Group MCEV analysis of earnings

For the half year ended 30 June 2010

Non-covered business
Covered business MCEV
£m		 Management services IFRS
£m		 Asset Management IFRS
£m		 Corporate1 IFRS
£m		 Group MCEV
£m
Group MCEV at 1 January 2010 4,731 56 39 (2,999) 1,827
Operating MCEV earnings/(loss) (post-taxation) 219 5 16 (24) 216
Non-operating MCEV earnings/(loss) (post-taxation) 85 (16) – (93) (24)
Total MCEV earnings 304 (11) 16 (117) 192
Foreign exchange – – – – –
Other movements – – – (45) (45)
Capital and dividend flows – internal2 (570) 16 (2) 556 –
Capital and dividend flows – external – – – (12) (12)
Closing value at 30 June 2010 4,465 61 53 (2,617) 1,962

1 Comprises the Group holding companies that do not form part of the Phoenix Life and Ignis Asset Management divisions
2 Includes a re-allocation of a £250m loan asset from Covered business to Corporate. This does not affect the closing Group MCEV or MCEV earnings

For the half year ended 30 June 2009 (pro forma)

Non-covered business
Covered business MCEV
£m		 Management services IFRS
£m		 Asset Management IFRS
£m		 Corporate1 IFRS
£m		 Group MCEV
£m
Group MCEV at 1 January 2009 4,081 122 34 (3,193) 1,044
Operating MCEV (loss)/earnings (post-taxation) (16) (5) 11 (12) (22)
Non-operating MCEV loss (post-taxation) (38) (9) (2) (205) (254)
Total MCEV earnings (54) (14) 9 (217) (276)
Foreign exchange – – – (70) (70)
Other movements – – – 15 15
Capital and dividend flows – internal (144) (26) (5) 175 –
Capital and dividend flows – external – – – – –
Closing value at 30 June 2009 3,883 82 38 (3,290) 713

1 Comprises the Group holding companies that do not form part of the Phoenix Life and Ignis Asset Management divisions

For the year ended 31 December 2009 (pro forma)

Non-covered business
Covered business MCEV
£m		 Management services IFRS
£m		 Asset Management IFRS
£m		 Corporate1 IFRS
£m		 Group MCEV
£m
Group MCEV at 1 January 2009 4,081 122 34 (3,193) 1,044
Operating MCEV earnings/(loss) (post-taxation) 273 10 24 (38) 269
Non-operating MCEV earnings/(loss) (post-taxation) 511 (25) (4) (200) 282
Total MCEV earnings 784 (15) 20 (238) 551
Foreign exchange – – – (44) (44)
Other movements – – – (14) (14)
Capital and dividend flows – internal (134) (51) (15) 200 –
Capital and dividend flows – external – – – 290 290
Closing value at 31 December 2009 4,731 56 39 (2,999) 1,827

1 Comprises the Group holding companies that do not form part of the Phoenix Life and Ignis Asset Management divisions