REG - Legal & General Grp - L&G Full Year Results 2015 Part 2 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 2
15/03/2016 07:07
- Part 2: For the preceding part double click ID:nRSO0690Sa
12,701 51,517
Expenses
Claims and change in insurance liabilities 5,080 15,071
Reinsurance recoveries (2,466) (975)
Net claims and change in insurance liabilities 2,614 14,096
Change in provisions for investment contract liabilities 5,615 33,385
Acquisition costs 838 873
Finance costs 186 183
Other expenses 1,893 1,748
Transfers to/(from) unallocated divisible surplus 141 (181)
Total expenses 11,287 50,104
Profit before tax 1,414 1,413
Tax expense attributable to policyholder returns (59) (175)
Profit before tax attributable to equity holders 1,355 1,238
Total tax expense (320) (421)
Tax expense attributable to policyholder returns 59 175
Tax expense attributable to equity holders 2.16 (261) (246)
Profit for the year 1,094 992
Attributable to:
Non-controlling interests 19 7
Equity holders of the company 1,075 985
Dividend distributions to equity holders of the company during the year 2.18 701 580
Dividend distributions to equity holders of the company proposed after the year end 2.18 592 496
p p
Earnings per share1 2.10 18.16 16.70
Adjusted earnings per share1,2 2.10 18.58 16.70
Diluted earnings per share1 2.10 18.04 16.54
Adjusted diluted earnings per share1,2 2.10 18.46 16.54
1. All earnings per share calculations are based on profit attributable to equity holders of the company.
2. Adjusted earnings per share and adjusted diluted earnings per share have been calculated excluding the net loss, £25m, resulting from the disposal of subsidiary and joint venture investments during the year. Adjusted EPS is a non IFRS reporting measure.
IFRS and Cash
Page 33
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2015
2015 2014
Notes £m £m
Profit for the year 1,094 992
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit pension schemes 47 (117)
Tax on actuarial losses on defined benefit pension schemes (11) 23
Actuarial (losses)/gains on defined benefit pension schemes transferred to unallocated divisible surplus (17) 47
Tax on actuarial (losses)/gains on defined benefit pension schemes transferred to unallocated divisible surplus 4 (9)
Total items that will not be reclassified to profit or loss subsequently 23 (56)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of overseas operations 25 12
Net change in financial investments designated as available-for-sale (64) 40
Tax on net change in financial investments designated as available-for-sale 22 (14)
Total items that may be reclassified to profit or loss subsequently (17) 38
Other comprehensive income/(expense) after tax 6 (18)
Total comprehensive income for the year 1,100 974
Total comprehensive income attributable to:
Non-controlling interests 19 7
Equity holders of the company 1,081 967
IFRS and Cash
Page 34
Consolidated Balance Sheet
As at 31 December 2015
2015 2014
Notes £m £m
Assets
Goodwill 83 79
Purchased interest in long term businesses and other intangible assets 292 342
Deferred acquisition costs 1,887 1,936
Investment in associates and joint ventures 220 149
Property, plant and equipment 92 146
Investment property 2.15 8,082 8,152
Financial investments 2.15 354,063 360,614
Reinsurers' share of contract liabilities 4,120 2,906
UK deferred tax asset 2.16 20 54
Current tax recoverable 236 217
Other assets 3,618 2,249
Assets of operations classified as held for sale 2.13 3,409 -
Cash and cash equivalents 20,677 22,709
Total assets 396,799 399,553
Equity
Share capital 2.19 149 149
Share premium 2.19 976 969
Employee scheme treasury shares (30) (37)
Capital redemption and other reserves 89 117
Retained earnings 5,220 4,830
Shareholders' equity 6,404 6,028
Non-controlling interests 289 275
Total equity 6,693 6,303
Liabilities
Participating insurance contracts 2.22 5,618 6,579
Participating investment contracts 2.23 4,912 7,667
Unallocated divisible surplus 893 983
Value of in-force non-participating contracts (184) (208)
Participating contract liabilities 11,239 15,021
Non-participating insurance contracts 2.22 49,754 49,876
Non-participating investment contracts 2.23 278,554 288,558
Non-participating contract liabilities 328,308 338,434
Core borrowings 2.20 3,092 2,977
Operational borrowings 2.21 536 715
Provisions 2.27 1,171 1,247
UK deferred tax liabilities 2.16 137 180
Overseas deferred tax liabilities 2.16 436 434
Current tax liabilities 95 9
Payables and other financial liabilities 2.17 22,709 16,131
Other liabilities 737 963
Net asset value attributable to unit holders 18,277 17,139
Liabilities of operations classified as held for sale 2.13 3,369 -
Total liabilities 390,106 393,250
Total equity and liabilities 396,799 399,553
IFRS and Cash
Page 35
Consolidated Statement of Changes in Equity
Employee Capital
scheme redemption Non-
Share Share treasury and other Retained controlling Total
capital premium shares reserves earnings Total interests equity
For the year ended 31 December 2015 £m £m £m £m £m £m £m £m
As at 1 January 2015 149 969 (37) 117 4,830 6,028 275 6,303
Profit for the year - - - - 1,075 1,075 19 1,094
Exchange differences on translation of
overseas operations - - - 25 - 25 - 25
Actuarial gains on defined benefit
pension schemes - - - - 36 36 - 36
Actuarial gains on defined benefit
pension schemes transferred to
unallocated divisible surplus - - - - (13) (13) - (13)
Net change in financial investments
designated as available-for-sale - - - (42) - (42) - (42)
Total comprehensive income/(expense)
for the year - - - (17) 1,098 1,081 19 1,100
Options exercised under
share option schemes:
- Savings related share option scheme - 7 - - - 7 - 7
Shares purchased - - (3) - - (3) - (3)
Shares vested - - 10 (23) - (13) - (13)
Employee scheme treasury shares:
- Value of employee services - - - 26 - 26 - 26
Share scheme transfers to
retained earnings - - - - (21) (21) - (21)
Dividends - - - - (701) (701) - (701)
Movement in third party interests - - - - - - (5) (5)
Currency translation differences - - - (14) 14 - - -
As at 31 December 2015 149 976 (30) 89 5,220 6,404 289 6,693
IFRS and Cash
Page 36
Consolidated Statement of Changes in Equity (continued)
Employee Capital
scheme redemption Non-
Share Share treasury and other Retained controlling Total
capital premium shares reserves earnings Total interests equity
For the year ended 31 December 2014 £m £m £m £m £m £m £m £m
As at 1 January 2014 148 959 (39) 57 4,517 5,642 265 5,907
Profit for the year - - - - 985 985 7 992
Exchange differences on translation of
overseas operations - - - 12 - 12 - 12
Actuarial losses on defined benefit
pension schemes - - - - (94) (94) - (94)
Actuarial losses on defined benefit
pension schemes transferred to
unallocated divisible surplus - - - - 38 38 - 38
Net change in financial investments
designated as available-for-sale - - - 26 - 26 - 26
Total comprehensive income
for the year - - - 38 929 967 7 974
Options exercised under
share option schemes:
- Savings related share option scheme 1 10 - - - 11 - 11
Shares purchased - - (7) - - (7) - (7)
Shares vested - - 9 (17) - (8) - (8)
Employee scheme treasury shares:
- Value of employee services - - - 20 - 20 - 20
Share scheme transfers
to retained earnings - - - - (17) (17) - (17)
Dividends - - - - (580) (580) - (580)
Movement in third party interests - - - - - - 3 3
Currency translation differences - - - 19 (19) - - -
As at 31 December 2014 149 969 (37) 117 4,830 6,028 275 6,303
IFRS and Cash
Page 37
Consolidated Cash Flow Statement
For the year ended 31 December 2015
2015 2014
Notes £m £m
Cash flows from operating activities
Profit for the year 1,094 992
Adjustments for non cash movements in net profit for the year
Realised and unrealised losses/(gains) on financial investments and investment properties 4,077 (30,851)
Investment income (9,760) (9,205)
Interest expense 186 183
Tax expense 320 421
Other adjustments (70) 87
Net (increase)/decrease in operational assets
Investments held for trading or designated as fair value through profit or loss 1,007 5,931
Investments designated as available-for-sale 158 225
Other assets (2,594) (151)
Net increase/(decrease) in operational liabilities
Insurance contracts (1,083) 9,228
Transfer to/(from) unallocated divisible surplus (90) (222)
Investment contracts (9,524) 10,156
Value of in-force non-participating contracts 24 40
Other liabilities 6,645 9,811
Cash used in operations (9,610) (3,355)
Interest paid (186) (203)
Interest received 5,286 4,857
Tax paid1 (244) (76)
Dividends received 3,931 4,264
Net cash flows (used in)/generated from operating activities (823) 5,487
Cash flows from investing activities
Net acquisition of plant, equipment and intangibles (24) (80)
Acquisitions2 2.11 (5) (38)
Disposal of subsidiaries3 2.12 (82) 56
Investment in joint ventures (71) (77)
Net cash flows from investing activities (182) (139)
Cash flows from financing activities
Dividend distributions to ordinary equity holders of the company during the year 2.18 (701) (580)
Proceeds from issue of ordinary share capital 7 11
Purchase of employee scheme shares (8) (2)
Proceeds from borrowings 697 674
Repayment of borrowings (527) (181)
Net cash flows used in financing activities (532) (78)
Net (decrease)/increase in cash and cash equivalents
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