REG - Legal & General Grp - L&G FY 2014 results part 3 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 5

Legal & GeneralAnnouncement

04/03/2015 07:12

- Part 5: For the preceding part double click  ID:nRSD4570Gd 

    
 Shareholders' equity on an EEV basis                                                                                                                                                                                                                                  7,074     541      2,633      727    10,975  
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                    
 Comprising:                                                                                                                                                                                                                                                                                                        
 Business reported on an IFRS basis                                                                                                                                                                                                                                    484       541      (886)      -      139     
                                                                                                                                                                                                                                                                                                                    
 Business reported on an EEV basis:                                                                                                                                                                                                                                                                                 
 Shareholder net worth                                                                                                                                                                                                                                                                                              
 - Free surplus2                                                                                                                                                                                                                                                       90                 887        161    1,138   
 - Required capital to cover solvency margin                                                                                                                                                                                                                           235                2,632      48     2,915   
 Value of in-force                                                                                                                                                                                                                                                                                                  
 - Value of in-force business3                                                                                                                                                                                                                                         6,870                         529    7,399   
 - Cost of capital                                                                                                                                                                                                                                                     (605)                         (11)   (616)   
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                    
 1. Shareholders' equity supporting the UK non profit LGAS and LGR businesses is held within Legal & General Assurance Society Limited and Legal & General Pensions Limited and is managed on a groupwide basis within the LGC and group expenses segment.  
 2. Free surplus is the value of any capital and surplus allocated to, but not required to support, the in-force covered business at the valuation date.                                                                                                    
 3. Value of in-force business includes a deduction for the time value of options and guarantees of £43m (2013: £23m).                                                                                                                                      
                                                                                                                                                                                                                                                                                                                    
 Further analysis of shareholders' equity is included in Note 5.03.                                                                                                                                                                                           
 
 
                                                                                                                                                                                                                                                                                          LGC                      
                                                                                                                                                                                                                                                                       LGAS and           and group                
                                                                                                                                                                                                                                                                       LGR       LGIM     expenses   LGA    Total  
 As at 31 December 2013                                                                                                                                                                                                                                                £m        £m       £m         £m     £m     
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
 Analysed as:                                                                                                                                                                                                                                                                                                      
 IFRS basis shareholders' equity1                                                                                                                                                                                                                                      783       421      3,622      816    5,642  
 Additional retained profit/(loss) on an EEV basis                                                                                                                                                                                                              4,830  -         (1,003)  117        3,944  
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
 Shareholders' equity on an EEV basis                                                                                                                                                                                                                                  5,613     421      2,619      933    9,586  
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
 Comprising:                                                                                                                                                                                                                                                                                                       
 Business reported on an IFRS basis                                                                                                                                                                                                                                    408       421      (630)      -      199    
                                                                                                                                                                                                                                                                                                                   
 Business reported on an EEV basis:                                                                                                                                                                                                                                                                                
 Shareholder net worth                                                                                                                                                                                                                                                                                             
 - Free surplus2                                                                                                                                                                                                                                                       67                 1,107      192    1,366  
 - Required capital to cover solvency margin                                                                                                                                                                                                                           248                2,142      42     2,432  
 Value of in-force                                                                                                                                                                                                                                                                                                 
 - Value of in-force business3                                                                                                                                                                                                                                         5,398                         711    6,109  
 - Cost of capital                                                                                                                                                                                                                                                     (508)                         (12)   (520)  
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
 1. Shareholders' equity supporting the UK non profit LGAS and LGR businesses is held within Legal & General Assurance Society Limited and Legal & General Pensions Limited and is managed on a groupwide basis within the LGC and group expenses segment.  
 2. Free surplus is the value of any capital and surplus allocated to, but not required to support, the in-force covered business at the valuation date.                                                                                                    
 3. Value of in-force business includes a deduction for the time value of options and guarantees of £23m.                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
 Further analysis of shareholders' equity is included in Note 5.03.                                                                                                                                                                                           
 
 
European Embedded Value                                                                                                    
                                           84 
 
 5.03 Segmental analysis of shareholders' equity                          
                                                                                                             
                                                      Covered   Other             Covered   Other            
                                                      business  business          business  business         
                                                      EEV       IFRS              EEV       IFRS             
                                                      basis     basis     Total   basis     basis     Total  
                                                      2014      2014      2014    2013      2013      2013   
                                                      £m        £m        £m      £m        £m        £m     
                                                                                                             
                                                                                                             
 LGAS                                                                                                        
 - LGAS UK Protection and Savings                     2,354     -         2,354   2,331     -         2,331  
 - LGAS overseas business                             472       -         472     512       -         512    
 - General insurance and other                        -         484       484     -         408       408    
                                                                                                             
                                                                                                             
 Total LGAS                                           2,826     484       3,310   2,843     408       3,251  
                                                                                                             
                                                                                                             
                                                                                                             
 LGR                                                  3,764     -         3,764   2,362     -         2,362  
                                                                                                             
                                                                                                             
                                                                                                             
 LGIM                                                 -         541       541     -         421       421    
                                                                                                             
                                                                                                             
                                                                                                             
                                                                                                             
 LGC and group expenses                               3,519     (886