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Company Standard Life plc
TIDM SL.
Headline

Final Results - Part 3 of 5

Released 07:01 07-Mar-2013
Number 4307Z07

RNS Number : 4307Z
Standard Life plc
07 March 2013
 



Standard Life plc

Preliminary Results 2012

Part 3 of 5

 

Section 2 - International Financial Reporting Standards (IFRS)

IFRS consolidated income statement

For the year ended 31 December 2012



2012

2011


Notes

£m

£m

Revenue




Gross earned premium


4,315

3,343

Premium ceded to reinsurers


(95)

(98)

Net earned premium


4,220

3,245

Investment return


13,982

4,911

Fee and commission income


906

855

Other income


77

75

Total revenue


19,185

9,086





Expenses




Claims and benefits paid


6,562

6,245

Claim recoveries from reinsurers


(590)

(620)

Net insurance benefits and claims


5,972

5,625

Change in reinsurance assets and liabilities

2.9

44

383

Change in insurance and participating liabilities

2.9

1,339

980

Change in investment contract liabilities

2.9

7,718

(757)

Change in unallocated divisible surplus

2.9

(39)

(87)

Expenses under arrangements with reinsurers


656

516

Administrative expenses




Restructuring and corporate transaction expenses

2.3

114

72

Other administrative expenses


1,574

1,591

Total administrative expenses

2.3

1,688

1,663

Change in liability for third party interest in consolidated funds


782

103

Finance costs


77

116

Total expenses


18,237

8,542





Share of profit from associates and joint ventures


48

51





Profit before tax


996

595





Tax expense attributable to policyholders' returns

2.4

218

217





Profit before tax attributable to equity holders' profits


778

378





Total tax expense

2.4

269

249

Less: Tax attributable to policyholders' returns

2.4

(218)

(217)

Tax expense attributable to equity holders' profits

2.4

51

32

Profit for the year


727

346





Attributable to:




Equity holders of Standard Life plc


698

298

Non-controlling interests


29

48



727

346

Earnings per share




Basic (pence per share)

2.5

29.7

13.0

Diluted (pence per share)

2.5

29.5

12.9



IFRS consolidated statement of comprehensive income

For the year ended 31 December 2012



2012

2011


Notes

£m

£m

Profit for the year


727

346

Fair value losses on cash flow hedges


(1)

-

Actuarial (losses)/gains on defined benefit pension schemes


(97)

121

Effect of limit on defined benefit pension schemes' surpluses


27

(209)

Revaluation of land and buildings


5

(5)

Net investment hedge


18

13

Exchange differences on translating foreign operations


(65)

(53)

Equity movements transferred to unallocated divisible surplus

2.9

11

11

Aggregate equity holder tax effect of items recognised in comprehensive income

2.4

102

27

Other comprehensive income for the year


-

(95)

Total comprehensive income for the year


727

251





Attributable to:




Equity holders of Standard Life plc


698

203

Non-controlling interests


29

48



727

251



Pro forma reconciliation of consolidated operating profit to IFRS profit for the year

For the year ended 31 December 2012



2012

2011


Notes

£m

£m

Operating profit before tax




UK and Europe


419

266

Standard Life Investments


145

125

Canada


355

187

Asia and Emerging Markets


5

(6)

Other


(24)

(28)

Operating profit before tax

2.2

900

544

Adjusted for the following items:




Short-term fluctuations in investment return and economic assumption changes


(29)

(139)

Restructuring and corporate transaction expenses


(109)

(70)

Impairment of intangible assets


-

(5)

Other operating profit adjustments


(4)

-

Non-operating loss before tax

2.2

(142)

(214)

Share of joint ventures' and associates' tax expense1

2.2

(9)

-

Profit attributable to non-controlling interests

2.2

29

48

Profit before tax attributable to equity holders' profits


778

378

Tax (expense)/credit attributable to:




Operating profit

2.2

(124)

(87)

Adjusted items

2.2

73

55

Total tax expense attributable to equity holders' profits


(51)

(32)

Profit for the year


727

346

1   In 2011, tax of £11m included in the share of profits or losses from joint ventures and associates was charged to operating profit before tax.

The Group's chosen supplementary measure of performance is operating profit. The Directors believe that operating profit provides a more meaningful indication of the long-term operating performance of the Group. To align the measure of the Group's performance with the long-term nature of its business, operating profit excludes items which create short-term volatility. Operating profit includes the impact of significant actions taken by management during the year. Refer to accounting policy (b) for further details.



IFRS consolidated statement of financial position

As at 31 December 2012



2012

2011


Notes

£m

£m

Assets




Intangible assets


214

200

Deferred acquisition costs


904

920

Investments in associates and joint ventures


328

326

Investment property

2.11

8,565

8,743

Property, plant and equipment


156

160

Pension and other post-retirement benefit assets

2.10

339

342

Deferred tax assets


178

210

Reinsurance assets

2.9

6,912

6,818

Loans

2.11

3,299

3,219

Derivative financial assets

2.11

2,150

2,212

Equity securities and interests in pooled investment funds

2.11

65,812

58,531

Debt securities

2.11

73,301

67,176

Receivables and other financial assets

2.11

1,717

1,851

Other assets


284

228

Cash and cash equivalents

2.11

9,942

9,187

Total assets


174,101

160,123

Equity




Share capital

2.8(a)

236

235

Shares held by trusts

2.8(b)

(7)

(19)

Share premium reserve


1,110

1,110

Retained earnings


1,437

1,030

Other reserves


1,579

1,605

Equity attributable to equity holders of Standard Life plc


4,355

3,961

Non-controlling interests


341

358

Total equity


4,696

4,319

Liabilities




Non-participating contract liabilities

2.9

113,251

102,558

Participating contract liabilities

2.9

31,618

32,553

Reinsurance liabilities

2.9

381

245

Deposits received from reinsurers


6,136

6,036

Third party interest in consolidated funds


12,037

8,428

Borrowings


108

170

Subordinated liabilities

2.17

1,868

1,186

Pension and other post-retirement benefit provisions

2.10

135

115

Deferred income


352

388

Deferred tax liabilities


43

145

Income tax liabilities


150

149

Derivative financial liabilities


853

1,102

Other financial liabilities


2,323

2,603

Other liabilities


150

126

Total liabilities


169,405

155,804

Total equity and liabilities


174,101

160,123

 

 

 

 

 

IFRS consolidated statement of changes in equity

For the year ended 31 December 2012



Share capital

Shares held by trusts

Share premium reserve

Retained earnings

Other reserves

Total equity attributable to equity holders of Standard

Life plc

Non-controlling interests

Total equity

2012

Notes

£m

£m

£m

£m

£m

£m

£m

£m

1 January


235

(19)

1,110

1,030

1,605

3,961

358

4,319

Profit for the year


-

-

-

698

-

698

29

727

Other comprehensive income for the year


-

-

-

32

(32)

-

-

-

Total comprehensive income for the year


-

-

-

730

(32)

698

29

727

Distributions to equity holders


-

-

-

(331)

-

(331)

-

(331)

Issue of share capital other than in cash

2.8

1

-

-

-

-

1

-

1

Reserves credit for employee share-based

payment schemes


-

-

-

-

25

25

-

25

Transfer to retained earnings for vested employee share-based payment schemes


-

-

-

25

(25)

-

-

-

Shares acquired by employee trusts


-

(5)

-

-

-

(5)

-

(5)

Shares distributed by employee trusts


-

17

-

(17)

-

-

-

-

Other movements in non-controlling interests in the year


-

-

-

-

-

-

(46)

(46)

Aggregate tax effect of items recognised directly in equity

2.4

-

-

-

-

6

6

-

6

31 December


236

(7)

1,110

1,437

1,579

4,355

341

4,696

 



Share capital

Shares held by trusts

Share premium reserve

Retained earnings

Other reserves

Total equity attributable to equity holders of Standard

Life plc

Non-controlling interests

Total equity

2011

Notes

£m

£m

£m

£m

£m

£m

£m

£m

1 January


228

(21)

976

1,094

1,626

3,903

335

4,238

Profit for the year


-

-

-

298

-

298

48

346

Other comprehensive income for the year


-

-

-

(61)

(34)

(95)

-

(95)

Total comprehensive income for the year


-

-

-

237

(34)

203

48

251

Distributions to equity holders


-

-

-

(303)

-

(303)

-

(303)

Issue of share capital other than in cash

2.8

7

-

134

-

-

141

-

141

Reserves credit for employee share-based payment schemes


-

-

-

-

24

24

-

24

Transfer to retained earnings for vested employee share-based payment schemes


-

-

-

11

(11)

-

-

-

Shares acquired by employee trusts


-

(7)

-

-

-

(7)

-

(7)

Shares distributed by employee trusts


-

9

-

(9)

-

-

-

-

Other movements in non-controlling interests in the year


-

-

-

-

-

-

(25)

(25)

31 December


235

(19)

1,110

1,030

1,605

3,961

358

4,319



IFRS consolidated statement of cash flows

For the year ended 31 December 2012



2012

2011


Notes

£m

£m

Cash flows from operating activities




Profit before tax


996

595

Change in operating assets


(14,319)

(1,926)

Change in operating liabilities


11,342

4,026

Adjustment for non-cash movements in investment income


(6)

(28)

Change in unallocated divisible surplus


(39)

(87)

Non-cash and items relating to investing and financing activities


84

107

Taxation paid


(284)

(297)

Net cash flows from operating activities


(2,226)

2,390

                       




Cash flows from investing activities




Purchase of property, plant and equipment


(18)

(15)

Acquisition of subsidiaries net of cash acquired


-

(41)

Acquisition of investments in associates and joint ventures


(16)

(23)

Proceeds from sale of intangible assets


-

1

Purchase of intangible assets


(38)

(40)

Net cash flows from investing activities


(72)

(118)





Cash flows from financing activities




Proceeds from other borrowings


-

5

Repayment of other borrowings


(42)

(35)

Proceeds from subordinated liabilities


747

-

Repayment of subordinated liabilities


(50)

(591)

Capital flows from third party interest in consolidated funds and non-controlling interests


2,983

2,177

Distributions paid to non-controlling interests


(75)

(65)

Shares acquired by trusts


(5)

(7)

Interest paid


(77)

(125)

Ordinary dividends paid

2.6

(331)

(162)

Net cash flows from financing activities


3,150

1,197





Net increase in cash and cash equivalents


852

3,469

Cash and cash equivalents at the beginning of the year


9,125

5,701

Effects of exchange rate changes on cash and cash equivalents


(79)

(45)

Cash and cash equivalents at the end of the year       1


9,898

9,125





Supplemental disclosures on cash flows from operating activities




Interest paid


11

11

Interest received


2,694

2,832

Dividends received


1,822

1,575

Rental income received on investment properties


595

634

1      Comprises £9,942m (2011: £9,187m) of cash and cash equivalents and £44m (2011: £62m) of overdrafts which are reported in borrowings in the statement of financial position.

 


Notes to the IFRS financial information

2.1 Accounting policies

(a) Basis of preparation

The preliminary results have been prepared using International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as endorsed by the European Union (EU), with interpretations issued by the IFRS Interpretations Committee and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The accounting policies as set out in the Group's Annual Report and Accounts for the year ended 31 December 2012 have been applied in the preparation of this preliminary announcement. The Group's accounting policies have not changed since the issue of the Annual Report and Accounts 2011.

The Group has adopted the following amendments to IFRSs, International Accounting Standards (IAS) and interpretations which are effective from 1 January 2012 and management considers that the implementation of these amendments and interpretations has had no significant impact on the Group's financial statements:

·   Amendment to IFRS 1 First time adoption of IFRS - Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

·   Amendment to IFRS 7 Financial instruments: Disclosures - Transfer of financial assets

(b) Operating profit

The Group's chosen supplementary measure of performance is operating profit. Operating profit excludes impacts arising from short-term fluctuations in investment return and economic assumption changes. It is calculated based on expected returns on investments backing equity holder funds, with consistent allowance for the corresponding expected movements in equity holder liabilities. Impacts arising from the difference between the expected return and actual return on investments, and the corresponding impact on equity holder liabilities except where they are directly related to a significant management action, are excluded from operating profit and are presented within profit before tax. The impact of certain changes in economic assumptions is also excluded from operating profit and is presented within profit before tax.

Operating profit also excludes the impact of the following items:

·   Restructuring costs and significant corporate transaction expenses

·   Impairment of intangible assets

·   Profit or loss arising on the disposal of a subsidiary, joint venture or associate

·   Amortisation of intangibles acquired in business combinations

·   Items which are one-off in nature and outside the control of management and, which due to their size or nature, are not indicative of the long-term operating performance of the Group

 (c) Preliminary announcement

The preliminary announcement for the year ended 31 December 2012 does not constitute statutory accounts as defined in Section 434 of the UK Companies Act 2006. PricewaterhouseCoopers LLP have audited the consolidated statutory accounts for the Group for the years ended 31 December 2011 and 31 December 2012 and their reports were unqualified and did not contain a statement under Section 498(2) or (3) of the UK Companies Act 2006. The Group's consolidated statutory accounts for the year ended 31 December 2011 have been filed with the Registrar of Companies. The Group's Annual Report and Accounts for the year ended 31 December 2012 will be available from 2 April 2013.


2.2 Segmental analysis

(a) Basis of segmentation

The Group's reportable segments have been identified in accordance with the way in which the Group is structured and managed. The Group's reportable segments are as follows:

UK and Europe

UK and Europe operations provide a broad range of pensions, protection, savings and investment products to individual and corporate customers in the UK, Germany, Austria and Ireland.

Standard Life Investments

Investment management services are provided by Standard Life Investments to the Group's other reportable segments. Standard Life Investments also provides a range of investment products for individuals and institutional customers through a number of different investment vehicles. This segment includes the Group's share of the results of HDFC Asset Management Company Limited.

Canada

The operations in Canada provide long-term savings, investment and insurance solutions to individuals, and group benefit and retirement plan members.

Asia and Emerging Markets

The businesses included in Asia and Emerging Markets offer a range of life and pension products and comprise wholly owned operations in Ireland and Hong Kong and investments in joint ventures (JVs) in India and China.

Other

This primarily includes the group corporate centre and related activities. 

(b) Reportable segments - group operating profit, revenue and asset information

IFRS 8 Operating Segments requires that the information presented in the financial statements is based on information provided to the 'Chief Operating Decision Maker'. The Chief Operating Decision Maker for the Group is the executive team.

The information used by the executive team to manage the business of the Group has evolved and the segmental analysis has been updated to reflect the financial information now reviewed by the executive team. The key performance metrics of the Group include operating profit and assets under administration (AUA), which are analysed in the tables that follow by reportable segment.

In June 2012, changes were announced in the way the Group manages its businesses. The domestic businesses in Germany and Ireland, previously reported in the International segment, have been combined with the UK to create UK and Europe. The other components of International now form Asia and Emerging Markets. These changes provide stronger focus in our chosen markets and will help drive further value in each of the markets in which the Group operates. The reportable segments have therefore been changed for the year ended 31 December 2012.

Comparative amounts have also been prepared on the same basis to allow more meaningful comparison with the prior year.

The Global investment management segment has been renamed Standard Life Investments.

Income statement and asset information is presented by reportable segment in the tables that follow.

 

(b)(i)      Analysis of Group operating profit by segment

As described beneath the pro forma reconciliation of consolidated operating profit to IFRS profit for the year, operating profit is considered to present an indication of the long-term operating performance of the Group. Operating profit is the key measure utilised by the Group's management in their evaluation of segmental performance and is therefore also presented by reportable segment.

 

 

    

 

 



UK and Europe

Standard Life Investments1

Canada

Asia and Emerging Markets

Other

Elimination

Total

31 December 2012

Notes

£m

£m

£m

£m

£m

£m

£m

Fee based revenue


831

408

172

54

-

(194)

1,271

Spread/risk margin


112

-

393

-

-

-

505

Total income


943

408

565

54

-

(194)

1,776

Acquisition expenses


(202)

-

(79)

(11)

-

-

(292)

Maintenance expenses


(461)

(281)

(240)

(46)

-

194

(834)

Group corporate centre costs


-

-

-

-

(47)

-

(47)

Capital management


43

-

109

-

23

-

175

Share of joint ventures' and associates' profit before tax1


-

18

-

8

-

-

26

Other


96

-

-

-

-

-

96

Operating profit/(loss) before tax


419

145

355

5

(24)

-

900

Tax on operating profit


(17)

(33)

(75)

3

(2)

-

(124)

Share of joint ventures' and associates' tax expense2


-

(5)

(4)

-

-

-

(9)

Operating profit/(loss) after tax


402

107

276

8

(26)

-

767

Adjusted for the following items:









Short-term fluctuations in investment return and economic assumption changes

2.7

(4)

-

(19)

(1)

(5)

-

(29)

Restructuring and corporate transaction expenses

2.3

(93)

(3)

(3)

(3)

(7)

-

(109)

Impairment of intangible assets


-

-

-

-

-

-

-

Other operating profit adjustments


-

-

-

-

(4)

-

(4)

Total non-operating items


(97)

(3)

(22)

(4)

(16)

-

(142)

Tax on non-operating items


50

1

17

1

4

-

73

Profit for the year attributable to equity holders of Standard Life plc


355

105

271

5

(38)

-

698

Profit attributable to non-controlling interests








29

Profit for the year








727

1    The share of profit from HDFC Asset Management Company Limited is now reflected in share of joint ventures' and associates' profit before tax. This was previously included in fee based revenue. Share of joint ventures' and associates' profit before tax includes the Group's share of the results of HDFC Standard Life Insurance Company Limited, Heng An Standard Life Insurance Company Limited and HDFC Asset Management Company Limited.

2    In 2011, tax of £11m included in the share of profits or losses from joint ventures and associates was charged to operating profit before tax.

Each operating segment reports total income as its measure of revenue in its analysis of operating profit. Fee based revenue consists of income generated primarily from asset management charges, premium based charges and transactional charges. Spread/risk margin reflects the margin earned on spread/risk business and includes net earned premiums, claims and benefits paid, net investment return using long-term assumptions and reserving changes.

Eliminations relate to inter-segment transactions, which are entered into under normal commercial terms and conditions that would be available to unrelated third parties.

The Group has a widely diversified policyholder base and is therefore not reliant on any individual customers.

 



2.2 Segmental analysis continued

(b) Reportable segments - group operating profit, revenue and asset information continued

(b)(i)      Analysis of Group operating profit by segment continued

 



UK and Europe

Standard Life Investments1

Canada

Asia and Emerging Markets

Other

Elimination

Total

31 December 2011

Notes

£m

£m

£m

£m

£m

£m

£m

Fee based revenue


798

368

166

45

-

(172)

1,205

Spread/risk margin


78

-

281

-

-

-

359

Total income


876

368

447

45

-

(172)

1,564

Acquisition expenses


(226)

-

(78)

(21)

-

-

(325)

Maintenance expenses


(459)

(258)

(220)

(32)

(3)

172

(800)

Group corporate centre costs


-

-

-

-

(50)

-

(50)

Capital management


11

-

38

-

25

-

74

Share of joint ventures' and associates' profit before tax1


-

15

-

2

-

-

17

Other


64

-

-

-

-

-

64

Operating profit/(loss) before tax


266

125

187

(6)

(28)

-

544

Tax on operating profit


(26)

(30)

(31)

2

(2)

-

(87)

Operating profit/(loss) after tax


240

95

156

(4)

(30)

-

457

Adjusted for the following items:









Short-term fluctuations in investment return and economic assumption changes

2.7

(59)

1

(72)

-

(9)

-

(139)

Restructuring and corporate transaction expenses

2.3

(51)

(5)

(2)

(1)

(11)

-

(70)

Impairment of intangible assets


-

-

-

-

(5)

-

(5)

Other operating profit adjustments


-

-

-

-

-

-

-

Total non-operating items


(110)

(4)

(74)

(1)

(25)

-

(214)

Tax on non-operating items


29

1

19

-

6

-

55

Profit for the year attributable to equity holders of Standard Life plc


159

92

101

(5)

(49)

-

298

Profit attributable to non-controlling interests








48

Profit for the year








346

1    The share of profit from HDFC Asset Management Company Limited is now reflected in share of joint ventures' and associates' profit before tax. This was previously included in fee based revenue. Share of joint ventures' and associates' profit before tax includes the Group's share of the results of HDFC Standard Life Insurance Company Limited, Heng An Standard Life Insurance Company Limited and HDFC Asset Management Company Limited.

(b)(ii) Total income

The following table provides a reconciliation of total income, as presented in the analysis of Group operating profit by segment, to total revenue, as presented on the IFRS consolidated income statement:


2012

2011


£m

£m

Fee based revenue

1,271

1,205

Spread/risk margin

505

359

Total income as presented in the analysis of Group operating profit by segment

1,776

1,564

Consolidation/policyholder adjustments

279

244

Tax movement attributable to policyholder returns

218

217

Net insurance benefits and claims

5,972

5,625

Change in reinsurance assets and liabilities

44

383

Change in insurance and participating liabilities

1,339

980

Investment return credited and related benefits on non-participating investment liabilities

7,718

(757)

Change in unallocated divisible surplus

(39)

(87)

Expenses under arrangements with reinsurers

656

516

Change in liability for third party interest in consolidated funds

782

103

Non-operating items

(98)

(168)

Other

538

466

Total revenue as presented on the IFRS consolidated income statement

19,185

9,086

 

Consolidation adjustments mainly relates to amounts attributable to third party interest in consolidated funds which are included in the IFRS consolidated income statement but excluded from total income. Non-operating items are the adjustments that relate to total income which reconcile operating profit to profit for the year as shown in the analysis of Group operating profit by segment in Note 2.2(b)(i).

(b)(iii) Total expenses

The following table provides a reconciliation of total operating expenses, as presented in the analysis of Group operating profit by segment, to total expenses, as presented on the IFRS consolidated income statement:


2012

2011


£m

£m

Acquisition expenses

292

325

Maintenance expenses

834

800

Group corporate centre costs

47

50

Total operating expenses as presented in the analysis of Group operating profit by segment

1,173

1,175

Consolidation adjustments

264

224

Net insurance benefits and claims

5,972

5,625

Change in reinsurance assets and liabilities

44

383

Change in insurance and participating liabilities

1,339

980

Change in investment contract liabilities

7,718

(757)

Change in unallocated divisible surplus

(39)

(87)

Expenses under arrangements with reinsurers

656

516

Change in liability for third party interest in consolidated funds

782

103

Finance costs

77

116

Non-operating items

113

75

Other

138

189

Total expenses as presented on the IFRS consolidated income statement

18,237

8,542

Consolidation adjustments mainly relates to expenses attributable to third party interests in consolidated funds which are included in the total expenses consolidated income statement but excluded from total operating expenses. Finance costs are included in capital management in the analysis of Group operating profit by segment.

Non-operating items are the adjustments that relate to total expenses which reconcile operating profit to profit for the year as shown in the analysis of Group operating profit by segment in Note 2.2(b)(i).

(b)(iv) Analysis of assets under administration by segment

Group AUA presents a measure of the total assets of the Group including those administered on behalf of customers and institutional clients. AUA represents the IFRS gross assets of the Group adjusted to include third party AUA, which is not included in the IFRS consolidated statement of financial position. In addition, certain assets on the IFRS consolidated statement of financial position are excluded from the definition, including reinsurance assets, deferred acquisition costs and intangible assets. 

As a long-term savings and investments business, AUA is a key driver of shareholder value and is consequently one of the key measures utilised by the executive team in their evaluation of segmental performance. AUA is therefore presented by reportable segment (in billions).

 

UK and Europe

Standard Life Investments

Canada

Asia and Emerging Markets

Other

Elimination1

Total

31 December 2012

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Assets under administration








Fee based

121

83

16

4

-

(43)

181

Spread/risk

16

-

10

-

-

-

26

Assets not backing products in long-term savings business

6

-

2

-

-

-

8

Joint ventures

-

-

-

1

-

-

1

Other corporate assets

-

-

-

-

2

-

2

Total assets under administration

143

83

28

5

2

(43)

218

Third party AUA







(65)

Reinsurance assets







7

Deferred acquisition costs







1

Assets attributable to third party interest in consolidated funds and non-controlling interests







13

Other







-

Total assets per IFRS consolidated statement of financial position







174

1    In order to be consistent with the presentation of new business information, certain products are included in both Standard Life Investments AUA and other segments. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

 

2.2 Segmental analysis continued

(b) Reportable segments - group operating profit, revenue and asset information continued

(b)(iv) Analysis of assets under administration by segment continued

The third party AUA adjustment mainly relates to the investment products element of third party funds under management and non-insured SIPP AUA which are not included in the IFRS consolidated statement of financial position. Assets attributable to     third party interest in consolidated funds and non-controlling interests are included in the IFRS consolidated statement of financial position but excluded from Group's AUA.

 


UK and Europe

Standard Life Investments

Canada

Asia and Emerging Markets

Other

Elimination1

Total

31 December 2011

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Assets under administration








Fee based

110

72

14

3

-

(36)

163

Spread/risk

15

-

10

-

-

-

25

Assets not backing products in long-term savings business

6

-

2

-

-

-

8

Joint ventures

-

-

-

1

-

-

1

Other corporate assets

-

-

-

-

2

(1)

1

Total assets under administration

131

72

26

4

2

(37)

198

Third party AUA







(55)

Reinsurance assets







7

Deferred acquisition costs







1

Assets attributable to third party interest in consolidated funds and non-controlling interests







10

Other







(1)

Total assets per IFRS consolidated statement of financial position







160

1    In order to be consistent with the presentation of new business information, certain products are included in both Standard Life Investments AUA and other segments. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

(c) Total revenue by geographical location

Total revenue as presented on the IFRS consolidated income statement split by geographic location in which it was earned is as follows:


2012

2011


£m

£m

UK

12,540

4,767

Canada

3,363

2,633

Rest of the world

3,282

1,686

Total

19,185

9,086

The revenue of the operating businesses is allocated based on customer location. The return on investment funds is allocated based on where funds are registered.

(d) Non-current non-financial assets by geographical location


2012

2011


£m

£m

UK

7,126

7,242

Canada

1,391

1,413

Rest of the world

418

448

Total

8,935

9,103

Non-current non-financial assets for this purpose consist of investment property, property, plant and equipment and intangible assets (excluding intangible assets arising from insurance or participating investment contracts).



2.3 Administrative expenses



2012

2011


Notes

£m

£m

Restructuring and corporate transaction expenses


114

72

Interest expense


17

19

Commission expenses


394

393

Staff costs and other employee-related costs


612

569

Recovery under insurance claim

2.13

(98)

-

Other administrative expenses


646

656



1,685

1, 709

Acquisition costs deferred during the year


(202)

(178)

Impairment of deferred acquisition costs


3

-

Amortisation of deferred acquisition costs


180

132

Release of deferred acquisition costs


22

-

Total administrative expenses


1,688

1,663

Included in staff costs and other employee related costs in 2011 is a credit of £64m resulting from a change in the basis of future pension discretionary increases in the UK staff pension scheme.

During the year to 31 December 2012, certain non-participating investment contracts were reclassified as non-participating insurance contracts due to a change in the benefits available under the contracts. As a result of the reclassification deferred income of £26m has been released and recognised in the consolidated income statement in fee and commission income. Deferred acquisition costs of £22m that were considered recovered by the fees that had previously been deferred have also been released, resulting in a net increase of £4m in profit before tax.

In addition to interest expense of £17m (2011: £19m), interest expense of £77m (2011: £116m) was incurred in respect of subordinated liabilities and £36m (2011: £42m) in respect of deposits from reinsurers. For the year ended 31 December 2012, total interest expense is £130m (2011: £177m).

Total restructuring costs incurred during the year were £114m (2011: £72m), relating to a number of business unit restructuring programmes, Solvency 2 and the Retail Distribution Review. Of the restructuring costs, £109m (2011: £70m) is adjusted when determining operating profit before tax, with the remaining £5m (2011: £2m) incurred by the Heritage With Profits Fund.

2.4 Tax expense

The tax expense is attributed as follows:



2012

2011



£m

£m

Tax expense attributable to policyholders' returns


218

217

Tax expense attributable to equity holders' profits


51

32

Total tax expense


269

249

The Finance Act 2012 reduced the UK corporation tax rate to 23% with effect from 1 April 2013 and this rate has been applied in calculating the UK deferred tax position at 31 December 2012. The draft 2013 Finance Bill contains a provision to make a further 2% reduction in the UK rate of corporation tax which would result in the rate being 21% from 1 April 2014. These reductions have not been included in the calculation of deferred tax as they are subject to legislation being enacted in future years.

The new tax regime for UK life companies is effective from 1 January 2013. The basis of the regime will move from the FSA regulatory return to the statutory accounts. The deferred tax position of Standard Life Assurance Ltd (SLAL) has been updated to reflect the new regime. The transition to the new regime does not have a material impact on SLAL's deferred tax position.

The share of tax of associates and joint ventures is £9m (2011: £11m) and is included in profit before tax in the IFRS consolidated income statement in 'Share of profit from associates and joint ventures'.



2.4 Tax expense continued

The total tax expense is split as follows:



2012

2011



£m

£m

Income tax:




UK


224

269

Double tax relief


(2)

(2)

Overseas


43

31

Adjustment to tax expense in respect of prior years


(32)

12

Total income tax


233

310





Deferred tax:




Deferred tax expense/(credit) arising from the current year


36

(61)

Total deferred tax


36

(61)





Total tax expense attributable to operations


269

249





Attributable to equity holders' profits


51

32

The adjustment to tax expense in respect of prior periods includes a current tax receivable amount of £37m of policyholder tax due to a correction made in a prior year tax return.

Unrecognised tax losses of £1m from previous years were used to reduce income tax expense (2011: £nil). Unrecognised losses and timing differences of £14m were used to reduce the deferred tax expense (2011: £12m).

Deferred tax of £26m (2011: £26m) has not been recognised for the withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries.

Tax relating to components of other comprehensive income is as follows:



2012

2011



£m

£m

Tax credit on defined benefit pension schemes


(102)

(27)

Tax relating to each component of other comprehensive income


(102)

(27)

Tax relating to items taken directly to equity is as follows:


2012

2011


£m

£m

Deferred tax on reserves for employee share-based payment shares

(6)

-

Tax relating to items taken directly to equity

(6)

-

2.5 Earnings per share

(a) Basic earnings per share

Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year is the weighted average number of shares in issue less the weighted average number of shares owned by employee share trusts that have not vested unconditionally to employees.


2012

2011

Profit attributable to equity holders of Standard Life plc (£m)

698

298




Weighted average number of ordinary shares outstanding (millions)

2,351

2,301




Basic earnings per share (pence per share)

29.7

13.0

(b) Diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has one category of dilutive potential ordinary shares - share awards and share options awarded to employees. 

 

For share options, a calculation is made to determine the number of shares that could be acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated is compared with the number of shares that could be issued, or purchased, assuming the exercise of the share options. 


2012

2011

Profit attributable to equity holders of Standard Life plc (£m)

698

298




Weighted average number of ordinary shares outstanding for diluted earnings per share (millions)1

2,369

2,314




Diluted earnings per share (pence per share)

29.5

12.9

1    The number of ordinary shares outstanding at 31 December 2011 for diluted earnings per share has been restated following an amendment to the methodology used in the calculation of shares which have a dilutive effect. This restatement has no impact on diluted earnings per share.

The dilutive effect of share awards and options included in the weighted average number of ordinary shares above was 18 million (2011: 13 million).

(c) Alternative earnings per share

Earnings per share is also calculated based on operating profit before tax as well as on the profit attributable to equity holders. The Directors believe that earnings per share based on operating profit provides a better indication of the long-term operating business performance of the Group.

(c)(i)      Basic alternative earnings per share


2012

2012

2011

2011


£m

p per share

£m

p per share

Operating profit before tax

900

38.3

544

23.6

Short-term fluctuations in investment return and economic assumption changes

(29)

(1.2)

(139)

(6.0)

Restructuring and corporate transaction expenses

(109)

(4.6)

(70)

(3.1)

Impairment of intangible assets

-

-

(5)

(0.2)

Other operating profit adjustments

(4)

(0.2)

-

-

Non-operating loss before tax

(142)

(6.0)

(214)

(9.3)

Share of joint ventures' and associates' tax expense

(9)

(0.4)

-

-

Profit attributable to non-controlling interests

29

1.2

48

2.1

Profit before tax

778

33.1

378

16.4






Tax (expense)/credit attributable to:





Operating profit

(124)

(5.3)

(87)

(3.7)

Adjusted items

73

3.1

55

2.4

Profit attributable to non-controlling interests

(29)

(1.2)

(48)

(2.1)

Profit attributable to equity holders of Standard Life plc

698

29.7

298

13.0

(c)(ii) Diluted alternative earnings per share


2012

2012

2011

2011


£m

p per share

£m

p per share

Operating profit before tax

900

38.0

544

23.5

Short-term fluctuations in investment return and economic assumption changes

(29)

(1.2)

(139)

(6.0)

Restructuring and corporate transaction expenses

(109)

(4.6)

(70)

(3.1)

Impairment of intangible assets

-

-

(5)

(0.2)

Other operating profit adjustments

(4)

(0.2)

-

-

Non-operating loss before tax

(142)

(6.0)

(214)

(9.3)

Share of joint ventures' and associates' tax expense

(9)

(0.4)

-

-

Profit attributable to non-controlling interests

29

1.2

48

2.1

 Profit before tax

778

32.8

378

16.3






Tax (expense)/credit attributable to:





Operating profit

(124)

(5.2)

(87)

(3.7)

Adjusted items

73

3.1

55

2.4

Profit attributable to non-controlling interests

(29)

(1.2)

(48)

(2.1)

Profit attributable to equity holders of Standard Life plc

698

29.5

298

12.9

 

2.6 Dividends

The Company paid a final dividend of 9.20 pence per share (final 2010: 8.65 pence) totalling £216m in respect of the year ended 31 December 2011 on 31 May 2012 (final 2010: £197m) and an interim dividend of 4.90 pence per share (interim 2011: 4.60 pence) totalling £115m (interim 2011: £106m) in respect of the year ended 31 December 2012 on 14 November 2012.

Subsequent to 31 December 2012, the Directors have proposed a final dividend for the year ended 31 December 2012 of 9.80 pence per ordinary share, £231m in total. In addition, the Directors have proposed a special dividend of 12.80 pence per ordinary share, £302m in total. The dividends will be paid on 21 May 2013 to shareholders on the Company's register as at 5 April 2013, subject to approval at the Annual General Meeting on 14 May 2013. The dividends will be recorded as an appropriation of retained earnings in the financial statements for the year ended 31 December 2013.

Commencing with the final dividend for 2011, the option to receive dividend entitlement under the Scrip scheme was removed and has been replaced with a dividend reinvestment plan. Investors who took part in the Scrip scheme received their dividend entitlement in the form of shares rather than cash and the distribution under the Scrip scheme was recorded as an appropriation of retained earnings. Dividends paid during the year ended 31 December 2011 comprise £162m paid in cash and £141m settled by the issue of shares under the Scrip scheme.

2.7 Short-term fluctuations in investment return and economic assumption changes

The Group focuses on operating profit as a measure of its performance, which incorporates expected returns on investments backing equity holder funds with a consistent allowance for corresponding expected movements in equity holder liabilities. The methodology used in operating profit is outlined below.

Operating profit is calculated based on expected returns on investments backing equity holder funds, with consistent allowance for the corresponding expected movements in equity holder liabilities. Impacts arising from the difference between the expected return and actual return on investments, and the corresponding impact on equity holder liabilities except where they are directly related to a significant management action, are excluded from operating profit and are presented within profit before tax. As a result, the components of IFRS profit attributable to market movements and interest rate changes which give rise to variances between actual and expected investment returns, as well as the impact of changes in economic assumptions on equity holder liabilities, are excluded from operating profit and disclosed separately within the heading of short-term fluctuations in investment return and economic assumption changes.

The expected rates of return for debt securities, equity securities and property are determined separately for each of the Group's operations and are consistent with the expected rates of return as determined under the Group's published European Embedded Value (EEV) methodology. The expected rates of return for equity securities and property, with the exception of the Canadian operations, are determined based on the gilt spot rates of an appropriate duration plus an equity risk premium or property risk premium, respectively. The expected rates of return on equity securities and property for Canadian operations are determined by the Appointed Actuary in Canada. 

The principal assumptions, as set at the start of the year, in respect of gross investment returns underlying the calculation of the expected investment return for equity securities and property are as follows:


2012


2011


UK

Canada

UK

Canada


%

%

%

%

Equity securities

4.93

8.60

6.49

8.60

Property

3.93

8.60

5.49

8.60

In respect of debt securities at fair value through profit or loss, the expected rate of return is determined based on the average prospective yields for the debt securities actually held or, in respect of the Canadian operations, is determined by the Appointed Actuary in Canada. For debt securities classified as available-for-sale that support liabilities measured at amortised cost the expected rate of return is the effective interest rate adjusted for an allowance, established at initial recognition, for expected defaults. If debt securities classified as available-for-sale are sold, any gain or loss is amortised within the expected return over the period to the earlier of the maturity date of the sold debt security or the redemption date of the supported liability.  

Gains and losses on foreign exchange are deemed to represent short-term fluctuations in investment return and economic assumption changes and thus are excluded from operating profit.

For the year ended 31 December 2012, short-term fluctuations in investment return and economic assumption changes were losses of £29m (2011: £139m). Short-term fluctuations in investment return relate principally to the investment volatility in Canada non-segregated funds and UK annuities, and in respect of the Group's subordinated liabilities and assets backing those liabilities.


2.8 Issued share capital and shares held by trusts

(a) Issued share capital

The movement in the issued ordinary share capital of the Company during the year was:


2012

2012

2011

2011


Number

£m

Number

£m

At 1 January

2,353,665,822

235

2,283,019,841

228

Shares issued in lieu of cash dividends

-

-

70,138,459

7

Shares issued in respect of share incentive plans

445,155

-

507,364

-

Shares issued in respect of share options

3,867,675

1

158

-

At 31 December

2,357,978,652

236

2,353,665,822

235

As discussed in Note 2.6 - Dividends, no shares have been issued in respect of dividends during 2012 since the Scrip dividend scheme has been removed. In 2011, 70,138,459 shares were issued under the scheme.

The Group operates share incentive plans, allowing employees the opportunity to buy shares from their salary each month. The maximum purchase that an employee can make in any one year is £1,500. The Group offers to match the first £25 of shares bought each month. During the year ended 31 December 2012, the Company allotted 445,155 (2011: 507,364) ordinary shares to Group employees under the share incentive plans.

The Group also operates a Long-Term Incentive Plan (LTIP) for executives and senior management and a Sharesave (Save-as-you-earn) scheme for all eligible employees. During the year ended 31 December 2012, 3,832,753 (2011: nil) and 34,922 (2011: 158) ordinary shares were issued in relation to the LTIP and Sharesave schemes respectively.

(b) Shares held by trusts

The Employee Share Trust (EST) purchases and holds shares in the Company for delivery to employees under various employee share schemes. Shares purchased by the EST are presented as a deduction from equity in the IFRS consolidated statement of financial position. Share-based liabilities to employees may also be settled by the issue of new shares.

Shares held by trusts also include shares held by the Unclaimed Asset Trust (UAT). The shares held by the UAT are those not yet claimed by the eligible members of The Standard Life Assurance Company (SLAC) following its demutualisation on 10 July 2006.

Any corresponding obligation to deliver a fixed number of the Company's equity instruments to employees, or eligible members of SLAC, is offset within the shares held by trusts reserve.

The number of shares held by trusts at 31 December 2012, which were not offset by a corresponding obligation to deliver a fixed number of equity instruments, was 2,527,223 (2011: 10,879,286).

2.9 Insurance contracts, investment contracts and reinsurance contracts



2012

2011



£m

£m

Non-participating insurance contract liabilities


29,050

25,051

Non-participating investment contract liabilities


84,201

77,507

Non-participating contract liabilities


113,251

102,558





Participating insurance contract liabilities


15,919

16,509

Participating investment contract liabilities


14,993

15,319

Unallocated divisible surplus


706

725

Participating contract liabilities


31,618

32,553


2.9 Insurance contracts, investment contracts and reinsurance contracts continued

The movement in insurance contract liabilities, participating investment contract liabilities and reinsurance contracts during the year was as follows:


Participating insurance contract liabilities

Non-participating insurance

contract
liabilities

Participating investment contract liabilities

Total insurance and participating contracts

Reinsurance contracts

Net

2012

£m

£m

£m

£m

£m

£m

At 1 January

16,509

25,051

15,319

56,879

(6,573)

50,306

Expected change

(1,331)

(762)

(897)

(2,990)

310

(2,680)

Methodology/modelling changes

(18)

(165)

64

(119)

110

(9)

Effect of changes in:







   Economic assumptions

(49)

1,075

(105)

921

(451)

470

   Non-economic assumptions

(7)

(100)

(38)

(145)

73

(72)

Effect of:







   Economic experience

928

548

644

2,120

(1)

2,119

   Non-economic experience

56

(662)

(46)

(652)

3

(649)

New business

26

2,102

76

2,204

-

2,204

Total change in contract liabilities

(395)

2,036

(302)

1,339

44

1,383

Contract reclassification

-

2,182

-

2,182

-

2,182

Foreign exchange adjustment

(195)

(219)

(24)

(438)

(2)

(440)

At 31 December

15,919

29,050

14,993

59,962

(6,531)

53,431

Reinsurance assets





(6,912)


Reinsurance liabilities





381







(6,531)


Due to a change in the benefits available under certain contracts, £2,182m of non-participating investment contracts have been reclassified as non-participating insurance contracts during the year ended 31 December 2012. Refer to Note 2.3 - Administrative expenses. As the majority of the liability in respect of these contracts relates to the unit fund, the expected change for these contracts has been set to nil, with the full investment growth of £172m shown in economic experience and the value of claims included in non-economic experience.

Due to changes in economic and non-economic factors, certain assumptions used in estimating insurance and investment contract liabilities have been revised. Therefore, the change in liabilities reflects actual performance over the year, changes in assumptions and, to a limited extent, improvements in modelling techniques.

Non-economic assumptions decrease of £72m (net of reinsurance) includes a decrease of £45m (net of reinsurance) in respect of participating business, which is primarily in respect of the best estimate non-economic assumptions used in calculating the value of future transfers to equity holders in respect of participating business in the HWPF.

Economic assumptions reflect changes in fixed income yields, leading to lower valuation rates on non-participating business, and other market movements.


The movement in insurance contract liabilities, participating investment contract liabilities and reinsurance contracts during 2011 was as follows:


Participating insurance contract liabilities

Non-participating insurance

contract
 liabilities

Participating investment contract liabilities

Total insurance and participating contracts

Reinsurance contracts

Net

2011

£m

£m

£m

£m

£m

£m

At 1 January

17,357

23,564

15,329

56,250

(6,962)

49,288

Expected change

(1,014)

(523)

(658)

(2,195)

301

(1,894)

Methodology/modelling changes

(11)

(7)

14

(4)

-

(4)

Effect of changes in:







   Economic assumptions

(37)

1,309

176

1,448

(292)

1,156

   Non-economic assumptions

4

(245)

15

(226)

385

159

Effect of:







   Economic experience

325

595

438

1,358

(23)

1,335

   Non-economic experience

38

(507)

(51)

(520)

18

(502)

New business

30

1,013

76

1,119

(6)

1,113

Total change in contract liabilities

(665)

1,635

10

980

383

1,363

Foreign exchange adjustment

(183)

(148)

(20)

(351)

6

(345)

At 31 December

16,509

25,051

15,319

56,879

(6,573)

50,306

Reinsurance assets





(6,818)


Reinsurance liabilities





245







(6,573)


 

The change in non-participating investment contract liabilities was as follows:


2012

2011


£m

£m

At 1 January

77,507

75,600

Contributions

11,027

11,904

Initial charges and reduced allocations

(6)

(7)

Account balances paid on surrender and other terminations in the year

(9,062)

(8,525)

Investment return credited and related benefits

7,718

(757)

Foreign exchange adjustment

(406)

(308)

Contract reclassification

(2,182)

-

Recurring management charges

(395)

(400)

At 31 December

84,201

77,507

The movement in the unallocated divisible surplus (UDS) was as follows:


2012

2011


£m

£m

At 1 January

725

788

Change in UDS recognised in the income statement

(39)

(87)

Change in UDS not recognised in the income statement

(11)

(11)

Foreign exchange adjustment

31

35

At 31 December

706

725


2.10 Defined benefit and defined contribution plans

(a) Analysis of amounts recognised in the IFRS consolidated income statement

The amounts recognised in the summary consolidated income statement for defined contribution and defined benefit schemes are as follows:



2012

2011



£m

£m

Current service cost


(64)

(60)

Interest cost on benefit obligation


(106)

(107)

Expected return on plan assets


150

136

Past service cost


(1)

64

(Charge)/credit recognised in the IFRS consolidated income statement


(21)

33

Included in past service costs in 2011 was £64m resulting from a change in the basis of future pension discretionary increases in the UK staff pension scheme.

(b) Analysis of amounts recognised in the IFRS consolidated statement of financial position

The present value of the defined benefit obligation less the fair value of gross scheme assets is as follows:

 
 
2012
 
 
2011
 
 
UK
Canada
Ireland
Total
UK
Canada
Ireland
Total
 
£m
£m
£m
£m
£m
£m
£m
£m
Present value of funded obligation
(2,121)
(233)
(69)
(2,423)
(1,972)
(215)
(54)
(2,241)
Present value of unfunded obligation
-
(70)
-
(70)
-
(68)
-
(68)
Fair value of plan assets
2,642
188
61
2,891
2,519
179
58
2,756
Adjustment for unrecognised past service costs
-
(5)
-
(5)
-
(5)
-
(5)
Effect of limit on plan surpluses
(182)
-
-
(182)
(209)
-
-
(209)
Net asset/(liability) in the IFRS consolidated statement of financial position
339
(120)
(8)
211
338
(109)
4
233

 

The Group also recognises a net liability of £7m (2011: £6m) arising from a scheme with a total defined benefit obligation of £7m (2011: £6m) administered for the benefit of employees in Germany, resulting in a net asset, presented in the IFRS consolidated statement of financial position, of £204m (2011: £227m).

Under the guidance contained in IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, the UK scheme surplus is considered to be recoverable as a right to a refund exists. In measuring the economic benefit available as a refund at 31 December 2012, the surplus has been reduced by £182m to reflect the authorised surplus payments charge of 35% that would arise on a refund.  When measuring the defined benefit asset at 31 December 2011, a component of the surplus amounting to £209m was not considered recoverable and therefore was not recognised.

(c) Principal assumptions

The principal economic assumptions used in determining the year end pension benefit obligation for the Group's plans are as follows:



2012



2011



UK

Canada

Ireland

UK

Canada

Ireland


%

%

%

%

%

%

Rate of increase in salaries

5.30

3.50

3.50

4.45-5.45

3.50

3.50

Rate of increase in pensions

2.70

1.33

1.00

2.85

1.33

1.00

Discount rate

4.50

4.00

3.90

4.60

4.50

5.10

Inflation assumption

2.70-3.30

2.00

2.00

2.85-3.45

2.00

2.00

Expected return on plan assets

5.40

5.75

3.90

5.45

5.75

4.00

2.11 Investment property and financial assets

The values of the Group's holdings of investment properties and financial assets are impacted by the Group's exposure to market and credit risk.

The Group's appetite for risk, the sources of these risks and specific actions taken to manage these risks are set out in Section 1.5 - Risk management of the Business review. In recent years, the focus of the Group's risk management activities has evolved.  The information presented in this Note, including the 2011 comparative information, has been updated to reflect the current focus of activities.

The assets on the Group's statement of financial position can be split into four categories (risk segments) which give the shareholder different exposures to the risks outlined in the Business review.

These categories are:

Shareholder business

Shareholder business refers to the assets to which the shareholder is directly exposed. For the purposes of this information the shareholder refers to the equity holders of SL plc.

Participating business

Participating business refers to the assets of the participating funds of the life operations of the Group.

Unit linked and segregated funds

Unit linked and segregated funds refer to the assets of the UK and Europe unit linked funds, Canada segregated funds and, in respect of Asia and Emerging Markets, the linked business of Standard Life International Limited and Standard Life Asia Limited unit linked funds.

Third party interest in consolidated funds and non-controlling interests (TPICF and NCI)

Third party interest in consolidated funds and non-controlling interests refers to the assets recorded on the Group consolidated statement of financial position which belong to third parties. The Group controls the entities that own the assets but the Group does not own 100% of the equity or units of the relevant entities.

The total Group holding in investment property and financial assets has been presented below based on the risk segment.


Shareholder business

Participating business

Unit linked and segregated funds

TPICF and NCI1

Total

31 December 2012

£m

£m

£m

£m

£m

Loans to associates and joint ventures

16

-

7

3

26

Investment property

521

2,048

4,701

1,295

8,565

Equity securities and interests in pooled investment funds

197

9,079

53,019

3,517

65,812

Debt securities

12,423

30,005

24,823

6,050

73,301

Loans

2,855

226

218

-

3,299

Derivative financial assets

63

1,106

681

300

2,150

Receivables and other financial assets

515

496

550

156

1,717

Cash and cash equivalents

1,537

1,494

5,461

1,450

9,942

Total

18,127

44,454

89,460

12,771

164,812

1      Third party interest in consolidated funds and non-controlling interests.


Shareholder business

Participating business

Unit linked and segregated funds

TPICF and NCI1

Total

31 December 2011

£m

£m

£m

£m

£m

Loans to associates and joint ventures

16

-

27

13

56

Investment property

741

2,271

4,418

1,313

8,743

Equity securities and interests in pooled investment funds

200

9,334

46,539

2,458

58,531

Debt securities

11,054

30,485

21,879

3,758

67,176

Loans

2,832

250

137

-

3,219

Derivative financial assets

250

1,016

723

223

2,212

Receivables and other financial assets

283

779

636

153

1,851

Cash and cash equivalents

1,077

1,665

5,122

1,323

9,187

Total

16,453

45,800

79,481

9,241

150,975

1    Third party interest in consolidated funds and non-controlling interests.

The shareholder is exposed to the impact of market movements in property prices, interest rates and foreign exchange rates and the impact of movements in credit ratings on the value of assets held by the shareholder business. The shareholder is also exposed to the market and credit risk that the assets of the participating funds of the life operations of the Group are not sufficient to meet their obligations. In this situation, the shareholder would be exposed to the full shortfall in the funds.

No further analysis is provided on the assets of the remaining risk segments unit linked and segregated funds and TPICF and NCI. Assets of the unit linked and segregated funds are managed in accordance with the mandates of the particular funds and the financial risks of the assets are expected to be borne by the policyholder. The shareholder is not exposed to market and credit risk from assets in respect of TPICF and NCI since the financial risks of the assets are borne by third parties.

The tables which follow give further analysis of the assets of the shareholder and participating businesses, with further explanation of the market and credit risks that the shareholder is directly exposed to as a result of holding these assets, at the reporting date.

 

2.11 Investment property and financial assets continued

Investment properties

The Group is subject to property price risk due to changes in the value and return on holdings in investment properties. This risk arises from various direct and indirect holdings which are controlled through the use of portfolio limits.

The tables below analyse investment property held by the shareholder and participating businesses by country and sector.

Shareholder business


Office

Industrial

Retail

Other

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

Canada

392

612

57

57

-

-

72

72

521

741

Total

392

612

57

57

-

-

72

72

521

741

Participating business


Office

Industrial

Retail

Other

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

UK

560

644

264

317

962

1,013

-

-

1,786

1,974

Canada

50

54

20

19

5

5

13

12

88

90

Belgium

14

32

-

-

-

-

-

-

14

32

France

2

2

27

30

-

-

2

-

31

32

Spain

129

143

-

-

-

-

-

-

129

143

Total

755

875

311

366

967

1,018

15

12

2,048

2,271

There is no exposure to residential property in the shareholder and participating businesses.

Equity securities

The Group is subject to equity price risk due to daily changes in the market value and returns in the holdings in its equity security portfolio. Exposure to equity securities are primarily managed through the use of investment mandates including constraints based on appropriate equity indices.

The following table analyses equity securities held by shareholder and participating businesses by country.


Shareholder business

Participating business

Total


2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

UK

19

15

4,553

4,582

4,572

4,597

Canada

105

122

204

206

309

328

Australia

1

2

32

32

33

34

Austria

-

-

11

7

11

7

Belgium

-

-

96

77

96

77

Denmark

1

-

102

56

103

56

Finland

-

-

30

1

30

1

France

2

1

500

368

502

369

Germany

1

1

395

476

396

477

Greece

-

-

1

1

1

1

Ireland

1

-

102

123

103

123

Italy

-

-

104

94

104

94

Japan

3

2

77

81

80

83

Mexico

-

-

5

2

5

2

Netherlands

1

1

336

503

337

504

Norway

-

-

53

102

53

102

Portugal

-

-

30

40

30

40

Spain

-

-

89

166

89

166

Sweden

1

-

221

177

222

177

Switzerland

1

1

391

455

392

456

US

30

22

1,525

1,570

1,555

1,592

Other

25

24

217

209

242

233

Total

191

191

9,074

9,328

9,265

9,519

In addition to the equity securities analysed above, the shareholder business has interests in pooled investment funds of £6m (2011: £9m) and the participating business has interests in pooled investment funds of £5m (2011: £6m).

Debt securities

The Group is exposed to interest rate risk and credit risk through its holdings in debt securities. The Group manages its exposure to debt securities by setting exposure limits by name of issuer, sector and credit rating.

At 31 December 2012, the total holding of debt securities was £73,301m (31 December 2011: £67,176m). At 31 December 2012, the total shareholder business holding of debt securities was £12,423m (31 December 2011: £11,054m), of which 96% (31 December 2011: 96%) was rated as investment grade. The total participating business holding of debt securities at 31 December 2012 was £30,005m (31 December 2011: £30,485m), of which 96% (31 December 2011: 96%) was rated as investment grade. This shows the high quality of the debt securities held.

The following tables show the shareholder and participating businesses' exposure to credit risk from debt securities analysed by credit rating and country.

Shareholder business


Government, Provincial and Municipal1

Banks

Other financial institutions

Other corporate

Other

Total


 2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

AAA

1,281

1,083

144

147

126

143

155

307

161

166

1,867

1,846

AA

1,471

1,172

524

723

233

374

399

352

-

-

2,627

2,621

A

1,319

1,383

1,238

893

885

746

2,876

2,191

-

-

6,318

5,213

BBB

2

-

87

70

56

75

910

704

-

-

1,055

849

Below BBB or not rated

9

5

49

41

334

308

88

97

76

74

556

525

Total

4,082

3,643

2,042

1,874

1,634

1,646

4,428

3,651

237

240

12,423

11,054

1      Government, Provincial and Municipal includes debt securities which are issued by or explicitly guaranteed by the national government. For Canada, this includes debt securities which are issued by or explicitly guaranteed by the Crown Corporations of the Government of Canada.


Government, Provincial and Municipal1

Banks

Other financial institutions

Other corporate

Other2

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

UK

302

384

607

514

844

824

743

512

74

74

2,570

2,308

Canada

3,441

3,225

179

240

290

288

2,211

2,124

-

-

6,121

5,877

Australia

-

-

85

12

6

5

9

1

-

-

100

18

Austria

-

-

-

-

-

-

-

-

-

-

-

-

Belgium

-

-

53

1

-

-

1

1

-

-

54

2

Denmark

-

-

5

66

-

-

6

17

-

-

11

83

Finland

-

-

-

50

-

-

1

-

-

-

1

50

France

-

-

228

103

4

2

402

315

-

-

634

420

Germany

315

24

114

104

22

3

208

250

-

-

659

381

Greece

-

-

-

-

-

-

-

-

-

-

-

-

Ireland

-

-

-

2

10

3

2

2

-

-

12

7

Italy

-

-

33

24

2

-

52

67

-

-

87

91

Japan

2

-

70

50

18

27

21

5

-

-

111

82

Mexico

1

-

-

-

-

-

77

43

-

-

78

43

Netherlands

-

-

286

182

1

1

154

15

-

-

441

198

Norway

1

-

21

52

-

-

39

31

-

-

61

83

Portugal

-

-

-

-

-

-

-

1

-

-

-

1

Spain

-

-

9

17

-

-

39

39

-

-

48

56

Sweden

1

-

58

97

-

-

60

28

-

-

119

125

Switzerland

-

-

78

129

11

11

13

12

-

-

102

152

US

12

7

173

228

424

482

364

182

-

-

973

899

Other

7

3

43

3

2

-

26

6

163

166

241

178

Total

4,082

3,643

2,042

1,874

1,634

1,646

4,428

3,651

237

240

12,423

11,054

1      Government, Provincial and Municipal includes debt securities which are issued by or explicitly guaranteed by the national government. For Canada, this includes debt securities which are issued by or explicitly guaranteed by the Crown Corporations of the Government of Canada.

2    This balance primarily consists of securities held in supranationals.

 

2.11 Investment property and financial assets continued

Participating business


Government, Provincial and Municipal1

Banks

Other financial   institutions

Other corporate

Other

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

AAA

16,452

19,616

760

548

990

1,074

155

55

244

425

18,601

21,718

AA

2,070

344

494

679

1,084

826

297

262

-

-

3,945

2,111

A

131

120

1,643

1,607

1,732

1,261

1,195

1,210

-

-

4,701

4,198

BBB

4

-

313

351

448

362

763

597

-

-

1,528

1,310

Below BBB or not rated

4

-

223

263

586

506

417

379

-

-

1,230

1,148

Total

18,661

20,080

3,433

3,448

4,840

4,029

2,827

2,503

244

425

30,005

30,485

1      Government, Provincial and Municipal includes debt securities which are issued by or explicitly guaranteed by the national government. For Canada, this includes debt securities which are issued by or explicitly guaranteed by the Crown Corporations of the Government of Canada.

 


Government, Provincial and Municipal1

Banks

Other financial institutions

Other corporate

Other2

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

UK

13,401

16,326

1,167

1,121

3,149

2,751

1,082

1,079

-

-

18,799

21,277

Canada

396

401

23

-

49

44

59

53

-

-

527

498

Australia

1

65

180

187

95

62

21

23

-

-

297

337

Austria

364

225

27

-

-

66

3

1

-

-

394

292

Belgium

286

1

24

9

68

-

21

11

-

-

399

21

Denmark

6

6

33

48

-

1

58

37

-

-

97

92

Finland

203

218

45

133

25

-

13

2

-

-

286

353

France

1,287

876

324

210

257

92

435

394

-

-

2,303

1,572

Germany

1,988

1,338

356

512

126

161

221

178

-

-

2,691

2,189

Greece

-

-

-

-

-

-

4

2

-

-

4

2

Ireland

-

-

5

12

56

37

13

11

-

-

74

60

Italy

2

1

74

71

42

64

89

108

-

-

207

244

Japan

33

16

32

66

1

29

-

-

-

-

66

111

Mexico

-

1

-

-

-

-

61

34

-

-

61

35

Netherlands

474

374

398

303

223

137

42

107

-

-

1,137

921

Norway

142

82

133

64

14

54

63

20

-

-

352

220

Portugal

-

-

-

-

-

-

1

3

-

-

1

3

Spain

5

9

24

73

6

4

82

64

-

-

117

150

Sweden

68

71

189

108

11

10

31

13

-

-

299

202

Switzerland

-

-

19

170

29

64

12

12

-

-

60

246

US

5

69

318

336

437

312

310

206

-

-

1,070

923

Other

-

1

62

25

252

141

206

145

244

425

764

737

Total

18,661

20,080

3,433

3,448

4,840

4,029

2,827

2,503

244

425

30,005

30,485

1      Government, Provincial and Municipal includes debt securities which are issued by or explicitly guaranteed by the national government. For Canada, this includes debt securities which are issued by or explicitly guaranteed by the Crown Corporations of the Government of Canada.

2    This balance primarily consists of securities held in supranationals.

Loans

The Group is exposed to interest rate risk and credit risk from loans issued. The Group manages its exposure by setting portfolio limits by individual business unit. These limits specify the proportion of the value of total portfolio of mortgage loans and mortgage bonds that are represented by a single, or group of related counterparties, geographic area, employment status, or economic sector, risk rating and loan to value percentages.

The shareholder business holding of loans of £2,855m (2011: £2,832m) primarily comprises the Canadian non-segregated funds commercial mortgage book. This mortgage book is deemed to be of very high quality. The Canada mortgage book has an average loan to value of 39% (2011: 44%).

The participating business holding of loans of £226m (31 December 2011: £250m) primarily comprises of UK mortgages. These mortgage books are deemed to be of very high quality.

2.12 Fair value hierarchy of financial instruments

To provide further information on the approach used to determine the fair value of certain financial assets and derivative financial liabilities measured as at fair value on the Group's IFRS statement of financial position, the fair value of these financial instruments has been categorised below to reflect the following fair value hierarchy:

Level 1: Fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Fair values measured using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: Fair values measured using inputs that are not based on observable market data (unobservable inputs)

The table below presents the Group's financial assets measured at fair value by level of the fair value hierarchy.


Shareholder business

Participating business

Unit linked and segregated funds

TPICF and NCI1

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

Level 1

1,016

744

26,496

28,810

59,139

53,426

3,892

2,582

90,543

85,562

Level 2

10,672

9,759

12,776

10,994

19,113

15,528

5,600

3,449

48,161

39,730

Level 3

995

1,001

918

1,031

271

187

375

408

2,559

2,627

Total financial assets at fair value

12,683

11,504

40,190

40,835

78,523

69,141

9,867

6,439

141,263

127,919

1    Third party interest in consolidated funds and non-controlling interests.

The table below presents the Group's financial liabilities measured at fair value by level of the fair value hierarchy.


Shareholder business

Participating business

Unit linked and segregated funds

TPICF and NCI1

Total


2012

2011

2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

Level 1

2

2

7

86

82

257

36

89

127

434

Level 2

21

14

41

40

82,067

75,140

12,232

8,568

94,361

83,762

Level 3

-

-

-

-

-

-

3

7

3

7

Total financial liabilities at fair value

23

16

48

126

82,149

75,397

12,271

8,664

94,491

84,203

1    Third party interest in consolidated funds and non-controlling interests.

Level 1 financial instruments principally include equity securities listed on a recognised exchange, certain government and supranational institution bonds and exchange traded futures and options.

Level 2 financial instruments principally include certain government bonds, listed or publicly quoted corporate bonds, commercial paper, certificates of deposit and derivative instruments which are not exchange traded. Corporate bonds have generally been classified as level 2 as the composite price provided by external pricing providers may include, as an input, quotes provided by some banks that are not based on actual transaction prices.

Level 3 financial instruments principally include unlisted equity securities, being predominantly interests in private equity funds, listed or publicly quoted corporate bonds for which prices are not available from external pricing providers or where such prices are considered to be stale (including some asset backed securities) or are based on single broker indicative quotes and unquoted bonds where credit spreads, being a significant input to the valuation technique, are obtained from a broker or estimated internally.

Shareholder business

The tables that follow present an analysis of the financial assets and financial liabilities held by the shareholder business measured at fair value, by level of the fair value hierarchy for each category.


Fair value hierarchy




Level 1

Level 2

Level 3

Total


2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

Financial assets









Equity securities and interests in pooled investment funds

182

189

3

-

12

11

197

200

Debt securities

834

555

10,606

9,509

983

990

12,423

11,054

Derivative financial assets

-

-

63

250

-

-

63

250

Total

1,016

744

10,672

9,759

995

1,001

12,683

11,504

 

 

 

2.12 Fair value hierarchy of financial instruments continued


Fair value hierarchy




Level 1

Level 2

Level 3

Total


2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

Financial Liabilities









Derivative financial liabilities

2

2

21

14

-

-

23

16

Total

2

2

21

14

-

-

23

16

The tables that follow present an analysis of the financial assets and financial liabilities held by the participating business measured at fair value, by level of the fair value hierarchy for each category.

Participating business


Fair value hierarchy




Level 1

Level 2

Level 3

Total


2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

Financial Assets









Equity securities and interests in pooled investment funds

8,380

8,582

-

-

699

752

9,079

9,334

Debt securities

17,701

19,861

12,085

10,345

219

279

30,005

30,485

Derivative financial assets

415

367

691

649

-

-

1,106

1,016

Total

26,496

28,810

12,776

10,994

918

1,031

40,190

40,835

 


Fair value hierarchy




Level 1

Level 2

Level 3

Total


2012

2011

2012

2011

2012

2011

2012

2011


£m

£m

£m

£m

£m

£m

£m

£m

Financial Liabilities









Derivative financial liabilities

7

86

41

41

-

-

48

127

Total

7

86

41

41

-

-

48

127

2.13 Provisions and contingent liabilities

(a) Legal proceedings and regulations

A judgment handed down on 1 February 2012 in the Commercial Court in London found in favour of Standard Life Assurance Limited (SLAL) in its claim against the insurers of its 2008/2009 professional indemnity policy in relation to the Standard Life Pension Sterling Fund. SLAL received a cash receipt of £98m including interest and reimbursement of legal fees.

An appeal was subsequently made by the insurers. Given that the judgment was under appeal, a risk existed that SLAL would be required to return the cash received or a portion of the cash received to the insurers and therefore, a provision was recognised by the Group in respect of the cash received.

On 18 December 2012, the Court of Appeal handed down a judgment upholding the decision of the Commercial Court, dismissing the insurers' appeal and finding in favour of SLAL. In addition, SLAL was awarded its costs in the appeal. In January 2013 SLAL received notification from the lawyers acting for the insurers that they would not seek leave to appeal to the Supreme Court.

The Group has released the provision in the consolidated financial statements for the year ended 31 December 2012.

Additionally, the Group, like other financial organisations, is subject to legal proceedings and complaints in the normal course of its business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, the Directors do not believe that such proceedings (including litigation) will have a material effect on the results and financial position of the Group.

The Group is subject to insurance solvency regulations in all the territories in which it issues insurance and investment contracts, and it has complied in material respects with local solvency and other regulations. Therefore, there are no contingencies in respect of these regulations.

(b) Issued share capital

The Scheme of Demutualisation sets a 10-year time limit, ending in 2016, for those eligible members of The Standard Life Assurance Company who were not allocated shares at the date of demutualisation to claim their entitlements. As future issues of these shares are dependent upon the actions of eligible members, it is not practical to estimate the financial effect of this potential obligation.


(c) Other

In the ordinary course of business, Standard Life Trust Company (SLTC) enters into agreements which contain guarantee provisions for clearing system arrangements related to investment activities. Under such arrangements, the company, together with other participants in the clearing systems, may be required to guarantee certain obligations of a defaulting member. The guarantee provisions and amounts vary based upon the agreement. The company cannot estimate the amount, if any, that may be payable upon default. To facilitate its participation in the clearing system, SLTC has provided as security a bank credit facility up to a maximum of CA$84m.

2.14 Commitments

(a) Capital commitments

As at 31 December 2012 capital expenditure that was authorised and contracted for, but not provided and incurred, was £215m (2011: £275m) in respect of investment properties. Of this amount, £185m (2011: £248m) and £30m (2011: £27m) relates to the contractual obligations to purchase, construct or develop investment property and repair, maintain or enhance investment property respectively.

(b) Unrecognised financial instruments

The Group has committed the following unrecognised financial instruments to customers and third parties:



2012

2011



£m

£m

Commitments to extend credit:




   Original term to maturity of one year or less


42

109

   Original term to maturity of more than one year


-

3

Other commitments


289

273

Included in other commitments is £258m (2011: £257m) committed by certain subsidiaries which are not fully owned by the Group. These commitments are funded through contractually agreed additional investments in the subsidiary by the Group and the non-controlling interests. The levels of funding are not necessarily in line with the relevant percentage holdings.

(c) Operating lease commitments

The Group has entered into commercial non-cancellable leases on certain property, plant and equipment where it is not in the best interest of the Group to purchase these assets. Such leases have varying terms, escalation clauses and renewal rights.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:



2012

2011



£m

£m

Not later than one year


32

29

Later than one year and no later than five years


83

93

Later than five years


117

120

Total operating lease commitments


232

242

2.15 Related party transactions

(a) Transactions with/from related parties

Transactions with related parties carried out by the Group during the year were as follows:


2012

2011


£m

£m

Sale to:



Associates

13

8,397

Joint ventures

77

51

Other related parties

56

57


146

8,505

Purchase from:



Associates

-

8,993

Joint ventures

21

24


21

9,017

Sales to other related parties include management fees received from non-consolidated UK mutual funds managed by Standard Life Investments. Transactions with associates presented for the 12 months to 31 December 2011 relate primarily to purchases and sales of holdings in two sub-funds of the Standard Life (Global Liquidity Funds) plc (GLF).  During the year ended 31 December 2011, these funds were restructured with the majority of the external holding in these funds transferred to a third party.

2.15 Related party transactions continued

(a) Transactions with/from related parties continued

The remaining assets were transferred to two new GLF sub-funds, which are subsidiaries of the Group.  As a result of the restructure, the GLF sub-funds are no longer associates of the Group.

In addition to the amounts shown above, the Group's defined benefit pension schemes have assets of £845m (2011: £739m) invested in investment vehicles managed by the Group.

(b) Transactions with key management personnel and their close family members

All transactions between the key management personnel and their close family members and the Group during the year are on commercial terms which are equivalent to those available to all employees of the Group.

During the year to 31 December 2012, the key management personnel and their close family members contributed £1.2m (2011: £4.2m) to products sold by the Group.

2.16 Capital statement

The Group's capital position is analysed between UK regulated life business, overseas life operations and other activities. The UK regulated life business is analysed by the nature of the underlying funds and includes German and Irish business written by branches of UK regulated companies. Other activities comprise investment management and group corporate centre. The Group's capital position, based on draft regulatory returns, is set out below:


UK regulated life business







Heritage With Profits Fund1

Proprietary business funds

Life business

equity holders' funds

Total UK regulated

life business

Overseas life operations

Total life business

Other activities

Group total

2012

£m

£m

£m

£m

£m

£m

£m

£m

Available capital resources


















Equity holders' funds









Held outside life assurance funds

-

-

794

794

1,675

2,469

783

3,252

Held within life assurance funds

-

1,103

-

1,103

-

1,103

-

1,103










Equity attributable to ordinary
equity holders of Standard Life plc

-

1,103

794

1,897

1,675

3,572

783

4,355










Unallocated divisible surplus

706

-

-

706

-

706

-

706










Other sources of capital









Subordinated liabilities

-

-

-

-

246

246

1,622

1,868

Internal subordinated liabilities

-

-

1,124

1,124

-

1,124

(1,124)

-


-

-

1,124

1,124

246

1,370

498

1,868










Adjustments onto regulatory basis









Changes to the valuation of contract liabilities

3,288

(11)

-

3,277

-

3,277

-

3,277

Exclusion of deferred acquisition costs and other inadmissible assets

(71)

(666)

(59)

(796)

(173)

(969)

(132)

(1,101)

Exclusion of deferred income

84

255

-

339

(1)

338

-

338

Changes to the valuation of other assets and liabilities

-

(553)

(38)

(591)

85

(506)

259

(247)


3,301

(975)

(97)

2,229

(89)

2,140

127

2,267










Total available capital resources to meet regulatory requirement

4,007

128

1,821

5,956

1,832

7,788

1,408

9,196