Setting new standards - Friends Life

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FINANCIAL STATEMENTS IFRS FINANCIAL STATEMENTS EEV SUPPLEMENTARY INFORMATION Notes to the consolidated accounts continued 33. Net asset value attributable to unit holders The movements in the value of third-party interests in open-ended investment companies and unit trusts that are consolidated by the Group are as follows: 2006 2005 £m £m At 1 January 751 576 Share of total return in the period 131 136 Share of distributions in period (17) (13) Amount received on issue of shares 297 289 Amount paid on cancellation of shares (429) (192) Acquired upon funds coming into scope (i) 208 - Disposed upon funds going out of scope (i) - (45) At 31 December 941 751 (i) Third-party interests in F&C managed funds which were either consolidated by the Group for the first time at 31 December 2006 or deconsolidated in 2006, as the Group holding was above 50% or below 50% respectively. 34. Provisions Review of Future Pension mortgage consideration schemes endowment for Lombard (note 10) sales (note 41(a)) Other Total £m £m £m £m £m At 1 January 2006 107 49 146 62 364 Charged in the year 28 12 - 3 43 Released in the year - - (12) - (12) Utilised in the year (58) (41) (59) (22) (180) At 31 December 2006 77 20 75 43 215 Current - 14 75 18 107 Non-current 77 6 - 25 108 77 20 75 43 215 154 <strong>Friends</strong> Provident Annual Report & Accounts 2006
PARENT COMPANY ACCOUNTS ABBREVIATIONS AND DEFINITIONS Notes to the consolidated accounts continued (a) Review of mortgage endowment sales Provision has been established for the estimated likely cost of redress, including administrative costs, arising from the review of the suitability of mortgage endowment policies. In addition to the accounting provision of £20m (2005: £49m), an actuarial reserve of £17m (2005: £60m) was held in insurance contracts liabilities of FPLP’s With-Profits Fund in respect of estimated further complaints. There is considerable uncertainty involved in the calculation of this provision which has been calculated on a best estimate basis taking into account Group and industry experience. The majority of the mortgage endowment redress provision is expected to be settled in the next 12 months. (b) Other Other provisions consist of £14m (2005: £18m) in respect of vacant properties, £9m (2005: £9m) in respect of potential claims on share entitlements not claimed following demutualisation, £3m (2005: £13m) in respect of the estimated likely cost of redress arising from a review of other sales, and other £17m (2005: £22m). In addition to the accounting provision in respect of other sales, an actuarial reserve of £23m (2005: £20m) is held within insurance contract liabilities. 35. Insurance payables, other payables and deferred income 2006 2005 £m £m Creditors arising out of direct insurance operations 161 100 Creditors arising out of reinsurance operations 18 29 Accruals and deferred income 99 87 Investments purchased for subsequent settlement 78 71 Deferred front end fees 66 101 Employee benefits 33 30 Other payables 127 79 Total insurance payables, other payables and deferred income 582 497 All insurance payables and other payables are repayable within a period of one year except for deferred front end fees which are analysed: current £24m (2005: £13m) and non-current £42m (2005: £88m). The estimated fair values of insurance payables and other payables are equal to the amounts held on the balance sheet at each reporting date. <strong>Friends</strong> Provident Annual Report & Accounts 2006 155
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Setting new standards Friends Provi
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ANNUAL REVIEW CORPORATE GOVERNANCE
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Group financial highlights Group
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INTERNATIONAL LIFE & PENSIONS ASSET
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DIRECTORS’ REPORT CORPORATE GOVER
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FINANCIAL STATEMENTS Independent Au
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