9 Effect of economic assumption changes.

1.

2009 Risk and Savings economic assumption changes include £125m relating to the decrease in the UK risk discount rate in 2009 from 8.3% to 8.0%, and £(250)m as a result of higher assumed future inflation and higher cost of capital on increased annuity reserves. In addition, increases in the realistic and statutory long term default provisions for the assets backing annuity business had an [EEV] impact of £(124m).

2.

2009 lnternational economic assumption changes primarily reflect the increase in the US risk discount rate in 2009 from 6.8% to 7.4%.