Finance and Capital Management
Sources of earnings
Shareholder Annuities & Other
Heritage
Adjusted Operating
Profit (£m)
Return on excess assets
& margin release
Asset trading
& other optimisation
Longevity
assumption changes
TRASP¹
insurance recovery
1. Thematic Review of Annuity Sales Practices
H1 2018
£392m
H1 2019
£377m
Other
23
111
92
92
63
166
Nature of earnings
118
127
Investment income from assets not backing
insurance liabilities and gradual release of
prudence in actuarial assumptions
Lower discounted annuity liabilities due to
trading into higher yielding assets and
optimising asset allocation
Change in mortality expectations for
annuity customers
69
69
One-off indemnity insurance recovery for
Thematic Review of Annuity Sales Practices
Results of other activities
(c. £50m positive one-offs in H1 2019)
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