13 Analysis of shareholders' equity.

(XLS:) Notes to the Supplementary Financial Statements – analysis of shareholders’ equity 2012

As at 31 December 2012

P&A and Savings
£m

Invest­ment manage­ment
£m

US
Protection
£m

Group capital and financing
£m

Total
£m

Analysed as:

 

 

 

 

 

IFRS basis shareholders’ equity1

740

360

919

3,422

5,441

Additional retained profit/(loss)
on an EEV basis

4,484

55

(1,080)

3,459

Shareholders’ equity on an EEV basis

5,224

360

974

2,342

8,900

Comprising:

 

 

 

 

 

Business reported on an IFRS basis

380

360

(836)

(96)

Business reported on an EEV basis:

 

 

 

 

 

Shareholder net worth

 

 

 

 

 

– Free surplus2

57

 

206

1,210

1,473

– Required capital to cover solvency margin

239

 

33

1,968

2,240

Value of in-force

 

 

 

 

 

– Value of in-force business

5,054

 

745

 

5,799

– Cost of capital

(506)

 

(10)

 

(516)

(XLS:) Notes to the Supplementary Financial Statements – analysis of shareholders’ equity 2011

As at 31 December 2011 (Restated)

P&A and Savings
£m

Invest­ment manage­ment
£m

US
Protection
£m

Group capital and financing
£m

Total
£m

1.

Shareholders’ equity supporting the UK non profit Protection and Annuities and Savings businesses is held within Legal & General Assurance Society Limited and Legal & General Pensions Limited and is managed on a groupwide basis within the Group capital and financing segment.

2.

Free surplus is the value of any capital and surplus allocated to, but not required to support, the in-force covered business at the valuation date.

Analysed as:

 

 

 

 

 

IFRS basis shareholders’ equity1

652

351

910

3,143

5,056

Additional retained profit/(loss)
on an EEV basis

4,402

152

(1,002)

3,552

Shareholders’ equity on an EEV basis

5,054

351

1,062

2,141

8,608

Comprising:

 

 

 

 

 

Business reported on an IFRS basis

338

351

(1,077)

(388)

Business reported on an EEV basis:

 

 

 

 

 

Shareholder net worth

 

 

 

 

 

– Free surplus2

37

 

111

1,461

1,609

– Required capital to cover solvency margin

215

 

38

1,757

2,010

Value of in-force

 

 

 

 

 

– Value of in-force business

4,907

 

924

 

5,831

– Cost of capital

(443)

 

(11)

 

(454)

Further analysis of shareholders’ equity is included in Note 14.