European Embedded Value (EEV) basis unaudited interim supplementary information
EEV basis results
Notes on the EEV basis results
1. Basis of preparation of results
2. Economic assumptions
3. Level of encumbered capital
4. Margins on new business premiums
5. UK insurance operations expense assumptions
6. Taiwan – effect of altered economic assumptions and sensitivity of results to future market conditions
7. Effect of changes in corporate tax rates
8. Short-term fluctuations in investment returns for half year 2006 comparative results
9. Holding company net borrowings (at market value)
International Financial Reporting Standards (IFRS) basis unaudited financial information
Independent review reports

Group results

European Embedded Value (EEV) basis unaudited interim supplementary information

Notes on the EEV basis results

8. Short-term fluctuations in investment returns for half year 2006 comparative results

The analysis of the half year 2006 EEV basis results in this interim report incorporates a reallocation of £41 million from the amount shown for the effect of changes in economic assumptions and time value of cost of options and guarantees to the credit for short-term fluctuations in investment returns. The change, which has no effect on operating profit or profit before tax, relates to asset related gains for Jackson and has been made to align with the full year 2006 and current presentation.