This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more about cookies

close

European Embedded Value (EEV) basis results

Post-tax operating profit based on longer-term investment returns

Results analysis by business area

Download as excel file

    2014 £m 2013* £m
  Note Half year

Half year
note(ii)
Full year

* The 2014 EEV results of the Group are presented on a post-tax basis and, accordingly, the half year and full year 2013 results are shown on a comparable basis. This approach has been adopted throughout this supplementary information.

Notes

  1. EEV basis other income and expenditure represents the IFRS basis post-tax result, less the unwind of expected margins on the internal management of the assets of the covered business (as explained in note 14(c)(vi)).
  2. The comparative results have been prepared using previously reported average exchange rates for the period. For memorandum disclosure purposes note 2 presents the half year 2013 results on both actual exchange rates (AER) and constant exchange rates (CER) bases.
Asia operations        
New business 3 494 502 1,139
Business in force 4 339 327 753
Long-term business   833 829 1,892
Eastspring Investments   36 32 64
Development expenses   (1) (2) (1)
Total   868 859 1,955
US operations        
New business 3 376 311 706
Business in force 4 401 396 820
Long-term business   777 707 1,526
Broker-dealer and asset management   (5) 21 39
Total   772 728 1,565
UK operations        
New business 3 145 100 237
Business in force 4 243 204 595
Long-term business   388 304 832
General insurance commission   9 11 22
Total UK insurance operations   397 315 854
M&G (including Prudential Capital)   200 175 346
Total   597 490 1,200
Other income and expenditurenote (i)   (280) (235) (482)
Solvency II and restructuring costs   (14) (21) (34)
Post-tax operating profit based on longer-term investment returns   1,943 1,821 4,204
Analysed as profits (losses) from:        
New business 3 1,015 913 2,082
Business in force 4 983 927 2,168
Long-term business   1,998 1,840 4,250
Asset management   231 228 449
Other results   (286) (247) (495)
Total   1,943 1,821 4,204

Post-tax summarised consolidated income statement

Download as excel file

    2014 £m 2013* £m
  Note Half year

Half year
note
Full year

* The 2014 EEV results of the Group are presented on a post-tax basis and, accordingly, the half year and full year 2013 results are shown on a comparable basis – see note 1.

Note

The comparative results have been prepared using previously reported average exchange rates for the period. For memorandum disclosure purposes note 2 presents the half year 2013 results on both actual exchange rates (AER) and constant exchange rates (CER) bases.

Post-tax operating profit based on longer-term investment returns        
Asia operations   868 859 1,955
US operations   772 728 1,565
UK operations:        
UK insurance operations   397 315 854
M&G (including Prudential Capital)   200 175 346
    597 490 1,200
Other income and expenditure   (280) (235) (482)
Solvency II and restructuring costs   (14) (21) (34)
Post-tax operating profit based on longer-term investment returns   1,943 1,821 4,204
Short-term fluctuations in investment returns 7 432 (587) (564)
Effect of changes in economic assumptions 8 (368) 534 629
Mark to market value movements on core borrowings   (66) 203 152
Loss attaching to held for sale Japan life business 5 (47) (35)
Costs of domestication of Hong Kong branch 6 (7) (28)
Total post-tax non-operating profit   (9) 103 154
Profit for the period attributable to equity holders of the Company   1,934 1,924 4,358

Earnings per share

Download as excel file

  2014 2013
  Half year

Half year
note
Full year

Note

The comparative results have been prepared using previously reported average exchange rates for the period. For memorandum disclosure purposes note 2 presents the half year 2013 results on both actual exchange rates (AER) and constant exchange rates (CER) bases.

Based on post-tax operating profit including longer-term investment returns of £1,943 million (half year 2013: £1,821 million; full year 2013: £4,204 million) (in pence) 76.3p 71.5p 165.0p
Based on post-tax profit of £1,934 million (half year 2013: £1,924 million; full year 2013: £4,358 million) (in pence) 75.9p 75.5p 171.0p
Average number of shares (millions) 2,547 2,548 2,548

Dividends per share (in pence)

Download as excel file

  2014 2013
  Half year Half year Full year
Dividends relating to reporting period:      
Interim dividend (2014 and 2013) 11.19p 9.73p 9.73p
Final dividend (2013) 23.84p
Total 11.19p 9.73p 33.57p
Dividends declared and paid in reporting period:      
Current year interim dividend 9.73p
Final dividend for prior year 23.84p 20.79p 20.79p
Total 23.84p 20.79p 30.52p

Movement in shareholders' equity

Download as excel file

    2014 £m 2013* £m
  Note Half year Half year Full year

* The 2014 EEV results of the Group are presented on a post-tax basis and, accordingly, the half year and full year 2013 results are shown on a comparable basis – see note 1.

Profit for the period attributable to equity shareholders   1,934 1,924 4,358
Items taken directly to equity:        
Exchange movements on foreign operations and net investment hedges   (377) 693 (1,077)
Dividends   (610) (532) (781)
New share capital subscribed   8 1 6
Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes   10 (26) (53)
Reserve movements in respect of share-based payments   52 31 98
Treasury shares:        
Movement in own shares in respect of share-based payment plans   (34) 25 (10)
Movement in own shares purchased by unit trusts consolidated under IFRS   (6) 2 (31)
Mark to market value movements on Jackson assets backing surplus and required capital   71 (39) (97)
Net increase in shareholders’ equity 11 1,048 2,079 2,413
Shareholders’ equity at beginning of period:        
As previously reported 11 24,856 22,443 22,443
Effect of the domestication of Hong Kong branch on 1 January 2014 6 (11)
    24,845 22,443 22,443
Shareholders’ equity at end of period 11 25,893 24,522 24,856

Download as excel file

  30 Jun 2014 £m   30 Jun 2013 £m   31 Dec 2013 £m
Comprising: Long-term business operations Asset management and other operations Total   Long-term business operations Asset management and other operations Total   Long-term business operations Asset management and other operations Total
Asia operations:                      
Net assets of operations 10,769 192 10,961   10,921 217 11,138   10,305 194 10,499
Acquired goodwill 228 61 289   244 61 305   231 61 292
  10,997 253 11,250   11,165 278 11,443   10,536 255 10,791
US operations:                      
Net assets of operations 7,155 125 7,280   6,638 127 6,765   6,966 118 7,084
Acquired goodwill 16 16   16 16   16 16
  7,155 141 7,296   6,638 143 6,781   6,966 134 7,100
UK insurance operations:                      
Net assets of operations 7,654 9 7,663   7,096 11 7,107   7,342 22 7,364
M&G:                      
Net assets of operations 506 506   511 511   449 449
Acquired goodwill 1,153 1,153   1,153 1,153   1,153 1,153
  1,659 1,659   1,664 1,664   1,602 1,602
  7,654 1,668 9,322   7,096 1,675 8,771   7,342 1,624 8,966
Other operations:                      
Holding company net borrowings at market valuenote 9 (2,696) (2,696)   (2,580) (2,580)   (2,373) (2,373)
Other net assets 721 721   107 107   372 372
  (1,975) (1,975)   (2,473) (2,473)   (2,001) (2,001)
Shareholders’ equity at end of period 25,806 87 25,893   24,899 (377) 24,522   24,844 12 24,856
Representing:                      
Net assets (liabilities) 25,578 (1,143) 24,435   24,655 (1,607) 23,048   24,613 (1,218) 23,395
Acquired goodwill 228 1,230 1,458   244 1,230 1,474   231 1,230 1,461
  25,806 87 25,893   24,899 (377) 24,522   24,844 12 24,856

Net asset value per share

Download as excel file

  2014   2013
  30 Jun   30 Jun 31 Dec

* Annualised return on embedded value is based on EEV post-tax operating profit, as a percentage of opening EEV basis shareholders’ equity. Half year profits are annualised by multiplying by two.

Based on EEV basis shareholders’ equity of £25,893 million (half year 2013: £24,522 million; full year 2013: £24,856 million) (in pence) 1,009p   958p 971p
Number of issued shares at period end (millions) 2,566   2,559 2,560
Annualised return on embedded value* 16%   16% 19%

Summary statement of financial position

Download as excel file

    2014 £m   2013 £m
  Note 30 Jun   30 Jun 31 Dec

* Including liabilities in respect of insurance products classified as investment contracts under IFRS 4.

Total assets less liabilities, before deduction for insurance funds   300,630   286,583 288,826
Less insurance funds:*          
Policyholder liabilities (net of reinsurers’ share) and unallocated surplus of with-profits funds   (290,005)   (276,958) (279,176)
Less shareholders’ accrued interest in the long-term business   15,268   14,897 15,206
    (274,737)   (262,061) (263,970)
Total net assets 11 25,893   24,522 24,856
Share capital   128   128 128
Share premium   1,903   1,890 1,895
IFRS basis shareholders’ reserves   8,594   7,607 7,627
Total IFRS basis shareholders’ equity 11 10,625   9,625 9,650
Additional EEV basis retained profit 11 15,268   14,897 15,206
Total EEV basis shareholders’ equity (excluding non-controlling interests) 11 25,893   24,522 24,856
Return to top

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