Unaudited results - 6 months ended 30 June 2001

Published: 01 Aug 2001

Unaudited results - 6 months ended 30 June 2001

Richard Harvey, Group Chief Executive, commented:

"These are a strong set of results with operating profit up 42% to £977 million. The results included a 12% increase in life achieved operating profit and a significant improvement in the performance of the Group's general insurance businesses.

"We continue to capitalise on the substantial long-term savings opportunities in Europe. We are using strong market positions to grow our business organically and are extending our distribution capabilities, in particular by entering into new bancassurance agreements.

"We have taken our first significant step into long-term savings in South East Asia through our bancassurance partnership with the Development Bank of Singapore. We are confident of using our expertise in bancassurance to deliver value from this agreement.

"As the sixth-largest insurance group in the world, and the largest in the UK, we have the size, expertise, financial strength and brands to succeed."

Strong set of results

  • Operating profit before tax from ongoing business* up 42% to £977 million (2000: £679 million).
    On a modified statutory basis, operating profit before tax was £728 million (2000: £531 million)
  • Worldwide life achieved operating profit up 12% to £857 million
  • Record half-year worldwide long-term savings new business sales at £7.1 billion
  • New business contribution up to £272 million (2000: £236 million)
  • General insurance operating profit up 124% to £427 million, benefiting from the actions to improve performance and lower weather related claims
  • Interim dividend of 14.25 pence net per share (2000: 14.25 pence net per share)

Executing strategy to create value

  • Leveraging multi-distribution capability worldwide
  • Bancassurance agreements contributing to total sales in continental Europe of £2.6 billion, 36% of our total long-term savings sales
  • Assets under management down to £204 billion, reflecting lower equity markets and disposals
  • Group combined operating ratio improved to 103%, on track for our target of 102% by the end of 2001
  • Exited value destroying businesses, including the sale of the US general insurance business
  • Integration on track for completion by the end of 2001, and we are confident that we will exceed our merger savings target of £275 million a year

* Including life achieved operating profit and excluding results from the discontinued US general insurance and London Market operations.
All growth rates quoted are at constant rates of exchange.

Enquiries:
Richard Harvey, Group Chief Executive
Telephone +44 (0)20 7662 2286

Mike Biggs, Group Finance Director
Telephone +44 (0)20 7662 2031

Analysts:
Steve Riley, Investor Relations Director
Telephone +44 (0)20 7662 8115

Media:
Hayley Stimpson, Director of External Affairs
Telephone +44 (0)20 7662 7544

Alex Child-Villiers, Financial Dynamics
Telephone +44 (0)20 7269 7107 

6 months results 2001 (detail) (PDF 211KB)

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