Interim results - 6 months ended 30 June 2005
Richard Harvey, group chief executive, commented:
“This is a very good set of results, delivered by managing our business for value. Our balanced international portfolio of life and general insurance businesses has enabled us to sustain real growth momentum.
“We’ve delivered strong and profitable life growth, reaping the benefit from our growing position in continental Europe and managing our UK business for profit. In Asia we continue to develop our footprint for the long-term with new distribution in India and access to new regional centres in China.
“In general insurance, we’ve delivered another excellent result, once again delivering strong and resilient returns. Our integration of RAC in the UK is moving quickly and we are on track to deliver our targeted cost savings for 2006.
“Our shareholders continue to see healthy dividend growth, backed by strong statutory profits. Our continuing aim is profitable growth in all our businesses.”
- Worldwide operating profit up 21% to £1,318 million
- Life operating profit up 5% to £857 million, with more than 60% coming from businesses outside the UK; Group margin up at 3.6% (2004: 3.5%)
- Strong long-term savings sales growth, up 13% to £12,078 million, with bancassurance a major driver for growth in continental Europe and Asia
- Sustained excellent general insurance performance, with general insurance and health profits up 18% to £694 million, and worldwide combined operating ratio ahead of target at 95% (2004: 97%)
- Strong performance from fund management with profits up 94% to £33 million# (2004: £17 million) and assets under management up to over £290 billion (31 December 2004: £280 billion)
- Interim dividend increased by 5%
Enquiries:
| Richard Harvey | Group chief executive | +44 (0)20 7662 2286 |
| Andrew Moss | Group finance director | +44 (0)20 7662 2679 |
| Analysts: | ||
| Charles Barrows | Investor relations director | +44 (0)20 7662 8115 |
| Media: | ||
| Hayley Stimpson | Director of external affairs | +44 (0)20 7662 7544 |
| Sue Winston | Head of group media relations | +44 (0)20 7662 8221 |
| Rob Bailhache | Financial Dynamics | +44 (0)20 7269 7200 |