International Financial Reporting Standards |
|
|
|
|
|
Page 53 |
|||
Notes to the Financial Statements |
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|
|
|
|
|
|
||
4.08 Gross written premiums |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full year |
|
|
|
|
|
|
|
30.06.08 |
30.06.07 |
31.12.07 |
|
|
|
|
|
|
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations |
|
|
|
|
|
|
|
|
|
UK life and pensions participating business |
|
|
|
249 |
193 |
382 |
|||
UK life and pensions non-participating business |
|
|
|
2,418 |
1,421 |
3,152 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UK life and pensions |
|
|
|
|
|
2,667 |
1,614 |
3,534 |
|
USA |
|
|
|
|
|
|
182 |
169 |
345 |
Netherlands |
|
|
|
|
|
158 |
143 |
259 |
|
France |
|
|
|
|
|
152 |
205 |
348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total life and pensions |
|
|
|
|
|
3,159 |
2,131 |
4,486 |
|
|
|
|
|
|
|
|
|
|
|
General insurance |
|
|
|
|
|
|
|
|
|
Household |
|
|
|
|
|
129 |
122 |
255 |
|
Other business |
|
|
|
|
|
13 |
36 |
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total General insurance |
|
|
|
|
|
142 |
158 |
307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross written premiums |
|
|
|
|
|
3,301 |
2,289 |
4,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.09 Acquisitions |
|
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|
|
|
|
|
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|
Total net |
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|
|
|
|
Date of |
Cash |
Transaction |
Total |
assets |
|
|
|
|
|
acquisition |
paid |
costs |
cost |
acquired |
Company name |
|
|
Notes |
|
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationwide Life Limited |
|
|
(i) |
31/01/08 |
250 |
2 |
252 |
252 |
|
Nationwide Unit Trust Managers Limited |
|
(ii) |
31/01/08 |
49 |
1 |
50 |
50 |
||
Suffolk Life Group Plc |
|
|
(iii) |
06/05/08 |
62 |
1 |
63 |
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group has acquired 100% of the shares of each company. No goodwill has arisen in respect of these acquisitions. |
|||||||||
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|
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|
(i) Nationwide Life Limited The values of the purchased interest in long term business on acquired insurance and investment contracts have been calculated using discounted cash flow methodology. These contracts were recognised on the balance sheet at £127m and £2m gross of tax respectively (with corresponding deferred liabilities tax of £19m and £1m). The intangible assets will be amortised in line with the expected emergence of profit from the business. With effect from 31 January 2008 it has contributed £8m to the consolidated profit before tax and before amortisation of the purchased interest in long term business. (ii) Nationwide Unit Trust Managers Limited The value of the purchased interest in long term business on investment contracts acquired has been calculated using discounted cash flow methodology. This is recognised on the balance sheet at £29m gross of tax, with corresponding deferred tax liability of £8m. The intangible asset will be amortised in line with the expected emergence of profit from the business. With effect from 31 January 2008 it has contributed £2m to the consolidated profit before tax and before amortisation of the purchased interest in long term business. (iii) Suffolk Life Group Plc The value of the purchased interest in long term business on investment contracts acquired has been calculated using discounted cash flow methodology. This is recognised on the balance sheet at £47m gross of tax, with corresponding deferred tax liability of £13m. The value of the acquired customer relationship intangible has been calculated using the discounted cash flow methodology and recognised on the balance sheet at £15m gross of tax, with a corresponding deferred tax liability of £3m. The intangible assets will be amortised in line with the expected emergence of profit from the business. With effect from 6 May 2008 it has contributed £1m to the consolidated profit before tax and before amortisation of the purchased intangibles. |
|||||||||
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|
|
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|
|
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|
|
|
|
|
International Financial Reporting Standards |
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|
Page 54 |
|||
Notes to the Financial Statements |
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|
|
|
|
|
|
||
4.09 Acquisitions (continued) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
(i) Nationwide Life Limited - Assets and liabilities at date of acquisition |
|
|
|||||||
|
|
|
|
|
|
|
Book value |
Adjustments |
Fair value |
|
|
|
|
|
|
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Purchased interest in long term business |
|
|
|
|
- |
129 |
129 |
||
Financial investments |
|
|
|
|
|
1,276 |
- |
1,276 |
|
Reinsurers' share of contract liabilities |
|
|
|
|
286 |
- |
286 |
||
Deferred acquisition costs |
|
|
|
|
|
15 |
(15) |
- |
|
Income tax recoverable |
|
|
|
|
|
15 |
(15) |
- |
|
Other assets |
|
|
|
|
|
4 |
- |
4 |
|
Cash and cash equivalents |
|
|
|
|
|
599 |
- |
599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
2,195 |
99 |
2,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Non-participating contract liabilities |
|
|
|
|
1,221 |
- |
1,221 |
||
Tax liabilities |
|
|
|
|
|
8 |
15 |
23 |
|
Other liabilities |
|
|
|
|
|
801 |
(3) |
798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
2,030 |
12 |
2,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
165 |
87 |
252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments include the recognition of acquired intangibles and application of consistent Group accounting policies. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) Nationwide Unit Trust Managers Limited - Assets and liabilities at date of acquisition |
|||||||||
|
|
|
|
|
|
|
Book value |
Adjustments |
Fair value |
|
|
|
|
|
|
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Purchased interest in long term business |
|
|
|
|
- |
29 |
29 |
||
Deferred acquisition costs |
|
|
|
|
|
29 |
(29) |
- |
|
Other assets |
|
|
|
|
|
70 |
- |
70 |
|
Cash and cash equivalents |
|
|
|
|
|
30 |
- |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
129 |
- |
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Provisions |
|
|
|
|
|
14 |
- |
14 |
|
Deferred income liabilities |
|
|
|
|
|
1 |
(1) |
- |
|
Tax liabilities |
|
|
|
|
|
5 |
5 |
10 |
|
Other liabilities |
|
|
|
|
|
55 |
- |
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
75 |
4 |
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
54 |
(4) |
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments include the recognition of acquired intangibles and application of consistent Group accounting policies. |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
International Financial Reporting Standards |
|
|
|
|
|
Page 55 |
|||
Notes to the Financial Statements |
|
|
|
|
|
|
|
||
4.09 Acquisitions (continued) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
(iii) Suffolk Life Group Plc - Assets and liabilities at date of acquisition |
|
|
|
||||||
|
|
|
|
|
|
|
Book value |
Adjustments |
Fair value |
|
|
|
|
|
|
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Purchased interest in long term business |
|
|
|
|
- |
62 |
62 |
||
Plant and equipment |
|
|
|
|
|
1 |
- |
1 |
|
Investment property |
|
|
|
|
|
503 |
- |
503 |
|
Financial investments |
|
|
|
|
|
1,763 |
(2) |
1,761 |
|
Income tax recoverable |
|
|
|
|
|
1 |
- |
1 |
|
Other assets |
|
|
|
|
|
60 |
- |
60 |
|
Cash and cash equivalents |
|
|
|
|
|
738 |
2 |
740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
3,066 |
62 |
3,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Non-participating contract liabilities |
|
|
|
|
2,893 |
- |
2,893 |
||
Senior borrowings |
|
|
|
|
|
153 |
- |
153 |
|
Tax liabilities |
|
|
|
|
|
- |
16 |
16 |
|
Other liabilities |
|
|
|
|
|
3 |
- |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
3,049 |
16 |
3,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
17 |
46 |
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments include the recognition of acquired intangibles and application of consistent Group accounting policies. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Financial Reporting Standards |
|
|
|
|
|
Page 56 |
|||
Notes to the Financial Statements |
|
|
|
|
|
|
|
||
4.10 Segmental analysis |
|
|
|
|
|
|
|
|
|
The Group is organised into three main business segments: - Long term business - Investment management - General insurance Other operations comprise estate agencies, regulated mortgage network, corporate expenses and assets held outside the three main business segments, none of which constitute a separately reportable segment. As a result of Society's long term fund restructure, the Society shareholder capital held outside the LTF has been reclassified as attributable to long term business. The comparatives have been restated accordingly. |
|||||||||
|
|
|
|
|
|
|
|
|
|
(i) Income statement analysed by business segments |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term |
Investment |
General |
Other |
Elimination |
Total |
|
|
|
|
business |
manage- |
insurance |
operations |
of inter |
|
|
|
|
|
|
ment |
|
|
segment |
|
|
|
|
|
|
|
|
|
amounts |
|
Six months ended 30 June 2008 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations1 |
(551) |
(13,380) |
136 |
122 |
(112) |
(13,785) |
|||
Total expenses from continuing operations |
|
(66) |
(13,521) |
157 |
141 |
(112) |
(13,401) |
||
(Loss)/profit from continuing operations after income tax |
(61) |
64 |
(16) |
(14) |
- |
(27) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter segment revenue |
|
|
(17) |
(47) |
- |
(48) |
112 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2007 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations1 |
3,234 |
5,443 |
149 |
242 |
(110) |
8,958 |
|||
Total expenses from continuing operations |
|
2,842 |
5,342 |
196 |
163 |
(110) |
8,433 |
||
Profit/(loss) from continuing operations after income tax |
241 |
50 |
(33) |
71 |
- |
329 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter segment revenue |
|
|
(14) |
(30) |
- |
(66) |
110 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full year ended 31 December 2007 |
|
£m |
£m |
£m |
£m |
£m |
£m |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations1 |
6,540 |
11,379 |
308 |
233 |
(258) |
18,202 |
|||
Total expenses from continuing operations |
|
5,793 |
11,169 |
384 |
319 |
(258) |
17,407 |
||
Profit/(loss) from continuing operations after income tax |
719 |
109 |
(55) |
(55) |
- |
718 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter segment revenue |
|
|
(40) |
(79) |
- |
(139) |
258 |
- |
|
|
|
|
|
|
|
|
|
|
|
1. Total revenue from continuing operations includes investment return (further details provided in the consolidated income statement). |
|||||||||
|
|
|
|
|
|
|
|
|
|
(ii) Balance sheet analysed by business segments |
|
|
|
|
|
|
|||
|
|
|
|
Long term |
Investment |
General |
Other |
Elimination |
Total |
|
|
|
|
business |
manage- |
insurance |
operations |
of inter |
|
|
|
|
|
|
ment |
|
|
segment |
|
|
|
|
|
|
|
|
|
amounts |
|
As at 30 June 2008 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
78,592 |
194,339 |
420 |
3,326 |
(2,211) |
274,466 |
|
Total liabilities |
|
|
73,929 |
193,457 |
322 |
4,119 |
(2,211) |
269,616 |
|
Total equity |
|
|
4,663 |
882 |
98 |
(793) |
- |
4,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 June 2007 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
71,901 |
165,220 |
554 |
4,942 |
(1,549) |
241,068 |
|
Total liabilities |
|
|
68,228 |
164,445 |
418 |
3,555 |
(1,549) |
235,097 |
|
Total equity |
|
|
3,673 |
775 |
136 |
1,387 |
- |
5,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 December 2007 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
75,279 |
204,313 |
473 |
3,266 |
(2,046) |
281,285 |
|
Total liabilities |
|
|
70,449 |
203,550 |
359 |
3,349 |
(2,046) |
275,661 |
|
Total equity |
|
|
4,830 |
763 |
114 |
(83) |
- |
5,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Financial Reporting Standards |
|
|
|
|
|
Page 57 |
|||
Notes to the Financial Statements |
|
|
|
|
|
|
|
||
4.10 Segmental analysis (continued) |
|
|
|
|
|
|
|||
(iii) Revenue and assets by geographic segments |
|
|
|
|
|
|
|||
|
|
|
|
UK |
USA |
Netherlands |
France |
Elimination |
Total |
|
|
|
|
|
|
|
|
of inter |
|
|
|
|
|
|
|
|
|
segment |
|
|
|
|
|
|
|
|
|
amounts |
|
30 June 2008 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations |
|
(14,132) |
182 |
85 |
81 |
(1) |
(13,785) |
||
Total assets |
|
|
267,924 |
2,624 |
1,751 |
2,223 |
(56) |
274,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations |
|
8,416 |
163 |
173 |
207 |
(1) |
8,958 |
||
Total assets |
|
|
235,254 |
2,486 |
1,495 |
1,880 |
(47) |
241,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations |
|
17,204 |
338 |
290 |
373 |
(3) |
18,202 |
||
Total assets |
|
|
274,975 |
2,588 |
1,663 |
2,110 |
(51) |
281,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.11 Financial investments |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30.06.08 |
At 30.06.07 |
At 31.12.07 |
|
|
|
|
|
|
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities |
|
|
|
|
|
133,566 |
125,932 |
149,567 |
|
Unit trusts |
|
|
|
|
|
4,716 |
5,147 |
4,659 |
|
Debt securities |
|
|
|
|
|
107,501 |
88,465 |
104,087 |
|
Accrued interest |
|
|
|
|
|
1,425 |
1,187 |
1,363 |
|
Derivative assets |
|
|
|
|
|
2,600 |
271 |
694 |
|
Loans and receivables |
|
|
|
|
|
1,439 |
858 |
1,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
251,247 |
221,860 |
261,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|