At 31 December 2008, the Group adopted [IFRS] 8, ‘Operating Segments’.
The [Group] has five reporting segments comprising Risk, Savings, Investment management, International, and Group capital and financing.
The Risk segment comprises individual and group protection, individual and bulk purchase annuities, and general insurance, together with estate agencies and the housing related business conducted through our regulated mortgage network.
The Savings segment comprises non profit investment bonds, non profit pensions (including SIPPs), [ISAs], retail unit trusts, and all with-profits products.
The Investment management segment comprises institutional fund management and institutional unit trust business.
The International segment comprises businesses in the United States, France, the Netherlands and emerging markets.
Shareholders’ equity supporting the non profit Risk and Savings businesses is held within Legal & General Assurance [Society] Limited and Legal & General Pensions Limited and is managed on a groupwide basis within Group capital and financing. This also includes capital within the Group’s treasury function, and unit trust funds and property partnerships, which are managed on behalf of clients but are required to be consolidated under IFRS, which do not constitute a separately reportable segment.
Transactions between reportable segments are on normal commercial terms, and are included within the reported segments.
The Group assesses performance and allocates resources on the basis of IFRS operating profit before tax, (set out in Note 2). Segmental [IFRS] operating profit before tax is reconciled to the consolidated profit from continuing operations before tax attributable to equity holders and consolidated profit from ordinary activities after income tax.
The Group considers additional performance measures in assessing the performance of the segments. These include new business levels (Note 4) and [EEV] reporting (Supplementary Financial Statements).
(Download XLS:)  |
|
For the year ended 31 December 2008 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total |
|---|---|---|---|---|---|---|
|
Operating (loss)/profit |
(603) |
66 |
165 |
59 |
124 |
(189) |
|
Variation from longer term investment return |
(29) |
– |
7 |
4 |
(1,221) |
(1,239) |
|
Release of 1996 Sub-fund |
– |
– |
– |
– |
– |
– |
|
Property losses attributable to minority interests |
– |
– |
– |
– |
(63) |
(63) |
|
(Loss)/profit from continuing operations before tax attributable to equity holders of the Company |
(632) |
66 |
172 |
63 |
(1,160) |
(1,491) |
|
Tax credit/(expense) attributable to equity holders of the Company |
172 |
(7) |
(52) |
(21) |
269 |
361 |
|
(Loss)/profit from ordinary activities after tax |
(460) |
59 |
120 |
42 |
(891) |
(1,130) |
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2007 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total |
|
Operating profit |
104 |
112 |
143 |
86 |
213 |
658 |
|
Variation from longer term investment return |
(9) |
– |
4 |
(11) |
(74) |
(90) |
|
Release of 1996 Sub-fund |
– |
– |
– |
– |
321 |
321 |
|
Property losses attributable to minority interests |
– |
– |
– |
– |
(6) |
(6) |
|
Profit from continuing operations before tax attributable to equity holders of the Company |
95 |
112 |
147 |
75 |
454 |
883 |
|
Tax expense attributable to equity holders of the Company |
(32) |
(33) |
(44) |
(22) |
(34) |
(165) |
|
Profit from ordinary activities after tax |
63 |
79 |
103 |
53 |
420 |
718 |
| (Download XLS:) |
|
For the year ended 31 December 2008 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total |
|---|---|---|---|---|---|---|
|
Internal revenue |
132 |
133 |
119 |
– |
(384) |
– |
|
External revenue |
2,648 |
(6,008) |
(28,229) |
741 |
(796) |
(31,644) |
|
Total revenue |
2,780 |
(5,875) |
(28,110) |
741 |
(1,180) |
(31,644) |
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2007 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total |
|
Internal revenue |
176 |
106 |
87 |
– |
(369) |
– |
|
External revenue |
3,223 |
2,475 |
11,282 |
1,000 |
222 |
18,202 |
|
Total revenue |
3,399 |
2,581 |
11,369 |
1,000 |
(147) |
18,202 |
Total revenue includes investment losses of £37,749m (2007: gains of £13,225m).
| (Download XLS:) |
|
As at 31 December 2008 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total | ||
|---|---|---|---|---|---|---|---|---|
| ||||||||
|
Assets |
|
|
|
|
|
| ||
|
Investment in associates |
– |
14 |
– |
– |
– |
14 | ||
|
Investment property |
– |
2,866 |
273 |
7 |
823 |
3,969 | ||
|
Financial investments |
19,119 |
34,160 |
173,255 |
6,250 |
1,730 |
234,514 | ||
|
Reinsurers’ share of contract liabilities |
1,479 |
474 |
– |
302 |
(258) |
1,997 | ||
|
Deferred acquisition costs |
51 |
1,018 |
18 |
1,100 |
(75) |
2,112 | ||
|
Other assets |
2,199 |
518 |
1,471 |
1,427 |
(2,182) |
3,433 | ||
|
Cash and cash equivalents |
412 |
3,941 |
3,376 |
618 |
2,341 |
10,688 | ||
|
Total assets |
23,260 |
42,991 |
178,393 |
9,704 |
2,379 |
256,727 | ||
|
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
101 |
73 |
322 |
1,272 |
1,820 |
3,588 | ||
|
Minority interests |
– |
– |
– |
– |
144 |
144 | ||
|
Total equity |
101 |
73 |
322 |
1,272 |
1,964 |
3,732 | ||
|
|
|
|
|
|
|
| ||
|
Liabilities |
|
|
|
|
|
| ||
|
Subordinated borrowings |
– |
– |
– |
– |
1,657 |
1,657 | ||
|
Participating contract liabilities |
– |
14,829 |
– |
2,289 |
– |
17,118 | ||
|
Non-participating contract liabilities |
19,001 |
25,917 |
174,469 |
3,691 |
(539) |
222,539 | ||
|
Senior borrowings1 |
– |
161 |
9 |
676 |
1,468 |
2,314 | ||
|
Other liabilities |
4,158 |
2,011 |
3,593 |
1,776 |
(2,171) |
9,367 | ||
|
Total liabilities |
23,159 |
42,918 |
178,071 |
8,432 |
415 |
252,995 | ||
|
Total equity and liabilities |
23,260 |
42,991 |
178,393 |
9,704 |
2,379 |
256,727 | ||
|
|
|
|
|
|
|
| ||
|
As at 31 December 2007 |
Risk |
Savings |
Investment management |
International |
Group capital and financing |
Total | ||
|
Assets |
|
|
|
|
|
| ||
|
Investment in associates |
– |
14 |
– |
– |
– |
14 | ||
|
Investment property |
– |
4,062 |
401 |
7 |
1,499 |
5,969 | ||
|
Financial investments |
16,656 |
38,170 |
198,209 |
4,757 |
3,926 |
261,718 | ||
|
Reinsurers’ share of contract liabilities |
915 |
406 |
– |
209 |
– |
1,530 | ||
|
Deferred acquisition costs |
49 |
972 |
19 |
702 |
(46) |
1,696 | ||
|
Other assets |
1,556 |
345 |
914 |
1,047 |
(2,241) |
1,621 | ||
|
Cash and cash equivalents |
506 |
2,609 |
4,419 |
499 |
704 |
8,737 | ||
|
Total assets |
19,682 |
46,578 |
203,962 |
7,221 |
3,842 |
281,285 | ||
|
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
113 |
53 |
310 |
888 |
4,082 |
5,446 | ||
|
Minority interests |
– |
– |
– |
– |
178 |
178 | ||
|
Total equity |
113 |
53 |
310 |
888 |
4,260 |
5,624 | ||
|
|
|
|
|
|
|
| ||
|
Liabilities |
|
|
|
|
|
| ||
|
Subordinated borrowings |
– |
– |
– |
– |
1,461 |
1,461 | ||
|
Participating contract liabilities |
– |
18,828 |
– |
1,742 |
– |
20,570 | ||
|
Non-participating contract liabilities |
17,370 |
25,594 |
202,541 |
2,811 |
(537) |
247,779 | ||
|
Senior borrowings1 |
2 |
2 |
6 |
489 |
828 |
1,327 | ||
|
Other liabilities |
2,197 |
2,101 |
1,105 |
1,291 |
(2,170) |
4,524 | ||
|
Total liabilities |
19,569 |
46,525 |
203,652 |
6,333 |
(418) |
275,661 | ||
|
Total equity and liabilities |
19,682 |
46,578 |
203,962 |
7,221 |
3,842 |
281,285 | ||
| (Download XLS:) |
|
|
2008 |
2007 |
|---|---|---|
|
From continuing operations |
|
|
|
Risk |
|
|
|
Non-participating Risk business |
4,038 |
3,105 |
|
General insurance |
|
|
|
– Household |
267 |
255 |
|
– Other business |
29 |
52 |
|
Total Risk |
4,334 |
3,412 |
|
|
|
|
|
Savings |
|
|
|
Non-participating Savings business |
49 |
47 |
|
Participating business |
551 |
382 |
|
Total Savings |
600 |
429 |
|
|
|
|
|
International |
|
|
|
USA |
397 |
345 |
|
Netherlands |
278 |
259 |
|
France |
286 |
348 |
|
Total International |
961 |
952 |
|
Total gross written premiums |
5,895 |
4,793 |