Interim results for 6 months ended 30 June 2006
Operating and financial review
New business contribution – after deducting required capital, tax and minority interest
New business contribution after required capital, tax and minority interest increased by 23% to £194 million while sales on a post minority basis grew by 20%. The total new business margin therefore remained unchanged at 1.7% when compared with the first half of 2005, with bancassurance accounting for 30% of new business contribution within the period.
| Present value of new business premiums(1) | New business contribution(2) | New business margin(3) | ||||||
|---|---|---|---|---|---|---|---|---|
| 6 months 2006 £m |
6 months 2005 £m |
6 months 2006 £m |
6 months 2005 £m |
6 months 2006 % |
6 months 2005 % |
|||
| Bancassurance channels | 2,218 | 1,678 | 59 | 42 | 2.7% | 2.5% | ||
| Other distribution channels | 8,932 | 7,597 | 135 | 116 | 1.5% | 1.5% | ||
| Total life and pensions business | 11,150 | 9,275 | 194 | 158 | 1.7% | 1.7% | ||
| Analysed: | ||||||||
| Continental Europe | 4,651 | 4,409 | 87 | 75 | 1.9% | 1.7% | ||
| Rest of the World | 683 | 554 | 12 | 8 | 1.8% | 1.4% | ||
| International | 5,334 | 4,963 | 99 | 83 | 1.9% | 1.7% | ||
| UK | 5,816 | 4,312 | 95 | 75 | 1.6% | 1.7% | ||
(1) Stated after deducting the minority interest.
(2) Stated after deducting the effect of required capital, tax and minority interest.
(3) New business margin represents the ratio of new business contribution to present value of new business premiums, expressed as a percentage.
