Equitable Life Assurance Society

Equitable Life Assurance Society Annual PRA Insurance Returns for the year ended 31 December 2015 IPRU(INS) Appendices 9.1, 9.3, 9.4, 9.4A, 9.6

Balance Sheet and Profit and Loss Account Contents Form 2 Statement of solvency - long-term insurance business 1 Form 3 Components of capital resources 2 Form 11 Calculation of general insurance capital requirement - premiums 5 amount and brought forward amount Form 12 Calculation of general insurance capital requirement - claims 6 amount and result Form 13 Analysis of admissible assets 7 Form 14 Long term insurance business liabilities and margins 10 Form 17 Analysis of derivative contracts 11 Form 18 With-profits insurance capital component for the fund 12 Form 19 Realistic balance sheet 13 Long Term Insurance Business: Revenue Account and Additional Information Form 40 Revenue account 15 Form 41 Analysis of premiums 16 Form 42 Analysis of claims 17 Form 43 Analysis of expenses 18 Form 44 Linked funds balance sheet 19 Form 45 Revenue account for internal linked funds 20 Form 46 Summary of new business 21 Form 47 Analysis of new business 22 Form 48 Assets not held to match linked liabilities 25 Form 49 Fixed and variable interest assets 26 Form 50 Summary of mathematical reserves 27 Form 51 Valuation summary of non-linked contracts (other than 28 accumulating with-profits contracts) Form 52 Valuation summary of accumulating with-profits contracts 34 Form 53 Valuation summary of property linked contracts 40 Form 54 Valuation summary of index linked contracts 45 Form 55 Unit prices for internal linked funds 49 Form 57 Analysis of valuation interest rate 50 Form 58 Distribution of surplus 52 Form 59A/B With-profits payouts on maturity / surrender 53 Form 60 Long-term insurance capital requirement 55 Supplementary notes to the return 56 Abstract of the Valuation Report 63 Abstract of the Realistic Report 83 Additional information on derivative contracts 103 Additional information on controllers 104 Directors' Certificate 105 Auditor's Report 107 Statement of information on the with-profits actuary 109

17032016:16:29:30 Form 2 Statement of solvency - long-term insurance business Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Adjusted solo solvency calculation Company GL/ registration UK/ day month year Units number CM R2 37038 GL 31 12 2015 000 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 11 542105 485971 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) 12 13 542105 485971 Guarantee fund Guarantee fund requirement 21 63760 74301 Excess (deficiency) of available capital resources to cover guarantee fund requirement 22 478345 411670 Minimum capital requirement (MCR) Long-term insurance capital requirement 31 191280 222902 Resilience capital requirement 32 Base capital resources requirement 33 1993 2176 Individual minimum capital requirement 34 191280 222902 Capital requirements of regulated related undertakings 35 Minimum capital requirement (34+35) 36 191280 222902 Excess (deficiency) of available capital resources to cover 50% of MCR 37 446465 374520 Excess (deficiency) of available capital resources to cover 75% of MCR 38 398645 318794 Enhanced capital requirement With-profits insurance capital component 39 350825 263069 Enhanced capital requirement 40 542105 485971 Capital resources requirement (CRR) Capital resources requirement (greater of 36 and 40) 41 542105 485971 Excess (deficiency) of available capital resources to cover long-term insurance business CRR (13-41) 42 Contingent liabilities Quantifiable contingent liabilities in respect of long-term insurance business as shown in a supplementary note to Form 14 51 1

17032016:16:29:30 Components of capital resources Form 3 (Sheet 1) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Company GL/ registration UK/ day month year Units number CM R3 37038 GL 31 12 2015 000 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 1 2 3 4 Permanent share capital 11 Profit and loss account and other reserves 12 Share premium account 13 Positive valuation differences 14 542400 542400 487332 Fund for future appropriations Core tier one capital in related undertakings 15 16 Core tier one capital (sum of 11 to 16) 19 542400 542400 487332 Tier one waivers Unpaid share capital / unpaid initial funds and calls for supplementary contributions Implicit Items 22 Tier one waivers in related undertakings 23 21 Total tier one waivers as restricted (21+22+23) 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 25 26 27 28 Total tier one capital before deductions (19+24+25+26+27+28) 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) 31 542400 542400 487332 32 33 34 35 36 37 39 542400 542400 487332 2

17032016:16:29:30 Components of capital resources Form 3 (Sheet 2) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Tier two capital Company GL/ registration UK/ day month year Units number CM R3 37038 GL 31 12 2015 000 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 1 2 3 4 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 41 42 43 44 45 46 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 (51+52+53) 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 (61-62-63) 63 69 3

17032016:16:29:30 Components of capital resources Form 3 (Sheet 3) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Total capital resources Company GL/ registration UK/ day month year Units number CM R3 37038 GL 31 12 2015 000 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 1 2 3 4 Positive adjustments for regulated non-insurance related undertakings Total capital resources before deductions (39+69+71) 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 (72-73-74-75-76-77) 71 72 542400 542400 487332 73 294 294 1361 74 75 76 77 79 542105 542105 485971 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 81 542105 542105 485971 82 542105 542105 485971 83 542105 542105 485971 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 (91+92-93+94+95) 91 92 93 94 95 96 4

17032016:16:29:30 Form 11 Calculation of general insurance capital requirement - premiums amount and brought forward amount Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Long term insurance business Company GL/ registration UK/ day month year Units number CM R11 37038 GL 31 12 2015 000 Gross premiums written Premiums taxes and levies (included in line 11) Premiums written net of taxes and levies (11-12) Premiums for classes 11, 12 or 13 (included in line 13) Premiums for "actuarial health insurance" (included in line 13) Sub-total A (13 + 1/2 14-2/3 15) Gross premiums earned Premium taxes and levies (included in line 21) Premiums earned net of taxes and levies (21-22) Premiums for classes 11, 12 or 13 (included in line 23) Premiums for "actuarial health insurance" (included in line 23) Sub-total H (23 + 1/2 24-2/3 25) Sub-total I (higher of sub-total A and sub-total H) Adjusted sub-total I if financial year is not a 12 month period to produce an annual figure Division of gross adjusted premiums amount sub-total I (or adjusted sub-total I if appropriate) Sub-total J (32-33) Claims paid in period of 3 financial years Claims outstanding carried forward at the end of the 3 year period Claims outstanding brought forward at the beginning of the 3 year period Sub-total C (41+42+43-44-45) Amounts recoverable from reinsurers in respect of claims included in Sub-total C Sub-total D (46-47) Reinsurance Ratio (Sub-total D /sub-total C or, if more, 0.50 or, if less, 1.00) Premiums amount (Sub-total J x reinsurance ratio) Provision for claims outstanding (before discounting and net of reinsurance Provision for claims outstanding (before discounting and gross of reinsurance) if both 51.1 and 51.2 are zero, otherwise zero Brought forward amount (See instruction 4) Greater of lines 50 and 53 x 0.18 Excess (if any) over 61.3M EURO x 0.02 For insurance business accounted for on an underwriting year basis For insurance business accounted for on an accident year basis For insurance business accounted for on an underwriting year basis For insurance business accounted for on an accident year basis This financial year Previous year 1 2 11 790 811 12 13 790 811 14 15 764 782 16 281 290 21 790 811 22 23 790 811 24 25 764 782 26 281 290 30 281 290 31 32 51 52 33 34 51 52 41 1569 1234 42 43 44 45 46 1569 1234 47 1569 1234 48 49 0.50 0.50 50 25 26 51 52 53 27 27 54 27 27 5

17032016:16:29:30 Form 12 Calculation of general insurance capital requirement - claims amount and result Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Long term insurance business Company GL/ registration UK/ day month year Units number CM R12 37038 GL 31 12 2015 000 Reference period (No. of months) See INSPRU 1.1.63R Claims paid in reference period This financial year Previous year 1 2 11 36 36 21 1569 1234 Claims outstanding carried forward at the end of the reference period Claims outstanding brought forward at the beginning of the reference period For insurance business accounted for on an underwriting year basis For insurance business accounted for on an accident year basis For insurance business accounted for on an underwriting year basis For insurance business accounted for on an accident year basis 22 23 24 25 Claims incurred in reference period (21+22+23-24-25) Claims incurred for classes 11, 12 or 13 (included in 26) Claims incurred for "actuarial health insurance" (included in 26) Sub-total E (26 +1/2 27-2/3 28) Sub-total F - Conversion of sub-total E to annual figure (multiply by 12 and divide by number of months in the reference period) 26 1569 1234 27 28 1531 1164 29 548 458 31 183 153 Division of sub-total F (gross adjusted claims amount) Sub-total G (32-33) x 0.26 Excess (if any) over 42.9M EURO x 0.03 32 47 40 33 39 47 40 Claims amount Sub-total G x reinsurance ratio (11.49) Higher of premiums amount and brought forward amount (11.54) General insurance capital requirement (higher of lines 41 and 42) 41 24 20 42 27 27 43 27 27 6

17032016:16:29:30 Analysis of admissible assets Form 13 (Sheet 1) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 37038 GL 31 12 2015 000 10 As at end of this financial year As at end of the previous year 1 2 Land and buildings 11 4656 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 21 23 25 27 29 25949 23366 Debts and loans Debts and loans Debts and loans Debts and loans Debts and loans 22 24 26 28 30 Other financial investments Equity shares 41 136 136 Other shares and other variable yield participations 42 Holdings in collective investment schemes 43 8218 9935 Rights under derivative contracts 44 Fixed interest securities Variable interest securities Approved Approved 45 47 3027123 722967 3396192 422378 Other Other 46 48 1322926 9598 1416675 Participation in investment pools 49 Loans secured by mortgages 50 359 399 Loans to public or local authorities and nationalised industries or undertakings 51 Loans secured by policies of insurance issued by the company Other loans 53 Bank and approved credit & financial institution deposits Other financial investments 56 Deposits with ceding undertakings 57 Assets held to match linked liabilities One month or less withdrawal More than one month withdrawal Index linked Property linked 52 37 52 54 327759 327631 55 58 2335 310046 59 1785502 7

17032016:16:29:30 Analysis of admissible assets Form 13 (Sheet 2) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 37038 GL 31 12 2015 000 10 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 60 61 62 63 Debtors and salvage Direct insurance business Salvage and subrogation recoveries Reinsurance Dependants Other Other 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 71 3386 3649 72 73 74 75 5709 2839 76 77 78 4856 4045 79 Tangible assets 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 80 0 81 9814 4540 82 83 84 52938 56241 85 86 2716 3359 Deductions from the aggregate value of assets 87 9085 998 Grand total of admissible assets after deduction of admissible assets in excess of market risk and counterparty limits (11 to 86 less 87) 89 7303240 5985140 8

17032016:16:29:30 Analysis of admissible assets Form 13 (Sheet 3) Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 37038 GL 31 12 2015 000 10 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) 91 7303240 5985140 92 93 294 1361 94 95 96 97 98 99 100 1380416 2428992 101 88703 108556 102 8772653 8524050 Amounts included in line 89 attributable to debts due from related insurers, other than those under contracts of insurance or reinsurance 103 9

17032016:16:29:30 Long term insurance business liabilities and margins Form 14 Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Total business/sub fund ORDINARY LONG TERM Units 000 As at end of As at end of this financial the previous year year 1 2 Mathematical reserves, after distribution of surplus 11 5904577 5442731 Cash bonuses which had not been paid to policyholders prior to end of the financial year Balance of surplus/(valuation deficit) 13 Long term insurance business fund carried forward (11 to 13) 14 5904577 5442731 Claims outstanding Provisions 12 Gross 15 16920 13305 Reinsurers' share 16 Net (15-16) 17 16920 13305 Taxation 21 10 119 Other risks and charges 22 1849 Deposits received from reinsurers 23 795578 Creditors Debenture loans Direct insurance business 31 6343 6529 Reinsurance accepted 32 Reinsurance ceded 33 0 Secured 34 Unsecured 35 Amounts owed to credit institutions 36 3054 2798 Creditors Taxation 37 0 3818 Other 38 23636 19493 Accruals and deferred income 39 9167 10377 Provision for "reasonably foreseeable adverse variations" Total other insurance and non-insurance liabilities (17 to 41) 49 856558 56438 Excess of the value of net admissible assets 51 542105 485971 Total liabilities and margins 59 7303240 5985140 41 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 61 19304 16551 62 1785502 Total liabilities (11+12+49) Increase to liabilities - DAC related 72 71 6761135 5499169 Reinsurers' share of technical provisions 73 1380416 2428992 Other adjustments to liabilities (may be negative) 74 631102 595888 Capital and reserves and fund for future appropriations 75 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) 76 8772653 8524050 10

17032016:16:29:30 Form 17 Analysis of derivative contracts Name of insurer Equitable Life Assurance Society Global business Financial year ended 31 December 2015 Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R17 37038 GL 31 12 2015 000 10 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 11 Interest rates 12 Inflation 13 Credit index / basket 14 Credit single name 15 16 Equity stock 17 Land 18 Assets Liabilities Bought / Long Sold / Short 1 2 3 4 Currencies 19 0 381 16213 Mortality 20 Other 21 Equity index calls 32 Equity stock calls 33 Equity index puts 34 Equity stock puts 35 Other 36 Swaptions 41 Equity index calls 42 Equity stock calls 43 Equity index puts 44 Equity stock puts 45 Other 46 31 79618 1808370 Total (11 to 46) 51 79618 381 1808370 16213 Adjustment for variation margin Total (51 + 52) Fixed-interest securities Equity index Swaptions 52 (88703) 53 (9085) 381 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. 11

17032016:16:29:30 Form 18 With-profits insurance capital component for the fund Name of insurer With-profits fund Equitable Life Assurance Society ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 As at end of As at end of this financial year the previous year 1 2 Regulatory excess capital Regulatory value of assets Regulatory value of liabilities Long-term admissible assets of the fund Implicit items allocated to the fund Mathematical reserves in respect of the fund's non-profit insurance contracts Long-term admissible assets of the fund covering the LTICR of the fund's non-profit insurance contracts Long-term admissible assets of the fund covering the RCR of the fund's non-profit insurance contracts Total (11+12-(13+14+15)) Mathematical reserves (after distribution of surplus) in respect of the fund's with-profits insurance contracts Regulatory current liabilities of the fund 11 7303240 5985140 12 13 1775666 946065 14 50097 42781 15 19 5477477 4996294 21 4128911 4496667 22 856558 56438 Total (21+22) Long-term insurance capital requirement in respect of the fund's with-profits insurance contracts Resilience capital requirement in respect of the fund's with-profits insurance contracts Sum of regulatory value of liabilities, LTICR and RCR (29+31+32) 29 4985469 4553105 31 141183 180121 32 39 5126651 4733226 Regulatory excess capital (19-39) 49 350825 263069 Realistic excess capital Realistic excess capital 51 Excess assets allocated to with-profits insurance business Excess (deficiency) of assets allocated to with-profits insurance business in fund (49-51) Face amount of capital instruments attributed to the fund and included in capital resources (unstressed) Realistic amount of capital instruments attributed to the fund and included in capital resources (stressed) Present value of future shareholder transfers arising from distribution of surplus Present value of other future internal transfers not already taken into account With-profits insurance capital component for fund (if 62 exceeds 63, greater of 61+62-63-64-65 and zero, else greater of 61-64-65 and zero) 61 350825 263069 62 63 64 65 66 350825 263069 12

17032016:16:29:30 Form 19 Realistic balance sheet (Sheet 1) Name of insurer With-profits fund Equitable Life Assurance Society ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Realistic value of assets available to the fund Regulatory value of assets Implicit items allocated to the fund Value of shares in subsidiaries held in fund (regulatory) Excess admissible assets Present value of future profits (or losses) on non-profit insurance contracts written in the fund Value of derivatives and quasi-derivatives not already reflected in lines 11 to 22 Value of shares in subsidiaries held in fund (realistic) Prepayments made from the fund Realistic value of assets of fund (11+21+22+23+24+25-(12+13)) Support arrangement assets Assets available to the fund (26+27) As at end of As at end of this financial year the previous year 1 2 11 5477477 4996294 12 13 21 22 41072 45319 23 24 25 26 5518549 5041614 27 29 5518549 5041614 Realistic value of liabilities of fund With-profits benefit reserve Future policy related liabilities Past miscellaneous surplus attributed to with-profits benefits reserve Past miscellaneous deficit attributed to with-profits benefits reserve Planned enhancements to with-profits benefits reserve Planned deductions for the costs of guarantees, options and smoothing from with-profits benefits reserve Planned deductions for other costs deemed chargeable to with-profits benefits reserve Future costs of contractual guarantees (other than financial options) Future costs of non-contractual commitments Future costs of financial options Future costs of smoothing (possibly negative) Financing costs Any other liabilities related to regulatory duty to treat customers fairly Other long-term insurance liabilities Total (32+34+41+42+43+44+45+46+47-(33+35+36)) 31 2787526 3004036 32 33 34 783516 795715 35 225271 248572 36 41 1085724 1188496 42 43 5393 7187 44 45 46 47 225103 238314 49 1874465 1981140 Realistic current liabilities of the fund 51 856558 56438 Realistic value of liabilities of fund (31+49+51) 59 5518549 5041614 13

17032016:16:29:30 Realistic balance sheet Name of insurer Equitable Life Assurance Society With-profits fund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Form 19 (Sheet 2) As at end of As at end of this financial year the previous year 1 2 Realistic excess capital and additional capital available Value of relevant assets before applying the most adverse scenario other than the present value of future profits arising from business outside with-profits funds present value of future profits (or losses) on long-term insurance contracts written outside the fund included in the value of relevant assets before applying most adverse scenario Value of relevant assets before applying the most adverse scenario (62+63) 62 5518549 5041614 63 64 5518549 5041614 Risk capital margin for fund (62-59) 65 Realistic excess capital for fund (26-(59+65)) 66 Realistic excess available capital for fund (29-(59+65)) 67 Working capital for fund (29-59) 68 Working capital ratio for fund (68/29) 69 Other assets potentially available if required to cover the fund's risk capital margin Additional amount potentially available for inclusion in line 62 81 Additional amount potentially available for inclusion in line 63 82 14

17032016:16:29:30 Long-term insurance business : Revenue account Form 40 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Financial year Previous year 1 2 Income Earned premiums 11 1167794 26774 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 12 198366 182246 13 (234926) 490470 14 (78921) 35592 Other income 15 21328 3128 Total income 19 1073642 738210 Expenditure Claims incurred 21 535318 353683 Expenses payable Interest payable before the deduction of tax Taxation 22 42399 45782 23 4 59 24 (189) 5872 Other expenditure 25 34264 Transfer to (from) non technical account 26 Total expenditure 29 611796 405395 Business transfers - in 31 Business transfers - out 32 Increase (decrease) in fund in financial year (19-29+31-32) 39 461846 332814 Fund brought forward 49 5442731 5109917 Fund carried forward (39+49) 59 5904577 5442731 15

17032016:16:29:30 Long-term insurance business : Analysis of premiums Form 41 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Regular premiums 11 9535 61450 1329 72314 46456 Single premiums 12 56 409 689 1154 18077 Reinsurance - external Regular premiums 13 4969 8370 478 13817 34653 Single premiums 14 (120392) (1038531) 50779 (1108144) 3105 Reinsurance - intra-group Regular premiums 15 Single premiums 16 Net of reinsurance Regular premiums 17 4566 53080 851 58497 11803 Single premiums 18 120448 1038940 (50090) 1109297 14972 Total Gross 19 9591 61859 2017 73467 64533 Reinsurance 20 (115423) (1030161) 51256 (1094327) 37758 Net 21 125014 1092020 (49239) 1167794 26774 16

17032016:16:29:30 Long-term insurance business : Analysis of claims Form 42 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Death or disability lump sums 11 17763 18028 916 36707 30427 Disability periodic payments 12 Surrender or partial surrender 13 9781 283204 5501 298487 240775 Annuity payments 14 4338 59633 6596 70567 68455 Lump sums on maturity 15 6572 217702 3436 227710 183939 Total 16 38454 578568 16450 633472 523597 Reinsurance - external Death or disability lump sums 21 4001 1277 236 5514 14024 Disability periodic payments 22 Surrender or partial surrender 23 2158 27168 262 29588 110555 Annuity payments 24 3984 45023 6526 55532 9463 Lump sums on maturity 25 54 7434 31 7519 35873 Total 26 10197 80901 7056 98154 169914 Reinsurance - intra-group Death or disability lump sums 31 Disability periodic payments 32 Surrender or partial surrender 33 Annuity payments 34 Lump sums on maturity 35 Total 36 Net of reinsurance Death or disability lump sums 41 13762 16751 680 31193 16404 Disability periodic payments 42 Surrender or partial surrender 43 7624 256036 5239 268899 130221 Annuity payments 44 354 14611 70 15035 58992 Lump sums on maturity 45 6518 210269 3404 220191 148066 Total 46 28257 497667 9394 535318 353683 17

17032016:16:29:30 Long-term insurance business : Analysis of expenses Form 43 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Commission - acquisition 11 Commission - other 12 Management - acquisition 13 61 61 51 Management - maintenance 14 1023 31562 1120 33705 34606 Management - other 15 261 8086 286 8633 11125 Total 16 1284 39709 1406 42399 45782 Reinsurance - external Commission - acquisition 21 Commission - other 22 Management - acquisition 23 Management - maintenance 24 Management - other 25 Total 26 Reinsurance - intra-group Commission - acquisition 31 Commission - other 32 Management - acquisition 33 Management - maintenance 34 Management - other 35 Total 36 Net of reinsurance Commission - acquisition 41 Commission - other 42 Management - acquisition 43 61 61 51 Management - maintenance 44 1023 31562 1120 33705 34606 Management - other 45 261 8086 286 8633 11125 Total 46 1284 39709 1406 42399 45782 18

17032016:16:29:30 Long-term insurance business : Linked funds balance sheet Form 44 Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 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 11 55935 12 13 1732799 Total assets (excluding cross investment) (11+12+ 13) 14 1788734 Provision for tax on unrealised capital gains 15 62 Secured and unsecured loans 16 Other liabilities 17 2816 Total net assets (14-15-16-17) 18 1785856 Directly held linked assets Value of directly held linked assets 21 Total Value of directly held linked assets and units held (18+21) 31 1785856 Surplus units 32 354 Deficit units 33 Net unit liability (31-32+33) 34 1785502 19

17032016:16:29:30 Long-term insurance business : Revenue account for internal linked funds Form 45 Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 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 11 50676 12 18272 13 (78858) 14 1959978 Total income 19 1950068 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 21 156517 22 7575 23 21 24 16 25 61 26 23 Total expenditure 29 164213 Increase (decrease) in funds in financial year (19-29) Internal linked fund brought forward Internal linked funds carried forward (39+49) 39 1785855 49 59 1785855 20

17032016:16:29:30 Long-term insurance business : Summary of new business Form 46 Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Number of new policyholders/ scheme members for direct insurance business Regular premium business 11 2 2 6 Single premium business 12 95 0 95 94 Total 13 2 95 0 97 100 new regular premiums Direct insurance business 21 2 2211 31 2244 3923 External reinsurance 22 Intra-group reinsurance 23 Total 24 2 2211 31 2244 3923 new single premiums Direct insurance business 25 56 464 75 595 18075 External reinsurance 26 Intra-group reinsurance 27 Total 28 56 464 75 595 18075 21

22 17032016:16:29:30 Form 47 Long-term insurance business : Analysis of new business Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 Units 000 UK Life / Direct Insurance Business Product code number Product description Regular premium business Number of policyholders / scheme members premiums Number of policyholders / scheme members premiums 1 2 3 4 5 6 325 Level term assurance 2 1 Single premium business 715 Life property linked endowment regular premium - savings 1 56

23 17032016:16:29:30 Form 47 Long-term insurance business : Analysis of new business Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 Units 000 UK Pension / Direct Insurance Business Product code number Product description Regular premium business Number of policyholders / scheme members premiums Number of policyholders / scheme members premiums 1 2 3 4 5 6 380 Miscellaneous protection rider 3 Single premium business 400 Annuity non-profit (CPA) 19 123 545 Individual deposit administration with-profits 360 107 555 Group deposit administration with-profits 23 10 29 565 DWP National Insurance rebates UWP 1 1 725 Individual pensions property linked 1698 23 81 735 Group money purchase pensions property linked 126 32 54 745 DWP National Insurance rebates property linked 9 13 750 Income drawdown property linked 1 55

24 17032016:16:29:30 Form 47 Long-term insurance business : Analysis of new business Name of insurer Equitable Life Assurance Society Total business Financial year ended 31 December 2015 Units 000 Overseas / Direct Insurance Business Product code number Product description Regular premium business Number of policyholders / scheme members premiums Single premium business Number of policyholders / scheme members premiums 1 2 3 4 5 6 400 Annuity non-profit (CPA) 0 13 500 Life UWP single premium 0 0 545 Individual deposit administration with-profits 2 27 555 Group deposit administration with-profits 0 715 Life property linked endowment regular premium - savings 18 10 725 Individual pensions property linked 12 25 735 Group money purchase pensions property linked 0

17032016:16:29:30 Long-term insurance business : Assets not held to match linked liabilities Form 48 Name of insurer Equitable Life Assurance Society Category of assets 10 Total long term insurance business assets Financial year ended 31 December 2015 Units 000 Unadjusted assets Economic exposure Expected income from assets in column 2 Yield before adjustment Return on assets in financial year 1 2 3 4 5 Assets backing non-profit liabilities and non-profit capital requirements Land and buildings 11 Approved fixed interest securities 12 6161 6161 146 0.81 Other fixed interest securities 13 21552 21552 886 2.47 Variable interest securities 14 UK listed equity shares 15 Non-UK listed equity shares 16 Unlisted equity shares 17 Other assets 18 8 8 0.00 Total 19 27721 27721 1032 2.10 Assets backing with-profits liabilities and with-profits capital requirements Land and buildings 21 509 (11.44) Approved fixed interest securities 22 3047419 3047419 106891 1.84 0.32 Other fixed interest securities 23 1325781 1327131 54920 2.47 1.10 Variable interest securities 24 734532 734532 6036 (0.60) (2.23) UK listed equity shares 25 354 0.00 Non-UK listed equity shares 26 2 18.08 Unlisted equity shares 27 26085 8403 0 0.00 38.14 Other assets 28 353866 369332 1074 0.29 (1.39) Total 29 5487682 5487682 168922 1.56 0.11 Overall return on with-profits assets Post investment costs but pre-tax 31 0.06 Return allocated to non taxable 'asset shares' 32 2.00 Return allocated to taxable 'asset shares' 33 1.60 25

17032016:16:29:30 Long-term insurance business : Fixed and variable interest assets Form 49 Name of insurer Equitable Life Assurance Society Category of assets 10 Total long term insurance business assets Financial year ended 31 December 2015 Units 000 Value of assets Mean term Yield before adjustment Yield after adjustment 1 2 3 4 UK Government approved fixed interest securities 11 2703530 9.53 1.82 1.82 Other approved fixed interest securities 21 350049 10.17 1.92 1.91 Other fixed interest securities AAA/Aaa 31 88393 4.66 2.06 1.92 AA/Aa 32 39181 6.89 2.39 2.08 A/A 33 623238 4.92 2.24 1.66 BBB/Baa 34 592667 4.36 2.78 1.57 BB/Ba 35 B/B 36 CCC/Caa 37 2798 1.41 3.76 (14.10) Other (including unrated) 38 2406 0.39 0.00 (17.21) Total other fixed interest securities 39 1348682 4.70 2.47 1.58 Approved variable interest securities 41 724907 12.31 (0.62) (0.62) Other variable interest securities 51 9625 6.20 0.80 0.05 Total (11+21+39+41+51) 61 5136794 8.69 1.65 1.42 26

17032016:16:29:30 Long-term insurance business : Summary of mathematical reserves Form 50 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Form 51 - with-profits 11 44074 20945 1181 66199 86767 Form 51 - non-profit 12 42966 869911 121187 1034063 1117662 Form 52 13 61637 3963146 52177 4076960 4426428 Form 53 - linked 14 111736 1646656 46458 1804851 1891829 Form 53 - non-linked 15 (876) (18749) (226) (19851) 17242 Form 54 - linked 16 16621 301481 318102 326781 Form 54 - non-linked 17 187 4461 4648 4986 Total 18 276344 6787851 220777 7284973 7871695 Reinsurance - external Form 51 - with-profits 21 83 13 95 102 Form 51 - non-profit 22 42449 864135 120141 1026724 486378 Form 52 23 56 14116 1 14173 16455 Form 53 - linked 24 19349 19349 1891829 Form 53 - non-linked 25 10 (347) (337) 17242 Form 54 - linked 26 16550 299216 315767 16736 Form 54 - non-linked 27 187 4457 4644 251 Total 28 59335 1200926 120155 1380416 2428992 Reinsurance - intra-group Form 51 - with-profits 31 Form 51 - non-profit 32 Form 52 33 Form 53 - linked 34 Form 53 - non-linked 35 Form 54 - linked 36 Form 54 - non-linked 37 Total 38 Net of reinsurance Form 51 - with-profits 41 43991 20945 1168 66104 86665 Form 51 - non-profit 42 517 5777 1045 7339 631285 Form 52 43 61581 3949030 52176 4062787 4409973 Form 53 - linked 44 111736 1627307 46458 1785502 Form 53 - non-linked 45 (886) (18401) (226) (19513) Form 54 - linked 46 70 2265 2335 310046 Form 54 - non-linked 47 4 4 4734 Total 48 217010 5586925 100622 5904557 5442702 27

28 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 100 Conventional whole life with-profits OB 1471 34722 851 22703 120 Conventional endowment with-profits OB savings 697 6438 187 5779 125 Conventional endowment with-profits OB target cash 774 31161 593 13015 165 Conventional deferred annuity with-profits 66 213 1 555 210 Additional reserves with-profits OB 2021 300 Regular premium non-profit WL/EA OB 258 3692 53 2846 315 Individual deposit administration non-profit 176 1087 4186 325 Level term assurance 15463 1374621 3213 6342 330 Decreasing term assurance 5870 205904 930 73 390 Deferred annuity non-profit 5 33 395 Annuity non-profit (PLA) 1005 3006 28932 435 Miscellaneous non-profit 1681 143232 411 554

29 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 120 Conventional endowment with-profits OB savings 765 83 83 300 Regular premium non-profit WL/EA OB 3692 53 2846 315 Individual deposit administration non-profit 1087 4186 325 Level term assurance 1374621 3213 6342 330 Decreasing term assurance 205904 930 73 390 Deferred annuity non-profit 33 395 Annuity non-profit (PLA) 3006 28932 435 Miscellaneous non-profit 119327 329 37

30 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Pension / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 155 Conventional pensions endowment with-profits 30 151 367 165 Conventional deferred annuity with-profits 22 58 158 210 Additional reserves with-profits OB 20420 315 Individual deposit administration non-profit 129 725 2521 325 Level term assurance 1922 125837 308 1010 330 Decreasing term assurance 16 635 3 0 380 Miscellaneous protection rider 773207 1936 3332 390 Deferred annuity non-profit 2638 7320 252637 400 Annuity non-profit (CPA) 26776 31618 609485 411 Group death in service dependant's annuities 1666 96 96 435 Miscellaneous non-profit 1015 100112 202 830

31 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Pension / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 315 Individual deposit administration non-profit 725 2521 325 Level term assurance 5169 29 75 330 Decreasing term assurance 10 0 0 380 Miscellaneous protection rider 31814 83 114 390 Deferred annuity non-profit 7320 252637 400 Annuity non-profit (CPA) 30911 608783 435 Miscellaneous non-profit 429 1 5

32 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Overseas / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 195 Annuity with-profits (PLA) 20 55 923 205 Miscellaneous conventional with-profits 7 442 4 31 210 Additional reserves with-profits OB 226 325 Level term assurance 983 103823 263 1172 330 Decreasing term assurance 572 18916 103 71 380 Miscellaneous protection rider 3344 39 146 390 Deferred annuity non-profit 135 678 7423 395 Annuity non-profit (PLA) 164 860 11361 400 Annuity non-profit (CPA) 998 5998 101013

33 17032016:16:29:30 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Form 51 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Overseas / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 205 Miscellaneous conventional with-profits 226 2 13 325 Level term assurance 91355 263 1070 330 Decreasing term assurance 18916 103 71 380 Miscellaneous protection rider 401 17 81 390 Deferred annuity non-profit 678 7423 395 Annuity non-profit (PLA) 811 10491 400 Annuity non-profit (CPA) 5997 101004

34 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 500 Life UWP single premium 2640 27349 26360 26218 1393 27611 510 Life UWP endowment regular premium - savings 5951 92080 1038 21939 21090 1209 22299 555 Group deposit administration with-profits 2 14 14 15 0 15 575 Miscellaneous UWP 1567 1704 637 1704 1536 55 1590 610 Additional reserves UWP 10122 10122

35 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 510 Life UWP endowment regular premium - savings 9528 4 4 575 Miscellaneous UWP 74766 52 52

36 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Pension / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 535 Group money purchase pensions UWP 14275 14275 14275 (159) 14116 545 Individual deposit administration with-profits 52992 1500156 1500156 1715492 30529 1746021 555 Group deposit administration with-profits 69697 608207 608207 697548 21347 718895 565 DWP National Insurance rebates UWP 101457 849907 849907 976137 29729 1005867 570 Income drawdown UWP 1482 36096 36096 36096 36096 610 Additional reserves UWP 442151 442151

37 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Pension / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 535 Group money purchase pensions UWP 14275 14275 14275 (159) 14116

38 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Overseas / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 500 Life UWP single premium 201 2586 2586 2574 83 2657 510 Life UWP endowment regular premium - savings 598 15799 311 9512 9980 32 10012 545 Individual deposit administration with-profits Deferred annuity 315 4096 222 4096 8354 94 8449 545 Individual deposit administration with-profits 842 19249 19249 19455 1089 20544 555 Group deposit administration with-profits 570 4307 4307 4336 873 5209 570 Income drawdown UWP 8 179 179 179 179 575 Miscellaneous UWP 2 26 0 2 1 0 2 610 Additional reserves UWP 5126 5126

39 17032016:16:29:30 Long-term insurance business : Valuation summary of accumulating with-profits contracts Form 52 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 Overseas / Reinsurance ceded external Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 510 Life UWP endowment regular premium - savings 3010 1 1 575 Miscellaneous UWP 26 0 0

40 17032016:16:29:30 Long-term insurance business : Valuation summary of property linked contracts Form 53 Name of insurer Equitable Life Assurance Society Total business / subfund ORDINARY LONG TERM Financial year ended 31 December 2015 Units 000 UK Life / Gross Product code number Product description Number of policyholders / scheme members benefit annual office premiums Nominal value of units Discounted value of units Other liabilities 1 2 3 4 5 6 7 8 9 mathematical reserves 700 Life property linked single premium 750 41449 41380 41380 (1074) 40306 710 Life property linked whole life regular premium 434 14409 39 14361 14361 (130) 14231 715 Life property linked endowment regular premium - savings 1638 67452 1022 54856 54856 (755) 54101 735 Group money purchase pensions property linked 1 14 14 14 (0) 13 795 Miscellaneous property linked 293 16041 112 1126 1126 97 1223 800 Additional reserves property linked 986 986