HHG unveils gigantic losses of £864m

HHG, the owner of Pearl, NPI, and Henderson Global Investors, a business cast off by its Australian parent last year, yesterday reported that its losses had doubled after writedowns on its life insurance activities.

HHG, the owner of Pearl, NPI, and Henderson Global Investors, a business cast off by its Australian parent last year, yesterday reported that its losses had doubled after writedowns on its life insurance activities.

In its first results statement since listing on the London Stock Exchange in December, Roger Yates, the chief executive, said there were "encouraging signs" for the year after losses doubled. Pearl, NPI and London Life were last year closed to new business after needing capital injections to meet solvency requirements. Policyholders have seen bonuses scrapped. After the businesses helped cause a A$5.5bn (£2.3bn) loss at its parent in 2003, AMP jettisoned its UK businesses in December

HHG's losses widened to £864m in 2003 from £343m last year. Pre-tax operating profits slipped to £98m from £108m but the company said there was a "significant improvement" in the second half. Of its loss, £554m was down to restructuring charges and goodwill write-offs. Its life insurance businesses were responsible for £143m. AMP has had to take a A$6.2bn loss on the demerger.

HHG also launched an earlier-than-expected capital raising of £118.7m. It is offering 246 million new shares to institutional investors, which will pay for the 24 per cent of Henderson that is currently owned by Pearl.

Costs have been reduced after HHG slashed nearly 4,000 UK jobs. Bringing its headcount down to 1,800 has saved £56m from the business.