Insurer and fund manager HHG was back in the black at the half-year stage yesterday as it recovered from losses of £902 million last year.
The group - the former Pearl-to-NPI arm of Australian financial services group AMP - took hefty accounting charges in 2003 after a restructuring drive to shore up the financial position of its life insurance business.
This year, HHG profits for the six months to June 30 came in at £46 million as the life division benefited from ongoing efficiency gains to achieve operating profits of £32 million, against losses of £40 million last time.
Improved investment returns helped the division, which has 4.6 million life and pensions policies and is closed to new business, improve its embedded value to £1.31 billion from £1.15 billion a year earlier.
Fund manager Henderson, which has total assets under management of £68.4 billion, improved operating profits by £12 million to £25 million as stock market conditions showed a sharp improvement on a year earlier.