Financial highlights

Results summary

  Half year
2015
Half year
2014
International Financial Reporting Standards (IFRS) Basis Results    
Operating profit based on longer term investment returns £ 1,881m £ 1,521m
Earnings per share based on operating profit 57.0p 45.2p
European Embedded Value (EEV) Basis Results Half year
2015
Half year
2014
New business profit £ 1,190m £ 1,009m
Post-tax operating profit based on longer term investment returns £ 2,278m £ 1,943m
Earnings per share based on operating profit 89.3p 76.3p
EEV shareholders' funds per share (including goodwill attributable to shareholders) 1,170p 1,009p
Cash Half year
2015
Half year
2014
Underlying free surplus generated £ 1,418m £ 1,219m
Net cash remitted by business units £ 1,068m £ 974m
Dividend per share relating to the reporting period 12.31p 11.19p

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 directors are responsible for the preparation of the supplementary information in accordance with the EEV Principles. The EEV basis results of half year 2015 and half year 2014 are unaudited. Except for the change in presentation of the operating results for UK operations to show separately the contribution from the sold PruHealth and PruProtect businesses and the presentation of Prudential Capital as a separate segment, the half year 2014 results have been derived from the EEV basis results published in the Company’s 2014 half year financial report.

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 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, amortisation of acquisition accounting adjustments and cumulative exchange loss on the sold Japan Life business recycled from other comprehensive income. 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. Additionally the operating profit per share in half year 2014 is calculated after excluding costs of domestication of Hong Kong branch.

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.