Part 2 - Prelims Financial St

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Old Mutual Limited NPV (DI) (OMU)

UK 100

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£m
Notes		Year ended 31 December 2008	Year ended 31 December 2007 Restated*
Revenue
Gross earned premiums	3(iii)	5,156	5,566
Outward reinsurance		(335)	(293)
Net earned premiums		4,821	5,273
Investment return (non-banking)		(11,578)	6,318
Banking interest and similar income		4,059	3,190
Banking trading, investment and similar income		162	170
Fee and commission income, and income from service activities		2,313	2,475
Other income		270	245
Total revenues		47	17,671
Expenses
Claims and benefits (including change in insurance contract provisions)		(3,610)	(7,193)
Reinsurance recoveries		262	236
Net claims and benefits incurred		(3,348)	(6,957)
Change in investment contract liabilities		10,051	(2,618)
Losses on loans and advances		(319)	(157)
Finance costs		392	(50)
Banking interest payable and similar expenses		(2,853)	(2,053)
Fee and commission expenses, and other acquisition costs		(937)	(778)
Other operating and administrative expenses		(2,834)	(2,813)
Goodwill impairment	4(ii)	(74)	(3)
Change in third party interest in consolidated funds		779	(156)
Amortisation of PVIF and other acquired intangibles	4(ii)	(361)	(360)
Total expenses		496	(15,945)

Share of associated undertakings' loss after tax		(1)	(1)
Profit on disposal of subsidiaries, associated undertakings and strategic investments	4(iii)	53	25
Profit before tax		595	1,750
Income tax credit/(expense)	5(i)	88	(504)
Profit after tax for the financial year		683	1,246
Profit for the financial year attributable to:
Equity holders of the parent		441	972
Minority interests
Ordinary shares	6(i)	188	224
Preferred securities	6(ii)	54	50
Profit after tax for the financial year		683	1,246
Earnings per share
Basic earnings per ordinary share (pence)	7(i)	8.6	19.2
Diluted earnings per ordinary share (pence)	7(i)	8.1	18.1
Weighted average number of shares - millions		4,755	4,894

Reconciliation of adjusted operating profit to profit after tax £m
	Notes	Year ended 31 December 2008	Year ended 31 December 2007 Restated*
Europe	3(ii)	266	268
South Africa	3(ii)	1,191	1,254
United States	3(ii)	(270)	260
Other	3(ii)	(17)	2
		1,170	1,784
Finance costs		(140)	(119)
Other shareholders' expenses		(31)	(41)
Adjusted operating profit2 before tax		999	1,624
Adjusting items	4(i)	(168)	66
Profit for the financial year before tax (excluding policyholder tax)		831	1,690
Income tax attributable to policyholder returns	3(ii)	(236)	60
Profit for the financial year before tax		595	1,750
Total income tax expense	5(i)	88	(504)
Profit after tax for the financial year		683	1,246

£m
Notes		Year ended 31 December 2008	Year ended 31 December 2007 Restated
Adjusted operating profit2 before tax		999	1,624
Tax on adjusted operating profit	5(iii)	(86)	(418)
Adjusted operating profit2 after tax		913	1,206
Minority interest - ordinary shares	6(iii)	(218)	(242)
Minority interest - preferred securities	6(ii)	(54)	(50)
Adjusted operating profit2 after tax attributable to ordinary equity holders		641	914
Adjusted weighted average number of shares - (millions)	7(i)	5,230	5,411
Adjusted operating earnings per share3 - (pence)	7(ii)	12.2	16.9

£m
	Notes	At 31 December 2008	At 31 December 2007
Assets
Goodwill and other intangible assets		5,882	5,459
Mandatory reserve deposits with central banks		734	615
Property, plant and equipment		682	608
Investment property		1,478	1,479
Deferred tax assets		1,590	683
Investments in associated undertakings and joint ventures		111	81
Deferred acquisition costs		3,199	2,253
Reinsurers' share of long-term business policyholder liabilities		1,148	1,394
Reinsurers' share of general insurance liabilities		115	-
Deposits held with reinsurers		164	213
Loans and advances		35,745	30,687
Investments and securities		83,522	89,627
Current tax receivable		118	83
Client indebtedness for acceptances		220	165
Other assets		3,137	2,774
Derivative financial instruments - assets		4,633	1,527
Cash and cash equivalents		2,862	3,469
Non-current assets held-for-sale		7	1,623
Total assets		145,347	142,740
Liabilities
Long-term business policyholder liabilities		81,269	84,251
General insurance liabilities		344	-
Third party interests in consolidated funds		2,591	3,547
Borrowed funds	8	2,295	2,353
Provisions	9	477	499
Deferred revenue		598	462
Deferred tax liabilities		1,452	1,413
Current tax payable		219	320
Other liabilities		3,733	6,180
Liabilities under acceptances		220	165
Amounts owed to bank depositors		38,171	31,817
Derivative financial instruments - liabilities		4,395	1,716
Non-current liabilities held-for-sale		6	420
Total liabilities		135,770	133,143
Net assets		9,577	9,597
Shareholders' equity
Equity attributable to equity holders of the parent		7,737	7,961
Minority interests
Ordinary shares		1,147	933
Preferred securities		693	703
Total minority interests		1,840	1,636
Total equity		9,577	9,597

£m
	Year ended 31 December 2008	Year ended 31 December 2007
Cash flows from operating activities
Profit before tax	595	1,750

Capital losses/(gains) included in investment income	14,183	(1,836)
Loss on disposal of property, plant and equipment	3	4
Depreciation of property, plant and equipment	74	73
Amortisation and impairment of goodwill and other intangible assets	504	403
Impairment of loans and receivables	320	183
Share-based payment expense	21	15
Share of associated undertakings' loss after tax	1	(1)
Profit arising on disposal of subsidiaries, associated undertakings and strategic investments	(53)	(25)
Other non-cash amounts in profit	(397)	29
Non-cash movements in profit before tax	14,656	(1,155)
Reinsurers' share of long-term business policyholder liabilities	486	(53)
Reinsurers' share of general insurance liabilities	(49)	-
Deferred acquisition costs	(370)	(482)
Loans and advances	(5,206)	(5,339)
Insurance liabilities	282	1,962
Investment contracts	(10,260)	4,124
Amounts owed to bank depositors	6,110	4,647
Other operating assets and liabilities	(4,242)	(491)
Changes in working capital	(13,249)	4,368
Taxation paid	(458)	(563)
Net cash inflow from operating activities	1,544	4,400
Cash flows from investing activities
Net acquisitions of financial investments	(1,170)	(3,896)
Net acquisition of investment properties	(7)	(26)
Net acquisition of property, plant and equipment	(110)	(186)
Net acquisition of intangible assets	(18)	(67)
Acquisition of interests in subsidiaries	(93)	(278)
Disposal of interests in subsidiaries, associated undertakings and strategic investments	1,138	106
Net cash outflow from investing activities	(260)	(4,347)
Cash flows from financing activities
Dividends paid to:
Equity holders of the Company	(352)	(333)
Equity minority interests and preferred security interests	(208)	(205)
Interest paid (excluding banking interest paid)	(87)	(83)
Proceeds from issue of ordinary shares (including by subsidiaries to minority interests)	31	70
Net sale of treasury shares	5	149
Shares repurchased in buyback programme	(175)	(177)
Net receipts from unclaimed shares trust	-	95
Issue of subordinated and other debt	374	699
Other debt repaid	(225)	(356)
Net cash outflow from financing activities	(637)	(141)

£m
	Year ended 31 December 2008	Year ended 31 December 2007
Net increase/(decrease) in cash and cash equivalents	647	(88)
Effects of exchange rate changes on cash and cash equivalents	399	50
Cash and cash equivalents at beginning of the year	3,596	3,634
Cash and cash equivalents at end of the year	4,642	3,596
Consisting of:
Coins and bank notes	221	211
Money at call and short notice	2,453	3,169
Balances with central banks (other than mandatory reserve deposits)	188	121
Cash and cash equivalents from non-current assets held-for-sale	-	(32)
Cash and cash equivalents	2,862	3,469
Mandatory reserve deposits with central banks	734	615
Short term cash balances held in policy holder funds	2,043	808
Cash and cash equivalents subject to consolidation of funds	(997)	(1,296)
Total	4,642	3,596
Other supplementary cash flow disclosures
Interest income received (including banking interest)	5,370	4,858
Dividend income received	493	388
Interest paid (including banking interest)	3,064	2,130

		Millions			£m
Year ended 31 December 2008	Notes	Number of shares issued and fully paid	Attributable to equity holders of the parent	Total minority interest	Total equity
Equity holders' funds at beginning of the year		5,510	7,961	1,636	9,597
Changes in equity arising in the year
Fair value gains/(losses):
Property revaluation		-	16	-	16
Net investment hedge		-	281	-	281
Available-for-sale investments:
Fair value losses		-	(1,635)	-	(1,635)
Recycled to the income statement		-	414	-	414
Shadow accounting		-	26	-	26
Currency translation differences/exchange differences on
translating foreign operations		-	419	10	429
Other movements		-	(23)	91	68
Aggregate tax effect of items taken directly to or transferred from equity		-	366	-	366
Net income recognised directly in equity		-	(136)	101	(35)
Profit after tax for the financial year		-	441	242	683
Total recognised income and expense for the year		-	305	343	648
Dividends for the year	10	-	(395)	(165)	(560)
Net sale of treasury shares		-	5	-	5
Shares repurchased in the buyback programme		-	(175)	-	(175)
Issue of ordinary share capital by the Company		-	5	-	5
Change in participation in subsidiaries		-	-	26	26
Exercise of share options		6	5	-	5
Fair value of equity settled share options		-	26	-	26
Equity holders' funds at end of the year		5,516	7,737	1,840	9,577

								£m
Year ended 31 December 2008	Notes	Share capital	Share premium	Other reserves	Translation reserve	Retained earnings	Perpetual preferred callable securities	Total
Attributable to equity holders of the
parent at beginning of the year		551	757	2,908	(304)	3,361	688	7,961
Changes in equity arising in the year:
Fair value gains/(losses):
Property revaluation		-	-	16	-	-	-	16
Net investment hedge		-	-	-	281	-	-	281
Available-for-sale investments:
Fair value losses		-	-	(1,635)	-	-	-	(1,635)
Recycled to income statement				414	-	-	-	414
Shadow accounting		-	-	26	-	-	-	26
Currency translation differences/exchange
differences on translating foreign operations		-	-	-	419	-	-	419
Other movements		-	-	8	3	(34)	-	(23)
Aggregate tax effect of items taken directly to
or transferred from equity		-	-	367	(13)	-	12	366
Net income recognised directly in equity		-	-	(804)	690	(34)	12	(136)
Profit for the financial year attributable to
equity holders of the parent		-	-	-	-	410	31	441
Total recognised income and expense for		-	-	(804)	690	376	43	305
the year
Dividends for the year	10	-	-	-	-	(352)	(43)	(395)
Net sale of treasury shares		-	-	-	-	5	-	5
Shares repurchased in the buyback
programme		-	-	-	-	(175)	-	(175)
Issue of ordinary share capital by the Company		-	5	-	-	-	-	5
Exercise of share options		1	4	-	-	-	-	5
Fair value of equity settled share options		-	-	26	-	-	-	26
Attributable to equity holders of the
parent at end of the year		552	766	2,130	386	3,215	688	7,737

£m
Other reserves	At 31 December 2008
Merger reserve	2,716
Available-for-sale reserve	(844)
Property revaluation reserve	85
Share-based payments reserve	171
Other reserves	2
Attributable to equity holders of the parent at end of the year	2,130

		Millions			£m
Year ended 31 December 2007	Notes	Number of shares issued and fully paid	Attributable to equity holders of the parent	Total minority Interest	Total equity
Equity holders' funds at beginning of the year		5,501	7,237	1,526	8,763
Changes in equity arising in the year
Fair value gains/(losses):
Property revaluation		-	95	1	96
Net investment hedge		-	(13)	-	(13)
Available-for-sale investments:
Fair value losses		-	(197)	-	(197)
Recycled to the income statement		-	36	-	36
Shadow accounting		-	25	-	25
Currency translation differences/exchange differences on
translating foreign operations		-	129	4	133
Other movements		-	(4)	-	(4)
Aggregate tax effect of items taken directly to or transferred
from equity		-	34	-	34
Net income recognised directly in equity		-	105	5	110
Profit after tax for the financial year		-	972	274	1,246
Total recognised income and expense for the year		-	1,077	279	1,356
Dividends for the year	10	-	(373)	(165)	(538)
Net sale of treasury shares		-	149	-	149
Shares repurchased in the buyback programme		-	(177)	-	(177)
Issue of ordinary share capital by the Company		-	3	-	3
Change in participation in subsidiaries		-	-	(4)	(4)
Exercise of share options		9	9	-	9
Fair value of equity settled share options		-	36	-	36
Equity holders' funds at end of the year		5,510	7,961	1,636	9,597

	Income statement (average rate)	Balance sheet (closing rate)
31 December 2008
Rand	15.2948	13.7194
US Dollars	1.8524	1.4575
Swedish Kronor	12.2209	11.4494
Euro	1.2594	1.0446
31 December 2007
Rand	14.1109	13.6043
US Dollars	2.0014	1.9827
Swedish Kronor	13.5253	12.8320
Euro	1.4602	1.3596

	Europe			South Africa
	UK	Nordic	ELAM	OMSA	Nedbank
Revenue
Gross earned premiums	131	92	92	1,587	-
Outward reinsurance	(78)	(4)	(8)	(45)	-
Net earned premiums	53	88	84	1,542	-
Investment return (non-banking)	(6,165)	(2,317)	(1,436)	(305)	-
Banking interest and similar income	-	266	-	-	3,793
Banking trading, investment and similar income	-	24	-	-	138
Fee and commission income, and income from service activities	667	184	316	185	533
Other income	14	20	2	97	85
Inter-segment revenues	104	104	29	227	19
Total revenues	(5,327)	(1,631)	(1,005)	1,746	4,568
Expenses
Claims and benefits (including change in insurance contract provisions)	(38)	(68)	(103)	(648)	-
Reinsurance recoveries	34	4	2	41	-
Net claims and benefits incurred	(4)	(64)	(101)	(607)	-
Change in investment contract liabilities	5,991	2,390	1,466	184	-
Losses on loans and advances	-	(4)	-	-	(315)
Finance costs	-	-	-	-	-
Banking interest payable and similar expenses	-	(183)	-	-	(2,684)
Fee and commission expenses, and other acquisition costs	(330)	(49)	(151)	(150)	-
Other operating and administrative expenses	(333)	(193)	(166)	(487)	(928)
Goodwill impairment	-	-	-	-	-
Change in third party interest in consolidated funds	-	-	-	-	-
Amortisation of PVIF and other acquired intangibles	-	-	-	-	-
Income tax attributable to policyholder returns	283	(52)	(1)	7	-
Inter-segment expenses	(113)	(126)	(31)	(177)	(71)
Total expenses	5,494	1,719	1,016	(1,230)	(3,998)
Share of associated undertakings' profit/(loss) after tax	-	-	-	6	5
Profit on disposal of subsidiaries, associated undertakings and strategic investments	-	-	-	-	-
Adjusted operating profit/(loss) before tax and minority interests	167	88	11	522	575
Tax expense	(56)	(11)	(14)	(155)	(123)
Minority interests	-	-	-	(5)	(227)
Adjusted operating profit/(loss) after tax and minority interests	111	77	(3)	362	225
Adjusting items net of tax and minority interests	55	(122)	(16)	104	29
Profit/(loss) after tax attributable to equity holders of the parent	166	(45)	(19)	466	254

		United States						£m
M & F	Rest of Africa	US Life	USAM	Other operating segments	Consolidation adjustments	Adjusted operating profit Total reportable segments	Adjusting items (Note 4)	IFRS Income statement

570	85	2,599	-	-	-	5,156	-	5,156
(91)	(2)	(107)	-	-	-	(335)	-	(335)
479	83	2,492	-	-	-	4,821		4,821
56	(14)	(332)	(3)	(13)	(713)	(11,242)	(336)	(11,578)
-	-	-	-	-	-	4,059	-	4,059
-	-	-	-	-	-	162	-	162
16	4	-	473	33	(1)	2,410	(97)	2,313
-	-	22	17	-	13	270	-	270
26	3	-	8	66	(586)	-	-	-
577	76	2,182	495	86	(1,287)	480	(433)	47

(401)	(52)	(2,300)	-	-	-	(3,610)	-	(3,610)
72	1	108	-	-	-	262	-	262
(329)	(51)	(2,192)	-	-	-	(3,348)	-	(3,348)
-	16	4	-	-	-	10,051	-	10,051
-	-	-	-	-	-	(319)	-	(319)
-	-	-	-	(140)	-	(140)	532	392
-	-	-	-	-	-	(2,867)	14	(2,853)
(101)	(6)	(264)	(10)	(10)	(44)	(1,115)	178	(937)
(59)	(10)	(84)	(388)	(75)	(34)	(2,757)	(77)	(2,834)
-	-	-	-	-	-	-	(74)	(74)
-	-	-	-	-	779	779	-	779
-	-	-	-	-	-	-	(361)	(361)
-	(1)	-	-	-	-	236	(236)	-
(12)	(6)	(13)	-	(37)	586	-	-	-
(501)	(58)	(2,549)	(398)	(262)	1,287	520	(24)	496
-	-	-	-	(12)	-	(1)	-	(1)
-	-	-	-	-	-	-	53	53
76	18	(367)	97	(188)	-	999	(404)	595
(17)	(2)	76	2	214	-	(86)	174	88
(19)	-	-	-	(21)	-	(272)	30	(242)
40	16	(291)	99	5	-	641	(200)	441
(49)	(13)	(569)	1	380	-	(200)
(9)	3	(860)	100	385	-	441

	Europe			South Africa
At 31 December 2008	UK	Nordic	ELAM	OMSA	Nedbank
Assets
Goodwill and other intangible assets	1,609	1,183	1,138	28	425
Goodwill	644	222	574	24	308
Present value of acquired in-force business	713	742	375	-	-
Software development	22	1	6	4	117
Other intangibles	230	218	183	-	-
Mandatory reserve deposits with central banks	-	-	-	-	734
Property, plant and equipment	23	4	17	254	316
Investment property	2	-	1	1,273	15
Deferred tax assets	166	78	51	65	25
Investments in associated undertakings and joint ventures	-	-	-	26	75
Deferred acquisition costs	639	34	315	102	2
Insurance contracts	24	2	25	-	-
Investment contracts	552	32	282	92	-
Asset management	63	-	8	10	2
Reinsurers' share of long-term business policyholder liabilities	607	13	5	6	9
Insurance contracts	42	10	3	6	9
Unit-linked investment contracts and similar contracts	551	-	-	-	-
Outstanding claims	14	3	2	-	-
Reinsurers' share of general insurance liabilities	-	-	-	-	-
Deposits held with reinsurers	-	121	-	-	-
Loans and advances	116	3,846	25	49	31,634
Policyholder loans	116	-	24	49	-
Other loans and advances	-	3,846	1	-	31,634
Investments and securities	27,167	7,595	5,389	21,700	5,043
Government and government-guaranteed securities	163	214	610	3,631	2,255
Listed other debt securities, preference shares and debentures	2	813	41	1,781	2,172
Unlisted other debt securities, preference shares and debentures	-	-	67	2,106	-
Listed equity securities	1	-	1	6,678	38
Unlisted equity securities	23	12	9	873	152
Listed pooled investments	638	155	11	283	426
Unlisted pooled investments	26,340	6,401	4,650	4,233	-
Short-term funds and securities treated as investments	-	-	-	2,114	-
Other securities	-	-	-	1	-
Current tax receivable	80	-	8	3	25
Client indebtedness for acceptances	-	-	-	-	220
Other assets	178	138	125	433	486
Derivative financial instruments - assets	-	-	-	1,614	1,627
Cash and cash equivalents	202	372	183	97	631
Non-current assets held-for-sale	-	-	-	7	-
Inter-segment assets	163	264	89	1,308	19
Total assets	30,952	13,648	7,346	26,965	41,286

		United States				£m
M& F	Rest of Africa	US Life	USAM	Other operating segments	Consolidation adjustments	Total reportable segments

-	593	18,122	-	-	-	81,269
-	238	16,630	-	-	-	28,106
-	137	-	-	-	-	45,161
-	-	1,434	-	-	-	1,965
-	218	-	-	-	-	5,646
-	-	58	-	-	-	391
344	-	-	-	-	-	344
-	-	-	-	-	2,591	2,591
-	-	-	-	1,097	-	2,295
-	-	-	-	556	-	557
-	-	-	-	-	-	104
-	-	-	-	541	-	1,634
21	2	-	3	84	-	477
8	1	-	-	8	-	598
-	1	-	-	-	-	489
-	-	-	-	8	-	101
8	-	-	-	-	-	8
2	-	578	-	12	-	1,452
2	1	4	8	39	-	219
71	5	276	299	165	465	3,733
-	-	-	-	-	-	220
-	-	-	-	-	-	38,171
-	-	-	-	124	1,103	4,395
-	-	-	-	-	-	6
(1)	5	4	1,452	1,379	(4,057)	-
447	607	18,984	1,762	2,908	102	135,770
241	85	333	402	(721)	-	9,577


193	85	333	365	(1,140)	-	7,737
48	-	-	37	419	-	1,840
48	-	-	37	(27)	-	1,147
-	-	-	-	446	-	693
241	85	333	402	(721)	-	9,577

		United States				£m
M&F	Rest of Africa	US Life	USAM	Other operating segments	Consolidation adjustments	Total reportable segments

29	4	137	1,305	24	-	5,882
10	4	-	1,271	24	-	3,081
-	-	120	-	-	-	1,950
19	-	17	1	-	-	187
-	-	-	33	-	-	664
-	-	-	-	-	-	734
24	13	1	26	4	-	682
-	8	-	-	-	179	1,478
8	-	1,036	158	3	-	1,590
-	-	-	-	10	-	111
15	3	2,041	40	8	-	3,199
15	-	2,041	-	-	-	2,107
-	3	-	-	-	-	961
-	-	-	40	8	-	131
-	-	508	-	-	-	1,148
-	-	480	-	-	-	550
-	-	-	-	-	-	551
-	-	28	-	-	-	47
115	-	-	-	-	-	115
3	-	40	-	-	-	164
2	10	62	-	1	-	35,745
-	10	61	-	-	-	260
2	-	1	-	1	-	35,485
322	626	13,960	177	88	1,455	83,522
-	64	97	-	-	1,942	8,976
1	9	7,555	-	-	1,695	14,069
2	7	2,690	-	-	175	5,047
67	253	-	-	-	7,938	14,976
5	11	118	-	-	-	1,203
36	128	2,093	135	-	1,310	5,215
-	-	18	42	-	(11,853)	29,831
211	150	1,389	-	-	125	3,989
-	4	-	-	88	123	216
-	-	-	-	2	-	118
-	-	-	-	-	-	220
68	10	1,041	139	100	419	3,137
-	-	57	-	226	1,109	4,633

		United States				£m
M&F	Rest of Africa	US Life	USAM	Other operating segments	Consolidation adjustments	Total reportable segments

-	4	184	959	31	-	5,459
-	4	57	932	31	-	2,629
-	-	116	-	-	-	2,008
-	-	11	10	-	-	162
-	-	-	17	-	-	660
-	-	-	-	-	-	615
-	13	1	17	7	-	608
-	8	-	-	-	359	1,479
-	-	327	106	5	-	683
-	-	-	-	(6)	-	81
-	3	1,398	24	13	-	2,253
-	-	1,398	-	-	-	1,422
-	3	-	-	-	-	717
-	-	-	24	13	-	114
-	1	662	-	-	-	1,394
-	1	646	-	-	-	727
-	-	-	-	-	-	636
-	-	16	-	-	-	31
-	-	30	-	-	-	213
-	-	44	-	-	-	30,687
-	-	43	-	-	-	204
-	-	1	-	-	-	30,483
-	675	11,560	192	155	2,708	89,627
-	80	240	-	-	2,054	7,234
-	15	6,881	-	-	911	12,621
-	-	2,179	-	-	-	4,281
-	320	-	-	-	11,586	21,361
-	10	115	-	-	-	963
- -	104	1,656	169	-	897	6,198
-	-	11	23	-	(13,261)	33,400
-	106	478	-	-	489	3,342
-	40	-	-	155	32	227
-	-	-	-	23	-	83
-	-	-	-	-	-	165
-	13	876	182	85	104	2,774
-	-	20	-	72	711	1,527
-	5	3	205	76	1,296	3,469

		United States				£m
M&F	Rest of Africa	US Life	USAM	Other operating segments	Consolidation adjustments	Total reportable segments

-	602	12,996	-	-	-	84,251
-	269	11,900	-	-	-	23,637
-	123	-	-	-	-	52,171
-	-	1,059	-	-	-	1,574
-	210	-	-	-	-	6,404
-	-	37	-	-	-	465
-	-	-	-	-	-	-
-	-	-	-	-	3,547	3,547
-	-	-	-	1,211	-	2,353
-	-	-	-	402	-	461
-	-	-	-	-	-	103
-	-	-	-	809	-	1,789
-	3	-	2	136	-	499
-	-	-	-	14	-	462
-	-	-	-	-	-	350
-	-	-	-	14	-	112
-	-	401	-	5	-	1,413
-	1	13	(5)	76	-	320
-	33	555	364	137	924	6,180
-	-	-	-	-	-	165
-	-	-	-	-	-	31,817
-	-	-	-	30	707	1,716
396	-	-	-	-	-	420
4	2	-	1,638	964	(4,051)	-
400	641	13,965	1,999	2,573	1,127	133,143
247	92	1,186	(314)	-	-	9,597


200	92	1,186	(346)	(400)	-	7,961
47	-	-	32	400	-	1,636
47	-	-	32	(46)	-	933
-	-	-	-	446	-	703
247	92	1,186	(314)	-	-	9,597

	£m
	At 31 December 2008	At 31 December 2007
R291 million notes (class A1) repayable 18 November 2039 (11.467 per cent)1	22	21
R1.4 billion notes (class A2A) repayable 18 November 2039 (11.817 per cent)1	73	73
R98 million notes (class B note) repayable 18 November 2039 (12.067 per cent)1	5	5
R76 million notes (class C note) repayable 18 November 2039 (13.317 per cent)1	4	4
104		103

	Europe			South Africa
At 31 December 2007	UK	Nordic	ELAM	OMSA	Nedbank
Assets
Goodwill and other intangible assets	1,716	1,180	939	26	420
Goodwill	639	196	436	14	320
Present value of acquired in-force business	794	760	338	-	-
Software development	24	1	4	12	100
Other intangibles	259	223	161	-	-
Mandatory reserve deposits with central banks	-	-	-	-	615
Property, plant and equipment	19	5	14	241	291
Investment property	2	-	1	1,096	13
Deferred tax assets	40	74	13	106	12
Investments in associated undertakings and joint ventures	-	-	-	25	62
Deferred acquisition costs	524	15	182	93	1
Insurance contracts	20	1	3	-	-
Investment contracts	439	14	175	86	-
Asset management	65	-	4	7	1
Reinsurers' share of long-term business policyholder liabilities	702	8	4	4	13
Insurance contracts	56	5	2	4	13
Unit-linked investment contracts and similar contracts	636	-	-	-	-
Outstanding claims	10	3	2	-	-
Deposits held with reinsurers	-	183	-	-	-
Loans and advances	64	3,117	19	83	27,360
Policyholder loans	63	-	15	83	-
Other loans and advances	1	3,117	4	-	27,360
Investments and securities	31,964	7,867	5,426	24,394	4,686
Government and government-guaranteed securities	163	165	44	3,074	1,414
Listed other debt securities, preference shares and debentures	-	105	80	1,969	2,660
Unlisted other debt securities, preference shares and debentures	-	16	3	2,083	-
Listed equity securities	1	1	7	9,402	44
Unlisted equity securities	1	16	3	680	138
Listed pooled investments	2,520	197	11	214	430
Unlisted pooled investments	29,279	7,367	5,278	4,703	-
Short-term funds and securities treated as investments	-	-	-	2,269	-
Other securities	-	-	-	-	-
Current tax receivable	45	5	2	4	4
Client indebtedness for acceptances	-	-	-	-	165
Other assets	161	63	166	513	611
Derivative financial instruments - assets	-	15	-	43	666
Cash and cash equivalents	599	202	125	195	763
Non-current assets held-for-sale	-	1,024	-	2	2
Inter-segment assets	198	549	137	844	102
Total assets	36,034	14,307	7,028	27,669	35,786

£m
Year ended 31 December 2008		Europe	South Africa	United States	Other	Total
Amortisation of acquired PVIF
UK	(86)		-	-	-	(86)
Nordic	(105)		-	-	-	(105)
ELAM	(60)		-	-	-	(60)
US Life	-		-	(35)	-	(35)
Amortisation of acquired deferred costs and revenue
UK	33		-	-	-	33
Nordic	22		-	-	-	22
ELAM	26		-	-	-	26
Amortisation of other acquired intangible assets
UK	(30)		-	-	-	(30)
Nordic	(24)		-	-	-	(24)
ELAM	(21)		-	-	-	(21)
Change in acquisition balance sheet provisions
UK	(8)		-	-	-	(8)
Nordic	(76)		-	-	-	(76)
Goodwill impairment
Nordic	(12)		-	-	-	(12)
US Life	-		-	(61)	-	(61)
Other	-		-	-	(1)	(1)
		(341)	-	(96)	(1)	(438)
£m
Year ended 31 December 2007	Europe		South Africa Restated	United States	Other	Total
Amortisation of acquired PVIF
UK	(95)		-	-	-	(95)
Nordic	(92)		-	-	-	(92)
ELAM	(79)		-	-	-	(79)
US Life	-		-	(24)	-	(24)
Amortisation of acquired deferred costs and revenue
UK	35		-	-	-	35
Nordic	20		-	-	-	20
ELAM	51		-	-	-	51
Amortisation of other acquired intangible assets
UK	(30)		-	-	-	(30)
Nordic	(22)		-	-	-	(22)
ELAM	(18)		-	-	-	(18)
Change in acquisition balance sheet provisions
Nordic	12		-	-	-	12
Goodwill impairment
M & F	-		(3)	-	-	(3)
	(218)		(3)	(24)	-	(245)

Long-term investment rates	Year ended 31 December 2008	Year ended 31 December 2007
Europe long-term business	4.8%	4.9%
South Africa long-term business	16.6%	15.6%
United States long-term business	5.9%	5.7%

(i) Analysis of total income tax (credit)/expense	£m
	Year ended 31 December 2008	Year ended 31 December 2007 Restated
Current tax
United Kingdom tax
Corporation tax	93	436
Double tax relief	(145)	(399)
Overseas tax
South Africa	264	403
United States	4	26
Europe	68	73
Secondary Tax on Companies (STC)	22	74
Prior year adjustments	1	(25)
Total current tax	307	588
Deferred tax
Origination of temporary differences	(548)	(66)
Changes in tax rates/bases	(1)	(13)
Write down/recognition of deferred tax assets	154	(5)
Total deferred tax	(395)	(84)
Total income tax expense	(88)	504
(ii) Reconciliation of total income tax (credit)/expense		£m
Year ended 31 December 2008		Year ended 31 December 2007 Restated
Profit before tax	595	1,750
Tax at standard rate of 28.5% (2007: 30%)	169	525
Different tax rate or basis on overseas operations	(23)	(20)
Untaxed and low taxed income	(218)	(166)
Disallowable expenses	8	90
Net movement on deferred tax assets not recognised	123	(38)
Effect on deferred tax of changes in tax rates	(5)	(18)
STC	53	57
Income tax attributable to policyholder returns	(169)	51
Other	(26)	23
Total income tax (credit)/expense	(88)	504

		£m
Year ended 31 December 2008		Year ended 31 December 2007 Restated
Income tax (credit)/expense	(88)	504
Tax on adjusting items
Impact of acquisition accounting	46	65
Profit on disposal of subsidiaries, associated undertakings and strategic investments	12	(10)
Short-term fluctuations in investment return	35	(37)
Income tax attributable to policyholders returns	236	(60)
Secondary Tax on Companies (STC) on dividends paid	-	(35)
Tax on dividends declared to holders of perpetual preferred callable securities recognised in equity	(12)	(9)
Fair value gains on group debt instruments	(143)	-
Income tax on adjusted operating profit	86	418
6 Minority interests - Income statement
(i) Minority interests - ordinary shares
The minority interest charge to profit for the financial year has been calculated on the basis of the Group's effective ownership of the subsidiaries in which it does not own 100 per cent of the ordinary equity. The principal subsidiaries where a minority exists are the Group's banking and general insurance businesses in South Africa. For the year ended 31 December 2008 the minority interest attributable to ordinary shares was £188 million (2007: £224 million).
(ii) Minority interests - preferred securities
		£m
	At 31 December 2008	At 31 December 2007
R2,000 million non-cumulative preference shares	14	13
R792 million non-cumulative preference shares	5	5
R300 million non-cumulative preference shares	1	1
US$750 million cumulative preferred securities	32	30
R364 million non-cumulative preference shares	2	1
Minority interest - preferred securities	54	50
(iii) Minority interests - adjusted operating profit
The following table reconciles minority interests' share of profit for the financial year to minority interests' share of adjusted operating profit:
		£m
Reconciliation of minority interests share of profit for the financial year	Year ended 31 December 2008	Year ended 31 December 2007
The minority interest charge is analysed as follows:
Minority interest - ordinary shares	188	224
Goodwill impairment and impact of acquisition accounting	-	-
Profit on disposal of subsidiaries, associated undertakings and strategic investments	2	-
Short-term fluctuations in investment return	11	-
Income attributable to Black Economic Empowerment trusts of listed subsidiaries	30	29
Fair value gains on group debt instruments	(6)	-
Income attributable to US Asset Management minority holdings	(7)	(11)
Minority interest share of adjusted operating profit	218	242

8 Borrowed funds
		£m
Notes		At 31 December 2008	At 31 December 2007
Senior debt securities and term loans	8(i)	557	461
Mortgage backed securities	8(ii)	104	103
Subordinated debt securities	8(iii)	1,634	1,789
Borrowed funds		2,295	2,353
(i) Senior debt securities and term loans
		£m
		At 31 December 2008	At 31 December 2007
Floating rate notes1		85	151
Fixed rate notes2		152	44
Revolving credit facility3		294	161
Term loan and other loans		26	26
Investment fund borrowings		-	79
Total senior debt securities and term loans		557	461

At 31 December 2008	£m
At 31 December 2008	Less than 1 year	Greater than 1 year and less than 5 years	Greater than 5 years	Total
Floating rate notes	16	69	-	85
Fixed rate notes	96	56	-	152
Revolving credit facility	-	294	-	294
Term loans and other loans	26	-	-	26
Investment fund borrowings	-	-	-	-
Total senior debt securities and term loan	138	419	-	557
At 31 December 2007
Floating rate notes	-	75	76	151
Fixed rate notes	-	29	15	44
Revolving credit facility	-	161	-	161
Term loans and other loans	17	9	-	26
Investment fund borrowings	79	-	-	79
Total senior debt securities and term loan	96	274	91	461

	£m
	At 31 December 2008	At 31 December 2007
Banking
US$18 million repayable 31 August 2009 (6 month LIBOR less 1.5 %)1	12	9
R1.5 billion repayable 24 April 2016 (7.85 %)2	108	103
R1.8 billion repayable 20 September 2018 (9.84 %)3	135	135
R515 million repayable on 4 December 2008 (13.5 %)4 - Repaid	-	39
R500 million repayable on 30 December 2010 (8.38 %)5	36	34
R650 million repayable 8 February 2017 (9.03 %)6	49	47
R1.7 billion repayable 8 February 2019 (8.9 %)7	125	123
R2.0 billion repayable 6 July 2022 (3 month JIBAR plus 0.47 %)8	150	151
R500 million repayable 15 August 2012 (3 month JIBAR plus 0.45 %)9	37	37
R1.0 billion repayable 17 September 2015 (10.54 %)10	77	77
R500 million repayable 14 December 2017 (3 month JIBAR plus 0.70 %)11	37	37
R120 million repayable 14 December 2017 (10.38 %)12	9	9
R487 million repayable 20 November 2018 (15.05 %)13	40	-
R1,265 million repayable 20 November 2018 (JIBAR plus 4.75 %)14	94	-
R300 million repayable on 4 December 2013 (JIBAR + 2.5%)15	11	-
920		801
Other
R3.0 billion repayable 27 October 2020 (8.9 %)16	219	220
£300 million repayable 21 January 2016 (5.0 %)17	239	291
R250 million preference shares repayable 9 June 201118	18	18
€750 million repayable 18 January 2017 (4.5 %)19	303	519
779		1,048
Less: banking subordinated debt securities held by other Group companies	(65)	(60)
Total subordinated liabilities	1,634	1,789

	£m
	At 31 December 2008	At 31 December 2007
Surplus property	23	29
Client compensation	27	19
Warranties on sale of business	111	87
Liability for long service leave	38	34
Provision for donations	80	82
Litigation claims	36	64
Other provisions	165	183
	480	498
Post employment benefits	(3)	1
Total	477	499
£m

Year ended 31 December 2008	Surplus property	Client compensation	Warranties on sale of business	Liability for long service leave	Provision for donations	Litigation claims	Other	Total
Balance at beginning of the year	29	19	87	34	82	64	183	498
Unused amounts reversed	(1)	(5)	(5)	-	-	-	(40)	(51)
Unwind of discount	1	-	-	-	-	-	-	1
Charge to income statement	-	8	22	4	-	37	20	91
Utilised during the year	(7)	(14)	(3)	1	(2)	(74)	(24)	(123)
Foreign exchange and other movements	1	19	10	(1)	-	9	26	64
Balance at end of the year	23	27	111	38	80	36	165	480

Dividends paid were as follows:		£m
	Year ended 31 December 2008	Year ended 31 December 2007
2006 Final dividend paid - 4.15p per 10p share	-	218
2007 Interim dividend paid - 2.3p per 10p share	-	115
2007 Final dividend paid - 4.55p per 10p share	227	-
2008 Interim dividend paid - 2.45p per 10p share	125	-
Dividends to ordinary equity holders	352	333
Dividends declared to holders of perpetual preferred callable securities	43	40
Dividend payments for the year	395	373

£m
	At 31 December 2008	At 31 December 2007
Guarantees and assets pledged as collateral security	1,839	1,489
Irrevocable letters of credit	760	426
Secured lending	383	1,052
Other contingent liabilities	393	136