ANNUAL REPORT 2001 - Prudential plc

Restated †
2001 2000
Long-term Business Technical Account Note £m £m
Gross premiums written 6 15,196 14,173
Outwards reinsurance premiums (180) (109)
Earned premiums, net of reinsurance 15,016 14,064
Investment income 12 9,394 13,835
Claims paid:
Gross amount (13,209) (13,936)
Reinsurers’ share 130 95
Net of reinsurance (13,079) (13,841)
Change in the provision for claims:
Gross amount 31 (128)
Reinsurers’ share (1) 3
Net of reinsurance 30 (125)
Claims incurred, net of reinsurance (13,049) (13,966)
Change in long-term business provision:
Gross amount (7,233) (6,239)
Reinsurers’ share 221 123
Net of reinsurance (7,012) (6,116)
Change in provisions for linked liabilities, net of reinsurance 901 554
Change in other technical provisions, net of reinsurance (6,111) (5,562)
Net operating expenses (including re-engineering costs of £193m (£nil)) 8,14 (1,982) (1,729)
Investment expenses and charges 15 (539) (421)
Unrealised losses on investments (10,667) (8,922)
Tax attributable to the long-term business 16 241 (166)
Allocated investment return transferred from the non-technical account 385 57
Transfer from the fund for future appropriations 7,754 3,480
Balance on the long-term business technical account 442 670
† The tax charge and the transfer from the fund for future appropriations for 2000 have been restated for the implementation of FRS 19 on deferred tax (see
note 4).
Gross premiums written and the balance on the long-term business technical account relate to continuing operations.
37 Prudential plc Annual Report 2001