6 Group capital and financing operating profit¹

1.

Group capital and financing represents operating profit on the shareholder assets held within the covered business, reported on an embedded value basis, and operating profit on the shareholder assets held outside the covered business reported on an [IFRS] basis.

2.

Interest expense excludes non recourse financing.

3.

The defined benefit pension scheme (expense)/income includes the actuarial gains and losses arising on annuity assets held by the schemes that have been purchased from Legal & General Assurance Society Limited relating to the non-covered business. Under IFRS, these annuity assets cannot be classified as plan assets in accordance with [IAS] 19 and so the associated actuarial gains and losses cannot be taken to the statement of recognised income and expense. The 2007 comparative also includes income arising from a pension deficit reduction payment which was charged to the operating segments in 2008.