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Former AMP companies bounce back in the second half of 2003

HHG, owner of Henderson, Pearl, NPI and Towry Law, saw a recovery in the second half of last year.

Henderson&#39s business was up by 46 per cent in the second half compared with the first half while HHG&#39s other main business, Life Services, recovered from a £40m loss in the first half to £121m profit in the second half.

However, HHG made an overall loss of £864m for last year due to restructuring and write-offs, following a £343m loss in 2002.

Assets under management for Henderson – which, along with the other businesses, was cast off by former owner AMP last December – rose to £70.6bn from £68.7bn.

HHG has placed 246 million new ordinary shares at 48p, raising £118m. The proceeds will be used to buy the 24 per cent of Henderson&#39s holding company HHG Invest that it does not already own from subsidiary Pearl Assurance.

The money is intended to shore up Pearl&#39s finances ahead of the forthcoming FSA capital requirement regulations, under which the Henderson stake would not have counted towards the life company&#39s solvency position.

Free-asset ratios at the end of last year were: Pearl 2.1 per cent, National Provident Life 1.4 per cent and London Life 1.7 per cent.

HHG chief executive Roger Yates says: “The strategic and capital management decisions taken in the first half of 2003 were reinforced by the actions taken in the second half to build a strong balance sheet and create substantial efficiency improvements. Investment markets still present challenges but HHG has an effective platform for sustained growth and profitability.”


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