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Company News

2005

Restatement of 2004 full year results under European embedded value principles

08/12/2005

St. James’s Place Capital plc, the wealth management group, today publishes the restatement of its 2004 full year results under European Embedded Value (“EEV”) principles.

  • Pre-tax new business contribution has increased by 20.5% to £45.8 million.
  • Pre-tax operating profit 5.3% lower at £75.8 million.
  • Group net assets at 31 December 2004 have increased by 3.6% to £663.4 million. Resulting net asset value per share has increased by 5.2 pence to 151.0 pence per share.
  • A bottom-up market-consistent approach to allow for risk has been adopted in calculating EEV.

Andrew Croft, Group Finance Director, commented

“The EEV Principles are an important step forward for the insurance sector. In applying them, we have used a rigorous and market consistent methodology to reflect the risks of our business.

“The EEV results show an increase in the value of our in-force and new business contribution relative to our achieved profits approach.

“As shareholders are aware the Group does not write with-profit or annuity business, nor do our products offer any significant financial guarantees or options; therefore no allowance needs to be made for these areas.

“EEV reporting has no impact on our solvency, cash generation or dividend policy.”

The text of the transition restatement is attached.

Enquiries:
Andrew Croft, Group Finance Director             Tel: 020 7514 1985
Nitya Bolam, Brunswick Group                         Tel: 020 7404 5959

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