Financial highlights

Balancing capital consumption and value optimisation

Life APE new business sales

Life APE new business sales. 2011: Asia £1,660m US £1,275m UK £746m. 2012: Asia £1,897m US £1,462m UK £836m.

New business profit

New business profit. 2011: Asia £1,076m US £815m UK £260m. 2012: Asia £1,266m US £873m UK £313m.

Free surplus investment in new business

Free surplus investment in new business. 2011: Asia £54m US £202m UK £297m. 2012: Asia £45m US £281m UK £292m.

  • purpleAsia
  • pinkUS
  • blueUK

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  Asia US UK Group
  2012 2011 2012 2011 2012 2011 2012 2011
New business profit margin 67% 65% 60% 64% 37% 35% 58% 58%
Payback period 3 years 3 years 2 years 1 year 3 years 4 years 2 years 2 years
Internal rate of return >20% >20% >20% >20% >20% >20% >20% >20%

Shareholder-backed policyholder liabilities

Shareholder-backed policyholder liabilities. At 1 Jan 2011: Asia £17,716m US £60,523m UK £43,944m. At 1 Jan 2012: Asia £18,269m US £69,189m UK £46,048m. At 31 Dec 2012: Asia £21,213m US £92,261m UK £49,505m

  • purpleAsia
  • pinkUS
  • blueUK
  • dark greyOther movements

IFRS operating profit

IFRS operating profit. 2011: M&G £357m Other asset management business £104m. 2012: M&G £371m Other asset management business £114m.

External funds under management

External funds under management. 2011: M&G £91.9bn Other asset management business £19.3bn. 2012: M&G £111.9bn Other asset management business £21.6bn.

Total asset management net inflows

Total asset management net inflows. 2011: Total asset management £4,506m. 2012: Total asset management £18,281m.

M&G net inflows

M&G net inflows. 2011: M&G £4,385m. 2012: M&G £16,881m.

  • dark greenM&G2
  • greyOther asset management business
  • dark greyTotal asset management

IFRS operating profit3, 4, 5

IFRS operating profit. 2011: £2,027m. 2012: £2,533m.

EEV operating profit

EEV operating profit. 2011: £3,987m. 2012: £4,321m.

Dividend per share relating to the reporting year

Dividend per share relating to the reporting year. 2011: 25.19p. 2012:29.19p.

Basic earnings per share – based on operating profit after tax and non-controlling interest

Basic earnings per share – based on operating profit after tax and non-controlling interest. 2011: EEV 115.7p  IFRS 62.8p. 2012: EEV 125.0p IFRS 76.8p.

  • dark greyEEV
  • redIFRS3

Underlying free surplus generated6

Underlying free surplus generated. 2011: £1,983m. 2012: £2,082m.

IGD capital before final dividend7, 8

IGD capital before final dividend. 2011: £4.0bn. 2012: £5.1bn.

Business unit net remittances9

Business unit net remittances. 2011: £1,105m. 2012: £1,200m.

Holding company cash balances

Holding company cash balances. 2011: £1,200m. 2012: £1,380m.

EEV shareholders' funds

EEV shareholders' funds. 2011: £19.6bn. 2012: £22.4bn.

IFRS shareholders' funds3

IFRS shareholders' funds. 2011: £8.6bn. 2012: £10.4bn.

  • greyReturn on shareholders' funds10, 11

EEV shareholders’ funds per share. 2011: Including goodwill 771p Excluding goodwill 713p. 2012: Including goodwill 878p Excluding goodwill 820p.

  • dark greyIncluding goodwill
  • redExcluding goodwill

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 49.99 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. Comparatives adjusted for retrospective application of the accounting policy change for deferred acquisition costs as discussed in note A5 of the IFRS financial statements.
  4. 2012 operating profit includes one-off gain of £51 million arising on sale of Group’s interest in China Life Insurance Company of Taiwan.
  5. 2011 included accelerated deferred acquisition costs (DAC) amortisation of £190 million which has not recurred.
  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. From March 2013 the basis of calculating Jackson’s contribution to the Group’s IGD surplus will change, further detail can be found in the ‘Capital position, financing and liquidity’ section of the Chief Financial Officer’s Overview.
  9. Remittances from Asia in 2012 include net remittance of £27 million, representing cash from the sale of the Group’s holding in China Life Insurance Company in Taiwan offset by repayment of funding contingent on future profits of the Hong Kong life insurance operations.
  10. IFRS operating profit after tax and non-controlling interests as percentage of opening IFRS shareholders’ funds. Comparatives adjusted for retrospective application of the accounting policy change for deferred acquisition costs as discussed in note A5 of IFRS financial statements.
  11. EEV operating profit after tax and non-controlling interests as percentage of opening EEV shareholders’ funds.
 
 

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