Preliminary results year ended 31 December 2008
05 March 2009
7. Analysis of other operations and regional costs
| 2008 | Restated 2007 | |||||
|---|---|---|---|---|---|---|
| Regional Costs £m |
Other Operations £m |
Total £m |
Regional Costs £m |
Other Operations £m |
Total £m |
|
| United Kingdom | – | (12) | (12) | – | (8) | (8) |
| Europe | (28) | (123) | (151) | (11) | (38) | (49) |
| North America | (14) | 2 | (12) | (2) | (2) | (4) |
| Asia Pacific | (23) | – | (23) | (13) | – | (13) |
| Total | (65) | (133) | (198) | (26) | (48) | (74) |
United Kingdom
The £12 million loss for the period (2007: £8 million loss) mainly comprises a £23 million loss arising from the Lifetime wrap platform partly offset by profits from the Norwich Union Insurance non-insurance operations. Following a strategic review of the Lifetime platform, a decision has been made to enter into a strategic partnership with Scottish Friendly to run the Lifetime back office administration and migrate the wrap onto their existing platform.
Europe
Regional costs of £28 million (2007: £11 million) reflects the first full year of regional operations. Other operations losses of £123 million (2007: £38 million) include holding company costs in a number of our markets, principally France, Italy and the Netherlands. Additional costs of £30 million have been incurred this year in relation to the implementation of the global financial strategy and other projects. In addition, Delta Lloyd’s banking and retail mortgage divisions reported an operating loss of £22 million (2007: £8 million profit) as a result of the adverse economic climate, and in Italy we incurred a loss of £6 million in our distribution associate Banca Network Investimenti, acquired in December 2007. The 2007 result benefited from a one-off pension scheme adjustment in France of £17 million.
North America
The 2008 loss of £12 million (2007: £4 million loss) is driven by regional costs of £14 million offset by operating profit from the Canadian brokerage business. The increase in regional costs is due to the opening of the regional office late in 2007, and the one-off costs associated with staffing the office.
Asia Pacific
The reported loss of £23 million (2007: £13 million loss) is driven by the regional costs, including one-off costs associated with staffing the offices.
