17 Reconciliation of shareholder net worth (SNW)

1.

On an EEV basis the contingent loan (between [Society] and LGPL) is modelled within the [VIF]. On an IFRS basis the contingent loan asset is included within the Group capital and financing net assets.

2.

Deferred tax represents all tax which is expected to be paid under current legislation.

3.

Other in the UK covered business relates primarily to the different treatment of sterling reserves, other long term reserves and the non profit result of [LGPL] under EEV compared with IFRS. Total business also includes the different treatment of the US Triple X securitisation on an EEV and IFRS basis.