84 LV= Annual Report 2012
Notes to the Financial Statements continued
31 December 2012
18. Fair value estimation (continued)
The table below presents the movements in Level 3 financial instruments for the year ended 31 December 2012:
Total gains/
(losses)
At 1 recognised Transfers At 31
January through to level 1 December
2012 income Purchases Sales* and level 2 2012
Group £m £m £m £m £m £m
Financial assets
Derivative financial instruments
Interest rate swaps 64.2 (0.1) – (44.1) – 20.0
Gilt hedges – 1.0 – – – 1.0
Swaptions 29.6 (2.3) – (9.4) – 17.9
Equity/index derivatives 39.7 (9.0) – – – 30.7
133.5 (10.4) – (53.5) – 69.6
Financial assets held at fair value through income
Shares, other variable yield securities and units in unit trusts
– UK unlisted 113.9 11.6 0.8 (14.0) – 112.3
– Overseas unlisted 94.7 1.0 0.6 (3.4) – 92.9
Debt and other fixed income securities
– UK listed 0.7 – – – (0.7) –
– Overseas listed 1.1 – – – (1.1) –
Loans secured on residential property 334.2 10.8 89.0 (18.7) – 415.3
544.6 23.4 90.4 (36.1) (1.8) 620.5
678.1 13.0 90.4 (89.6) (1.8) 690.1
Financial liabilities
Investment contract liabilities 113.4 1.3 – – – 114.7
Derivative financial instruments
Cash flow swaps – (4.3) 55.5 – – 51.2
Property index swap 0.2 – – (0.2) – –
0.2 (4.3) 55.5 (0.2) – 51.2
113.6 (3.0) 55.5 (0.2) – 165.9
* In relation to Loans secured on residential property, sales represents loans repaid.