operating profit 913 964 703 2,580
Asset management operating profit 75 39 371 485
GI commission 33 33
Other income and expenditure* (565) (565)
Total operating profit based on longer-term investment returns 988 1,003 1,107 (565) 2,533

Download as excel file

  2011 £m
  Asia US UK Unallocated Total
  • * DAC adjustments have been adjusted for the retrospective application of the accounting policy change described in note A5 of the IFRS financial statements.
  • Including restructuring and Solvency II implementation costs.
Spread income 88 730 247 1,065
Fee income 131 680 59 870
With-profits result 38 293 331
Insurance margin 477 232 27 736
Margin on revenues 1,199 226 1,425
Expenses:          
Acquisition costs (766) (890) (127) (1,783)
Administration expenses (503) (412) (128) (1,043)
DAC adjustments* 14 228 (5) 237
Expected return on shareholder assets 26 83 91 200
Long-term business operating profit 704 651 683 2,038
Asset management operating profit 80 24 357 461
GI commission 40 40
RPI to CPI inflation measure change on defined benefit schemes 42 42
Other income and expenditure (554) (554)
Total operating profit based on longer-term investment returns 784 675 1,080 (512) 2,027

Margin analysis of long-term insurance business

The following analysis expresses certain of the Group’s sources of operating profit as a margin of policyholder liabilities or other suitable driver. Details of the Group’s average policyholder liability balances are given in D2(b), D3(b), D4(b).

Download as excel file

  2012 2011
Long-term business Profit

£m
Average
liability
note(iv)
£m
Margin
note(iii)
bps
Profit

£m
Average
liability
note(iv)
£m
Margin
note(iii)
bps
Spread income 1,074 62,174 173 1,065 57,417 185
Fee income 1,077 78,807 137 870 68,298 127
With-profits result 311 95,681 33 331 93,056 36
Insurance margin 1,032     736    
Margin on revenues 1,669     1,425    
Expenses:            
Acquisition costsnote(i) (1,997) 4,195 (48)% (1,783) 3,681 (48)%
Administration expenses (1,248) 143,321 (87) (1,043) 125,715 (83)
DAC adjustmentsnote(ii) 406     237    
Expected return on shareholder assets 205     200    
Gain on China Life (Taiwan) shares 51        
Operating profit 2,580     2,038    

Download as excel file

  Asia
  2012 2011
Long-term business Profit

£m
Average
liability
£m
Margin
note(iii)
bps
Profit

£m
Average
liability
£m
Margin
note(iii)
bps

Notes

  1. The ratio for acquisition costs is calculated as a percentage of APE including with-profits sales. Acquisition costs include only those relating to shareholders.
  2. DAC adjustments have been adjusted for the retrospective application of the accounting policy change described in note A5 of the IFRS financial statements.
  3. Margin represents the operating return earned in the year as a proportion of the relevant class of policyholder liabilities excluding unallocated surplus.
  4. For UK and Asia, opening and closing policyholder liabilities have been used to derive an average balance for the year, as this is seen as a good proxy for average balances throughout the year. The calculation of average liabilities for Jackson is derived from month-end balances throughout the year as opposed to opening and closing balances only. Liabilities held in the general account for variable annuity living and death guaranteed benefits together with other amounts on which no spread income is earned (eg REALIC liabilities) are excluded from the calculation of the average. In addition for REALIC, which are included in the average liability to calculate the administration expense margin, the calculation excludes the liabilities reinsured to (and in essence retained by) Swiss Re immediately prior to the acquisition by Jackson.
Spread income 106 6,720 158 88 5,623 157
Fee income 141 13,022 108 131 12,370 106
With-profits result 39 12,990 30 38 11,775 32
Insurance margin 594     477    
Margin on revenues 1,453     1,199    
Expenses:            
Acquisition costsnote(i) (903) 1,897 (48)% (766) 1,660 (46)%
Administration expenses (583) 19,742 (295) (503) 17,993 (280)
DAC adjustmentsnote(ii) (28)     14    
Expected return on shareholder assets 43     26    
Gain on China Life (Taiwan) shares 51        
Operating profit 913     704    

Analysis of Asia IFRS operating profit drivers

  • Spread income has increased by £18 million from £88 million in 2011 to £106 million in 2012, an increase of 20 per cent that predominantly reflects the growth of the Asian non-linked policyholder liabilities.
  • Fee income has increased from £131 million in 2011 to £141 million in 2012, broadly in line with the increase in movement in average unit-linked liabilities, following the recovery in equity markets in 2012.
  • Insurance margin has increased by £117 million from £477 million in 2011 to £594 million in 2012 predominantly reflecting the continued growth of the in-force book, which contains a relatively high proportion of risk-based products. Insurance margin includes non-recurring items of £48 million (2011: £38 million), reflecting assumption changes and other items that are not expected to reoccur in the future.
  • Margin on revenues has increased by £254 million from £1,199 million in 2011 to £1,453 million in 2012 primarily reflecting the on-going growth in the size of the portfolio and higher premium income recognised in the year.
  • Acquisition costs have increased by 18 per cent from £766 million in 2011 to £903 million in 2012, compared to the 14 per cent increase in sales, resulting in a marginal increase in the acquisition cost ratio. The analysis above has been prepared applying shareholder acquisition costs as a proportion of total APE. If with-profits sales were excluded from the denominator the acquisition cost ratio would become 63 per cent (2011: 59 per cent) reflecting changes to product and country mix.
  • Administration expenses have increased from £503 million in 2011 to £583 million in 2012 as the business continues to expand. Expressed as a ratio of policyholder liabilities, administration costs have increased from 280 basis points to 295 basis points due to changes in business mix.
  • Expected return on shareholder assets has increased from £26 million in 2011 to £43 million in 2012 primarily due to higher income from increased shareholder assets.

Download as excel file

  US
  2012 2011
Long-term business Profit

£m
Average
liability
note(iii)
£m
Margin
bps
Profit

£m
Average
liability
note(iii)
£m
Margin
bps

Notes

  1. The ratio for acquisition costs is calculated as a percentage of APE.
  2. DAC adjustments have been adjusted for the retrospective application of the accounting policy change described in note A5 of the IFRS financial statements.
  3. The calculation of average liabilities for Jackson is derived from month-end balances throughout the year as opposed to opening and closing balances only. Liabilities held in the general account for variable annuity living and death guaranteed benefits together with other amounts on which no spread income is earned (eg REALIC liabilities) are excluded from the calculation of the average. In addition for REALIC, which is included in the average liability to calculate the administration expense margin, the calculation excludes the liabilities reinsured to (and in essence retained by) Swiss Re immediately prior to the acquisition by Jackson.

    The 2010 balances have been amended for consistency albeit impacts are minimal.
Spread income 702 29,416 239 730 28,274 258
Fee income 875 44,046 199 680 34,452 197
Insurance margin 399     232    
Expenses:            
Acquisition costsnote(i) (972) 1,462 (66)% (890) 1,275 (70)%
Administration expenses (537) 75,802 (71) (412) 62,726 (66)
DAC adjustmentsnote(ii) 442     228    
Expected return on shareholder assets 55     83    
Operating profit 964     651    

Analysis of US operating profit drivers

  • Spread income was £702 million in 2012, down £28 million from the £730 million earned in 2011. 2012 benefited by £156 million from the effect of transactions entered into during 2011 and 2010 to more closely match the overall asset and liability duration (2011: £113 million). Excluding this effect, the spread margin would have been 186 basis points (2011: 218 basis points).
    The reported spread margin decreased as a result of downward pressure on yields caused by the low interest rate environment, the effect of which was only partly mitigated by reductions in crediting rates.
  • Fee income has increased by 29 per cent to £875 million in 2012, compared to £680 million in 2011 as a result of the growth in separate account balances primarily due to positive net flows from variable annuity business. Fee income margin has increased slightly to 199 basis points (2011: 197 basis points) primarily reflecting changes to business mix.
  • Insurance margin represents operating profits from insurance risks, including variable annuity guarantees and other sundry items. Positive net flows into variable annuity business with life contingent and other guarantee fees, coupled with the benefit in the period of repricing actions, have increased the insurance margin from £232 million in 2011 to £399 million in 2012. This includes the benefits of four months’ profits amounting to £87 million from the life business of REALIC, following its acquisition by Jackson in September 2012.
  • Acquisition costs, which are commissions and general expenses incurred to acquire new business, have increased in absolute terms compared to 2011 due largely to an increase in sales volumes. However, acquisition costs as a percentage of APE have decreased to 66 per cent for 2012, compared to 70 per cent in 2011, due to the continued increase in producers selecting asset based commission which is treated as an administrative expense in this analysis, rather than front end commissions.
  • Administration expenses increased to £537 million in 2012 compared to £412 million in 2011, primarily as a result of higher asset based commissions paid on the larger 2012 separate account balance. Asset based commissions are paid upon policy anniversary dates and are treated as an administration expense in this analysis as opposed to a cost of acquisition and are offset by higher fee income. The administration expense margin was higher at 71 basis points (2011: 66 basis points). Excluding these trail commission amounts, the resulting administration expense margin would be 48 basis points (2011: 46 basis points ). The increase arises as a result of the effect of the REALIC acquisition on the administration expense margin together with the impact in 2012 of non-recurring expenditures.
  • DAC adjustments increased to £442 million in 2012 compared to £228 in 2011. 2011 was lowered by £190 million of accelerated DAC amortisation as a result of the reversal of the benefit received in 2008 from the mean reversion formula. Market movements in 2012 resulted in deceleration of DAC amortisation of £56 million which was offset by higher amortisation as a result of higher gross profits. Following the adoption of the updated US GAAP principles for deferred acquisition costs, as described in note A5 of the IFRS financial statements, certain acquisition costs are no longer fully deferrable resulting in new business strain of £174 million for 2012 (2011: £156 million).

Analysis of pre-tax operating profit before and after acquisition costs and DAC adjustments

Download as excel file

  2012 £m 2011 £m
  Other
operating
profits
Acquisition costs Total Other
operating
profits
Acquisition costs Total
  Incurred Deferred Incurred Deferred
Total operating profit before acquisition costs and DAC adjustments 1,494     1,494 1,313     1,313
Less new business strain   (972) 798 (174)   (890) 734 (156)
Other DAC adjustments – amortisation of previously deferred acquisition costs                
Normalnote     (412) (412)     (316) (316)
Decelerated (accelerated)     56 56     (190) (190)
Total 1,494 (972) 442 964 1,313 (890) 228 651

Download as excel file

  UK
  2012 2011
Long-term business Profit

£m
Average
liability
£m
Margin
bps
Profit

£m
Average
liability
£m
Margin
bps

Note

The ratio for acquisition costs is calculated as a percentage of APE including with-profits sales. Acquisition costs include only those relating to shareholders.

Spread income 266 26,038 102 247 23,520 105
Fee income 61 21,739 28 59 21,476 27
With-profits result 272 82,691 33 293 81,281 36
Insurance margin 39     27    
Margin on revenues 216     226    
Expenses:            
Acquisition costsnote (122) 836 (15)% (127) 746 (17)%
Administration expenses (128) 47,777 (27) (128) 44,996 (28)
DAC adjustments (8)     (5)    
Expected return on shareholder assets 107     91    
Operating profit 703     683    

Analysis of UK IFRS operating profit drivers

  • Spread income has increased from £247 million in 2011 to £266 million in 2012 principally due to increased new business profits from higher annuity sales. The margin has fallen slightly from 105 basis points to 102 basis points.
  • Fee income has increased in line with the growth in unit-linked liabilities. Expressed as an asset management charge it is equivalent to 28 basis points (2011: 27 basis points).
  • With-profits income has decreased by £21 million from £293 million in 2011 to £272 million in 2012 principally due to a 50 basis point reduction in annual bonus rates. This has contributed to the reduction in the with-profits margin from 36 basis points in 2011 to 33 basis points in 2012.
  • Insurance margin has increased by £12 million from £27 million in 2011 to £39 million in 2012, mainly due to increased profits from our protection business.
  • Margin on revenues represents premiums charges for expenses and other sundry net income received by the UK. 2012 income was £216 million (2011: £226 million).
  • Acquisition costs as a percentage of new business sales have improved from 17 per cent in 2011 to 15 per cent in 2012. The ratio above expresses the percentage of shareholder acquisition costs as a percentage of total APE sales. It is therefore impacted by the level of with-profit sales in the year. Acquisition costs as a percentage of shareholder-backed new business sales were 33 per cent for 2012 (2011: 33 per cent).
  • Expected return on shareholder has increased from £91 million in 2011 to £107 million in 2012 principally due to higher IFRS shareholders’ funds.

II(b): Asia operations – analysis of IFRS operating profit by territory

Download as excel file

  2012 £m 2011* £m

Notes

  1. Analysis of operating profit between new and in-force business
    The result for insurance operations comprises amounts in respect of new business and business in-force as follows:

    Download as excel file

      2012 £m 2011* £m
    New business strain (51) (70)
    Business in force 872 741
    Non-recurrent items:note(ii)    
    Gain on China Life (Taiwan) shares 51
    Other non-recurrent items 48 38
    Total 920 709

    The IFRS new business strain corresponds to approximately 3 per cent of new business APE premiums for 2012 (2011: approximately 4 per cent of new business APE). The improvement is driven by a shift in overall sales mix to lower strain products and countries.

    The strain reflects the aggregate of the pre-tax regulatory basis strain to net worth after IFRS adjustments for deferral of acquisition costs and deferred income where appropriate.

  2. During 2012, the Group sold its 7.74 per cent stake in China Life (Taiwan) for £97 million crystallising a gain of £51 million. Other non-recurrent items of £48 million in 2012 (2011: £38 million) represent a small number of items that are not anticipated to reoccur in subsequent periods.

* The 2011 comparative results have been adjusted from those previously published for the retrospective application of the change in accounting policy described in note A5.

China 19 11
Hong Kong 88 69
India 54 47
Indonesia 260 212
Japan (2) 2
Korea 16 17
Malaysia 120 104
Philippines 15 5
Singapore 206 167
Taiwan bancassurance business 18 2
Thailand 7 4
Vietnam 25 30
Other (5) 1
Non-recurrent items:note(ii)    
Gain on China Life (Taiwan) shares 51
Other non-recurrent items 48 38
Total insurance operationsnote(i) 920 709
Development expenses (7) (5)
Total long-term business operating profit 913 704
Eastspring Investments 75 80
Total Asia operations 988 784

II(c): Analysis of asset management operating profit based on longer-term investment returns

Download as excel file

  2012 £m
  M&G
note(i),(ii)
Eastspring
Investments
note(ii)
PruCap

US

Total

Operating income before performance-related fees 734 201 120 296 1,351
Performance-related fees 9 2 11
Operating income* 743 203 120 296 1,362
Operating expense (436) (128) (69) (257) (890)
Share of associate’s results 13 13
Operating profit based on longer-term investment returns 320 75 51 39 485
           
Average funds under management (FUM), including 49.99% proportional share of PPM South Africa £209.0 bn        
Average funds under management (FUM), excluding PPM South Africa £205.1 bn £55.0 bn      
Margin based on operating income 36 bps 37 bps      
Cost/income ratio 59% 64%      

Download as excel file

  2011 £m
  M&G
note(i),(ii)
Eastspring
Investments
note(ii)
PruCap

US

Total

Notes

  1. Following the divestment in the first half of 2012 of M&G’s holding in PPM South Africa from 75 per cent to 49.99 per cent and its treatment from 2012 as an associate, M&G’s operating income and expense no longer includes any element from PPM South Africa. In order to avoid period on period distortion, in the table above the 2011 operating income, margin and cost/income ratio reflect the retrospective application of this basis of presentation for the 2011 results.
  2. M&G and Eastspring Investments can be further analysed as follows:
Operating income before performance-related fees 666 196 122 249 1,233
Performance-related fees 13 6 19
Operating income* 679 202 122 249 1,252
Operating expense (404) (122) (66) (225) (817)
Share of associate’s results 26 26
Operating profit based on longer-term investment returns 301 80 56 24 461
           
Average funds under management (FUM), including 49.99% proportional share of PPM South Africa £195.1 bn        
Average funds under management (FUM), excluding PPM South Africa £190.9 bn £51.4 bn      
Margin based on operating income 35 bps 38 bps      
Cost/income ratio 61% 62%      

Download as excel file

  M&G
  Operating income*
  Retail
£m
Margin
of FUM
bps
Institutional§
£m
Margin
of FUM
bps
Total
£m
Margin
of FUM
bps
2012 438 91 297 19 734 36
2011 396 97 270 18 666 35

Download as excel file

  Eastspring Investments
  Operating income*
  Retail
£m
Margin
of FUM
bps
Institutional§
£m
Margin
of FUM
bps
Total
£m
Margin
of FUM
bps
  • * Operating income is net of commissions. M&G’s operating income excludes any contribution from M&G’s associate, PPM South Africa.
  • Margin represents operating income before performance related fees as a proportion of the related funds under management (FUM), excluding PPM South Africa. 2011 comparatives have been amended to be on a comparable basis. Monthly funds managed by the respective entity have been used to derive the average. Any funds held by the Group’s insurance operations which are managed by third parties outside of the Prudential Group are excluded from these amounts.
  • Cost/income ratio represents cost as a percentage of operating income before performance related fees. In order to avoid period-on-period distortion, M&G’s operating income and expense excludes any contribution from M&G’s associate, PPM South Africa.
  • § Institutional includes internal funds.
2012 118 64 83 24 201 37
2011 120 62 76 24 196 38

III(a): Funds under management

i Summary

Download as excel file

  2012 £bn 2011 £bn

Note

External funds shown above for 2012 of £121.4 billion (2011: £99.8 billion) comprise £133.5 billion (2011: £111.2 billion) of funds managed by Eastspring Investments and M&G (as shown in note (iii) below) less £12.1 billion (2011: £11.4 billion) that are classified within internal funds.

Business area:    
Asia operations 38.9 32.6
US operations 91.4 71.9
UK operations 153.3 146.3
Internal funds under management 283.6 250.8
External fundsnote 121.4 99.8
Total funds under management 405.0 350.6

ii Internal funds under management – analysis by business area

Download as excel file

  Asia operations   US operations
  UK operations
  Total
  2012
£bn
2011
£bn
  2012
£bn
2011
£bn
  2012
£bn
2011
£bn
  2012
£bn
2011
£bn

Note

As included in the investments section of the consolidated statement of financial position at 31 December 2012 except for £0.2 billion (2011: £0.2 billion) investment properties which are held for sale or occupied by the Group and, accordingly under IFRS, are included in other statement of financial position captions.

Investment propertiesnote   0.1 0.1   11.0 10.9   11.1 11.0
Equity securities 14.3 12.0   49.6 38.1   36.1 37.3   100.0 87.4
Debt securities 21.4 17.7   33.0 27.0   85.7 79.8   140.1 124.5
Loans and receivables 1.0 1.2   6.2 4.1   4.6 4.4   11.8 9.7
Other investments and deposits 2.2 1.7   2.5
2.6   15.9
13.9   20.6
18.2
Total 38.9 32.6   91.4 71.9   153.3 146.3   283.6 250.8

iii Investment products – funds under management

Download as excel file

  2012 £m
  1 Jan
2012
Market
gross
inflows
Redemptions Market
exchange
translation
and other
movements
31 Dec
2012
Eastspring Investments 19,221 60,498 (59,098) 1,013 21,634
M&G 91,948 36,463 (19,582) 3,039 111,868
Group total 111,169 96,961 (78,680) 4,052 133,502

Download as excel file

  2011 £m
  1 Jan
2011
Market
gross
inflows
Redemptions Market
exchange
translation
and other
movements
31 Dec
2011
Eastspring Investments 22,048 63,726 (63,605) (2,948) 19,221
M&G 89,326 25,981 (21,596) (1,763) 91,948
Group total 111,374 89,707 (85,201) (4,711) 111,169

III(b): Reconciliation of expected transfer of value of in-force (VIF) and required capital business to free surplus

The tables below show how the VIF generated by the in-force long-term business and the associated required capital is modelled as emerging into free surplus over the next 40 years. Although a small amount (less than 2 per cent) of the Group’s embedded value emerges after this date, analysis of cash flows emerging in the years shown in the tables is considered most meaningful. The modelled cash flows use the same methodology underpinning the Group’s embedded value reporting and so are subject to the same assumptions and sensitivities.

In addition to showing the amounts, both discounted and undiscounted, expected to be generated from all in-force business at 31 December 2012, the tables also present the expected future free surplus to be generated from the investment made in new business during 2012 over the same 40 year period.

Expected transfer of value of in-force (VIF) and required capital business to free surplus

Download as excel file

  2012 £m
  Undiscounted expected generation from all in-force business at 31 December*   Undiscounted expected generation from 2012 long-term new business written*
Expected period of emergence Asia US UK Total   Asia
US UK Total

* The analysis excludes amounts incorporated into VIF at 31 December 2012 where there is no definitive timeframe for when the payments will be made or receipts received. In particular, it excludes the value of the shareholders’ interest in the estate. It also excludes any free surplus emerging after 2052.

2013 719 785 446 1,950   105 269 27 401
2014 761 572 483 1,816   129 108 23 260
2015 724 600 464 1,788   129 113 23 265
2016 686 557 444 1,687   99 37 20 156
2017 654 587 430 1,671   98 115 23 236
2018 628 551 415 1,594   86 77 22 185
2019 617 514 401 1,532   91 64 18 173
2020 610 524 389 1,523   94 115 18 227
2021 598 445 380 1,423   89 95 18 202
2022 585 390 372 1,347   95 78 18 191
2023 557 353 365 1,275   85 73 17 175
2024 538 298 356 1,192   85 56 17 158
2025 525 229 349 1,103   80 45 17 142
2026 521 204 343 1,068   82 39 17 138
2027 510 179 330 1,019   107 33 17 157
2028 506 154 317 977   80 27 17 124
2029 492 134 309 935   77 22 17 116
2030 478 126 299 903   76 18 17 111
2031 453 106 289 848   71 14 17 102
2032 437 117 281 835   82 14 17 113
2033 to 2037 1,911 145 1,170 3,226   307 19 77 403
2038 to 2042 1,554 (21) 916 2,449   234 (25) 78 287
2043 to 2047 1,251 514 1,765   187 51 238
2048 to 2052 926 300 1,226   141
36 177
Total free surplus expected to emerge in the next 40 years 17,241 7,549 10,362 35,152   2,709 1,406 622 4,737

The above amounts can be reconciled to the new business amounts as follows:

Download as excel file

  2012 £m
New business Asia US UK Total

* Other items represent the impact of the time value of options and guarantees on new business, foreign exchange effects and other non-modelled items. Foreign exchange effects arise as EEV new business profit amounts are translated at average exchange rates and the expected free surplus generation uses year end closing rates.

Undiscounted expected free surplus generation for years 2013 to 2052 2,709 1,406 622 4,737
Less: discount effect (1,499) (406) (348) (2,253)
Discounted expected free surplus generation for years 2013 to 2052 1,210 1,000 274 2,484
Discounted expected free surplus generation for years 2052+ 41 3 44
Less: free surplus investment in new business (292) (281) (45) (618)
Other items* 23 (151) 9 (119)
Post-tax EEV new business profit 982 568 241 1,791
Tax 284 305 72 661
Pre-tax EEV new business profit 1,266 873 313 2,452

The undiscounted expected free surplus generation from all in-force business at 31 December 2012 shown below can be reconciled to the amount that was expected to be generated as at 31 December 2011 as follows:

Download as excel file

Group 2012
£m
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Other
£m
Total
£m
2011 expected free surplus generation for years 2012 to 2051 1,777 1,634 1,556 1,512 1,502 1,414 24,667 34,062
Less: amounts expected to be realised in the current year (1,777) (1,777)
Add: expected free surplus to be generated in year 2052* 175 175
Foreign exchange differences (45) (42) (41) (42) (38) (594) (802)
New business 401 260 265 156 236 3,419 4,737
Acquisition of REALIC 45 35 44 38 41 738 941
Operating movements (2) 28 32 24 17    
Non-operating and other movements (83) (21) (24) 9 1 (2,165) (2,184)
2012 expected free surplus generation for years 2013 to 2052 1,950 1,816 1,788 1,687 1,671 26,240 35,152

Download as excel file

Asia 2012
£m
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Other
£m
Total
£m
2011 expected free surplus generation for years 2012 to 2051 674 647 634 595 590 564 13,998 17,702
Less: amounts expected to be realised in the current year (674) (674)
Add: expected free surplus to be generated in year 2052* 135 135
Foreign exchange differences (24) (22) (20) (20) (18) (460) (564)
New business 105 129 129 99 98 2,149 2,709
Operating movements (21) 9 (6)    
Non-operating and other movements 12 20 11 17 16 (2,125) (2,067)
2012 expected free surplus generation for years 2013 to 2052 719 761 724 686 654 13,697 17,241

Download as excel file

US 2012
£m
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Other
£m
Total
£m
2011 expected free surplus generation for years 2012 to 2051 680 485 450 480 484 438 2,996 6,013
Less: amounts expected to be realised in the current year (680) (680)
Add: expected free surplus to be generated in year 2052*
Foreign exchange differences (21) (20) (21) (22) (20) (134) (238)
New business 269 108 113 37 115 764 1,406
Acquisition of REALIC 45 35 44 38 41 738 941
Operating movements (4) 7 14 20 18    
Non-operating and other movements 11 (8) (30) (5) 84 107
2012 expected free surplus generation for years 2013 to 2052 785 572 600 557 587 4,448 7,549

Download as excel file

UK 2012
£m
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Other
£m
Total
£m
  • * Excluding 2012 new business.
  • Includes an adjustment of £102 million to the cash flows for which there is no definitive timeframe for their emergence and therefore which have been removed from the cash flows presented at 31 December 2012.
2011 expected free surplus generation for years 2012 to 2051 423 502 472 437 428 412 7,673 10,347
Less: amounts expected to be realised in the current year (423) (423)
Add: expected free surplus to be generated in year 2052* 40 40
New business 27 23 23 20 23 506 622
Operating movements 23 21 9 4 5    
Non-operating and other movements (106) (33) (5) (8) (10) (124) (224)
2012 expected free surplus generation for years 2013 to 2052 446 483 464 444 430 8,095 10,362

At 31 December 2012, the total free surplus expected to be generated over the next five years (years 2013 to 2017 inclusive), using the same assumptions and methodology as underpin our embedded value reporting was £8.9 billion, an increase of £1.3 billion from the £7.6 billion expected over the same period at the end of 2011.

This increase primarily reflects the new business written in 2012, which is expected to generate £1,318 million of free surplus over the next five years. Operating movements contributed positive £99 million. The acquisition of REALIC contributed positive expected cash flows of £203 million over the next five years. Non-operating and other items, including foreign exchange movements, reduced expected free surplus generation for the next five years by £326 million.

At 31 December 2012, the total free surplus expected to be generated on an undiscounted basis in the next 40 years is £35 billion, up from the £34 billion expected at end of 2011. This is after allowing for adverse market movements in the period, with a £0.8 billion reduction due to foreign exchange and negative market movements in Asia as a result of lower fund earned rates. A significant proportion of these market movements arise in Hong Kong reflecting both the projected derisking of the asset portfolio for participating business and lower local government bond yields (fall of 90 basis points) and Singapore where government bond yields have fallen by 30 basis points. The overall growth in the undiscounted value of free surplus, notwithstanding these impacts, reflects both our ability to write new business on attractive economics and to manage the in-force book for value.

Actual underlying free surplus generated in 2012 from life business in-force at the end of 2011 was £2.3 billion inclusive of £0.3 billion of changes in operating assumptions and experience variances. This compares with the expected 2012 realisation at the end of 2011 of £1.8 million. This can be analysed further as follows:

Download as excel file

  Asia
£m
US
£m
UK
£m
Total
£m
Transfer to free surplus in 2012 635 777 511 1,923
Expected return on free assets 56 40 96
Changes in operating assumptions and experience variances 80 219 (4) 295
Underlying free surplus generated from in-force life business in 2012 771 1,036 507 2,314
2012 free surplus expected to be generated at 31 December 2011 674 680 423 1,777

The equivalent discounted amounts of the undiscounted totals shown previously are outlined below:

Download as excel file

  2012 £m
  Discounted expected generation from all in-force business at 31 December   Discounted expected generation from
long-term 2012 new business written
Expected period of emergence Asia US UK Total   Asia US UK Total
2013 687 766 418 1,871   101 260 26 387
2014 679 526 426 1,631   113 98 21 232
2015 604 520 385 1,509   106 96 19 221
2016 537 455 346 1,338   76 30 16 122
2017 480 456 315 1,251   69 87 17 173
2018 434 404 284 1,122   57 55 15 127
2019 401 352 258 1,011   56 44 12 112
2020 375 344 234 953   55 74 11 140
2021 345 277 213 835   48 58 11 117
2022 318 230 196 744   48 45 10 103
2023 282 210 180 672   40 39 9 88
2024 255 168 164 587   37 27 8 72
2025 232 124 150 506   32 21 8 61
2026 215 106 138 459   30 17 8 55
2027 197 90 124 411   36 14 7 57
2028 198 75 110 383   28 10 7 45
2029 181 64 100 345   26 8 6 40
2030 167 59 91 317   23 6 6 35
2031 153 50 81 284   21 5 6 32
2032 141 53 74 268   22 5 5 32
2033 to 2037 545 77 246 868   77 5 20 102
2038 to 2042 359 33 133 525   49 (4) 15 60
2043 to 2047 240 47 287   33 7 40
2048 to 2052 153 19 172   27 4 31
Total discounted free surplus expected to emerge in the next 40 years 8,178 5,439 4,732 18,349   1,210 1,000 274 2,484

The above amounts can be reconciled to the Group’s financial statements as follows:

Download as excel file

  Total £m

* These relate to items where there is no definitive timeframe for when the payments will be made or receipts received and are, consequently, excluded from the amounts incorporated into the tables above showing the expected generation of free surplus from in-force business at 31 December 2012. In particular it excludes the value of the shareholders’ interest in the estate.

Discounted expected generation from all in-force business for years 2013 to 2052 18,349
Discounted expected generation from all in-force business for years after 2052 242
Discounted expected generation from all in-force business at 31 December 2012 18,591
Add: Free surplus of life operations held at 31 December 2012 2,957
Less: Time value of guarantees (683)
Other non-modelled items*note15 1,401
Total EEV for life operations 22,266

III(c): Option schemes

The Group maintains four share option schemes satisfied by the issue of new shares. UK-based executive directors are eligible to participate in the UK savings-related share option scheme, and executives based in Asia can participate in the International savings-related share option scheme. Dublin-based employees are eligible to participate in the Prudential International Assurance sharesave plan, and Hong Kong based agents can participate in the Non-employee savings-related share option scheme. Further details of the schemes and accounting policies are detailed in note I4 of the IFRS basis consolidated financial statements.

All options were granted at £nil consideration. No options have been granted to substantial shareholders, suppliers of goods or services (excluding options granted to agents under the Non-employee savings-related share option scheme) or in excess of the individual limit for the relevant scheme.

The options schemes will terminate as follows, unless the directors resolve to terminate the plans at an earlier date:

  • UK savings-related share option scheme: 8 May 2013;
  • International savings-related share option scheme: 31 May 2021;
  • Prudential International Assurance sharesave plan: 3 August 2019; and
  • Prudential International savings-related share option scheme for non-employees 2012: 17 May 2022.

The weighted average share price of Prudential plc for the year ended 31 December 2012 was £7.69 (2011: £6.86).

Particulars of options granted to directors are included in the Directors’ remuneration report.

The closing price of the shares immediately before the date on which the options were granted during the current period was £8.22.

The following analyses show the movement in options for each of the option schemes for the year ended 31 December 2012.

UK Savings Related Share Option Scheme

Download as excel file

    Exercise period Number of options
Date of grant Exercise
price £
Beginning End Beginning
of period
Granted Exercised Cancelled Forfeited Lapsed End of
period
30 Sep 2004 3.43 01 Dec 2011 31 May 2012 3,852 (3,852)
12 Apr 2005 3.87 01 Jun 2012 30 Nov 2012 8,528 (8,528)
29 Sep 2005 4.07 01 Dec 2012 31 May 2013 9,072 (5,292) 3,780
20 Apr 2006 5.65 01 Jun 2013 30 Nov 2013 7,322 7,322
28 Sep 2006 4.75 01 Dec 2011 31 May 2012 11,029 (11,029)
28 Sep 2006 4.75 01 Dec 2013 31 May 2014 13,325 13,325
26 Apr 2007 5.72 01 Jun 2010 30 Nov 2010 2,865 (2,865)
26 Apr 2007 5.72 01 Jun 2012 30 Nov 2012 7,191 (7,191)
26 Apr 2007 5.72 01 Jun 2014 30 Nov 2014 503 503
27 Sep 2007 5.52 01 Dec 2012 31 May 2013 17,264 (12,156) 5,108
27 Sep 2007 5.52 01 Dec 2014 31 May 2015 1,668 1,668
25 Apr 2008 5.51 01 Jun 2013 30 Nov 2013 27,099 (453) (137) 26,509
25 Apr 2008 5.51 01 Jun 2015 30 Nov 2015 1,544 1,544
25 Sep 2008 4.38 01 Dec 2011 31 May 2012 40,617 (38,162) (2,455)
25 Sep 2008 4.38 01 Dec 2013 31 May 2014 47,353 (2,674) (1,305) 43,374
25 Sep 2008 4.38 01 Dec 2015 31 May 2016 11,371 (90) (76) 11,205
27 Apr 2009 2.88 01 Jun 2012 30 Nov 2012 2,767,654 (2,738,947) (4,694) (10,783) (7,521) 5,709
27 Apr 2009 2.88 01 Jun 2014 30 Nov 2014 1,789,848 (27,164) (6,944) (16,820) (19,715) 1,719,205
27 Apr 2009 2.88 01 Jun 2016 30 Nov 2016 178,968 (352) (795) (329) 177,492
25 Sep 2009 4.25 01 Dec 2012 31 May 2013 224,295 (173,784) (5,721) (2,433) (1,372) 40,985
25 Sep 2009 4.25 01 Dec 2014 31 May 2015 90,865 (2,027) (117) (2,070) 86,651
28 Sep 2010 4.61 01 Dec 2013 31 May 2014 271,969 (1,408) (7,644) (4,875) (1,322) 256,720
28 Sep 2010 4.61 01 Dec 2015 31 May 2016 134,304 (1,569) (1,339) (5,021) (2,514) 123,861
16 Sep 2011 4.66 01 Dec 2014 31 May 2015 485,420 (2,373) (12,818) (4,516) (7,514) 458,199
16 Sep 2011 4.66 01 Dec 2016 31 May 2017 197,637 (15) (5,357) (7,580) (115) 184,570
21 Sep 2012 6.29 01 Dec 2015 31 May 2016 995,343 (3,148) (5,294) 986,901
21 Sep 2012 6.29 01 Dec 2017 31 May 2018 152,281 (4,772) 147,509
        6,351,563 1,147,624 (3,037,066) (53,232) (57,439) (49,310) 4,302,140

The total number of securities available for issue under the scheme is 4,302,140 which represents 0.168 per cent of the issued share capital at 31 December 2012.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £7.13.

The weighted average fair value of options granted under the plan in the period was £2.28.

International Savings Related Share Option Scheme

Download as excel file

    Exercise period Number of options
Date of grant Exercise
price £
Beginning End Beginning
of period
Granted Exercised Cancelled Forfeited Lapsed End of
period
20 Apr 2006 5.65 01 Jun 2011 30 Nov 2011 820 (820)
28 Sep 2006 4.75 01 Dec 2011 31 May 2012 709 (709)
26 Apr 2007 5.72 01 Jun 2012 30 Nov 2012 17,847 (2,778) (580) 14,489
27 Sep 2007 5.52 01 Dec 2010 31 May 2011 22,185 (22,185)
25 Apr 2008 5.51 01 Jun 2011 30 Nov 2011 8,928 (8,928)
25 Apr 2008 5.51 01 Jun 2013 30 Nov 2013 4,192 4,192
25 Sep 2008 4.38 01 Dec 2011 31 May 2012 195,889 (28,952) (418) (85) (166,434)
25 Sep 2008 4.38 01 Dec 2013 31 May 2014 6,951 6,951
27 Apr 2009 2.88 01 Jun 2012 30 Nov 2012 1,740,780 (1,652,468) (20,966) (3,454) (418) 63,474
27 Apr 2009 2.88 01 Jun 2014 30 Nov 2014 81,218 (1,748) (1,337) 78,133
25 Sep 2009 4.25 01 Dec 2012 31 May 2013 110,422 (59,246) (5,541) (3,945) (149) 41,541
25 Sep 2009 4.25 01 Dec 2014 31 May 2015 2,682 2,682
28 Sep 2010 4.61 01 Dec 2013 31 May 2014 157,107 (699) (17,743) (19,502) 119,163
28 Sep 2010 4.61 01 Dec 2015 31 May 2016 6,130 6,130
16 Sep 2011 4.66 01 Dec 2014 31 May 2015 410,756 (52) (20,880) (36,983) 352,841
16 Sep 2011 4.66 01 Dec 2016 31 May 2017 25,739 25,739
21 Sep 2012 6.29 01 Dec 2015 31 May 2016 691,531 (3,228) (6,935) 681,368
21 Sep 2012 6.29 01 Dec 2017 31 May 2018 34,701 34,701
        2,792,355 726,232 (1,744,195) (70,524) (72,821) (199,643) 1,431,404

The total number of securities available for issue under the scheme is 1,431,404 which represents 0.056 per cent of the issued share capital at 31 December 2012.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £7.01.

The weighted average fair value of options granted under the plan in the period was £2.28.

Prudential International Assurance Sharesave Plan

Download as excel file

    Exercise period Number of options
Date of grant Exercise
price £
Beginning End Beginning
of period
Granted Exercised Cancelled Forfeited Lapsed End of
period
25 Sep 2008 4.38 01 Dec 2011 31 May 2012 691 (691)
27 Apr 2009 2.88 01 Jun 2012 30 Nov 2012 30,320 (26,516) (158) 3,646
27 Apr 2009 2.88 01 Jun 2014 30 Nov 2014 6,567 6,567
25 Sep 2009 4.25 01 Dec 2012 31 May 2013 2,426 (1,627) (160) 639
        40,004 (28,834) (318) 10,852

The total number of securities available for issue under the scheme is 10,852 which represents 0.001 per cent of the issued share capital at 31 December 2012.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £7.00.

Non-employee Savings Related Share Option Scheme

Download as excel file

    Exercise period Number of options
Date of grant Exercise
price £
Beginning End Beginning
of period
Granted Exercised Cancelled Forfeited Lapsed End of
period
28 Sep 2006 4.75 01 Dec 2011 31 May 2012 5,386 (3,366) (2,020)
26 Apr 2007 5.72 01 Jun 2012 30 Nov 2012 15,557 (2,778) 12,779
27 Sep 2007 5.52 01 Dec 2010 31 May 2011 7,607 (7,607)
27 Sep 2007 5.52 01 Dec 2012 31 May 2013 2,970 2,970
25 Apr 2008 5.51 01 Jun 2011 30 Nov 2011 4,589 (4,589)
25 Apr 2008 5.51 01 Jun 2013 30 Nov 2013 3,834 3,834
25 Sep 2008 4.38 01 Dec 2011 31 May 2012 40,488 (37,857) (2,631)
25 Sep 2008 4.38 01 Dec 2013 31 May 2014 13,708 13,708
27 Apr 2009 2.88 01 Jun 2012 30 Nov 2012 874,201 (846,669) 27,532
27 Apr 2009 2.88 01 Jun 2014 30 Nov 2014 714,326 (14,564) (13,396) 686,366
25 Sep 2009 4.25 01 Dec 2012 31 May 2013 46,446 (29,770) 16,676
25 Sep 2009 4.25 01 Dec 2014 31 May 2015 11,717 11,717
28 Sep 2010 4.61 01 Dec 2013 31 May 2014 1,118,575 (10,141) (11,692) 1,096,742
28 Sep 2010 4.61 01 Dec 2015 31 May 2016 375,352 (6,502) 368,850
16 Sep 2011 4.66 01 Dec 2014 31 May 2015 644,407 (14,491) (20,973) 608,943
16 Sep 2011 4.66 01 Dec 2016 31 May 2017 266,624 (3,942) 262,682
21 Sep 2012 6.29 01 Dec 2015 31 May 2016 443,315 443,315
21 Sep 2012 6.29 01 Dec 2017 31 May 2018 97,731 (1,431) 96,300
        4,145,787 541,046 (920,440) (65,898) (46,061) (2,020) 3,652,414

The total number of securities available for issue under the scheme is 3,652,414 which represents 0.143 per cent of the issued share capital at 31 December 2012.

The weighted average closing price of the shares immediately before the dates on which the options were exercised during the current period was £7.11.

The weighted average fair value of options granted under the plan in the period was £2.28.

 
 

Reporting tools

Save pages of the report
to download, print or email

View your pages

Feedback

Your comments and ideas help us
to shape future reports to suit your needs

Tell us your views