Financial highlights

Balancing capital consumption and value optimisation

Bar chart - Life APE new business sales: +6% - 2010 £3,485m (UK:£820m, US:£1,164m, Asia:£1,501m) - 2011 £3,681m (UK: £746m, US:£1,275m, Asia:£1,660m)

Bar chart - New business profit: 2010 £2,028m (UK:£365m, US:£761m, Asia:£902m) - 2011 £2,151m +6% (UK:£260m, US:£815m, Asia:£1,076m)

Bar chart - Free surplus investment in new business: 2010 £(643)m (UK:£(65)m, US:£(300)m, Asia:£(278)m) - 2011 £(553)m +14% (UK:£(54)m, US:£(202)m, Asia:£(297)m)

  •  Asia1
  •  US
  •  UK
  Asia1 US UK Group
  2011 2010 2011 2010 2011 2010 2011 2010
New business profit margin 65% 60% 64% 65% 35% 45% 58% 58%
Payback period2 3 years 3 years 1 year 1 year 4 years 4 years 2 years 2 years
Internal rate of return >20% >20% >20% >20% >20% >20% >20% >20%

Bar chart - IFRS operating profit: 2010 (Other asset management company: £378m, M&G: £284m) - 2011 +22% (Other asset management company: £461m, M&G: £357m)

Bar chart - External funds under management: 2010 (Other asset management company: £111.4bn, M&G: £89.3bn) - 2011 (Other asset management company: £111.2bn, M&G: £91.9bn)

Bar chart - Total asset management net inflow: 2010 £8,890m - 2011 £4,506m - 49%

Bar chart - M&G net inflows: 2010 £9,105m  - 2011 £4,385m -52%

  •  M&G
  •  Other asset management company
  •  Total asset management

Bar chart - IFRS operating profit: 2010 £1,941m - 2011 £2,070m +7%

Bar chart - EEV operating profit: 2010 £3,696m - 2011 £3,978m +8%

Bar chart - Dividend per share relating to the reporting year: 2010 23.85p - 2011 25.19p +5.6%

Line chart - Basic earnings per share: 2010 (EEV: 106.9p, IFRS:62.0p) - 2011 (EEV: 115.7p +8%, IFRS:63.9p +3%)

Bar chart - Underlying free surplus generated: 2010 £1,714m - 2011 £1,983m +16%

Bar chart - IGD capital before final dividend: 2010 £4.3bn - 2011 £4.0bn -7%

Bar chart - Cash remitted to Group: 2010 £935m - 2011 £1,105m +18%

Bar chart - Holding company cash balances: 2010 £1,232m - 2011 £1,200m -3%

Notes

  • 1 Asia new business amounts exclude Japan, which ceased writing new business in 2010.
  • 2 Payback: expected period over which future undiscounted free surplus generation from shareholder-backed business recoups initial new business investment.
  • 3 Net liability flows are defined as movements in shareholder-backed policyholder liabilities arising from premiums (net of charges), surrenders, maturities and deaths.
  • 4 Based on operating profit after tax and non-controlling interests. 2010 excludes an exceptional tax credit of £158 million which primarily related to the impact of a settlement agreed with the UK tax authorities.
  • 5 Underlying free surplus generated comprises underlying free surplus generated from the Group’s long-term business (net of investment in new business) and asset management operations.
  • 6 For 2011, IGD amounts are estimated. Both 2010 and 2011 are stated before final dividend.
  • 7 Including short-term investments.
  • 8 Operating profit after tax and non-controlling interests in (but including in 2010 exceptional tax credit of £158 million) as percentage of opening shareholders’ funds.
 
 

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