1.

Covered business only.

2.

The capitalisation factor is the present value of annual premiums divided by the amount of annual premiums.

3.

The present value of new business premiums (PVNBP) on the [EEV] basis is defined as the present value of annual premiums plus single premiums for any given period. It is calculated using the same assumptions as for the contribution from new business but determined as at the point of sale.

4.

The contribution from new business is defined as the present value at point of sale of assumed profits from new business written in the period and then rolled forward to the end of the financial period using the risk discount rate applicable at the end of the reporting period.

5.

The new business margin is defined as the contribution from new business (including the cost of solvency capital) divided by the [PVNBP].