5 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.

(XLS:) New business (gross of reinsurance)

 

Annual
2012
£m

Single
2012
£m

Annual
2011
£m

Single
2011
£m

1.

Protection and Annuities annuity new business includes those premiums written in the with-profits fund of £12m (2011: £24m). For segmental profit reporting these contracts are incorporated with all other with-profits business in the Savings segment.

2.

Total Protection and Annuities new business excludes £nil (2011: £70m) of annual premiums in relation to longevity insurance transactions. It has been excluded due to the unpredictable deal flow from this type of business.

3.

Savings investments excludes institutional investments which are disclosed separately within Institutional unit trust new business above.

4.

New monies from Legal & General Investment Management (LGIM) excludes £4.8bn (2011: £4.1bn) which is received during the year on a temporary basis, generally as part of portfolio reconstructions.

5.

The comparative disclosures have been restated to allocate compulsory purchase annuities into the non-participating category to reflect the underlying nature of the policies. The new business premiums in relation to this business amount to £972m (2011: £747m).

Protection

221

177

Annuities1

2,339

2,515

Netherlands (LGN)

13

82

5

95

France (LGF)

38

338

24

278

Total Protection and Annuities2

272

2,759

206

2,888

 

 

 

 

 

Investments3

69

5,285

68

6,200

Insured

519

2,383

244

2,015

With–profits

58

342

69

525

India (26% share)

7

24

5

22

Total Savings

653

8,034

386

8,762

US Protection (LGA)

90

69

 

 

 

 

 

Egypt (55% share)

14

9

Gulf (50% share)

4

6

2

5

 

1,033

10,799

672

11,655

Investment management

 

 

 

 

Index funds

 

22,400

 

22,182

Liability driven investments

 

5,678

 

5,809

Active

 

 

 

 

– Active fixed income

 

6,042

 

4,580

– Property

 

125

 

265

– Equity

 

1

 

8

Total LGIM new funds

 

34,246

 

32,844

Institutional unit trust

 

424

 

637

Total new funds4

34,670

33,481

Total new business

1,033

45,469

672

45,136

 

 

 

 

 

Comprising:

 

 

 

 

Insurance contracts5

 

 

 

 

– Participating

4

239

3

325

– Non–participating

381

2,405

289

2,619

Investment contracts

 

 

 

 

– Participating

1

271

2

280

– Non–participating

578

3,337

310

3,062

Savings – investments (including France retail investment business)

69

4,547

68

5,369

Investment management

34,670

33,481

Total new business

1,033

45,469

672

45,136

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 24.6% reinsured (2011: 26.8%); whole of life assurance, which is 18.4% reinsured (2011: 21.5%); and income protection, which is 67.2% reinsured (2011: 62.0%).