• You are currently within Home page
• Investor relations
• Results and reports
• Results

Supplement 3 - Detailed analysis of new business contribution

(a) Before the effect of required capital – PVNBP basis

	Present value of new business premiums 1			New business contribution 2, 3			New business margin 4
	3 months 2005 £m	3 months 2004 £m		3 months 2005 £m	3 months 2004 £m		3 months 2005 %	3 months 2004 %	Full year 2004 %
Life and pensions business
United Kingdom	2,140	2,123		67	61		3.1%	2.9%	2.9%
France	1,020	717		36	24		3.5%	3.3%	3.4%
Ireland	185	137		6	7		3.2%	5.1%	3.4%
Italy	601	443		16	12		2.7%	2.7%	2.7%
Netherlands (including Belgium and Luxembourg)	718	505		18	20		2.5%	4.0%	3.7%
Poland	61	79		3	3		4.9%	3.8%	4.6%
Spain	461	466		39	31		8.5%	6.7%	6.8%
Other Europe	224	139		3	-		1.3%	-	0.6%
Continental Europe	3,270	2,486		121	97		3.7%	3.9%	3.9%
International	249	186		9	8		3.6%	4.3%	3.4%
	5,659	4,795		197	166		3.5%	3.5%	3.4%
Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. Before effect of required capital. New business contribution before the effect of required capital includes minority interests in 2005 of £36 million (three months to 31 March 2004: £29 million). This comprises minority interests in France of £6 million (three months to 31 March 2004: £1 million), Italy £9 million (three months to 31 March 2004: £7 million), Spain £18 million (three months to 31 March 2004: £17 million), Poland £1 million (three months to 31 March 2004: £1 million) and Netherlands £2 million (three months to 31 March 2004: £3 million). New business margin represents the ratio of new business contribution to PVNBP, expressed as a percentage.

(b) Including the effect of required capital^{1, 2}

	3 months 2005 £m	3 months 2004 £m
Life and pensions business
United Kingdom	49	51
France	23	13
Ireland	6	6
Italy	10	8
Netherlands (including Belgium and Luxembourg)	6	12
Poland	3	2
Spain	35	27
Other Europe	-	-
Continental Europe	83	68
International	6	5
	138	124
The effect of required capital represents the impact of holding the required capital (expressed as a % of minimum European Union (EU) solvency margin or equivalent for non-EU operations) and discounting to present value the projected future releases from the required capital to shareholders. New business contribution after the effect of required capital includes minority interests in 2005 of £27 million (three months to 31 March 2004: £21 million). This comprises minority interests in France of £3 million (three months to 31 March 2004: nil), Italy £6 million (three months to 31 March 2004: £5 million), Spain £16 million (three months to 31 March 2004: £14 million), Poland £1 million (three months to 31 March 2004: nil) and Netherlands £1 million (three months to 31 March 2004: £2 million).

(c) New business contribution – before minority interest, cost of capital and tax

	Present value of new business premiums			New business contribution1			New business margin2
	3 months 2005 £m	3 months 2004 £m		3 months 2005 £m	3 months 2004 £m		3 months 2005 %	3 months 2004 %	Full year 2004 %
Analysed between:
- Bancassurance channels	1,527	1,126		70	58		4.6%	5.2%	4.9%
- Other distribution channels	4,132	3,669		127	108		3.1%	2.9%	3.0%
Attributable to equity shareholders	5,659	4,795		197	166		3.5%	3.5%	3.4%
Stated before the effect of required capital. New business margin represents the ratio of new business contribution before deducting cost of capital, tax and minority interest to PVNBP before deducting the minority share, expressed as a percentage.

(d) New business contribution – after minority interest, cost of capital and tax

	Present value of new business premiums 1			New business contribution2			New business margin 3
	3 months 2005 £m	3 months 2004 £m		3 months 2005 £m	3 months 2004 £m		3 months 2005 %	3 months 2004 %	Full year 2004 %
Analysed between:
- Bancassurance channels	794	611		19	18		2.4%	2.9%	2.7%
- Other distribution channels	4,044	3,577		58	53		1.4%	1.5%	1.5%
Attributable to equity shareholders	4,838	4,188		77	71		1.6%	1.7%	1.6%
Stated after deducting the minority interest of sales. Contribution stated after deducting cost of required capital, tax and minority interest. New business margin represents the ratio of new business contribution after deducting cost of required capital, tax and minority interest to PVNBP after deducting the minority share, expressed as a percentage.

index | previous | next