Our Accounts 55
Statement of Comprehensive Income
Year ended 31 December 2012
Group Society
2012 2011 2012 2011
Restated see
Note 1
Notes £m £m £m £m
Gross earned premiums 4 2,446.2 2,196.5 959.1 862.8
Premiums ceded to reinsurers 4 (108.8) (93.0) (75.6) (99.7)
Net earned premiums 4 2,337.4 2,103.5 883.5 763.1
Fee and commission income 6 16.5 18.5 6.6 5.2
Investment income 7 320.2 261.4 337.0 284.9
Net gains on investments 8 374.7 425.4 214.1 372.9
Other income 9 41.7 51.0 5.9 19.1
Total income 3,090.5 2,859.8 1,447.1 1,445.2
Gross benefits and claims 10 (1,819.3) (1,669.3) (646.6) (657.3)
Claims ceded to reinsurers 10 110.8 86.4 61.8 102.4
Net benefits and claims 10 (1,708.5) (1,582.9) (584.8) (554.9)
Gross change in long-term contract liabilities 22 (711.3) (771.6) (714.8) (773.4)
Change in long-term contract liabilities ceded to reinsurers 22 74.4 96.0 74.4 7.1
Net change in contract liabilities 22 (636.9) (675.6) (640.4) (766.3)
Statements and Reviews
Finance costs 11 (0.5) (0.5) – –
Investment return allocated to external unit holders (32.9) 2.1 – –
Other operating and administrative expenses 12 (608.5) (619.8) (218.6) (171.7)
Other expenses (641.9) (618.2) (218.6) (171.7)
Total benefits, claims and expenses (2,987.3) (2,876.7) (1,443.8) (1,492.9)
Profit/(loss) before tax and mutual bonus 103.2 (16.9) 3.3 (47.7)
Our Businesses
Mutual bonus 14 (20.9) (18.6) (20.9) (18.6)
Income tax expense 34 (34.3) (42.2) (13.4) (26.9)
Pension scheme actuarial (losses)/gains net of tax 39 (145.5) 69.7 (145.5) 69.7
Transfer from the Unallocated divisible surplus 46 97.5 8.0 176.5 23.5
Total comprehensive income for the year – – – –
As a Friendly Society, all net earnings are for the benefit of participating policyholders and are carried forward within the Unallocated
divisible surplus. Accordingly, there is no profit for the year shown in the Statement of Comprehensive Income.
Risk Management
The Group and the Society have not presented a Statement of Changes in Equity as there are no equity holders in either the Group or
Society as the Society is a mutual organisation.
Corporate Governance
Our Accounts