The Board has approved a slight amendment to the Group's dividend policy to reflect the fact that they will no longer be producing "Net release from operations" under IFRS 17. Accordingly, and to reflect the importance of solvency capital generation as a critical measure of dividend sustainability, the dividend policy will substitute "Net release from operations" with "Capital generation".
Henceforth the Group's dividend policy states: "We are a long-term business and set our dividend annually, according to agreed principles. The Board's intention for the future is to maintain its progressive dividend policy, reflecting the Group's expected medium-term underlying business growth, including measurement of Capital generation and Adjusted operating profit."
The Board has recommended a final dividend of 13.93p, giving a full year dividend of 19.37p, up 5% from the prior year (18.45p). This is consistent with their stated ambition to grow the dividend at 5% per annum to FY 2024.
Other Financial Highlights:
- Operating profit of £2,523m, up 12% (2021: £2,262m)
- Profit after tax of £2,291m, up 12% (2021: £2,050m)
- EPS of 38.33p, up 12% (2021: 34.19p)
- Return on equity of 20.7% (2021: 20.5%)
- Solvency II coverage ratio of 236% (2021: 187%)
- As at 3rd March 2023 estimated the coverage ratio was 240%
