Standard Life Investment Funds Limited

Standard Life Investment Funds Limited Annual FSA Insurance Returns for the year ended 31 December 2008 Prepared in accordance with the Accounts and Statements Rules (Appendices 9.1,9.3,9.4 and 9.6)

Contents Appendix 9.1 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 Appendix 9.3 Long Term Insurance Business 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 29 Form 49 Fixed and variable interest assets 30 Form 50 Summary of mathematical reserves 31 Form 51 Valuation summary of non-linked contracts (other than 32 accumulating with-profits contracts) Form 53 Valuation summary of property linked contracts 35 Form 54 Valuation summary of index linked contracts 40 Form 55 Unit prices for internal linked funds 42 Form 56 Index linked business 44 Form 57 Analysis of valuation interest rate 45 Form 58 Distribution of surplus 46 Form 60 Long-term insurance capital requirement 47 Supplementary notes to the return 48 Additional information on derivative contracts 58 Additional information on controllers 59 Appendix 9.4 Appendix 9.6 Abstract of the Valuation Report 60 Directors' Certificate 74 Auditor's Report 75

Form 2 Statement of solvency - long-term insurance business Name of insurer Standard Life Investment Funds Limited Global business Solo solvency calculation Company GL/ registration UK/ day month year Units number CM R2 68442 GL 31 12 2008 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 215655 20294 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 67496 140979 13 283151 161273 Guarantee fund Guarantee fund requirement 21 25617 16409 Excess (deficiency) of available capital resources to cover guarantee fund requirement 22 257534 144864 Minimum capital requirement (MCR) Long-term insurance capital requirement 31 76851 49227 Resilience capital requirement 32 13689 Base capital resources requirement 33 2518 2231 Individual minimum capital requirement 34 90540 49227 Capital requirements of regulated related undertakings 35 Minimum capital requirement (34+35) 36 90540 49227 Excess (deficiency) of available capital resources to cover 50% of MCR 37 237881 136660 Excess (deficiency) of available capital resources to cover 75% of MCR 38 215246 124353 Enhanced capital requirement With-profits insurance capital component 39 Enhanced capital requirement 40 90540 49227 Capital resources requirement (CRR) Capital resources requirement (greater of 36 and 40) 41 90540 49227 Excess (deficiency) of available capital resources to cover long-term insurance business CRR (13-41) 42 192611 112046 Contingent liabilities Quantifiable contingent liabilities in respect of long-term insurance business as shown in a supplementary note to Form 14 51 1

Covering Sheet to Form 2 Form 2 Name of insurer Standard Life Investment Funds Limited Global business Director J BLACK Director J GILL Company Secretary G McGOVERN 2

Components of capital resources Form 3 (Sheet 1) Name of insurer Standard Life Investment Funds Limited Global business Core tier one capital Company GL/ registration UK/ day month year Units number CM R3 68442 GL 31 12 2008 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 Permanent share capital 11 52500 52500 36500 Profit and loss account and other reserves 12 (91257) (91257) (182186) Share premium account 13 459000 459000 315000 Positive valuation differences 14 343299 343299 297740 Fund for future appropriations Core tier one capital in related undertakings 15 16 Core tier one capital (sum of 11 to 16) 19 763542 763542 467054 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 (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 763542 763542 467054 32 33 422704 422704 273470 34 35 36 37 422704 422704 273470 39 340838 340838 193584 3

Components of capital resources Form 3 (Sheet 2) Name of insurer Standard Life Investment Funds Limited Global business Tier two capital Company GL/ registration UK/ day month year Units number CM R3 68442 GL 31 12 2008 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 non-cumulative 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 4

Components of capital resources Form 3 (Sheet 3) Name of insurer Standard Life Investment Funds Limited Global business Total capital resources Company GL/ registration UK/ day month year Units number CM R3 68442 GL 31 12 2008 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 340838 340838 193584 73 57687 57687 32311 74 75 76 77 79 283151 283151 161273 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 283151 283151 161273 82 283151 283151 161273 83 283151 283151 161273 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 161013 161013 150560 95 96 161013 161013 150560 5

Analysis of admissible assets Form 13 (Sheet 1) Name of insurer Standard Life Investment Funds Limited 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 R13 68442 GL 31 12 2008 000 1 As at end of this financial year As at end of the previous year 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 21 Debts and loans 22 Shares 23 Debts and loans 24 Shares 25 Debts and loans 26 Shares 27 Debts and loans 28 Shares 29 Debts and loans 30 1 2 Other financial investments Equity shares 41 Other shares and other variable yield participations 42 Holdings in collective investment schemes 43 15038 16645 Rights under derivative contracts 44 Fixed interest securities Variable interest securities Approved Approved 45 47 Other Other 46 48 Participation in investment pools 49 Loans secured by mortgages Loans to public or local authorities and nationalised industries or undertakings Loans secured by policies of insurance issued by the company 50 51 52 Other loans 53 Bank and approved credit & One month or less withdrawal 54 55571 130000 financial institution deposits More than one month withdrawal 55 Other financial investments 56 Deposits with ceding undertakings 57 Assets held to match linked Index linked 58 liabilities Property linked 59 6

Analysis of admissible assets Form 13 (Sheet 2) Name of insurer Standard Life Investment Funds Limited 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 R13 68442 GL 31 12 2008 000 1 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 60 Claims outstanding 61 Provision for unexpired risks 62 Other 63 Debtors and salvage Policyholders 71 Direct insurance business Intermediaries 72 Salvage and subrogation recoveries 73 Accepted 74 Reinsurance Ceded 75 due in 12 months or less 76 Dependants due in more than 12 months 77 due in 12 months or less 78 27 Other due in more than 12 months 79 Other assets Tangible assets Deposits not subject to time restriction on withdrawal with approved institutions 80 81 5 17 Cash in hand Other assets (particulars to be specified by way of supplementary note) 82 83 Accrued interest and rent 84 26 81 Deferred acquisition costs (general business only) 85 Other prepayments and accrued income 86 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) 89 70640 146770 7

Analysis of admissible assets Form 13 (Sheet 3) Name of insurer Standard Life Investment Funds Limited 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 R13 68442 GL 31 12 2008 000 1 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 91 70640 146770 above) Admissible assets in excess of market and counterparty limits 92 Inadmissible assets directly held 93 Capital resources requirement deduction of regulated related undertakings Ineligible surplus capital and restricted assets in regulated related insurance undertakings 94 95 Inadmissible assets of regulated related undertakings 96 Book value of related ancillary services undertakings 97 Other differences in the valuation of assets (other than for assets not valued above) 98 Deferred acquisition costs excluded from line 89 99 Reinsurers' share of technical provisions excluded from line 89 100 Other asset adjustments (may be negative) 101 (2918) (132943) 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) 102 67722 13827 Amounts included in line 89 attributable to debts due from related insurers, other than those under contracts of insurance or reinsurance 103 8

Analysis of admissible assets Form 13 (Sheet 1) Name of insurer Standard Life Investment Funds Limited Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 68442 GL 31 12 2008 000 10 As at end of this financial year As at end of the previous year 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 21 Debts and loans 22 Shares 23 Debts and loans 24 Shares 25 Debts and loans 26 Shares 27 Debts and loans 28 Shares 29 Debts and loans 30 1 2 Other financial investments Equity shares 41 Other shares and other variable yield participations 42 Holdings in collective investment schemes 43 1325769 953948 Rights under derivative contracts 44 94658 5606 Fixed interest securities Variable interest securities Approved Approved 45 47 9046 Other Other 46 48 Participation in investment pools 49 Loans secured by mortgages Loans to public or local authorities and nationalised industries or undertakings Loans secured by policies of insurance issued by the company 50 51 52 Other loans 53 Bank and approved credit & One month or less withdrawal 54 210412 69118 financial institution deposits More than one month withdrawal 55 Other financial investments 56 Deposits with ceding undertakings 57 Assets held to match linked Index linked 58 198431 104671 liabilities Property linked 59 42358792 50098232 9

Analysis of admissible assets Form 13 (Sheet 2) Name of insurer Standard Life Investment Funds Limited Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 68442 GL 31 12 2008 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 60 Claims outstanding 61 Provision for unexpired risks 62 Other 63 Debtors and salvage Policyholders 71 Direct insurance business Intermediaries 72 Salvage and subrogation recoveries 73 Accepted 74 Reinsurance Ceded 75 due in 12 months or less 76 Dependants due in more than 12 months 77 due in 12 months or less 78 133528 135582 Other due in more than 12 months 79 Other assets Tangible assets Deposits not subject to time restriction on withdrawal with approved institutions 80 81 201 1182 Cash in hand Other assets (particulars to be specified by way of supplementary note) 82 83 Accrued interest and rent 84 22 Deferred acquisition costs (general business only) 85 Other prepayments and accrued income 86 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) 89 44330837 51368361 10

Analysis of admissible assets Form 13 (Sheet 3) Name of insurer Standard Life Investment Funds Limited Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R13 68442 GL 31 12 2008 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 91 44330837 51368361 above) Admissible assets in excess of market and counterparty limits 92 Inadmissible assets directly held 93 71528 39706 Capital resources requirement deduction of regulated related undertakings Ineligible surplus capital and restricted assets in regulated related insurance undertakings 94 95 Inadmissible assets of regulated related undertakings 96 Book value of related ancillary services undertakings 97 Other differences in the valuation of assets (other than for assets not valued above) 98 (51101) Deferred acquisition costs excluded from line 89 99 408863 296683 Reinsurers' share of technical provisions excluded from line 89 100 986720 857263 Other asset adjustments (may be negative) 101 324670 782613 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) 102 46122618 53293525 Amounts included in line 89 attributable to debts due from related insurers, other than those under contracts of insurance or reinsurance 103 15090 11

Long term insurance business liabilities and margins Form 14 Name of insurer Standard Life Investment Funds Limited Global business Total business/sub fund 10 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 43899053 51270603 Cash bonuses which had not been paid to policyholders prior to end of the financial year 12 Balance of surplus/(valuation deficit) 13 215655 20294 Long term insurance business fund carried forward (11 to 13) 14 44114708 51290897 Gross 15 Claims outstanding Reinsurers' share 16 Net (15-16) 17 Provisions Taxation 21 Other risks and charges 22 Deposits received from reinsurers 23 Direct insurance business 31 Creditors Reinsurance accepted 32 Reinsurance ceded 33 Debenture loans Secured 34 Unsecured 35 Amounts owed to credit institutions 36 1756 667 Creditors Taxation 37 3206 Other 38 214373 73591 Accruals and deferred income 39 Provision for "reasonably foreseeable adverse variations" 41 Total other insurance and non-insurance liabilities (17 to 41) 49 216129 77464 Excess of the value of net admissible assets 51 Total liabilities and margins 59 44330837 51368361 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 70518 100077 62 42358792 50098232 Total liabilities (11+12+49) 71 44115182 51348067 Increase to liabilities - DAC related 72 30608 Reinsurers' share of technical provisions 73 986720 857263 Other adjustments to liabilities (may be negative) 74 667969 899254 Capital and reserves and fund for future appropriations 75 352747 158333 Total liabilities under insurance accounts rules or international accounting standards as applicable to the firm for the purpose its external financial reporting (71 to 75) 76 46122618 53293525 12

Form 15 Liabilities (other than long term insurance business) Name of insurer Global business Technical provisions (gross amount) Standard Life Investment Funds Limited Company GL/ registration UK/ day month year Units number CM R15 68442 GL 31 12 2008 000 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 As at end of As at end of this financial the previous year year 1 2 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 47 226 Creditors Foreseeable dividend 48 Other 49 2918 5791 Accruals and deferred income 51 Total (19 to 51) 59 3144 5791 Provision for "reasonably foreseeable adverse variations" 61 Cumulative preference share capital 62 Subordinated loan capital 63 Total (59 to 63) 69 3144 5791 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 (2918) (2944) Capital and reserves 84 67496 10980 Total liabilities under insurance accounts rules or international accounting standards as applicable to the firm for the purpose of its external financial reporting (69-82+83+84) 85 67722 13827 13

Form 16 Profit and loss account (non-technical account) Name of insurer Standard Life Investment Funds Limited Global business Company GL/ registration UK/ day month year Units number CM R16 68442 GL 31 12 2008 000 This financial year Previous year 1 2 Transfer (to)/from the general insurance business technical account From Form 20 11 Equalisation provisions 12 Transfer from the long term insurance business revenue account Income 13 (234000) (59005) 14 686 2868 Investment income Value re-adjustments on investments 15 Gains on the realisation of investments 16 108 Investment management charges, including interest 17 Investment charges Value re-adjustments on investments Loss on the realisation of investments 18 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) 20 21 (1) Profit or loss on ordinary activities before tax (11+12+13+14+15+16-17-18-19-20+21) 29 (233207) (56137) Tax on profit or loss on ordinary activities 31 277 1622 Profit or loss on ordinary activities after tax (29-31) 39 (233484) (57759) 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)) 49 (233484) (57759) Dividends (paid or foreseeable) 51 Profit or loss retained for the financial year (49-51) 59 (233484) (57759) 14

Form 17 Analysis of derivative contracts Name of insurer Standard Life Investment Funds Limited Global business Category of assets Total long term insurance business assets Company GL/ Category registration UK/ day month year Units of number CM assets R17 68442 GL 31 12 2008 000 10 Derivative contracts Value as at the end of this financial year Notional amount as at the end of this financial year Assets Liabilities Bought / Long Sold / Short 1 2 3 4 Fixed-interest securities 11 Interest rates 12 94658 39639 439937 387592 Inflation 13 Credit index / basket 14 Futures and contracts for Credit single name Equity index 15 16 differences Equity stock 17 Land 18 Currencies 19 Mortality 20 Other Swaptions 21 31 Equity index calls 32 In the money Equity stock calls 33 options Equity index puts 34 Equity stock puts 35 Other 36 Swaptions 41 Equity index calls 42 Out of the Equity stock calls 43 money options Equity index puts 44 Equity stock puts 45 Other 46 Total (11 to 46) 51 94658 39639 439937 387592 Adjustment for variation margin Total (51 + 52) 52 53 94658 39639 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

Form 40 Long-term insurance business : Revenue account Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 Financial year Previous year 1 2 Income Earned premiums 11 8569827 11383458 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 1917179 1553258 13 (26562) (15281) 14 (12133804) 313057 Other income 15 225382 314872 Total income 19 (1447978) 13549364 Expenditure Claims incurred 21 5900204 6466041 Expenses payable Interest payable before the deduction of tax Taxation 22 721454 821463 23 3885 3950 24 (195192) (76110) Other expenditure 25 21766 12498 Transfer to (from) non technical account 26 (234000) (59005) Total expenditure 29 6218117 7168837 Business transfers - in 31 Business transfers - out 32 Increase (decrease) in fund in financial year (19-29+31-32) 39 (7666095) 6380527 Fund brought forward 49 51780803 44910370 Fund carried forward (39+49) 59 44114708 51290897 16

Form 41 Long-term insurance business : Analysis of premiums Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Regular premiums 11 81456 2103379 53818 2238653 2064620 Single premiums 12 1362315 4994346 370222 6726883 9622013 Reinsurance - external Regular premiums 13 93929 93929 53149 Single premiums 14 301780 301780 250026 Reinsurance - intra-group Regular premiums 15 Single premiums 16 Net of reinsurance Regular premiums 17 81456 2009450 53818 2144724 2011471 Single premiums 18 1362315 4692566 370222 6425103 9371987 Total Gross 19 1443771 7097725 424040 8965536 11686633 Reinsurance 20 395709 395709 303175 Net 21 1443771 6702016 424040 8569827 11383458 17

Form 42 Long-term insurance business : Analysis of claims Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 Gross UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Death or disability lump sums 11 106917 63052 6812 176781 328823 Disability periodic payments 12 1282 1282 937 Surrender or partial surrender 13 1018728 3536350 120405 4675483 4684157 Annuity payments 14 46319 353036 23777 423132 868408 Lump sums on maturity 15 53675 590607 21446 665728 631023 Total 16 1226921 4543045 172440 5942406 6513348 Reinsurance - external Death or disability lump sums 21 980 980 265 Disability periodic payments 22 Surrender or partial surrender 23 34817 34817 44966 Annuity payments 24 Lump sums on maturity 25 6405 6405 2076 Total 26 42202 42202 47307 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 106917 62072 6812 175801 328558 Disability periodic payments 42 1282 1282 937 Surrender or partial surrender 43 1018728 3501533 120405 4640666 4639191 Annuity payments 44 46319 353036 23777 423132 868408 Lump sums on maturity 45 53675 584202 21446 659323 628947 Total 46 1226921 4500843 172440 5900204 6466041 18

Form 43 Long-term insurance business : Analysis of expenses Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 Gross UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Commission - acquisition 11 77726 72019 8567 158312 206925 Commission - other 12 8256 80814 1343 90413 83150 Management - acquisition 13 73687 301507 11321 386515 421607 Management - maintenance 14 12988 74123 (897) 86214 109781 Management - other 15 Total 16 172657 528463 20334 721454 821463 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 77726 72019 8567 158312 206925 Commission - other 42 8256 80814 1343 90413 83150 Management - acquisition 43 73687 301507 11321 386515 421607 Management - maintenance 44 12988 74123 (897) 86214 109781 Management - other 45 Total 46 172657 528463 20334 721454 821463 19

Form 44 Long-term insurance business : Linked funds balance sheet Name of insurer Standard Life Investment Funds Limited 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 11 35477020 41854875 12 6303742 7552974 13 816139 1362716 Total assets (excluding cross investment) (11+12+ 13) 14 42596901 50770565 Provision for tax on unrealised capital gains 15 (150057) 132990 Secured and unsecured loans 16 20309 16468 Other liabilities 17 367857 522875 Total net assets (14-15-16-17) 18 42358792 50098232 Directly held linked assets Value of directly held linked assets 21 Total Value of directly held linked assets and units held (18+21) 31 42358792 50098232 Surplus units 32 Deficit units 33 Net unit liability (31-32+33) 34 42358792 50098232 20

Form 45 Long-term insurance business : Revenue account for internal linked funds Name of insurer Standard Life Investment Funds Limited 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 11 7712056 9973842 12 1801185 1460386 13 (12130225) 312461 14 104309 50549 Total income 19 (2512675) 11797238 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 5521014 5590104 22 395903 428395 23 53306 34729 24 1840 2098 25 (289796) (57121) 26 29292 39155 Total expenditure 29 5711559 6037360 Increase (decrease) in funds in financial year (19-29) Internal linked fund brought forward Internal linked funds carried forward (39+49) 39 (8224234) 5759878 49 50583026 44338354 59 42358792 50098232 21

Form 46 Long-term insurance business : Summary of new business Name of insurer Total business Standard Life Investment Funds Limited 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 Single premium business 12 Total 13 Amount of new regular premiums Direct insurance business 21 External reinsurance 22 Intra-group reinsurance 23 58 576523 18493 595074 535166 Total 24 58 576523 18493 595074 535166 Amount of new single premiums Direct insurance business 25 External reinsurance 26 24006 24006 2641 Intra-group reinsurance 27 1315635 4603484 404566 6323685 8574845 Total 28 1315635 4627490 404566 6347690 8577486 22

Form 47 Long-term insurance business : Analysis of new business Name of insurer Standard Life Investment Funds Limited Total business Units 000 UK Life / Reinsurance accepted intra-group Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 395 Annuity non-profit (PLA) 20151 700 Life property linked single premium - Capital Investment Bond 1264006 700 Life property linked single premium - Special Investment Bond 12436 700 Life property linked single premium - Wrap Onshore Bond 19042 710 Life property linked whole life regular premium - Variable Protection Plan 55 715 Life property linked endowment regular premium - savings - Versatile Investment Plan 3 23

Form 47 Long-term insurance business : Analysis of new business Name of insurer Standard Life Investment Funds Limited Total business Units 000 UK Pension / Reinsurance accepted external Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 755 Trustee investment plan 24006 24

Form 47 Long-term insurance business : Analysis of new business (Sheet 1) Name of insurer Standard Life Investment Funds Limited Total business Units 000 UK Pension / Reinsurance accepted intra-group Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 400 Annuity non-profit (CPA) 447055 400 Annuity non-profit (CPA) - Group Annuity in Payment 474 725 Individual pensions property linked - Personal Pension Plan & Castle Pension Series 5272 23342 725 Individual pensions property linked - Stakeholder 723 54 730 Individual pensions property linked - increments - Personal Pension Plan & Castle Pension Series 13788 215398 730 Individual pensions property linked - increments - Stakeholder 11089 112068 735 Group money purchase pensions property linked - Group Money Purchase Plan 27916 9931 735 Group money purchase pensions property linked - Personal Pension Plan & Castle Pension Series 111783 17657 735 Group money purchase pensions property linked - Stakeholder 61038 6660 740 Group money purchase pensions property linked - increments - Group Money Purchase Plan 65074 262115 740 Group money purchase pensions property linked - increments - Personal Pension Plan & Castle Pension Series 43341 164801 740 Group money purchase pensions property linked - increments - Stakeholder 24151 62645 745 DWP National Insurance rebates property linked 168093 750 Income drawdown property linked - Flexible Pension Plan 7 1452 750 Income drawdown property linked - Group Flexible Retirement Plan 107177 220030 25

Form 47 Long-term insurance business : Analysis of new business (Sheet 2) Name of insurer Standard Life Investment Funds Limited Total business Units 000 UK Pension / Reinsurance accepted intra-group Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 750 Income drawdown property linked - Group Self Invested Personal Pension 6278 39560 750 Income drawdown property linked - Pension Fund Withdrawal Product 165461 750 Income drawdown property linked - Self Invested Personal Pension 30645 972106 750 Income drawdown property linked - Wrap Self Invested Personal Pension 1105 37837 755 Trustee investment plan 66625 1669727 760 Small self administered schemes 511 4080 905 Index linked annuity 2938 26

Form 47 Long-term insurance business : Analysis of new business (Sheet 1) Name of insurer Standard Life Investment Funds Limited Total business Units 000 Overseas (Irish Republic) / Reinsurance accepted intra-group Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 400 Annuity non-profit (CPA) 9281 700 Life property linked single premium - Money Works Bond 36 700 Life property linked single premium - Synergy Investment Bond 21100 700 Life property linked single premium - Synergy Portfolio Bond 1250 710 Life property linked whole life regular premium - Money Works Plan 36 725 Individual pensions property linked - Personal & Executive Pension Plan 537 529 725 Individual pensions property linked - Synergy Buy Out Bond 16760 725 Individual pensions property linked - Synergy Executive Pension Plan 8843 18738 725 Individual pensions property linked - Synergy Personal Pension Plan 4034 20562 730 Individual pensions property linked - increments - Personal & Executive Pension Plan 1049 11367 730 Individual pensions property linked - increments - PRSA 95 2714 730 Individual pensions property linked - increments - Synergy Buy Out Bond 6 730 Individual pensions property linked - increments - Synergy Executive Pension Plan 1794 39188 730 Individual pensions property linked - increments - Synergy Personal Pension Plan 1465 15679 735 Group money purchase pensions property linked 243 6 27

Form 47 Long-term insurance business : Analysis of new business (Sheet 2) Name of insurer Standard Life Investment Funds Limited Total business Units 000 Overseas (Irish Republic) / Reinsurance accepted intra-group Product code number Product description Regular premium business Single premium business Number of policyholders / scheme members Amount of premiums Number of policyholders / scheme members Amount of premiums 1 2 3 4 5 6 740 Group money purchase pensions property linked - increments 397 749 750 Income drawdown property linked - Approved Retirement Funds 36 750 Income drawdown property linked - Synergy Approved Retirement Funds 142992 765 Group managed fund 103573 28

Form 48 Long-term insurance business : Assets not held to match linked liabilities Name of insurer Standard Life Investment Funds Limited 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 1 2 3 4 5 Assets backing non-profit liabilities and non-profit capital requirements Land and buildings 11 Approved fixed interest securities 12 9046 544372 24232 4.45 Other fixed interest securities 13 729586 49805 8.95 Variable interest securities 14 39654 1589 1.68 UK listed equity shares 15 Non-UK listed equity shares 16 Unlisted equity shares 17 Other assets 18 1764568 460002 9473 2.05 Total 19 1773614 1773614 85099 5.62 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 29

Form 49 Long-term insurance business : Fixed and variable interest assets Name of insurer Standard Life Investment Funds Limited Category of assets 10 Total long term insurance business assets Units 000 UK Government approved fixed interest securities Value of assets Mean term Yield before adjustment Yield after adjustment 1 2 3 4 11 65217 14.78 3.93 3.93 Other approved fixed interest securities 21 479155 14.88 4.52 4.39 Other fixed interest securities AAA/Aaa 31 44001 11.37 6.86 6.24 AA/Aa 32 205752 11.20 8.26 7.59 A/A 33 330929 10.90 8.96 8.21 BBB/Baa 34 121943 9.68 10.28 9.13 BB/Ba 35 4748 6.60 17.66 14.23 B/B 36 2229 5.71 21.83 13.35 CCC/Caa 37 769 5.51 21.88 3.88 Other (including unrated) 38 19215 12.61 8.43 6.64 Total other fixed interest securities 39 729586 10.80 8.95 8.08 Approved variable interest securities 41 37844 11.62 1.63 1.61 Other variable interest securities 51 1810 11.66 1.68 1.67 Total (11+21+39+41+51) 61 1313612 12.51 6.86 6.33 30

Form 50 Long-term insurance business : Summary of mathematical reserves Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year 1 2 3 4 5 Gross Form 51 - with-profits 11 Form 51 - non-profit 12 47491 1280757 27051 1355299 1099436 Form 52 13 Form 53 - linked 14 7939131 33705813 1700569 43345513 50955496 Form 53 - non-linked 15 10615 (14342) (20664) (24391) (32397) Form 54 - linked 16 2535 195896 198431 104671 Form 54 - non-linked 17 1 421 422 661 Total 18 7999774 35168545 1706955 44875274 52127866 Reinsurance - external Form 51 - with-profits 21 Form 51 - non-profit 22 Form 52 23 Form 53 - linked 24 986720 986720 857263 Form 53 - non-linked 25 (10500) (10500) Form 54 - linked 26 Form 54 - non-linked 27 Total 28 976220 976220 857263 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 Form 51 - non-profit 42 47491 1280757 27051 1355299 1099436 Form 52 43 Form 53 - linked 44 7939131 32719093 1700569 42358792 50098233 Form 53 - non-linked 45 10615 (3842) (20664) (13891) (32397) Form 54 - linked 46 2535 195896 198431 104671 Form 54 - non-linked 47 1 421 422 661 Total 48 7999774 34192325 1706955 43899053 51270603 31

Form 51 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term 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 1 2 3 4 5 6 7 8 9 Amount of mathematical reserves 395 Annuity non-profit (PLA) - Annuity in Payment 46124 36923 40892 400 Annuity non-profit (CPA) - Group Annuity in Payment 132 1085 400 Annuity non-profit (CPA) - Annuity in Payment 543 5514 32

Form 51 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 UK Pension / 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 1 2 3 4 5 6 7 8 9 Amount of mathematical reserves 400 Annuity non-profit (CPA) - Annuity in Payment 100528 22916 1106300 400 Annuity non-profit (CPA) - Group Annuity in Payment 148179 137501 174239 440 Additional reserves non-profit OB 218 33

Form 51 Long-term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profits contracts) Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term 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 1 2 3 4 5 6 7 8 9 Amount of mathematical reserves 395 Annuity non-profit (PLA) - Annuity in Payment 203 1472 400 Annuity non-profit (CPA) - Annuity in Payment 22716 20859 24732 400 Annuity non-profit (CPA) - Group Annuity in Payment 6637 6719 838 440 Additional reserves non-profit OB - Unitised with profits business 9 34

Form 53 Long-term insurance business : Valuation summary of property linked contracts Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 UK Pension / 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 1 2 3 4 5 6 7 8 9 725 Individual pensions property linked - Personal Pension Plan & Castle Pension Series 116981 291496 8900395 8854947 453 8855400 725 Individual pensions property linked - Stakeholder 121889 98352 1612221 1612221 491 1612712 735 Group money purchase pensions property linked - Group Money Purchase Plan 419244 243193 2219848 2212863 18583 2231446 735 Group money purchase pensions property linked - Personal Pension Plan & Castle Pension Series 492210 652698 6053188 6048976 11484 6060460 735 Group money purchase pensions property linked - Stakeholder 247053 301655 1117469 1117469 3662 1121131 750 Income drawdown property linked - Flexible Pension Plan 1095 20 181416 181416 181416 750 Income drawdown property linked - Group Flexible Retirement Plan 582185 209114 582185 582185 (494) 581691 750 Income drawdown property linked - Group Self Invested Personal Pension 89147 15741 89147 89147 (310) 88837 750 Income drawdown property linked - Pension Fund Withdrawal Plan 388614 490581 490581 (4388) 486193 750 Income drawdown property linked - Self Invested Personal Pension 3722596 95780 3722596 3722596 (44423) 3678173 750 Income drawdown property linked - Wrap Self Invested Personal Pension 55150 2127 55150 55150 (1421) 53729 755 Trustee investment plan 66625 8672481 8672481 (777) 8671704 760 Small self administered schemes - Group Money Purchase Plan 16 654 636 636 760 Small self administered schemes - Personal Pension Plan & Castle Pension Series 1405 5447 65199 65145 5 65150 800 Additional reserves property linked - Sterling reserve 2792 2792 36

Form 53 Long-term insurance business : Valuation summary of property linked contracts Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term Units 000 UK Pension / 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 1 2 3 4 5 6 7 8 9 725 Individual pensions property linked - Personal Pension Plan & Castle Pension Series 3741 27975 27975 27975 725 Individual pensions property linked - Stakeholder 1819 4541 4541 4541 735 Group money purchase pensions property linked - Group Money Purchase Plan 38588 213058 213058 213058 735 Group money purchase pensions property linked - Personal Pension Plan & Castle Pension Series 10918 41065 41065 41065 735 Group money purchase pensions property linked - Stakeholder 24902 101270 101270 101270 750 Income drawdown property linked - Group Flexible Retirement Plan 18932 67873 67873 67873 750 Income drawdown property linked - Group Self Invested Personal Pension 297 2534 2534 2534 750 Income drawdown property linked - Pension Fund Withdrawal Plan 1058 15653 15653 15653 750 Income drawdown property linked - Self Invested Personal Pension 8230 138185 138185 138185 755 Trustee investment plan 374099 374099 374099 760 Small self administered schemes - Personal Pension Plan & Castle Pension Series 61 467 467 467 800 Additional reserves property linked - Sterling Reserve (10500) (10500) 37

Form 53 Long-term insurance business : Valuation summary of property linked contracts (Sheet 1) Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term 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 1 2 3 4 5 6 7 8 9 Amount of mathematical reserves 700 Life property linked single premium - Capital Investment Bond 162 158635 158635 158635 700 Life property linked single premium - Moneyworks Bond 42 41406 41406 41406 700 Life property linked single premium - Prosperity Bond 38 37895 37895 37895 700 Life property linked single premium - Special Investment Bond 1 902 902 902 700 Life property linked single premium - Synergy Investment Bond 116963 180033 180033 (3723) 176310 700 Life property linked single premium - Synergy Portfolio Bond 18194 27673 27673 7 27680 710 Life property linked whole life regular premium - Capital Savings Plan 2 170 1575 1575 1575 710 Life property linked whole life regular premium - Flexible Life Plan 9 122 1004 1004 1004 710 Life property linked whole life regular premium - Moneyworks Plan 5 955 5326 5326 5326 710 Life property linked whole life regular premium - Mortgage Plan 0 20 161 161 161 710 Life property linked whole life regular premium - Universal Life Plan 47 542 4639 4639 4639 710 Life property linked whole life regular premium - Variable Protection Plan 25 366 7303 7303 7303 715 Life property linked endowment regular premium - savings - Versatile Investment Plan 7 114 2935 2935 2935 725 Individual pensions property linked - Personal & Executive Pension Plans 979 18289 293106 289090 289090 725 Individual pensions property linked - PRSA 3729 24919 24919 24919 38

Form 53 Long-term insurance business : Valuation summary of property linked contracts (Sheet 2) Name of insurer Standard Life Investment Funds Limited Total business / subfund 10 Ordinary Long Term 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 1 2 3 4 5 6 7 8 9 Amount of mathematical reserves 725 Individual pensions property linked - Synergy Buy Out Bond 33893 33938 33938 (1424) 32514 725 Individual pensions property linked - Synergy Executive Pension Plan 128814 26956 135260 135260 (5343) 129917 725 Individual pensions property linked - Synergy Personal Pension 99951 12207 101077 101077 (3816) 97261 735 Group money purchase pensions property linked - Group Money Purchase Plan 2854 3993 31452 30680 123 30803 750 Income drawdown property linked - Approved Retirement Funds 65078 65078 65078 750 Income drawdown property linked - Synergy Approved Retirement Funds 217688 222327 222327 (6688) 215639 765 Group managed fund 328712 328712 328712 800 Additional reserves property linked - Additional Reserves 200 200 39