- 1. Accounting policies
- 2. Impact of significant events and changes in 2006
- 3. Operating Profit Information
- 4. Segmental Analysis
- 5. New business (Gross of Reinsurance)
- 6. Investment return
- 7. Net claims and change in insurance liabilities
- 8. Other expenses
- 9. Auditors' remuneration
- 10. Employee information
Back to Notes to the Financial Statements
5. New business (gross of reinsurance)
New business 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.
| Annual 2006 £m |
Single 2006 £m |
Annual 2005 £m |
Single 2005 £m |
|
|---|---|---|---|---|
| UK life and pensions | ||||
| Protection | 231 | – | 208 | – |
| Annuities | – | 1,735 | – | 1,539 |
| Savings | – | |||
| – Unit linked bonds | – | 2,612 | – | 2,082 |
| – Pensions, stakeholder and other non profit1 | 126 | 817 | 97 | 549 |
| With-profits | 117 | 827 | 77 | 729 |
| UK life and pensions | 474 | 5,991 | 382 | 4,899 |
| USA | 42 | – | 42 | – |
| Netherlands | 12 | 170 | 13 | 158 |
| France | 12 | 195 | 17 | 191 |
| 540 | 6,356 | 454 | 5,248 | |
| Investment management | ||||
| Retail investments | ||||
| ISAs – UK | 18 | 498 | 14 | 422 |
| Unit trusts | ||||
| – UK | 2 | 5,945 | 1 | 2,577 |
| – France | – | 25 | – | 25 |
| Institutional fund management | ||||
| UK managed pension funds2 | ||||
| – Pooled funds | 17,878 |
14,778 |
||
| – Segregated funds | 608 |
240 |
||
| 18,486 | 15,018 | |||
| Limited partnerships | 99 | 87 | ||
| Other funds | 2,065 | 2,029 | ||
| 20 | 27,118 | 15 | 20,158 | |
| Total new business | 560 | 33,474 | 469 | 25,406 |
| Annual 2006 £m |
Single 2006 £m |
Annual 2005 £m |
Single 2005 £m |
|
|---|---|---|---|---|
| Comprising: | ||||
| Insurance contracts | ||||
| Life and pensions | ||||
| – Participating | 7 | 608 | 5 | 711 |
| – Non-participating | 296 | 1,493 | 263 | 1,263 |
| Investment contracts | ||||
| Life and pensions | ||||
| – Participating | 6 | 286 | 21 | 258 |
| – Non-participating | 231 | 3,969 | 165 | 3,016 |
| Investment management | 20 | 27,118 | 15 | 20,158 |
| Total new business | 560 | 33,474 | 469 | 25,406 |
- 1.
- Includes the recategorisation of £18m APE (£3m annual premiums and £149m single premiums) previously reported in with-profits individual pensions in the ‘2006 full year new business results’ Stock Exchange Release announcement on 25 January 2007.
- 2.
- Excludes £4.4bn (2005: £4.1bn) which is held on a temporary basis, generally as part of a portfolio reconstruction.
The UK pooled managed funds of £17.9bn (2005: £14.8bn) 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 two classes of business where there is a material difference between gross and net of reinsurance new business; term assurance, which is 51.9% (2005: 57.5%) reinsured, and permanent health insurance, which is 24.5% (2005: 22.6%) reinsured.