6. Segmental analysis of life and related businesses embedded value
| Net worth | Value of in-force covered business |
2007 Total |
|||||
|---|---|---|---|---|---|---|---|
| Required capital1 £m |
Free surplus £m |
Present value of in-force £m |
Cost of required capital £m |
Embedded value £m |
|||
| United Kingdom | 1,307 | 1,338 | 4,816 | (355) | 7,106 | ||
| France | 1,510 | 74 | 1,416 | (340) | 2,660 | ||
| Ireland | 267 | 213 | 564 | (45) | 999 | ||
| Italy | 305 | 464 | 299 | (61) | 1,007 | ||
| Netherlands (including Belgium and Germany) | 1,456 | 1,557 | 1,605 | (442) | 4,176 | ||
| Poland | 129 | 128 | 726 | (41) | 942 | ||
| Spain | 316 | 87 | 714 | (69) | 1,048 | ||
| Other Europe | 24 | 33 | 110 | (11) | 156 | ||
| Europe | 4,007 | 2,556 | 5,434 | (1,009) | 10,988 | ||
| North America2 | 776 | 46 | 918 | (152) | 1,588 | ||
| Asia Pacific | 241 | 187 | 281 | (72) | 637 | ||
| Total | 6,331 | 4,127 | 11,449 | (1,588) | 20,319 | ||
- Required capital is shown net of implicit items permitted by local regulators to cover minimum solvency margins.
- AmerUs holding company debt amounting to £349 million at 31 December 2007 (2006: £362 million) has been included within other operations.
| Net worth | Value of in-force covered business |
2006 Total |
|||||
|---|---|---|---|---|---|---|---|
| Required capital1 £m |
Free surplus £m |
Present value of in-force £m |
Cost of required capital £m |
Embedded value £m |
|||
| United Kingdom | 1,334 | 641 | 5,103 | (442) | 6,636 | ||
| France | 1,143 | 250 | 1,142 | (244) | 2,291 | ||
| Ireland | 254 | 143 | 535 | (40) | 892 | ||
| Italy | 320 | 329 | 206 | (63) | 792 | ||
| Netherlands (including Belgium and Germany) | 1,067 | 1,701 | 1,461 | (362) | 3,867 | ||
| Poland | 105 | 107 | 540 | (33) | 719 | ||
| Spain | 273 | 37 | 606 | (59) | 857 | ||
| Other Europe | 18 | 25 | 75 | (12) | 106 | ||
| Europe | 3,180 | 2,592 | 4,565 | (813) | 9,524 | ||
| North America | 618 | 211 | 794 | (145) | 1,478 | ||
| Asia Pacific | 182 | 125 | 204 | (51) | 460 | ||
| Total | 5,314 | 3,569 | 10,666 | (1,451) | 18,098 | ||
- Required capital is shown net of implicit items permitted by local regulators to cover minimum solvency margins.
The shareholders' net worth is the market value of the shareholders' funds and the shareholders' interest in the surplus held in the non-profit component of the long-term business funds, determined on a statutory solvency basis and adjusted to add back any non-admissible assets. Required capital, net of implicit items, is included within the net worth.
The value of in-force covered business includes 'cost of required capital' – the effect of holding shareholders' capital to support the level of required capital and allowing for projected future releases.
