 |
|
|
Notes |
Gross |
Reinsurance |
Gross |
Reinsurance |
|---|---|---|---|---|---|
|
Participating investment contracts |
|
6,992 |
(12) |
7,462 |
(74) |
|
Non-participating investment contracts |
|
196,698 |
(126) |
224,906 |
(134) |
|
Investment contract liabilities |
(ii) |
203,690 |
(138) |
232,368 |
(208) |
|
Expected to be settled within 12 months (net of reinsurance) |
|
37,058 |
|
38,592 |
|
|
Expected to be settled after 12 months (net of reinsurance) |
|
166,494 |
|
193,568 |
|
|
|
|
|
Gross |
Reinsurance |
Gross |
Reinsurance |
|---|---|---|---|---|---|
|
As at 1 January |
|
232,368 |
(208) |
169,517 |
(227) |
|
Reserves in respect of new business |
|
38,583 |
(741) |
75,969 |
(412) |
|
Amounts paid on surrenders and maturities during the year |
|
(36,852) |
504 |
(24,706) |
262 |
|
Investment return and related benefits |
|
(33,500) |
307 |
11,854 |
169 |
|
Management charges |
|
(378) |
– |
(399) |
– |
|
Foreign exchange adjustments |
|
527 |
– |
133 |
– |
|
Acquisitions |
|
2,942 |
– |
– |
– |
|
As at 31 December |
|
203,690 |
(138) |
232,368 |
(208) |
Fair value movements of £32,743m (2007: £11,789m) are included within the income statement arising from movements in investment contract liabilities designated as FVTPL.
|
|
|
Date of undiscounted cash flow |
|
| |||
|---|---|---|---|---|---|---|
|
As at 31 December 2008 |
0-5 |
5-15 |
15-25 |
Over |
Total |
Carrying |
|
Participating investment contracts |
(2,880) |
(3,701) |
(1,939) |
(1,053) |
(9,573) |
(6,992) |
|
|
|
|
|
|
|
|
|
|
Date of undiscounted cash flow |
|
| |||
|
As at 31 December 2007 |
0-5 |
5-15 |
15-25 |
Over |
Total |
Carrying |
|
Participating investment contracts |
(3,111) |
(4,415) |
(2,382) |
(1,224) |
(11,132) |
(7,511) |
Investment contract undiscounted net cash flows are based on the expected date of settlement.
Amounts under unit linked contracts are generally repayable on demand and the Group is responsible for ensuring there is sufficient liquidity within the asset portfolio to enable liabilities to unit linked policyholders to be met as they fall due. However, the terms of funds investing in less liquid assets permit the deferral of redemptions for predefined periods in circumstances where there are not sufficient liquid assets within the fund to meet the level of requested redemptions. Accordingly unit linked liabilities have been excluded from the table.
A maturity analysis based on the earliest contractual repayment date would present investment contract liabilities as due on the earliest period of the table because policyholders can exercise cancellation options at their discretion. In such a scenario, the liability would be reduced due to the application of surrender penalties.