CGNU Interim Results 2001-Pt5
CGNU PLC
1 August 2001
PART 5 of 6
Page 28
12. Earnings per share
a) Basic earnings per share
6 months 2001 6 months 2000
-------------- -------------
Net of Net of
tax, tax,
minorities minorities
and and
Before preference Per preference Per
tax dividend share dividend share
£m £m p £m p
Operating profit
- ongoing business before
amortisation of goodwill,
amortisation of acquired
additional value of
in-force long-term business
and exceptional items 728 463 20.6 365 16.3
Adjusted for the following
items:
- Operating (loss)/profit
on discontinued
businesses (21) (14) (0.6) 85 3.8
- Amortisation of goodwill (30) (30) (1.3) (18) (0.8)
- Amortisation of acquired
additional value of
in-force long-term
business (17) (12) (0.5) (9) (0.4)
- Exceptional items - - - - -
- Short-term fluctuation in
investment returns (446) (507) (22.6) 32 1.4
- Change in the
equalisation provision (22) (16) (0.7) (9) (0.4)
- Policyholders' Protection
Board levy (14) (10) (0.5) - -
- Net profit/
(provision for loss)
arising on the sale
of subsidiary undertakings 247 247 11.0 - -
- Loss on withdrawal from
London Market operations - - - - -
- Merger transaction costs - - - (49) (2.2)
------ ------ ------ ------ ------
Profit/(loss) attributable
to equity shareholders 425 121 5.4 397 17.7
====== ====== ====== ====== ======
Full year 2000
--------------
Net of
tax,
minorities
and
preference Per
dividend share
£m p
Operating profit - ongoing business before amortisation
of goodwill, amortisation of acquired additional value
of in-force long-term business and exceptional items 636 28.3
Adjusted for the following items:
- Operating (loss)/profit on discontinued businesses (423) (18.8)
- Amortisation of goodwill (92) (4.1)
- Amortisation of acquired additional value of
in-force long-term business (22) (1.0)
- Exceptional items (352) (15.7)
- Short-term fluctuation in investment returns (117) (5.2)
- Change in the equalisation provision (19) (0.8)
- Policyholders' Protection Board levy - -
- Net profit/(provision for loss)arising on the sale of
subsidiary undertakings (977) (43.5)
- Loss on withdrawal from London Market operations (314) (14.0)
- Merger transaction costs (50) (2.2)
------ ------
Profit/(loss) attributable to equity shareholders (1,730) (77.0)
====== ======
Earnings per share has been calculated based on the operating profit from
ongoing business before amortisation of goodwill, amortisation of acquired
additional value of in-force long-term business and exceptional items, after
taxation, attributable to equity shareholders, as well as on the profit
attributable to equity shareholders, as the directors believe the former
earnings per share figure provides a better indication of operating
performance. The calculation of basic earnings per share uses a weighted
average of 2,252 million (six months to 30 June 2000: 2,244 million, full year
2000: 2,247 million) ordinary shares in issue.
The actual number of shares in issue at 30 June 2001 was 2,253 million
(30 June 2000: 2,246 million, 31 December 2000: 2,251 million).
b) Diluted earnings per share
6 months 6 months Full year
2001 2000 2000
---------- ------- ---------
Weighted Weighted Weighted
average average average
number number number
of Per of Per of Per
Total shares share shares share shares share
£m m p m p m p
Profit/(loss)
attributable
to equity
shareholders 121 2,252 5.4 2,244 17.7 2,247 (77.0)
Dilutive effect
of options - 2 - 6 (0.1) 4 0.1
------ ------ ------ ------ ------ ------ ------
Diluted
earnings 121 2,254 5.4 2,250 17.6 2,251 (76.9)
====== ====== ====== ====== ====== ====== =====
--------------------------------------------------------------------
Page 29
13. Longer-term investment return
The longer-term investment return is calculated separately for each principal
general insurance business and certain long-term operations. In respect of
equities and properties, the return is calculated by multiplying the opening
market value of the investments, adjusted for sales and purchases during the
period, by the longer-term rate of investment return. The longer-term rate of
investment return is determined using consistent assumptions between
operations, having regard to local economic and market forecasts of investment
return. The allocated longer-term return for other investments is the actual
interest income receivable for the period.
The principal assumptions underlying the calculation of the longer-term
investment return are:
Longer-term rates of return
Equities Properties
2001 2000 2001 2000
% % % %
United Kingdom 8.1% 8.1% 6.6% 6.6%
France 7.5% 7.5% 6.5% 6.5%
Ireland 8.7% 8.7% 6.7% 6.7%
Netherlands 8.4% 8.4% 6.5% 6.5%
Australia and New Zealand 10.0% 10.0% 8.0% 8.0%
Canada 9.3% 9.3% 7.3% 7.3%
United States 9.3% 9.3% 7.3% 7.3%
MORE TO FOLLOW
Latest directors dealings
- 1 hour ago Oxford Nanopore Technologies
- 2 hours ago AVI Global Trust
- 2 hours ago LSL Property Services
- 2 hours ago Bluebird Merchant Ventures (DI)
- 2 hours ago Power Probe PLC