Notes J-L

J: Dividends

Download as excel file

2013 2012
Dividends per share (in pence) Half year Half year Full year
Dividends relating to reporting period:  
Interim dividend (2013 and 2012) 9.73p 8.40p 8.40p
Final dividend (2012) 20.79p
Total 9.73p 8.40p 29.19p
Dividends declared and paid in reporting period:  
Current year interim dividend 8.40p
Final dividend for prior year 20.79p 17.24p 17.24p
Total 20.79p 17.24p 25.64p

Dividend per share

Interim dividends are recorded in the period in which they are paid. Final dividends are recorded in the period in which they are approved by shareholders. The final dividend for the year ended 31 December 2012 of 20.79 pence per ordinary share was paid to eligible shareholders on 23 May 2013.

The 2013 interim dividend of 9.73 pence per ordinary share will be paid on 26 September 2013 in sterling to shareholders on the principal register and the Irish branch register at 6.00pm BST on Friday, 23 August 2013 (Record Date), and in Hong Kong dollars to shareholders on the Hong Kong branch register at 4.30pm Hong Kong time on the Record Date (HK Shareholders). Holders of US American Depositary Receipts (US Shareholders) will be paid their dividends in US dollars on or about 4 October 2013. The interim dividend will be paid on or about 3 October 2013 in Singapore dollars to shareholders with shares standing to the credit of their securities accounts with The Central Depository (Pte.) Limited (CDP) at 5.00pm Singapore time on the Record Date (SG Shareholders). The dividend payable to the HK Shareholders will be translated using the exchange rate quoted by the WM Company at the close of business on 9 August 2013. The exchange rate at which the dividend payable to the SG Shareholders will be translated into SG$, will be determined by CDP. The dividend will distribute an estimated £249 million of shareholders’ funds.

Shareholders on the principal register and Irish branch register will be able to participate in a Dividend Reinvestment Plan.

K: Statement of financial position – analysis of Group position by segment and business type

i Group statement of financial position analysis

To explain more comprehensively the assets, liabilities and capital of the Group’s businesses, it is appropriate to provide analyses of the Group’s statement of financial position by operating segment and type of business.

Download as excel file

2013 £m 2012* £m
By operating segment Insurance operations Total
insurance
operations
  Asset
manage-
ment
operations
Unallo-
cated to a
segment
(central
operations)
Intra-
group
elimina-
tions
  30 Jun
Group
Total
30 Jun
Group
Total
31 Dec
Group
Total
UK US Asia

* The 2012 comparative results have been adjusted retrospectively from those previously published for the application of the new accounting standards described in note B.

Assets                    
Intangible assets attributable to shareholders:                    
Goodwillnote M 244 244   1,230   1,474 1,467 1,469
Deferred acquisition costs
and other intangible assetsnote N
98 4,300 1,103 5,501   15 22   5,538 4,237 4,177
Total 98 4,300 1,347 5,745   1,245 22   7,012 5,704 5,646
Intangible assets attributable to with-profits funds:                    
In respect of acquired
subsidiaries for venture fund and other investment purposes
178 178     178 178 178
Deferred acquisition costs
and other intangible assets
6 73 79     79 84 78
Total 184 73 257     257 262 256
Total intangible assets 282 4,300 1,420 6,002   1,245 22   7,269 5,966 5,902
Deferred tax assetsnote H 181 2,232 68 2,481   118 38   2,637 2,169 2,306
Other non-investment and non-cash assetsnote (i) 5,641 7,255 1,164 14,060   1,995 4,060 (6,808)   13,307 7,257 11,952
Investment of long-term business and other operations:                    
Investment properties 10,551 30 2 10,583     10,583 10,532 10,554
Investments in joint
ventures and associates accounted for using the equity method
274 328 602   94   696 587 635
Financial investments:                    
Loansnote P 4,313 6,691 1,004 12,008   1,222   13,230 10,800 12,743
Equity securities and
portfolio holdings in unit trusts
37,713 60,385 14,101 112,199   59   112,258 89,098 98,626
Debt securities
note Q
82,854 33,368 20,081 136,303   1,953   138,256 127,349 138,907
Other investments 4,098 1,867 76 6,041   69 30   6,140 7,828 7,547
Deposits 12,365 1,141 13,506   36   13,542 11,951 12,248
Total investments 152,168 102,341 36,733 291,242   3,433 30   294,705 258,145 281,260
Assets held for salenote AB 1,079 1,079     1,079 98
Cash and cash equivalents 2,755 678 1,644 5,077   968 795   6,840 6,335 6,126
Total assets 161,027 116,806 42,108 319,941   7,759 4,945 (6,808)   325,837 279,872 307,644

Download as excel file

2013 £m 2012* £m
By operating segment Insurance operations Total
insurance
operations
  Asset
manage-
ment
operations
Unallo-
cated to a
segment
(central
operations)
Intra-
group
elimina-
tions
  30 Jun
Group
Total
30 Jun
Group
Total
31 Dec
Group
Total
UK US Asia

* The 2012 comparative results have been adjusted retrospectively from those previously published for the application of the new accounting standards described in note B.

Notes

  1. Of the other non-investment and non-cash assets of £13,307 million (30 June 2012: £ 7,257 million; 31 December 2012: £11,952 million) the principal component comprises reinsurers' share of contract liabilities of £7,204 million (30 June 2012 £1,698 million; 31 December 2012: £6,854 million). As set out in note L(ii) this primarily relates to US insurance operation's acquisition of the REALIC business.

    Within other non-investment and non-cash assets are premiums receivable of £310 million (30 June 2012: £257 million; 31 December 2012: £304 million) of which approximately two-thirds are due within one year. The remaining one-third, due aft er one year, relates to products where charges are levied against premiums in future years.

    Also included within other non-investment and non-cash assets are property, plant and equipment of £868 million (30 June 2012: £787 million; 31 December 2012: £754 million). The Group made additions to property, plant and equipment of £146 million in the half year ended 30 June 2013 (half year 2012: £119 million; full year 2012: £139 million).
  2. Within other non-insurance liabilities are other creditors of £3,743 million (30 June 2012: £2,955 million; 31 December 2012: £2,701 million) of which £3,487 million (30 June 2012: £2,649 million; 31 December 2012: £2,447 million) are due within one year.
Equity and liabilities                    
Equity                    
Shareholders’ equity 3,044 3,598 3,003 9,645   2,085 (2,105)   9,625 9,292 10,359
Non-controlling interests 2 4 6     6 34 5
Total equity 3,046 3,598 3,007 9,651   2,085 (2,105)   9,631 9,326 10,364
Liabilities                    
Policyholder liabilities and unallocated surplus of with-profits funds:                    
Contract liabilities
(including amounts in respect of contracts classified as investment contracts under IFRS 4)note V
133,290 106,215 33,223 272,728     272,728 233,507 257,674
Unallocated surplus of
with-profits fundsnote V
11,350 84 11,434     11,434 9,802 10,589
Total policyholder liabilities and unallocated surplus of with-profits funds 144,640 106,215 33,307 284,162     284,162 243,309 268,263
Core structural borrowings of shareholder-financed operations:                    
Subordinated debt   3,161   3,161 2,638 2,577
Other 164 164   275 549   988 958 977
Totalnote S 164 164   275 3,710   4,149 3,596 3,554
Operational borrowings attributable to shareholder-financed operationsnote T 76 23 5 104   4 2,422   2,530 2,794 2,245
Borrowings attributable to with-profits operationsnote T 924 924     924 895 968
Deferred tax liabilitiesnote H 1,278 2,155 641 4,074   17 11   4,102 3,909 3,964
Other non-insurance liabilitiesnote (ii) 11,063 4,651 4,122 19,836   5,378 907 (6,808)   19,313 16,043 18,286
Liabilities held for salenote AB 1,026 1,026     1,026
Total liabilities 157,981 113,208 39,101 310,290   5,674 7,050 (6,808)   316,206 270,546 297,280
Total equity and liabilities 161,027 116,806 42,108 319,941   7,759 4,945 (6,808)   325,837 279,872 307,644

ii Group statement of financial position – additional analysis by business type

Download as excel file

2013 £m 2012* £m
    Shareholder-backed business            

Partici-
pating
funds
  Unit-
linked
and
variable
annuity
Non-
linked
business
Asset
manage-
ment
operations
Unallo-
cated to a
segment
(central
operations)
  Intra-
group
elimina-
tions
  30 Jun
Group
Total
30 Jun
Group
Total
31 Dec
Group
Total

* The 2012 comparative results have been adjusted retrospectively from those previously published for the application of the new accounting standards described in note B.

Assets                    
Intangible assets attributable to shareholders:                    
Goodwillnote M   244 1,230     1,474 1,467 1,469
Deferred acquisition costs and other
intangible assetsnote N
  5,501 15 22     5,538 4,237 4,177
Total   5,745 1,245 22     7,012 5,704 5,646
Intangible assets attributable to with-profits funds:                    
In respect of acquired subsidiaries
for venture fund and other investment purposes
178       178 178 178
Deferred acquisition costs and other
intangible assets
79       79 84 78
Total 257       257 262 256
Total intangible assets 257   5,745 1,245 22     7,269 5,966 5,902
Deferred tax assetsnote H 114   2 2,365 118 38     2,637 2,169 2,306
Other non-investment and non-cash assets 3,401   644 10,015 1,995 4,060   (6,808)   13,307 7,257 11,952
Investment of long-term business and other operations:                    
Investment properties 8,400   600 1,583     10,583 10,532 10,554
Investments in joint ventures and
associates accounted for using the equity method
209   393 94     696 587 635
Financial investments:                    
Loansnote P 3,566   8,442 1,222     13,230 10,800 12,743
Equity securities and portfolio
holdings in unit trusts
25,957   85,342 900 59     112,258 89,098 98,626
Debt securities
note Q
60,372   9,617 66,314 1,953     138,256 127,349 138,907
Other investments 3,836   25 2,180 69 30     6,140 7,828 7,547
Deposits 10,599   1,247 1,660 36     13,542 11,951 12,248
Total investments 112,939   96,831 81,472 3,433 30     294,705 258,145 281,260
Assets held for salenote AB   393 686     1,079 98
Cash and cash equivalents 1,769   1,240 2,068 968 795     6,840 6,335 6,126
Total assets 118,480   99,110 102,351 7,759 4,945   (6,808)   325,837 279,872 307,644

Download as excel file

2013 £m 2012* £m
    Shareholder-backed business            

Partici-
pating
funds
  Unit-
linked
and
variable
annuity
Non-
linked
business
Asset
manage-
ment
operations
Unallo-
cated to a
segment
(central
operations)
  Intra-
group
elimina-
tions
  30 Jun
Group
Total
30 Jun
Group
Total
31 Dec
Group
Total

* The 2012 comparative results have been adjusted retrospectively from those previously published for the application of the new accounting standards described in note B.

Equity and liabilities                    
Equity                    
Shareholders’ equity   9,645 2,085 (2,105)     9,625 9,292 10,359
Non-controlling interests 2   4     6 34 5
Total equity 2   9,649 2,085 (2,105)     9,631 9,326 10,364
Liabilities                    
Policyholder liabilities and unallocated surplus of with-profits funds:                    
Contract liabilities (including
amounts in respect of contracts classified as investment contracts under IFRS 4)note V
96,877   96,080 79,771     272,728 233,507 257,674
Unallocated surplus of with-profits
fundsnote V
11,434       11,434 9,802 10,589
Total policyholder liabilities and unallocated surplus of with-profits funds 108,311   96,080 79,771     284,162 243,309 268,263
Core structural borrowings of shareholder-financed operations:                    
Subordinated debt   3,161     3,161 2,638 2,577
Other   164 275 549     988 958 977
Totalnote S   164 275 3,710     4,149 3,596 3,554
Operational borrowings attributable to shareholder-financed operationsnote T   104 4 2,422     2,530 2,794 2,245
Borrowings attributable to with-profits operationsnote T 924       924 895 968
Deferred tax liabilitiesnote H 1,221   62 2,791 17 11     4,102 3,909 3,964
Other non-insurance liabilities 8,022   2,575 9,239 5,378 907   (6,808)   19,313 16,043 18,286
Liabilities held for salenote AB   393 633     1,026
Total liabilities 118,478   99,110 92,702 5,674 7,050   (6,808)   316,206 270,546 297,280
Total equity and liabilities 118,480   99,110 102,351 7,759 4,945   (6,808)   325,837 279,872 307,644

L: Statement of financial position – analysis of segment by business type

i UK insurance operations

Overview

  • In order to show the statement of financial position by reference to the differing degrees of policyholder and shareholder economic interest of the different types of fund and business, the analysis below is structured to show separately assets and liabilities of the Scottish Amicable Insurance Fund (SAIF), the Prudential Assurance Company Limited (PAC) with-profits sub-fund (WPSF), unit-linked assets and liabilities and annuity (principally PRIL) and other long-term business.
  • £97 billion of the £152 billion of investments are held by SAIF and the PAC WPSF. Shareholders are exposed only indirectly to value movements on these assets.

Download as excel file

2013 £m 2012* £m
        Other funds and subsidiaries    

By operating segment
Scottish
Amicable
Insurance
Fund
note (iii)
  PAC with-
profits
fund
notes (i), (ii)
  Unit-
linked
assets
and
liabilities
Annuity
and other
long-term
business
Total   30 Jun
Total
30 Jun
Total
31 Dec
Total

* The 2012 comparative results have been adjusted retrospectively from those previously published for the application of the new accounting standards described in note B.

Assets                  
Intangible assets attributable to shareholders:                  
Deferred acquisition costs and other
intangible assets
    98 98   98 109 105
Total     98 98   98 109 105
Intangible assets attributable to with-profits funds:                  
In respect of acquired subsidiaries for
investment purposes
  178     178 178 178
Deferred acquisition costs   6     6 6 6
Total   184     184 184 184
Total intangible assets   184   98 98   282 293 289
Deferred tax assets 1   113   67 67   181 243 183
Other non-investment and non-cash assets 468   2,604   489 2,080 2,569   5,641 5,443 5,448
Investments of long-term business and other operations:                  
Investment properties 453   7,947   600 1,551 2,151   10,551 10,501 10,528
Investments in joint ventures and associates
accounted for using the equity method
  209   65 65   274 236 259
Financial investments:                  
Loansnote P 114   2,866   1,333 1,333   4,313 4,265 4,303
Equity securities and portfolio holdings
in unit trusts
2,048   20,435   15,187 43 15,230   37,713 34,090 36,281
Debt securitiesnote Q 3,605   45,737   6,944 26,568 33,512   82,854 80,049 84,008
Other investments
note (iv)
283   3,511   4 300 304   4,098 4,418 4,256
Deposits 814   9,385   801 1,365 2,166   12,365 11,105 11,131
Total investments 7,317   90,090   23,536 31,225 54,761   152,168 144,664 150,766
Properties held for sale       98
Cash and cash equivalents 132   1,180   890 553 1,443   2,755 2,593 2,668
Total assets 7,918   94,171   24,915 34,023 58,938   161,027 153,236 159,452

Download as excel file

2013 £m 2012* £m
        Other funds and subsidiaries    

By operating segment
Scottish
Amicable
Insurance
Fund
note (iii)
  PAC with-
profits
fund
notes (i), (ii)
  Unit-
linked
assets
and
liabilities
Annuity
and other
long-term
business
Total   30 Jun
Total
30 Jun
Total
31 Dec
Total

* The 2012 comparative results have been adjusted from those previously published for the retrospective application of the new and amended accounting standards described in note B.

Notes

  1. The WPSF mainly contains with-profits business but it also contains some non-profit business (unit-linked, term assurances and annuities). The WPSF's profits are apportioned 90 per cent to its policyholders and 10 per cent to shareholders as surplus for distribution is determined via the annual actuarial valuation. For the purposes of this table and subsequent explanation, references to the WPSF also include, for convenience, the amounts attaching to the Defined Charges Participating Sub-fund which comprises 3.4 per cent of the total assets of the WPSF and includes the with-profits annuity business transferred to Prudential from the Equitable Life Assurance Society on 1 December 2007 (with assets of approximately £1.7 billion). Profits to shareholders on this with-profits annuity business emerge on a 'charges less expenses' basis and policyholders are entitled to 100 per cent of the investment earnings. Included in the PAC with-profits fund is £13.5 billion (2012: £13.3 billion) of non-profits annuities liabilities.
  2. Excluding policyholder liabilities of the Hong Kong branch of PAC.
  3. The fund is solely for the benefit of policyholders of SAIF. Shareholders have no interest in the profits of this fund although they are entitled to asset management fees on this business. SAIF is a separate sub-fund within the PAC long-term business fund.
  4. Other investments comprise:

    Download as excel file

    2013 £m 2012* £m
    30 Jun 30 Jun 31 Dec

    * The 2012 comparative results have been adjusted from those previously published for the retrospective application of the new and amended accounting standards described in note B.

    † After including derivative liabilities of £1,289 million (30 June 2012: £1,340 million; 31 December 2012: £1,010 million), which are also included in the statement of financial position, the overall derivative position was a net liability of £395 million (30 June 2012: net liability of £22 million; 31 December 2012: net asset of £339 million).

    ‡ Partnerships in investment pools and other comprise mainly investments held by the PAC with-profits fund. These investments are primarily investments in limited partnerships and additionally investments in property funds.

    Derivative assets 894 1,318 1,349
    Partnerships in investment pools and other 3,204 3,100 2,907
    4,098 4,418 4,256
Equity and liabilities                  
Equity                  
Shareholders’ equity     3,044 3,044   3,044 2,722 3,033
Non-controlling interests   2     2 29 1
Total equity   2   3,044 3,044   3,046 2,751 3,034
Liabilities                  
Policyholder liabilities and unallocated surplus of with-profits funds:                  
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)note V 7,445   75,775   23,243 26,827 50,070   133,290 128,387 133,912
Unallocated surplus of with-profits funds (reflecting application of ‘realistic’ basis provisions for UK regulated with-profits funds)note V   11,350     11,350 9,750 10,526
Total 7,445   87,125   23,243 26,827 50,070   144,640 138,137 144,438
Operational borrowings attributable to shareholder-financed operations     76 76   76 42 127
Borrowings attributable to with-profits funds 11   913     924 895 968
Deferred tax liabilities 51   945   2 291 293   1,289 1,258 1,185
Other non-insurance liabilities 411   5,186   1,670 3,785 5,455   11,052 10,153 9,700
Total liabilities 7,918   94,169   24,915 30,979 55,894   157,981 150,485 156,418
Total equity and liabilities 7,918   94,171   24,915 34,023 58,938   161,027 153,236 159,452

ii US insurance operations

Download as excel file

2013 £m 2012 £m
  Variable
annuity
separate
account
assets and
liabilities
note (i)
Fixed annuity,
GIC and other
business
note (i)
30 Jun
Total*
30 Jun
Total
31 Dec
Total*

* The statements of financial position at 30 June 2013 and 31 December 2012 include the assets and liabilities of the acquired REALIC business. See note X(b).

Notes

  1. Assets and liabilities attaching to variable annuity business that are not held in the separate account are shown within other business.
  2. Other investments comprise:

    Download as excel file

    2013 £m 2012 £m
    30 Jun 30 Jun 31 Dec

    † In the US, Prudential uses derivatives to reduce interest rate risk, to facilitate efficient portfolio management to match liabilities under annuity policies and for certain equity-based product management activities. After taking account of derivative liabilities of £555 million (30 June 2012: £1,046 million; 31 December 2012: £645 million), which are also included in the statement of financial position, the overall derivative position is a net asset of £455 million (30 June 2012: net asset of £820 million; 31 December 2012: net asset of £901 million).

    ‡ Partnerships in investment pools and other comprise primarily investments in limited partnerships. These include interests in the PPM America Private Equity Fund and diversified investments in other partnerships by independent money managers that generally invest in various equities and fixed income loans and securities.

    Derivative assets 1,010 1,866 1,546
    Partnerships in investment pools and other 857 768 750
    1,867 2,634 2,296
  3. Changes in shareholders' equity

    Download as excel file

    2013 £m 2012 £m
    30 Jun 30 Jun 31 Dec
    Short-term fluctuations in investment returnsnote F (441) (125) (90)
    Amortisation of acquisition accounting adjustments arising on the purchase of REALIC (27) (19)
    Profit before shareholder tax 114 317 855
    Taxnote H (27) (71) (234)
    Profit for the period 87 246 621

    Download as excel file

    2013 £m 2012 £m
    30 Jun 30 Jun 31 Dec
    Profit for the period (as above) 87 246 621
    Items recognised in other comprehensive income:  
    Exchange movements 293 (34) (181)
    Unrealised valuation movements on securities classified as available-for-sale:  
    Unrealised holding (losses) gains arising during the period (1,665) 470 930
    Deduct net (gains)/add back net losses included in income statement (42) 12 (68)
    Total unrealised valuation movements (1,707) 482 862
    Related change in amortisation of deferred income and acquisition costsnote N 419 (181) (270)
    Related tax 451 (105) (205)
    Total other comprehensive (loss) income (544) 162 206
    Total comprehensive (loss) income for the period (457) 408 827
    Dividends, interest payments to central companies and other movements (288) (250) (245)
    Net (decrease) increase in equity (745) 158 582
    Shareholders’ equity at beginning of period 4,343 3,761 3,761
    Shareholders’ equity at end of period 3,598 3,919 4,343
  4. Equity securities and portfolio holdings in unit trusts includes investments in mutual funds, the majority of which are equity based.
  5. Reinsurance balances relating to REALIC
    Included within other non-investment and non-cash assets of £7,255 million (full year 2012: £6,792 million) were balances of £6,360 million (full year 2012: £6,076 million) for reinsurers' share of insurance contract liabilities. Of the £6,360 million as at 30 June 2013 (31 December 2012: £6,076 million) £5,550 million (31 December 2012: £5,234 million) related to the reinsurance ceded by the newly acquired REALIC business. REALIC holds collateral for certain of these reinsurance arrangements with a corresponding funds withheld liability. As of 30 June 2013, the funds withheld liability of £2,206 million (31 December 2012: £2,021 million) was recorded within other non-insurance liabilities.
Assets      
Intangible assets attributable to shareholders:      
Deferred acquisition costs and other intangibles 4,300 4,300 3,203 3,222
Total 4,300 4,300 3,203 3,222
Deferred tax assets 2,232 2,232 1,633 1,889
Other non-investment and non-cash assetsnote (v) 7,255 7,255 1,536 6,792
Investments of long-term business and other operations:    
Investment properties 30 30 25 24
Financial investments:      
Loansnote P 6,691 6,691 4,168 6,235
Equity securities and portfolio holdings in unit trustsnote (iv) 60,054 331 60,385 43,874 49,551
Debt securitiesnotes Q, R 33,368 33,368 27,061 32,993
Other investmentsnote (ii) 1,867 1,867 2,634 2,296
Deposits 228 211
Total investments 60,054 42,287 102,341 77,990 91,310
Cash and cash equivalents 678 678 293 513
Total assets 60,054 56,752 116,806 84,655 103,726
Equity and liabilities      
Equity      
Shareholders’ equitynote (iii) 3,598 3,598 3,919 4,343
Total equity 3,598 3,598 3,919 4,343
Liabilities      
Policyholder:      
Contract liabilities (including amounts in respect
of contracts classified as investment contracts under IFRS 4)note V
60,054 46,161 106,215 75,264 92,261
Total 60,054 46,161 106,215 75,264 92,261
Core structural borrowings of shareholder-financed operationsnote S 164 164 159 153
Operational borrowings attributable to shareholder-financed operations 23 23 91 26
Deferred tax liabilities 2,155 2,155 2,069 2,168
Other non-insurance liabilitiesnote (v) 4,651 4,651 3,153 4,775
Total liabilities 60,054 53,154 113,208 80,736 99,383
Total equity and liabilities 60,054 56,752 116,806 84,655 103,726

iii Asia insurance operations

Download as excel file

2013 £m 2012* £m
  With-profits
business
note (i)
Unit-linked
assets and
liabilities
Other 30 Jun
Total
30 Jun
Total
31 Dec
Total

* The 2012 comparative results have been adjusted from those previously published for the retrospective application of the new and amended accounting standards described in note B.

Notes

  1. The statement of financial position for with-profits business comprises the with-profits assets and liabilities of the Hong Kong, Malaysia and Singapore with-profits operations. Assets and liabilities of other participating business are included in the column for 'Other business'.
  2. For the purposes of the presentation of unallocated surplus of with-profits within the statement of financial position, the Hong Kong branch balance is reported within the unallocated surplus of the PAC with-profits sub-fund of the UK insurance operations.
Assets        
Intangible assets attributable to shareholders:        
Goodwill 244 244 237 239
Deferred acquisition costs and other intangible assets 1,103 1,103 892 819
Total 1,347 1,347 1,129 1,058
Intangible assets attributable to with-profits funds:        
Deferred acquisition costs and other intangible assets 73 73 78 72
Deferred tax assets 2 66 68 86 76
Other non-investment and non-cash assets 329 155 680 1,164 970 1,023
Investments of long-term business and other operations:        
Investment properties 2 2 6 2
Investments accounted for using the equity method 328 328 259 284
Financial investments:        
Loansnote P 586 418 1,004 1,160 1,006
Equity securities and portfolio holdings in unit trusts 3,474 10,101 526 14,101 11,060 12,730
Debt securitiesnote Q 11,030 2,673 6,378 20,081 18,372 20,067
Other investments 42 21 13 76 669 927
Deposits 400 446 295 1,141 594 851
Total investments 15,532 13,241 7,960 36,733 32,120 35,867
Assets held for salenote AB 393 686 1,079
Cash and cash equivalents 457 350 837 1,644 1,797 1,545
Total assets 16,391 14,141 11,576 42,108 36,180 39,641
Equity and liabilities        
Equity        
Shareholders’ equity 3,003 3,003 2,403 2,529
Non-controlling interests 4 4 5 4
Total equity 3,007 3,007 2,408 2,533
Liabilities        
Policyholder liabilities and unallocated surplus of with-profits funds:        
Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4)note V 13,657 12,783 6,783 33,223 29,856 31,501
Unallocated surplus of with-profits fundsnotes (ii), V 84 84 52 63
Total 13,741 12,783 6,783 33,307 29,908 31,564
Operational borrowings attributable to shareholder-financed operations 5 5 93 7
Deferred tax liabilities 425 62 154 641 546 582
Other non-insurance liabilities 2,225 903 994 4,122 3,225 4,955
Liabilities held for salenote AB 393 633 1,026
Total liabilities 16,391 14,141 8,569 39,101 33,772 37,108
Total equity and liabilities 16,391 14,141 11,576 42,108 36,180 39,641

iv Asset management operations

Download as excel file

2013 £m 2012* £m
  M&G
note (i)
US Eastspring
Investments
30 Jun
Total
30 Jun
Total
31 Dec
Total

* The 2012 comparative results have been adjusted from those previously published for the retrospective application of the new and amended accounting standards described in note B.

Notes

  1. The M&G statement of financial position includes the assets and liabilities in respect of Prudential Capital.
  2. Intra-group debt represented by operational borrowings at Group level
    Operational borrowings for M&G are in respect of Prudential Capital's short-term fixed income security programme and comprise:

    Download as excel file

    2013 £m 2012 £m
    30 Jun 30 Jun 31 Dec
    Commercial paper 2,123 2,318 1,535
    Medium term notes 299 250 549
    Total intra-group debt represented by operational borrowings at Group level 2,422 2,568 2,084
  3. Other non-insurance liabilities consists primarily of intra-group balances, derivative liabilities and other creditors.
Assets        
Intangible assets:        
Goodwillnote M 1,153 16 61 1,230 1,230 1,230
Deferred acquisition costs 12 2 1 15 14 13
Total intangible assets 1,165 18 62 1,245 1,244 1,243
Other non-investment and non-cash assets 1,844 198 71 2,113 1,198 1,142
Investments accounted for using the equity method 37 57 94 92 92
Financial investments:        
Loansnote P 1,222 1,222 1,207 1,199
Equity securities and portfolio holdings in unit trusts 45 14 59 74 64
Debt securitiesnote Q 1,953 1,953 1,867 1,839
Other investments 56 13 69 56 41
Deposits 16 20 36 24 55
Total investments 3,313 29 91 3,433 3,320 3,290
Cash and cash equivalents 793 53 122 968 1,269 918
Total assets 7,115 298 346 7,759 7,031 6,593
Equity and liabilities        
Equity        
Shareholders’ equity 1,664 143 278 2,085 1,888 1,937
Total equity 1,664 143 278 2,085 1,888 1,937
Liabilities        
Core structural borrowing of shareholder-financed operations
note S
275 275 250 275
Intra-group debt represented by operational borrowings at Group levelnotes (ii), T 2,422 2,422 2,568 2,084
Other non-insurance liabilitiesnote (iii) 2,754 155 68 2,977 2,325 2,297
Total liabilities 5,451 155 68 5,674 5,143 4,656
Total equity and liabilities 7,115 298 346 7,759 7,031 6,593
 
 

Reporting tools

Save pages of the report
to download, print or email

View your pages

Feedback

Your comments and ideas help us
to shape future reports to suit your needs

Tell us your views