Key performance indicators
| New business highlights | 2008 | 2007 | Movement |
|---|
| Net flows1 |
£2,440m |
£2,769m |
(12%) |
| New business PVNBP1,2 |
£15,679m |
£16,539m |
(5%) |
| New business APE2,3 |
£2,007m |
£2,006m |
(1%) |
| Investment – third party net new business |
£3,395m |
£7,944m |
(57%) |
| New business contribution |
£264m |
£345m |
(23%) |
| Internal rate of return |
16% |
19% |
(3% points) |
| Discounted payback period |
8 years |
8 years |
- |
Please refer to Basis of preparation and the Glossary of this report.
1 2007 net flows and present value of new business premiums (PVNBP) have been restated to reflect the inclusion of Sigma mutual funds. The 2008 net outflow impact is £217m (2007: £250m outflow). The 2008 PVNBP impact is £88m (2007: £116m).
2 The percentage change figures include percentage change figures for India, which are computed based on the movement in the new business of HDFC Standard Life Insurance Company Limited as a whole to avoid distortion due to changes in the Group’s shareholding in the joint venture during 2007 and 2008.
3 2007 APE has been restated to reflect the inclusion of Sigma mutual funds. The 2008 impact is £9m (2007: £12m).
Group assets under administration as at 31 December 2008 were £156.8bn compared to £169.0bn at 31 December 2007. The reduction is mainly due to a fall in asset values following adverse market movements during the year. As a result of the challenging economic conditions in which we have been operating, total life and pensions net inflows (excluding Asia Pacific) decreased by 12% to £2,440m and third party investment management net new business amounted to £3,395m.
