Financial highlights

 

Results summary

  Half year
2016
Half year
2015
International Financial Reporting Standards (IFRS) Basis Results    
Operating profit based on longer-term investment returns £2,059m £1,881m
Earnings per share based on operating profit 61.8p 57.0p
European Embedded Value (EEV) Basis Results Half year
2016
Half year
2015
New business profit £ 1,260m £ 1,190m
Post-tax operating profit based on longer-term investment returns £ 2,263m £ 2,278m
Earnings per share based on operating profit 88.5p 89.3p
EEV shareholders' funds per share (including goodwill attributable to shareholders) 1,356p 1,170p
Cash Half year
2016
Half year
2015
Underlying free surplus generated £ 1,609m £ 1,418m
Net cash remitted by business units £ 1,118m £ 1,068m
Dividend per share relating to the reporting period 12.93p 12.31p

Basis of preparation
The EEV basis results have been prepared in accordance with the EEV Principles dated April 2016, prepared by the European Insurance CFO Forum. There is no change to the EEV methodology and accounting presentation. The half year 2016 results for UK insurance operations have been prepared on a basis that reflects the Solvency II regime. The half year 2015 comparative results for UK insurance operations were prepared reflecting the Solvency I basis, being the regime applicable for the period. There is no change to the basis of preparation for Asia and the US operations. Where appropriate, the EEV basis results include the effects of adoption of EU-endorsed IFRS.

The directors are responsible for the preparation of the supplementary information in accordance with the EEV Principles. The EEV basis results of half year 2016 and half year 2015 are unaudited.

Operating profit based on longer-term investment returns
The Group provides supplementary analysis of profit before tax attributable to shareholders in order to distinguish operating-profit based on longer-term investment returns from the other elements of total profit shown.
Operating profit is determined on the basis of including longer-term investment returns.
IFRS operating profit per share is calculated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions and amortisation of acquisition accounting adjustments. Furthermore, for EEV basis results, operating profit based on longer-term investment returns excludes the effect of short-term fluctuations in investment returns against long-term assumptions, the effect of changes in economic assumptions and the mark to market value movement on core borrowings.

Exchange translation – Actual Exchange Rate (AER) and Constant Exchange Rate (CER)
The comparative results have been prepared using previously reported exchange rates (AER basis) except where otherwise stated. Results on a CER basis are also shown for the analysis of IFRS and EEV operating profit based on longer-term investment returns.