74 LV= Annual Report 2012
Notes to the Financial Statements continued
31 December 2012
5. New business premiums
Group Society
2012 2011 2012 2011
Gross new business – long-term contracts £m £m £m £m
Long-term insurance contracts - participating business
Investments and savings - single premium 61.5 45.7 61.5 45.7
Pensions and annuities - single premium 10.8 8.7 10.8 8.7
Investments and savings - regular premium 0.9 1.1 0.9 1.1
Long-term insurance contracts - non participating business
Pensions and annuities - single premium 677.3 601.1 677.3 601.1
Life and health protection - regular premium 26.5 23.8 26.5 23.8
Long-term linked insurance contracts
Pensions and annuities - regular premium – 0.4 – 0.4
Life and health protection - regular premium 4.3 3.2 4.3 3.2
781.3 684.0 781.3 684.0
Investment contracts
Pensions and annuities - regular premium 270.0 214.0 270.0 214.0
1,051.3 898.0 1,051.3 898.0
Gross written premiums for investment contracts are deposit accounted for and not included within net earned premiums.
All gross new business premiums relate to individual business and are disclosed on an APE basis.
Recurrent single premium rebates from the Department for Works and Pensions are included as new business single premiums.
Pensions vested into annuity contracts during the year are included as new annuity single premium business at the annuity purchase price.
Where periodic premiums are received other than annually, the periodic new business premiums are stated on an annualised basis.
2012 2011
Group gross premiums earned – general business £m £m
Motor 1,133.3 1,030.5
Household 135.2 120.6
Commercial 151.9 128.0
Other 66.0 53.8
1,486.4 1,332.9
6. Fee and commission income
Accounting for fee and commission income
Fees from investment contracts for investment management, other policy administration charges and fund management fees are recognised as
income when earned. Commission earned from financial intermediary services is taken to income when earned. This primarily comprises initial
commission income receivable on services provided to clients during the year when policies have gone on risk and renewal commission received
during the year on an accruals basis.
Group Society
2012 2011 2012 2011
Restated
£m £m £m £m
Policy administration fees 13.3 11.6 6.3 4.9
Fund management fees – 2.7 – –
Commission income 3.2 4.2 0.3 0.3
16.5 18.5 6.6 5.2