Friends Life Group Limited
Results for the year ended 31 December 2014
Strong cash performance
Sustainable free surplus £373 million, up 15% (2013: £325 million) and marginally ahead of guidance
Continued strong performance in Corporate Benefits, positive net fund flows of £0.6 billion, taking assets under administration to £22.0 billion; significant improvement in underlying free surplus, up to £29 million (2013: £11 million)
IFRS based operating profit before tax of £556 million, up 38% (2013: £402 million)
MCEV operating profit before tax of £498 million, down 7% (2013: £535 million); mainly due to reduction in VNB
Value of new business down £47 million to £132 million (including £32 million reduction in Retirement Income VNB) as predicted trends continue
Capital position robust
Available shareholder assets £1,066 million
IGCA surplus £2.3 billion, coverage ratio 240%
Economic capital surplus £3.7 billion, coverage ratio 196%
Full year dividend of 31.15 pence per share subject to completion of the Proposed Acquisition by Aviva plc (2013: 21.14 pence per share)
