Group embedded value – summary.

Group embedded value – summary.
(XLS:) European Embedded Value basis – Group embedded value – Summary 2013

 

Covered business

Non-
covered business
£m

Total
£m

For the year ended 31 December 2013

UK business
£m

LGAS overseas business
£m

LGA
£m

1.

UK intra-group distributions reflect a £625m dividend paid from Society to Group, and dividends of £10m (2012: £40m) paid to Society from subsidiaries (primarily Nationwide Life). Dividends of €16m (2012: €15m) from LGN are also paid to Society. Dividends of $69m (2012: $63m) from LGA and €2m (2012: €3m) from LGF were paid to Group.

2.

The transfer to non-covered business represents the IFRS profits arising in the period from the provisions of investment management services by LGIM to the UK covered business, which have been included in the operating profit of the covered business on the look through basis.

3.

The other reserve movements reflect the pension deficit movement, the movement of investment project costs from covered to non-covered business and the effect of reinsurance arrangement transactions between UK and US covered business.

4.

The number of shares in issue at 31 December 2013 was 5,917,066,636 (31 December 2012: 5,912,782,826).

At 1 January

 

 

 

 

 

Value of in-force business (VIF)

4,402

146

735

5,283

Shareholder net worth (SNW)

3,178

296

239

(96)

3,617

Embedded value at 1 January 2013

7,580

442

974

(96)

8,900

Exchange rate movements

9

(14)

(10)

(15)

 

 

 

 

 

 

Operating profit after tax for the year

804

16

70

168

1,058

Non-operating profit/(loss) for the year

222

60

(24)

(27)

231

Profit for the year

1,026

76

46

141

1,289

Intra-group distributions1

(602)

(15)

(44)

661

Dividends to equity holders of the Company

(479)

(479)

Transfer to non-covered business2

(27)

27

Other reserve movements including pension deficit3

(35)

(29)

(45)

(109)

Embedded value at 31 December 2013

7,942

512

933

199

9,586

 

 

 

 

 

 

Value of in-force business

4,693

197

699

5,589

Shareholder net worth

3,249

315

234

199

3,997

 

 

 

 

 

 

Embedded value per share (p)4

 

 

 

 

162

Further analysis of the LGAS and LGR covered business can be found in Note 2.

(XLS:) European Embedded Value basis – Group embedded value – Summary 2012

 

Covered business

Non-
covered business
£m

Total
£m

For the year ended 31 December 20121

UK business
£m

LGAS overseas business
£m

LGA
£m

1.

This note has been restated to reflect an amendment to IAS 19 ‘Employee Benefits’. Details of this restatement are outlined in Note 1.

2.

UK intra-group distributions reflect a £525m dividend paid from Society to Group and dividends of £40m paid to Society from subsidiaries (primarily Nationwide Life). Dividends of €15m from LGN are also paid to Society. Dividends of $63m from LGA and €3m from LGF were paid to Group.

3.

The transfer to non-covered business represents the IFRS profits arising in the period from the provisions of investment management services by Legal & General Investment Management to the UK covered business, which have been included in the operating profit of the covered business on the look through basis.

4.

The other reserve movements reflect the pension deficit movement, the movement of investment project costs from covered to non-covered business and the effect of reinsurance arrangement transactions between UK and US covered business.

5.

The number of shares in issue at 31 December 2012 was 5,912,782,826.

At 1 January

 

 

 

 

 

Value of in-force business (VIF)

4,247

217

913

5,377

Shareholder net worth (SNW)

3,218

252

149

(388)

3,231

At 1 January 2012

7,465

469

1,062

(388)

8,608

Exchange rate movements

(12)

(50)

40

(22)

 

 

 

 

 

 

Operating profit after tax for the year

653

19

77

71

820

Non-operating loss for the year

(23)

(20)

(18)

(26)

(87)

Profit/(loss) for the year

630

(1)

59

45

733

Intra-group distributions2

(473)

(14)

(40)

527

Dividends to equity holders of the Company

(394)

(394)

Transfer to non-covered business3

(22)

22

Other reserve movements including pension deficit4

(20)

(57)

52

(25)

Embedded value at 31 December 2012

7,580

442

974

(96)

8,900

 

 

 

 

 

 

Value of in-force business

4,402

146

735

5,283

Shareholder net worth

3,178

296

239

(96)

3,617

 

 

 

 

 

 

Embedded value per share (p)5

 

 

 

 

151

Further analysis of the LGAS and LGR covered business can be found in Note 2.

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