The 2024 first interim dividend of 6.6 pence per share (30 June 2023: 6.5 pence per share) is in line with their policy of stable or increasing dividends. The first interim dividend is payable on 18 October 2024.
Other financial highlights include:
-Resilient adjusted operating profit of £375 million (30 June 2023: £390 million), with a 9% improvement in Asset Management contribution, and a 7% reduction in Life and Wealth due to lower contractual service margin (CSM) amortisation rates and returns on surplus assets.
-IFRS loss after tax of £56 million (30 June 2023: £75 million profit) was impacted by larger losses relating to short-term fluctuations in investment returns and mismatches arising on application of IFRS 17, although benefitted from lower restructuring costs.
-Their CSM increased by 5% to £5.8 billion (31 December 2023: £5.5 billion), a meaningful improvement in the Group's stock of future value from its insurance operations. This result was supported by a positive operating change in the CSM of £99 million, and a further £180 million largely from the favourable impact from markets.
-Operating capital generation (OCG) of £486 million (30 June 2023: £505 million) continues to be strong, taking cumulative OCG since the start of 2022 to £2.3 billion, and enabling them to increase our three-year cumulative target from £2.5 billion to £2.7 billion by the end of the year.
-Shareholder Solvency II coverage ratio improved to 210% (31 December 2023: 203%) thanks to the resilient operating result and the reversal of £216 million capital restrictions; the ratio also reflects the 2023 final dividend and deleveraging actions announced in June.
-Shareholder Solvency II leverage ratio improved to 32%ii (31 December 2023: 35%) after allowing for all the deleveraging actions announced in June totalling £461 million. These actions will reduce ongoing debt interest cost by £21 million per annum.
