RBS 2009 Annual Report Download - page 314

RBS Group Annual Report and Accounts 2009312
Notes on the accounts continued
24 Insurance business continued
Group
Life Investment
contracts contracts
Movement in provision for liabilities under life contracts and under linked and other investment contracts £m £m
At 1 January 2008 4,696 5,555
Premiums received 868 330
Fees and expenses (21) (38)
Investment return 17 (970)
Actuarial adjustments (233) —
Account balances paid on surrender and other terminations in the year (734) (455)
Transfers to disposal groups (686) —
Exchange and other adjustments 591 904
At 1 January 2009 4,498 5,326
Premiums received 528 349
Fees and expenses (16) (13)
Investment return 400 442
Actuarial adjustments (205) —
Account balances paid on surrender and other terminations in the year (546) (712)
Exchange and other adjustments (180) (263)
At 31 December 2009 4,479 5,129
Investment contracts are presented within customer deposits.
Changes in assumptions during the year were not material to the profit recognised.
Group
2009 2008 2007
Assets backing linked liabilities £m £m £m
Debt securities 4,484 4,500 2,899
Equity securities 4,642 4,816 6,863
Cash and cash equivalents 102 81 68
The associated liabilities are:
Linked contracts and participating bonds classified as insurance contracts 4,175 4,189 4,398
Linked contracts classified as investment contracts 5,053 5,208 5,432
There are no options and guarantees relating to life assurance contracts that could in aggregate have a material effect on the amount, timing and
uncertainty of the Group’s future cash flows.