32 Investment return.

32 Investment return.

Investment return includes fair value gains and losses, excluding fair value movements attributable to available-for-sale (AFS) investments, dividends, rent and interest. Dividends are accrued on an ex-dividend basis. Interest and rent are included on an accruals basis. Interest income for financial assets which are not classified as fair value through profit or loss (FVTPL) is recognised using the effective interest method.

The Group earns an investment return from holdings in financial instruments and property investments, held to back insurance and investment contracts on behalf of policyholders, and as Group capital.

(XLS:) Investment return

 

2013
£m

2012
£m

1.

2012 comparative has changed due to IAS 19 “Employee Benefits” amendment. Please refer to Note 1 for further details.

2.

Interest income of £63m (2012: £64m) arose on financial investments designated as AFS. There were no impairments on assets classified as AFS during the year (2012: £nil).

Dividend income

4,496

4,445

Interest income on financial investments at fair value through profit or loss1

4,939

4,907

Other investment income

(173)

120

Gains on financial investments at fair value through profit or loss

21,004

18,418

Gains on derivative instruments (designated as held for trading)

1,314

653

Realised gains on available for sale financial assets

38

39

Losses on loans and receivables

(2)

(1)

Financial investment return2

31,616

28,581

 

 

 

Rental income

373

366

Fair value gains/(losses) on properties

232

(119)

Property investment return

605

247

Investment return

32,221

28,828

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