Annual Report 2006

Group financial statements

Primary statement: Consolidated balance sheet
Year ended 31 December 2006

Consolidated balance sheet

Assets

 Note 2006
£m		 2005
£m
Intangible assets attributable to shareholders:
Goodwill H1 (a) 1,341 1,341
Deferred acquisition costs and acquired in-force value of long-term business contracts H1 (b) 2,497 2,405
Total 3,838 3,746
Intangible assets attributable to PAC with-profits fund:
In respect of acquired venture fund investment subsidiaries H2 (a) 830 679
Deferred acquisition costs H2 (b) 31 35
Total 861 714
Total 4,699 4,460
Other non-investment and non-cash assets:
Property, plant and equipment H6 1,133 910
Reinsurers' share of policyholder liabilities H3 945 1,278
Deferred tax assets H4 1,012 755
Current tax recoverable H4 404 231
Accrued investment income G1, H5 1,900 1,791
Other debtors G1, H5 1,052 1,305
Total 6,446 6,270
Investments of long-term business, banking and other operations:
Investment properties H7 14,491 13,180
Investments accounted for using the equity method H8 6 5
Financial investments: G1
Loans and receivables 11,573 13,245
Equity securities and portfolio holdings in unit trusts 78,892 71,985
Debt securities 81,719 82,471
Other investments 5,401 3,879
Deposits 7,759 7,627
Total 199,841 192,392
Held for sale assets H9 463 728
Cash and cash equivalents H10 5,071 3,586
Total assets B5 216,520 207,436


Equity and liabilities

 Note 2006
£m
 2005
£m
Equity
Shareholders' equity H11 5,488 5,194
Minority interests 132 172
Total equity 5,620 5,366
Liabilities
Banking customer accounts G1 5,554 5,830
Policyholder liabilities and unallocated surplus of with-profits funds:
Insurance contract liabilities H12 123,213 120,436
Investment contract liabilities with discretionary participation features G1 28,733 26,523
Investment contract liabilities without discretionary participation features G1 13,042 12,026
Unallocated surplus of with-profits funds H12 13,599 11,330
Total 178,587 170,315
Core structural borrowings of shareholder-financed operations:
Subordinated debt (other than Egg) H13 1,538 1,646
Other H13 1,074 1,093
2,612 2,739
Egg subordinated debt H13 451 451
Total G1, H13 3,063 3,190
Other borrowings:
Operational borrowings attributable to shareholder-financed operations G1, H13 5,609 6,432
Borrowings attributable to with-profits funds G1, H13 1,776 1,898
Other non-insurance liabilities:
Obligations under funding, securities lending and sale and repurchase agreements G1 4,232 4,529
Net asset value attributable to unit holders of consolidated unit trusts and similar funds G1 2,476 965
Current tax liabilities H4 1,303 962
Deferred tax liabilities H4 3,882 3,077
Accruals and deferred income G1 517 506
Other creditors G1 1,398 1,478
Provisions H14 464 972
Other liabilities G1, H15 1,652 1,770
Held for sale liabilities H9 387 146
Total 16,311 14,405
Total liabilities B5 210,900 202,070
Total equity and liabilities 216,520 207,436

The consolidated financial statements on pages 99 to 239 were approved by the Board of directors on 14 March 2007.

Signature of Sir David Clementi


Sir David Clementi
Chairman
Signature of Mark Tucker


Mark Tucker
Group Chief Executive
Signature of Philip Broadley

Philip Broadley
Group Finance Director