Interim results - 6 months ended 30 June 2007
Operating and financial review
Bancassurance margins - before required capital, tax and minority interests
The weighted average bancassurance new business margin before the effect of required capital in the six months was 4.5% (2006: 4.7%). This reduction mainly reflects the impact of a change in business mix in Spain and lower volumes and tighter product margins in the Netherlands; offset by increased margins in the UK, Ireland and Italy. After the effect of required capital, the bancassurance margin was 3.8% (2006: 3.9%).
| Present value of new business premiums(1) | New business contribution(2) | New business margin(3) | ||||
|---|---|---|---|---|---|---|
| 6 months 2007 £m | 6 months 2006 £m | 6 months 2007 £m | 6 months 2006 £m | 6 months 2007 % | 6 months 2006 % | |
| Bancassurance channels | 2,586 | 2,218 | 71 | 59 | 2.7% | 2.7% |
| Other distribution channels | 10,716 | 8,932 | 169 | 135 | 1.6% | 1.5% |
| Total life and pensions business | 13,302 | 11,150 | 240 | 194 | 1.8% | 1.7% |
| Analysed by: | ||||||
| United Kingdom | 5,820 | 5,816 | 100 | 95 | 1.7% | 1.6% |
| Europe | 5,116 | 4,651 | 99 | 87 | 1.9% | 1.9% |
| North America | 1,716 | 289 | 23 | 1 | 1.3% | 0.3% |
| Asia Pacific | 650 | 394 | 18 | 11 | 2.8% | 2.8% |
(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.
