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Cost savings
Cost efficiency remains one of our key objectives. The actions we took in 2003 are delivering significant annualised cost savings. Additional cost efficiency initiatives are being introduced, including the recently announced restructuring in part of our Norwich Union Life business.
As indicated at the time of our full year 2003 announcement, we anticipated achieving £250 million of gross annualised cost savings based on the actions announced up to the end of 2003. This would deliver a net benefit to the profit and loss account of £85 million in 2004, after the impact of one-off costs of £140 million.
As at 30 June 2004, the net pre-tax benefit to the profit and loss account (relative to the first half of 2002) was £30 million, after bearing one-off costs of £75 million. We are on-track to achieve gross cost savings in-line with our estimate of £250 million per annum. |
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