[IFRS] Operating loss before tax for 2008 was (£189m), compared with an IFRS Operating profit before tax of £658m for 2007. IFRS loss after tax was £(1,130)m (2007: profit of £718m). On the [EEV] basis, Operating profit was £870m (2007: £848m), and loss after tax was £(973)m (2007: profit of £1,153m). These results have been reduced in 2008 to reflect the increase in provisions for short term credit default assumptions within the non profit annuity business discussed under ‘Significant Events’ below.
Sales were strong in 2008, with total worldwide [APE] of £1,486m (2007: £1,437m), and PVNBP (Present Value of New Business Premiums) of £9,429m (2007: £9,807m).
Operational cash generation was positive, with the UK businesses generating £654m (2007: £580m) before reinvesting in new business and financing the dividend.
The capital position of Legal & General Group Plc and its subsidiaries remains appropriate for its size and risk profile, with total Insurance Group’s Directive (IGD) capital resources of £4.4bn (2007: £8.3bn) and IGD surplus capital of £1.8bn (2007: £4.1bn) with a coverage ratio of 169%. All IGD figures are quoted after deduction of the recommended final dividend, the cost of which is £120m.
Shareholders’ equity per share was 61.2p (2007: 86.5p) on the [IFRS] basis, and 111.2p (2007: 129.1p) on the EEV basis. The consolidated balance sheet and the consolidated income statement show the position of the Group as at, and for the year ended, 31 December 2008. An analysis of worldwide gross written premiums is shown in the Financial Statements.