REG - Phoenix Grp Hldgs - Phoenix Group Holdings - 2014 Annual Results <Origin Href="QuoteRef">PHNX.L</Origin> - Part 9
18/03/2015 07:01
- Part 9: For the preceding part double click ID:nRSR7166Hh
page 90, the Directors are responsible
for the preparation of the financial statements and the parent company financial statements and for being satisfied that
they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
ISAs (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for
Auditors.
Phoenix Group Holdings is a non-UK company and as such is not required to comply with the UK Companies Act 2006. As the
Group is listed on the UK Stock Exchange, the Directors have voluntarily chosen to comply with the Companies Act 2006 and
listing rules that apply to UK Companies and have engaged us to provide an opinion as if they were. Accordingly we have
been engaged to:
- report as to whether the Strategic Report and Directors' Report for the financial year for which the financial
statements are prepared is consistent with the financial statements;
- report as to whether the information given in the Corporate Governance Statement with respect to internal control and
risk management systems in relation to financial reporting processes is consistent with the financial statements;
- report as to whether the section the Directors' remuneration report that is described as audited has been properly
prepared in accordance with the basis of preparation described therein;
- report if we are not satisfied that:
- adequate accounting records have been kept (including returns from those branches which have not been visited);
- the financial statements are in agreement with the records and returns; or
- we have obtained all the information and explanations which we consider necessary for the purposes of the audit.
- review in accordance with listing rules:
- the Directors' statement in relation to going concern; or
- the requirements of Schedule 8 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations
2008 of the United Kingdom pertaining to Directors' remuneration that UK quoted companies are required to comply with.
report on matters prescribed by our engagement letter
- the information given in the Strategic Report and the Directors' Report for the financial year for which the financial
statements are prepared is consistent with the financial statements;
- the information given in the Corporate Governance Statement set out on pages 51 to 59 with respect to internal control
and risk management systems in relation to financial reporting processes is consistent with the financial statements; and
- the part of the Directors' remuneration report that has been described as audited has been properly prepared in
accordance with the basis of preparation as described therein.
prescribed by our engagement letter we are required to report to you by exception if in our opinion:
- Adequate accounting records have not been kept (including returns from those branches which have not been visited); or
- The financial statements are not in agreements with the accounting records and returns; or
- We have not received all the information and explanation which we require for the audit; or
- The Directors' Statement set out on page 85 in relation to going concern; or
- the requirements of Schedule 8 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations
2008 of the United Kingdom pertaining to Directors' remuneration that UK quoted companies are required to comply with.
report on other matters by exception
Under the ISAs (UK and Ireland), we are required to report to you if, in our opinion, information in the Annual Report is:
- materially inconsistent with the information in the audited financial statements; or
- apparently materially incorrect based on, or materially inconsistent with, our knowledge of the Group acquired in the
course of performing our audit; or
- is otherwise misleading.
In particular, we are required to consider whether we have identified any inconsistencies between our knowledge acquired
during the audit and the directors' statement that they consider the annual report is fair balanced and understandable and
whether the annual report appropriately discloses those matters that we communicated to the audit committee which we
consider should have been disclosed.
Under the Listing Rules we are required to review the part of the Corporate Governance Statement relating to the Company's
compliance with the nine provision of the UK Corporate Governance Code, specified in for our reivew.
Ernst & Young LLP
London
17 March 2015
Notes:
1. The maintenance and integrity of the Phoenix Group Holdings web site is the responsibility of the Directors; the work
carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial statements since they were initially presented on
the web site.
2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2014
Notes 2014 2013
£m Restated
£m
Gross premiums written 981 1,333
Less: premiums ceded to reinsurers 7 (1,792) 11
Net premiums written (811) 1,344
Fees 8 94 93
Net investment income 9 6,034 2,786
Total revenue, net of reinsurance payable 5,317 4,223
Gain on transfer of business 4 4 42
Other operating income 9 7
Net income 5,330 4,272
Policyholder claims (3,724) (4,830)
Less: reinsurance recoveries 341 464
Change in insurance contract liabilities (1,990) 3,411
Change in reinsurers' share of insurance contract liabilities 1,651 (710)
Transfer to unallocated surplus 22 (11) (77)
Net policyholder claims and benefits incurred (3,733) (1,742)
Change in investment contract liabilities (408) (1,156)
Acquisition costs (9) (10)
Change in present value of future profits 31 (9) 9
Amortisation of acquired in-force business 31 (98) (111)
Amortisation of customer relationships and other intangibles 31 (15) (16)
Administrative expenses 10 (429) (444)
Net income attributable to unitholders (8) (331)
Total operating expenses (4,709) (3,801)
Profit before finance costs and tax 621 471
Finance costs 12 (156) (230)
Profit for the year before tax 465 241
Tax attributable to policyholders' returns 13 (129) 27
Profit before the tax attributable to owners 336 268
Tax (charge)/credit 13 (151) 1
Add: tax attributable to policyholders' returns 13 129 (27)
Tax charge attributable to owners 13 (22) (26)
Profit from continuing operations for the year attributable to owners 314 242
Discontinued operations
Profit/(loss) from discontinued operations, net of tax 4 92 (35)
Profit for the year attributable to owners 406 207
Attributable to:
Owners of the parent 310 145
Non-controlling interests 20 96 62
406 207
Earnings per ordinary share
Basic (pence per share) 15 137.7p 68.2p
Diluted (pence per share) 15 137.5p 68.1p
Earnings per share from continuing operations
Basic earnings per share from continuing operations 15 96.7p 85.3p
Diluted earnings per share from continuing operations 15 96.5p 85.2p
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2014
Notes 2014 2013
£m £m
Profit for the year from continuing operations 314 242
Profit/(loss) from discontinued operations 92 (35)
406 207
Other comprehensive income/(expense):
Items that are or may be reclassified to profit or loss:
Foreign exchange rate movements 10 -
Reclassification adjustments relating to foreign collective investment schemes disposed - 8
of in the period
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit asset/liability 30 240 -
Tax credit/(charge) relating to other comprehensive income items 13 11 (12)
261 (4)
Total comprehensive income for the year 667 203
Attributable to:
Owners of the parent 571 141
Non-controlling interests 96 62
667 203
PRO FORMA RECONCILIATION OF GROUP OPERATING PROFIT TO RESULT ATTRIBUTABLE
TO OWNERS
For the year ended 31 December 2014
Notes 2014 2013
£m Restated
£m
Operating profit
Phoenix Life 487 414
Ignis - discontinued operations 17 49
504 463
Group costs (21) (24)
Total operating profit before adjusting items 483 439
Investment return variances and economic assumption changes on long-term business 6 12 64
Variance on owners' funds 6 (14) (31)
Amortisation of acquired in-force business (88) (99)
Amortisation of customer relationships and other intangibles (15) (19)
Non-recurring items 5.2 126 (11)
Profit before finance costs attributable to owners 504 343
Finance costs attributable to owners (88) (126)
Profit before the tax attributable to owners
From continuing operations 336 268
From discontinued operations 80 (51)
5.2 416 217
Tax charge attributable to owners from continuing operations (22) (26)
Tax credit attributable to owners from discontinued operations 12 16
Profit for the year attributable to owners 406 207
STATEMENT OF CONSOLIDATED FINANCIAL POSITION
As at 31 December 2014
Notes 2014 2013 2012
£m Restated Restated
£m £m
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 16 - - -
Share premium 979 1,097 982
Other reserves 17 - - 5
Shares held by employee benefit trust and Group entities 18 (8) (13) (10)
Foreign currency translation reserve 103 93 85
Retained earnings 1,291 732 596
Total equity attributable to owners of the parent 2,365 1,909 1,658
Non-controlling interests 20 913 778 724
Total equity 3,278 2,687 2,382
LiabilitiesRecent news on Phoenix group
See all newsREG - Phoenix Group Hldgs - Result of AGM
AnnouncementREG - Phoenix Group Hldgs - Director/PDMR Shareholding
AnnouncementREG - Phoenix Group Hldgs - Total Voting Rights
AnnouncementREG - Phoenix Group Hldgs - Director/PDMR Shareholding
AnnouncementREG - Phoenix Group Hldgs - Director/PDMR Shareholding
Announcement