Netherlands

Current position

Top five position in the Netherlands and Belgium for new business; also operations in Germany
Multi-channel, multi-label distribution selling comprehensive range of long term savings and general insurance
Swiss Life Belgium acquired on 30 June 2008 and legal merger effected 1 January 2009
ABN AMRO joint venture to continue with expansion to cover Fortis network
Disposal of health insurance operations on 1 Jan 2009, while providing future cross-selling opportunities

PVNBP life and pensions sales higher at £4.1bn (2007: £3.1bn) including five group pension contracts totalling £1,1bn
New business contribution (g/g) decreased to £73m loss (2007: £8 million profit)
Life MCEV operating return of £187m (2007: £316m)
IFRS life operating profit higher at £196m (2007: £181m)
GI and Health operating profit of £177m with GI only COR of 94%
Market challenging in 2008 due to competitive pressure for annuity business and unit-linked charging concerns

Build on Delta Lloyds relatively strong financial position and leading role on unit linked settlements to further enhance reputation
Increase distribution capability inorganically and organically, taking account of changing customer preferences
Revised organisational model implemented in 2008 will benefit future efficiency