15 Acquisitions

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Company name	Notes	Date of acquisition	Cash paid £m	Transaction costs £m	Total cost £m	Total net assets acquired £m
Nationwide Life Limited	(i)	31/01/08	250	2	252	252
Nationwide Unit Trust Managers Limited	(ii)	31/01/08	49	1	50	50
Suffolk Life Group Plc	(iii)	06/05/08	62	1	63	63

The [Group] has acquired 100% of the shares of each company. No goodwill has arisen in respect of these acquisitions.

(i) Nationwide Life Limited

The values of the purchased interest in long term business on acquired insurance and investment contracts have been calculated using discounted cash flow methodology. These were recognised on the balance sheet at £127m and £2m gross of tax respectively (with corresponding deferred tax liabilities of £19m and £1m). These intangible assets will be amortised in line with the expected emergence of profit from the business (over 12 years). Since 31 January 2008, Nationwide Life Limited has contributed £26m to consolidated loss before tax before amortisation of the purchased interest in long term business.

(ii) Nationwide Unit Trust Managers Limited

The value of the purchased interest in long term business on acquired investment contracts has been calculated using discounted cash flow methodology and recognised on the balance sheet at £29m gross of tax, with a corresponding deferred tax liability of £8m. This intangible asset will be amortised in line with the expected emergence of profit from the business (over 10 years). Since 31 January 2008, Nationwide Unit Trust Managers Limited has contributed a loss of £3m to consolidated loss before tax before amortisation of the purchased interest in long term business.

(iii) Suffolk Life Group Plc

The value of the purchased interest in long term business on acquired investment contracts has been calculated using discounted cash flow methodology and recognised on the balance sheet at £47m gross of tax, with a corresponding deferred tax liability of £13m. The value of the acquired customer relationship intangible has been calculated using the discounted cash flow methodology and recognised on the balance sheet at £15m gross of tax, with a corresponding deferred tax liability of £3m. The intangible assets will be amortised in line with the expected emergence of profit from the business (over 15 years). Since 6 May 2008, Suffolk Life Group Plc has contributed a profit of £2m to consolidated profit before tax before amortisation of the purchased intangibles.

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(i) Nationwide Life Limited – Assets and liabilities at date of acquisition
	Book value £m	Adjustments £m	Fair value £m
Assets
Purchased interest in long term businesses and other intangibles	–	129	129
Financial investments	1,276	–	1,276
Reinsurers’ share of contract liabilities	286	–	286
Deferred acquisition costs	15	(15)	–
Income tax recoverable	15	(15)	–
Other assets	4	–	4
Cash and cash equivalents	599	–	599
Total assets	2,195	99	2,294
Liabilities
Non-participating contract liabilities	1,221	–	1,221
Tax liabilities	8	15	23
Other liabilities	801	(3)	798
Total liabilities	2,030	12	2,042
Net assets	165	87	252

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(ii) Nationwide Unit Trust Managers Limited – Assets and liabilities at date of acquisition
	Book value £m	Adjustments £m	Fair value £m
Assets
Purchased interest in long term businesses and other intangibles	–	29	29
Deferred acquisition costs	29	(29)	–
Other assets	70	–	70
Cash and cash equivalents	30	–	30
Total assets	129	–	129
Liabilities
Provisions	14	–	14
Deferred income liabilities	1	(1)	–
Tax liabilities	5	5	10
Other liabilities	55	–	55
Total liabilities	75	4	79
Net assets	54	(4)	50

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(iii) Suffolk Life Group Plc – Assets and liabilities at date of acquisition
	Book value £m	Adjustments £m	Fair value £m
Assets
Purchased interest in long term businesses and other intangibles	–	62	62
Plant and equipment	1	–	1
Investment property	503	–	503
Financial investments	1,763	(2)	1,761
Income tax recoverable	1	–	1
Other assets	60	–	60
Cash and cash equivalents	738	2	740
Total assets	3,066	62	3,128
Liabilities
Non-participating contract liabilities	2,893	–	2,893
Senior borrowings	153	–	153
Tax liabilities	–	16	16
Other liabilities	3	–	3
Total liabilities	3,049	16	3,065
Net assets	17	46	63