SLIDE 1
TIM HARRIS
GROUP FINANCE DIRECTOR
21
2
WE PERFORMED WELL IN 2014
- Strong underlying
- perating result
- Strengthened capital
position
- Good returns for
TIM HARRIS GROUP FINANCE DIRECTOR 21 WE PERFORMED WELL IN 2014 - - PowerPoint PPT Presentation
TIM HARRIS GROUP FINANCE DIRECTOR 21 WE PERFORMED WELL IN 2014 - - PowerPoint PPT Presentation
TIM HARRIS GROUP FINANCE DIRECTOR 21 WE PERFORMED WELL IN 2014 Strong underlying operating result Strengthened capital position Good returns for policyholders 2 FINANCIAL RESULTS OPERATING PROFIT Our EEV operating profit
SLIDE 2
SLIDE 3
FINANCIAL RESULTS OPERATING PROFIT
Economic £205m
Core
- perating
profit £213m
Economic £92m
Our EEV operating profit from continuing operations before exceptional items increased 12% in 2014
SLIDE 4
FINANCIAL RESULTS PROFIT
Operating profit £196m CIS gain £150m Economic £205m
£551m
2013 2014
EEV profit from continuing operations before tax and Royal London Profit Share
£259m
Operating profit £220m Economic £100m
Pensions charge cap
- £61m
Underlying
- perating
profit up 12%
SLIDE 5
FINANCIAL RESULTS
25
SIGNIFICANT EVENTS
- Integrating CIS, its subsidiaries and TCAM into Royal
London
- Part VII transfer of the assets and liabilities of RL
(CIS) Limited
- Launch of direct-to-consumer offering
- Significant programme to support the implementation
- f the Solvency II European Directive from January
2016
SLIDE 6
FINANCIAL RESULTS
26
CAPITAL
The Group’s capital strength and stability have continued to improve in 2014 as a result of strong business performance and improvements arising from the Part VII Transfer of the CIS business
Pillar I basis (Insurance Group Directive) Excess capital
SLIDE 7
FINANCIAL RESULTS NEW BUSINESS PREMIUMS (PVNBP)
The present value of our new business premiums, saw our life and pensions new business increase by 39% on the prior year
27
SLIDE 8
FINANCIAL RESULTS
28
RETURNING VALUE TO OUR POLICYHOLDERS
Increased bonuses added to with-profit policies
This reflects increases in many of our bonus rates, but is lower in total because fewer policies matured in 2014, with many endowments maturing in 2013
SLIDE 9
FINANCIAL RESULTS
29
RETURNING VALUE TO OUR POLICYHOLDERS
Cumulative Royal London Profit Share allocated
SLIDE 10
10
In summary... 2014 was a good year
- Strong underlying operating
result
- Substantial increase in our
capital strength
- Good returns to policyholders
Looking forward to 2015
- Grow profitable business lines
- Further improve our operational
effectiveness
- Work to meet the requirements
- f Solvency II