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for the year ended 31 December 2007
Income statement
Income and expenses of policyholders, shareholders
and external unitholders1
Insurance premium and related revenue
Fee revenue
Other revenue
Investment gains and losses
Insurance claims and related expenses
Operating expenses
Finance costs
Movement in external unitholders’ liabilities
Change in policyholder liabilities before accounting mismatches
– life insurance contracts2
– investment contracts2
Income tax (expense) credit
Profit attributable to shareholders of AMP Limited from
continuing operations before accounting mismatches
Note
3
3
3
3
4
4
4
5
2007
$m
930
1,601
338
8,128
(1,349)
(2,392)
(783)
(815)
(201)
(4,149)
(445)
863
Consolidated
2006
$m
896
1,374
167
11,791
(1,271)
(2,093)
(616)
(1,522)
(794)
(6,263)
(781)
888
2007
$m
–
18
–
813
–
(18)
–
–
–
–
90
903
Parent
2006$m
–
13
–
509
–
(12)
–
–
–
–
57
567
Profit from discontinued operations held for sale after income tax 21 193 88 – –

Net profit attributable to shareholders of AMP Limited
before accounting mismatches 1,056 976 903 567

Unmatched changes in policyholder liabilities
(accounting mismatches) due to:2

–
treasury shares (30) (77) – –
– investment in controlled entities of the statutory funds (37) (20) – –
– other (4) 36 – –
Net profit attributable to shareholders of AMP Limited
985 915 903 567

Footnote:

1
Income and expenses include amounts attributable to shareholder interests and also policyholder interests in the life statutory funds. Amounts included in
respect of the life statutory funds have a substantial impact on most of the consolidated Income statement lines, especially Investment gains and losses.
In general, policyholders’ interests in the transactions for the period are attributed to them in the lines Change in policyholder liabilities before accounting
mismatches and Unmatched changes in policyholder liabilities (accounting mismatches).

2
As explained further in Note 1(d), accounting mismatches arise because the recognition and measurement rules for certain policyholder assets differ from
the recognition and measurement rules for the actual liability to policyholders in respect of the same assets. These mismatches result in policyholder asset
movements impacting the Net profit after accounting mismatches and increased volatility of the reported profit.

Earnings per ordinary share Note cents cents
Basic from continuing operations before accounting mismatches 25 46.7 48.1
Diluted from continuing operations before accounting mismatches 25 46.5 47.9
Basic from continuing operations after accounting mismatches 25 42.8 44.8
Diluted from continuing operations after accounting mismatches 25 42.7 44.6
Basic after accounting mismatches 25 53.3 49.6
Diluted after accounting mismatches 25 53.1 49.3