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Worldwide long-term savings new business – Three months to 31 March 2006

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Supplement 3

Detailed analysis of new business contribution

(a) Before the effect of required capital – PVNBP basis

	Present value of new business premiums 1			New business contribution 2, 3			New business margin 4
	3 months 2006 £m	3 months 2005 £m		3 months 2006 £m	3 months 2005 £m		3 months 2006 %	3 months 2005 %	Full year 2005 %
Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. Before effect of required capital. New business contribution before the effect of required capital includes minority interests in 2006 of £48 million (three months to 31 March 2005: £36 million). This comprises minority interests in France of £8 million (three months to 31 March 2005: £6 million), Italy £12 million (three months to 31 March 2005: £9 million), Spain £24 million (three months to 31 March 2005: £18 million), Poland £1 million (three months to 31 March 2005: £1 million) and Netherlands £3 million (three months to 31 March 2005: £2 million). New business margin represents the ratio of new business contribution to PVNBP, expressed as a percentage.
Life and pensions business
France	1,134	1,020		45	36		4.0%	3.5%	3.8%
Ireland	258	185		5	6		1.9%	3.2%	2.4%
Italy	845	601		21	16		2.5%	2.7%	2.6%
Netherlands (including Germany, Belgium and Luxembourg)	722	833		19	18		2.6%	2.2%	3.3%
Poland	160	67		8	3		5.0%	4.5%	5.0%
Spain	495	461		46	39		9.3%	8.5%	8.7%
Other Europe	60	60		(1)	2		(1.7%)	3.3%	(0.4%)
Continental Europe	3,674	3,227		143	120		3.9%	3.7%	4.2%
Asia	129	85		8	5		6.2%	5.9%	5.1%
Australia	70	74		4	2		5.7%	2.7%	4.7%
USA	152	90		3	2		2.0%	2.2%	2.5%
Rest of the World	351	249		15	9		4.3%	3.6%	3.9%
International	4,025	3,476		158	129		3.9%	3.7%	4.1%
United Kingdom	2,763	2,183		77	68		2.8%	3.1%	2.9%
Total Life and pensions	6,788	5,659		235	197		3.5%	3.5%	3.6%

(b) Including the effect of required capital

	Present value of new business premiums 1			New business contribution 2, 3			New business margin 4
	3 months 2006 £m	3 months 2005 £m		3 months 2006 £m	3 months 2005 £m		3 months 2006 %	3 months 2005 %	Full year 2005 %
Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution. New business contribution is after the effect of required capital. The effect of required capital represents the impact of holding the required capital (expressed as a % of minimum European Union (EU) solvency margin or equivalent for non-EU operations) and discounting to present value the projected future releases from the required capital to shareholders. New business contribution after the effect of required capital includes minority interests in 2006 of £39 million (three months to 31 March 2005: £27 million). This comprises minority interests in France of £4 million (three months to 31 March 2005: £3 million), Italy £9 million (three months to 31 March 2005: £6 million), Spain £22 million (three months to 31 March 2005: £16 million), Poland £1 million (three months to 31 March 2005: £1 million) and Netherlands £3 million (three months to 31 March 2005: £1 million). New business margin represents the ratio of new business contribution to PVNBP, expressed as a percentage.
Life and pensions business
France	1,134	1,020		32	23		2.8%	2.3%	2.6%
Ireland	258	185		4	6		1.6%	3.2%	2.0%
Italy	845	601		15	10		1.8%	1.7%	1.6%
Netherlands (including Germany, Belgium and Luxembourg)	722	833		9	6		1.2%	0.7%	2.1%
Poland	160	67		8	3		5.0%	4.5%	4.7%
Spain	495	461		42	35		8.5%	7.6%	7.7%
Other Europe	60	60		(1)	(1)		(1.7%)	(1.7%)	(2.1%)
Continental Europe	3,674	3,227		109	82		3.0%	2.5%	3.1%
Asia	129	85		6	4		4.7%	4.7%	4.1%
Australia	70	74		2	1		2.9%	1.4%	2.7%
USA	152	90		1	1		0.7%	1.1%	1.3%
Rest of the World	351	249		9	6		2.6%	2.4%	2.5%
International	4,025	3,476		118	88		2.9%	2.5%	3.0%
United Kingdom	2,763	2,183		60	50		2.2%	2.3%	2.4%
Total Life and Pensions	6,788	5,659		178	138		2.6%	2.4%	2.8%

(c) New business contribution – before minority interest, cost of capital and tax

	Present value of new business premiums			New business contribution 1			New business margin 2
	3 months 2006 £m	3 months 2005 £m		3 months 2006 £m	3 months 2005 £m		3 months 2006 %	3 months 2005 %	Full year 2005 %
Stated before the effect of required capital. New business margin represents the ratio of new business contribution before deducting cost of capital, tax and minority interest to PVNBP before deducting the minority share, expressed as a percentage.
Analysed between:
- Banc-assurance channels	2,120	1,527		97	70		4.6%	4.6%	5.1%
- Other distribution channels	4,668	4,132		138	127		3.0%	3.1%	3.1%
Attributable to equity shareholders	6,788	5,659		235	197		3.5%	3.5%	3.6%
Analysed:
UK	2,763	2,183		77	68		2.8%	3.1%	2.9%
Continental Europe	3,674	3,227		143	120		3.9%	3.7%	4.2%
Rest of the World	351	249		15	9		4.3%	3.6%	3.9%
International	4,025	3,476		158	129		3.9%	3.7%	4.1%

(d) New business contribution – after minority interest, cost of capital and tax

	Present value of new business premiums 1			New business contribution 2			New business margin 3
	3 months 2006 £m	3 months 2005 £m		3 months 2006 £m	3 months 2005 £m		3 months 2006 %	3 months 2005 %	Full year 2005 %
Stated after deducting the minority interest of sales. Contribution stated after deducting cost of required capital, tax and minority interest. New business margin represents the ratio of new business contribution after deducting cost of required capital, tax and minority interest to PVNBP after deducting the minority share, expressed as a percentage.
Analysed between:
- Banc-assurance channels	1,179	794		30	19		2.5%	2.4%	2.9%
- Other distribution channels	4,552	4,044		67	58		1.5%	1.4%	1.6%
Attributable to equity shareholders	5,731	4,838		97	77		1.7%	1.6%	1.8%
Analysed:
UK	2,763	2,183		43	36		1.6%	1.6%	1.7%
Continental Europe	2,618	2,406		47	36		1.8%	1.5%	1.9%
Rest of the World	350	249		7	5		2.0%	2.0%	2.0%
International	2,968	2,655		54	41		1.8%	1.5%	1.9%

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