(Download XLS:)  |
|
|
Risk and Savings |
International | ||||
|---|---|---|---|---|---|---|
|
For the year ended 31 December 2010 |
Experience variances |
Operating assumption changes |
Total |
Experience variances |
Operating assumption changes |
Total |
|
Persistency |
– |
(16) |
(16) |
(1) |
(14) |
(15) |
|
Mortality/morbidity |
– |
(28) |
(28) |
(12) |
(13) |
(25) |
|
Expenses |
(1) |
1 |
– |
(10) |
(1) |
(11) |
|
Other |
|
|
|
|
|
|
|
– US Capital restructure |
30 |
|
|
16 |
|
|
|
– [Bulk purchase annuity] data loading |
59 |
|
|
– |
|
|
|
– UK cost of capital unwind |
54 |
|
|
– |
|
|
|
– Modelling changes and other experience variances |
46 |
|
|
13 |
|
|
|
|
189 |
(15) |
174 |
29 |
8 |
37 |
|
|
188 |
(58) |
130 |
6 |
(20) |
(14) |
Risk and Savings persistency assumption changes relate to the strengthening of lapse assumptions for individual protection and non profit pensions.
Risk and Savings mortality assumption changes reflect the strengthening of the annuity business mortality assumptions partially offset by favourable individual protection mortality.
The US Capital restructuring programme involved replacing the Triple X financing solution with an internal reinsurance structure.
| (Download XLS:) |
|
|
Risk and Savings |
International | ||||
|---|---|---|---|---|---|---|
|
For the year ended 31 December 2009 |
Experience variances |
Operating assumption changes |
Total |
Experience variances |
Operating assumption changes |
Total |
|
Persistency |
(5) |
(42) |
(47) |
(2) |
(13) |
(15) |
|
Mortality/morbidity |
(6) |
114 |
108 |
13 |
26 |
39 |
|
Expenses |
(19) |
60 |
41 |
(7) |
(12) |
(19) |
|
Other |
76 |
24 |
100 |
13 |
– |
13 |
|
|
46 |
156 |
202 |
17 |
1 |
18 |
Risk and Savings persistency operating assumption changes relate to the strengthening of lapse assumptions for individual protection and unit linked bond policies; partially offset by improved persistency for with-profits products.
Risk and Savings mortality assumption changes relates to favourable annuitant mortality experience in 2009 which has been reflected in the latest three year average experience, and favourable individual protection mortality.
Risk and Savings expense assumption changes primarily reflects the £76m impact of the cost reductions delivered in 2009; partially offset by the impact of assumed higher future investment expenses of £(29)m. Other smaller items have a net positive impact of £13m. Expense experience variances include the impact of redundancy costs as a result of the cost reduction programme of £(17)m and exceptional project expenses and other items of £(8)m; partially offset by the impact of lower maintenance expenses than assumed of £6m.
Risk and Savings other experience variances include £44m reflecting a reassessment of future reserve releases as data is loaded onto the BPA system and £43m relating to one-off modelling improvements.
International mortality operating assumption changes primarily reflects improved claims ratios on group protection business in France, following positive experience in 2009.
