Consolidated income statement

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Year ended 31 December 2010 Note 2010 £m 2009 £m
  • *This measure is the formal profit before tax measure under IFRS but is not the result attributable to shareholders and is stated after £377 million of pre-tax costs of the terminated AIA transaction. See note B1.
  • The 2009 charge of £14 million which was net of £nil tax, reflected completion adjustments for a previously disposed business.
  • The 2010 tax charge attributable to shareholders' return includes an exceptional tax credit of £158 million which primarily relates to the impact of a settlement agreed with the UK tax authorities.
Gross premiums earned   24,568 20,299
Outward reinsurance premiums   (357) (323)
Earned premiums, net of reinsurance F2 24,211 19,976
Investment return F2 21,769 26,889
Other income F2 1,666 1,234
Total revenue, net of reinsurance F1, F2 47,646 48,099
Benefits and claims   (40,608) (39,901)
Outward reinsurers’ share of benefits and claims   335 265
Movement in unallocated surplus of with-profits funds H12 (245) (1,559)
Benefits and claims and movements in unallocated surplus of with-profits funds, net of reinsurance   (40,518) (41,195)
Acquisition costs and other expenditure F3 (4,799) (4,572)
Finance costs: interest on core structural borrowings of shareholder-financed operations F4 (257) (209)
Loss on sale of Taiwan agency business I2 (559)
Total charges, net of reinsurance F1 (45,574) (46,535)
Profit before tax (being tax attributable to shareholders’ and policyholders’ returns)*   2,072 1,564
Tax charge attributable to policyholders’ returns   (611) (818)
Profit before tax attributable to shareholders B1 1,461 746
Tax charge F5 (636) (873)
Less: tax attributable to policyholders’ returns   611 818
Tax charge attributable to shareholders’ returns F5 (25) (55)
Profit from continuing operations after tax   1,436 691
Discontinued operations (net of tax) I10 (14)
Profit for the year   1,436 677
Attributable to:      
Equity holders of the Company   1,431 676
Non-controlling interests   5 1
Profit for the year   1,436 677
Earnings per share (in pence)      
Basic:      
Based on profit from continuing operations attributable to the equity holders of the Company B2 56.7p 27.6p
Based on loss from discontinued operations attributable to the equity holders of the Company B2 (0.6)p
    56.7p 27.0p
Diluted:      
Based on profit from continuing operations attributable to the equity holders of the Company B2 56.6p 27.6p
Based on loss from discontinued operations attributable to the equity holders of the Company B2 (0.6)p
    56.6p 27.0p
 

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