Preliminary results year ended 31 December 2008
05 March 2009
M19 – Risk allowance within present value of in-force (PVIF)
Within the VIF in the tables in the segmental analysis of life and related business embedded value, there are additional allowances for risks not included within the basic present value of future profits calculation.
| 2008 | PVFP £m |
Frictional costs £m |
Non-hedgeable risks £m |
Time value of financial options and guarantees £m |
VIF £m |
|---|---|---|---|---|---|
| United Kingdom | 2,470 | (176) | (165) | (76) | 2,053 |
| France | 1,779 | (174) | (147) | (414) | 1,044 |
| Ireland | 637 | (10) | (24) | – | 603 |
| Italy | 196 | (22) | (12) | (13) | 149 |
| Netherlands (including Belgium and Germany) | 856 | (246) | (132) | (319) | 159 |
| Poland | 1,074 | (14) | (73) | (8) | 979 |
| Spain | 355 | (18) | (32) | (18) | 287 |
| Other Europe | 169 | (4) | (4) | (2) | 159 |
| Europe | 5,066 | (488) | (424) | (774) | 3,380 |
| North America | (864) | (15) | (43) | (180) | (1,102) |
| Asia | 262 | (20) | (23) | (26) | 193 |
| Australia | 132 | (27) | (26) | (10) | 69 |
| Asia Pacific | 394 | (47) | (49) | (36) | 262 |
| Total | 7,066 | (726) | (681) | (1,066) | 4,593 |
| Restated 2007 |
PVFP £m |
Frictional costs £m |
Non-hedgeable risks £m |
Time value of financial options and guarantees £m |
VIF £m |
|---|---|---|---|---|---|
| United Kingdom | 4,698 | (183) | (154) | (94) | 4,267 |
| France | 1,713 | (132) | (126) | (227) | 1,228 |
| Ireland | 491 | (9) | (16) | (1) | 465 |
| Italy | 160 | (17) | (9) | (9) | 125 |
| Netherlands (including Belgium and Germany) | 1,422 | (263) | (67) | (236) | 856 |
| Poland | 897 | (15) | (60) | (6) | 816 |
| Spain | 378 | (17) | (22) | (5) | 334 |
| Other Europe | 128 | (3) | (3) | – | 122 |
| Europe | 5,189 | (456) | (303) | (484) | 3,946 |
| North America | 581 | (105) | (28) | (118) | 330 |
| Asia | 210 | (7) | (7) | (6) | 190 |
| Australia | 123 | (30) | (16) | (6) | 71 |
| Asia Pacific | 333 | (37) | (23) | (12) | 261 |
| Total | 10,801 | (781) | (508) | (708) | 8,804 |
