Setting new standards - Friends Life

FINANCIAL STATEMENTS
IFRS FINANCIAL STATEMENTS
EEV SUPPLEMENTARY INFORMATION
Notes to the consolidated accounts continued
3. Segmental information continued
Year ended 31 December 2005
International
UK Life & Life & Asset
Pensions Pensions Management Total
£m £m £m £m
Profit before tax from continuing operations 488 (27) (94) 367
Inter segment loan interest 12 - (12) -
Policyholder tax (218) - - (218)
Returns on Group-controlled funds attributable to third parties (57) - - (57)
Profit before tax excluding profit generated within
policyholder funds 225 (27) (106) 92
Non-recurring items 10 3 46 59
Amortisation of Asset Management acquired intangible assets - - 56 56
Amortisation of acquired present value of in-force business 10 18 - 28
Amortisation of Life & Pensions acquired intangible assets - 7 - 7
Impairment of Asset Management acquired intangible assets - - 112 112
Interest payable on STICS (37) - - (37)
Short-term fluctuations in investment return (101) (1) - (102)
Variation in value of option on convertible debt 9 - - 9
Underlying profit before tax 116 - 108 224
Tax on underlying profit (5)
Minority interest in underlying profit (36)
Underlying profit after tax attributable to ordinary
shareholders of the parent 183
Earnings per share
Underlying earnings per share (pence) 8.8
(iii) Assets and liabilities
Year ended 31 December 2006
Elimination of
UK Life & International Asset inter-segment
Pensions Life & Pensions Management amounts Total
£m £m £m £m £m
Segment assets 40,182 12,243 2,126 (77) 54,474
Investment in associates and joint venture 15 - - - 15
Total assets 40,197 12,243 2,126 (77) 54,489
Total liabilities 36,991 11,730 1,680 (77) 50,324
Other segment information:
Capital expenditure 313 4 5 - 322
Depreciation 7 - 3 - 10
Amortisation 24 24 44 - 92
Impairment losses (i) - - 58 - 58
88 Friends Provident Annual Report & Accounts 2006