The Directors’ Remuneration report has been prepared in accordance with the requirements of the Companies Act 2006 and Schedule 8 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008. It also describes the Group’s compliance with the Combined Code on Corporate Governance in relation to remuneration. The Company is an active member of the ABI and the Committee, consistent with its approach of operating within the highest standards of corporate governance, takes significant account of guidelines issued by the ABI and shareholder bodies (such as the NAPF) when setting the remuneration strategy for the Company. It also seeks to maintain an active and productive dialogue with investors on developments in the remuneration aspects of corporate governance generally and any changes to the Company’s executive pay arrangements in particular.

Terms of reference

The Committee’s terms of reference are available on our website or on request. The terms of reference were reviewed during 2010 to ensure they continued to accurately reflect the remit of the Committee which embraces the remuneration strategy and policy for the whole Company as well as the executive directors. Further changes were made following the year end to include express references to the new FSA Remuneration Code. The Committee has appointed Hewitt New Bridge Street (HNBS) as its independent adviser and the terms of agreement between the Company and HNBS are available on request. HNBS is a signatory to the Remuneration Consultants Group Code of Conduct in relation to Executive Remuneration Consulting in the UK.