Worldwide long-term savings new business – nine months to 30 September 2006
Supplement 3
Detailed analysis of new business contribution
(a) Before the effect of required capital – PVNBP basis
| Present value of new business premiums1 |
New business contribution2, 3 |
New business margin4 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 9 months 2006 £m |
9 months 2005 £m |
9 months 2006 £m |
9 months 2005 £m |
9 months 2006 |
9 months 2005 |
Full year 2005 |
|||
| Life and pensions | |||||||||
| United Kingdom | 8,791 | 6,686 | 254 | 201 | 2.9% | 3.0% | 2.9% | ||
| France | 2,717 | 2,593 | 111 | 98 | 4.1% | 3.8% | 3.8% | ||
| Ireland | 902 | 504 | 19 | 13 | 2.1% | 2.6% | 2.4% | ||
| Italy | 2,059 | 1,816 | 51 | 46 | 2.5% | 2.5% | 2.6% | ||
| Netherlands (including Germany, Belgium and Luxembourg) | 1,689 | 2,008 | 45 | 56 | 2.7% | 2.8% | 3.3% | ||
| Poland | 385 | 222 | 20 | 11 | 5.2% | 5.0% | 5.0% | ||
| Spain | 1,294 | 1,353 | 128 | 116 | 9.9% | 8.6% | 8.7% | ||
| Other Europe | 215 | 182 | (4) | 1 | (1.9)% | 0.5% | (0.4)% | ||
| Continental Europe | 9,261 | 8,678 | 370 | 341 | 4.0% | 3.9% | 4.2% | ||
| Asia | 455 | 250 | 23 | 13 | 5.1% | 5.2% | 5.1% | ||
| Australia | 213 | 253 | 10 | 11 | 4.7% | 4.3% | 4.7% | ||
| United States | 408 | 393 | 9 | 9 | 2.2% | 2.3% | 2.5% | ||
| Rest of the World | 1,076 | 896 | 42 | 33 | 3.9% | 3.7% | 3.9% | ||
| International | 10,337 | 9,574 | 412 | 374 | 4.0% | 3.9% | 4.1% | ||
| Total life and pensions | 19,128 | 16,260 | 666 | 575 | 3.5% | 3.5% | 3.6% | ||
| Analysed between: | |||||||||
| Bancassurance channels | 5,622 | 4,531 | 274 | 219 | 4.9% | 4.8% | 5.1% | ||
| Other distribution channels | 13,506 | 11,729 | 392 | 356 | 2.9% | 3.0% | 3.1% | ||
| 19,128 | 16,260 | 666 | 575 | 3.5% | 3.5% | 3.6% | |||
- 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 the effect of required capital.
- New business contribution before the effect of required capital includes minority interests in 2006 of £134 million (9 months 2005: £110 million). This comprises minority interests in France of £18 million (9 months 2005: £15 million), Ireland £4 million (9 months 2005: nil), Italy £30 million (9 months 2005: £27 million), Spain £71 million (9 months 2005: £59 million), Poland £3 million (9 months 2005: £2 million), Netherlands £7 million (9 months 2005: £7 million) and Sri Lanka £1 million (2005: nil)
- New business margin represents the ratio of new business contribution to PVNBP, expressed as a percentage.
(b) After the effect of required capital
| Present value of new business premiums1 |
New business contribution2, 3 |
New business margin4 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 9 months 2006 £m |
9 months 2005 £m |
9 months 2006 £m |
9 months 2005 £m |
9 months 2006 |
9 months 2005 | Full year 2005 |
|||
| Life and pensions business | |||||||||
| United Kingdom | 8,791 | 6,686 | 205 | 165 | 2.3% | 2.5% | 2.4% | ||
| France | 2,717 | 2,593 | 80 | 66 | 2.9% | 2.5% | 2.6% | ||
| Ireland | 902 | 504 | 13 | 11 | 1.4% | 2.2% | 2.0% | ||
| Italy | 2,059 | 1,816 | 35 | 28 | 1.7% | 1.5% | 1.6% | ||
| Netherlands (including Germany, Belgium and Luxembourg) | 1,689 | 2,008 | 23 | 29 | 1.4% | 1.4% | 2.1% | ||
| Poland | 385 | 222 | 18 | 10 | 4.7% | 4.5% | 4.7% | ||
| Spain | 1,294 | 1,353 | 117 | 102 | 9.0% | 7.5% | 7.7% | ||
| Other Europe | 215 | 182 | (5) | (2) | (2.3)% | (1.1)% | (2.1)% | ||
| Continental Europe | 9,261 | 8,678 | 281 | 244 | 3.0% | 2.8% | 3.1% | ||
| Asia | 455 | 250 | 19 | 11 | 4.2% | 4.4% | 4.1% | ||
| Australia | 213 | 253 | 4 | 5 | 1.9% | 2.0% | 2.7% | ||
| United States | 408 | 393 | 4 | 4 | 1.0% | 1.0% | 1.3% | ||
| Rest of the World | 1,076 | 896 | 27 | 20 | 2.5% | 2.2% | 2.5% | ||
| International | 10,337 | 9,574 | 308 | 264 | 3.0% | 2.8% | 3.0% | ||
| Total life and Pensions | 19,128 | 16,260 | 513 | 429 | 2.7% | 2.6% | 2.8% | ||
- 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.
- New business contribution is after the effect of required capital. 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 2006 of £109 million (9 months to 30 September 2005: £83 million). This comprises minority interests in France of £11 million (9 months to 30 September 2005: £8 million), Ireland £3 million (9 months 2005: nil), Italy £20 million (9 months 2005: £17 million), Spain £66 million (9 months 2005: £52 million), Poland £3 million (9 months 2005: £1 million) and Netherlands £6 million (9 months to 30 September 2005: £5 million).
- New business margin represents the ratio of new business contribution after the effect of required capital to PVNBP, expressed as a percentage.
(c) After the effect of required capital, minority interest, and tax
| Present value of new business premiums1 |
New business contribution2 |
New business margin3 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 9 months 2006 £m |
9 months 2005 £m |
9 months 2006 £m |
9 months 2005 £m |
9 months 2006 |
9 months 2005 | Full year 2005 |
|||
| United Kingdom | 8,791 | 6,686 | 144 | 117 | 1.6% | 1.7% | 1.7% | ||
| Continental Europe | 6,525 | 6,261 | 118 | 106 | 1.8% | 1.7% | 1.9% | ||
| Rest of the World | 1,072 | 896 | 21 | 15 | 2.0% | 1.7% | 2.0% | ||
| International | 7,597 | 7,157 | 139 | 121 | 1.8% | 1.7% | 1.9% | ||
| Attributable to equity shareholders | 16,388 | 13,843 | 283 | 238 | 1.7% | 1.7% | 1.8% | ||
| Analysed between: | |||||||||
| Bancassurance channels | 3,246 | 2,382 | 88 | 64 | 2.7% | 2.7% | 2.9% | ||
| Other distribution channels | 13,142 | 11,461 | 195 | 174 | 1.5% | 1.5% | 1.6% | ||
| 16,388 | 13,843 | 283 | 238 | 1.7% | 1.7% | 1.8% | |||
- PVNBP is stated after deducting minority interest.
- 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.
