Consolidated Income Statement

For the year ended 31 December 2014

Notes

2014
£m

20131
£m

1.

The Consolidated Income Statement has been restated to reflect the adoption by the group of IFRS 10, ‘Consolidated Financial Statements’. Further details are contained in Note 1. The impact is to increase the profit for the year by £10m for 2013.

Revenue

 

 

 

Gross written premiums

33(iv)

10,168

6,162

Outward reinsurance premiums

33(iv)

(1,122)

(874)

Net change in provision for unearned premiums

 

1

(18)

Net premiums earned

 

9,047

5,270

Fees from fund management and investment contracts

33(v)

1,085

1,040

Investment return

34

40,639

32,234

Operational income

3

746

720

Total revenue

 

51,517

39,264

 

 

 

 

Expenses

 

 

 

Claims and change in insurance liabilities

 

15,071

5,767

Reinsurance recoveries

 

(975)

(1,113)

Net claims and change in insurance liabilities

35

14,096

4,654

Change in provisions for investment contract liabilities

23(ii)

33,385

30,458

Acquisition costs

11

873

855

Finance costs

26(ii)

183

166

Other expenses

3

1,748

1,694

Transfers (from)/to unallocated divisible surplus

24

(181)

112

Total expenses

 

50,104

37,939

 

 

 

 

Profit before tax

 

1,413

1,325

Tax expense attributable to policyholder returns

36(i)

(175)

(181)

Profit before tax attributable to equity holders

 

1,238

1,144

Total tax expense

 

(421)

(419)

Tax expense attributable to policyholder returns

36(i)

175

181

Tax expense attributable to equity holders

36(i)

(246)

(238)

Profit for the year

 

992

906

 

 

 

 

Attributable to:

 

 

 

Non-controlling interests

 

7

13

Equity holders of the Company

 

985

893

 

 

 

 

Dividend distributions to equity holders of the Company during the year

4

580

479

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

4

496

408

 

 

 

 

 

 

p

p

Earnings per share

 

 

 

Based on profit attributable to equity holders of the Company

5

16.70

15.20

 

 

 

 

Diluted earnings per share

 

 

 

Based on profit attributable to equity holders of the Company

5

16.54

15.00