4 NEW BUSINESS (GROSS OF REINSURANCE).


New business premiums reflect income arising from the sale of new contracts during the reporting period and any changes to existing contracts, which were not anticipated at the outset of the contract. This is presented below for all long term business written by the Group including both insurance and investment contracts.

New annual premiums arise where the terms and conditions of a policy anticipate more than one premium being paid over its lifetime; new single premiums comprise all premiums which are not categorised as new annual premiums.

(Download XLS:) Download Excel

 

Annual
2011
£m

Single
2011
£m

Annual
2010
£m

Single
2010
£m

1.

Risk annuity new business includes those premiums written in the with-profits fund of £24m (2010: £26m). For segmental profit reporting these contracts are incorporated with all other with-profits business in the Savings segment on the basis of materiality.

2.

Savings investments excludes institutional investments which are disclosed in Other funds.

3.

Excludes £4.1bn (2010: £5.9bn) which is held on a temporary basis, generally as part of portfolio reconstructions.

4.

Other funds comprises Legal & General Investment Management (segregated property, property partnerships, private equity partnerships), of £5,946m (2010: £6,759m) and Legal & General Retail Investments (institutional funds) of £637m (2010: £1,452m). Due to the expected volatility of gross new business inflows into the sterling/euro liquidity funds, these are now excluded. This resulted in a reduction of £492m in 2010.

Protection

177

175

Annuities1

2,515

2,065

Longevity insurance

70

Total Risk

247

2,515

175

2,065

 

 

 

 

 

Investments2

68

6,200

26

6,169

Insured

244

2,015

299

1,795

With-profits

69

525

71

608

Total Savings

381

8,740

396

8,572

 

 

 

 

 

International

 

 

 

 

USA (LGA)

69

52

Netherlands (LGN)

5

95

6

124

France (LGF)

24

278

22

297

India (26% share)

5

22

13

7

Egypt (55% share)

9

10

Gulf (50% share)

2

5

 

742

11,655

674

11,065

 

 

 

 

 

Investment management

 

 

 

 

UK managed pension funds3

 

 

 

 

– Pooled funds

 

22,094

 

19,898

– Segregated funds

 

4,676

 

5,756

 

 

26,770

 

25,654

Limited partnerships

 

128

 

229

Other funds4

6,583

1

8,210

 

33,481

1

34,093

Total new business

742

45,136

675

45,158

 

 

 

 

 

Comprising:

 

 

 

 

Insurance contracts

 

 

 

 

– Participating

3

1,072

1

1,236

– Non-participating

359

1,872

276

1,372

Investment contracts

 

 

 

 

– Participating

2

280

2

281

– Non-participating

310

3,062

369

2,658

Savings – investments (including France retail investment business)

68

5,369

26

5,518

Investment management

33,481

1

34,093

Total new business

742

45,136

675

45,158

The UK pooled managed funds of £22.1bn (2010: £19.9bn) reported above are classified as fund management contracts. The increase in the fair value of the investment contract liabilities is shown in the income statement. There are three classes of new business for conventional individual protection where there is a material difference between gross and net of reinsurance annualised new business premiums: term assurance, which is 26.8% reinsured (2010: 36.6%); whole of life assurance, which is 21.5% reinsured (2010: 18.1%); and income protection, which is 62.0% reinsured (2010: 63.1%).

top


Share this page.