European Embedded Value Supplementary Information
for the six months ended 30 June 2006
2 Reconciliation of movements in group embedded value
|
£m
|
|||
|
6 months ended
30 June 2006 |
6 months ended
30 June 2005 |
Year ended
31 December 2005 |
|
|
Group embedded value at beginning of the period |
5,808
|
4,754
|
4,754
|
|
Exclusion of goodwill in respect of US covered business |
-
|
(59)
|
(59)
|
|
Restated group embedded value at beginning of the period |
5,808
|
4,695
|
4,695
|
|
Change in equity arising in the period |
|||
|
Fair value (losses) / gains |
(55)
|
18
|
(77)
|
|
Currency translation differences / exchange differences on translating foreign operations |
(921)
|
(264)
|
263
|
|
Cash flow hedge amortisation |
-
|
2
|
(12)
|
|
Redemption of convertible bond |
-
|
(18)
|
(18)
|
|
Aggregate tax effects of items taken directly to or transferred from equity |
10
|
-
|
-
|
|
Other |
44
|
(182)
|
(383)
|
|
Net income recognised directly into equity |
(922)
|
(444)
|
(227)
|
|
Profit for the period |
561
|
590
|
1,281
|
|
Total recognised income and expense for the period |
(361)
|
146
|
1,054
|
|
Dividend for the period |
(196)
|
(118)
|
(184)
|
|
Issue of perpetual preferred callable securities |
-
|
-
|
159
|
|
Issue of share capital |
2,670
|
-
|
-
|
|
Exercise of share options |
12
|
3
|
4
|
|
Fair value equity settled share options |
10
|
4
|
80
|
|
Exclusion of adjustment to include Skandia long-term business on a statutory solvency basis as at the date of acquisition |
(3,352)
|
-
|
-
|
|
Acquired value of in-force business of Skandia (on Old Mutual basis) |
2,085
|
-
|
-
|
|
Group embedded value at end of the period |
6,676
|
4,730
|
5,808
|
* The prior period results have been restated to:
(i) Exclude goodwill relating to United States long-term business of £66 million, £63 million and £59 million as at 30 June 2006, 30 June 2005 and 1 January 2005. Any changes in value over the prior periods results from and is included in currency translation differences.
(ii) Include the adjustment for market value of life funds' investments in Group equity and debt instruments in the adjusted net worth of the covered business of £467 million, £339 million and £368 million as at 30 June 2006, 30 June 2005 and 1 January 2005 respectively.
(iii) Remove the perpetual preferred callable securities including accrued dividends of £350 million and £699 million at 30 June 2005 and 31 December 2005 respectively.
