Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
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Group financial highlights<br />
Group<br />
<br />
<br />
<br />
£509m<br />
EEV underlying profit<br />
before tax down 3%<br />
(Note 2)<br />
£398m<br />
EEV profit before tax<br />
down 34%<br />
16.4p<br />
EEV underlying earnings<br />
per share up 1%<br />
(Note 2)<br />
14.6p<br />
EEV basic earnings<br />
per share down 31%<br />
£400m<br />
IFRS underlying profit<br />
before tax up 79%<br />
(Note 3)<br />
<br />
£491m<br />
IFRS profit before tax<br />
from continuing operations<br />
up 34%<br />
17.9p<br />
IFRS underlying<br />
earnings per share up 103%<br />
(Note 3)<br />
<br />
13.1p<br />
IFRS basic earnings per<br />
share from continuing<br />
operations up 108%<br />
7.85p<br />
Dividend per share up 2%<br />
(Note 4)<br />
<br />
2.3 times<br />
Dividend cover up from<br />
1.1 times<br />
(Note 5)<br />
£1.73<br />
Pro forma embedded value<br />
per share up 5%<br />
19.0%<br />
Total Shareholder Return<br />
(FTSE 100 14.4%)<br />
(Note 6)<br />
Note 1 New business sales are reported on the Present Value of New Business Premiums (PVNBP) basis which is defined as single premiums<br />
plus the expected present value of <strong>new</strong> business regular premiums.<br />
Note 2 EEV underlying profit/earnings per share is based on expected investment return and excludes: (i) amortisation and impairment of Asset<br />
Management acquired intangible assets (ii) effect of economic assumption changes (iii) non-recurring items; and is stated after deducting interest<br />
payable on Step-up Tier one Insurance Capital Securities (STICS).<br />
Note 3 IFRS underlying profit/earnings per share is based on longer-term investment return and excludes: (i) policyholder tax (ii) returns attributable<br />
to minority interests in policyholder funds (iii) non-recurring items (iv) amortisation and impairment of acquired intangible assets and present value of<br />
acquired in-force business; and is stated after deducting interest payable on Step-up Tier one Insurance Capital Securities (STICS).<br />
Note 4 Dividend per share includes the interim dividend paid in November 2006 and the proposed final dividend payable in May 2007, which is<br />
subject to approval at the Annual General Meeting.<br />
Note 5 Dividend cover is based on IFRS underlying profit after tax and minority interests.<br />
Note 6 Total Shareholder Return takes account of share price movements and dividends paid during the year.<br />
<strong>Friends</strong> Provident Annual Report & Accounts 2006 3