Financial Statements
Consolidated Income Statement for the year ended 31 December 2005
| Notes | 2005 £m |
2004 £m |
|
|---|---|---|---|
| Continuing operations | |||
| Income | |||
| Gross written premiums | 6,420 | 6,655 | |
| Less: reinsurance premiums | (1,020) | (1,573) | |
| Net written premiums | 5,400 | 5,082 | |
| Change in the gross provision for unearned premiums | 4 | 883 | |
| Less: change in provision for unearned premiums, reinsurers’ share | (22) | (219) | |
| Change in provision for unearned premiums | (18) | 664 | |
| Net earned premiums | 5,382 | 5,746 | |
| Net investment return | 2 | 806 | 656 |
| Other operating income | 4 | 111 | 141 |
| Total income | 6,299 | 6,543 | |
| Expenses | |||
| Gross claims incurred | (4,451) | (5,816) | |
| Less: claims recoveries from reinsurers | 856 | 1,555 | |
| Net claims and benefits | 3 | (3,595) | (4,261) |
| Underwriting and policy acquisition costs | (1,738) | (1,816) | |
| Benefit from change of pension scheme design | 180 | – | |
| (1,558) | (1,816) | ||
| Unwind of discount | (61) | (71) | |
| Other operating expenses | 4 | (252) | (291) |
| Total expenses | (5,466) | (6,439) | |
| Results of operating activities | 833 | 104 | |
| Finance costs | 4 | (107) | (75) |
| Profit/(loss) on disposal of subsidiaries | 136 | (2) | |
| Net share of profit after tax of associates | 11 | 3 | 8 |
| Profit before tax on continuing operations | 865 | 35 | |
| Income tax expense | 5 | (260) | (88) |
| Profit/(loss) for the year from continuing operations | 605 | (53) | |
| Discontinued operations | |||
| Loss for the year from discontinued operations | 36 | – | (27) |
| Profit/(loss) for the year | 605 | (80) | |
| Attributable to: | |||
| Equity holders of the Parent Company | 555 | (125) | |
| Minority interests | 50 | 45 | |
| 605 | (80) | ||
| Earnings per share for profit/(loss) from continuing operations attributable to the equity holders of the Parent Company | |||
| Basic | 6 | 18.9p | (4.1)p |
| Diluted | 6 | 18.7p | (4.1)p |
| Earnings per share for loss from discontinued operations attributable to the equity holders of the Parent Company | |||
| Basic | 6 | – | (0.9)p |
| Diluted | 6 | – | (0.9)p |
| Ordinary dividends paid and proposed for the year | |||
| Interim dividend paid (per share) | 7 | 1.69p | 1.65p |
| Final dividend proposed (per share) | 7 | 3.05p | 2.96p |
| The notes form an integral part of these consolidated financial statements. | |||
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