H1 financial highlights
- Adjusted operating profit before tax of £327 million, up 6% on the first half of 2020
- IFRS loss after tax of £248 million; impacted by short-term fluctuations in the fair value of the surplus assets in our annuity portfolio and derivatives used to hedge the Solvency II balance sheet caused by increasing yields and rising equity markets
- Assets under management and administration increased to £370.0 billion, with positive market movements and net client inflows to Institutional Asset Management more than offsetting net client outflows in other areas of the business
- Total capital generation of £869 million, on track for target of £2.2 billion by the end of 2022
- Shareholder Solvency II coverage ratio strengthens to 198%
- Interim dividend of 6.1 pence per share (estimated to be £155 million) in line with our policy of paying one-third of the previous year's total dividend
And later;
Dividends and capital movements primarily represent external dividends paid to shareholders and changes to the capital structure of the Group, such as issuing or repaying debt instruments. Also included within capital movements are the Solvency II impact of the Group's share-based payment awards over and above the amount expensed in respect of those awards, and the surplus utilised or generated from transactions relating to the acquisition of business as defined by IFRS.
The expected surplus capital from the in-force life insurance business is calculated on the assumption of real-world investment returns, which are determined by reference to the risk-free rate plus a risk premium based on the mix of assets held for the relevant business. For with-profits business, the assumed average return was 4.0% for the six months ended 30 June 2021, 4.3% for the six months ended 30 June 2020 and the year ended 31 December 2020. For annuity business, the assumed average return on assets backing capital was 1.15% for the six months ended 30 June 2021, 2.09% for the six months ended 30 June 2020 and 2.09% for the year ended 31 December 2020.
The Group's capital generation results in respect of the six months ended 30 June 2021 and 30 June 2020, and year ended 31 December 2020 are shown below, alongside a reconciliation of the total movement in the Group's Solvency II surplus. The reconciliation is presented showing the impact on the shareholder Solvency II own funds and SCR, which excludes the contribution to own funds and SCR from the Group's ring-fenced With-Profits Fund. The shareholder Solvency II capital position, and how this reconciles to the regulatory capital position, is described in detail in the previous section of this supplementary information.
https://www.investegate.co.uk/m--38-g-p ... 00040756I/
I have been mulling over bringing these on board my HYP. The fact that my 11 year old Granddaughter has them is nothing to do with it.
Ian.