TIM HARRIS GROUP FINANCE DIRECTOR 21 WE PERFORMED WELL IN 2014 - PowerPoint PPT Presentation

TIM HARRIS GROUP FINANCE DIRECTOR 21

WE PERFORMED WELL IN 2014 • Strong underlying operating result Strengthened capital • position • Good returns for policyholders 2

FINANCIAL RESULTS OPERATING PROFIT Our EEV operating profit from continuing operations before exceptional items increased 12% in 2014 Economic £205m Economic £92m Core operating profit £213m

FINANCIAL RESULTS PROFIT EEV profit from continuing operations before tax and Royal London Profit Share £551m Economic £205m £259m CIS gain Economic £150m £100m Pensions charge cap -£61m Operating profit Underlying Operating £196m operating profit profit up 12% £220m 2013 2014

FINANCIAL RESULTS SIGNIFICANT EVENTS • Integrating CIS, its subsidiaries and TCAM into Royal London • Part VII transfer of the assets and liabilities of RL (CIS) Limited • Launch of direct-to-consumer offering • Significant programme to support the implementation of the Solvency II European Directive from January 2016 25

FINANCIAL RESULTS CAPITAL The Group’s capital strength and stability have continued to improve in 2014 as a result of strong business performance and improvements arising from the Part VII Transfer of the CIS business Pillar I basis (Insurance Group Directive) Excess capital 26

FINANCIAL RESULTS NEW BUSINESS PREMIUMS (PVNBP) The present value of our new business premiums, saw our life and pensions new business increase by 39% on the prior year 27

FINANCIAL RESULTS RETURNING VALUE TO OUR POLICYHOLDERS Increased bonuses added to with-profit policies This reflects increases in many of our bonus rates, but is lower in total because fewer policies matured in 2014, with many endowments maturing in 2013 28

FINANCIAL RESULTS RETURNING VALUE TO OUR POLICYHOLDERS Cumulative Royal London Profit Share allocated 29

In summary... 2014 was a good year • Strong underlying operating result • Substantial increase in our capital strength Good returns to policyholders • Looking forward to 2015 • Grow profitable business lines • Further improve our operational effectiveness Work to meet the requirements • of Solvency II 10