Consolidated Profit and Loss Account (Non-technical Account)

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Note			1998 £m	1997 £m
	Balance on the general business technical account		39	38*
	Balance on the long-term business technical account		598	530*
8	Tax credit attributable to balance on the long-term business technical account		227	240*
1	Balance on the long-term business technical account before tax		825	770*
	Profit on insurance activities		864	808*
	Other activities
4	Investment income		224	222
	Unrealised gains on investments		30	33
	Allocated investment return transferred from the long-term business technical account		5	21*
7	Investment expenses and charges		(110)	(78)
	Allocated investment return transferred to the general business technical account		(41)	(49)*
	Other income:
		Investment management result	43	44
9		Profit on business disposals	249	18
		Reclassification of shareholder reserves of Australian operation	–	204
	Other charges:
		Corporate expenditure	(46)	(32)
		Banking	(77)	(22)
1	Profit on other activities		277	361*
	Profit on ordinary activities before tax		1,141	1,169
8	Tax on profit on ordinary activities		(261)	(332)
1	Profit for the financial year		880	837
	Dividends:
		Interim [at 7.0p (6.4p) per share]	(136)	(124)
		Final [at 14.0p (12.7p) per share]	(271)	(246)
	Total dividends		(407)	(370)
18	Retained profit for the financial year		473	467
	Reconciliation of operating profit to profit on ordinary activities
1	Operating profit before tax based on longer term investment returns		868	864*
	Short-term fluctuations in investment returns		24	83*
9	Profit on business disposals		249	18
	Reclassification of shareholder reserves of Australian operation		–	204
	Profit on ordinary activities before tax		1,141	1,169
	Basic earnings per share
1	Based on operating profit after tax of £654m (£618m) and 1,942m (1,932m) shares		33.7p	32.0p*
	Adjustment from post-tax longer term to post-tax actual investment gains		0.8p	2.6p*
	Adjustment in respect of profit on business disposals		10.8p	0.9p
	Adjustment from reclassification of shareholder reserves of Australian operation		–	7.8p
1	Based on profit for the financial year of £880m (£837m) and 1,942m (1,932m) shares		45.3p	43.3p
	Diluted earnings per share
17	Based on profit for the financial year of £880m (£837m) and 1,955m (1,947m) shares		45.0p	43.0p
	Dividend per share		21.0p	19.1p
	*Restated for altered basis of recognition of investment returns, as explained in note 3.