L&G 2002 Interim Results Pt 3

Legal & General Group PLC 25 July 2002 Part 3 Legal & General Group Plc P1 Consolidated Profit and Loss Account - Modified Statutory Solvency Basis Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ Notes Full year 30.6.02 30.6.01 2001 Restated Restated £m £m £m Profit on continuing operations Life and pensions 1 230 208 414 Institutional fund management 23 22 41 General insurance 22 16 37 Other operational income (13) 1 1 ---------- ---------- ---------- 262 247 493 Profit on discontinuing operations Other operational income - Banking 3 2 4 ---------- ---------- ---------- Operating profit 265 249 497 Variation from longer term investment return (30) (32) (63) Change in equalisation provision (3) (3) (6) Shareholder retained capital (SRC) contribution 2 (424) (165) (550) Profit on sale of Fairmount Group - 8 8 ---------- ---------- ---------- (Loss)/profit on ordinary activities before tax (192) 57 (114) Tax credit/(charge) on (loss)/profit on ordinary activities 10 (49) (30) ---------- ---------- ---------- (Loss)/profit for the financial period (182) 8 (144) Dividends (86) (83) (261) ---------- ---------- ---------- Retained loss (268) (75) (405) ======================================================================================================================== Earnings per share p p p Based on operating profit after tax 3.52 3.32 6.87 Based on (loss)/profit for the financial period (3.53) 0.16 (2.80) Diluted earnings per share Based on operating profit after tax 3.45 3.31 6.55 Based on (loss)/profit for the financial period (3.53) 0.16 (2.80) Dividend per share 1.67 1.63 5.09 ======================================================================================================================== These financial statements were approved by the Board on 24 July 2002 and have been prepared for long term business using the Modified Statutory Solvency (MSS) basis. The Achieved Profits (AP) results are included in Part 2. The results for the year ended 2001 and the six months to 30 June 2001 have been restated following the adoption of Financial Reporting Standard 19, (FRS19) Deferred tax (see note 4). Other than in respect of the FRS 19 restatement, the results for the six months to 30 June 2002 and 30 June 2001 have been prepared on a basis which is consistent with the financial statements for the year ended 31 December 2001, and constitute non statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results are unaudited, but have been subject to a review by the auditors. The results for year ended 2001 have been taken from the financial statements for the year ended 2001 and restated for the adoption of FRS 19 as referred to above. The 2001 financial statements have been filed with the Registrar of Companies and include an auditors' report which is unqualified and does not contain a statement under either Sections 237(2) or 237(3) of the Companies Act 1985. ======================================================================================================================== Legal & General Group Plc P2 Consolidated Balance Sheet - Modified Statutory Solvency Basis Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ At At At Notes 30.6.02 30.6.01 31.12.01 Restated Restated Assets £m £m £m Investments 34,234 34,011 34,464 Assets held to cover linked liabilities 72,162 70,692 70,982 Other assets 3,458 2,996 2,834 ---------- ---------- ---------- 109,854 107,699 108,280 Liabilities ========== ========== ========== Shareholders' funds 3 2,612 3,209 2,877 Fund for future appropriations 1,078 2,497 1,845 Technical provisions 102,035 98,472 99,720 Borrowings and other creditors 4,129 3,521 3,838 ---------- ---------- ---------- 109,854 107,699 108,280 ======================================================================================================================== Statement of Total Recognised Gains and Losses At At At 30.6.02 30.6.01 31.12.01 Restated Restated £m £m £m (Loss)/profit for the financial period (182) 8 (144) Exchange gains 1 6 2 ---------- ---------- ---------- Total recognised gains and losses (181) 14 (142) ======================================================================================================================== Legal & General Group Plc P3 Notes to Financial Statements - Modified Statutory Solvency Basis Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ 1. Life and pensions operating profit Full year 30.6.02 30.6.01 2001 £m £m £m With-profits business 56 69 129 Non-profit business 144 107 224 ---------- ---------- ---------- UK 200 176 353 USA 26 25 50 Netherlands 6 6 12 France (2) 1 (1) ---------- ---------- ---------- 230 208 414 ========== ========== ========== UK life and pensions operating profit is the accrued distributable transfer, grossed up at the corporate tax rate, and for non-profit business is augmented by the distribution in respect of the intra-group subordinated debt capital held within the SRC. Profits for international life and pensions business are reported on bases consistent with MSS or US GAAP. ======================================================================================================================== 2. Change in SRC Full year 30.6.02 30.6.01 2001 Restated Restated £m £m £m Investment income 30 26 51 Interest expense and charges (1) 0 (1) Realised investment gains 9 32 6 Unrealised investment depreciation (167) (125) (203) ---------- ---------- ---------- Investment return on SRC (129) (67) (147) Net capital (invested in)/released from non-profit business (151) 9 (179) Distribution of operating profit from non-profit business (144) (107) (224) ---------- ---------- ---------- SRC contribution before tax (424) (165) (550) ========== ========== ========== SRC at 1 January 2,631 2,293 2,293 ''''''''' ''''''''' ''''''''' SRC contribution before tax (424) (165) (550) Tax 87 26 101 ''''''''' ''''''''' ''''''''' SRC contribution after tax (337) (139) (449) Change in the net asset values of SRC subsidiaries (536) 12 432 Dividends received from SRC subsidiaries 542 - - Movement in intra-group subordinated debt 100 50 355 ---------- ---------- ---------- SRC at end of period 2,400 2,216 2,631 ========== ========== ========== On 24 December 2001 the investment management subsidiaries held within the SRC were transferred to new shareholder owned holding companies. SRC includes intra-group subordinated debt capital of £602m (1H01: £197m; FY01: £502m). ======================================================================================================================== Legal & General Group Plc P4 Notes to Financial Statements - Modified Statutory Solvency Basis Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ 3. Shareholders' funds Full year 30.6.02 30.6.01 2001 Restated Restated £m £m £m At 1 January 2,877 3,255 3,255 Total recognised gains and losses (181) 14 (142) Dividends (86) (83) (261) Increase in share capital/premium 2 3 5 Goodwill written back on sale of Fairmount Group plc - 20 20 ---------- ---------- ---------- At end of period 2,612 3,209 2,877 ========== ========== ========== Comprising: Share capital 129 129 129 Share premium 149 145 147 Profit and loss account 2,334 2,935 2,601 ---------- ---------- ---------- 2,612 3,209 2,877 ========== ========== ========== The number of fully paid ordinary shares of 2.5p in issue at the period end was 5,159m (1H01: 5,153m; FY01: 5,156m). ======================================================================================================================== 4. Tax FRS19, Deferred tax, has been adopted and the 2001 comparatives restated accordingly. The principal impact is the recognition of additional deferred tax in respect of unrealised appreciation of investments and future tax relief for acquisition expenses. Profits after tax for 1H01 and FY01 increased by £4m and £47m respectively. Shareholders' funds increased by £72m at 30.6.01 and £115m at 31.12.01, and the Fund for future appropriations reduced by £443m and £405m, respectively. Deferred tax provisions have not been discounted. Although the SRC has been recognised as profit in these financial statements, there has been no corresponding recognition in the FSA regulatory returns, on which the taxation of life assurance business is currently based. As the payment of incremental tax on this profit depends upon a future event, the occurence of which is under the company's control, no event giving rise to the need to provide deferred tax has occurred. Accordingly no additional deferred tax has been provided. The maximum amount of such deferred tax not provided at 30.6.02 was £690m (30.6.01, £650m; 31.12.01, £768m). ======================================================================================================================== Legal & General Group Plc P5 Notes to Financial Statements - Modified Statutory Solvency Basis Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ 5.Segmental analysis of shareholders' funds At At At 30.6.02 30.6.01 31.12.01 Restated Restated £m £m £m Life and Pensions - UK (SRC)* 2,329 1,988 2,563 - USA 461 461 462 - Netherlands 23 15 17 - France 39 41 40 ---------- ---------- ---------- 2,852 2,505 3,082 Institutional fund management 165 134 148 General insurance 95 88 91 Banking 96 93 93 Corporate funds** (596) 389 (537) ---------- ---------- ---------- Shareholders' funds on the MSS basis 2,612 3,209 2,877 Less: Purchased interests in long term business included in above (27) (43) (30) AP long term in-force business asset 2,190 2,145 2,147 ---------- ---------- ---------- Shareholders' funds on the AP basis 4,775 5,311 4,994 ========== ========== ========== * Including £602m (1H01: £197m; FY01: £502m) of intra-group subordinated debt capital attributed to the SRC. ** Corporate funds include the convertible debt of £515m (1H01: £Nil; FY01: £515m) and the senior debt which has been onlent to the UK Long Term Fund (LTF) of £602m (1H01: £197m; FY01: £502m). ======================================================================================================================== 6. UK Long Term Fund At At At 30.6.02 30.6.01 31.12.01 Restated Restated £bn £bn £bn With-profits business 24.3 25.8 25.2 Non-profit business 11.1 9.5 10.5 ''''''''' ''''''''' ''''''''' Sub-fund 0.2 0.3 0.2 SRC 2.4 2.2 2.6 ''''''''' ''''''''' ''''''''' 2.6 2.5 2.8 ---------- ---------- ---------- Value of fund 38.0 37.8 38.5 ========== ========== ========== Assets of the fund are valued at market value. ======================================================================================================================== Legal & General Group Plc P6 Consolidated Cash Flow Statement (excluding long term business) Six months ended 30 June 2002 ------------------------------------------------------------------------------------------------------------------------ Full year 30.6.02 30.6.01 2001 £m £m £m Net cash inflow/(outflow) from operating activities 210 177 (79) Interest paid (21) (12) (24) Tax received/(paid) 5 (4) (20) Capital expenditure - net receipts 0 2 0 Capital injection into Legal & General Bank Ltd (6) - - Disposal of Fairmount Group - - 34 Acquisition of investment management subsidiaries from the LTF - - (570) Dividends paid (178) (166) (250) Financing (38) 177 837 ---------- ---------- ---------- (28) 174 (72) ========== ========== ========== Cash flows (not including long term business) were invested/(divested) as follows: Decrease in cash holdings (11) (3) (6) Net (sale)/purchase of investments (17) 177 (66) ---------- ---------- ---------- Net (divestment)/investment (28) 174 (72) ========== ========== ========== Reconciliation of profit before tax to operating cash flow (Loss)/profit on ordinary activities before tax (192) 57 (114) Profit/(loss) relating to long term business 187 (59) 108 Cash received from/(paid to) long term business 143 168 (137) Other items 72 11 64 ---------- ---------- ---------- Net cash inflow/(outflow) from operating activities 210 177 (79) ======================================================================================================================== This information is provided by RNS The company news service from the London Stock Exchange

Companies

Legal & General Group (LGEN)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today