EEV operating profit

Half year
2016
£m

Half year
2015
£m

Post-tax operating profit based on longer-term investment returns
Asia operations 1,268 1,122
US operations 686 820
UK operations:
UK insurance operations* 399 425
M&G 181 203
Prudential Capital 11 6
591 634
Other income and expenditure (302) (275)
Solvency II and restructuring costs (17) (23)
Interest received from tax settlement 37 -
Post-tax operating profit based on longer-term investment returns 2,263 2,278
Short-term fluctuations in investment returns 489 (367)
Effect of changes in economic assumptions (1,345) 80
Mark to market value movements on core borrowings (13) 124
(869) (163)
Profit for the year attributable to equity holders of the Company 1,394 2,115

*The half year 2016 results for UK insurance operations have been prepared on a basis that reflects the Solvency II regime effective from 1 January 2016. The half year 2015 and full year 2015 comparative results for UK insurance operations reflect the Solvency I basis being the regime applicable for those periods.

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 and full year 2015 comparative results for UK insurance operations were prepared reflecting the Solvency I basis, being the regime applicable for those periods. 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. The full year 2015 results have been derived from the EEV basis results supplement to the Company’s statutory accounts for 2015. The supplement included an unqualified audit report from the auditors.

A detailed description of the EEV methodology and accounting presentation is provided in note 13 of the EEV basis results supplement.