Preliminary results - 12 months ended 31 December 2006 01 March 2007
Summarised consolidated income statement – IFRS basis
For the year ended 31 December 2006
| 2006 €m | 2006 £m | 2005 £m | |
|---|---|---|---|
| Income: | |||
| 40,050 | Premiums written net of reinsurance | 27,234 | 24,982 |
| 40,187 | Net earned premiums | 27,327 | 24,859 |
| 2,750 | Fee and commission income | 1,870 | 1,851 |
| 22,754 | Net investment income | 15,473 | 23,722 |
| 713 | Share of profit after tax of joint ventures and associates | 485 | 340 |
| 327 | Profit on the disposal of subsidiaries and associates | 222 | 153 |
| 66,731 | 45,377 | 50,925 | |
| Expenses: | |||
| (34,476) | Claims and benefits paid, net of recoveries from reinsurers | (23,444) | (19,706) |
| (3,853) | Change in insurance liabilities, net of reinsurance | (2,620) | (10,376) |
| (8,826) | Change in investment contract provisions | (6,002) | (7,814) |
| (821) | Change in unallocated divisible surplus | (558) | (1,474) |
| (7,416) | Fee and commission expense | (5,043) | (4,330) |
| (5,231) | Other expenses | (3,557) | (3,166) |
| (1,221) | Finance costs | (830) | (609) |
| (61,844) | (42,054) | (47,475) | |
| 4,887 | Profit before tax | 3,323 | 3,450 |
| (509) | Tax attributable to policyholders’ returns | (346) | (922) |
| 4,378 | Profit before tax attributable to shareholders’ profits | 2,977 | 2,528 |
| Tax expense | |||
| (704) | United Kingdom tax | (479) | (1,150) |
| (670) | Overseas tax | (455) | (402) |
| (1,374) | (934) | (1,552) | |
| 509 | Less: tax attributable to policyholders’ returns | 346 | 922 |
| (865) | Tax attributable to shareholders’ profits | (588) | (630) |
| 3,513 | Profit for the year | 2,389 | 1,898 |
| Attributable to: | |||
| 3,257 | Equity shareholders of Aviva plc | 2,215 | 1,767 |
| 256 | Minority interests | 174 | 131 |
| 3,513 | 2,389 | 1,898 | |
All profit is from continuing operations.
| 2006 | 2006 | 2005 | |
|---|---|---|---|
| Earnings per share – IFRS basis | |||
| 128.7c | Basic (pence per share) | 87.5p | 73.5p |
| 127.4c | Diluted (pence per share) | 86.6p | 72.9p |
Subsequent to 31 December 2006, the directors proposed a final dividend for 2006 of 19.18p (final 2005: 17.44p) per ordinary share, amounting to £492 million (final 2005: £ 418 million) in total. Subject to the approval by shareholders at the AGM, the dividend will be paid on 17 May 2007 and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2007.
During 2006 the directors declared a final dividend for 2005 of 17.44p per ordinary share (final 2004: 16.00p) and an interim dividend for 2006 of 10.82p per ordinary share (interim 2005: 9.83p) totalling £418 million (2005: £364 million) and £275 million (2005: £233 million) respectively.
