Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
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FINANCIAL STATEMENTS<br />
IFRS FINANCIAL STATEMENTS<br />
EEV SUPPLEMENTARY INFORMATION<br />
Notes to the consolidated accounts continued<br />
30. Risk management objectives and policies for mitigating risks continued<br />
Year ended 31 December 2006<br />
Less<br />
More<br />
than than No<br />
one 1–5 6–10 11–15 16–20 20 fixed Total<br />
year years years years years years term 2006<br />
£m £m £m £m £m £m £m £m<br />
Financial and insurance assets:<br />
Cash flow interest rate risk<br />
Shares and other variable yield securities - - - - - - - -<br />
Units in unit trusts and shares in<br />
open-ended investment companies - - - - - - - -<br />
Debt securities and other fixed income<br />
securities 33 92 49 19 10 131 - 334<br />
Participation in investment pools - - - - - - - -<br />
Derivative financial instruments - 2 3 1 32 77 - 115<br />
Deposits with credit institutions 145 - - - - - - 145<br />
Fair value interest rate risk<br />
Shares and other variable yield securities - - - - - - 5,279 5,279<br />
Units in unit trusts and shares in<br />
open-ended investment companies - - - - - - 873 873<br />
Debt securities and other fixed income<br />
securities 232 679 2,358 2,656 1,564 4,839 - 12,328<br />
Participation in investment pools - - - 136 - - - 136<br />
Derivative financial instruments 7 14 34 19 12 2 - 88<br />
Deposits with credit institutions - - - - - - - -<br />
Reinsurance assets 12 9 12 23 35 (7) 1 85<br />
Financial and insurance liabilities:<br />
Fair value interest rate risk<br />
Derivative financial instruments 5 3 10 3 - - - 21<br />
Insurance contracts 452 1,869 3,077 1,009 397 181 5,489 12,474<br />
Investment contracts 312 657 781 694 589 686 2,035 5,754<br />
Note that while significant cash flows often occur at the maturity date, there are other cash flows which occur throughout the term of the<br />
contracts, including income from investments, premiums, annuity payments, death and sickness payments, expenses and commission.<br />
146 <strong>Friends</strong> Provident Annual Report & Accounts 2006