29 Investment return.

Investment return includes fair value gains and losses, excluding fair value movements attributable to available-for-sale (AFS) investments, dividends, rent and interest. Dividends are accrued on an ex-dividend basis. Interest and rent are included on an accruals basis. Interest income for financial assets which are not classified as fair value through profit or loss (FVTPL) is recognised using the effective interest method.

The Group earns an investment return from holdings in financial instruments and property investments, held to back insurance and investment contracts on behalf of policyholders, and as Group capital.

(XLS:) Investment return

 

2012
£m

2011
£m

1.

Interest income of £64m (2011: £71m) arose on financial investments designated as AFS. There were no impairments on assets classified as AFS during the year (2011: £nil).

Dividend income

4,445

3,945

Interest income on financial investments at fair value through profit or loss

4,913

4,833

Other investment income

120

49

Gains on financial investments at fair value through profit or loss

18,418

1,685

Gains on derivative instruments (designated as held for trading)

653

1,221

Realised gains on available-for-sale financial assets

39

43

Losses on loans and receivables

(1)

(7)

Financial investment return1

28,587

11,769

 

 

 

Rental income

366

334

Fair value (losses)/gains on properties

(119)

40

Property investment return

247

374

Investment return

28,834

12,143