Consolidated Balance Sheet

As at 31 December 2006

	Notes	2006 £m	2005 £m
Assets
Investment in associates	48	16	16
Plant and equipment	18	43	32
Investment property	19	6,852	5,774
Financial investments	20	201,430	176,622
Reinsurers’ share of contract liabilities	22	1,481	2,779
Purchased interest in long term businesses	23	23	25
Deferred acquisition costs	24	1,456	1,375
Income tax recoverable	25	12	79
Other assets	26	1,622	1,162
Cash and cash equivalents	27	4,930	4,001
Total assets	4	217,865	191,865
Equity
Share capital	28	163	163
Share premium account	28	923	908
Treasury shares	28	(45)	(36)
Other reserves	29	49	34
Retained earnings	30	4,335	3,188
Capital and reserves attributable to ordinary equity holders of the Company		5,425	4,257
Subordinated borrowings designated as equity	38	–	394
Capital and reserves attributable to equity holders of the Company		5,425	4,651
Minority interests	31	414	285
Total equity	4/32	5,839	4,936
Liabilities
Subordinated borrowings	38	818	415
Participating insurance contracts	33	12,660	13,180
Participating investment contracts	34	7,501	7,476
Unallocated divisible surplus	35	2,178	1,894
Value of in-force non-participating contracts	36	(391)	(379)
Participating contract liabilities		21,948	22,171
Non-participating insurance contracts	33	21,602	23,152
Non-participating investment contracts	34	162,016	135,804
Non-participating contract liabilities		183,618	158,956
Senior borrowings	38	1,607	1,634
Provisions	40	568	582
Deferred income liabilities	41	422	351
Deferred tax liabilities	42	472	492
Income tax liabilities	25	106	197
Other liabilities	43	1,663	1,303
Net asset value attributable to unitholders		804	828
Total liabilities	4	212,026	186,929
Total equity and liabilities		217,865	191,865

The notes form an integral part of these financial statements.

The financial statements and the supplementary financial statements were approved by the directors on 13 March 2007 and were signed on their behalf by: