DOCSLIB.ORG

View Annual Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
View Annual Report INSPIRING CONFIDENCE IN THE FUTURE PHOENIX GROUP HOLDINGS PLC ANNUAL REPORT & ACCOUNTS 2019 In this Report Key Performance Other Performance Indicators Indicators STRATEGIC REPORT What we do ������������������������������������������������� 2 The Phoenix Group timeline ������������������������ 4 £707m £116 m Chairman’s Statement ��������������������������������� 6 OPERATING COMPANIES’ IFRS PROFIT Group Chief Executive CASH GENERATION AFTER TAX Officer’s Report ������������������������������������������� 8 APM REM Cash ����������������������������������������������������������� 12 Resilience ��������������������������������������������������� 14 Growth ������������������������������������������������������� 16 Our Markets ����������������������������������������������� 18 £475m Our Operating Structure ���������������������������� 22 £3.1bn INCREMENTAL LONG-TERM Our Key Products �������������������������������������� 23 GROUP SOLVENCY II CASH GENERATION Our Business Segments ��������������������������� 24 SURPLUS (ESTIMATED) APM Our Business Model ���������������������������������� 26 Our Strategy and KPIs ������������������������������� 30 Business Review ��������������������������������������� 38 Risk Management ������������������������������������� 48 Reporting Statements ������������������������������� 58 161 % £158 m Stakeholder Engagement �������������������������� 60 GROUP SHAREHOLDER UK OPEN AND EUROPE NEW CAPITAL COVERAGE BUSINESS CONTRIBUTION RATIO (ESTIMATED) APM CORPORATE GOVERNANCE APM Chairman’s Introduction ���������������������������� 74 Board Structure ������������������������������������������ 77 Board of Directors �������������������������������������� 78 Executive Management Team ����������������� 80 Corporate Governance Report ������������������ 81 £248bn Board Leadership and 23.4p ASSETS UNDER FINAL DIVIDEND ADMINISTRATION Company Purpose ��������������������������������� 82 PER SHARE APM Division of Responsibilities ������������������� 88 Composition, Succession and Evaluation���������������������������������������� 90 Audit, Risk and Internal Control ������������ 92 Directors’ Remuneration report ���������������� 99 Directors’ Report ������������������������������������� 131 £810 m 22% Statement of Directors’ OPERATING PROFIT FINANCIAL APM Responsibilities ���������������������������������������� 135 LEVERAGE RATIO APM FINANCIALS All amounts throughout the report Independent Auditor’s Report ����������������� 137 marked with REM are KPIs linked to IFRS Consolidated 94% Executive remuneration� See Directors’ Remuneration Report on page 99� Financial Statements ������������������������������� 147 CUSTOMER Notes to the Consolidated SATISFACTION SCORE All amounts throughout the report Financial Statements ������������������������������� 154 REM marked with APM are Alternative Parent Company Financial Statements ���244 Phoenix Life only Performance Measures� Read more Notes to the Parent Company on page 264� Financial Statements ������������������������������� 247 Additional Life Company Asset Disclosures ���������������������������������������������� 255 Additional Capital Disclosures ����������������� 262 71 % Alternative Performance NET EASY CUSTOMER Measures �������������������������������������������������264 EFFORT SCORE REM Standard Life only ADDITIONAL INFORMATION Shareholder Information ��������������������������266 Glossary ���������������������������������������������������268 Forward-looking Statements������������������� 272 The acquisition of ReAssure Group plc referenced throughout this report is subject to regulatory approvals� www. thephoenixgroup.com STRATEGIC REPORT INSPIRING CONFIDENCE IN THE FUTURE Phoenix Group is Europe’s largest life and pensions consolidator. We are committed to our purpose: To inspire confidence in the future. We inspire confidence through our history and growth, through our track record of value creation, strategic and financial delivery and through continued positive engagement and outcomes for all our stakeholders. Our culture is founded on a clear set of values: Passion, Responsibility, Growth, Courage and Difference. Delivery of Cash, Resilience and Growth helps achieve our mission to improve outcomes for customers and deliver value for shareholders. Read more on pages 12 to 17. We are driven by our vision to be Europe’s Leading Life Consolidator. PHOENIX GROUP HOLDINGS PLC ANNUAL REPORT & ACCOUNTS 2019 1 What we do PHOENIX AT A GLANCE GLASGOW LOCATIONS OUR VISION Become Europe’s DUBLIN Leading Life EDINBURGH Consolidator OUR PURPOSE BIRMINGHAM Inspire confidence in the future LONDON BRISTOL OUR MISSION Improve outcomes for BASINGSTOKE customers and deliver value for shareholders FRANKFURT GRAZ As the largest life and pensions GROUP ASSETS UNDER ADMINISTRATION consolidator in Europe, Phoenix is focused on the acquisition and management of closed life insurance and pension funds� This is our Heritage business� Transactions in the bulk purchase annuity market offer a complementary source of growth for the Group and the management actions we deliver help increase and accelerate cash flows� Alongside this, we have an Open £248bn business which manufactures and underwrites new products and policies to support people saving for their future in areas such as workplace pensions and self-invested personal pensions� This Open business is supported by the Strategic Partnership with Standard Life Aberdeen plc� We also have a market leading brand – SunLife – which sells a range UK Heritage £126bn of financial products specifically for UK Open £97bn the over 50s market� Europe £25bn 2 PHOENIX GROUP HOLDINGS PLC ANNUAL REPORT & ACCOUNTS 2019 STRATEGIC REPORT OUR THREE BUSINESS SEGMENTS UK Heritage UK Open Europe Our UK Heritage business comprises Our UK Open business comprises capital- Our European business provides a platform products that are no longer actively light products that are actively marketed for potential future consolidation� It contains marketed to customers� Phoenix is to customers� Phoenix is committed both Open and Heritage products split a leader in the safe and efficient to growing its UK Open business� across Germany and Ireland� management of its UK Heritage business� ASSETS UNDER ADMINISTRATION 5 4 3 3 1 1 £126bn £97bn £25bn 1 2 3 2 2 1� With-profits 32% 1� Workplace 43% 1� Germany 49% 2� With-profit (supported) 3% 2� Retail pensions 29% 2� Ireland 23% 3� Unit linked 45% 3� Wrap 28% 3� International Bond 28% 4� Non-profit (annuities) 16% 5� Non-profit (protection, shareholder 4% funds and other non-profit)) Read more on page 24 Read more on page 25 Read more on page 25 STRATEGIC PRIORITIES 01 02 03 04 IMPROVE DRIVE MANAGE ENGAGE CUSTOMER VALUE CAPITAL COLLEAGUES OUTCOMES Improving customer In order to drive value, the We continue to focus on Our people are at the heart outcomes is central to our Group looks to identify and the effective management of our business and key vision of being Europe’s undertake management of our risks and the efficient to the successful growth Leading Life Consolidator� actions which increase and allocation of capital against of Phoenix Group� accelerate cash flow� those risks� Read more on page 30 Read more on page 32 Read more on page 34 Read more on page 36 OUR VALUES Passion Responsibility Growth Courage Difference Making a positive Doing the right thing Succeeding through Innovating by challenging Collaborating and finding impact by caring about by taking personal learning, experimenting ourselves and others strength through customers, colleagues ownership� and adapting� to do better� respecting and embracing and communities� new perspectives� STAKEHOLDERS Government, Customers Colleagues Environment Suppliers Community Investors Trade Bodies and Regulators MAIN BRANDS PHOENIX GROUP HOLDINGS PLC ANNUAL REPORT & ACCOUNTS 2019 3 The Phoenix Group timeline We inspire confidence through our history OUR HISTORY and growth. Phoenix has been a recognised name in the insurance world since 1782. AT A GLANCE It has grown to become Europe’s largest life and pensions consolidator. Resolution Life Group acquires UK life operations of Royal & Sun Alliance Edinburgh Phoenix & Glasgow Britannic acquires Assurance Assurance life operations of established established Allianz Cornhill Resolution plc Standard Life Britannic acquires Abbey Assurance acquires National’s life established Alba Life business 1782 1806 1825 1835 1836 1857 1999 2001 2004 2005 2006 2008 NPI Abbey National Pearl Group established acquires Scottish acquires Provident Resolution plc Pearl Group created Pearl Loan London Life Company established Resolution Life Group established merges with Britannic Group plc and becomes Resolution plc 4 PHOENIX GROUP HOLDINGS PLC ANNUAL REPORT & ACCOUNTS 2019 STRATEGIC REPORT Successful Transferred approximately completion £5bn of annuity liabilities of two to Guardian Assurance acquisitions – AXA Wealth’s Liberty pension and Acquisition protection Holdings businesses (International) Divestment and Abbey acquires of Ignis Asset Life Assurance Pearl Group Management Company Limited 10 m POLICIES £248bn ASSETS UNDER ADMINISTRATION c.4,400 EMPLOYEES 2009 2010 2012 2013 2014 2015 2016 2018 2019 Phoenix announces the acquisition of ReAssure Group plc for a total consideration of £3.2bn Successful debt Phoenix acquires Standard re-terming and Life Assurance businesses equity raising and enhances strategic of £250m partnership with Standard Life Aberdeen PLC Pearl Group renamed Investment grade Phoenix Group Holdings credit rating and
Load more

Recommended publications
  • Phoenix Group Holdings
    PROSPECTUS DATED 25 SEPTEMBER 2020 Phoenix Group Holdings plc (incorporated with limited liability in England and Wales with registered number 11606773) £5,000,000,000 Euro Medium Term Note Programme Under the Euro Medium Term Note Programme described in this Prospectus (the “Programme”) Phoenix Group Holdings plc (“Phoenix” or “PGH” or the “Issuer”), subject to compliance with all relevant laws, regulations and directives, may from time to time issue notes (the “Notes”). The Notes may be issued (i) as dated unsubordinated notes (“Senior Notes”), (ii) as dated subordinated notes with terms capable of qualifying as Tier 3 Capital (as defined in “Terms and Conditions of the Tier 3 Notes”) (“Tier 3 Notes”), (iii) as dated subordinated notes with terms capable of qualifying as Tier 2 Capital (as defined in “Terms and Conditions of the Tier 2 Notes”) (“Dated Tier 2 Notes”) or as undated subordinated notes with terms capable of qualifying as Tier 2 Capital (as defined in “Terms and Conditions of the Tier 2 Notes”) (“Undated Tier 2 Notes” and, together with the Dated Tier 2 Notes, the “Tier 2 Notes”). The Tier 2 Notes and the Tier 3 Notes are referred to collectively in this Prospectus as the “Subordinated Notes”. The aggregate nominal amount of Notes outstanding will not at any time exceed £5,000,000,000 (or the equivalent in other currencies). Payments of interest and principal under the Subordinated Notes may be subject to optional or mandatory deferral in accordance with the terms of the relevant Series (as defined herein) of Subordinated Notes. This Prospectus has been approved by the United Kingdom Financial Conduct Authority (the “FCA”), as competent authority under Regulation (EU) 2017/1129 (the “Prospectus Regulation”) as a base prospectus (the “Prospectus”) for the purposes of the Prospectus Regulation.
    [Show full text]
  • Royal London Annual Report and Accounts 2020
    Mutually responsible Annual Report and Accounts for the year ended 31 December 2020 The Royal London Mutual Insurance Society Limited Registered Number 99064 Contents Strategic report Corporate governance 06 Our Purpose 70 Governance overview 08 Group overview and 2020 highlights 71 Board of directors 10 Chairman’s statement 74 Group Executive Committee 12 Group Chief Executive’s review 75 Corporate governance statement 14 Covid-19: Our response 83 Board Committee reports 16 Our business model: creating value 102 Directors’ remuneration report for stakeholders 121 Overview of directors’ responsibilities 18 Measuring our performance for the year ended 31 December 2020 20 The world we live in 22 Our strategy Financial statements 25 Our social impact 126 Report on the audit of the 29 Section 172 statement financial statements 30 Engaging with our stakeholders 136 Financial statements and notes 38 Responsible investment and stewardship 40 Climate change Other information 44 Non-financial information statement 224 Glossary 45 Business review 228 2021 financial calendar, registered 52 Financial review office and contact offices information 58 Risk overview 61 Principal risks and uncertainties 66 Longer-term viability statement 2 Royal London Group Annual Report and Accounts 2020 We are Royal London and we are proud to be a mutual. Founded in 1861, we are the UK’s largest mutual life, pensions and investment company. Driven by our Purpose At Royal London, we have reframed Protecting today, investing in tomorrow. our Purpose and strategy to respond Together we are mutually responsible. to the changes being experienced by our members and customers Customer-focused and those who advise them.
    [Show full text]
  • Recommended All-Share Acquisition of Friends Life Group Ltd (Scheme
    THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. PART II OF THIS DOCUMENT, TOGETHER WITH THE REST OF THIS DOCUMENT, COMPRISES AN EXPLANATORY STATEMENT IN COMPLIANCE WITH PART VIII OF THE COMPANIES (GUERNSEY) LAW, 2008 (AS AMENDED). This document relates to a proposed acquisition which, if implemented, will result in the cancellation of the listing of Friends Life Shares on the Official List and of trading of Friends Life Shares on the London Stock Exchange’s main market for listed securities. If you are in any doubt as to the action you should take, you should consult, and seek your own independent financial advice immediately from, your stockbroker, bank manager, solicitor, accountant, fund manager or other appropriate independent financial adviser authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom or, if not, from another appropriately authorised independent financial adviser. If you sell, have sold or otherwise transferred all of your Friends Life Shares, please send this document, together with any accompanying documents (but not the accompanying personalised Forms of Proxy or Forms of Instruction), as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was effected for onward delivery to the purchaser or transferee. If you have sold or otherwise transferred part of your holding of Friends Life Shares, please consult the bank, stockbroker or other agent through whom the sale or transfer was effected. The distribution of this document and any accompanying documents in jurisdictions other than the United Kingdom, the United States or Guernsey may be restricted by the laws of those jurisdictions and therefore persons into whose possession this document and any accompanying documents come should inform themselves about and observe any such restrictions.
    [Show full text]
  • Prospectus Re Aviva Offer for Friends Life
    This document comprises a prospectus (the ‘‘Prospectus’’) relating to the New Aviva Shares and has been prepared in accordance with the Prospectus Rules of the Financial Conduct Authority (the ‘‘FCA’’) made under section 73A of the Financial Services and Markets Act 2000 (as amended) (‘‘FSMA’’). The Prospectus has been filed with the FCA and has been made available to the public in accordance with the Prospectus Rules. The Directors of Aviva plc (‘‘Aviva’’ or the ‘‘Company’’) and the Proposed Directors, whose names appear on page 57 of this Prospectus, and the Company accept responsibility for the information contained in this Prospectus. To the best of the knowledge of the Company, the Directors and the Proposed Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this Prospectus is in accordance with the facts and contains no omission likely to affect its import. Investors are advised to examine all the risks that might be relevant in connection with the value of an investment in the New Aviva Shares. Investors should read the entire document and, in particular, Part II (‘‘Risk Factors’’) for a discussion of certain factors that should be considered in connection with an investment in the Company, the Enlarged Aviva Group, the Ordinary Shares and the New Aviva Shares. 7JAN201521040362 AVIVA PLC (Incorporated under the Companies Act 1985 and registered in England and Wales with registered number 2468686) Proposed issue of up to 1,105,000,000 new ordinary shares of 25 pence each to be issued by the Company in connection with the proposed recommended all-share offer by the Company for the entire issued and to be issued ordinary share capital of Friends Life Group Limited to be implemented by way of scheme of arrangement under Part VIII of the Guernsey Company Law and Application for admission of the New Aviva Shares to the premium listing segment of the Official List and to trading on the London Stock Exchange’s main market for listed securities Joint Sponsors J.P.
    [Show full text]
  • Friends Life 2011
    Prospectus dated 18 April 2011 Friends Provident Holdings (UK) plc (incorporated in England and Wales with limited liability with registered number 06986155) £500,000,000 8.25 per cent. Fixed Rate Subordinated Notes due 2022 guaranteed by Friends Provident Life and Pensions Limited (incorporated in England and Wales with limited liability with registered number 04096141) The £500,000,000 8.25 per cent. Fixed Rate Subordinated Notes due 2022 guaranteed by Friends Provident Life and Pensions Limited (the ‘‘Guarantor’’) (the ‘‘Subordinated Notes’’) will be issued by Friends Provident Holdings (UK) plc (the ‘‘Issuer’’) on or about 21 April 2011 (the ‘‘Issue Date’’). Subject to satisfaction of the Issuer Solvency Condition (as defined herein) and to no Regulatory Deficiency Interest Deferral Event (as defined herein) having occurred, payments of interest on the Subordinated Notes will be made annually in arrear on 21 April in each year. The first payment will be made on 21 April 2012. Payments on the Subordinated Notes or under the Guarantee will be made without deduction for or on account of taxes of the United Kingdom to the extent described under ‘‘Terms and Conditions of the Subordinated Notes — 9. Taxation’’. Unless previously redeemed or purchased and cancelled, the Subordinated Notes will mature on 21 April 2022 (the ‘‘Maturity Date’’) and shall, subject to the satisfaction of the Issuer Solvency Condition and to no Regulatory Deficiency Redemption Deferral Event having occurred, be redeemed on the Maturity Date. Prior to any notice of redemption before the Maturity Date or any substitution, variation or purchase of the Subordinated Notes, the Issuer will be required to have complied with regulatory rules on notifications to, or consent from, (in either case, if and to the extent required) the UK Financial Services Authority (the ‘‘FSA’’) and to be in continued compliance with Regulatory Capital Requirements (as defined herein) applicable to it.
    [Show full text]
  • Prospectus Dated 6 November 2012 Friends Life Group
    Prospectus dated 6 November 2012 Friends Life Group plc (incorporated in England and Wales with limited liability with registered number 06986155) US$575,000,000 7.875 per cent. Reset Perpetual Subordinated Notes guaranteed by Friends Life Limited (incorporated in England and Wales with limited liability with registered number 04096141) The US$575,000,000 7.875 per cent. Reset Perpetual Subordinated Notes guaranteed by Friends Life Limited (the “Guarantor”) (the “Subordinated Notes”) will be issued by Friends Life Group plc (the “Issuer”) on or about 8 November 2012 (the “Issue Date”). Subject to satisfaction of the Issuer Solvency Condition (as defined herein), to no Regulatory Deficiency Interest Deferral Event (as defined herein) having occurred and unless the Issuer exercises its option to defer interest payments, payments of interest on the Subordinated Notes will be made semi-annually in arrear on 8 May and 8 November in each year. The first payment will be made on 8 May 2013. Payments on the Subordinated Notes or under the Guarantee (as defined herein) will be made without deduction for or on account of taxes of the United Kingdom to the extent described under “Terms and Conditions of the Subordinated Notes — 9. Taxation”. The Subordinated Notes have no fixed redemption date and the Issuer shall only have the right to redeem the Subordinated Notes in certain circumstances. Prior to any notice of redemption or any substitution, variation or purchase of the Subordinated Notes, the Issuer will be required to have complied with regulatory rules on notifications to, or consent from, (in either case, if and to the extent required) the UK Financial Services Authority (the “FSA”) and (in the case of a redemption only) to be in continued compliance with Regulatory Capital Requirements (as defined herein) applicable to it.
    [Show full text]
  • Friends Life Audited Consolidated Accounts 2013
    Securing your tomorrow, today Annual report and accounts 2013 Resolution Limited is a Guernsey incorporated Company with a premium listing on the London Stock Exchange. The Company holds its investment in the Friends Life group, a provider of pensions, investment and insurance with a heritage of over 200 years, through Resolution Holdco No. 1 LP, a Guernsey registered Limited Partnership. Further details on our group structure can be found on pages 72 to 74. In March 2013 we sought shareholders’ approval for changes to the Company’s constitution that enabled the Group to adopt a simplified governance structure. In practice this meant unifying the board membership of both Resolution Limited and its key operating subsidiary, Friends Life Group plc. We also stated that the Company would no longer target a specific exit event, but would seek to secure maximum value from each part of the Group and retain its focus on rigorous financial discipline and generating returns. This annual report includes an update to the Company’s strategy. In May 2014 we will seek permission from our shareholders at the Annual General Meeting (AGM) to change the Company name to Friends Life Group Limited to align this with our trading brand. We have described our restructuring and transformation journey on the following pages. Finding your way around the 2013 annual report and accounts: Strategic report Governance IFRS financial statements Pages 04 – 69 Pages 70 – 125 Pages 126 – 236 04 Chairman’s statement 72 Company structure and the 128 Independent auditor’s report
    [Show full text]
  • Friends Life Annual Reports and Accounts 2014
    FRIENDS LIFE GROUP LIMITED (formerly Resolution Limited) ANNUAL REPORT AND ACCOUNTS 2014 Registered Company Number 49558 Registered as a UK Establishment with company number BR016431 Friends Life Group Limited PO Box 25 Regency Court Glategny Esplanade St Peter Port Guernsey GY1 3AP Contents Strategic report Chairman’s statement 2 Business model 3 Group Chief Executive’s review 4 Chief Financial Officer’s review 6 Business review 2014 Highlights 10 Cash today 11 Cash tomorrow 13 Returns 16 Operating expenses 20 Non-operating results 21 Cash and capital 24 Financing and interest costs 28 Discontinued operations – Lombard 29 Principal risks and uncertainties 30 Corporate responsibility 34 Non-financial key performance indicators 35 Governance Corporate governance report 37 Directors’ remuneration report 52 Directors’ report 67 Statement of directors’ responsibilities 71 IFRS financial statements Independent auditor’s report 73 IFRS consolidated financial statements 76 Notes to IFRS consolidated financial statements 83 MCEV financial statements Statement of directors’ responsibilities 189 Independent auditor’s report 190 MCEV consolidated financial statements 191 Notes to MCEV consolidated financial statements 196 Additional Information Definitions 230 Abbreviations 233 Shareholder information 236 FRIENDS LIFE GROUP LIMITED 1 Chairman’s statement Accelerating value creation On 2 December 2014, we announced that we had agreed the terms of a proposed offer by Aviva plc (“Aviva”) to acquire Friends Life Group Limited (the “Proposed Acquisition”). The combination of Friends Life’s existing customer base with Aviva’s will create the UK’s largest life insurer, and is an attractive opportunity to accelerate the delivery of the Friends Life strategy. The increased scale, brand recognition and resourcing, combined with the expected financial synergies and cost savings strongly supports our focus on generating value for our shareholders and policyholders.
    [Show full text]
  • Friends Life Group Plc Report and Accounts for the Year Ended 31 December 2011
    FRIENDS LIFE GROUP PLC REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2011 REGISTERED NUMBER: 06986155 REGISTERED OFFICE: Pixham End Dorking Surrey RH4 1QA WorldReginfo - f6d91396-e21d-489e-9a4b-b46355eed759 REPORT OF THE DIRECTORS The directors present their report to the shareholder for the year ended 31 December 2011. On 1 July 2011 Friends Provident Holdings (UK) plc changed its name to Friends Life Group plc ("FLG", "the Company" or "Friends Life"). The Company's ultimate parent company is Resolution Limited, a Guernsey-based public company with a primary listing on the London Stock Exchange. Principal activities The principal activity of the Company is that of a holding company for acquisitions in the life assurance and pensions sector. The Company was formed in 2009 as the intermediate holding company for the acquired businesses of Friends Provident, AXA UK Life Business and BUPA Health Assurance ("BHA"). The combination of the Company and its subsidiary companies is referred to as the Group. The Group's principal activities comprise manufacturing and administering life and pensions products in the UK and related international markets. These encompass the UK protection market, the UK group pensions and vesting annuity market and international savings & investments, pensions and protection markets. As detailed in note 3 on page 73, for management purposes, the Group is split into three operating segments: (i) UK, comprising the Friends Provident UK Life and Pensions Business, the AXA UK Life Business and BHA; (ii) International, comprising Friends Provident International and the overseas life assurance businesses within the UK Life and Pension Subsidiaries; and (iii) Lombard.
    [Show full text]
  • Friends Life Group Limited
    5 March 2015 Friends Life Group Limited Results for the year ended 31 December 2014 Strong cash performance Sustainable free surplus £373 million, up 15% (2013: £325 million) and marginally ahead of guidance Continued strong performance in Corporate Benefits, positive net fund flows of £0.6 billion, taking assets under administration to £22.0 billion; significant improvement in underlying free surplus, up to £29 million (2013: £11 million) IFRS based operating profit before tax of £556 million, up 38% (2013: £402 million) MCEV operating profit before tax of £498 million, down 7% (2013: £535 million); mainly due to reduction in VNB Value of new business down £47 million to £132 million (including £32 million reduction in Retirement Income VNB) as predicted trends continue Capital position robust Available shareholder assets £1,066 million IGCA(i) surplus £2.3 billion, coverage ratio 240% Economic capital surplus(i) £3.7 billion, coverage ratio 196% Full year dividend of 31.15 pence per share subject to completion of the Proposed Acquisition by Aviva plc (2013: 21.14 pence per share)(ii) Business highlights Successful reallocation of £760 million of annuities from with-profits funds, resulting in a sustainable free surplus (“SFS”) benefit of circa £7 million per annum from 2015 Recapture of £1.6 billion of assets backing annuities in November, resulting in a SFS benefit of circa £13 million per annum from 2015 Further reallocation of £665 million of annuities completed in the first quarter of 2015 resulting in a SFS benefit of
    [Show full text]
  • 2012 07 AKG Offshore with Profits Bond Report
    JULY 2012 OFFSHORE LIFE OFFICE WITH PROFITS BOND REPORT OFFSHORE LIFE OFFICE Copyright WITH PROFITS BOND REPORT © AKG Actuaries & Consultants Ltd (AKG) 2012 This report is issued as at a certain date, and it remains AKG's current assessment with current ratings until it is superseded by a subsequently issued report or subsequently issued ratings (at which point the newly issued report or ratings should be used), or until AKG ceases to make such a report or ratings available. The report contains assessment based on available information at the date as shown on the report’s cover and in its page footer. This includes prior regulatory data which may have an earlier date associated with it, but the report also takes into account all relevant events and information, available to and considered by AKG, which have occurred prior to this stated cover and footer date. Events and information subsequent to this date are not covered within it. All rights reserved. This report is protected by copyright. This report and the data/information contained herein is provided on a single site multi user basis. It may therefore be utilised by a number of individuals within a location. If provided in paper form this may be as part of a physical library arrangement, but copying is prohibited under copyright. If provided in electronic form, this may be by means of a shared server environment, but copying or installation onto more than one computer is prohibited under copyright. Printing from electronic form is permitted for own (single location) use only and multiple printing for onward distribution is prohibited under copyright.
    [Show full text]