ST ANDREW'S LIFE ASSURANCE PLC

Transcription

1 Annual FSA Insurance Returns for the year ended 31 December 2011 IPRU(INS) Appendices 9.1, 9.3, 9.4, 9.6

2 Balance Sheet and Profit and Loss Account Contents Form 2 Statement of solvency - long-term insurance business 1 Form 3 Components of capital resources 3 Form 13 Analysis of admissible assets 6 Form 14 Long term insurance business liabilities and margins 12 Form 15 Liabilities (other than long term insurance business) 13 Form 16 Profit and loss account (non-technical account) 14 Form 17 Analysis of derivative contracts 15 Long Term Insurance Business: Revenue Account and Additional Information Form 40 Revenue account 16 Form 41 Analysis of premiums 17 Form 42 Analysis of claims 18 Form 43 Analysis of expenses 19 Form 44 Linked funds balance sheet 20 Form 45 Revenue account for internal linked funds 21 Form 46 Summary of new business 22 Form 47 Analysis of new business 23 Form 48 Assets not held to match linked liabilities 24 Form 50 Summary of mathematical reserves 25 Form 51 Valuation summary of non-linked contracts (other than 26 accumulating with-profits contracts) Form 53 Valuation summary of property linked contracts 30 Form 55 Unit prices for internal linked funds 32 Form 57 Analysis of valuation interest rate 34 Form 58 Distribution of surplus 35 Form 60 Long-term insurance capital requirement 36 Supplementary notes to the return 37 Additional information on derivative contracts 46 Additional information on controllers 47 Abstract of the Valuation Report 48 Directors' Certificate 60 Auditor's Report 61

3 Form 2 Statement of solvency - long-term insurance business Global business Solo solvency calculation Company GL/ registration UK/ day month year Units number CM R GL As at end of this financial year As at end of the previous year 1 2 Capital resources Capital resources arising within the long-term insurance fund Capital resources allocated towards long-term insurance business arising outside the long-term insurance fund Capital resources available to cover long-term insurance business capital resources requirement (11+12) Guarantee fund Guarantee fund requirement Excess (deficiency) of available capital resources to cover guarantee fund requirement Minimum capital requirement (MCR) Long-term insurance capital requirement Resilience capital requirement Base capital resources requirement Individual minimum capital requirement Capital requirements of regulated related undertakings 35 Minimum capital requirement (34+35) Excess (deficiency) of available capital resources to cover 50% of MCR Excess (deficiency) of available capital resources to cover 75% of MCR Enhanced capital requirement With-profits insurance capital component 39 Enhanced capital requirement Capital resources requirement (CRR) Capital resources requirement (greater of 36 and 40) Excess (deficiency) of available capital resources to cover long-term insurance business CRR (13-41) Contingent liabilities Quantifiable contingent liabilities in respect of long-term insurance business as shown in a supplementary note to Form

4 Form 2 Covering Sheet to Form 2 Global business G Stewart Director T Strauss Director D Walkden Director Date: 29 March

5 Components of capital resources Form 3 (Sheet 1) Global business Company GL/ registration UK/ day month year Units number CM R GL Core tier one capital General Long-term Total as at Total as at insurance insurance the end of the end of business business this financial the previous year year Permanent share capital Profit and loss account and other reserves Share premium account 13 Positive valuation differences Fund for future appropriations Core tier one capital in related undertakings Core tier one capital (sum of 11 to 16) Tier one waivers Unpaid share capital / unpaid initial funds and calls for supplementary contributions 21 Implicit Items 22 Tier one waivers in related undertakings 23 Total tier one waivers as restricted ( ) 24 Other tier one capital Perpetual non-cumulative preference shares as restricted Perpetual non-cumulative preference shares in related undertakings Innovative tier one capital as restricted Innovative tier one capital in related undertakings Total tier one capital before deductions ( ) Investments in own shares Intangible assets Amounts deducted from technical provisions for discounting Other negative valuation differences Deductions in related undertakings Deductions from tier one (32 to 36) Total tier one capital after deductions (31-37)

6 Components of capital resources Form 3 (Sheet 2) Global business Tier two capital Company GL/ registration UK/ day month year Units number CM R GL General Long-term Total as at Total as at insurance insurance the end of the end of business business this financial the previous year year Implicit items, (tier two waivers and amounts excluded from line 22) Perpetual non-cumulative preference shares excluded from line 25 Innovative tier one capital excluded from line 27 Tier two waivers, innovative tier one capital and perpetual noncumulative preference shares treated as tier two capital (41 to 43) Perpetual cumulative preference shares Perpetual subordinated debt and securities Upper tier two capital in related undertakings 47 Upper tier two capital (44 to 47) 49 Fixed term preference shares 51 Other tier two instruments 52 Lower tier two capital in related undertakings 53 Lower tier two capital ( ) 59 Total tier two capital before restrictions (49+59) 61 Excess tier two capital 62 Further excess lower tier two capital Total tier two capital after restrictions, before deductions ( )

7 Components of capital resources Form 3 (Sheet 3) Global business Total capital resources Company GL/ registration UK/ day month year Units number CM R GL General Long-term Total as at Total as at insurance insurance the end of the end of business business this financial the previous year year Positive adjustments for regulated non-insurance related undertakings Total capital resources before deductions ( ) Inadmissible assets other than intangibles and own shares Assets in excess of market risk and counterparty limits Deductions for related ancillary services undertakings Deductions for regulated non-insurance related undertakings Deductions of ineligible surplus capital Total capital resources after deductions ( ) Available capital resources for GENPRU/INSPRU tests Available capital resources for guarantee fund requirement Available capital resources for 50% MCR requirement Available capital resources for 75% MCR requirement Financial engineering adjustments Implicit items Financial reinsurance - ceded Financial reinsurance - accepted Outstanding contingent loans Any other charges on future profits Sum of financial engineering adjustments ( )

8 Analysis of admissible assets Form 13 (Sheet 1) Global business Category of assets Total other than long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year 1 2 Land and buildings 11 Investments in group undertakings and participating interests UK insurance dependants Other insurance dependants Non-insurance dependants Other group undertakings Participating interests Shares Shares Shares Shares Shares Debts and loans Debts and loans Debts and loans Debts and loans Debts and loans Other financial investments Equity shares 41 Other shares and other variable yield participations 42 Holdings in collective investment schemes Rights under derivative contracts 44 Fixed interest securities Variable interest securities Approved Approved Other Other Participation in investment pools 49 Loans secured by mortgages 50 Loans to public or local authorities and nationalised industries or undertakings 51 Loans secured by policies of insurance issued by the company 52 Other loans 53 Bank and approved credit & financial institution deposits One month or less withdrawal More than one month withdrawal Other financial investments 56 Deposits with ceding undertakings 57 Assets held to match linked liabilities Index linked 58 Property linked 59 6

9 Analysis of admissible assets Form 13 (Sheet 2) Global business Category of assets Total other than long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year Reinsurers' share of technical provisions 1 2 Provision for unearned premiums Claims outstanding Provision for unexpired risks Other Debtors and salvage Direct insurance business Salvage and subrogation recoveries Reinsurance Dependants Other Other assets Tangible assets Policyholders Intermediaries Accepted Ceded due in 12 months or less due in more than 12 months due in 12 months or less due in more than 12 months Deposits not subject to time restriction on withdrawal with approved institutions Cash in hand Other assets (particulars to be specified by way of supplementary note) Accrued interest and rent Deferred acquisition costs (general business only) Other prepayments and accrued income Deductions from the aggregate value of assets 87 Grand total of admissible assets after deduction of admissible assets in excess of market risk and counterparty limits (11 to 86 less 87)

10 Analysis of admissible assets Form 13 (Sheet 3) Global business Category of assets Total other than long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year 1 2 Reconciliation to asset values determined in accordance with the insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting Total admissible assets after deduction of admissible assets in excess of market risk and counterparty limits (as per line 89 above) Admissible assets in excess of market and counterparty limits Inadmissible assets directly held Capital resources requirement deduction of regulated related undertakings Ineligible surplus capital and restricted assets in regulated related insurance undertakings Inadmissible assets of regulated related undertakings Book value of related ancillary services undertakings Other differences in the valuation of assets (other than for assets not valued above) Deferred acquisition costs excluded from line 89 Reinsurers' share of technical provisions excluded from line 89 Other asset adjustments (may be negative) Total assets determined in accordance with the insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting (91 to 101) Amounts included in line 89 attributable to debts due from related insurers, other than those under contracts of insurance or reinsurance 103 8

11 Analysis of admissible assets Form 13 (Sheet 1) Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year 1 2 Land and buildings 11 Investments in group undertakings and participating interests UK insurance dependants Other insurance dependants Non-insurance dependants Other group undertakings Participating interests Shares Shares Shares Shares Shares Debts and loans Debts and loans Debts and loans Debts and loans Debts and loans Other financial investments Equity shares 41 Other shares and other variable yield participations 42 Holdings in collective investment schemes Rights under derivative contracts Fixed interest securities Variable interest securities Approved Approved Other Other Participation in investment pools 49 Loans secured by mortgages 50 Loans to public or local authorities and nationalised industries or undertakings 51 Loans secured by policies of insurance issued by the company 52 Other loans 53 Bank and approved credit & financial institution deposits One month or less withdrawal More than one month withdrawal Other financial investments 56 Deposits with ceding undertakings 57 Assets held to match linked liabilities Index linked 58 Property linked

12 Analysis of admissible assets Form 13 (Sheet 2) Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year Reinsurers' share of technical provisions 1 2 Provision for unearned premiums Claims outstanding Provision for unexpired risks Other Debtors and salvage Direct insurance business Salvage and subrogation recoveries Reinsurance Dependants Other Other assets Tangible assets Policyholders Intermediaries Accepted Ceded due in 12 months or less due in more than 12 months due in 12 months or less due in more than 12 months Deposits not subject to time restriction on withdrawal with approved institutions Cash in hand Other assets (particulars to be specified by way of supplementary note) Accrued interest and rent Deferred acquisition costs (general business only) Other prepayments and accrued income Deductions from the aggregate value of assets 87 Grand total of admissible assets after deduction of admissible assets in excess of market risk and counterparty limits (11 to 86 less 87)

13 Analysis of admissible assets Form 13 (Sheet 3) Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL As at end of this financial year As at end of the previous year 1 2 Reconciliation to asset values determined in accordance with the insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting Total admissible assets after deduction of admissible assets in excess of market risk and counterparty limits (as per line 89 above) Admissible assets in excess of market and counterparty limits Inadmissible assets directly held Capital resources requirement deduction of regulated related undertakings Ineligible surplus capital and restricted assets in regulated related insurance undertakings Inadmissible assets of regulated related undertakings Book value of related ancillary services undertakings Other differences in the valuation of assets (other than for assets not valued above) Deferred acquisition costs excluded from line 89 Reinsurers' share of technical provisions excluded from line 89 Other asset adjustments (may be negative) Total assets determined in accordance with the insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting (91 to 101) Amounts included in line 89 attributable to debts due from related insurers, other than those under contracts of insurance or reinsurance

14 Long term insurance business liabilities and margins Form 14 Global business Total business/sub fund LTBF Non Profit Units 000 As at end of As at end of this financial the previous year year 1 2 Mathematical reserves, after distribution of surplus Cash bonuses which had not been paid to policyholders prior to end of the financial year 12 Balance of surplus/(valuation deficit) Long term insurance business fund carried forward (11 to 13) Gross Claims outstanding Reinsurers' share 16 Net (15-16) Provisions Taxation 21 Other risks and charges 22 Deposits received from reinsurers 23 Direct insurance business Creditors Reinsurance accepted 32 Reinsurance ceded Debenture loans Secured 34 Unsecured 35 Amounts owed to credit institutions Creditors 36 Taxation Other Accruals and deferred income 39 Provision for "reasonably foreseeable adverse variations" 41 Total other insurance and non-insurance liabilities (17 to 41) Excess of the value of net admissible assets 51 Total liabilities and margins Amounts included in line 59 attributable to liabilities to related companies, other than those under contracts of insurance or reinsurance Amounts included in line 59 attributable to liabilities in respect of property linked benefits Total liabilities ( ) Increase to liabilities - DAC related 72 Reinsurers' share of technical provisions Other adjustments to liabilities (may be negative) Capital and reserves and fund for future appropriations Total liabilities under insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting (71 to 75)

15 Form 15 Liabilities (other than long term insurance business) Global business Company GL/ registration UK/ day month year Units number CM R GL Technical provisions (gross amount) As at end of As at end of this financial the previous year year 1 2 Provisions for unearned premiums 11 Claims outstanding 12 Provision for unexpired risks Equalisation provisions 13 Credit business 14 Other than credit business 15 Other technical provisions 16 Total gross technical provisions (11 to 16) 19 Provisions and creditors Provisions Taxation 21 Other risks and charges 22 Deposits received from reinsurers 31 Direct insurance business 41 Creditors Reinsurance accepted 42 Reinsurance ceded 43 Debenture Secured 44 loans Unsecured 45 Amounts owed to credit institutions 46 Taxation 47 Creditors Foreseeable dividend 48 Other 49 Accruals and deferred income 51 Total (19 to 51) 59 Provision for "reasonably foreseeable adverse variations" 61 Cumulative preference share capital 62 Subordinated loan capital 63 Total (59 to 63) 69 Amounts included in line 69 attributable to liabilities to related insurers, other than those under contracts of insurance or reinsurance 71 Amounts deducted from technical provisions for discounting 82 Other adjustments (may be negative) 83 Capital and reserves Total liabilities under insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting ( )

16 Form 16 Profit and loss account (non-technical account) Global business Company GL/ registration UK/ day month year Units number CM R GL This financial year Previous year 1 2 Transfer (to)/from the general insurance business technical account From Form Equalisation provisions 12 Transfer from the long term insurance business revenue account Income Investment income Value re-adjustments on investments 15 Gains on the realisation of investments Investment management charges, including interest 17 Investment charges Value re-adjustments on investments Loss on the realisation of investments 19 Allocated investment return transferred to the general insurance business technical account Other income and charges (particulars to be specified by way of supplementary note) Profit or loss on ordinary activities before tax ( ) Tax on profit or loss on ordinary activities Profit or loss on ordinary activities after tax (29-31) Extraordinary profit or loss (particulars to be specified by way of supplementary note) 41 Tax on extraordinary profit or loss 42 Other taxes not shown under the preceding items 43 Profit or loss for the financial year (39+41-(42+43)) Dividends (paid or foreseeable) Profit or loss retained for the financial year (49-51) 59 (173426)

17 Form 17 Analysis of derivative contracts Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R GL Derivative contracts Value as at the end of this financial year Notional amount as at the end of this financial year Futures and contracts for differences In the money options Out of the money options Assets Liabilities Bought / Long Sold / Short Fixed-interest securities Interest rates 12 Inflation 13 Credit index / basket 14 Credit single name Equity index Equity stock 17 Land 18 Currencies 19 Mortality 20 Other Swaptions Equity index calls 32 Equity stock calls 33 Equity index puts 34 Equity stock puts 35 Other Swaptions 41 Equity index calls 42 Equity stock calls 43 Equity index puts Equity stock puts 45 Other Total (11 to 46) Adjustment for variation margin 52 (8) (102) Total ( ) THE NOTIONAL AMOUNTS IN COLUMNS 3 AND 4 ARE NOT A MEASURE OF EXPOSURE. Please see instructions 11 and 12 to this Form for the meaning of these figures. 15

18 Form 40 Long-term insurance business : Revenue account Total business / subfund LTBF Non Profit Units 000 Financial year Previous year 1 2 Income Earned premiums Investment income receivable before deduction of tax Increase (decrease) in the value of non-linked assets brought into account Increase (decrease) in the value of linked assets (7714) 14 (337566) Other income Total income Expenditure Claims incurred Expenses payable Interest payable before the deduction of tax Taxation Other expenditure 25 Transfer to (from) non technical account Total expenditure Business transfers - in 31 Business transfers - out 32 Increase (decrease) in fund in financial year ( ) 39 ( ) ( ) Fund brought forward Fund carried forward (39+49)

19 Form 41 Long-term insurance business : Analysis of premiums Total business / subfund LTBF Non Profit Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Gross Regular premiums Single premiums (269) Reinsurance - external Regular premiums Single premiums 14 (17) (17) (461) Reinsurance - intra-group Regular premiums Single premiums (455) Net of reinsurance Regular premiums Single premiums (269) Total Gross Reinsurance Net

20 Form 42 Long-term insurance business : Analysis of claims Total business / subfund LTBF Non Profit Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Gross Death or disability lump sums Disability periodic payments 12 Surrender or partial surrender Annuity payments Lump sums on maturity Total Reinsurance - external Death or disability lump sums Disability periodic payments 22 Surrender or partial surrender 23 Annuity payments 24 Lump sums on maturity 25 Total Reinsurance - intra-group Death or disability lump sums Disability periodic payments 32 Surrender or partial surrender Annuity payments 34 Lump sums on maturity 35 Total Net of reinsurance Death or disability lump sums Disability periodic payments 42 Surrender or partial surrender Annuity payments Lump sums on maturity Total

21 Form 43 Long-term insurance business : Analysis of expenses Total business / subfund LTBF Non Profit Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Gross Commission - acquisition Commission - other Management - acquisition Management - maintenance Management - other 15 Total Reinsurance - external Commission - acquisition 21 (291) (291) (137) Commission - other 22 Management - acquisition 23 Management - maintenance 24 Management - other 25 Total 26 (291) (291) (137) Reinsurance - intra-group Commission - acquisition 31 Commission - other 32 Management - acquisition 33 Management - maintenance 34 (309) (309) (349) Management - other 35 Total 36 (309) (309) (349) Net of reinsurance Commission - acquisition Commission - other Management - acquisition Management - maintenance Management - other 45 Total

22 Form 44 Long-term insurance business : Linked funds balance sheet Total business Units 000 Financial year Previous year 1 2 Internal linked funds (excluding cross investment) Directly held assets (excluding collective investment schemes) Directly held assets in collective investment schemes of connected companies Directly held assets in other collective investment schemes Total assets (excluding cross investment) ( ) Provision for tax on unrealised capital gains 15 (41677) (28103) Secured and unsecured loans 16 Other liabilities Total net assets ( ) Directly held linked assets Value of directly held linked assets 21 Total Value of directly held linked assets and units held (18+21) Surplus units Deficit units Net unit liability ( )

23 Form 45 Long-term insurance business : Revenue account for internal linked funds Total business Units 000 Financial year Previous year 1 2 Income Value of total creation of units Investment income attributable to the funds before deduction of tax Increase (decrease) in the value of investments in the financial year Other income (337413) Total income Expenditure Value of total cancellation of units Charges for management Charges in respect of tax on investment income Taxation on realised capital gains Increase (decrease) in amount set aside for tax on capital gains not yet realised Other expenditure (12545) Total expenditure Increase (decrease) in funds in financial year (19-29) Internal linked fund brought forward Internal linked funds carried forward (39+49) 39 ( ) (925222)

24 Form 46 Long-term insurance business : Summary of new business Total business Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Number of new policyholders/ scheme members for direct insurance business Regular premium business Single premium business Total Amount of new regular premiums Direct insurance business External reinsurance 22 Intra-group reinsurance 23 Total Amount of new single premiums Direct insurance business External reinsurance 26 Intra-group reinsurance 27 Total

25 Form 47 Long-term insurance business : Analysis of new business Total business Units 000 UK Life / Direct Insurance Business Product code number Product description Regular premium business Number of policyholders / Amount of premiums scheme members Number of policyholders / scheme members Amount of premiums Regular premium non-profit WL/EA OB Single premium business Life Property Linked Single Premium

26 Form 48 Long-term insurance business : Assets not held to match linked liabilities Category of assets 10 Total long term insurance business assets Units 000 Unadjusted assets Economic exposure Expected income from assets in column 2 Yield before adjustment Return on assets in financial year Assets backing non-profit liabilities and non-profit capital requirements Land and buildings 11 Approved fixed interest securities Other fixed interest securities 13 Variable interest securities UK listed equity shares 15 Non-UK listed equity shares 16 Unlisted equity shares 17 Other assets Total Assets backing with-profits liabilities and with-profits capital requirements Land and buildings 21 Approved fixed interest securities 22 Other fixed interest securities 23 Variable interest securities 24 UK listed equity shares 25 Non-UK listed equity shares 26 Unlisted equity shares 27 Other assets 28 Total 29 Overall return on with-profits assets Post investment costs but pre-tax 31 Return allocated to non taxable 'asset shares' 32 Return allocated to taxable 'asset shares' 33 24

27 Form 50 Long-term insurance business : Summary of mathematical reserves Total business / subfund LTBF Non Profit Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Gross Form 51 - with-profits 11 Form 51 - non-profit Form Form 53 - linked Form 53 - non-linked Form 54 - linked 16 Form 54 - non-linked 17 Total Reinsurance - external Form 51 - with-profits 21 Form 51 - non-profit Form Form 53 - linked 24 Form 53 - non-linked 25 Form 54 - linked 26 Form 54 - non-linked 27 Total Reinsurance - intra-group Form 51 - with-profits 31 Form 51 - non-profit 32 Form Form 53 - linked Form 53 - non-linked 35 Form 54 - linked 36 Form 54 - non-linked 37 Total Net of reinsurance Form 51 - with-profits 41 Form 51 - non-profit Form Form 53 - linked Form 53 - non-linked Form 54 - linked 46 Form 54 - non-linked 47 Total

28 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Total business / subfund LTBF Non Profit Units 000 UK Life / Gross Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Regular premium non-profit WL/EA OB Level term assurance Decreasing term assurance Income protection non-profit (guaranteed premiums) Annuity non-profit (PLA) Additional reserves non-profit OB 8950

29 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Total business / subfund LTBF Non Profit Units 000 UK Life / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Regular premium non-profit WL/EA OB Level term assurance Decreasing term assurance Income protection non-profit (guaranteed premiums) Additional reserves non-profit OB (1700)

30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Total business / subfund LTBF Non Profit Units 000 Overseas (Irish Republic) / Gross Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Level term assurance Decreasing term assurance Income protection non-profit (guaranteed premiums)

31 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Total business / subfund LTBF Non Profit Units 000 Overseas (Irish Republic) / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Decreasing term assurance

32 Long-term insurance business : Valuation summary of property linked contracts Form 53 Total business / subfund LTBF Non Profit Units 000 UK Life / Gross Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Life property linked single premium Life property linked whole life regular premium Life property linked endowment regular premium - savings Life property linked endowment regular premium - target cash Miscellaneous property linked

33 Long-term insurance business : Valuation summary of property linked contracts Form 53 Total business / subfund LTBF Non Profit Units 000 UK Life / Reinsurance ceded intra-group Product code number Product description Number of policyholders / scheme members Amount of benefit Amount of annual office premiums Nominal value of units Discounted value of units Other liabilities Amount of mathematical reserves Life property linked single premium Life property linked endowment regular premium - target cash

34 Form 55 Long-term insurance business : Unit prices for internal linked funds (Sheet 1) Total business Units 000 Fund name Type of fund Net assets Main series Unit management charge Price at previous valuation date Price at current valuation date Change in price during year Cautious Growth Life 03 - life - defensive managed fund Cautious Growth Life Series Balanced Growth Life 02 - life - balanced managed fund Balanced Growth Life Series (2.41) Pelican Life Single Priced 05 - life - UK equity Pelican Life SP Series (6.09) 32 High Income Life Single Priced 05 - life - UK equity High Income Life SP Series (5.49) All Share Tracker Life Single Priced 01 - life - stock market managed fund All Share Tracker Life SP Se (6.47) International Growth Life Single Priced 06 - life - overseas equity International Growth Life SP (4.69) Cautious Managed Life 03 - life - defensive managed fund Cautious Managed Life Serie (0.72) Money Life SP fund 04 - life - other managed fund Money Life SP fund Series (0.78) Managed Income Fund 04 - life - other managed fund Managed Income Fund Serie (7.53) Life Balanced 02 - life - balanced managed fund Life Balanced Series (3.67) Halifax Balanced Investment 02 - life - balanced managed fund Halifax Balanced Investment Guar Inv Plan December 08 Life Single Priced Fund 04 - life - other managed fund GIP December 08 Life SP Fu (2.87) Life Foundation 02 - life - balanced managed fund Life Foundation Series (1.54) Gilt and Fixed Interest Life Single Pric 04 - life - other managed fund Gilt and Fixed Interest Life S Index Linked Life Single Priced 04 - life - other managed fund Index Linked Life SP Series Guar Inv Plan June 09 Life Single Priced fund 04 - life - other managed fund GIP June 09 Life SP fund Se (1.15) Guar Inv Plan March 09 Life Single Priced Fund 04 - life - other managed fund GIP March 09 Life SP Fund S (1.51) Guar Inv Plan September 09 Life Single Priced Fund 04 - life - other managed fund GIP September 09 Life SP F

35 Form 55 Long-term insurance business : Unit prices for internal linked funds (Sheet 2) Total business Units 000 Fund name Type of fund Net assets Main series Unit management charge Price at previous valuation date Price at current valuation date Change in price during year Life Opportunity 01 - life - stock market managed fund Life Opportunity Series (5.04) 33

36 Long-term insurance business: Analysis of valuation interest rate Form 57 Total business LTBF Non Profit Units 000 Product group Net mathematical reserves Net valuation interest rate Gross valuation interest rate Risk adjusted yield on matching assets UK Life NP Form UK Life Form Misc 8950 Total

37 Form 58 Long-term insurance business : Distribution of surplus Total business / subfund LTBF Non Profit Units 000 Financial year Previous year 1 2 Valuation result Fund carried forward Bonus payments in anticipation of a surplus 12 Transfer to non-technical account Transfer to other funds / parts of funds 14 Subtotal (11 to 14) Mathematical reserves Surplus including contingency and other reserves held towards the capital requirements (deficiency) (15-21) Composition of surplus Balance brought forward Transfer from non-technical account 32 Transfer from other funds / parts of fund 33 Surplus arising since the last valuation Total Distribution of surplus Bonus paid in anticipation of a surplus 41 Cash bonuses 42 Reversionary bonuses 43 Other bonuses 44 Premium reductions 45 Total allocated to policyholders (41 to 45) 46 Net transfer out of fund / part of fund Total distributed surplus (46+47) Surplus carried forward Total (48+49) Percentage of distributed surplus allocated to policyholders Current year 61 Current year Current year Current year

38 Long-term insurance capital requirement Global business Units 000 Insurance death risk capital component LTICR factor Life protection reinsurance % Gross reserves / capital at risk Net reserves / capital at risk Reinsurance factor LTICR Financial year Form 60 LTICR Previous year Classes I (other), II and IX % Classes I (other), II and IX % Classes I (other), II and IX % Classes III, VII and VIII % Total Insurance health risk and life protection reinsurance capital component Class IV supplementary classes 1 and 2 and life protection reinsurance Insurance expense risk capital component Life protection and permanent health reinsurance 31 0% Classes I (other), II and IX 32 1% Classes III, VII and VIII (investment risk) 33 1% Classes III, VII and VIII (expenses fixed 5 yrs +) 34 1% Classes III, VII and VIII (other) 35 25% Class IV (other) 36 1% (489) (556) 1.14 (6) 19 Class V 37 1% Class VI 38 1% Total Insurance market risk capital component Life protection and permanent health reinsurance 41 0% Classes I (other), II and IX 42 3% Classes III, VII and VIII (investment risk) 43 3% Classes III, VII and VIII (expenses fixed 5 yrs +) 44 0% Classes III, VII and VIII (other) 45 0% Class IV (other) 46 3% (489) (556) 1.14 (17) 57 Class V 47 0% Class VI 48 3% Total Long term insurance capital requirement

39 RETURNS UNDER THE ACCOUNTS AND STATEMENTS RULES FINANCIAL YEAR ENDED 31 DECEMBER 2011 NOTES TO THE FORMS *0201* Waiver and modification rules The FSA, on the application of St Andrew's Life Assurance plc, made a Direction under Section 148 of the Financial Services and Markets Act 2000 on 4 May The effect of the direction is to modify GENPRU 2 Annex 7R and INSPRU R so as to permit the firm to value debts arising from amounts advanced as commission to approved credit institutions and wholly owned subsidiaries of approved credit institutions in respect of certain long term insurance policies sold on or before 3 May 2012, and to take such debts fully into account. The FSA, on the application of the firm, made a direction under section 148 of the Financial Services and Markets Act 2000 in October The effect of the direction is to modify the provisions of INSPRU R and IPRU(INS) Appendix 9.3 so that a more appropriate rate of interest is used for assets taken in combination. The FSA, on the application of the firm, made a direction under section 148 of the Financial Services and Markets Act 2000 in December The effect of the direction is to modify the provisions of INSPRU R and IPRU(INS) Appendix 9.3 so that a more appropriate rate of interest is used for assets taken in combination. *0301* Form 3 reconciliation of net admissible assets to total capital resources after deductions Total of admissible assets - other than long term business assets Form 13 Line 89 Total of admissible assets - long term business assets Form 13 Line 89 Less: Mathematical reserves, after distribution of surplus Form 14 Line 11 Total other insurance and non-insurance liabilities Form 14 Line 49 Total liabilities - other than long term insurance business Form 15 Line 69 Net admissible assets / total capital resources after deductions Form 3 Line ,910 10,821,014 (10,448,774) (265,832) - 412,318 *0310* Details of positive and negative valuation differences '000 Adjustments for Deferred Tax 34,851 34,851 37

40 RETURNS UNDER THE ACCOUNTS AND STATEMENTS RULES FINANCIAL YEAR ENDED 31 DECEMBER 2011 NOTES TO THE FORMS (Continued) *0313* Reconciliation of profit and loss and other reserves to Form 16 Profit and Loss Account and other reserves as at 31 December 2010 Form 3 Line 12 Column 4 Profit and Loss Account and other reserves as at 31 December 2011 Form 3 Line 12 Column , ,538 Movement in Profit and Loss Account and Other Reserves (267,516) Reporting basis difference 72,457 Add Long Term Business Fund loss/ (profit) retained for the financial year 21,633 Profit retained for the financial year - Form 16 Line 59 (173,426) *1100* Form has been omitted on account of de minimis limits as per IPRU(INS)Rule *1200* Form has been omitted on account of de minimis limits as per IPRU(INS)Rule *1301* & *1308* Aggregate value of certain securities The company held no investments meeting the specified criteria. *1304* & *1310* Set off of amounts Amounts have been set off to the extent permitted by generally accepted accounting principles. 38

41 RETURNS UNDER THE ACCOUNTS AND STATEMENTS RULES FINANCIAL YEAR ENDED 31 DECEMBER 2011 NOTES TO THE FORMS (Continued) *1305* & *1319* Maximum Counterparty Limit The Company s investment guidelines set maximum counterparty limits in order to maintain the admissibility of assets in accordance with INSPRU Shareholder and Non-profit funds have mandates which are reviewed annually. The maximum approved counterparty limits for the SWIP Defensive Gilt fund (0-5 year Gilts) and SWIP GLF (stable NAV cash fund) are 1bn and 6bn respectively across the Lloyds Banking Group Insurance Division as a whole. The table below considers the remaining Shareholder and Non Profit fund limits for approved and unapproved counterparties. The amount limits apply in aggregate across all mandates that are treated as Group Reportable Balances. Credit rating of bond AAA Approved (AAA externally rated and guaranteed by a sovereign/supranational) Maximum percentage of Fund 7.50% 600m Maximum absolute amount AAA 4.00% 325m AA+ 3.00% 250m AA 2.50% 200m AA- 2.00% 175m A+ 1.75% 150m A 1.50% 125m A- 1.25% 100m BBB+ 1.00% 75m BBB 0.75% 75m BBB- 0.75% 50m BB+ and below 0.50% 40m Where an asset is unrated, SWIP will assign an appropriate rating and this must be signed off by the Investment Office. The total of all unrated assets for the Fund shall not exceed 5%. There were no breaches of counterparty limits during the year. 39

42 RETURNS UNDER THE ACCOUNTS AND STATEMENTS RULES FINANCIAL YEAR ENDED 31 DECEMBER 2011 NOTES TO THE FORMS (Continued) *1306* & *1312* Amount and nature of exposure at the year end to large counterparties At 31st December 2011 there were four exposures to a counterparty greater than 5% of the base capital resources requirement and long term insurance business liabilities, excluding property linked liabilities and net of reinsurance ceded. Counterparty Nature of assets 000 UKFI (Lloyds Banking Group plc and Royal Bank of Scotland plc) Direct insurance business intermediary debtors 40,934 Bank accounts 30,124 Northern Trust Custodian bank accounts 15,475 Collateral 56,868 *1318* Details of other adjustments to assets 000 Reclassification of unit linked liabilities included in Net Asset Value of unit 41,396 linked funds on Form 13 Line 59 Other negative valuation differences 10,419 Derivative variation margin 102 Other adjustments to assets Form 13 Line ,917 *1401* Provision for adverse changes No provision for adverse changes under either GENPRU R to GENPRU R or INSPRU R and INSPRU R has been made. The Company considers asset valuations in the context of the requirements of GENPRU R to GENPRU R. The need for a provision for adverse variation is also considered by the Actuarial Function Holder. The Company's mark to model valuations are formally reviewed and signed off to provide additional comfort over robustness. The Company reviews any potential liquidity issues on assets on a regular basis and incorporates valuation adjustments if required. The Company reviews its investments to identify whether any provisions are required pursuant to INSPRU R and INSPRU R. Sufficient cover is held for all positions to match reasonably foreseeable adverse variations and no non-approved derivatives or quasi-derivatives are held. 40

43 RETURNS UNDER THE ACCOUNTS AND STATEMENTS RULES FINANCIAL YEAR ENDED 31 DECEMBER 2011 NOTES TO THE FORMS (Continued) *1402* Details of contingencies and commitments: a) Charges over assets There are no charges over assets. b) Potential capital gains tax liability There is no potential capital gains tax liability should the Company dispose of its assets, based on asset values as at 31 st December c) Contingent liabilities There are no contingent liabilities. d) Guarantees, indemnities or other contractual commitments affected other than in the ordinary course of insurance business and in respect of related companies. There are no such items. e) Other fundamental uncertainties There are no other uncertainties which it is necessary to disclose. *1405* Details of other adjustments to liabilities 000 Reclassification of unit linked liabilities included in Net Asset Value of unit 41,396 linked funds on Form 13 Line 59 Deferred Tax 45,270 Derivative variation margin 102 Other adjustments to liabilities Form 14 Line 74 86,768 *1501* Provision for adverse changes No provision for adverse changes under either GENPRU R to GENPRU R or INSPRU R and INSPRU R has been made. The Company considers asset valuations in the context of the requirements of GENPRU R to GENPRU R. The need for a provision for adverse variation is also considered by the Actuarial Function Holder. The Company reviews any potential liquidity issues on assets on a regular basis and incorporates valuation adjustments if required. No derivatives are held outside of the long-term business fund. 41