Profitability and return

Net tangible assets

In addition to profit after tax of £80.4 million, the Group recognised additional net gains of £83.4 million through the Consolidated Statement of Changes in Equity during the year. At the year end total equity and reserves were £1,216.1 million (2007: 1,052.3 million).

A gain of £256.5 million was made on the sterling revaluation of the Group’s US dollar investment in Amlin Bermuda, offset by losses of £74.7 million on associated hedge instruments. Offsetting these gains were dividend payments of £75.6 million and the purchase of £27.6 million of shares through our share buy-back programme.

Net tangible assets increased by 12.5% from £983.3 million at 31 December 2007 to £1,105.9 million at 31 December 2008.