Financial highlights

Results Summary

International Financial Reporting Standards (IFRS) Basis Results Half year
2014
Half year
2013
Operating profit based on longer term investment returns £ 1,521m £ 1,415m
Earnings per share based on operating profit 45.2p 42.2p
European Embedded Value (EEV) Basis Results * Half year
2014
Half year
2013
New business profit £ 1,015m £ 913m
Post-tax operating profit based on longer term investment returns £ 1,943m £ 1,821m
Earnings per share based on operating profit 76.3p 71.5p
EEV shareholders' funds per share (including goodwill attributable to shareholders) 1,009p 958p
Cash Half year
2014
Half year
2013
Underlying free surplus generated £ 1,219m £ 1,152m
Net cash remitted by business units £ 974m £ 844m
Dividend per share relating to the reporting period 11.19p 9.73p

* The 2014 EEV results of the Group are presented on a post-tax basis and, accordingly, the half year and full year 2013 results are shown on a comparable basis - see Basis of preparation below.

Basis of preparation

The EEV basis results have been prepared in accordance with the EEV Principles issued by the European Insurance CFO Forum in May 2004. Where appropriate, the EEV basis results include the effects of adoption of International Financial Reporting Standards (IFRS). The EEV results are presented on a post-tax basis and, accordingly, the half year and full year 2013 results are shown on a comparable basis.

The directors are responsible for the preparation of the supplementary information in accordance with the EEV Principles. The EEV basis results of 2014 and 2013 half years are unaudited. Except for the change in presentation of EEV results from pre-tax to post-tax, as described in the additional unaudited financial information for the full year 2013 announcement, the 2013 results have been derived from the EEV basis results supplement to the Company's statutory accounts for 2013. The supplement included an unqualified audit report from the auditors.

Operating profit based on longer-term investment returns
The Group provides supplementary analysis of profit before tax attributable to shareholders so as to distinguish operating profit based on longer-term investment returns from the other elements of total profit shown. Operating profit per share is calculated using operating profits based on longer-term investment returns, after related tax and non-controlling interests. In 2013 operating profit excludes the results of the Japan Life insurance business, together with effect of it being classified as held for sale and written down to fair value less costs to sell at 30 June 2013.

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.