Consolidated Income Statement.

(XLS:) Consolidated Income Statement

For the year ended 31 December 2012

Notes

2012

£m

2011
Restated1
£m

1.

The consolidated income statement has been restated to reflect the retrospective adoption of ASU 2010-26, issued by the FASB, which specifies the accounting for deferred acquisition costs under US GAAP. Details of this adjustment are outlined in Note 1. The impact is to reduce Profit before tax by £3m and Profit for the year by £2m for 2011.

Revenue

 

 

 

Gross written premiums

27(iv)

5,668

5,719

Outward reinsurance premiums

 

(718)

(620)

Net change in provision for unearned premiums

 

(25)

(18)

Net premiums earned

 

4,925

5,081

Fees from fund management and investment contracts

28

875

897

Investment return

29

28,834

12,143

Operational income

31

342

196

Total revenue

27(ii)

34,976

18,317

 

 

 

 

Expenses

 

 

 

Claims and change in insurance liabilities

 

8,588

7,173

Reinsurance recoveries

 

(779)

(493)

Net claims and change in insurance liabilities

30

7,809

6,680

Change in provisions for investment contract liabilities

 

23,656

9,306

Acquisition costs

 

784

783

Finance costs

 

165

165

Other expenses

31

1,194

1,010

Transfers to/(from) unallocated divisible surplus

20

158

(402)

Total expenses

 

33,766

17,542

 

 

 

 

Profit before tax

 

1,210

775

Tax (expense)/income attributable to policyholder returns

35

(174)

178

Profit before tax attributable to equity holders of the Company

 

1,036

953

Total tax expense

35

(409)

(54)

Tax expense/(income) attributable to policyholder returns

35

174

(178)

Tax expense attributable to equity holders

35

(235)

(232)

Profit for the year

 

801

721

 

 

 

 

Attributable to:

 

 

 

Non-controlling interests

 

(12)

(3)

Equity holders of the Company

 

813

724

 

 

 

 

Dividend distributions to equity holders of the Company during the year

3

394

298

Dividend distributions to equity holders of the Company proposed after the year end

3

336

279

 

 

 

 

 

 

p

Restated1
p

Earnings per share

 

 

 

Based on profit attributable to equity holders of the Company

4

13.90

12.42

 

 

 

 

Diluted earnings per share

 

 

 

Based on profit attributable to equity holders of the Company

4

13.66

12.22