| Consolidated income statement for the year ended 31 December 2007 |
Notes | 2007 £m |
2006 £m |
|---|---|---|---|
| Gross premiums written | 3 | 780.5 | 745.1 |
| Written premiums ceded to reinsurers | (128.3) | (170.8) | |
| Net premiums written | 3 | 652.2 | 574.3 |
| Change in gross provision for unearned premiums | (24.7) | (84.9) | |
| Reinsurer’s share of change in the provision for unearned premiums | (10.3) | 20.2 | |
| Change in net provision for unearned premiums | (35.0) | (64.7) | |
| Net earned premiums | 3 | 617.2 | 509.6 |
| Net investment income | 4 | 64.9 | 48.3 |
| Other income | 5 | 10.1 | 7.1 |
| 75.0 | 55.4 | ||
| Revenue | 692.2 | 565.0 | |
| Insurance claims | 338.6 | 357.0 | |
| Insurance claims recovered from reinsurers | (31.2) | (86.3) | |
| Net insurance claims | 3 | 307.4 | 270.7 |
| Expenses for the acquisition of insurance contracts | 3 | 179.2 | 133.8 |
| Administrative expenses | 6 | 58.2 | 45.8 |
| Foreign exchange (gain)/loss | 6 | (3.1) | 22.3 |
| Operating expenses | 234.3 | 201.9 | |
| Expenses | 3 | 541.7 | 472.6 |
| Results of operating activities | 150.5 | 92.4 | |
| Finance costs | 8 | (12.0) | (5.6) |
| Profit before tax | 138.5 | 86.8 | |
| Comprises: | |||
| Profit before tax and foreign exchange adjustments on non-monetary items | 130.3 | 96.2 | |
| Foreign exchange on non-monetary items | 3 | 8.2 | (9.4) |
| Income tax expense | 9 | (38.1) | (26.9) |
| Profit after tax | 100.4 | 59.9 | |
| Earnings per share (pence per share): | |||
| Basic | 10 | 28.1 | 16.7 |
| Diluted | 10 | 27.4 | 16.6 |
The notes form part of these financial statements.