REG - Legal & General Grp - L&G Full Year Results 2016 Part 2 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 2
08/03/2017 07:07
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related variance items.
IFRS and Release from Operations
Page 30
Consolidated Income Statement
For the year ended 31 December 2016
2016 2015
Notes £m £m
Income
Gross written premiums 10,325 6,321
Outward reinsurance premiums (1,573) (1,603)
Net change in provision for unearned premiums 4 21
Net premiums earned 8,756 4,739
Fees from fund management and investment contracts 1,068 1,139
Investment return 67,824 5,947
Operational income 321 876
Total income 2.09 77,969 12,701
Expenses
Claims and change in insurance liabilities 17,896 5,080
Reinsurance recoveries (2,745) (2,466)
Net claims and change in insurance liabilities 15,151 2,614
Change in provisions for investment contract liabilities 58,578 5,615
Acquisition costs 793 838
Finance costs 198 186
Other expenses 1,569 1,893
Transfers (from)/to unallocated divisible surplus (187) 141
Total expenses 76,102 11,287
Profit before tax 1,867 1,414
Tax expense attributable to policyholder returns (285) (59)
Profit before tax attributable to equity holders 1,582 1,355
Total tax expense (602) (320)
Tax expense attributable to policyholder returns 285 59
Tax expense attributable to equity holders 2.15 (317) (261)
Profit for the year 1,265 1,094
Attributable to:
Non-controlling interests 2.24 7 19
Equity holders of the company 1,258 1,075
Dividend distributions to equity holders of the company during the year 2.17 830 701
Dividend distributions to equity holders of the company proposed after the year end 2.17 616 592
p p
Earnings per share1 2.10 21.22 18.16
Diluted earnings per share1 2.10 21.13 18.04
1. All earnings per share calculations are based on profit attributable to equity holders of the company.
IFRS and Release from Operations
Page 31
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2016
2016 2015
£m £m
Profit for the year 1,265 1,094
Items that will not be reclassified subsequently to profit or loss
Actuarial (losses)/gains on defined benefit pension schemes (138) 47
Tax on actuarial (losses)/gains on defined benefit pension schemes 17 (11)
Actuarial gains/(losses) on defined benefit pension schemes transferred to unallocated divisible surplus 51 (17)
Tax on actuarial gains/(losses) on defined benefit pension schemes transferred to unallocated divisible surplus (6) 4
Total items that will not be reclassified to profit or loss subsequently (76) 23
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of overseas operations 190 25
Net change in financial investments designated as available-for-sale (4) (64)
Tax on net change in financial investments designated as available-for-sale 1 22
Total items that may be reclassified to profit or loss subsequently 187 (17)
Other comprehensive income after tax 111 6
Total comprehensive income for the year 1,376 1,100
Total comprehensive income attributable to:
Non-controlling interests 7 19
Equity holders of the company 1,369 1,081
IFRS and Release from Operations
Page 32
Consolidated Balance Sheet
As at 31 December 2016
2016 2015
Notes £m £m
Assets
Goodwill 11 83
Purchased interest in long term businesses and other intangible assets 155 292
Deferred acquisition costs 2,105 1,887
Investment in associates and joint ventures 283 220
Property, plant and equipment 76 92
Investment property 2.14/3.04 8,150 8,082
Financial investments 2.14/3.04 418,175 354,063
Reinsurers' share of contract liabilities 5,593 4,120
UK deferred tax asset 2.15 5 20
Current tax recoverable 297 236
Other assets 5,022 3,618
Assets of operations classified as held for sale 2.12 2,265 3,409
Cash and cash equivalents 25,717 20,677
Total assets 467,854 396,799
Equity
Share capital 2.18 149 149
Share premium 2.18 981 976
Employee scheme treasury shares (30) (30)
Capital redemption and other reserves 212 89
Retained earnings 5,633 5,220
Attributable to owners of the parent 6,945 6,404
Non-controlling interests 2.24 338 289
Total equity 7,283 6,693
Liabilities
Participating insurance contracts 2.21 5,794 5,618
Participating investment contracts 2.22 5,271 4,912
Unallocated divisible surplus 661 893
Value of in-force non-participating contracts (206) (184)
Participating contract liabilities 11,520 11,239
Non-participating insurance contracts 2.21 60,779 49,754
Non-participating investment contracts 2.22 321,177 278,554
Non-participating contract liabilities 381,956 328,308
Core borrowings 2.19 3,071 3,092
Operational borrowings 2.20 430 536
Provisions 2.27 1,328 1,171
UK deferred tax liabilities 2.15 291 137
Overseas deferred tax liabilities 2.15 522 436
Current tax liabilities 117 95
Payables and other financial liabilities 2.16 37,347 22,709
Other liabilities 594 737
Net asset value attributable to unit holders 21,573 18,277
Liabilities of operations classified as held for sale 2.12 1,822 3,369
Total liabilities 460,571 390,106
Total equity and liabilities 467,854 396,799
IFRS and Release from Operations
Page 33
Consolidated Statement of Changes in Equity
Employee Capital Equity
scheme redemption attributable Non-
Share Share treasury and other Retained to owners controlling Total
capital premium shares reserves1 earnings of the parent interests equity
For the year ended 31 December 2016 - - (830) (830) - (830)
Movement in third party interests - - - - - - 42 42
Currency translation differences - - - (55) 55 - - -
As at 31 December 2016 149 981 (30) 212 5,633 6,945 338 7,283
1. Capital redemption and other reserves include Share-based payments £60m (2015: £69m), Foreign exchange £135m (2015: £nil), Capital redemption £17m (2015: £17m), Available-for-sale reserves £(1)m (2015: £2m) and Hedging reserves £1m (2015: £1m).
IFRS and Release from Operations
Page 34
Consolidated Statement of Changes in Equity (continued)
Employee Capital Equity
scheme redemption attributable Non-
Share Share treasury and other Retained to owners controlling Total
capital premium shares reserves1 earnings of the parent 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 scheme:
- 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
1. Capital redemption and other reserves include Share-based payments £69m, Foreign exchange £nil, Capital redemption £17m, Available-for-sale reserves £2m and Hedging reserves £1m.
IFRS and Release from Operations
Page 35
Consolidated Cash Flow Statement
For the year ended 31 December 2016
2016 2015
Notes £m £m
Cash flows from operating activities
Profit for the year 1,265 1,094
Adjustments for non cash movements in net profit for the year
Realised and unrealised (gains)/losses on financial investments and investment properties (53,262) 4,077
Investment income (9,390) (9,760)
Interest expense 198 186
Tax expense 602 320
Other adjustments (45) (70)
Net (increase)/decrease in operational assets
Investments held for trading or designated as fair value through profit or loss (9,363) 1,007
Investments designated as available-for-sale 246 158
Other assets (2,658) (2,594)
Net increase/(decrease) in operational liabilities
Insurance contracts 12,910 (1,083)
Transfer from unallocated divisible surplus (232) (90)
Investment contracts 39,747 (9,524)
Value of in-force non-participating contracts (22) 24
Other liabilities 17,023 6,645
Cash used in operations (2,981) (9,610)
Interest paid (198) (186)
Interest received 4,863 5,286
Tax paid1 (424) (244)
Dividends received 4,676 3,931
Net cash flows from/(used in) operating activities 5,936 (823)
Cash flows from investing activities
Net acquisition of plant, equipment and intangibles (45) (24)
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