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Financial History
For the year ended 31 December 2009
|
£m
|
|||||
|---|---|---|---|---|---|
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Consolidated income statement
|
|||||
|
Revenue
|
|||||
|
Gross earned premiums
|
3,820
|
5,156
|
5,566
|
4,713
|
4,473
|
|
Outward reinsurance
|
(369)
|
(335)
|
(293)
|
(267)
|
(197)
|
|
Net earned premiums
|
3,451
|
4,821
|
5,273
|
4,446
|
4,276
|
|
Investment return (non-banking)
|
11,616
|
(11,578)
|
6,318
|
10,439
|
6,569
|
|
Banking interest and similar income
|
3,989
|
4,059
|
3,190
|
2,441
|
2,018
|
|
Banking trading, investment and similar income1
|
168
|
162
|
170
|
-
|
-
|
|
Fee and commission income, and income from service activities
|
2,422
|
2,313
|
2,475
|
2,262
|
1,274
|
|
Other income
|
202
|
270
|
245
|
324
|
215
|
|
Total revenues
|
21,848
|
47
|
17,671
|
19,912
|
14,352
|
|
Expenses
|
|||||
|
Claims and benefits (including change in insurance contract provisions)
|
(5,069)
|
(3,610)
|
(7,193)
|
(7,999)
|
(7,795)
|
|
Reinsurance recoveries
|
328
|
262
|
236
|
245
|
226
|
|
Net claims and benefits incurred
|
(4,741)
|
(3,348)
|
(6,957)
|
(7,754)
|
(7,569)
|
|
Change in investment contract liabilities
|
(8,345)
|
10,051
|
(2,618)
|
(4,655)
|
(1,202)
|
|
Losses on loans and advances
|
(511)
|
(319)
|
(157)
|
(123)
|
(103)
|
|
Finance costs
|
(322)
|
392
|
(50)
|
(91)
|
(40)
|
|
Banking interest payable and similar expenses
|
(2,627)
|
(2,853)
|
(2,053)
|
(1,461)
|
(1,254)
|
|
Fee and commission expenses, and other acquisition costs
|
(806)
|
(937)
|
(778)
|
(714)
|
(389)
|
|
Other operating and administrative expenses
|
(3,139)
|
(2,834)
|
(2,813)
|
(2,826)
|
(2,155)
|
|
Goodwill impairment
|
(266)
|
(74)
|
(3)
|
(8)
|
(5)
|
|
Change in third party interest in consolidated funds
|
(470)
|
779
|
(156)
|
(278)
|
(80)
|
|
Amortisation of PVIF and other acquired intangibles
|
(326)
|
(361)
|
(360)
|
(379)
|
(24)
|
|
Total expenses
|
(21,553)
|
496
|
(15,945)
|
(18,289)
|
(12,821)
|
|
Share of associated undertakings' profit/(loss) after tax
|
2
|
(1)
|
(1)
|
6
|
17
|
|
(Loss)/profit on disposal of subsidiaries, associated undertakings and strategic investments
|
(50)
|
53
|
25
|
85
|
58
|
|
Profit before tax
|
247
|
595
|
1,750
|
1,714
|
1,606
|
|
Income tax (expense)/credit
|
(365)
|
88
|
(504)
|
(621)
|
(484)
|
|
(Loss)/profit after tax for the financial year
|
(118)
|
683
|
1,246
|
1,093
|
1,122
|
|
Attributable to:
|
|||||
|
Equity holders of the parent
|
(340)
|
441
|
972
|
836
|
867
|
|
Non-controlling interests
|
|||||
|
Ordinary shares
|
158
|
188
|
224
|
207
|
203
|
|
Preferred securities
|
64
|
54
|
50
|
50
|
52
|
|
(Loss)/profit after tax for the financial year
|
(118)
|
683
|
1,246
|
1,093
|
1,122
|
|
Earnings per share
|
|||||
|
Basic earnings per ordinary share (pence)
|
(7.8)
|
8.6
|
19.2
|
17.0
|
25.1
|
|
Diluted earnings per ordinary share (pence)
|
(7.8)
|
8.1
|
18.1
|
16.1
|
24.3
|
|
Weighted average number of shares - millions
|
4,758
|
4,755
|
4,894
|
4,705
|
3,456
|
- 2005 and 2006 included in Banking interest and similar income
|
£m
|
|||||
|---|---|---|---|---|---|
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Consolidated statement of comprehensive income
|
|||||
|
(Loss)/profit after tax for the financial year
|
(118)
|
683
|
1,246
|
1,093
|
1,122
|
|
Other comprehensive income
|
|||||
|
Fair value (losses)/gains:
|
|||||
|
Property revaluation
|
(10)
|
16
|
96
|
28
|
27
|
|
Net investment hedge
|
(41)
|
281
|
(13)
|
75
|
(78)
|
|
Available-for-sale investments:1
|
|||||
|
Fair value gains/(losses)
|
1,087
|
(1,635)
|
(197)
|
(111)
|
(249)
|
|
Recycled to the income statement
|
239
|
414
|
36
|
17
|
|
|
Shadow accounting
|
27
|
26
|
25
|
28
|
117
|
|
Currency translation differences/exchange differences on translating foreign operations
|
272
|
429
|
133
|
(1,060)
|
275
|
|
Other movements
|
51
|
68
|
(4)
|
(4)
|
(28)
|
|
Income tax relating to components of other comprehensive income
|
(397)
|
366
|
34
|
14
|
34
|
|
Total other comprehensive income
|
1,228
|
(35)
|
110
|
(1,013)
|
98
|
|
Total comprehensive income
|
1,110
|
648
|
1,356
|
80
|
1,220
|
|
Equity holders of the parent
|
709
|
305
|
1,077
|
73
|
930
|
|
Non-controlling interests2
|
|||||
|
Ordinary shares
|
334
|
299
|
229
|
(43)
|
236
|
|
Preferred securities
|
67
|
44
|
50
|
50
|
54
|
|
Total comprehensive income
|
1,110
|
648
|
1,356
|
80
|
1,220
|
|
£m
|
|||||
|
Year ended 31 December
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
Adjusted operating profit
|
1,170
|
1,136
|
1,624
|
1,459
|
1,261
|
|
|
|||||
|
Adjusted operating earnings per share
|
|||||
|
Adjusted operating earnings per ordinary share (pence) - H1
|
5.3
|
8.7
|
8.2
|
8.5
|
8.7
|
|
Adjusted operating earnings per ordinary share (pence) - H23
|
6.8
|
6.2
|
8.7
|
6.6
|
9.8
|
|
Adjusted operating earnings per ordinary share (pence)4
|
12.1
|
14.9
|
16.9
|
15.1
|
18.5
|
|
Adjusted weighted average number of shares - H1
|
5,232
|
5,245
|
5,407
|
5,063
|
3,753
|
|
Adjusted weighted average number of shares - H2
|
5,226
|
5,215
|
5,415
|
5,379
|
3,927
|
|
Adjusted weighted average number of shares
|
5,229
|
5,230
|
5,411
|
5,222
|
3,840
|
-
No split available for 2005
-
2007-2005 restated from reported to reflect ordinary share and preferred securities
-
Calculated based on full year less 1st half year
-
2008 and 2009 H1 has been restated to reflect Bermuda treated as a non-core operation as per the 2009 financial accounts.
|
£m
|
|||||
|---|---|---|---|---|---|
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Consolidated statement of financial position1
|
|||||
|
Assets
|
|||||
|
Goodwill and other intangible assets
|
5,159
|
5,882
|
5,459
|
5,367
|
1,570
|
|
Mandatory reserve deposits with central banks
|
882
|
734
|
615
|
665
|
568
|
|
Property, plant and equipment
|
828
|
682
|
608
|
499
|
538
|
|
Investment property
|
1,759
|
1,478
|
1,479
|
804
|
847
|
|
Deferred tax assets
|
570
|
1,590
|
683
|
511
|
458
|
|
Investments in associated undertakings and joint ventures
|
135
|
111
|
81
|
83
|
93
|
|
Deferred acquisition costs
|
3,138
|
3,199
|
2,253
|
1,578
|
1,089
|
|
Reinsurers' share of life assurance policyholder liabilities
|
1,296
|
1,148
|
1,394
|
763
|
455
|
|
Reinsurers' share of general insurance liabilities
|
120
|
115
|
-
|
-
|
-
|
|
Deposits held with reinsurers
|
146
|
164
|
213
|
-
|
-
|
|
Loans and advances
|
42,393
|
35,745
|
30,687
|
22,804
|
18,456
|
|
Investments and securities
|
98,461
|
83,522
|
89,627
|
86,452
|
49,407
|
|
Current tax receivable
|
169
|
118
|
83
|
60
|
29
|
|
Client indebtedness for acceptances
|
170
|
220
|
165
|
-
|
-
|
|
Other assets
|
3,051
|
3,137
|
2,774
|
3,635
|
2,373
|
|
Derivative financial instruments - assets
|
2,546
|
3,228
|
1,527
|
1,238
|
1,604
|
|
Cash and cash equivalents
|
2,982
|
3,203
|
3,469
|
2,951
|
3,051
|
|
Non-current assets held-for-sale
|
1
|
7
|
1,623
|
1,165
|
36
|
|
Total assets
|
163,806
|
144,283
|
142,740
|
128,575
|
80,574
|
|
Liabilities
|
|||||
|
Life assurance policyholder liabilities
|
93,876
|
81,269
|
84,251
|
80,081
|
44,445
|
|
General insurance liabilities
|
372
|
344
|
-
|
-
|
-
|
|
Third party interests in consolidated funds
|
2,906
|
2,591
|
3,547
|
3,041
|
966
|
|
Borrowed funds
|
3,309
|
2,295
|
2,353
|
1,676
|
1,433
|
|
Provisions
|
263
|
477
|
499
|
542
|
285
|
|
Deferred revenue
|
654
|
598
|
462
|
311
|
138
|
|
Deferred tax liabilities
|
905
|
1,452
|
1,413
|
1,393
|
611
|
|
Current tax payable
|
210
|
219
|
320
|
283
|
178
|
|
Other liabilities
|
4,305
|
4,074
|
6,180
|
5,266
|
3,320
|
|
Liabilities under acceptances
|
170
|
220
|
165
|
-
|
-
|
|
Amounts owed to bank depositors
|
44,135
|
38,171
|
31,817
|
25,052
|
21,145
|
|
Derivative financial instruments - liabilities
|
1,990
|
2,990
|
1,716
|
1,060
|
1,634
|
|
Non-current liabilities held-for-sale
|
-
|
6
|
420
|
1,107
|
-
|
|
Total liabilities
|
153,095
|
134,706
|
133,143
|
119,812
|
74,155
|
|
Net assets
|
10,711
|
9,577
|
9,597
|
8,763
|
6,419
|
|
Shareholders' equity
|
|||||
|
Equity attributable to equity holders of the parent
|
8,464
|
7,737
|
7,961
|
7,237
|
4,751
|
|
Non-controlling interests
|
|||||
|
Ordinary shares
|
1,537
|
1,147
|
933
|
848
|
1,012
|
|
Preferred securities
|
710
|
693
|
703
|
678
|
656
|
|
Total non-controlling interests
|
2,247
|
1,840
|
1,636
|
1,526
|
1,668
|
|
Total equity
|
10,711
|
9,577
|
9,597
|
8,763
|
6,419
|
-
The group adopted the provisions of IFRS 7 'Financial Instruments: Disclosures' in its 2007 annual report and accounts. As part of the implementation of that standard certain income statement and statement of financial position captions were restated. The 2006 and 2005 information has been restated where possible to be consistent with later years, however certain balances are not fully comparable in circumstances where information is not readily available.
|
£m
|
|||||
|---|---|---|---|---|---|
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Additional information
|
|||||
|
IFRS book value per share
|
|||||
|
Equity attributable to equity holders of the parent
|
8,464
|
7,737
|
7,961
|
7,237
|
4,751
|
|
Less: Perpetual preferred callable securities
|
(688)
|
(688)
|
(688)
|
(688)
|
(688)
|
|
7,776
|
7,049
|
7,273
|
6,549
|
4,063
|
|
|
Shares issued and fully paid
|
5,518
|
5,516
|
5,510
|
5,501
|
4,090
|
|
Less: Treasury shares in issue
|
(239)
|
(239)
|
(105)
|
-
|
-
|
|
5,279
|
5,277
|
5,405
|
5,501
|
4,090
|
|
|
|
|
|
|
|
|
|
IFRS book value per share (pence)
|
147
|
134
|
135
|
119
|
99
|
|
Funds under management
|
285,010
|
264,814
|
278,878
|
239,433
|
182,166
|
|
Earnings after tax attributable to ordinary equity holders
|
|||||
|
Adjusted operating Group MCEV
|
562
|
575
|
922
|
-
|
-
|
|
Adjusted operating Group EEV
|
-
|
-
|
-
|
929
|
796
|
|
Adjusted operating Group MCEV earnings per share
|
10.7
|
11.0
|
17.0
|
-
|
-
|
|
Adjusted operating Group EEV earnings per share
|
-
|
-
|
-
|
17.8
|
20.7
|
|
Market consistent embedded value
|
7,629
|
5,262
|
7,359
|
-
|
-
|
|
European embedded value
|
-
|
-
|
-
|
7,117
|
5,808
|
|
MCEV per share
|
144.5
|
99.7
|
136.2
|
-
|
-
|
|
EEV per share
|
-
|
-
|
-
|
129.4
|
142.0
|
Rates used to translate the operating results, assets and liabilities of key foreign business segments to Sterling are:
|
Year ended 31 December
|
2009
|
2008
|
2007
|
20061
|
2005
|
|---|---|---|---|---|---|
|
Exchange Rates
|
|||||
|
Income statement (average rate)
|
|||||
|
Rand
|
13.1746
|
15.2948
|
14.1109
|
12.4740
|
11.5812
|
|
US Dollars
|
1.5655
|
1.8524
|
2.0014
|
1.8429
|
1.8195
|
|
Swedish Kronor
|
11.9743
|
12.2209
|
13.5253
|
13.5918
|
|
|
Euro
|
1.1227
|
1.2594
|
1.4602
|
1.4671
|
|
|
Statement of financial position (closing rate)
|
|||||
|
Rand
|
11.9172
|
13.7194
|
13.6043
|
13.6746
|
10.8923
|
|
US Dollars
|
1.6148
|
1.4575
|
1.9827
|
1.9569
|
1.7187
|
|
Swedish Kronor
|
11.5562
|
11.4494
|
12.832
|
13.3924
|
|
|
Euro
|
1.1268
|
1.0446
|
1.3596
|
1.4837
|
-
The 2006 Income statement rate applied in respect of Skandia is an eleven month average rate, reflecting acquisition date of 1 February 2006.