London - 5 August 2011
CONTINUED PROFITABLE GROWTH AND CASH GENERATION
- Total APE sales of £1,824 million, up 10 per cent
- EEV new business profit margin (% APE) of 59 per cent
- EEV new business profit of £1,069 million, up 20 per cent
- Investment in new business of £297 million (2010: £337 million)
- Operating profit of £1,058 million, up 25 per cent
- Shareholders' funds of £8.5 billion, up 19 per cent (2010: £7.2 billion)
- Operating profit of £2,147 million, up 28 per cent
- Shareholders' funds of £19.0 billion, up 14 per cent, equivalent to 745 pence per share
Capital & Dividend:
- Insurance Groups Directive ('IGD') capital surplus estimated at £4.1 billion2
- Underlying free surplus generation up 15 per cent to £1,093 million (2010: £947 million)
- 2011 interim dividend increased by 20 per cent to 7.95 pence per share (2010: 6.61 pence per share), reflecting the upwards rebasing of the dividend at full year 2010
Commenting on the results, Tidjane Thiam, Group Chief Executive, said: "We have reported another good performance in the first half of 2011. Against the challenging comparator of 2010, we have increased new business profit and IFRS and EEV operating profits by 20 per cent or more. The Group continues to generate growing amounts of underlying free surplus, up 15 per cent versus the same period last year. For the first time, both our IFRS operating profit and our EEV new business profit have exceeded £1 billion for the first six months of the year. These results have been achieved from a position of financial strength; the Group has a resilient balance sheet, with an IGD capital surplus of £4.1billion at the half year.
"We have continued to concentrate on the fast growing and highly profitable markets of South-East Asia, and the positive momentum of 2010 has been maintained during the first half of this year, with new business profit up 17 per cent in Asia and 22 per cent in Asia ex-India. In the US, Jackson is now one of the leading providers of variable annuities in the world's largest retirement market, and we continue to balance sales growth with increasing cash generation and profitability. Our UK business is performing in line with our strategy, balancing writing new business with generating cash and preserving capital. In asset management, both M&G and our business in Asia are seeing IFRS profit grow in addition to rising funds under management.
"Our operating principle of putting value over volume, our focus on execution and the investment options the Group's structure and geographic footprint provides, have allowed us to continue to deliver value to shareholders. We expect to see continued, profitable and cash generative growth in the second half of 2011. We remain on course to deliver the 2013 profit growth and cash generation objectives we outlined at our investor day last year."
1 Asia 2010 comparative APE new business sales and new business profit exclude the Japanese insurance operations which ceased writing new business from 15 February 2010.
2 Before allowing for the interim dividend