Steady progress in continuing uncertain markets
Increase in EEV to 305.8m at 30 September 2012 from 294.5m at 31 December 2011, net of the impact of the distribution of a 12.5m dividend in May. The increase is predominantly due to 18.4m of pre-tax profit emerging as a direct result of investment market performance.
EEV pre-tax profit for the nine months ended 30 September 2012 of 29.6m (nine months ended 30 September 2011: loss of (59.8)m).
Profit on an IFRS basis before tax for the nine months ended 30 September 2012 of 20.1m, excluding exceptional item (nine months ended 30 September 2011: loss of (8.9)m) is underpinned by UK product-based surpluses which remain strong at 16.9m.
Net cash generation of 30.1m for the nine months ended 30 September 2012 (full year 2011: 25.4m). The 2012 cash generation includes 7.0m resulting from the de-authorisation of the S&P companies following the Part VII transfer.
Solvency ratios remain strong with Group (IGD) at 216% (31 December 2012: 198%), CA at 256% (31 December 2012: 183%) and Movestic 280% (31 December 2012: 245%).
Movestic generated 7.9m of Embedded Value in the nine months ended 30 September 2012 (nine months ended 30 September 2011: loss of (20.5)m),with the recovery in Swedish equity markets more than compensating for continuing challenging operating conditions.
Shareholder equity on EEV basis (pre interim dividend payment of 7.0m on 15 October 2012) at 30 September 2012 of 2.66p per share (31 December 2011: 2.56p per share)
Acquisition opportunities continue to be examined.
