Key performance indicators
| EEV highlights | 2008 | 2007 | Movement |
|---|
| EEV operating profit before tax |
£933m |
£881m |
6% |
| Return on embedded value |
10.9% |
11.5% |
(0.6% points) |
| Diluted EEV operating EPS |
29.8p |
28.3p |
5% |
| EEV (loss)/profit before tax |
(£158m) |
£838m |
(119%) |
| EEV |
£6,245m |
£6,211m |
1% |
Please refer to Basis of preparation and the Glossary of this report.
EEV profit before tax
The EEV consolidated income statement, in the supplementary EEV financial statements section of this report, presents the total EEV result showing both operating and non-operating items. Total EEV loss before tax of £158m (2007: £838m profit) arose as a result of the reduction in non-operating profits. This fall was driven by the significant market volatility during the year and in particular lower than expected investment returns. We believe that EEV operating profit (before non-operating items) provides a more meaningful indication of the underlying performance of the Group. Non-operating profits and losses are mainly market driven and occur as a result of short-term investment performance being different from the long-term return anticipated in the opening EEV. Further details are given in Operating profit and Non-operating loss.