1st Quarter Life New Business
CGNU PLC
25 April 2002
CGNU plc
Worldwide long-term savings new business
Three months to 31 March 2002
25 April 2002
- Worldwide long-term new business sales up 10% to £629 million on an
APE* basis
- Worldwide life and pension sales of £598 million, up 13% on an APE*
basis
- Worldwide regular premium life and pension sales up 32% to £296
million
- UK life and pension sales up 15% on an APE* basis to £339 million
- Continental Europe life and pensions sales, up 6% at £220 million on
an APE* basis
- Strong growth in total worldwide bancassurance sales, up 90% at £540
million
- Worldwide new business contribution at £137 million, with new business
margin of 22.9% reflecting changes in product mix
* Annual premium equivalent (APE) is the industry standard measure of
new regular premiums and 10% of single premiums
All growth rates are quoted at constant rates of exchange
Richard Harvey, Group Chief Executive, commented:
'The Group achieved a 13% increase in worldwide life and pensions business,
following the strong growth delivered in 2001. We have strengthened our
leadership position in the UK with a 15% increase in life and pensions sales.
Margins in the UK reflect expected changes in the product mix, while in
Continental Europe the margin remains strong.
'Our bancassurance expertise is delivering strong sales in key markets around
the world, with total sales up 90% to £540 million. Sales through our joint
venture with The Royal Bank of Scotland Group increased by 157% to £216
million. These results demonstrate continued momentum as we build on the
strong foundations laid in 2001. In Continental Europe we continue to
demonstrate good growth in important long-term savings markets and are
capitalising on our developing bancassurance partnerships in Spain and Italy.'
Enquiries:
Analysts/Investors:
Philip Scott,
Group Executive Director UK Life +44(0)20 7662 2264
James Matthews,
Head of Investor Relations +44(0)20 7662 2137
Media:
Hayley Stimpson,
Director of External Affairs +44(0)20 7662 7544
Stuart Blackmore,
Financial Dynamics +44(0)20 7269 7241
There will be a conference call today for wire services at 7:45am on +44(0)20
8240 8245. This conference call will be hosted by Philip Scott, Group
Executive Director UK Life and Tony Wyand, Group Executive Director
Continental Europe.
There will be a conference call today for analysts and investors at 9:30am (UK
time) on +44(0)20 8240 8240. This conference call will be hosted by Philip
Scott, Group Executive Director UK Life and Tony Wyand, Group Executive
Director Continental Europe.
Replay will be available for 2 weeks until 9 May. The dial in number for
replay is +44(0)20 8288 4459 and the pass code is 616722.
Total Annual premium
new business equivalent
sales sales
3 months 3 months
to Local to Local
31 March currency 31 March currency
2002 growth* 2002 growth*
Life and pensions
United Kingdom 1,818 (2%) 339 15%
France 485 (11%) 58 (10%)
Ireland 116 (2%) 31 29%
Italy 234 1% 29 2%
Netherlands (including
Belgium and Luxembourg) 178 8% 35 11%
Poland 18 (1%) 13 (18%)
Spain 182 42% 32 40%
Other Europe 67 16% 22 8%
International 221 62% 39 46%
------ ------ ------ ------
Total life and pensions 3,319 2% 598 13%
Investment sales
United Kingdom 145 (53%) 15 (56%)
Netherlands 31 114% 3 115%
Other Europe 24 (45%) 2 (44%)
International 107 152% 11 152%
------ ------ ------ ------
Total investment sales 307 (25%) 31 (28%)
------ ------ ------ ------
Total long-term savings 3,626 (1%) 629 10%
====== ====== ====== ======
Navigator sales 219 9% - -
(not included above)
New business
contribution**
3 months
to Local
31 March currency
2002 growth*
Life and pensions
United Kingdom 79 (2%)
France 17 (8%)
Ireland 9 55%
Italy 7 (20%)
Netherlands (including
Belgium and Luxembourg) 6 24%
Poland 3 (1%)
Spain 14 20%
Other Europe (2) (203%)
International 4 492%
------ ------
Total life and pensions 137 1%
====== ======
* Growth rates are calculated based on constant rates of exchange
** Stated before the effect of solvency margin
United Kingdom:
Norwich Union, the leading life and pensions provider with a market share of
over 11%, achieved good sales in the first three months of 2002. Total new
business sales on an Annual Premium Equivalent (APE) basis were up 9% to £354
million (2001: £326 million), with life and pension sales up 15% to £339
million (2001: £294 million). Total new business sales were £2.0 billion
(2001: £2.2 billion), reflecting lower single premium bond and investment
sales.
Total pension sales grew strongly, increasing 38% to £825 million (2001: £598
million), including stakeholder sales of £201 million. Norwich Union is the
leading provider of stakeholder pensions having achieved its overall target
market share of 20% and secured approximately one-third of the important IFA
market.
Sales through our joint venture with The Royal Bank of Scotland Group (RBSG)
continued to increase in the first quarter of 2002. Total sales were up by
157% to £216 million (2001: £84 million). In reporting the Group's figures we
have incorporated our 50% share of total sales, at £108 million. Included in
our 50% share of sales are £56 million of single premium bonds, a new product
for the joint venture, launched during the first quarter. We are confident
this sales growth momentum will continue as new products such as term
assurance and further pension contracts are introduced in 2002. In addition,
we have agreed in principle to extend the RBSG joint venture to include unit
trusts and Isas from early 2003.
In a competitive market, single premium bond sales fell to £709 million (2001:
£981 million). Our bond range was re-launched on 6 April with enhanced terms
and sales to date are encouraging. Sales of retail investments were £145
million (2001: £310 million), as investors continued to adopt a cautious
approach to retail investment products.
Initial sales of our re-launched income and retirement products range have
been encouraging, with annuity single premiums up 10% to £204 million (2001:
£185 million). Mortgage product and other life sales were £80 million (2001:
£92 million).
Norwich Union is the lead provider to the top-six IFA companies with around
75% of sales coming from this channel. We have recently made a number of
strategic investments in IFAs to support this important sector. We continue to
build and expand our bancassurance and affinity partnership arrangements
whilst at the same time investing in a salaried direct sales force and
telesales operation. We believe that our positions in the IFA and non-IFA
markets make us well placed to prosper in a de-polarised world. Our target is
to increase our share of the total UK life and pensions market to 15% by the
end of 2005.
New business contribution was £79 million (2001: £81 million) and represents a
new business margin (the ratio of new business contribution to sales measured
on an annual premium equivalent basis) of 23.3% (full year 2001: 25.8%). This
margin reflects a change in the business mix with a higher proportion of lower
margin pension sales, partly offset by good first quarter margins achieved on
annuity sales.
France:
In our French life business, the second largest in the CGNU Group, sales of
single premium fixed interest AFER products grew by 16% to £279 million (2001:
£249 million). This increase reflects customers' continued preference for
fixed interest investments, assisted by the strength of AFER's brand and its
position as the largest savings organisation in France.
Against a strong first quarter in 2001, sales of unit-linked and other savings
products were lower at £163 million (2001: £270 million) reflecting continued
investor caution about investing in equity-backed products. A launch of unit-
linked products, together with its associated marketing activity, has been
planned this year to occur after the presidential elections in early May, when
we anticipate that demand for these products will be stronger. Protection
business sales were £43 million (2001: £45 million). New business contribution
amounted to £17 million (2001: £19 million) with margins at 29.6% (full year
2001: 33.9%).
Ireland:
Hibernian Life & Pensions, our top five provider of life and pensions
products, generated a 29% increase in total sales to £31 million on an APE
basis (2001: £25 million). Total new business sales were £116m (2001: £123
million).
New single premium pension sales increased strongly by 33% to £32 million
(2001: £25 million), while sales of regular premium pensions were maintained
at £12 million (2001: £12 million) in advance of the expected introduction of
the Government's new pension initiative, the Personal Retirement Savings
Account, on 1 January 2003.
Life single premium sales were lower at £62 million (2001: £84 million) as
demand for unit-linked bonds reflected lower investor confidence. Sales of
regular premium life products increased significantly to £10 million (2001: £2
million) benefiting from sales of the Government's Special Savings Incentive
Account before the end of April 2002 closing date. Total new business
contribution increased to £9 million (2001: £6 million) with margins of 28.7%
in line with the full year 2001 margin.
Italy:
Our major bancassurance partnerships in Italy have continued to grow strongly,
consolidating our position as a leading provider of life products. Sales
arising through our agreement with UniCredito Italiano's subsidiary - Cassa di
Risparmio di Torino (CRT) - increased by 43% to £167 million (2001: £121
million). At Banca Popolare di Lodi (BPL), sales grew significantly to £42
million (2001: £5 million) as more branches of the BPL network came on stream.
Sales through our other bancassurance partner, Banca delle Marche also
increased to £7 million (2001: £6 million).
Total new business sales were £234 million (2001: £238 million). Included in
the first quarter of 2001 was £96 million of non-recurring business from a
previous agreement. Excluding this effect, the underlying increase in new
business sales was 69%. Total new business contribution amounted to £7 million
(2001: £9 million) with margins of 24.3% in line with the full year 2001
margin.
Netherlands (including Belgium and Luxembourg):
Our top five life and pensions business in the Netherlands, Delta Lloyd,
reported an increase in total sales of 17% to £209 million (2001: £184
million), including investment sales of £31 million (2001: £15 million). New
business contribution increased to £6 million (2001: £5 million) with a new
business margin of 17.2% (full year 2001: 22.3%).
Total pension sales increased by 28% to £119 million (2001: £96 million)
driven by an increase of 76% in individual pension business. This is largely
as a result of the introduction in 2002 of attractively designed products, as
management successfully sought to increase its market share. Sales of group
pension business amounted to £57 million (2001: £60 million). The overall life
market has seen demand fall following changes in the tax legislation
introduced in early 2001. Delta Lloyd saw its market share increase with life
sales of £59 million (2001: £73 million).
Investment sales were up 114% to £31 million (2001: £15 million), despite
continued investor caution. To meet a preference for guaranteed investment
bonds, plans are underway to launch a new range in the second half of 2002.
The integration of Bank Nagelmackers, which was acquired at the end of 2001,
is on track and we are currently restructuring the back office systems. The
benefits of the distribution potential from this bank are expected to come
through in the second half of 2002.
Poland:
CU Polska continues to be the leading provider of individual life and private
pensions in Poland, with a 19% share of the life market measured by total
premium income and a 29% share of the private pensions market measured by
assets under management.
New life and savings business premiums of £11 million (2001: £11 million)
remain flat due to the continuing difficult economic conditions. Pensions
sales of £7 million (2001: £8 million) reflect low numbers of new entrants to
the employment market who are eligible to buy private pensions.
Spain:
In Spain total new business premiums increased by 42% to £182 million (2001:
£133 million) demonstrating the strength of our distribution in this important
European growth market. We are the fourth-largest provider in the life
insurance market and have the fourth-largest bancassurance network in Spain,
with over 3,000 branches giving access to approximately 8 million potential
customers.
Total new business sales through Bancaja increased to £121 million (2001: £118
million). Sales through our more recent agreements with Unicaja, Caixa Galicia
and Caja Espana contributed £47 million, including £26 million from sales of a
limited offer single premium product. We continue to develop the distribution
capability of these recent arrangements and new products will be launched
through these partnerships in the coming months, based on those successfully
sold through the Bancaja network.
New business contribution increased to £14 million (2001: £12 million)
producing a new business margin of 44.2%, which is in line with the full year
2001 result.
Other Europe:
Total life and pension sales from our other European businesses grew 16% to
£67 million (2001: £59 million). In Germany, total new business premiums
increased by 37% to £30 million (2001: £23 million) benefiting from a new
broker relationship. In Turkey, total new business premiums were £5 million
(2001: £6 million). In the emerging markets of Central and Eastern Europe we
continue to develop our businesses in the Czech Republic, Hungary and Romania.
As a result of lower investor confidence in equities, single premium sales
were £23 million (2001: £24 million) from our Dublin-based offshore life and
savings business. Sales of Luxembourg UCITS were £24 million (2001: £45
million).
International:
Our International life and pension businesses continued to grow significantly
with total new business sales 62% higher at £221 million (2001: £135 million).
Our United States life business contributed total new business premiums of
£110 million (2001: £70 million), up 54%, driven by the continued demand for
fixed annuity products.
In Australia, total life and pension sales were 8% higher at £62 million
(2001: £57 million) and unit trust sales were £107 million (2001: £42
million). Whilst not included in the new business figures, sales of Navigator,
a market-leading master trust, increased 9% to £219 million (2001: £200
million).
In Singapore, our recent bancassurance partnership with DBS Group Holdings
Limited (DBS) generated total sales of £48 million (2001: nil). We are on
track to launch further new products in the second quarter of 2002. In
February, we announced a second bancassurance partnership with DBS to enter
the long-term savings market in Hong Kong. The bancassurance distribution is
for ten years and will give us exclusive access to DBS's one million customers
in Hong Kong. We expect sales from this partnership in the second half of
2002.
Notes to Editors
1. CGNU plc is the UK's largest insurance group and one of the top-five
insurers in Europe with substantial positions in other markets around
the world. CGNU is the world's seventh-largest insurer based on gross
worldwide premiums.
CGNU's principal business activities are long-term savings, fund
management and general insurance, with worldwide premium income and
retail investment sales from ongoing business of over £28 billion for
the year ended 31 December 2001, and assets under management of more
than £200 billion as at 31 December 2001.
2. New business figures have been translated at average exchange rates
applying for the period. The average euro rates employed in this
announcement are 1 euro = £0.61 (three months to 31 March 2001: 1 euro
= £0.63; year to 31 December 2001: 1 euro = £0.62).
3. All growth rates are quoted in local currency.
4. The 2001 comparatives for new business margin and contribution have
not been restated using start of 2002 economic assumptions as the
impact of such restatement is immaterial.
5. Definitions:
Annual premium equivalent (APE) is a UK industry standard for
calculating life, pensions and investments new business levels. It is
the total of new regular premiums and 10% of single premiums.
New business contribution is the present value of the projected stream
of after-tax distributable earnings from new life and pensions sales.
New business contribution before tax is calculated by grossing up the
new business contribution after-tax at the full corporation tax rate
for UK business and at appropriate rates of tax for other countries.
New business margin is a UK industry standard calculation based on new
business contribution (before the effect of solvency margin) divided
by sales measured on an APE basis.
6. Cautionary statements
The cautionary statements identify important factors that could cause
our actual results to differ materially from those projected in
forward looking statements made in this press release. Forward looking
statements are based on management's current views and assumptions and
involve known and unknown risks and uncertainties that could cause
actual results, performance or events to differ materially from those
expressed.
CGNU plc is a company registered in England No. 2468686.
Registered office St Helen's 1 Undershaft London EC3P 3DQ
Statistical supplement
CONTENTS
Analyses
1 Detailed worldwide long-term savings new business analysis
2 Analysis of UK long-term savings by distribution channel - sales
and APE
3 Detailed analysis of new business contribution
4 Principal economic assumptions
SUPPLEMENT 1
Detailed worldwide long-term savings new business analysis
Single
3 months 3 months
to to Local
31 March 31 March currency
2002 2001 growth
£m £m %
United Kingdom
Individual pensions 440 371 19%
Group pensions 253 138 83%
Mortgage - - -
Annuities 204 185 10%
Bonds 709 981 (28%)
Other life 37 61 (39%)
------ ------ ------
Total life and pensions 1,643 1,736 (5%)
Peps/Isas/unit trusts/Oeics 145 308 (53%)
------ ------ ------
1,788 2,044 (13%)
France
AFER (excluding unit-linked) 279 249 16%
Unit-linked & other savings 157 266 (39%)
Protection business 39 39 3%
------ ------ ------
475 554 (12%)
Ireland
Life & savings 62 84 (23%)
Pensions 32 25 33%
------ ------ ------
94 109 (11%)
Italy
Life & savings 228 232 1%
------ ------ ------
228 232 1%
Netherlands (including
Belgium and Luxembourg)
Individual pensions 61 36 75%
Group pensions 48 56 (12%)
Life 50 60 (15%)
------ ------ ------
Total life and pensions 159 152 8%
Unit trusts 31 15 114%
------ ------ ------
190 167 17%
Poland
Life & savings 3 2 103%
Pensions 2 - -
------ ------ ------
5 2 218%
Spain
Life & savings 148 109 41%
Pensions 19 12 62%
------ ------ ------
167 121 43%
Other Europe
Life & pensions 50 42 21%
UCITS and other 24 45 (45%)
------ ------ ------
74 87 (13%)
International
Life & pensions 202 121 66%
Unit trusts 107 42 152%
------ ------ ------
309 163 88%
------ ------ ------
Total long-term savings 3,330 3,479 (3%)
====== ====== ======
Analysed:
Life & pensions 3,023 3,069 (1%)
Investment sales 307 410 (25%)
------ ------ ------
Total long-term savings 3,330 3,479 (3%)
====== ====== ======
Navigator sales
(not included above) 219 200 9%
Regular Total
3 months 3 months
to to Local Local
31 March 31 March currency currency
2002 2001 growth growth
£m £m % %
United Kingdom
Individual pensions 31 26 19% 19%
Group pensions 101 63 60% 76%
Mortgage 15 11 36% 36%
Annuities - - - 10%
Bonds - - - (28%)
Other life 28 20 40% (20%)
------ ------ ------ ------
Total life and pensions 175 120 46% (2%)
Peps/Isas/unit trusts/Oeics - 2 - (53%)
------ ------ ------ ------
175 122 43% (9%)
France
AFER (excluding unit-linked) - - - 16%
Unit-linked & other savings 6 4 42% (38%)
Protection business 4 6 (30%) (2%)
------ ------ ------ ------
10 10 1% (11%)
Ireland
Life & savings 10 2 343% (13%)
Pensions 12 12 3% 23%
------ ------ ------ ------
22 14 60% (2%)
Italy
Life & savings 6 6 5% 1%
------ ------ ------ ------
6 6 5% 1%
Netherlands (including
Belgium and Luxembourg)
Individual pensions 1 - - 76%
Group pensions 9 4 144% (1%)
Life 9 13 (30%) (18%)
------ ------ ------ ------
Total life and pensions 19 17 14% 8%
Unit trusts - - - 114%
------ ------ ------ ------
19 17 14% 17%
Poland
Life & savings 8 9 (13%) 4%
Pensions 5 8 (29%) (7%)
------ ------ ------ ------
13 17 (21%) (1%)
Spain
Life & savings 9 9 7% 38%
Pensions 6 3 127% 75%
------ ------ ------ ------
15 12 36% 42%
Other Europe
Life & pensions 17 17 4% 16%
UCITS and other - - - (45%)
------ ------ ------ ------
17 17 4% (10%)
International
Life & pensions 19 14 30% 62%
Unit trusts - - - 152%
------ ------ ------ ------
19 14 30% 83%
------ ------ ------ ------
Total long-term savings 296 229 31% (1%)
====== ====== ====== ======
Analysed:
Life & pensions 296 227 32% 2%
Investment sales - 2 (100%) (25%)
------ ------ ------ ------
Total long-term savings 296 229 31% (1%)
====== ====== ====== ======
Navigator sales
(not included above) - - - 9%
SUPPLEMENT 2
Analysis of UK long-term savings by distribution channel
Sales
Single
3 months 3 months
to to Local
31 March 31 March currency
2002 2001 growth
£m £m %
IFA
- life and pensions products 1,211 1,284 (6%)
- investment products 89 198 (55%)
------ ------ ------
1,300 1,482 (12%)
Bancassurance partnership with RBSG
- life and pensions products 104 38 174%
- investment products - - -
------ ------ ------
104 38 174%
Other Partnerships/Direct
- life and pensions products 328 414 (21%)
- investment products 56 110 (49%)
------ ------ ------
384 524 (27%)
------ ------ ------
Total UK long-term savings 1,788 2,044 (13%)
====== ====== ======
Regular
3 months 3 months
to to Local
31 March 31 March currency
2002 2001 growth
£m £m %
IFA
- life and pensions products 140 95 47%
- investment products - 1 -
------ ------ ------
140 96 46%
Bancassurance partnership with RBSG
- life and pensions products 4 4 -
- investment products - - -
------ ------ ------
4 4 -
Other Partnerships/Direct
- life and pensions products 31 21 48%
- investment products - 1 -
------ ------ ------
31 22 41%
------ ------ ------
Total UK long-term savings 175 122 43%
====== ====== ======
Annual premium equivalent
Life and Investment
pensions sales sales
Local Local
currency currency
growth growth
£m % £m %
IFA 261 17% 9 (57%)
Bancassurance partnership
with RBSG 14 85% - -
Other Partnerships/Direct 64 2% 6 (53%)
------ ------ ------ ------
Total UK long-term savings 339 15% 15 (56%)
====== ====== ====== ======
Total sales
Local
currency
growth
£m %
IFA 270 11%
Bancassurance partnership with RBSG 14 85%
Other Partnerships/Direct 70 (7%)
------ ------
Total UK long-term savings 354 9%
====== ======
SUPPLEMENT 3
Detailed analysis of new business contribution
(a)Before the effect of solvency margin
Annual premium New business
equivalent * contribution ** ***
3 months 3 months 3 months 3 months
2002 2001 2002 2001
£m £m £m £m
Life and pensions business
United Kingdom 339 294 79 81
Europe (excluding UK)
France 58 66 17 19
Ireland 31 25 9 6
Italy 29 29 7 9
Netherlands (including
Belgium and Luxembourg) 35 32 6 5
Poland
- Life 8 9 2 2
- Pensions 5 8 1 1
Spain 32 24 14 12
Other 22 21 (2) 2
International 39 26 4 (1)
------ ------ ------ ------
598 534 137 136
====== ====== ====== ======
New business margin ****
3 months 3 months Full year
2002 2001 2001
% % %
Life and pensions business
United Kingdom 23.3% 27.6% 25.8%
Europe (excluding UK)
France 29.6% 29.1% 33.9%
Ireland 28.7% 24.1% 28.5%
Italy 24.3% 30.8% 22.2%
Netherlands (including
Belgium and Luxembourg) 17.2% 15.5% 22.3%
Poland
- Life 24.1% 21.7% 25.2%
- Pensions 19.2% 12.5% 8.3%
Spain 44.2% 49.8% 46.5%
Other (9.1%) 9.4% -
International 10.2% (3.8%) 12.1%
------ ------ ------
22.9% 25.5% 25.5%
====== ====== ======
* Annual premium equivalent represents regular premiums plus 10% of
single premiums.
** Before effect of solvency margin.
*** New business contribution before the effect of solvency margin
includes minority interests in 2002 of £12 million (three months
to 31 March 2001: £11 million). This comprises minority interests
in France of £1 million (three months to 31 March 2001: £1
million), Italy £3 million (three months to 31 March 2001: £4
million), and Spain £8 million (three months to 31 March 2001: £6
million).
**** New business margin represents the ratio of new business
contribution to annual premium equivalent, expressed as a
percentage.
(b)Including the effect of solvency margin*
3 months 3 months
2002 2001
Life and pensions business £m £m
United Kingdom 76 78
Europe (excluding UK)
France 7 11
Ireland 8 6
Italy 5 7
Netherlands (including
Belgium and Luxembourg) 1 -
Poland
- Life 2 1
- Pensions 1 1
Spain 12 10
Other (3) 2
International 2 (3)
------ ------
111 113
====== ======
* The effect of solvency margin represents the impact of holding
the minimum European Union (EU) solvency margin (or equivalent
for non-EU operations) and discounting to present value the
projected future releases from the solvency margin to
shareholders.
SUPPLEMENT 4
Principal economic assumptions
New business contribution has been calculated using the economic assumptions
set at the end of the previous year, as shown in the tables below.
United Kingdom France
31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000
Risk discount rate 7.7% 7.4% 8.6% 8.5%
Pre-tax investment returns:
Base government fixed interest 5.0% 4.7% 5.1% 5.0%
Ordinary shares 7.5% 7.2% 7.1% 7.0%
Property 6.5% 6.2% 6.6% 6.5%
Future expense inflation 3.7% 3.7% 2.5% 2.5%
Tax rate 30.0% 30.0% 36.4% 37.8%
Ireland Italy
31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000
Risk discount rate 9.3% 9.1% 7.6% 7.5%
Pre-tax investment returns:
Base government fixed interest 5.3% 5.3% 5.3% 5.3%
Ordinary shares 8.3% 8.3% 8.3% 8.3%
Property 6.8% 6.8% 6.8% 6.8%
Future expense inflation 4.0% 5.0% 3.3% 3.3%
Tax rate 16.0% 20.0% 41.0% 43.0%
Netherlands Poland - Life
31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000
Risk discount rate 8.0% 8.0% 18.5% 20.0%
Pre-tax investment returns:
Base government fixed interest 5.1% 5.0% 12.5% 12.5%
Ordinary shares 8.1% 7.9% 12.5% 12.5%
Property 6.6% 6.5% n/a n/a
Future expense inflation 2.5% 2.5% 9.2% 9.2%
Tax rate 25.0% 25.0% 28.0% 28.0%
Poland - Pensions Spain
31 Dec 31 Dec 31 Dec 31 Dec
2001 2000 2001 2000
Risk discount rate 16.9% 17.3% 8.3% 8.4%
Pre-tax investment returns:
Base government fixed interest 12.5% 12.5% 5.3% 5.4%
Ordinary shares 12.5% 12.5% 8.3% 8.4%
Property n/a n/a 6.8% 6.9%
Future expense inflation 9.2% 9.2% 3.2% 4.0%
Tax rate 28.0% 28.0% 35.0% 35.0%
This information is provided by RNS
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