For the year ended 31 December 2006
| Notes | 2006 £m |
2005 £m |
|
|---|---|---|---|
| Revenue | |||
| Gross written premiums | 4 | 4,286 | 4,084 |
| Outward reinsurance premiums | (518) | (406) | |
| Net change in provision for unearned premiums | 7 | (6) | |
| Net premiums earned | 3,775 | 3,672 | |
| Fees from fund management and investment contracts | 535 | 348 | |
| Investment return | 6 | 16,572 | 26,931 |
| Operational income | 84 | 38 | |
| Total revenue | 4 | 20,966 | 30,989 |
| Expenses | |||
| Claims and change in insurance liabilities | 1,938 | 6,367 | |
| Reinsurance recoveries | 1,123 | 19 | |
| Net claims and change in insurance liabilities | 7 | 3,061 | 6,386 |
| Change in provisions for investment contract liabilities | 13,878 | 21,369 | |
| Acquisition costs | 987 | 550 | |
| Finance costs | 153 | 116 | |
| Other expenses | 8 | 674 | 619 |
| Transfers to unallocated divisible surplus | 284 | 360 | |
| Total expenses | 4 | 19,037 | 29,400 |
| Profit before income tax | 11 | 1,929 | 1,589 |
| Income tax attributable to policyholder returns | 13 | 89 | (206) |
| Profit from continuing operations before income tax attributable to equity holders | 2,018 | 1,383 | |
| Total income tax expense | 13 | (298) | (577) |
| Income tax attributable to policyholder returns | 13 | (89) | 206 |
| Income tax attributable to equity holders | 13 | (387) | (371) |
| Profit from continuing operations after income tax | 1,631 | 1,012 | |
| Profit from discontinued operations | 14 | – | 13 |
| Profit from ordinary activities after income tax | 1,631 | 1,025 | |
| Attributable to: | |||
| Minority interests | 31 | 67 | 81 |
| Equity holders of the Company | 1,564 | 944 | |
| Dividend distributions to ordinary equity holders of the Company during the year | 15 | 349 | 331 |
| Distributions during the year on subordinated borrowings designated as equity | 15 | – | 16 |
| Dividend distributions to ordinary equity holders of the Company proposed after the year end | 15 | 248 | 236 |
| p | p | ||
| Earnings per share | 16 | ||
| Based on profit from continuing operations after income tax attributable to ordinary equity holders | 24.12 | 14.13 | |
| Based on profit attributable to ordinary equity holders of the Company | 24.12 | 14.33 | |
| Diluted earnings per share | 16 | ||
| Based on profit from continuing operations after income tax attributable to ordinary equity holders | 23.95 | 13.76 | |
| Based on profit attributable to ordinary equity holders of the Company | 23.95 | 13.95 |