"We have delivered a creditable performance despite continued volatility in equity markets, and have taken a number of decisive actions in line with the strategic priorities we set out in March.
"Our capital position was reinforced during the second quarter and our Group pro-forma FGD position is now above £1 billion. We have substantially de-risked our US businesses and our new operating model represents a fundamental shift to stronger governance from the centre.
"For the past 12 months, our primary focus has been on fixing our problems and protecting ourselves against the downside. With the actions to do that largely complete, we can start to look past the immediate market challenges and begin to position ourselves for the upside which will come as markets recover."
Julian Roberts - Group Chief Executive
View the full Interim Results press release
Financial Highlights - A creditable performance in difficult markets
- Positive Group net client cash flows of £0.2 billion despite lower sales
- OMSA long-term business adjusted operating profit of R1.82 billion (2008: R1.84 billion) demonstrates strength of diverse product offering
- Nordic Life sales up 22% to £134 million (2008: £110 million) due to improved product range and stronger distribution
- UK net client inflows of £0.4 billion driven by growth in platform sales
- US Asset Management net client inflows of $0.6 billion demonstrates strength of boutique model
- Group pro-forma FGD surplus at 30 June of £1 billion (31 December 2008: £0.7 billion).
Operational and Strategic Highlights - Good progress in delivering on priorities
- Closed Hong Kong office, sold Australian businesses, withdrew from ABN-Amro TEDA Chinese asset management acquisition
- Withdrawal from markets where scale not achievable: Portugal, Hungary, Czech Republic
- Major restructuring of US Life and OMCAP, creating greater focus and lower cost base
- New Group operating model to strengthen central governance
- Long-Term Savings structure introduced to leverage competitive advantages and capabilities.
New Chairman Appointed
- As announced separately today, on Chris Collins' retirement at the end of the year, Patrick O'Sullivan will join the Group as Chairman, bringing strong financial services and corporate restructuring experience to the Board.