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Primary statement: Consolidated income statement
Year ended 31 December 2006
Consolidated income statement
| Notes | 2006 £m |
2005 £m |
|
|---|---|---|---|
| Gross premiums earned | 16,157 | 15,225 | |
| Outward reinsurance premiums | (171) | (197) | |
| Earned premiums, net of reinsurance | F2 | 15,986 | 15,028 |
| Investment income | F2 | 17,904 | 24,013 |
| Other income | F2 | 2,055 | 2,084 |
| Total revenue, net of reinsurance | F1, F2 | 35,945 | 41,125 |
| Benefits and claims and movement in unallocated surplus of with-profits funds | (28,421) | (33,100) | |
| Acquisition costs and other operating expenditure | F3 | (5,243) | (5,552) |
| Finance costs: interest on core structural borrowings of shareholder-financed operations | F4 | (210) | (208) |
| Goodwill impairment charge | H1 | – | (120) |
| Total charges | F1 | (33,874) | (38,980) |
| Profit before tax* | 2,071 | 2,145 | |
| Tax attributable to policyholders’ returns | (849) | (1,147) | |
| Profit before tax attributable to shareholders | B1 | 1,222 | 998 |
| Tax expense | F5 | (1,196) | (1,388) |
| Less: tax attributable to policyholders’ returns | 849 | 1,147 | |
| Tax attributable to shareholders’ profits | F5 | (347) | (241) |
| Profit from continuing operations after tax | 875 | 757 | |
| Discontinued operations (net of tax) | F6 | – | 3 |
| Profit for the year | 875 | 760 | |
| Attributable to: | |||
| Equity holders of the Company | 874 | 748 | |
| Minority interests | 1 | 12 | |
| Profit for the year | 875 | 760 | |
| Earnings per share | |||
| Basic (based on 2,413m and 2,365m shares respectively): | |||
| Based on profit from continuing operations attributable to the equity holders of the Company | 36.2p | 31.5p | |
| Based on profit from discontinued operations attributable to the equity holders of the Company | – | 0.1p | |
| 36.2p | 31.6p | ||
| Diluted (based on 2,416m and 2,369m shares respectively): | |||
| Based on profit from continuing operations attributable to the equity holders of the Company | 36.2p | 31.5 | |
| Based on profit from discontinued operations attributable to the equity holders of the Company | – | 0.1p | |
| 36.2p | 31.6p |
*Profit before tax represents income net of post-tax transfers to unallocated surplus of with-profits funds, before tax attributable to policyholders and unallocated surplus of with-profits funds, unit-linked policies and shareholders' profits.