Supplement 4 - Detailed analysis of new business contribution
(a) Before the effect of solvency margin
| Annual premium equivalent (1) | New business contribution (2, 3) | New business margin (4) | |||||
|---|---|---|---|---|---|---|---|
| 9 months 2004 £m |
9 months 2003 £m |
9 months 2004 £m |
9 months 2003 £m |
9 months 2004 % |
9 months 2003 % |
Full year 2003 % |
|
| Life and pensions business | |||||||
| United Kingdom | 849 | 802 | 195 | 180 | 23.0% | 22.4% | 22.6% |
| France | 209 | 177 | 63 | 51 | 30.2% | 28.8% | 29.0% |
| Ireland | 63 | 55 | 14 | 16 | 22.3% | 28.9% | 28.5% |
| Italy | 133 | 148 | 31 | 35 | 23.3% | 23.7% | 23.2% |
| Netherlands (including Belgium and Luxembourg) | 182 | 146 | 58 | 34 | 31.9% | 23.2% | 27.7% |
| Poland | 27 | 27 | 4 | - | 14.7% | - | 8.5% |
| Spain | 182 | 174 | 93 | 92 | 51.1% | 53.0% | 54.4% |
| Other Europe | 81 | 68 | - | (3) | - | (4.4%) | (3.0%) |
| Continental Europe | 877 | 795 | 263 | 225 | 30.0% | 28.3% | 29.8% |
| International | 121 | 148 | 29 | 32 | 23.9% | 21.7% | 24.6% |
| 1,847 | 1,745 | 487 | 437 | 26.4% | 25.0% | 26.1% | |
|
(1) Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single premiums. (2) Before effect of solvency margin. (3) New business contribution before the effect of solvency margin includes minority interests in 2004 of £78 million (nine months to 30 September 2003: £77 million). This comprises minority interests in France of £4 million (nine months to 30 September 2003: £3 million), Italy £18 million (nine months to 30 September 2003: £19 million), Spain £48 million (nine months to 30 September 2003: £48 million), Poland nil (nine months to 30 September 2003: nil) and Netherlands £8 million (nine months to 30 September 2003: £7 million). (4) New business margin represents the ratio of new business contribution to annual premium equivalent, expressed as a percentage. |
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(b) Including the effect of solvency margin(1, 2)
| 9 months 2004 £m |
9 months 2003 £m |
|
|---|---|---|
| Life and pensions business | ||
| United Kingdom | 171 | 161 |
| France | 31 | 20 |
| Ireland | 11 | 13 |
| Italy | 21 | 21 |
| Netherlands (including Belgium and Luxembourg) | 39 | 12 |
| Poland | 3 | (2) |
| Spain | 76 | 79 |
| Other Europe | (3) | (6) |
| Continental Europe | 178 | 137 |
| International | 22 | 24 |
| 371 | 322 | |
(1) The effect of solvency margin represents the impact of holding the minimum European Union (EU) solvency margin (or equivalent for non-EU operations) and discounting to present value the projected future releases from the solvency margin to shareholders. (2) New business contribution after the effect of solvency margin includes minority interests in 2004 of £59 million (nine months to 30 September 2003: £58 million). This comprises minority interests in France of £1 million (nine months to 30 September 2003: £1 million), Italy £12 million (nine months to 30 September 2003: £11 million), Netherlands £7 million (nine months to 30 September 2003: £5 million), Poland nil (nine months to 30 September 2003: nil), and Spain £39 million (nine months to 30 September 2003: £41 million). |
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New business contribution – before minority interest
| Annual premium equivalent | New business contribution(1) | New business margin(2) | |||||
|---|---|---|---|---|---|---|---|
| 9 months 2004 £m |
9 months 2003 £m |
9 months 2004 £m |
9 months 2003 £m | 9 months 2004 % |
9 months 2003 % |
Full year 2003 % |
|
| Analysed between: | |||||||
| - Bancassurance channels | 415 | 393 | 161 | 154 | 38.8% | 39.2% | 39.7% |
| - Other distribution channels | 1,432 | 1,352 | 326 | 283 | 22.8% | 20.9% | 22.1% |
| Attributable to equity shareholders | 1,847 | 1,745 | 487 | 437 | 26.4% | 25.0% | 26.1% |
| (1) Stated before the effect of solvency margin. (2) New business margin represents the ratio of new business contribution before deducting cost of capital, tax and minority interest to annual premium income before deducting the minority share, expressed as a percentage. |
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New business contribution – after minority interest
| Annual premium equivalent(1) | New business contribution(2) | New business margin(3) | |||||
|---|---|---|---|---|---|---|---|
| 9 months 2004 £m |
9 months 2003 £m |
9 months 2004 £m |
9 months 2003 £m |
9 months 2004 % |
9 months 2003 % |
Full year 2003 % |
|
| Analysed between: | |||||||
| - Bancassurance channels | 238 | 229 | 49 | 45 | 20.6% | 19.7% | 20.8% |
| - Other distribution channels | 1,404 | 1,322 | 168 | 140 | 12.0% | 10.6% | 11.5% |
| Attributable to equity shareholders | 1,642 | 1,551 | 217 | 185 | 13.2% | 11.9% | 12.9% |
| (1) Stated after deducting the minority interest of sales. (2) Contribution stated after deducting cost of capital, tax and minority interest. (3) New business margin represents the ratio of new business contribution after deducting cost of capital, tax and minority interest to annual premium income after deducting the minority share, expressed as a percentage. |
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