Prelims 2009 Julian Roberts

 

 

"Our operating results for 2009 are ahead of the previous year despite the highly volatile markets over the period.  We benefited from improved market conditions in the second half, which resulted in greater demand for equity-based products from our clients, but the improvement also reflects our aggressive expense management as part of our drive to improve business performance.  In the fourth quarter we saw especially good sales growth, with the strongest LTS quarterly sales performance for two years." Read more.

Julian Roberts - Group Chief Executive
View Preliminary Results Announcement

Strong performance in challenging year

  • Substantial progress in delivering against the five strategic priorities set last year
  • Positive second half sales momentum with fourth quarter life APE sales up 29%, strongest quarter for the LTS business for at least 2 years
  • Long-Term Savings (LTS): IFRS pre-tax AOP up 52% to £685 million (2008: £452 million) reflecting turnaround in US Life
  • Nedbank: resilient performance in tough market and improved capital strength
  • US Asset Management: funds under management at 31 December 2009 up 9% to $261 billion
  • FGD surplus at 31 December 2009 increased to £1.5 billion (31 December 2008: £0.7 billion)
  • Increase in IFRS book value and MCEV per share during the year
  • Return to dividend payments - Board recommending 1.5p final dividend for 2009 with scrip alternative

Clear strategy focused on building a long-term savings, protection and investment group

  • Anticipated partial IPO of US Asset Management to fund growth, enhance market profile and provide valuation visibility
  • Group-wide cost saving target of £100 million per annum by the end of 2012; further cost and revenue synergies identified
  • Specific cost saving and return on equity targets for LTS businesses; overall LTS return on equity target of 16%-18% by the end of 2012
  • Further rationalisation planned, including exiting markets with sub-scale operations or no prospect of meeting 15% RoE hurdle
  • Reducing exposure to US by exploring disposal of US Life business following completion of turnaround
  • Proceeds from the rationalisation and from retained earnings expected to be used to reduce Group debt by at least £1.5 billion

View the Preliminary Results Announcement