Financial highlights

Results summary

International Financial Reporting Standards (IFRS) Basis Results	Half year 2021 $m	Half year 2020 (AER) $m
Adjusted IFRS operating profit from continuing operations	1,571	1,286
Earnings per share based on adjusted IFRS operating profit from continuing operations after non-controlling interests	51.6¢	38.1¢
European Embedded Value (EEV) Basis Results
New business profit from continuing operations	1,176	912
Operating profit from continuing operations	1,749	1,540
Basic earnings per share based on operating profit from continuing operations after non-controlling interests	66.7¢	58.5¢
EEV shareholders' equity (including goodwill attributable to equity holders) from continuing operations	43,162	35,399
Operating free surplus generated from continuing insurance and asset management operations before restructuring and IFRS 17 implementation costs	1,112	983

Basis of preparation

The results are prepared on two bases: International Financial Reporting Standards (IFRS) and European Embedded Value (EEV). The EEV basis results have been prepared in accordance with the amended EEV Principles issued by the European Insurance CFO Forum in 2016. The Group’s EEV basis results are stated on a post-tax basis and include the post-tax IFRS basis results of the Group’s asset management and other operations. Continuing operations represents the Asia, Africa and head office functions of the Group following the reclassification of Jackson as held for distribution in the first half of 2021. Segment results are attributed to the shareholders of the Group before deducting the amount attributable to non-controlling interests, except where otherwise stated. The directors are responsible for the preparation of the supplementary information in accordance with the EEV Principles.

Operating profit based on longer-term investment returns

The Group provides supplementary analysis of profit before tax attributable to shareholders in order to distinguish operating-profit based on longer-term investment returns from the other elements of total profit shown.

Operating profit is determined on the basis of including longer-term investment returns.

EEV and adjusted IFRS operating profit for continuing operations is based on longer-term investment returns and is stated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions and other corporate transactions. Furthermore, for EEV basis results, operating profit based on longer-term investment returns excludes the effect of changes in economic assumptions and the mark-to-market value movement on core borrowings. Separately on the IFRS basis, adjusted operating profit also excludes amortisation of acquisition accounting adjustments.

Exchange translation – Actual Exchange Rate (AER)

The IFRS and EEV results are presented in US dollars. The comparative results have been prepared using previously reported exchange rates (AER basis).