IFRS condensed financial statements

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A9 - Liability for investment contracts

(a) Carrying amount

  30 June
2009
£m
30 June
2008
£m
31 December
2008
£m
Long-term business
Participating contracts

59,604 54,979 65,278
Non-participating contracts at fair value 37,291 42,480 39,509
Non-participating contracts at amortised costs 2,279 1,614 2,772
  39,570 44,094 42,281
  99,174 99,073 107,559
Less: Amounts classified as held for sale (1,633) (446) -
  97,541 98,627 107,559

(b) Movements in participating investment contracts

  6 months
2009
£m
6 months
2008
£m
Full year
2008
£m
Carrying amount at 1 January 65,278 53,609 53,609
Provisions in respect of new business 2,906 1,801 3,391
Expected change in existing business provisions (2,071) (946) (1,909)
Variance between actual and expected experience 489 (2,258) (4,661)
Impact of operating assumption changes (16) - (166)
Impact of economic assumption changes (156) (88) 244
Other movements (177) (14) 13
Change in liability recognised as an expense/(income) 975 (1,505) (3,088)
Effect of portfolio transfers, acquisitions and disposals 14 - 2,181
Foreign exchange rate movements (6,663) 2,875 12,576
Carrying amount at 30 June/31 December 59,604 54,979 65,278

(c) Movements in non-participating investment contracts

  6 months
2009
£m
6 months
2008
£m
Full year
2008
£m
Carrying amount at 1 January 42,281 44,635 44,635
Provisions in respect of new business 1,029 2,987 5,314
Expected change in existing business provisions (1,096) (835) (2,273)
Variance between actual and expected experience (377) (2,868) (9,503)
Impact of operating assumption changes - - (28)
Impact of economic assumption changes 9 (120) 5
Other movements (234) (1,078) (169)
Change in liability (669) (1,914) (6,654)
Effect of portfolio transfers, acquisitions and disposals - 277 (14)
Foreign exchange rate movements (2,042) 1,096 4,314
Carrying amount at 30 June/31 December 39,570 44,094 42,281

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