24 Unallocated divisible surplus

The participating funds operate with an excess of assets over the amount required to meet the policyholder liabilities.

The nature of benefits for the contracts within these funds is such that the allocation of surpluses between ordinary equity holders and participating policyholders is uncertain. The amount of surplus which has not been allocated at the balance sheet date is classified within liabilities as the unallocated divisible surplus. Adjustments made to comply with FRS 27 are charged to the unallocated divisible surplus.

 

2014
£m

2013
£m

As at 1 January

1,221

1,153

Transferred from the income statement

(181)

112

Actuarial losses on defined benefit pension schemes transferred from the statement of comprehensive income

(38)

(49)

Foreign exchange adjustments

(19)

5

As at 31 December

983

1,221

With effect from 31 January 2015 the with-profits part of the LGAS long term fund was closed to new business.