Group Performance Highlights (on constant exchange rate basis)
IFRS operating profit of £1,881 million, up 17 per cent
EEV new business profit of £1,190 million, up 12 per cent
Underlying free surplus generation (after investment in new business) of £1,418 million, up 12 per cent
Net cash remittances from business units of £1,068 million, up 10 per cent
Business Units Performance Highlights (on constant exchange rate basis)
Asia life and asset management IFRS operating profit of £632 million, up 17 per cent
Jackson life IFRS operating profit of £834 million, up 11 per cent
UK life IFRS operating profit of £436 million, up 19 per cent
M&G IFRS operating profit of £251 million, up 11 per cent
Capital & Dividend
IFRS shareholders' funds of £12.1 billion, up 14 per cent
EEV shareholders' funds of £30.1 billion, up 16 per cent, equivalent to 1,170 pence per share
Insurance Groups Directive capital surplus estimated at £5.2 billion; solvency requirements covered 2.5 times
2015 interim dividend increased by 10 per cent to 12.31 pence per share
Commenting on the results, Mike Wells, Group Chief Executive, said:
"We have delivered a strong, broad-based performance in the first half of 2015. Our consistent strategy, rigorous execution and tight focus on the needs of our customers have ensured that we continue to deliver profitable growth and increased cash generation.
"Group IFRS operating profit increased 17 per cent to £1,881 million and EEV new business profit grew by 12 per cent to £1,190 million, while underlying free surplus generation increased by 12 per cent to £1,418 million.
"We have seen strong performances from each of our principal business units. In Asia, where we are focused on meeting the protection and savings needs of the growing middle classes through our high-quality agency force and productive bank partnerships, our life and asset management businesses delivered a combined IFRS operating profit of £632 million, up by 17 per cent and free surplus generation of £356 million, up 16 per cent. Life new business profit in the region was up 30 per cent to £664 million, reflecting a 31 per cent increase in APE sales.
"At Eastspring, our Asia-based asset management business, external net inflows of £4.6 billion and positive market movements have driven total funds under management to a record level of £85.3 billion, 28 per cent higher than a year ago.
"In the US, Jackson continues to execute with discipline, delivering growth in both IFRS operating profit and cash, while maintaining a strong focus on value, risk management and capital. In the first half of 2015, we continued to manage proactively sales of variable annuities with living benefits while diversifying our sales mix. Our success in capturing strong variable annuity inflows at attractive margins drove our separate account asset base 11 per cent6 higher to £85.9 billion at 30 June 2015. Jackson's life IFRS operating profit consequently increased by 11 per cent to £834 million, which represents a new high at the half year stage. Cash remittances also grew by 14 per cent (on an actual exchange rate basis) to £403 million.