- 1. Accounting policies
- 2. Impact of significant events and changes in 2006
- 3. Operating Profit Information
- 4. Segmental Analysis
- 5. New business (Gross of Reinsurance)
- 6. Investment return
- 7. Net claims and change in insurance liabilities
- 8. Other expenses
- 9. Auditors' remuneration
- 10. Employee information
Back to Notes to the Financial Statements
4. Segmental analysis
The Group is organised into three main business segments:
- Long term business (includes insurance and investment business)
- Investment management
- General insurance
Other operations comprise Shareholders’ assets, Estate agencies, Regulated mortgage network and Corporate expenses, none of which constitute a separately reportable segment.
| For the year ending 31 December 2006 | Long
term business1 £m |
Investment management £m |
General insurance £m |
Other operations £m |
Elimination
of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total revenue from continuing operations | 8,355 | 12,013 | 315 | 526 | (243) | 20,966 |
| Total expenses from continuing operations | 6,802 | 11,849 | 314 | 315 | (243) | 19,037 |
| Profit from continuing operations after income tax | 1,344 | 93 | 1 | 193 | – | 1,631 |
| Profit from discontinued operations (Note 14) | – | – | – | – | – | – |
| Inter segment revenue | (26) | (40) | (2) | (175) | 243 | – |
| For the year ending 31 December 2005 | Long
term business £m |
Investment management £m |
General insurance £m |
Other operations £m |
Elimination
of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total revenue from continuing operations | 11,512 | 18,833 | 328 | 559 | (243) | 30,989 |
| Total expenses from continuing operations | 10,373 | 18,724 | 311 | 235 | (243) | 29,400 |
| Profit from continuing operations after income tax | 650 | 71 | 13 | 278 | – | 1,012 |
| Profit from discontinued operations (Note 14) | – | – | 13 | – | – | 13 |
| Inter segment revenue | – | (59) | (2) | (182) | 243 | – |
- 1.
- The long term business segment for 2006 has been impacted by the matters discussed in Note 2.
| As at 31 Decemeber 2006 | Long
term business £m |
Investment management £m |
General Insurance £m |
Other operations £m |
Elimination
of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total assets | 69,729 | 144,725 | 534 | 4,519 | (1,642) | 217,865 |
| Total liabilities | 66,053 | 144,000 | 365 | 3,250 | (1,642) | 212,026 |
| Total equity | 3,676 | 725 | 169 | 1,269 | – | 5,839 |
| As at 31 Decemeber 2005 | Long
term business £m |
Investment management £m |
General Insurance £m |
Other operations £m |
Elimination
of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total assets | 65,146 | 123,304 | 516 | 4,676 | (1,777) | 191,865 |
| Total liabilities | 62,901 | 122,622 | 351 | 2,832 | (1,777) | 186,929 |
| Total equity | 2,245 | 682 | 165 | 1,844 | – | 4,936 |
| 31 December 2006 | UK £m |
USA £m |
Netherlands £m |
France £m |
Elimination of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total revenue from continuing operations | 20,020 | 329 | 300 | 319 | (2) | 20,966 |
| Total assets | 212,185 | 2,478 | 1,415 | 1,807 | (20) | 217,865 |
| 31 December 2005 | UK £m |
USA £m |
Netherlands £m |
France £m |
Elimination
of inter segment amounts £m |
Total £m |
|---|---|---|---|---|---|---|
| Total revenue from continuing operations | 29,918 | 321 | 362 | 388 | – | 30,989 |
| Total assets | 186,936 | 2,016 | 1,269 | 1,663 | (19) | 191,865 |
| 2006 £m |
2005 £m |
|
|---|---|---|
| From continuing operations | ||
| UK life and pensions participating business | 376 | 485 |
| UK life and pensions non-participating business | 2,691 | 2,428 |
| Total UK life and pensions | 3,067 | 2,913 |
| USA | 347 | 329 |
| Netherlands | 266 | 243 |
| France | 283 | 265 |
| Total life and pensions | 3,963 | 3,750 |
| General insurance | ||
| Household | 240 | 234 |
| Other business | 83 | 100 |
| Total General insurance | 323 | 334 |
| Total gross written premiums | 4,286 | 4,084 |
Life and pensions gross written premiums by destination are not materially different from gross premiums written by origin. The General insurance premiums arise wholly in the UK.