Interim results - 6 months ended 30 June 2007
Operating and financial review
Other operations
The Groups other operations recorded an operating loss of £72 million (2006: loss of £11 million) on an IFRS basis, the decrease mainly occurring in the Netherlands. In the United Kingdom, a decrease in operating profit in the RAC is offset by reduced losses in Norwich Union Life Services (NULS).
| 6 months 2007 £m | 6 months 2006 £m | Full year 2006 £m | |
|---|---|---|---|
| RAC | 6 | 20 | 45 |
| UK Life | |||
| - Norwich Union Life Services | (20) | (42) | (50) |
| - Lifetime and SIPP | (18) | (6) | (29) |
| Other | (40) | 17 | (46) |
| Total | (72) | (11) | (80) |
| Analysed by: | |||
| United Kingdom | (46) | (30) | (26) |
| Europe | (22) | 22 | (48) |
| North America | - | - | - |
| Asia Pacific | (4) | (3) | (6) |
United Kingdom
Operating profit from RAC non-insurance operations of £6 million (2006: £20 million) includes the costs of transforming the Auto Windscreens operating model and those incurred in the transformation of BSM. Additionally, the prior year numbers included £17 million from MSS and LVL which were disposed of in May 2006.
NU Life Services Ltd reported a reduced loss of £20 million (2006: £42 million loss) reflecting expense savings from the ongoing efficiency review in the UK life business.
Europe
The £22 million loss (2006: £22 million profit) mainly reflects lower banking profits and increased share scheme costs in the Netherlands and holding company costs across a number of our European business units. In the Netherlands, the banking result for the current period has been adversely affected by the flattening yield curve. Additionally, the prior period included a one-off gain on the sale of investments in the Netherlands of £17 million.
On an EEV basis, our other operations reported a loss of £45 million (2006: £29 million profit) as this excludes the majority of NU Life Services Ltd losses which are incorporated within the life EEV operating return.
