1.

The free surplus reduction of £258m to finance new business includes £80m [IFRS] new business strain and £178m additional required capital.

2.

The increase in free surplus of £688m from the expected transfer from the in-force non profit business includes £522m of IFRS [operational cash generation] and a £166m reduction in required capital.

3.

The capital movement of £184m reflects the capital contribution made to the US to enable the repurchase of Potomac securities.

4.

UK intra-group distributions reflect a £300m dividend paid from Society to Group and dividends of £93m paid to Society from subsidiaries (primarily Nationwide Life). Dividends of $53m from the USA, €10m from the Netherlands and €2m from France were also paid to Group.

5.

The transfer to non-covered business represents the IFRS profits arising in the period from the provision of investment management services by Legal & General Investment Management to the UK covered business, which have been included in the operating profit of the covered business on the look through basis.

6.

Other reserve movements primarily comprise the transfer from the covered business of Nationwide Life following the Part VII transfer of the majority of the insurance business in 2009.

1.

The free surplus reduction of £189m to finance new business includes £27m [IFRS] new business strain and £155m additional required capital. Other items have a net positive impact of £7m.

2.

The increase in free surplus of £648m from the expected return on the in-force non profit business includes £496m of IFRS operational cash generation and a £147m reduction in required capital. Other items have a net positive impact of £5m.

3.

Intra-group distributions comprise a £154m dividend paid from Society to Group, and distributions from the covered businesses of USA ($6m), Netherlands (€5m) and France (€3m).

4.

The transfer to non-covered business represents the IFRS profits arising in the period from the provision of investment management services by Legal & General Investment Management to the UK covered business, which have been included in the operating profit of the covered business on the look through basis.