Page 127
Consolidated income statement
Year ended 31 December 2007
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|
Note |
2007 £m |
|
2006 £m |
|
|
|
|
|
| Gross premiums earned |
|
18,359 |
|
16,157 |
| Outward reinsurance premiums |
|
(171) |
|
(171) |
|
|
|
|
|
| Earned premiums, net of reinsurance |
F2 |
18,188 |
|
15,986 |
|
|
|
|
|
| Investment income |
F2 |
12,221 |
|
17,128 |
| Other income |
F2 |
2,457 |
|
1,917 |
|
|
|
|
|
| Total revenue, net of reinsurance |
F1,F2 |
32,866 |
|
35,031 |
|
|
|
|
|
| Benefits and claims |
|
(26,210) |
|
(25,981) |
| Outward reinsurers’ share of benefits and claims |
|
(20) |
|
(144) |
| Movement in unallocated surplus of with-profits funds |
H12 |
(760) |
|
(2,296) |
|
|
|
|
|
| Benefits and claims and movements in unallocated surplus of with-profits funds, |
|
|
|
|
| net of reinsurance |
|
(26,990) |
|
(28,421) |
| Acquisition costs and other operating expenditure |
F3 |
(4,523) |
|
(4,212) |
| Finance costs: interest on core structural borrowings of shareholder-financed operations |
F4 |
(168) |
|
(177) |
|
|
|
|
|
| Total charges, net of reinsurance |
F1 |
(31,681) |
|
(32,810) |
|
|
|
|
|
| Profit before tax* |
|
1,185 |
|
2,221 |
| Tax attributable to policyholders’ returns |
|
(19) |
|
(849) |
|
|
|
|
|
| Profit before tax attributable to shareholders |
B1 |
1,166 |
|
1,372 |
| Tax expense |
F5 |
(401) |
|
(1,241) |
| Less: tax attributable to policyholders’ returns |
|
19 |
|
849 |
| Tax attributable to shareholders’ profits |
F5 |
(382) |
|
(392) |
|
|
|
|
|
| Profit from continuing operations after tax |
|
784 |
|
980 |
| Discontinued operations (net of tax) |
J1 |
241 |
|
(105) |
|
|
|
|
|
| Profit for the year |
|
1,025 |
|
875 |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
| Equity holders of the Company |
|
1,022 |
|
874 |
| Minority interests |
|
3 |
|
1 |
|
|
|
|
|
| Profit for the year |
|
1,025 |
|
875 |
|
|
|
|
|
|
|
|
|
|
| Earnings per share |
|
|
|
|
| Basic (based on 2,445m and 2,413m shares respectively): |
|
|
|
|
| Based on profit from continuing operations attributable to the equity holders of the Company |
|
31.9p |
|
40.5p |
| Based on profit (loss) from discontinued operations attributable to the equity holders |
|
|
|
|
| of the Company |
|
9.9p |
|
(4.3)p |
|
|
|
|
|
|
|
41.8p |
|
36.2p |
|
|
|
|
|
| Diluted (based on 2,448m and 2,416m shares respectively): |
|
|
|
|
| Based on profit from continuing operations attributable to the equity holders of the Company |
|
31.9p |
|
40.5p |
| Based on profit (loss) from discontinued operations attributable to the equity holders |
|
|
|
|
| of the Company |
|
9.8p |
|
(4.3)p |
|
|
|
|
|
|
|
41.7p |
|
36.2p |
|
|
|
|
|
*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.
The presentation of the 2006 comparative results has been adjusted to reclassify Egg as discontinued operations.
