ANNUAL REPORT 2001 - Prudential plc

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CONSOLIDATED PROFIT AND LOSS ACCOUNT CONTINUED YEAR ENDED 31 DECEMBER 2001 Restated † 2001 2000 Non-technical Account Note £m £m Balance on the general business technical account 8 72 33 Balance on the long-term business technical account 442 670 Tax credit attributable to balance on the long-term business technical account 16 235 318 Balance on the long-term business technical account before tax 8 677 988 Profit on insurance activities 749 1,021 Other activities Investment income 12 199 140 Allocated investment return transferred to the long-term business technical account (385) (57) Investment expenses and charges 15 (162) (144) Unrealised losses on investments (162) (7) Allocated investment return transferred to the general business technical account (37) (47) Other income: UK investment management and products result 75 90 US broker dealer and fund management 16 7 Merger break fee (net of related expenses) 8 338 – Profit on business disposals – 239 Other charges: Corporate expenditure (63) (56) Banking 10(b) (88) (155) Amortisation of goodwill 17 (95) (84) Loss on other activities 8 (364) (74) Profit on ordinary activities before tax 8 385 947 Tax on profit on ordinary activities 16 (21) (314) Profit for the financial year before minority interests 364 633 Minority interests 25 24 Profit for the financial year after minority interests 389 657 Dividends: Interim (at 8.7p (8.2p) per share) (172) (162) Final (at 16.7p (16.3p) per share) (332) (322) Total dividends (504) (484) Retained (loss) profit for the financial year (115) 173 Reconciliation of operating profit before amortisation of goodwill to profit on ordinary activities* Continuing operations 550 807 Discontinued general business operations 72 33 Operating profit before amortisation of goodwill based on long-term investment returns 8 622 840 Amortisation of goodwill 17 (95) (84) Operating profit based on long-term investment returns 527 756 Short-term fluctuations in investment returns 8 (480) (48) Merger break fee (net of related expenses) 8 338 – Profit on business disposals 8 – 239 Profit on ordinary activities before tax 8 385 947 Basic earnings per share Based on operating profit after tax and related minority interests before amortisation of goodwill of £460m (£591m) and 1,978m (1,959m) shares 5 23.3p 30.2p Based on profit for the financial year after minority interests of £389m (£657m) and 1,978m (1,959m) shares 5 19.7p 33.5p Diluted earnings per share Based on profit for the financial year after minority interests of £389m (£657m) and 1,982m (1,968m) shares 5 19.6p 33.4p Dividend per share 25.4p 24.5p † The tax charge, minority interests and earnings per share for 2000 have been restated for the implementation of FRS 19 on deferred tax (see note 4). * For the purposes of this analysis, operating profit is determined on a long-term investment return basis and before amortisation of goodwill. Management consider this to be the most meaningful definition of operating profit. 38 Prudential plc Annual Report 2001
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES YEAR ENDED 31 DECEMBER 2001 Restated † 2001 2000 £m £m Profit for the financial year after minority interests 389 657 Exchange movements 52 120 Total recognised gains relating to the financial year 441 777 Prior year adjustment (note 4) (49) Total gains and losses recognised since previous Annual Report 392 RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS’ CAPITAL AND RESERVES YEAR ENDED 31 DECEMBER 2001 Ordinary Retained share Share profit capital premium and loss (note 27) (note 27) reserve Total £m £m £m £m 1 January 2000, as originally reported98 249 3,077 3,424 Prior year adjustment † (20) (20) 1 January 2000, as restated98 249 3,057 3,404 Total recognised gains relating to 2000, as restated 777 777 Dividends (484) (484) Goodwill on sale of holding in associate company 90 90 New share capital subscribed1 183 184 Transfer for shares issued in lieu of cash dividends (20) 20 Charge in respect of shares issued to qualifying employee share ownership trust 46 (46) 31 December 2000, as originally reported 99 458 3,463 4,020 Prior year adjustment † (49) (49) 1 January 2001, as restated 99 458 3,414 3,971 Total recognised gains relating to 2001 441 441 Dividends (504) (504) New share capital subscribed 1 41 42 Transfer for shares issued in lieu of cash dividends (20) 20 Charge in respect of shares issued to qualifying employee share ownership trust 54 (54) 31 December 2001 100 533 3,317 3,950 † Total recognised gains relating to 2000 and the movement in capital and reserves for 2000 have been restated for the implementation of FRS 19 on deferred tax (see note 4). 39 Prudential plc Annual Report 2001
Page 1 and 2: PRUDENTIAL PLC ANNUAL REPORT 2001
Page 3 and 4: PRUDENTIAL AT A GLANCE PRUDENTIAL
Page 5 and 6: GROUP FINANCIAL HIGHLIGHTS 2001 200
Page 7 and 8: GROUP CHIEF EXECUTIVE’S REVIEW WE
Page 9 and 10: The fastest growing age group in th
Page 11 and 12: est growth prospects in the market
Page 13 and 14: Egg 2001 was another year of outsta
Page 15 and 16: Over the last five years, JNL has m
Page 17 and 18: equivalent (APE) basis were £434 m
Page 19 and 20: 69 per cent). The new business marg
Page 21 and 22: differences and other items. The in
Page 23 and 24: However, we have not been discussin
Page 25 and 26: CORPORATE SOCIAL RESPONSIBILITY REV
Page 27 and 28: Executive Directors 1. Jonathan Blo
Page 29 and 30: Nomination Committee Sir Roger Hurn
Page 31 and 32: REMUNERATION REPORT The Remuneratio
Page 33 and 34: Directors’ Long-term Incentive Pl
Page 35 and 36: Directors’ Share Options The Rest
Page 37 and 38: DIRECTORS’ REPORT Principal Activ
Page 39 and 40: SUMMARY OF STATUTORY BASIS RESULTS
Page 41: Restated † 2001 2000 Long-term Bu
Page 45 and 46: Restated † 2001 2000 Liabilities
Page 47 and 48: CONSOLIDATED CASH FLOW STATEMENT YE
Page 49 and 50: 3. Significant Accounting Policies
Page 51 and 52: Reinsurance In the normal course of
Page 53 and 54: Linked business funds Certain long-
Page 55 and 56: 5. Supplemental Earnings Informatio
Page 57 and 58: 7. Segmental Information - New Busi
Page 59 and 60: 9. Segmental Information - Net Asse
Page 61 and 62: 11. Jackson National Life - Additio
Page 63 and 64: 15. Investment Expenses and Charges
Page 65 and 66: 16. Tax continued 2001 2000 £m £m
Page 67 and 68: 21. Fees Payable to Auditors KPMG K
Page 69 and 70: 27. Share Capital and Share Premium
Page 71 and 72: 31. Borrowings continued 2001 2000
Page 73 and 74: 32. Contingencies and Related Oblig
Page 75 and 76: INDEPENDENT AUDITORS’ REPORT TO T
Page 77 and 78: 2001 2000 1999 1998 1997 Analysis b
Page 79 and 80: SUMMARISED CONSOLIDATED PROFIT AND
Page 81 and 82: NOTES ON THE ACHIEVED PROFITS BASIS
Page 83 and 84: 6. Cost of Capital On the achieved
Page 85 and 86: 10. Short-term Fluctuations in Inve
Page 87 and 88: 14. Reconciliation of Movement in S
Page 89 and 90: THE ACHIEVED PROFITS BASIS OF FINAN
Page 91 and 92: HOW TO CONTACT US Prudential plc La

ANNUAL REPORT 2001 - Prudential plc

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