| Holding Companies' cash inflows |
£335 million (Pro forma FY09: £716 million) |
| Recurring cash generation has remained strong in the period at £305 million and for the full year is now expected to be at the top of our target of £400 million to £500 million per annum range, before management actions. |
| Our management actions have generated cash flows of £30m in the first half of 2010. We are confident that we are on track to deliver our full year accelerated cash flow target from management actions of £225 million as our well progressed activities complete. |
| IGD capital surplus (estimated) |
£1.3 billion (31 December 2009: £1.2 billion) |
The estimated IGD surplus remains robust with capital generation items of £0.2 billion offsetting dividend and debt financing costs and repayments of £0.1 billion in the first half of 2010. This represents a coverage percentage of
135 percent and headroom of £0.4 billion over our ongoing target. |
| Group MCEV |
£1,962 million (31 December 2009: £1,827 million) |
| Group MCEV of £1,962 million, an increase of £135 million on the 2009 year end, reflects the benefit of management actions and strong investment returns despite continued market volatility. We have delivered £116 million incremental embedded value growth in 2010 and are on track to achieve our remaining target for 2010 of £29 million. |
| Group IFRS operating profit |
£176 million (Pro forma HY09: £30 million) |
| Strong Group IFRS operating profit of £176 million, which represents an increase of £146 million on the pro forma comparative period with both our operating segments reporting good results. |
| Interim dividend per share |
21 pence per share |
| Proposed interim dividend per share of 21 pence*. A scrip dividend option will be available to shareholders. |
|
| Assets under management |
£68.6 billion (31 December 2009: £66.9 billion) |
| IFRS asset management operating profit |
£22 million (Pro forma HY09: £16 million) |
| The increase in assets under management includes £2.8 billion of assets brought in-house from a third party asset manager. The underlying position was stable despite market uncertainty and the run-off of the internal funds managed by Ignis. |
| IFRS asset management operating profit improved by £6 million on the pro forma comparative period to £22 million. |
Pro forma information
Phoenix Group Holdings was formed as a non-operating special purpose acquisition company in 2008. In the third quarter of 2009 it acquired a group of businesses that specialise in the consolidation and management of closed life and pension funds referred to as the Pearl businesses.
The Interim Report for 2010 includes the consolidated results of Phoenix Group Holdings and its subsidiaries (the Pearl businesses) for the half years ended 30 June 2010 and 30 June 2009 and for the year ended 31 December 2009 presented in accordance with IFRS. The results of the Pearl businesses are included from 28 August 2009, the IFRS date of acquisition.
To assist users and give shareholders a basis for future comparison, the Directors have provided additional financial information on a pro forma basis. This information includes for the half year ended 30 June 2009 the Pearl businesses for the period from 1 January 2009 to 30 June 2009 in addition to the consolidated results of Phoenix Group Holdings from 1 January 2009 to 30 June 2009 and for the year ended 31 December 2009 the Pearl businesses from 1 January 2009 to 27 August 2009 in addition to the consolidated results of Phoenix Group Holdings from 1 January 2009 to 31 December 2009.
Pro forma information is separately referenced throughout the Interim Report.