Financial results

Preliminary results - twelve months to 31 December 2006

A year of strong progress

  • EEV operating profit before tax up 55% to £614m (2005: £395m)
  • New business contribution before tax up 521% to £205m (2005: £33m)
  • IFRS underlying profit before tax up 272% to £540m (2005: £145m)
  • EEV up 11% to £5,608m (2005: £5,048m including IPO proceeds), equivalent to 258p per share
  • EEV cash generation increased to £262m (2005: £17m outflow)
  • Dividend of 5.4p in respect of period since IPO
  • Heritage With-Profits Fund Residual Estate increased to £1.3bn (2005: £0.5bn)
  • Continuous improvement initiatives to deliver additional cost benefits of £100m per annum by 2009

 

New business results - twelve months to 31 December 2006

  • Worldwide insurance sales on a PVNBP basis up 47% to £14,263m for full year (2005: £9,675m). APE(1,2) sales up 39% to £1,734m (2005: £1,249m) for full year, with a 56% increase in the fourth quarter of 2006.
  • UK Life and Pensions sales on a PVNBP basis up 69% to £11,400m for full year (2005: £6,763m). APE sales up 54% to £1,442m (2005: £939m) for full year, with an 86% increase in the fourth quarter of 2006*.
    • Self Invested Personal Pension (SIPP) and drawdown APE sales up 150% to £395m (2005: £158m(2)), including non-insured SIPP sales of £129m (2005: £31m).
    • Investment bond APE sales up 66% to £185m (2005: £112m).
  • SLI funds under management(3) up 11% to £132.1bn (31 December 2005: £118.8bn). Third party funds under management(3) up 32% to £38.5bn (31 December 2005: £29.1bn).
  • Net positive funds flow(4) for UK life and pension products was £3.2bn in 2006

* Growth was 50% in the fourth quarter excluding a bulk TIP(6) mandate of £84m. All comparisons above and in narrative below are in sterling unless otherwise stated(5). All sales figures below are on an APE basis unless otherwise stated. All comparators are with the twelve months or the comparable fourth quarter of 2005 unless otherwise stated.

New business results - nine months to 30 September 2006

  • Worldwide insurance APE1 sales up 26% to £1,119m (2005: £890m) year to date, with a 41% increase in the third quarter of 2006
  • UK Life and Pensions APE sales up 35% to £921m (2005: £684m) year to date, with a 56% increase in the third quarter of 2006
    • Self Invested Personal Pension (SIPP) and drawdown APE sales up 109% to £182m (2005: £87m)
    • Investment bond APE sales up 81% to £132m (2005: £73m)
  • Lapses in UK pensions continue above the long-term trend, as reflected in the provisions made at the half year
  • Third party funds under management up to £34.7bn (31 December 2005: £29.1bn, 30 June 2006: £32.5bn)

Half Year Results 2006

  • Worldwide insurance PVNBP sales of £5,763m (Full Year 2005: £9,367m), worldwide insurance APE sales up 19% to £745m (six months to June 2005: £624m)
  • Group new business contribution before tax of £91m (FY 2005: £33m), PVNBP margin up to 1.6% (FY 2005: 0.4%)
  • EEV operating profit before tax of £206m (FY 2005: £395m), after a £100m increase in lapse provisions
  • IFRS underlying profit before tax of £243m (FY 2005: £145m)
  • Group EEV before IPO proceeds up 3% to £3,875m (31 December 2005: £3,744m), Group EEV including IPO proceeds per share of 246p (31 December 2005: 239p)
  • Standard Life Investments funds under management £123.4bn (31 December 2005: £118.8bn)

 

Half Year New Business Results 2006

  • Worldwide insurance APE sales up 17% to £745 million (2005: £624m)
  • UK Life and Pensions APE sales up 25% to £594m (2005: £475m), with a 36% increase in the second quarter of 2006 (compared to the second quarter of 2005):
    • Self Invested Personal Pension (SIPP) and drawdown APE sales up 75% to £105m (2005: £60m)
    • Investment bond APE sales up 121% to £86m (2005: £39m)
  • Net investment product inflows of £3,120m (2005: £2,643m)

Quarter 1 New Business Results (PVNBP) 2006

2006 Quarter 1 PVNBP New Business and the Target Press Release can be found at the London Stock Exchange Market News website under code 30EE

Quarter 1 New Business Results (APE) 2006

  • UK Life and Pensions Annual Premium Equivalent (APE) increased 13% to £263m (2005: £232m)
  • Worldwide insurance APE grew by 7% to £342m (2005: £320m)
  • Worldwide single premium insurance sales increased by 48% to £1,851m (2005: £1,247m)
  • Worldwide gross investment sales up 141% to £2,451m (2005: £1,019m)
  • Standard Life Investments total funds under management rose by £6bn in the quarter to £124.8bn (31 December 2005: £118.8bn)